Nevada takes deal in lender fraud civil suit

Nevada took a settlement Friday of nearly $5.6 million and dropped a consumer-fraud lawsuit against the former Lender Processing Services Inc., which
Published: February 15, 2014
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— Nevada took a settlement Friday and dropped a consumer-fraud lawsuit against a mortgage services firm 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.

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.

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

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

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.


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