Racketeering, a 20-Year Felony | Michigan AG Files Criminal Charges Against Former DOCX (LPS) President Lorraine Brown for Role in Fraudulent Robo-Signing

Schuette Files Criminal Charges Against Former Mortgage Processor President for Role in Fraudulent Robo-Signing

LANSING – Michigan Attorney General Bill Schuette today announced he charged Lorraine Brown, former president of mortgage document processor DocX, with racketeering for her alleged role in authorizing the fraudulent signing of mortgage documents filed in Michigan.  The felony charge comes as the result of an ongoing Attorney General investigation into questionable mortgage documentation filed with Michigan’s Register of Deeds offices during the foreclosure crisis. 

 “Shortcuts like robo-signing are just one piece of the mortgage foreclosure crisis,” said Schuette.  “Our investigation remains ongoing, and we will bring to justice every lawbreaker we find.”

In April 2011, Schuette launched an investigation after county officials across the state reported that they suspected Assignment of Mortgage documents filed in their offices may have been forged.  A “60 Minutes” news broadcast had shown that the name “Linda Green” was signed to thousands of mortgage-related documents nationwide, but with many different variations in handwriting.  County officials in Michigan reviewed their files and found similar documents, thus raising questions about the authenticity of the documents filed.

As part of his investigation, Schuette reviewed documents filed in Michigan and prepared by DocX, a document processing company located in Georgia.  DocX processed mortgage assignments and lien releases for residential lenders and servicers nationwide.  Schuette’s investigation revealed that former DocX president Lorraine Brown, 51, of Alpharetta, Georgia, allegedly established and orchestrated a widespread scheme of “robo-signing,” a practice in which employees were directed to fraudulently sign another authorized person’s name on mortgage documents in order to execute these documents as quickly as possible.

Internally, DocX identified this practice as “facsimile signing” or “surrogate signing.”  Schuette alleges that from 2006 through 2009, these improperly executed documents were created and recorded at Brown’s direction.  Schuette’s investigation revealed that more than 1,000 unauthorized and improperly executed documents were filed with county registers of deeds throughout Michigan. 

Lorraine Brown has been charged with one count of Conducting Criminal Enterprises (Racketeering), a 20-year felony, in Kent County’s 61st District Court.  Arrangements are being made for Brown to surrender to Michigan authorities, and arraignment will be scheduled at a later date.

In 2010, DocX suspended operations, halting its work as a mortgage document processor.  Schuette noted that while the criminal charges against Brown address her role in the scheme, his office’s overall investigation into robo-signing remains ongoing and is not yet complete.

A criminal charge is merely an accusation, and the defendants are presumed innocent unless proven guilty.


Mortgage Settlement Brings Relief to Michigan Families

Earlier this year, Schuette joined 48 other state attorneys general in entering into a settlement with the five leading bank mortgage servicers. The settlement addresses allegations of faulty foreclosure processes and poor servicing of mortgages that harmed Michigan homeowners. The settlement also requires comprehensive reforms of mortgage loan servicing to improve customer service for Michigan borrowers.

On August 1, 2012, Governor Rick Snyder signed legislation to create the Homeowner Protection Fund.  The fund will be used to help avoid preventable foreclosures, alleviate the effects of the foreclosure crisis, support law enforcement activities to prevent or prosecute financial fraud or deceptive practices, and to compensate the state for costs resulting from unlawful conduct of the defendants in the lawsuit.

Current borrowers serviced by the banks may be eligible for loan modifications and other refinancing options.  Residents who went through foreclosure with the participating banks from 2008-2011 may be eligible for cash payments.  Within the last two months, more than 116,000 postcards and claim forms were mailed to Michigan borrowers who are eligible to file claims for cash payments, which are scheduled to be mailed in the first quarter of 2013.  

“Although we can never completely undo the damage caused by the foreclosure crisis, through this settlement, many Michigan families will finally begin to see some relief,” said Schuette.


The Homeowner Protection Fund will be used for the following eight initiatives:

  • Foreclosure Rescue Scam Victim Restitution – $7.5 million. Many Michigan residents have fallen prey to foreclosure rescue scam artists who offered to help citizens save their homes. This fund will provide restitution payments for victims of foreclosure scams. Eligibility criteria to determine qualifying cases are currently being developed by Schuette’s office.
  • Assistance for Veterans – $5 million. The men and women who served our country also have been affected by poor mortgage servicing and foreclosure practices. These funds will provide targeted relief for military service members unable to qualify for existing programs. The Michigan Department of Military and Veteran’s Affairs will be responsible for this program.
  • Michigan Attorney General Home Protection Unit – $6 million. These funds will allow the attorney general to ramp up investigation and prosecution of foreclosure-related crimes. This unit has convicted 27 individuals and companies since 2011. These funds will allow for additional investigators and prosecutors to combat foreclosure related crimes. 
  • Blight Elimination – $25 million. These funds will be dedicated to blight elimination efforts throughout Michigan. Detroit will receive $10 million for blight elimination in the city of Detroit and $15 million will be allocated for use throughout the rest of the state.
  • Foreclosure Counseling for Homeowners – $20 million. The Michigan State Housing and Development Authority (MSHDA) and Michigan State University Extension Offices will use these funds to expand their much-needed, free homeowner counseling services for citizens seeking to avoid foreclosure.
  • Housing and Community Development Programs – $3.7 million. These funds will be allocated to the Michigan Housing and Community Development Fund which develops and coordinates public and private resources to meet the affordable housing needs of low- income households and to revitalize downtown areas and neighborhoods in Michigan.
  • Grants to Help Homeowners Refinance – $5 million. These funds will allow MSHDA to provide grants to help pay the closing costs of citizens who use the Home Affordable Refinance Program. Eligible citizens will receive assistance paying closing costs associated with refinancing their home.  Homeowners will be able to begin applying for these funds by the end the year.
  • Assistance to Homebuyers – $15 million. These funds will assist both service members and non-service members by providing grants to offset the purchase price of a home.  Service members may be eligible for grants up to $5,000 and non-service members up to $3,000.  Eligibility criteria to determine qualifying cases will be established at a later date.  Homebuyers will be able to begin applying for these funds by the end the year.

More information on the 2012 Mortgage Settlement is available on the Attorney General’s Website at www.michigan.gov/mortgagesettlement.



7 Responses to “Racketeering, a 20-Year Felony | Michigan AG Files Criminal Charges Against Former DOCX (LPS) President Lorraine Brown for Role in Fraudulent Robo-Signing”
  1. Jason Werner says:

    If a ruler hearken to lies, all his servants are wicked. Proverbs 29:12

  2. Funny is it not that MERS was formed the banks to move unmovable loans in the 1990’s[WHY WERE THEY UNMOVABLE? ] and DOCX was put together to create fraud docs the banks should have known were fraud. How did they know who to get them from? She just invented it on her own and offered her services to every big bank and small out there and they knew she was the one to do the job? Not likely. Dont believe the banks did not have a part in this, and she has so far taken the fallfor them. Perhaps not when looking at twenty years now. Hope she is put into protective custodyand doesn’t wind up a faked suicide.

  3. Hopefully Lorraine will whistleblow on the banks for their part in this. now. Dont tell me the banks did not know and mostlikely even set her up and ordered the docs from her. How convenient to have someone do fraud docs and affidavits for foreclosers that knowingly steal property for free. She just popped up out of nowhere with fraud proof for them. I DONT BELIEVE IT. Banks know weither they have the real docs or not. Why were so many needed if the real ones exhisted? Why was MERS used to move unmovable loans. at attorney Pratt litteally boast in the video of BAins V MERS, Mellisa Huelsman and Pratt video on the web? Why were the loans unmovable in the 1990’s and why did DOCX have so much business in the 1990’s to issue fraud assignments and affdavits all about the same time? Why were these two companies and I am sure more companies needed to forge and print fraud docs and affidavits to foreclose( Imean steal and unlawfully sieze homes). IF THEY HAD THE REAL DOCUMENTS AND REALLY OWNED THEM?

  4. stripes says:

    First and foremost, the main reason we are all here, is, none of us were educated properly. Even those who graduated from college, even the so called prestigious colleges, were only taught what they wanted us to know, not what we really needed to know. That is what has allowed the political traitors to run roughshot all over us. I would like to use the facts on the snapple caps as an example. Shouldn’t we have already known most of this stuff? Our entire educational system is a complete and utter failure. Even the well educated have been dumbed down by an ideology that is not Constitutional or Legal under U.S. and Common Law, State, Federal or any of the Laws of this land. These politicians are a complete and utter disgrace for masking the truth from the American people by fraudulently inducing a Marxist/Leninist ideology and using Nazi type Fascism to institute Complete Communism upon the American people who fought, died founded and paid for all of us to live in the freeist nation on earth.

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