The Real Estate Bloggers

Foreclosure King David J. Stern Shutting Down Law Firm

Posted: 07 Mar 2011 12:45 PM PST

Scaleofjustice After a series of allegations that the law firm of David J. Stern had filed fraudulent paperwork in thousands of foreclosure cases, it looks like the firm is shutting it’s doors and getting out of the business.

DJSP Enterprises, the publicly traded firm that handled Stern’s back-office paperwork, filed a disclosure Monday morning with the Securities and Exchange Commission notifying investors that its main source of revenue would be closing.

“DJSP Enterprises, Inc.’s (the “Company’s”) primary customer, the Law Offices of David J. Stern, P.A., has announced that it will be ceasing the practice of law with respect to all pending foreclosure matters in the State of Florida as of March 31, 2011. As a result, the Company does not expect to receive any further file referrals from this customer,” DJSP said in the SEC filing. via the Sun Sentinel

What is interesting is that that the firm had gained a great deal of publicity and press as being the premier foreclosure law firm in the country. The processing arm of the firm, DJSB, is a public company but without the flow of filings it looks like is going to be Dead in the Water. I am always amazed when a company is so eager to trumpet it’s successes yet the back-end of the company is committing alleged activities that may be flaunting the law.

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Foreclosure King David J. Stern Shutting Down Law Firm