Crime Scene

(image: roberthuffstutter, flickr)

I thought I would die of old age before this day came. I published road maps to the state AGs back in 2010 explaining how robosigning was forgery and perjury and I thought no one “got” it.

After all the pussyfooting around calling robo signed documents “sloppy paperwork” and loosey goosey subjective sounding civil standards like “deceptive practices” an Attorney General has finally shown the common sense and testicular fortitude to call those manufactured documents by, what up until now has been, the names that must not be mentioned:

FORGERY!   FALSE  STATEMENTS!

Yves Smith reports that Missouri AG Chris Koster has filed a 136 count indictment against DOCX and its founder Lorraine Browne for forgery and false statements.

From the AG’s press release:

Forgery is a Class C felony and False Declaration is a Class B misdemeanor. If convicted on the most serious count, Brown could face up to seven years in prison for each count. DOCX could be fined up to $10,000 for each forgery conviction and $2,000 for each false declaration conviction.

There are several things about this to watch:

1) This is not a squishy subjective standard. Either you signed it or you didn’t. Either the statement was true or it was false. There is much less drifting off into subjective intent nonsense.

2) This is a criminal case.

3) The person who created the system that created the forgeries is the target, unlike all prior predictions that the actual low level  robo signers would be the only ones to suffer in a forgery case.

4) This is not a “let the shareholders pay the price while the CEO still collects a bonus” case of the kind that has been known to be rejected by a certain federal judge in SDNY.

5) It is a perfect foundation case to go after the servicers.

6)  Now that someone has dared say the word “forgery,” it will be that much easier for the next prosecutor to go there. It looks like the walls of the bankster citadel may have been breached.

Lynn Syzmoniak, I raise my coffee cup high and toast you. You were a voice in the wilderness, as was Yves, for so long. OWS you guys changed the public dialogue and created a climate that made this possible.

It’s not a “win” yet.  There is still the case to try and a conviction to obtain; but you gotta be in it before you can win it, and we finally have a forum for this to get heard.

Peterr has some skinny on Koster.