On May 17, 2018, Green Legal Funding, LLC, filed suit in New York County Supreme Court against a Manhattan personal injury attorney, Marina Trubitsky, Esq. claiming fraudulent misrepresentation and conversion. Trubitsky, was admitted to the bar in 1999 and maintains a law office in Manhattan. Green Legal claims Trubitsky misled their funding company into advancing approximately $20,000 to four personal injury plaintiff's and $150,000 to a medical billing company that Trubitsky owned or controlled for medical services to the injured plaintiff's between 2015 - 2016. Incredibly, Green Legal contends that none of the medical services for which they advanced $150,000 - were performed on any of the plaintiff's.
Green Legal claims it only learned in May 2017, that the claims of these plaintiff's "were bogus, inflated and/or contrived by Trubitsky to defraud" their funding company. This is remarkable since these funding companies typically don't rely on the opinion of plaintiff's counsel and employ trained litigation professionals to determine if a case is worth the risk of an advance.
Green Legal alleges that it funds litigation and medical services rendered to injured plaintiff's using "Non-Recourse Purchase Agreements". These agreements are expensive because the funding company bears the risk that if the case is lost--they don't get paid back. Thus, according to Green Legal they charged 4% per month for the funding. If the lawsuit is resolved within one year the funding company gets almost double the principal and if paid back in two years the loan amount is almost tripled. Green Legal seeks $200,000 in compensatory damages and $5,000,000 in punitive damages from Trubitsky and her alleged medical billing companies. Sup Ct NY County-Index No. 652491/18