DFPI Action Results in Nearly 3,000 People Receiving $7M in Restitution after California Land Investment Scam

What You Need to Know: Watch the Mail! About 3,000 consumers will receive checks totaling more than $7 million. DFPI secures refunds for victims scammed in a land investment scheme.

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SACRAMENTO - The California Department of Financial Protection and Innovation (DFPI) announced today that almost 3,000 consumers-many from California's Filipino, Chinese, and Hispanic communities-will soon receive checks totaling more than $7 million in restitution for securities fraud. The refunds, ordered by a California judge, stem from DFPI's enforcement action involving a fraudulent land development scheme in Kern County.

"Our swift action and constant vigilance mean that thousands of people, many of whom are in the Golden State, are now able to get at least some of their money back from sophisticated scam artists who manipulated them out of their hard-earned money," said DFPI Commissioner KC Mohseni. "We will continue to stand up for consumers and not allow fraudsters to prey on our vulnerable communities, including those with limited English-speaking skills."

Background

The land investment scheme centered around a piece of desert in Kern County that has been the subject of scams for decades, including one Thomas Maney was involved in forty years ago.

In 2011, a group of individuals and companies, including Maney and Silver Saddle Commercial Development, used aggressive sales tactics to target Filipino, Chinese, and Hispanic communities, where English was a second language. They persuaded over 2,000 investors to pay as much as $30,000 each for a share of an undeveloped 1,000-acre patch of desert in remote Kern County.

The scheme, called "Land Banking Plus" or "The Galileo Project," was an elaborate scam offering small investors an interest in a development project touted as a "no-risk investment" with "tremendous returns." The scammers lured Californians by organizing raffles at various ethnic grocery stores, inviting people to free buffet dinners and then subjecting them to high-pressure sales tactics. DFPI alleges this scheme violated California securities law.

In 2019, the DFPI sued Thomas Maney, Silver Saddle Commercial Development, LP, and others for securities fraud and shut down the operation. A court agreed with the DFPI's request to freeze the operation's assets and appoint a receiver to reimburse the victims. Earlier this year, Maney and several others pleaded guilty to numerous felony charges, including criminal securities fraud, clearing the way for the receiver to distribute checks to the victims. While investors will likely not recoup their entire investment in this fraudulent scheme, had the DFPI not acted swiftly seven years ago to freeze assets in the civil case, investors might not have received any money back from these scammers.

What Today's Action Means for Consumers

People who invested in this fraudulent Silver Saddle scheme will soon be receiving checks distributed by a court receiver. Consumers must:

• Cash the check within 90 days or
• Send written notice of a claim to the receiver within 45 days.

If an investor fails to take either of these actions within the allotted time, they will waive any claim to that distribution.

The DFPI encourages investors to review the receiver's website for more details and updates. Consumers who believe a financial services provider has engaged in unlawful, unfair, deceptive, or abusive practices may submit a complaint to the DFPI at dfpi.ca.gov/submit-a-complaint/ or call (866) 275-2677.

About DFPI

The Department of Financial Protection and Innovation protects consumers, regulates financial services, and fosters responsible innovation. DFPI protects consumers by establishing and enforcing financial regulations that promote transparency and accountability. We empower Californians to access a fair and equitable financial marketplace through education and by preventing potential risks, fraud, and abuse. Learn more at dfpi.ca.gov.