Traverse City Record-Eagle

February 12, 2013

Business in Brief: 02/12/2013


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Mortgage processor pleads to racketeering

GRAND RAPIDS — The former president of a mortgage document processing company has pleaded guilty to a racketeering charge in Michigan.

The state attorney general's office says Lorraine Brown pleaded guilty Monday in a Kent County circuit courtroom. She faces up to 20 years in prison when sentenced on May 2.

The state says that the 51-year-old Brown orchestrated a robo-signing scheme in which employees fraudulently signed another authorized person's name on mortgage documents to expedite foreclosures.

Brown pleaded guilty to a federal charge in Florida last year and reached a plea agreement on related state charges in Missouri.

Michigan Attorney General Bill Schuette recently reached a $2.5 million civil settlement with the parent company of DocX, a mortgage processing company run by Brown.

Train cars derail in Saginaw County

SAGINAW TOWNSHIP — Authorities say five train cars hauling grain derailed over the weekend, creating a mess along tracks in Saginaw County. reports the accident happened Saturday in Saginaw Township, about 85 miles northwest of Detroit.

No injuries were reported.

The grain was being hauled by a train owned by Saginaw-based Lake State Railway from the Hemlock area toward Saginaw.

The cause of the derailment is under investigation.