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Tuesday, April 19, 2016

Callagy Law and the 33 Million Dollar Verdict

The total amount includes $8 million in punitive damages

Paramus, N.J. (Sept. 22, 2014) – A three-week civil trial at the Bergen County Superior Court of New Jersey recently ended with a jury awarding The Law Funder, LLC $33.5 million dollars. The amount is payable by, among others, defendant Matthew Sheldon, who in 2013 pleaded guilty in the United States District Court for the District of New Jersey to the same unlawful conduct.

“This verdict is a victory for my clients,” said Sean Callagy of Callagy Law, who represented The Law Funder in the case. “While this does not represent a complete recovery for them, we will continue to pursue the payment due for the rest of Sheldon’s life so that he may repay some of what my clients have lost.”

Sheldon is currently incarcerated and is serving a sentence of 30 months in prison after having pled guilty to conspiracy to commit wire fraud in 2013. He admitted to engaging in a kickback scheme that resulted in him and a number of other defendants being paid improper referral fees by the litigation funding company The Law Funder, LLC.

Sheldon had served as an attorney and chief underwriter for The Law Funder of New York, a company that he co-founded in 2004 with three other individuals.

His fraudulent activity began in 2005, when Sheldon started to work with a New Jersey broker to garner referral fees, which the two split. The fees collected amounted to at least $870,000 in profit for Sheldon.

His indiscretions were uncovered in 2009 after The Law Funder had dismissed Sheldon. An investigation by Callagy Law uncovered other fraud that was also included in the civil complaint.

The case alleged wrongdoing beyond the criminal charges, including claims that Sheldon purposefully overvalued some cases and approved funding for bad cases for his own personal benefit.

Sheldon was also accused of transferring $750,000 for fictitious cases to Jessica Escobar in Houston, who posed as both attorney and paralegal and was alleged to have had an intimate relationship with Sheldon.

The suit named 20 defendants, including Gregory Krasovsky, an attorney who previously represented The Law Funder and was aware of Sheldon’s fraud but did not alert the company, according to the complaint.

The verdict was released on June 24, 2014, with the jury awarding a total of $24.5 million in compensatory damages – $22.9 million against Sheldon, $2.2 million against Krasovsky, and $375,000 against another defendant. On June 25, 2014, the jury awarded an additional $8 million in punitive damages against Sheldon for a total of $33.5 million against him and the remaining defendants.

See More: http://callagylaw.com/bergen-county-fraud-case-33-5-million-dollars/

Original Post: http://www.njlawjournal.com/id=1202661606677/NJ-Litigation-Funding-Business-Wins-33M-Award-in-Fraud-Case

Callagy Law and the 33 Million Dollar Verdict

Callagy Law - Our Practice Areas

Callagy Law, PC is a multidisciplinary law firm committed to providing legal representation and advice to our clients at our law offices located in New York and New Jersey and Arizona in the areas of Healthcare Recovery, Business Law, Commercial Litigation, and Family Law. To learn more about Callagy Law and what inspires us to fight for you, continue reading below.

Our Why: “Fundamentally changing the way people feel about lawyers, one client at a time.”

We have several practice areas. For medical providers they include:

-Medical Revenue Recovery

-PIP Litigation and Arbitration

-Workers Compensation

-Commercial Insurance Litigation

Other practice areas include:

-Commercial Litigation (Complex commercial litigation, qui tam, whistle blower, corporate fraud, business fraud, in-house counsel support)

-Business Law (business formation, business contracts, agreements, business divorce, insurance fraud, investor fraud, financial fraud).

-Family Law (child custody, child support, divorce law, prenuptial agreements)

Call, email, or visit us today!

201-261-1700

inquiries@callagylaw.com

www.callagylaw.com

Callagy Law - Our Practice Areas

Friday, April 15, 2016

Why People Leave the Practice of Law | Callagy Law

The purpose of this post is to help assist those with questions they have concerning their business or medical practice. The Callagy Law team is knowledgeable in many law practice areas and will frequently post topics ranging from Medical Revenue Recovery, PIP, Workers Compensation, and Commercial Insurance. We hope to have this blog shed a light on many common questions.

Over the last few years, many practicing attorneys have left the field of law to pursue other careers or to take a break from their legal careers. Becoming a lawyer is not easy or cheap. A prospective attorney has to take the LSATs, choose a law school, finish law school, pass the bar, and then find a job. Why, after so much studying and hard work, are attorneys “throwing it all away” and leaving the career they worked so hard for?

One of the primary reasons–at least for a temporary hiatus from the law–is to spend more time with family. Female attorneys especially leave the legal world more than male attorneys to stay home with their children and take care of this “first-priority.”

Other explanations offered by former attorneys—male and female—include a “lack of career satisfaction” and “feeling stalled in their careers.” If a professional feels under-appreciated by his or her employer, ambition turns into frustration and unhappiness. Also, the legal profession traditionally has been characterized by long and stress-filled hours. Lawyer’s bill by the hour, and, at large law firms especially, associates are expected to bill a certain number of hours each month. This puts pressure on them to work many hours and extra days. Finally, the strict schedules many attorneys face, dealing with judicial and other deadlines for example, might cause them to abandon the field entirely.

Attorneys who leave the practice of law often return over time. This is not an easy process, since it requires an updated knowledge of the law and a great deal of confidence. Non-attorneys who return to the workplace sometimes find it intimidating even to get back into the workforce. Attorneys, though, who tend to have a tremendous amount of drive, which led them into the field in the first place, usually have less of a problem getting back on track in the workplace, despite the demands of getting up to speed with changes in the law and its practice.

We hope you found the information provided in this article helpful to various questions you may have had concerning the healthcare industry. For information pertaining to our services for medical providers, please click here. Please note, Callagy Law has recovered over $200,000,000 for medical providers, and that number grows daily. Please free to reach out to Sean Callagy of Callagy Law at any time for questions you may have concerning personal and business matters. Callagy Law offices are located conveniently in Paramus, NJ. Beyond the scope of information, Sean Callagy has developed multiple areas of our healthcare legal practice and business coaching. Feel free to connect with us on Facebook, Twitter or LinkedIn! Additionally you can subscribe to our daily videos on YouTube.

Learn More About Callagy Law Here:

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Why People Leave the Practice of Law | Callagy Law

Monday, April 11, 2016

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Limited Policies Under New Jersey No-Fault Law

This blog will take a closer look into limited policies under New Jersey No-Fault Law – and examine basic versus standard policies.

New Jersey automobile insurance policies generally provide No-Fault, or PIP, coverage in the amount of $250,000.00 for medically necessary and reasonable medical treatment per person, per motor vehicle accident, for covered individuals. However, an insured may opt for reduced coverage limits. For example, an insured may opt for only $15,000.00 No-Fault coverage, per person, per motor vehicle accident. Does this limited amount apply to all individuals covered by the policy? As discussed below, the answer may vary depending on whether the governing policy is “basic” or “standard.”

“Basic” policies grew out of the Automobile Insurance Cost Reduction Act, known as “AICRA.” This law was passed in 1998 with an effective date of March 22, 1999. Under AICRA, a new class of PIP benefits was created, namely, “basic” coverage, to be distinguished from “standard” coverage. Basic policies provide for very limited medical coverage, and apply to all individuals covered by the policy. N.J.S.A. 39:6A-3.1 provides the following:

As an alternative to the mandatory coverages provided in sections 3 and 4 of P.L.1972, c. 70 (C.39:6A-3 and 39:6A-4), any owner or registered owner of an automobile registered or principally garaged in this State may elect a basic automobile insurance policy providing the following coverage:

Personal injury protection coverage, for the payment of benefits without regard to negligence, liability or fault of any kind, to the named insured and members of his family residing in his household, who sustained bodily injury as a result of an accident while occupying, entering into, alighting from or using an automobile, or as a pedestrian, caused by an automobile or by an object propelled by or from an automobile, and to other persons sustaining bodily injury while occupying, entering into, alighting from or using the automobile of the named insured, with the permission of the named insured. (emphasis added)

Standard policies may also provide for limited policy coverage. A standard policy, however, only applies to the named insured and resident relatives. provides the following:

39:6A-4.3. Personal injury protection coverage options

Personal injury protection coverage options. With respect to personal injury protection coverage provided on an automobile in accordance with section 4 of P.L.1972, c. 70 (C.39:6A-4), the automobile insurer shall provide the following coverage options:

Medical expense benefits in amounts of $150,000, $75,000, $50,000 or $15,000 per person per accident; except that, medical expense benefits shall be paid in an amount not to exceed $250,000 for all medically necessary treatment of permanent or significant brain injury, spinal cord injury or disfigurement or for medically necessary treatment of other permanent or significant injuries rendered at a trauma center or acute care hospital immediately following the accident and until the patient is stable, no longer requires critical care and can be safely discharged or transferred to another facility in the judgment of the attending physician.

An option elected by the named insured in accordance with this section shall apply only to the named insured and any resident relative in the named insured’s household who is not a named insured under another automobile insurance policy, and not to any other person eligible for personal injury protection benefits required to be provided in accordance with section 4 of P.L.1972, c. 70 (C.39:6A-4). (emphasis added)

Therefore, if a PIP carrier provides notice that a limited policy amount has been exhausted and no more medical bills will be reimbursed, request documents to demonstrate that the limited policy indeed applies. If the patient is not the named insured and is not a resident relative of the named insured, it is critical to determine if the governing policy is “basic” or “standard.”

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Limited Policies Under New Jersey No-Fault Law

Friday, April 8, 2016

Social Media and the Legal Profession | Callagy Law

Within the last ten years, social media usage has sky rocketed. In 2005, about 7% of American adults used social media. Now, 65% of Americans utilize social media for both personal associations and work-related marketing. This is true as well with the legal profession. Attorneys and law firms have adopted this new form of advertising to promote their services, link up with other lawyers and would-be clients, and provide information about their areas of practice.

Facebook, the largest social network site, began as a personal tool to get to know other people. Currently, it is a place where attorneys, among others, offer their services and make connections with others interested in law. An attorney has to be careful, however. Posting information has the potential to affect negatively the credibility and/or professional reputation of the firm. LinkedIn is a social media site that is used specifically to talk business. Through LinkedIn, attorneys can connect with past and future employers, classmates, and real contacts. They can answer questions of those who are concerned or interested in the field of law or in hiring a law firm.

Blogging is another social networking device exercised by lawyers and law firms to interact with readers and associates. The public enjoys reading blogs because a blog offers a lot of information in a timely manner. For this reason, blogs offer cutting-edge legal commentary about current issues. There are also sites specific to lawyers, including Martindale-Hubbell Connected, which is Lexis Nexis’s social networking tool.

As the use of social media grows among attorneys and law firms, it is essential to remain aware and conscious of what is appropriate to post and what is not. Discussing an active legal matter, for example, is inappropriate, because attorney-client confidentiality could be impacted.

Social networking has become the new method of contact between family, friends, and employers. Keeping up with the pace, lawyers contribute their experience and knowledge to the media.

We hope you found the information provided in this article helpful to your everyday life and business. Please free to reach out to Sean Callagy or the Callagy Law team at any time for questions you may have concerning personal and business matters. Callagy Law’s headquarters is located conveniently in Paramus, NJ. Beyond the scope of information, Sean Callagy has developed multiple areas of business legal practice and business coaching, if you need help with anything, please reach out to us by calling 201-261-1700 or by emailing us here. Feel free to connect with us on Facebook, Twitter or LinkedIn! Additionally you can subscribe to our daily videos on YouTube by clicking here.

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Social Media and the Legal Profession | Callagy Law

Friday, April 1, 2016

Decision Point Review Plans and Their Significance

In Part 1 of this series, we discussed Decision Point Review Plans (DPRP’s) and how they relate to pre-certification of medical treatment. There, we explained how understanding DPRP’s is critical to any medical provider who sees patients injured as a result of a motor vehicle accident (MVA). You will recall that DPRP’s are required to be filed with the State of New Jersey by carriers who write insurance policies governed by the New Jersey No-Fault laws, otherwise known as PIP, or Personal Injury Protection, and that DPRP’s are filed with the state by PIP insurance carriers in order to set forth the substantive and procedural requirements needed for a medical provider to be reimbursed by the PIP carrier. DPRP’s enable carriers not only to set forth how and when claims should be submitted, but also, among other things, to regulate specific diagnostic tests and apply additional deductible or co-pay penalties for failure to comply.

In Part 2 of our discussion, we focus on payment appeal procedures. Basically, any medical provider can appeal underpaid, denied or unpaid PIP claims with the PIP carrier or a carrier-approved third-party vendor. It is the first step in the dispute resolution process, which might end in PIP arbitration. You should proceed carefully with this step because failure to appeal properly can result in a denial from the arbitrator at PIP arbitration. All approved DPRP’s have specific procedures for appealing payments and they vary widely from carrier to carrier. Let’s look at three key areas of difference.

First, some carriers require a specific form for use with appeals; others do not. The DPRP will include a copy of the form. Complete the form as required, paying close attention to the accuracy of the information you provide. Mistakes could cost you in the end. If a particular carrier does not require use of a specific appeal form, you can use your own form, as long as it contains all of the requisite claim information and enough detail as to why you are appealing the payment or non-payment.

Second, proper delivery of the appeal is critical. DPRP’s often include a description of the appeal delivery vehicle. Some require faxing. Some require certified mail. Some require regular mail. All DPRP’s will explain the appeal delivery process they require including addresses and fax numbers. Some DPRP’s will require two levels of appeal, and the fax number for the first level might be different from the second level fax number.

Third, it is essential to wait the proper amount of time after appealing before filing for arbitration. Every carrier requires a specific time to lapse after you appeal, and filing too soon might result in a denial at arbitration.

If your head is starting to spin from trying to fathom all of the variations in procedures among the dozens and dozens of New Jersey PIP carriers, take heart. Knowing all of this, and doing the payment appeals for you to ensure all of the t’s are crossed and i’s are dotted, Callagy Law is standing by. We manage the labyrinthine payment appeals process for you to ensure that carriers, who intentionally look to complicate the process, do not benefit from this undue complexity. Payment appeal procedures are not to be taken lightly, and not understanding or following the correct process can be a grave financial mistake.

We hope you found the information provided in this article helpful to various questions you may have had concerning the healthcare industry. For information pertaining to our services for medical providers, please click here. Please note, Callagy Law has recovered over $185,000,000 for medical providers, and that number grows daily. Please free to reach out to Sean Callagy of Callagy Law at any time for questions you may have concerning personal and business matters. Callagy Law offices are located conveniently in Paramus, NJ. Beyond the scope of information, Sean Callagy has developed multiple areas of our healthcare legal practice and business coaching. Feel free to connect with us on Facebook, Twitter or LinkedIn! Additionally you can subscribe to our daily videos on YouTube.

Learn More About Callagy Law Here:

Decision Point Review Plans and Their Significance