Thursday, November 18, 2010

Foreclosure fraud super villain David J. Stern defaults on a $12 million dollar loan...

Talk about karma, a unit of the law firm at the heart of the current foreclosure fraud mess, The Law Offices of David J. Stern, specifically DAL Group LLC has defaulted on a $12 million dollar revolving line of credit.  From the Bloomberg story...

Stern's DAL Enters Forbearance Agreement With Bank of America Over Credit

A business run by David Stern, the Florida foreclosure lawyer who is under investigation by the state’s attorney general, entered a forbearance agreement with lender Bank of America NA.
The bank agreed not to take action in the period ending Nov. 26 over a default on a revolving line of credit by DAL Group LLC, a unit of Stern’s foreclosure-processing company, DJSP Enterprises Inc., according to a regulatory filing. The credit line, entered into in March, has an outstanding principal balance of about $12 million, DAL said.
Jeffrey Tew, Stern’s lawyer, said earlier this month that Stern’s law firm and DJSP cut about half of their staff after mortgage-financing companies Fannie Mae and Freddie Mac ended ties with Stern. Florida Attorney General Bill McCollum said he is investigating Stern’s law firm because it appears to be submitting “false and misleading” documents in foreclosure cases.
Stern’s businesses continue to operate and have a total of between 400 to 500 employees, Tew said on Nov. 4. DAL received a notice of default from Bank of America on Nov. 5, according to the regulatory filing.
No matter though, David J. Stern seems to be doing fine himself
Stern owns a $15 million mansion on an island in Fort Lauderdale, a $6 million beachfront condominium in the city, and a $6 million home in nearby Hillsboro Beach, according to property records...Cars registered under Stern’s name in Florida include three Ferraris, four Porsches, a Rolls-Royce, a Cadillac and the Bugatti, according to the state Department of Highway Safety and Motor Vehicles. He also owns a yacht..."
Well, not just one yacht, but several, two of these...

And his newest acquisition which was rumored to be a 130'+ yacht named "Su Casa Es Mi Casa".  

Oh, the irony of the foreclosure king finding himself in default.  We're waiting on some documents to come in on the Hilda Cardelle case, more tomorrow.

1 comment:

  1. Would you happen to know anything about Flat World Capital, LLC? ( Private Equity Firm), whose subsidiary DAL group acquired China Acquisition ( Shell company), and eventually led to creation of DJSP.