Let me repeat, the court found and declared his business to be a scam. The court rejected and did not admit into public record his explanation.
The court rejected it because his statements were false. He told a shitload of people he'd had great success saving houses. In court, he pulls the "Oh, yeah, well once business picked up we got overwhelmed" and then couldn't actually name a single client he helped.
The court is allowed to reject evidence that can be demonstrated to be fraudulent. Bruce "defaulted" because perjury in an actual trial would have gotten him thrown in prison and there was nothing truthful he could say in his defense.
His "defense", he already posted it on the forum. His claim was he got "overwhelmed." The court rightfully rejected that argument. It was covered in one of the financial news articles back then, someone posted the link to the archive in one of the threads.