Press reports and court documents reveal that on Wednesday June 24, 2009 Danny N. DeGrande and John M. Scherling were charged in a 29 count indictment which accused them of committing widespread mortgage fraud involving $1 million worth of mortgage loans taken out in 22 properties in Pueblo, Colorado. In each property involved in the scheme DeGrande acted as the realtor and Scherling as the purchaser.

As part of the scheme both of them are accused of preparing applications which contained materially false and fraudulent representations, including details of assets, down payments and source of income. In addition they disguised the extent of Scherlings mortgage liabilities by submitting applications for multiple loans within days or weeks of each other. Monies from the scheme were disbursed to an account in the name of Core Limited, LLC which was controlled by Scherling.
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Additional Materials

• Indictment
• DeGrande Realtor License Details
• DeGrande license revocation order
• Rocky Mountain News Audio Slideshow [you will leave this site]
• Rocky Mountain News Article about DeGrande [Link] [PDF]

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The properties listed in the indictment are:

1216 Beulah Avenue, Pueblo
1218 Beulah Avenue, Pueblo
1225 Beulah Avenu Pueblo
1420 Cedar Street, Pueblo
921 E. 7th Street, Pueblo
2222 Balboa Road, Pueblo
3801 Farabaugh Lane, Pueblo
3805 Farabaugh Lane, Pueblo
916 S. Harmony Drive, Pueblo
920 S. Harmony Drive, Pueblo
2507 E. Orman Avenue, Pueblo
600 W. Arroyo Drive, Pueblo
1937 Carteret Avenue, Pueblo
1929 Euclid Avenue, Pueblo
1728 Evans Avenue, Pueblo
1905 E. Evans Avenue, Pueblo
3939 Lancaster Drive, Pueblo
716-718 Clarion Drive, Pueblo
1909 & 1911 Jones Avenue, Pueblo
3930 Devonshire Lane, Pueblo
3301 Lancaster Drive, Pueblo
1623 Wabash Avenue, Pueblo

Pictures Courtesy of The Rocky Mountain News (now closed)

 
Danny DeGrande - on right                           DeGrande’s former golf course home

The Pueblo Chieftain quotes Jeffrey Dorschner, a spokesman for the U.S. Attorney’s office, as saying “Even by Denver standards, I think this is a big case,”

Previous newspaper reports are quoted as saying that DeGrande’s activities caused more than 150 foreclosures and caused the head of the Colorado Department of Real Estate to say his dealings were “revolting”.