Investors will have 90 days to cash the checks. The motion cites water costs alone ran more than $285,000 since it was placed in the receivers hands in October 2019. Feterik initially resisted the attempt to cancel the escrow. "This is no ordinary real estate scheme," read the report. That same year, Nat Mendelsohn died. California City is filled with signs advertising vacant land for sale. While the Ranch may be the Receivership Estate's most valuable asset, its costly upkeep, utilities, and insurance will soon deplete the limited funds of the Receivership Estate if it is not sold, the motion states. Please prove that you're human. The Court took into account the Receivers concerns and recommendations, as well as those of the other interested parties. 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. The day after filing the Notice of Appeal, High Plains Mesa Holdings and High Plains Mesa Management filed for bankruptcy. However, the receiver soon received complaints from Maney and from local businessman Rick Jones. The Court approved the sale on November 6, 2020, and the sale closed on January 14, 2021. Leads Ali Wong and Steven Yeun issue a joint statement along with show creator Lee Sung Jin. New potential buyer found for Silver Saddle Ranch, BY JACK BARNWELL The complaints about California City caught the eye of the attorney leading the project, who included a chapter on the city in the report. 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 lowest water bill was $4,339 for mid-March 2020 to mid-April 2020. 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. As a result, the properties continue to be marketed and listed through our real estate broker. The Receiver hired counsel for both matters. He spent a free weekend there in 2017, and ended up forking over $30,000 for a confusing, desert-land investment product. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo investors. On March 13, 2020, the Receiver filed the first status report. It had been going on for years. However, before this can occur, the current escrows must be canceled. 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. The land sale scheme later became the subject of an eight-part LAist podcast California City.. 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. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo Project investors. A trial date has been set for July 2021. 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. The Courts decision means that when the sale closes, the Silver Saddle investors will no longer have an interest in the Galileo Project Land. At that time, you must provide copies (please do NOT send original documents) of all the information and documents supporting your challenge, for example bank statements and the front and back of cancelled checks. The Receivership Estate will not be able to fund these costs for very long. This case was filed in Los Angeles County Superior Courts, Stanley Mosk Courthouse located in Los Angeles, California. 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. If you're enjoying this article, you'll love my daily morning newsletter, How To LA. On January 14, 2022, the Court granted the Receivers request. The Court ordered that the Receiver cannot distribute any money to investors until the conclusion of the case. 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. In my reporting, I learned that Silver Saddles land sale scheme was essentially an open secret in Kern County. As the Receiver, it is Mr. McNamaras job to identify, pursue, collect, and preserve the assets of the Receivership Estate while the lawsuit proceeds. Get our daily newsletters for the latest on COVID-19 and other top local headlines. Relief Defendants named in the Complaint are: Marian G. Ducreux; Clifford J. Reynolds; and Wayne A. Pedersen. Leads Ali Wong and Steven Yeun issue a joint statement along with show creator Lee Sung Jin. 2. However, the Court did ultimately approve the Receivers proposed method and procedures for a distribution. Prior to the hearing, the Court issued a tentative ruling approving the sale. The sale has been structured to allow the buyer 30 days to clear contingencies for the Ranch property and closing will be 60 days after the Court approves the sale. 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. Will Orange County's Fledgling Clean Power Agency Survive? 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. 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. Once final determinations are reached, every investor who made a challenge will be notified via mail and/or email and by posting notice on the receivership website of the final outcome. We will update again after September 15, 2023 status hearing or before if events merit. Timeline for Court Challenge to Receivers Confirmation of Claim Determination. The agency accused Silver Saddle, Maney, Ducreux and other defendants of securities fraud and selling unqualified securities. As we have noted repeatedly, calculating the Final Claim Determination amounts does NOT mean investors will receive those amounts. Windy with sunshine. the assets of the Receivership Estate while the lawsuit proceeds. The prospective purchaser agreed to cancel the escrows, thus eliminating the need for the Receivers motion and the hearing on the matter. The case status is Disposed - Dismissed. The vegetation varies from cottonwood trees and willows along the riparian corridor to the irrigated pasture fields and . July 10, 2020 Offer to Purchase Silver Saddle Ranch and Club. For decades, real estate developers have sold a dream here: if you buy land now, youll be rich one day. Because of these ongoing costs, we determined selling the Ranch is in the best interest of the Receivership Estate. The motion for the court to approve the sale is scheduled for Nov. 6. Port officials say "resuming cargo operations at Americas busiest port complex is critical to maintaining confidence of our customers and supply chain stakeholders.". Thousands of people bought this dream. Every investor should carefully review the Receivers claim determination. 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. Port officials say "resuming cargo operations at Americas busiest port complex is critical to maintaining confidence of our customers and supply chain stakeholders.". 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. A sale will eliminate substantial ongoing expenses. 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). It seemed like such an anachronism, a relic of Southern California post-war hubris, or maybe even Gold Rush-style boosterism. 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 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 Receiver has suspended all business operations, including the Silver Saddle Ranch & Club. Investors Reviews of Claim Determinations. Silver Saddle Ranch and Club (Ranch), located at 20751 Aristotle Drive, California City, California 93505. 14,248 were here. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo Project investors. Case Summary. Although the sale closed as scheduled, High Plains Mesa Holdings filed a Notice of Appeal of the Courts Order authorizing the sale. We have reviewed records from Equiant and Silver Saddle which detail the investor payments recorded by the Defendants. One offer fell too low beneath the listing price. The listing is available here: https://www.loopnet.com/Listing/Rutgers-Rd-Kennedy-Blvd-California-City-CA/20743529/. 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. After obtaining an extensive appraisal, the Receivers team interviewed and selected a broker, Kidder Mathews, to sell the Ranch. In that scenario, Investor As pro rata share is 3% and Investor Bs pro rata share is 5%. For the five-month period of September 2019 to March 2020, water, electricity, labor, and insurance costs for the Ranch was approximately $230,000. 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. After 14 days, the Receiver will respond to any investor objections filed with the Court, so that the Court can evaluate the Receivers calculations. 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. Every weekday, you'll get fresh, community-driven stories that catch you up with our independent local news. 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. After the Nader's Raiders' published their report in 1971, the Federal Trade Commission began to investigate. The Receiver will proceed with hiring a realtor and proceeding with listing and marketing the properties. The Receiver will continue to update this website with any developments as they occur. The investment claims to be at least $54 million. 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 additional investor distribution. 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. 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. The trial date in this case remains the same, September 16, 2022. Trial is presently scheduled for May of this year. It is currently listed for $1,895,000. August 17, 2020 Postponement of Receivers Motion to Cancel Escrows. I wish (the salespeople) realize how much they cost all the families, he said. In the 1970s, a man named Tom Maney began working for Great Western Cities. You have permission to edit this article. Notice of this filing will be provided to investors by email and via posting on the receivership website. (Chava Sanchez/KPCC). The Judge overseeing this case is Joel R. Wohlfeil. Heres How To Start Your Search, Emmery Muoz, 14, Was Killed In LA 17 Years Ago. 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. July 17, 2020 Results of Hearing on Receivers Ex Parte Application. What about Silver Saddle Ranch & Club - is it still open? 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. Most of the money, the DBO learned, was gone. If no objections are filed with the Court, the Receiver will promptly file a proposed Order approving the Receivers claim determinations. Winds could occasionally gust over 40 mph.. A few passing clouds, otherwise generally clear. We will provide an update after the August 27 hearing. On July 24, 2020, Judge Wohlfeil denied the Motion to Intervene filed by Antonio Garcia and Carlos Novelo. It was supposed to be a good investment. 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. Now, survivors and their descendants seek reparations. According to the court document, the ranch includes six primary buildings: a club. We have also accepted an offer to purchase the Galileo Project vacant land for $775,500. The blue jellyfish-like creatures were swept by the winds of California's recent storms. For additional details on the sale of the Ranch, please see below. These expenses include water, electricity, labor, and insurance costs. The letters explained how to challenge the Preliminary Determination if an investor felt the determination was incorrect. 2 talking about this. The resort was listed at $1.87 million and theGalileo Project at $919,746. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo Project investors. The Receiver has also submitted to the Court a proposed order approving the sale. 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.. DBO also stated that many victims spent as much as $30,000 in a scheme that lasted eight years. For example, assume that Investor As claim is $30,000, Investor Bs claim is $50,000, and aggregate investor claims of $1,000,000. After the Court does so, the Receiver will submit a proposed Order to the Court consistent with the ruling. 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. 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. 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. A lot of it was used to pay sales agents. The hearing originally set for August 19, 2020 on the Receivers motion to approve the sale of real property owned by Silver Saddle Ranch & Club, Inc. has been taken off calendar. See March 7, 2022 post below for further information and details. March 29, 2023 Receivership Case Remains Stayed. I mean, its the way I live my life.. The Court will hear the Motion in a telephonic hearing on March 19 at 9:00 a.m. 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 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. Will Orange County's Fledgling Clean Power Agency Survive. LAist is part of Southern California Public Radio, a member-supported public media network. Many were young couples and hard-working immigrants looking to build a better future. 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.. No, the Ranch was permanently closed and recently sold to a third party pursuant to a The Receiver also filed a Response to the Motion to Intervene filed by Antonio Garcia and Carlos Novelo. 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 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. Background on the Process to Reach a Final Determination of Investor Claims. 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. That case, which is a separate civil lawsuit unrelated to the new . Between 2011 and 2019, Silver Saddle made more than $56 million. 5. The highest water bill was $46,864 for mid-October 2019 to mid-November 2019. The current sales brochure for the Ranch and the Galileo Project can be found in the Documents section of this webpage. 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 deadline for bids on the Ranch and the Galileo Project properties was September 14, 2020 at 10:00 a.m. Family Says Mental Health System Failed Their Son, A Los Angeles Family Seeks Answers And Accountability After Black Mom Dies In Childbirth. Each sale is alleged to be a separate violation. 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. A copy of the listing brochure is posted in the documents section. They watched a presentation about the area's potential. A photo of Nat Mendelsohn, the founder of California City, on the cover of the 1961 annual report to property owners. The listing is available here: https://www.loopnet.com/Listing/20751-Aristotle-Dr-California-City-CA/19775266/. When the court-appointed receiver took over last September, Silver Saddle's finances were a mess. As you may be aware, the Court approved the sale of the Silver Saddle Ranch and Club (Ranch) for $2,100,000. 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. As we have stated on this webpage, and in our emails to investors, any distributions to investors will only take place after the conclusion of the case. CALIFORNIA CITY WAS FOUNDED BY A CZECHOSLOVAKIAN IMMIGRANT WITH A VISION TO BUILD A CITY FROM SCRATCH IN THE DESERT. Please notify us immediately if your mailing address has changed. Upon receipt of an acceptable offer(s), the Receiver will then bring the issue before the Court, August 27, 2020 Ranch and Galileo Project Property Update. 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. 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. Landbanking is where a group of people jointly own a huge chunk of land. On May 13, 2021, the Receiver asked the Court for permission to proceed with the sale of the land to the solar energy company. To that end, on February 8, 2021, the Receiver filed a Motion to Approve Distribution Method and Procedures (Motion). A promotional brochure from Silver Saddle, which is part of the DBO's lawsuit against the company. In a Judicial Council form complaint filed May 25, 2012, Craig alleged he was injured on October 10 or 11, 2010 while a customer at a restaurant in Universal City owned by Saddle Ranch, a limited liability company, when the chair in which he was sitting collapsed. 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. Please contact Silver Saddle Ranch for hours of operation; 818-325-3930 File a complaint in less than 5 minutes! Copies of the Complaint and the TRO are available in the documents section of this webpage. People needed a place to go, to start over. 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). The sale is set to close in 60 days. Instead Judge Wohlfeil treated the ex parte application as an application for order shortening time, which he granted. 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). Escrow was opened on July 2, 2020. In this new podcast from LAist Studios, host Emily Guerin tells a story of money, power and deception. And the total claim will be used to determine the investors pro rata share of any distribution(s) ordered by the Court. Who knows when we'll see such vibrance again in this recently drought-choked land?

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