[1][2][3] In October 1921, the opponents of the NPL, particularly the Independent Voters Association (IVA), held a special recall election that deposed all the members of the Industrial Commission: Lynn Frazier (Governor), John N. Hagan (Commissioner of Agriculture and Labor), and William Lemke (Attorney General).

He became entangled in a lawsuit with the state regarding a house that had been built for him in Bismarck by the controversial Home Building Association (HBA), which was a program of the NPL.

To recover as much of the costs as possible, the state pursued settlements and/or lawsuits with the homeowners, some of whom were NPL members who benefited from the HBA program.

[11][14] NPL members like William Lemke (NPL leader and Attorney General), George Totten (member of the Board of Administration), John N. Hagan (Commissioner of Agriculture and Labor), and George E. Wallace (Tax Commissioner) would be part of the HBA scandals.

Wallace was told to pay the amount deemed to be reasonable or let the house go back to the state.