The Court took into account the Receivers concerns and recommendations, as well as those of the other interested parties. The bankruptcy petitions and appeal were ultimately dismissed, allowing the Receiver to take control over the roughly $4,100,000 in sale proceeds. 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. lawsuit on September 9, 2019 against Defendants. If you are an investor and do not receive a letter by March 15, 2022, please contact the Receivers office at [email protected]. The Court will hear the Motion in a telephonic hearing on March 19 at 9:00 a.m. PDF California Department of Business Oversight-Complaint Timeline for Court Challenge to Receivers Confirmation of Claim Determination. As such, the Receiver accepted the offer and intends to seek Court authority to sell the Galileo Project land. After completing this process, the Receiver will select the best offer and submit it to the Court for consideration. According to the receiver, the resort operated at a loss that eventually hit $1.5 million a year but continued to operate on subsidies from other related business the defendants operated. A sale will eliminate substantial ongoing expenses. 3. 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. The Motion was opposed by Defendant Accelerated Assets and Defendant Thomas Maney. Case Summary. BORRAYO VS SILVER SADDLE RANCH & CLUB, INC | Court Records - UniCourt Cal City history, Silver Saddle Ranch focus upcoming podcast As a result, investors will NOT receive back the full amount they invested from the Receivership Estate. SACRAMENTO - The Department of Business Oversight (DBO) announced today that a state judge has granted its request to shut down an alleged investment fraud that collected more than $30 million from illegal land sales and other charges associated with the Silver Saddle Ranch & Club in California City, California. Importantly, the Receiver intends to request the Court authorize that the Galileo lands be conveyed with a clear title and free of the Galileo investors fractional interests. The current sales brochure for the Ranch and the Galileo Project can be found in the Documents section of this webpage. Now, survivors and their descendants seek reparations. Every two years, Desert X presents site-specific outdoor installations throughout the Coachella Valley. That case, which is a separate civil lawsuit unrelated to the new criminal charges, is set to go to trial in September. After the Court does so, the Receiver will submit a proposed Order to the Court consistent with the ruling. Even though operating expenses have been reduced, maintaining the Ranch continues to drain the limited resources of the Receivership Estate. The Receiver will reply to any objections and the Court will rule. Insperity, the payroll provider, will issue W-2s to former employees by January 31, 2020 via either U.S. mail or electronic delivery. THE CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT CHARGED SILVER SADDLE WITH FRAUD AND SHUT THE COMPANY DOWN IN 2019 In September 2019, the California Department of Business Oversight filed a. Windy with sunshine. However, before this can occur, the current escrows must be canceled. On September 28, the Receiver agreed to a sales price of $2,100,000 for the Ranch. 2. Two offers were made, which the receiver claims were unacceptable. On 02/08/2018 BORRAYO filed a Personal Injury - Other Personal Injury lawsuit against SILVER SADDLE RANCH CLUB, INC. The receiver is currently trying to sell the ranch and all the land around it to help pay back people who bought into the landbanking operation. The listing is available here: https://www.loopnet.com/Listing/20751-Aristotle-Dr-California-City-CA/19775266/. Less than an hour after signing a contract we had our doubts and were able to think it through and contacted the broker. Both properties are located in Cal Citys Second Community. The sale of the Galileo Project Land, however, was put on hold. In that same brief, the receivers attorney, Edward Chang, noted that the real estate company handling the transaction and Jones have sharply contrasting descriptions of the sales process. It is currently listed for $1,895,000. Help us provide credible local journalism and timely NPR reporting to our entire community. 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. During the sales pitch, potential customers were divided up by ethnicity and paired with a salesperson who spoke their primary language. JOSE CARRILLO VS SILVER SADDLE RANCH & CLUB, INC - UniCourt IT'S UNLIKELY THAT PEOPLE WHO INVESTED IN SILVER SADDLE WILL GET THEIR MONEY BACK. Background on the Process to Reach a Final Determination of Investor Claims. 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 have questions after reading the Motion, please send them to [email protected] and include Silver Saddle in the subject line. 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. 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. 4. The second offer was made by Jones the night of Sunday, Sept. 13 for $1.8 million, with an $800,000 offer for the Project property. Silver Saddle Receivership FAQs Updated as of 10/10 . In this new podcast from LAist Studios, host Emily Guerin tells a story of money, power and deception. The landowners live all over the world. Investors Reviews of Claim Determinations. As you may be aware, the Court approved the sale of the Silver Saddle Ranch and Club (Ranch) for $2,100,000. All the parties will be provided certain due diligence materials (e.g., preliminary title report, seller disclosures, etc.) At the conclusion of the case, the Receiver will promptly move for permission to make a distribution. Instead, each investor will receive a share of the proceeds proportionate to his or her investment in the Galileo Project (a pro rata share). Phung Nguyen Vs. Silver Saddle Ranch & Club, Inc. If you are an investor and you agree that the claim determination prepared by the Receiver is correct, you do not need to do anything. Silver Saddle Ranch & Clubruns and operates a resort facility in California City called the Silver Saddle Ranch and Club (Ranch), located at 20751 Aristotle Drive, California City, California 93505. The Receiver determined that it is necessary to reopen the sales process and allow all interested parties to present their best and final offers. With the trial date approaching, the Receiver intends to proceed with the sale of the Galileo Project Land for $900,000 to the same individual who purchased the Ranch. The proposed call to approve the land sale isnt the first time the receiver has anticipated selling the resort and the project land. They sued Mendelsohn's company, which was then known as Great Western Cities. 1. As such, while we have carefully considered the concerns raised by these investors, they do not have legal standing to object to the sale. It wasnt. 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. Silver Saddle Ranch | Weatherford TX - Facebook Moving forward with a sale is essential because, as we have previously reported the costs to maintain Ranch are draining the limited resources of the Receivership Estate. This class action lawsuit was filed on 01/25/2022 in Orange County Superior Court. 14,248 were here. The Top 5 newsletter catches you up with LAs top 5 stories in just 3 minutes. 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. Will Orange County's Fledgling Clean Power Agency Survive? Department of Business Oversight Sues to Stop $30 million Silver Saddle Mr. Maney and a number of others are facing criminal charges in connection with Silver Saddle. The Receiver will proceed with hiring a realtor and proceeding with listing and marketing the properties. They're engaged in a grand illusion of creating wealthNK Mendelsohn has perfected the art of turning desert dust into gold -- but only for himself.". Copies of the Receivers Motion to Approve the Sale of the Ranch and Application to Shorten Time are available in the documents section of this webpage. Right now, the case is set for trial in September 2022. The current sales brochure for the Ranch and the Galileo Project can be found in the Documents section of this webpage. Silver Saddle Ranch | Carson City This case was filed in Kern County Superior Courts, Metropolitan Branch located in Kern, California. 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. 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. On 06/06/2019 MICHAEL BALAGTAS, filed a Contract - Other Contract lawsuit against SILVER SADDLE COMMERCIAL DEVELOPMENT, LP ,. [email protected], 8016 California City Blvd.St#7,California City,CA, Rosamond celebrates Diamond Street Project Completion, Rosamond Man arrested for Stolen Vehicles, Tehachapi Man arrested for 2007 Sexual Assault Pleads No Contest, S.K.U.S.D. 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. There will not be a hearing on August 27, 2020 to cancel the escrows. 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. On September 24, 2019, the San Diego Superior Court issued a Temporary Restraining Order (TRO) with asset freeze and appointment of a 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). Each sale is alleged to be a separate violation. Both purchases needed to be approved by the Court before they could proceed. Case Information Case Number: 30-2022-01242337-CU-FR-CXC Case Status: Not Classified By Court 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. The receiver requested the court to cancel the escrows and refund Feteriks deposit. 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. If you think the Receivers claim determination is wrong, you have until April 8, 2022 to send the Receivers office a letter or email challenging the calculations. The contract had no cancellation period, and buyers were required to pay $41 a month in membership fees to Silver Saddle -- indefinitely. 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. 2 talking about this. This would mean that after the sale, the investors would no longer have an interest in the Galileo Project Land. The Final Determination of Investor Claims will be used to calculate the pro rata share of any distribution ordered by the Court. 7, 2022), Receiver's Motion to Approve Sale of Galileo Project Land (Mar. The receiver also accepted a separate $775,000 offer from Feterik to purchase the Project land. We will provide a further update at that time. The criminal case continues and, as a result, the Court has extended the stay in the receivership case until at least the next status conference which it scheduled for September 15, 2023. The Galileo Project property has been listed for $919,746. 13, 2020), Amendment to Complaint Adding SS Purchco, Kvassay, Huebner (Feb. 5, 2020), Amendment to Complaint Adding Kelly Maney (Dec. 5, 2019), Amendment to Complaint Adding Maria Rosales (Dec. 5, 2019), Temporary Restraining Order (Sept. 24, 2019), Motion to Approve the Sale of the Galileo Project Land, Declaration of Cornelia J. Deep in the Mojave Desert, there is a little town with a big name and a bizarre history: California City. The relevant documents can be accessed at the links below or by clicking on the documents to the right. If you were an investor, please continue to keep the Receivers office apprised of any address changes. According to the court document, the ranch includes six primary buildings: a club. They had an elaborate referral program: Anyone who bought a share of the landbanking project and then referred their friends would receive $2,000. Mendelsohn advertised the program in major newspapers around the West, and it was wildly successful. But by the late 1960s, people who had bought land in California City were starting to realize that the growth they'd been promised wasn't happening. For additional details on the sale of the Ranch, please see below. Thousands of people bought this dream. Winds SW at 20 to 30 mph. One of these companies, High Plains Mesa Holdings, had a lease option agreement in place to sell a 640-acre parcel of land to a solar energy company for roughly $4,100,000 before this lawsuit was filed. Community funding keeps us independent and accountable. Will Orange County's Fledgling Clean Power Agency Survive. If you have a tip or story to share about California City or Silver Saddle (or anything else), email me: [email protected]. Relief Defendants named in the Complaint are: Marian G. Ducreux; Clifford J. Reynolds; and Wayne A. Pedersen. For example, to date the Receiver has paid $285,580 for water alone. The day after filing the Notice of Appeal, High Plains Mesa Holdings and High Plains Mesa Management filed for bankruptcy. The Court approved the sale on November 6, 2020, and the sale closed on January 14, 2021. Accelerated Assets Defeats Securities Enforcement Action - Cooley THE CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT CHARGED SILVER SADDLE WITH FRAUD AND SHUT THE COMPANY DOWN IN 2019. We only received 43 challenges and examined each of these challenges carefully. 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. You can either mail the information to: Silver Saddle Receiver c/o Regulatory Resolutions 655 W. Broadway, Suite 900 San Diego, CA 92101. PDF Silver Saddle Receivership FAQs Updated as of 10/10/2019 Diane Chun v. Silver Saddle Ranch & Club Inc :: Superior Court of When the court-appointed receiver took over last September, Silver Saddle's finances were a mess. The DBO alleged that Defendants committed securities fraud in connection with the sale of undivided interests in 1,020 acres of vacant desert property near California City, California in Kern County. What You Should Know About This Year's 'Constant Bloom', You Need Child Care For Your Baby. More information on these matters is available in the Receivers Fifth Interim Status Report (filed September 16, 2021) and the Receivers Sixth Interim Status Report (filed January 13, 2022). Instead Judge Wohlfeil treated the ex parte application as an application for order shortening time, which he granted. A copy of the listing brochure is posted in the documents section. Receivers Review of Challenges and Final Determination. A promotional brochure from Silver Saddle, which is part of the DBO's lawsuit against the company. Graduates of the program were expected to buy a piece of land themselves, and refer their friends and family. The resort was listed at $1.87 million and theGalileo Project at $919,746. The Receiver has been marketing the Ranch through a real estate broker for sale since May. "This is no ordinary real estate scheme," read the report. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo investors.
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