re Receiver's Motion to Approve Sale of Galileo Project Land (Mar. 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. 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. At that time, the Receiver will also file a Notice of Final Determination of Claims with the Court. 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. A sale will eliminate substantial ongoing expenses. The Case Remains Cold, Even 'Affordable Housing' In LA Isn't Affordable. An onslaught of velella velella washed up on shore this weekend on Southern California beaches. The ranch and the property were initially marketed in May under real estate company Kidder Matthews, with Teresia Knight and Greg Myers as the listing agents. We will provide an update after the August 27 hearing. The Judge overseeing this case is Joel R. Wohlfeil. Case Summary. The agency accused Silver Saddle, Maney, Ducreux and other defendants of securities fraud and selling unqualified securities. 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 listing is available here: https://www.loopnet.com/Listing/20751-Aristotle-Dr-California-City-CA/19775266/. The Receiver has also submitted to the Court a proposed order approving the sale. There will not be a hearing on August 27, 2020 to cancel the escrows. The developer of California City, Nat Mendelsohn, built hundreds of miles of roads through the empty desert. 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. Investor payments will be made by check. 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. Thomas W. McNamara was appointed as the Receiver in this case. 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/. Here are 7 key takeaways: 1. 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. We can only do this important work with your help. The Receiver has suspended all business operations, including the Silver Saddle Ranch & Club. After the Court does so, the Receiver will submit a proposed Order to the Court consistent with the ruling. The Silver Saddle Ranch was acquired for its combination of recreation potential, unique natural resources and its strategic location as a natural bridge connecting the Pine Nut Mountains and the Prison Hill Recreation Area. For example, assume that Investor As claim is $30,000, Investor Bs claim is $50,000, and aggregate investor claims of $1,000,000. PDF March 7, 2022 - Notice to Silver Saddle Investors of Claims Determinations After completing this process, the Receiver will select the best offer and submit it to the Court for consideration. In other words, Investor A provided 20%, Investor B provided 50%, and Investor C provided 30% of the total investment. And lets assume the receivership has $100 to distribute to the investors. The Receiver intends to seek Court permission to proceed with the sale. Case Details Parties Documents Dockets. Higher wind gusts possible. 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. Given the stay, we do not expect any material activity to occur prior to the resolution of the criminal prosecution. 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. SACRAMENTO - The Department of Business Oversight announced Oct. 1 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. Silver Saddle Ranch & Club | California City CA - Facebook Landbanking is where a group of people jointly own a huge chunk of land. A promotional brochure from Silver Saddle, which is part of the DBO's lawsuit against the company. As previously reported, the receivership case was stayed (put on hold) on August 11, 2022 as the result of a request by Defendant Maney. Every two years, Desert X presents site-specific outdoor installations throughout the Coachella Valley. The Ranch has been listed for $1,874,500. If the Motion is granted, the Receiver will be able to start the distribution process. After hearing argument, the Court granted the Receivers Motion and approved the sale of the Ranch. The case status is Disposed - Dismissed. The resort was listed at $1.87 million and theGalileo Project at $919,746. California City is filled with signs advertising vacant land for sale. The listing is available here: https://www.loopnet.com/Listing/20751-Aristotle-Dr-California-City-CA/19775266/. In the 1950s and 60s, the city evicted the mostly Black and Latino working-class residents of Section 14 and destroyed their homes. LAist is part of Southern California Public Radio, a member-supported public media network. 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 complaints about California City caught the eye of the attorney leading the project, who included a chapter on the city in the report. The request to have the sale approved will be filed separately. A telephonic hearing has been set for August 27, 2020 at 9:00 a.m. to allow for full briefing on the matter. 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. What it took to investigate a suspicious town in the Mojave Desert In that scenario, Investor As pro rata share is 3% and Investor Bs pro rata share is 5%. March 23, 2021 Motion to Approve Distribution Method and Procedures. Ultimately, more than 73,000 people bought land, netting Mendelsohn's company hundreds of millions of dollars. The Court will hear the Motion in a telephonic hearing on March 19 at 9:00 a.m. The Ranch is listed for $1,874,500. The case is still on-going. The bankruptcy petitions and appeal were ultimately dismissed, allowing the Receiver to take control over the roughly $4,100,000 in sale proceeds. Two Los Angeles artists have new work on display. 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. All parties, including Feterik and Jones, were encouraged to submit a last, best and final offer with a Sept. 14 deadline. Escrow was opened on September 29, and the proposed buyer has 21 days to clear contingencies. The relevant documents can be accessed at the links below or by clicking on the documents to the right. All the parties will be provided certain due diligence materials (e.g., preliminary title report, seller disclosures, etc.) Notice of this filing will be provided to investors by email and via posting on the receivership website. The Receiver hired counsel for both matters. 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 PDF MARY ANN SMITH Deputy Commissioner SEAN ROONEY - The Department of The prospective purchaser agreed to cancel the escrows, thus eliminating the need for the Receivers motion and the hearing on the matter. Between 2011 and 2019, Silver Saddle made more than $56 million. 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. A trial date has been set for July 2021. 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. As we said previously, Defendant Thomas Maney and others were criminally charged based on conduct that is essentially the same as in this case. Or send via email to info@regulatoryresolutions.com, with Silver Saddle in the subject line of the email. Insperity, the payroll provider, will issue W-2s to former employees by January 31, 2020 via either U.S. mail or electronic delivery. Defendants comingled and diverted funds that had been promised to be set aside and preserved for the investors benefit, making it difficult to trace exactly how investor money was being spent. If you have a tip or story to share about California City or Silver Saddle (or anything else), email me: eguerin@scpr.org. He was shocked to hear the news of the criminal charges. Winds SW at 15 to 25 mph. 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. The Case Remains Cold, Even 'Affordable Housing' In LA Isn't Affordable. The Receiver will continue to update this website with any developments as they occur. In May 2020, DBO filed an amended complaint, adding additional defendants, SS Purcho, LLC, Accelerated Assets, LLC, and Pahrump Valley Real Estate Co., LLC. February 8, 2021 A Global Email was Sent to Investors Today Explaining the Receiver has Filed a Motion to Approve the Method and Procedures for a Distribution to Investors, Sale of the Silver Saddle Ranch and Club (Ranch). It was supposed to be a good investment. 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. As a result, the properties continue to be marketed and listed through our real estate broker. THE CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT CHARGED SILVER SADDLE WITH FRAUD AND SHUT THE COMPANY DOWN IN 2019.