Stephen J. Baum, the New York-based foreclosure mill law firm which drew attention last year after photos cropped up from a Halloween party featuring its employees dressed as homeless people, reached a settlement with the New York Attorney General Eric Schneiderman over the filing of unverified, unsubstantiated and outright fabricated documents with state courts. Under the settlement, Steven J. Baum will pay a $4 million fine and its top two attorneys, Baum and Brian Kumiega, may not handle foreclosure cases for lenders or servicers in New York state courts for two years. This is on top of a $2 million fine Baum paid to the US Attorney for the Southern District of New York last October. Baum will share the fine with Pillar Processing, the document processor it used on the vast majority of cases.
Once again, Baum will not have to admit or deny wrongdoing in the case, and while this is the largest fine of a foreclosure mill law firm in the history of this foreclosure fraud saga, that’s not saying much.