By James Fink
jfink@bizjournals.com | 716-541-1611

The embattled law firm of Steven J. Baum P.C. is closing, the after-effect of losing business from mortgage industry giants Freddie Mac and Fannie Mae.

It's the latest in a series of events that overwhelmed the Amherst-based law firm in recent months and ends speculation about its future.

Baum filed a Worker Adjustment and Retraining Notification with several government agencies, saying it plans to close its doors. The firm has 67 full- and part-time employees at its Northpointe Parkway offices, plus 22 full- and part-timers at an office on Long Island.

"We will fulfill all of our obligations under WARN and during this process we will also fulfill our remaining work on behalf of our clients," Baum said in a release. "Disrupting the livelihoods of so many dedicated and hardworking people is extremely painful, but the loss of so much business left us no choice but to file these notices."

The firm was heavily involved in real estate foreclosure transactions.

It has been under fire from federal agencies as well as the public - including members of Occupy Buffalo - for its alleged business practices.

Last month, it settled a federal claim related to allegedly mishandling mortgage filings on behalf of clients. The firm agreed to pay $2 million in fines and promised to change its business practices.

The firm was working under a cloud of suspicion concerning allegedly misleading pleadings and affidavits, some of which led to people having their homes foreclosed under circumstances deemed unfair.

The New York Times, meanwhile, ran a photo of Baum employees mocking homeless people during a company-sponsored Halloween party.

The photo attracted national attention.

The largest blow came Nov. 10, however, when Freddie Mac and Fannie Mae cut off all business with the firm.