It's very tough to say for sure what we'd do in that type of situation, but I think I'd have a hard time ignoring it completely. There's lots of room between doing nothing and making lots of noise about it. I suspect that I'd want to let someone know that it didn't go unrecognized. So I might ignore the fact that docs should have been reviewed in advance, give them at least the appearance of the benefit of the doubt and attach a note pointing out the flagrantly illegal notarization (although I probably wouldn't put it that way).
This may be SOP for them, but if they know that it wasn't fooling everyone, they might think twice about their process. In California, the penalties for completing a false certificate are pretty serious. It's a felony, and could include jail time. It might also be a good idea to include a copy of the Government or Civil Code that spells out the prohibition and the penalties, or at least a reference to where it can be found.
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