Laffer linked to Ponzi scheme?

Reagan economist Arthur Laffer, an architect of Gov. Sam Brownback’s proposed tax reform, will speak before the House and Senate tax committees today. He also is among the defendants named in a Texas lawsuit filed this month by 52 investors claiming that Wallace Bajjali Development Partners fraudulently funneled more than $3 million to support a media company Ponzi scheme, reported the Amarillo Globe-News. The suit alleges that the partners put $3.16 million into Business Radio Network knowing “it was unable to support itself.” The complaint states that “Mr. Laffer lent his name to Wallace and Bajjali for a fee to increase the credibility of their offerings and effectively vouched for the credibility of the limited partnerships.” A fund formerly headed by Laffer also reportedly put money into BizRadio, which carried a program Laffer co-hosted.