Federal judge orders payment $1.5M settlement from partner that went to bankruptcy court later
AMARILLO -- A $1.5 million court settlement once on the shoulders of both principals in Wallace Bajjali Development Partners now falls to one to repay.
A federal judge Wednesday ordered Costa Bajjali to pay a $1.5 million judgment based on a 2012 court settlement with a U.S. Securities and Exchange Commission receiver that he and his former business partner, David Wallace, failed to pay by Dec. 31.
Wallace and Bajjali each abandoned their Sugar Land development company in January, causing the cities of Amarillo and Joplin, Mo., to cancel multimillion-dollar contracts for development with the firm.
Since the company dissolved, at least 11 state and federal civil lawsuits against them have reignited or been filed.
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The SEC’s appointed receiver, Thomas L. Taylor III, filed suit in January, asking a federal judge to enforce a settlement he reached with Wallace and Bajjali in 2012.
That settlement dealt with the developers’ role in an alleged Ponzi scheme related to a failed radio network, BizRadio.
Read more: http://amarillo.com/news/local-news/2015-04-22/federal-judge-orders-bajjali-pay-15m-settlement