Wednesday, March 18, 2015

Bank forecloses on Wallace-Bajjali's Waco development

When Joplin City Councilman Mike Woolston and CART officials toured Wallace-Bajjali projects in Waco, Texas, in 2012, they were sufficiently impressed to recommend to the City Council that it offer the newly-created master developer position to the Sugar Land, Texas company.

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.


Anonymous said...

And at that time CART members included CJ Huff, Nancy Good, and Anne Sharp.

Anonymous said...

This post makes it seem like defaulting on a loan and filing bankruptcy is a bad thing.

Wouldn't we all be happier if we pretended nothing is wrong?


Anonymous said...

And today another investor has filed a lawsuit in Harris County accusing them of fraud and ponzi scheme. Appears investor lost 2 to 3 million dollars in the ponzi scheme,.... The two bankruptcys WB filed on 3/2/2015 listed investors/creditors that none of Houston Investors had never heard of. Those two pinheads are up to 12 legal battles so far...... Some lawsuits are in limbo because they don't answer the door at home. I hope they go to prison.

Anonymous said...

If they weren't paying taxes, then what did they do to the rental income and the real estate transaction fees that were coming in? Two total inept feckless thugs. Oh wait, Wallace needed an $88,000 pool! Pigs.

Anonymous said...

You will all be eating your words when these outstanding entrepreneurs are totally exonerated based on the expert testimony of the unimpeachable Mr, Anson Burlingame.

Send all your apology letters to C.A.R.T. c/o The Joplin Globe. Donations for legal fees can be sent directly to Bright Futures USA.

Really, we should all be ashamed of ourselves for questioning our betters. Now stop all this silly.posting and let's elect Sharpe, Goode, and Campbelle.

Anonymous said...

Anonymous said...

Oh 6:11 you are nuts or you were dropped on your head as a child. our schools are all but ruined, give it another 2 years and it will be over. As for the town, shameful.