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Ex-DocX Head Gets at Least 40 Months in Robo-Sign Case

May 3 (Bloomberg) -- Lorraine Brown, former president of the mortgage document processor DocX LLC, was sentenced to at least 40 months in prison on a racketeering charge in a robo-signing case, Michigan Attorney General Bill Schuette said.

The Alpharetta, Georgia, resident was sentenced yesterday by Judge Mark Trusock in Grand Rapids, Michigan, and sent to the state corrections department to start her sentence, the attorney general said today in a statement.

Brown’s term could be as long as 20 years, Schuette said. His spokeswoman, Joy Yearout, said today in a phone interview that the duration depends on her conduct while incarcerated.

Brown “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 possible,” Schuette said.

The company she founded was later acquired by Jacksonville, Florida-based Lender Processing Services Inc. The company agreed to pay $2 million to resolve charges against its unit in August.

In November, Brown pleaded guilty to a single count of conspiracy to commit mail and wire fraud before a federal judge in Jacksonville and faces a maximum punishment of five years imprisonment.

She has not yet been sentenced there, according to the court’s electronic docket. Brown was also criminally charged in Missouri.

Jacksonville Attorney

Brown’s lawyer, Mark Rosenblum of Jacksonville, didn’t immediately respond to a telephone message seeking comment on his client’s Michigan punishment and status with regard to the other cases.

More than 1,000 such documents were filed with county registers of deeds in Michigan, Schuette said. He filed racketeering charges against Brown in November. Brown pleaded guilty in February.

The Florida case is U.S. v. Brown, 12-cr-00198, U.S. District Court, Middle District of Florida (Jacksonville). The Missouri cases are State v. DocX LLC, 12BA-CROO433, and State v. Brown, 12BA-CR00430, Boone County, Missouri, Circuit Court (Columbia).

To contact the reporter on this story: Andrew Harris in the Chicago federal courthouse at aharris16@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.

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