N.J. Litigation Funding Business Wins $33M Award in Fraud Case

David Gialanella, New Jersey Law Journal

www.callagylaw.com

A Bergen County jury recently awarded more than $33 million to the operators of a now-defunct legal funding business based on allegations that its in-house counsel defrauded the business with the help of a host of co-conspirators.

The sum, which includes $8 million in punitive damages, was awarded to The Law Funder LLC, with most of it payable by Matthew Sheldon, who previously was convicted in a federal criminal case for his conduct.

Sheldon has been incarcerated and likely not in a position to pay, but Sean Callagy, who tried the case on behalf of Law Funder, said he’ll make the effort.

The verdict “doesn’t mean our clients are going to be made whole...but it’s certainly something we’ll continue to pursue for the rest of his life,” said Callagy, of Callagy Law in Paramus.

Sheldon, in pleading guilty to conspiracy to commit wire fraud two years ago, admitted to generating improper referral fees that were paid out by Law Funder and split between him and an outside broker.

Law Funder of New York was founded in 2004 by four people who previously were in litigation funding, including Sheldon—who served as the company’s attorney and chief underwriter, and had a 25 percent stake in the company and drew an annual salary that reached $250,000, according to the complaint.

The company, which had $83 million in assets at its height, provided up-front money for litigation and was paid back with interest only if the case was successful, the complaint said.

According to federal prosecutors, Sheldon, who was responsible for vetting cases and had final authority over which ones received funding, began defrauding Law Funder the year after its founding. He was charged with sending direct inquiries to a business associate: broker Rory Donadio of Montclair Funding Group, who in turn referred the cases back to Law Funder in exchange for referral fees that Sheldon and Donadio split. Prosecutors said Sheldon derived $870,000 in profit.

The misconduct was first discovered in early 2009, when a client alerted the other principals to a forged signature on a funding document, Callagy said.

Law Funder dismissed Sheldon and retained Callagy’s firm to investigate, which brought to light other fraud detailed in the complaint, Callagy said.

The complaint alleged wrongdoing beyond that for which Sheldon was criminally charged. Law Funder, and principal George Prussin, claimed Sheldon breached his fiduciary duty by overvaluing cases and approving funding for bad cases—all in an effort to generate commissions for himself and his co-conspirators.

For example, Sheldon allegedly facilitated funding for lawsuits over plane crashes involving a Russian airline, Siber Air, and a Greek airline, Helios Airways, even though the cases already had been dismissed.

The complaint also accused Sheldon of transferring $750,000 for fictitious cases to an individual in Houston posing as an attorney, Jessica Escobar.

The suit named 20 defendants. Among them was Gregory Krasovsky, an attorney who represented Law Funder and, according to the complaint, was aware of Sheldon’s fraud and didn’t inform the company.

The suit asserted fraud, theft, racketeering and other counts, and claimed tens of millions in monetary losses, incurred risk and loss of future business.

The firm referred the matter to the Federal Bureau of Investigation, and the civil case was stayed pending the outcome of the criminal case, Callagy said.

Sheldon was arrested in March 2011 by federal agents before boarding a flight from Miami to the Dominican Republic and pleaded guilty in May 2012 to conspiracy to commit wire fraud. Last October, U.S. District Judge Dennis Cavanaugh sentenced him to 30 months in prison. Donadio also pleaded guilty to the same charge.

Despite his admissions in the criminal case, Sheldon denied any wrongdoing in the civil matter, according to court documents.

Sheldon, in a February 2010 brief, claimed none of his actions were illegal or in secret, Prussin had similar arrangements with brokers, and he was shut out of Law Funder because he objected to Prussin’s actions, not because fraud was discovered.

The case proceeded to trial, which was conducted over three weeks before Bergen County Superior Court Judge John Langan Jr.

Donadio, his businesses and Catherine Donadio—his mother, also an attorney, and an alleged co-conspirator—settled during the trial on confidential terms, Callagy said.

The three remaining defendants—Sheldon, Krasovsky and Escobar—didn’t attend, and weren’t represented by counsel in the proceedings, Callagy said.

Callagy moved for a directed verdict on liability, which Langan granted.

On June 24, the jury awarded a total of $24.5 million in compensatory damages: $22.9 million against Sheldon, $2.2 million against Krasovsky, and $375,000 against Escobar. The next day, the panel awarded $8 million in punitive damages, all against Sheldon. The verdict totaled $33.5 million.

Michael Perle of Secaucus, who represented Sheldon long before trial, declined comment.

There was no counsel listed for Escobar in the judiciary’s Internet database.

Krasovsky could not be reached and there was no attorney listed for him in the database.

Alfred Gellene of Denville represented Rory Donadio in the civil case. Henry Klingeman of Krovatin Klingeman in Newark represented Catherine Donadio. Neither returned a call Tuesday.

Read more: http://www.njlawjournal.com/id=1202661606677/NJ-Litigation-Funding-Business-Wins-33M-Award-in-Fraud-Case#ixzz3D1jblkOI

The Real Secret

In the end, actions create results, right?

Can anyone really dispute this?

Nothing happens unless you act?

Well, I guess quantum physics believers, you know, those that love the book the Secret, may quibble and say action isn't even necessary, but let's at least concede the point that action creates result.

What do we mean by action? Well. Making a phone call, asking a question to a potential client or referral source, writing a blog, reconciling the check book, and on and on, are all actions.

However, actions are born in thoughts, aren't they?

Before we take any action, it is born in a thought.

No one can credibly argue that point.

Therefore, thoughts, as many have said, are the mother and father, of action.

But, what does this actually mean?

Well, it seems that thoughts control both the quality and quantity of our actions.

Let's take a twelve year old that wants to learn to hit a baseball better.

Well, the potential ultimate result of hitting a baseball better was "born" as a thought. The thought: "I would like to be a better baseball player." Or perhaps the notion, “If I was better at baseball it would feel awesome."

Then the boy goes to the idea: "well, I've got to practice."

Then the boy starts "practicing".

Ultimately, the boy succeeds through hard work and practice and lives happily ever after.

That's how the surface level feel good movie ends.

How many people, though, does this actually work for?

Isn't it true, that in large measure, people don't reach all of their goals and dreams?

Well, in the context of business, and little league baseball, and everything else I would submit, according to Forbes magazine, quoting Bloomberg, 8 out of 10 businesses fail.

http://i.forbesimg.com/images/channels/hometopfeature_panel1_0_mainstory-1410021504.jpg

If it is so easy to "work hard" and "practice" why would 80 percent of new businesses fail?

Well, there are many reasons, but the failure is born out of the mind of the business owner, in precisely the same way success is born.

No different than the twelve year old baseball player, the quality of the subsequent and consistent daily thoughts of the business owner, create a path, a trajectory if you will, that over time, leads to a destination.

That destination will or won't be what the person wants, but it will be a destination for sure. Time insures this.

The reason for failure, which we will continue to explore here and discuss, is a lack of consistently controlling the focus of our minds to be relentlessly consistent in taking massive action, which ceaselessly evolves to become ever more optimized to efficiently creating our results.

Bill Gates, Lincoln, Edison, King, Bird, Brooks, Ali, Ghandi, and virtually every leader who ever created massive results in their area of expertise, did precisely that.

So why doesn't everyone?

Discipline?

No, I don't think so.

I don't believe any of the people I mentioned above were all that disciplined.

Then how did they do it?

How did those people and any of the millions of incredibly and uniquely successful people throughout the history of our planet break the curve and achieve a truly unique level of success, meaning their desired results, in their chosen area?

They learned to control their minds, and therefore actions, by learning to be relentlessly consistent.

How did they do this?

They learned to love the process so much it simply became a part of who they were and what they feel happy or other desired positive emotions.

This is the true "secret" to success.

It is not the end. No, Larry Bird certainly didn't just "work hard".

He evolved. He grew. Day after day. Week after week. Year after year.

So did Bill Gates.

That's what they all do and did.

My passion is the study of success.

I do not believe anyone has truly captured the perfect system to teach business people, and people in general, to succeed.

There are wonderful bits and pieces.

No one has the whole system fully and perfectly optimized.

This includes me.

I feel like I have a lot of it. I have the map, but there are levels of optimization to go in controlling the mind.

This is my true mission and life's work.

This is our quest at the Business Mastery Club and Callagy Law.

It isn't however, about trying a million different ideas.

It is about systematically improving and learning from the mistakes and successes of the millions upon millions that have gone before us.

Isn't this how Edison invented the light bulb?

So, control your mind and control your success.

This is the beginning of our journey.

Most business people will fail to "succeed", meaning: to achieve their desired goals, whatever they are.

We are here to unlock the true secrets of success.

Step 1, control your mind?

But how?

That will be our next discussion and ongoing search.

14-09-05 The Seth Leibsohn Show - Mentions Sean Callagy and Callagy Law!

http://clyp.it/kffqoyyi

Callagy Law’s Mission Statement

“To exceed all your expectations and become your trusted advisor for life.”

Why Callagy Law

Callagy Law is a leading full service law firm that specializes in serving businesses, healthcare providers and individuals. Our attorneys are exceptional leaders in their legal expertise and have been commended for providingexceptional legal services at every level. Our uncommon commitment, unwavering compassion and our courageous enthusiasm for our clients and what we do has allowed Callagy Law to achieve the highest levels of client satisfaction and recognition as one of New Jersey’s foremost leaders in Healthcare Revenue Recovery, Business and Commercial Litigation and Transactional Law.

From the beginning, Sean Callagy built his firm with one mission in mind: to exceed all your expectations and become your trusted advisor for life. Whether you are a business owner, a healthcare provider or an individual, Callagy Law’s experience and strategic approaches for every client maximizes recovery – whether verdict or settlement. Our attorneys and support staff are seasoned and cross trained legal experts and litigators who work incessantly to continually meet and surpass our clients’ requests.

Business sensibility and methodology, we will be better able to choose the best strategy for your objectives, while gaining perspective into your business practices and a greater overall understanding of your industry. At Callagy Law we are always actively integrating new areas of our legal practice to meet our client’s needs, while ensuring the delivery of expert legal services.

Our law firm, whether attempting to avoid litigation in your best interest or mediating on your behalf, spends substantial time and effort in a focused manner to move quickly and aggressively in negotiations and controlling the litigation process. Usually, a strong network of third party experts and accountants are called in to evaluate and analyze financial documents and other factors to ensure positive results while accommodating your needs.

As legal advocates our energies are focused.

We guide our clients with the utmost respect and compassion for the highly emotional experience they are going through. At Callagy Law we believe it is the highest level of emotional and compassionate support that will make all the difference.

Contact our office today for a complimentary evaluation or consultation.

Meet Sean Callagy

Sean Callagy: Founder & President of Callagy Law, LLC.

Sean Callagy, the owner and President of Callagy Law, LLC is an attorney, public speaker, and entrepreneur.

Sean created Callagy Law in 1999 following a memorable career in one of New Jersey’s top law firms. After attending Columbia University and graduating from Seton Hall Law School in 1996 with cum laude honors, Sean realized that his potential could only be achieved by owning his own law firm, and within three years his firm became a multi-million dollar success story.

Since its conception, Callagy Law has grown to over twenty attorneys, and employs over 100 talented and skilled professional team members. With the use of his unique methodology, Sean’s law practice has not only achieved dramatic growth in size but has recovered $100’s of millions for its clients, and holds a position of leadership among the top New Jersey law firms specializing in Medical Revenue Recovery for healthcare providers and hospitals, Business and Transactional Law and Commercial Litigation for business owners and individualized specialties such as Wills and Estate Law, Personal Injury, Family Law and so much more.

Sean Callagy is that rare breed of attorney. He’s an accomplished communicator, who is kind, sincere and considerate of his clients. Yet Sean Callagy is aggressive, intelligent, and results driven with a lot of heart- he’s competitive to the bone. From the moment you step into Callagy Law you’ll understand Sean Callagy’s steadfast dedication to his profession, his team and his clients. His sincerity and warmth, coupled with his commitment and unwavering passion for truth makes Sean Callagy one of the best attorneys!

Sean Callagy is also a graduate of iPEC, the Institution for Professional Excellence in Coaching. He has spent his lifetime studying and developing programs that inspire, inform and instruct people and their businesses in the science of success.

Sean Callagy’s core belief system starts with the philosophy that everyone has the “Power to determine, create and achieve their own business destiny.” Sean has designed and developed programs that motivate, educate and teach real world strategies that produce and promote unparalleled business growth. He enables others to create the life they have always dreamed of as a choice, not an accident. He has brought these core fundamental business methods to his own law firm and to individuals and corporations alike with the highest level of certainty that EVERYONE- from all walks of life will and can benefit from Sean Callagy and his unique legal and business sense!

From transforming business owners by helping them improve their finances, careers, health and happiness, to helping businesses transform profitably, with the planning and execution of business sales, recruiting and hiring and revitalizing work environments – Sean’s Science of Success has helped hundreds to create prosperous businesses just like his.

As a relentless pursuer of truth, Sean Callagy, along with his law firm, Callagy Law stay true to their motto and mission, “Caring, Compassionate, Committed.”

• Business Law, Commercial Litigation, Contract Litigation, Shareholder Litigation, General Litigation, Healthcare Law, Fraud, Transactional Law and ERISA Litigation.

New Jersey, 1996: United States District Court, District of New Jersey, 1999 United States Court of Appeals, 3rd Circuit, 2001

New York, 1999: United States District Court, District of New York, 2001 United States Court of Appeals, 2nd Circuit, 1999

• Seton Hall University School of Law (J.D. 1996, cum laude)
• Columbia University, New York City (B.A. Finance and Investments, 1992, cum laude)

If you would like to contact Sean Callagy or set up a complimentary consultation or business evaluation please call 201.261.1700 or Click Here.

About Our Logo The Corporate Identity: A Law Firm’s Story

In Romeo and Juliet, William Shakespeare famously penned, “What’s in a name? That which we call a rose, by any other word would smell as sweet.”  It would seem that our perceptions can in fact be overly influenced by the names we assign to people, places, products, and even corporate entities, without giving a full measure of consideration to the true essence and characteristics of those things.  Clearly, Romeo – by that or any other name – was dear to the heart of Juliet because of who and what he was.

That said, when in July, 2013, the Law Offices of Sean R. Callagy, LLC changed its name to simply Callagy Law, the change was more than cosmetic.  It was, in fact, a statement intended to call attention to what is a very different kind of law firm, and coinciding with that change came a dedication to establishing a corporate identity that also embodies those distinctions.

While effective “branding” has become in modern America a means of raising the consciousness of a company’s targeted marketplace, it is best achieved when it communicates its core values and competencies, personality, mission, and culture in an honest, relevant, and impactful manner.  And because the logo of a company resides at the very center of its corporate identity, Callagy Law simultaneously unveiled its new logo and is in the process of launching its new website to underscore what sets it apart among New Jersey law firms.

When looking to develop its corporate identity in a visual representation, the challenge was to isolate a concept for a logo to which Callagy Law’s employees and clients could readily relate.  Is the logo per se of importance?  To the extent that it succeeds in its mission, yes, though logos do not win law suits, do not visit retribution on wrongdoers, and cannot calm the anxieties with which clients typically arrive at the firm.  People do.  And here is where Callagy Law, its people, and its corporate identity synergize in ways that unashamedly say, “We are different, and that difference does matter.”

The Callagy Law logo is, intentionally, one that incorporates a very significant amount of symbolism in its attempt to embody all of the characteristics and qualities that the firm’s clients value so highly, and future articles will address each of those symbols.  However, there can be no question that most prominent of all is the head of a lion, perhaps raising the question, “What does a lion have in common with a law firm?”  Consider, then, that the question cannot be answered apart from its natural predecessor, “For what attributes is the lion known, whether symbolically or otherwise?”

What is commonly known, or at least commonly perceived, is that the lion – the “King of Beasts” or “King of the Jungle” – has no natural predators and therefore, knows no fear.  Without conscious awareness of concepts like confidence, pride, courage, power, or strength the lion nevertheless embodies all of those qualities.  And while it is a supremely effective killing machine when it needs to be, it takes no more than it needs and in fact is widely and positively depicted in popular culture as a creature that appears strong, but gentle at the same time.

Thus, it should perhaps come as no surprise that a law firm, whose very work requires that it confront a variety of contentious, ill-intended and often evil adversarial forces on a daily basis, and which has a responsibility to its clients to emerge a victor would select as the symbolic centerpiece to its identity the one creature that, were we to choose any such animal to defend us against others, would give us the best chance of survival.  The lion is Callagy Law, and Callagy Law is the lion.

What carries this identity from the realms of presumption and wishful thinking to a comparison far more legitimate is, of course, results, for if one doesn’t live it, one cannot profess to be it.  When prospective clients inquire as to whether and how the actual Callagy Law experience relates to their own hopes, needs, and expectations, as they are encouraged to do, those clients quickly learn that they have arrived at a place that has separated itself from the detached, self-important and self-serving caricature of law firms that has given rise to that unique body of contemporary comedy known collectively as “lawyer jokes.”  But the law firm of a lion takes no more than it needs.  It fears nothing.  It believes that all things are possible, for it has no reason to believe otherwise.  It is tenacious in its pursuits, chillingly effective in its mission, and fiercely loyal to those it protects.  In ancient tradition, lions were believed to sleep with their eyes open.  Egyptians saw them as representing the powerful heat from the sun.  They are the worst enemy one can make, and the strongest defender that one could hope for.

Callagy Law.  Lions Live Here.

About The Law Office Of Callagy Law

New Jersey Law Firm

The Callagy Law, LLC is a multidisciplinary law firm committed to providing superior legal representation and advice to our clients at our law offices located in New York and New Jersey and across the United States.

The Callagy Law Story – Here’s Who We Are

From its inception in 1999, Sean Callagy grew his law firm by applying his unique methodology for achieving dramatic growth. Originally after law school Sean Callagy joined a prominent top New Jersey law firm and quickly decided that his dreams would be best achieved by owning his own law firm. So Sean Callagy decided to finance his dream with very minimal funds, and within three years Callagy Law, formally The Law Offices of Sean R. Callagy became a multi-million dollar business that employs over 18 talented and experienced attorneys and over a 100 specialized, dedicated team members.

Sean Callagy’s unique methodology for achieving dramatic growth in his law firm has brought Callagy Law to hold a position of high regard and leadership among New Jersey law firms in the arena of Medical Revenue Recovery for healthcare providers,Commercial Litigation,Business and Transactional Law for business owners and several individual law practice areas for individuals seeking legal advice.

Callagy Law is Aggressive, Intelligent and Results Driven with Heart and an Empathetic Connection to Our Business, Healthcare and Individual Clients

Callagy Law’s Business and Commercial Litigation practice has earned a notable reputation in New Jersey and across the country for representing our client’s interests assertively, compassionately and successfully. Our broad experienced business and personal litigation team provides a full range of complex litigation services to our business, commercial, healthcare and individual clients.

Our litigation services include mediation, arbitration, trials and appellate practice, pre-litigation counseling and negotiations, hearings and appeals. We practice within multiple states, within the federal court system and before regulatory bodies and administrative agencies.

The hallmark of our litigation team is to pay close personal attention to each matter with a passionate, courageous and committed approach and attitude.

One of New Jersey’s Largest
Healthcare Practice Law Offices

As one of New Jersey’s largest Healthcare Law firms, Callagy Law and our talented team of attorney’s represent 100’s of doctors, hospitals, surgical centers, physical therapists, chiropractors and acupuncturists in the PIP, Worker’s Compensation and Commercial Insurance arenas.

Hospitals are the most under developed area when it comes to medical revenue recovery. Callagy Law’s Healthcare Law practice’s mission is to recover every dollar owed to every hospital, doctor, surgical center and healthcare provider in PIP, Major Medical and Worker’s Compensation.

Callagy Law for Business,
For Healthcare Providers & for You!

We’re humans working for humans – business owners, healthcare providers and individuals alike. We’re courageous, compassionate and dedicated to our clients and our profession. Our clients are confident in knowing that they have received the personal attention and support they deserve. We maintain open lines of communication, while consistently delivering the same ingenious, premium resolution methods for every client, every day, on every engagement.

While other firms are often content to wait for the recovery process to unfold, we are highly proactive in reclaiming our clients’ revenue. We want the best result in the shortest time and are committed to providing it with competence, integrity, accountability and transparency.  Our field liaisons provide expert on-site assistance and advice.  Plus, our web-based system is designed to allow real-time access to every file’s status.

Callagy Law promotes an atmosphere of open, approachable communication and shared information with our clients, believing that an informed team can always better assess the existing options and how these options fit into the grand scheme of your business goals and strategies. By using our dynamic business sensibility and methodology, we will be better able to choose the best strategy for your objectives, while gaining perspective into your business practices and a greater overall understanding of your industry.

Trust in knowing, as a Callagy Law client, you are part of something special and we work very hard to keep it that way.  We are happy to provide any number of references who will affirm that assertion. Our clients range from individuals, business owners, entrepreneurs, and healthcare providers to companies of all sizes, in all forums, from arbitration to Federal Court.

Callagy Law Standards –
Above and Beyond the Norm of Traditional Law Firms

Excellence is the only standard by which we measure our efforts, and daily interactions within the firm, with our clients and with our colleagues. Callagy Law always conducts itself with the utmost professionalism, while conducting business honorably and with the highest ethical standards. We take pride in our services, results and the way we direct our clients. Our reputation speaks for itself.

We welcome you to meet us in person, online and through our social media channels.

Contact our office today for a complimentary evaluation or consultation.