The investment claims to be at least $54 million. LAist is part of Southern California Public Radio, a member-supported public media network. Each investor who submitted a challenge has been contacted by mail and email explaining the Receivers review and determination of their challenge. A copy of the listing brochure is posted in the documents section. PDF March 7, 2022 - Notice to Silver Saddle Investors of Claims Determinations The relevant documents can be accessed at the links below or by clicking on the documents to the right. The Court granted Mr. Maneys request on August 11, 2022, which means the trial in this case will no longer occur in September as previously scheduled. The agency accused Silver Saddle, Maney, Ducreux and other defendants of securities fraud and selling unqualified securities. The vegetation varies from cottonwood trees and willows along the riparian corridor to the irrigated pasture fields and . Winds SW at 20 to 30 mph. The Receivership Estate will not be able to fund these costs for very long. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo Project investors. 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. 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. 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 bankruptcy petitions and appeal were ultimately dismissed, allowing the Receiver to take control over the roughly $4,100,000 in sale proceeds. 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. Notice of this filing will be provided to investors by email and via posting on the receivership website. Now, the California Attorney General has charged nine of those salespeople with felonies. The Attorney Generals office didnt immediately respond to a request for comment. 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. 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. In the 1950s and 60s, the city evicted the mostly Black and Latino working-class residents of Section 14 and destroyed their homes. An onslaught of velella velella washed up on shore this weekend on Southern California beaches. 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. To that end, on February 8, 2021, the Receiver filed a Motion to Approve Distribution Method and Procedures (Motion). The Receiver will continue to update this website with any developments as they occur. 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. In order to move promptly when the case is resolved, we are providing notice to all investors of the Receivers claim determinations. Ripoff Report | Silver Saddle Review - California, City, California Department of Business Oversight sues to stop $30 million Silver Saddle 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. 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). The Receiver will reply to any objections and the Court will rule. Port officials say "resuming cargo operations at Americas busiest port complex is critical to maintaining confidence of our customers and supply chain stakeholders.". If you have a tip or story to share about California City or Silver Saddle (or anything else), email me: eguerin@scpr.org. Investor payments will be made by check. As we have previously noted, the Galileo Project investors do NOT hold an interest in the Ranch property. Community funding keeps us independent and accountable. 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. Even though operating expenses have been reduced, maintaining the Ranch continues to drain the limited resources of the Receivership Estate. The Receiver will use proceeds from the sale to pay expenses of the Receivership Estate and provide a first distribution to Silver Saddle investors. 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. On May 25, 2022, the California Attorney Generals Office filed criminal charges against a number of people in connection with the Silver Saddle Commercial Development-Galileo Project. Mr. Maney and a number of others are facing criminal charges in connection with Silver Saddle. No. The criminal complaint is available in the documents section of this webpage. 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. The receiver moved to expedite the sale. 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. 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 countered at $2.1 million/$900,000, which was accepted. Who knows when we'll see such vibrance again in this recently drought-choked land? Every investor should carefully review the Receivers claim determination. The Judge overseeing this case is Joel R. Wohlfeil. We will provide an update if the trial date changes. On 02/08/2018 BORRAYO filed a Personal Injury - Other Personal Injury lawsuit against SILVER SADDLE RANCH CLUB, INC. Craig's Personal Injury/Premises Liability Lawsuit. 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. By 1970, Mendelsohn had 3,000 salesmen and 24 sales offices around the world. The Judges overseeing this case are Clark, Thomas S., Schuett, Stephen D. and Friedman - Retired, Gary T.. The current sales brochure for the Ranch and the Galileo Project can be found in the Documents section of this webpage. 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. lawsuit on September 9, 2019 against Defendants. But much of the land they bought is nearly worthless. Because of these ongoing costs, we have determined selling the Ranch is in the best interest of the Receivership Estate. This case was filed in Orange County Superior Courts, Orange County Civil Complex Center located in Orange, California. 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. In its motion, the receiver stressed the desire to unload the storied property as it represented its largest and most costly asset. MICHAEL BALAGTAS, ET AL VS SILVER SADDLE COMMERCIAL - UniCourt 5. Will Orange County's Fledgling Clean Power Agency Survive. 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. Both the Ranch and the Galileo Project property are listed for sale. The Receiver intends to seek Court permission to proceed with the sale. If the motion is granted, the closing should occur 60 days thereafter. Winds could occasionally gust over 40 mph.. A few passing clouds, otherwise generally clear. 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. Last week march 20 we signed a contract from silver saddle ranch club JOSE CARRILLO VS SILVER SADDLE RANCH & CLUB, INC - UniCourt The receiver filed a motion on Oct. 13 with the San DiegoSuperior Court to approve the sale. Criminal Charges Filed Against Real Estate Company At Center Of - LAist The Receiver has been marketing the Ranch through a real estate broker for sale since May. 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 alleged scheme targeted Filipino, Chinese and Spanish-speaking individuals, according to an Oct. 1, 2019, DBO news release. AFTER GREAT WESTERN CITIES WENT BANKRUPT, A FORMER EMLOYEE QUIETLY CONTINUED SELLING VACANT LAND IN CALIFORNIA CITY. The current sales brochure for the Ranch and the Galileo Project can be found in the Documents section of this webpage. The criminal action by the Attorney General is separate and independent from this case. Insperity, the payroll provider, will issue W-2s to former employees by January 31, 2020 via either U.S. mail or electronic delivery. Right now, the case is set for trial in September 2022. If you'd like to follow the Silver Saddle court case, follow me on Twitter: @guerinemily. A copy of the Receivers First Interim Status Report is posted in the Documents section of this webpage. The day after filing the Notice of Appeal, High Plains Mesa Holdings and High Plains Mesa Management filed for bankruptcy. On September 28, the Receiver agreed to a sales price of $2,100,000 for the Ranch. They compared California City to Las Vegas and other large cities in the Southwest that began as tiny desert outposts. He envisioned building a city of 200 square miles in this otherwise desolate spot. As you may be aware, the Court approved the sale of the Silver Saddle Ranch and Club ("Ranch") for $2,100,000. The prospective purchaser agreed to cancel the escrows, thus eliminating the need for the Receivers motion and the hearing on the matter. We will provide a further update at that time. 7. Once the Court has resolved any investor objections, the Receiver will file a Proposed Order of Final Determination of Claims and First Interim Distribution. How could this be happening in the 21st century? Why A Key Program Is Falling Short, An Agonizing Battle With Schizophrenia Ends On A California Freeway. The last 5 digits of the account number represent the investors unit number. In May 2020, DBO filed an amended complaint, adding additional defendants, SS Purcho, LLC, Accelerated Assets, LLC, and Pahrump Valley Real Estate Co., LLC. MENDELSOHN'S SALES TACTICS DREW THE ATTENTION OF RALPH NADER, AND GOT THE COMPANY IN SERIOUS TROUBLE WITH THE FEDERAL TRADE COMMISSION. 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. 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. 12. A copy is available 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. Why A Key Program Is Falling Short, An Agonizing Battle With Schizophrenia Ends On A California Freeway. In this new podcast from LAist Studios, host Emily Guerin tells a story of money, power and deception. Community funding keeps us independent and accountable. Silver Saddle Ranch and Club (Ranch), located at 20751 Aristotle Drive, California City, California 93505. As a result, the properties continue to be marketed and listed through our real estate broker. 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. We also raise pigs and goats to sell to We do not anticipate that the criminal case will affect this case or the receivership. Given the stay, we do not expect any material activity to occur prior to the resolution of the criminal prosecution. 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. 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. As we said previously, Defendant Thomas Maney and others were criminally charged based on conduct that is essentially the same as in this case. The proposed call to approve the land sale isnt the first time the receiver has anticipated selling the resort and the project land. Galileo Project investors stage protest of pending Silver Saddle sale DON'T MISS ANY L.A. CORONAVIRUS NEWS The Receiver has also submitted to the Court a proposed order approving the sale. PDF California Department of Business Oversight-Complaint The case remains pending in San Diego County Superior Court, with a current trial date of January 21, 2022. Each sale is alleged to be a separate violation. Melinda Cerda Et Al Vs Silver Saddle Ranch & Club Inc Et Al And lets assume the receivership has $100 to distribute to the investors. Case Summary On 01/25/2022 PHUNG NGUYEN filed a Property - Other Property Fraud lawsuit against SILVER SADDLE RANCH CLUB, INC. Today on Public Media Giving Day, keep LAist strong with your support. PDF MARY ANN SMITH Deputy Commissioner SEAN ROONEY - The Department of New potential buyer found for Silver Saddle Ranch, BY JACK BARNWELL As we have noted repeatedly, calculating the Final Claim Determination amounts does NOT mean investors will receive those amounts. Two Los Angeles artists have new work on display. Saddle Commercial Development, LP, Silver Saddle Ranch & Club, Inc., and Galileo Commercial Property Owner's Association, Inc. are hereby ordered to desist and refrain from the further offer or sale of securities in the State of California, including but not limited to investments in the On 04/16/2019 JOSE CARRILLO filed a Labor - Wrongful Termination lawsuit against SILVER SADDLE RANCH CLUB, INC. PDF Silver Saddle Receivership FAQs 1. - Regulatory Resolutions One offer fell too low beneath the listing price. Investors should look for the letter in the U.S. mail. The buyers were nearly all Filipino, Chinese or Latino, and many spoke English. 2. Prosecutors charged Thomas Maney, the 83 year-old owner of Silver Saddle, Marian Ducreux, 68, one of the companys top sales people, and seven other former sales agents, managers and employees of the ranch in late May. What questions do you have about Southern California? I wish (the salespeople) realize how much they cost all the families, he said. 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. "This is no ordinary real estate scheme," read the report. The sale is set to close in 60 days. "The only similarity is that we sold land," he said. Six Former Sunset Strip Restaurant Workers Allege Sexual Harassment Prior to the hearing, the Court issued a tentative ruling approving the sale. 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.). Separately, the Receiver sought the Courts permission to list for sale two other, smaller properties owned by Receivership Defendant High Plains Mesa Holdings. 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. There would be a golf course, a university, a mall, a massive park and an airport. 3. On March 4, 2022, the Receiver filed a Motion to Approve the Sale of the Galileo Project Land. October 16, 2019 Preliminary Injunction, Asset Freeze, and Confirmation of Receiver Order Issued by San Diego Superior Court. Leads Ali Wong and Steven Yeun issue a joint statement along with show creator Lee Sung Jin. According to sources I spoke with and court documents, sales agents suggested that wealthy businessmen like Elon Musk and Bill Gates were investing nearby. Also, inclusion of the prospective intervenors as parties would enlarge the issues in the case because many of the approximately 3,000 investors have disparate opinions regarding disposition of the receivership estate. A full copy of the Courts Minute Order is available in the Documents section of this webpage. 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. We can only do this important work with your help. Please continue to check the Receivers website for periodic updates. 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. We only received 43 challenges and examined each of these challenges carefully. What You Should Know About This Year's 'Constant Bloom', You Need Child Care For Your Baby. The Court approved the sale on November 6, 2020, and the sale closed on January 14, 2021. April 18, 2022 Court Grants Motion to Approve Sale of Galileo Project Land. Case Details Parties Documents Dockets Case Details The Receiver also filed a Response to the Motion to Intervene filed by Antonio Garcia and Carlos Novelo. Port officials say "resuming cargo operations at Americas busiest port complex is critical to maintaining confidence of our customers and supply chain stakeholders.". Each investor would receive a part of the proceeds from the sale proportionate to the money he or she paid for the property. THE CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT CHARGED SILVER SADDLE WITH FRAUD AND SHUT THE COMPANY DOWN IN 2019. Craig v. Saddle Ranch Chop House, LLC - Casetext As the Receiver, it is Mr. McNamaras job to identify, pursue, collect, and preserve the assets of the Receivership Estate while the lawsuit proceeds. Escrow was opened on July 2, 2020. If approved, the closing date would occur within 60 days, according to the receiver. 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. Based on an independent appraisal prepared for the Galileo Project Land, the Receiver believes the price is more than fair and reasonable. This class action lawsuit was filed on 01/25/2022 in Orange County Superior Court. A trial date has been set for July 2021. For additional details on the sale of the Ranch, please see below. Low 44F. The case status is Other. 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. 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. In July, the receiver eventually accepted an offer from Kevin Feterik, who had partnered with local businessman Leland Krelle, for $1.77 million. 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. Instead Judge Wohlfeil treated the ex parte application as an application for order shortening time, which he granted. Silver Saddle Receivership FAQs Updated as of 10/10 . Will Orange County's Fledgling Clean Power Agency Survive? He was shocked to hear the news of the criminal charges. 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 other words, no investor will receive the full amount of his or her claim. "A Treasure in the Desert!" Located in the high desert at the foot of the majestic. That case, which is a separate civil lawsuit unrelated to the new . Help us provide credible local journalism and timely NPR reporting to our entire community. Silver Saddle Ranch & Stables | Roseburg OR - Facebook 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 landowners live all over the world. PDF Silver Saddle Receivership FAQs Updated as of 11/26/2019 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. Unfortunately, the Receiver did not receive acceptable offers before the deadline. 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. The Final Determination of Investor Claims will be used to calculate the pro rata share of any distribution ordered by the Court. We are preparing a proposed order for the Court and will post it on the Receivers website when the judge approves. Accordingly, he filed a Motion for Approval of Proposed Distribution Method and Procedures with the Court asking for permission to make a first distribution. This would mean that after the sale, the investors would no longer have an interest in the Galileo Project Land. In July, Mr. Maney asked the Court to stay this case, which would put the case on hold, until the criminal case is finished. In a response filed with the court, calling it an eleventh-hour plea to unwind a valid contract and that it wreaks of impropriety and sour grapes based on obtuse contentions that do not withstand the requisite scrutiny required under the law.. The Court took into account the Receivers concerns and recommendations, as well as those of the other interested parties. Today, most of the roads are abandoned. Silver Saddle sale approved | News | desertnews.com The business operations in Burbank have been terminated. 6. We have also accepted an offer to purchase the Galileo Project vacant land for $775,500. Instead, each investor will receive a share of the proceeds proportionate to his or her investment in the Galileo Project (a pro rata share). 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. 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 agency accused Silver Saddle, Maney, Ducreux and other defendants of securities fraud and selling unqualified securities. Between 2011 and 2019, Silver Saddle made more than $56 million. Now, survivors and their descendants seek reparations. 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. 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 case status is Disposed - Dismissed. As a result, investors will NOT receive back the full amount they invested from the Receivership Estate. 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/. But in an interview, Maney told me he and Silver Saddle have nothing in common with Nat Mendelsohn or Great Western Cities. Our complaint services are free and our team of expert mediators will assist in resolving complaints with businesses. Expansion Planned by Getaway in the Wide Open Spaces : Silver Saddle Silver Saddle Ranch and Club California, City, California USA Phone: 760-373-8617 Web: silversaddle.com Category: Unusual Rip-Off Silver Saddle Ranch and Club Silver Saddle Commercial Development LLCGalileo Project Land Banking Scam California, City California *Consumer Suggestion: Silver Saddle Ranch Club A pyramid scheme It seemed like such an anachronism, a relic of Southern California post-war hubris, or maybe even Gold Rush-style boosterism. Maney continued selling vacant desert land, using the resort as an attraction to draw potential buyers. They could build a house, or just hold onto the land and sell it in the future. re Receiver's Motion to Approve Sale of Galileo Project Land (Mar. Based on an independent appraisal prepared for the Ranch, the Receiver believes the price is more than fair and reasonable. As you may be aware, the Court approved the sale of the Silver Saddle Ranch and Club (Ranch) for $2,100,000. On November 6, 2020, the Court held a hearing on the Receivers Motion to Approve Sale of the Silver Saddle Ranch and Club. The case status is Not Classified By Court. Each investor will get a pro rata share of the distribution: Investor A will receive $20 (20% of the distribution), Investor B will receive $50 (50% of the distribution) and Investor C will receive $30 (30% of the distribution).