Alterie chose to go to his Moonridge ranch in Colorado. However, he soon attracted unwanted attention from the Colorado authorities. In November 1932, Alterie was involved in a gangland shooting in Glenwood Springs, Colorado. In February 1933, as part of a sentencing agreement, Alterie agreed to leave Colorado and not come back for a period of five years. At this point, Alterie returned to Chicago. Over the next few years, he briefly returned to Colorado several times, but kept his residence in Chicago.