We're uncovering details about a probe into Valley Investments in
The Federal Bureau of Investigation wants to hear from investors while state securities investigators say the company broke the law.
The Colorado Division of Securities say they are taking action against Valley Investments and its owner Phillip Lochmiller, accusing him of fraud and failing to disclose information to investors.
According to investigators, Lochmiller was selling promissory notes for property that were not registered and say he also failed to disclose risks associated with those investments.
Investigators also allege he didn't tell clients about his criminal history.
Lochmiller spent three years in prison for thirty felonies for selling unqualified securities in California in 1985.
The division of securities tells 11 News Lochmiller was running newspaper promising 10%-12% returns with little to no risk.
The division of securities says its seen a 25% 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 as well, that number is (303)575–7012.
They say right now the hotline is getting a lot of calls so if you can't get through right away, keep trying.
Our efforts to contact Phillip Lochmiller were not successful, but in a reponse to the Division of Securities he denied the allegations.