Breaking news:

At 5:01 PM EST, DOJ issued confirmation that :

The Founder of DocX, which later changed its name to LPS, has pleaded GUILTY in US District Court for the Middle District of Florida. In the “Factual Basis” document attached to her Plea Agreement, Lorraine Brown, the founder of DocX, LLC, admits that the documents produced by these companies from the period 2003-2009 were forgeries.

 Beginning in or about 2003 and continuing through November 2009, employees of DocX at the direction of Brown and others, began forging and falsifying signatures on mortgage-related documents that they had been hired to prepare and file with property recorder’s offices throughout the United States. Unbeknownst to clients, the Authorized Signers were instructed or authorized by Brown to allow other DocX employees, who were not authorized signers, to sign and notarize the mortgage-related documents as if the [sic] actually by the Authorized Signer.

Later down:

Thus, even through [sic] clients were told that a senior DocX manager would be preparing and signing the client documents, there was never any intention to do so.

More

 After these documents were falsely signed and fraudulently notarized, Brown authorized DocX employees to send them through the mails or by electronic means for recording with local county property records offices across the nation. Many of these documents – particularly mortgage assignments, lost note affidavits, and lost assignment affidavits – were later relied upon in court proceedings, including property foreclosures and federal bankruptcy actions. Brown understood that these property recorders, courts, title insurers and homeowners, relied upon the documents as genuine.

First of all, let me gloat. I have been saying for how many years that there were easy plain vanilla mail fraud and wire fraud cases to be made (I’m in a rush to get this posted before I go to coach my HS Mock Trial Team, I’ll come back later to put in the links).

Secondly, elsewhere in the plea agreement—don’t’ worry there will be follow-up posts as I dig into these documents better—she agrees to give restitution to the “victims”. It will be hard for those victims to collect since she is apparently forfeiting most of her money. But bear with me, if foreclosure defendants were to bring a 3rd party action against Lorraine Brown and DocX/LPS (assuming there are DocX/LPS documents being used against them), they could simply Notice the Depositions of Brown and the relevant robo-signers to obtain testimony to refute the validity of those documents, and then move for Summary Judgment against the bank trying to foreclose.

Unless I am giddy with excitement and totally misreading this, this plea could be a game changer.

I won’t be here for the thread, but will come back to read it when I get out of Mock Trial practice.

Update: 5:07 PM EST

She also pleaded guilty in state criminal court in Missouri (h/t Peterr)