(The following is a reformatted version of a press release
issued by the Office of Michigan Attorney General Bill Schuette
and received via electronic mail. The release was confirmed by
the sender.) 
February 11, 2013 
Schuette Announces Guilty Plea for Former Mortgage Processor
President Responsible for Fraudulent Robo-Signing Scandal 
Copy of press release: 
Schuette Announces Guilty Plea for Former Mortgage Processor
President Responsible for Fraudulent Robo-Signing Scandal
Former DocX President Lorraine Brown Pleads Guilty to
Racketeering After Orchestrating Forged “Linda Green” Signatures
on Thousands of Mortgage Documents Filed in Michigan 
LANSING - Michigan Attorney General Bill Schuette today
announced Lorraine Brown, former president of mortgage document
processor DocX, pleaded guilty to racketeering for her alleged
role in authorizing the fraudulent signing of mortgage documents
filed in Michigan.  Brown pleaded guilty today to one count of
Conducting Criminal Enterprises (Racketeering), a 20-year
felony, before Kent County Circuit Court Judge Mark Trusock.
She will return for sentencing on May 2, 1:30 PM.  The guilty
plea follows an Attorney General investigation into questionable
mortgage documentation filed with Michigan’s Register of Deeds
offices during the foreclosure crisis. 
“Shortcuts like robo-signing are just one part of the mortgage
foreclosure crisis,” said Schuette.  “The message here is clear
- if you break the law, there are consequences.  We will
continue to prosecute criminals who target and exploit Michigan
In April 2011, Schuette launched an investigation after county
officials across the state reported that they suspected
Assignment of Mortgage documents filed in their offices may have
been forged.  A “60 Minutes” news broadcast had shown that the
name “Linda Green” was signed to thousands of mortgage-related
documents nationwide, but with many different variations in
handwriting.  County officials in Michigan reviewed their files
and found similar documents, thus raising questions about the
authenticity of the documents filed.
As part of his investigation, Schuette reviewed documents filed
in Michigan and prepared by DocX, a document processing company
located in Georgia.  DocX processed mortgage assignments and
lien releases for residential lenders and servicers nationwide.
Schuette’s investigation revealed that former DocX president
Lorraine Brown, 51, of Alpharetta, Georgia, allegedly
established and orchestrated a widespread scheme of “robo-signing,” a practice in which employees were directed to
fraudulently sign another authorized person’s name on mortgage
documents in order to execute these documents as quickly as
Internally, DocX identified this practice as “facsimile signing”
or “surrogate signing.”  Schuette alleges that from 2006 through
2009, these improperly executed documents were created and
recorded at Brown’s direction.  Schuette’s investigation
revealed that more than 1,000 unauthorized and improperly
executed documents were filed with county registers of deeds
throughout Michigan. 
In addition to the criminal charge brought against Brown,
Schuette announced on January 31, 2013 that he had reached a
$2.5 million civil settlement with Lender Processing Services,
Inc., the parent company of the now defunct DocX.  The
settlement funds will go to the State of Michigan, and the
legislature will decide how they will be spent.  Affected
consumers will have their documents corrected by LPS. 
Earlier this year, Schuette joined 48 other state attorneys
general in entering into a settlement with the five leading bank
mortgage servicers. The settlement addresses allegations of
faulty foreclosure processes and poor servicing of mortgages
that harmed Michigan homeowners. The settlement also requires
comprehensive reforms of mortgage loan servicing to improve
customer service for Michigan borrowers.  More information on
the 2012 Mortgage Settlement is available on the Attorney
General’s Website at www.michigan.gov/mortgagesettlement. 
Michigan Department of Attorney General
Office of Communications
(bjh) NY 
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