Joplin master developer accused of involvement in Ponzi scheme

A lawsuit filed in Harris County, Texas, is alleging that David Wallace, Costa Bajjali and several Wallace Bajjali entities were part of an elaborate Ponzi scheme to defraud investors.

The firm, selected as the city of Joplin's master developer after the 2011 tornado, was named in a suit filed on behalf of 45 plaintiffs, all of whom said they were defrauded in the alleged scheme, according to the Joplin Regional Business Journal.

According to the petition filed in Harris County District Court, Wallace Bajjali Development Partners LP – along with Wallace, Bajjali, other named business partners and entities, and several additional Wallace Bajjali entities – set up, marketed and controlled the now-defunct Business Radio Network LP, which did business as BizRadio.

BizRadio, a network of radio stations that broadcasted and marketed financial and economic programming designed, according to the petition, attracted clients for Kaleta Capital Management, Daniel Frishberg Financial Services Inc. and the other defendants. The petition alleges BizRadio was a loss leader for Daniel Frishberg Financial Services.

“Investors’ funds raised by defendants and their confederate, Albert Kaleta, flowed freely to the financially insecure BizRadio in a desperate attempt to keep the BizRadio pipeline of new investors open so that they could be steered to KCM, DFFS and defendants.”

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