This blog features observations from Randy Turner, a teacher who can't stop writing and also a former newspaper reporter and editor. Send news items or comments to email@example.com
Saturday, March 31, 2012
Proposed Joplin master developer company to pay back $1.2 million to investors
Earlier today, the Turner Report noted that David Wallace, CEO of Wallace Bajjali, the Texas firm recommended by the city of Joplin's Citizens Advisory Recovery Team to become the city's master developer in its tornado recovery, had made his final payment of a $60,000 fine for an SEC fraud violation.
The settlement approved Tuesday by U.S. District Judge Nancy F. Atlas ends claims that receiver Thomas L. Taylor asserted against Wallace Bajjali Development Partners entities in relation to an SEC investigation of Albert Fase Kaleta, Kaleta Capital Management, Daniel Frishberg Financial Services and BusinessRadio Network, Taylor said.
The settlement sets Dec. 31 as the final deadline for three Wallace Bajjali real estate investment limited partnerships to repay $879,176 in loans they got from Kaleta Capital Management, plus interest.
Under the agreement, Wallace Bajjali Development Partners also said it will pay an additional $350,000 to $400,000, with interest, from the firm’s private earnings from an Amarillo downtown revitalization project.
The SEC sued Kaleta, Frishberg and their businesses in 2009. The SEC appointed Taylor to trace money investors sank into Kaleta and Frishberg’s network of affiliated companies that allegedly commingled and misappropriated investors’ money, according to court documents in the ongoing SEC case and a related bankruptcy case.
Much of the investment capital allegedly misdirected by Kaleta and Frishberg went into the radio network, dubbed BizRadio, which “broadcast programming designed to attract clients” to a Frishberg financial services company and a Frishberg and Kaleta investment advisory business, according to a Feb. 11 status report in the bankruptcy case.
The SEC investigation extended to David Wallace and partner Costa Bajjali, who in May agreed to each pay about $60,000 in fines for exposing investors in struggling BizRadio to excessive risk, a situation Wallace blamed on the media company.