Realtors PAC pours $10,000 into Woolston's Joplin City Council campaign

Big money continues to come into Joplin city and school races like never before.

A few moments ago, the Re-Elect Woolston the Tornado Mayor Committee filed a 48-hour report indicating that it had received a $10,000 contribution from the Missouri Association of Realtors PAC.

The Re-Elect Woolston the Tornado Mayor Committee filed its organization papers with the Missouri Ethics Commission Friday, listing James D. Hardy, Joplin, as treasurer, and Woolston as deputy treasurer.

Woolston is one of six candidates running for three at-large council seats. Other candidates are Harvey Hutchinson, Miranda Lewis, Trisha Raney, Ryan Stanley, and Jim West.

The Joplin Globe and the coverage of the Mark Rohr investigation

The firing of Mark Rohr remains the big story on page one of the Joplin Globe on most days, but the Globe seems to be missing the story.

At the top of page one of Thursday's edition, the headline reads "Letter cites advice on firing." The story's lead- "It was special investigator Tom Loraine who advised Joplin officials in the firing of Mark Rohr without cause, a letter written by Loraine shows."

While the headline and lead are accurate, it is once again a case of the newspaper burying the lead and perhaps pushing its own agenda.

The cost of the investigation, which has been the subject of much coverage, comes directly as a result of something serious Tom Loraine discovered about Mark Rohr, something which was more worrisome even than the apparent conflict of interest of City Councilman Mike Woolston or the completely blown out of proportion accusations against Councilman Bill Scearce.

In fact, that is spelled out clearly in reporter Debby Woodin's story:

Loraine, in the Feb. 20 letter, said that as he took depositions in the probe that was to primarily focus on ethical questions regarding Councilmen Bill Scearce and Mike Woolston and an ote from Rohr's desk, "Mr. Rohr's conduct loomed larger than those issues originally outlined concerning Messrs. Scearce and Woolston."

Loraine's contention that Rohr's problems, whatever they were, were far more serious than those alleged against Scearce and Woolston is buried on the page 10A jump, in the eighth paragraph of the story.

That is what is called burying the lead.

The Globe has steered away from whatever it may be that served as a cause for Rohr's firing and instead concentrated on the 10 missing pages and its own "heroic" efforts to make those 10 pages public.

While I, too, think that the pages should be made public and that they will eventually become public, the Globe has spent little time looking into the important revelations that were included in the open session of the report.

Loraine believed the city should dump master developer Wallace-Bajjali. And there is certainly enough in that firm's history, which those read the Turner Report or who have done their own research know, while those who rely on the area's newspaper of record have not heard a thing about it. The firm has been riddled with bankruptcies, been investigated and fined by the SEC, had tor return $1.2 million to investigators, and have been accused in lawsuits of fraud and operating a Ponzi scheme.

Not one word of most of that has ever been in the Joplin Globe.

Woolston's actions were also questionable to say the least. After the Joplin Tornado, public officials should have known better than to get involved in anything involving real estate in the affected area.

Those findings have been almost completely ignored because of the Globe's fixation on Rohr and what appears to be an obvious effort to discredit Tom Loraine.

It also appears to be an obvious effort to affect the outcome of the April 8 election.

Complete video- Mark Rohr's farewell speech, Joplin City Council meeting

Complete video- Joplin City Councilman Mike Woolston's press conference

From the Joplin Regional Business Journal

Woolston: I want to make the entire report public

During a news conference this morning, Councilman Mike Woolston said he had filed a Sunshine Law request for the complete ethics report compiled by Osage Beach attorney Tom Loraine.

If he gets it, Woolston said, "I intend to make the report public."

Woolston, a former Joplin mayor, said he feared "the credibility of the City Council has suffered. It is essential that the credibility of the City Council be restored." Woolston said his request also asks for transcribed copies of all witness interviews.

"I also have concerns related to the termination of our city manager. Ultimately, I hope the people will be told why Mr. (Mark) Rohr was terminated."

Woolston said he did not want Rohr's firing to be the focal point of the city for the next several months, at a time when recovery from the May 22, 2011, tornado is ongoing.

The original scope of the Loraine investigation was supposed to be concerns about the ethics of Woolston and fellow councilman Bill Scearce. The report suggested that Woolston should refrain from involvement in real estate concerns or resign from the council.

The investigation morphed into the dismissal of Rohr.

"I am not happy with the result or the quality of the investigation," Woolston said.

Video- Debate emerges over Joplin City Council investigation bill

KOAM TV 7

Woolston: I'm a supporter of Mark Rohr, but we have to focus on tornado recovery

During an interview with KZRG a few moments ago, Joplin City Councilman Mike Woolston said that even though he is a supporter of fired City Manager Mark Rohr, there is a danger in everything centering around Rohr's dismissal.

"Were're going to be so focused on the termination of the city manager that we'll lose sight of the big issue, which is tornado recovery."

Woolston said that could cause the city to lose the momentum it has had since the May 22, 2011, tornado.

The interview also featured Woolston, who is a candidate for re-election, explaining what he thought was wrong with the report issued by Osage Beach lawyer Tom Loraine, which accused Woolston of ethical improprieties in connection with the sale of land in the tornado-stricken area of the city.

"As more and more people read the report, they'll see I've not done anything wrong," Woolston said.

Joplin Globe Sunday edition to examine investigation that cost Mark Rohr his job

The area's newspaper of record is at it again.

Newspaper racks around the city are already advertising the top story in the Sunday Joplin Globe. The topic will be the investigation Osage Beach attorney Tom Loraine did into ethics questions concerning Joplin City Council members William Scearce and Mike Woolston.

As those who haven't been out of the area the last several days know, the report morphed into an investigation of City Manager Mark Rohr and led to his firing by a 5-4 vote.

The Globe will turns its unbiased eyes on the Loraine report Sunday in a report titled "Flawed Investigation."

Am I the only one who thinks the Globe's editor may have selected the headline before her reporters ever started the story?

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

With the emergence this week of the city of Joplin's master developer, the Sugar Land, Texas, firm Wallace-Bajjali as a key player in the ethics problems surrounding Joplin City Councilman Mike Woolston and former City Manager Mark Rohr, I thought it was an opportune time to look back at some of what the Joplin Globe not only neglected to tell its readers, but most likely never ever bothered to investigate.

More and more, it is looking like the Joplin Globe has relied entirely on Mark Rohr for its information on Wallace-Bajjali.

The Turner Report has been looking into Wallace-Bajjali for the past couple of years and on July 9, 2013, I posted the following:

(Note: This is a slightly reworked version of a Turner Report post from November 26, 2012.)

The next three paragraphs are the extent of the Joplin Globe's investigation into the background of a company that eventually will most likely spend more than $1 billion in its large-scale plan to develop the tornado-damaged portion of Joplin.

Wallace Bajjali has been involved in two projects that hit difficulty. Rohr said the firm disclosed details of those problems in its Joplin proposal, and that inquiries by city officials verified the firm’s admissions. Those incidents involve a bankruptcy taken by some its partners in the Amarillo project, and fines paid to the Securities and Exchange Commission for investment fraud committed by two partners in a radio acquisition deal. - March 27, 2012, Joplin Globe

Two previous Wallace Bajjali projects hit snags because of problems involving partners. In one, work was delayed when a partner went bankrupt. In the other, a partner was found to have violated Securities and Exchange Commission rules in a business radio investment, which resulted in Wallace Bajjali paying a fine.

City Manager Mark Rohr previously said the firm’s principals voluntarily disclosed those issues, and a background investigation substantiated the firm’s disclosure. Rohr said he was satisfied that there was no wrongdoing on the part of Wallace Bajjali in those cases.July 2, 2012, Joplin Globe

That's it. The extent of the Joplin Globe's examination of the background of the Wallace Bajjali firm that has been entrusted to handle $794 million in development of the area struck by the May 22, 2011, is printed above.



And though everything that is written in those paragraphs may well be accurate, it certainly would be an excellent idea for the area's newspaper of record to examine Wallace Bajjali's problems with its developments in Waco and Amarillo, Texas.

It did not take me long to come up with this for the March 31, 2012, Turner Report.

As of Friday, David Wallace is free and clear as far as the Securities and Exchange Commission is concerned.

That was the day Wallace, CEO of Wallace Bajjali, the company expected to be hired as master developer for the city of Joplin's tornado recovery efforts Monday by the City Council, made his last payment covering his fine for fraud.

It was Wallace's fourth payment of $15,006.72, covering his $60,000 fine plus interest. His partner, Costa Bajjali, also made his final payment for that amount Friday, according to U. S. District Court for the Southern District of Texas documents.

Both men entered into agreements May 24, 2011, to pay the fines, though neither admitted to any wrongdoing.

Joplin city officials say they are fully aware of the SEC fines and have corroborated Wallace's claim that others were at fault.

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 represented to investors that 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.

Later that day, I followed up with information from the Amarillo Globe-News:

Earlier today, the Turner Report noted that David Wallace, CEO of Wallace Bajjali, the Texas firm recommended by the city of Joplin's Citizens Advisory Recovery Team to become the city's master developer in its tornado recovery, had made his final payment of a $60,000 fine for an SEC fraud violation.

Wallace and his partner, Costa Bazzali, neither admitted nor denied wrongdoing, but their deal also includes paying back approximately $1.2 million to investors.

From the Amarillo Globe-News:

The settlement approved Tuesday by U.S. District Judge Nancy F. Atlas ends claims that receiver Thomas L. Taylor asserted against Wallace Bajjali Development Partners entities in relation to an SEC investigation of Albert Fase Kaleta, Kaleta Capital Management, Daniel Frishberg Financial Services and BusinessRadio Network, Taylor said.

The settlement sets Dec. 31 as the final deadline for three Wallace Bajjali real estate investment limited partnerships to repay $879,176 in loans they got from Kaleta Capital Management, plus interest.

Under the agreement, Wallace Bajjali Development Partners also said it will pay an additional $350,000 to $400,000, with interest, from the firm’s private earnings from an Amarillo downtown revitalization project.

The SEC sued Kaleta, Frishberg and their businesses in 2009. The SEC appointed Taylor to trace money investors sank into Kaleta and Frishberg’s network of affiliated companies that allegedly commingled and misappropriated investors’ money, according to court documents in the ongoing SEC case and a related bankruptcy case.

Much of the investment capital allegedly misdirected by Kaleta and Frishberg went into the radio network, dubbed BizRadio, which “broadcast programming designed to attract clients” to a Frishberg financial services company and a Frishberg and Kaleta investment advisory business, according to a Feb. 11 status report in the bankruptcy case.

The SEC investigation extended to David Wallace and partner Costa Bajjali, who in May agreed to each pay about $60,000 in fines for exposing investors in struggling BizRadio to excessive risk, a situation Wallace blamed on the media company.

It should be noted that the Waco bankruptcy mentioned in my July 6 post was not mentioned in the earlier Joplin Globe coverage.

Video- Council members Scearce, Rosenberg on Rohr firing, Wallace-Bajjali

From KSN

Report: City should stop all business with Wallace-Bajjali

In his statements to the media shortly after he was voted out of office, former Joplin City Manager Mark Rohr attempted to characterize his dismissal as the result of a power struggle and accused city council members of having the motion to fire him drawn up beforehand.

Rohr also attempts to minimize the findings of that report, claiming it was poorly done and was under the guidance of City Attorney Brian Head, who supposedly always had it in for him.

The report by Osage Beach lawyer Tom Loraine paints a totally different picture, reached after interviews of 51 witnesses- one of an attempt to cash in on the tornado that hit the city of Joplin on May 22, 2011.

Among the findings:

-City Councilwoman Mike Woolston bought property from landowners in the tornado-stricken area and also attempted to get others to sell- on land that was going to be developed by Wallace-Bajjali.

-Woolston arranged the purchase of properties through Four States Homes, which were later sold to the Joplin Redevelopment Corporation with Wallace-Bajjali receiving more than $50,000 in finders fees.

-The property purchase system was "largely negotiated" between Mark Rohr and Wallace-Bajjali.

-Some witnesses felt Woolston was "controlling the prices" of property in that area.

-All communication between the city and Wallace-Bajjali went through the city manager's office.

The report indicates that Woolston "entered a working relationship with Charles Kuehn of Four States Properties "within a couple of months" after the tornado. Kuehn refused to answer Loraine's questions.

The methods used by Woolston were described in the report:

Local residents Dana and William Parker deposed regarding Councilman Woolston's actions during the period just prior to a neighborhood meeting held in October 2012, stating, "Most of the people lived- well, where they lived is where the movie theater is going and all that, the library, and they were concerned because Mike Woolston kept knocking on everybody's door wanting to sell their property, even if they'd already rebuilt, sell it so we can tear it down.

According to the Parkers, Mr. Woolston informed them they were "stupid for rebuilding" and when he was asked by the Parkers why a grocery store was not planned for Sunset Ridge, "he told us at that time that those people were too important; we couldn't do that to them.

The Parkers were further informed by Mr. Woolston that a park which had been deeded to the city "needs to come out."

In short, Councilman Woolston appears to have conducted himself as a one man Redevelopment Corporation and one without a clue as to the statutory requirements of a 353 corporation. The Parkers futher deposed that Councilman Woolston spoke to them about acquiring various lots for a party whose name he at first would not reveal, but eventually told them the party was Four State Homes, which he highly endorsed as follows, "You know they build good stuff."

Thus, according to the Parkers, Mr. Woolston was acting an agent for Mr. Kuehn, who was acting as an agent for Wallace-Bajjali, who was billing the city big fees for finding property to develop. The actions of Mr. Woolston, Mr. Kuehn, and Wallace-Bajjali led the Parkers to conclude conflicts of interest, if not outright fraud, were involved.

The Parkers were not the only residents reporting problems:

Residents Alisha and Dustin Brigance deposed that Mr. Woolston sent them a letter in July of 2012 stating that someone was interested in purchasing their property. In referring to Mr. Woolston, they stated, "He was working for Four State Homes to purchase an extremely large amount of property in our area.

The Brigances further deposed that there were at the time rumors of a movie theatre/library complex being planned for that area "at 20th and Connecticut." Mr. Woolston deposed that he had received a commission on the sale of 1825 Connecticut.

The Brigances further stated in their deposition that the only person they had contacted regarding the sale of their property was their realtor. However, at a neighborhood meeting they were approached by Gary Box, a representative of Wallace-Bajjali. Mr. Box was shocked when they told him they were not selling because apparently Mr. Woolston had informed him otherwise. The Brigances stated they wound up selling their property because Four State Homes had purchased all the surrounding property.

They also suggested that Mr. Woolston had not been honest with them because he had prior knowledge of the city's plans for the theatre/library eomplex. They went so far to say that Mr. Woolston was "controlling the prices."

It is interesting to note that their property was purchased by Charlie Kuehn in Fdbruary 2013. As of December 31, 2013, Mr, Kuehn has not sold this property to the 353 Corporation. This property is located at 1812 Delaware.:

The sales contract for the property lists Charlie Kuehn as buyer and Mike Woolston, as the broker for Pro 100.

Loraine noted that Woolston had abstained from numerous City Council votes on real estate matters.

This need for abstentions should place the public on notice that Mr. Woolston is involved in the matter personally and that the city cannot expect his best efforts because of his potential or real conflict of interest.

The report notes that both Woolston and Gary Box "had significant participation in performing the due diligence in the initial hiring of the Wallace-Bajjali firm. Now Gary Box is the project manager for the Joplin office of the Wallace-Bajjali firm."

The report says it is a safe bet that laws were broken, based on the testimony of Woolston, Joplin city residents, and City Attorney Brian Head.

The actions of Mr. Woolston, Mr. Kuehn, and Wallace-Bajjali are unethical since they must be looked at as conspiratorial under the totality of facts. Further investigations should be engaged with complete fee disclosure to the City Council. All business should be stopped under the contracts between Wallace-Bajjali and the City of Joplin.

Video- KOAM coverage of Mark Rohr's firing

KOAM TV 7

Investigation centers on City Manager, vote to fire Rohr expected

It appears that City Manager Mark Rohr may be the first victim of a City Council-ordered investigation into possible wrongdoing in city government.

The council, which has already voted on whether to maintain Rohr a few months back, a vote the city manager barely survived, is reportedly voting on whether to fire him.

Though details aren't clear at the moment, it appears that Rohr's performance was at least one of the reasons why the City Council went into a marathon closed session at 5:45 p.m. this evening.

The connection between Rohr and the city's master developer, the Sugar Land, Texas, Wallace-Bajjali firm appears to be part of the problem. It was Rohr who first introduced the council to Wallace-Bajjalli and the master developers were part of Osage Beach investigator Tom Loraine's charge in November.

Loraine was asked to look into real estate dealings involving Councilman Mike Woolston, who bought property in the part of the city damaged by the May 22, 2011, tornado, and then resold it to Wallace-Bajjali, reportedly for a tidy profit.

Wallace-Bajjali, of course, was fully aware that it was dealing with a city official.

Reportedly, Woolston has been told to divest himself of his real estate holdings, or resign his council seat.

(More to come)

Joplin City Council to public: You can't handle the truth

Joplin City Council members probably will not appreciate the irony, but they have been behind closed doors for nearly four and a half hours as this is being written- reviewing a report that was ordered to bring the truth about two city councilmen into the open.

Investigator Tom Loraine's report, commissioned by the City Council in November, was designed to uncover the truth about Mayor Pro Tem Bill Scearce's connection with a convicted gambler who was a tenant of his at one point, and whether City Councilman and former Mayor Mike Woolston, a real estate broker, bought land in the tornado-damaged area of the city knowing he could resell it to Wallace-Bajjali, the city's master developers, and make a tidy profit.

What reason was used to justify the closed session I do not know- the agenda for the meeting is not posted at the city website- but it can't be personnel. Elected officials do not fall under that category.

The council authorized paying Loraine, an Osage Beach lawyer, $45,000 for the investigation.

Now the first thing that has been done is to take the investigation behind closed doors and make us wonder just what, if anything, could be a good enough reason to keep Joplin residents from knowing whether they have two crooks, or one, or maybe none, sitting on the City Council.

Taking this investigation out of sight of the public, even for one minute, was not a wise decision on the part of the city council no matter what information was included in the report.

If the council members legally went behind closed doors, and it is most likely either they did or the city attorney told them they did, it was an unwise move. They should always remember that the Sunshine Law never states that you have to meet behind closed doors in certain situations. It says you "may."

In this post-tornado era, in which we have seen millions of dollars coming into the city of Joplin, it is more important than ever that our leaders conduct city business in full view of the public.

Our elected officials should take the lead.

They certainly blew it tonight.

Is there corruption in Joplin?

Joplin City Council is meeting in closed session at this moment going over a report filed by Tom Loraine, the Osage Beach attorney who was hired November 11 to head the investigation into 
activities of council members Bill Scearce and Mike Woolston. Loraine, who at one time worked in the U. S. Attorney’s office, has considerable experience in this type of investigation.

The cost of the probe was put at $45,000, Any further expenses would have to come before the council for approval.