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DJSP Enterprises (DJSP) headed up David J. Stern, whose Florida law firm has come under fire for allegedly mishandling foreclosures, laid off another 198 employees this week, citing reduced file volumes. Stern recently resigned as the chairman of DJSP Enterprises, a major client of his law firm, but he remains CEO and president. Fannie Mae, Freddie Mac and Citigroup (C) suspended foreclosure referrals to the firm. When that was announced, DJSP said it would lay off 10% of its staff. The firm has come under investigation from the Florida Attorney General and Fannie Mae on allegations from former employees that the firm signed hundreds of foreclosure affidavits without reviewing documents or having a notary present. Jeffrey Tew, a lawyer representing Stern, has said in previous published reports that it is unfair to be circulating such statements in the press, and said his client hasn't been given the opportunity to question the statements. So far, DJSP has laid off 300 employees. Write to Jon Prior.

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