Out of Prison and Broke, Wrongly Convicted Sell Their Cases

Fernando Bermudez was released from prison at age 40 in 2009, after serving 18 years for a murder a New York judge said he didn’t commit. He soon took out his first advance against the civil rights lawsuit he eventually filed in 2011, seeking $30 million in damages.

Bermudez eventually received about $215,000 in advances from litigation finance companies he declined to name. He said he ended up paying back more than $400,000.

The cash got the husband and father of three through a time when job opportunities were scarce.

Bermudez spent five years fighting New York State in court for payment under its wrongful conviction compensation law, eventually settling for $4.75 million in 2014. Three years later, he settled a separate civil rights lawsuit for another $7 million.

Although he acknowledges the lawsuit loans were his “best option” during a difficult time, Bermudez wasn’t happy about the terms.

“I felt taken advantage of,” Bermudez said. “I just felt exploited.”

Read the whole story at Bloomberg Law here.