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Friday, May 20, 2022

Pre-scan of sales of Bay Area properties owned by developer linked to scam

SAN JOSE. The court-appointed trustee is making slow progress in a wide-ranging bid to sell Bay Area’s real estate empire to a developer who is central to a fraud case with alleged victims in the hundreds.

Of the 13 properties listed in a recent federal lawsuit, only five have sold.

The five transactions generated a total of $14 million in revenue that could potentially be distributed to investors in projects designed or proposed by scam developer Sanjeev Acharya and his company Silicon Sage Builders.

However, this amount represents only a fraction of the $119 million that about 250 people have invested in projects planned or built by Acharya, according to a 2020 fraud complaint by the Securities and Exchange Commission.

Sanjeev Acharya, CEO of Silicon Sage Builders, a real estate development firm based in Sunnyvale. (Silicone Wise Men)

The SEC accused Acharya and Silicon Sage of a slew of fraudulent activities that federal regulators allege defrauded hundreds of investors, many of whom were South Asians.

A federal judge placed the Silicon Sage property into administration. A court-appointed trustee began a lengthy process trying to salvage the value of a collapsed and bankrupt real estate empire by finding buyers for the property.

The gap between what investors have paid and the net proceeds of the five completed deals to date paints a bleak picture for the people who provided the Acharya and Silicon Sage with the funds for his real estate ventures.

Completed sales are a large residential development in downtown San Jose on Balbach Street that sold for $53.5 million and generated $10.7 million in net proceeds.


World Nation News Deskhttps://www.worldnationnews.com
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