For additional details on the sale of the Ranch, please see below. The new trial date is May 6, 2022. 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. All the parties will be provided certain due diligence materials (e.g., preliminary title report, seller disclosures, etc.) As such, the Receiver accepted the offer and will soon seek Court authority to sell the Galileo Project land. As we have noted repeatedly, calculating the Final Claim Determination amounts does NOT mean investors will receive those amounts. Here are 7 key takeaways: 1. Any response must be filed before the hearing. Mr. Maney and a number of others are facing criminal charges in connection with Silver Saddle. Background on the Process to Reach a Final Determination of Investor Claims. 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 land sale scheme later became the subject of an eight-part LAist podcast California City.. On 02/08/2018 BORRAYO filed a Personal Injury - Other Personal Injury lawsuit against SILVER SADDLE RANCH CLUB, INC. This case was filed in Kern County Superior Courts, Metropolitan Branch located in Kern, California. 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. They sued Mendelsohn's company, which was then known as Great Western Cities. 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. 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. July 17, 2020 Results of Hearing on Receivers Ex Parte Application. The criminal complaint is available in the documents section of this webpage. 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. California City would be that place. Two Los Angeles artists have new work on display. The Receivers goal is to maximize the amount of money that each of the Silver Saddle investors will receive from the Receivership Estate should the Court approve a distribution. Please contact Silver Saddle Ranch for hours of operation; 818-325-3930 File a complaint in less than 5 minutes! PDF Silver Saddle Receivership FAQs Updated as of 11/26/2019 2 talking about this. 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. Trial is presently scheduled for May of this year. Insperity, the payroll provider, will issue W-2s to former employees by January 31, 2020 via either U.S. mail or electronic delivery. It had been going on for years. SACRAMENTO - The Department of Business Oversight (DBO) announced today 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, California. If $100,000 is distributed, then Investor A would get $3,000 and Investor B would get $5,000. The Judges overseeing this case are JOHN J. KRALIK and WILLIAM F. HIGHBERGER. We are preparing a proposed order for the Court and will post it on the Receivers website when the judge approves. There will not be a hearing on August 27, 2020 to cancel the escrows. 4. The DBO alleges that Defendants sale of fractionalized interests in vacant desert land near California City, California violated California securities laws because such sales constituted the sale of unqualified or unregistered securities and were based on fraudulent and deceptive misrepresentations. 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. On 06/06/2019 MICHAEL BALAGTAS, filed a Contract - Other Contract lawsuit against SILVER SADDLE COMMERCIAL DEVELOPMENT, LP ,. 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. If the Court grants the motion to cancel the escrows, the Receiver intends to reopen the sales process and all interested parties will have an opportunity to submit their best and final offer for the Ranch real property directly to the Receiver. Prior to the hearing, the Court issued a tentative ruling approving the sale. Now, survivors and their descendants seek reparations. 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. 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. 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 cites water costs alone ran more than $285,000 since it was placed in the receivers hands in October 2019. 12. Graduates of the program were expected to buy a piece of land themselves, and refer their friends and family. 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. Case Information Case Number: 30-2022-01242337-CU-FR-CXC Case Status: Not Classified By Court Parent and Community Center Grand Opening, Tehachapi area Crime Data Report for March, U.S. 395 to Close for Emergency Infrastructure Damage Repairs. Ripoff Report | Silver Saddle Review - California, City, California Galileo Project investors stage protest of pending Silver Saddle sale 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. Each investor would receive a part of the proceeds from the sale proportionate to the money he or she paid for the property. Who knows when we'll see such vibrance again in this recently drought-choked land? Today on Public Media Giving Day, keep LAist strong with your support. 3. In this new podcast from LAist Studios, host Emily Guerin tells a story of money, power and deception. This case was filed in Los Angeles County Superior Courts, Stanley Mosk Courthouse located in Los Angeles, California. This case was filed in Orange County Superior Courts, Orange County Civil Complex Center located in Orange, California. Like many urban planners at the time, Mendelsohn thought major cities like Los Angeles were overcrowded, polluted and dangerous. 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. 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. People v. Silver Saddle Commercial Development, LP, et al. (Silver If you have a tip or story to share about California City or Silver Saddle (or anything else), email me: eguerin@scpr.org. Receivers Notice of Final Claim Determinations and Proposed Distribution. 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. Sales agents allegedly used high-pressure tactics that made it very difficult for potential customers to say no. "A Treasure in the Desert!" Located in the high desert at the foot of the majestic. Instead, on August 5, 2020, the Receiver filed an ex parte application for an order cancelling escrows for Silver Saddle Ranch and the Galileo parcels, which will be heard telephonically via CourtCall on August 11, 2020 at 8:30 a.m. All responses and oppositions to the Receivers ex parte application must be filed with the Court prior to the hearing. As such, while we have carefully considered the concerns raised by these investors, they do not have legal standing to object to the sale. In the 1970s, a man named Tom Maney began working for Great Western Cities. THE CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT CHARGED SILVER SADDLE WITH FRAUD AND SHUT THE COMPANY DOWN IN 2019. 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. Help us provide credible local journalism and timely NPR reporting to our entire community. The Receivership Estate will not be able to fund these costs for very long. 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. We can only do this important work with your help. The Motion details the proposed distribution process. To support our non-profit public service journalism: Donate Now. Timeline for Court Challenge to Receivers Confirmation of Claim Determination. Winds could occasionally gust over 40 mph.. A few passing clouds, otherwise generally clear. 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. That same year, Nat Mendelsohn died. The resort was listed at $1.87 million and theGalileo Project at $919,746. the assets of the Receivership Estate while the lawsuit proceeds. The Court denied the Receivers ex parte application for an order cancelling escrows for the Ranch and Galileo parcels, and stated that it was not inclined to rule on the request via ex parte application. The relevant documents can be accessed at the links below or by clicking on the documents to the right. However, the receiver soon received complaints from Maney and from local businessman Rick Jones. A photo of Nat Mendelsohn, the founder of California City, on the cover of the 1961 annual report to property owners. Each sale is alleged to be a separate violation. 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. Landbanking is where a group of people jointly own a huge chunk of land. In the 1950s and 60s, the city evicted the mostly Black and Latino working-class residents of Section 14 and destroyed their homes. 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. Each investor who submitted a challenge has been contacted by mail and email explaining the Receivers review and determination of their challenge. Silver Saddle Ranch & Stables is a horse boarding facility. Motion to Approve Distribution Method and Procedures filed Telephonic Hearing on March 19, 2021 at 9:00 a.m. Before the Receiver can distribute funds to investors, the Court must approve a distribution process. 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 investment claims to be at least $54 million. The Motion is posted in full in the Documents section of this webpage. The sale of the Ranch was approved in late 2020. 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. 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. Last week march 20 we signed a contract from silver saddle ranch club They compared California City to Las Vegas and other large cities in the Southwest that began as tiny desert outposts. A copy of the Receivers First Interim Status Report is posted in the Documents section of this webpage. Escrow was opened on July 2, 2020. Investors should look for the letter in the U.S. mail. 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. According to court documents, Jones claimed his offer was not given a full and fair evaluation., A previous motion stated that Mr. Help us provide credible local journalism and timely NPR reporting to our entire community. 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. We only received 43 challenges and examined each of these challenges carefully. Low 44F. 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. 1. These expenses include water, electricity, labor, and insurance costs. This will involve (1) calculating each investors claim and then (2) dividing this by the aggregate amount of all investor claims to get a pro rata figure which (3) will be multiplied by the amount available for distribution. It is currently listed for $1,895,000. On January 14, 2022, the Court granted the Receivers request. What it took to investigate a suspicious town in the Mojave Desert The listing is available here: https://www.loopnet.com/Listing/20751-Aristotle-Dr-California-City-CA/19775266/. 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. Four days, Mamann upped the offer to $1.9 million and $650,000 respectively. Silver Saddle lured prospective buyers from around California with the promise of a free weekend at the ranch. What You Should Know About This Year's 'Constant Bloom', You Need Child Care For Your Baby. and given another opportunity to tour the property. The DBO alleged that Defendants committed . The Motion was opposed by Defendant Accelerated Assets and Defendant Thomas Maney. Sorry, there are no recent results for popular commented articles. PDF Silver Saddle Receivership FAQs 1. - Regulatory Resolutions 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.

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