advertisement

UPDATE: DocX indicted for manufacture of fraudulent mortgage documents

Tuesday, February 7, 2012 | 8:57 p.m. CST; updated 8:30 a.m. CST, Wednesday, February 8, 2012

COLUMBIA — A Boone County grand jury has indicted Georgia company DocX LLC and its founder, Lorraine Brown, on 136 counts of forgery and making false declarations related to mortgage documents.

The criminal charges filed against a company for these fraudulent practices are the first to be filed in the country, according to the Missouri attorney general's office.  

MoreStory


Related Media

Related Articles

The indictment alleges DocX generated fraudulent signatures on 68 notarized deeds of release for properties in Boone County and submitted those to the Recorder of Deeds.

The practice of generating these forged documents, known as "robo-signing," was reported by "60 Minutes" on Aug. 7, 2011. Robo-signees are persons posing as bank personnel or other authorized lenders who sign falsified mortgage documents, which are then used to authorize foreclosures on properties in default.

Banks that were required to produce these documents during foreclosure proceedings did not have them and outsourced responsibility for gathering them to a string of subsidiary companies. DocX, a subsidiary of Lender Processing Services Inc., is alleged to have created these mortgage documents fraudulently, which were then used to foreclose on properties in Boone County.

The Missourian obtained copies of 10 of the allegedly fraudulent mortgage documents from the office of the Boone County Recorder of Deeds. None of the lessees named in the documents could be reached for comment, and several of the phone lines listed for them had been disconnected.

Boone County Recorder Bettie Johnson would not comment on how the documents named in the indictment were determined to be fraudulent or if they raised suspicion at the recorder's office.

All the documents reviewed by the Missourian, however, were signed by a "Linda Green," who was identified as a fraudulent signer by "60 Minutes" and who is listed within the documents as vice president of both Bank of America, N.A. and Mortgage Electronic Registration Systems Inc.

Missouri Attorney General Chris Koster, who sought the indictments against DocX, said that the "indictment reflects our firm conviction that when you sign your name to a legal document, it matters."

Missouri is involved in a proposed settlement with more than 40 other states against major lenders over fraudulent lending practices. The settlement may yield $25 billion from companies including Bank of America Corp., Wells Fargo & Co., JPMorgan Chase & Co., Citigroup Inc. and Ally Financial Inc., according to The Associated Press.

As of Tuesday night, Koster's office had not returned the Missourian's calls for further comment.

Although DocX no longer exists, according to the report by "60 Minutes," it could face fines in Missouri of up to $10,000 per forgery conviction and $2,000 for each false declaration conviction. Brown, the company's founder, could also be sentenced to as many as seven years imprisonment for each indictment.


Like what you see here? Become a member.


Show Me the Errors (What's this?)

Report corrections or additions here. Leave comments below here.

You must be logged in to participate in the Show Me the Errors contest.


Comments

Richard Saunders February 8, 2012 | 5:44 p.m.

While I applaud this action, it may just be another white-wash job. Why? Because the real crimes occurred long before the DOCX cover-up began. Thanks to creation of MERS, there are hardly ANY clear titles remaining within the State of Missouri. Almost every mortgage note issued in the last ten years has a broken deed of trust, as MERS was designed solely to circumvent state property laws (by not filing note transfers).

The crimes of DOCX were designed to cover-up the crimes of MERS, as these crimes are so heinous as to be beyond belief. So heinous that AG Koster has never even mentioned them publicly that I've seen (instead focusing on the cover-up).

What has MERS done that is so horrible as to be unmentionable? Well, they've broken the chain-of-title, and with it, split apart every mortgage note and its corresponding deed of trust. Now, what does this mean?

Well, from a homeowner's perspective, it means that there is no entity with a legal standing to demand foreclosure. The loan in reality is now just another unsecured debt. This is where DOCX comes into play, as they fabricated paperwork in an effort to recreate the chain, falsifying data and forging Linda Green's signature ("she" even "signed" the release of the deed on Obama's Chicago house).

Of course, it doesn't take a genius to realize that the powers that be are not going to allow everyone to have a free house, which is why they've been talking of a settlement with the banking industry in an effort to sweep the whole thing under the rug.

Now, I really haven't gotten that far into the crimes of MERS in this space. But there are plenty more, from fraudulently packaging the mortgages into securities purchased by investors (like say, your retirement fund), to multiple "lenders" foreclosing on the same property (even ones without a default, or even a mortgage!).

So, like I said above, I'm all for this action. But more importantly, it's time for AG Koster to do his job and protect property owners from the predatory database (can't call it a company, as it has NO employees) called MERS. If the people using MERS had acted in a legal manner, then DOCX would've never existed, as there would be no reason to have to manufacture documents simply to foreclose on a defaulted note.

But MERS has no other methods than fraud, as it is wholly fraud itself.

If someone at the Missourian would interview Mr. Koster about this, I'd greatly appreciate it, as I've heard nothing relevant from him on the subject.

(Report Comment)
Richard Saunders February 9, 2012 | 10:22 a.m.

Never mind. They swept the whole thing under a $26B rug, in a de facto legalization of fraud.

The Wall St. banksters (and their DC agents) win again. This time, they stole Main St., lock, stock and barrel. By the time my children grow old, there will not be a single private-property owner left that is not in hock to the government (sans the 1%ers).

This is nothing short of the final step of impoverishing America.

(Report Comment)

Leave a comment

Speak up and join the conversation! Make sure to follow the guidelines outlined below and register with our site. You must be logged in to comment. (Our full comment policy is here.)

  • Don't use obscene, profane or vulgar language.
  • Don't use language that makes personal attacks on fellow commenters or discriminates based on race, religion, gender or ethnicity.
  • Use your real first and last name when registering on the website. It will be published with every comment. (Read why we ask for that here.)
  • Don’t solicit or promote businesses.

We are not able to monitor every comment that comes through. If you see something objectionable, please click the "Report comment" link.

You must be logged in to comment.

Forget your password?

Don't have an account? Register here.

advertisements