The Canadian Press - ONLINE EDITION

Nevada attorney general takes settlement, drops fraud case against Lender Processing Services

  • Print

LAS VEGAS, Nev. - Nevada took a settlement Friday and dropped a consumer-fraud lawsuit against a mortgage services firm that state Attorney General Catherine Cortez Masto had accused of orchestrating a massive illegal "robosigning" scheme.

The deal, announced by Masto, called for her office to receive almost $5.6 million from the former Lender Processing Services Inc., plus another $500,000 in attorney fees and costs. It contained no admission of wrongdoing.

"The settlement and mutual release resolves the state's civil action alleging LPS violated the Nevada Deceptive Trade Practices Act, and all other outstanding issues or claims related to the litigation," Masto said in a statement.

Masto spokeswoman Beatriz Aguirre said the deal resolved every element of the case — and took the state off the hook after a judge two weeks ago ordered Masto's office to pay sanctions that could have amounted to hundreds of thousands of dollars in legal fees to the company.

The lead lawyer for the firm, Mitchell Berger, didn't immediately respond Friday to after-hours messages seeking comment. He had been critical of Nevada for being the only state not to accept a nationwide settlement offer from the company.

The attorney general noted in her statement that Nevada became the 50th state to settle with the Jacksonville, Fla.-based company, now known as Black Knight Financial Services, a subsidiary of Fidelity National Financial Inc.

Masto, a Democrat, had vowed to hold companies responsible after Nevada was hit hard by foreclosures once the Great Recession began in December 2007.

She said Friday said the settlement amount the state would receive was fourth behind California, Florida and Texas.

The attorney general said the company also agreed to review mortgage documents signed and filed between January 2008 and December 2010 to determine if any need corrections.

The company set up a toll-free telephone number, 1-866-854-8935, for Nevada homeowners to seek document reviews.

The agreement to end the civil lawsuit signalled the conclusion of a two-pronged effort by Masto to prosecute the company billing itself as the nation's largest loan processor and some of its agents.

A 306-count criminal case against two Southern California-based loan agents affiliated with the company collapsed a year ago, after a notary public who claimed to have witnessed thousands of robosigning improprieties committed suicide and defence attorneys found that Masto's lead prosecutor had faced foreclosure himself.

In the civil case, Berger told Clark County District Court Judge Elizabeth Gonzalez last month that Masto's office never backed up claims that Lender Processing Services paid kickbacks to pursue foreclosures, committed forgery when signing documents or targeted the elderly.

_____

Find Ken Ritter on Twitter: http://twitter.com/krttr

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Chief justices breakdown cameras in courtroom project

View more like this

Photo Store Gallery

  • May 22, 2012 - 120522  - Westminster United Church photographed Tuesday May 22, 2012 .  John Woods / Winnipeg Free Press
  • A nesting goose sits on the roof of GoodLife Fitness at 143 Nature Way near Kenaston as the morning sun comes up Wednesday morning- See Bryksa’s Goose a Day Photo- Day 07- Web crop-May 09, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

What are you most looking forward to this Easter weekend?

View Results

View Related Story

Ads by Google