Mark Rohr: Loraine report was filled with "gossip, innuendo, and baldfaced lies"

Fired City Manager Mark Rohr told the Joplin City Council and those attending the city council meeting or watching it on television that his firing was a conspiracy.

Rohr referred to the five City Council members who fired him Feb. 4 as "corrupt" and "evil."

Rohr criticized the report that was compiled by Osage Beach private investigator Tom Loraine as being filled with "gossip, innuendo, and baldfaced lies."

When Rohr completed his presentation, about half of the audience began applauding and within seconds were giving Rohr a standing ovation.

The former city manager said the presentation he was giving did not center on the Loraine investigation as much he had originally intended. That was likely a reference to Rohr's new status as incoming city manager at League City, Texas. Prior to that, it was expected that Rohr was going to mount a battle to regain his job in Joplin.

What else he could have added to his comments on the Loraine investigation is unclear. While Rohr dismissed the quality of the report, he offered no specifics as to what he found wrong with it. Though the council, by an 8-1 vote, allowed Rohr to exceed the normal five minute time limit for speakers, Rohr did not go into detail.

He began his presentation with a listing of accomplishments that had taken place during the decade he was Joplin's city manager, including downtown redevelopment, the financial stability of the city, a reduction of violent crime, the neighborhood improvement program, construction of a water park, the city's overall appearance, landing a minor league baseball team and, of course, the work that has been done since the May 22, 2011, tornado and the "city of Joplin has established a national, even worldwide reputation for getting things done."

Rohr recalled the speech he made one week after the tornado at Cunningham Park when he said, the best way to honor the 161 who lost their lives was to channel energy into the rebuilding of Joplin. "bigger and better than it was before the storm."

Rohr's voice began to halt as he recalled the promise he had made during that May 29, 2011, speech. "I gave my word to Joplin citizens that I would be totally committed to that task. That is what we have done until that process was interrupted on February 4."

Mark Rohr to supporters: You need to take your town back

Mark Rohr, fired earlier this week as Joplin city manager posted the following message today on his Facebook page:

I want to thank the citizens, friends, and family from all over for the incredible outpouring of calls, texts, Facebook messages and notes I have received since Tuesday night. I have a deep and abiding respect for the citizens of this town. You have given me more than I could give to you.

 Irrespective of me, you need to take your town back and make sure everyone that represents you has no other agenda other than the advancement of your city. You deserve no less!

What the Joplin Globe hasn't told you about Wallace-Bajjali, Part Two

Judging from what has been written about the city of Joplin's master developer, Wallace-Bajjali, in the Joplin Globe, it would appear that the newspaper's primary source of information was fired City Manager Mark Rohr. The following was originally printed in the November 28, 2013, Turner Report, based on a post I had written earlier in 2013.

With the millions of dollars that Joplin taxpayers will end up investing in the firm of master developer Wallace-Bajjali, you might think the area's newspaper of record, the Joplin Globe, would have conducted an investigation into the background of the Texas company. Except for about one paragraph ( a quote from City Manager Mark Rohr saying any problems weren't really problems), the Globe has continued to play cheerleader instead of looking after the public interest.

In part one, I wrote about two bankruptcies and an SEC investigation involving Wallace-Bajjali. The problems noted by the SEC are the same ones that brought a lawsuit against Wallace-Bajjali earlier this year accusing partners David Wallace and Costa Bajjali of conducting a $3 million Ponzi scheme.

I wrote about this August 15 in Inside Joplin and the Turner Report.

Investors in two funds connected to Joplin’s master developer Wallace-Bajjali claim in a lawsuit filed this week in Harris County, Texas, District Court that firm owners David Wallace and Costa Bajjali were involved in a $3 million Ponzi scheme.

Wallace told the Amarillo Globe-News , We consider the lawsuit very frivolous. We consider it to be without merit and we are going to defend it vigorously.” 

The scheme  resulted in an SEC investigation, which ended with Wallace and Bajalli agreeing to pay $60,000 fines. Each man made his last payment three days before the city of Joplin hired the firm to conduct the $800 million development of Joplin’s tornado-stricken area.

In its complaint, which was filed May 20, 2011, the SEC alleged that between November 2006 and December 2008, Wallace and Bajjali “offered and sold securities in two real estate funds they controlled in Houston, Texas, called the Wallace Bajjali Investment Fund II, L. P. and the Laffer Frishberg Wallace Economic Opportunity Fund, L. P.

In written disclosures relating to the securities offerings, Wallace and Bajjali told investors they would limit the Funds’ investment in any one business or project to certain percentages of the money the Funds raised- no more than 33 percent for the Wallace-Bajjali Fund and no more than 20 percent for the Opportunity Fund.

“Contrary to their written representation, Wallace and Bajjali far exceeded these limits by heavily investing the Funds’ money in Business Radio Networks, L.P, doing business as BizRadio, a struggling media company. As a result, they subjected the Funds’ investors to substantially greater investment risk than the Funds’ written materials disclosed.”

The statement of facts filed by SEC says that by May 2007 the Wallace-Bajjali Fund had received more than $16 million and had invested more than $6.5 million in BizRadio. The ratio was even higher with the Opportunity Fund, where $7 million was raised and $4 million went to BizRadio, far more than the 20 percent limit. Court documents indicate Wallace and Bajjali entered into an agreement with a company called Investment Adviser in Houston to handle the securities funds. It would appear that the two are casting the blame on that company for violating SEC regulations.

Investigator's report rips Joplin Globe's investigation into Councilman Scearce

Joplin Globe Editor Carol Stark's efforts to help City Manager Mark Rohr came in for criticism in the investigative report issued Tuesday night by Osage Beach attorney Tom Loraine.

Rohr reportedly went to Mrs. Stark with information about an FBI investigation into Councilman Bill Scearce involving former tenants of his who were involved in a gambling operation. Rohr's discussions with Mrs. Stark took place after a failed attempt to fire Rohr last summer.

Tabbing Scearce as the ringleader of those who wanted to get rid of him, Rohr gave Mrs. Stark the information and she dutifully had reporters write about the situation as if it were the second coming of Watergate.

Why that story was important and how she came to plaster it on the Globe's front pages for several days is not included in the report...because Mrs. Stark refused to allow Loraine to interview her.

"The editor of the Joplin Globe has refused to make a statement concerning knowledge she purportedly had about Mr. Scearce acting with any gambling activities."

She was not the only one who would not cooperate with Loraine, according to the report.

"Similarly, people that had inside information about the FBI questioning of Mr. Scearce, to wit: Police Chief Lane Roberts and former City Joplin Policeman James Altic, who is now chief of City of Seneca, have refused to give any details of an alleged FBI report that led to an indictment and conviction f Joplin "bookmaker" Lovett.

"When offered to reveal facts that would support wrongdoing by Mr. Scearce, both Lane Roberts and James Altic refused. Roberts allegedly swore secrecy required by the FBI. Any continuing investigation against Councilman Scearce was clearly disavowed by the General Counsel of FBI K. C. division.

"When I asked Mr. Scearce to request the original 302 report of his questioning about Mr. Lovett, Scearce agreed to request any record. He has done so in writing through Mr. Genisio (his lawyer) inquiring to the FBI.

"After consulting with the FBI General Counsel, I find no credibility in a theory of a continuing investigation of Mr. Scearce. If the Council of Joplin wishes to force Lane Roberts to testify or face discharge (note: this was before Roberts' recent retirement announcement), I will pursue this matter. In light of the statement of FBI General Counsel and the passage of time without indictment, I believe Bill Scearce to be innocent of participating in gambling activities with Mr. Lovett.:

At that point, Loraine took a shot at the Globe coverage:

"I also do not find any ethical violations have occurred in subsequent newspaper developments on this 'non-story.' "

Loraine said that if these kinds of accusations against Scearce continue, it could "invite a defamation lawsuit. I can find no evidence that Mr. Scearce has committed crime or an ethical violation of his official duties as a city member.

"When the 302 FBI report arrives, I believe there will be no continuing investigations of Mr. Scearce."