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DOCX | The first case in which a senior officer of a mortgage document company was charged with crimes relating to mortgage document preparation.

DOCX | The first case in which a senior officer of a mortgage document company was charged with crimes relating to mortgage document preparation.


Action Date: February 7, 2012
Location: Boone Country, MO

DocX, LLC, a mortgage document company and a subsidiary of Lender Processing Services (“LPS”) in Jacksonville, Florida, was indicted on February 6, 2012, by a grand jury in Boone County, Missouri. Lorraine O’Reilly Brown, a former Senior Vice President of Lender Processing Services, and the founder of DocX, was also indicted. This was the first case in which a senior officer of a mortgage document company was charged with crimes relating to mortgage document preparation.

Brown and DocX were each charged with 68 counts of forgery, a class C felony in Missouri and 67 counts of False Declaration, a Class B misdemeanor.

The felony charges can each carry a term of imprisonment not to exceed seven years and a fine not to exceed $5,000 or double the gain from the crime up to $20,000. The misdemeanor charges each carry a term not to exceed six months, and a fine of $500 or double the gain up to $20,000.

The case will be prosecuted by Missouri Attorney General Chris Koster. “Today’s indictment reflects our firm conviction that when you sign your name to a legal document, it matters,” Koster said. “Mass-producing fraudulent signatures on millions of real estate documents across America constitutes forgery. When you file those documents in our state, you are committing a crime under Missouri law.

The indictment focuses on Deeds of Release, documents issued by banks and mortgage companies when a homeowner/borrower successfully pays off their loan. In some states, these are also called Satisfaction of Mortgages. The documents examined by the grand jury and identified in the indictments were signed by many different people signing the name Linda Green. This practice was first exposed in a segment of 60 Minutes that aired in 2011.

Other employees of a subsidiary of Lender Processing Services were indicted in 2011 in Nevada by Attorney General Catherine Cortez Masto. These employees notarized mortgage documents that had been signed by LPS employees using false names and false job titles.

LPS has steadfastly defended these practices and even coined a term, calling the forgeries “surrogate signing.” Regarding the use of false job titles, LPS has defended this practice by saying such titles were authorized by corporate resolutions from many different banks and mortgage companies.

But while publicly defending these practices, lawyers working for LPS have been filing thousands of “corrective” mortgage assignments in county records throughout the country. In tens of thousands of cases, employees signed the name Linda Green to mortgage documents and identified Green as an officer of Mortgage Electronic Registration Systems (“MERS”) though the real Linda Green did not qualify to serve as a MERS certifying officer because she was not an officer of her actual employer.

Conferring of officer titles to non-employees via corporate resolutions was one of the many practices challenged in a civil lawsuit brought by Illinois Attorney General Lisa Madigan against another mortgage document mill, Nationwide Title Clearing, on February 2, 2012.

Employees in the DocX office signed names to mortgage documents 4,000 times a day for several years. They most often signed false names and false officer titles to mortgage satisfactions and mortgage assignments. The assignments were very often used in foreclosure cases to prove that residential mortgage-backed trusts owned the mortgages and had the right to foreclose even though the trusts had never obtained the necessary documents during the securitization process.

These practices will be a significant part of the examination to be conducted by the mortgage securitization fraud task force, announced by President Obama during the State of the Union address. The taskforce will be co-chaired by New York Attorney General Eric Schneiderman who filed a lawsuit against MERS and three major banks on February 3, 2012. The New York lawsuit was similar to the lawsuits filed by Delaware Attorney General Beau Biden on October 27, 2011 and by Massachusetts Attorney General Martha Coakley in December, 2011.

According to the lawsuit filed by Attorney General Biden, “MERS engaged and continues to engage in a range of deceptive trade practices that sow confusion among consumers, investors, and other stakeholders in the mortgage finance system, damage the integrity of Delaware’s land records, and lead to unlawful foreclosure practices.”

The DocX mortgage documents permeate the records of almost every county recorder in the country. From July 1, 2008 through December 31, 2009, 1,742 DocX mortgage assignments were filed in Palm Beach County, transferring mortgages valued at $560,239,797. Deutsche Bank National Trust Company and American Home Mortgage Servicing were two of the most frequent users of the DocX documents, but over 30 banks and mortgage companies were clients of DocX.

 

FRAUD DIGEST by Lynn E. Szymoniak, ESQ.

Image: X-Files

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MO Attorney General Chris Koster announces 136-count criminal indictments related to robo-signing in mortgage industry

MO Attorney General Chris Koster announces 136-count criminal indictments related to robo-signing in mortgage industry


–Boone County grand jury indicts Georgia corporation and its president for practices highlighted in 60 Minutes report –

NOTE: The following items are linked below:

New York Times story from this morning: http://www.nytimes.com/2012/02/07/business/docx-faces-foreclosure-fraud-charges-in-missouri.html?_r=1&ref=business

60 Minutes news story from August 7, 2011: http://www.cbsnews.com/video/watch/?id=7375936n&tag=mncol;lst;1

Jefferson City, Mo. – Attorney General Chris Koster today announced that a Boone County grand jury has handed down 136-count indictments against DOCX, LLC and its founder and former president, Lorraine Brown, for forgery and making a false declaration related to mortgage documents processed by DOCX.

“The grand jury indictment alleges that mass-produced fraudulent signatures on notarized real estate documents constitutes forgery,” Koster said. “Today’s indictment reflects our firm conviction that when you sign your name to a legal document, it matters,” Koster said.

The forgery and false declaration counts each allege that the person whose name appears on 68 notarized deeds of release on behalf of the lender is not the person who actually signed the paperwork. The documents were then submitted to the Boone County Recorder of Deeds as though they were genuine.

Koster’s office requested the indictment, and the Attorney General’s Office will prosecute the case.

The indictments are the result of months of investigation by the Attorney General’s Office into the robo-signing scandal that injected thousands of questionable mortgage documents into the market. When the practice began to come to light, several major lenders temporarily suspended foreclosures in 2010. DOCX’s role in the robo-signing process came to national attention when 60 Minutes reported that Linda Green, an employee of DOCX, purportedly signed thousands of mortgage-related documents on behalf of several different banks and in multiple handwritings. The 68 documents on which the indictments are based were purportedly signed by Linda Green, but were allegedly signed by someone else.

Forgery is a Class C felony and False Declaration is a Class B misdemeanor. If convicted on the most serious count, Brown could face up to seven years in prison for each count. DOCX could be fined up to $10,000 for each forgery conviction and $2,000 for each false declaration conviction.

The charges against DOCX and Lorraine Brown are merely accusations and, as in all criminal cases, the defendant is innocent until or unless proved guilty in a court of law.

The Attorney General’s investigation into this practice continues.

source: http://ago.mo.gov

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© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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INDICTMENT | State of Missouri vs DOCX, LLC a Georgia corporation

INDICTMENT | State of Missouri vs DOCX, LLC a Georgia corporation


IN THE CIRCUIT COURT OF BOONE COUNTY, MISSOURI

STATE OF MISSOURI
Plaintiff,

v.

DOCX, LLC,
a Georgia corporation
Registered Agent:
CT Corporation System
1201 Peachtree Street, NE
Atlanta, Georgia 30361
Defendant.

 

[ipaper docId=80741262 access_key=key-872qqc60801aaclngf4 height=600 width=600 /]

© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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DOCX Faces Foreclosure Fraud Forgery Charges in Mo. Foreclosures

DOCX Faces Foreclosure Fraud Forgery Charges in Mo. Foreclosures


Some tid-bits for you all from DOCX’s website in 1998:

DOCX was established in March of 1993 by its president, Lorraine O. Brown. It’s a privately held Colorado Limited Liability Company. DOCX set up headquarters in Springfield, Ohio. In October 1994, DOCX merged forces with Ontrak Services. Ontrak was a pioneer in the development of outsourcing services for assignment and satisfaction processing. With the acquisition of Ontrak, DOCX expanded its operations to Frederick Maryland. DOCX has recently established a marketing/sales office in Atlanta, Georgia. DOCX operations continue to run in both the Springfield, Ohio and Frederick, Maryland locations.

[…]

DOCX developed two software products; DOCX RID™ (Recorders Information Database) which keeps track of County Recorder fees, and the requirements for recording assignment and satisfaction documents, UCC’s, and to obtain certified true copies of recorded documents. DOCX’s latest software development, DOCX in a BOX™, takes the DOCX RID program significantly further by providing the software to produce the completed and legally-sufficient documents required to process


NYT-

One of the largest companies that provided home foreclosure services to lenders across the nation, DocX, has been indicted on forgery charges by a Missouri grand jury — one of the few criminal actions to follow reports of widespread improprieties against homeowners.

A grand jury in Boone County, Mo., handed up an indictment Friday accusing DocX of 136 counts of forgery in the preparation of documents used to evict financially strained borrowers from their homes. Lorraine O. Brown, the company’s founder and former president, was indicted on the same charges.

Employees of DocX, a unit of Lender Processing Services of Jacksonville, Fla., executed and notarized millions of mortgage documents for big banks and loan servicers over the years. Lender Processing closed the company in April 2010, after evidence emerged of apparent forgeries in these documents, a practice now called robo-signing.

[NEW YORK TIMES]

[ipaper docId=80741262 access_key=key-872qqc60801aaclngf4 height=600 width=600 /]

 

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