The case revolves around a company called Flannery Associates, which is the entity that bought a plot of land worth up to $800 million near Travis Air Force Base in Solano County, northeast of San Francisco, California.
Public records show Flannery Associates began snapping up land to become the largest landowner near the base in 2018.
The Daily Mail reports that Flannery Associates is suing local farming families for $510 million, accusing them of “acting in contempt of federal and California law” by inflating the value of the land they sold.
In the complaint, Flannery Associates claims it has evidence (including text messages and emails between the sellers) revealing that the sellers colluded to sell farmland at prices well above market value.
Travis Air Force Base in California. Photo: Daily Mail
Rep. John Garamendi, the ranking Democrat on the House Armed Services Committee, told NewsNation he has spoken to families who sold land to Flannery Associates.
The men said they did not want to sell the land to Flannery in the first place. John Garamendi said there was nothing that forced Flannery to accept the price they allege was above market value.
Nearly all of the land Flannery Associates purchased is located in unincorporated areas of Solano County, much of it zoned for agricultural use, according to records obtained by the Wall Street Journal from the U.S. Department of Agriculture.
Congressman John Garamendi said the land grab was actually part of a scheme to bankrupt local farmers and questioned whether the land was being bought by a group with ties to China. However, he said there was no direct evidence of a link between Flannery and China.
Previously, a lawyer representing Flannery told the Wall Street Journal that the company's owners are U.S. citizens and that 97 percent of its investment comes from U.S. investors. The remaining 3 percent comes from British and Irish investors.
Flannery Associates says it is a wholly owned subsidiary of Flannery Holdings, a Delaware-registered company. Under Delaware law, limited liability companies registered in Delaware do not have to disclose the identity of their owners.
Also according to the Wall Street Journal, US government officials are investigating large land acquisitions near Travis base by Flannery Associates.
The US Air Force's Office of Foreign Investment Risk Assessment has investigated Flannery Associates' purchase of more than 20,000 acres, including land around Travis Air Force Base.
So far, the investigation has lasted 8 months but has not been able to determine who is backing this group to buy land near Travis Air Force Base.
Travis Air Force Base is a strategically important base that serves as a gateway to the Pacific Ocean. The base provides aircraft to refuel other aircraft, transporting troops, supplies, and ammunition around the world .
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