Steven J.Baum Gets Bitch Slapped By NY Judge

Judge Makes Baum Drive 350 Miles To Humiliate Him Over Shoddy Work

Kaja Whitehouse, NY Post

Take that, Steven Baum!

Steven Baum gets bitchslapped

NY Judge Scolds Baum Over Sloppy Work

The 50-year-old lawyer, who owns New York’s largest home-foreclosure mill, made a rare appearance in a courtroom yesterday — and was promptly ripped by a Bankruptcy Court judge frustrated by his firm’s sloppy work.

Baum, whose eponymous firm has filed more than 25,000 foreclosure actions across the state over the past three years — many of which have been attacked for containing bogus documents — was lectured by Judge Cecilia Morris to correct his way of practicing law.

“How many times do I have to tell you, you didn’t do it right,” Morris said during the afternoon hearing. “Do you not understand ‘do it right’?” she asked Baum.

Morris had ordered Baum to appear in her courtroom personally after a steady stream of his firm’s lawyers mucked up several of the 180 foreclosure cases he has before the New York federal courts.

The judge accused Baum of “slowing down the court” by failing to properly transfer his cases to other lawyers as he prepared to shutter his Buffalo-area firm.

Baum settled a probe by the Manhattan US Attorney last year and then was forced to close down his 90-lawyer practice when Fannie Mae and Freddie Mac refused to have anything to do with the firm.

The New York attorney general is said to be probing Baum as well.

“Please don’t make me angry,” Morris warned.

The hearing in the Poughkeepsie courtroom was attended by several bankruptcy lawyers who have sparred with Baum in the past, who said afterwards that they were there just to see Baum sweat.

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Process Servicer For Baum’s Law Firm Failed To Save Records

Sloppy service has legal consequences

Jessica Dye, Reuters

Steven J. Baum

A process servicer for Steven J. Baum's law firm failed to save copies it served a home owner

A process server working for a once-prolific foreclosure law firm in upstate New York broke the law by failing to keep any record of papers served in a 2008 foreclosure case, a Long Island judge has ruled, giving defense attorneys a new angle to explore in foreclosure cases as they seek to buy time for their financially beleaguered clients to modify or refinance their mortgages.

Gary Cardi, a former police officer contracted by A&J Process Service — which has offices on the same floor in the same building as the foreclosure firm Steven J. Baum PC — admitted in Nassau County court last October that he didn’t have any record of serving foreclosure papers on Soledad Murillo in 2008. In fact, he told state Supreme Court Justice F. Dana Winslow during an October hearing, he hasn’t kept records of any of the “thousands” of cases he served over the last six years.

An attorney for the Baum firm, Victor Spinelli, representing foreclosing bank U.S. Bank NA, told Winslow that he thought the failure to keep tabs on service wasn’t a reason to overturn a foreclosure judgment against Murillo under New York law.

But Winslow disagreed. Not only was Cardi required to keep some record of his attempts to serve Murillo, Winslow ruled, but his failure to do so violated New York General Business Law Article 8, which defines and outlines the duties for process servers — including, Winslow said, the need to keep “legible” records of service.

“The duty to keep comprehensive records may have been unnoticed, or underestimated, by litigants and the courts,” Winslow wrote in a ruling dated Dec. 22. “Past practice, however, cannot be the motivating force for future conduct and determinations.

“The need, particularly in this economic environment and under these telling circumstances, for valid and reliable proof of service, mandates the rejection of ‘trust me,’ and the adoption of ‘show me,’” Winslow wrote.

‘THIS WILL BECOME THE TOOL’

Steven Baum, the founder of Baum PC, announced last November that he was closing his firm, shortly after government-backed mortgage giants Fannie Mae and Freddie Mac barred loan servicers from referring new cases to his firm in the wake of federal and state investigations into the firm’s alleged foreclosure abuses.

In a statement, Baum told Reuters that his firm used A&J in addition to other vendors to serve foreclosure papers.

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NY court says late foreclosure filing not grounds for dismissal

Jessica Dye, Reuters

scandal plagued Steven Baum

 

 

 

 

 

 

A Brooklyn judge should not have tossed a foreclosure case just because the foreclosing bank’s counsel–from the scandal-plagued Steven J. Baum P.C. law firm–missed a deadline for filing paperwork rebutting its alleged conflict of interest, a New York appeals court has ruled.

The unanimous, unsigned order from the Appellate Division, Second Department, restores the foreclosure action brought against Kelvy Guichardo by the trustee for his mortgage US Bank NA. The case had been dismissed sua sponte by Kings County Justice Arthur Schack in a Nov. 8, 2010 ruling.

Schack, who has developed a reputation for taking a tough stance against mistakes and missed deadlines in foreclosure cases, raised concerns several months after the case was filed about a potential conflict of interest for Baum attorneys involved in the case. According to the court record, the Baum firm was representing both US Bank, the plaintiff, and defendant Mortgage Electronic Registation Systems Inc., which had been assigned the mortgage at the center of the foreclosure action.

Judge Arthur Schack

Judge Arthur Schack

 

 

 

 

 

 

 

In a February 2, 2009, order, Schack directed the firm to submit an affirmation that it was not simultaneously representing both the plaintiff and MERS in the case. Schack’s order gave the Baum firm 60 days to comply with the request.

It took roughly six months for the Baum firm to submit the required affirmation, according to the ruling. Citing the missed deadline, Schack ordered that the entire case be dismissed and the notice of pendency filed against the property in question be cancelled.

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590 face layoff as Baum woes spread to Pillar

Matt Glynn, Buffalo News

Pillar Processing, a back-office and document-processing firm with close ties to the Steven J. Baum PC foreclosure law firm, will lay off 590 full- and part-time employees at its offices in Amherst.

The company told state and local officials that the layoffs are expected to take effect Feb. 27. Pillar is also laying off about 20 employees in Westbury, on Long Island.

“This is extremely difficult news because it impacts so many people, especially in Western New York,” Michael Hubsch, Pillar’s director of human resources, said in a statement. “These are hard-working, dedicated people as well as loyal employees, and they performed their work with great integrity.” Hubsch could not be reached to comment further.

The majority of the layoffs — 435 — involve processors. A total of 117 paralegals, team leaders, supervisors and legal secretaries will also be affected, according to a document filed along with a notice of the layoffs.

“It is not anticipated the entire offices will be closed, and it is likely that certain employees will be retained for an indefinite period following [Feb. 27],” said a letter submitted by Hubsch to state and local officials.

A letter sent to employees referred to Pillar’s plan to “permanently close that part of its New York operations which serviced a New York law firm.”

Questions about the fate of jobs at Pillar arose after Steven J. Baum PC gave notice last week that it would lay off 90 employees, including 67 in Amherst, effective Feb. 20.

Baum founded Pillar several years ago to handle the law firm’s work. Pillar was sold to private-equity firms, but it still shares resources and space with Baum at 220 Northpointe Parkway in Amherst.

Steven J. Baum PC announced its 90 layoffs after Fannie Mae, Freddie Mac and major lenders pulled their business from the firm in the wake of photos that emerged from a Halloween party last year in which debtors were mocked as homeless.

In April, State Attorney General Eric T. Schneiderman issued subpoenas to Steven J. Baum PC and Pillar Processing as part of an investigation into Baum’s foreclosure practices.

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