This undated photo provided by Bill Warner, http://www.wbipi.com/ , shows David Stern, a Florida foreclosure lawyer who became one of the nation's top foreclosure lawyers. The worse things got for homeowners, the better they got for Stern. That is, until last fall, when the nation’s foreclosure machine blew apart and Stern’s gilded world came undone. (AP Photo/Bill Warner).Feb. 6, 2011 1:56 PM ET, The rise and fall of a foreclosure king.
MICHELLE CONLINMICHELLE CONLIN, AP Business Writer.
FORT LAUDERDALE, Fla. (AP) — During the housing crash, it was good to be a foreclosure king. David Stern was Florida's top foreclosure lawyer, and he lived like an oil sheik. He piled up a collection of trophy properties, glided through town in a fleet of six-figure sports cars and, with his bombshell wife, partied on an ocean cruiser the size of a small hotel.
When homeowners fell behind on their mortgages, the banks flocked to "foreclosure mills" like Stern's to push foreclosures through the courts on their behalf. To his megabank clients — Bank of America, Goldman Sachs, GMAC, Citibank and Wells Fargo — Stern was the ultimate Repo Man.
At industry gatherings, Stern bragged in his boyish voice of taking mortgages from the "cradle to the grave." Of the federal government's disastrous homeowner relief plan, which was supposed to keep people from getting evicted, he quipped: "Fortunately, it's failing."
"What Stern represents is an industry that was completely unrestrained, unchecked, unpunished and unsupervised," says Florida defense attorney Matt Weidner. "This was business gone wild."
The 50 state attorneys general are conducting a foreclosure industry probe. So are state and federal regulators. Class-action lawsuits are gathering force, and, with increasing frequency, state judges are tossing out foreclosure suits in favor of homeowners. The developments are prolonging the housing market depression, casting doubt on mortgage ownership and calling into question whether mortgage-backed securities are, in fact, backed by nothing at all.
The Florida attorney general's economic crimes division is investigating three law firms, including Stern's, over allegations that they created fraudulent legal documents, gouged homeowners with inflated fees, steered business to companies they owned and filed foreclosures without proving the bank actually had a legal interest in the loan.
Early 2010 brought Stern's biggest coup. He spun off a chunk of his business called DJSP that performed mortgage process services like title searches and lien monitoring and took it public. The deal reportedly made Stern $146 million, including $55 million cash.
DJSP stock started trading in January at about $10 a share. Within months, battered by rumors of indiscretions at Stern's firm, it was worth half. On July 20, two investors filed a securities-fraud class action alleging that Stern knowingly misled them by failing to disclose the problems within the business.
"DJSP was a scam," says Bill Warner, a Sarasota private eye who successfully defended himself against a foreclosure suit brought by Stern.
At the end of July, Florida attorney Kenneth Trent, who had blocked Stern from foreclosing on a homeowner who was current on his mortgage, filed a federal lawsuit against Stern's firm under a statute normally reserved for gangsters, the Racketeer Influenced and Corrupt Organizations Act--or RICO. Days later, the Florida attorney general launched an investigation against Stern's firm and three other foreclosure mills. The AG's arguments were similar to those brought in Kent's class action.
The firm's fall has spawned more chaos in Florida's circus-like foreclosure courts. A slew of homes Stern foreclosed on that sold for $240,000 each during the credit bubble sold at auction as orphaned cases for $200. Recently, even the most infamous "rocket docket," in Lee County, where judges were reported to have signed off on a foreclosure every 30 seconds, ground to a virtual standstill as the Stern firm withdrew from case after case. Some of Stern's remaining lawyers show up court with greasy hair, fleece jackets and food-stained clothing. As for Stern, if federal and state prosecutors file criminal charges, he (Stern) could end up in prison.
Deutsche Bank Financial Fraud On Wall Street & US Mortgage Scam Just The Tip of the Foreclosure Iceberg Linked To Stern Law Firm. David J. Stern could go to prison, it would be Federal charges from the SEC and the Department of Justice; Chardan 2008 was set up as a special-purpose acquisition company, known as a Spac. A Spac, sometimes referred to as a “blank check” company, raises money from investors in an initial public offering with the stated purpose of using those funds to acquire a company, often in a particular industry or a specific part of the world.
Sunday, May 23, 2010….DJSP Enterprises aka Law Offices of David J. Stern Major Share Holders Kerry Propper and Dr. Richard Propper Links to SBA Fraud. DJSP Enterprises on the NASDAQ went from a high of $13.65 to a current low of $0.49 and David J. Stern got $55,000,000 up front to go public with this scam, see current NASDAQ quote, click here.
NASDAQ, DJSP Enterprises Major Shareholders David J. Stern (Law office Foreclosure Mill). Major shareholder of DJSP Enterprises include Kerry Propper who is/was the Subject of Department of Justice Investigation and SBA Law Suit in 2003. Richard D. Propper is also involved with DJSP Enterprises, he had at least two run-ins with the Department of Justice see link click here. DJSP Enterprises is the Law Offices of David J. Stern, P.A., 900 S Pine Island Rd Ste 400, Plantation, Florida.
Bill Warner Private Investigator, SEX, CRIME, CHEATERS & TERRORISM.