While proceeds from the ranch's sale doesn't go toward refunding fraud investors, the receiver will advocate for that option, according to the court documents. There would be half a million residents living along winding city streets that were curved to slow down traffic. In addition to the ranch, Feterik made a separate $775,000 for nearly 160 acres of adjacent Galileo Project lands also under the receiver's management. Most of the money, the DBO learned, was gone. According to DBO's lawsuit, Silver Saddle committed securities fraud in connection for the sale of 1,020 acres of vacant desert property, called the "Galileo Project" near California City. After the Nader's Raiders' published their report in 1971, the Federal Trade Commission began to investigate. Silver Saddle Ranch & Club: Membership only in the fastest growing city in California. 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. The intent to sale the ranch did not go without opposition, according to court documents. They're engaged in a grand illusion of creating wealth...NK Mendelsohn has perfected the art of turning desert dust into gold — but only for himself.". In September 2019, the California Department of Business Oversight filed a lawsuit against Silver Saddle, accusing the company of securities fraud. In 1984, the company declared bankruptcy. 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. 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. We also offer dozens of activities from archery to horseback riding, swimming and tennis. The case is still on-going. The case status is Disposed - Dismissed. They watched a presentation about the area's potential. Silver Saddle Ranch is a SCAM BUSINESS, They are selling a property worth $20,000 but the actual value of the Lot is only $500.This is not a joke … silver saddle ranch class action lawsuit. Subgroups? California City is a limited series with 8 episodes. The receiver countered that it has maintained the ranch while "still responsibly cutting costs when possible." Other Phone (818) 325-3930. Silver Saddle Ranch sale pending August court date, BY JACK BARNWELL 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. Since 2011, Silver Saddle's sales agents sold "shares" of the landbanking project to more than 2,000 people, for up to $30,000 each. Silver Saddle Ranch and Club are trying to extorted us for more money now. In addition, the investors were required to make recurring payments for membership in the Silver Saddle Ranch & Club and 'travel club' and other assessments and received an … Low 41F. Get our daily newsletters for the latest on COVID-19 and other top local headlines. According to the news release, "the investments were not qualified or, approved by the state as required and were sold with 'blatant misrepresentations' and. The DBO alleged that Defendants committed The ranch property was originally listed on the market for $1.89 million when the receiver placed the ranch on the market on May 8 under real estate broker Kidder Matthews. Silver Saddle Ranch is in an oasis of the Mojave Desert and is perfect for rest or recreation. 1. As Mendelsohn saw it, city folks could come and buy an empty lot — for cheap. Principal. If you'd like to follow the Silver Saddle court case, follow me on Twitter. A Harrier Hawk soars over Silver Saddle Ranch in the morning light. 24 January 2021 January 24, 2021. But in an interview, Maney told me he and Silver Saddle have nothing in common with Nat Mendelsohn or Great Western Cities. When the court-appointed receiver took over last September, Silver Saddle's finances were a mess. BBO named Thomas Maney of Lancaster as a major defendant in the case, along with Silver Saddle Ranch & Club, Inc.; Silver Saddle Commercial Development, LP; and the Galileo Commercial Property Owners Association, Inc. IN 2011, SILVER SADDLE TRANSITIONED FROM SELLING VACANT DESERT LOTS TO SELLING SHARES OF A CONFUSING REAL ESTATE INVESTMENT CALLED 'LANDBANKING'. Our goal as a community is to raise awareness of the abuse, but also to direct the Governors attention to the sale of Silver Saddle Ranch and Galileo Land by encouraging the DBO to act … 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. The Silver Saddle Ranch Homeowners Association is is governed by a Board of Directors, comprised of 7 members, elected by the Association, to serve typically a 3 year term. Silver Saddle Ranch continues to be completely closed while under California State Receivership until further notice. Here are 7 key takeaways: 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, In September 2019, the California Department of Business Oversight filed a, against Silver Saddle, accusing the company of securities fraud. Editor The receiver contacted all Galileo Project investors and received objections from 25 of them. In Silver Saddle's case, approximately 1,000 acres of empty desert on the outskirts of California City, divided into 4,000 shares. An Oct. 1, 2019, DBO press release noted stated that Maney was the central figure behind "a scheme that violated state securities laws and targeted Filipino, Chinese and Spanish-speaking communities with high-pressure sales tactics and false promises" that stretched back as 2011. By 1970, Mendelsohn had 3,000 salesmen and 24 sales offices around the world. Silver Saddle gets shut down and accused of fraud. Additional savings came from water leak repairs. Phone Numbers (310) 444-5210. The court named McNamara as the receiver on Oct. 30, 2019. PETITION “CORRUPTION AND ABUSE OF POWER” THE SALE OF SILVER SADDLE RANCH This Petition is going to be sent to California Governor Newsom to inform him of the corruption and abuse by Receiver, Thomas McNamara. According to a response from the receiver, the motion to intervene claimed the receiver did not communicate with all the receivers. If you have a tip or story to share about California City or Silver Saddle (or anything else), email me: eguerin@scpr.org. Less than an hour after signing a contract we had our doubts and were able to think it through and contacted the broker. There's still no sign of them. Silver Saddle lured prospective buyers from around California with the promise of a free weekend at the ranch. My wife and I were scammed Silver Saddle in May 2015. The property includes 130 acres, 62 acres of which sits the ranch's clubhouse/, admin building, sales pavilion and motel-style rooms. We bought the into the proposal for $27990 we paid $6793 Deposit. During the sales pitch, potential customers were divided up by ethnicity and paired with a salesperson who spoke their primary language. "While some investors oppose the sale, the Galileo Project investors do not have an interest in the property as the Ranch is owned solely by Receivership Defendant Silver Saddle Ranch & Club, Inc," the court document states. It seemed like such an anachronism, a relic of Southern California post-war hubris, or maybe even Gold Rush-style boosterism. Silver Saddle Ranch & Club updated their status. Graduates of the program were expected to buy a piece of land themselves, and refer their friends and family. 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. Do We Need Police To Curb LA's Traffic Violence? A judge appointed a receiver to take control of the company's assets and property while the case proceeds. The contract had no cancellation period, and buyers were required to pay $41 a month in membership fees to Silver Saddle — indefinitely. I bought land in Silver Saddle Ranch in California City September.2018, I paid $7000, They asked me to pay month payment 468 for 10 years with rate 15.6%,I after research online, I find this is a scam ,I want to cancel the contract, even can't get the refund back ,but at least out of this scam ,can you give me some advice? About the Licensee status. There would be a golf course, a university, a mall, a massive park and an airport. You have permission to edit this article. Motion to Approve Sale of the Silver Saddle Ranch and Club Filed and Telephonic Hearing Set for November 6, 2020 at 9:00 a.m. On October 13, 2020, the Receiver filed a Motion to Approve the Sale of the Silver Saddle Ranch and Club (“Ranch”) for $2,100,000. Explore a complete list of bird species observations in this area. The buyers were nearly all Filipino, Chinese or … To make sure you get our coverage: Sign up for our daily newsletters. It's biggest cost-cutter was water, according to the court document, reflected in "the appearance of some of the more desert-like land" of the ranch property. Silver Saddle Ranch and Club are trying to extorted us for more money now. The entrance to Silver Saddle Ranch remains blocked to vehicle and pedestrian access. - See 10 traveler reviews, 19 candid photos, and great deals for Silver Saddle Ranch & Club at Tripadvisor. That's because the land Silver Saddle sold was "near worthless real estate," according to the DBO. 7. And many of the amenities they'd been told were coming had yet to be built. silver saddle ranch lawsuit. Ambrose Interpretive Trail (Damaged) 0.5 : Location Link The receiver claimed in the court document that even though the ranch was a "centerpiece to the defendant's marketing efforts," it managed to run up a $1.5 million loss each year prior to the lawsuit. A trial date has been set for July 2021. The sale of those properties would be addressed in a separate request following the court's approval of Silver Saddle Ranch's sale. They sued Mendelsohn's company, which was then known as Great Western Cities. 1 . Mendelsohn advertised the program in major newspapers around the West, and it was wildly successful. An eventual injunction forced Silver Saddle Ranch to cease operation and its assets were seized or frozen. Winds W at 15 to 25 mph.. CALIFORNIA CITY WAS FOUNDED BY A CZECHOSLOVAKIAN IMMIGRANT WITH A VISION TO BUILD A CITY FROM SCRATCH IN THE DESERT. A judge appointed a. to take control of the company's assets and property while the case proceeds. 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. Share. But even if the sale goes through, it won't generate nearly enough money to make all the investors whole. Maney continued selling vacant desert land, using the resort as an attraction to draw potential buyers. Partly cloudy. According to a Nov. 26 document, the court order also suspended further sales of lots within the 1,020-acre area. click on image for printable PDF) Trail Rating: Mileage: Location: Uses: Ash to Kings Trail. Sales agents allegedly used high-pressure tactics that made it very difficult for potential customers to say no. Hotels near Silver Saddle Ranch & Club, California City on Tripadvisor: Find 5,422 traveler reviews, 203 candid photos, and prices for 96 hotels near Silver Saddle Ranch & Club in California City, CA. The decision to sell the property comes as the receiver reported a loss in maintaining the property between November and March, according to the update and court documents. Here are 7 key takeaways: 1. [19] If you have further questions or need more assistance, please call our Customer Service Office at: 1 … Silver Saddle Ranch And Club, Inc. 4. The Ranch located in the southeastern part of Carson City off Carson River Road encompasses 702 acres that run along the east and west bank of the Carson River. Cliques? Court documents identified the prospective buyer as Kevin Feterik, who entered into escrow with the receiver on July 6. The civil action unsealed today seeks an injunction, penalties, and restitution for all … A trial date has been set for July 2021. Silver Saddle Ranch, LLC (Temecula) This beautiful equestrian ranch located in the Temecula wine country is a heaven on earth for horses. Landbanking is where a group of people jointly own a huge chunk of land. The president of the ranch, Thomas M. Maney, built the ranch in the early 1980’s, with some help. In the court document filed July 10, the receiver claimed water was the highest cost at $201,273.85 for the five month period." The highest bill was $46,864 (from mid-October to mid-November); the lowest was $4,339 from March to April. Boron area Arrests and Court Appearances for Jan. Newsom lifts stay-at-home order, reinstates tiered system. Additionally, the Board utilizes Standing Committees and Ad Hoc Committees to achieve its mandates and priorities. People needed a place to go, to start over. 2. According to the motion to approve the sale, four offers were received and the $1.77 million from Feterik will "will maximize its value and minimize additional costs to the Receivership Estate and, ultimately, provide funds to initiate a distribution to investors.". The land in question, approximately 1,000 acres of empty desert around Silver Saddle Ranch, was “in the path of a new gold rush,” according to a brochure filed in court documents. AFTER GREAT WESTERN CITIES WENT BANKRUPT, A FORMER EMLOYEE QUIETLY CONTINUED SELLING VACANT LAND IN CALIFORNIA CITY. The response stated the receiver "has maintained a line of communication with all investors" and that it informed all investors of the ranch sale via different forms of communication, including email, phone and its website. Winds W at 10 to 20 mph. "This is no ordinary real estate scheme," read the report. "Given the significant and ongoing operating expenses, the sale of the property (which will eliminate operating costs, in addition to providing a recovery for the investors) is necessary and in the investors’ best interests.". IT'S UNLIKELY THAT PEOPLE WHO INVESTED IN SILVER SADDLE WILL GET THEIR MONEY BACK. High 69F. McNamara reported that the during the five-month period "water, electricity, labor, and insurance costs for the Ranch was approximately $230,000.". 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 DBO alleges that Thomas M. Maney of Lancaster, California, along with other named defendants associated with Silver Saddle Ranch & Club, Inc., initiated a “scheme that targeted Filipino, Chinese and Spanish-speaking communities with high-pressure sales tactics and false promises” violating state securities laws in the process. The sale of the Galileo Project lands will go toward the reimbursement. The motion to intervene also claimed the receiver wasn't maintaining the ranch and "is now in a deteriorated state" and "is rendered in disrepair making the property to be classified as overly distress … to even be considered for sale.". He envisioned building a city of 200 square miles in this otherwise desolate spot. How could this be happening in the 21st century? Some clouds. Thomas W. McNamara, the court-appointed receiver for Silver Saddle Ranch and Resort, requested the San Diego Superior Court approve an offer of $1.77 million for the large ranch located northeast of California City. Silver Saddle was placed into receivership in September 2019 following lawsuit filed by the Department of Business Oversight alleging that the defendant, Silver Saddle Commercial Development, used the ranch as a front for about $30 million in fraudulent land sale activities. The administrative action is currently pending. Silver Saddle sold shares of the landbanking project for around 100 times more than what they were really worth. THE CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT CHARGED SILVER SADDLE WITH FRAUD AND SHUT THE COMPANY DOWN IN 2019. The sale of a California City icon is pending a judge's ruling on Aug. 19, according to an update from the California Department of Business Oversight. 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. Silver Saddle Receivership FAQs Updated as of 10/10/2019 . They compared California City to Las Vegas and other large cities in the Southwest that began as tiny desert outposts. 5. California City would be that place. , seeks to answer that question, as well as a bunch of others that came up over the course of my reporting. That same year, Nat Mendelsohn died. She told us its just a buyer's remorse and to call her the next day. Silver Saddle Ranch is situated in a beautiful corner of the Mojave desert. Looking up the values of the 8 APNs associated with Silver Saddle and doing some math, my interest is only worth $132 and I paid over $12,000. According to sources I spoke with and court documents, sales agents suggested that wealthy businessmen like Elon Musk and Bill Gates were investing nearby. 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. Will the company - and the dream Ben Perez believed - survive? The case is still on-going. In 1977, the company settled, and was ordered to pay what was, at the time, the largest consumer refund in the history of the FTC. 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. More than 2,000 investors paid as much as $30,000 for part of the undeveloped desert land. A lot of it was used to pay sales agents. "Mendelsohn isn't trying to sell land, and the public isn't really buying the land. If you love all things equestrian do take a few minutes to check out the information on this wonderful ranch. The court date is set for Aug. 6, according to the DBO/receiver update. NEW INTERVIEW: California City Police Chief Jon Walker confirms more than 50 personnel from various agencies searched Silver Saddle Ranch Wednesday for the toddler brothers reporting missing in Cal City on Dec. 21. The 130 acre resort offers a wonderful getaway experience for everyone from families looking for some together time to groups needing a retreat space, couples wanting a unique weekend away and individuals looking for solitude. Contact Information. Some Cities Are Saving Lives Without Them, 1.4 Million Californians Who Lost Unemployment Benefits Last Month Are Now Scrambling To Get Them Back, Death In A Crosswalk: The Killing Of A 4-Year-Old Shows LA's Failure To Stop Traffic Violence, Gangs? Then the remainder of $22.392 and they added another $2000 to the payment after we signed the documents without our authorization. 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. 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. Our news is free on LAist. This case was filed in Los Angeles County Superior Courts, Stanley Mosk Courthouse located in Los Angeles, California. Please note: some activities may not … 'deliberate omission' of material information, the complaint alleges. They could build a house, or just hold onto the land and sell it in the future. "The only similarity is that we sold land," he said. Ultimately, more than 73,000 people bought land, netting Mendelsohn's company hundreds of millions of dollars. Administrative actions filed simultaneously requested penalties and an order that Maney, Silver Saddle Ranch and the other entities offer to repurchase the investments. Silver Saddle was placed into receivership in September 2019 following lawsuit filed by the Department of Business Oversight alleging that the defendant, Silver Saddle Commercial Development, used the ranch as a front for about $30 million in fraudulent land sale activities. What is this case about and what is the status? However, some of the promissory notes made were sold to third-party interests, of which a third indicated they would continue to collect payments. In September 2019, the California Department of Business Oversight filed a lawsuit against Silver Saddle, accusing the company of securities fraud. MENDELSOHN'S SALES TACTICS DREW THE ATTENTION OF RALPH NADER, AND GOT THE COMPANY IN SERIOUS TROUBLE WITH THE FEDERAL TRADE COMMISSION. Posted at 12:28h in Uncategorized by 0 Likes. On 12/01/2017 MELINDA CERDA filed a Labor - Other Labor lawsuit against SILVER SADDLE RANCH CLUB INC. The complaints about California City caught the eye of the attorney leading the project, who included a chapter on the city in the report. Between 2011 and 2019, Silver Saddle made more than $56 million. The injunction and appointment of a receiver prevented defendants from collecting money or payments from people who purchased land and still owed on promissory notes. It was supposed to be a good investment. The California Department of Business Oversight (“DBO”) filed its civil lawsuit on September 9, 2019 against Defendants. We bought the into the proposal for $27990 we paid $6793 Deposit.then the remainder of $22.392 and they added another $2000 to the payment after we signed the documents without our authorization. A … Silver Saddle Ranch gets sold, and the people who still believe it’s worth something stage a protest. To check the status of this licensee, visit Search for a Financial Services and Mortgage Lending Licensees on Self-Service Portal - DOCQNET by entering the license name or number.. 6. We bought 1/2 of 1/4000 of interest in the land they were selling in Kern County. Like many urban planners at the time, Mendelsohn thought major cities like Los Angeles were overcrowded, polluted and dangerous. ... Training and Rehabilitation provided an update Thursday to Nevadans about … An initial Kidder Matthews marketing brochure for the property included both the ranch and a portion of the Galileo Project land, which when combined totaled 288 acres. Some investors, working with Antonio Garcia and Carlos Novelo, filed a motion to intervene on the ranch sale. 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. editor@desertnews.com, Reward for missing boys increases, adoptive family speaks out, Virgin Galactic plans new SpaceShipTwo flight operation, CORE ENSEMBLE PERFORMS CHAMBER MUSIC THEATRE WORK CELEBRATING HARLEM RENAISSANCE, Late Start Classes Provide Knowledge and Skills in Information Technology, Mojave Unified governing board leans toward continued distance learning, Virgin Orbit tapped to launch Dutch satellite, Council approves water trucks, sampling stations, Council discusses changing city's 'narrative', Kern County Residents 65 and Older Now Eligible for COVID-19 Vaccination, Candlelight vigil held for missing West boys. Call Them What You Will -- There've Been 18 (Yes, 18) In The LA Sheriff's Department. To support our non-profit public service journalism: Donate Now. NIce getaway place from the noise of the city. If you'd like to follow the Silver Saddle court case, follow me on Twitter: @guerinemily. Customer Service; Additional Contact Information. Plus, a former employee comes forward with a disturbing story. Your No-Panic Guide To The COVID-19 Vaccine: Is It Safe, And When Can I Get It? No services are available & trespassing is prohibited other than appointed security/safekeeping personnel. 3. With 120 acres of lawns, trees, streams and lakes relaxing is easy. In the 1970s, a man named Tom Maney began working for Great Western Cities.