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AG Files Charges In Alleged Mortgage Fraud Scheme

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LANSING (WWJ) - Michigan Attorney General Bill Schuette has charged the former president of mortgage document company with racketeering for her alleged role in authorizing fraudulent mortgage documents.

Lorraine Brown, the former president of Doc-X, is accused of orchestrating a scheme called “robo-signing.” That’s when employees are directed to fraudulently sign another person’s name on mortgage documents in order to finalize the process as quickly as possible.

The felony charge comes as the result of an ongoing Attorney General investigation into questionable mortgage documentation filed with Michigan’s Register of Deeds offices during the foreclosure crisis.

“Now, our investigation revealed that Brown was responsible for implementing and executing and devising this entire rob-signing scheme, and over one thousand phony documents were filed in the state of Michigan,” said Schuette.

“Shortcuts like robo-signing are just one piece of the mortgage foreclosure crisis,” he said.“Our investigation remains ongoing, and we will bring to justice every lawbreaker we find.”

Brown, who has already pleaded guilty to perjury and forgery in Missouri,  is charged with one count of Conducting Criminal Enterprises, a 20-year felony. She’s expected to turn herself in prior to an arraignment yet to be scheduled in Kent County’s 61st District.

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