Firm that threw foreclosure costume party closing
BUFFALO, N.Y. — An embattled New York foreclosure law firm that was criticized for a Halloween party that mocked the homeless and was recently shunned by Fannie Mae and Freddie Mac will close.
A statement issued Monday originally said Steven J. Baum P.C. filed notice of mass layoffs with state labor officials but did not mention closing.
Firm spokesman Earl Wells confirms it will shut down completely. In a statement, Baum says the firm will fulfill its remaining work.
The firm employs 89 people in suburban Buffalo and on Long Island.
After pictures surfaced of employees dressed like homeless people for Halloween in 2010, Fannie Mae and Freddie Mac stopped referrals.
Last month, the firm agreed to pay $2 million amid federal scrutiny, and its practices are being investigated by the New York attorney general.