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Why Isn’t This a Front Page Story Nationwide?

On November 20th 2012 I told you about a guilty plea taken by Lorraine Brown, the founder of DOCX (later known at LPS), in federal court in Florida. The press release for that plea did not come out until after 5 PM on the Tuesday before Thanksgiving. On the Wednesday before Thanksgiving most of the reporters who usually occupy the front pages of our newspapers and network news were presumably traveling or preparing for their holiday. The story was barely reported.

Lorraine Brown also pled guilty earlier that same day in state court in Missouri. She is rumored to be in plea negotiations in other states.

Even though this is no longer breaking news, it still belongs on the front page of every paper in the country and should be the lead story on every newscast. I’ll tell you why:

Whatever the banks thought about the robo-signing being “sloppy” before, once Lorraine Brown admitted that virtually every document coming out of DOCX/LPS was a forgery and that ALL documents coming out of DOCX/LPS were suspect, the banks that had court cases pending using DOCX/LPS documents had an obligation to either withdraw the documents and/or withdraw the lawsuits and other foreclosure proceedings.

It is a crime (common law fraud) to knowingly use a false, perjured, forged, fraudulent document as “evidence” in court. The specific statute violated will vary from state to state, but it is impossible to conceive that there is a single state where this is legal. If I’m wrong about that, I’m sure someone from the fraud-allowing state will set me straight in the comments. This is certainly a violation of federal criminal law, for example 18 USC §§ 371, 1341, 1342, and 1343 and 39 USC§§ 1341 and 1342.

I have seen no evidence that there has been a wholesale withdrawal of DOCX/LPS documents from evidence or a large scale voluntary dismissal of cases or even letters sent to chief judges saying that the cases should be stayed until they can perform the mechanics of withdrawing the fraudulent “evidence.” Nope, the cases I have been following are still going strong and being prosecuted vigorously.

This also means that the 50 state settlement notwithstanding, the Department of Justice and every attorney general in the country have a brand new, slam dunk, open and shut case against every single bank that is still allowing a foreclosure case to go forward based on DOCX/LPS false evidence.

THAT, my friends, is front page news. And getting it to the front page is essential so that judges know they are being hoodwinked, and homeowners know they should be making motions to dismiss. DOJ clearly knows about the Lorraine Brown guilty plea since the 13th hour press release came out of Main Justice instead of from the Middle District of Florida press office.

So, I’m asking for your help. Tweet this. Send a copy as a Letter to the Editor (or re-write your own using this information). Send it to the network and cable news shows you watch. Put up your own blog post about it. Email it to your favorite reporters. I don’t care if my little blogpost is the form you promote, just promote the story of the brand new massive fraud on the court that is occurring right now. The banks, and their lawyers, have no excuse. They can no longer harbor any belief, good faith or not, that those documents are not false and fraudulent.

CommunityMy FDL

Why isn’t this a front page story nationwide?

On November 20th 2012 I told you about a guilty plea  taken by Lorraine Brown, the founder of DOCX (later known at LPS), in federal court in Florida. The press release for that plea did not come out until after 5 PM on the Tuesday before Thanksgiving. On the Wednesday before Thanksgiving most of the reporters who usually occupy the front pages of our newspapers and network news were presumably traveling or preparing for their holiday. The story was barely reported.

Lorraine Brown also pled guilty earlier that same day in state court in Missouri. She is rumored to be in plea negotiations in other states.

Even though this is no longer breaking news, it still belongs on the front page of every paper in the country and should be the lead story on every newscast. I’ll tell you why:

Whatever the banks thought about the robo-signing being “sloppy” before, once Lorraine Brown admitted that virtually every document coming out of DOCX/LPS was a forgery and that ALL documents coming out of DOCX/LPS were suspect, the banks that had court cases pending using DOCX/LPS documents had an obligation to either withdraw the documents and/or withdraw the lawsuits and other foreclosure proceedings.

It is a crime (common law fraud) to knowingly use a false, perjured, forged, fraudulent document as “evidence” in court. The specific statute violated will vary from state to state, but it is impossible to conceive that there is a single state where this is legal. If I’m wrong about that, I’m sure someone from the fraud-allowing state will set me straight in the comments. This is certainly a violation of federal criminal law, for example 18 USC §§ 371, 1341, 1342, and 1343 and 39 USC§§ 1341 and 1342.

I have seen no evidence that there has been a wholesale withdrawal of DOCX/LPS documents from evidence or a large scale voluntary dismissal of cases or even letters sent to chief judges saying that the cases should be stayed until they can perform the mechanics of withdrawing the fraudulent “evidence.” Nope, the cases I have been following are still going strong and being prosecuted vigorously.

This also means that the 50 state settlement notwithstanding, the Department of Justice and every attorney general in the country have a brand new, slam dunk, open and shut case against every single bank that is still allowing a foreclosure case to go forward based on DOCX/LPS false evidence.

THAT, my friends, is front page news. And getting it to the front page is essential so that judges know they are being hoodwinked, and homeowners know they should be making motions to dismiss. DOJ clearly knows about the Lorraine Brown guilty plea since the 13th  hour press release came out of Main Justice instead of from the Middle District of Florida press office.

So, I’m asking for your help. Tweet this. Send a copy as a Letter to the Editor (or re-write your own using this information). Send it to the network and cable news shows you watch. Put up your own blog post about it. Email it to your favorite reporters. I don’t care if my little blogpost is the form you promote, just promote the story of the brand new massive fraud on the court that is occurring right now. The banks, and their lawyers, have no excuse. They can no longer harbor any belief, good faith or not, that those documents are not false and fraudulent.

Photo by steakpinball under Creative Commons license.

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Cynthia Kouril

Cynthia Kouril

Cynthia Kouril is a former Special Assistant United States Attorney in the Southern District of New York under several different U.S. Attorneys, former counsel to the Inspector General for the N.Y.C. Department of Environmental Protection where she investigated threats to the New York City water supply and other environmental crimes, as well as public corruption and fraud against the government, former Examining Attorney at the N.Y.C. Department of Investigation and former Capital Construction Counsel at New York City Parks and Recreation.
She is now in private practice with a colleague whom she met while at the USA Attorney's Office. Ms. Kouril is a member of the Steering Committee, National Committeewoman and Regional Coordinator for the New York Democratic Lawyers Council, a member of the Program Committee of the Federal Bar Council and a member of the Election Law Committee at the Association of the Bar of the City of New York. She is active in several other Bar Associations.
Most important of all, she is a soccer mom.