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On Sept. 20 of 1985, Philip Lochmiller of North County's by-then-bankrupt Lochmiller Mortgage was sentenced to three years in state prison on securities charges. His brother, Stephen Lochmiller, and mother, Joe Alice Lochmiller, had already been sentenced on similar charges. Their company had taken money from many elderly investors, sometimes promising an annual return of up to 24%. The money was invested in real estate; the scheme fell apart. The investors often got nothing.

Now Philip Lochmiller is in trouble again for a similar caper, as recorded at length this weekend in the Grand Junction, Colorado, Daily Sentinel. The Denver District Court recently ordered that Grand Junction's Valley Investments (formerly Valley Mortgage) be closed. It was run by Philip Lochmiller. "The FBI and state regulators are investigating the firm, but no criminal charges have been filed," says the newspaper. Philip Lochmiller's lawyer was quoted saying that his client's criminal history in California "was a long time ago." The Colorado Securities Commissioner says that Valley did not tell investors about Philip Lochmiller's criminal past. The court-appointed receiver for Valley estimates that investors have lost $20 million or more in the company's collapse, according to the newspaper. Valley ran ads in Colorado newspapers, touting 14% annual returns. As in California, elderly investors took the bait.

The Sentinel says that Philip Lochmiller's house is chained and locked. The paper hasn't been able to locate him.

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Comments

Ponzi June 7, 2009 @ 2:56 p.m.

How does a felon get back into the securities business? Going to prison this time is not going to be as easy or as short.

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Don Bauder June 7, 2009 @ 3:33 p.m.

Response to post #1: The gravamen seems to be that Lochmiller did not tell investors of his criminal past, according to Colorado securities officials. Best, Don Bauder

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SurfPuppy619 June 8, 2009 @ 12:30 p.m.

To get a securities license you need fingerprint and background checks, unless he was doing thsi unlicensed.

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Don Bauder June 8, 2009 @ 2:56 p.m.

Response to post #3: Philip Lochmiller was selling unregistered securities in Colorado. State securities regulators got the Denver district court to issue an injunction stopping his company from doing so. That's what much of the flap is about. Best, Don Bauder

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jiquarterhorses July 9, 2009 @ 7:04 a.m.

Don, Not certain if you have researched this any more but there is definitely a lot more going on here than just some technicality.

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