This case was last updated from PACER on 09/29/2021 at 07:19:12 (UTC).

Securities and Exchange Commission v. Birnbaum

Case Summary

On September 28, 2021, the Securities and Exchange Commission (“Commission”), represented by Richard R. Best attorney at SEC’s New York regional office, filed a civil enforcement action against Jaeson Birnbaum (“Birnbaum'' or “Defendant”), seeking injunctive relief and disgorgement of all ill-gotten gains along with prejudgment interest for allegedly defrauding investors and selling them debt securities. This case was filed in the U.S. District Court in the Southern District of New York.


In the complaint, Plaintiff alleged that, “Birnbaum defrauded at least four investors in the course of selling them debt securities in his litigation funding business, Cash4Cases, Inc. (“Cash4Cases”). Birnbaum defrauded investors by, among other things, falsely promising them that their investments were secured by collateral, which did not exist or had already been pledged to others; by making misrepresentations  as  to  the  use  of  investor  funds;  and  by  misappropriating investors’ funds for personal use. Birnbaum was the President of Cash4Cases and he owned, controlled, and operated Cash4Cases as well as its affiliates. Cash4Cases operated in New York and New Jersey from around 2010 until January 2020.”


Plaintiff further alleged that, “In its litigation funding business, Cash4Cases made loans to individual tort litigants (the “Funded Litigants”), taking a security interest in their expected litigation recoveries up to the amount of the loan, plus interest. Cash4Cases funded the loans to the Funded Litigants in part through money borrowed from institutional lenders. Cash4Cases assigned those lenders security interests Cash4Cases held in the expected litigation recoveries of the Funded Litigants. Cash4Cases also raised money by selling its security interests in some Funded Litigants’ recoveries to institutional funders.”


Plaintiff also alleged that, “Cash4Cases also turned to individual investors for funding. Through Birnbaum, Cash4Cases sold individual investors Cash4Cases’ securities styled as promissory notes. Birnbaum and Cash4Cases purported to secure the promissory notes by pledging Cash4Cases’ security interests in certain Funded Litigants’ litigation recoveries to the individual investors. Birnbaum made several material misrepresentations to four individual investors to obtain their investments. Birnbaum also misappropriated investor funds from at least two of the individual investors to support his lifestyle and make Ponzi-like payments to earlier funders and investors.”


There are two claims for relief laid down by Plaintiff. The first claim deals with the alleged violations of and/or aiding and abetting violations of Section 17(a) of the Securities Act. The second claim for relief deals with the alleged violation of and/or aiding and abetting violations of Section 10(b) of the Exchange Act and Rules 10b-5(a), (b) and (c) thereunder.


In its prayer for relief Plaintiff has requested the court to permanently restrain and enjoin Birnbaum and all persons in active concert or participation with him from violating, directly or indirectly, Sections 17(a)(1), (a)(2) and (a)(3) of the Securities Act, order Birnbaum to disgorge all ill-gotten gains, plus prejudgment interest thereon, pursuant to Sections 21(d)(5) and 21(d)(7) of the Exchange Act and order Birnbaum to pay civil money penalties pursuant to 20(d) of the Securities Act and Section 21(d)(3) of the Exchange Act along with such other and further relief as the court deems just and appropriate.


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Case Details Parties Documents Dockets


Case Details

  • Case Number:


  • Filing Date:


  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange


Party Details


Securities and Exchange Commission


Jaeson Birnbaum

Attorney/Law Firm Details

Plaintiff Attorney

Richard R. Best

Attorney at U.S. Securities and Exchange Commission

200 Vesey Street, Ste 400

New York, NY 10281


Court Documents


(#2) CIVIL COVER SHEET filed..(Best, Richard) (Entered: 09/28/2021)


(#1) COMPLAINT against Jaeson Birnbaum. Document filed by Securities and Exchange Commission..(Best, Richard) (Entered: 09/28/2021)


Docket Entries

  • 09/28/2021
  • View Court Documents
  • Docket(#2) CIVIL COVER SHEET filed..(Best, Richard) (Entered: 09/28/2021)

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  • 09/28/2021
  • View Court Documents
  • Docket(#1) COMPLAINT against Jaeson Birnbaum. Document filed by Securities and Exchange Commission..(Best, Richard) (Entered: 09/28/2021)

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