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Mortgage Litigation News

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US Trustee Files Brief Alleging Systematic Fraud in Bankruptcy Courts

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The US Trustee's Office recently filed a post-trial brief in bankruptcy litigation in the U.S. Bankruptcy Court in New Orleans seeking sanctions from foreclosure management firm Lender Processing Services, Inc.
 

The United States Trustee for Region 5 filed a post-trial brief on February 1, 2011 seeking sanctions against Lender Processing Services for abuse of legal process, providing materially misleading testimony.  The brief is a useful document for attorneys seeking sanctions against servicers for bad faith conduct to prevent an abuse of process under 11 USC 105(a).

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