State of Missouri 136 Count Indictment – 68 Class C Felonies for Forgery and 68 Class B Misdemeanors for False Declarations

State of Missouri 136 Count Indictment – 68 Class C Felonies for Forgery and 68 Class B Misdemeanors for False Declarations

By Daniel Edstrom
DTC Systems, Inc.

Thanks to Charles Cox and George Christian for locating this indictment.  Each count lists either a forgery or a misdemeanor.  DOCX LLC is named throughout the indictment.  On April 13, 2011 the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Officer of Comptroller of the Currency, and the Office of Thrift Supervision issued a Cease and Desist Consent Order against Lender Processing Services, Inc., DocX, LLC and LPS Default Solutions, Inc. making the following findings:

WHEREAS, in providing document execution services to Examined Servicers, including services that facilitated completing foreclosures, LPS and its employees allegedly:

(a) Executed numerous affidavits and similar sworn statements (collectively, “Affidavits”) making various assertions, such as the ownership of the mortgage note and mortgage (or deed of trust), the amount of principal and interest due, and the fees and expenses chargeable to the borrower, in which the affiant represented that the assertions in the Affidavit were made based on personal knowledge or based on a review by the affiant of the relevant books and records, when, in many cases, they were not based on such knowledge or review. LPS executed these Affidavits on behalf of Examined Servicers knowing they would be filed in state courts and in connection with bankruptcy proceedings in federal courts;

(b) Executed assignments of mortgages containing inaccurate information pertaining to matters including the identity and location of the assignee and beneficiary and the effective date of the assignment. LPS recorded or caused to be recorded these assignments of mortgages in local land record offices, or executed them on behalf of Examined Servicers knowing they would be filed in state courts or in connection with bankruptcy proceedings in federal courts;

(c) Executed Affidavits, assignments of mortgages, and other mortgage-related documents (collectively, “Mortgage Documents”) on behalf of Examined Servicers without authority to execute the Mortgage Documents, specifically without having been duly appointed as an agent or officer of the Examined Servicers to execute documents on behalf of the Examined Servicers;

(d) Recorded or caused to be recorded in local land records offices numerous Mortgage Documents that were not properly notarized, including those not signed or affirmed in the presence of a notary, or knew that such Mortgage Documents would be filed in state and federal courts;

(e) Failed to respond in a sufficient and timely manner to the increased level of foreclosures by increasing financial, staffing, and managerial resources to ensure that LPS adequately handled the document execution services that LPS provided to Examined Servicers; and

(f) Failed to have adequate internal controls, policies and procedures, compliance, risk management, internal audit, and oversight of the document execution services that LPS provided to Examined Servicers;

WHEREAS, the practices set forth above allegedly constitute unsafe and unsound banking practices;

 

Download the indictment here – Part 1: http://dtc-systems.net/wp-content/uploads/2012/02/Lorraine-Brown-Indictment_Part1.pdf

Download the indictment here – Part 2: http://dtc-systems.net/wp-content/uploads/2012/02/Lorraine-Brown-Indictment_Part2.pdf

Author: dmedstrom

Reverse Engineering and Failure Analysis
– Reverse Engineering Wall Street

One thought on “State of Missouri 136 Count Indictment – 68 Class C Felonies for Forgery and 68 Class B Misdemeanors for False Declarations”

Leave a Reply

Your email address will not be published. Required fields are marked *