In the response, filed February 20 in U. S. District Court for the Southern District of Texas, Bajjali said he "generally denies each and every allegation" in the lawsuit.
The pattern followed that established three days earlier by his former partner in Wallace-Bajjali Development Partners, David Wallace, who also denied everything and also acted as his own attorney.
Taylor claims that Wallace and Bajjali failed to pay the $1.2 million the Securities and Exchange Commission ordered him to repay to the investors who were cheated in the BizRadio scheme.
The entire $1.2 million was supposed to be repaid by December 31, 2012, but Wallace kept pushing the deadline back, all the way to December 31, 2014, by feeding court-appointed receiver Thomas Taylor III a series of stories about the money Wallace-Bajjali was going to make on its projects in Joplin and Amarillo and the millions the firm would make when it went public.
When the December 31 deadline passed, Taylor sent letters to Wallace and Bajjali January 5 letting them know that the game was over and action was going to be taken against them and they had only 10 business days to repay the debt in full.
By the end of those 10 days, Wallace and Bajjali had both resigned from all of the companies that owed the money, in what appears to be an effort to avoid paying what they owe.
The following letter was sent to both Wallace and Bajjali:
Reference is made to certain replacement promissory notes payable to the order of Thomas L. Taylor III, as Receiver for Kaleta Capital Management, LP, a Texas Limited Partnership as detailed below:
- Replacement Promissory Note dated as of May 6, 2006:
-Laffer Frishberg Wallace Economic Opportunity Fund, L.P. in the amount of $25,000.00 plus accrued interest to date hereof in the amount of $6,743.15;
-Replacement Promissory Note dated as of August 12, 2008: Laffer Frishberg Wallace Economic Opportunity Fund, L.P. in the amount of $250,000.00 plus accrued interest to date hereof in the amount of $119,383.56;
-Replacement Senior Secured Promissory Note dated as of March 26, 2009: West Houston WB Realty Fund, LP in the amount of $360,176.35 plus accrued interest to date hereof in the amount of $101,599.33;
-Replacement Promissory Note dated as of April 7, 2009: West Houston WB Realty Fund, LP in the amount of $20,000.00 plus accrued interest to date hereof in the amount of $7,769.32;
-Replacement Senior Secured Promissory Note dated as of March 30, 2009 in the amount of $215,000 plus accrued interest to date hereof in the amount of $60,388.49.
Copies of the above-referenced Promissory Notes are enclosed.
Pursuant to the terms of the referenced notes, each was due and payable on December 31, 2014. Demand for payment in full of the principal and accrued interest was made on January 5, 2014. The Makers of the Notes have failed to make payment and are now in default. On November, 26, 2013, you executed a Guaranty as to each of the above-referenced notes. A copy of each Guaranty is enclosed. Pursuant to the terms of the Guarantys executed by you related to each of the referenced notes, demand is hereby made for payment in full of the principal amount plus accrued interest, due within ten business days of the date of this demand.
When Taylor received no response, he filed the legal action against Wallace and Bajjali.
Seems a little late for denial now since both already agreed to a no contest plea and committed to repay the investors. I would assume that a future part of these proceedings will involve each partner blaming the other for the wrongdoing to string this thing out for who knows how long. Also, these claims from members of the Joplin re-development corporation that they all were right on top of all this, and that all the land that they now own is all paid for is just as big a scam as Wallace. Even the Globe spelled out the millions owed to pay off bonds which is why they can't repay the schools. Even with the TIF now dormant, it will be 8 years before the bonds are covered. That doesn't sound like all this land is free and clear to me.
ReplyDeleteI don not find your account to be clear.
ReplyDeleteAren't there three entities here, the people Wallace and Bajalli, who I seem to remember each personally paid a sum, and the particular firm of their's that is supposed to pay the 1.2 million remaining? Unless they looted that firm (I know, stop laughing), it is or soon will be in a very messy Chapter 7 liquidation bankruptcy, where the judge will determine who gets what of what's left. And very possibly go after the two if they looted the company.
If I'm not right, on what basis is the receiver Thomas Taylor suing them personally?
I am sure they left the country and everyone will get 0
ReplyDeleteNo wonder they and Cj were so chummy. Birds of a feather flock together.
ReplyDeleteformer Joplin master developer Costa Bajjali denied all allegations against him in the lawsuit filed by court-appointed receiver Thomas Taylor.
ReplyDeleteIt's all rainbows, and sunshine, and unicorn farts at R-8 too if we are understanding Dear Leader correctly.
Bad boys, bad boys, whatcha gonna do
ReplyDeleteWhatch gonna do when they come for you...
Wallace and Bajjali agreed to the personal guarantees from the very beginng. This was a deal the two crooks agreed to with the receiver. Now all of a sudden they both deny it all. Seems they used the exact same document. Wonder who borrowed it from who. No judge will let them off hook. I am heading Wallace is interested in grabbing a few properties in the portfolio. Don't know if he will file bankruptcy, then create a new company where he can be a buyer of the very properties he threw in bankruptcy. Loser.
ReplyDelete