Colorado’s Castle law firm is at the center of a hot legal battle, which accuses the firm of reaping millions in illegitimate profits from banks and real estate investors. The attorney general’s office stated that Larry Castle and wife Caren had little trouble padding their billings and reaping millions of dollars from affected homeowners.
State attorneys suing the Castle law firm allege that the company exited the mortgage crisis $12 million richer due to price inflation.
Charges against the firm allege that the firm inflated legal notice pricing on homes facing foreclosure and conspired with its competitors and conspiring companies to fix prices at a much higher rate.
Assistant Attorney General Erik Neusch states, “A law firm should not be able to cheat the system, claim false and misleading costs, and profit against investors, homeowners and their banking clients.”
Posting prices were fixed at $125, up from the normal cost of $40, according to the July 2014 civil suit. The case alleges that the firm conspired with Aronowitz & Mecklenburg law firm to inflate prices. Aronowitz & Mecklenburg agreed to a $10 million settlement.
Castle’s personal accountant is the owner of Absolute Posting, the company in charge of the postings. The Castle’s are said to own an interest in the company.
Castle is accused of forming a title company to further defraud clients by charging for title policies never issued. The firm is also accused of charging for work normally charged in foreclosure fees.
Denver District Judge Morris Hoffman is presiding over the case. The three-week trial came to a close on Friday. Hoffman is not expected to make a decision on the case until next month.
Castle’s lawyer, Larry Pozner, states that there was a frenzy in the industry to get the job done as quickly as possible. He states that the firm’s clients were happy to pay the higher rates to get the title cleared quickly. He states that his client was meeting a demand in the industry.