Joplin cites fraud, misconduct in Wallace Bajjali termination

Joplin city officials have terminated its agreements with the contracted master developer, Wallace Bajjali Development Partners, citing insolvency of the firm with at least $8 million of debt that the city has verified, according to the Joplin Globe.

In a letter to the firm, Joplin City Manager Sam Anselm said the city had verified the company is in default of $8.6 million in debt, including a $5 million promissory note held by Springfield-based Prime Inc., as well as $2.1 million in property the firm was obligated to buy for the redevelopment of Joplin.

The company also owes $1.5 million to investors as part of a lawsuit by the U.S. Securities and Exchange Commission, according to the report.

Payment of the settlement was due within five days of Dec. 31. According to the report, the court-appointed receiver in the case made two written notices for the funds in January, around the same time Wallace Bajjali CEO left an unsigned letter of resignation and his partner, Costa Bajjali, resigned a few days later after firing all of the company's employees.

Read more from the Joplin Globe.[[In-content Ad]]