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. As we previously reported, even though operating expenses have been reduced, maintaining the Silver Saddle Ranch and Club (Ranch) continues to drain the limited resources of the Receivership Estate. But in an interview, Maney told me he and Silver Saddle have nothing in common with Nat Mendelsohn or Great Western Cities. 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. Unfortunately, the Receiver did not receive acceptable offers before the deadline. This class action lawsuit was filed on 01/25/2022 in Orange County Superior Court. In March 2022, we sent out 2,970 letters to investors notifying them of the Receivers Preliminary Claim Determinations. Get our daily newsletters for the latest on COVID-19 and other top local headlines. 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. The Ranch has been listed for $1,874,500. The Receiver has also submitted to the Court a proposed order approving the sale. lawsuit on September 9, 2019 against Defendants. The motion cites water costs alone ran more than $285,000 since it was placed in the receivers hands in October 2019. They could build a house, or just hold onto the land and sell it in the future. Investors Reviews of Claim Determinations. 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. High near 70F. Silver Saddle Receivership FAQs Updated as of 10/10 . But much of the land they bought is nearly worthless. The Court will need to approve a distribution before the proceeds from the sale can be distributed to investors. July 10, 2020 Offer to Purchase Silver Saddle Ranch and Club. 4, 2022), Knight Decl. In order to move promptly when the case is resolved, we are providing notice to all investors of the Receivers claim determinations. If you'd like to follow the Silver Saddle court case, follow me on Twitter: @guerinemily. A judge appointed a receiver to take control of the company's assets and property while the case proceeds. A telephonic hearing has been set for August 27, 2020 at 9:00 a.m. to allow for full briefing on the matter. Silver Saddle lured prospective buyers from around California with the promise of a free weekend at the ranch. January 17, 2020 W-2s for Former Employees. The Court ordered that the Receiver cannot distribute any money to investors until the end of the case. 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. Bids for the Ranch are due on September 14, 2020 by 10:00 a.m. April 18, 2022 Court Grants Motion to Approve Sale of Galileo Project Land. 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. In July, Mr. Maney asked the Court to stay this case, which would put the case on hold, until the criminal case is finished. The Judges overseeing this case are JOHN J. KRALIK and WILLIAM F. HIGHBERGER. All the parties will be provided certain due diligence materials (e.g., preliminary title report, seller disclosures, etc.) No. 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. Investors should look for the letter in the U.S. mail. The Motion to Approve the Sale of the Ranch and related documents are in the Documents section of this webpage. 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. We will provide an update after the August 27 hearing. IT'S UNLIKELY THAT PEOPLE WHO INVESTED IN SILVER SADDLE WILL GET THEIR MONEY BACK. 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. For additional details on the sale of the Ranch, please see below. If you opted out of electronic delivery, Insperity will mail the W-2 to your home address that was on file as of December 31, 2019. What about Silver Saddle Ranch & Club - is it still open? This case was filed in Kern County Superior Courts, Metropolitan Branch located in Kern, California. 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. 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. A lot of it was used to pay sales agents. The escrows for the Ranch and Galileo Project property have been cancelled. The Judge overseeing this case is Joel R. Wohlfeil. If you're enjoying this article, you'll love my daily morning newsletter, How To LA. 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. 4. The minute order granting the Receivers motion is in the documents section of this webpage. Now, the California Attorney General has charged nine of those salespeople with felonies. In May 2020, DBO filed an amended complaint, adding additional defendants, SS Purcho, LLC, Accelerated Assets, LLC, and Pahrump Valley Real Estate Co., LLC. As a result, the properties continue to be marketed and listed through our real estate broker. The Court also determined that the Receiver had shown the current offer was fair and reasonable. The results were as follows: 23 challenges were denied, 17 resulted in an adjustment to the claim determination amount, and 3 were accepted completely. Relief Defendants named in the Complaint are: Marian G. Ducreux; Clifford J. Reynolds; and Wayne A. Pedersen. As such, the Receiver accepted the offer and will soon seek Court authority to sell the Galileo Project land. 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. 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 Silver Saddle Ranch was acquired for its combination of recreation potential, unique natural resources and its strategic location as a natural bridge connecting the Pine Nut Mountains and the Prison Hill Recreation Area. Help us provide credible local journalism and timely NPR reporting to our entire community. BC314239 Your activity looks suspicious to us. He spent a free weekend there in 2017, and ended up forking over $30,000 for a confusing, desert-land investment product. The sale of the Galileo Project Land, however, was put on hold. Temporary Restraining Order and Appointment of a Receiver Issued by San Diego County Superior Court. Winds could occasionally gust over 40 mph.. A few passing clouds, otherwise generally clear. Claim Determination letters have gone out today to Silver Saddle investors who invested in the Galileo Project (sometimes called LandBanking Plus). As such, the Receiver intends to seek Court authority to sell the Galileo Project land. 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. Even with the reduced water rates, we expect water will continue to be a substantial expense and all other expenses will continue e.g., electricity, labor, and insurance. 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. 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. There will not be a hearing on August 27, 2020 to cancel the escrows. 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. re Receiver's Motion to Approve Sale of Galileo Project Land (Mar. Those investors who sent written challenges to the Receivers claims determinations and still disagree with the Receivers Final Determination may submit a written objection to the Court within fourteen (14) days of the Receivers filing of the Final Determination of Claims. The charges include conspiracy to commit a crime, grand theft of personal property, securities fraud and use of a scheme to defraud a consumer regarding the sale of securities. After the Receiver reaches final determinations on all claims, a Notice of Final Determination and Proposed Distribution will be filed with the Court. 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. 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. Silver Saddle Ranch & Club Inc :: Superior Court of California, County of Los Angeles :: State Civil Lawsuit No. On 09/09/2019 People of the State of California filed an Other lawsuit against Silver Saddle Commerical Development LP. 4, 2022), Gordon 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. These expenses include water, electricity, labor, and insurance costs. Feterik initially resisted the attempt to cancel the escrow. It was supposed to be a good investment. The listing is available here: https://www.loopnet.com/Listing/20751-Aristotle-Dr-California-City-CA/19775266/. CALIFORNIA CITY WAS FOUNDED BY A CZECHOSLOVAKIAN IMMIGRANT WITH A VISION TO BUILD A CITY FROM SCRATCH IN THE DESERT. The contract had no cancellation period, and buyers were required to pay $41 a month in membership fees to Silver Saddle -- indefinitely. Each investor would receive a part of the proceeds from the sale proportionate to the money he or she paid for the property. The receiver moved to expedite the sale. Many of those consumers ended up spending tens of thousands of dollars on land they were made to believe would be worth much more in the near future. No, the Ranch was permanently closed and recently sold to a third party pursuant to a The Top 5 newsletter catches you up with LAs top 5 stories in just 3 minutes. We will provide an update if the trial date changes. July 17, 2020 Results of Hearing on Receivers Ex Parte Application. 3. The lowest water bill was $4,339 for mid-March 2020 to mid-April 2020. The day after filing the Notice of Appeal, High Plains Mesa Holdings and High Plains Mesa Management filed for bankruptcy. 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. Even though operating expenses have been reduced, maintaining the Ranch continues to drain the limited resources of the Receivership Estate. Thousands of people bought this dream. I wish (the salespeople) realize how much they cost all the families, he said. The Receiver intends to seek Court permission to proceed with the sale. After 14 days, the Receiver will respond to any investor objections filed with the Court, so that the Court can evaluate the Receivers calculations. California City is filled with signs advertising vacant land for sale. The Receiver will proceed with hiring a realtor and proceeding with listing and marketing the properties. After completing this process, the Receiver will select the best offer and submit it to the Court for consideration. 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 Receiver will reply to any objections and the Court will rule. Here are 7 key takeaways: 1. Silver Saddle Ranch and Club (Ranch), located at 20751 Aristotle Drive, California City, California 93505. An escrow account was opened on Sept. 29 with a $100,000 deposit. Here Are The Legal Hurdles That Could Face, Your SoCal Weather Report: Get The Rain Boots Back Out And Brace For Gray Skies, Emily Guerin tells a story of money, power and deception, 'Beef' Stars Defend David Choe Casting. Mismanagement, Sloppy Hiring Practices, Lack Of Transparency. The Silver Saddle Ranch in California City, California has been closed to the public and visitors. The Receiver has retained counsel to address both the appeal and the bankruptcies. Parent and Community Center Grand Opening, Tehachapi area Crime Data Report for March, U.S. 395 to Close for Emergency Infrastructure Damage Repairs. We have also accepted an offer to purchase the Galileo Project vacant land for $775,500. MENDELSOHN'S SALES TACTICS DREW THE ATTENTION OF RALPH NADER, AND GOT THE COMPANY IN SERIOUS TROUBLE WITH THE FEDERAL TRADE COMMISSION. The receiver countered at $2.1 million/$900,000, which was accepted. A copy of the listing brochure is posted in the documents section. (Chava Sanchez/KPCC). At that time, the Receiver will also file a Notice of Final Determination of Claims with the Court. Who knows when we'll see such vibrance again in this recently drought-choked land? It is currently listed for $1,895,000. Now, survivors and their descendants seek reparations. 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. 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 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. The vegetation varies from cottonwood trees and willows along the riparian corridor to the irrigated pasture fields and . 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 case status is Pending - Other Pending. However, because the Silver Saddle Ranch & Club and the Galileo Project land are worth far less than the investors . 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.
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