Foreclosure Icon David J. Stern may be Disbarred in Florida
At one time, the Law Office of David J. Stern was the largest foreclosure Plaintiff’s firm in Florida, singly handling about 20% of the foreclosure cases in Florida. The firm and its iconic managing partner were the topic of controversy during their high point, both for their legal practices and for their lavish indulgences. The Huffington Post compares David Stern to 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.”
Time has taken its toll on David Stern’s controversial practices. As a result of the robo-signing concerns, Stern was investigated by the State Attorney General. Stern’s largest clients withdrew their business from the firm. Stern’s firm was blacklisted by Fannie Mae and Freddie Mac. Around January, 2011, the public company that David Stern founded (DJSP Enterprises) sued Stern for malpractice. Stern initially received $58 million when he sold his back office document processing business to DSJP enterprises. The law office was closed in March, 2011.
The most recent fallout relates to Stern’s license to practice law. When the firm closed, it left more than 100,000 abandoned cases. The referee for the Florida Supreme Court, Palm Beach County Court Judge Nancy Perez, recommended disbarment. The report notes that Stern accepted a “tsunami” of foreclosure cases, and then handed them off to his under experienced, overloaded associates who averaged 1,600 cases each. Six circuit judges testified about the problems from Stern’s office, described falsified documents, and lawyers skipping court hearings and ignoring court orders.
The recommendation for disbarment now goes to the Florida Supreme Court, and Stern may appeal.
