BUFFALO, New York — A foreclosure law firm that was criticized for a Halloween party that mocked the homeless and people in danger of losing their homes says it will lay off at least one-third of its employees.
A spokesman says Steven J. Baum P.C. has filed notice of layoffs with state labor officials. He didn't say how many would lose jobs but says the firm employs 89 people in New York State.
Last month, the firm agreed to pay $2 million amid federal scrutiny. Its practices are being investigated by the New York attorney general.
After pictures surfaced of employees dressed like homeless people for Halloween in 2010, Fannie Mae and Freddie Mac stopped referrals. The firm's also being looked at by a U.S. House committee.