David J. Stern, the reputed “foreclosure king”, has resigned as President and CEO of DJSP Enterprises, Inc. His resignation comes amidst an ongoing investigation which is exploring whether accusations of false documentation in foreclosure cases his firm handled are true. Stern stated he is resigning in order to focus on the operations of his law firm.
David Stern’s office has been at the center of many accusations of foreclosure fraud in light of the ongoing “robo signing” revelations. If you feel as though you have been victimized by mortgage fraud, don’t despair. Our Miami mortgage fraud lawyers will carefully evaluate the facts and legal issues in your case. If we believe that you are a mortgage fraud victim, we will aggressively represent you in your case against the predatory mortgage lender — fighting for your rights and seeking justice in the legal system. If you are a victim of mortgage fraud by a bank or mortgage lender, we will use our legal experience in real estate and mortgage fraud to stand up for your rights. We want to help you keep your home.
DJSP Enterprises, a publicly traded company, provides support services and document handling to Stern’s firm, the Law Offices of David J. Stern, PA. Until recently, this was the largest foreclosure firm in the state. However, clients such as Fannie Mae and Freddie Mac have left Stern as he faces an investigation by the Florida attorney general.
Stern is being replaced by Stephen Bernstein, the company’s interim chairman. Effective November 19th, he is the permanent chairman, president, and CEO.
In January 2010, Stern made $58.7 million in cash and stock interest when DJSP Enterprises went public. The company once employed 1,000 thousand people, but the company has announced more than 500 layoffs this year.
The problems don’t stop there. DJSP Enterprises reported it had defaulted on a line of credit with Bank of America. The stock’s value has plummeted throughout the year. The stock’s 52 week high was $13.65 and its low was 33 cents. As of Tuesday evening, the shares were trading at 41 cents.
While Stern states he is resigning in order to focus on his law firm his resignation is most likely a result of the recent problems which have led to the State attorney general’s investigation. Nevertheless, Stern will have all his time to solely devote to his law practice. Its certainly possible that the alleged frauds and oversights may have occurred because he may have been stretched too thin between DJSP and the law firm.
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