In the foreclosure industry, “robo-signing” is the practice of a bank employee signing thousands of documents and affidavits without verifying the information contained in those documents. It can mean that a qualified executive in the mortgage industry signs a mortgage affidavit document without verifying the information. It may mean someone forged a mortgage executive’s signature, or that a lower-level employee signs his name with a fake title. It may also mean the bank fails to comply with notary procedures. In all such cases, individuals execute documents swearing to their accuracy without bothering to verify any of the information those documents contain. In one reported case, one bank official signed off on approximately 10,000 documents in one month. In another instance, one bank official allegedly executed 3,500 foreclosure documents in a single day. Certainly, no human being is able to review and confirm the accuracy of information contained in 3,500 documents in a single day. Nevertheless, those robo-signed documents supplied the requisite authority to conduct foreclosure sales.
Another technique employed in the foreclosure industry is that of “surrogate signing,” which occurs when someone signs another person’s name on a document after receiving permission to do so. In one particularly egregious instance, over a nine month period beginning in October 2010, the Essex County, Massachusetts Recorders Office received approximately 1,300 documents executed by “Linda Green” – in 22 different handwriting styles and with many different professional titles. Significantly, the company that “Linda Green” worked for had been closed in the Spring of 2010, yet her signature continued to appear on foreclosure documents well into 2011. Similarly, in Guilford County, North Carolina, between October 1, 2010 and June 30, 2011, the recorders office received 456 documents with suspect signatures, including 290 signed by “Bryan Bly” and 155 signed by “Crystal Moore.” During subsequent investigations, both individuals admitted to executing mortgage documents without having read them. North Carolina did not charge either with a crime. Nevada has been more aggressive in pursuing charges against individuals and companies undertaking robo-signing.
In November 2011, Nevada became one of the first states to indict suspected robo-signers. Title Officers Gary Trafford and Gerri Sheppard, employed by Lender Processing Services, were charged with 606 counts of felony and gross misdemeanor for directing employees to forge their signatures and falsely notarize documents used to illegally foreclose on Clark County homeowners. Trafford and Sheppard were charged with offering false documents for recording (category C felony); false certification of documents (category D felony) and notarization of the signature of a person not in the presence of a notary public (a gross misdemeanor). According to Nevada Chief Deputy Attorney General John Kelleher, the grand jury found “probable cause that there was a robo-signing scheme which resulted in tens of thousands of fraudulent documents being filed with the Clark County Recorder’s Office between 2005 and 2008.” The case against Trafford and Sheppard is presently pending in the Eighth Judicial District Court, Clark County, Nevada.
In November 2011, one local notary public, Tracy Lawrence, who was the whistle-blower and who had pled guilty to a misdemeanor notary fraud charge in conjunction with the robo-signing activities of Trafford and Sheppard, was found dead after failing to appear at her sentencing on the charge. In pleading guilty, Lawrence admitted she had notarized 25,000 fraudulent documents as a part of a foreclosure fraud scheme in Clark County, Nevada.
Subsequently, in December 2011, the Nevada Attorney General filed complaints against three local notaries public, Meghan Shaw, Jennifer Bloecker and Joseph Noel, alleging notarization of signatures of persons not in their presence ( a gross misdemeanor). The complaint alleges that the defendants’ actions were performed in a secretive manner in order that the false documents were given full legal effect and so that their criminal activity would not be discovered. Additionally, in December 2011, the Nevada Attorney General filed suit against Lender Processing Services, Inc. and several of its subsidiaries, DOCX, LLC and LPS Default Solutions, Inc. for allegedly engaging in deceptive practices against Nevada consumers.
A recent change in Nevada law, effective as of October 1, 2011, provides that foreclosure companies may be charged with a felony and up to a $5,000 fine for recording any false or robo-signed document. If you have been unable to make your monthly mortgage payments, someone may be preparing for foreclosure against you by filing file robo-signed or “surrogate signed” documents. Your best alternative to protect your rights against these fraudulent filings is to retain an experienced attorney from the Flangas McMillan Law Group.
|
Give your