David Saks: Dirty Former Executive at LPS Inc Gets 5 yrs - Over Million Forgeries

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Dirty Former Executive at LPS Inc Gets 5 yrs - Over Million Forgeries

 
(FBI and Department of Justice Press Releases are not copy and pasted and published for points. Please read the legal disclaimer to the right.) 

Former Executive at Florida-Based Lender Processing Services Inc. Sentenced to Five Years in Prison for Role in Mortgage-Related Document Fraud Scheme
More Than One Million Documents Prepared and Filed with Forged and False Signatures, Fraudulent Notarizations

WASHINGTON—A former executive of Lender Processing Services Inc. (LPS)—a publicly traded company based in Jacksonville, Florida—was sentenced today to serve five years in prison for her participation in a six-year scheme to prepare and file more than one million fraudulently signed and notarized mortgage-related documents with property recorders’ offices throughout the United States, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Middle District of Florida Robert E. O’Neill, and Special Agent in Charge Michelle S. Klimt of the FBI Jacksonville Division.

Lorraine Brown, 56, of Alpharetta, Georgia, was sentenced by Senior U.S. District Judge Henry Lee Adams, Jr. in the Middle District of Florida.

Lorraine Brown

In addition to her prison term, Brown was sentenced to serve two years of supervised release and ordered to pay a fine of $15,000. On November 20, 2012, Brown pleaded guilty to conspiracy to commit mail and wire fraud.

Lorraine Brown will spend five years in prison for her central role in a scheme to fraudulently execute thousands of mortgage-related documents while our nation’s housing market was at its most vulnerable point in generations,” said Acting Assistant Attorney General Raman. “The documents that were fraudulently produced under Brown’s direction were relied upon in court proceedings, including a significant number of foreclosure and bankruptcy matters. Today’s sentencing represents appropriate punishment for someone who sought to capitalize on the nation’s housing crisis.”

Floridians were hard hit by the downturn in the real estate market,” said U.S. Attorney O’Neill. “We will continue to pursue individuals like Brown who took advantage of consumers for personal gain and contributed to the financial crisis. Prosecuting financial crimes remains a priority for our office.”

The investigation of sophisticated mortgage and corporate fraud schemes continues to be a priority for the Federal Bureau of Investigation as such criminal activities have a significant economic impact on our community,” said Special Agent in Charge Klimt.

Brown was an executive at LPS and the chief executive of DocX LLC, which was a wholly owned subsidiary of LPS, until it was closed down in early 2010. DocX’s main clients were residential mortgage servicers, which typically undertake certain actions for the owners of mortgage-backed promissory notes.

Servicers hired DocX to, among other things, assist in creating and executing mortgage-related documents filed with recorders’ offices.

According to Brown’s plea agreement, employees of DocX, at the direction of Brown and others, began forging and falsifying signatures of authorized personnel on the mortgage-related documents that they had been hired to prepare and file with property recorders’ offices.

Only specific personnel at DocX were authorized by clients to sign the documents, but the documents were fraudulently notarized as if actually executed by authorized DocX employees.

According to plea documents, Brown implemented these signing practices at DocX to enable DocX and Brown to generate greater profit.

Specifically, DocX was able to create, execute, and file larger volumes of documents using these signing and notarization practices.

To further increase profits, DocX also hired temporary workers to act as authorized signers.

These temporary employees worked for much lower costs and without the quality control represented by Brown to DocX’s clients.

Some of these temporary workers were able to sign thousands of mortgage-related instruments a day.

Between 2003 and 2009, DocX generated approximately $60 million in gross revenue.

After these documents were falsely signed and fraudulently notarized, Brown authorized DocX employees to file and record them with local county property records offices across the country.

Many of these documents were later relied upon in court proceedings, including property foreclosures and federal bankruptcy actions.

Brown admitted she understood that property recorders, courts, title insurers, and homeowners relied upon the documents as genuine.

This case is being prosecuted by Trial Attorney Ryan Rohlfsen and Assistant Chief Glenn S. Leon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark B. Devereaux of the U.S. Attorney’s Office for the Middle District of Florida. This case was investigated by the FBI, with assistance from the state of Florida’s Department of Financial Services.

This case is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov .

source: FBI

http://www.fbi.gov/jacksonville/press-releases/2013/former-executive-at-florida-based-lender-processing-services-inc.-sentenced-to-five-years-in-prison-for-role-in-mortgage-related-document-fraud-scheme?utm_campaign=email-Immediate&utm_medium=email&utm_source=fbi-in-the-news&utm_content=236220




David Saks



Time&Temp Memphis

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Comment balloon 18 commentsDavid Saks • June 25 2013 06:34PM

Comments

Yet, I recently was asked by a world wide lender rep to forge a document for my buyer.  They never learn.

Posted by Dee Toohey, Broker, ABR, AHWD, CIPS, FMS, ePro (Innovative Realty Solutions Group) over 6 years ago

Sometimes they learn, Dee, in this business, after they've been manufacturing license plates for a living for three or four years or more. Lot's of dirty swindlers in the real estate business. If you need some proof here it is.                                                    Click the little red button.Real Estate Crimes

Posted by David Saks ((retired)) over 6 years ago
David, this was just the 'Tip of the Iceberg'. There are so many more that need to make license plates for us, and unfortunately, the top dogs will probably get off with a slap on the hand.
Posted by Sandy Padula and Norm Padula, JD, GRI, Presence, Persistence & Perseverance (HomeSmart Realty West & Geneva Financial, Llc.) over 6 years ago

It is, Norman. Subordinates usually take the fall in Watergate-fashion.

Posted by David Saks ((retired)) over 6 years ago

David your a real crusader when it comes to exposing mortgage fraud. Hopefully we will all learn from these tragedies.

Posted by Julie A. Black, CLHMS, CRS, GRI, Realtor, Broker (KAUAI DREAMS REALTY Kauai Real Property Specialist) over 6 years ago

Somehow it doesn't seem like she's getting a tough enough sentence.  But what she did can never be made right.

Posted by Joetta Fort, Independent Broker, Homes Denver to Boulder (The DiGiorgio Group) over 6 years ago

Thanks for sharing this judgment of someone who too advantage of consumers for personal gain... hopefully others will learn a lesson so it never happens again. 

Posted by Ralph Gorgoglione, Hawaii and California Real Estate (310) 497-9407 (Maui Life Homes / Metro Life Homes) over 6 years ago

David...

Perhaps that is why there are so many lass REO properties today ... it takes a lot longer to do it legally.

Posted by Richard Weisser, Richard Weisser Retired Real Estate Professional (Richard Weisser Realty) over 6 years ago

Thanks, Julie. I got sick and tired of the lies in the business and felt like at the very least that the integrity-minded in the profession and the consumer end of things need to know what's really going on. You won't see this stuff in Realtor Magazine. Hmmmm...I wonder why ?

Real Estate Crimes

Posted by David Saks ((retired)) over 6 years ago

True, Joetta.

Posted by David Saks ((retired)) over 6 years ago

I hope someone learns, Ralph. The fraud in this business seems to become more sophisticated and egregious with each new device employed to deter it and any new legislation designed to combat it.

Posted by David Saks ((retired)) over 6 years ago

Probably so, Richard.

Posted by David Saks ((retired)) over 6 years ago

And I am suppose to be happy about this news. Sleepy America, where are all the top ranking criminals in the deal or has the government been paid off. This insults my intelligence.

Posted by Jimmy Faulkner, The Best Of St. Augustine (Florida. Homes Realty & Mortgage) over 6 years ago

As insults the integrity-minded among us, Jimmy. Thanks for your note.

Posted by David Saks ((retired)) over 6 years ago

More scum that belongs in the cross bar hotel David. If these criminals put as much effort into legitimate business as they did crime they would be a success. Instead they make us look bad. 3 hot's and a cot baby!

 

Posted by Noah Seidenberg, Chicagoland and Suburbs (800) 858-7917 (Coldwell Banker) over 6 years ago

If I could say what I feel about this slimy criminal, Noah, you'd have to spray your computer monitor with fly killer and call a pest exterminator to clean your hard drive instead of the geek squad at Best Buy.

Hundreds of thousands of titles were fraudulently transferred from the owners of the homes on those documents.

Since that crooks' company can't convey what they didn't own, the resale of fraudulently acquired homes should be voided and the owners compensated for their loss.

This is one of the dirtiest, nastiest, most evil real estate crimes I've ever seen in my years of real estate crime reporting.

 

Posted by David Saks ((retired)) over 6 years ago

While the message you convey is a good one & I agree with the sentiment...it might not be the wisest course to do a straight copy & paste of content provided by the FBI!

Posted by Kent Simpson, Real Estate Is About People (Realty One Group Mountain Desert) over 6 years ago

FYI, Kent:

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

http://www.justice.gov/legalpolicies.htm

Here are some additional real estate fraud cases for your review:

Real Estate Crimes

 

Posted by David Saks ((retired)) over 6 years ago

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