GRAND JUNCTION, Colo.—A man convicted for his role in a Colorado real estate investment scheme was sentenced to 33 years in federal prison Friday.
Philip R. Lochmiller Sr., 64, learned his fate in Grand Junction as more than 30 victims of the scheme watched.
Lochmiller, his stepson Philip R. Lochmiller Jr., and his assistant, Shawnee Carver, were all indicted for their roles in the scheme, which prosecutors say cost more than 400 people at least $30 million.
All three have been ordered to pay $18.6 million in restitution to the victims.
Investors were promised returns of up to 18 percent on real estate developments by the Lochmillers’ company, Valley Investments, which entered the affordable housing real estate market in 2000.
The total amount invested exceeded the company’s assets, prosecutors said, and investors’ money was used for interest and principal payments to others. The money was also used for personal expenses, prosecutors said.
The stepson and assistant pleaded guilty and testified against Lochmiller. He was found guilty in July of mail fraud, money laundering and conspiracy.
The Department of Justice said the prosecution was part of a task force President Barack Obama formed to investigate financial crimes.
