The city has learned that when you give master developer Wallace-Bajjali Development Partners a deadline, you can expect it to be extended time after time.
The same thing is likely to happen to a group of scammed investors who are waiting for Wallace-Bajjali to make $450,000 in court-ordered payments.
The deadline is December 31, four weeks and one day from now.
Of course, that is just the latest deadline as the investors wait for money that they are beginning to think will never come- especially since the court's original deadline date was also December 31, but that was two years ago.
The settlement was reached as part of an agreement between Wallace-Bajjali and the Securities and Exchange Commission. The $450,000 was to go to investors who were bilked by what has been referred to in lawsuits filed in Texas state courts as a Ponzi scheme.
The settlement involved $60,000 fines for both David Wallace and Costa Bajjali and the repayment of the $450,000, which was initially due on December 31, 2012, with an incentive to cut the amount to $300,000 if it were paid ahead of time.
That didn't happen. Documents filed in U. S. District Court for the Northern District of Texas indicate that not one penny has been paid and in a status report filed in July by the court-appointed receiver who is handling the case, Thomas Taylor, it does not sound like he is expecting Wallace-Bajjali to meet the December 31, 2014, either.
Wallace-Bajjali's Joplin work is not mentioned in the project, but an earlier update from David Wallace said there would be no money coming from Joplin to pay the obligation because the initial proceeds have to be put back into Joplin.
Taylor's report indicates Wallace-Bajjali is not having any better luck with its other high profile project in Amarillo, Texas.
In regard to the Cash Flow Note, the Receiver has received from the Wallace Bajjali parties the financial information regarding the Amarillo development project as required under the terms of the settlement. No “Dedicated Cash Flow” has been received by Wallace Bajjali Development Partners, L.P. (“WB Dev. Partners”) from the Amarillo development project to date, and therefore no payments have been made on the Cash Flow Note. WB Dev. Partners is obligated to pay a portion of the “Dedicated Cash Flow” it receives from the Amarillo development project to the Receivership Estate until the Cash Flow Note is paid in full.
Wallace-Bajjali's money problems have extended to its Towne Center project, as Joplin City Council members learned recently. The firm says it needs another $4 million for the project, which would develop 20th and Connecticut with a theater, offices, and retail businesses.
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