June 26, 2013
Jefferson City, Mo. – Attorney General Chris Koster said today that Lorraine Brown, former president of Docx, LLC, was sentenced yesterday in federal court to five years in prison for her participation in a six-year scheme to prepare and file more than one million fraudulently signed and notarized mortgage-related documents with property recorders' offices throughout the United States. The federal case is separate from Missouri's prosecution.
Koster filed state criminal charges against Brown in February 2012, when a Boone County grand jury handed down a 136-count indictment against her and her former company Docx, LLC, for forgery and making a false declaration related to mortgage documents processed by Docx. Brown pleaded guilty to one felony count of forgery, one felony count of perjury, and one misdemeanor count of making a false declaration in November 2012. She will be sentenced July 22 in Boone County for the forgery and false declaration charges, and July 23 in Jackson County for the perjury charge. Pursuant to Brown’s plea agreement with the state, the sentences she receives in Missouri will run concurrently with her federal sentence.
The Missouri indictments were the result of months of investigation by the Attorney General’s Office into the robo-signing scandal that injected thousands of questionable mortgage documents into the market. When the practice began to come to light, several major lenders temporarily suspended foreclosures in 2010. Docx's role in the robo-signing process came to national attention when 60 Minutes reported that Linda Green, an employee of Docx, purportedly signed thousands of mortgage-related documents on behalf of several different banks and in multiple handwritings. The 68 documents on which the Missouri indictments were based were purportedly signed by Linda Green, but, by Brown's admission, were signed by someone else.
The Missouri Attorney General's Office was the first governmental entity to file charges against Brown and Docx. In addition to the federal sentence, Brown has been sentenced in Michigan to 40 months to 20 years.
"Our goal was to ensure that Ms. Brown served time for her surrogate-signing scheme," Koster said. "Docx's surrogate-signing practices were the worst in the country, and Brown's activities crossed the threshold into criminal activity.