U.S. Probing LPS Unit Docx LLC: Report REUTERS

By REUTERS Published: April 3, 2010
Reuters

CHICAGO (Reuters) – A unit of Lender Processing Services Inc, a U.S. provider of paperwork used by banks in the foreclosure process, is being investigated by federal prosecutors, the Wall Street Journal reported on Saturday.

Citing people familiar with the matter, the newspaper said a government probe into the business practices of the LPS unit was “criminal in nature.” According to the report, the probe was disclosed in LPS’s annual report in February.

The subsidiary being investigated is Docx LLC, which processes and sometimes produces documents used by banks to prove they own mortgages, the report said.

According to the report, among Docx documents being reviewed was one that incorrectly claimed an entity called “Bogus Assignee” was the owner of the loan.

The report cited LPS spokeswoman Michelle Kersch as saying that the “bogus” phrase was used as a placeholder and that some documents had been “inadvertently recorded before the field was updated.”

(Writing by James B. Kelleher)

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Sheriff Joe Arpaio’s chief deputy’s home foreclosed

Sheriff Joe Arpaio’s chief deputy’s home foreclosed

by JJ Hensley – Apr. 2, 2010 10:36 AM
The Arizona Republic

The home of Maricopa County Sheriff’s Chief Deputy David Hendershott will be sold at a foreclosure auction in June, according to county records.

The 4,500-square-foot home in north Peoria is being sold to cover the balance of a $774,500 note Hendershott and his wife, Anna, took out on the home in 2006.

Hendershott and his wife originally bought the home in 2001.

County treasurer’s records indicate the home had a value of $493,500 according to 2009 tax records.

Hendershott oversees the day-to-day operations of the Sheriff’s Office, which has an annual budget of $270 million.

It’s not the first time Hendershott has encountered financial problems.

Public records show he and his wife filed for bankruptcy protection in 1986 and 1997, and they had tens of thousands of dollars in debt discharged. The couple also owed at least $69,766 in unpaid state and federal income taxes from 1986 to 1992, documents filed with the Maricopa County Recorder’s Office show. Hendershott blamed his tax problems on bad financial advice, and he said he eventually paid the debt. The state tax liens of $14,915 were released in 1995 and 1996, while the IRS liens of $54,851 were released in 1998.

Hendershott did not return a call for comment Friday morning.