Did Toll-Harvey dispute spark investigation?

A heated dispute between Colorado Division of Real Estate Director Erin Toll and Sen. Ted Harvey on March 2, did not spark an investigation of Harvey and Harvey’s firm the next day, Toll’s lawyer said in a statement released on Monday.

Today, in response to inquiries from the media whether “logging” the investigation on March 3, was connected to the legislative events on March 2, Finger issues a press release on Monday. Barbara Kelley, DORA’s chief who forced the leave of absence on Toll, wrote in a legal document that Toll’s statement on Harvey being investigated was “factually inaccurate; demonstrated exceedingly poor professional judgement; and was a release of information (true or false) that possibly violated the Department’s Media Policy.” Kelley went on to write that Toll’s actions may have damaged the “credibility” of the real estate division and DORA.

Gag order limits Toll’s responses

“It is Erin’s desire to freely and frankly discuss this matter because Erin is a firm believer in open government,” Finger wrote in the release. “Unfortunately, as everyone should know, Erin has been gagged by an order of the Executive Director of the Department of Regulatory Agencies. She is allowed to say “no comment” and that “she has done nothing wrong.” Thus, Erin’s official comment to the press is that “she has done nothing wrong” and “no comment.”

But Finger went on to say as Toll’s lawyer that he wants to “assure the press and the public that there is no connection between the events a the legislature and process of opening an investigation.” He said that the “department and the press are fully aware” that last fall the division began looking into advertising practices of American Home Funding’s licensees and the companys’ principals concerning its advertising. Reportedly, the advertising looked like government documents when they were not.

“Thus, individuals at the company knew of the concern long before March 2, 2010,” Finger said. “There is also documentary evidence that Division’s concerns relating to the advertising did not end with that contact.” He said that a Feb. 1 communication from a division staff member “demonstrates this fact.” He said Toll, after being alerted to the “continued concern, immediately approved a formal investigations. It was Ms. Toll’s expectation that her subordinate staff, who are responsible for logging in the formal investigation, would timely act and perform the administrative task. That fact that the investigation was not logged until March 3, 2010, is not an indication that an investigation was not previously authorized or stated. The procedures that were in place within the Division allowed of ran investigation to occur without the officially logging of an investigation. Given this history it should be obvious that the events that occurred at the legislature on March 2, 2010 had no bearing on the decision to formally investigate. An investigation was called for and clearly was in the public interest. It has been Ms. Toll’s charge from the legislature to stop unfair or misleading practice by mortgage brokers and Ms. Toll has faithfully fulfilled her responsibilities in that regard.”

Harvey keeping mum on Toll’s investigation

Harvey, reached Monday evening, said he has not seen the release and he did not want to comment on it. However, he did say that he recalled an earlier correspondence from the real estate division that said American Home Funding needed to include some more routine information in its advertising to be compliant with rules. He said that correspondence made it clear that it was not an investigation, but a routine matter that could easily be remedied. “But I really don’t want to comment on this,” Harvey said. “There is an ongoing investigation and I should not get involved.”

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

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