Villadom Times Weekly Newpaper Online-November 24, 2010 Issue

November 24, 2010 THE VILLADOM TIMES III • Page 5 Lawsuit Financing Firm Prospers Amid Gloom Accreditation has costs, beneﬁts by Jennifer Crusco Ho-Ho-Kus 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 Ho-Ho-Kus resident Leo Strauss recently asked borough officials to review what benefits could be realized by having the police department pursue national accreditation through the Commission on Accreditation for Law Enforcement Agencies, Inc. – informally known as CALEA. Mahwah Police Chief James N. Batelli recently told Villadom TIMES about the process his department followed in attaining this distinction, and outlined some of the costs and benefits enjoyed by accredited police departments. “Our agency falls in to the category of 25-1,999 full-time employees,” Chief Batelli said. “We are charged a total of $12,590 every three years, which includes the approximate cost of the on-site assessment. The township pays it in annual continuation fees of $4,195 each year.” He pointed out that his department realizes a savings of $7,000 in liability insurance premiums each year. According to Batelli, the department also stands to save in instances where officers are charged with negligence. He pointed out that, while mistakes can happen, accredited departments must have detailed, written policies and procedures for officers to follow. The attention to this type of detail, he said, results in less successful negligence litigation within accredited agencies. The accreditation process takes two years, and begins with the department’s enrollment in the Law Enforcement Accreditation Program. The department then begins its self-assessment, which includes compliance with applicable standards, the development of proofs of compliance, and preparation for the on-site visit. CALEA then provides an initial visit for assessment purposes, and trained assessors review the department’s operations. Assessors examine recruiting procedures, management, security in the jail, how prisoners are handled, and how the department’s budget is produced. At that time, members of the public are invited to participate in the process, by making relevant statements, positive or negative, about the department. “The assessors ride with the officers, and the department must show proofs that policy is being followed on a daily basis,” Batelli noted. CALEA accreditation, which is granted in three-year increments, is awarded based upon a department’s compliance with 420 standards. “It’s not an easy process, and it’s not a guarantee that you will get accreditation because you applied,” the chief noted. He pointed out that his department has an accreditation manager, who keeps the department up-to-date so the reaccreditation process will run smoothly. According to official literature from CALEA, the organization was established in 1979 as a credentialing authority through the efforts of the International Association of Chiefs of Police, the National Organization of Black Law Enforcement Executives, the National Sheriffs’ Association, and the Police Executive Research Forum. The literature further states that the accreditation program allows police departments to voluntarily demonstrate their adherence to a set of established professional standards. �� 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. C C � �� The Sharp Shop, Inc. 251 Godwin Avenue Midland Park, NJ 07432 201-444-3646 ��