Vilified foreclosure attorney Steven Baum, and his Buffalo-based firm, Steven J. Baum P.C., have reached a settlement with the office of New York Attorney General Eric Schneiderman, the New York Law Journal reported.
Baum, his managing partner Brian Kumiega, the Baum firm and affiliated company Pillar Processing will pay $4 million and have agreed not to handle foreclosure cases for lenders and servicers for two years.
Between 2007 and 2010, Baum’s firm filed 100,000 foreclosure proceedings, and represented some of the largest mortage servicers, the publication said. The AG’s office, which began investigating the firm in April 2011, alleges that the firm acted “without taking appropriate steps to verify the accuracy of” allegations, and sped up improper foreclosures to maximize profit.
Baum’s firm came under fire after pictures from a Halloween party at their office surfaced showing employees mocking foreclosure victims.
A statement from the firm expressed relief at the settlement. “As the firm finalizes the process of closing, it is relieved to bring this matter to a conclusion,” the firm’s attorney Elkan Abramowitz said in the statement. [New York Law Journal]