A Grand Junction man who ran a $30 million real estate scheme that defrauded about 400 people was sentenced Friday to more than 33 years in federal prison and ordered to pay nearly $19 million in restitution.
Philip Lochmiller Sr., 64, also was ordered to serve three years of probation after his release from prison — though federal prosecutors said the imposed prison term essentially “amounts to a life sentence.”
“Although this sentence can’t by itself undo the damage suffered by the many victims of this fraudulent scheme, justice was done,” U.S. Attorney John Walsh said in a statement.
U.S. District Judge Philip Brimmer issued the sentence following Lochmiller’s conviction on charges of conspiracy, money laundering and mail fraud stemming from a Ponzi-like investment scheme he engineered.
A federal jury convicted Lochmiller in July. He was accused of using his companies, Valley Mortgage and Valley Investments, to ensnare people to invest more than $30 million in return for promised returns of up to 18 percent.
Rather than funding a real estate development as promised, the money went to personal and family expenses.
Lochmiller’s son, Philip Lochmiller Jr., pleaded guilty in November 2010 and was sentenced to eight years in prison. An accomplice, Shawnee Carver, was sentenced to two years in federal prison for her guilty plea.
Both testified against the elder Lochmiller.
David Migoya: 303-954-1506, dmigoya@denverpost.com or
