The founder of bankrupt New York-based litigation finance firm Cash4Cases has pleaded guilty to securities fraud. Jaeson Birnbaum admitted as part of his plea that he used investor funds for his own purposes and double-pledged the same case recoveries as collateral to multiple parties.
U.S. Attorney Audrey Strauss said: “Jaeson Birnbaum conned investors through a series of lies about his litigation finance business, Cash4Cases. He used Cash4Cases to steal cash for himself and then tried to cover up his scheme by directing a subordinate to falsify books and records. Now Birnbaum awaits sentencing for his fraudulent conduct.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Everything Mr. Birnbaum told his investors was a lie framed around the idea of a good investment. Postal Inspectors see these cases all the time and remind investors to thoroughly check the fine print on any investment offer, and if the return seems too lucrative or unreal, pass it by to make sure your money goes to fund your lifestyle and not the criminal’s.”
Birnbaum faces a maximum 20 years in prison.
More details from the US Department of Justice.