When former City Manager Mark Rohr did his "thorough" investigation of Wallace-Bajjali he noted some lawsuits and bankruptcies, but nothing that caused him to be overly concerned. After all, Rohr indicated lawsuits and bankruptcies are what all developers do.
Not even SEC violations, which included $60,000 fines for David Wallace and Costa Bajjali, and an order that they repay $1.2 million to investors, an amount the investors say is only about 10 percent of the money they lost in the BizRadio scheme, caused Rohr, Woolston, CART, and the Joplin City Council to think twice about entering into an agreement with the Texas firm.
Now Wallace and Bajjali have slithered out of Joplin, closed down their Sugar Land offices, and are facing legal actions in numerous state and federal courts.
And even Wallace-Bajjali's Waco development, the one that so impressed Woolston and CART, but was plagued with lawsuits and bankruptcies, is back in the news again.
An article in today's Waco Tribune reveals that Community Bank and Trust foreclosed on Wallace-Bajjali's Waco apartment and retail center:
Located on 1.5 acres at Franklin Avenue and South Fourth Street, the two-story condominium project is home to living units, a Jimmy John’s sandwich shop, a branch of American Bank and a new restaurant yet to open called Coach’s Smoke, where the owners are creating a rustic exterior with wooden touches and metal awnings.
An entity called 330 Downtown Waco LLC, acting on behalf of Community Bank, recently acquired the property for the bank at an auction on the steps of the McLennan County Courthouse with a bid of $3.6 million.
The borrower, Waco Town Square Partners, defaulted on a loan by Community Bank to build the complex. The bank declined to state the amount of the original loan or how much was left on the note.
Waco Town Square Partners is a Wallace-Bajjali-owned company and filed for bankruptcy in October 2011, at a time when Wallace was already in Joplin wooing CART and Joplin city officials.