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LPS signs off on another robo-signing settlement

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Real estate information and technology company Lender Processing Services Inc. has agreed to pay $35 million to resolve criminal fraud allegations in connection with a six-year scheme involving more than 1 million fraudulently signed mortgage documents, the U.S. Department of Justice said.

The settlement follows the guilty plea in federal criminal court of Lorraine Brown, the former president of DocX LLC, a now-defunct subsidiary of LPS, to one count of conspiracy to commit mail and wire fraud. Brown has also pleaded guilty to state criminal charges in Missouri and Michigan related to the robo-signing scandal.

As part of the agreement, LPS will pay $20 million to the U.S. Marshals Service and $15 to the U.S. Treasury, LPS said.

The company recently agreed to a $120.6 million settlement with attorneys general of 46 states and Washington, D.C., to resolve similar robo-signing allegations. Earlier this month, LPS announced it had a legal reserve balance of $223 million to cover these and other settlements, the company said.

"The conclusion of the Justice Department’s inquiry is another positive step for LPS," said Hugh Harris , LPS president and CEO, in a statement.

"Coupled with recent settlements with multiple state attorneys general, as well as other litigation, LPS has effectively dealt with its legacy issues related to past business practices and is squarely focused on delivering leading technology-driven solutions to enable the mortgage industry to meet its new requirements."

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