Colorado AG Claims Victory in Fighting a Case Against Deceptive Foreclosures
Colorado’s Attorney General says she has won a procedural victory in a case that allows her to go after a firm she says inflated foreclosure costs on Colorado homebuyers.
Attorney General Cynthia Coffman said in a statement today that in the case State vs. The Castle Law Group, the Colorado Supreme Court held that she can introduce critical evidence at trial to demonstrate allegations that the Castle Law Firm used affiliated businesses to artificially inflate foreclosure-related costs.
Coffman alleges that the Tennesse-based Castle Law Group and its principals, in concert with affiliated foreclosure-related businesses, systematically charged inflated and deceptive costs for routine services necessary to complete home foreclosures, while falsely representing that those costs were “actual, reasonable and necessary.”
The inflated costs — estimated to exceed $12 million — were passed on to homeowners, lenders, investors and taxpayers. Attorney General Coffman alleges that all of the defendants shared in these illegal profits.
“We intend to prove at trial that these defendants took advantage of the foreclosure process to line their pockets,” Coffman said in the statement. “This case is about ensuring the fairness and integrity of the foreclosure process, including for homeowners at risk of losing their homes. I look forward to proving my allegations at trial and holding these defendants accountable.”