CO AG Indicts Mortgage Company and its Principals

John Suthers, Attorney General for Colorado in a press release announced the indictments of Alternative Lending of Colorado, John W. Dale III, the company’s General Partner and April A. Bigler, the company’s Senior Loan Originator.

The indictment was filed in Fremont County District Court and states the April A. Bigler, 29, from Pueblo West engaged in trade practices that were deceptive in native. The top originator for Alternative lending misrepresented loan interest rates and further provided borrowers with quotes that did not include what the taxes and insurance costs involved in the loans she was making. Ms. Bigler is also accused of delaying borrower mortgage loan closings in order to pressure borrowers into signing the mortgage. The indict further states that Ms. Bigler engaged in appraisal inflation by contacting Appraiser to over state the value of the homes in which she was working with borrowers on. The result of the inflated values left the borrowers with homes that were undervalued with principal mortgage balances higher than what the home was worth. Ms. Bigler never attended the closings in which she was the originator of the mortgage loan making it impossible for borrowers to consult her on the terms of the loan, including the inflated appraisal values and the inflated incomes values on the final mortgage applications. Ms. Bigler failed to provide her borrowers with accurate, timely and complete disclosures as well. The result of Ms. Biglers actions resulted in forty four percent of her borrowers falling into or having had foreclosure proceedings filed against them.

John W. Dale III, 64 and Alternative Lending of Colorado’s General Partner is accused in the indictment of knowing the activities of Ms. Bigler and of her misconduct. Mr. Dale made no attempted to stop Ms. Bigler and took no disciplinary action against Ms. Bigler even though he was aware.

The Colorado Office of the Attorney General started to investigate Alternative Lending of Colorado and Ms. Bigler after receiving over fifteen complaints from homeowners in regard to the misrepresentative and contact of Ms. Bigler. The investigation centered on homeowners who lived in Canon City and purchased or refinanced a home between 2004 and 2008.

The Attorney General’s Office is seeking for the victims of this white collar restitution, civil penalties, return of proceeds that were received unfairly, and an injunction barring both Ms. Dale and Ms. Bigler from engaging in fraudulent and deceptive lending practices in the future. The injunction is included against Alternative Lending of Colorado as well.


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