Businesses can be liable in foreclosure scheme that reaped millions

Affiliated businesses owned by one of Colorado’s top foreclosure law firms can be held liable for millions of dollars in inflated costs the state alleges were siphoned in thousands of foreclosure filings during the height of the housing collapse, the state Supreme Court held.

In a 29-page ruling released Tuesday, the court determined that a Denver District Court judge erred in barring evidence Colorado Attorney General Cynthia Coffman’s office says will show a number of companies affiliated with the Castle Law Group were complicit in the scheme that relentlessly tagged on the overcharges.

The ruling gives Coffman’s office — which began the investigation in foreclosure billing practices in about 2012 under former Attorney General John Suthers — a critical victory in its civil lawsuit against Larry Castle, his wife, Caren, and the law firm they built into one of the largest handling foreclosures. The lawsuit was filed in July 2014 and has been embroiled in a quagmire of legal battles ever since.

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