DOJ:LORRAINE BROWN GETS PRISON TERM FOR MORTAGAGE FRAUD SCHEME

(The following is a reformatted version of a press release
issued by The U.S. Justice Department and received via
electronic mail. The release was confirmed by the sender.) 
JUNE 25, 2013 
FORMER EXECUTIVE AT FLORIDA-BASED LENDER PROCESSING SERVICES
INC. SENTENCED TO FIVE YEARS IN PRISON FOR ROLE IN
MORTGAGE-RELATED DOCUMENT FRAUD SCHEME 
Over 1 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,
Fla. - was sentenced today to serve five years in prison for her
participation in a six-year scheme to prepare and file more than
1 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, Ga., was sentenced by Senior
U.S. District Judge Henry Lee Adams Jr. in the Middle District
of Florida. 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 Nov. 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’s 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. 
(bjh) NY 
#<873920.660640.3.6.0.9.76>#
 
 
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