Federal Criminal Defense Lawyers reports that Philip R. Lochmiller, Sr., has been convicted by a jury in Denver, Colorado’s Federal Court on charges of defrauding 400 people out of $30 million. Convicted of conspiracy, money laundering conspiracy, money laundering and mail fraud, Lochmiller engineered a Ponzi scheme using manufactured housing community home sites as the investment that he claimed would earn 10-18 percent return for its investors. Lochmiller’s Valley Investments acquired five properties between 2000 and 2005. They then told investors they were using the funds to finance the development of subdivisions, providing investors with a promissory note and a “Deed of Trust” which entitled them to ownership of individual sites. They claimed the large returns came from selling the manufactured houses with the lots. The government proved Lochmiller and his son and another employee misrepresented how the funds were being used. New investors money was being used to repay existing investors, and some of the money was used for non-business expenses. Lochmiller faces up to 55 years in prison and millions in fines. A hearing is set for Oct. 27, 2011, on repaying his victims. His son, Philip Lochmiller, II, and Shawnee Carver had earlier pled guilty and await sentencing, which is scheduled for October 14, 2011.
(photo courtesy of Channel 5 news)