Business

City of Joplin Sues Wallace and Bajjali for $1.5 Million, Charging Fraud

The suit comes a day after former Sugar Land Mayor David Wallace filed for bankruptcy in Houston.

David WallaceDavid Wallace. Photo from the Wallace Bajjali Website

 

The City of Joplin, Missouri is suing its former master developer, Wallace Bajjali Development Partners, along with the two men who ran the Sugar Land-based company, David Wallace and Costa Bajjali. The lawsuit, filed Wednesday, seeks $1.5 million in damages from Wallace Bajjali and accuses the company of fraud.

Wallace, one of the company’s former partners and a past mayor of Sugar Land, filed for bankruptcy Tuesday in federal court in Houston.

Joplin hired the development partners in 2012 to lead the city’s recovery from the 2011 tornado. The city learned in January that the company had closed and that both Wallace and partner Costa Bajjali, had resigned.

The Joplin Globe reports that Wallace was unavailable for comment Wednesday.

Peter Edwards, attorney for Joplin, says Wallace’s bankruptcy filing might not protect him from Joplin’s lawsuit.

 

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Costa Bajjali
Costa Bajjali. Photo from the Wallace Bajjali Website

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Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew heads Houston Public Media’s coverage of national, state, and local elections. He also reports on major policy issues before the Texas Legislature and county and city governments across Greater Houston. Before taking up his current post, Andrew spent five years as Houston Public Media’s business reporter, covering the oil...

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