State suspends mortgage-broker license for son of Valley Investments’ owner
State officials suspended Philip R. Lochmiller Jr.’s mortgage-broker license because he failed to supply verifiable bonding information, according to the Colorado Division of Real Estate.
An investigation into complaints lodged against Lochmiller was unrelated to the suspension and is continuing, said Zachary Urban, director of communications and operations for the Real Estate Division.
The suspended license was held by 38-year-old Philip R. Lochmiller, Urban said.
Lochmiller failed to meet a Wednesday deadline to supply information regarding his bonding to the agency, resulting in the administrative suspension of his license, Urban said.
Urban said he is unable to comment on the allegations that sparked the investigation because it is continuing.
Philip R. Lochmiller Jr. worked at Valley Investments, 1445 N. Seventh St., which is owned by his father, Philip Rand Lochmiller Sr.
Valley Investments was placed in receivership in May after complaints were lodged with Colorado Securities Commissioner Fred Joseph.
Joseph alleged in court papers that the elder Lochmiller sold unregistered securities to real estate investors who purchased property in low-income, manufactured-housing developments in Colorado, Utah and Idaho.
Investors were told annual returns of 14 percent were guaranteed. What they weren’t told was that the elder Lochmiller had served a three-year prison sentence in California for securities violations.
The securities commissioner’s investigation is continuing, as is one being conducted by the FBI.
Valley was characterized in court papers as having been operated like a Ponzi scheme, in which early investors are paid returns from the money put in by late investors. It had debts of as much as $30 million.
No criminal charges have been brought in the Valley Investments investigation.
Lochmiller Jr. in 2008 agreed to a $4,400 fine by the Real Estate Division for violations that were not specified in the agreement.