There would be half a million residents living along winding city streets that were curved to slow down traffic. They sued Mendelsohn's company, which was then known as Great Western Cities. THE CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT CHARGED SILVER SADDLE WITH FRAUD AND SHUT THE COMPANY DOWN IN 2019 In September 2019, the California Department of Business Oversight filed a. Four days, Mamann upped the offer to $1.9 million and $650,000 respectively. Ultimately, more than 73,000 people bought land, netting Mendelsohn's company hundreds of millions of dollars. They watched a presentation about the area's potential. The case is still on-going. The lowest water bill was $4,339 for mid-March 2020 to mid-April 2020. LAist is part of Southern California Public Radio, a member-supported public media network. The case remains pending in San Diego County Superior Court, with a current trial date of January 21, 2022. According to the motion, more than 33,000 emails were sent to Kidder Matthews west coast offices regarding the property, who communicated with 48 individuals interested in the property and provided tours for 12 groups. The resort was listed at $1.87 million and theGalileo Project at $919,746. Help us provide credible local journalism and timely NPR reporting to our entire community. 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 buyers were nearly all Filipino, Chinese or Latino, and many spoke English. 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. The Receiver took this claim seriously, his team exchanged correspondence with Mr. Jones, and he convened conference calls with the brokers.. The prospective purchaser agreed to cancel the escrows, thus eliminating the need for the Receivers motion and the hearing on the matter. The deadline for bids on the Ranch and the Galileo Project properties was September 14, 2020 at 10:00 a.m. Claim Determination letters have gone out today to Silver Saddle investors who invested in the Galileo Project (sometimes called LandBanking Plus). For the latest national news from NPR and our live radio broadcast, visit LAist.com/radio. The Attorney Generals office didnt immediately respond to a request for comment. 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 Ranch is closed and will remain closed indefinitely. Will Orange County's Fledgling Clean Power Agency Survive? Hi last week march 20 we signed a contract from silver saddle ranch club for half a unit of their galileo project and deposited $3298 and has monthly payment of $273.66 for 10 years term. Today on Public Media Giving Day, keep LAist strong with your support. Every weekday, you'll get fresh, community-driven stories that catch you up with our independent local news. 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 motion cites water costs alone ran more than $285,000 since it was placed in the receivers hands in October 2019. Based on an independent appraisal prepared for the Galileo Project Land, the Receiver believes the price is more than fair and reasonable. Every investor should carefully review the Receivers claim determination. 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. 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. The receiver also accepted a separate $775,000 offer from Feterik to purchase the Project land. 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. Given the stay, we do not expect any material activity to occur prior to the resolution of the criminal prosecution. At that time, you must provide copies (please do NOT send original documents) of all the information and documents supporting your challenge, for example bank statements and the front and back of cancelled checks. Because of these ongoing costs, we have determined selling the Ranch is in the best interest of the Receivership Estate. If you have a tip or story to share about California City or Silver Saddle (or anything else), email me: eguerin@scpr.org. PDF March 7, 2022 - Notice to Silver Saddle Investors of Claims Determinations We also raise pigs and goats to sell to We will provide a further update at that time. 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. Department of Business Oversight Sues to Stop $30 million Silver Saddle These expenses include water, electricity, labor, and insurance costs. 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. I mean, its the way I live my life.. Silver Saddle Resort was part of an investigation and lawsuit filed by the California Department of Business Oversight in 2019 that looked into fraudulent land sale activities in California City. At the conclusion of the case, the Receiver will promptly move for permission to make a distribution. As we have noted repeatedly, calculating the Final Claim Determination amounts does NOT mean investors will receive those amounts. The receiver is currently trying to sell the ranch and all the land around it to help pay back people who bought into the landbanking operation. If approved, the closing date would occur within 60 days, according to the receiver. Community funding keeps us independent and accountable. New potential buyer found for Silver Saddle Ranch, BY JACK BARNWELL We continue to receive inquiries and entertain offers for the properties. Sales agents allegedly used high-pressure tactics that made it very difficult for potential customers to say no. "A Treasure in the Desert!" Located in the high desert at the foot of the majestic. 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. The investment claims to be at least $54 million. The last 5 digits of the account number represent the investors unit number. The sales process continued and Mamann offered an initial offer of $1.8 million for the ranch and $600,000 for the Project land. If you'd like to follow the Silver Saddle court case, follow me on Twitter: @guerinemily. The agency accused Silver Saddle, Maney, Ducreux and other defendants of securities fraud and selling unqualified securities. 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. Upon receipt of an acceptable offer(s), the Receiver will then bring the issue before the Court, August 27, 2020 Ranch and Galileo Project Property Update. The Ranch is listed for $1,874,500. The Court will hear the Motion in a telephonic hearing on March 19 at 9:00 a.m. You can either mail the information to: Silver Saddle Receiver c/o Regulatory Resolutions 655 W. Broadway, Suite 900 San Diego, CA 92101. Jones expressed a concern that he did not have a full and fair opportunity to pursue an offer which he provided to the broker. In Silver Saddle's case, approximately 1,000 acres of empty desert on the outskirts of California City, divided into 4,000 shares. In May 2020, DBO filed an amended complaint, adding additional defendants, SS Purcho, LLC, Accelerated Assets, LLC, and Pahrump Valley Real Estate Co., LLC. High near 70F. CALIFORNIA CITY WAS FOUNDED BY A CZECHOSLOVAKIAN IMMIGRANT WITH A VISION TO BUILD A CITY FROM SCRATCH IN THE DESERT. All parties, including Feterik and Jones, were encouraged to submit a last, best and final offer with a Sept. 14 deadline. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo investors. This case was filed in Orange County Superior Courts, Orange County Civil Complex Center located in Orange, California. 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. 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. All the defendants have entered not guilty pleas. Of the four purchase offers presented for the Ranch, the Receiver has accepted an offer of $1,774,500. 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. The vegetation varies from cottonwood trees and willows along the riparian corridor to the irrigated pasture fields and . Both properties are located in Cal Citys Second Community. 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. April 18, 2022 Court Grants Motion to Approve Sale of Galileo Project Land. They compared California City to Las Vegas and other large cities in the Southwest that began as tiny desert outposts. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo Project investors. The Receiver selected Kidder Mathews as the real estate brokers to market the Ranch property, and the listing went active on May 8, 2020.
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