Thursday, February 28, 2013

Judge throws mortgage "robosigning" case in Las Vegas

LAS VEGAS (AP) - a Nevada Judge vacuum a criminal complaint filed in 2011 against the mortgage of two employees of the loan company, decision that State prosecutors wrong information presented to a grand jury to obtain an indictment in what they called a system of "robosigning" of mortgage fraud in marquee.

A lawyer for defendant Gary Randall Trafford welcomed Tuesday the decision Clark County District Judge Carolyn Ellsworth as "extraordinary" and accused Nevada Attorney general Catherine Cortez Masto and its prosecution assistants fault.

The prosecutor called the case faced a foreclosure himself at the time, and a key witness in the case committed suicide in 2011, said John Hueston, lawyer of Trafford.

?This case has been announced as a revolutionary robosigning?, Hueston said. "The judge found that it there was no robosigning whatsoever."

"It was the fault of pursuit," Hueston alleged "and found that it was so widespread that it did not know that the grand jury would otherwise have charged" Trafford or co-defendant Geraldine Ann Sheppard.

Attorney Ken Julian, representing Sheppard, said he was "grateful for the decision of the Court."

Masto issued a statement calling the decision of Ellsworth as a temporary setback in an ongoing case and denied any intent to mislead the grand jury. She said that it was considering whether to ask another grand jury to file criminal charges.

"Judge demonstrated a decision yesterday that we have presented additional evidence items that were shown to the grand jury the consequences of actions on the homeowners, defendants ' Masto said by the spokesman for Jennifer Lopez. "It there was no intent to mislead the grand jury. We believe that the judge acknowledged this. ?

The judge dismissed all of the 204 felony and 102 charges of wrongdoing against Trafford and Sheppard. The charges consisted of legalization of a signature of a person not in the presence of a notary, who is a serious offence and two different crimes: offering false instruments for filing or registration and false certification of an instrument.

Trafford, 50, Irvine, California, and Sheppard, age 63, of Santa Ana, California, pleaded not guilty in the case.

The two worked for lender Processing Services Inc., ready more important to the nation, business transformation. They were accused of leading a regime of 'robosign' of tens of thousands of fraudulent foreclosure documents in the Las Vegas area during the months of unrest before the great recession without checking the information they contain.

Robosigning became a problem in Las Vegas and other areas with a large number of seizures, and banks had to turn back and review foreclosures across the country to ensure that the paperwork was in order.

At the same time as masto announced criminal proceedings against Trafford and Sheppard, Masto filed a civil lawsuit that aims to collect hundreds of millions of dollars from lender Processing Services Inc., also known under the names of DOCX LLC and LPS default Solutions Inc..

She said 'former employees and industry players' describes LPS as "a string of mounting sweatshop.", churning out records and foreclosures as quickly as new applications have come and punish lawyers network who could not keep pace

John Lovallo, a spokesman for the lender processing Services, said responsible for the company declined to comment.

The company, based in Jacksonville, Florida, said in December 2011, she challenged the allegations of Masto and that he would fight.

At the civil trial is active in the Court of the State of Nevada.


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