Judge Orders Foreclosure Law Firm to Pay $1.8 million for Fraudulent Billings to Desperate Homeowners

by San Antonio Attorney

A foreclosure attorney in Denver has been fined $1.8 million for charging non-existent insurance policies to numerous homeowners facing foreclosure.

The law firm of Robert Hopp Jr.  charged customers combating foreclosure for insurance policies that were not actually issued and overstated the cost of some that were issued, according to the Colorado Attorney General’s office.

The judgment passed down a week ago by Denver District Judge Shelley Gilman is the most recent in many of cases the Colorado state filed three years ago against firms that focused in foreclosures and apparently stuffed their bills for expenditures that were eventually borne by homeowners, banks processing the foreclosure and agencies carrying federal insurance paid by taxpayers to cover the costs.

Homeowners fighting to save their homes did not have any choice other than to pay the billings in order to avoid foreclosure, and there was no standard procedure to contest any of the charges lawyers said they had to pay.

Many foreclosure firms had settled the lawsuits filed against them.  But the biggest law firm involved in the fraud, The Castle Group, though already closed, is still entangled in a spiteful fight in court against the state and the allegations of fraud filed against Larry Castle and the law firm.

Hopp allegedly overstated the expenses of consumers on an estimated 2,200 foreclosure cases they handled from 2008 to 2014.

Colorado Atty.  General Cynthia Coffman said that the foreclosure law firms’ misconduct damages the people’s trust in the legal profession.  The heavy penalties passed down by the court are fair, and meant to be a strong prevention to those else who would like to victimize homeowners who are about to lose their homes.

Including the Hopp judgment, a total of seven law firms were fined or have settled.   Only the The Castle Group lawsuit is unresolved.

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