This page has been archived and commenting is disabled.

Linda Green | Lender Processing Services’ DOCX, Lorraine O. Brown, Indicted on Criminal Forgery Charges new

4closureFraud's picture




 

February 6, 2012

Attorney General 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 --

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.

“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 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, working in coordination with Boone County Prosecuting Attorney Dan Knight, requested the indictment, and the Attorney General’s Office will prosecute the case.

The indictments are the culmination 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 in fact 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.

### 

Full report from the NY Times here...

Copy of the 136-count Indictment below...

 

www.4closureFraud.org

 

STATE OF MISSOURI v. DOCX, LLC.

 

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 02/07/2012 - 17:24 | 2135462 flattrader
flattrader's picture

>>>why would the bank not know that said borrower could not make the payments and knowing so, why would the bank then make the loan?<<<

Because Macho Man is a shill for the "industry" and he has to blame the prey rather then the predator under the guise of an upstanding mortgage holder/payer who has been hurt by all of this fraud.

Tue, 02/07/2012 - 19:08 | 2136028 MachoMan
MachoMan's picture

I represent all sides of the equation... 

I think the answer you were looking for was consistency and objectivity...  try them...  they're invigorating.

As a taxpayer, I don't want a fucking dime of my money going to donkeys who bit off more than they could chew by way of throwing more good money after bad into their money pit houses.  Call me whatever you want, but I'd appreciate it if you would actually attack the arguments instead of the messenger...

Tue, 02/07/2012 - 22:34 | 2136571 flattrader
flattrader's picture

Still beating up on the borrowers instead of the originators who "originated" this fraud, eh?

All the fuckers had to do was say, "No, you don't qualify."  End of story.

But, they didn't, now did they?

 

Wed, 02/08/2012 - 11:03 | 2137729 MachoMan
MachoMan's picture

I routinely beat up on all sides of the problem...  they're all to blame...  even the greenspan flood to rise all ships...  but, the fact of the matter is that there are millions and millions of people who rolled the bulls on some grapes and are now whining after they got them home...  SOUR SOUR SOUR GRAPES!

There were plenty of people who saw it coming that didn't have insider knowledge...  but yet every single thing we do to remedy the situation mercilessly punishes these prudent people...  this is how society collapses and becomes a land of ninnies...  also known as moral hazard.

Tue, 02/07/2012 - 14:40 | 2134626 chunga
chunga's picture

Simple.

Obtain CDS on all the multiple notes flying around.

Put all you cronies in place at the GSEs and have them act surpised when AIG does the hand-off right to the taxpayers - who continue to argue about "moral contracts" and other non-issues.

Tue, 02/07/2012 - 14:48 | 2134658 MachoMan
MachoMan's picture

Exactly...  you don't even need an express agreement...  if originators are incentivized not to care simply by virtue of the fact they're dumping the loans on someone else, then they'll give them to every tom dick or harry out there... 

Now, those who get these loans then have the pickle of deciding how to sell them, enter nasa scientists who can't even crunch the numbers...  and then if you bundle enough of the junk together...  you end up with highly rated financial instruments!  So, the buyers of the bullshit have now made their due off the bad loans... 

And then, the clincher...  we'll find suckers, knowing these are going to tank, to take the other side of the bet when we bet that they'll all tank...  enter CDS and donkeys like AIG...  the systemically important institutions were chocked full of bullshit bets, taking the wrong side of an inherently rigged transaction...  while the perpetrators hide behind the "they should have known, they're institutional/expert investors" mantra (which they should have), but forgetting in the carnage that their left hands made (at least indirectly) the bad loans while their right hands bet against those loans.

The funny part?  THEY'RE STILL BANKRUPT!  lol....  In the end, it's never about the institutions, it's about the private actors reaping the benefits from the institutions...  the institutions are simply the front line of defense.

Tue, 02/07/2012 - 14:16 | 2134508 LasVegasDave
LasVegasDave's picture

agree 100% on jail time for mortgage brokers who lied, and of course, lifetime sentences for crooked bankers.

But borrowers too dumb to understand?  Sorry, you pays your money, you takes your chances

Tue, 02/07/2012 - 13:44 | 2134390 Widowmaker
Widowmaker's picture

Dave is abso-fucking-lutely right.

It comes down to proof, and everybody knows liars loans didn't need no pesky proof - that would make the fraud bubble stop!

Its fraud top to bottom.   Socialized Crime Inc.

Tue, 02/07/2012 - 13:32 | 2134330 rustymason
rustymason's picture

"but were in fact allegedly signed by someone else."

That's an odd turn of phrase, they "were in fact allegedly signed."

Well, one lender down, how many more? Hundreds? Thousands?

Tue, 02/07/2012 - 13:45 | 2134396 NotApplicable
NotApplicable's picture

DOCX isn't a lender, but a robo-signing paper fabricator.

Tue, 02/07/2012 - 14:03 | 2134470 MachoMan
MachoMan's picture

And also a fabricator that is going to get a free walk from criminal prosecution/fines with the AG settlement...  also known as a return back scratch from TBTF.

Tue, 02/07/2012 - 14:22 | 2134537 NotApplicable
NotApplicable's picture

Funny, other than making a web-page when this scandal broke, Koster has been completely silent on the issue

Tue, 02/07/2012 - 14:47 | 2134651 flattrader
flattrader's picture

Funny, AG Koster has done more than any other AG on thiis particular issue.  The rest of them have done nothing in regards to criminal prosecution.  Nothing...This is at least a step in the right direction.

from the NYT article

>>>According to the indictment, Ms. Brown acted “knowingly in concert with DocX and its employees” to mislead and defraud the Boone County recorder of deeds. The documents central to the indictments were deeds of release, which eliminate a previous claim on an asset. Such releases are typically issued when a mortgage has been paid off.

A lawyer for Ms. Brown said that she intends to enter a not guilty plea and that she had no criminal intent.

Since evidence of pervasive foreclosure improprieties emerged, state officials have mostly brought civil suits against the institutions and law firms that filed the fraudulent documents. Individuals in Nevada, for example, have been charged with notary fraud, but beyond that matter, criminal cases arising from foreclosure practices have been uncommon.<<<

Tue, 02/07/2012 - 15:03 | 2134741 NotApplicable
NotApplicable's picture

Time will tell just what Koster has "done."

Besides, this only deals with fraudclosures, and completely avoids the desctruction of chain-of-title issues affecting ALL property handled by MERS. Without the fraud d.b.a. MERS, there would be no opportunity for DOCX to create the fake paper trail.

Even if every DOCX person goes to jail, there are still millions of notes at risk.

As always, it isn't the original fraud that is gone after, but its cover-up operation. The original fraud meanwhile, continues on with impunity.

Tue, 02/07/2012 - 16:44 | 2135238 flattrader
flattrader's picture

Here is why it is a step in the right direction.

http://livinglies.wordpress.com/2012/02/07/price-of-signature-of-homeown...

Get a clue.

This starts the real rule of law beat down.

>>>...With the current Missouri indictment clarifying that this was no accidental paperwork problem, the realization is dawning on almost everyone that plain old property law is going to be the basis of the solution to the title crisis enveloping this nation. Without solving it, title insurers, banks, servicers, and other parties could be liable or indicted for stealing millions of homes.

The logic is both simple and compelling. The Banks and services employed “outside servicers” to fabricate documents containing false declarations about the chain of title, their authority to execute documents. Those documents “established” that the forecloser “pretender” was the creditor and that the original loan documents were perfectly fine — and now transferred to a stranger to the transaction — something we call a break in the chain of title if it shows up in the title records. 

If the documents consisted of false declarations (and forged too), and that point is accepted as a fact proven in court, there remains no discretion for the Judge but to invalidate the title chain from the time that the break occurred forward. This means title reverts back to the way title appeared in the title chain before the fabrication of documents. That means the homeowner is still the record title owner, entitled to both the title and possession of the property...<<<

Tue, 02/07/2012 - 18:58 | 2135992 NotApplicable
NotApplicable's picture

Get a clue? Now, other than this being the internet, just why do you have to act like an ass?

Do you see anything anywhere in my posts above to warrant such a response?

Look, I'm with you about the appearances of justice. Thing is, thus far, that's all it is.

As I said above, time will tell just where and how "justice" is doled out.

That you'd insult me in defense of criminals running a legal system shows just how misguided your views are.

Lemme guess, you vote, too?

Tue, 02/07/2012 - 22:48 | 2136614 flattrader
flattrader's picture

Here's what amazes me about your reaction--

Finally, after almost 3 years, one state AG steps forward to do a "criminal prosecution" and you expect the entire national fraud to be address overnight.

So, it's not enough for you.  Too bad.  I am surprized that it's happening at all...and perhaps this will lead to other similar criminal prosecutions in other states.

I don't care that the guy is a Democrat.  I don't care if he's up for re-election.

He fucking did something.

Wed, 02/08/2012 - 10:57 | 2137708 MachoMan
MachoMan's picture

He hasn't done dick until he either gets a meaningful conviction or does enough discovery, publicly disclosed, to pave the way for civil suits (so that the little guys don't have to get buried in discovery).

Tue, 02/07/2012 - 17:47 | 2135622 MachoMan
MachoMan's picture

It also means that the real holder of the debt has been identified and determined (the last one to get a good assignment) and that person/entity can now foreclose on said homeowner...

Tue, 02/07/2012 - 18:06 | 2135742 flattrader
flattrader's picture

And the real holder is often not easily identified.

In many cases, some REMIC sliced and diced the loan on one house and spread it out amongst different products.

And the real holder is who exactly???

And exactly how are they gonna foreclose???

That's why we had this robo-signing mess to begin with.

Tue, 02/07/2012 - 19:04 | 2136020 MachoMan
MachoMan's picture

Quit being a fucking donkey and read what you wrote...

If the documents consisted of false declarations (and forged too), and that point is accepted as a fact proven in court, there remains no discretion for the Judge but to invalidate the title chain from the time that the break occurred forward. This means title reverts back to the way title appeared in the title chain before the fabrication of documents. That means the homeowner is still the record title owner, entitled to both the title and possession of the property...<<<

Yes, fucking duh...  we all know the chain of lien assignment (not title, given there is no dispute as to the homeowner/debtor is, although it is a cloud upon title) is fucked beyond belief...  but in the very paragraph you quoted/wrote, it has the presumption that the judge has invalidated the assignments back until the first good one...  this means that the court made a determination as to the chain of assignment and is able to declare the real holder...  so, sure, the homeowner gets the house back only to be foreclosed upon by the real holder...  as it should be...  because the homeowner is in default.

Tue, 02/07/2012 - 22:24 | 2136552 flattrader
flattrader's picture

Stop being a total ass yourself and explain how the real holder (the first "good one") forecloses when the real holder is multiple entities through a REMIC.  Hmmm?

Wed, 02/08/2012 - 10:55 | 2137703 MachoMan
MachoMan's picture

First, you can have more than one plaintiff...

Second, the trust and all the security holders are busted...  that's the whole point...  we can whittle the chain of assignment down to the originator...  who was the party who filed the mortgage anyway.

They should simply have bi-furcated trials...  essentially a declaratory action at first and then move onto the second one of foreclosure with the disinterested parties getting dumped...  it's not that hard, but the prospective plaintiffs can't do shit without triggering a cds/derivative avalanche.

MANY cases to date have been able to make a determination as to the identity of the true holder (yes, even the ones stuffed into the remic shotgun)...  it's a simple court determination... 

something I think a lot of people don't understand is that each state court, of general jurisdiction, can hear an action to quiet title...  this is ALL that is needed to fix the matter...  however, again, the donkey ass banks want nothing to do with the putbacks that would necessarily ensue (toxic sludge and all).

The right thing to do is to punt these back to the originator and first assignee and let them duke it out for who eats the biggest chunk of the turd...  this also necessarily means that the GSEs offload their crap back to the banks proper...  who in turn promptly file for bankruptcy...  and sell the claims to real property to their officers and execs for pennies on the dollar at auction (or the hedge fund equivalent)...  and we all live happily ever after in our glass ceiling.

Tue, 02/07/2012 - 15:19 | 2134840 hidingfromhelis
hidingfromhelis's picture

The phrase, "Full of sound and fury, signifying nothing" does come to mind.

Tue, 02/07/2012 - 14:33 | 2134599 hidingfromhelis
hidingfromhelis's picture

My suspicion is that this will never go anywhere, and it may even be part of an effort to speed up the states' Attorney General "settlement" process.  "See, if we don't settle this right away, it will just open up a bigger mess."  Settling this and sweeping the whole clusterfuck under the rug will be spun as part of our economic recovery.

Tue, 02/07/2012 - 15:05 | 2134755 MachoMan
MachoMan's picture

If an AG is involved in this matter, then I'd first look to see if it's an election year and whether the AG has political aspirations higher than his or her present position...  in the hierarchy of motivations, the issue of it being the right thing to do or what the AG gets paid to do is somewhere between, is my tie straight and man, I sure would like to take advantage of that kardashian girl's daddy issues.

Tue, 02/07/2012 - 15:24 | 2134882 SAT 800
SAT 800's picture

Once again; of course. Agree completely. Public servants are not there to serve anybody but themselves. As Bob Dylan pointed out, "The Cops don't need any help from you, and they expect the same from you".

Tue, 02/07/2012 - 13:19 | 2134297 Money 4 Nothing
Money 4 Nothing's picture

Good! Neext! I hope there is a line out to the parking lot of purp walkers in shackles awaiting their hearings.

Fuk em.

Tue, 02/07/2012 - 13:15 | 2134282 Seasmoke
Seasmoke's picture

hopefully she starts to spill the beans on the real fraudclosure who is who , atleast before she wakes up dead

Tue, 02/07/2012 - 12:41 | 2134144 WALLST8MY8BALL
WALLST8MY8BALL's picture

Bad Bad Lorraine Brown

Forging the Docs all over town

Badder than ole Dave Stern

Cant wait to see her burn!

Tue, 02/07/2012 - 14:45 | 2134640 Chicken_Little
Chicken_Little's picture

My great grandfather is David Hill of Mo. fame, Speaker of the House of Missouri

Tue, 02/07/2012 - 14:39 | 2134623 OutLookingIn
OutLookingIn's picture

"Can't wait to see her burn!" Pffft! Small fry, but its a start.

Its a failure if the litegation/incarceration stops at the base of the pyramid.

Keep it going to the top. Start financially stripping and jailing the fat cats.

I'm sure if the AG's offer a deal to the small fry, they turn over the fat cats.

There is NO HONOR amongst thieves!

Tue, 02/07/2012 - 13:29 | 2134320 sodbuster
sodbuster's picture

Thanks for the chuckle!!!

Tue, 02/07/2012 - 14:03 | 2134466 WALLST8MY8BALL
WALLST8MY8BALL's picture

cheers!

Tue, 02/07/2012 - 15:34 | 2134948 Careless Whisper
Careless Whisper's picture

bad bad lorainne brown hired an attorney, and according to his web site;

He has been voted Missouri's Best Lawyer; 1) to call if you are charged with murder (and has been since they began the awards)

http://www.rsrglaw.com/Attorneys/N-S-Rosenblum.shtml

 

Tue, 02/07/2012 - 16:47 | 2135261 metastar
metastar's picture

The banks who did business with DOCX cannot be allowed to be insulated from prosecution for knowingly participating in this fraud. I want my pound of flesh!

Tue, 02/07/2012 - 19:23 | 2136093 MachoMan
MachoMan's picture

I'm not sure you couldn't make a soveriegn immunity claim given our stance on systemic risk and/or outright ownership by the government of the institutions...  but, the real gusto is in the civil side anyway...  and the neat part about this one is we're not talking about indigents fighting...  we're talking about the big boys who had a shit ton of money on the line wrapped up in toxic securities...  of course, if the fed ends up buying them all and making them whole, the list of aggrieved parties tends to go down (although we're all on the hook for the bullshit).

Do NOT follow this link or you will be banned from the site!