Monsey referral service accuses Hawthorne lawyer of defamation

The founder of a Monsey organization that refers debtors to attorneys has accused a Hawthorne law firm of defamation for questioning his services.

Yitzchok Shteierman is demanding $250,000 from Joel Schneck and Portnoy Schneck LLC, in a complaint filed on Sept. 30 in Westchester Supreme Court and moved on Oct. 1 to U.S. District Court, White Plains.

The dispute concerns the activities of New York Hope Inc., a nonprofit that Shteierman founded to helps debtors defend themselves against creditors. It has never operated as a law firm or provided legal representation, according to the complaint. Instead, it helps debtors get affordable legal representation at a reduced rate.

He claims that Schneck submitted a report to the New York Attorney General that contains false and misleading allegations “for the sole purpose of causing plaintiff to unduly be subject to investigation.”

Schneck did not reply to an email requesting his side of the story, but his position is represented in the Aug. 21 message he emailed to the attorney general’s consumer bureau.

“I am filing this grievance,” the message states, “after Mr. Shteierman left several voicemails for my partner advising that he was going to sue my firm and try (to) put us out of business based upon his claim that we advised others that his set up is illegal, which it is.”

Schneck’s law firm specializes in collecting bad debts and money owed to businesses for goods or services that have been delivered but not been paid for yet. The firm is based in Hamilton, New Jersey and has on office in Saw Mill River Road in Hawthorne.

He claims that Shteierman, also known as Isaac Stern, practices law without a license and that New York Hope holds itself out as a nonprofit but actually provides legal services for a profit for clients who are not indigent.

For instance, he cited a proposed retainer agreement from a law firm to which New York Hope has referred clients. The listed phone number answers as The Isaac Financial Group, according to the grievance complaint, and says payments should be made to New York Hope.

Shteierman depicts Schneck’s actions as a “personal vendetta.”

He accused Schneck of defamation and harassment and charged Portnoy Schneck with vicarious liability.

Shteierman is defending himself in the legal action, as are Schneck and Portnoy Schneck.