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Michigan AG : Former president of DocX pleads guilty to racketeering

Michigan AG Bill Schuette says the former president of mortgage document processor DocX, pleaded guilty to racketeering for her alleged role in authorizing fraudulent signatures on mortgage documents.

Lorraine Brown pleaded guilty today to one count of conducting criminal enterprises, a 20-year felony, before Kent County Circuit Court Judge Mark Trusock.

The guilty plea follows an investigation into mortgage documentation filed with Michigan’s Register of Deeds offices during the foreclosure crisis.

“Shortcuts like robo-signing are just one part of the mortgage foreclosure crisis,” said Schuette.  “The message here is clear – if you break the law, there are consequences.  We will continue to prosecute criminals who target and exploit Michigan homeowners.”

In April 2011, Schuette launched an investigation after state officials reported that they suspected 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.

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