The first of many

This six hundred-count indictment is exactly what the Obama administration was hoping to prevent with its $20 billion wrist slap of the banking industry:

The 606-count indictment alleges that the two title officers, Gary Trafford and Gerri Sheppard, directed employees under their supervision to forge their names on foreclosure documents, then notarize the forged signatures, so that it appeared that the pair actually signed the documents.

The pair then allegedly directed the employees to file the fraudulent documents with the County Recorder’s office in Clark County, Nevada. The grand jury found “probable cause” that the alleged scheme “resulted in the filing of tens of thousands of fraudulent documents … between 2005 and 2008,” said Nevada Chief Deputy Attorney General John Kelleher.

This is all the result of the banks attempting to fraudulently fill in the blanks caused by their attempt to evade the county title system. And, as Karl Denninger has noted, this should be the first of many, many more prosecutions of banking executives and their employers.