Foreclosure fraud whistleblower found dead

A notary public who signed tens of thousands of false documents in a massive foreclosure scam before blowing the whistle on the scandal has been found dead in her Las Vegas home.

NBC station KSNV of Las Vegas reported that the woman, Tracy Lawrence, 43, was scheduled to be sentenced Monday morning after she pleaded guilty this month to notarizing the signature of an individual not in her presence. She failed to show up for her hearing, and police found her body at her home later in the day.

It could not immediately be determined whether Lawrence, who faced up to one year in jail and a fine of up to $2,000, died of suicide or of natural causes, KSNV reported. Detectives said they had ruled out homicide.

Lawrence came forward earlier this month and blew the whistle on the operation, in which title officers Gary Trafford, 49, of Irvine, Calif., and Geraldine Sheppard, 62, of Santa Ana, Calif. — who worked for a Florida processing company used by most major banks to process repossessions — allegedly forged signatures on tens of thousands of default notices from 2005 to 2008.


Trafford and Sheppard were charged two weeks ago with 606 counts of offering false instruments for recording, false certification on certain instruments and notarization of the signature of a person not in the presence of a notary public. You can read a .pdf version of their indictment here.

Police said at the time that the alleged scam had thrown into question the legality of most Las Vegas home foreclosures in the past few years, leaving many people living in foreclosed-upon homes that they unknowingly don't actually own.

"I would suggest you review your documents and bring them to an expert and an attorney," said John Kelleher, chief deputy attorney general for Nevada's fraud unit.

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Another scam on home owners. Its a wonder we all are not living in caves and huts at this point.

Thanks Washington!

  • 18 votes
#1 - Tue Nov 29, 2011 6:02 PM EST

Please explain to me how Washington would be to blame??

  • 22 votes
#1.1 - Tue Nov 29, 2011 6:11 PM EST

my thoughts exactly, mdsj. please do BB. if by scam you mean that by private sector businesses like banks, ["processing companies"] and notary publics, then, yes, i agree. another scam perpetrated on the People. but that would be "on the People, by the People," not the big bad government...which is of the People.

i know! the whole "the People" thing is tricky, right?

  • 15 votes
#1.2 - Tue Nov 29, 2011 6:58 PM EST

This had nothing to do with government. This company was 'outsourced' by the bank. The bank. They were hired by the bank to 'speed' up foreclosures. The banks conspired with Congress to change bankruptcy laws so they could foreclose without the homeowner having any rights.

So the banks get what they deserve.

  • 31 votes
#1.3 - Tue Nov 29, 2011 7:14 PM EST

Of course it has to do with the gov! They did not look into anything till it came up bad. Think what we would be eating if the gov did not constantly inspect! the whole financial system needs constant supervision rather than letting the politicians scratch backs and talk outa the sides of their mouths while pocketing cash for their trouble.

  • 15 votes
#1.4 - Tue Nov 29, 2011 7:25 PM EST

But, like, we need like, LESS regulation.....maybe NO regulation...because the problem here, obviously, is like, the bank isn't actually going to be able to get away with it, probably. Like, how are you supposed to make a profit if you're s'pose to treat people fair? /sarc

  • 22 votes
#1.5 - Tue Nov 29, 2011 7:34 PM EST

Washington is to blame THEY have deregulated banks and repeatedly fail to enforce the few remaining regulations that are left. They (both party's) have systematically whittled away at all laws that protect the people in favor of the big corps- banks being a huge part of that because we have a system that increasingly encourages our elected officials to ignore the vast majority of the population who can't afford any kind of representation ( campaign contribution or more accurately called a bribe) in favor of those who can afford it, which is vary vary few yet the laws are made for benefit of those few no matter the damage it does to the rest of us. They are so comfortable in this that they don't even try to hide it anymore. Like the the royalty of old they feel like they are entitled to a life on the high hog and we the people owe that to them. It just baffles me to no end that so many people are still buying the bull crap that they are selling. This whole two party system is being used to divide us and conquer us. It does not matter what party you vote for dem or rep they are no different they have the same agenda. Do not be fooled by the route that they take, it is part of the dividing process. Although they may seem to be trying to take the country down different roads there are always more than one route to every destination ALL ROADS LEAD TO ROME . And like Rome if we continue down these vary different, but so identical paths of empire building we to will fail America Will collapse under crushing debt just like every single empire in history!!!

  • 18 votes
#1.6 - Tue Nov 29, 2011 7:41 PM EST

This woman knew too much.

.

  • 19 votes
#1.7 - Tue Nov 29, 2011 8:31 PM EST

How many of those loans were "government backed" FHA/VA/HUD loans? Oh but the government isn't involved.. yeah right.

  • 10 votes
#1.8 - Tue Nov 29, 2011 8:38 PM EST

As a notary, she takes an oath to never notarize any signature on a document unless the signer is actually present. If she had not been willing to falsely notarize these documents, then the whole scam could not have happened because notarized signatures were required. Requiring notarized signatures is part of the process that is supposed to prevent frauds like this. Up to a year in prison and a fine seems pretty light for enabling a scam like this (apparently the judge was strongly influenced by her blowing the whistle on the operation?)

  • 6 votes
#1.9 - Tue Nov 29, 2011 10:50 PM EST

Once again, evil California is the centerpiece of another massive real estate fraud. Only this time it is about the robo-signing of foreclosure papers.

Over fifty years ago in the semi-arid desert of Southern California, real estate developers stapled fruits to trees, planted imported palm trees, and filled swimming pool with stolen water from Owens Valley to sell the 'California Dream' to the unsuspecting Easterners. They even conjured up the Rose Parade to lure midwesterns to Southern California to view the floats decorated with imported flowers and thereby receiving the impression that the warm desert weather, abundance of flowers, and California real estate were synomyous.

With the help of Fannie and Freddie Mae, California's real estate developers had concocted several scams that had people line up and camping over night to bid on a chance to buy over-priced new houses. Naturally, the National Association of Realtors(NAR) was always behind the scene brainwashing people with the notions that real estate prices never go down; kick your landlord to the curb; buy a piece of the 'American Dream' and homeownership is the path to becoming millionaires.

In 2007 the day of reckoning had cometh. On Judgment Day, the greedy house flippers, slimy real estate agents, crooked apprasiers, conniving lenders and evil WallSt banksters were punished and sentenced. Many were rebuked, and then casted into the unemployment lines. Others were forced to beg for forgiveness of their soul, clemency and mercy. But as it is written, the wages of sin is death and Lawrence was paid handsomely for her real estate sins.

  • 4 votes
#1.10 - Tue Nov 29, 2011 11:04 PM EST

The problem is more that because banks have control over our government, courts, cops, we live in a society run by criminals. The entire banking industry is nothing but a colossal ponzi scheme - so yes government is to blame for not arresting all of them. If you blame the government, you are directly blaming the banks cause the government doesn't do anything with approval from the bankers.

  • 8 votes
#1.11 - Tue Nov 29, 2011 11:15 PM EST

Regulation, without PROPER REGULATIONS there will always be greed and theft. We have enough proper regulations on the books right now, but we have fewer and fewer people ENFORCING these regulations. When congress strips funding of government offices and staff there is less people to do the work so things do not get looked into even with whistle blowers proof of corruption. So when the teabag republicraps tell you government is not working just remember THEY WERE THE ONES FIRING THOSE WORKERS MAKING SURE REGULATIONS WERE ENFORCED.

  • 5 votes
#1.12 - Wed Nov 30, 2011 12:35 AM EST

This crap is happening in pretty much every state, look up MERS, the banks tossed out the legal note on the vast majority of homes bought 2003-2008, there are tens of millions where the bank simply cannot legally produce any record they own the property, hence they resort to shady practices like this... In every state and most likely 90% of all foreclosures nationwide.

  • 4 votes
#1.13 - Wed Nov 30, 2011 12:44 AM EST

FatCat, normally, I do not like what you post, but in this case it was very well written. My only exception is that those involved in this HUGE FRAUD did not get any punishment. For example the 91 MILLION Dollars stolen at Fannie May by Raines has not been paid for by the crooks. Yeah, Fannie May paid, BUT the thieves go free. Some poor SOB robs a store for 20 dollars and goes to prison for years, these thieves robbed billions and get a pat on the back. Something is wrong in the USA and that is for sure. 

  • 8 votes
#1.14 - Wed Nov 30, 2011 5:04 AM EST

I guess there might have been some more going on in her life. I just find it hard to believe that someone would off themselves over a year in jail and a $2000 fine. Also, I know she "blew the whistle" but this woman ruined (illegally nonetheless) countless peoples lives with BS foreclosure papers over years of time and she only gets a year and a $2000 fine? Was she speeding or committing fraud? Seems a little light for fraud.

  • 2 votes
#1.15 - Wed Nov 30, 2011 7:19 AM EST

This woman just happens to drop dead the day of sentencing by suicide or natural cause.

I can't believe it myself. I'm going to go make a tinfoil hat right now.

  • 6 votes
#1.16 - Wed Nov 30, 2011 7:47 AM EST

If she had not been willing to falsely notarize these documents, then the whole scam could not have happened because notarized signatures were required.

This fraud was going to happen with or without her. If she was willing to do it, they would have been able to find another person willing to do it as well.

  • 5 votes
#1.17 - Wed Nov 30, 2011 7:49 AM EST

Listen to Bobby 3201839, he's trying to tell us the truth.

  • 1 vote
#1.18 - Wed Nov 30, 2011 8:59 AM EST

Think she knew a little too much.

  • 4 votes
#1.19 - Wed Nov 30, 2011 9:06 AM EST

All the while the police are arresting and pepper spraying OWS participants because they are disturbing the peace. White collars get police protection because the 99% might exact justice when our government is unwilling.

  • 7 votes
#1.20 - Wed Nov 30, 2011 10:00 AM EST

It might be who she was going to testify against .....

  • 1 vote
#1.21 - Fri Dec 2, 2011 11:53 PM EST
Reply

She died from a possible susicide? Just a little typo, folks!

  • 8 votes
Reply#2 - Tue Nov 29, 2011 6:05 PM EST

I think we knew what was meant, but thanks for being the "anal editor" on this one! :o)

  • 2 votes
#2.1 - Tue Nov 29, 2011 10:51 PM EST
Reply

She had nothing to worry about. It was all the fault of homeowners who bought more than they could afford //Sarc.Off

  • 9 votes
Reply#3 - Tue Nov 29, 2011 6:21 PM EST

yeah your right..will you sell me car i would like a Lamborghini..if that ok with you bank guy.the government told me you will sell that car to me ..and later get it back,,is this right

  • 3 votes
#3.1 - Tue Nov 29, 2011 6:25 PM EST

yeah your right..will you sell me car i would like a Lamborghini..if that ok with you bank guy.the government told me you will sell that car to me ..and later get it back,,is this right.you do know i have no money.. but thats ok .you do

  • 1 vote
#3.2 - Tue Nov 29, 2011 6:25 PM EST

what the hell are you trying to say? Can you try pasting this into some program with a spell and grammar checker?

  • 11 votes
#3.3 - Tue Nov 29, 2011 8:44 PM EST
Reply

newt are you hiding in that house

  • 4 votes
Reply#4 - Tue Nov 29, 2011 6:22 PM EST

No but I'll bet ya slimy Dirty Harry is.

    #4.1 - Wed Nov 30, 2011 5:14 AM EST
    Reply

    Whistle-blower commits suicide,,, Usually they die by flying off a cliff,,, I wonder if the judge who is giving flack to Citi Bank is going to die in his home or car of mysterious circumstances,,, It is no wonder the major money players who created this financial crisis haven't been sent to jail yet,,, The ones who have the info to convict are fearing for their lives,,,

    • 25 votes
    Reply#5 - Tue Nov 29, 2011 6:25 PM EST

    Yep. Happens all the time but most gloss over. Remember Bruce Ivins? Ft Detrick scientist? Suicided. Ms Palfrey-DC madam? Suicided(how many women hang themselves?) Matt Simmons-heart attack and critic of BP crimes in the Gulf. Loose lips sink ships. When you can't bride or threaten...you croak em

    • 2 votes
    #5.1 - Wed Nov 30, 2011 1:04 PM EST
    Reply

    Foul play?

    • 10 votes
    Reply#6 - Tue Nov 29, 2011 6:26 PM EST

    Foul play?

    • 4 votes
    Reply#7 - Tue Nov 29, 2011 6:26 PM EST

    Anybody out there think the main witness met with an unfortunate, ACCIDENTAL suicide?

    • 19 votes
    Reply#8 - Tue Nov 29, 2011 6:28 PM EST

    Anybody out there think the main witness met with an unfortunate, ACCIDENTAL suicide?

    • 4 votes
    Reply#9 - Tue Nov 29, 2011 6:29 PM EST

    This is like none of the upper people at the FED had any knowledge of the 7 to 16 Trillion ( with a T ) Dollars in loans that were made after the crisis,,, A major portion to foreign banks,,,

    • 5 votes
    Reply#10 - Tue Nov 29, 2011 6:31 PM EST

    She was facing a $2K fine and some time in jail. Nah, this was "natural causes or suicide" my little pink arse!

    • 18 votes
    Reply#11 - Tue Nov 29, 2011 6:32 PM EST

    Really. What whistle blower kills themselves over $2K?

    • 7 votes
    #11.1 - Tue Nov 29, 2011 9:07 PM EST

    One who has ruined her reputation?

      #11.2 - Wed Nov 30, 2011 3:35 AM EST

      Linda, I think Billy was being a little sarcastic.

      She knew her reputation was shot when she blew the whistle, she probably didn't expect the "suicide" (that is sarcasm)

      • 2 votes
      #11.3 - Wed Nov 30, 2011 9:40 AM EST
      Reply

      OOPs, got the wrong house.

      • 2 votes
      Reply#12 - Tue Nov 29, 2011 6:32 PM EST

      why is there an Echo on here,,, LOL

      Echo,,,

      Echo,,,

      • 3 votes
      Reply#13 - Tue Nov 29, 2011 6:33 PM EST

      Hmmm...maybe it was suicide, or maybe the others that she outed decided to retaliate. I sure hope this isn't another 'mystery'....

      • 7 votes
      Reply#14 - Tue Nov 29, 2011 6:38 PM EST

      I guess "suicide" is what they're calling murder these days!

      • 2 votes
      #14.1 - Wed Nov 30, 2011 10:40 AM EST
      Reply

      Good! now the rest of them need to get busy offing themselves too.

      • 3 votes
      Reply#15 - Tue Nov 29, 2011 6:39 PM EST

      She died of a possible suicide?Makes you wonder how she died doesn't it?

      • 3 votes
      Reply#16 - Tue Nov 29, 2011 6:42 PM EST

      One of those '1000 ways to die' kind of things....

      • 1 vote
      #16.1 - Wed Nov 30, 2011 12:46 AM EST
      Reply

      for those of you blaming the government for the housing bust please show me the document that indicates a bank has to loan someone money they can not afford to pay back

      • 5 votes
      Reply#17 - Tue Nov 29, 2011 6:45 PM EST

      Ya know what I like is when your identity gets stolen and they give the thieves new cards and loans and then make the victim straighten it all out as though its their fault.

      • 4 votes
      #17.1 - Tue Nov 29, 2011 7:51 PM EST
      Reply

      For that matter show me a document that says any bank has to alter its verification process of earnings or show me one single document that orders a bank to make any loan to anyone for any reason.

      • 1 vote
      Reply#18 - Tue Nov 29, 2011 6:47 PM EST

      NY Times, 9/30/99 (it won't let me link the actual article but you can find it easily enough)

      In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

      The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

      Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

      • 6 votes
      #18.1 - Tue Nov 29, 2011 8:07 PM EST

      Nice!

        #18.2 - Wed Nov 30, 2011 10:59 AM EST

        stock holders

        The real smoking gun. Not that the Clinton Admin and Congress did not play a part, but stock holders control the company and are to blame, along with the CEO/Board of Directors, for any actions their company takes on their behalf.

        • 1 vote
        #18.3 - Wed Nov 30, 2011 4:53 PM EST
        Reply

        As for this woman dying who knows how it happened but it is too bad she couldn't share what she knew in open court it might have gotten to the bottom of things atleast at the bank she worked at

        • 3 votes
        Reply#19 - Tue Nov 29, 2011 6:49 PM EST

        Maybe thats why she's dead....

        • 3 votes
        #19.1 - Wed Nov 30, 2011 8:26 AM EST

        No kidding? Why do you think she was killed.

        • 1 vote
        #19.2 - Wed Nov 30, 2011 10:42 AM EST
        Reply

        I wonder what Alex Jones would say about this?

          Reply#20 - Tue Nov 29, 2011 6:55 PM EST

          Great fodder for the conspiracy theory mill. I see you're all up to the challenge.

          My condolences to her family.

          • 1 vote
          Reply#21 - Tue Nov 29, 2011 6:57 PM EST

          Not foul play. Suicide. Shot herself through the window in the back of the head from a nearby rooftop.

          • 13 votes
          Reply#22 - Tue Nov 29, 2011 7:19 PM EST

          LOL.

            #22.1 - Tue Nov 29, 2011 7:28 PM EST
            Reply

            It seems as though company notaries violate the law more frequently than not.

            The company which I retired from has a secretary who notarized documents for the employees of the company. Prior to retiring I had to fill out a ton of paperwork to get my pension and 401K money; having lost a large percentage when the market went down there wasn't much in the plan. Nevertheless, I took it in a lump sum payout. The company secretary notarized three copies of my "birth certificate" and also notarized the pension paperwork which my wife had to sign; however, my wife wasn't there when she notarized the paperwork. The secretary said that my wife didn't need to be there because she "knew" me. I later found out that the company secretary (notary) violated the law and was culpable of a third degree felony. I gave the V.P. at the location one of the copies of my "notarized" birth certificate and also informed him of the other violations so he could take action on the case. It's been almost nine months since I informed him of the violations and as far as I know the secretary still works there.

            • 6 votes
            Reply#23 - Tue Nov 29, 2011 7:20 PM EST

            So, Mal'achi, the secretary did you a favor by not requiring your wife to come in to your place of employment for a pretty unimportant little signature. Yes, its technically illegal, but you thought it worthy to rat her out and expect a Federal case to be made of it. Ain't you a sweetheart.?!

            • 5 votes
            #23.1 - Tue Nov 29, 2011 8:30 PM EST

            Excuse me, but illegal is illegal. He never said she did him a favor, nor did he ask for it.

            • 3 votes
            #23.2 - Tue Nov 29, 2011 8:51 PM EST

            jean pear

            Thank you; if Mike-3017660 read my entire post he should have read the part where I stated:

            "...I later found out that the company secretary (notary) violated the law and was culpable of a third degree felony..."

            Mike-3017760, I don't want to make a "federal case" out of it but as far as I'm concerned the V.P. I reported the violation to is now "just as guilty" and both the secretary and V.P. should be fired.

            • 3 votes
            #23.3 - Tue Nov 29, 2011 9:21 PM EST

            Mal'achi, your old enough to retire & never knew the rules about getting a paper notarized?

            • 2 votes
            #23.4 - Wed Nov 30, 2011 12:48 AM EST

            Mal'achi, I think you should go to the police and tell them that YOU conspired to get the secretary to FALSIFY a document. Ignorance is NO EXCUSE!!! SHAME ON YOU!!! You should be prosecuted and have your pension revoked. No question about it.

            You seem like the type of person that would forge your wife's signature to the documents. Does your wife know that a false Notary stamp was put on a paper with her name on it?

            You should remove all the religious symbols from your posts, it seems like you might be some sort of a crook yourself. Or is it the religious symbols that make you feel like it some rules are for you alone?

              #23.5 - Wed Nov 30, 2011 5:13 AM EST

              stc1993

              I'm not a Notary; the Notary should "know the rules".

              • 2 votes
              #23.6 - Wed Nov 30, 2011 9:23 AM EST

              MOSinEUR

              You stated: "...NO EXCUSE!!! SHAME ON YOU!!!..."

              You're right about the "NO EXCUSE" part but it should be directed to the secretary (notary); she's the one that broke the law, SHAME ON HER.

              Using your own words; "you also seem like the type of person" who retorts without reading and comprehending the original comment. If you read the part where I said, the notary also notarized the pension paperwork which my wife had to sign, however, my wife wasn't there when she notarized the paperwork several times, maybe it will sink in.

              • 2 votes
              #23.7 - Wed Nov 30, 2011 9:36 AM EST

              Report her to your state's board of Notaries. They govern the Notary Public's actions. She will be disciplined.

              • 2 votes
              #23.8 - Wed Nov 30, 2011 9:43 AM EST

              Mike-3017760

              You stated: "...Yes, its technically illegal...".

              Thank you.

              • 2 votes
              #23.9 - Wed Nov 30, 2011 9:46 AM EST

              Lizzie63

              I will; thank you.

              • 2 votes
              #23.10 - Wed Nov 30, 2011 9:48 AM EST

              The issue is not following the law .... as long as no one is trying to take someone's house without the legal documents. As for the 401k stuff, that was your money regardless, it was only an election - the need to have the wife sign is so she knew you took the lump sum not the pension - your wife could go after the secretary cause she did not consent to the transfer, but ..... is she? In the other case we are taking about forgery and fraud to create a document that doesn't exist and present it to a court to take someone's house - thats a little different no?

                #23.11 - Sat Dec 3, 2011 12:00 AM EST

                economics101

                I’d like to respond; however, I was advised not to make any future comments on the case until resolved.

                • 2 votes
                #23.12 - Sat Dec 3, 2011 8:00 PM EST
                Reply

                great news !! one less scumbag on earth..i am so friggin happy.!! wow..what a relief...hopefully those victims will get some money back,,,

                  Reply#24 - Tue Nov 29, 2011 7:29 PM EST

                  How could anyone make the comment "one less scumbag on earth"? Get your facts straight before you put remarks on here that are that cruel. She did not work for a bank and she had already admitted what she had done, NOTARIZED HER EMPLOYER'S signature, she did not forge anything!!

                  • 1 vote
                  #24.1 - Tue Nov 29, 2011 10:17 PM EST
                  Reply

                  thousands of cases where the banks sold loans [ and this is legal if done right] without the borrowers knowledge. [this is not legal] how hard is this to understand?

                  • 3 votes
                  Reply#25 - Tue Nov 29, 2011 7:29 PM EST

                  Unfortunately pretty hard for most people seahawks fan. A good percentage of the population are still in a trance. They were raised from the cradle to believe, like I was, that the government is there to serve the people and that is the way it was at one time. They are IN FACT responsible for the actions of the institutions that they are supposed to regulate. Sadly, they sold out long ago for cushy jobs that put them in positions of power with th associated high paychecks with these institutions after the voters come out of their haze long enough to kick them out of office. Face it, people are sheep, they graze on what little grass is left and never look up to see what is being done in their names. As long as they have a house to live in they really don't care if their neighbor is living under a bridge. They will support their chosen crook (all politicians are crooks, thieves, and liars to the last man and woman BOTH sides of the aisle) right up until the day that they are thrown out of their OWN homes. It's just the way it is. It's what they've been taught. Until people learn to stand up for someone else OTHER than themselves, things will never change. We can bitch about the government all we want but when they screw us we only need go as far as the bathroom mirror to see who is to blame, we voted them in and keep them in even when they get caught red handed screwing us. I really don't think there is a chance for this country. The so called crash was nothing more than a well engineered and executed theft offense against the middle class and then the victims were blamed for it and the sheep went baaaa. Until the Sheriff comes to THEIR door they will never wake up. It's a sad commentary on the human condition at best and complicity to a theft offense at worst. Happy Holidays to those of you that still have something to be happy about and my prayers to those of you that have nowhere left to celebrate the holidays. My screen name is my actual name and, if you live close and know me and are on hard times, I have a full pantry and would consider it an honor to be able to help you out.

                  • 4 votes
                  #25.1 - Tue Nov 29, 2011 11:40 PM EST

                  Sad commentary but spot on wlockridge.

                    #25.2 - Wed Nov 30, 2011 7:13 PM EST
                    Reply
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