OFFICE OF THE ATTORNEY GENERAL
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
NEVADA ATTORNEY GENERAL SUES LENDER PROCESSING
SERVICES FOR CONSUMER FRAUD
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
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4closureFraud.org
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State of Nevada vs Lender Processing Services, Fidelity National, DOCX
I used to work for this company, not Nevada location. It was the most horrific place in my life! I have never experienced such lieing, deception, corruption in my life in this place. It was like working at a sweat shop! So glad to have left!
K…please tell us more…we would all love to hear details….bloomberg news reported yesterday there could be as many as 150 thousand jobs lost in the financial sector by 2013….hope they tell their stories like Nomi..Prins and Max Keiser did……What these criminals do needs to be fully exposed…!
Catherine Cortez Masto is kicking fraudclosure butt!
she is helping millions of defrauded homeowners, not only in her state but in all states.
her legal filings against the people committing the fraud are brilliant.
i wish that all other AGs
would do the same so we can shut down the Con Game once and for all.
for instance, why can’t blondie with the adorable big dog do the same?
she makes a mockery of the law in florida instead of upholding it as the state’s top cop.
It’s called money and being PAID off
MD Highest Court: Deutsche can enforce a securitized mortgage, but only because homeowners conceded so:
http://bryllaw.blogspot.com/2011/12/md-highest-court-deutsche-can-enforce.html
Enforcement of defectively securitized mortgages is still to be considered by Maryland, Virginia, and other states’ highest courts.
They may have ruled that way, but it does not make it LAWFUL. They, like many courts in this country are corrupt and not following LAWS. It is like robbing 1,000 banks and not getting caught, or being detained as a possible suspect, but not charged by the police for whatever reason. Does that make it lawful that you didn’t go to jail, or were just detained, NO, it just means you were not arrested and convicted. It is still against statutes, codes of law, etc in all states to rob even one bank.
That decision is garbage. I wish I where a lawyer because I would crush the Maryland SJC into oblivion on appeal. The court pretty much admitted the bank submitted fraudulent evidence but let the home owner “agree” to be defrauded via one artful sentence. The courts purpose is substantial justice not in preserving legal fictions that are impossible.
Whoop there it is!
Nice post of the complaint. LPS done , toast, cooked , finished
God I hope this goes all the way up the chain to Jamie Dimon and Ken Lewis.
Why DOJ ain’t prosecuting a RICO beef is beyond me.
These days, the DOJ is part of the problem not part of the solution they are supposed to be
WOW, you mean there ARE ethical Attorneys General in this country?!?!?! Living in Flori-dah with BLondi made me not know there are some that do a good job and take their jobs seriously. Hey BLondi, what are all those “extra investigators” doing that are working these CRIMINAL COMPLAINTS since you fired June & Theresa???
Makes me feel good about living in Nevada ,,,,,,,,,,,,,,,,,,,,,,,,,,,,once again!
AG Masto is a fierce warrior.
she is taking down vicious hoodlums who have wrecked our finances and lives.
Catherine, Cortez is sdanding out as an American citizen like some others will wish they had, fraud is still Mafia type fraud, especially when the public suspects a fiduciarry relationship and enters with their guard down and get screwed in stead. Punitive damages should be sufficient to effect the Bank owner as a billionaire and needs to be enough for him to feel id property removal or rights restricted, (See Blacks Law)