Foreclosure Fraud: CO Mortgage Law Firm Loses Fake Fees Appeal

DENVER, CO —A group of related Colorado mortgage law firms indicted for charging phantom fees for almost 8,000 foreclosure clients will pay 2016 judgements more than $1 million after losing their case in the Colorado Court of Appeals.

Colorado Attorney General Cynthia Coffman pursued fraud charges against Robert J. Hopp & Associates and The Hopp Law Firm, their affiliated title companies, and Robert J. Hopp personally.

Investigators found the law firm was unlawfully billing its mortgage servicer clients between $200-$2,000 during foreclosures in violation of the Colorado Consumer Protection Act and the Colorado Fair Debt Collection Practices Act.

At the time, the AG's office compared the practices to "an automobile insurance agent charging and collecting an entire year’s policy premium for automobile insurance from acustomer just for preparing an insurance quote but where no policy is issued." Clients were charged four-figure fees for a simple title search, which usually costs $100.

In 2016, the judge imposed penalties of $2,291,000 ($1,000 per foreclosure) for violating the Colorado Consumer Protection Act and $1,374,600 ($600 per foreclosure) for violating the Colorado Fair Debt Collection Practices Act. The $3.6 million in penalties was reduced to $1.8 million due to a statutory maximum penalty cap. The court also awarded the Attorney General attorney fees and costs incurred in prosecuting the case, which will be added to the $1.8 million in penalties.

“I am very pleased that the Court of Appeals upheld the judgement against the Hopp law firms and their affiliated businesses,” said Coffman in a press release. “These defendants took advantage of vulnerable homeowners facing foreclosure, making it even more expensive for people to try to avoid losing their homes. Those that prey on Coloradans in crisis deserve to be held accountable.”

If you believe you have been a victim of fraud or are aware of fraudulent business practices, please file a complaint at stopfraudcolorado.gov, or call 800-222-4444.

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