11News is uncovering details about a probe into Valley Investments.
The FBI wants to hear from investors while State Securities investigators say the company broke the law.
We spoke with the Colorado Division of Securities and they tell us they're taking action against Valley Investments and its owner Phillip Lochmiller.
They accuse him of fraud and failing to disclose information to investors.
According to investigators, Lochmiller was selling promissory notes for property that were not registered.
They say he also failed to disclose risks associated with those investments.
They also he didn't tell clients about his criminal history.
Lochmiller spent three years in prison for 30 felonies for selling unqualified securities in California in 1985.
The Division of Securities tells 11News Lochmiller was running newspaper promising 10 and 12 percent returns with little to no risk.
Investigators say if an investment deal sounds too good to be true, it probably is.
The Division of Securities says its seen a 25 percent increase in fraud investigations in the last six months.
They say because of the sour economy more people are trying to cash in on their investments and they're finding their money may not be there.
The FBI is asking for anyone who may have invested with Lochmiller and Valley Investments to give them a call.
They've set up a hotline at (303) 575–7012.
They say right now the hotline is getting a lot of calls so if you can't through right away, keep trying.