Lochmillers can’t sell personal assets, judge rules
The owner of failed Valley Investments in Grand Junction and his family cannot sell any company or personal assets, a Denver District judge ruled Monday.
Philip Rand Lochmiller and his son, also Philip Rand Lochmiller, “shall turn over ... all collector, vintage or antique motor vehicles” in which either has an interest, Judge Herbert L. Stern III wrote in granting a preliminary injunction sought by the receivership he appointed last summer, Grand Junction law firm Rider & Quesenberry.
Stern also allowed the Loch- millers to pay their own expenses and legal fees, but said they can’t use investor money or funds derived from investor money to do that.
“It’s a relief to get the order,” the receiver, Kirk Rider, said.
Stern conducted more than three days of hearings, in which the elder Lochmiller at one point sat mute while he was asked a series of questions.
Lochmiller declined to answer the questions on the grounds that to do so might incriminate him in a continuing criminal investigation.
The FBI is investigating Lochmiller and Valley Investments.
Lochmiller, who was sentenced to three years in prison in California for securities fraud in the 1980s, faces securities-fraud allegations now from Colorado securities regulators.
Stern’s order didn’t address the Redlands home owned by the younger Lochmiller and his wife, Rebekah, which they sought to sell.
A contract is pending on the house, and the proceeds will be placed in escrow pending a final agreement on how that money should be divided between the Lochmillers and the receivership, Rider said.
More than 300 investors invested at least $30 million with Valley Investments, 1445 N. Seventh St., according to court documents.
The elder Lochmiller’s attorney, Cliff Stricklin, has maintained that the company failed because of the economic upheaval of the last year.
Stricklin didn’t respond immediately to a request for comment on Stern’s ruling.