The widow of slain Denver police Detective Donnie Young has been swindled by a real estate investor out of $776,700 in life insurance benefits and donations after her husband’s death, according to a grand jury indictment.
The indictment, announced Thursday in Denver, said Young’s widow, Kelly Young, invested $794,000 with Xavier Joseph Duran but was repaid only $17,300 by him.
In addition, Young’s sister, Tracy London, invested $62,999 with Duran, none of which was repaid, according to the indictment.
The Denver district attorney’s office said Duran, 43, was indicted on a count of racketeering, four counts of securities fraud and three counts of theft for allegedly stealing more than a million dollars from Colorado investors, including Young and London.
Duran was arrested Wednesday in Addison, Texas, and will be extradited to Denver to face the charges.
Donnie Young was ambushed May 8, 2005, as he provided security at the Salon Ocampo social hall, 1733 W. Mississippi Ave. Raul Gomez-Garcia was convicted of second-degree murder and sentenced in October 2006.
According to the grand jury, in May 2006, Kelly Young met another widow of an officer while attending National Police Week events in Washington, D.C. That woman, the widow of a Fremont County deputy, was the Colorado chapter president for COPS — Concerns of Police Survivors Inc.
Young asked the woman, Sheryl Schwartz, whether she knew anyone with whom Young could invest money. Schwartz introduced Young and London to Duran, whom Schwartz had known in high school.
Duran’s pitch to the women, according to the grand jury, was that he used investors’ money to purchase properties that were “run down” or in foreclosure. He said that by using investors’ money to pay for the properties, he held them “free and clear” without loans or other encumbrances.
Young and London believed that Duran renovated the properties and then rented them and that his profits were derived from the rents, said the indictment. It said Duran promised Young and London a return on their investments between 4 percent and 10.75 percent.
Duran was actually using new investors’ money to pay off prior investors, to pay personal expenses or to make payments on other business ventures — and taking out loans on some of the purchased properties, the indictment alleged.
It’s not the first time Kelly Young has been victimized since her husband’s death.
She and her husband purchased a home shortly before he was killed, only to battle with the previous owners to take title.
Later, Kelly Young learned that the previous owner had mortgaged the home for more than it was worth.
Young’s attorney in that case, John Trueax, said it is still not resolved. Trueax said Kelly Young declined to comment on the case against Duran.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com
