Why A Key Program Is Falling Short, An Agonizing Battle With Schizophrenia Ends On A California Freeway. The day after filing the Notice of Appeal, High Plains Mesa Holdings and High Plains Mesa Management filed for bankruptcy. 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/. No, the Ranch was permanently closed and recently sold to a third party pursuant to a On September 9, 2019, the California Commissioner of Business Oversight (DBO) filed an action against multiple parties involved in a real estate investment scheme which allegedly sold highly overpriced fractionalized interests in vacant desert land in rural Kern County, California. Family Says Mental Health System Failed Their Son, A Los Angeles Family Seeks Answers And Accountability After Black Mom Dies In Childbirth. In July, Mr. Maney asked the Court to stay this case, which would put the case on hold, until the criminal case is finished. Our complaint services are free and our team of expert mediators will assist in resolving complaints with businesses. Thomas W. McNamara was appointed as the Receiver in this case. A judge appointed a receiver to take control of the company's assets and property while the case proceeds. According to court documents, Jones claimed his offer was not given a full and fair evaluation., A previous motion stated that Mr. The Receiver will use proceeds from the sale to pay expenses of the Receivership Estate and provide a first distribution to Silver Saddle investors. Silver Saddle sold shares of the landbanking project for around 100 times more than what they were really worth. The Court will hear the Motion in a telephonic hearing on March 19 at 9:00 a.m. However, before this can occur, the current escrows must be canceled. Today on Public Media Giving Day, keep LAist strong with your support. The alleged scheme targeted Filipino, Chinese and Spanish-speaking individuals, according to an Oct. 1, 2019, DBO news release. An onslaught of velella velella washed up on shore this weekend on Southern California beaches. Please continue to check the Receivers website for periodic updates. The Case Remains Cold, Even 'Affordable Housing' In LA Isn't Affordable. There would be a golf course, a university, a mall, a massive park and an airport. 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. For additional details on the sale of the Ranch, please see below. The new trial date is May 6, 2022. That's because the land Silver Saddle sold was "near worthless real estate," according to the DBO. Mendelsohn advertised the program in major newspapers around the West, and it was wildly successful. You have permission to edit this article. When the court-appointed receiver took over last September, Silver Saddle's finances were a mess. 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. 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. 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. Any response must be filed before the hearing. The Receiver will proceed with hiring a realtor and proceeding with listing and marketing the properties. But even if the sale goes through, it won't generate nearly enough money to make all the investors whole. We will update again after September 15, 2023 status hearing or before if events merit. The Receiver will file a motion for the Galileo Project land after the sale of the Ranch is complete. 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. 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. The Court granted the Receivers request on June 11, 2021. 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. 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. A simple example can help explain how this works. It is currently listed for $1,895,000. 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. He envisioned building a city of 200 square miles in this otherwise desolate spot. I mean, its the way I live my life.. They had an elaborate referral program: Anyone who bought a share of the landbanking project and then referred their friends would receive $2,000. On 04/16/2019 JOSE CARRILLO filed a Labor - Wrongful Termination lawsuit against SILVER SADDLE RANCH CLUB, INC. On May 13, 2021, the Receiver asked the Court for permission to proceed with the sale of the land to the solar energy company. What You Should Know About This Year's 'Constant Bloom', You Need Child Care For Your Baby. 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. Given the stay, we do not expect any material activity to occur prior to the resolution of the criminal prosecution. As previously reported, the receivership case was stayed (put on hold) on August 11, 2022 as the result of a request by Defendant Maney. In February of this year, the Court, after briefing and argument, confirmed that two other companies, High Plains Mesa Holdings, LP and High Plains Mesa Management, LLC, were part of the receivership estate. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo Project investors. The Ranch has been listed for $1,874,500. 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. 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). The receiver requested the court to cancel the escrows and refund Feteriks deposit. All the parties will be provided certain due diligence materials (e.g., preliminary title report, seller disclosures, etc.) Of the four purchase offers presented for the Ranch, the Receiver has accepted an offer of $1,774,500. That case, which is a separate civil lawsuit unrelated to the new . Case Information Case Number: 30-2022-01242337-CU-FR-CXC Case Status: Not Classified By Court Investors Reviews of Claim Determinations. 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. 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. Please prove that you're human. A sale will eliminate substantial ongoing expenses. and given another opportunity to tour the property. On 09/09/2019 People of the State of California filed an Other lawsuit against Silver Saddle Commerical Development LP. This case was filed in Kern County Superior Courts, Metropolitan Branch located in Kern, California. If the DFPI is successful at trial or the parties reach a settlement, then the Receiver will seek permission from the Court to distribute the funds in the Receivership Estate to the Silver Saddle investors. However, because the Silver Saddle Ranch & Club and the Galileo Project land are worth far less than the investors . Investor payments will be made by check. 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 The case status is Not Classified By Court. 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. If the DFPI is successful at trial or the parties reach a settlement, then the Receiver will seek permission . If you're enjoying this article, you'll love my daily morning newsletter, How To LA. Both properties are located in Cal Citys Second Community. Proceeds from Silver Saddle Resort and eventually the Galileo Project parcels will be used to reimburse the receivers costs and provide remuneration for investors who sunk money into purchasingGalileo property. There will not be a hearing on August 27, 2020 to cancel the escrows. A lot of it was used to pay sales agents. 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. Each investor would receive a part of the proceeds from the sale proportionate to the money he or she paid for the property. 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. MENDELSOHN'S SALES TACTICS DREW THE ATTENTION OF RALPH NADER, AND GOT THE COMPANY IN SERIOUS TROUBLE WITH THE FEDERAL TRADE COMMISSION. For the latest national news from NPR and our live radio broadcast, visit LAist.com/radio. Prior to the hearing, the Court issued a tentative ruling approving the sale. Once the Court has resolved any investor objections, the Receiver will file a Proposed Order of Final Determination of Claims and First Interim Distribution. Why A Key Program Is Falling Short, An Agonizing Battle With Schizophrenia Ends On A California Freeway. The landowners live all over the world. The highest water bill was $46,864 for mid-October 2019 to mid-November 2019. 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. Silver Saddle lured prospective buyers from around California with the promise of a free weekend at the ranch. In my reporting, I learned that Silver Saddles land sale scheme was essentially an open secret in Kern County. What about Silver Saddle Ranch & Club - is it still open? Case Summary. In May 2020, DBO filed an amended complaint, adding additional defendants, SS Purcho, LLC, Accelerated Assets, LLC, and Pahrump Valley Real Estate Co., LLC. Notice to Investors re Claim Determinations (Mar. All parties, including Feterik and Jones, were encouraged to submit a last, best and final offer with a Sept. 14 deadline. Investors should look for the letter in the U.S. mail. THE CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT CHARGED SILVER SADDLE WITH FRAUD AND SHUT THE COMPANY DOWN IN 2019. Relief Defendants named in the Complaint are: Marian G. Ducreux; Clifford J. Reynolds; and Wayne A. Pedersen. For decades, real estate developers have sold a dream here: if you buy land now, youll be rich one day. 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. The Receiver also filed a Response to the Motion to Intervene filed by Antonio Garcia and Carlos Novelo. 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. It was supposed to be a good investment. Mismanagement, Sloppy Hiring Practices, Lack Of Transparency. Please contact Silver Saddle Ranch for hours of operation; 818-325-3930 File a complaint in less than 5 minutes! 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. 5. Silver Saddle Ranch and Club (Ranch), located at 20751 Aristotle Drive, California City, California 93505. At the hearing, the Court approved the sale of the land for $900,000, with clear title and free of all liens and encumbrances. I wish (the salespeople) realize how much they cost all the families, he said. A copy of the Preliminary Injunction is posted in the Documents section of this webpage. The sale of the Ranch was approved in late 2020. We will provide an update after the August 27 hearing. As we have noted repeatedly, calculating the Final Claim Determination amounts does NOT mean investors will receive those amounts. 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. The letters explained how to challenge the Preliminary Determination if an investor felt the determination was incorrect. August 17, 2020 Postponement of Receivers Motion to Cancel Escrows. We have also accepted an offer to purchase the Galileo Project vacant land for $775,500. The Court ordered that the Receiver cannot distribute any money to investors until the end of the case. Ultimately, more than 73,000 people bought land, netting Mendelsohn's company hundreds of millions of dollars. 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. 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 July 10, 2020 Offer to Purchase Silver Saddle Ranch and Club. If no objections are filed with the Court, the Receiver will promptly file a proposed Order approving the Receivers claim determinations. Silver Saddle Ranch & Club, Inc. Summary: This case is a class action lawsuit against Silver Saddle Ranch & Club, Inc. for violations of consumer fraud. People needed a place to go, to start over. California City would be that place. An escrow account was opened on Sept. 29 with a $100,000 deposit. 2023 Southern California Public Radio - All Rights Reserved, As Fentanyl Deaths Climb, Bill Would Require Drug Education In Schools, Lawmakers Want More Social Media Regulation. Instead Judge Wohlfeil treated the ex parte application as an application for order shortening time, which he granted. The Receiver will review each challenge and supporting documentation and may need to contact investors directly during this process to ask follow-up questions. As we have previously noted, the Galileo Project investors do NOT hold an interest in the Ranch property. The Motion details the proposed distribution process. 2. On March 16, 2023, the Superior Court in the receivership case held a status conference to discuss the status of the criminal proceeding. The Court granted Mr. Maneys request on August 11, 2022, which means the trial in this case will no longer occur in September as previously scheduled. If you were an investor, please continue to keep the Receivers office apprised of any address changes. 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. For the five-month period of September 2019 to March 2020, water, electricity, labor, and insurance costs for the Ranch was approximately $230,000. This will ensure the sales process is healthy and will maximize the sales price, which is in the best interest of the Receivership Estate. Timeline for Court Challenge to Receivers Confirmation of Claim Determination. The Court approved the sale on November 6, 2020, and the sale closed on January 14, 2021. The Case Remains Cold, Even 'Affordable Housing' In LA Isn't Affordable. 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 relevant documents can be accessed at the links below or by clicking on the documents to the right. The current sales brochure for the Ranch and the Galileo Project can be found in the Documents section of this webpage. 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. Less than an hour after signing a contract we had our doubts and were able to think it through and contacted the broker. That case, which is a separate civil lawsuit unrelated to the new criminal charges, is set to go to trial in September. The idea was that the land would appreciate in value, and when it did, all the co-owners could sell it to a developer and make a lot of money. According to a written declaration from Knight, the listing agent, she and her partner attempted to contact Jones multiple times and spoke with him twice. The blue jellyfish-like creatures were swept by the winds of California's recent storms. The criminal complaint is available in the documents section of this webpage. Each investor who submitted a challenge has been contacted by mail and email explaining the Receivers review and determination of their challenge. The motion cites water costs alone ran more than $285,000 since it was placed in the receivers hands in October 2019. The Final Determination of Investor Claims will be used to calculate the pro rata share of any distribution ordered by the Court. 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. In other words, no investor will receive the full amount of his or her claim. The contract had no cancellation period, and buyers were required to pay $41 a month in membership fees to Silver Saddle -- indefinitely. 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. We continue to receive inquiries and entertain offers for the properties. Today, most of the roads are abandoned. No. The Court took into account the Receivers concerns and recommendations, as well as those of the other interested parties. 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!

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