You have permission to edit this article. In order to move promptly when the case is resolved, we are providing notice to all investors of the Receivers claim determinations. 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. 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. According to court documents, Jones claimed his offer was not given a full and fair evaluation., A previous motion stated that Mr. To make sure you get our coverage: Sign up for our daily newsletters. 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. On March 13, 2020, the Receiver filed the first status report. 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. 4, 2022), Knight Decl. And the total claim will be used to determine the investors pro rata share of any distribution(s) ordered by the Court. Copies of the Complaint and the TRO are available in the documents section of this webpage. 7, 2022), Receiver's Motion to Approve Sale of Galileo Project Land (Mar. 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. In addition to these structures, the ranch includes a stable and adjacent corral for animals, as well as a variety of amenities which were offered to guests: two swimming pools, a hot tub, man-made lakes, an RV park, and space for various sporting activities (miniature golf, basketball, tennis, volleyball, and badminton courts, etc.). The Receiver will reply to any objections and the Court will rule. Family Says Mental Health System Failed Their Son, A Los Angeles Family Seeks Answers And Accountability After Black Mom Dies In Childbirth. That case, which is a separate civil lawsuit unrelated to the new criminal charges, is set to go to trial in September. Six former employees of the Saddle Ranch Chop House restaurant on the Sunset Strip in West Hollywood are suing the eatery chain, alleging they were subjected to sexual harassment by an. Knight stated she emailed Jones the submission forms for the offer, confirmed the acreage size of the ranch listing and offered another tour, which was declined. They had an elaborate referral program: Anyone who bought a share of the landbanking project and then referred their friends would receive $2,000. Our news is free on LAist. March 29, 2023 Receivership Case Remains Stayed. If approved, the closing date would occur within 60 days, according to the receiver. Every investor should carefully review the Receivers claim determination. We just don't do it. 60 Years Of Deception And Land Sales In California City: 7 Takeaways From My Investigative Podcast, California City Podcast: State Adds Use Of Cell Phone Jammers to Complaint Against Silver Saddle, 'California City' Podcast Tells The Dark Side Of The American Dream. 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. To support our non-profit public service journalism: Donate Now. Insperity, the payroll provider, will issue W-2s to former employees by January 31, 2020 via either U.S. mail or electronic delivery. 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. This case was filed in San Diego County Superior Courts, San Diego Central Courthouse located in San Diego, California. New potential buyer found for Silver Saddle Ranch, BY JACK BARNWELL Mismanagement, Sloppy Hiring Practices, Lack Of Transparency. 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. When the court-appointed receiver took over last September, Silver Saddle's finances were a mess. According to the receiver, Feterik eventually withdrew his objection and the receiver re-opened the sales process for both Silver Saddle and the Project properties. 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. 3. 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 Court took into account the Receivers concerns and recommendations, as well as those of the other interested parties. Based on an independent appraisal prepared for the Galileo Project Land, the Receiver believes the price is more than fair and reasonable. As you may be aware, the Court approved the sale of the Silver Saddle Ranch and Club (Ranch) for $2,100,000. The list is sorted by investor account number, which number was included in the Preliminary Claim Determination letters that were mailed to each investor. He envisioned building a city of 200 square miles in this otherwise desolate spot. If you believe the email or mail address the Receiver has for you is incorrect, you should immediately provide the correct address(es) to the Receiver by sending an email to: info@regulatoryresolutions.com, with Silver Saddle in the subject line of the email. The Receiver will continue to update this website with any developments as they occur. 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. Trial is presently scheduled for May of this year. For the five-month period of September 2019 to March 2020, water, electricity, labor, and insurance costs for the Ranch was approximately $230,000. "Mendelsohn isn't trying to sell land, and the public isn't really buying the land. Why A Key Program Is Falling Short, An Agonizing Battle With Schizophrenia Ends On A California Freeway. At the same time the Receiver accepted an offer to purchase the Silver Saddle Ranch, he accepted an offer to purchase the Galileo Project Land. The developer of California City, Nat Mendelsohn, built hundreds of miles of roads through the empty desert. Both purchases needed to be approved by the Court before they could proceed. 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. As the Receiver, it is Mr. McNamaras job to identify, pursue, collect, and preserve the assets of the Receivership Estate while the lawsuit proceeds. 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. You can either mail the information to: Silver Saddle Receiver c/o Regulatory Resolutions 655 W. Broadway, Suite 900 San Diego, CA 92101. 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. In July, the receiver eventually accepted an offer from Kevin Feterik, who had partnered with local businessman Leland Krelle, for $1.77 million. 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 Receiver selected Kidder Mathews as the real estate brokers to market the Ranch property, and the listing went active on May 8, 2020. Claim Determination letters have gone out today to Silver Saddle investors who invested in the Galileo Project (sometimes called LandBanking Plus). Leads Ali Wong and Steven Yeun issue a joint statement along with show creator Lee Sung Jin. The Receiver has been marketing the Ranch through a real estate broker for sale since May. Who knows when we'll see such vibrance again in this recently drought-choked land? 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. 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. The sale of the Galileo Project Land, however, was put on hold. The new trial date is May 6, 2022. The proposed call to approve the land sale isnt the first time the receiver has anticipated selling the resort and the project land. The current sales brochure for the Ranch and the Galileo Project can be found in the Documents section of this webpage. Feterik initially resisted the attempt to cancel the escrow. If the Motion is granted, the Receiver will be able to start the distribution process. In 1984, the company declared bankruptcy. The Motion was opposed by Defendant Accelerated Assets and Defendant Thomas Maney. Today on Public Media Giving Day, keep LAist strong with your support. For example, assume that Investor As claim is $30,000, Investor Bs claim is $50,000, and aggregate investor claims of $1,000,000. 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. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo Project investors. 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. The California Department of Business Oversight ("DBO") filed its civil lawsuit on September 9, 2019 against Defendants. We have also accepted an offer to purchase the Galileo Project vacant land for $775,500. However, the receiver soon received complaints from Maney and from local businessman Rick Jones. The sale is set to close in 60 days. inter alia, defendants Silver Saddle Ranch & Club, Inc. (SSRC), Silver Saddle Commercial Development, LP (SSCD), Galileo Commercial Property Owners Association, Inc. (GCPOA), and Thomas M. Maney (Maney), alleging that said defendants offered and sold to the public an DBO contends that businessman Thomas Maney and other associates conned people into purchasing land shares on theGalileo Project with the promise of earning a significant return on investment down the road. 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. After hearing argument, the Court granted the Receivers Motion and approved the sale of the Ranch. Today on Public Media Giving Day, keep LAist strong with your support. The lowest water bill was $4,339 for mid-March 2020 to mid-April 2020. Although the sale closed as scheduled, High Plains Mesa Holdings filed a Notice of Appeal of the Courts Order authorizing the sale. Parent and Community Center Grand Opening, Tehachapi area Crime Data Report for March, U.S. 395 to Close for Emergency Infrastructure Damage Repairs. Graduates of the program were expected to buy a piece of land themselves, and refer their friends and family. 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. April 18, 2022 Court Grants Motion to Approve Sale of Galileo Project Land. 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. For decades, real estate developers have sold a dream here: if you buy land now, youll be rich one day. However, because the Silver Saddle Ranch & Club and the Galileo Project land are worth far less than the investors . 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. August 17, 2020 Postponement of Receivers Motion to Cancel Escrows. The Ranch is listed for $1,874,500. The receiver noted in the motion that many of these amenities were modestly constructed, outdated, and poorly maintained.. "The only similarity is that we sold land," he said. This case was filed in Los Angeles County Superior Courts, Spring Street Courthouse located in Los Angeles, California. 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. Port officials say "resuming cargo operations at Americas busiest port complex is critical to maintaining confidence of our customers and supply chain stakeholders.". Mendelsohn advertised the program in major newspapers around the West, and it was wildly successful. 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. They watched a presentation about the area's potential. If no objections are filed with the Court, the Receiver will promptly file a proposed Order approving the Receivers claim determinations. The Court also determined that the Receiver had shown the current offer was fair and reasonable. Each investor who submitted a challenge has been contacted by mail and email explaining the Receivers review and determination of their challenge. 4. Lets assume Investor A invests $200, Investor B invests $500, and Investor C invests $300 for a total of $1,000 invested. CALIFORNIA CITY WAS FOUNDED BY A CZECHOSLOVAKIAN IMMIGRANT WITH A VISION TO BUILD A CITY FROM SCRATCH IN THE DESERT. In other words, Investor A provided 20%, Investor B provided 50%, and Investor C provided 30% of the total investment. Silver Saddle Ranch & Club, Inc. Summary: This case is a class action lawsuit against Silver Saddle Ranch & Club, Inc. for violations of consumer fraud. Since 2011, Silver Saddle's sales agents sold "shares" of the landbanking project to more than 2,000 people, for up to $30,000 each. The receiver also accepted a separate $775,000 offer from Feterik to purchase the Project land. It is currently listed for $1,895,000. Who knows when we'll see such vibrance again in this recently drought-choked land? Relief Defendants named in the Complaint are: Marian G. Ducreux; Clifford J. Reynolds; and Wayne A. Pedersen. 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. May 3, 2022 Final Determination of Investor Claims. 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. Why A Key Program Is Falling Short, An Agonizing Battle With Schizophrenia Ends On A California Freeway. On September 28, the Receiver agreed to a sales price of $2,100,000 for the Ranch. 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. Every two years, Desert X presents site-specific outdoor installations throughout the Coachella Valley. 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). We can only do this important work with your help. The Receiver will proceed with hiring a realtor and proceeding with listing and marketing the properties. The day after filing the Notice of Appeal, High Plains Mesa Holdings and High Plains Mesa Management filed for bankruptcy. October 16, 2019 Preliminary Injunction, Asset Freeze, and Confirmation of Receiver Order Issued by San Diego Superior Court. 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 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. 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. In other words, no investor will receive the full amount of his or her claim. The case remains pending in San Diego County Superior Court, with a current trial date of January 21, 2022. During the sales pitch, potential customers were divided up by ethnicity and paired with a salesperson who spoke their primary language. Case Details Parties Documents Dockets. Port officials say "resuming cargo operations at Americas busiest port complex is critical to maintaining confidence of our customers and supply chain stakeholders.". LAist is part of Southern California Public Radio, a member-supported public media network. In the 1970s, a man named Tom Maney began working for Great Western Cities. In September 2019, the California Department of Business Oversight filed a lawsuit against Silver Saddle, accusing the company of securities fraud. 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. What about Silver Saddle Ranch & Club - is it still open? At that time, the Receiver will also file a Notice of Final Determination of Claims with the Court. Escrow was opened on September 29, and the proposed buyer has 21 days to clear contingencies. 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. If you're enjoying this article, you'll love my daily morning newsletter, How To LA. 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. That same year, Nat Mendelsohn died. What You Should Know About This Year's 'Constant Bloom', You Need Child Care For Your Baby. 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. The Ranch has been listed for $1,874,500. 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. For the latest national news from NPR and our live radio broadcast, visit LAist.com/radio. If you have a tip or story to share about California City or Silver Saddle (or anything else), email me: eguerin@scpr.org. 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. Instead, each investor will receive a share of the proceeds proportionate to his or her investment in the Galileo Project (a pro rata share). July 17, 2020 Results of Hearing on Receivers Ex Parte Application. A copy of the Receivers First Interim Status Report is posted in the Documents section of this webpage. Receivers Notice of Final Claim Determinations and Proposed Distribution.

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