Agreement in works by lawyers, owners of Valley Investments
The lawyers who have taken over the management of failed Valley Investments in Grand Junction said they have reached a tentative agreement with the owner and his family.
The agreement in principle is with Valley Investments owner Philip Rand Lochmiller Sr., his wife and some members of their family, attorney Kirk Rider said Friday.
No details of the agreement will be available until it is complete, he said.
Rider’s firm, Rider & Quesenberry, was appointed the receiver of Valley Investments last year when the company collapsed.
Investigators now say Valley Investments’ collapse cost about 400 investors about $31 million.
Rider will update investors on the state of the company and plans to liquidate and distribute its assets in a teleconference Wednesday.
“We expect a little more impatience because things have been taking time,” he said.
Once Valley Investments’ assets are consolidated, Rider has said, he plans to ask the Denver District Court to distribute shares to all the investors.
Some investors have asked the court to allow them to foreclose on property on which they believe they hold first claims.
No decision has been rendered by the court.
The receivership is trying to sell a condominium unit in Mexico that investigators have said was purchased with investor funds.
Lochmiller had made an earnest-money deposit on a sport-fishing boat in California, but he hadn’t purchased it, Rider said.
Investors were told their money was being used for low-income housing developments in Colorado, Utah and Idaho. Many investors believed they held first-trust deeds on parcels within those developments, but investigators have said several deeds were recorded on the same lots or not recorded at all.
Lochmiller, his son, Philip Rand Lochmiller Jr., and an employee of Valley Investments, Shawnee Carver, have been indicted on federal securities- and mail-fraud allegations in federal court.