Whistle-Blowing Lawyer Rats Off Foreclosure Firm

Two of Colorado’s largest housing foreclosure law firms are now in the cross hairs of the State Attorney General for allegedly fraudulent billing practices.

Attorney Susan Hendrick used to work for the law firm, Aronowitz & Mecklenberg. She has testified under oath that her former employer made millions of dollars by padding its legal bills on housing foreclosures. Those bloated bills that weren’t paid by homeowners ended up being charged off to the taxpayers. Hendrick also alleged that the law firm destroyed evidence subpoenaed by prosecutors during their investigation of the law firm’s practices.

Attorney Robert Aronowitz and his attorney daughter and son-in-law own a private firm which posts foreclosure notices. State investigators say they believe the law firm and the private posting firm were used to inflate foreclosure fees many times above the customary amounts.

Hendrick also testified about the second firm, The Castle Law Group. The two firms have handled 90% of the state’s foreclosures over the past few years. Among other allegations being made are that the two law firms manipulated State Legislators into passing legislation that ended up more than doubling the law firms’ already artificially inflated legal fees.

The Denver Post has been aggressively investigating and reporting details of this story.
Their latest revelations are posted here…. and here.

 

 

 

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About

Ward Lucas is a longtime investigative journalist and television news anchor. He has won more than 70 national and regional awards for Excellence in Journalism, Creative Writing and community involvement. His new book, "Neighbors At War: the Creepy Case Against Your Homeowners Association," is now available for purchase. In it, he discusses the American homeowners association movement, from its racist origins, to its transformation into a lucrative money machine for the nation's legal industry. From scams to outright violence to foreclosures and neighborhood collapses across the country, the reader will find this book enormously compelling and a necessary read for every homeowner. Knowledge is self-defense. No homeowner contemplating life in an HOA should neglect reading this book. No HOA board officer should overlook this examination of the pitfalls in HOA management. And no lawyer representing either side in an HOA dispute should gloss over what homeowners are saying or believing about the lawsuit industry.

1 thought on “Whistle-Blowing Lawyer Rats Off Foreclosure Firm

  1. anonymous

    E-mails provided by investigators in court records indicate the state legislators who pressed for the laws — current House Speaker Mark Ferrandino, D-Denver, and Sen. Morgan Carroll, D-Aurora — were unwitting accomplices who believed they were aiding consumers.

    “accomplices”, yes.

    “unwitting”, my arse.

    Reply

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