The U.S. Department of Justice has just obtained the first successful criminal conviction against a top executive in the robo-signing scandal – and everyone wants to pass the buck.
Miami foreclosure lawyers know that many entities – including the parent company of this firm – had no problems reaping the exorbitant benefits of the fraud while it was ongoing. But now that DocX founder and executive Lorraine Brown has pleaded guilty to federal charges and is facing prison, everyone associated with the firm is moving 10 giant steps back – and the DOJ is letting them do it without consequence. In fact, federal prosecutors have gone so far as to say that the banks and other mortgage servicers were also victims of Brown’s crimes. They had no clue, apparently, that more than a million complex mortgage documents produced by her company at lightning speed for hoards of cash were anything less than 100 percent legitimate.
According to court documents, Brown and others working with her directed employees to falsify signatures and forge other documents between 2003 and 2009. These same documents were later used to foreclose and then evict homeowners who could no longer afford their inflated mortgages. Meanwhile, DocX raked in an estimated $60 million.
In the midst of all this, in the late summer of 2005, DocX was acquired by a company called Lender Processing Services, better known as LPS. This is public company with shareholders whose annual revenue is somewhere in the neighborhood of $2 billion. In fact, by LPS’s own self description, its clients include most of the 50 largest banks in the country, which all rely on the firm’s “high-quality technology solutions and robust data and analytics to support their success.”
But somehow, with all that sophistication and technology, LPS claims it had no knowledge whatsoever of the rampant fraudulent practices of its subsidiary. We’re talking about millions of documents, forged over a period of six years. In all that time, with all those records and with all the amazing technology LPS had at its fingertips – and it had NO CLUE what was happening?
It’s simply not believable.
It’s also not plausible that the many banks and mortgage servicers who were involved didn’t know about this either. And yet, the Department of Justice
LPS was recently ordered to pay the State of Missouri $1.5 million for the damage the scandal had done there, as well as another $500,000 for the state’s resources to investigate DocX.
But this is not enough to even begin to cover the damage that DocX and those who worked closely with DocX caused to homeowners in Missouri, let alone in other states like Florida.
Given the DOJ’s clear efforts to release these other firms of liability, though, it doesn’t appear we should hold our breath waiting for accountability.
Consider this: Even for Brown’s crimes, she is expected to serve two years in a minimum security prison after paying a $250,000 fine. After she and her company made $60 million.
Street criminals who commit fairly petty crimes for a lot less money end up doing more time than her.
If you’re battling foreclosure in Miami or the surrounding areas contact Jacobs Keeley for a confidential appointment to discuss your rights. Call (305) 358-7991. Also, don’t miss Miami Foreclosure Attorney Bruce Jacobs on 880AM/the Biz, every Wednesday from 5 p.m. to 6 p.m. on “Mortgage Wars,” discussing foreclosure topics that matter to YOU.
What Can DocX’s Brown Do for LPS, Besides Forge a Million Documents, Nov. 26, 2012, Max Gardner, Mandelman Matters
More Blog Entries:
Foreclosure Watch: “Worst” Robo-Signing Company Exec Pleads Guilty, Nov. 21, 2012, Miami Foreclosure Lawyer Blog