Rocky Road For Wallace, Business Partners As They Faced Fraud, Misappropriation Allegations

Rob Wallace

Staff

A mining company with 2nd Congressional District candidate Rob Wallace as a 39 percent owner, known as Scott Branch, allegedly defrauded a group of investors and misappropriated their dollars, documents in the legal case reveal.

Legal documents filed in the case allege the majority shareholders defrauded minority shareholders and a Tulsa district judge found that to be the case.

The judge handed down a half-million dollar judgment in favor of the investors (Tulsa County District Court, CJ-99-03276), but dismissed the individual stockholders, including Wallace, from the lawsuit.

The case has been reported on previously, but the fraud allegation has not been widely reported.

Wallace was named in three lawsuits surrounding the Scott Branch collapse. Wallace is named individually as a defendant, and had a judgment entered against the business and its partners for more than $500,000 (Tulsa County District Court, CJ-99-03276; Oklahoma County District Court, CS-99-3904; LeFlore County Court, CJ-99-00292).

However, apparently as part of a settlement agreement, Wallace and other individuals were dropped from the $550,000 legal action.

Wallace’s business affairs have become a centerpiece in his battle with businessman Markwayne Mullin.

One of those calling attention to Wallace’s business affairs has been Republican State Chairman Matt Pinnell.

“From repeated business failings– even to the point of wage garnishments– Rob Wallace has a checkered business record,” Pinnell said.

“While Mr. Wallace has enjoyed  lobbing attacks against Markwayne Mullin’s Oklahoma success story over the past week, it certainly raises the question, just why is Rob Wallace attacking such a successful Oklahoma businessman with a remarkable story?

“Issues were raised in the Democrat primary about Mr. Wallace’s background as a failed businessman, but questions still remain. Why did Mr. Wallace incorporate so many businesses that quickly failed, including some that failed under very suspicious circumstances? The repeated failings raise many legitimate questions about Mr. Wallace’s judgment, management, and business acumen.

“CD2 voters have a right to the facts, and the evidence is clear: if they want a successful businessman to represent them in Congress, there is only one choice, Markwayne Mullin. Not an attorney who has spent his career receiving a government paycheck, and who has a clear record of failure when he’s ventured into the private sector.”

The fraud allegation: Rob_Wallace_Court_Documents