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Plaintiff Holding Funding, Inc. dba LawCash; 26 Court Street, Ste 1104; Brooklyn, NY 11242-1111 - Cease and Desist Order and Order for Affirmative Sanctions
June 8, 2015
WHEREAS:
The Maine Bureau of Consumer Credit Protection (the Bureau) is authorized to enforce the Maine Litigation Funding Practices Act, 10 M.R.S. ?? 12-101?12-107, a part of the Maine Consumer Credit Code, Title 9-A, M.R.S.
A person engaged in the business of legal funding is to obtain a registration from the Bureau for the year in which the person is first registered to provide litigation funding, and every two years thereafter not later than September 30th. Id. ?? 12-106(1), 12-106(2).
The Bureau may register a litigation funding provider only if the Bureau finds that the financial responsibility, character, and fitness of the person applying for registration, and where applicable the applicant?s members, partners, officers, or directors, warrant belief that the business will be operated honestly and fairly. Id. ? 12-106(3).
The Bureau may require an applicant for a litigation funding provider registration to provide a bond not to exceed $50,000 or an irrevocable letter of credit, running to the State?s benefit, effective concurrent with the period of time during which the registration is to be in effect. Id. ? 12-106(5).
The Bureau may conduct an examination or make an investigation of a litigation funding provider, not more frequently than once every three months, by exercising all authority provided by 9-A M.R.S. ? 6-106 up to and including revocation of the person?s registration. Id. ? 12-107(1), 10 M.R.S. ? 8003(5)(A-1)(2-A).
The Bureau first registered Respondent Plaintiff Holding Funding, Inc., d/b/a LawCash, of New York, New York as a litigation funding provider on August 18, 2011, and had not previously examined the business before mailing to Respondent an examination request letter on January 29, 2015, to which Respondent did not respond.
The Bureau sent an e-mail follow-up message to Respondent on April 2, 2015, to inquire if Respondent had received the January 29, 2015, letter and, if so, to learn when Respondent would provide the Bureau with information previously requested. The Bureau received no response.
On May 4, 2015, the Bureau?s Principal Examiner telephoned Jason Younger, Respondent?s executive vice president, and left a detailed message again inquiring about the status of the Bureau?s previous requests for information in order to conduct an examination. The Bureau received no response.
NOW, THEREFORE, Respondent Plaintiff Holding Funding, Inc. having engaged in conduct that has the potential to cause damage to an employer it is hereby
ORDERED pursuant to 9-A M.R.S. ?? 6-108(1) and 12-107, Respondent?s repeated failure to respond to communications from the Bureau staff, as set forth in paragraphs 6, 7, and 8 above, requires immediate action to protect the public, and accordingly Respondent is hereby ordered, without prior notice or hearing, forthwith to cease and desist from engaging in any litigation funding activity on behalf of any Maine employer at a time that its registration has been revoked; and it is further
ORDERED pursuant to 10 M.R.S. ? 8003(5) (A-1)(2-A), the litigation funding registration of Respondent is hereby revoked, effectively immediately; and it is further
ORDERED pursuant to 9-A M.R.S. ?? 6-106(6) and 12-107, and 10 M.R.S. ? 8003(5)(A-1)(3), a civil penalty of $500 is imposed for each of the three failures of Respondent to respondent to communications from the Bureau staff, as set forth in paragraphs 6, 7, and 8 above.
Date: June 08, 2015 | /s/William N. Lund |
William N. Lund | |
Superintendent | |
Bureau of Consumer Credit Protection |
NOTICE OF APPEAL RIGHTS
Any party to this proceeding aggrieved by this Order may within 30 days of the receipt of the Order, file a request for an adjudicatory hearing pursuant to 5 M.R.S. ?? 9051(2), 9052(1)(A), at which time the aggrieved party shall have the opportunity to prepare and submit evidence and argument. If no request for a hearing is timely made, the terms of this Order shall become final and binding at the end of the 30-day period. Any party aggrieved by an Order entered after an adjudicatory hearing may thereafter seek judicial review of such Order pursuant to 5 M.R.S. ?? 11001-11008 by filing a petition for review within 30 days after receipt of notice. Any other person aggrieved shall have 40 days from the date the Order was rendered to petition for review.
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