LA Law Firm Faces Charges for Practicing Without License in Iowa

An out-of-state law firm at the center of a massive Los Angeles sex abuse scandal is now facing state bar charges for illegally signing up clients in Iowa and several other states. The State Bar of California charged partners of the Downtown LA Law Group with practicing law without a license, a violation that puts innocent Iowans at risk and undermines the rule of law.

Targeting Iowans Without a License

The bar charged Farid Yaghoubtil and Daniel Azizi, two founding partners of the personal injury firm, along with litigation attorney Igor Fradkin, on Monday. According to the complaint, the firm signed up accident victims across the country despite having no attorneys who could legally litigate the cases outside California. The firm took on clients in Iowa, Texas, Florida, Maryland, Arizona, Michigan, Tennessee and Virginia.

Yaghoubtil faces 16 counts, including practicing law without a license, charging illegal fees, and continuing to represent a client that had fired the firm. Azizi faces 11 counts, and Fradkin faces four.

A spokesperson for Downtown LA Law Group did not immediately provide a comment in response to the inquiry. The firm has previously denied all wrongdoing.

Putting Clients at Risk

Iowans expect fair play and accountability, especially from the legal profession. When out-of-state firms bypass licensing laws, they strip away the protections that state bars provide to local residents.

The public depends on attorneys to follow the law and to be transparent about where they are authorized to practice, said George Cardona, State Bar chief trial counsel, in a statement.

When attorneys extend their practice into jurisdictions where they are not licensed or allow staff to engage in unauthorized legal work in those jurisdictions, they put clients at risk.

Attorneys can take cases in states where they are not licensed, but they must partner with local counsel or get permission from the court. The California firm allegedly skipped these critical steps, leaving clients without proper legal representation and violating state laws designed to protect consumers.

A Pattern of Deception

The bar complaint details a troubling pattern of deception that stretches across state lines. In one instance, the firm signed up a Texas resident after she was injured at a hotel in Fort Worth. The firm secured a settlement of about $1.1 million and took roughly $455,000 as their cut.

In Maryland, the firm signed up a mother and daughter involved in a Lyft accident near Baltimore. The firm provided the mother with bicoastal medical treatment, including spinal surgery in L.A. Later, while under investigation for its out-of-state practices, the firm allegedly asked the client to sign a document that falsely stated the firm had made clear they were not licensed in Maryland.

The bar also alleged the firm continued to represent a California resident after she asked to terminate the firm. The client had waited nearly a year without the firm filing a lawsuit on her behalf. About a week after she asked them to close out her case, the firm sent a demand letter to the defendant's insurer even though they were no longer allowed to represent her.

Ties to Massive $4-Billion LA Scandal

Downtown LA Law Group is currently facing another investigation from the state bar related to thousands of sexual abuse lawsuits filed against Los Angeles County. The district attorney's office is also probing the firm. Both are looking into allegations that recruiters paid clients to sign up with the firm and file sex abuse claims, some of which were allegedly fabricated.

The firm has denied these allegations, stating it categorically does not engage in, nor has it ever condoned, the exchange of money for client retention. When the state bar probe was revealed in January, the firm said it was cooperating with investigators and taking steps to protect the privacy rights of the plaintiffs.

Another founding partner, Salar Hendizadeh, left the firm last October. The bar charged him on March 5 with similar allegations of signing up clients out of state without a license. The firm even operated under the name Lone Star Injury Law Firm in Texas, touting itself as Texas's number one injury law firm, despite having no legitimate presence there.

How Iowans Can Protect Themselves

Legal experts note that Iowans should always verify that their attorney is licensed to practice in the state. The Iowa Supreme Court Attorney Disciplinary Board provides resources for residents to check the status of any lawyer. When an out-of-state firm reaches out after an accident, taking the time to confirm their credentials can prevent significant legal and financial headaches down the road. Firms that operate without local licenses often fail to understand Iowa's specific tort laws, which can jeopardize a client's case.

The charges against Downtown LA Law Group highlight a broader issue of accountability within the legal profession. When firms prioritize aggressive client acquisition over ethical compliance, the victims are often ordinary people seeking help after a traumatic event. The State Bar of California is sending a clear message that unauthorized practice will not be tolerated, but the burden also falls on consumers to stay vigilant. Iowans deserve legal representation that respects state laws and prioritizes clients over out-of-state profits.