Jan. 4 (Bloomberg) -- David Stern, the Florida foreclosure lawyer who profited off the state’s housing bust before losing his biggest clients, was sued by a partner company that claims it was damaged by Stern’s foreclosure practices.
DJSP Enterprises Inc., which took on the non-legal foreclosure-processing services of Stern’s law firm and depended on his referrals, said in a copy of a complaint included in a regulatory filing dated Jan. 3 that Stern concealed his business was “systematically engaging in unlawful and fraudulent conduct” in foreclosures.
Those practices jeopardized Stern’s relationships with his biggest clients, including banks and government mortgage companies Fannie Mae and Freddie Mac, and the viability of his law firm and DJSP, according to the complaint.
DJSP said the complaint was filed yesterday in Broward County, Florida. The filing of the suit couldn’t be immediately confirmed with the court.
Jeffrey Tew, a lawyer for Stern, said his client would fight the claims. Stern’s law firm has stopped handling foreclosure cases, according to Tew.
“We don’t think the allegations are well founded,” he said in a phone interview.
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