Catherine Cortez Masto, Attorney General
555 E. Washington Avenue, Suite 3900
Las Vegas, Nevada 89101
Telephone – (702) 486-3420
Fax – (702) 486-3283
Web – http://ag.state.nv.us

FOR IMMEDIATE RELEASE Contact: Jennifer López
DATE: December 16, 2011 702-486-3782


Carson City, NV – Attorney General Catherine Cortez Masto announced today a lawsuit against Lender Processing Services, Inc., DOCX, LLC, LPS Default Solutions, Inc. and other subsidiaries of LPS (collectively known “LPS”) for engaging in deceptive practices against Nevada consumers.

The lawsuit, filed on December 15, 2011, in the 8th Judicial District of Nevada, follows an extensive investigation into LPS’ default servicing of residential mortgages in Nevada, specifically loans in foreclosure. The lawsuit includes allegations of widespread document execution fraud, deceptive statements made by LPS about efforts to correct document fraud, improper control over foreclosure attorneys and the foreclosure process, misrepresentations about LPS’ fees and services, and evidence of an overall press for speed and volume that prevented the necessary and proper focus on accuracy and integrity in the foreclosure process.

“The robo-signing crisis in Nevada has been fueled by two main problems: chaos and speed,” said Attorney General Masto. “We will protect the integrity of the foreclosure process. This lawsuit is the next, logical step in holding the key players in the foreclosure fraud crisis accountable.”

The lawsuit alleges that LPS:

1) Engaged in a pattern and practice of falsifying, forging and/or fraudulently executing foreclosure related documents, resulting in countless foreclosures that were predicated upon deficient documentation;

2) Required employees to execute and/or notarize up to 4,000 foreclosure related documents every day;

3) Fraudulently notarized documents without ensuring that the notary did so in the presence of the person signing the document;

4) Implemented a widespread scheme to forge signatures on key documents, to ensure that volume and speed quotas were met;

5) Concealed the scope and severity of the document execution fraud by misrepresenting that the problems were limited to clerical errors;

6) Improperly directed and/or controlled the work of foreclosure attorneys by imposing inappropriate and arbitrary deadlines that forced attorneys to churn through foreclosures at a rate that sacrificed accuracy for speed;

7) Improperly obstructed communication between foreclosure attorneys and their clients; and

8. Demanded a kickback/referral fee from foreclosure firms for each case referred to the firm by LPS and allowed this fee to be misrepresented as “attorney’s fees” on invoices passed on to Nevada consumers and/or submitted to Nevada courts.

LPS’ misconduct was confirmed through testimony of former employees, interviews of servicers and other industry players, and extensive review of more than 1 million pages of relevant documents. Former employees and industry players describe LPS as an assembly-line sweatshop, churning out documents and foreclosures as fast as new
requests came in and punishing network attorneys who failed to keep up the pace. LPS is the nation’s largest provider of default mortgage services, processing more than fifty percent of all foreclosures annually.

The Office of the Nevada Attorney General recently indicted Gary Trafford and Gerri Sheppard as part of a separate, criminal investigation into the conduct of robo-signing scheme which resulted in the filing of tens of thousands of fraudulent documents with the Clark County Recorder’s Office between 2005 and 2008.

Nevada homeowners who are in foreclosure or are facing foreclosure are advised to seek assistance as soon as possible. Homeowners can find information for a counseling agency approved by the U.S. Department of Housing and Urban Development (HUD) by calling 800-569-4287 or by visiting http://1.usa.gov/NVCounselingAgencies.

Additional information on foreclosure resources can be found at


Anyone who has information regarding this case should contact the Attorney General’s Office hotline at 702-486-3132 (when promoted select “0”) to obtain information on how to submit a written complain. Nevada consumers can file a complaint with the Nevada Attorney General’s Office about LPS by sending a letter with copies of any supporting documentation to the Nevada Office of the Attorney General, Bureau of Consumer Protection: 555 E. Washington Ave Suite 3900, Las Vegas, Nevada 89101







Press Release

  1. J. Alonzo says:

    Correction below! Pam Bondi is NOT in office to dictate law.

  2. J. Alonzo says:

    Pam Bondi along with Rick Scott don’t care about the fraud done on the Sheeple. This is whats wrong with America. She is in office to dictate law. She is in office to follow the law. She must prosecute all crimes, especially known to her. She really should be investigated properly and prosecuted. She is a terrible hateful person who is committing fraud herself. So go figure. This is the kind of fraud that Democrats and Republicans like Pam! Do everyday and they don’t even try & put a little sugar coat on it. Our elected officials our their to protect the banks.
    If you guys what to see the banks pay, vote for Ron Paul. in 2012 a man if the constitution. He is the only one that does not flip flop. He will fire Beranki and Audit the Fed. Not to mention bring home our troops, for real.

  3. Equity Free says:

    “Moral Hazard” a label / name used by entities and persons who have no morals, and ignore the laws that the moral and law abiding citizens live with in . A misnomer or a oxymoron ? BS for sure .
    There is enough evidence on Bondi for aiding and abetting charges in multiple cases .
    Dismissing 2 lead investigators in LPS and other foreclosure fraud investigations .. Obstructing justice ?.
    She is a real pip .
    I see Bozo but …….

  4. Fury says:

    pam bondi is beyond a moral hazard.
    she’s toxic.
    every floridian should be issued a hazmat suit until she is thrown out of office.

  5. Charles says:

    Pam Bondi believes principal reductions will create a moral hazard. Pam Bondi thinks we are all dead beats. Thats like me saying it is ok to commit a felony once it is justified, without any regard to the intentions. This mess will never be solved, the banks need to settle with all homeowners by way of principal reduction and interest rates. It will be more costly for the banks to try to find the holder in due course or investor than it would be to man up and settle with the “deadbeats”

  6. lizinsarasota says:

    Buddy, buddy, buddy, I would encourage everyone to read this document–it’s only 39 pages low, and well within the grasp of all of us!

    What I want to know is: where the hell is FLORIDA? Where the hell is PAM BONDI?? I don’t care what Nevada says, FLORIDA takes a back seat to NO ONE in this mess….Why aren’t we in the VANGUARD of states nipping at LPS’s heels? (I know, I know, this is all rhetorical, but it chaps my *ss.)

    Plus, LPS’s headquarters are in our fair state–that’s an honor Nevada can’t claim! FLORIDA has a DUTY to prosecute LPS.
    That Pam, she’s a hell of a gal, isn’t she?!!

    Finally, am I the only person on the planet who didn’t see the clown face in the atomic explosion clouds? I hope I’m not the ONLY PERSON who’s just now noticing it…

    KABOOM is right!!

Leave a Reply