The Department of Justice has confirmed that the Founder of DocX, a common foreclosure trustee in California, which later changed its name to LPS, has pleaded GUILTY in US District Court for the Middle District of Florida to CONSPIRACY to COMMIT MAIL and WIRE FRAUD.  In the “Factual Basis” document attached to her Plea Agreement, Lorraine Brown, the founder of DocX, LLC, admits that the documents produced by these companies from the period 2003-2009 were forgeries.  A copy of the plea agreement can be found here: http://static1.firedoglake.com/37/files/2012/11/Plea-Agreement.pdf

Brown’s confession may be used to defend against a foreclosure, especially in judicial states.  Any bank offering a DocX or LPS document as evidence after the guilty plea knows or should know that they are
committing a fraud on the court and on the homeowner.  In judicial states, a bank would be unable in many instances to prove an essential factual element of its case, that the mortgage and/or note was transferred to the foreclosing entity, and the matter would be ripe for a Summary Judgment motion by the defendant homeowner.

 

According to the confession:

“Beginning in or about 2003 and continuing through November 2009, employees of DocX at the direction of Brown and others, began forging and falsifying signatures on mortgage-related documents that they had been hired to prepare and file with property recorder’s offices throughout the United States. Unbeknownst to clients, the Authorized Signers were instructed or authorized by Brown to allow other DocX employees, who were not authorized signers, to sign and notarize the mortgage-related documents as if the [sic] actually by the Authorized Signer.”

“After these documents were falsely signed and fraudulently notarized, Brown authorized DocX employees to send them through the mails or by electronic means for recording with local county property records offices across the nation. Many of these documents – particularly mortgage assignments, lost note affidavits, and lost assignment affidavits – were later relied upon in court proceedings, including property foreclosures and federal bankruptcy actions. Brown understood that these property recorders, courts, title insurers and homeowners, relied upon the documents as genuine.”

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