Make us your home page
Instagram

Former executive sentenced to 5 years in prison for widespread foreclosure fraud

The only executive convicted of a widespread foreclosure fraud that pumped out more than a million faulty mortgage documents has been sentenced to five years in federal prison, prosecutors said Tuesday.

Lorraine Brown, a former executive at Jacksonville's Lender Processing Services, orchestrated a massive "robo-signing" scheme during the housing boom and bust, Department of Justice officials said.

Low-wage workers were trained to forge and falsify signatures on thousands of mortgage papers a day, whisking fraudulent documents into foreclosure courts across the country. Between 2003 and 2009, the subsidiary where she served as chief executive, DocX, netted about $60 million in revenue.

Brown, 56, pleaded guilty in November to conspiracy to commit mail and wire fraud. In addition to her prison term, she was sentenced to two years of supervised release and ordered to pay a $15,000 fine.

In a statement, Acting Assistant Attorney General Mythili Raman called Brown's sentence "appropriate punishment for someone who sought to capitalize on the nation's housing crisis."

But critics say Brown has served largely as a scapegoat for what they call a deeper systematic fraud.

"She was a rung in a very large ladder that extended up to the executive suites at Wall Street banks," journalist David Dayen wrote in Salon. "They wanted a layer of plausible deniability – in fact for circumstances just like this."

Contact Drew Harwell at (727) 893-8252 or dharwell@tampabay.com.

Former executive sentenced to 5 years in prison for widespread foreclosure fraud 06/25/13 [Last modified: Tuesday, June 25, 2013 4:08pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Airbag maker Takata bankruptcy filing expected in Japan, U.S.

    Corporate

    DETROIT — Japanese airbag maker Takata Corp. has filed for bankruptcy protection in Tokyo and the U.S., overwhelmed by lawsuits and recall costs related to its production of faulty air bag inflators.

  2. Federal agencies demand records from SeaWorld theme park

    Tourism

    ORLANDO — Two federal agencies are reportedly demanding financial records from SeaWorld.

    Killer whales Ikaika and Corky participate in behaviors commonly done in the wild during SeaWorld's Killer Whale educational presentation in this photo from Jan. 9. SeaWorld has been subpoenaed by two federal agencies for comments that executives and the company made in August 2014 about the impact from the "Blackfish" documentary. 
[Nelvin C. Cepeda/San Diego Union-Tribune/TNS]
  3. Legalized medical marijuana signed into law by Rick Scott

    State Roundup

    TALLAHASSEE — Gov. Rick Scott on Friday signed into law a broader medical marijuana system for the state, following through on a promise he made earlier this month.

    Gov. Rick Scott signed legislation on Friday that legalizes medical marijuana in Florida.
  4. Line of moms welcome Once Upon A Child to Carrollwood

    Business

    CARROLLWOOD — Strollers of all shapes and sizes are lined up in front of the store, and inside, there are racks of children's clothing in every color of the rainbow.

    At Once Upon A Child, you often as many baby strollers outside as you find baby furniture and accessories. It recently opened this location in Carrollwood. Photo by Danielle Hauser
  5. Pastries N Chaat brings North India cuisine to North Tampa

    Business

    TAMPA — Pastries N Chaat, a new restaurant offering Indian street food, opened this week near the University of South Florida.

    The menu at Pastries N Chaat includes a large variety of Biriyani, an entree owners say is beloved by millions. Photo courtesy of Pastries N Chaat.