Tuesday, March 08, 2011

David J. Stern Foreclosure Mill Out-of-Business

Amid civil and criminal investigations into fraudulent documents filed in Florida courts, the once powerful foreclosure attorney, David J. Stern, is out of business.

DJSP Enterprises, the publicly traded firm that handled Stern’s back-office paperwork, filed a disclosure today with the Securities and Exchange Commission that the Law Offices of David J. Stern would be closing on March 31, 2011.

Before the Florida Attorney General’s Office announced an investigation into the method in which Stern and DJSP Enterprises handled foreclosure matters, they had more than 1,200 employees. Over the last sixty days, that number has dwindled to less than 50.

The law firm’s major customers, including mortgage giants Fannie Mae and Freddie Mac, began pulling their cases from the firm last fall. Stern’s law firm handled tens of thousands of foreclosure cases around Florida.

It was widely reported last month that Stern was trying to sell some luxury assets, including several homes and a yacht, worth millions of dollars. He resigned as chief executive of Plantation, Florida-based DJSP Enterprises in November.

Read on.

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