Saturday, March 14, 2015
Cheated investors take legal action saying Wallace-Bajjali owed them $11 million plus
Even as a hearing is scheduled for March 24 in federal court for an update on the situation, the investors are renewing an action in Harris County District Court, asking the court to intervene to prevent Wallace-Bajjali's assets from being lost.
In a motion filed Wednesday in Harris County District Court, 51 investors are asking the judge to appoint a temporary receiver on an emergency basis, noting that both David Wallace and Costa Bajjali have resigned from the company, all of its offices are locked up, with no one paying rent and items such as computers and files might be removed if action is not taken.
The motion notes that the investors are owed $11,465,687.50 from Wallace and Bajjali, who the investors say talked them into investing in a low-risk real estate venture and then invested most of the money in a failing media business called BizRadio.
The investors' lawsuit was filed June 26, 2014.
The action was similar to other to this point unsuccessful legal actions taken by the investors since the SEC reached an agreement with Wallace and Costa Bajjali in 2012 that resulted in $60,000 fines for each man and required them to repay $1.2 million to investors. Wallace and Bajjali paid the $60,000 fines, but to this date have not paid one penny to the investors.