Page 8 THE VILLADOM TIMES II • January 12, 2011 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 212-684-1060 or email JLB@cash4cases.com Emmanuel asks... Can You Help? Here is some additional information if you would like to help: Sarah likes to watch the Jets and to listen to her iPod and download music. She likes to go to school when she can. Her favorite colors are pink and purple. She likes to eat at Friendly’s and her favorite ice cream flavors are coffee and chocolate chip mint. She wants to see a play on Broadway. Sarah loves to go shopping for clothes and her favorite store is Aeropostle. If you are a DJ, or if you can help, please contact us soon! You can help in a variety of ways. Turn your next event into a fundraiser where you collect checks or gift cards for ECF’s families, or donate your restaurant or business for a few hours to host a fundraiser of your choice. Your efforts will help us to help families in many ways, including sending a caseworker to visit at home or in the hospital. This support for the kids, their siblings, and parents is crucial. Get your kids involved. Some children have held sales and donated the proceeds to ECF. Is your Cub Scout or Girl Scout Troop looking to earn badges? This is a great way! Get creative and have fun while learning about philanthropy. Your food donations or grocery gift cards also help to support ECF’s food pantry, which supports many families in the region. Please remember that we do not charge anything for our services. We rely on you! We are also happy to come speak at your fundraiser or event and talk about our programs. If you have a few hours a week to spare, consider becoming a volunteer or just stop by and meet with us, take a look at our pantry, and see what ECF is all about. Volunteers are welcome to assist on Wednesday and Friday from 1 to 4. Call (201) 612-8118 before you stop by. Please do not leave items at the center without checking with us first. Our storage space is limited. The Northern Regional Center is located at 174 Paterson Avenue, Midland Park, NJ 07432. Visit us online at: www.emmanuelcancer.org. As always, thank you for helping the children and their families! Our hat’s off to: Glen Rock Girl Scout Troop 269 for their holiday gift cards; CCD Group (Madeline, Patrick, Lauren, Kaitlin, James, Sara, and Abbie) from Ridgewood who made a lovely basket for one of our kids; and all the people who made holiday baskets for our families and brought holiday gifts! We also acknowledge Maggiano’s of Hackensack, The Fireplace in Paramus, and Family Hair Care in Midland Park for their support of our fundraiser, A Hollywood Bash. ECF uses contributions to support the cost associated with providing free services 4-29-09 karen/janine to any child in New Jersey who has cancer. Approximately 70 cents from every dollar EmmanuelHelp3x.75(4-29-09) goes towards direct care for our families. 3 x .75 possible to do all the fundraisIt’s not ing ourselves. That’s why we get so excited when someone helps us along the way. These articles have resulted in families receiving so much -- from a new roof for one family so they could bring their boy home, to tires for another so they could take their child to treatment, to a princess bed, a gift card, and an art easel to ease Sophia’s journey. Please understand that if the family’s life is too hectic to write a thank you, we do hear from their caseworkers and the volunteers how thrilled they are. On behalf of all of these families, we thank you and ask that you continue to help us help them. Did you know that Emmanuel Cancer Foundation is named after a little boy named Emmanuel who lost his life to cancer almost 28 years ago? Help this mom to make her daughter’s Sweet Sixteen a special one: Sarah is almost 16 and is battling a rare form of cancer. She is a fun-loving girl who is determined to get through this. She is strong and outgoing, and she is always there to help her friends. Sarah is grateful that she is once again able to ride a bicycle -- something she didn’t know if she would ever be able to do again. Now her single mom is throwing her a Sweet Sixteen party, and we are looking for DJ to donate his or her services! The event will take place in Newton in late January. 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.: 201-919-7495. C C