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RTC developer has financial issues
Published 10:56am Thursday, February 23, 2012The CEO of the company hoping to redevelop the Regional Treatment Center has had legal issues related to financial payments, according to a public records search by The Daily Journal. These issues factored into the Fergus Falls City Council’s decision to ask developer Geitso Export Management for a $5 million deposit to supplement demolition funds if a project falls through.
The records search of the Minnesota court system reveals that Geitso’s CEO and president Atul Wahi has been accused multiple times of not paying money owed to various entities. Included in the records are multiple eviction cases filed against Wahi and his wife, Dimple, for not paying rent. Three of those cases were filed by the same plaintiff over a period of eight months in 2003 and 2004, alleging that the Wahis did not pay rent on what appeared to be the same residential property in Eden Prairie.
Though those cases did not result in a legally-binding eviction, records indicate that two others did. These were filed against Wahi and his information technology company, WiseSoft, in June of 2008 and January of 2009.
WiseSoft also had a judgment against it in 2004 for more than $22,000, but The Journal was not able to obtain the specifics of why the ruling was filed.
Wahi told The Journal that the claims against the eviction cases were false, and he and WiseSoft did not have the inclination or wherewithal to contest the cases at the time.
“We weren’t evicted; we left,” he remarked.
Though he said he would be happy to provide the council with more information about the eviction claims, Wahi did term them “my private life” and said he would not submit to such questioning in open session.
In addition to his civil cases, Wahi was convicted for speeding in Hennepin County in 2009. He was fined $83 but did not pay it. Court records report that his driver’s license was suspended in May of 2009 for failing to pay the fine, and it appears that his driver’s license remained suspended until very recently (a request for its reinstatement was sent to the Department of Public Safety on Feb. 2 of this year). Wahi did eventually pay the fine, but only after the fine was sent to a collection agency.
In a court case that has not yet been concluded, Wahi is accused of driving with a suspended license when he was pulled over in October 2011 by a Minnesota state trooper. According to trooper notes filed with the citation, Wahi allegedly told the trooper he knew his license was suspended, but he needed to get to Fergus Falls.
For that case, Wahi was granted a public defender. Though defenders can be assigned at the discretion of a judge, they are usually only granted if the defendant has a low amount of assets or income (the guidelines for a single person with no assets, for example, is a maximum of $1,134 in gross monthly income).
Wahi hopes to get the driving after suspension charges dismissed. He said he did not know his license was suspended, as his family had changed addresses and did not receive notice of the suspension.
City Attorney Rolf Nycklemoe and City Administrator Mark Sievert said the city was aware of Wahi’s court history, but they noted that Wahi had not submitted any of this information as part of the financial information section of his RTC development proposal. Wahi’s history was one of the items discussed by the council in its closed session during the Tuesday council meeting.
However, said Nycklemoe, that was not the only reason the council requested the $5 million in what he termed “earnest money” from Geitso, along with a request that Geitso submit more detailed financial information and plans. The amount of information Wahi did give, Nycklemoe said, was not in line with how much information the city had requested from developers, and it wasn’t enough to assure the council that Geitso could complete the plan.
“Even if he had a squeaky clean record, we still (would request his) financial information to give the council that comfort level,” said Nycklemoe.
The knowledge that Wahi has civil suits in his past is not necessarily a deal-breaker. The city council, noted Sievert, wants to give Wahi and Geitso every opportunity to make the project work, which is why the council requested more information rather than discarding the proposal when it failed to meet the original requirements.
“That doesn’t necessarily preclude us from dealing with an individual,” Sievert said of past legal troubles. “People make mistakes, and people can have court (cases) for many different reasons.”
Alderman Jay Cichosz said that the city’s requests for financial assurances from Geitso were to protect taxpayers from the cost of dealing with the RTC if Geitso’s multi-use development plan, called “The Global XChange Village,” fell through.
“Obviously, someone’s financial wherewithal is important if they’re going to finance a multi-million dollar project at the treatment center,” he said. With the council’s request for more financial information from Geitso by the end of March, he added, “we’ll know relatively shortly” if the company can do the job.
Alderman Stan Synstelien agreed.
“Whoever the developer is, I think he needs to be someone we can depend on, at least to the best of the knowledge that we have,” he said.
“We don’t want to put the city in jeopardy at all,” he added.
Though WiseSoft would be a tenant of The Global XChange Village, said Wahi, it would not be involved in management. That would be handled by Geitso, which has a clean slate.
“Geitso is the one that submitted the proposal, and Geitso is a completely different corporation with no records on it,” Wahi said.
He also commented, that, if necessary, he would cede ownership of the company to his wife Dimple if the council wished to deal with someone with fewer financial questions.
“They can take whatever they want into account,” Wahi said of the council members. “It’s their decision. We have presented the project, and it’s however they want to proceed.”
The council knows that finding a reuse for the RTC is an important issue for residents, Sievert reiterated, and that public concern and support for a solution is kept in mind as the council works with Wahi.
“(We’re) trying to give it every effort to be successful that we can,” he said.
This guy is just another wannabe developer who cuts corners every chance he gets in his personal and professional life. The City Council would be wise to distance themselves from him ASAP.
City council, don’t become so desperate with time-line closing re RTC demolition and the possible state fund loss that you are willing to put blinders on and ignore the fine work the Journal did in researching background, and place this city in further jeopardy financially than it already is.
When his company gets in trouble he creates a new name that is “squeeky clean”. If the council thinks about his proposal again, I say kick the council out before they do more harm to the city taxpayers than they already have. I don’t think that needs explaining. The council and the businesses council persons own need to be personally liable for and costs not the taxpayers.
Every time this council goes into closed session, it ends up raising taxes. Enough is enough.
I don’t recall seeing anything that states that he reinvents his company. Are you sure you aren’t on the council?
Its really to bad that the City representatives feel it is necessary to use a man’s private life as an excuse to discredit his business. All of this information is based on his private information, his private business, not what he has accomplished in his business life. I really have to wonder how any of the council would hold up under that kind of scrutiny, or any one else that feels bold enough to comment on this. It seems a shame that Ryan has nothing more to do than help a campaign that is not designed to help his career as a journalist.
A person who cuts corners and does not pay attention to detail in his/her private life, is likely to do the same in their professional life. Due diligence and good investigative reporting. Mr Wahi fails the test – say goodbye to Mr Wahi, ASAP.
I believe that the Kirkbride complex should be saved as much as anyone, but I don’t think it’s fair to disparage the Daily Journal, and Ryan in particular, for doing his job. These are pretty minor offenses, sure, but it’s investigative pieces like these that make the fourth estate a valuable part of the public discourse.
FYI, I believe the public records search site that was being used is located here:
http://pa.courts.state.mn.us/
Anyone can do a little digging of their own.
Dimple ? Really ?
this gossipy none sense isnt helpful, our only concerns should be if he meets the requirements. his nor anyones personal affairs are subject to public approval.
Holly Munk, What someone doesn in their personal life should not reflect in someones business life. A fine example: how many pastors, teacher, counselors, cops, ect. violate children in terms of rape, sodomy, molestation ect.. Does that mean they do a bad job at work? No it doesnt! Mr. Wahi is trying with good means here. How many of you can honestly say that you have done anything to help support keeping such a magnificent piece of history in Fergus Falls? I drive from Alexandria on my own time, gas, car repairs, food, ect. to provide security to help keep such a place free from vandals, tresspassers ect.. I am a volunteer! I don’t have to spend my money there but it is MY choice! I would love to see someone keep this building standing proud and strond the way it was meant to be instead of being torn down. As far as the council goes what Mr. Wahi has done good or mistakes who are you people to judge him? How about we blow the doors open on all of you when it comes time for your re-election? Would you people like someone badgering you for trying to do your job? How about preventing you from getting back into your seat on the board? How tough of a council would you be then. Maybe you should get some new and younger blood in there and expand what happens in that town besides what you on the council think should be there. Thats why you guys have so many businesses leaving town. You the coucil and the people who side with them have done to your own town. You don’t want anything new, nothing to better your town, ect.. Enough of this for now. Just think, there is always someone looking over your shoulder waiting for you to mess up as well.
Hear! Hear!
Mike Erickson- you cannot be serious with that pastor, teacher, counselor, cop comment.
Seconded. Thank you for volunteering, but I would suggest finding a different analogy in the future.
Megan,a couple pastor by name that you can search for yourself are: Michael Skoor, was convicted of molesting an 11 year old boy and attemped molestation of his brother. He recieved 29 years for this and something to add, he was also a boy scout leader!
Demetrius Darnell Allen was convicted of 10 counts of a lewd act on a child, one count of possession of child pornography and one count of contacting a minor for sexual offense.
Joshua Edward Hoffman was a school teacher that plead guilty to molestation of 3 5th grade students.
Matthew J. Nelson, 33, of Grain Valley was found guilty of first-degree child molestation and three felony counts of first-degree statutory sodomy. He was a teacher for roughly 10 years.
Here is a link for police molesting a girl: http://www.youtube.com/watch?v=C5cyw5ePWJk Like i said these people hold all different kinds of positions in the public eye. Their personal life and business life are totally seperate unless they do it at work. Here is something to really think about. How many of these sick people are out there that havent been caught yet? These people walk omung us everyday and we don’t even know it, after all they blend right in until they get caught, then it seems like everyone is shocked. I’m not trying to sound bad or anything against people just making the point people personal and business lives should not be looked at together. Megan, i am not using this as a attack twards you just opening this up that i don’t say stuff that isn’t true. Society needs to do stuff sifferent.
I know the people and crimes that i listed are a little farther out than Mn. but if you want one closer to home there was a cop from Starbuck,Mn. that was also fired from the force due to having a little extra something with a 16 year old girl. I am not sure if the courts had gotten involved or not. This was several years ago.
So Mike, if one of those former preacher/convicted sex offender were to apply to be a pastor at your church, would you hire him? Perhaps he could be a youth leader. After all, what he does in his personal life does not relate to his business life, right?
Holly munk, of course i wouldn’t hire him. Why would i put children in dangers way like that? Personally i would love to see the families that were the parents to the children have their way with him and have no recourse. This was while the people were at “their job”. that is the whole point here. Aside from the making a point here that anyone can mess up. Mr. Wahi has pretty minor things, not to be compared to preying on children. How can you compare molestation to a traffic ticket? Pretty drastic difference there don’t you think?
“What someone doesn in their personal life should not reflect in someones business life. A fine example: how many pastors, teacher, counselors, cops, ect. violate children in terms of rape, sodomy, molestation ect.. Does that mean they do a bad job at work? ”
You were the one that brought up the “fine example” of molestation, not me.
This guy cuts corners and doesn’t pay his bills in his personal life, and we are supposed to believe that he can deliver a project in the millions of dollars in our community? Guys like him used to be called snake oil salesmen.
Mike , the way you are championing the developer and his less than attentive manners in paying his bills, managing his finances, I have to wonder what “minor” problems you have had in your life for which you have been called to task?
In the examples you give, child molestation, serial sodomy or rape, the offender is usually found to be a serial offender, someone who has gotten away with dozens, maybe hundreds of assaults before being caught the first time. It is commonplace that when the molester is caught and locked up, many more victims speak up, now that they have cause to feel that their rapist is restrained by authorities.
In the same way, it is usually the case that those who pull off business scams and cheat hundreds or thousands of people, also have habits of not paying their bills, violating the trust others lend to them when granting personal credit lines.
It is the PATTERN of personal misconduct which generally is a reliable predicter of major misconduct as time goes by.
The city council’s primary duty is to protect and husband the peoples’ resources and properties in the city treasury. Bankers always run background checks before hiring job applicants, as the new employees will be entrusted with other peoples’ money, assets. The council needs to exercise as much caution as the bank on the corner. For the first time in too long this council is exercising due diligence in the RTC matter, and it is probably a consequence of both the many of us who posted here to caution the council on this developer, and reporter Howard’s diligent research, which the Journal brought to the attention of the council.