Ex-President of DocX Pleads Guilty to Racketeering

Ex-President of DocX Pleads Guilty to Racketeering

02/12/2013 BY: TORY BARRINGER

Months after filing a felony charge against Lorraine Brown, Michigan attorney general Bill Schuette announced the former DocX president has pleaded guilty to racketeering for her alleged role in the company’s fraudulent signing practices.

According to a release from Schuette’s office, Brown pleaded guilty to one count of conducting criminal enterprises—a 20-year felony—before Kent County Circuit Court Judge Mark Trusock. She will return for sentencing on May 2.

“Shortcuts like robo-signing are just one part of the mortgage foreclosure crisis,” Schuette said. “The message here is clear—if you break the law, there are consequences. We will continue to prosecute criminals who target and exploit Michigan homeowners.”

The plea brings to a close an investigation into questionable mortgage documentation filed with Michigan’s Register of Deeds offices during the foreclosure crisis. Schuette opened the investigation in April 2011 after a news broadcast revealed that the name “Linda Green” was signed to thousands of mortgage-related documents nationwide, but with many different variations in handwriting. County officials across Michigan reviewed their files and found similar documents.

As part of the investigation, Schuette’s office reviewed documents filed in the state and prepared by DocX, a now-defunct processing company that processed assignments and lien releases for lenders and servicers nationwide. The investigation revealed that Brown allegedly established and orchestrated a widespread scheme of fraudulent document signing in order to speed up processing. Schuette alleges this practice continued under Brown’s supervision from 2006 through 2009.

In addition to the criminal charge brought against Brown, Schuette announced January a $2.5 million civil settlement with Lender Processing Services, Inc. (LPS), DocX’s parent company. The settlement funds will go to the state, and affected customers will have their documents corrected by LPS.

 

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