Copies of the Complaint and the TRO are available in the documents section of this webpage. 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. 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. 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. For the latest national news from NPR and our live radio broadcast, visit LAist.com/radio. This case was filed in Kern County Superior Courts, Metropolitan Branch located in Kern, California. To that end, on February 8, 2021, the Receiver filed a Motion to Approve Distribution Method and Procedures (Motion). Spokespeople and legal advocates for the group claim that 3,000 people invested $54 million in land purchases $24 million more than what the state's lawsuit against Maney and Silver Saddle Commercial Development cites as being taken from investors. On March 19, the Court heard oral argument on the Receivers Motion and denied the Receivers request to proceed with an interim distribution to investors. January 17, 2020 W-2s for Former Employees. That's because the land Silver Saddle sold was "near worthless real estate," according to the DBO. Consumers had filed almost three dozen complaints with various agencies: the Kern County District Attorney, the California Department of Real Estate, even the Federal Trade Commission, but the company continued to operate until 2019. 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. The Receiver has been marketing the Ranch through a real estate broker for sale since May. Port officials say "resuming cargo operations at Americas busiest port complex is critical to maintaining confidence of our customers and supply chain stakeholders.". 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. Timeline for Court Challenge to Receivers Confirmation of Claim Determination. Please continue to check the Receivers website for periodic updates. The Galileo Project property is listed for $919,746. There would be a golf course, a university, a mall, a massive park and an airport. If the DFPI is successful at trial or the parties reach a settlement, then the Receiver will seek permission . On November 6, 2020, the Court held a hearing on the Receivers Motion to Approve Sale of the Silver Saddle Ranch and Club. The Receiver has retained counsel to address both the appeal and the bankruptcies. September 24, 2020 Ranch and Galileo Project Property Update. Receivers Notice of Final Claim Determinations and Proposed Distribution. If the Motion is granted, the Receiver will be able to start the distribution process. 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. The agency accused Silver Saddle, Maney, Ducreux and other defendants of securities fraud and selling unqualified securities. 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. 3. That case, which is a separate civil lawsuit unrelated to the new criminal charges, is set to go to trial in September. 12. 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. The Court ordered that the Receiver cannot distribute any money to investors until the end of the case. The Case Remains Cold, Even 'Affordable Housing' In LA Isn't Affordable. Or send via email to info@regulatoryresolutions.com, with Silver Saddle in the subject line of the email. The Receiver took this claim seriously, his team exchanged correspondence with Mr. Jones, and he convened conference calls with the brokers.. 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. 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. Investors Reviews of Claim Determinations. We just don't do it. What about Silver Saddle Ranch & Club - is it still open? 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 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. What about Silver Saddle Ranch & Club - is it still open? IT'S UNLIKELY THAT PEOPLE WHO INVESTED IN SILVER SADDLE WILL GET THEIR MONEY BACK. When the state filed suit against Maney and others, it filed an injunction requiring the resort to be placed into receivership, for the defendants to seize all further land sales and freeze related assets. Temporary Restraining Order and Appointment of a Receiver Issued by San Diego County Superior Court. One offer fell too low beneath the listing price. 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. Now, survivors and their descendants seek reparations. Mismanagement, Sloppy Hiring Practices, Lack Of Transparency. The blue jellyfish-like creatures were swept by the winds of California's recent storms. 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! 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. The Court also determined that the Receiver had shown the current offer was fair and reasonable. We have received emails and letters from a small number of investors (who appear to be coordinating with Antonio Garcia and Carlos Novelo, and their United Owner Investors, Inc.) objecting to the sale of the Ranch. 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. Instead, each investor will receive a share of the proceeds proportionate to his or her investment in the Galileo Project (a pro rata share). If you're enjoying this article, you'll love my daily morning newsletter, How To LA. As the Receiver, it is Mr. McNamaras job to identify, pursue, collect, and preserve the assets of the Receivership Estate while the lawsuit proceeds. When emailing our office, please include your unit number to allow us to locate your records quickly. The list is sorted by investor account number, which number was included in the Preliminary Claim Determination letters that were mailed to each investor. New potential buyer found for Silver Saddle Ranch, BY JACK BARNWELL The proposed call to approve the land sale isnt the first time the receiver has anticipated selling the resort and the project land. Regulatory Resolutions, operated by Thomas McNamara, agreed to the sale of the 130-acre property for $2.1 million to the proposed buyer Aaron Mamann after a previous arrangement was canceled. 1. 7. 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. In the 1950s and 60s, the city evicted the mostly Black and Latino working-class residents of Section 14 and destroyed their homes. The day after filing the Notice of Appeal, High Plains Mesa Holdings and High Plains Mesa Management filed for bankruptcy. "This is no ordinary real estate scheme," read the report. 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. If you have questions after reading the Motion, please send them to info@regulatoryresolutions.com and include Silver Saddle in the subject line. As a result, Investor A has a claim for $200, Investor B has a claim for $500, and Investor C has a claim for $300. By Emily Guerin and Gabriel Dunatov | KPCC/LAist For decades, salespeople at a remote resort in the Mojave Desert have allegedly used high pressure sales tactics to sell land to thousands of people throughout California, including many in Filipino, Chinese and Latino communities. Instead Judge Wohlfeil treated the ex parte application as an application for order shortening time, which he granted. For decades, real estate developers have sold a dream here: if you buy land now, youll be rich one day. The highest water bill was $46,864 for mid-October 2019 to mid-November 2019. Every weekday, you'll get fresh, community-driven stories that catch you up with our independent local news. 9, 2021), Receiver's Motion for Proposed Distribution to Investors (Feb. 8, 2021), Receiver's 3rd Interim Status Report (Jan. 14, 2021), Minute Order Granting Receivers Motion to Approve Sale of Ranch (Nov. 6, 2020), Receiver's 2nd Motion to Approve Sale of Ranch (Oct. 13, 2020), Receiver's 2nd Interim Status Report (Sept. 15, 2020), Silver Saddle Resort Sales Brochure (August 24, 2020), Galileo Parcels Sales Brochure (August 24, 2020), Receiver's Ex Parte Appl'n for Order Cancelling Escrows (Aug. 5, 2020), Preliminary Injunction re Accelerated Assets; SS Purchco; and Pahrump Valley Real Estate Co. (July 24, 2020), Minute Order re Motion to Intervene and for Preliminary Injunction (July 24, 2020), Moody Decl. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo Project investors. The current sales brochure for the Ranch and the Galileo Project can be found in the Documents section of this webpage. 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. Because of these ongoing costs, we determined selling the Ranch is in the best interest of the Receivership Estate. If you're enjoying this article, you'll love my daily morning newsletter, How To LA. The Top 5 newsletter catches you up with LAs top 5 stories in just 3 minutes. You have permission to edit this article. The Receiver has received several inquiries concerning W-2s from former employees. The sale of the Galileo Project Land, however, was put on hold. In Silver Saddle's case, approximately 1,000 acres of empty desert on the outskirts of California City, divided into 4,000 shares. Windy with sunshine. Who knows when we'll see such vibrance again in this recently drought-choked land? 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. 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.. At that time, the Receiver will also file a Notice of Final Determination of Claims with the Court. They watched a presentation about the area's potential. As such, the Receiver accepted the offer and will soon seek Court authority to sell the Galileo Project land. Escrow was opened on July 2, 2020. The hearing originally set for August 19, 2020 on the Receivers motion to approve the sale of real property owned by Silver Saddle Ranch & Club, Inc. has been taken off calendar. The Court will need to approve a distribution before the proceeds from the sale can be distributed to investors. Every two years, Desert X presents site-specific outdoor installations throughout the Coachella Valley. Between 2011 and 2019, Silver Saddle made more than $56 million. Please prove that you're human. 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. 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. Heres How To Start Your Search, Emmery Muoz, 14, Was Killed In LA 17 Years Ago. 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. The developer of California City, Nat Mendelsohn, built hundreds of miles of roads through the empty desert. Most of the money, the DBO learned, was gone. The landowners live all over the world. And the total claim will be used to determine the investors pro rata share of any distribution(s) ordered by the Court. 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. 6. 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. DBO contends that businessman Thomas Maney and other associates conned people into purchasing land shares on theGalileo Project with the promise of earning a significant return on investment down the road. 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. According to the court document, the ranch includes six primary buildings: a club. Instead, each investor will receive a share of the proceeds proportionate to his or her investment in the Galileo Project (a pro rata share). 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 salespeople held raffles for free airline tickets to Hong Kong and Manila, shopping sprees, watches, cameras and other perks to encourage people to invest. According to sources I spoke with and court documents, sales agents suggested that wealthy businessmen like Elon Musk and Bill Gates were investing nearby. If $100,000 is distributed, then Investor A would get $3,000 and Investor B would get $5,000. No, the Ranch was permanently closed and recently sold to a third party pursuant to a 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. The Receivership Estate will not be able to fund these costs for very long. The DFPI alleged that Defendants . Receivers Review of Challenges and Final Determination. Winds SW at 15 to 25 mph. The motion cites water costs alone ran more than $285,000 since it was placed in the receivers hands in October 2019. Prior to the hearing, the Court issued a tentative ruling approving the sale. The charges include conspiracy to commit a crime, grand theft of personal property, securities fraud and use of a scheme to defraud a consumer regarding the sale of securities. 7, 2022), Receiver's Motion to Approve Sale of Galileo Project Land (Mar. There will not be a hearing on August 27, 2020 to cancel the escrows. Case Summary. Proceeds from Silver Saddle Resort and eventually the Galileo Project parcels will be used to reimburse the receivers costs and provide remuneration for investors who sunk money into purchasingGalileo property. On April 15, 2022, the Court held a hearing on the Receivers Motion to Approve the Sale of the Galileo Project Land. They sued Mendelsohn's company, which was then known as Great Western Cities. In that scenario, Investor As pro rata share is 3% and Investor Bs pro rata share is 5%. Mismanagement, Sloppy Hiring Practices, Lack Of Transparency. 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. Silver Saddle sold shares of the landbanking project for around 100 times more than what they were really worth. The lowest water bill was $4,339 for mid-March 2020 to mid-April 2020. In this new podcast from LAist Studios, host Emily Guerin tells a story of money, power and deception. On July 16, 2020, the Court held a hearing on the Receivers Ex Parte Application to Shorten Time for a Hearing on the Receivers Motion to Approve the Sale of Silver Saddle Ranch and Club. In the 1950s and 60s, the city evicted the mostly Black and Latino working-class residents of Section 14 and destroyed their homes. 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 Judges overseeing this case are JOHN J. KRALIK and WILLIAM F. HIGHBERGER. 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. 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. Investors should look for the letter in the U.S. mail. See March 7, 2022 post below for further information and details. Many were young couples and hard-working immigrants looking to build a better future. I wish (the salespeople) realize how much they cost all the families, he said. On March 13, 2020, the Receiver filed the first status report. 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. 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. 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. Because of these ongoing costs, we have determined selling the Ranch is in the best interest of the Receivership Estate. The receiver noted in the motion that many of these amenities were modestly constructed, outdated, and poorly maintained.. Leads Ali Wong and Steven Yeun issue a joint statement along with show creator Lee Sung Jin. By 1970, Mendelsohn had 3,000 salesmen and 24 sales offices around the world. 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). March 23, 2021 Motion to Approve Distribution Method and Procedures. These expenses include water, electricity, labor, and insurance costs. On September 29, 2020, California City approved the Ranch for a lower water rate, which should result in lower water bills. We do not anticipate that the criminal case will affect this case or the receivership. "Mendelsohn isn't trying to sell land, and the public isn't really buying the land. But in an interview, Maney told me he and Silver Saddle have nothing in common with Nat Mendelsohn or Great Western Cities. 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.. More information on these matters is available in the Receivers Fifth Interim Status Report (filed September 16, 2021) and the Receivers Sixth Interim Status Report (filed January 13, 2022). The relevant documents can be accessed at the links below or by clicking on the documents to the right. The Court approved the sale on November 6, 2020, and the sale closed on January 14, 2021. DON'T MISS ANY L.A. CORONAVIRUS NEWS He was shocked to hear the news of the criminal charges. A trial date has been set for July 2021. For additional details on the sale of the Ranch, please see below. During the sales pitch, potential customers were divided up by ethnicity and paired with a salesperson who spoke their primary language. Get our daily newsletters for the latest on COVID-19 and other top local headlines. 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. 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. Investors will have 90 days to cash the checks. Jones expressed a concern that he did not have a full and fair opportunity to pursue an offer which he provided to the broker. 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. Insperity, the payroll provider, will issue W-2s to former employees by January 31, 2020 via either U.S. mail or electronic delivery. Higher wind gusts possible. Now, the California Department of Business Oversight has accused the company of On May 13, 2021, the Receiver asked the Court for permission to proceed with the sale of the land to the solar energy 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. 4. Heres How To Start Your Search, Emmery Muoz, 14, Was Killed In LA 17 Years Ago. On July 24, 2020, Judge Wohlfeil denied the Motion to Intervene filed by Antonio Garcia and Carlos Novelo.