PLANTATION, Fla. (AP) - A Florida law firm involved in a state investigation into questionable foreclosure practices is laying off hundreds of employees.
David J. Stern told employees in an e-mail Thursday that the firm's staff is being slashed by 70 percent. The e-mail was provided to The Associated Press by Stern's attorney.
Lenders including Fannie Mae and Freddie Mac have stopped doing business with Stern's firm amid the investigation by Florida Attorney General Bill McCollum. Stern's e-mail says business has dropped 90 percent.
The investigation into Stern's firm and three others focuses on whether false or improper affidavits were filed in thousands of foreclosures. Some employees say they were "robosigners" who signed documents without reading them.