A former executive at a mortgage records company pleaded guilty on Tuesday to a scheme to file fraudulent documents used in foreclosures, a rare prosecution of a top-level employee following the so-called robo-signing scandal.
Lorraine Brown, 56, the former president of LPS Document Solutions, part of Lender Processing Services Inc, pleaded guilty in U.S. District Court in Jacksonville, Florida, to conspiracy to commit mail and wire fraud from 2003 to 2009.
LPS was not charged with wrongdoing. It said in a statement that it fired Brown and shut down her unit's operations when it discovered the fraudulent practices in November 2009. It said it has fully cooperated with all government investigations into these matters.
The "robo-signing" scandal emerged in 2010 involving allegations that banks pursued faulty foreclosures by using defective or fraudulent documents. In February 2012, five big U.S. banks agreed to a $25 billion deal with 49 state attorneys general and the federal government
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