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. 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. The prospective purchaser agreed to cancel the escrows, thus eliminating the need for the Receivers motion and the hearing on the matter. I wish they would give the money back to us., When I interviewed Thomas Maney for the podcast in early 2019, he told me, Well, first of all, we've never misrepresented. 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. 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. 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. As a result, investors will NOT receive back the full amount they invested from the Receivership Estate. Winds could occasionally gust over 40 mph.. A few passing clouds, otherwise generally clear. This case was filed in Kern County Superior Courts, Metropolitan Branch located in Kern, California. Two offers were made, which the receiver claims were unacceptable. This means that the Receiver can start calculating investors losses so that, if and when a distribution is ordered, the Receiver can begin sending money to investors right away. Editor Community funding keeps us independent and accountable. The Receiver has been marketing the Ranch through a real estate broker for sale since May. The DBO alleged that Defendants committed securities fraud in connection with the sale of undivided interests in 1,020 acres of vacant desert property near California City, California in Kern County. Prior to the hearing, the Court issued a tentative ruling approving the sale. Higher wind gusts possible. Timeline for Court Challenge to Receivers Confirmation of Claim Determination. The results were as follows: 23 challenges were denied, 17 resulted in an adjustment to the claim determination amount, and 3 were accepted completely. 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 a result, the properties continue to be marketed and listed through our real estate broker. Help us provide credible local journalism and timely NPR reporting to our entire community. The Ranch has been listed for $1,874,500. The developer of California City, Nat Mendelsohn, built hundreds of miles of roads through the empty desert. 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. 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. Silver Saddle lured prospective buyers from around California with the promise of a free weekend at the ranch. And many of the amenities they'd been told were coming had yet to be built. 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 On November 6, 2020, the Court held a hearing on the Receivers Motion to Approve Sale of the Silver Saddle Ranch and Club. 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.). 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. They sued Mendelsohn's company, which was then known as Great Western Cities. 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. The bankruptcy petitions and appeal were ultimately dismissed, allowing the Receiver to take control over the roughly $4,100,000 in sale proceeds. And lets assume the receivership has $100 to distribute to the investors. 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. In other words, Investor A provided 20%, Investor B provided 50%, and Investor C provided 30% of the total investment. He sold land to tens of thousands of people. For the latest national news from NPR and our live radio broadcast, visit LAist.com/radio. In the 1970s, a man named Tom Maney began working for Great Western Cities. Here are 7 key takeaways: 1. The list is sorted by investor account number, which number was included in the Preliminary Claim Determination letters that were mailed to each investor. 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. In order to move promptly when the case is resolved, we are providing notice to all investors of the Receivers claim determinations. Even though operating expenses have been reduced, maintaining the Ranch continues to drain the limited resources of the Receivership Estate. In the 1950s and 60s, the city evicted the mostly Black and Latino working-class residents of Section 14 and destroyed their homes. The letters explained how to challenge the Preliminary Determination if an investor felt the determination was incorrect. Claim Determination letters have gone out today to Silver Saddle investors who invested in the Galileo Project (sometimes called LandBanking Plus). The landowners live all over the world. We have reviewed records from Equiant and Silver Saddle which detail the investor payments recorded by the Defendants. In its motion, the receiver stressed the desire to unload the storied property as it represented its largest and most costly asset. Silver Saddle Receivership FAQs Updated as of 10/10 . 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. The Court approved the sale on November 6, 2020, and the sale closed on January 14, 2021. Lets assume Investor A invests $200, Investor B invests $500, and Investor C invests $300 for a total of $1,000 invested. In this new podcast from LAist Studios, host Emily Guerin tells a story of money, power and deception. 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. As such, the Receiver accepted the offer and intends to seek Court authority to sell the Galileo Project land. Less than an hour after signing a contract we had our doubts and were able to think it through and contacted the broker. July 10, 2020 Offer to Purchase Silver Saddle Ranch and Club. They're engaged in a grand illusion of creating wealthNK Mendelsohn has perfected the art of turning desert dust into gold -- but only for himself.". The escrows for the Ranch and Galileo Project property have been cancelled. Both purchases needed to be approved by the Court before they could proceed. In May 2020, DBO filed an amended complaint, adding additional defendants, SS Purcho, LLC, Accelerated Assets, LLC, and Pahrump Valley Real Estate Co., LLC. For example, to date the Receiver has paid $285,580 for water alone. The lowest water bill was $4,339 for mid-March 2020 to mid-April 2020. The agency accused Silver Saddle, Maney, Ducreux and other defendants of securities fraud and selling unqualified securities. The Receiver hired counsel for both matters. There would be a golf course, a university, a mall, a massive park and an airport. Now, survivors and their descendants seek reparations. When the court-appointed receiver took over last September, Silver Saddle's finances were a mess. 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. Get our daily newsletters for the latest on COVID-19 and other top local headlines. Our complaint services are free and our team of expert mediators will assist in resolving complaints with businesses. I mean, its the way I live my life.. As we have previously noted, the Galileo Project investors do NOT hold an interest in the Ranch property. Escrow was opened on July 2, 2020. On January 14, 2022, the Court granted the Receivers request. The second offer was made by Jones the night of Sunday, Sept. 13 for $1.8 million, with an $800,000 offer for the Project property. The price was adjusted a few times before stabilizing at $1.87 million. 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. Based on an independent appraisal prepared for the Galileo Project Land, the Receiver believes the price is more than fair and reasonable. The receiver noted in the motion that many of these amenities were modestly constructed, outdated, and poorly maintained.. The new trial date is May 6, 2022. 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. Port officials say "resuming cargo operations at Americas busiest port complex is critical to maintaining confidence of our customers and supply chain stakeholders.". The complaints about California City caught the eye of the attorney leading the project, who included a chapter on the city in the report. 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. During the sales pitch, potential customers were divided up by ethnicity and paired with a salesperson who spoke their primary language. 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. After completing this process, the Receiver will select the best offer and submit it to the Court for consideration. The minute order granting the Receivers motion is in the documents section of this webpage. The Motion to Approve the Sale of the Ranch and related documents are in the Documents section of this webpage. Four years ago, while reporting a story about the drought, I received a tantalizing tip: In a small town in the Mojave Desert, salespeople were making tens of millions of dollars hawking empty desert land to unsuspecting buyers by convincing them the area would boom one day -- and if they got in now, they could get rich. 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. Any response must be filed before the hearing. We can only do this important work with your help. Today on Public Media Giving Day, keep LAist strong with your support. 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 . Many were young couples and hard-working immigrants looking to build a better future. 6. 3. Leads Ali Wong and Steven Yeun issue a joint statement along with show creator Lee Sung Jin. They compared California City to Las Vegas and other large cities in the Southwest that began as tiny desert outposts. IT'S UNLIKELY THAT PEOPLE WHO INVESTED IN SILVER SADDLE WILL GET THEIR MONEY BACK. Insperity, the payroll provider, will issue W-2s to former employees by January 31, 2020 via either U.S. mail or electronic delivery. Silver Saddle Ranch & Club Inc :: Superior Court of California, County of Los Angeles :: State Civil Lawsuit No. That case, which is a separate civil lawsuit unrelated to the new criminal charges, is set to go to trial in September. They had an elaborate referral program: Anyone who bought a share of the landbanking project and then referred their friends would receive $2,000. As such, the Receiver intends to seek Court authority to sell the Galileo Project land. On September 28, the Receiver agreed to a sales price of $2,100,000 for the Ranch. Winds SW at 15 to 25 mph. Every weekday, you'll get fresh, community-driven stories that catch you up with our independent local news. Trial is presently scheduled for May of this year. In that same brief, the receivers attorney, Edward Chang, noted that the real estate company handling the transaction and Jones have sharply contrasting descriptions of the sales process. August 26, 2022 Receivership Case Stayed. If and when the Court enters an Order allowing a distribution to investors, the Receiver will issue investor checks promptly and consistent with the claims determinations. The Ranch is listed for $1,874,500. The salespeople held raffles for free airline tickets to Hong Kong and Manila, shopping sprees, watches, cameras and other perks to encourage people to invest. 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. 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 Receiver took this claim seriously, his team exchanged correspondence with Mr. Jones, and he convened conference calls with the brokers.. 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. 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. 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/. 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. 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 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. After the Receiver reaches final determinations on all claims, a Notice of Final Determination and Proposed Distribution will be filed with the Court. The Galileo Project property is listed for $919,746. This case was filed in Los Angeles County Superior Courts, Stanley Mosk Courthouse located in Los Angeles, California. The Receiver will reply to any objections and the Court will rule. 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. Today on Public Media Giving Day, keep LAist strong with your support. 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. A copy of the Receivers First Interim Status Report is posted in the Documents section of this webpage. What questions do you have about Southern California? A lot of it was used to pay sales agents. The motion cites water costs alone ran more than $285,000 since it was placed in the receivers hands in October 2019. 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.. It seemed like such an anachronism, a relic of Southern California post-war hubris, or maybe even Gold Rush-style boosterism. 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. Temporary Restraining Order and Appointment of a Receiver Issued by San Diego County Superior Court. In July, Mr. Maney asked the Court to stay this case, which would put the case on hold, until the criminal case is finished. Relief Defendants named in the Complaint are: Marian G. Ducreux; Clifford J. Reynolds; and Wayne A. Pedersen. 7, 2022), Receiver's Motion to Approve Sale of Galileo Project Land (Mar. Will Orange County's Fledgling Clean Power Agency Survive? By 1970, Mendelsohn had 3,000 salesmen and 24 sales offices around the world. Silver Saddle Ranch & Club, Inc. Summary: This case is a class action lawsuit against Silver Saddle Ranch & Club, Inc. for violations of consumer fraud. The Top 5 newsletter catches you up with LAs top 5 stories in just 3 minutes. 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. Every two years, Desert X presents site-specific outdoor installations throughout the Coachella Valley. If you're enjoying this article, you'll love my daily morning newsletter, How To LA. 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. People needed a place to go, to start over. All parties, including Feterik and Jones, were encouraged to submit a last, best and final offer with a Sept. 14 deadline. 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. 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. DBO also stated that many victims spent as much as $30,000 in a scheme that lasted eight years. 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. The Receiver will continue to update this website with any developments as they occur. April 18, 2022 Court Grants Motion to Approve Sale of Galileo Project Land. If $100,000 is distributed, then Investor A would get $3,000 and Investor B would get $5,000. This case was filed in Los Angeles County Superior Courts, Spring Street Courthouse located in Los Angeles, California. 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. 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. As we said previously, Defendant Thomas Maney and others were criminally charged based on conduct that is essentially the same as in this case. 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. However, because the Silver Saddle Ranch & Club and the Galileo Project land are worth far less than the investors . Background on the Process to Reach a Final Determination of Investor Claims. 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. And the total claim will be used to determine the investors pro rata share of any distribution(s) ordered by the Court. Trial is presently scheduled for May of this year. Will Orange County's Fledgling Clean Power Agency Survive.
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