Helen Saulnier 
Damian Williams, the United States Attorney for the Southern District of New York, announced that JAESON BIRNBAUM, a disbarred attorney, was sentenced currently to 36 months in jail for defrauding buyers in his now bankrupt litigation finance organization, “Cash4Instances.” BIRNBAUM formerly pled guilty to securities fraud for misappropriating investors money and pledging the exact same lawsuit recoveries as collateral to numerous functions, contrary to his representations. U.S. District Paul A. Crotty imposed the sentence in Manhattan federal courtroom.
U.S. Attorney Damian Williams mentioned: “As a law firm Birnbaum comprehended the value of honest dealings and putting his buyers initial. Rather, Birnbaum selected to lie to his traders in buy to steal their cash and address up his fraud by doctoring company data. By way of today’s sentence, Birnbaum has been held accountable for this really serious fraud.”
According to statements in the Facts, and other general public filings and statements in court docket:
From at least in or about 2017 by way of in or about 2019, BIRNBAUM obtained extra than $3 million in investments for Funds4Conditions dependent on fraudulent misrepresentations. These investments ended up in the type of promissory notes, titled “Investor Stability Agreements” (“ISAs”), which purported to offer the relevant investors with a stability fascination in the recoveries associated with particular specified lawsuits that have been ostensibly ordered by Income4Cases. In truth, in some occasions, the lawsuits that were being possibly by no means funded by Cash4Circumstances or BIRNBAUM had previously pledged their recoveries to other functions.
To assist carry out his fraud, BIRNBAUM directed an worker to falsify his company’s textbooks and documents to make it show up that the recoveries from lawsuits that had presently been paid out ended up still accessible to be pledged as collateral to new investors.
BIRNBAUM also misappropriated a considerable portion of investors’ funds for his particular use and to make promised payments to before buyers in Ponzi-like method. As just one case in point, BIRNBAUM attained a $1 million investment for Cash4Conditions in September 2019. Prior to this financial investment, BIRNBAUM informed the trader that Cash4Scenarios would use the dollars exclusively for improvements to litigants. Nevertheless, opposite to this illustration, BIRNBAUM employed the cash to make a $530,000 down payment on the buy of a household and to fork out for other particular fees and Ponzi-like payments to before traders.
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BIRNBAUM, 48, of Boca Raton, Florida, was also sentenced to a three-yr term of supervised release. He was even further purchased to pay out restitution to his victims in the amount of money of $2,661,072.24 and to forfeit $2,661,072.24 in fraud proceeds.
Mr. Williams praised the investigative function of the United States Postal Inspection Provider and thanked the U.S. Securities and Exchange Fee for its assistance.
This circumstance is remaining handled by the Office’s Securities and Commodities Fraud Task Pressure. Assistant United States Attorney Daniel Reduction is in charge of the prosecution.
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