November 20th, 2010...Another 155 employees received pink slips Thursday from the Law Offices of David J. Stern and DJSP Enterprises, which processes home foreclosure cases for the Plantation-based law firm.
The layoffs came as Fannie Mae, which withdrew it business from the Stern firm after becoming one of its biggest clients, announced it had named eight law firms to handle foreclosure cases in Florida.
DJSP and the Stern law firm laid off 155 employees Thursday morning. A DJSP spokesman said the company has no intention of closing (get real).
The layoffs and new law firm appointments came on the heels of an investigation by Florida Attorney General Bill McCollum into consumer and defense lawyer complaints of improper document filings with the courts by four law firms including Stern's. McCollum's office issued broad subpoenas for law firm files several months ago.
Following announcement of the subpoenas, Fannie Mae and Freddie Mac — one of Stern's biggest clients — severed ties with the firm.
Foreclosure Attorney David J. Stern Resigns From His DJSP Enterprises Which Went From $13.65 A Share On NASDAQ To .47 Cents Today, When Do Federal Indictments Come Out?
DJSP disclosed yesterday that it’s in default on a $12 million line of credit with Bank of America NA. DJSP provides processing services for the Law Offices of David J. Stern PA, which has been barred from providing services for Fannie Mae and Freddie Mac.
DJSP also said that an affiliate didn’t pay November rent on the principal offices in Plantation Fl. The company said it fired 700 workers. The DJSP stock closed yesterday at $0.47 cents, an all-time low. The high was $13.50 on April 23, 2010.
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