On May 30, 2018, a Manhattan attorney, Marina Trubitsky, who had recently been sued for fraud by a litigation funding company, filed a “Suggestion of Bankruptcy” announcing that she had filed a petition for bankruptcy in March 2018. (Typically such a litigation document would be entitled “Notice of Bankruptcy”).Since the filing of a petition for bankruptcy operates as a stay or halt to any litigation, Trubitsky did not serve an answer to the complaint. However, we can expect that Green Legal Funding, LLC (Green Legal Funding) will file a motion to lift the stay on the ground that certain types of fraud are not dischargeable in bankruptcy.
Green Legal Funding sued Trubitsky because she allegedly arranged advances for herself and four personal injury claimants she represented. It is claimed that Green Legal Funding was duped into advancing approximately $20,000 to Trubitsky's clients and $150,000 to a medical billing company she owned or controlled for bogus medical services that were never sought or provided. Green Legal Funding maintains that the claims of the four personal injury clients “were bogus, inflated and/or contrived by Trubitsky to defraud” it. Sup. Ct. NY County Index No. 652491/18