First mentioned: LIAB Prologue 28
Valdez was a level 2 Jitterati city located roughly to the northwest of Faq, within two turns flight. Built in the bushy green shade of a volcano, the town was made mostly of black and gray stone, a peculiar mix of slate and obsidian, with bright green moss growing in the cracks. The tower was a squat round turret.
While it is never explicitly stated that Faq sacked Valdez, it is almost a certainty. As of LIAB Text 43, it is stated that, with the taking of Progrock, Faq had four cities. Thus, Valdez not being counted among them, it must be assumed that it suffered the same fate as Kona, and was sacked. It should be noted that Faq's raid was a fundraising expedition, launched with the express intention of sacking cities.
Valdez appears to have been rebuilt, as it is referred to as being a city within two turns flight of Faq during Book 3.
Real World References
Juan Valdez is the fictional character created as a mascot for advertising for the National Federation of Coffee Growers of Colombia. He appears as a simple coffee farmer.