Foreclosure Mill King David Stern Announces Big Management Changes

David Stern’s company, the foreclosure mill that has removed thousands of Floridans from their homes, announced big management changes today. Otherwise known as abandoning ship:

DJSP Enterprises, Inc. (Nasdaq:DJSP) (Nasdaq:DJSPW) (Nasdaq:DJSPU) today announced that Stephen J. Bernstein, the Company’s Lead Independent Director, has been appointed as Interim Chairman of the Board of the Company. Initially, Mr. Bernstein’s role as non-executive Chairman will be a full time position as he provides Board support to the Company as it develops and executes plans to respond to recent developments impacting the Company and the industry. Mr. Bernstein replaces Mr. David J. Stern as Chairman of the Board. Mr. Stern continues in his role as Chief Executive Officer of the Company and will serve as its President.

The Company also announced the voluntary resignations of Richard Powers, as President and Chief Operating Officer, Kumar Gursahaney as Executive Vice President and Chief Financial Officer and Howard S. Burnston, as Vice President, General Counsel and Secretary, each of whom joined the Company in 2010. [my emphasis]

The only question is whether these guys were fired for being insufficiently loyal, or whether they’re trying to get out just before the sheriff arrives.

  1. MadDog says:

    I found it interesting that the General Counsel is one of those jumping ship (or as you say, thrown overboard).

    One additional reason perhaps for some of those folks’ departures may be that their individual criminal defense attorneys can’t make any deals with the prosecutors when they are still on the company’s payroll.

    Witness for the prosecution anyone?

  2. behindthefall says:

    A comment on an earlier thread said, as I recall, that there was a Chinese connection, perhaps amounting to ownership of the operation. Was that true? Does that still exist? And why, I ask myself, would the Chinese be trying to get families here tossed out of their homes? Or is that an uncharitable view of the proceedings?

      • Rayne says:

        Thanks, quite interesting. This bit grabs me:

        The worst part about this deal though, was that the new publicly listed company was wholly reliant on Mr. Stern’s law firm for its revenue. According to a DJSP filing, “[r]evenues from [the relationship with the Stern law firm] account for approximately 94%, 97% and 98% of our total revenues for the years ended December 31, 2009, 2008 and 2007, respectively.” In addition, and again according to DJSP, 49 percent of the cases referred by the Stern law firm are attributable to one undisclosed client of the law firm. The Stern law firm’s top 10 clients accounted for 89.5 percent of DJSP’s foreclosure files.

        Hello, Fannie? Or is that you, Freddie?

      • mzchief says:

        Check out’s US landing page today:

        China raises rates to control prices
        Cost of lending rises for first time in 3 years
        * Lex China bank rates
        * Shock China rate move supports dollar
        * Geithner denies US bid to weaken dollar
        * Economic Outlook China balancing act tested
        * In depth Currency wars
        * Money Supply China’s rate rise

        Goldman Sachs quarterly profits fall 40%
        Trading revenues decline but bank beats forecasts
        * View from the Top Gerald Corrigan of Goldman
        * Watchdog says SEC’s Goldman suit was fair

        EU finance ministers agree hedge fund deal
        New rules would allow pan-European marketing
        * Hedge funds await EU talks on new rules
        * French-UK stand-off stalls hedge fund deal

        BofA reports third-quarter loss of $7.3bn
        $10.4bn charge underscores sweeping effects of financial reforms
        * Citi seeks to allay foreclosure fears
        * Video Good news from Citigroup

    • qweryous says:

      That got my attention a while ago.

      Other than various activities that might lead to SEC enforcement action- nothing nothing particularily unusual was found.

      Here is a good overview of what the ‘china connection’ is to the Stern companies.

      It is at

      Essentially- the China connection is a Special Purpose Acquisition Corporation “Chardan 2008 China Acquisition Corporation”. Which was incorporated in China. Some might analyze the function of these transactions as : cash out Stern, cash in suckers.

      Perhaps because there was some history that various involved had with US authorities.

      The China connection here is essentially a flag of convenience rather than any significant Chinese ownership AFAIK.

      After checking these details one again wonders- how can details like this be missed?

      • thatvisionthing says:

        See I don’t understand much of that at all, but what I wonder is if it’s like Blackwater becoming Xe, a way to break the chain of title to criminal culpability — so the law can’t foreclose on Stern for his crimes. Look ma, no dirty hands! Now China’s holding the bag. But China’s them not us, there not here, and didn’t do anything anyway. Door slam slam slam. Move on.

        I just quoted a Wendell Berry poem over in the Edger’s diary Questioning Growth: “I Want You To Imagine A World” — and suddenly I see it everywhere — disintegration — economy, contracts, law, government, society, planet…

        The world is babbled to pieces after
        the divorce of things from their names.

        …everything all babbled to pieces.

  3. cbl2 says:

    oh lordy ew, your headline had the desired effect –

    and ugh, Texas AG Greg Abbott on CNBC just now – ‘paperwork errors, technicalities’

  4. jdmckay0 says:

    (…) they’re trying to get out just before the sheriff arrives.

    I’m skeptical: even if there is a sheriff w/jurisdiction, none of BO’s agencies have shown any commitment to undoing any of this kind of stuff. Didn’t happen w/rating agencies, didn’t happen w/GS betting against it’s own customers, hasn’t happened w/the Penatagon-Private-Contractor-Money-Mills… hasn’t happened anywhere that corp. fruad is rampant, period.

    And we’re in midst of pre-election “debates” about too much government “ruining America.” Go figure.

    With BP thing, and little noticed massive layoffs of teachers nationwide in last couple weeks, and whole lot of other stuff, I’ve been increasingly struck by what seems to be a lack of funding (can’t afford?) for so much stuff… whether WS, banking, this foreclosure mess, derivative fraud, whole lot of Pharma shenanigans, utter lack of oversight of food production, even water quality at many large population centers… that US capacity to even attempt oversight of critical society functions has gone toes up.

    Personally, I think it’s a canary-in-the-mine (oh yea, I forgot oversight of mining regs!!!) indication how far the wheels have come off here. And it looks like, given quality/content of public discourse, that we’re about to send to congress a whole bunch of people who not only seem dedicated to the Bush era shenanigans which got us here, they are committed to ramping up the methods and “principles” as a “solution” to the mess.

    And most of US public doesn’t have a clue: they’re “mad as hell”, want “change”, and embrace vociferous Palin’ites charge to return to our roots!

    When all this capital is disappearing from US economy into so many black holes, seems the best ideas we hear from lawmakers is clamp down on China’s currency value so we can export more shit.

    The US has not only lost it’s moral rudder, it’s going in fantasy land circles doing 3rd world dictator type un-intelligent nonsense… in the name of the CONSTITUTION and GOD.

  5. onitgoes says:

    I really appreciate FDL and all the wonderful real journalists who post real “news” and information here, but lately I’ve had to really force myself to read some of these posts. I know I’m moving into being negative, but oy vey! What. a. mess.

    Give the citizenry circuses, clowns & fools to distract them, while the might ship sinks beneath the tidal wave of venal criminality.

    Good post. Thanks for the info and further info in comments about China. I sure as heck don’t know what this portends, but it doesn’t look good to me. You know the “small people” will take it where the sun don’t shine, whilst the richy-riches laugh all the way to their off-shore accounts.

  6. perris says:

    yet all over the news they are announcing that bank of america has “solved” their paperwork problems are are going to renew their foreclosures

  7. parsnip says:

    perris @ 13

    The entire ‘moratorium’ was a mere PR stunt, similar to the never-ending ‘junk shot’ to ‘bottom kill’ saga of the spring and summer. Meanwhile fresh oil continues to wash ashore…..

    Fact is, in many jurisdictions foreclosures never stopped at all. I’ve collected a few anecdotal comments from the economics blogs to this effect in Ohio and Florida, from lawyers on the scene. This kind of PR stunt serves to make people let down their guard, and signals the media to move on to another balloon boy.


    The SPACs sound like another scam by private equity. It reminded me of the NYT article about how the Simmons mattress company was hollowed out and spit out by a succession of private equity firms.

    In this case it looks like private equity gets suckers to pony up the money to buy a company that only the insiders know is going to tank, in order to enrich the David J. Sterns of the world one last time, or as a way to fill their legal defense fund account.

    It’s amazing anyone is still in the market, trust is all but gone at this point in this country. What happens to the con game when there’s no trust left? I guess we’ll all be serfs at that point, begging to be allowed to rent our former homes.

  8. clemenza says:

    HA! Give me a break.

    This guy isn’t behind bars yet? He’s not even been questioned?

    That’s right, he’s one of Fannie’s favorite foreclosure hit men.

    So, moving the deck chairs again.

    That all we’re gonna hear from them and it’s back to business.

    They don’t need no stinking laws.

    • cbl2 says:

      le sigh

      I keep thinking of the UBS guy sitting in prison after cooperating, while Mozilo gets another manicure

    • emptywheel says:

      The reports on that all exaggerate the degree to which these depositions–at least those that have been released publicly–make the quid pro quo clear. I don’t doubt that’s what was going on, but the reports on it are ahead of the available evidence.

  9. bgrothus says:

    I was suddenly thinking that even if a house is not in foreclosure but is for sale and has been bought/sold in the last 8-10 years, where is That Paperwork? I mean, all of it is in the same traunches with all of the other mortgages, is it not? Can they find the paperwork, and is it legal, ie: do we or they or anyone know who owns ANY mortgage in this mess? How would they separate all this before it started to go south?

  10. dosido says:

    The only question is whether these guys were fired for being insufficiently loyal, or whether they’re trying to get out just before the sheriff arrives.

    Oh I know! I know!

    Trying to get out before the sheriff arrives. Right?

  11. Synoia says:

    The TBTF fail banks & Freddie & Fanny are going to throw Stern & his company under the bus and blame him for the whole mess.

    “It was a rogue contractor. It was all his fault”.

    Now about those lost note affidavits…how were they the fault of a “rogue contractor?”