GRAND JUNCTION, Colo. - Investors promised returns of up to 16 percent are getting less than one percent of their original investment after the businessman they invested with went to jail.
The Grand Junction Daily Sentinel reports investors pumped more than $30 million into Valley Investments on promises by businessman Philip Rand Lochmiller.
Lochmiller told investors he was putting their money into affordable-housing projects in Colorado, Utah and Idaho.
Instead, the money was used for interest and principal payments to others. The money was also used for personal expenses.
Investors are now getting some of their money back. The first payments came to less than 1 percent, but officials say more money could be paid back once accounts are settled.
Lochmiller was sentenced to 33 years in prison after he was convicted of fraud charges.