Missouri Attorney General Chris Koster Tuesday reached a plea agreement with Lorraine Brown, the former president of the now-defunct DocX, LLC, to settle ‘robosigning’ allegations that received nationwide attention.
Brown – who will serve at least two years in prison -- will plead guilty to one felony count of forgery, a felony count of perjury, and a misdemeanor charge of making a false declaration, according to a statement released by the AG’s office.
Prosecutors said from March to October 2009 Brown, as president of the mortgage vendor, instituted “a surrogate signing policy whereby employees signed, not their name, but the names of other employees on thousands of mortgage documents that were notarized and filed across the country.”
Prior to 2009, similar signing practices were also employed at DocX, the AG said.
The AG noted that Brown concealed the practices from her clients, residential servicers, and even its owners, Lender Processing Services.
In a statement, LPS noted that Brown “actively concealed from LPS the surrogate signing practices that she implemented at DocX. When LPS discovered these practices in November 2009, it immediately discontinued the practices, terminated Ms. Brown and shut down the operations of DocX.”
The firm added that it “also remediated documents executed under the surrogate signing process and has fully cooperated with all government investigations into these matters.”