(Reuters) – A New York state court has disbarred the founder of a litigation finance firm who will be sentenced next month in federal court for his role in a multimillion-dollar securities fraud scheme.
Jaeson Birnbaum, a member of the New York state attorney bar since 2003, did not contest disciplinary proceedings that were brought against him by the state Attorney Grievance Committee for the First Judicial Department.
In September, he pleaded guilty to securities fraud tied to his litigation funding company Cash4Cases Inc. The New York appeals court’s June 21 disciplinary order said Birnbaum’s felony conviction required automatic disbarment.
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Birnbaum, 48, could not be immediately reached for comment on Thursday. His lawyer in the criminal case, Sam Braverman of Fasulo Braverman & Di Maggio, told Reuters that Birnbaum “accepted responsibility at the first opportunity.”
Representatives from the Attorney Grievance Committee also did not immediately respond to messages seeking comment.
Litigation financing involves a third party that funds a case or portfolio of cases in exchange for a piece of any judgment.
Many litigation funders operate out of New York and Chicago, and the practice has grown in the U.S. in recent years.
Manhattan prosecutors said last year that Birnbaum “conned investors through a series of…
