Magnolia Group sues over Bay Tech Building Swindle

And I am already hearing rumors additional defendants will be added to the suit. The Bay Waveland School Board, in my opinion, has wholly failed to properly discharge their fiduciary duty to the taxpayers and voters of Hancock County and if this litigation begins consuming tax dollars meant for education, Slabbed New Media will not be kind to the perpetrators. Click the pic to nab the PDF:

Magnolia Group v O'Dwyer et al Doc 1

I see from Pacer Magistrate Roper has recused himself from this case. It took me a few seconds to figure out the likely reason, which I will not share, but I will say Magistrate Roper is known as a straight shooter that calls his cases down the middle and he was absolutely right to stand down here IMHO. Given some of the past topics we’ve tackled as it related to Judicial recusal it is in fact refreshing to see the system work as it should.

Quite honestly this is one case where I wish my reporting were off as I have known some of the people involved for many, many years.  At the end of the day self respect for my own tax dollars trumped that history.  I’ll be keeping an eye on this case and the related investigations that are ongoing.

IMHO Ben Galloway is one of the best attorneys on the Gulf Coast. This one promises to be a donnybrook.

Links to Slabbed’s previous coverage of this matter:

5 thoughts on “Magnolia Group sues over Bay Tech Building Swindle”

  1. I’m with you, Doug. I sure hope this one makes it to a jury. When all is said and done, and the real truth comes out as to who the central figure is eyes will pop! The taxpayers of the Bay-Waveland School District should have NEVER been implicated in this mess, but i’s too late now.

  2. I understand that some years back Roper presided over a case involving this same school district and ruled against them. Maybe that is his reason for recusing himself. Gonna be some interesting revelations coming!!

  3. Doug, read the complaint online, and it appears that Magnolia Group is not, at this point, aware of all the players. Maybe that is why you said there could be more defendants coming. We have an investor who provided the cash, and made a profit off the deal, and others who provided the appraisals on the backs of the taxpayers.

    1. The best lawyers tell me to plead what you know you can prove at the outset and if additional defendants manifest themselves in discovery they can always be added.

      School Board Attorney Artigues certainly has something to worry about in that regard, especially given his long time close personal friendship to Nicaud. An examination of the case facts as we now know them strongly implies it was a representative of the school district that steered this deal to certain of the parties that are now named defendants. The record also shows it was Mr. Artigues that worked point on the deal for the school district.

      The big question is who let the school district’s appraisers in the Bay Tech Building without The Magnolia Group’s knowledge and consent? We know that Artigues ordered the appraisal for the school district but I am hearing a new name in answer to that question. That bit of information will come out and when that happens there may be two new defendants to go with the rest.

  4. It just seems that anyone who made a profit off of this scheme should be held accountable. That would
    have to include the very close friend of Rigby’s who claims he put up the money for the deal, and in the
    end only made $90,000 profit. Poor baby. This is not speculation or gossip.
    Additionally, someone (or maybe even plural) should be held responsible for the taxpayers footing the
    bill for the appraisal that secured the $255 grand profit for LNG. If you are going to make that kind of
    profit, you can surely afford your own appraisal for $2700. That is beyond the pale for a private enterprise to have those kind of connections to public money.

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