SAN JOSE — A bank loan default has rattled a San Jose venture proposed by bankrupt developer Sanjeev Acharya and his company Silicon Sage Builders, producing much more fiscal challenges for Acharya, who is the aim of securities fraud allegations.

A loan company has submitted a detect that a delinquent loan could trigger a foreclosures of Silicon Sage Builder properties at 2149 Alum Rock Ave. in east San Jose, in accordance to files filed with Santa Clara County officials.

Acharya and Silicon Sage Builders have fashioned a Bay Area genuine estate empire that appears to have crumbled beneath the force of various complications. The troubles incorporate large-ranging fraud allegations lodged by the Securities and Exchange, Acharya’s Chapter 11 bankruptcy filing, and an array of bank loan defaults for a growing range of the company’s homes.

In 1 of the latest difficulties, a loan provider promises that an affiliate controlled by Acharya and Silicon Sage Builders has defaulted on a mortgage totaling $5.98 million, general public information filed on Feb. 24 exhibit.

The house experiencing foreclosures proceedings is portion of a web page the place Silicon Sage Builders experienced proposed the growth of 796 houses and 30,000 sq. ft of retail and restaurant room in a huge blended-use development at and in close proximity to 2101 Alum Rock Ave. in San Jose.

As component of the SEC fraud situation, submitted in U.S. District Courtroom in San Francisco, federal choose Susan Ilston has approved a receiver to seize management of the homes and functions of Acharya and his Silicon Sage Builders organization.

An approximated 250 persons who compensated about $119 million to invest in initiatives released by Acharya and Silicon Sage Builders encounter the prospect that they ended up defrauded by a financial net woven by the serious estate developer, in accordance to the SEC’s complaint.

In January, Acharya filed for personal bankruptcy in an attempt to reorganize his funds.

Amid the notable money owed listed in the bankruptcy filing:

— $45 million for a development loan linked to a house at 42183 Osgood Street in Fremont. New York state-primarily based Acres Cash, through an affiliate, was outlined as the loan company.

— $40.7 million for a development loan related to a assets at 1821 to 1873 Almaden Highway in San Jose. Acres Cash furnished the financing.

— $39.6 million for a design loan associated with a web page on Balbach Avenue in downtown San Jose.  Silicon Sage Builders has created and done a residential advanced at 180 Balbach named Aura. Chicago-centered Primary Finance Companions was listed as the service provider of the financial loan.

— $13.9 million for a land mortgage at 37358 to 37482 Fremont Blvd. in the Centerville spot of Fremont. Beverly Hills-primarily based Bolour Associates is stated as the financial institution.

— $8.3 million for a land personal loan at 41965, 41911 & 42021 Osgood Highway in Fremont. Bolour Associates delivered the personal loan.

— $7.9 million for a construction personal loan and land loan for a web-site at 1313 Franklin St. in Santa Clara. Bolour Associates is outlined as the lender.

— $5.98 million for a land financial loan at 2101 to 2149 Alum Rock Ave. in San Jose. Los Angeles-centered Parkview Financial is shown as the loan provider.

— $4.9 million for a land bank loan at 510 to 528 S. Mathilda Ave. in Sunnyvale. Bolour Associates is the financial institution.

— $3.6 million for a land bank loan at 1368 El Camino Serious in Santa Clara. On Jan. 11, lenders began foreclosure proceedings to seize the assets as a result of a  notice of default filing for a $3.5 million bank loan that’s delinquent. The mortgage relates to the office environment and retail section of the home, which has been designed and is known as Madison Park.

— $2.9 million for a creating personal loan at 560 S. Mathilda Ave. in Sunnyvale. Acharya’s key business, Silicon Sage, maintains its headquarters at this locale.

— $1.8 million for a land financial loan at 1661, 1663, and 1665 Alum Rock Ave. in San Jose.

Parkview Economic REIT, the lender for 2149 Alum Rock in San Jose, stated that the borrower defaulted on a personal loan issued in September 2020.

The September time body would appear to be of interest due to the fact Acharya obtained that financial loan right after he experienced now admitted to investors that had built faults more than the decades in how he had taken care of his true estate empire. In conferences with investors all over August 2020, Acharya appeared to accept that he had built some mistakes more than the yrs, according to paperwork submitted by the SEC.