According to the receivers motion, the offer was submitted along with a joint venture proposal involving the Galileo Project investors and also involved financing contingencies, compared to a previous all-cash offer by Jones. The Court denied the Receivers ex parte application for an order cancelling escrows for the Ranch and Galileo parcels, and stated that it was not inclined to rule on the request via ex parte application. The salespeople held raffles for free airline tickets to Hong Kong and Manila, shopping sprees, watches, cameras and other perks to encourage people to invest. Once the Court has resolved any investor objections, the Receiver will file a Proposed Order of Final Determination of Claims and First Interim Distribution. A footnoted in the motion states that because of limited funds in the receivership estate account, the Receiver has temporarily withheld payment of his and counsel's fees and expenses in order to ensure the Receivership Estate has sufficient funds to pay ongoing Ranch expenses.. The Final Determination of Investor Claims will be used to calculate the pro rata share of any distribution ordered by the Court. The Ranch is closed and will remain closed indefinitely. Please prove that you're human. The results were as follows: 23 challenges were denied, 17 resulted in an adjustment to the claim determination amount, and 3 were accepted completely. At a hearing on October 16, 2019, the San Diego Superior Court issued a Preliminary Injunction with asset freeze and confirmed the appointment of the Receiver over the Receivership Defendants (Silver Saddle Commercial Development, LP; Silver Saddle Ranch & Club, Inc.; The Galileo Commercial Property Owners Association, Inc., as well as any other entity that has conducted any business related to Defendants offering and selling of the Galileo Project investment contracts). Receivers Notice of Final Claim Determinations and Proposed Distribution. March 7, 2022 Notice to Silver Saddle Investors of Claim Determinations. In our last update, we explained the Receiver had filed a motion with the Court to approve the sale of the Ranch to a third party for $2,100,000. 4. The Court also determined that the Receiver had shown the current offer was fair and reasonable. Each investor will, however, receive a part of the proceeds from the sale proportionate to the money he or she paid for the property, as described in the recently distributed Claim Determination letters. Our complaint services are free and our team of expert mediators will assist in resolving complaints with businesses. While looking into the town's history, she said she spoke with an unofficial town historian and retired police chief who spoke about what becomes the podcast's focus: the Silver Saddle Ranch and Club controversy, which was the center of a series of land sales aimed at mostly immigrants. DON'T MISS ANY L.A. CORONAVIRUS NEWS On September 28, the Receiver agreed to a sales price of $2,100,000 for the Ranch. We just don't do it. We will provide an update if the trial date changes. Mr. Maney and a number of others are facing criminal charges in connection with Silver Saddle. The Court ordered that the Receiver cannot distribute any money to investors until the end of the case. For additional details on the sale of the Ranch, please see below. The Top 5 newsletter catches you up with LAs top 5 stories in just 3 minutes. Help us provide credible local journalism and timely NPR reporting to our entire community. The Motion to Approve the Sale of the Ranch and related documents are in the Documents section of this webpage. The Receiver has therefore proposed to the Court that pro rata distributions be made to each investor based on the amount each investor paid into the Galileo Project and Common Improvement Fund. Now, survivors and their descendants seek reparations. The business operations in Burbank have been terminated. Mismanagement, Sloppy Hiring Practices, Lack Of Transparency. Trial is presently scheduled for May of this year. and given another opportunity to tour the property. In the 1950s and 60s, the city evicted the mostly Black and Latino working-class residents of Section 14 and destroyed their homes. The allegations against the defendants include that they: Ben Perez is one of the more than 2,000 people who invested money with Silver Saddle. At all relevant times, efendant d the Galileo Association was a California non-profit corporation with a business address of 7635 North San Fernando Road, Suite A, Burbank, California The relevant documents can be accessed at the links below or by clicking on the documents to the right. The Court ordered that the Receiver cannot distribute any money to investors until the conclusion of the case. Graduates of the program were expected to buy a piece of land themselves, and refer their friends and family. The Receiver will proceed with hiring a realtor and proceeding with listing and marketing the properties. The resort was listed at $1.87 million and theGalileo Project at $919,746. There will not be a hearing on August 27, 2020 to cancel the escrows. The listing is available here: https://www.loopnet.com/Listing/20751-Aristotle-Dr-California-City-CA/19775266/. 3. If and when the Court enters an Order allowing a distribution to investors, the Receiver will issue investor checks promptly and consistent with the claims determinations. Investors will have 90 days to cash the checks. As you may be aware, the Court approved the sale of the Silver Saddle Ranch and Club ("Ranch") for $2,100,000. Based on an independent appraisal prepared for the Galileo Project Land, the Receiver believes the price is more than fair and reasonable. As such, the Receiver accepted the offer and will soon seek Court authority to sell the Galileo Project land. The Galileo Project property has been listed for $919,746. As a result, Investor A has a claim for $200, Investor B has a claim for $500, and Investor C has a claim for $300. The Receiver took this claim seriously, his team exchanged correspondence with Mr. Jones, and he convened conference calls with the brokers.. re Accelerated's Opposition Preliminary Injunction (July 16, 2020), Receiver's Motion to Approve Sale (July 10, 2020), Receiver's Ex Parte Appl'n to Shorten Time (July 10, 2020), Receiver's Response to Motion to Intervene (July 9, 2020), Receiver's 1st Interim Status Report (Mar. "Mendelsohn isn't trying to sell land, and the public isn't really buying the land. Family Says Mental Health System Failed Their Son, A Los Angeles Family Seeks Answers And Accountability After Black Mom Dies In Childbirth. The DBO alleges that Defendants sale of fractionalized interests in vacant desert land near California City, California violated California securities laws because such sales constituted the sale of unqualified or unregistered securities and were based on fraudulent and deceptive misrepresentations. They sued Mendelsohn's company, which was then known as Great Western Cities. lawsuit on September 9, 2019 against Defendants. Feterik initially resisted the attempt to cancel the escrow. The Court granted the Receivers request on June 11, 2021. Of the four purchase offers presented for the Ranch, the Receiver has accepted an offer of $1,774,500. If the motion is granted, the closing should occur 60 days thereafter. Trial is presently scheduled for May of this year. The case is still on-going. Background on the Process to Reach a Final Determination of Investor Claims. The Receivership Estate will not be able to fund these costs for very long. This case was filed in Los Angeles County Superior Courts, Spring Street Courthouse located in Los Angeles, California. B. Gordon and Exhibits, https://www.loopnet.com/Listing/20751-Aristotle-Dr-California-City-CA/19775266/, https://www.loopnet.com/Listing/Rutgers-Rd-Kennedy-Blvd-California-City-CA/20743529/. In part, the ruling states that, [t]he prospective intervenors, like all investors, will be afforded an opportunity to be heard regarding the disposition of the receivership estate through the Receivers notice and recommendations to the Court. In this new podcast from LAist Studios, host Emily Guerin tells a story of money, power and deception. A telephonic hearing has been set for August 27, 2020 at 9:00 a.m. to allow for full briefing on the matter. Ultimately, more than 73,000 people bought land, netting Mendelsohn's company hundreds of millions of dollars. For example, to date the Receiver has paid $285,580 for water alone. However, the sales pavilion, parking, and other related improvements are located on a 24-acre parcel is owned by the City of California City and leased to Silver Saddle Resort and Club which expires April 17, 2027. To make sure you get our coverage: Sign up for our daily newsletters. Based on an independent appraisal prepared for the Ranch, the Receiver believes the price is more than fair and reasonable. The Silver Saddle Ranch in California City, California has been closed to the public and visitors. Port officials say "resuming cargo operations at Americas busiest port complex is critical to maintaining confidence of our customers and supply chain stakeholders.". However, before this can occur, the current escrows must be canceled. Although the sale closed as scheduled, High Plains Mesa Holdings filed a Notice of Appeal of the Courts Order authorizing the sale. In the 1950s and 60s, the city evicted the mostly Black and Latino working-class residents of Section 14 and destroyed their homes. On 04/16/2019 JOSE CARRILLO filed a Labor - Wrongful Termination lawsuit against SILVER SADDLE RANCH CLUB, INC. Because of these ongoing costs, we determined selling the Ranch is in the best interest of the Receivership Estate. Case Summary On 01/25/2022 PHUNG NGUYEN filed a Property - Other Property Fraud lawsuit against SILVER SADDLE RANCH CLUB, INC. 1. Now, survivors and their descendants seek reparations. The receiver also accepted a separate $775,000 offer from Feterik to purchase the Project land. The receiver countered at $2.1 million/$900,000, which was accepted. The blue jellyfish-like creatures were swept by the winds of California's recent storms. Two offers were made, which the receiver claims were unacceptable. Receivers Review of Challenges and Final Determination. Hi last week march 20 we signed a contract from silver saddle ranch club for half a unit of their galileo project and deposited $3298 and has monthly payment of $273.66 for 10 years term. The charges include conspiracy to commit a crime, grand theft of personal property, securities fraud and use of a scheme to defraud a consumer regarding the sale of securities. Windy with sunshine. If approved, the closing date would occur within 60 days, according to the receiver. Deep in the Mojave Desert, there is a little town with a big name and a bizarre history: California City. The Motion was opposed by Defendant Accelerated Assets and Defendant Thomas Maney. When the court-appointed receiver took over last September, Silver Saddle's finances were a mess. The day after filing the Notice of Appeal, High Plains Mesa Holdings and High Plains Mesa Management filed for bankruptcy. If you have questions after reading the Motion, please send them to [email protected] and include Silver Saddle in the subject line. Silver Saddle Receivership FAQs Updated as of 10/10 . We will update again after September 15, 2023 status hearing or before if events merit. The buyers were nearly all Filipino, Chinese or Latino, and many spoke English. Leads Ali Wong and Steven Yeun issue a joint statement along with show creator Lee Sung Jin. Four days, Mamann upped the offer to $1.9 million and $650,000 respectively. California City would be that place. We will seek the Courts approval of the sale at a telephonic hearing on November 6 at 9:00 a.m. via CourtCall and, if granted, the closing should occur 60 days thereafter. On March 16, 2023, the Superior Court in the receivership case held a status conference to discuss the status of the criminal proceeding. The Motion details the proposed distribution process. 2. They compared California City to Las Vegas and other large cities in the Southwest that began as tiny desert outposts. While we have heard from a number of Galileo Investors (who are coordinating with Antonio Garcia and Carlos Novelo, and their United Owner Investors, Inc.) objecting to the sale of the Ranch, the investors do NOT hold an interest in the Ranch property. All of the defendants are affiliated with Silver Saddle Ranch & Club, a remote desert resort in California City about an hour and a half north of L.A., where salespeople offered free weekend vacations to Latino, Filipino and Chinese consumers in exchange for sitting through a high-pressure sales pitch. We have received emails and letters from a small number of investors (who appear to be coordinating with Antonio Garcia and Carlos Novelo, and their United Owner Investors, Inc.) objecting to the sale of the Ranch. He envisioned building a city of 200 square miles in this otherwise desolate spot. Even though operating expenses have been reduced, maintaining the Ranch continues to drain the limited resources of the Receivership Estate. The price was adjusted a few times before stabilizing at $1.87 million. The Receiver will review each challenge and supporting documentation and may need to contact investors directly during this process to ask follow-up questions. The motion cites water costs alone ran more than $285,000 since it was placed in the receivers hands in October 2019. The landowners live all over the world. Finally, last year, the parties filed a Joint Stipulation to Continue the trial and related dates and deadlines to allow them to address discovery and potential settlement issues, which the Court granted on October 22, 2021. The highest water bill was $46,864 for mid-October 2019 to mid-November 2019. Both properties are located in Cal Citys Second Community. What questions do you have about Southern California? Right now, the case is set for trial in September 2022. The receiver noted in the motion that many of these amenities were modestly constructed, outdated, and poorly maintained.. If the DFPI is successful at trial or the parties reach a settlement, then the Receiver will seek permission . Importantly, the Receiver intends to request the Court authorize that the Galileo Project vacant land be conveyed with a clear title and free of the Galileo Project investors fractional interests. When the state filed suit against Maney and others, it filed an injunction requiring the resort to be placed into receivership, for the defendants to seize all further land sales and freeze related assets. Thomas Maney and the companies running these investments (the Defendants) were sued by the California Department of Financial Protection and Innovation (DFPI) in 2019. If you're enjoying this article, you'll love my daily morning newsletter, How To LA. This case was filed in Los Angeles County Superior Courts, Stanley Mosk Courthouse located in Los Angeles, California. As such, the Receiver accepted the offer and intends to seek Court authority to sell the Galileo Project land. As explained below, if you disagree with the Receivers determination you must contact the Receivers office by mail or email on or before April 8, 2022. 7, 2022), Receiver's Motion to Approve Sale of Galileo Project Land (Mar. We will seek the Courts approval of the sale at a hearing on April 15, 2022, at 9:00 a.m., at the San Diego Superior Court, Hall of Justice, Department C-73. When Kidder Matthews began marketing the Silver Saddle property, the company developed a sales brochure and highlighted the resorts features, including a host of amenities. (Chava Sanchez/KPCC). AFTER GREAT WESTERN CITIES WENT BANKRUPT, A FORMER EMLOYEE QUIETLY CONTINUED SELLING VACANT LAND IN CALIFORNIA CITY. The alleged scheme targeted Filipino, Chinese and Spanish-speaking individuals, according to an Oct. 1, 2019, DBO news release. For additional details on the sale of the Ranch, please see below. Insperity, the payroll provider, will issue W-2s to former employees by January 31, 2020 via either U.S. mail or electronic delivery. Claim Determination letters have gone out today to Silver Saddle investors who invested in the Galileo Project (sometimes called LandBanking Plus). The Receiver will file a motion for the Galileo Project land after the sale of the Ranch is complete. The minute order granting the Receivers motion is in the documents section of this webpage. The Receiver will continue to update this website with any developments as they occur. IT'S UNLIKELY THAT PEOPLE WHO INVESTED IN SILVER SADDLE WILL GET THEIR MONEY BACK. Please contact Silver Saddle Ranch for hours of operation; 818-325-3930 File a complaint in less than 5 minutes! In March 2022, we sent out 2,970 letters to investors notifying them of the Receivers Preliminary Claim Determinations. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo Project investors. Silver Saddle Resort was the mechanism by which the sales were made, facilitating sales events and provided investors with a free nights stay and tours of the ranch.. We will provide an update after the August 27 hearing. The Court determined that the Receiver had shown it was necessary to sell the Ranch, given the ongoing maintenance costs and the limited funds remaining to pay them. The DBO alleged that Defendants committed . IN 2011, SILVER SADDLE TRANSITIONED FROM SELLING VACANT DESERT LOTS TO SELLING SHARES OF A CONFUSING REAL ESTATE INVESTMENT CALLED 'LANDBANKING'. The Defendants named in the Complaint are: Silver Saddle Commercial Development, LP; Silver Saddle Ranch & Club, Inc.; The Galileo Commercial Property Owners Association, Inc.; Thomas M. Maney; and. If you were an investor, please continue to keep the Receivers office apprised of any address changes. Every weekday, you'll get fresh, community-driven stories that catch you up with our independent local news. Please understand that the Receivership Estate has very limited assets primarily the proceeds from the sale of the Ranch and the anticipated funds from the sale of the Galileo parcel (if approved by the Court). April 18, 2022 Court Grants Motion to Approve Sale of Galileo Project Land. August 5, 2020 Cancellation of August 19 Hearing on Receivers Motion to Approve Sale of Silver Saddle Ranch and Club. This case was filed in San Diego County Superior Courts, San Diego Central Courthouse located in San Diego, California. Those investors who sent written challenges to the Receivers claims determinations and still disagree with the Receivers Final Determination may submit a written objection to the Court within fourteen (14) days of the Receivers filing of the Final Determination of Claims. Higher wind gusts possible. Also, inclusion of the prospective intervenors as parties would enlarge the issues in the case because many of the approximately 3,000 investors have disparate opinions regarding disposition of the receivership estate. A full copy of the Courts Minute Order is available in the Documents section of this webpage. However, because the Silver Saddle Ranch & Club and the Galileo Project land are worth far less than the investors paid into the Galileo Project, no investor will be returned all of the money he or she invested. Based upon an independent appraisal prepared for the Galileo Project land, the Receiver believes this offer is fair, reasonable, and at or above market value for the property. A lot of it was used to pay sales agents. There would be a golf course, a university, a mall, a massive park and an airport. Spokespeople and legal advocates for the group claim that 3,000 people invested $54 million in land purchases $24 million more than what the state's lawsuit against Maney and Silver Saddle Commercial Development cites as being taken from investors. As part of the proposed sale, the Receiver and the Proposed Buyer will work cooperatively during the escrow period to secure the City of California City's consent to an assignment of the ground lease to the Proposed Buyer, the motion states. On 12/01/2017 MELINDA CERDA filed a Labor - Other Labor lawsuit against SILVER SADDLE RANCH CLUB INC.This case was filed in Los Angeles County Superior Courts, Stanley Mosk Courthouse located in Los Angeles, California. The individual expressed a concern that he did not have a full and fair opportunity to pursue an offer which he provided to the broker. You have permission to edit this article. To support our non-profit public service journalism: Donate Now. My 8-episode investigative podcast, California City, seeks to answer that question, as well as a bunch of others that came up over the course of my reporting. Based upon an independent appraisal received on the Galileo Project land, the Receiver believes this offer is fair, reasonable and at market value for the property. Nevertheless, the Receiver intends to recommend to the Court that the funds from the sale of the Ranch be used to make an initial distribution to Galileo Project investors. An escrow account was opened on Sept. 29 with a $100,000 deposit. The Court said that the Receiver can continue to collect funds for the Receivership Estate, but the stay may affect the timing of a distribution to investors. According to the motion, more than 33,000 emails were sent to Kidder Matthews west coast offices regarding the property, who communicated with 48 individuals interested in the property and provided tours for 12 groups. LAist is part of Southern California Public Radio, a member-supported public media network. The Receiver intended to use the money from the sale to pay the expenses of the Receivership Estate and provide a first distribution of funds to Silver Saddle investors to begin compensating them for their losses. July 17, 2020 Results of Hearing on Receivers Ex Parte Application. A sale will eliminate substantial ongoing expenses. 6. The state filed an injunction and lawsuit against several people accused of $30 million in fraud and illegal land sales, including Maney and Silver Saddle Ranch & Club, Inc., among several others. Silver Saddle Ranch & Club Inc :: Superior Court of California, County of Los Angeles :: State Civil Lawsuit No. January 17, 2020 W-2s for Former Employees. The Judge overseeing this case is Joel R. Wohlfeil. If you'd like to follow the Silver Saddle court case, follow me on Twitter: @guerinemily. Once the Court has approved and issued the Order of Final Determination of Claims and First Interim Distribution, the Receiver will make a first distribution. The Court took into account the Receivers concerns and recommendations, as well as those of the other interested parties. Internet Reaction Is Not Great, There's Something Else Blooming In The Desert: Massive Art Installations, What We Know About The Odd Blue Creatures Washing Ashore On SoCal Beaches, The Palm Springs Government Burned Down Their Neighborhood Now They're Seeking Reparations, The Very Busy Ports Of LA And Long Beach Are Effectively Shut Down, Everything Is Blooming In The SoCal Desert. Every investor should carefully review the Receivers claim determination. On November 6, 2020, the Court held a hearing on the Receivers Motion to Approve Sale of the Silver Saddle Ranch and Club. In addition to these structures, the ranch includes a stable and adjacent corral for animals, as well as a variety of amenities which were offered to guests: two swimming pools, a hot tub, man-made lakes, an RV park, and space for various sporting activities (miniature golf, basketball, tennis, volleyball, and badminton courts, etc.).
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