silver saddle ranch lawsuit

According to court documents, Jones claimed his offer was not given a full and fair evaluation., A previous motion stated that Mr. The criminal case continues and, as a result, the Court has extended the stay in the receivership case until at least the next status conference which it scheduled for September 15, 2023. As such, the Receiver accepted the offer and intends to seek Court authority to sell the Galileo Project land. 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. 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. He spent a free weekend there in 2017, and ended up forking over $30,000 for a confusing, desert-land investment product. The Motion details the proposed distribution process. As part of the proposed sale, the Receiver and the Proposed Buyer will work cooperatively during the escrow period to secure the City of California City's consent to an assignment of the ground lease to the Proposed Buyer, the motion states. The proposed call to approve the land sale isnt the first time the receiver has anticipated selling the resort and the project land. Maney opposed the sale because he wants to propose a joint venture in which the Ranch is included in an agreement between the investors and a third party, Rick Jones. One of these companies, High Plains Mesa Holdings, had a lease option agreement in place to sell a 640-acre parcel of land to a solar energy company for roughly $4,100,000 before this lawsuit was filed. This case was filed in Kern County Superior Courts, Metropolitan Branch located in Kern, California. That case, which is a separate civil lawsuit unrelated to the new criminal charges, is set to go to trial in September. If you were an investor, please continue to keep the Receivers office apprised of any address changes. Investors will have 90 days to cash the checks. 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/. Now, the California Department of Business Oversight has accused the company of The day after filing the Notice of Appeal, High Plains Mesa Holdings and High Plains Mesa Management filed for bankruptcy. At that time, the Receiver will also file a Notice of Final Determination of Claims with the Court. Given the stay, we do not expect any material activity to occur prior to the resolution of the criminal prosecution. On 09/09/2019 People of the State of California filed an Other lawsuit against Silver Saddle Commerical Development LP. In the mid-1950s, real estate developer Nat Mendelsohn began to buy a ton of land in the Mojave Desert, 100 miles north of Los Angeles. A copy is available the documents section of this webpage. The Receiver will review each challenge and supporting documentation and may need to contact investors directly during this process to ask follow-up questions. On September 9, 2019, the California Commissioner of Business Oversight (DBO) filed an action against multiple parties involved in a real estate investment scheme which allegedly sold highly overpriced fractionalized interests in vacant desert land in rural Kern County, California. People needed a place to go, to start over. "A Treasure in the Desert!" Located in the high desert at the foot of the majestic. The Receiver determined that it is necessary to reopen the sales process and allow all interested parties to present their best and final offers. Winds SW at 20 to 30 mph. 4, 2022), Gordon Decl. The escrows for the Ranch and Galileo Project property have been cancelled. The Motion was opposed by Defendant Accelerated Assets and Defendant Thomas Maney. Family Says Mental Health System Failed Their Son, A Los Angeles Family Seeks Answers And Accountability After Black Mom Dies In Childbirth. CALIFORNIA CITY The attempt to sell Silver Saddle Ranch and Resort may see success on a second attempt, according to an update from the propertys state-approved receiver on Oct. 14. The receivers motion later stated in footnotes that a joint offer with investors would have required rescinding an offering made by Maney and approval by the state, which would further complicate the sale. Sales agents allegedly used high-pressure tactics that made it very difficult for potential customers to say no. Will Orange County's Fledgling Clean Power Agency Survive? The Court granted the Receivers request on June 11, 2021. Now, survivors and their descendants seek reparations. Background on the Process to Reach a Final Determination of Investor Claims. In its motion, the receiver stressed the desire to unload the storied property as it represented its largest and most costly asset. 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 Courts decision means that when the sale closes, the Silver Saddle investors will no longer have an interest in the Galileo Project Land. 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. 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. 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. 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 investor distribution. re Accelerated's Opposition Preliminary Injunction (July 16, 2020), Receiver's Motion to Approve Sale (July 10, 2020), Receiver's Ex Parte Appl'n to Shorten Time (July 10, 2020), Receiver's Response to Motion to Intervene (July 9, 2020), Receiver's 1st Interim Status Report (Mar. In my podcast California City, I told the story of a small town in the Mojave Desert where, for more than six decades, salespeople have been peddling nearly worthless desert land to unsuspecting people. 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 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. 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. 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. Silver Saddle lured prospective buyers from around California with the promise of a free weekend at the ranch. As you may be aware, the Court approved the sale of the Silver Saddle Ranch and Club (Ranch) for $2,100,000. The Receiver took this claim seriously, his team exchanged correspondence with Mr. Jones, and he convened conference calls with the brokers.. Importantly, the Receiver intends to request the Court authorize that the Galileo lands be conveyed with a clear title and free of the Galileo investors fractional interests. It had been going on for years. Each investor who submitted a challenge has been contacted by mail and email explaining the Receivers review and determination of their challenge. These expenses include water, electricity, labor, and insurance costs. Now, survivors and their descendants seek reparations. 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. CALIFORNIA CITY WAS FOUNDED BY A CZECHOSLOVAKIAN IMMIGRANT WITH A VISION TO BUILD A CITY FROM SCRATCH IN THE DESERT. A lot of it was used to pay sales agents. 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. Temporary Restraining Order and Appointment of a Receiver Issued by San Diego County Superior Court. The prospective purchaser agreed to cancel the escrows, thus eliminating the need for the Receivers motion and the hearing on the matter. 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. Why A Key Program Is Falling Short, An Agonizing Battle With Schizophrenia Ends On A California Freeway. The alleged scheme targeted Filipino, Chinese and Spanish-speaking individuals, according to an Oct. 1, 2019, DBO news release. 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. August 26, 2022 Receivership Case Stayed. The Galileo Project property is listed for $919,746. We will provide an update after the August 27 hearing. 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. The Judges overseeing this case are Clark, Thomas S., Schuett, Stephen D. and Friedman - Retired, Gary T.. 7. For additional details on the sale of the Ranch, please see below. 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. 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 California Department of Business Oversight ("DBO") filed its civil lawsuit on September 9, 2019 against Defendants. Both the Ranch and the Galileo Project property are listed for sale. We also raise pigs and goats to sell to For the five-month period of September 2019 to March 2020, water, electricity, labor, and insurance costs for the Ranch was approximately $230,000. The Court also determined that the Receiver had shown the current offer was fair and reasonable. The Motion to Approve the Sale of the Ranch and related documents are in the Documents section of this webpage. 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. If you have questions after reading the Motion, please send them to info@regulatoryresolutions.com and include Silver Saddle in the subject line. Please contact Silver Saddle Ranch for hours of operation; 818-325-3930 File a complaint in less than 5 minutes! On March 13, 2020, the Receiver filed the first status report. For example, to date the Receiver has paid $285,580 for water alone. 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. Timeline for Court Challenge to Receivers Confirmation of Claim Determination. Mismanagement, Sloppy Hiring Practices, Lack Of Transparency. 60 Years Of Deception And Land Sales In California City: 7 Takeaways From My Investigative Podcast, California City Podcast: State Adds Use Of Cell Phone Jammers to Complaint Against Silver Saddle, 'California City' Podcast Tells The Dark Side Of The American Dream. The price was adjusted a few times before stabilizing at $1.87 million. In order to move promptly when the case is resolved, we are providing notice to all investors of the Receivers claim determinations. 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. 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. If your mailing address has changed, please email your new address to info@regulatoryresolutions.com with the subject line SILVER SADDLE W-2 ADDRESS CHANGE. If you did not opt out of electronic delivery, you can access your W-2 through the Insperity Premier website. Their books were so disorganized that the DBO's fraud examiner determined it was probably deliberate -- Silver Saddle must have been transferring money between multiple accounts to make it difficult to trace. The motion cites water costs alone ran more than $285,000 since it was placed in the receivers hands in October 2019. If $100,000 is distributed, then Investor A would get $3,000 and Investor B would get $5,000. When emailing our office, please include your unit number to allow us to locate your records quickly. July 17, 2020 Results of Hearing on Receivers Ex Parte Application. Landbanking is where a group of people jointly own a huge chunk of land. The sale of the Ranch was approved in late 2020. That same year, Nat Mendelsohn died. The Attorney Generals office didnt immediately respond to a request for comment. 1. The motion for the court to approve the sale is scheduled for Nov. 6. Unfortunately, the Receiver did not receive acceptable offers before the deadline. 2. They watched a presentation about the area's potential. See March 7, 2022 post below for further information and details. We have reviewed records from Equiant and Silver Saddle which detail the investor payments recorded by the Defendants. 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. A copy of the Receivers First Interim Status Report is posted in the Documents section of this webpage. As we have stated on this webpage, and in our emails to investors, any distributions to investors will only take place after the conclusion of the case. 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. But even if the sale goes through, it won't generate nearly enough money to make all the investors whole. Last year, the Receiver sought the Courts permission to approve the sale of land owned by Receivership Defendant High Plains Mesa Holdings, LP, for $4,100,000. In a Judicial Council form complaint filed May 25, 2012, Craig alleged he was injured on October 10 or 11, 2010 while a customer at a restaurant in Universal City owned by Saddle Ranch, a limited liability company, when the chair in which he was sitting collapsed. Of the four purchase offers presented for the Ranch, the Receiver has accepted an offer of $1,774,500. 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 Court approved the sale on November 6, 2020, and the sale closed on January 14, 2021. Low 44F. Investors should look for the letter in the U.S. mail. DBO also filed a motion for preliminary injunction to stop these additional corporate defendants from collecting money related to the Galileo Project. Please understand that the Receivership Estate has very limited assets primarily the proceeds from the sale of the Ranch and the anticipated funds from the sale of the Galileo parcel (if approved by the Court). 2023 Southern California Public Radio - All Rights Reserved, 'Beef' Stars Defend David Choe Casting. The Receivership Estate will not be able to fund these costs for very long. The Receiver hired counsel for both matters. 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. 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. They had an elaborate referral program: Anyone who bought a share of the landbanking project and then referred their friends would receive $2,000. While we have carefully considered the concerns raised by these investors, they do not have legal standing to object to the sale of the Ranch. They compared California City to Las Vegas and other large cities in the Southwest that began as tiny desert outposts. Who knows when we'll see such vibrance again in this recently drought-choked land? Every weekday, you'll get fresh, community-driven stories that catch you up with our independent local news. Heres How To Start Your Search, Emmery Muoz, 14, Was Killed In LA 17 Years Ago. The Receiver will reply to any objections and the Court will rule. Defendants specifically targeted investors from several ethnic communities, many of whom spoke little to no English. The last 5 digits of the account number represent the investors unit number. 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.. As such, the Receiver intends to seek Court authority to sell the Galileo Project land. Once final determinations are reached, every investor who made a challenge will be notified via mail and/or email and by posting notice on the receivership website of the final outcome. The lowest water bill was $4,339 for mid-March 2020 to mid-April 2020. The receiver noted in the motion that many of these amenities were modestly constructed, outdated, and poorly maintained.. 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 receiver filed a motion on Oct. 13 with the San DiegoSuperior Court to approve the sale. For example, assume that Investor As claim is $30,000, Investor Bs claim is $50,000, and aggregate investor claims of $1,000,000. They could build a house, or just hold onto the land and sell it in the future. the assets of the Receivership Estate while the lawsuit proceeds. 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! 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. As we have noted repeatedly, calculating the Final Claim Determination amounts does NOT mean investors will receive those amounts. March 29, 2023 Receivership Case Remains Stayed. If the DFPI is successful at trial or the parties reach a settlement, then the Receiver will seek permission . January 17, 2020 W-2s for Former Employees. The Court took into account the Receivers concerns and recommendations, as well as those of the other interested parties. 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. For the latest national news from NPR and our live radio broadcast, visit LAist.com/radio. 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. That's because the land Silver Saddle sold was "near worthless real estate," according to the DBO. Insperity, the payroll provider, will issue W-2s to former employees by January 31, 2020 via either U.S. mail or electronic delivery. I mean, its the way I live my life.. After 14 days, the Receiver will respond to any investor objections filed with the Court, so that the Court can evaluate the Receivers calculations. 7, 2022), Receiver's Motion to Approve Sale of Galileo Project Land (Mar. A sale will eliminate substantial ongoing expenses. For the latest national news from NPR and our live radio broadcast, visit LAist.com/radio. What questions do you have about Southern California? You can either mail the information to: Silver Saddle Receiver c/o Regulatory Resolutions 655 W. Broadway, Suite 900 San Diego, CA 92101. The receiver moved to expedite the sale. 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. DON'T MISS ANY L.A. CORONAVIRUS NEWS One offer fell too low beneath the listing price. There will not be a hearing on August 27, 2020 to cancel the escrows. To that end, on February 8, 2021, the Receiver filed a Motion to Approve Distribution Method and Procedures (Motion). 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. Windy with sunshine. A telephonic hearing has been set for August 27, 2020 at 9:00 a.m. to allow for full briefing on the matter. Two Los Angeles artists have new work on display. This would mean that after the sale, the investors would no longer have an interest in the Galileo Project Land. 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. LAist is part of Southern California Public Radio, a member-supported public media network. 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. 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. 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. If you are an investor and do not receive a letter by March 15, 2022, please contact the Receivers office at info@regulatoryresolutions.com. As you may be aware, the Court approved the sale of the Silver Saddle Ranch and Club ("Ranch") for $2,100,000. July 10, 2020 Offer to Purchase Silver Saddle Ranch and Club. 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. On September 28, the Receiver agreed to a sales price of $2,100,000 for the Ranch. The same proposed buyer who offered $2,100,000 also offered $900,000 for the Galileo Project vacant land, which has been marketed through a real estate broker for sale since August. 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 Receiver intends to seek Court permission to proceed with the sale. Receivers Review of Challenges and Final Determination. We can only do this important work with your help. 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. The trial date in this case remains the same, September 16, 2022. 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. 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. Both purchases needed to be approved by the Court before they could proceed. 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.). 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. 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. BC314239 Your activity looks suspicious to us. 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 Case Remains Cold, Even 'Affordable Housing' In LA Isn't Affordable. We have reached a Final Determination of Claims, which can be accessed through this link Final Determination of Claimsor found in the documents section of this webpage. In Silver Saddle's case, approximately 1,000 acres of empty desert on the outskirts of California City, divided into 4,000 shares. Even with the reduced water rates, we expect water will continue to be a substantial expense and all other expenses will continue e.g., electricity, labor, and insurance. 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.

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