The list is sorted by investor account number, which number was included in the Preliminary Claim Determination letters that were mailed to each investor. Each sale is alleged to be a separate violation. At the conclusion of the case, the Receiver will promptly move for permission to make a distribution. 4, 2022), Knight Decl. 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. Now, the California Attorney General has charged nine of those salespeople with felonies. Ultimately, more than 73,000 people bought land, netting Mendelsohn's company hundreds of millions of dollars. 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. 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. On July 16, 2020, the Court held a hearing on the Receivers Ex Parte Application to Shorten Time for a Hearing on the Receivers Motion to Approve the Sale of Silver Saddle Ranch and Club. If the DFPI is successful at trial or the parties reach a settlement, then the Receiver will seek permission . We will provide a further update at that time. 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.. There will not be a hearing on August 27, 2020 to cancel the escrows. A lot of it was used to pay sales agents. The listing is available here: https://www.loopnet.com/Listing/20751-Aristotle-Dr-California-City-CA/19775266/. Like many urban planners at the time, Mendelsohn thought major cities like Los Angeles were overcrowded, polluted and dangerous. To be clear, the Galileo Project investors do NOT hold an interest in the Ranch property; the Ranch is owned by Receivership Defendant Silver Saddle Ranch & Club, Inc. IT'S UNLIKELY THAT PEOPLE WHO INVESTED IN SILVER SADDLE WILL GET THEIR MONEY BACK. What You Should Know About This Year's 'Constant Bloom', You Need Child Care For Your Baby. For the latest national news from NPR and our live radio broadcast, visit LAist.com/radio. We do not anticipate that the criminal case will affect this case or the receivership. According to the court document, the ranch includes six primary buildings: a club. August 5, 2020 Cancellation of August 19 Hearing on Receivers Motion to Approve Sale of Silver Saddle Ranch and Club. The developer of California City, Nat Mendelsohn, built hundreds of miles of roads through the empty desert. For example, assume that Investor As claim is $30,000, Investor Bs claim is $50,000, and aggregate investor claims of $1,000,000. By Emily Guerin and Gabriel Dunatov | KPCC/LAist For decades, salespeople at a remote resort in the Mojave Desert have allegedly used high pressure sales tactics to sell land to thousands of people throughout California, including many in Filipino, Chinese and Latino communities. Please continue to check the Receivers website for periodic updates. When the court-appointed receiver took over last September, Silver Saddle's finances were a mess. The Final Determination of Investor Claims will be used to calculate the pro rata share of any distribution ordered by the Court. 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. Thats when the California Department of Financial Protection and Innovation raided Silver Saddles headquarters, halted all sales operations and took control of its bank accounts. Regulatory Resolutions, operated by Thomas McNamara, agreed to the sale of the 130-acre property for $2.1 million to the proposed buyer Aaron Mamann after a previous arrangement was canceled. He envisioned building a city of 200 square miles in this otherwise desolate spot. The bankruptcy petitions and appeal were ultimately dismissed, allowing the Receiver to take control over the roughly $4,100,000 in sale proceeds. As such, the Receiver accepted the offer and intends to seek Court authority to sell the Galileo Project land. 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/. March 9, 2022 Motion to Approve Sale of Galileo Project Land Filed. For decades, real estate developers have sold a dream here: if you buy land now, youll be rich one day. As such, the Receiver intends to seek Court authority to sell the Galileo Project land. 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. Silver Saddle Receivership FAQs Updated as of 10/10 . The same proposed buyer who offered $2,100,000 also offered $900,000 for the Galileo Project vacant land, which has been marketed through a real estate broker for sale since August. Two offers were made, which the receiver claims were unacceptable. Prior to the Sept. 14 deadline of 10 a.m., the receiver contacted Jones attorney for clarification of whether the offer was contingent on acceptance of the joint venture proposal, but no response came and the deadline elapsed. He spent a free weekend there in 2017, and ended up forking over $30,000 for a confusing, desert-land investment product. Winds SW at 15 to 25 mph. 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. Craig's Personal Injury/Premises Liability Lawsuit. They had an elaborate referral program: Anyone who bought a share of the landbanking project and then referred their friends would receive $2,000. The blue jellyfish-like creatures were swept by the winds of California's recent storms. Motion to Approve Distribution Method and Procedures filed Telephonic Hearing on March 19, 2021 at 9:00 a.m. Before the Receiver can distribute funds to investors, the Court must approve a distribution process. Even with the reduced water rates, we expect water will continue to be a substantial expense and all other expenses will continue e.g., electricity, labor, and insurance. No, the Ranch was permanently closed and recently sold to a third party pursuant to a During the sales pitch, potential customers were divided up by ethnicity and paired with a salesperson who spoke their primary language. Despite this significant outreach, l did not receive any offers from Mr. Jones, nor have I received any further communications from him, Knight stated in her declaration. 7. This case was filed in San Diego County Superior Courts, San Diego Central Courthouse located in San Diego, California. There would be a golf course, a university, a mall, a massive park and an airport. The Receiver hired counsel for both matters. Port officials say "resuming cargo operations at Americas busiest port complex is critical to maintaining confidence of our customers and supply chain stakeholders.". Investors Reviews of Claim Determinations. A 1969 newspaper ad for the real estate training program that Nat Mendelsohn used to sell so much land, "Land for sale" signs litter the empty desert in California City. 4. As such, while we have carefully considered the concerns raised by these investors, they do not have legal standing to object to the sale. Defendants comingled and diverted funds that had been promised to be set aside and preserved for the investors benefit, making it difficult to trace exactly how investor money was being spent. After obtaining an extensive appraisal, the Receivers team interviewed and selected a broker, Kidder Mathews, to sell the Ranch. The Court is currently scheduled to hear DBOs motion for preliminary injunction on July 24, 2020 at 9:00 a.m. DBO also added Kelly Maney, Maria Rosales, Robert Kvassay, and Richard Huebner as additional defendants. The alleged scheme targeted Filipino, Chinese and Spanish-speaking individuals, according to an Oct. 1, 2019, DBO news release. Instead, each investor will receive a share of the proceeds proportionate to his or her investment in the Galileo Project (a pro rata share). 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. After hearing argument, the Court granted the Receivers Motion and approved the sale of the Ranch. On March 13, 2020, the Receiver filed the first status report. According to court documents, Jones claimed his offer was not given a full and fair evaluation., A previous motion stated that Mr. After the Court does so, the Receiver will submit a proposed Order to the Court consistent with the ruling. Silver Saddle Resort was part of an investigation and lawsuit filed by the California Department of Business Oversight in 2019 that looked into fraudulent land sale activities in California City. DON'T MISS ANY L.A. CORONAVIRUS NEWS March 29, 2023 Receivership Case Remains Stayed. The lowest water bill was $4,339 for mid-March 2020 to mid-April 2020. Each investor will get a pro rata share of the distribution: Investor A will receive $20 (20% of the distribution), Investor B will receive $50 (50% of the distribution) and Investor C will receive $30 (30% of the distribution). Feterik initially resisted the attempt to cancel the escrow. If the Motion is granted, the Receiver will be able to start the distribution process. Copies of the Complaint and the TRO are available in the documents section of this webpage. Should the Court order the sale to go forward, the Receiver intends to recommend to the Court that the sale proceeds be used to fund an investor distribution. The Motion is posted in full in the Documents section of this webpage. This case was filed in Kern County Superior Courts, Metropolitan Branch located in Kern, California. Once the Court has resolved any investor objections, the Receiver will file a Proposed Order of Final Determination of Claims and First Interim Distribution. The Judges overseeing this case are JOHN J. KRALIK and WILLIAM F. HIGHBERGER. As a result, the properties continue to be marketed and listed through our real estate broker. The results were as follows: 23 challenges were denied, 17 resulted in an adjustment to the claim determination amount, and 3 were accepted completely. New potential buyer found for Silver Saddle Ranch, BY JACK BARNWELL 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. The Receiver took this claim seriously, his team exchanged correspondence with Mr. Jones, and he convened conference calls with the brokers.. 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. In 1984, the company declared bankruptcy. High near 70F. Case Details Parties Documents Dockets. While Jones attorney eventually responded that the offer wasnt contingent on any joint venture, the deadline had passed and Jones offer since rejected, though the receiver invited him to submit another offer through Kidder Matthews. Silver Saddle lured prospective buyers from around California with the promise of a free weekend at the ranch. 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. Silver Saddle Ranch and Club (Ranch), located at 20751 Aristotle Drive, California City, California 93505. Please prove that you're human. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo Project investors. Who knows when we'll see such vibrance again in this recently drought-choked land? Separately, the Receiver sought the Courts permission to list for sale two other, smaller properties owned by Receivership Defendant High Plains Mesa Holdings. If you'd like to follow the Silver Saddle court case, follow me on Twitter: @guerinemily. On 09/09/2019 People of the State of California filed an Other lawsuit against Silver Saddle Commerical Development LP. If you have questions after reading the Motion, please send them to info@regulatoryresolutions.com and include Silver Saddle in the subject line. The DBO alleged that Defendants committed . If no objections are filed with the Court, the Receiver will promptly file a proposed Order approving the Receivers claim determinations. After 14 days, the Receiver will respond to any investor objections filed with the Court, so that the Court can evaluate the Receivers calculations. 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. But much of the land they bought is nearly worthless. Two Los Angeles artists have new work on display. Jones expressed a concern that he did not have a full and fair opportunity to pursue an offer which he provided to the broker. 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. Receivers Notice of Final Claim Determinations and Proposed Distribution. Family Says Mental Health System Failed Their Son, A Los Angeles Family Seeks Answers And Accountability After Black Mom Dies In Childbirth. The landowners live all over the world. On 02/08/2018 BORRAYO filed a Personal Injury - Other Personal Injury lawsuit against SILVER SADDLE RANCH CLUB, INC. The relevant documents can be accessed at the links below or by clicking on the documents to the right. The ranch and the property were initially marketed in May under real estate company Kidder Matthews, with Teresia Knight and Greg Myers as the listing agents. The business operations in Burbank have been terminated. 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. LAist is part of Southern California Public Radio, a member-supported public media network. The Receiver has retained counsel to address both the appeal and the bankruptcies. The trial date in this case remains the same, September 16, 2022. 4, 2022), Frequently Asked Questions (FAQs) (Feb. 8, 2021), Receiver's 7th Interim Status Report (Sept. 30, 2022), Receiver's 6th Interim Status Report (Jan. 13, 2022), Receiver's 5th Interim Status Report (Sept. 16, 2021), Receiver's 4th Interim Status Report (May 7, 2021), Amended Order re Proposed Distribution Method and Procedures (Apr. In September 2019, the California Department of Business Oversight filed a lawsuit against Silver Saddle, accusing the company of securities fraud. Today on Public Media Giving Day, keep LAist strong with your support. Now, the California Department of Business Oversight has accused the company of LAist is part of Southern California Public Radio, a member-supported public media network. "The only similarity is that we sold land," he said. While we have carefully considered the concerns raised by these investors, they do not have legal standing to object to the sale of the Ranch. DBO also stated that many victims spent as much as $30,000 in a scheme that lasted eight years. Case Summary. Four years ago, while reporting a story about the drought, I received a tantalizing tip: In a small town in the Mojave Desert, salespeople were making tens of millions of dollars hawking empty desert land to unsuspecting buyers by convincing them the area would boom one day -- and if they got in now, they could get rich. As previously reported, the receivership case was stayed (put on hold) on August 11, 2022 as the result of a request by Defendant Maney. "This is no ordinary real estate scheme," read the report. The contract had no cancellation period, and buyers were required to pay $41 a month in membership fees to Silver Saddle -- indefinitely. Investors will have 90 days to cash the checks. While many individuals have requested refunds, whether refunds will be issued depends on the outcome of the case and will be an issue for the DBO and the Court to resolve. 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. 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. The Receiver will proceed with hiring a realtor and proceeding with listing and marketing the properties. Heres How To Start Your Search, Emmery Muoz, 14, Was Killed In LA 17 Years Ago. On March 19, the Court heard oral argument on the Receivers Motion and denied the Receivers request to proceed with an interim distribution to investors. Silver Saddle Ranch and Club California, City, California USA Phone: 760-373-8617 Web: silversaddle.com Category: Unusual Rip-Off Silver Saddle Ranch and Club Silver Saddle Commercial Development LLCGalileo Project Land Banking Scam California, City California *Consumer Suggestion: Silver Saddle Ranch Club A pyramid scheme This case was filed in Orange County Superior Courts, Orange County Civil Complex Center located in Orange, California. The Receiver will file a motion for the Galileo Project land after the sale of the Ranch is complete.

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