Tuesday, March 30, 2010
NASDAQ listing DJSP is the Foreclosure Mill Law office of David J. Stern Plantation Fl.
DJSP Enterprises, Inc. “DJSP” (David J. Stern Processing)…their 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.
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 how does the ‘foreclosure mill” of the David J. Stern law office net $49 miilion in 2009 when they bid on and obtain “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 Feb. 2009 and forced Stern Associates to actually drive from Plantation Fl to Bradenton or Sarasota to appear in person.
UPDATE…..Wednesday, August 11, 2010 Florida A/G Offices Investigating “Foreclosure Mill” Law Firms To Determine If They Created Affiliated Companies Outside The U.S. Where False Documents Are Prepared And Used by The Law Firms.
Chardan 2008 China Acquisition Enters Into Business Combination With DAL Group, David J. Stern Law office, DJSP Enterprises, Inc – Update gone public on the NASDAQ.
Chardan 2008 China Acquisition was run by Kerry S. Propper he has had some problems with the SBA and the Department of Justice as did his father Dr. Richard D. Propper. Kerry S, Proper, Richard D. Propper and Royale Holdings own 1,151,128 shares of Chardan 2008 China Acquisition, they are the majority share holders of the company now directly linked to David J. Stern and DJSP Enterprises, Inc.
CHARDAN 2008 CHINA ACQUISITION CORP.
Shareholders Number of Ordinary Shares and Warrants
Kerry Propper 302,907
Steve Urbach 136,713
Jonas Grossman 81,296
George Kaufman 27,708
Todd Gold 5,542
Jiangnan Huang 261,427
Royale Holdings 661,693
Dr. Richard D. Propper 186,528
Paula Beharry 130,713
Daniel Beharry 130,713
Li Zhang 130,713
Li Gong 25,000
Dr. Jianjun Shi 25,000
Xiaosong Zhong 25,000
Carman Ramirez 20,000
Edward Carter 5,000
Ida Carter 5,000
Foreclosure Mill in Plantation Fl run by David J. Stern Law office (DJSP Enterprises, Inc)., just recently went Public on the NASDAQ, David J. Stern has 1/3 ownership of the stock with Kerry S. Propper 1/3 and “Royale Holdings 1/3.
4/1/2010 11:03:31 AM Market Open
NASDAQ Last Sale
11.83 0.21 1.81%
|52 Wk High
|52 Wk Low
|NASDAQ Official Price|
Apr 01, 2010
Mar 31, 2010
|1y Target Est
1). Kerry S. Propper was the subject of 2003 Federal law suit filed in Conn. by the Small Business Administration one of his co-defendants was Acorn Ct Investments LP, they all ended up paying the SBA $1,764,333 in total see link http://www.paed.uscourts.gov/documents/opinions/04D0487P.pdf
2). Kerry S. Propper was/is under Dept of Justice investigation with his father Richard Propper. One of their partners was convicted of defrauding the SBA and sent to Federal prison for 70 months. SBA seeks to recover $96 million from Richard Propper and the rest of the crew in yet another SBA lawsuit, see info below……
DEPARTMENT OF JUSTICE;
FRIDAY, DECEMBER 29, 2006, U.S. Files Suit Against John Torkelsen, Richard Propper, Daniel Beharry, & Sovereign Bank Alleging Fraud of $32 Million Against the Small Business Administration
WASHINGTON – The Justice Department announced today that it has filed a lawsuit accusing John Torkelsen, Richard Propper, Daniel Beharry, and Sovereign Bank of defrauding the Small Business Administration’s Small Business Investment Company (SBIC) program of $32 million. The suit was filed in the Eastern District of Pennsylvania under the False Claims Act, which allows the United States to recover up to three times the amount of its losses plus civil penalties.
The government’s complaint alleges that Torkelsen, Propper and Beharry violated the conflict of interest and management fee rules of the SBIC program by engaging in multiple secret transactions that funneled government money into companies controlled by Propper and Beharry or Torkelsen and his family. The SBIC program has rules designed to prevent the unauthorized investment of government funds in companies controlled by those who act as managers of the SBICs. The alleged fraud is believed to be the largest perpetrated upon the program to date.
The SBIC program, administered by the U.S. Small Business Administration, was created in 1958 to fill the gap between the availability of venture capital and the needs of small businesses in start-up and growth situations. The government, itself, does not make direct investments or target specific industries. Rather, the SBIC program is a “fund of funds” – meaning that portfolio management and investment decisions are left to qualified private fund managers. Small businesses which qualify for assistance from the program are able to receive equity capital, long-term loans and expert management assistance.
The investigation of the fraud allegations against the defendants was conducted by the U.S. Attorney’s office in Philadelphia, Pa.; the U.S. Small Business Administration’s Office of Inspector General and Office of General Counsel; the Federal Bureau of Investigation; and the Justice Department’s Civil Division. The United States has settled with, or reached settlement in principle with, a number of other individuals or entities involved in the alleged fraud.
Published January 12, 2007 Kerry S. Propper is an executive at both SPACs.
Richard Propper father), a physician and venture capitalist who had started an array of businesses, including Medibuy.com, a Website for marketing medical supplies. Propper subsequently launched two more bulletin-board-traded SPACs — Chardan North China Acquisition (CNCA) and Chardan South China Acquisition (CSCA). He serves as chairman of the former and chief financial officer of the latter.
Propper is head of Chardan Capital, a San Diego-based venture capital firm. His son Kerry S. Propper, who is an executive at both SPACs, heads the similarly named Chardan Capital Markets, a New York-based broker-dealer and investment bank.
The elder Propper has an eventful investment history. In the early ’90s, he resigned as the managing general partner at Montgomery Medical Ventures, a venture-capital firm controlled by Montgomery Securities, amid reports that he inadvertently disclosed to a family member inside information about a Montgomery-related transaction (SEC investigation). He now says only that the incident “had nothing to do with anything.”
In 1996, meanwhile, he settled with the Securities and Exchange Commission over allegations that, as a general partner of two Montgomery funds, he failed to disclose holdings and transactions in several public companies. He says it was simply a matter of bookkeeping issues.
If this history has cast a shadow over Origin’s shares, an early recovery is hardly likely in view of new litigation. On Dec. 29, the Justice Department filed a civil suit in federal court for the Eastern District of Pennsylvania against Propper, his partner Daniel Beharry, their former partner John Torkelsen and Sovereign Bancorp, alleging they’d defrauded the Small Business Administration of $32 million.
That suit is running parallel to a civil action filed by the SBA in early 2005. In that action, the government alleges the same plaintiffs (Kerry S. Propper) funneled SBA money through Acorn Technology Fund, a small-business investment company, to their own companies. Among other things, it contends that Propper loaned money to Acorn to finance Medibuy, that Acorn repaid him with SBA money, and that Propper-related partnerships received more than $800,000 from Acorn. In June, Torkelsen began serving a 70-month prison sentence after pleading guilty to making false statements to the SBA.
A Justice Department spokesman says the government aims to recover up to $96 million from the defendants in its suit. In interviews last week, Propper and Beharry called the allegations in the suits “baseless.” Sovereign says none of its current employees are involved.
Propper puts the whole blame on Torkelsen: “It was his doing completely. He’s in jail. The SBA didn’t oversee him as well as they could have, and they’re just angry at the fact that money was lost.” Torkelsen’s attorney didn’t return calls for comment.
As for Origin, Propper still does shareholder-relations work for the company. In an answer to e-mailed questions from Barron’s, Origin’s chief financial officer, Jeff Wang, declined to comment on the stock-price decline or the litigation, other than to state that Origin isn’t named.
Wang noted that Origin’s revenues in the six months ended June 30 were $65 million and net income was $13 million, sharply higher than five years earlier, and that proprietary products now account for 10% and a growing portion of sales. And, he says, Origin remains focused on acquisitions. Read more: Blind-Pool Danger at SmartMoney.com http://www.smartmoney.com/investing/economy/blind-pool-danger-20640/#ixzz0jfavgysX
By its Order of January 17, 2003, this (Federal) court placed Acorn Technology Fund, L.P. (“ATF”) in Receivership and appointed the United States Small Business Administration (“SBA”) as Receiver.
Pursuant to powers granted under the Receivership Order, the SBA undertook the task of marshaling the assets of ATF and conducting all business affairs of ATF. This included making written demand upon certain limited partners of ATF for arrearages on investor agreements.
On October 29, 2003, after the Defendants (Kerry S. Propper et al) failed to meet their contractual obligations, the SBA, in its capacity as Receiver for ATF, brought separate actions against eight individual defendants and one corporate entity alleging breach of contract. The court consolidated all the cases on January 27, 2004. In response to the SBA’s demands, all defendants filed answers, affirmative defenses and counterclaims against both ATF and the SBA.
The Defendants allege claims for fraud in the inducement against ATF and negligence against the SBA. After being courted as potential investors by John Torkelsen, president and manager of Acorn Technology Partners, L.L.C. (“ATP”), the general partner of ATF, the Defendants entered into investment agreements (“Subscription Agreements”) for a partnership interest in ATF. In the Subscription Agreement, each defendant contracted to purchase a limited partnership interest in ATF and to make certain capital contributions to the partnership.
For the foregoing reasons, the SBA’s Motions to Dismiss Defendants’ Counterclaims are Granted and the Defendants are ordered to pay the SBA as listed below; ATF is a New Jersey limited partnership pursuant to the Certificate of Limited Partnership filed with the Secretary of State of New Jersey on September 29, 1997.
The total amount demanded by the SBA from Defendants is $1,764,333. The following are the individual arrearage amounts per defendant(s):
• Acorn Connecticut Investments, L.P. and Daniel Beharry: $670,000
• Kenneth Borow: $25,000
• MichAel Chermak: $100,000
• Timothy Garton: $26,000
• William Lerach: $750,000
• Kerry Propper: $25,000
• Richard Propper: $128,333
• Charles Smith: $40,000
David J. Stern with DJSP Enterprises, Inc., recently went Public on the NASDAQ, David J. Stern has 1/3 ownership of the stock with Kerry S. Propper 1/3 and “Royale Holdings 1/3.
DJSP Enterprises, Inc Ownership, Number of Ordinary Shares, Percentage of Ownership
David J. Stern (2) -0- -0- 4,151,666 OR 33.15%
Kumar Gursahaney -0- -0- -0- -0-
Juan V. Ruiz -0- -0- -0- -0-
Matthew S. Kayton -0- -0- -0- -0-
Mark P. Harmon -0- -0- -0- -0-
Nicholas H. Adler -0- -0- -0- -0-
Jerry Hutter -0- -0- -0- -0-
All Directors and Officers as a Group -0- -0- -0- -0-
Kerry Propper (3) 680,875 6.17% 4,151,666 OR 33.15%
Royale Holdings(4) 661,693 6.21% 4,151,666 OR 33.15%
US Small Business Admin v. Propper, et al
Plaintiff: US Small Business Admin
Defendants: Richard D. Propper (father), Acorn Ct Investments LP, Kerry S. Propper (son), P. Timothy Garton, Michael D. Chermak, Charles R. Smith and Kenneth M. Borow
Case Number: 3:2009mc00204
Filed: June 22, 2009
Court: Connecticut District Court
Office: New Haven Office [ Court Info ]
Presiding Judge: Judge Robert N. Chatigny
Nature of Suit: Other – None
Cause: Registration of Foreign Judgment
Jurisdiction: Federal Question
Jury Demanded By: None
Access additional case information on PACER
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