Howard Burnston has a new gig three months after stepping down as general counsel and vice president of foreclosure processor DJSP Enterprises, a company started by foreclosure attorney David J. Stern.
Burnston, who was at Plantation-based DJSP for just 75 days, is the new senior counsel for Lydian Bank & Trust, a Palm Beach Gardens-based private wealth management bank.
“Having worked closely with Mr. Burnston, where he ran the securities and corporate governance practice group at the Florida law firm Gunster, we are excited about working with him full-time,” said Rory Brown, chairman and CEO of Lydian. The addition “will allow us to accelerate our expansion efforts
The bank was a client of Burnston’s when he was at Gunster. He worked at the West Palm Beach-based law firm for 12 years before joining DJSP last August.
At the time, the publicly held company was one of the country’s largest providers of processing services for the mortgage and real estate industries.
Four days after Burnston started, the Florida attorney general’s office announced it was launching a wide-ranging investigation into Stern’s law firm, as well as two others. The AG’s office reported allegations the firms used false and shoddy paperwork to process thousands of foreclosures and engaged in robo-signing by collecting needed signatures without regard to the content of foreclosure papers.
After that, DJSP and Stern’s law firm began laying off hundreds of lawyers and lost major clients, including Fannie Mae and Citicorp.
Burnston hired Greenberg Traurig to represent the company’s audit committee in an internal investigation of DJSP’s foreclosure processing practices.
But DJSP executives rolled out the door Oct. 19. Stern stepped down as chairman, and Burnston and two other senior executives resigned.
Headquartered in Palm Beach, Lydian has regional offices in Coral Gables, Palm Beach Gardens, North Palm Beach, Naples, Tampa and Sarasota.