The motion cites water costs alone ran more than $285,000 since it was placed in the receivers hands in October 2019. Thomas Maney and the companies running these investments (the Defendants) were sued by the California Department of Financial Protection and Innovation (DFPI) in 2019. March 29, 2023 Receivership Case Remains Stayed. When emailing our office, please include your unit number to allow us to locate your records quickly. This case was filed in Orange County Superior Courts, Orange County Civil Complex Center located in Orange, California. Once the Court has approved and issued the Order of Final Determination of Claims and First Interim Distribution, the Receiver will make a first distribution. 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. It had been going on for years. After completing this process, the Receiver will select the best offer and submit it to the Court for consideration. We are preparing a proposed order for the Court and will post it on the Receivers website when the judge approves. No. Community funding keeps us independent and accountable. The sale of the Galileo Project Land, however, was put on hold. For example, assume that Investor As claim is $30,000, Investor Bs claim is $50,000, and aggregate investor claims of $1,000,000. On 04/16/2019 JOSE CARRILLO filed a Labor - Wrongful Termination lawsuit against SILVER SADDLE RANCH CLUB, INC. 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 Ranch has been listed for $1,874,500. Family Says Mental Health System Failed Their Son, A Los Angeles Family Seeks Answers And Accountability After Black Mom Dies In Childbirth. Silver Saddle Ranch is delivering the very best 2-acre homesites in the market. Most of the money, the DBO learned, was gone. In other words, no investor will receive the full amount of his or her claim. Mr. Maney and a number of others are facing criminal charges in connection with Silver Saddle. 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. Every two years, Desert X presents site-specific outdoor installations throughout the Coachella Valley. He spent a free weekend there in 2017, and ended up forking over $30,000 for a confusing, desert-land investment product. Case Information Case Number: 30-2022-01242337-CU-FR-CXC Case Status: Not Classified By Court Now, survivors and their descendants seek reparations. 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. It seemed like such an anachronism, a relic of Southern California post-war hubris, or maybe even Gold Rush-style boosterism. In part, the ruling states that, [t]he prospective intervenors, like all investors, will be afforded an opportunity to be heard regarding the disposition of the receivership estate through the Receivers notice and recommendations to the Court. If no objections are filed with the Court, the Receiver will promptly file a proposed Order approving the Receivers claim determinations. Parent and Community Center Grand Opening, Tehachapi area Crime Data Report for March, U.S. 395 to Close for Emergency Infrastructure Damage Repairs. Craig's Personal Injury/Premises Liability Lawsuit. The California Department of Business Oversight ("DBO") filed its civil lawsuit on September 9, 2019 against Defendants. The new trial date is May 6, 2022. As a result, investors will NOT receive back the full amount they invested from the Receivership Estate. 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. Heres How To Start Your Search, Emmery Muoz, 14, Was Killed In LA 17 Years Ago. On September 28, the Receiver agreed to a sales price of $2,100,000 for the Ranch. Case Summary. If the DFPI is successful at trial or the parties reach a settlement, then the Receiver will seek permission from the Court to distribute the funds in the Receivership Estate to the Silver Saddle investors. Silver Saddle Ranch & Club Inc :: Superior Court of California, County of Los Angeles :: State Civil Lawsuit No. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo investors. A copy of the Preliminary Injunction is posted in the Documents section of this webpage. In the 1950s and 60s, the city evicted the mostly Black and Latino working-class residents of Section 14 and destroyed their homes. We can only do this important work with your help. Every weekday, you'll get fresh, community-driven stories that catch you up with our independent local news. "The only similarity is that we sold land," he said. Port officials say "resuming cargo operations at Americas busiest port complex is critical to maintaining confidence of our customers and supply chain stakeholders.". The California Department of Business Oversight ("DBO") filed its civil lawsuit on September 9, 2019 against Defendants. Mismanagement, Sloppy Hiring Practices, Lack Of Transparency. Investor payments will be made by check. They sued Mendelsohn's company, which was then known as Great Western Cities. 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. The Court will hear the Motion in a telephonic hearing on March 19 at 9:00 a.m. 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. The Court will need to approve a distribution before the proceeds from the sale can be distributed to investors. A trial date has been set for July 2021. 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. In order to move promptly when the case is resolved, we are providing notice to all investors of the Receivers claim determinations. The highest water bill was $46,864 for mid-October 2019 to mid-November 2019. People needed a place to go, to start over. The criminal action by the Attorney General is separate and independent from this case. The Receiver also filed a Response to the Motion to Intervene filed by Antonio Garcia and Carlos Novelo. Escrow was opened on September 29, and the proposed buyer has 21 days to clear contingencies. On March 4, 2022, the Receiver filed a Motion to Approve the Sale of the Galileo Project Land. We have reviewed records from Equiant and Silver Saddle which detail the investor payments recorded by the Defendants. The sale is set to close in 60 days. After the Receiver reaches final determinations on all claims, a Notice of Final Determination and Proposed Distribution will be filed with the Court. The Receiver will file a motion for the Galileo Project land after the sale of the Ranch is complete. 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. The case is still on-going. The case remains pending in San Diego County Superior Court, with a current trial date of January 21, 2022. The alleged scheme targeted Filipino, Chinese and Spanish-speaking individuals, according to an Oct. 1, 2019, DBO news release. 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 day after filing the Notice of Appeal, High Plains Mesa Holdings and High Plains Mesa Management filed for bankruptcy. CALIFORNIA CITY WAS FOUNDED BY A CZECHOSLOVAKIAN IMMIGRANT WITH A VISION TO BUILD A CITY FROM SCRATCH IN THE DESERT. All the parties will be provided certain due diligence materials (e.g., preliminary title report, seller disclosures, etc.) However, before this can occur, the current escrows must be canceled. 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. This case was filed in San Diego County Superior Courts, San Diego Central Courthouse located in San Diego, California. 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. 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 Top 5 newsletter catches you up with LAs top 5 stories in just 3 minutes. 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. 6. This would mean that after the sale, the investors would no longer have an interest in the Galileo Project Land. It wasnt. The blue jellyfish-like creatures were swept by the winds of California's recent storms. 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.). However, the Court did ultimately approve the Receivers proposed method and procedures for a distribution. Background on the Process to Reach a Final Determination of Investor Claims. Unfortunately, the Receiver did not receive acceptable offers before the deadline. 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. The Receiver will proceed with hiring a realtor and proceeding with listing and marketing the properties. We just don't do it. As such, the Receiver accepted the offer and will soon seek Court authority to sell the Galileo Project land. The Receiver has retained counsel to address both the appeal and the bankruptcies. With a neighborhood design that enhances privacy by separating homes from one another to create open spaces, mature hardwood trees, ponds, and a convenient location only 3 miles south of Interstate 20, this community is going to sell out quickly! The Receiver has also submitted to the Court a proposed order approving the sale. The Receiver intends to seek Court permission to proceed with the sale. Thousands of people bought this dream. For additional details on the sale of the Ranch, please see below. The Top 5 newsletter catches you up with LAs top 5 stories in just 3 minutes. lawsuit on September 9, 2019 against Defendants. August 26, 2022 Receivership Case Stayed. What You Should Know About This Year's 'Constant Bloom', You Need Child Care For Your Baby. Sales agents allegedly used high-pressure tactics that made it very difficult for potential customers to say no. 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. Windy with sunshine. The relevant documents can be accessed at the links below or by clicking on the documents to the right. 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. re Receiver's Motion to Approve Sale of Galileo Project Land (Mar. 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 . For the five-month period of September 2019 to March 2020, water, electricity, labor, and insurance costs for the Ranch was approximately $230,000. As previously reported, the receivership case was stayed (put on hold) on August 11, 2022 as the result of a request by Defendant Maney. Prior to the Sept. 14 deadline of 10 a.m., the receiver contacted Jones attorney for clarification of whether the offer was contingent on acceptance of the joint venture proposal, but no response came and the deadline elapsed. Please continue to check the Receivers website for periodic updates. For additional details on the sale of the Ranch, please see below. When the court-appointed receiver took over last September, Silver Saddle's finances were a mess. 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 Galileo Project property is listed for $919,746. In this new podcast from LAist Studios, host Emily Guerin tells a story of money, power and deception. 7, 2022), Receiver's Motion to Approve Sale of Galileo Project Land (Mar. On 06/06/2019 MICHAEL BALAGTAS, filed a Contract - Other Contract lawsuit against SILVER SADDLE COMMERCIAL DEVELOPMENT, LP ,. Silver Saddle Ranch & Stables is a horse boarding facility. 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. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo Project investors. AFTER GREAT WESTERN CITIES WENT BANKRUPT, A FORMER EMLOYEE QUIETLY CONTINUED SELLING VACANT LAND IN CALIFORNIA CITY. If $100,000 is distributed, then Investor A would get $3,000 and Investor B would get $5,000. Two Los Angeles artists have new work on display. Based on an independent appraisal prepared for the Galileo Project Land, the Receiver believes the price is more than fair and reasonable. 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. Prior to the hearing, the Court issued a tentative ruling approving the sale. The deadline for bids on the Ranch and the Galileo Project properties was September 14, 2020 at 10:00 a.m. What questions do you have about Southern California? 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. editor@desertnews.com, 8016 California City Blvd.St#7,California City,CA, Rosamond celebrates Diamond Street Project Completion, Rosamond Man arrested for Stolen Vehicles, Tehachapi Man arrested for 2007 Sexual Assault Pleads No Contest, S.K.U.S.D. We then calculated each investors total claim by adding (1) the amount he or she paid toward the purchase of an undivided fractional interest in the Galileo Project; and (2) the amount contributed to the Galileo Capital Investment Fund (CIF). The Silver Saddle Ranch in California City, California has been closed to the public and visitors. You have permission to edit this article. The prospective purchaser agreed to cancel the escrows, thus eliminating the need for the Receivers motion and the hearing on the matter. Each sale is alleged to be a separate violation. The Receiver has suspended all business operations, including the Silver Saddle Ranch & Club. Many were young couples and hard-working immigrants looking to build a better future. Why A Key Program Is Falling Short, An Agonizing Battle With Schizophrenia Ends On A California Freeway. This case was filed in Los Angeles County Superior Courts, Spring Street Courthouse located in Los Angeles, California. Sorry, there are no recent results for popular commented articles. California City would be that place. In other words, Investor A provided 20%, Investor B provided 50%, and Investor C provided 30% of the total investment. 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. Every two years, Desert X presents site-specific outdoor installations throughout the Coachella Valley. Defendants specifically targeted investors from several ethnic communities, many of whom spoke little to no English. In its motion, the receiver stressed the desire to unload the storied property as it represented its largest and most costly asset. The contract had no cancellation period, and buyers were required to pay $41 a month in membership fees to Silver Saddle -- indefinitely. We will provide an update if the trial date changes. 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. The Receiver will file a motion for the Galileo Project land after the sale of the Ranch is complete. 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. Deep in the Mojave Desert, there is a little town with a big name and a bizarre history: California City. 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. 2023 Southern California Public Radio - All Rights Reserved, As Fentanyl Deaths Climb, Bill Would Require Drug Education In Schools, Lawmakers Want More Social Media Regulation. To be clear, the Galileo Project investors do NOT hold an interest in the Ranch property; the Ranch is owned by Receivership Defendant Silver Saddle Ranch & Club, Inc. 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. The Motion to Approve the Sale of the Ranch and related documents are in the Documents section of this webpage. 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. On 02/08/2018 BORRAYO filed a Personal Injury - Other Personal Injury lawsuit against SILVER SADDLE RANCH CLUB, INC. 4. This will ensure the sales process is healthy and will maximize the sales price, which is in the best interest of the Receivership Estate. On July 24, 2020, Judge Wohlfeil denied the Motion to Intervene filed by Antonio Garcia and Carlos Novelo.