Authorities are taking action against a Grand Junction investment company and its owner under investigation for fraud. Friday the Coloraod Division of Securities slapped them with a lawsuit freezing their assets and operations.
Cease and desist--that's what a Denver judge is now saying to Valley Investments and owner, Phillip Lochmiller.
11 News first told you about the investigation into the company last Friday and now the Colorado Division of Securities is suing, hoping to help investors.
Colorado Securities Commissioner Fred Joseph tells 11 News he filed the lawsuit in a Denver District court Friday, May 29th.
The suit asks Lochmiller and Valley investments to stop selling securities, freezes assets for the company and appoints a lawyer to oversee money and land it may have gathered.
A judge granted the temporary injunction against the company in court.
Securities investigators say Lochmiller was selling fraudulent securities at $20,000 a pop, did not tell his clients about risks and did not tell his clients about his criminal history.
11 News discovered Lochmiller served three years of hard time for selling unregistered securities in California back in 1985.
Valley Investments is also under investigation by the FBI and that's why the division of securities says time is of the essence.
They say Friday's lawsuit will preserve as much money and land as possible for investors who may have lost money in the questionable deals.
Lochmiller has not responded to 11 News for comment but did deny the allegation in a response to the division of securities.
Investigators say he is cooperating with the lawsuit and the appointment of that lawyer to oversee the frozen assets.
The lawyer that will oversee the assets, named receiver, is Grand Junction Attorney Kirk Rider of Rider and Quesenberry LLP.
The division of securities says this investigation is far from over.