L.A. County Pauses Some Payouts from $4B Sex Abuse Settlement Amid Fraud Probe

District attorney requests 6-month delay to investigate allegations of fraudulent claims

Jan. 29, 2026 at 7:31pm

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Los Angeles County will halt some payments from its record $4 billion sex abuse settlement, leaving many plaintiffs on edge as prosecutors ramp up an investigation into allegations of fraud. The county agreed to the payout last year to settle a flood of lawsuits from people who said they were sexually abused by staff in government-run foster homes and juvenile camps, but the district attorney has now requested a six-month delay to complete an investigation into potential fraud.

Why it matters

The historic $4 billion settlement was intended to provide compensation to thousands of victims of sexual abuse, but the fraud allegations have raised concerns about the integrity of the process and the risk of diluting funds that should go to legitimate claimants. The investigation also comes as the county faces an additional 5,500 new claims, potentially leading to an even larger payout.

The details

After a request from District Attorney Nathan Hochman, the county will pause payments for unvetted claims that have been flagged as requiring higher scrutiny. Investigators have found 'a significant number of cases where we believe there is potential fraud,' according to the prosecutor's office. The State Bar is also conducting a separate inquiry into fraud allegations. The county plans to turn over $400 million on Friday to cover claims that have already been validated, but the rest of the payments will be on hold until the claims can 'be appropriately investigated.'

  • On Jan. 9, 2026, District Attorney Hochman formally requested the county pause the distribution of funds for at least six months.
  • The county plans to turn over $400 million on Friday, January 31, 2026.

The players

Joe Nicchitta

The chief executive officer of Los Angeles County.

Nathan Hochman

The Los Angeles County District Attorney who announced an investigation into the historic $4 billion sex abuse settlement.

Andy Baum

The county's main outside attorney working on the $4 billion sex abuse settlement.

Dawyn Harrison

The county's top lawyer.

Andrea Proctor

A 45-year-old plaintiff who sued over alleged abuse at MacLaren Children's Center and is desperately in need of the settlement funds to stabilize her life.

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What they’re saying

“Premature disbursement of settlement funds poses a substantial risk of interfering with the investigation by complicating witness cooperation, obscuring financial trails, and impairing my office's ability to identify and prosecute fraudulent activity.”

— Nathan Hochman, Los Angeles County District Attorney (Letter to Andy Baum)

“The County takes extremely seriously its obligations to provide just compensation to survivors. Preventing fraud is central to that commitment. Fraudulent claims of sexual assault harm survivors by diluting compensation for survivors and casting public doubt over settlements as a whole.”

— Joe Nicchitta, Los Angeles County Chief Executive Officer (County statement)

“The whole lawsuit just blew air out of me. I'm just sitting out here empty.”

— Andrea Proctor (Los Angeles Times)

What’s next

The judge in the case will decide on Tuesday whether or not to allow the county to pause payments for the unvetted claims while the district attorney's investigation is ongoing.

The takeaway

This case highlights the challenges of administering a massive settlement program, where the need to provide timely compensation to victims must be balanced against the risk of fraudulent claims diluting the funds. The investigation raises questions about oversight and accountability in the settlement process, as well as the long-term impact on victims who are left in limbo awaiting their payouts.