Sereen Banna stated the companions of Downtown LA Regulation Group referred to 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 stated she embraced the position she had in empowering residents to tackle corporations suspected of polluting their neighborhoods.
Her bosses have been proud, too, she stated. Banna, 28, recalled them saying she would make all of them billionaires sometime.
However in early 2024, Banna stated, she found a troubling development in a number of 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 Regulation Group, also called DTLA, stating the agency failed to deal with her complaints about “unlawful solicitation, in addition to misleading and unethical practices geared toward persuading people to develop into 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 susceptible people.”
DTLA referred to as the allegations “baseless,” saying they got here from a disgruntled former worker.
“Any allegations of fraud, paid referrals, or unethical practices by DTLA Regulation Group will not be solely unsubstantiated, however false,” the agency stated in an announcement. “We intend to combat this within the courtroom of regulation, the place the details will present that we function with unwavering integrity, prioritizing consumer welfare.”
Banna’s lawsuit caps a tumultuous yr for DTLA. A partnership between three childhood associates, DTLA has grown from a small agency centered on automobile 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 accredited final spring by Los Angeles County — the most important of its form 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 stated recruiters paid them to file a lawsuit, together with 4 who stated they have been informed to manufacture claims. The L.A. County district legal professional’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 techniques to herald new shoppers and reap earnings stretching again years.
Greater than a dozen individuals represented by DTLA in private damage instances stated they have been recruited at a disaster level of their lives with guarantees of large payouts and pressured into costly surgical procedures that attorneys stated would make their case extra useful. The extra medical procedures, they have been informed, the extra damages attorneys may declare.
On the finish, some shoppers say, they have been left with a fraction of what they have been promised.
DTLA stated in an announcement it exists “to help shoppers by way of a number of the most troublesome moments of their lives.”
“That features serving to them keep away from pointless monetary stress whereas their instances are pending,” the agency stated. “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 take heed to her complaints of unethical solicitation. The agency has denied wrongdoing.
(Allen J. Schaben / Los Angeles Instances)
Banna stated in her lawsuit she “repeatedly complained” about how shoppers have been being solicited.
She stated in an interview she reported the primary paid landfill consumer she was conscious of — a girl who acquired 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 stated her boss informed her the alleged funds could be investigated.
“At that time, I used to be reminded it was above my pay grade,” she stated.
‘A extremely massive a part of the recruitment course of’
Banna stated 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 accommodations.
Banna stated considered one of her colleagues, an consumption coordinator, informed her a person named Kevin Johnson had paid one intercourse employee $20 to return into the workplace.
Over the past two years, 5 ex-workers informed The Instances, Johnson grew to become an more and more frequent 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 hearth. 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 based on his social media, didn’t reply to messages or a letter left at his house. The agency is at present representing him in a lawsuit over a Mid-Metropolis automobile crash.
California regulation bans a apply often known as capping, by which 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 stated Johnson was liable for bringing in a lot of shoppers.
“He’s a very massive a part of the recruitment course of for Downtown LA,” stated Banna, who described how she was referred to as to do consumption with intercourse abuse shoppers after Johnson introduced them into the places of work of one of many companions.
Johnson wasn’t a DTLA worker, but employees say he was a well-recognized face across the workplace.
He was shut with the companions and chummy with staff, handing out fortunate $2 payments to employees final vacation season, three former staff stated. Two stated that at one level he had his personal swipe card, so he may come and go freely.
A digital path connects Johnson to DTLA’s consumer checklist.
The Instances discovered greater than a dozen associates of Johnson’s on Fb who appeared to have a intercourse abuse lawsuit filed with the county. To do that, The Instances cross-referenced a listing of county intercourse abuse plaintiffs represented by DTLA with Johnson’s Fb associates 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,” based on a Money app transaction. Ellis didn’t reply to a message and a letter left at their house.
“DTLA doesn’t pay shoppers to retain our providers or for referrals,” the agency stated in an announcement.
Austin Beagle and Nevada Barker, former shoppers of DLTA, stated 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 footage as the person who paid her.
The couple stated they have been beneath the impression they have been being compensated to be actors in a film. The agency later requested the courtroom to dismiss their lawsuits.
“He stated he labored for a referral service and the lawsuit wanted sufficient contributors to undergo,” stated Beagle. “He didn’t work for the regulation workplace.”
‘Inform her I obtained $ for her’
A number of shoppers informed The Instances they have been provided cash by DTLA associate Farid Yaghoubtil if they might discover individuals to enroll in lawsuits with the agency.
“He referred to as it an development, ” stated LaShelle Allison, 53, a former consumer who stated she referred a number of automobile accident victims for Yaghoubtil. “Right here’s $250,’ ‘Right here’s $650,’ ‘Right here’s $500 for lease.”
California is likely one of the few states the place legal professionals are allowed to mortgage shoppers cash.
The State Bar has a common rule that legal professionals will not be speculated to pay “private or enterprise bills.” The bar makes exceptions that embrace if the consumer 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 consumer, with compensation contingent on the result of the matter.
DTLA stated in an announcement that it gives small loans to shoppers “in restricted conditions.”
“The agency has provided small, interest-free micro-advances to assist with short-term wants like non permanent housing or fundamental bills, particularly so shoppers don’t really feel compelled to show to third-party lenders,” the agency stated. “These advances are completely 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 automobile crashes, as soon as after he was punched at an evening membership and once more over a procuring cart mishap at Ceremony Support.
Smith referred 10 potential shoppers to Yaghoubtil, almost all automobile crash victims, based on textual content messages between the 2 males. In return, Smith stated, he was informed he’d be compensated, although he stated he was upset to seek out he was by no means paid for the shoppers he referred.
As a substitute, Smith stated he acquired month-to-month advances of about $2,000 based mostly on potential settlements the agency was anticipating in his instances.
Smith stated he would encourage shoppers to enroll in instances with DTLA however didn’t pay them. He informed some about cash Yaghoubtil was providing.
“Inform her I obtained $ for her,” Yaghoubtil texted Aug. 9, 2022, concerning a girl who Smith stated had been in an accident and was contemplating not shifting ahead with the agency. “Get her again for me.”
Akeem Smith stands in entrance of the outdated 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 “the whole lot you informed her was a lie” and to remind The Instances that he was nonetheless a consumer of the agency, based on 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 to sue the agency, representing himself in a lawsuit accusing them of retaining an excessive amount of of his settlement cash. He requested for the case to be dismissed a month later.
Smith stated he grew to become depending on the agency for earnings and, typically, shelter. In the summertime of 2022, Smith moved right into a downtown constructing the place he paid lease to Yaghoubtil’s uncle, based on textual content messages between the 2 males. The handwritten lease, rife with misspellings, stated he may keep there till he “seatel his case whit Dawntow Regulation Group.”
Smith stated he made month-to-month journeys to choose up checks from DTLA, which was offering him cash for his lease, payments, meals and automobile repairs, based on mortgage statements and textual content messages between the 2 males.
Smith stated he flitted out and in of homelessness throughout that point — his first time ever with out steady housing.
“After I met you I had my very own the whole lot,” 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 change for signatures’
Downtown LA Regulation Group, based in 2016, is run by three longtime associates.
Yaghoubtil, 42, is cousins with founding associate Daniel Azizi, 43. They met Salar Hendizadeh, 44, in elementary college, based on 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, based on a letter despatched to employees this month. The word didn’t clarify why however stated Hendizadeh “can’t be conducting any agency associated enterprise.” He didn’t reply to an inquiry from The Instances.
Many consumers who spoke to The Instances stated that among the many companions, Yaghoubtil particularly vied laborious to get their enterprise.
In January 2019, William Brighton, who was within the VA hospital recovering from a automobile accident, requested a decide for a restraining order towards Yaghoubtil, accusing him of creating “quite a few visits on the hospital to coerce (and bribe) me to retain them as counsel.”
He stated Yaghoubtil provided him $1,000 to change from his present regulation agency, based on 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 completely different places of work earlier than touchdown this yr in a 52,000-square-foot headquarters within the Arts District. They moved past their bread-and-butter fare of private damage, including departments for mass torts — instances that includes 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 condo constructing throughout the road from their East Hollywood workplace. A number of tenants sued the companions for residing situations and the constructing is now demolished.
(Ronaldo Bolanos / Los Angeles Instances)
The trio moonlighted as landlords themselves, proudly owning an condo constructing throughout the road from their East Hollywood workplace. They have been sued by a number of models in 2023 and 2024 over residing situations, together with allegations of infestations of rats, vermin and cockroaches that tenants stated made their lives “a residing hell.” One of many instances settled for $2 million, based on courtroom 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, by which the agency accused the operators of recklessly permitting nauseating odors.
Heather Stone stated she noticed representatives of DTLA on the lookout for individuals 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 gave the impression 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 stated in an interview that she later realized 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 comparable incentives in change for signatures.”
The agency stated in an announcement it might be not possible for somebody to consider they have been signing a petition once they have been signing up for a lawsuit because of the giant variety of paperwork required to return on board.
“If somebody made that declare, we would definitely discontinue our providers at their request,” the agency stated.
A former DTLA case supervisor, who requested to stay nameless, fearing skilled repercussions, stated the alleged recruitment effort grew to become clear to him after he was assigned to name individuals from a listing he’d been supplied of recent Chiquita Canyon shoppers and located a number of who believed that they had signed up for a petition, not a case.
“Loads of these individuals have been utterly unaware of what they have been signing up for,” the previous case supervisor stated.
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: Enroll private damage shoppers, then get them to conform to surgical procedures.
The extra surgical procedures, they have been informed, the extra revenue, as it might make the case extra useful by permitting legal professionals to say increased medical damages.
The case managers stated companions pushed surgical procedures and would give bonuses when shoppers went beneath the knife. Medical doctors — who stood to learn by having the ability to invoice for the procedures — would have presents dropped off on the workplace, the ex-employees stated.
The agency stated 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 obtained a consumer to conform to a surgical procedure — typically with the phrase “bonus” within the memo. The Instances seen considered one of these “bonus” checks, which the previous worker stated was for a consumer’s pores and skin graft.
In the event that they didn’t persuade their shoppers to get surgical procedures, the previous case managers stated they feared dropping their job. Yaghoubtil would ask case managers to ship him a listing of their surgical procedures on the finish of the month, based on messages seen by The Instances.
“Our sx numbers for the month of Could have been very low,” stated Yaghoubtil in a June 3 Groups message to 64 employees members, utilizing an abbreviation for surgical procedure. “Many have been unable to provide even a single process… this isn’t acceptable.”
“How will you go a complete 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 laborious sufficient.”
The agency stated in an announcement that it doesn’t intrude with a consumer’s medical care selections.
“DTLA’s position is to advocate, inform, and help with transparency, compassion, and respect at each stage of the method,” the agency stated.
DTLA just lately 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, stated she was assured “lottery cash” by a DTLA legal professional in July 2018 after she slipped in a puddle of oil in a Willowbrook procuring plaza.
The insurer for the plaza referred to as her up and provided her $1 million if she didn’t lawyer up, she stated. However she stated her DTLA legal professional promised they might get her way more — so long as she went to all of the docs they really useful. 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 stated she’d racked up, primarily from going to docs. She stated 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 right way to divvy between her and the 31 docs, clinics and mortgage corporations she owes, based on a courtroom file filed on behalf of DTLA to find out the distribution. A volunteer at a Watts highschool, McClelland has spent a yr lawyerless in courtroom combating for any little bit of it she will be able to get.
“Is somebody serving to you?” requested Choose 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,” stated McClelland, standing in a courtroom continuing she stated repeatedly she didn’t perceive. “Downtown LA Regulation simply gave me to the wolves.”
“I might agree with that,” stated Scott Meehan, an legal professional representing one of many docs combating her for her settlement cash.
DTLA stated it couldn’t touch upon privileged conversations with McClelland. The agency stated in an announcement that each one medical suppliers had reliable liens that entitled them to cash from the consumer’s settlement, together with McClelland’s.
Jacqueline McClelland, a former consumer of DTLA, stands exterior Los Angeles Superior Court docket in Torrance on Dec. 17 forward of her courtroom listening to.
(Myung J. Chun / Los Angeles Instances)
The Instances discovered courtroom 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 docs to scale back charges, and the legal professional would hand the remaining cash over to let the courtroom determine the right way to divvy it up amongst everybody who wanted to be paid.
However the legal professionals get their reduce — in some instances, greater than three-quarters of the settlement, based on 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 stated in an announcement.
After he was crushed by a Santa Monica safety guard, David Villatoro, a 33-year-old building employee, stated a DTLA legal professional informed him he may get half one million straightforward, in all probability double that. However provided that he went to a litany of docs’ appointments, together with a neck surgical procedure.
It might imply dropping his building job and happening incapacity. However he claims his legal professional stated the surgical procedure would make the case extra useful.
“That’s the place the large bucks are available,” he recalled the legal professional saying.
The large bucks by no means got here.
As a substitute, months after the case settled, Villatoro obtained 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 courtroom to combat for a reduce of what was left together with the docs.
He stated he nonetheless can’t flip his head totally to the suitable.
“I’m simply so confused,” he stated. “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 legal professional that her slip-and-fall in her Menifee cul-de-sac may internet hundreds of thousands. However she would want to do a shoulder surgical procedure.
She hesitated. It might imply an excessive amount of time away from her bakery and he or she wasn’t positive she needed to do it. The legal professional satisfied her by providing her a mortgage for $10,000, she stated.
Greater than 4 years after the autumn, she has acquired no cash and might’t totally transfer her arm. The agency took 77% of her $175,000 settlement, based on a courtroom submitting to determine the right way to distribute the cash. The remaining went to the courtroom to distribute, and he or she continues to be combating to get a portion.
“I’m residing this nightmare,” stated Stephenson, considered one of eight individuals The Instances spoke with who stated they filed a criticism with the State Bar.
The agency stated all medical therapy was voluntary and ethics guidelines stop sharing extra details about discussions with shoppers.
“DTLA doesn’t pressure anybody to obtain medical therapy they are not looking for,” the agency stated.
Uber, a standard goal of DTLA, sued the agency and one of many most important 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 better 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 acknowledged, Khounganian would conform to dramatically cut back their liens.
In an Instagram submit, DTLA referred to as the lawsuit a “calculated try by a billion-dollar company” to suppress reliable claims. An legal professional representing Khounganian stated the physician had a spotless skilled file and had by no means confronted any disciplinary motion.
“He’s assuredly a first-rate and broadly revered orthopedic surgeon,” Stephen Larson, an legal professional for Khounganian, stated in an announcement. “Uber’s meritless lawsuit, we consider, is a part of its nationwide political and lawfare marketing campaign to suppress legal responsibility for accidents attributable to Uber’s drivers.”
Khounganian sought to have Uber’s case towards him dismissed, along with his attorneys calling it in a single courtroom 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 problems, may now not stroll for greater than 10 minutes after their surgical procedure, Uber alleged within the lawsuit.
DTLA shoppers stated the agency would typically insist on sending them to particular L.A. docs even when they lived in a distinct county, or, in some instances, a distinct state.
Christy Strickland, who had a case over a fall that occurred whereas working for the supply app Instacart, stated the agency insisted L.A. docs have been cheaper than these in Texas. So she stated they flew her in from Houston and as soon as gave her gasoline cash to drive, placing her up in a resort for 2 weeks to recuperate together with two of her kids.
These journey bills would whole greater than $10,000 — together with two $482 Uber rides, based on a breakdown. She stated she was by no means informed these journey prices could 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. “Have you learnt the way it feels to get up within the morning and your again hurts so unhealthy all you are able to do is simply lay there till it subsides?”
In November, Yaghoubtil, talking on a podcast episode referred to as “Lawyering With Empathy,” emphasised his focus was by no means high-dollar verdicts. The well-being of shoppers, he stated, at all times got here earlier than revenue.
“We love a consumer,” he stated. “If we’ve to, we’ll go down combating with them.”
Instances employees author Christopher Buchanan contributed reporting.
