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.