Sale efforts push ahead at fraud-tied Fremont, San Jose housing sites

FREMONT — Foreclosure sales are now underway for Bay Area condominium units linked to a massive real estate fraud case — but it’s unclear how much of the proceeds will be used to pay defrauded investors.

Condo sales have begun for units in a Fremont apartment complex developed by Silicon Sage Builders and its CEO, Sanjeev Acharya, federal court documents show. Separately, condo sales are expected to begin soon at a San Jose residential project also developed by Acharya.

The Securities and Exchange Commission accused Acharya and Silicon Sage of defrauding and defrauding hundreds of investors. Silicon Sage’s properties were taken into receivership in a court order.

The receiver tried to get the Fremont and San Jose projects completed so the units could be sold as a way to help the investors recoup at least some of their losses.

The Almaden, a 91-unit project of apartments for sale at 1821 Almaden Road in San Jose, concept. (Silicon Sage Builders)

Sales of several apartments in a 93-unit residential complex with addresses of 42111 and 42183 Osgood Road in Fremont have been finalized, according to court documents.

“Sales have begun to close, with 12 units sold so far,” the receiver said in the court documents. “Six more are scheduled to close this week or shortly thereafter.”

Proceeds from these deals are expected to raise a combined $12.2 million, according to the legal filing.

Efforts continue to complete a project at 1821 Almaden Road in San Jose, a 91-unit residential development.

“Almaden owns a condominium project in San Jose that is still under construction, although it is nearing completion,” the court-appointed receiver said in the legal documents.

One of the major hurdles to clearing for the San Jose complex: the project requires approval from the state Department of Real Estate and PG&E must provide electricity to the property.

“Almaden continues to make significant construction progress,” the receiver said in the court documents. “As of the date of this report, all level five and four units have been completed and finishing work has commenced on levels three, two and one. Domestic water and gas are now fixed in the building. The exterior of the project is now 90% closed.”

In 2020, the SEC filed a complaint whose allegations put Acharya and Silicon Sage at the center of a wide-ranging scheme to defraud hundreds of investors, many of South Asian descent.

“Since August 24, 2016, Silicon Sage Builders raised approximately $119.2 million from approximately 250 investors through an ongoing series of misrepresentations and omissions and other fraudulent conduct,” the SEC said in the filing.