Brothers in murder-suicide facing slew of lawsuits, accused of running Ponzi scheme in Colorado
Two brothers, Grant and Greg Brunner, who died Nov. 28 in a murder-suicide case in Parker, were facing at least eight lawsuits accusing them of running a phony "fix-and-flip" real estate scheme that cost friends who lent them money an estimated $5 million over the last two years.
"They took the easy way out," said one investor who lost $200,000 but asked not to be identified. He said he fell victim to an "elaborate scheme."
In the numerous lawsuits, friends whose children went to school with Grant Brunner's children at area Catholic schools recounted knowing him and his family for years. They said Brunner approached them, mostly in 2022 and 2023, seeking investments in a fix-and-flip real estate deal, typically asking for $200,000 investment that would be repaid with 10% interest within two months. The investors say when it came time to repay them, Brunner had a multitude of excuses as to why the money was unavailable. He would then try to placate them by offering even more interest if they extended their promissory notes.
Ultimately, those who lent him money say they lost their investments.
One brother shot the other in the middle of the day on Nov. 28 near a Parker hotel, then turned the gun on himself. Parker police have not revealed who shot whom, or offered many details about their investigation. Court records show the brothers were due to appear in federal court that day to respond to one of the many lawsuits.
CBS News Colorado has learned the Colorado Attorney General's Office was in the early stages of investigating the brothers and their real estate company, SRE Capital, when the two men died. A spokesman for the attorney general's office said with the brothers' deaths, the state investigation is now closed.
Michael Drennen, a long-time friend of Grant Brunner, said he lost $225,000 to the brothers. He filed a lawsuit in October, trying to recover his investment.
"I have not recouped a single dime of that money," said Drennen. He recounted knowing Grant Brunner through youth athletics, as their sons played together.
"He was a friend. I consider him a friend," said Drennen. "Over the course of 12 years plus, I thought I knew the guy."
He said Grant Brunner approached him in 2022 about investing in a "fix-and-flip" real estate venture. Drennen was promised a 10% return on his investment. He said he received his original investment, plus interest, within a couple of months. Drennen now believes Brunner paid him with money taken from another investor in a Ponzi scheme scenario.
"He robbed Peter to pay Paul", said Drennen. He said when Brunner approached him a second time, he again invested $225,000 which he never got back. Drennen, who is planning to retire later this week, said the money was supposed to support his retirement.
"I'm angry. I am getting ready for retirement and that's a little chunk of my retirement nest egg going out the window."
He said he feels bad for other investors who lost even more than him and for the families of the Brunner brothers. Each was married and had children.
"I'm deeply saddened for the wives and children of Grant and Greg. The impact of what just happened and the chaos that they must be experiencing is unimaginable," said Drennen.
According to another lawsuit, a lifelong friend of the Brunners gave them nearly $3 million, but got nothing back.
Michael Carrigan, a former prosecutor who now represents Drennen, said, "These two gentlemen didn't exploit strangers like so many fraudsters, they purposely sought out friends who trusted them."
"That kind of interest rate in that period of time, something doesn't add up because no businesses run that way."
He said he doesn't know where the money went.
Drennen said he believes there are many more victims, who have not filed lawsuits or come forward.
"I'm hoping this interview opens the door for these families to come forward and talk about what happened to them," he said, "And at least be able to get it off their chest and find closure because I'm going to have trouble finding closure myself."
