Hedge fund allegedly scammed 9/11 first responders, NFL concussion victims
A hedge fund deceived police officers and firefighters who responded to the Sept. 11 terrorist attacks and cost them millions earmarked for their health, New York’s attorney general and a federal regulator alleged in a lawsuit Tuesday.
The hedge fund, RD Legal Capital, in some instances allegedly charged the first responders interest rates above 250% to advance federal cash due for the medical care of sick workers, according to the suit. RD Legal similarly defrauded former National Football League players in line for a $1 billion settlement over head injuries suffered in their careers, authorities alleged.
In the lawsuit filed Tuesday in a Manhattan federal court, New York Attorney General Eric Schneiderman and the Consumer Financial Protection Bureau said RD Legal lied to first responders and NFL players about the deals they were being offered, including when they would be paid up front and how much they would owe in the end.
“It is unconscionable that RD Legal scammed 9/11 heroes and NFL concussion victims out of millions of dollars,” said CFPB Director Richard Cordray. An attorney for RD Legal described the charges as “outrageous and without merit.”