Convicted Real Estate Ponzi Scam Operator 'Buys Out' Of Prison Time; Deal For Victims' Restitution Calls For Installment Payments With $100K Down

In Denver, Colorado, the Denver Post reports:

• Admitted fraudster Xavier Duran bilked a Denver police officer's widow and others out of more than $1 million, but he won't necessarily serve prison time. The deal prosecutors struck Tuesday with Duran — a guilty plea on one felony securities-fraud count in exchange for a suspended sentence and restitution payments — means victims such as Kelly Young could recoup some of their losses.



• Young lost nearly $800,000 in the death benefits and charitable contributions she collected after her husband, Detective Donnie Young, was shot to death in 2005 while working security off duty.



• "It's a double-edged sword," Young said of the plea deal. "He basically stole a lot of money. If he were to be sent to prison for 12 years, we'd never get any of the money back."



• Duran's plea came just as lawyers were selecting a jury. Young said she was relieved that the case wouldn't go to trial. Eight other charges related to theft and racketeering were dropped in the deal. Duran, 45, will be formally sentenced Jan. 6.



• Chief Deputy District Attorney Joe Morales stipulated to a sentence that would keep Duran out of prison as long as he complies with strict economic probation and keeps up with restitution payments. The felony will remain on his record.
  Morales said he's asked for an immediate payment to Young.



• "To stay out of prison, he has to come in with $100,000 cash. After that, he'll have to pay the rest of the restitution over time," Morales said. "It was enough that I could justify taking a chance and giving him a break."



• Duran in 2006 told Young and other victims — including another officer's widow, Young's sister and a newly divorced woman — that he would use the money they invested to buy, fix up and rent run-down properties. "He liked to take advantage of women who were in unfortunate circumstances," Morales said.



• He represented himself as a former real estate broker now acting as an investment adviser offering a risk-free opportunity, according to Duran's indictment. What he didn't disclose was that new investments were paying off old investors as well as paying for Duran's personal expenses. In reality, his business was failing, and he was losing properties to foreclosure.

For more, see Con man to pay money back to stay out of jail.