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 receiver moved to expedite the sale. The case remains pending in San Diego County Superior Court, with a current trial date of January 21, 2022. 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. Our complaint services are free and our team of expert mediators will assist in resolving complaints with businesses. 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. 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 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. According to the receivers motion, the offer was submitted along with a joint venture proposal involving the Galileo Project investors and also involved financing contingencies, compared to a previous all-cash offer by Jones. 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. Craig v. Saddle Ranch Chop House, LLC - Casetext IN 2011, SILVER SADDLE TRANSITIONED FROM SELLING VACANT DESERT LOTS TO SELLING SHARES OF A CONFUSING REAL ESTATE INVESTMENT CALLED 'LANDBANKING'. Case Information Case Number: 30-2022-01242337-CU-FR-CXC Case Status: Not Classified By Court In July, Mr. Maney asked the Court to stay this case, which would put the case on hold, until the criminal case is finished. 1. Will Orange County's Fledgling Clean Power Agency Survive. The criminal complaint is available in the documents section of this webpage. Unfortunately, the Receiver did not receive acceptable offers before the deadline. As such, the Receiver accepted the offer and intends to seek Court authority to sell the Galileo Project land. A photo of Nat Mendelsohn, the founder of California City, on the cover of the 1961 annual report to property owners. We also raise pigs and goats to sell to Trial is presently scheduled for May of this year. IT'S UNLIKELY THAT PEOPLE WHO INVESTED IN SILVER SADDLE WILL GET THEIR MONEY BACK. We are preparing a proposed order for the Court and will post it on the Receivers website when the judge approves. August 17, 2020 Postponement of Receivers Motion to Cancel Escrows. Right now, the case is set for trial in September 2022. Feterik initially resisted the attempt to cancel the escrow. At the hearing, the Court approved the sale of the land for $900,000, with clear title and free of all liens and encumbrances. Separately, the Receiver sought the Courts permission to list for sale two other, smaller properties owned by Receivership Defendant High Plains Mesa Holdings. People v. Silver Saddle Commercial Development, LP, et al. (Silver The DFPI alleged that Defendants . In Silver Saddle's case, approximately 1,000 acres of empty desert on the outskirts of California City, divided into 4,000 shares. After completing this process, the Receiver will select the best offer and submit it to the Court for consideration. The owners of the 30,000-acre Silver Saddle Ranch & Club, about a dozen miles north of the downtown here in a remote corner of this remote city, are touting the open spaces of the high desert as a . The sale closed but in August 2021, the owners of High Plains Mesa Holdings appealed the sale and filed a bankruptcy petition on the companys behalf without the Receivers permission. August 26, 2022 Receivership Case Stayed. And many of the amenities they'd been told were coming had yet to be built. The sale of the Galileo Project Land, however, was put on hold. New potential buyer found for Silver Saddle Ranch, BY JACK BARNWELL With the trial date approaching, the Receiver intends to proceed with the sale of the Galileo Project Land for $900,000 to the same individual who purchased the Ranch. We then calculated each investors total claim by adding (1) the amount he or she paid toward the purchase of an undivided fractional interest in the Galileo Project; and (2) the amount contributed to the Galileo Capital Investment Fund (CIF). In the 1950s and 60s, the city evicted the mostly Black and Latino working-class residents of Section 14 and destroyed their homes. Get our daily newsletters for the latest on COVID-19 and other top local headlines. March 7, 2022 Notice to Silver Saddle Investors of Claim Determinations. 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. Mr. Maney and a number of others are facing criminal charges in connection with Silver Saddle. They sued Mendelsohn's company, which was then known as Great Western Cities. 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. Any response must be filed before the hearing. 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. BC314239 Your activity looks suspicious to us. The prospective purchaser agreed to cancel the escrows, thus eliminating the need for the Receivers motion and the hearing on the matter. Silver Saddle Ranch & Club Inc :: Superior Court of California, County of Los Angeles :: State Civil Lawsuit No. The Receiver will proceed with hiring a realtor and proceeding with listing and marketing the properties. 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 promotional brochure from Silver Saddle, which is part of the DBO's lawsuit against the company. But much of the land they bought is nearly worthless. 2. 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. The Judge overseeing this case is Joel R. Wohlfeil. In May 2020, DBO filed an amended complaint, adding additional defendants, SS Purcho, LLC, Accelerated Assets, LLC, and Pahrump Valley Real Estate Co., LLC. As the Receiver mentioned in his last update, the same proposed buyer who offered $2,100,000 for the Ranch also offered $900,000 for the Galileo Project vacant land. The agency accused Silver Saddle, Maney, Ducreux and other defendants of securities fraud and selling unqualified securities. Accelerated Assets Defeats Securities Enforcement Action - Cooley That same year, Nat Mendelsohn died. 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. Mojave Desert resort allegedly targeted California's immigrant 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. In that scenario, Investor As pro rata share is 3% and Investor Bs pro rata share is 5%. Now, survivors and their descendants seek reparations. Escrow was opened on September 29, and the proposed buyer has 21 days to clear contingencies. According to the receiver, the resort operated at a loss that eventually hit $1.5 million a year but continued to operate on subsidies from other related business the defendants operated. re Receiver's Motion to Approve Sale of Galileo Project Land (Mar. Department of Business Oversight sues to stop $30 million Silver Saddle 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. Both the Ranch and the Galileo Project property are listed for sale. The Court granted the Receivers request on June 11, 2021. A simple example can help explain how this works. 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. In order to move promptly when the case is resolved, we are providing notice to all investors of the Receivers claim determinations. Each investor will get a pro rata share of the distribution: Investor A will receive $20 (20% of the distribution), Investor B will receive $50 (50% of the distribution) and Investor C will receive $30 (30% of the distribution). The blue jellyfish-like creatures were swept by the winds of California's recent storms. Case Details Parties Documents Dockets. Both properties are located in Cal Citys Second Community. 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 Receiver has been marketing the Ranch through a real estate broker for sale since May. The landowners live all over the world. Trial is presently scheduled for May of this year. Insperity, the payroll provider, will issue W-2s to former employees by January 31, 2020 via either U.S. mail or electronic delivery. Investors should look for the letter in the U.S. mail. 4, 2022), Knight Decl. As we said previously, Defendant Thomas Maney and others were criminally charged based on conduct that is essentially the same as in this case. This case was filed in Kern County Superior Courts, Metropolitan Branch located in Kern, California. The request to have the sale approved will be filed separately. This will ensure the sales process is healthy and will maximize the sales price, which is in the best interest of the Receivership Estate. Silver Saddle Ranch and Club California, City, California USA Phone: 760-373-8617 Web: silversaddle.com Category: Unusual Rip-Off Silver Saddle Ranch and Club Silver Saddle Commercial Development LLCGalileo Project Land Banking Scam California, City California *Consumer Suggestion: Silver Saddle Ranch Club A pyramid scheme 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. 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. As previously reported, the receivership case was stayed (put on hold) on August 11, 2022 as the result of a request by Defendant Maney. When emailing our office, please include your unit number to allow us to locate your records quickly. According to the receiver, Feterik eventually withdrew his objection and the receiver re-opened the sales process for both Silver Saddle and the Project properties. As you may be aware, the Court approved the sale of the Silver Saddle Ranch and Club ("Ranch") for $2,100,000. Mamann also fielded a separate offer to purchase the approximate 1,020 acres of the adjacentGalileo Project parcels, which are also under state receivership for an additional $900,000. For example, assume that Investor As claim is $30,000, Investor Bs claim is $50,000, and aggregate investor claims of $1,000,000. The current sales brochure for the Ranch and the Galileo Project can be found in the Documents section of this webpage. You have permission to edit this article. Silver Saddle sold shares of the landbanking project for around 100 times more than what they were really worth. We will update again after September 15, 2023 status hearing or before if events merit. 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. A copy of the Receivers First Interim Status Report is posted in the Documents section of this webpage. If you have questions after reading the Motion, please send them to info@regulatoryresolutions.com and include Silver Saddle in the subject line. 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 receiver noted in the motion that many of these amenities were modestly constructed, outdated, and poorly maintained.. What You Should Know About This Year's 'Constant Bloom', You Need Child Care For Your Baby. Landbanking is where a group of people jointly own a huge chunk of land. The Silver Saddle Ranch in California City, California has been closed to the public and visitors. Our news is free on LAist. 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. The business operations in Burbank have been terminated. If you're enjoying this article, you'll love my daily morning newsletter, How To LA. 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. Community funding keeps us independent and accountable. 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. (Chava Sanchez/KPCC). 7. Receivers Notice of Final Claim Determinations and Proposed Distribution. On March 13, 2020, the Receiver filed the first status report. Saddle Commercial Development, LP, Silver Saddle Ranch & Club, Inc., and Galileo Commercial Property Owner's Association, Inc. are hereby ordered to desist and refrain from the further offer or sale of securities in the State of California, including but not limited to investments in the The Galileo Project property has been listed for $919,746. 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 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. Claim Determination letters have gone out today to Silver Saddle investors who invested in the Galileo Project (sometimes called LandBanking Plus). If you have a tip or story to share about California City or Silver Saddle (or anything else), email me: eguerin@scpr.org. THE CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT CHARGED SILVER SADDLE WITH FRAUD AND SHUT THE COMPANY DOWN IN 2019. 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. January 17, 2020 W-2s for Former Employees. What about Silver Saddle Ranch & Club - is it still open? 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. 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. The case status is Not Classified By Court. Many were young couples and hard-working immigrants looking to build a better future. Although the sale closed as scheduled, High Plains Mesa Holdings filed a Notice of Appeal of the Courts Order authorizing the sale. A sale will eliminate substantial ongoing expenses. 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. In other words, no investor will receive the full amount of his or her claim. For additional details on the sale of the Ranch, please see below. It seemed like such an anachronism, a relic of Southern California post-war hubris, or maybe even Gold Rush-style boosterism. All the parties will be provided certain due diligence materials (e.g., preliminary title report, seller disclosures, etc.) Timeline for Court Challenge to Receivers Confirmation of Claim Determination. To support our non-profit public service journalism: Donate Now. 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). As we have noted repeatedly, calculating the Final Claim Determination amounts does NOT mean investors will receive those amounts. Low 44F. In other words, Investor A provided 20%, Investor B provided 50%, and Investor C provided 30% of the total investment. However, before this can occur, the current escrows must be canceled. They had an elaborate referral program: Anyone who bought a share of the landbanking project and then referred their friends would receive $2,000. 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. According to sources I spoke with and court documents, sales agents suggested that wealthy businessmen like Elon Musk and Bill Gates were investing nearby. Thomas Maney and the companies running these investments (the Defendants) were sued by the California Department of Financial Protection and Innovation (DFPI) in 2019. 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. The idea was that the land would appreciate in value, and when it did, all the co-owners could sell it to a developer and make a lot of money. See March 7, 2022 post below for further information and details. Each investor would receive a part of the proceeds from the sale proportionate to the money he or she paid for the property. The current sales brochure for the Ranch and the Galileo Project can be found in the Documents section of this webpage. Parent and Community Center Grand Opening, Tehachapi area Crime Data Report for March, U.S. 395 to Close for Emergency Infrastructure Damage Repairs. 12. 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). The deadline for bids on the Ranch and the Galileo Project properties was September 14, 2020 at 10:00 a.m. Thousands of people bought this dream. The Court denied the Receivers ex parte application for an order cancelling escrows for the Ranch and Galileo parcels, and stated that it was not inclined to rule on the request via ex parte application. However, the sales pavilion, parking, and other related improvements are located on a 24-acre parcel is owned by the City of California City and leased to Silver Saddle Resort and Club which expires April 17, 2027. The Receivership Estate will not be able to fund these costs for very long. The Judges overseeing this case are Clark, Thomas S., Schuett, Stephen D. and Friedman - Retired, Gary T.. We do not anticipate that the criminal case will affect this case or the receivership. If approved, the closing date would occur within 60 days, according to the receiver. 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. The Final Determination of Investor Claims will be used to calculate the pro rata share of any distribution ordered by the Court. The case status is Pending - Other Pending. What You Should Know About This Year's 'Constant Bloom', You Need Child Care For Your Baby. Silver Saddle Ranch | Weatherford TX - Facebook Ripoff Report | Silver Saddle Review - California, City, California The contract had no cancellation period, and buyers were required to pay $41 a month in membership fees to Silver Saddle -- indefinitely. 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. Investor payments will be made by check. The trial date in this case remains the same, September 16, 2022. High near 70F. 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.". Silver Saddle Ranch & Stables | Roseburg OR - Facebook Instead, each investor will receive a share of the proceeds proportionate to his or her investment in the Galileo Project (a pro rata share). Cal City history, Silver Saddle Ranch focus upcoming podcast The Ranch is listed for $1,874,500. Notice of this filing will be provided to investors by email and via posting on the receivership website. That's because the land Silver Saddle sold was "near worthless real estate," according to the DBO. The Receiver also filed a Response to the Motion to Intervene filed by Antonio Garcia and Carlos Novelo. 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! JOSE CARRILLO VS SILVER SADDLE RANCH & CLUB, INC - UniCourt 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. A judge appointed a receiver to take control of the company's assets and property while the case proceeds. The land sale scheme later became the subject of an eight-part LAist podcast California City.. 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. Each investor who submitted a challenge has been contacted by mail and email explaining the Receivers review and determination of their challenge. But even if the sale goes through, it won't generate nearly enough money to make all the investors whole. 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. Background on the Process to Reach a Final Determination of Investor Claims. Lets assume Investor A invests $200, Investor B invests $500, and Investor C invests $300 for a total of $1,000 invested. 2023 Southern California Public Radio - All Rights Reserved, As Fentanyl Deaths Climb, Bill Would Require Drug Education In Schools, Lawmakers Want More Social Media Regulation. 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. In my reporting, I learned that Silver Saddles land sale scheme was essentially an open secret in Kern County. 5. The price was adjusted a few times before stabilizing at $1.87 million. However, because the Silver Saddle Ranch & Club and the Galileo Project land are worth far less than the investors . 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. The Galileo Project land is presently encumbered by roughly 1,700 fractional interests provided to the Galileo Project investors. For the latest national news from NPR and our live radio broadcast, visit LAist.com/radio. 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 motion cites water costs alone ran more than $285,000 since it was placed in the receivers hands in October 2019. Two Los Angeles artists have new work on display. The Top 5 newsletter catches you up with LAs top 5 stories in just 3 minutes. Heres How To Start Your Search, Emmery Muoz, 14, Was Killed In LA 17 Years Ago. 3. The day after filing the Notice of Appeal, High Plains Mesa Holdings and High Plains Mesa Management filed for bankruptcy. 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. Expansion Planned by Getaway in the Wide Open Spaces : Silver Saddle The sale is set to close in 60 days. 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. 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. At the conclusion of the case, the Receiver will promptly move for permission to make a distribution. The case is still on-going. 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. This case was filed in San Diego County Superior Courts, San Diego Central Courthouse located in San Diego, California. The Receiver has therefore proposed to the Court that pro rata distributions be made to each investor based on the amount each investor paid into the Galileo Project and Common Improvement Fund. 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. The receiver requested the court to cancel the escrows and refund Feteriks deposit. Six Former Sunset Strip Restaurant Workers Allege Sexual Harassment 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. Complaints for Silver Saddle Ranch & Club, Inc. in California City, CA April 18, 2022 Court Grants Motion to Approve Sale of Galileo Project Land. Even though operating expenses have been reduced, maintaining the Ranch continues to drain the limited resources of the Receivership Estate. If you'd like to follow the Silver Saddle court case, follow me on Twitter: @guerinemily. They watched a presentation about the area's potential. An onslaught of velella velella washed up on shore this weekend on Southern California beaches. The Court ordered that the Receiver cannot distribute any money to investors until the end of the case.