SAN JOSE – Some Bay Area properties owned by a fraud-linked and bankrupt real estate firm have tumbled into foreclosure, raising the specter that investors in the developer’s projects will be wiped out.
The properties are sites where SiliconSage Builders and its principal executive Sanjeev Acharya – targets of fraud accusations levied by the Securities and Exchange Commission – had proposed the development of multiple housing projects.
The SEC claims that Acharya and Silicon Sage have defrauded about 250 people, primarily from the South Asian community, out of at least $ 119 million, according to documents on file with the U.S. District Court in San Francisco.
For more than a year, a court-appointed receiver, David Stapleton, has been attempting to sell as many properties as possible in a quest to recoup some money for the defrauded investors through proceeds from the sales.
In some instances, however, the receiver has been forced to allow lenders on the properties to seize the sites through foreclosure.
Two of the properties are in San Jose and one is in Fremont, according to court papers:
– 2101 Alum Rock Ave. in east San Jose has been seized by its lender. The Alum Rock site is the location of a proposed development that was expected to consist of 796 residential units, along with shops and restaurants.
– Little Portugal Gateway, located near North 34th Street and Alum Rock Avenue, has been taken back through a foreclosure deed, according to documents filed on June 16 with the Santa Clara County Recorder’s Office. The unpaid debt was $ 2.42 million, the county records show.
– Properties in Fremont’s Centerville District are headed towards foreclosure. The receiver stated in court papers that he will step back and allow the lender to regain ownership of the sites through a foreclosure. The properties are at 37358 through 37494 Fremont Blvd., 3804 through 3780 Peralta Blvd., and 37417 Jason Way.