Investor faced mortgage fine
Valley Investments’ Lochmiller involved in mortgage brokering
The owner of shuttered Valley Investments was fined $4,400 a year ago by the Colorado Division of Real Estate, according to agency records.
Phil Lochmiller agreed to the fine for violating laws relating to mortgage brokering, according to the Division of Real Estate.
Investigative documents and two complaints that led to the fine were unavailable for public inspection.
Lochmiller is the subject of two investigations in connection with his operation of Valley Investments, 1445 N. Seventh St.
He faces a hearing Monday before the Colorado Securities Commission, which is considering a cease-and-desist order against him and Valley Investments.
The FBI also is investigating the activities of Valley Investments and is asking investors to call its hot line, 303-575-7012. People who did business with Philip Lochmiller, his son,
Philip Jr., or Valley Mortgage also are asked to call the number.
The FBI will send a questionnaire in 30 to 60 days to investors, who are asked to fill it out and send it in for review by investigators.
Lochmiller’s lawyer, Cliff Stricklin of the Denver law firm Holland & Hart, said Lochmiller was “working with the Division of Securities to reach a settlement that will best serve the noteholders. Tying this up in court over a technical issue is not in anybody’s interest.”
Lochmiller offered investments based on low-income housing projects he built in Colorado, Utah and Idaho. He ran advertisements in western Colorado newspapers claiming rates of return were as much as 14 percent, according to filings by the securities division.
Stricklin said he is negotiating with state regulators even though “there is a real question of whether the state has authority to intervene here due to the nature of the promissory notes used at Valley Investments.”
Lochmiller’s mortgage broker’s license expires in 2010.