Buyers of David Stern’s Foreclosure Mill Sue for Fraud, Criminal Acts and Demand Refund of Investment

07 Jan

Ah what tangled webs we weave…

Of course, the idea that Stern would even have the chutzpah to SELL his fraudulent foreclosure mill is stunning enough – we are just amazed anyone was ignorant enough to actually buy it…

Ah, but be that as it may, they didn’t STAY ignorant once they had acquired the thing… here is the story from the Palm Beach Post:

Investors sue Stern over $60 million

It’s a great story and we highly recommend reading it in its entirety. Here’s our favorite part of the story:

The lawsuit, filed in Broward County Court by DJSP Enterprises Inc. against David J. Stern and the Law Offices of David J. Stern, also alleges employees were given bonuses and “extravagant gifts for churning out the highest number of foreclosure cases in the least amount of time.”

“Indeed, (the defendants) directed employees to purposefully overlook glaring inaccuracies in foreclosure pleadings and to essentially rubber stamp computer generated documents,” states the seven-count complaint that includes claims of fraud, negligent misrepresentation, conspiracy to defraud, breach of fiduciary duty and legal malpractice.

Stern’s attorney, Jeff Tew, said Wednesday that Stern “denies all of the allegations of this lawsuit.”

DJSP Enterprises, which is represented by Miami-based firm Zarco, Einhorn, Salkowski & Brito, is seeking a return of the $60 million and cancellation of about $90 million in promissory notes used to buy Stern’s Plantation-based business.

Imagine that! David Stern denies all the allegations and apparently thinks people will believe that ‘he didn’t know’ any of this was going on!  Right.

And there’s this bridge in Brooklyn we’d like to offer you for sale…


Let the games begin.




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