New York attorney disbarred soon after admitting litigation funding scam

(Reuters) – A New York point out court docket has disbarred the founder of a litigation finance company who will be sentenced future month in federal court docket for his role in a multimillion-dollar securities fraud plan.

Jaeson Birnbaum, a member of the New York state legal professional bar due to the fact 2003, did not contest disciplinary proceedings that have been brought versus him by the point out Legal professional Grievance Committee for the First Judicial Office.

In September, he pleaded guilty to securities fraud tied to his litigation funding business Income4Cases Inc. The New York appeals court’s June 21 disciplinary get mentioned Birnbaum’s felony conviction needed automatic disbarment.

Birnbaum, 48, could not be instantly reached for remark on Thursday. His law firm in the felony scenario, Sam Braverman of Fasulo Braverman & Di Maggio, explained to Reuters that Birnbaum “accepted responsibility at the very first possibility.”

Representatives from the Lawyer Grievance Committee also did not immediately reply to messages in search of comment.

Litigation funding requires a 3rd celebration that money a case or portfolio of situations in exchange for a piece of any judgment.

Lots of litigation funders operate out of New York and Chicago, and the practice has grown in the U.S. in recent years.

Manhattan prosecutors stated final 12 months that Birnbaum “conned buyers via a sequence of lies about Cash4Cases.” The governing administration alleged he made use of the enterprise to choose dollars for himself, irrespective of telling investors he was employing funds to again litigants.

Birnbaum, in accordance to charging paperwork, “solicited and acquired more than $3 million in investments for Income4Circumstances based mostly on fraudulent misrepresentations” from 2017 to 2019.

The U.S. Securities and Exchange Commission very last 12 months filed a linked civil action in opposition to Birnbaum. He agreed to a consent judgment to resolve the circumstance.

The disbarment order famous, as prosecutors claimed, that Birnbaum attempted to deal with up his fraudulent action.

Birnbaum, the appeals courtroom said, “directed an employee to falsify publications and documents to make it surface that specified instances were being accessible to be pledged as collateral to new investors, when in simple fact the matters had previously concluded.”

Birnbaum’s sentencing is scheduled for July 7 before U.S. District Choose Paul Crotty in Manhattan. He faces a sentencing guideline selection of among 41 and 51 months in prison, courtroom records present.

The scenario is In the Subject of Jaeson L. Birnbaum, New York Supreme Courtroom, Appellate Division Initially Section, No. 2022-01393.

For petitioner: Jorge Dopico of Lawyer Grievance Committee

For respondent: Pro se

Read a lot more:

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Litigation funder Burford posts net 2021 loss citing pandemic situation delays

Litigation funders howl as N.J. adopts disclosure requirement

(UPDATE: This post was up to date with remark from protection counsel.)

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