The relevant documents can be accessed at the links below or by clicking on the documents to the right. 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. 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. An onslaught of velella velella washed up on shore this weekend on Southern California beaches. The receiver requested the court to cancel the escrows and refund Feteriks deposit. 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. 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. October 16, 2019 Preliminary Injunction, Asset Freeze, and Confirmation of Receiver Order Issued by San Diego Superior Court. The Judges overseeing this case are Clark, Thomas S., Schuett, Stephen D. and Friedman - Retired, Gary T.. Two Los Angeles artists have new work on display. April 18, 2022 Court Grants Motion to Approve Sale of Galileo Project Land. Insperity, the payroll provider, will issue W-2s to former employees by January 31, 2020 via either U.S. mail or electronic delivery. 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. If you were an investor, please continue to keep the Receivers office apprised of any address changes. 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. The list is sorted by investor account number, which number was included in the Preliminary Claim Determination letters that were mailed to each investor. 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 Motion is posted in full in the Documents section of this webpage. How could this be happening in the 21st century? We have reviewed records from Equiant and Silver Saddle which detail the investor payments recorded by the Defendants. See March 7, 2022 post below for further information and details. The Motion to Approve the Sale of the Ranch and related documents are in the Documents section of this webpage. I mean, its the way I live my life.. The listing is available here: https://www.loopnet.com/Listing/Rutgers-Rd-Kennedy-Blvd-California-City-CA/20743529/. As Mendelsohn saw it, city folks could come and buy an empty lot -- for cheap. 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 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. It had been going on for years. 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. What You Should Know About This Year's 'Constant Bloom', You Need Child Care For Your Baby. The motion for the court to approve the sale is scheduled for Nov. 6. 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. Now, the California Department of Business Oversight has accused the company of The Court also determined that the Receiver had shown the current offer was fair and reasonable. March 29, 2023 Receivership Case Remains Stayed. A sale will eliminate substantial ongoing expenses. BC314239 Your activity looks suspicious to us. The case status is Not Classified By Court. The listing is available here: https://www.loopnet.com/Listing/Rutgers-Rd-Kennedy-Blvd-California-City-CA/20743529/. The escrows for the Ranch and Galileo Project property have been cancelled. 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. They compared California City to Las Vegas and other large cities in the Southwest that began as tiny desert outposts. Accelerated Assets wanted to postpone any sale of the Ranch so that the Ranch can be used as part of settlement negotiations it wishes to have with the Department of Financial Protection and Innovation. The blue jellyfish-like creatures were swept by the winds of California's recent storms. Our news is free on LAist. What questions do you have about Southern California? The Receiver has been marketing the Ranch through a real estate broker for sale since May. To support our non-profit public service journalism: Donate Now. 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. 2. If approved, the closing date would occur within 60 days, according to the receiver. The proposed call to approve the land sale isnt the first time the receiver has anticipated selling the resort and the project land. It was supposed to be a good investment. Silver Saddle sold shares of the landbanking project for around 100 times more than what they were really worth. Each investor would receive a part of the proceeds from the sale proportionate to the money he or she paid for the property. Because of these ongoing costs, we have determined selling the Ranch is in the best interest of the Receivership Estate. But much of the land they bought is nearly worthless. But in an interview, Maney told me he and Silver Saddle have nothing in common with Nat Mendelsohn or Great Western Cities. Please contact Silver Saddle Ranch for hours of operation; 818-325-3930 File a complaint in less than 5 minutes! We will provide a further update at that time. Winds SW at 15 to 25 mph. A copy is available the documents section of this webpage. The Court took into account the Receivers concerns and recommendations, as well as those of the other interested parties. As you may be aware, the Court approved the sale of the Silver Saddle Ranch and Club (Ranch) for $2,100,000. Mr. Maney and a number of others are facing criminal charges in connection with Silver Saddle. 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. As the Receiver, it is Mr. McNamaras job to identify, pursue, collect, and preserve 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. In other words, no investor will receive the full amount of his or her claim. Copies of the Complaint and the TRO are available in the documents section of this webpage. August 26, 2022 Receivership Case Stayed. As such, the Receiver accepted the offer and intends to seek Court authority to sell the Galileo Project land. Please continue to check the Receivers website for periodic updates. 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 agency accused Silver Saddle, Maney, Ducreux and other defendants of securities fraud and selling unqualified securities. 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 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. 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 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. 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. "This is no ordinary real estate scheme," read the report. The request to have the sale approved will be filed separately. A simple example can help explain how this works. 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. Now, the California Attorney General has charged nine of those salespeople with felonies. 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. Trial is presently scheduled for May of this year. Thomas W. McNamara was appointed as the Receiver in this case. The Motion details the proposed distribution process. Every weekday, you'll get fresh, community-driven stories that catch you up with our independent local news. Most of the land Mendelsohn sold was bought by participants of a program he created that taught people how to be a real estate agent-- by selling land in California City. 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. 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 Receivership Estate will not be able to fund these costs for very long. On September 29, 2020, California City approved the Ranch for a lower water rate, which should result in lower water bills. Accordingly, he filed a Motion for Approval of Proposed Distribution Method and Procedures with the Court asking for permission to make a first distribution. We continue to receive inquiries and entertain offers for the properties. DBO also filed a motion for preliminary injunction to stop these additional corporate defendants from collecting money related to the Galileo Project. The Court said that the Receiver can continue to collect funds for the Receivership Estate, but the stay may affect the timing of a distribution to investors. In July, Mr. Maney asked the Court to stay this case, which would put the case on hold, until the criminal case is finished. For example, to date the Receiver has paid $285,580 for water alone. The motion cites water costs alone ran more than $285,000 since it was placed in the receivers hands in October 2019. Sorry, there are no recent results for popular commented articles. The Receiver hired counsel for both matters. The Court ordered that the Receiver cannot distribute any money to investors until the end of the case. The case status is Pending - Other Pending. 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. Help us provide credible local journalism and timely NPR reporting to our entire community. Relief Defendants named in the Complaint are: Marian G. Ducreux; Clifford J. Reynolds; and Wayne A. Pedersen. LAist is part of Southern California Public Radio, a member-supported public media network. 6. 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. He envisioned building a city of 200 square miles in this otherwise desolate spot. Maney opposed the sale because he wants to propose a joint venture in which the Ranch is included in an agreement between the investors and a third party, Rick Jones. September 24, 2020 Ranch and Galileo Project Property Update. Many were young couples and hard-working immigrants looking to build a better future. Higher wind gusts possible. In March 2022, we sent out 2,970 letters to investors notifying them of the Receivers Preliminary Claim Determinations. Sales agents allegedly used high-pressure tactics that made it very difficult for potential customers to say no. 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. Landbanking is where a group of people jointly own a huge chunk of land. The case is still on-going. The contract had no cancellation period, and buyers were required to pay $41 a month in membership fees to Silver Saddle -- indefinitely. Background on the Process to Reach a Final Determination of Investor Claims. The Ranch has been listed for $1,874,500. Each investor will, however, receive a part of the proceeds from the sale proportionate to the money he or she paid for the property, as described in the recently distributed Claim Determination letters. A telephonic hearing has been set for August 27, 2020 at 9:00 a.m. to allow for full briefing on the matter. 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. All the parties will be provided certain due diligence materials (e.g., preliminary title report, seller disclosures, etc.) Instead, each investor will receive a share of the proceeds proportionate to his or her investment in the Galileo Project (a pro rata share). 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. On November 6, 2020, the Court held a hearing on the Receivers Motion to Approve Sale of the Silver Saddle Ranch and Club. The land sale scheme later became the subject of an eight-part LAist podcast California City.. lawsuit on September 9, 2019 against Defendants. If you're enjoying this article, you'll love my daily morning newsletter, How To LA. 12. 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). While we have carefully considered the concerns raised by these investors, they do not have legal standing to object to the sale of the Ranch. Case Details Parties Documents Dockets Case Details The case status is Other. On January 14, 2022, the Court granted the Receivers request. Notice of this filing will be provided to investors by email and via posting on the receivership website. Family Says Mental Health System Failed Their Son, A Los Angeles Family Seeks Answers And Accountability After Black Mom Dies In Childbirth. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo Project investors. California City is filled with signs advertising vacant land for sale. Get our daily newsletters for the latest on COVID-19 and other top local headlines. 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. Family Says Mental Health System Failed Their Son, A Los Angeles Family Seeks Answers And Accountability After Black Mom Dies In Childbirth. Around the same time, a young Ralph Nader asked his gang of consumer protection attorneys, the "Nader's Raiders," to investigate land sales and development throughout California. 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. 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. In its motion, the receiver stressed the desire to unload the storied property as it represented its largest and most costly asset. THE CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT CHARGED SILVER SADDLE WITH FRAUD AND SHUT THE COMPANY DOWN IN 2019. They could build a house, or just hold onto the land and sell it in the future. 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. 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. 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. 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 When the court-appointed receiver took over last September, Silver Saddle's finances were a mess. 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. The case status is Disposed - Dismissed. 5. 9, 2021), Receiver's Motion for Proposed Distribution to Investors (Feb. 8, 2021), Receiver's 3rd Interim Status Report (Jan. 14, 2021), Minute Order Granting Receivers Motion to Approve Sale of Ranch (Nov. 6, 2020), Receiver's 2nd Motion to Approve Sale of Ranch (Oct. 13, 2020), Receiver's 2nd Interim Status Report (Sept. 15, 2020), Silver Saddle Resort Sales Brochure (August 24, 2020), Galileo Parcels Sales Brochure (August 24, 2020), Receiver's Ex Parte Appl'n for Order Cancelling Escrows (Aug. 5, 2020), Preliminary Injunction re Accelerated Assets; SS Purchco; and Pahrump Valley Real Estate Co. (July 24, 2020), Minute Order re Motion to Intervene and for Preliminary Injunction (July 24, 2020), Moody Decl. Thats when the California Department of Financial Protection and Innovation raided Silver Saddles headquarters, halted all sales operations and took control of its bank accounts. The price was adjusted a few times before stabilizing at $1.87 million. 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. No, the Ranch was permanently closed and recently sold to a third party pursuant to a Mendelsohn advertised the program in major newspapers around the West, and it was wildly successful. If no objections are filed with the Court, the Receiver will promptly file a proposed Order approving the Receivers claim determinations. Finally, last year, the parties filed a Joint Stipulation to Continue the trial and related dates and deadlines to allow them to address discovery and potential settlement issues, which the Court granted on October 22, 2021. DON'T MISS ANY L.A. CORONAVIRUS NEWS The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo Project investors. 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. 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. Even though operating expenses have been reduced, maintaining the Ranch continues to drain the limited resources of the Receivership Estate. And lets assume the receivership has $100 to distribute to the investors. Most of the money, the DBO learned, was gone. (Chava Sanchez/KPCC). 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. March 7, 2022 Notice to Silver Saddle Investors of Claim Determinations. This case was filed in Kern County Superior Courts, Metropolitan Branch located in Kern, California. The investment claims to be at least $54 million. Of the four purchase offers presented for the Ranch, the Receiver has accepted an offer of $1,774,500. The DFPI alleged that Defendants . If the motion is granted, the closing should occur 60 days thereafter. 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. 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. Now, survivors and their descendants seek reparations.

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