The Castle Law Group — the state's largest foreclosure firm — did not systematically charge inflated and deceptive costs for routine foreclosure services, a Denver judge has ruled.

The civil lawsuit was originally brought by the Colorado Attorney General office. But in a ruling released this week after a three-week bench trial, Denver District Judge Morris Hoffman ruled that the firm and other companies did not work in concert to inflate the foreclosure costs for routine services.

“The court said that Castle Law was providing critical legal service to the most sophisticated legal clients in America,” said Larry Pozner, partner in the Denver firm Reilly Pozner LLP who represented The Castle Law Group and its owners, Larry and Caren Castle.

The firm was ordered to pay a $119,500 penalty for failing to disclose to Fannie Mae and Freddie Mac that it had made a profit in service fees when it was only supposed to charge "actual" fees for third-party costs, the ruling says.

Read more at Denver Business Journal.