And So The Story Goes… Lorraine Brown: Michigan Sets Parole for DOCX ‘Linda Green’ Robo-Signer
“As for the fraudulent “Linda Green” documents created by Lorraine Brown, DocX and Lender Processing Services, they continue to circulate in county recorder offices and local courtrooms.”
The only person jailed in connection with a foreclosure forgery scandal that swept through Michigan and the rest of the country after the collapse of the housing bubble spends her days confined to the Women’s Huron Valley Correctional Facility in Pittsfield Township.
But not for long.
Sentenced in May 2013 to serve up to 20 years on racketeering charges, Lorraine Brown, now 55, will be paroled sometime this week, according to the Michigan Department of Corrections, after serving her 40-month minimum sentence. Brown will then be transferred to federal custody to serve the remainder of a 58-month federal sentence after pleading guilty to a single charge of conspiracy to commit mail and wire fraud.
Brown’s scheme netted $60 million between 2003 and 2006 for the parent company DocX, her Georgia-based document processing firm that forged more than 1 million foreclosure documents used by banks and attorneys to illegally turn homeowners homeless.
The parent firm, Lender Processing Services of Jacksonville, Florida, has paid millions in fines and settlements — including $800,000 to Michigan for attorneys’ fees and costs and another $1.7 million to the state as part of a 46-state $127 million settlement.
But none of Brown’s co-conspirators has been criminally charged. And despite civil actions and investigations into the same kind of document fraud routine in foreclosures across the country, few if any other individuals have faced jail time over “robo-signing” and foreclosure forgeries, according to a Los Angeles-based author and journalist who has reported extensively on foreclosure.
“Her problem was that she lied to the FBI and the FBI didn’t take kindly to that,” says David Dayen. “She was the scapegoat.”