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house with a restaurant, saloon, game room, library, hotel lobby, fitness center, and offices; an Administration building used by staff; a Sales Pavilion and three buildings with a total of motel-type rooms to house guests. That's because the land Silver Saddle sold was "near worthless real estate," according to the DBO. The Receiver took this claim seriously, his team exchanged correspondence with Mr. Jones, and he convened conference calls with the brokers.. 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. The Top 5 newsletter catches you up with LAs top 5 stories in just 3 minutes. 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. Thomas W. McNamara was appointed as the Receiver in this case. Even though operating expenses have been reduced, maintaining the Ranch continues to drain the limited resources of the Receivership Estate. 4. We just don't do it. The Motion details the proposed distribution process. I wish they would give the money back to us., When I interviewed Thomas Maney for the podcast in early 2019, he told me, Well, first of all, we've never misrepresented. If your mailing address has changed, please email your new address to info@regulatoryresolutions.com with the subject line SILVER SADDLE W-2 ADDRESS CHANGE. If you did not opt out of electronic delivery, you can access your W-2 through the Insperity Premier website. May 3, 2022 Final Determination of Investor Claims. Instead, each investor will receive a share of the proceeds proportionate to his or her investment in the Galileo Project (a pro rata share). The last 5 digits of the account number represent the investors unit number. The Receiver has received several inquiries concerning W-2s from former employees. We are preparing a proposed order for the Court and will post it on the Receivers website when the judge approves. 7, 2022), Receiver's Motion to Approve Sale of Galileo Project Land (Mar. How could this be happening in the 21st century? re Receiver's Motion to Approve Sale of Galileo Project Land (Mar. Now, the California Department of Business Oversight has accused the company of Both purchases needed to be approved by the Court before they could proceed. People needed a place to go, to start over. CALIFORNIA CITY The attempt to sell Silver Saddle Ranch and Resort may see success on a second attempt, according to an update from the propertys state-approved receiver on Oct. 14. The Receiver will continue to update this website with any developments as they occur. The price was adjusted a few times before stabilizing at $1.87 million. Thomas Maney and the companies running these investments (the Defendants) were sued by the California Department of Financial Protection and Innovation (DFPI) in 2019. The Final Determination of Investor Claims will be used to calculate the pro rata share of any distribution ordered by the Court. BC314239 Your activity looks suspicious to us. They had an elaborate referral program: Anyone who bought a share of the landbanking project and then referred their friends would receive $2,000. After hearing argument, the Court granted the Receivers Motion and approved the sale of the Ranch. 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. No. The agency accused Silver Saddle, Maney, Ducreux and other defendants of securities fraud and selling unqualified securities. In this new podcast from LAist Studios, host Emily Guerin tells a story of money, power and deception. January 17, 2020 W-2s for Former Employees. If the motion is granted, the closing should occur 60 days thereafter. The case status is Disposed - Dismissed. The owners of the 30,000-acre Silver Saddle Ranch & Club, about a dozen miles north of the downtown here in a remote corner of this remote city, are touting the open spaces of the high desert as a . 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). Please prove that you're human. You can either mail the information to: Silver Saddle Receiver c/o Regulatory Resolutions 655 W. Broadway, Suite 900 San Diego, CA 92101. And lets assume the receivership has $100 to distribute to the investors. Mamann also fielded a separate offer to purchase the approximate 1,020 acres of the adjacentGalileo Project parcels, which are also under state receivership for an additional $900,000. 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 sale will eliminate substantial ongoing expenses. Leads Ali Wong and Steven Yeun issue a joint statement along with show creator Lee Sung Jin. 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. The Motion is posted in full in the Documents section of this webpage. The DFPI alleged that Defendants . On 04/16/2019 JOSE CARRILLO filed a Labor - Wrongful Termination lawsuit against SILVER SADDLE RANCH CLUB, INC. Case Details Parties Documents Dockets Case Details On July 24, 2020, Judge Wohlfeil denied the Motion to Intervene filed by Antonio Garcia and Carlos Novelo. The receiver requested the court to cancel the escrows and refund Feteriks deposit. Once the Court has resolved any investor objections, the Receiver will file a Proposed Order of Final Determination of Claims and First Interim Distribution. As you may be aware, the Court approved the sale of the Silver Saddle Ranch and Club (Ranch) for $2,100,000. 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. 1. Escrow was opened on September 29, and the proposed buyer has 21 days to clear contingencies. We then calculated each investors total claim by adding (1) the amount he or she paid toward the purchase of an undivided fractional interest in the Galileo Project; and (2) the amount contributed to the Galileo Capital Investment Fund (CIF). Timeline for Court Challenge to Receivers Confirmation of Claim Determination. 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. Today on Public Media Giving Day, keep LAist strong with your support. All parties, including Feterik and Jones, were encouraged to submit a last, best and final offer with a Sept. 14 deadline. Today, most of the roads are abandoned. Any response must be filed before the hearing. California City is filled with signs advertising vacant land for sale. 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. According to court documents, Jones claimed his offer was not given a full and fair evaluation., A previous motion stated that Mr. Now, survivors and their descendants seek reparations. Every investor should carefully review the Receivers claim determination. A copy of the Receivers First Interim Status Report is posted in the Documents section of this webpage. Of the four purchase offers presented for the Ranch, the Receiver has accepted an offer of $1,774,500. The Galileo Project property is listed for $919,746. 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. In sum, the Receiver (1) completed the efforts to vacate the Burbank office and relocate the business records to the Ranch (which defendants had in process at the time of the TRO); (2) retained a former employee to be the full-time caretaker of the Ranch; (3) secured insurance for the Ranch; and (4) continued to minimize operating expenses at the Ranch. This will involve (1) calculating each investors claim and then (2) dividing this by the aggregate amount of all investor claims to get a pro rata figure which (3) will be multiplied by the amount available for distribution. 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. 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. To that end, on February 8, 2021, the Receiver filed a Motion to Approve Distribution Method and Procedures (Motion). 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. However, the receiver soon received complaints from Maney and from local businessman Rick Jones. 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. 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. By 1970, Mendelsohn had 3,000 salesmen and 24 sales offices around the world. With a neighborhood design that enhances privacy by separating homes from one another to create open spaces, mature hardwood trees, ponds, and a convenient location only 3 miles south of Interstate 20, this community is going to sell out quickly! 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. On January 14, 2022, the Court granted the Receivers request. On 02/08/2018 BORRAYO filed a Personal Injury - Other Personal Injury lawsuit against SILVER SADDLE RANCH CLUB, INC. October 14, 2020 Motion to Approve Sale of the Silver Saddle Ranch and Club Filed andTelephonic Hearing Set for November 6, 2020 at 9:00 a.m. On October 13, 2020, the Receiver filed a Motion to Approve the Sale of the Silver Saddle Ranch and Club (Ranch) for $2,100,000. The Receiver has suspended all business operations, including the Silver Saddle Ranch & Club. The criminal complaint is available in the documents section of this webpage. During the sales pitch, potential customers were divided up by ethnicity and paired with a salesperson who spoke their primary language. SACRAMENTO - The Department of Business Oversight announced Oct. 1 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. 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. In my podcast California City, I told the story of a small town in the Mojave Desert where, for more than six decades, salespeople have been peddling nearly worthless desert land to unsuspecting people. Most of the money, the DBO learned, was gone. The Court will need to approve a distribution before the proceeds from the sale can be distributed to investors. There would be a golf course, a university, a mall, a massive park and an airport. Silver Saddle Ranch is delivering the very best 2-acre homesites in the market. 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. The land sale scheme later became the subject of an eight-part LAist podcast California City.. A lot of it was used to pay sales agents. Sales agents allegedly used high-pressure tactics that made it very difficult for potential customers to say no. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo Project investors. We have reached a Final Determination of Claims, which can be accessed through this link Final Determination of Claimsor found in the documents section of this webpage. The case status is Other. 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. Case Summary. The receivers motion later stated in footnotes that a joint offer with investors would have required rescinding an offering made by Maney and approval by the state, which would further complicate the sale. The receiver moved to expedite the sale. March 7, 2022 Notice to Silver Saddle Investors of Claim Determinations. The receiver also accepted a separate $775,000 offer from Feterik to purchase the Project land. The day after filing the Notice of Appeal, High Plains Mesa Holdings and High Plains Mesa Management filed for bankruptcy. He spent a free weekend there in 2017, and ended up forking over $30,000 for a confusing, desert-land investment product. 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. 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. Each investor would receive a part of the proceeds from the sale proportionate to the money he or she paid for the property. The agency accused Silver Saddle, Maney, Ducreux and other defendants of securities fraud and selling unqualified securities. Consumers had filed almost three dozen complaints with various agencies: the Kern County District Attorney, the California Department of Real Estate, even the Federal Trade Commission, but the company continued to operate until 2019. July 10, 2020 Offer to Purchase Silver Saddle Ranch and Club. Why A Key Program Is Falling Short, An Agonizing Battle With Schizophrenia Ends On A California Freeway. 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. editor@desertnews.com, 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. Help us provide credible local journalism and timely NPR reporting to our entire community. The California Department of Business Oversight ("DBO") filed its civil lawsuit on September 9, 2019 against Defendants. Leads Ali Wong and Steven Yeun issue a joint statement along with show creator Lee Sung Jin. When emailing our office, please include your unit number to allow us to locate your records quickly. 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. Claim Determination letters have gone out today to Silver Saddle investors who invested in the Galileo Project (sometimes called LandBanking Plus). August 26, 2022 Receivership Case Stayed. 12. Our news is free on LAist. The escrows for the Ranch and Galileo Project property have been cancelled. 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. It is currently listed for $1,895,000. For additional details on the sale of the Ranch, please see below. In the 1950s and 60s, the city evicted the mostly Black and Latino working-class residents of Section 14 and destroyed their homes. 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. Separately, the Receiver sought the Courts permission to list for sale two other, smaller properties owned by Receivership Defendant High Plains Mesa Holdings. Trial is presently scheduled for May of this year. In other words, no investor will receive the full amount of his or her claim. And many of the amenities they'd been told were coming had yet to be built. It was supposed to be a good investment. The Court has rescheduled the hearing on the Receivers Motion from August 28, 2020 to August 19, 2020 at 1:30 p.m. All responses and oppositions to the Receivers Motion must be filed with the Court by August 6, 2020. SILVER SADDLE TARGETED A VERY SPECIFIC TYPE OF CUSTOMER: LATINO, FILIPINO AND CHINESE PEOPLE, MOST OF WHOM LIVED IN CALIFORNIA AND OFTEN SPOKE ENGLISH AS A SECOND LANGUAGE. In my reporting, I learned that Silver Saddles land sale scheme was essentially an open secret in Kern County. At that time, the Receiver will also file a Notice of Final Determination of Claims with the Court. 2. Prior to the hearing, the Court issued a tentative ruling approving the sale. 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 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. Mismanagement, Sloppy Hiring Practices, Lack Of Transparency. The Judges overseeing this case are Clark, Thomas S., Schuett, Stephen D. and Friedman - Retired, Gary T.. Many were young couples and hard-working immigrants looking to build a better future. The trial date in this case remains the same, September 16, 2022. Although the sale closed as scheduled, High Plains Mesa Holdings filed a Notice of Appeal of the Courts Order authorizing the sale. One offer fell too low beneath the listing price. As the Receiver mentioned in his last update, the same proposed buyer who offered $2,100,000 for the Ranch also offered $900,000 for the Galileo Project vacant land. Because of these ongoing costs, we determined selling the Ranch is in the best interest of the Receivership Estate. Maney helped negotiate the settlement with the FTC, and after Great Western Cities declared bankruptcy in 1984, he acquired some of the assets, including a lot of vacant California City land and a small resort called Silver Saddle Ranch. Between 2011 and 2019, Silver Saddle made more than $56 million. Parent and Community Center Grand Opening, Tehachapi area Crime Data Report for March, U.S. 395 to Close for Emergency Infrastructure Damage Repairs. Investors should look for the letter in the U.S. mail. 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. 4, 2022), Knight Decl. The Receiver has filed a Motion to Approve the Sale of the Ranch and an Application to Shorten the Time for a Hearing, asking the Court to hear the Receivers Motion to Approve the Sale of the Ranch on July 16, 2020 at 8:30 a.m. via CourtCall. In 1977, the company settled, and was ordered to pay what was, at the time, the largest consumer refund in the history of the FTC. To make sure you get our coverage: Sign up for our daily newsletters. After the Receiver reaches final determinations on all claims, a Notice of Final Determination and Proposed Distribution will be filed with the Court. For the five-month period of September 2019 to March 2020, water, electricity, labor, and insurance costs for the Ranch was approximately $230,000. Saddle Commercial Development, LP, Silver Saddle Ranch & Club, Inc., and Galileo Commercial Property Owner's Association, Inc. are hereby ordered to desist and refrain from the further offer or sale of securities in the State of California, including but not limited to investments in the Less than an hour after signing a contract we had our doubts and were able to think it through and contacted the broker. I wish (the salespeople) realize how much they cost all the families, he said. The Receiver determined that it is necessary to reopen the sales process and allow all interested parties to present their best and final offers. Why A Key Program Is Falling Short, An Agonizing Battle With Schizophrenia Ends On A California Freeway. 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 alleged scheme targeted Filipino, Chinese and Spanish-speaking individuals, according to an Oct. 1, 2019, DBO news release. The Case Remains Cold, Even 'Affordable Housing' In LA Isn't Affordable. 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. The Court granted the Receivers request on June 11, 2021. In a response filed with the court, calling it an eleventh-hour plea to unwind a valid contract and that it wreaks of impropriety and sour grapes based on obtuse contentions that do not withstand the requisite scrutiny required under the law.. 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. In that scenario, Investor As pro rata share is 3% and Investor Bs pro rata share is 5%. We will provide an update if the trial date changes. That case, which is a separate civil lawsuit unrelated to the new criminal charges, is set to go to trial in September. The sale closed but in August 2021, the owners of High Plains Mesa Holdings appealed the sale and filed a bankruptcy petition on the companys behalf without the Receivers permission. The reason the Receiver took the motion to approve the sale off calendar is that shortly after the Receiver accepted an offer to purchase the Ranch, another individual, who had also presented an offer, complained about the sales process and his interaction with the real estate broker. 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. If the DFPI is successful at trial or the parties reach a settlement, then the Receiver will seek permission . (Chava Sanchez/KPCC).