Lender Processing Services (LPS) Agrees to $14M Securities Fraud Settlement

LPS

“Gardner said the case hit a potential challenge in November 2012, when Lorraine Brown, a former chief executive of Lender Processing’s DocX LLC subsidiary, pleaded guilty to engaging in a scheme to file fraudulent documents in foreclosures.

As part of her plea, Brown admitted taking steps to conceal the actions of herself and others from, among others, Lender Processing headquarters. That made it an “extreme challenge to trace knowledge up to senior LPS executives,” Gardner said.”

~

Lender Processing Services (LPS) Agrees to $14M Securities Fraud Settlement

NEW YORK (Reuters) – Mortgage servicing company Lender Processing Services Inc has agreed to pay $14 million to settle claims the company misled investors about improper practices underlying its business model, including the “robo-signing” documents, in connection with foreclosures.

The company’s settlement, disclosed in papers filed last week in U.S. District Court in Jacksonville, Florida, marked the latest securities class action settlement to spill out of the U.S. housing market crash and subsequent financial crisis.

Filed in 2010, the lawsuit accused Lender Processing and several executives of making false or misleading statements related to an alleged practice of improper “fee splitting” and of engaging in illegal document-filing practices related to foreclosures.

Following a series of disclosures about its allegedly improper business practice, Lender Processing’s stock fell 18 percent from April 2009 to October 2010.

The settlement, disclosed May 6, represents a “decent chunk of estimated damage in the case,” said lead plaintiffs’ counsel Jonathan Gardner of Labaton Sucharow, though he declined to say how much that totaled.

More here…

~

4closureFraud.org

Comments
6 Responses to “Lender Processing Services (LPS) Agrees to $14M Securities Fraud Settlement”
  1. Who CARES about the other end of the disecption???? We were seriously misled as to what our loan actually was until they asked for the payments to be $10000 a month (less than what we made a month and it was not a stated loan) I have spent every penny on trying to save it, nothing but more debt, bad credit, and serious frustrations!!

  2. charley rice says:

    IF THEY ARE NOT GOING TO PROSECUTE THEM, THEN DO A PUT BACK OF THE HOMES BASED ON EVERY FRAUDULENT ASSIGNMENT!

    OR STAND DOWN, AND LET THE PEOPLE RECLAIM THEIR HOMES

  3. Yode says:

    You would have to be inept to believe Lorraine Brown was able to pull this off without Corporate’s knowledge. She is a “sacrificial lamb” in this instance. There is a very high probability that an enormous sum of money has been deposited into an account for use by her and her family. Who do you think created LPS? Who do you think are the “Principal Shareholders” in LPS???? I’ll give you a hint….. Who benefited most by the use of the fraudulent documents created and used to steal people’s homes? Who does the head “Ho” over at DOJ refuse to file criminal charges against even when they admit to having committed felony crimes against the people?

    • incognito123 says:

      While I agree she is a small piece of the overall picture, SHE DID commit these crimes as well. The problem is there are so many ADDITIONAL that should be going jail WITH her. We MUST go after the small fry like her in order to get to the bigger ones, although the biggest are probably so well insulated, they’ll never go to jail like they should.. Ahh, what money and power will do for one…..

  4. incognito123 says:

    14 Mil out of 14 Bil probably

Leave a Reply