The Scandal of Foreclosure Mill Law Firms Continues

It has been well known for some time that many of the foreclosure mill law firms are not truly law firms.  Rather, they are just paperwork processors for the massive banks masquerading as lawyers.  One aspect of this, while well known but unpunished, is the fact that these firms flaunt the rules prohibiting law firms from splitting legal fees with non-lawyers or having non-lawyer shareholders.  Why the state ethics boards that govern lawyers are not cracking down is beyond me.  One thing that might crack down on them is the marketplace.  In today’s New York Times, it is reported that a scheme to spin off the “backoffice” operations of one of the most notorious of these law firms, that of David J. Stern in Florida is a disaster for investors. It does not help these investors that Mr. Stern’s “law firm” has essentially been fired by all of its major clients since the robosigning scandal first came out.

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Author: timothymccandless

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