Another great post from Sarasota PI Bill Warner Florida
Sunday, March 28, 2010
Foreclosure Law Office of David J. Stern Cash’s in On Foreclosures And Goes Global On The NASDAQ With “Chardan 2008 China Acquisition Corp”.
At the closing of the business combination with Chardan, DAL will own 100% of the business and operations of Default Servicing, Inc. and Professional Title & Abstract Company of Florida and the non-legal operations supporting the foreclosure and other legal proceedings handled by the Law Offices of David J. Stern, P.A., collectively known as the Company.
Upon consummation of the transaction, Beijing, China-based Chardan will change its name to DJSP Enterprises, Inc. “DJSP” (David J. Stern Processing), and its stock is expected to trade on the Nasdaq under the symbols DJSP, DJSPU, and DJSPW. Assuming no redemptions by Chardan shareholders, the current owners of the company, the “Stern Parties” will receive approximately $111 million from DAL and the right to receive another $35 million in post-closing cash. In addition, “Stern Parties” will also hold equity interests. Kerry Propper, Chardan’s chief executive officer said, “The acquisition should generate significant value for our shareholders. David J. Stern, who will be DJSP’s CEO, has an impressive record building this business by continually strengthening the customer relationships on which it is based.”
DJSP Enterprises, Inc. “DJSP” (David J. Stern Processing)…Revenues increased from approximately $116 million in 2007 to an estimated $259 million in 2009; EBITDA adjusted on a pro forma basis increased from approximately $44 million in 2007 to an estimated $68 million in 2009; Net Income adjusted on a pro forma basis increased from approximately $28 million in 2007 to an estimated $43 million in 2009, excluding one-time transaction expenses related to the business combination;
For the six months ended June 30, 2009, the company, DJSP Enterprises, generated revenue of approximately $117 million, EBITDA adjusted on a pro forma basis of approximately $35 million and net income adjusted on a pro forma basis of approximately $22 million.
So, Mr. Stern, how does the ‘foreclosure mill” of the David J. Stern law office net $49 miilion in 2009 when you bid on and obtains”bundles” of foreclosures from Wells Fargo Bank or Deutsche Bank and process’s each foreclosure for a flat fee of $1,400 which covers the cost of an associate attorney, processing, service of complaint, office help etc.? I know for a fact that the cost of processing a Foreclosure Complaint has increased since 12th Judicial Circuit Chief Judge Lee Haworth stopped Attorneys “calling in” on Foreclosure Complaints in 2009 and forced Stern Associates to actually drive from Plantation Fl to Bradenton or Sarasota to appear in person.
“The area’s top judge has lost patience with so-called foreclosure mills so he’s ordering them to appear in court. Non-local law firms that specialize in mass foreclosure filings have ignored local court procedures, filed incomplete or inaccurate court documents and “widely abused” the privilege of appearing at court hearings by telephone, 12th Judicial Circuit Chief Judge Lee Haworth said. He’s cracking down, requiring lawyers in foreclosure cases filed in Manatee, Sarasota and DeSoto counties to attend all foreclosure-related hearings in person”.
Last Sale $ 11.66
Change Net / % 0.27 2.26%
Today’s High / Low $ 11.97 / $ 11.35
Share Volume 157,831
Previous Close $ 11.93
52 Wk High / Low $ 12.66 / $ 6.90
Shares Outstanding 10,634,000
Market Value $ 123,992,440
Annualized Dividend N/A
NASDAQ Official Open Price: $ 11.97
Date of NASDAQ Official Open Price: Mar. 26, 2010
NASDAQ Official Close Price: $ 11.75
Date of NASDAQ Official Close Price: Mar. 26, 2010
The David J. Stern Law Office and one of it’s process serving companies “Provest” have been sued in Conn for falsifing court documents, claiming the initial Complaint was served on the correct owner of the Florida property when in fact it never was, another case of “sewer service“. A “John Grisham Novel” has nothing on the activities of the David J. Stern Law Offices.
SEE.. ATTORNEY FOR DAVID J. STERN LAW OFFICE IN MONTHS LONG FLORIDA BAR INVESTIGATION HAS BEEN FIRED OR RESIGNED, SARASOTA JUDGE AND US ATTORNEY TAMPA SUGGEST LEGAL ACTION AGAINST STERN LAW OFFICE IN BOTCHED FORECLOSURE CASE.
India Infoline News Service, Mar 20, 2010.
DAL Group completes business combination with Chardan 2008 China Acquisition Corp. The principals of FlatWorld Capital in Hyderabad and New York and DAL Group worked over the last two years to develop a long-term strategic plan with management and entered into a letter of intent with DJSP in 2008….DJSP is David J. Stern Processing.
FlatWorld Capital LLC, a Hyderabad and New York based global private equity firm, and its affiliates announced that their affiliated subsidiary, DAL Group, LLC, has completed a business combination with Chardan 2008 China Acquisition Corp. (a British Virgin Islands based Special Purpose Acquisition Company), DJS Processing, LLC, Professional Title and Abstract Company of Florida, LLC and Default Servicing, LLC to become DJSP Enterprises, Inc…… all of these companies are run by the Law Offices of David J. Stern, P.A in Plnatation Fl, see additional information below from the Florida Division of Corporations;
1). PROFESSIONAL TITLE AND ABSTRACT COMPANY OF FLORIDA, LLC
2). DJS PROCESSING LLC
3). DEFAULT SERVICES, INC.
4). DJSP ENTERPRISES, INC.
5). ATTORNEYS’ TITLE AGENCY, P.A.
6). LAW OFFICES OF DAVID J. STERN, P.A.
7). STERN HOLDING COMPANY – PT, INC.
The principals of FlatWorld Capital in Hyderabad and New York and DAL Group worked over the last two years to develop a long-term strategic plan with management and entered into a letter of intent with DJSP in 2008, subsequently contributed the letter of intent to DAL Group, LLC in May 2009 and consummated the transaction on January 15, 2010.
DJSP, is David J. Stern Processing, is the largest provider of processing services for the mortgage and real estate industries in Florida and one of the largest in the United States. The Company provides a wide range of processing services in connection with mortgages, mortgage defaults, title searches and abstracts, REO (bank-owned) properties, loan modifications, title insurance, loss mitigation, bankruptcy, related litigation and other services.
The Company’s principal customer is the Law Offices of David J. Stern, P.A., whose clients include all of the top 10 and 17 of the top 20 mortgage servicers in the United States, many of which have been customers for more than 10 years. The Law Offices of David J. Stern, P.A., Company has approximately 1,000 employees and contractors and is headquartered in Plantation, Florida, with additional operations in Louisville, Kentucky and San Juan, Puerto Rico.
The Law Offices of David J. Stern, P.A., Company’s U.S. operations are supported by a scalable, low-cost back office operation in Manila, the Philippines that provides data entry and document preparation support for the U.S. operation. The Law Offices of David J. Stern, P.A., Company generated revenues of approximately $260 million and adjusted net income of $45 million for the twelve months ended December 31, 2009.
Raj K. Gupta, Partner of FlatWorld Capital LLC, said, “FlatWorld Capital is excited about investing in the mortgage processing and legal process outsourcing industry (Law Offices of David J. Stern, P.A., ) where we have significant expertise. We look forward to working with all stakeholders to bring significant value add to this opportunity. We will continue to apply our team’s SPAC and global offshoring expertise to similar investment opportunities in the future.”