Mortgage Servicing Fraud
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From the NY Times.  Not soon enough in my opinion.  Hopefully his next office will be in a Federal Prison.  March 7, 2011

A Lawyer Under Investigation Shuts Down His Foreclosure Practice


NY Times

David J. Stern, one of the country’s best-known beneficiaries of the foreclosure boom, who pocketed millions from evictions processed by his Florida law firm, told regulators on Monday that he was shutting down his foreclosure practice.

Mr. Stern’s law firm in Plantation, Fla., will end its involvement in all pending foreclosures at the end of the month, according to a filing with the Securities and Exchange Commission.

A lawyer who enjoyed a lifestyle of mansions and flashy sports cars and owned a yacht called Misunderstood, Mr. Stern and his law firm have been at the center of an investigation by the Florida attorney general’s office into whether numerous law firms falsified documents to speed up foreclosures.

Mr. Stern’s lawyer, Jeffrey Tew, said he would not comment beyond what was in the S.E.C. filing.

At its peak in 2009, the Stern law firm handled 70,000 foreclosures, or about 20 percent of such actions in the state, bringing in $260 million in revenue.

But after the announcement of the investigations, Mr. Stern’s law firm lost its biggest clients, including Citibank and the mortgage lending giant Fannie Mae. Its executives left, and the company laid off most employees.

The law firm’s primary client was DJSP Enterprises, a publicly traded company that acquired the back-office operations of the David J. Stern law firm in early 2010. The plan was to replicate the law firm’s foreclosure business model in several states as millions of people across the country continued to lose their homes.

The public offering netted Mr. Stern $60 million, but it appears to have been a money loser for other investors. Shares of DJSP Enterprises, which traded as high as $14 last summer, traded at 14 cents Monday on Nasdaq.

One of those investors, Kerry Propper, who runs a boutique investment bank on Wall Street, did not respond to an e-mail seeking comment.

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Links to SEC filing - adios Mr. Moron...

Here are some salient sentences from the filings:


Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

DJSP Enterprises, Inc. (the “Company”) today announced that it has notified The NASDAQ Stock Market LLC (“NASDAQ”) of its intent to voluntarily delist its ordinary shares, warrants, and units from the NASDAQ Global Market and deregister its ordinary shares, warrants, and units under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  In connection therewith, the Company notified NASDAQ of its intention to file, on or about March 18, 2011, a Form 25 with the Securities and Exchange Commission (the “SEC”) to voluntarily delist the ordinary shares, warrants, and units. The ordinary shares, warrants, and units will continue to be listed through March 28, 2011 and will no longer be listed thereafter.

The Company also announced its intention to file a Form 15 with the SEC on or about March 28, 2011, in order to terminate the registration of the ordinary shares, warrants, and units under Section 12 of the Exchange Act and to terminate its reporting obligations under the Exchange Act.

A copy of the press release announcing the Company’s intention to delist and deregister the ordinary shares, warrants, and units is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.


DJSP Enterprises, Inc. Announces Intention to Voluntarily Delist and Deregister Stock

PLANTATION, Fla., March 8, 2011 – DJSP Enterprises, Inc. (NASDAQ: DJSP, DJSPW, DJSPU) today announced that it has submitted written notice to The NASDAQ Stock Market LLC (“NASDAQ”) of its intent to voluntarily delist its ordinary shares, warrants, and units from the NASDAQ Global Market and deregister its ordinary shares, warrants, and units under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).


I wonder if the Chinese investors will simply walk away or send hitmen............???

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Here we are  in July 2011 Stern is vacationing for 7 weeks on his new mega yacht somewhere in the Mediterranean sea.
When he was required to appear in a hearing at court on July 27, 2011 he made arrangements with the court  to testify via satellite conference while having a good time on is mega yacht .( by the way it's not the famous "misunderstood"  it's much larger )
If he gets a little bored on the yacht he will fly in his private Gulfstream jet to visit one of his girlfriend around the world and stay in the million dollar plus condos or houses they live in. By the way some of them used to work for Fannie and Freddy while business was booming providing him some inside info.
But he does not care or worry as all the legal matters are addressed by his $ 500,000 a month attorney.
That's the American dream. And by the way if the dream ends here there is always a new nest to live somewhere around the world.
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He accomplished the American Dream. The system allowed him to do what he did.  Unfortunately the end result was the American Nightmare for us.
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