Will Orange County's Fledgling Clean Power Agency Survive. We will provide a further update at that time. Jones expressed a concern that he did not have a full and fair opportunity to pursue an offer which he provided to the broker. August 5, 2020 Cancellation of August 19 Hearing on Receivers Motion to Approve Sale of Silver Saddle Ranch and Club. 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. 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. In that scenario, Investor As pro rata share is 3% and Investor Bs pro rata share is 5%. Four days, Mamann upped the offer to $1.9 million and $650,000 respectively. A sale will eliminate substantial ongoing expenses. Or send via email to info@regulatoryresolutions.com, with Silver Saddle in the subject line of the email. 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. 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 ordered that the Receiver cannot distribute any money to investors until the end of the case. Despite this significant outreach, l did not receive any offers from Mr. Jones, nor have I received any further communications from him, Knight stated in her declaration. 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. An escrow account was opened on Sept. 29 with a $100,000 deposit. 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. 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 agency accused Silver Saddle, Maney, Ducreux and other defendants of securities fraud and selling unqualified securities. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo Project investors. On September 29, 2020, California City approved the Ranch for a lower water rate, which should result in lower water bills. In September 2019, the California Department of Business Oversight filed a lawsuit against Silver Saddle, accusing the company of securities fraud. August 17, 2020 Postponement of Receivers Motion to Cancel Escrows. The Court will need to approve a distribution before the proceeds from the sale can be distributed to investors. Each investor who submitted a challenge has been contacted by mail and email explaining the Receivers review and determination of their challenge. However, the Court did ultimately approve the Receivers proposed method and procedures for a distribution. 13, 2020), Amendment to Complaint Adding SS Purchco, Kvassay, Huebner (Feb. 5, 2020), Amendment to Complaint Adding Kelly Maney (Dec. 5, 2019), Amendment to Complaint Adding Maria Rosales (Dec. 5, 2019), Temporary Restraining Order (Sept. 24, 2019), Motion to Approve the Sale of the Galileo Project Land, Declaration of Cornelia J. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo investors. 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. As such, while we have carefully considered the concerns raised by these investors, they do not have legal standing to object to the sale. DBO also stated that many victims spent as much as $30,000 in a scheme that lasted eight years. 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. Each investor would receive a part of the proceeds from the sale proportionate to the money he or she paid for the property. We continue to receive inquiries and entertain offers for the properties. Accordingly, he filed a Motion for Approval of Proposed Distribution Method and Procedures with the Court asking for permission to make a first distribution. The Court took into account the Receivers concerns and recommendations, as well as those of the other interested parties. Silver Saddle Ranch & Club Inc :: Superior Court of California, County of Los Angeles :: State Civil Lawsuit No. California City would be that place. 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. 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. The Judge overseeing this case is Joel R. Wohlfeil. 7, 2022), Receiver's Motion to Approve Sale of Galileo Project Land (Mar. It wasnt. After obtaining an extensive appraisal, the Receivers team interviewed and selected a broker, Kidder Mathews, to sell the Ranch. The Top 5 newsletter catches you up with LAs top 5 stories in just 3 minutes. They could build a house, or just hold onto the land and sell it in the future. The motion for the court to approve the sale is scheduled for Nov. 6. Less than an hour after signing a contract we had our doubts and were able to think it through and contacted the broker. The Final Determination of Investor Claims will be used to calculate the pro rata share of any distribution ordered by the Court. IT'S UNLIKELY THAT PEOPLE WHO INVESTED IN SILVER SADDLE WILL GET THEIR MONEY BACK. 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 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. Maney helped negotiate the settlement with the FTC, and after Great Western Cities declared bankruptcy in 1984, he acquired some of the assets, including a lot of vacant California City land and a small resort called Silver Saddle Ranch. The trial date in this case remains the same, September 16, 2022. Around the same time, a young Ralph Nader asked his gang of consumer protection attorneys, the "Nader's Raiders," to investigate land sales and development throughout California. 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. There will not be a hearing on August 27, 2020 to cancel the escrows. April 18, 2022 Court Grants Motion to Approve Sale of Galileo Project Land. 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. The case status is Other. There would be half a million residents living along winding city streets that were curved to slow down traffic. 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. The agency accused Silver Saddle, Maney, Ducreux and other defendants of securities fraud and selling unqualified securities. The current sales brochure for the Ranch and the Galileo Project can be found in the Documents section of this webpage. The Court approved the sale on November 6, 2020, and the sale closed on January 14, 2021. According to court documents, Jones claimed his offer was not given a full and fair evaluation., A previous motion stated that Mr. 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. Between 2011 and 2019, Silver Saddle made more than $56 million. 3. 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. Windy with sunshine. A copy of the listing brochure is posted in the documents section. 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 listing is available here: https://www.loopnet.com/Listing/20751-Aristotle-Dr-California-City-CA/19775266/. Every investor should carefully review the Receivers claim determination. They watched a presentation about the area's potential. Background on the Process to Reach a Final Determination of Investor Claims. 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.). Mr. Maney and a number of others are facing criminal charges in connection with Silver Saddle. Community funding keeps us independent and accountable. AFTER GREAT WESTERN CITIES WENT BANKRUPT, A FORMER EMLOYEE QUIETLY CONTINUED SELLING VACANT LAND IN CALIFORNIA CITY. 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 Motion was opposed by Defendant Accelerated Assets and Defendant Thomas Maney. No, the Ranch was permanently closed and recently sold to a third party pursuant to a
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