Valley investors get bad news
Assets worth less than 15% of firm’s debt
Many of the people hoping to get something back on the money they invested with Valley Investments have something of a triple-whammy awaiting them.
Valley has piled up debts of at least $30 million and trust deeds that purport to secure $17.5 million, according to a preliminary report filed by the receiver now in charge of Valley’s assets, the Grand Junction law firm of Rider & Quesenberry.
Of those trust deeds, “only about half are recorded and of the ones that are recorded, many are piled up on the same lots and the lots aren’t worth even near what the first trust-deed holders thought they had,” attorney Kirk Rider said Thursday.
Rider is continuing to search for assets, but so far “has not been able to identify company assets that approach even 15 percent of the outstanding indebtedness,”
Rider wrote in the report.
Rider will conduct a teleconference this morning with investors to familiarize them with the contents of his preliminary report and answer questions.
In one section of his report to the court, Rider estimated Valley Investments’ liabilities at $35.6 million, but the $30 million figure “is the last solid financial information that we have,” and it takes into account no money invested with Valley after November 2008, he said.
Valley Investments, owned by Philip Rand Lochmiller, operated for six months after that date, until May, when state regulators closed it down and it became clear the business was under investigation by the FBI.
Criminal investigations by the state and FBI are continuing, and the FBI is asking investors to call its hotline at 303-575-7012.
No arrests have been made.
Lochmiller’s attorney has maintained that Valley Investments’ problems are the result of the dramatic, national, economic slowdown.
The papers uncovered so far by the receiver show Valley Investments owes no money on the land it purchased for Country Living Park in Mack and that 78 of the 116 lots are owned by residents of the subdivision.
The 38 Country Living Park lots owned by Valley Investment are subject to 224 trust deeds, each of which purports to be a first deed of trust, the report says. The lots are collateral for more than $9.5 million in debt to investors, Rider said.
Valley Investments’ Blue Mountain Village subdivision in Dinosaur “provides a fairly clear example of (Valley’s) activities,” the report says.
Blue Mountain Village has a market value assigned by Moffat County of $285,000 for the 87-lot project, which now is unoccupied. There are 117 trust deeds that claim to encumber 197 lots of the subdivision and represent more than $5.7 million in investor debt, the report says.
Philip Rand Lochmiller, his son, Phil Lochmiller Jr., and Crystal Lochmiller own properties in their own names, such as rental units and mobile homes “that appear to have been bought with investor funds,” the report says. Rider said he has not determined the relationship between Crystal Lochmiller and the other two Lochmillers.
Philip Lochmiller Sr. owes no money on a resort condominium unit at Puerto Aventuras on the Riviera Maya, the report says.
That unit is nearly in the control of the receivership, Rider said, and is advertised on the Web for $600,000. The two-bedroom unit lies within a 30-second walk from the Caribbean Sea, the ad says.
The receiver’s report and instructions about how to join the teleconference are on the Web at http://www.valleymortgagereceive-rship.com.