Dan Frishberg apparently in violation of SEC order not to offer Investment Advice. Will there ever be Justice in this case?

November 6, 2012

Hello everyone Dan, here. How often do you hear yourself saying “no I haven’t looked at that yet, but I’ve been meaning to?”

Thus began an email written to my by none other than Dan Frishberg.  Yes, Dan Frishberg of disgraced BizRadio fame, the same Dan Frishberg that is banned from the SEC in offering investment advice…not that it seems the SEC has any teeth when it comes to Dan and his continued radio commentary.

I just read yet another email from a frustrated trader telling me that the trading techniques, the pattern recognition software, or the black box strategies that he believed in are simply not working.

Wow…again I’m confused.  You received “yet another email from a frustrated trader” – but Dan you’re not supposed to be offering investment advice so why would you be receiving any emails from traders?  What am I missing here?

Brokers are telling their customers to ignore their losses and hang on, but that’s what they always say. Sometimes that advice works, but it has also resulted in some of the biggest losses in the past twenty years.

Oh my…”some of the biggest losses in the past twenty years” – wonder if that isn’t exactly what happened to people – good folks who couldn’t afford to lose – when they listened to your line about BizRadio and why they should invest in you.  Dan tell me – if they lost in you, why should they now listen to you – especially when you’re not supposed to be offering investment advice?  Damn this perplexes me!

One listener said he has finally realized technical analysis doesn’t work. This isn’t true, the current price is unquestionably a key part of the story but this is only part of it.

Only part of the story…seems that’s a mantra for you.  Has anyone who invested with you in BizRadio ever gotten the truth – the full story or even as much as an apology?

The paradox of investing is – it’s easy to make money when you stop searching for the easy answer.

Yet you and Al Kaleta offered “easy answers” to investors who by all accounts were defrauded.  Have you made restitution?  Have you made it easy for them to recover their monies?

Instead, get an update on what’s working now — the most up to the minute insight into the trends, turning points, and my best stock and option trade ideas in my all new newsletter, Whats Working Now.

You do have a big set of (whatever)…get “my best stock and option trade ideas” – good lord is that not in direct violation of the SEC requirement that you not offer investment advice?  Justice?  Doesn’t seem to be any here!

CLICK HERE – (I disabled this link as I’m not giving Dan Frishberg a link from my blog)

DANIEL FRISHBERG
THE MONEYMAN REPORT
themoneyman.com

YOUR COMMENTS ARE WELCOME!


Whatever Happened to the Criminal Justice System in the USA? Dan Frishberg’s Biz Radio Folly goes Unpunished and Dan’s still on the Radio… Go Figure!

July 20, 2012

It’s been a while…a long while since I turned my attention to Daniel ( Dan ) Frishberg – the radio personality who, with his partner Al Kaleta, caused many an investor to lose substantial funds in the failed Biz Radio debacle.  I received an email today from a defrocked investor in Dan Frishberg’s failed scheme asking “Whatever happened to the criminal justice system in the USA?  Dandy question, cause it seems that Dan Frishberg has effectively walked away with no criminal consequence to his very public investor fraud.   If you want to see background go to these wordpress posts on “The Money Man“.

In Dan Frishberg’s most recent report he states the following:

The key is to hold the right assets for enough time so that the investment can reap its full reward. It takes a lot confidence for an investor to believe that the company will not only be in business years from now but will continue to create an increasing amount of value several business cycles into the future. Successful investors are only able to hold on to stocks for the long term if they are able to create conviction with the proper due diligence, generate income, and protect their capital during uncertain times.

Hum…I read the words written and wonder!  You state, “It takes a lot confidence for an investor to believe that the company will not only be in business years from now but will continue to create an increasing amount of value several business cycles into the future.”  Yet, I wonder how the folks feel that listened to your advice on Biz Radio and your podcasts and YouTube and believed that you had a sustainable business model that would create an increasing amount of value to sustain them into the future.  Seems from all accounts that you and your cronies led folks into investing into nothing more than a Ponzi scheme and today they have lost.  But have you?

“Successful investors are only able to hold on to stocks for the long term if they are able to create conviction with the proper due diligence, generate income, and protect their capital during uncertain times.”  Dan those are your words.  Yet, you solicited investments that did not protect capital, generate income and were void of due diligence.  Shame on you…!  You survived, but what about those who trusted you?

I believe in Second Chances – in fact I wrote a book about it!  I know with every fiber of my being how you operate as (sadly) I was you at one time.  But there is one BIG DIFFERENCE.  I acknowledged my unethical actions, made restitution and changed my choices.  Seems accepting responsibility – which is the first step to recovery – is something that continues to allude you.  Isn’t it time – Dan Frishberg – to face the truth of your lies and deceptions – take responsibility – make restitution and then move forward with your life in an honest and ethical way.

You – Dan Frishberg – could be a leader in ethical business practice, sharing the truth of your folly and how unethical practice can be turned into societal good.  Sadly, Dan, it seems that you only know one thing – how to be a talking head on the radio.  Every choice has a consequence and the consequences of your choices are not over…cause karma’s a bitch.

If you have been defrauded by Dan Frishberg and Al Kaleta – feel free to share your experience so others can at least be warned!


One Step Ahead of the SEC – The Mystery behind Dan Frishberg – The Brains Elisea Frishberg – who knew?

June 29, 2011

I feel like I owe my readers an apology.  All this time I thought that “The Money Man” Dan Frishberg was the brains behind the massive theft involved with what is now known as BizRadio.  But it looks like I was wrong.  Seems that all was an illusion.  Perhaps Dan was not that smart after all, cause now the truth behind the myth appears – Elisea!  Shocked…well no, rather mystified.  Read this recent announcement by Elisea and then let’s talk…

I’m Elisea Frishberg and I’ve served as Executive Producer of “The MoneyMan Report” for twenty years. For all that time, when Dan has been on the radio, CNBC,  or Fox, I have been right there behind the scenes.

Through all these years, our show has been about helping people get themselves off the emotional roller coaster so they can be among the very few who actually make money in the markets AND KEEP IT.

Here is a picture of that roller coaster.

From despondency to depression to hope to relief, on to optimism then excitement and euphoria, and the herd’s emotional roller coaster ride starts back down into anxiety, denial (where they feel the market can’t fall any further,) and finally to capitulation. Then the whole thing starts all over again.

It’s all so human isn’t it?

I want to propose a solution – an easy way to escape from the herd and start to enjoy the markets.

Join us for our No B.S., Plain English, No Jargon, Everyone-Can-Do-It…

The MoneyMan’s Live Training…

BECOMING INVESTOR 2.0.

Morning Session: Becoming Investor 2.0

We’ll learn once and for all how to free ourselves from the emotional roller coaster most investors stay stuck on all their lives.

Find out how, at each stage, the markets serve as the primary mechanism to transfer wealth from the uninformed to the smart money, and find out how to make sure you’re on the winning side. Once you’re free, you’ll know there is a profitable play for every situation, just as in baseball.

Take a look at the small space between DEPRESSION and HOPE on the right hand side of the picture. Between those two little dots, investors go through highly predictable emotions…

Contempt: According to the cycle, a bull market typically starts when a market is at a low and investors scorn stocks.

Doubt and suspicion: They try to decide whether what they have left should be invested in a safe haven, such as a money market fund. They’ve burnt their fingers on stocks, and vow never to invest again.

Caution: The market then gradually starts showing signs of recovery. Most remain cautious, but prudent investors are already drooling at the possibility of profit.

What does the smart money do at that point?

First the big hitters begin to buy convertible bonds. Solid companies issued bonds that are paying only about 5% or 6% because they companies are so solid, but in this coming out of panic situation, panicked investors are still afraid to take action, so highly desirable and safe bonds are selling for 70 or 80 cents on the dollar. It happens in every cycle, and now that you’ve learned how to escape from the herd, you’ll be right there, ready to take advantage of the opportunity.

In fact, you’ll wonder how making money could be so easy, and how you missed all these opportunities for all these years.

Next, once they see the high yield bonds start to recover, they know the stock market won’t be far behind, so they take their profits on the bonds, then back up the pickup truck and load up.

While the experts are claiming to be in a “stock pickers’ market” as usual, the educated investor knows very well that at this stage, buying the whole market is better. There will be plenty of time for fine tuning later in the cycle, when the herd is moving between the OPTIMISM and EXCITEMENT stages.

Is it really that easy?

I don’t want to kid you. It really is that easy to understand, but being able to actually execute the right strategies and tactics takes courage, brains, and the ability to resist the hypnosis of the herd. That’s the part you’ll have to practice for the rest of your life.

Cycles constantly repeat. We move through the same seasons every year, and we’ve all learned how to anticipate the changing seasons. We follow the weather, the harvest and the sports cycle every year of our lives. We easily adapt to the cycle of the seasons, so they never surprise us. In fact, we learn to love each season, because we anticipate the predictable changes, and we successfully plan our activities to match.

For example, when the stock market rallies, stockholders win.

At the moment of EUPHORIA or maximum confidence, some chinks in the armor start to show up, suggesting the early signs of economic slowing. Stock prices go down, and the new winners are…

  • the short sellers,
  • the bond buyers
  • the patient investors who kept their cash ready,
  • the put buyers,
  • and the smart investors who Rent Out Stocks.

They all prosper when the rally stalls. Who loses? Simple! Those who blindly buy into the intoxicating euphoria of the herd.

Learn the winning play for every situation. The reason experienced investors and traders are able to achieve better results over time, is that they understand exactly what the herd is going through.

Why? Because this isn’t their first rodeo!

In the afternoon session: Master R.O.S. and you will know…

1. How to increase your annual returns by 20%-30% per year in a sideways stock market.

2. How to pinpoint your most accurate economic and market forecast, then choose the exact right tactics for that precise situation.

3. How to pinpoint your exact risk profile, then choose the exact right tactics to fit.

4. How to decide if collecting rent on a stock is a better deal than just holding the stock.

5. How to take consistent profits from a sideways consolidating market

6. How to choose which stocks make the best long term holds, so you can collect your rents while you minimize the downside risk of owning stocks.

7. How to tell when the speculators are paying too much for their long options.

8. How to understand the profit potential is in an option, so you can consistently outsmart your renters, by out-timing them.

9. How to consistently buy stocks cheaper than their ticker prices.

10. How to know which month’s options offer the best rental rates

11. How to know which stocks in which industries make the best “rental properties.”

12. How to take advantage of market fluctuations to increase market profits by over 35%

13. Learn how the top pros can consistently spot THE optimum moment to collect their rents, by knowing how to estimate future volatility. This skill will also help you know when and how to protect the downside in you equity holdings.

14. How to understand more about how to price the rents on your stocks than the speculators and gamblers whose money you collect.

15. How to use time decay to consistently make the optimum rentals on your long term stock holdings.

16. How to know when to make a above the market offer, and when to accept the current market price.

17. How to know when to pass on a high rent, to keep more upside in your stock holdings.

18. How to read the market trends and directions.

19. The three most common mistakes investors and traders make in reading market trends.

Also Includes a Special Lesson On Iron Condors, the more advanced play for a sideways market. Warning: This technique works terrific in when markets chop and don’t go anywhere, but it may require some more study and practice for some themoneymanreport.com/newsletters-a-reports/item/767-learn-more–sign-up.htmlstudents.

Most people assume that when the markets aren’t moving you can’t make money. Not anymore. Low volatility markets can be extremely profitable.

With the Iron Condors strategy, we will trade a single complex option spread which includes the simultaneous vertical spreads in the same expiration month.

The strategy will advise on market neutral and well defined risk iron condors with limited profit. Each month we will identify an index or ETF that is range bound, allowing us to profit from the non-directional movement. The main advantage to trading this strategy is that it will give you near-term hedging with defined and manageable risk characteristics.

Click here for a short video on exactly what the smart money is already doing at every turn.

Sincerely,

Elisea Frishberg

The MoneyMan Report

Radio Wall Street

Click here if you would no longer like to receive emails from us.

9800 Richmond Avenue Suite 250 Houston, Texas 77042 United States (713) 785-7100

WOW…DO YOU SUPPOSE THIS VEILED ATTEMPT WILL WORK?

Let’s consider the fact that the SEC was supposed to have shut up Dan Frishberg from offering investment advice.  Why?  Cause he was actively involved in defrauding investors according to SEC reports.  Dan and the SEC agreed on the outcome.  From my perspective Dan was to have gone to http://www.zipit.com with his glorious investment advice.

Ah…but there is nothing to muzzle the mouth of Elisea and apparently she was the brains behind the man…after all she was the Executive Producer of “The Money Man Report”.  Well…let me ask some questions:

  1. Elisea…if you were the Executive Producer – did you know that your husband was cheating many people out of their life time savings to support your failed business and personal lifestyle?
  2. No…you say, well then how smart were you?  Shouldn’t (as Executive Producer) you have known that financially BizRadio was in the tank and that you should have helped Dan cut back on lavish expenses?  Oh…I guess not as I’ve been told that you pushed for those lavish indulgences.
  3. And, lastly Elisea – do you have any remorse for those who lost their money at what you now seem to admit was your and Dan’s hand?  What are you doing today to make restitution?  Do you even care?

My strong suspicion is that Elisea won’t answer these questions – as it seems that it’s business as usual for the Frishbergs.

WHAT ARE YOUR THOUGHTS?


SEC Issues Daniel Frishberg Order! Will Dan Frishberg continue his Investment Advice Now?

May 16, 2011

The long awaited order from the SEC is hereby presented and (to the best of my knowledge) was filed to be effective today.  See Questions below:

The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 203(f) of the Investment Advisers Act of 1940 (“Advisers Act”) against Daniel Sholom Frishberg (“Respondent”).

The Commission finds:

1. Frishberg was the president and majority owner of Daniel Frishberg Financial Services, Inc. d/b/a DFFS Capital Management, Inc. (“DFFS”), an investment adviser registered with the Commission. Frishberg, 65, is a resident of Houston, Texas.

2. On March 30, 2011, a judgment was entered by consent against Frishberg, permanently enjoining him from future violations of Sections 206(1) and 206(2) of the Advisers Act, in the civil action entitled Securities and Exchange Commission v. Daniel Sholom Frishberg, Civil Action Number 4:11-cv-1097, in the United States District Court for the Southern District of Texas.

3. The Commission’s complaint in the civil action alleged that, in connection with two separate promissory note offerings to DFFS clients, Frishberg violated Section 206(2) by approving unsuitable investments for recommendation to his advisory clients. In addition, the complaint alleged that Frishberg aided and abetted the Section 206(1) and 206(2) violations committed by Albert Fase Kaleta and by DFFS. Frishberg approved investments despite conflicts of interest between himself and DFFS on the one hand and the advisory clients on the other. In particular, Frishberg controlled the company that issued the promissory notes. Moreover, the issuer’s poor financial condition made it unlikely that it could pay its promissory-note obligations. Frishberg knew such conflicts had not been disclosed to clients or recklessly disregarded whether such conflicts had been disclosed to clients.

In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions agreed to in Respondent Frishberg’s Offer.

Accordingly, it is hereby ORDERED:

Pursuant to Section 203(f) of the Advisers Act that Respondent Frishberg be, and hereby is barred from association with any broker, dealer, investment adviser, municipal securities dealer, or transfer agent.

Any reapplication for association by the Respondent will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, the satisfaction of any or all of the following: (a) any disgorgement ordered against the Respondent, whether or not the Commission has fully or partially waived payment of such disgorgement; (b) any arbitration award related to the conduct that served as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a customer, whether or not related to the conduct that served as the basis for the Commission order; and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct that served as the basis for the Commission order.

Timothy S. McCole, Esq.
Fort Worth Regional Office
Securities and Exchange Commission
Burnett Plaza, Suite 1900
801 Cherry Street, Unit #18
Fort Worth, TX 76102

QUESTIONS:

1.  Since it says, hereby is barred from association with any broker, dealer, investment adviser, municipal securities dealer, or transfer agent, what impact does this have on Dan’s keynote address at Barrington’s meeting on May 18, 2001?  If Frishberg speaks for Barrington on the 18th, I would be willing to bet that Frishberg’s fee would make Bill Clinton feel incompetent…  what an effective way to be paid for his work than a huge check for speaking!

2.  Since it says,  is barred from association with any broker, dealer, investment adviser, municipal securities dealer, or transfer agent, does that mean that Dan Frishberg is barred from ANY ASSOCIATION with Barrington (even as a guest speaker or seminar leader)?

3.  It would appear that Frishberg could reapply, but since there was an order issued against Al Kaleta and Frishberg for disgorgement shown here (69-main) it would stand to reason that FAILURE to satisfy this order would prohibit Frishberg from re-establishing Investment Advisor credentials?

4.  Lastly, does any part of this order have any impact on Frishberg’s ability to continue to offer his style of investment advice on Salem Communication stations?

YOUR COMMENTS ARE WELCOME!


Dan Frishberg asks: Do investors steal from themselves? Are You Kidding…seems you steal from them?

May 16, 2011

Perhaps I am missing it, but I am flabbergasted by the title of Dan’s new Keynote speech to be given on May 18, 2011 – just a few days from now.  Damn this guy has bigger b***s  than a well fed circus elephant!  How can someone who is supposed to be banned by the SEC from offering investment advice – offer investment advice and be so blatant about it?  The question he asks:  Do Investors steal from themselves?  Answer: No it appears that you steal from them…

Here’s what is stated on his web site and I’m not making this up:

Dan Frishberg asks: Do investors steal from themselves?

I see experienced investors, desperately trying to preserve their capital for retirement, taking exactly the wrong action, as the Fed attacks the value of their dollars, bonds, and bank accounts – all the guaranteed dollar savings that used serve as our safe harbor.

“They about to cost themselves millions each over the next five years, solely and entirely because of the futile attempt to do what was once safe in the past, but has now become extraordinarily risky.”

I’ve just taken the best gig of the year. I’ll be the keynote speaker at the Barrington Financial Investment Strategy Conference, starting at 7pm, at the Marinas Resort Hotel, on 18683 Collins Avenue, in beautiful Sunny Isle, on May 18th, 2011.

I can’t wait to take you through the strategic mistakes you may be making right now, at this turning point in the U.S. economy. I will examine the flawed psychology behind those errors, and how to actually take advantage of the opportunities that are just now presenting themselves.

We’ll cover:

  • ·      Where I see new strength already developing, and how we can easily know whether this strength is authentic and reliable
  • ·      How to know when to sell
  • ·      How to avoid being caught in big Bond-Fund Losses
  • ·      How the pros are now able to easily skim profits from the excessive speculation by the amateur investors
  • ·      Why most people are pouring money into the developing markets, and why most of them will actually lose money.
  • ·      The most over-looked high tech stock opportunity of this generation, and much more.

The Free Book You’ve Heard About on the Radio

Here is the best part. Barrington Financial has compiled a comprehensive bound book called MILLION DOLLAR RESEARCH FOR $99. It’s full of our most important research, assembled over the past year. They have spent thousands of dollars on all this research, ( I know this for a fact, because some of that research has been mine) and it’s been worth it, because the information has made millions of dollars for Barrington and its clients.

On May 18th, 2011, for one evening only, Barrington will give Free copies of this valuable book, MILLION DOLLAR RESEARCH FOR $99,  to the first 100 people who attend their Investor Strategy Conference. My  keynote address is free, but please reserve your space, because seating is limited.

·      How Your Instincts Can and Will Lose you Money

·      When to Buy Convertible Bonds, How to Evaluate and Price Them, and When to Take Your Profits

·      How to Deal With Inevitable Inflation Without Taking Undue Risk.

·      How a Fed Induced Inflation Spiral Can Spoil Your Retirement  (you are seeing the first signs of it already, though the spiral they are talking about could be a year or two off.)

·      The Safest Ways to Hedge Your Portfolio in a Volatile or Down Market,

·      Buffet’s Two Top Rules (never lose money and never forget rule number one.)

·      How the Fed Has Attacked Savers, and How to Turn the Tables and Take Advantage of the Fed’s miscues

·      Why Bricklayers’ Stock Portfolios Outperformed Surgeons’ Over the Last Decade

·      The Chinese Internet Company that Doubles Every Couple of Years, and Why it is Likely to Double Again by 2013. (Learn how you can actually use the Chinese pullback to position yourself.)

·      How to Turn the Tables and Prosper from the Fed’s Assault on the Dollar

·      How Big Hedge Fund Operators Like Soros and Paulson Use Institutional Macro Bonds to Help the Rich Get Richer

·      Why the Water Crisis Could Turn out to be the Biggest Profit Center of this Decade (have you noticed you’re already paying more for drinking water than gasoline?)
This beautiful book – thousands of dollars worth of high end research, worth at least $100 bucks – is a free gift, from Barrington Financial, to the first 100 people who arrive for their big Strategy Session in Sunny Isles, Florida at 7pm, on May 18th, 2011.

Simply fill out the form below to reserve your seat and your Barrington Book, MILLION DOLLAR RESEARCH FOR $99.  Be one of the first 100 people to arrive at the Strategy Session, and the book will not cost $99. The price to you will be zero – a gift from Barrington Financial Advisors.

I’ll see you at the Marenas Resort in Sunny Isles, at 7pm on May 18th.

ATTENTION:  To those who attend this seminar…be on notice that Dan Frishberg has been the subject of an SEC investigation where a multitude of investors were scammed out of millions of dollars in Dan’s failed BizRadio fiasco.  Attend at your own risk…cause it would appear that Dan Frishberg’s SCAMBUS is headed to Florida.

YOUR COMMENTS ARE WELCOME!


Has Salem Communications finally figured it out? Dan Frishberg “The Money Man” off the Air?

May 16, 2011

At times, as I’ve followed the Dan Frishberg scam saga, I’ve been mystified by how a company like Salem Communications could keep Dan on the air spewing his nonsense all the while knowing that he’s been busted by the SEC for wrongdoing.  Perhaps I’m wrong, but it appears that someone at Salem has finally come to their senses and removed Dan from his lofty broadcast position.

Seems Houston station 1110 KETK was (for all practical purposes) the home base for BizRadio – Dan Frishberg’s company that effectively defrauded millions – most of which won’t be recouped.  The station was up for sale and as of this writing I do not have confirmation of whether that has taken place yet.  But what is clear is that Dan Frishberg is no longer listed in the stations program line up.  The program line up link is listed here:  http://www.business1110ktek.com/  and note…Dan Frishberg “The Money Man” is no where to be seen.

Has Salem come to their senses?  Perhaps they now see that Dan Frishberg is a liability.  There is little doubt, especially in Houston, that Dan Frishberg’s actions which cost investors millions was nothing more than a glorified Ponzi scheme.

Months ago…many it seems, I also reported that Salem Communications had expanded Dan Frishberg’s coverage beyond Houston to Miami’s WZAB 880 AM and Atlanta’s WAFS 1190 AM – as I look at those web sites today I get mixed messages.

First – WAFS 1190 AM in Atlanta does NOT show Dan Frishberg on their program line up.  Here’s the link:  http://biz1190.com/schedule/ but he is listed as one of their personalities.  Which is it – is he on or is he off?  Here’s the personality link:  http://biz1190.com/personalities/

When it comes to WZAB 880 AM  in Miami – is has been reported that Dan Frishberg was preparing to move to Miami as it was a bit too hot in Houston for him to continue his financial connections.  Perhaps he felt the pickins were better in Miami.  Either way, WZAB still shows Dan Frishberg in the program line up.  Here’s the link:  http://www.880thebiz.com/schedule/

Kinda interesting – here’s what it says about Dan Frishberg on the WZAB site:  “Dan Frishberg grew up in New York and has spent over 40 years studying money and the markets; especially the people who make up those markets. His life’s work has been to strip away all the jargon and finance babble. He talks about money in a unique language: plain English. Frequently appearing as a guest expert on CNBC television, Dan brings unique insights and a down-to-earth approach to investing.”

Perhaps it should say -

Dan Frishberg grew up in New York and has spent over 40 years studying money and the markets; especially the people who make up those markets. His life’s work has been to strip away all the jargon and finance babble, as well as people’s money as he has been charged by the SEC with investor fraud where Texas residents lost millions. He talks about money in a unique language: plain English, and sometimes that talk is so slick that it is quite persuasive even though Dan’s intent may not be for the consumers good. Frequently appearing as a guest expert on CNBC television, Dan brings unique insights and a down-to-earth approach to investing, which he is now banned from by the SEC.  We are proud to feature on our station a person who no longer has the right to offer investment advice, but has a clear way of communicating financial psycho babble so that investors can have no idea what’s really happening to their money.

Seems that the above is a bit more honest and transparent…but who am I to say…?

OOPS PROGRAM NOTE:

According to “The Money Man” website the following has been posted:

The MoneyMan Report Contract with KTEK Houston has ended. The station is currently in the process of being acquired by new owners. We expect the show to be back on the air in Houston in a few weeks.

In the meantime, Texas listeners can catch Dan on the live stream at 7am Central time each morning, by clicking on this link. Or simply click the “Listen Live” tab and tune into 880 The Biz, Miami.

Perhaps there is more to the story…stay tuned and let’s see what shakes out.  Maybe Salem isn’t that smart…maybe they really don’t care who broadcasts on their stations – even a person who’s been banned from investment advice by the SEC – Dan you really are “The MoneyMan”.

YOUR COMMENTS ARE WELCOME!


Dan Frishberg “The Money Man” Charged by the SEC with Fraudulent Conduct! BizRadio’s Scam Artist Exposed…

March 25, 2011

To be honest, as I pen this latest blog entry, there is no joy.  Yet, it is not a surprise either.  Dan Frishberg, despite his puffery and position – claiming to the “the Money Man” has finally been charged by the SEC for his role in defrauding numerous investors out of millions.  Today many now know that what has been claimed about Dan is true.  He has not acted in the best interest of his clients and as a result – one of the outcomes is that Dan “The Money Man” Frishberg is barred from association with any investment adviser or certain other registered entities.

The SEC News Release reads as follows in its entirety:

Washington, D.C., March 25, 2011 — The Securities and Exchange Commission today charged Houston-area businessman Daniel Frishberg with fraudulent conduct in connection with promissory note offerings made to clients of his investment advisory firm.

The SEC alleges that Frishberg’s firm Daniel Frishberg Financial Services (DFFS) advised clients to invest in notes issued by Business Radio Networks (BizRadio), a media company founded by Frishberg where he hosts his own show under the nickname “The MoneyMan.” Frishberg failed to tell his clients about BizRadio’s poor financial condition or his significant conflicts of interest with the note offerings that helped fund his salary at BizRadio.

Frishberg agreed to settle the SEC’s charges by paying a $65,000 penalty that will be distributed to harmed investors. He will be barred from future association with any investment adviser.

“Contrary to his obligations as an investment adviser, Frishberg approved risky investment recommendations to his clients without ensuring that the risks and conflicts were properly disclosed,” said Rose Romero, Director of the SEC’s Fort Worth Regional Office. “Frishberg personally benefitted from the questionable investments that were recommended to his clients.”

According to the SEC’s complaint filed in federal district court in Houston, at least $11 million in promissory notes were issued by BizRadio and Kaleta Capital Management (KCM), which is owned by Frishberg’s associate Albert Fase Kaleta. Frishberg and Kaleta jointly controlled BizRadio.

The SEC charged Kaleta and his firm with fraud in 2009, and the court appointed a receiver to marshal the assets of KCM and relief defendants BizRadio and DFFS.

The SEC alleges that Frishberg authorized Kaleta to recommend the notes to DFFS clients, and clients were not provided with critical disclosures. Investors were not told of BizRadio’s poor financial condition and the likely inability of KCM and BizRadio to repay the notes. Nor were investors informed about Frishberg’s significant conflicts of interest in the note offerings because the proceeds funded his salary as a BizRadio talk show host.

The SEC alleges that Frishberg chose Kaleta to recommend the BizRadio notes even though he was aware of complaints about Kaleta’s lack of truthfulness in sales presentations regarding other investments.

The SEC’s complaint alleges that Frishberg violated Section 206(2) of the Investment Advisers Act of 1940 and aided and abetted violations of Sections 206(1) and 206(2) of the Advisers Act.

Without admitting or denying the SEC’s allegations, Frishberg consented to the entry of a permanent injunction against these violations and to pay a $65,000 penalty. Frishberg consented to the establishment of a fair fund for the distribution of his penalty to harmed investors, and agreed to be barred from association with any investment adviser or certain other registered entities.

# # #

For more information about this enforcement action, contact:

Rose Romero
Regional Director, SEC’s Fort Worth Regional Office
(817) 978-3821

Stephen J. Korotash
Associate Regional Director, SEC’s Fort Worth Regional Office
(817) 978-6490

WHAT DOES THIS MEAN?

Well for starters…those who lost a whole bunch of money and thought they might get it back…well think again.  Dan’s $65,000 penalty is a small price to pay for the $11 million fraud.  To be clear, I have not had any inside information, but I suspect that Dan’s out of money otherwise I suspect the SEC would have exacted a larger fine as part of their role is to protect the public.  Oh well…

CRIMINAL INDICTMENT ON THE HORIZON?

Rose Romero, Director of the SEC’s Fort Worth Regional Office stated, “Frishberg personally benefited from the questionable investments that were recommended to his clients.”  So does this mean that he could be the target of a criminal indictment?

So we are all clear, the SEC has NO CRIMINAL enforcement authority – only civil.  Therefore the actions of the SEC are likely the best they could get under the circumstances.  Effectively they squeezed blood out of the turnip and barred Dan from any role as an investment advisor.  Now regarding criminal…well, as I’m told the statue of limitations is longer for any criminal issues, so I suspect that the US Attorney, FBI or others may still be looking into this case and (my opinion here) it might hinge on what Dan does next.  For example, if Dan were to “man up” and quit his radio show where he is still huffing and puffing about his wisdom…he might avoid more consequences.  On the other hand…should he stay on the radio and continue his advice (although who would want to listen)…then there might be more interest in criminal charges.

My guess is that if there are enough folks who have been harmed by the talented Mr. Frishberg who complain to the US Attorney or FBI, perhaps law enforcement will find the wisdom and logic to continue to investigate Dan Frishberg and extract consequences more fitting with his crime (that he did not admit).

PUBLICITY

One thing that Dan Frishberg liked is publicity…in fact, it seemed he craved it.  Well, he’s getting what he liked as he’s being reported on in the Wall Street Journal and other major news outlets.  Wonder, and I’ve got to ask, if Maria Bartiromo is going to interview Dan “The Money Man” again…or if she has finally figured out that is was all smoke and mirrors?

WANT YOUR VOICE HEARD?

If you feel that your voice needs to be heard here are two US Attorney’s that could be contacted – one in the Southern District of Texas (Houston Area) and one in the Northern (Dallas).  I suspect the Houston US Attorney is the one who would have the most interest, but since the SEC in Fort Worth brought the charges…I’m providing both.

José Angel Moreno, US Attorney Houston
P.O. Box 61129
Houston, TX 77208
(713)567-9000

James T. Jacks, US Attorney Dallas
1100 Commerce Street, Third Floor
Dallas, TX 75242-1699
(214)659-8600

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WHAT DO YOU THINK ABOUT THIS SEC OUTCOME?


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