Nevada Attorney General Masto Files 606 Count Criminal Indictment Against Two Lender Processing Services Officers


Nevada Attorney General Masto Files 606 Count Criminal Indictment Against Two Title Officers (Updated: Lender Processing Services Employees)

The Nevada attorney general Catherine Cortez Masto has just filed a 606 count indictment against two title officers in a single county, Clark County, for supervising the filing of tens of thousands of fraudulent documents in a robo-signing scheme.

On the one hand, this indictment is not as gratifying, say, as busting Angelo Mozilo. On the other hand, if low level supervisors in bank frauds face the risk of serving time, you are going to find a ton fewer people willing to take that job. Those higher up on the food chain might also have to be a lot more careful and pay the people involved more money, which in turn undermines the basic logic of these abuses, which is cost savings.

In addition, as mob prosecutions have shown again and again, you start by going after the foot soldiers in the hope that they roll people higher up on the food chain.

And at a minimum, this action says that the law and due process matter, and violations, particularly large scale, systematic violations, can and will be punished.

Two sources close to the investigation have told me the targets of the lawsuit are employees of Lender Processing Services. That strongly suggests that Masto is, as we indicated earlier, using these indictments as a wedge to go after much broader abuses in the servicing industry. LPS’s biggest business is its Default Services Group, which both managed the operations of foreclosure mills (people with knowledge of LPS charge that the firm even kicks out certain standard form documents for foreclosure mill attorneys to file) and also often acted as the arms and legs of servicers in other arenas (for instance, managing, or more accurately, mismanaging property seized in foreclosure).

LPS has always taken the position that anything it did was at the direction of and with the full knowledge of the servicers. If Masto is shrewd, her objective will be to audit LPS’s software, since that will demonstrate pattern and practice, and it will be impossible for servicers to deny that processes embodied in ongoing, routinized activities were unknown to them.

Full post here..


2 Responses to “Nevada Attorney General Masto Files 606 Count Criminal Indictment Against Two Lender Processing Services Officers”
  1. marilyn lane says:

    When Frank Malone of Fidelity National Title and his partner in crime David K Fiveson
    of Coronet Title paid a bribe to judge Alice Schlesinger of New York Supreme Court to
    perpertrate title fraud for a Forged deed, I wrote a simple letter to
    William P Foley, CEO of Fidelity National Title , former chairman of LPS DOCX
    “what went wrong that your NY title attorney Frank Malone finds himself fighting
    for a Forged Deed?”

    Fidelity’s answer to me was is proper to fight for a forged deed ,
    just as they now replied to the Nevade Attorney General that all their
    fraudulent and forged documents are proper

    What else could you. expect from a company that masterminded
    the banks, the courts and the land registrys, in order to carry out
    this massive fraud.

  2. Beth A. says:

    ALERT MICHIGAN HOMWOWNERS– LOOKS LIKE MERS APPEAL TO SURPREME COURT OF MI HAS BEEN OVERTURNED…but while it sounds like a loss…believe it is actually a “win” because of postiion taken in connection with securitization. Will be reading thru the news tonight….surely 4closurefraud folks are on top of this one.


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