From Mother Jones:
The long, legal saga of David J. Stern, the south Florida attorney who made a fortune off the wave of home foreclosures stemming from the housing crisis, has reached its end.
After years of court battles over the practices of Stern’s once-mighty, multimillion-dollar law firm, the Florida Supreme Court last week disbarred Stern. As the Palm Beach Post reports, a Palm Beach County judge who refereed Stern’s case and who recommended disbarment criticized the 53-year-old lawyer for failing to take responsibility or show “any remorse” for his firm’s actions. Mother Jones was one of the first news outlets to expose the shoddy and legally questionable work done by Stern’s army of lawyers and paralegals as it foreclosed on hundreds of thousands of Floridians, including backdating crucial documents used to foreclose on homeowners. Nancy Perez, the Palm Beach County judge, said the blame fell on Stern for that shoddy work. “The incidents were not isolated, but rather a representation of the culture of the firm, as to the low level of competence and ethics,” Perez wrote. “(Stern) is the lawyer. It was his firm. Mr. Stern is responsible.”
Stern’s firm, at its peak, was a juggernaut. In the mid and late 2000s, the government-owned enterprises Fannie Mae and Freddie Mac, as well as many of the nation’s largest banks, retained Stern’s firm to litigate an ever-growing pile of foreclosure cases in Florida, an epicenter of the housing meltdown. At one point, the Law Offices of David J. Stern handled as many as 100,000 foreclosure cases. Stern’s firm and others like it were dubbed “foreclosure mills,” employing hundreds and even thousands of lawyers and paralegals who pushed through foreclosure cases assembly-line-style.
The foreclosure mill model made Stern a very rich man. When I reported on him in August 2010, he lived in a $15 million, 16,000-square-foot mansion on the Atlantic Intracoastal Waterway in Fort Lauderdale. Docked on his property was Misunderstood, his 130-foot, jet-propelled Mangusta yacht—a $20 million-plus replacement for his previous 108-foot Mangusta. He also owned four Ferraris, four Porsches, two Mercedes-Benzes, a Cadillac, and a Bugatti.