Bilked investors get little restitution
First distribution 0.4% of total losses
The first distribution of money from Valley Investments will amount to a tiny fraction of the amounts lost to jailed Ponzi schemer Philip Rand Lochmiller.
The first interim distribution came to 0.4 percent, said Kirk Rider, who was appointed by the state to handle Valley Investments’ assets in 2009.
Approved claims will be based on individual investors’ cash investment, less all cash received.
“I would not read a whole lot into this first interim distribution,” Rider said in an email. “We hope to distribute quite a bit more when all clawback and avoidance actions, and claims against professionals, have been concluded.”
“Quite a bit more,” however, is a relative term, Rider said.
Investors pumped more than $30 million into the Valley Investments on the promise by Lochmiller of returns of up to 16 percent. Lochmiller told investors he was putting their money into affordable-housing projects in Colorado, Utah and Idaho.
All of Valley Investments’ physical assets have been sold or are under contract, Rider said.
All physical assets have been disposed of or are under contract and the only remaining assets consist of legal claims against professionals involved with Valley Investments, which was located at 1445 N. Seventh St..
Lochmiller is serving a prison term in connection with his handling of Valley Investments. In a Ponzi scheme, early investors are paid back with money from new investors instead of the proceeds from the advertised investments.
Lochmiller’s son, also Philip Rand Lochmiller, is serving an eight-year prison term, and an employee, Shawnee Carver, has completed a prison term. Both testified against the elder Lochmiller.