Tag Archives: LPS

What Happened When the FBI Investigated Foreclosure Fraud in Florida

By David Dayen

Six years ago, FBI agents in Jacksonville, Florida, wrote a memo to their bosses in Washington, DC, that could have unraveled the largest consumer fraud in American history. It went to the heart of the shady mortgage industry that precipitated the financial crisis, and the case promised to involve nearly every major bank in the country, honing in on the despicable practice of using bogus documents to illegally kick people out of their homes.

But despite impaneling a grand jury, calling in dozens of agents and forensic examiners, doing 75 interviews, issuing hundreds of subpoenas, and reviewing millions of documents, the criminal investigation resulted in just one conviction. And that convict—Lorraine Brown, CEO of the third-party company DocX that facilitated the fraud scheme—was sent to prison for duping the banks.

Thanks to a Freedom of Information Act request, VICE has obtained some 600 pages of documents from the Jacksonville FBI field office showing how agents conducted a sprawling investigation. (The Jacksonville case is also featured in my new book, Chain of Title.) The documents suggest the feds gained a detailed understanding of how and why the mortgage industry enlisted third-party companies to create false documents they presented to courts, as detailed in the 2012 National Mortgage Settlement, for which the big banks paid billions in civil fines. The banks’ conduct is described in the settlement documents as “unlawful,” and the Jacksonville FBI had it nailed almost two years earlier.

Read on.

Link

If you purchased or acquired the publicly traded common stock of LPS during the period from August 6, 2008 to and through October 4, 2010, you may be entitled to a payment from a class action settlement

If you purchased or acquired the publicly traded common stock of LPS during the period from August 6, 2008 to and through October 4, 2010, you may be entitled to a payment from a class action settlement

The purpose of this website is to inform you of (a) the pendency of this class action (the “Action”), (b) the proposed settlement of the Action, and (c) the hearing to be held by the Court to consider (i) whether the settlement should be approved, (ii) the application of lead plaintiff’s counsel for attorneys’ fees and expenses, and (iii) certain other matters (the “Settlement Hearing”). The Notice describes important rights you may have and what steps you must take if you wish to participate in the settlement or wish to be excluded from the Settlement Class.

If approved by the Court, the settlement will provide a $14 million cash settlement fund for the benefit of eligible investors (the “Settlement”).1

The Settlement resolves claims by Baltimore County Employees’ Retirement System (“Lead Plaintiff”) that the Defendants misled investors about the financial condition of LPS, avoids the costs and risks of continuing the litigation, pays money to investors like you, and releases the Defendants from liability.

If you are a member of the Settlement Class, your legal rights are affected whether you act or do not act.

The Court will review the Settlement at the Settlement Hearing to be held on October 25, 2013.

Link

Lender Processing Service opens facility in India

Lender Processing Service opens facility in India

HYDERABAD, INDIA: Lender Processing Services Inc., a leading provider of innovative technology, services, data and analytics to the mortgage and real estate industries today announced the opening of its mortgage technology services facility in India. The company handles about 50 percent of all US mortgages by dollar value.

LPS acquired an office in Hyderabad as part of its acquisition of LendingSpace in 2012. LendingSpace provides residential mortgage origination technology, including a unique correspondent lending platform that enhances collaboration between retail originators and their correspondent lending partners in the United States.

And don’t forget this article:

Mortgage Jobs Sent to India By U.S. Banks http://shar.es/kNWGK

Link

Fidelity National Discloses FTC Investigation Into Lender Processing Services Acquisition

Fidelity National Discloses FTC Investigation Into Lender Processing Services Acquisition

In connection with the pending acquisition (the “Acquisition”) of Lender Processing Services, Inc., a Delaware corporation (“LPS”) by Fidelity National Financial, Inc., a Delaware corporation (“FNF”), FNF received on July 12, 2013, a request for additional information and documentary material, often referred to as a “Second Request”, from the United States Federal Trade Commission (the “FTC”) in connection with the FTC’s Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”) regulatory review of the Acquisition. The effect of the Second Request is to extend the waiting period imposed by the HSR Act until 30 days after FNF and LPS have substantially complied with the Second Request, unless that period is extended voluntarily by the parties or terminated sooner by the FTC. FNF has been working, and will continue to work, cooperatively with the FTC and continues to expect the Acquisition to close in the fourth quarter of 2013. Completion of the Acquisition remains subject to approval by FNF and LPS stockholders, approvals from applicable federal and state regulators and satisfaction of other customary closing conditions.

Important Information Will be Filed with the SEC FNF plans to file with the SEC a Registration Statement on Form S-4 in connection with the transaction. FNF and LPS plan to file with the SEC and mail to their respective stockholders a Joint Proxy Statement/Prospectus in connection with the transaction. The Registration Statement and the Joint Proxy Statement/Prospectus will contain important information about FNF, LPS, the transaction and related matters. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS CAREFULLY WHEN THEY ARE AVAILABLE. Investors and security holders will be able to obtain free copies of the Registration Statement and the Joint Proxy Statement/Prospectus and other documents filed with the SEC by FNF and LPS through the web site maintained by the SEC at http://www.sec.gov or by phone, email or written request by contacting the investor relations department of FNF or LPS at the following:

FNF LPS 601 Riverside Avenue 601 Riverside Avenue Jacksonville, FL 32204 Jacksonville, FL 32204 Attention: Investor Relations Attention: Investor Relations: 904-854-8100 904-854-5100 dkmurphy@fnf.com nancy.murphy@lpsvcs.com

Read more: http://www.benzinga.com/news/13/07/3749991/fidelity-national-discloses-ftc-investigation-into-lender-processing-services#ixzz2Z4mmEkq0

ormer Executive at Florida-Based Lender Processing Services Inc. Sentenced to Five Years in Prison for Role in Mortgage-Related Document Fraud Scheme

Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Tuesday, June 25, 2013
Former Executive at Florida-Based Lender Processing Services Inc. Sentenced to Five Years in Prison for Role in Mortgage-Related Document Fraud Scheme
Over 1 Million Documents Prepared and Filed with Forged and False Signatures, Fraudulent Notarizations

A former executive of Lender Processing Services Inc. (LPS) – a publicly traded company based in Jacksonville, Fla. – was sentenced today to serve five years in prison for her participation in a six-year scheme to prepare and file more than 1 million fraudulently signed and notarized mortgage-related documents with property recorders’ offices throughout the United States, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Middle District of Florida Robert E. O’Neill, and Special Agent in Charge Michelle S. Klimt of the FBI Jacksonville Division.

 
Lorraine Brown, 56, of Alpharetta, Ga., was sentenced by Senior U.S. District Judge Henry Lee Adams Jr. in the Middle District of Florida. In addition to her prison term, Brown was sentenced to serve two years of supervised release and ordered to pay a fine of $15,000.   On Nov. 20, 2012, Brown pleaded guilty to conspiracy to commit mail and wire fraud.  

 

“Lorraine Brown will spend five years in prison for her central role in a scheme to fraudulently execute thousands of mortgage-related documents while our nation’s housing market was at its most vulnerable point in generations,” said Acting Assistant Attorney General Raman.  “The documents that were fraudulently produced under Brown’s direction were relied upon in court proceedings, including a significant number of foreclosure and bankruptcy matters. Today’s sentencing represents appropriate punishment for someone who sought to capitalize on the nation’s housing crisis.”

 

“Floridians were hard hit by the downturn in the real estate market,” said U.S. Attorney O’Neill.  “We will continue to pursue individuals like Brown who took advantage of consumers for personal gain and contributed to the financial crisis.  Prosecuting financial crimes remains a priority for our office.”

 

“The investigation of sophisticated mortgage and corporate fraud schemes continues to be a priority for the Federal Bureau of Investigation as such criminal activities have a significant economic impact on our community,” said Special Agent in Charge Klimt.

 
Brown was an executive at LPS and the chief executive of DocX LLC, which was a wholly-owned subsidiary of LPS, until it was closed down in early 2010.   DocX’s main clients were residential mortgage servicers, which typically undertake certain actions for the owners of mortgage-backed promissory notes.   Servicers hired DocX to, among other things, assist in creating and executing mortgage-related documents filed with recorders’ offices.

 
According to Brown’s plea agreement, employees of DocX, at the direction of Brown and others, began forging and falsifying signatures of authorized personnel on the mortgage-related documents that they had been hired to prepare and file with property recorders’ offices.   Only specific personnel at DocX were authorized by clients to sign the documents, but the documents were fraudulently notarized as if actually executed by authorized DocX employees.

 
According to plea documents, Brown implemented these signing practices at DocX to enable DocX and Brown to generate greater profit.  Specifically, DocX was able to create, execute and file larger volumes of documents using these signing and notarization practices.   To further increase profits, DocX also hired temporary workers to act as authorized signers.   These temporary employees worked for much lower costs and without the quality control represented by Brown to DocX’s clients.  Some of these temporary workers were able to sign thousands of mortgage-related instruments a day.  Between 2003 and 2009, DocX generated approximately $60 million in gross revenue.        

 

After these documents were falsely signed and fraudulently notarized, Brown authorized DocX employees to file and record them with local county property records offices across the country.  Many of these documents were later relied upon in court proceedings, including property foreclosures and federal bankruptcy actions.  Brown admitted she understood that property recorders, courts, title insurers and homeowners relied upon the documents as genuine.

 

This case is being prosecuted by Trial Attorney Ryan Rohlfsen and Assistant Chief Glenn S. Leon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark B. Devereaux of the U.S. Attorney’s Office for the Middle District of Florida.   This case was investigated by the FBI, with assistance from the state of Florida’s Department of Financial Services.   

 

This case is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov .

Link

North Carolina judge finds fatal flaws in lawsuit against MERS, LPS

North Carolina judge finds fatal flaws in lawsuit against MERS, LPS

The register of deeds for Guilford County, N.C., lost a very public court battle against mortgage document processing firmLender Processing Services and the Mortgage Electronic Registration Systems.

The lost court battle ends the register’s closely-followed attempt to obtain a special master to investigate the two firms’ handling of mortgage documents and the recording of property assignments in the county.

In the original lawsuit, the Guilford County Register of Deeds Jeff Thigpen painted a picture of two firms – MERS and LPS – as causes of a major county recording mess.

Thigpen alleged the use of the MERS registry – along with the LPS handling of certain mortgage documents – ended up making a mess of county property and land records.

~ 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…