Summarized from the article in the local San Felipe internet newspaper Crisoldesanfelipe:
Pat Butler and Jesús Olmos, executives of Rancho El Dorado, along with their lawyer, Cuauhtémoc Sandoval, have been charged with criminal fraud in relation to a legal conflict regarding the property known as Playa Blanca. Apparently there is a court ruling that an Aarón Sañudo and Marcos García are the proper owners of Playa Blanca.
Rancho El Dorado is accused of supposedly purchasing the Playa Blanca property using the legal description and plans of a similar property in Ensenada.
On March 22, 2011, Aarón Sañudo and Marcos García tried to enter their property at Playa Blanca and were stopped by people associated with Pat Butler, and as a result the municipal police were called.
The editor of crisoldesanfelipe also has a video editorial on this whole land mess in San Felipe that is over 12 minutes long. It is titled “Gringo vs. Gringo.” He basically says the lion’s share of the real estate problems in San Felipe are from gringos committing fraud and bribing corrupt politicians. While he does say that corrupt Mexican politicians are also involved, he goes on to say that “gringo-on-gringo” fraud and swindling is the major reason for the poor view people have of San Felipe.