How current events impact business & real estate

Friday, March 23, 2012

The Steven J. Baum Law Firm, Formerly New York’s Largest Foreclosure Mill Firm, Settles with the Attorney General

As reported on this blog in October of 2011, the Steven J. Baum Law Firm reached a settlement with the United States Attorney for the Southern District of New York whereby it agreed to pay a two (2) million dollar fine and amend its foreclosure practices. Earlier this week, a settlement was reached with the State’s Attorney General’s Office where the firm’s managing partners, Steven J. Baum and Brian Kumeiga, agreed not to handle any foreclosure cases for lenders or servicers in New York State courts for two (2) years and pay a four (4) million dollar fine. Pillar Processing, a document processing entity created by the firm, is also on the hook for the fine. The suit alleged that the Steven J. Baum Law Firm did not take the necessary steps to ensure the accuracy of the legal papers filed in its foreclosure complaints and bankruptcy proceedings. Per the terms of the settlement agreement the firm neither admitted nor denied any findings of wrongdoing in the case.

As part of the settlement half of the four (4) million dollar fine will be allocated to a fund that helps New York residents in foreclosure. Although the firm is now defunct, it remains involved in litigation with other borrowers who believe their rights were compromised by the firm’s practices. We will continue to update you on the outcome of these cases.

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