Report of Referee: Former ‘Foreclosure King’ David Stern Could be Disbarred for Foreclosure Fraud
‘Foreclosure King’ could be disbarred for foreclosure fraud
South Florida attorney David J. Stern may be known as the mortgage industry’s “foreclosure king,” but he may soon lose his authority to practice law in Florida.
Stern’s empire shut down in 2010, after employees went public with allegations that they were given cars, jewelry and even houses in exchange for falsifying and forging documents. Fannie Mae and Freddie Mac, Stern’s largest clients, canceled contracts with the David J. Stern law firm.
Years after the Florida Bar started investigating Stern, it wants to disbar him. This week, Judge Nancy Perez agreed. In her report, she said Stern, “created chaos on the courts of the state of Florida, prejudicing the whole system as a whole.”
Perez’s recommendation for disbarment still needs to be approved by the Florida Supreme Court, and Stern could appeal.
During the housing downturn, many lenders turned to Stern’s law firm to handle foreclosures because he took houses away from homeowners quickly.