People of the State of California vs Silver Saddle - UniCourt 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. PHUNG NGUYEN VS. SILVER SADDLE RANCH & CLUB, INC. | ClassAction.io According to the receivers motion, the offer was submitted along with a joint venture proposal involving the Galileo Project investors and also involved financing contingencies, compared to a previous all-cash offer by Jones. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo investors. 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. On 02/08/2018 BORRAYO filed a Personal Injury - Other Personal Injury lawsuit against SILVER SADDLE RANCH CLUB, INC. A copy of the Preliminary Injunction is posted in the Documents section of this webpage. March 29, 2023 Receivership Case Remains Stayed. (Chava Sanchez/KPCC). On September 28, the Receiver agreed to a sales price of $2,100,000 for the Ranch. The resort was listed at $1.87 million and theGalileo Project at $919,746. 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. As a result, investors will NOT receive back the full amount they invested from the Receivership Estate. Many were young couples and hard-working immigrants looking to build a better future. In other words, no investor will receive the full amount of his or her claim. Separately, the Receiver sought the Courts permission to list for sale two other, smaller properties owned by Receivership Defendant High Plains Mesa Holdings. That's because the land Silver Saddle sold was "near worthless real estate," according to the DBO. It had been going on for years. This will ensure the sales process is healthy and will maximize the sales price, which is in the best interest of the Receivership Estate. July 17, 2020 Results of Hearing on Receivers Ex Parte Application. It wasnt. 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. 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 developer of California City, Nat Mendelsohn, built hundreds of miles of roads through the empty desert. On 09/09/2019 People of the State of California filed an Other lawsuit against Silver Saddle Commerical Development LP. 4, 2022), Knight Decl. The case is still on-going. 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. 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. Investors will have 90 days to cash the checks. Mendelsohn advertised the program in major newspapers around the West, and it was wildly successful. Thomas W. McNamara was appointed as the Receiver in this case. 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. The Motion is posted in full in the Documents section of this webpage. What it took to investigate a suspicious town in the Mojave Desert Winds could occasionally gust over 40 mph.. A few passing clouds, otherwise generally clear. Port officials say "resuming cargo operations at Americas busiest port complex is critical to maintaining confidence of our customers and supply chain stakeholders.". 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. house with a restaurant, saloon, game room, library, hotel lobby, fitness center, and offices; an Administration building used by staff; a Sales Pavilion and three buildings with a total of motel-type rooms to house guests. The Case Remains Cold, Even 'Affordable Housing' In LA Isn't Affordable. The owners of the 30,000-acre Silver Saddle Ranch & Club, about a dozen miles north of the downtown here in a remote corner of this remote city, are touting the open spaces of the high desert as a . At that time, the Receiver will also file a Notice of Final Determination of Claims with the Court. The DFPI alleged that Defendants . 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 sale approved | News | desertnews.com The last 5 digits of the account number represent the investors unit number. 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.. We will provide an update if the trial date changes. Silver Saddle Ranch and Club (Ranch), located at 20751 Aristotle Drive, California City, California 93505. All the parties will be provided certain due diligence materials (e.g., preliminary title report, seller disclosures, etc.) CALIFORNIA CITY The attempt to sell Silver Saddle Ranch and Resort may see success on a second attempt, according to an update from the propertys state-approved receiver on Oct. 14. See March 7, 2022 post below for further information and details. Parent and Community Center Grand Opening, Tehachapi area Crime Data Report for March, U.S. 395 to Close for Emergency Infrastructure Damage Repairs. We are preparing a proposed order for the Court and will post it on the Receivers website when the judge approves. In July, the receiver eventually accepted an offer from Kevin Feterik, who had partnered with local businessman Leland Krelle, for $1.77 million. 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. To that end, on February 8, 2021, the Receiver filed a Motion to Approve Distribution Method and Procedures (Motion). California City would be that place. Every two years, Desert X presents site-specific outdoor installations throughout the Coachella Valley. 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. Today on Public Media Giving Day, keep LAist strong with your support. The current sales brochure for the Ranch and the Galileo Project can be found 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. Will Orange County's Fledgling Clean Power Agency Survive? 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. 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 lawsuit by the state of California accused Accelerated Assets, SS Purchco and PVRE of aiding-and-abetting securities violations allegedly committed by the developer of the Silver Saddle Ranch & Club in the Mojave Desert and certain executives and employees of Silver Saddle Ranch. The Court has rescheduled the hearing on the Receivers Motion from August 28, 2020 to August 19, 2020 at 1:30 p.m. All responses and oppositions to the Receivers Motion must be filed with the Court by August 6, 2020. Or send via email to info@regulatoryresolutions.com, with Silver Saddle in the subject line of the email. 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. But even if the sale goes through, it won't generate nearly enough money to make all the investors whole. 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. I wish (the salespeople) realize how much they cost all the families, he said. New potential buyer found for Silver Saddle Ranch, BY JACK BARNWELL On May 13, 2021, the Receiver asked the Court for permission to proceed with the sale of the land to the solar energy company. The criminal complaint is available in the documents section of this webpage. This case was filed in Orange County Superior Courts, Orange County Civil Complex Center located in Orange, California. September 24, 2020 Ranch and Galileo Project Property Update. 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. An onslaught of velella velella washed up on shore this weekend on Southern California beaches. The proposed call to approve the land sale isnt the first time the receiver has anticipated selling the resort and the project land. 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. We will update again after September 15, 2023 status hearing or before if events merit. The receiver also accepted a separate $775,000 offer from Feterik to purchase the Project land. July 10, 2020 Offer to Purchase Silver Saddle Ranch and Club. In order to move promptly when the case is resolved, we are providing notice to all investors of the Receivers claim determinations. If you're enjoying this article, you'll love my daily morning newsletter, How To LA. High near 70F. Right now, the case is set for trial in September 2022. The land sale scheme later became the subject of an eight-part LAist podcast California City.. Today, most of the roads are abandoned. 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. Silver Saddle lured prospective buyers from around California with the promise of a free weekend at the ranch. The Case Remains Cold, Even 'Affordable Housing' In LA Isn't Affordable. For the latest national news from NPR and our live radio broadcast, visit LAist.com/radio. And lets assume the receivership has $100 to distribute to the investors. The case remains pending in San Diego County Superior Court, with a current trial date of January 21, 2022. An escrow account was opened on Sept. 29 with a $100,000 deposit. The letters explained how to challenge the Preliminary Determination if an investor felt the determination was incorrect. California City is filled with signs advertising vacant land for sale. 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/. The Ranch is closed and will remain closed indefinitely. 7. We will provide a further update at that time. 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. Escrow was opened on July 2, 2020. 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. Help us provide credible local journalism and timely NPR reporting to our entire community. In the mid-1950s, real estate developer Nat Mendelsohn began to buy a ton of land in the Mojave Desert, 100 miles north of Los Angeles. The criminal case continues and, as a result, the Court has extended the stay in the receivership case until at least the next status conference which it scheduled for September 15, 2023. 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. A sale will eliminate substantial ongoing expenses. 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. On September 24, 2019, the San Diego Superior Court issued a Temporary Restraining Order (TRO) with asset freeze and appointment of a 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). These expenses include water, electricity, labor, and insurance costs. Winds SW at 15 to 25 mph. 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 The Court granted the Receivers request on June 11, 2021. The criminal action by the Attorney General is separate and independent from this case. The Final Determination of Investor Claims will be used to calculate the pro rata share of any distribution ordered by the Court. We just don't do it. DON'T MISS ANY L.A. CORONAVIRUS NEWS For example, assume that Investor As claim is $30,000, Investor Bs claim is $50,000, and aggregate investor claims of $1,000,000. The business operations in Burbank have been terminated. If the Motion is granted, the Receiver will be able to start the distribution process. 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. 60 Years Of Deception And Land Sales In California City: 7 - LAist Timeline for Court Challenge to Receivers Confirmation of Claim Determination. 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. 2. The vegetation varies from cottonwood trees and willows along the riparian corridor to the irrigated pasture fields and . One offer fell too low beneath the listing price. The investment claims to be at least $54 million. This case was filed in Los Angeles County Superior Courts, Spring Street Courthouse located in Los Angeles, California. 4, 2022), Gordon Decl. On 06/06/2019 MICHAEL BALAGTAS, filed a Contract - Other Contract lawsuit against SILVER SADDLE COMMERCIAL DEVELOPMENT, LP ,. 6. The motion for the court to approve the sale is scheduled for Nov. 6. The Motion was opposed by Defendant Accelerated Assets and Defendant Thomas Maney. In 1984, the company declared bankruptcy. 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. Port officials say "resuming cargo operations at Americas busiest port complex is critical to maintaining confidence of our customers and supply chain stakeholders.". In its motion, the receiver stressed the desire to unload the storied property as it represented its largest and most costly asset. However, the receiver soon received complaints from Maney and from local businessman Rick Jones. We also raise pigs and goats to sell to The case status is Pending - Other Pending. 1. 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. 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. As a result, the properties continue to be marketed and listed through our real estate broker. Any investor who challenged the claim determination and disagrees with the Receivers final determination may submit an objection to the Court within 14 days of the filing of the Receivers Notice of Final Claim Determination and Proposed Distribution. At the hearing, the Court approved the sale of the land for $900,000, with clear title and free of all liens and encumbrances. Less than an hour after signing a contract we had our doubts and were able to think it through and contacted the broker. A judge appointed a receiver to take control of the company's assets and property while the case proceeds. If the DFPI is successful at trial or the parties reach a settlement, then the Receiver will seek permission . The Motion to Approve the Sale of the Ranch and related documents are in the Documents section of this webpage.

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