Villadom Times Weekly Newpaper Online-November 24, 2010 Issue

November 24, 2010 THE VILLADOM TIMES II • Page 11 Lawsuit Financing Firm Prospers Amid Gloom As the economy weakens, J a e s o n Birnbaum’s business gets stronger. Sevenyear-old Cash4Cases Inc. is one of a growing BIRNBAUM number of companies - not without controversy - that advance money to people waiting for the outcome or payout from a lawsuit, most commonly personal injury, product liability or medical malpractice. Birnbaum, a lawyer from Upper Saddle River, charges a hefty interest rate - generally 3 percent a month - on the advance. He funds the operation with bank loans, and, more recently, capital from investors - to whom, he says, he pays 12 percent interest. Birnbaum said he has seen a surge in willing lenders and advance recipients lately, as financially strapped litigants look for short-term cash and investors seek an alternative to the plummeting financial markets. “You hear so much gloom in the media,” said Birnbaum, 36, whose company has offices in New York, Florida and Boston. “In our business, it’s a great time for us.” Birnbaum, who grew up in Saddle River, said he started the business after he found it tough to attract clients for a New York personal injury firm he started with three friends. Cash advance companies had frequently approached him looking for clients, said Birnbaum, who figured he could start a similar business. The business, which started with four employees in 2003, now has 19. The company has so far paid more than 200 advances totaling about $7 million, Birnbaum said. To limit risk, he said, Cash4Cases generally advances no more than 10 percent of the client’s expected settlement. “We are very conservative,” he added. The practice has attracted little interest from New Jersey authorities, but has come under scrutiny in other states. In 2005, then New York Attorney General Eliot Spitzer settled with nine cash advance companies after his office said it became concerned that some arrangements “could exploit consumers due to the complex nature of the transaction.” The settlement required the companies, from New York, Nevada and Illinois, to more clearly set out the terms of the advance and the amount to be repaid, and required them to give borrowers a five-day period to cancel the deal. Birnbaum said he used to pay investors 17 percent interest on a loan, but recently reduced the rate to 12 percent when the return on investments elsewhere declined. And there is no shortage of clients looking for cash, he said. Over the last couple of months he’s seen the “largest growth, on both ends of the spectrum,” he said. “People really need the money!” To contact Jaeson Birnbaum, Esq. call 201-684-1060 or email JLB@cash4cases.com Ridgewood Council revisits gift-giving by John Koster The Ridgewood Council has introduced an ordinance that would allow the village manager to establish rules and requirements for persons or entities making contributions to the Village of Ridgewood. A public hearing will be held Dec. 8, at which time the ordinance will be considered for final adoption. The question came up from the audience when the village agreed to accept a proffered gift of $6,500 from the Ridgewood Chamber of Commerce to install and decorate a cut Christmas tree at the traditional Broad Street site after merchants said the tree at Van Neste Park is not easily visible from large parts of the shopping district. Residents Boyd Loving and Roger Wiegand said they thought the Van Neste tree was adequate and could be seen from all over Ridgewood Avenue. Loving and Wiegand asked how the contribution from a large number of merchants could be squared with the existing Ridgewood gift ordinance, which bans significant contributions from anyone who has had an application before the Ridgewood Planning Board 90 days before the donation, and anyone who expects to have an application before the planning board within 90 days after the donation. The residents contended that, with a large number of donors, the chances that one or more of them might have an issue requiring special consideration were multiplied. The updated gift ordinance states that “Any person who wishes to make, offer, or present a contribution, gift, or other donation to the village or its agencies, departments, or boards, must satisfy the rules and requirements as established by the village manager and adopted by resolution of the village council. “Upon the acceptance of a gift, contribution, or donation by the village council, the village reserves the right to determine without qualification any process, conditions, or other specifications on the gift and its utilization by the village for the purpose for which said gift is intended and accepted.” Although he was not mentioned by name, the original gift ordinance was seen as targeting Ridgewood philanthropist David Bolger, who has donated millions of dollars to Ridgewood’s municipal and library projects and often has commercial proposals before the planning board and board of adjustment. Bolger took umbrage at the original ordinance and initially withdrew from the $1.8million restoration of the Pease Library. Bolger later reconsidered, stepped in and successfully completed the project. Some months later, several council members were surprised to learn that a village official who had not been part of Ridgewood’s administration during the original gift controversy, had accepted Bolger’s offer to repair and repaint the columns in front of the library and village hall. This recent controversy led Bolger to declare that he would no longer donate funds to any entity controlled by the village. �� Reprinted with the permission of the Bergen Record Start earning income immediately with our ﬁxed income product! The Cash4Cases Investment Fund (CIF) offers 12 percent interest per year to our investors, paid on a monthly basis. For more information please contact, Jaeson Birnbaum, Esq.: 212-684-1060. 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