Monday, August 24, 2015
Bankruptcy court lawsuit: David Wallace made $1 million during 2014
In testimony given by Wallace himself during a May 5 meeting with creditors in his Chapter 7 bankruptcy proceedings, he admitted under oath that "during calendar year 2014 from salary, commissions, conversions of loans, and other forms of borrowing and/or compensation, Wallace had received approximately $1 million."
The revelation, as well as other accusations against Wallace is included in a lawsuit filed Friday in U. S. Bankruptcy Court for the Southern Division of Texas by two creditors, Wayne M. English and James D. Colling.
The lawsuit asks the judge not to reward Wallace for debts incurred through "false pretenses, false representations or by means of actual fraud."
Among the items cited in the petition:
-Wallace's failure to repay the money owed to investors in the Biz-Radio scheme
-Wallace-Bajjali received a "six-figure payment" from the Amarillo project in 2012
-Wallace-Bajjali received $1.68 million from the City of Joplin
-In Wallace's statement of financial affairs filed in bankruptcy court, Wallace said he had received $566,403.59 in salary, bonuses, dividends, settlement funds, and deferred compensation.
The petition notes that Wallace failed to make even one payment to the investors, which brought a lawsuit from the court-appointed receiver for the BizRadio settlement.