August 23, 2013
Jefferson City, Mo. – Attorney General Chris Koster announced today that Lorraine Brown, former president of DocX, LLC, was sentenced this week by judges in Boone and Jackson Counties for her role in a scheme to prepare and file fraudulently signed and notarized mortgage-related documents. Koster was the first in the country to file charges against Brown and DocX. In June of this year, Brown received a separate five-year federal sentence stemming from similar charges.
Koster filed criminal charges against Brown in February 2012, after a Boone County grand jury handed down indictments against her and her former company DocX, LLC, for forgery and making false declarations related to mortgage documents. Brown pleaded guilty to one felony count of forgery, and one misdemeanor count of making a false declaration in November 2012. In a Jackson County court, she pleaded guilty and was sentenced this week to one felony count of perjury.
She was sentenced on Monday August 19th in a Boone County court for the forgery and false declaration charges, and on Thursday August 22nd in Jackson County on the perjury charge. Pursuant to Brown’s plea agreement with the state, the sentences she receives in Missouri will run concurrently with her other sentences. Brown appeared at both sentencing hearings via videoconference from a Michigan jail where she is currently serving a sentence for racketeering in that state, also for her role in the DocX scandal.
"Lorraine Brown directed activities that contributed to fears about the integrity of the nation's mortgage-document industry," Koster said. "Missouri's investigation and indictment of Ms. Brown, as well as that of the federal government, reflect the serious nature of her crimes."
The indictments in Missouri were the result of a months-long investigation by the Attorney General’s Office in coordination with prosecutors and recorders of deeds in Boone and Jackson counties into the surrogate-signing scheme that injected thousands of questionable mortgage documents into the market. DocX's parent company, Lender Processing Services, who shut down the subsidiary in 2010 after the learning of widespread forgery, paid $2 million to the state in 2012.