David J. Stern steps down as chairman of DJSP, three execs resign
DJSP Enterprises Chairman David J. Stern, whose law firm has been under intense scrutiny in a Florida foreclosure probe, stepped down from his position as chairman, and three top executives who had been with the company less than a year also resigned. Stephen J. Bernstein, formerly the company's lead independent director, has been appointed as interim chairman of the board, according to a brief news release from DJSP. He will replace Stern, whose law office is the major client of DJSP (DJSP). Stern will continue to serve as DJSP's CEO and president. A press release also announced the resignations of President and Chief Operating Officer Richard Powers, Executive Vice President and CFO Kumar Gursahaney and Vice President and General Counsel Howard S. Burnston. The press statement gave no reasons for the resignations, and company officials could not be reached for comment. Bernstein will provide support to the company as it responds to the "recent developments impacting the company and the industry," the release said. Those developments include three recent sworn statements by former employees publicly released by the Florida Attorney General's Office. The sworn statements allege company employees at the law firm changed dates on foreclosure documents, forged signatures on documents, claimed homeowners were served with foreclosure lawsuits when they weren't, and overcharged for services. Stern's law office is under investigation by Attorney General Bill McCollum, who won a legal victory last week when a Palm Beach County judge denied Stern's motion to quash the AG's subpoena. Sarah Mueller is an editorial assistant with HousingWire.