Valley founder’s attorney: Recession brought down company, not scheme
Valley Investments was undone by terrible business conditions, not by the collapse of an illegal scheme, said the attorney for Philip Rand Lochmiller, who started Valley 15 years ago.
The receiver for the failed company said in court papers that it appeared Valley Investments was operated as a Ponzi scheme, a scam in which investors are paid promised returns from other investors.
“We have seen absolutely no evidence of any kind of Ponzi scheme,” Lochmiller’s Denver attorney, Cliff Stricklin, said Friday. “To suggest otherwise is irresponsible” and “plain wrong to attack Phil and his family with baseless allegations.”
Lochmiller will continue to work with the receiver to liquidate the assets of Valley Investments “in the framework that has been put in place by the parties and the court,” Stricklin said.
“This failure of Valley Investments has devastated Phil and his wife emotionally and financially like it has so many others. It’s one thing for a business to fail, but it is another thing altogether to make baseless allegations of criminal wrongdoing,” Stricklin said.
“For years, Phil has had hundreds of satisfied customers. We intend to fight any allegation that this was anything other than a business failure brought on by the biggest economic collapse since the Great Depression.”