SAN JOSE — Some Bay Area properties owned by a fraud-linked and bankrupt real estate company have been foreclosed, raising fears that investors in the developer’s projects could be wiped out.
The properties are sites where SiliconSage Builders and its chief executive Sanjeev Acharya – targets of fraud charges brought by the Securities and Exchange Commission – had proposed the development of several housing projects.
The SEC says Acharya and Silicon Sage defrauded about 250 people, mostly from the South Asian community, out of at least $119 million, according to documents filed with the U.S. District Court in San Francisco.
For more than a year, a court-appointed receiver, David Stapleton, has been trying to sell as many properties as possible in a bid to recoup money for defrauded investors from the proceeds of the sales.
In some cases, however, the receiver has been forced to allow lenders on the properties to seize the sites by foreclosure.
Two of the properties are in San Jose and one in Fremont, according to court documents:
– 2101 Alum Rock Ave. east of San Jose was seized by its lender. The Alum Rock site is the location of a proposed development that was to include 796 residential units, as well as shops and restaurants.
— Little Portugal Gateway, located near North 34th Street and Alum Rock Avenue, was taken over by a foreclosure deed, according to documents filed June 16 with the Santa Clara County Recorder’s Office. The outstanding debt was $2.42 million, according to county records.
– Properties in the Centerville District of Fremont are heading for foreclosure. The receiver said in court documents it would back down and allow the lender to regain ownership of the sites through foreclosure. Properties are located at 37358 to 37494 Fremont Blvd., 3804 to 3780 Peralta Blvd. and 37417 Jason Way.
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Post expires at 8:01pm on Wednesday June 29th, 2022