NEW YORK– A federal lawsuit brought by the state Attorney General and the U.S. Consumer Financial Protection Bureau claims that a Cresskill company cheated 9/11 first responders and professional football players involved in injury lawsuits, the attorney general’s office said in a statement Tuesday.
The defendants, RD Legal Funding and its owner, Roni Dersovitz, offered cash advances against awards from victim compensation funds or lawsuits. RD Legal sought business with first-responders who worked at the World Trade Center in the wake of the attacks and who contracted cancer and other illnesses as a result.
The first-responders were awarded cash from the Zadroga Fund, which was created by Congress to compensate victims. According to the attorney general’s office, those victims were offered an upfront payment by RD Legal before they had received their full settlement, but were then billed far more by RD Legal than the original advance. In one case, authorities said, one woman received an advance of $18,000 but had to repay $33,000 when she received her award from the Zadroga fund six months later.
Also allegedly targeted were NFL players who suffered cognitive disorders as the result of concussion injuries and who were awarded compensation through a class-action lawsuit.
RD Legal is accused of lying to customers about the terms of their agreements, lying about their ability to expedite payments from compensation funds and illegally collecting money from consumers. Authorities also allege RD Legal effectively charged “usurious” interest rates of between 18 and 250 percent, far in excess of what is allowed under New York law.
“The alleged actions by RD Legal–scamming 9/11 heroes and former NFL players struggling with severe injuries–are simply shameful. RD Legal used deceptive tactics to charge unlawfully high interest rates for advances on settlement and compensation funds, allowing them to profit off the backs of these unsuspecting individuals,” said Attorney General Schneiderman.
“My office will do all it can to end the fraudulent practices employed by RD Legal, recoup the illegal amounts charged by this company — and make these victims whole again.”
Paul Milo may be reached at pmilo@njadvancemedia.com. Follow him on Twitter@PaulMilo2. Find NJ.com on Facebook.
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