Sereen Banna mentioned the companions of Downtown LA Legislation Group known as her “Erin Brockovich” for her work serving to tons of sue over noxious fumes spewing out of a landfill in northern Los Angeles County.
An formidable paralegal, Banna mentioned she embraced the function she had in empowering residents to tackle corporations suspected of polluting their neighborhoods.
Her bosses have been proud, too, she mentioned. Banna, 28, recalled them saying she would make all of them billionaires sometime.
However in early 2024, Banna mentioned, she found a troubling pattern in among the agency’s most profitable instances: Purchasers who claimed they have been paid earlier than becoming a member of lawsuits.
On Dec. 16, Banna sued Downtown LA Legislation Group, also called DTLA, stating the agency failed to handle her complaints about “unlawful solicitation, in addition to misleading and unethical practices geared toward persuading people to grow to be shoppers by way of misrepresentations.”
She accused the agency, which she left within the fall of 2024, of amassing plaintiffs by way of “practices that appeared designed to take advantage of weak people.”
DTLA known as the allegations “baseless,” saying they got here from a disgruntled former worker.
“Any allegations of fraud, paid referrals, or unethical practices by DTLA Legislation Group will not be solely unsubstantiated, however false,” the agency mentioned in an announcement. “We intend to combat this within the court docket of regulation, the place the information will present that we function with unwavering integrity, prioritizing shopper welfare.”
Banna’s lawsuit caps a tumultuous 12 months for DTLA. A partnership between three childhood buddies, DTLA has grown from a small agency targeted on automotive crash victims right into a civil litigation powerhouse, submitting 1000’s of instances associated to the January wildfires and sexual abuse in authorities amenities. The agency filed almost 1 / 4 of the instances within the $4-billion intercourse abuse settlement accepted final spring by Los Angeles County — the most important of its type in U.S. historical past.
However the meteoric rise has drawn scrutiny.
The Instances reported within the fall that 9 of the agency’s shoppers who sued over intercourse abuse in L.A. County amenities mentioned recruiters paid them to file a lawsuit, together with 4 who mentioned they have been informed to manufacture claims. The L.A. County district lawyer’s workplace is now conducting a probe into the allegations.
With the investigation pending, questions have lingered about how DTLA managed to amass so many plaintiffs so rapidly. The Instances spoke to greater than 40 of the agency’s shoppers and 10 former staff, a lot of whom described aggressive ways to herald new shoppers and reap income stretching again years.
Greater than a dozen folks represented by DTLA in private damage instances mentioned they have been recruited at a disaster level of their lives with guarantees of huge payouts and pressured into costly surgical procedures that attorneys mentioned would make their case extra worthwhile. The extra medical procedures, they have been informed, the extra damages attorneys might declare.
On the finish, some shoppers say, they have been left with a fraction of what they have been promised.
DTLA mentioned in an announcement it exists “to assist shoppers by way of among the most tough moments of their lives.”
“That features serving to them keep away from pointless monetary stress whereas their instances are pending,” the agency mentioned. “Medical care selections are made solely by shoppers and their physicians.”
Sereen Banna, a former DTLA paralegal, sued the agency on Dec. 16, alleging it didn’t hearken to her complaints of unethical solicitation. The agency has denied wrongdoing.
(Allen J. Schaben / Los Angeles Instances)
Banna mentioned in her lawsuit she “repeatedly complained” about how shoppers have been being solicited.
She mentioned in an interview she reported the primary paid landfill shopper she was conscious of — a lady who obtained a $20 reward card — to her bosses in early 2024. In her lawsuit, she alleged “such conduct constitutes illegal and unethical habits for attorneys.”
She mentioned her boss informed her the alleged funds can be investigated.
“At that time, I used to be reminded it was above my pay grade,” she mentioned.
‘A extremely massive a part of the recruitment course of’
Banna mentioned she resigned from DTLA in October 2024, across the time the agency started pursuing a brand new cohort of shoppers: human trafficking victims who’d been abused in resorts.
Banna mentioned considered one of her colleagues, an consumption coordinator, informed her a person named Kevin Johnson had paid one intercourse employee $20 to come back into the workplace.
During the last two years, 5 ex-workers informed The Instances, Johnson turned an more and more widespread sight on the agency as he began shepherding in shoppers he’d discovered to sue over intercourse abuse within the juvenile halls and the Eaton fireplace. Like most former staff, the ex-workers requested anonymity, fearing skilled retaliation.
Johnson, a 54-year-old entertainer who hosts gospel brunches and soul nights in Inglewood in keeping with his social media, didn’t reply to messages or a letter left at his residence. The agency is at the moment representing him in a lawsuit over a Mid-Metropolis automotive crash.
California regulation bans a apply generally known as capping, wherein non-attorneys solicit shoppers to hitch litigation with a agency. DTLA has denied working with cappers and Johnson didn’t reply to questions on his recruitment for the agency.
Former staff mentioned Johnson was liable for bringing in numerous shoppers.
“He’s a very massive a part of the recruitment course of for Downtown LA,” mentioned Banna, who described how she was known as to do consumption with intercourse abuse shoppers after Johnson introduced them into the workplaces of one of many companions.
Johnson wasn’t a DTLA worker, but staff say he was a well-known face across the workplace.
He was shut with the companions and chummy with staff, handing out fortunate $2 payments to staff final vacation season, three former staff mentioned. Two mentioned that at one level he had his personal swipe card, so he might come and go freely.
A digital path connects Johnson to DTLA’s shopper record.
The Instances discovered greater than a dozen buddies of Johnson’s on Fb who appeared to have a intercourse abuse lawsuit filed with the county. To do that, The Instances cross-referenced an inventory of county intercourse abuse plaintiffs represented by DTLA with Johnson’s Fb buddies to see what number of shared figuring out particulars.
Larisa Ellis, whom Johnson describes on Fb as his spouse, paid somebody who later had a DTLA intercourse abuse lawsuit $50 at a social providers workplace in November 2024 with the fee caption “Thanks for utilizing our referral service,” in keeping with a Money app transaction. Ellis didn’t reply to a message and a letter left at their residence.
“DTLA doesn’t pay shoppers to retain our providers or for referrals,” the agency mentioned in an announcement.
Austin Beagle and Nevada Barker, former shoppers of DLTA, mentioned they have been paid to sue over alleged sexual abuse in L.A. County by a person named Kevin, whose final title they didn’t know. Beagle and Barker later had their lawsuit dismissed.
(Joe Garcia / For The Instances)
Nevada Barker and Austin Beagle, two former DTLA shoppers, beforehand informed The Instances a person named Kevin, whose final title they didn’t know, paid them $100 every in DTLA’s workplace after they made false claims of intercourse abuse. Barker recognized Johnson by way of photos as the person who paid her.
The couple mentioned they have been beneath the impression they have been being compensated to be actors in a film. The agency later requested the court docket to dismiss their lawsuits.
“He mentioned he labored for a referral service and the lawsuit wanted sufficient individuals to undergo,” mentioned Beagle. “He didn’t work for the regulation workplace.”
‘Inform her I bought $ for her’
A number of shoppers informed The Instances they have been supplied cash by DTLA companion Farid Yaghoubtil if they may discover folks to join lawsuits with the agency.
“He known as it an development, ” mentioned LaShelle Allison, 53, a former shopper who mentioned she referred a number of automotive accident victims for Yaghoubtil. “Right here’s $250,’ ‘Right here’s $650,’ ‘Right here’s $500 for hire.”
California is without doubt one of the few states the place attorneys are allowed to mortgage shoppers cash.
The State Bar has a common rule that attorneys will not be imagined to pay “private or enterprise bills.” The bar makes exceptions that embrace if the shopper guarantees in writing to repay the mortgage, for offering funds to advertise “the pursuits of an indigent particular person,” and for “advancing prices” to guard a shopper, with reimbursement contingent on the result of the matter.
DTLA mentioned in an announcement that it provides small loans to shoppers “in restricted conditions.”
“The agency has supplied small, interest-free micro-advances to assist with short-term wants like non permanent housing or primary bills, particularly so shoppers don’t really feel compelled to show to third-party lenders,” the agency mentioned. “These advances are fully voluntary, by no means tied to medical or authorized selections, and are solely recovered if a case is efficiently resolved.”
Akeem Smith, 40, had DTLA sue on his behalf not less than 4 occasions, twice for automotive crashes, as soon as after he was punched at an evening membership and once more over a buying cart mishap at Ceremony Assist.
Smith referred 10 potential shoppers to Yaghoubtil, almost all automotive crash victims, in keeping with textual content messages between the 2 males. In return, Smith mentioned, he was informed he’d be compensated, although he mentioned he was upset to seek out he was by no means paid for the shoppers he referred.
As an alternative, Smith mentioned he obtained month-to-month advances of about $2,000 primarily based on potential settlements the agency was anticipating in his instances.
Smith mentioned he would encourage shoppers to join instances with DTLA however didn’t pay them. He informed some about cash Yaghoubtil was providing.
“Inform her I bought $ for her,” Yaghoubtil texted Aug. 9, 2022, relating to a lady who Smith mentioned had been in an accident and was contemplating not transferring ahead with the agency. “Get her again for me.”
Akeem Smith stands in entrance of the previous DTLA workplace in East Hollywood.
(Ronaldo Bolanos / Los Angeles Instances)
After The Instances reached out to DTLA searching for touch upon the allegations made by Smith, Yaghoubtil texted Smith asking him to inform the reporter that “every part you informed her was a lie” and to remind The Instances that he was nonetheless a shopper of the agency, in keeping with a message Smith shared.
The following day, after telling The Instances he deliberate to enter DTLA’s workplace, Smith falsely accused the reporter by way of textual content of harassment and failing to reveal they have been a journalist.
In August, Smith made an ill-fated try and sue the agency, representing himself in a lawsuit accusing them of conserving an excessive amount of of his settlement cash. He requested for the case to be dismissed a month later.
Smith mentioned he turned depending on the agency for earnings and, generally, shelter. In the summertime of 2022, Smith moved right into a downtown constructing the place he paid hire to Yaghoubtil’s uncle, in keeping with textual content messages between the 2 males. The handwritten lease, rife with misspellings, mentioned he might keep there till he “seatel his case whit Dawntow Legislation Group.”
Smith mentioned he made month-to-month journeys to select up checks from DTLA, which was offering him cash for his hire, payments, meals and automotive repairs, in keeping with mortgage statements and textual content messages between the 2 males.
Smith mentioned he flitted out and in of homelessness throughout that point — his first time ever with out secure housing.
“After I met you I had my very own every part,” Smith texted Yaghoubtil July 18, 2022 “Now I don’t even have garments.”
Listed in Smith’s cellphone as “Farid Ferrari,” Yaghoubtil replied, “What occurred to the cash you bought?”
Landlords, landfills and ‘incentives in trade for signatures’
Downtown LA Legislation Group, based in 2016, is run by three longtime buddies.
Yaghoubtil, 42, is cousins with founding companion Daniel Azizi, 43. They met Salar Hendizadeh, 44, in elementary faculty, in keeping with an interview they did with a industrial actual property firm.
All attended Beverly Hills Excessive Faculty collectively, yearbooks present.
Hendizadeh left the agency in October, in keeping with a letter despatched to employees this month. The be aware didn’t clarify why however mentioned Hendizadeh “can’t be conducting any agency associated enterprise.” He didn’t reply to an inquiry from The Instances.
Many purchasers who spoke to The Instances mentioned that among the many companions, Yaghoubtil specifically vied exhausting to get their enterprise.
In January 2019, William Brighton, who was within the VA hospital recovering from a automotive accident, requested a decide for a restraining order towards Yaghoubtil, accusing him of constructing “quite a few visits on the hospital to coerce (and bribe) me to retain them as counsel.”
He mentioned Yaghoubtil supplied him $1,000 to modify from his present regulation agency, in keeping with the request for a restraining order. Brighton later requested a decide to dismiss the case.
DTLA didn’t tackle questions in regards to the restraining order request.
The agency expanded rapidly, outgrowing 4 totally different workplaces earlier than touchdown this 12 months in a 52,000-square-foot headquarters within the Arts District. They moved past their bread-and-butter fare of non-public damage, including departments for mass torts — instances that entails 1000’s of individuals suing over the identical factor — and housing regulation.
An empty plot of land the place the DTLA companions used to personal an house constructing throughout the road from their East Hollywood workplace. A number of tenants sued the companions for dwelling circumstances and the constructing is now demolished.
(Ronaldo Bolanos / Los Angeles Instances)
The trio moonlighted as landlords themselves, proudly owning an house constructing throughout the road from their East Hollywood workplace. They have been sued by a number of items in 2023 and 2024 over dwelling circumstances, together with allegations of infestations of rats, vermin and cockroaches that tenants mentioned made their lives “a dwelling hell.” One of many instances settled for $2 million, in keeping with court docket information.
The companions have been charged in October 2024 with a misdemeanor for failing to take care of the constructing. The case was dismissed and the constructing is now demolished.
Round 2024, their mass torts enterprise started booming, beginning with the landfill lawsuits, wherein the agency accused the operators of recklessly permitting nauseating odors.
Heather Stone mentioned she noticed representatives of DTLA in search of folks for landfill instances exterior a Santa Clarita Walmart in 2024, considered one of two residents who informed The Instances they noticed representatives on the retailer who seemed to be recruiting shoppers.
Castaic’s Chiquita Canyon Landfill, which residents say emits noxious odors, is the topic of a flood of lawsuits introduced by DTLA.
(Allen J. Schaben / Los Angeles Instances)
Banna mentioned in an interview that she later discovered some shoppers for the landfill instances had been receiving reward playing cards to signal petitions at field shops within the space and people names later appeared on signed retainers despite the fact that shoppers have been adamant they by no means signed up for a lawsuit. She accused the agency in her lawsuit of “offering reward playing cards, cash presents, and related incentives in trade for signatures.”
The agency mentioned in an announcement it could be inconceivable for somebody to imagine they have been signing a petition once they have been signing up for a lawsuit as a result of massive variety of paperwork required to come back on board.
“If somebody made that declare, we would definitely discontinue our providers at their request,” the agency mentioned.
A former DTLA case supervisor, who requested to stay nameless, fearing skilled repercussions, mentioned the alleged recruitment effort turned clear to him after he was assigned to name folks from an inventory he’d been supplied of recent Chiquita Canyon shoppers and located a number of who believed they’d signed up for a petition, not a case.
“Lots of these folks have been fully unaware of what they have been signing up for,” the previous case supervisor mentioned.
Surgical procedures and guarantees of ‘lottery cash’
Three former case managers, who labored as liaisons between shoppers and attorneys, described the identical modus operandi at DTLA: Join private damage shoppers, then get them to conform to surgical procedures.
The extra surgical procedures, they have been informed, the extra revenue, as it could make the case extra worthwhile by permitting attorneys to say larger medical damages.
The case managers mentioned companions pushed surgical procedures and would give bonuses when shoppers went beneath the knife. Docs — who stood to profit by having the ability to invoice for the procedures — would have presents dropped off on the workplace, the ex-employees mentioned.
The agency mentioned any allegations of unethical practices have been the results of “disgruntled former staff … who’ve ulterior self-serving motives.”
The case managers reported getting $500 checks from the agency once they bought a shopper to conform to a surgical procedure — usually with the phrase “bonus” within the memo. The Instances seen considered one of these “bonus” checks, which the previous worker mentioned was for a shopper’s pores and skin graft.
In the event that they didn’t persuade their shoppers to get surgical procedures, the previous case managers mentioned they feared dropping their job. Yaghoubtil would ask case managers to ship him an inventory of their surgical procedures on the finish of the month, in keeping with messages seen by The Instances.
“Our sx numbers for the month of Might have been very low,” mentioned Yaghoubtil in a June 3 Groups message to 64 employees members, utilizing an abbreviation for surgical procedure. “Many have been unable to supply even a single process… this isn’t acceptable.”
“How are you going to go a whole month and never have not less than considered one of your instances labored up?” he continued. “It doesn’t go un-noticed and will likely be letting go of those that will not be making an attempt exhausting sufficient.”
The agency mentioned in an announcement that it doesn’t intrude with a shopper’s medical care selections.
“DTLA’s function is to advocate, inform, and assist with transparency, compassion, and respect at each stage of the method,” the agency mentioned.
DTLA not too long ago moved into a brand new workplace on the former Fortunate Model headquarters within the Arts District of Los Angeles.
(Myung J. Chun / Los Angeles Instances)
Jacqueline McClelland, 60, mentioned she was assured “lottery cash” by a DTLA lawyer in July 2018 after she slipped in a puddle of oil in a Willowbrook buying plaza.
The insurer for the plaza known as her up and supplied her $1 million if she didn’t lawyer up, she mentioned. However she mentioned her DTLA lawyer promised they may get her way more — so long as she went to all of the medical doctors they beneficial. She turned the insurer down.
Her case settled for $350,000.
It was not even near sufficient to pay for the half-million in charges she mentioned she’d racked up, primarily from going to medical doctors. She mentioned she continues to be in excruciating again ache from her surgical procedure.
DTLA took 46% of the settlement and despatched the remainder of the cash to a decide to determine the way to divvy between her and the 31 medical doctors, clinics and mortgage corporations she owes, in keeping with a court docket report filed on behalf of DTLA to find out the distribution. A volunteer at a Watts highschool, McClelland has spent a 12 months lawyerless in court docket preventing for any little bit of it she will be able to get.
“Is somebody serving to you?” requested Decide Gary Tanaka at a Dec. 17 listening to in his Torrance courtroom the place she had been showing with such regularity that the clerk is aware of her by first title.
“Nobody. Sorry, your honor, nobody has helped me in any respect,” mentioned McClelland, standing in a court docket continuing she mentioned repeatedly she didn’t perceive. “Downtown LA Legislation simply gave me to the wolves.”
“I’d agree with that,” mentioned Scott Meehan, an lawyer representing one of many medical doctors preventing her for her settlement cash.
DTLA mentioned it couldn’t touch upon privileged conversations with McClelland. The agency mentioned in an announcement that every one medical suppliers had reputable liens that entitled them to cash from the shopper’s settlement, together with McClelland’s.
Jacqueline McClelland, a former shopper of DTLA, stands exterior Los Angeles Superior Court docket in Torrance on Dec. 17 forward of her court docket listening to.
(Myung J. Chun / Los Angeles Instances)
The Instances discovered court docket information for greater than 60 DTLA shoppers who had prices, usually medical payments, that ended up being greater than their settlement. In these instances, DTLA couldn’t persuade the medical doctors to scale back charges, and the lawyer would hand the remaining cash over to let the court docket determine the way to divvy it up amongst everybody who wanted to be paid.
However the attorneys get their lower — in some instances, greater than three-quarters of the settlement, in keeping with lawsuits filed on the agency’s behalf to find out who will get the remaining cash.
“Our shoppers solely pay for authorized charges and prices in the event that they win a lawsuit or get a settlement,” DTLA mentioned in an announcement.
After he was overwhelmed by a Santa Monica safety guard, David Villatoro, a 33-year-old building employee, mentioned a DTLA lawyer informed him he might get half one million simple, in all probability double that. However provided that he went to a litany of medical doctors’ appointments, together with a neck surgical procedure.
It will imply dropping his building job and occurring incapacity. However he claims his lawyer mentioned the surgical procedure would make the case extra worthwhile.
“That’s the place the massive bucks are available,” he recalled the lawyer saying.
The massive bucks by no means got here.
As an alternative, months after the case settled, Villatoro bought an electronic mail telling him to not contact the agency anymore about his case. Attorneys had taken 58% of his settlement cash — about $72,000 — and he must go to court docket to combat for a lower of what was left together with the medical doctors.
He mentioned he nonetheless can’t flip his head absolutely to the appropriate.
“I’m simply so confused,” he mentioned. “I used to be so naive. It was my first time ever, ever, ever getting a lawyer.”
Laura Stephenson, a 57-year-old baker, was informed by her DTLA lawyer that her slip-and-fall in her Menifee cul-de-sac might web hundreds of thousands. However she would wish to do a shoulder surgical procedure.
She hesitated. It will imply an excessive amount of time away from her bakery and he or she wasn’t certain she needed to do it. The lawyer satisfied her by providing her a mortgage for $10,000, she mentioned.
Greater than 4 years after the autumn, she has obtained no cash and may’t absolutely transfer her arm. The agency took 77% of her $175,000 settlement, in keeping with a court docket submitting to determine the way to distribute the cash. The remainder went to the court docket to distribute, and he or she continues to be preventing to get a portion.
“I’m dwelling this nightmare,” mentioned Stephenson, considered one of eight folks The Instances spoke with who mentioned they filed a criticism with the State Bar.
The agency mentioned all medical therapy was voluntary and ethics guidelines stop sharing extra details about discussions with shoppers.
“DTLA doesn’t drive anybody to obtain medical therapy they are not looking for,” the agency mentioned.
Uber, a standard goal of DTLA, sued the agency and one of many foremost surgeons utilized by shoppers, Greg Khounganian, final summer season for racketeering, alleging the agency had “facet agreements” with him to inflate medical payments for pointless procedures. Uber’s lawsuit alleged that many sufferers underwent an pointless spinal fusion that takes months to get well from so as to get a bigger settlement.
In some instances, Uber alleged, Khounganian inflated the payments by as a lot as 640%. If the case didn’t accept a lot, the lawsuit said, Khounganian would conform to dramatically scale back their liens.
In an Instagram publish, DTLA known as the lawsuit a “calculated try by a billion-dollar company” to suppress reputable claims. An lawyer representing Khounganian mentioned the physician had a spotless skilled report and had by no means confronted any disciplinary motion.
“He’s assuredly a first-rate and broadly revered orthopedic surgeon,” Stephen Larson, an lawyer for Khounganian, mentioned in an announcement. “Uber’s meritless lawsuit, we imagine, is a part of its nationwide political and lawfare marketing campaign to suppress legal responsibility for accidents brought on by Uber’s drivers.”
Khounganian sought to have Uber’s case towards him dismissed, along with his attorneys calling it in a single court docket submitting “a lawsuit designed purely for tabloid impact with no significant effort at substance.”
One particular person, who noticed one other physician for a coronary heart valve situation that heightened the danger of issues, might now not stroll for greater than 10 minutes after their surgical procedure, Uber alleged within the lawsuit.
DTLA shoppers mentioned the agency would usually insist on sending them to particular L.A. medical doctors even when they lived in a unique county, or, in some instances, a unique state.
Christy Strickland, who had a case over a fall that occurred whereas working for the supply app Instacart, mentioned the agency insisted L.A. medical doctors have been cheaper than these in Texas. So she mentioned they flew her in from Houston and as soon as gave her fuel cash to drive, placing her up in a lodge for 2 weeks to recuperate together with two of her youngsters.
These journey bills would complete greater than $10,000 — together with two $482 Uber rides, in keeping with a breakdown. She mentioned she was by no means informed these journey prices can be popping out of her cash.
“YOU AND YOUR DOCTOR suggested me to get these surgical procedures and I’ve informed you that I’m nonetheless in ache much more for the reason that surgical procedure,” she emailed Yaghoubtil in July 2023. “Are you aware the way it feels to get up within the morning and your again hurts so dangerous all you are able to do is simply lay there till it subsides?”
In November, Yaghoubtil, talking on a podcast episode known as “Lawyering With Empathy,” emphasised his focus was by no means high-dollar verdicts. The well-being of shoppers, he mentioned, at all times got here earlier than revenue.
“We love a shopper,” he mentioned. “If we’ve got to, we’ll go down preventing with them.”
Instances employees author Christopher Buchanan contributed reporting.
