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California city los angeles

Information about California City Los Angeles

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By the 1970s over 50,000 lots had been sold and the market dried up. The FTC filed a cease and desist against the company for misleading advertising, with a consent order coming in 1972 from FTC's Richard Lavine. Charges (which White effectively agreed with in 1971 ) included the real estate school was primarily geared towards selling land, not providing training; enrollees were required to bring in land prospects; the property was encumbered, not fee simple, advertised improvements (e. g. roads) did not exist; it failed to meet the Truth in Lending Act. In 1974 The New York Times described Great Western City Corporation as "the troubled land development subsidiary" of Great Western United. After taking CCDC to court, the Federal Trade Commission's Ken Donney reached a settlement in 1977, with over 14,000 landowners receiving partial refunds from a $4 million pool, the largest FTC settlement to date. CCDC was also required to invest $16 million in long-promised infrastructure developments at CCDC's three cities.