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!


After dropping the ball on the Bernie Madoff scandall – the SEC changes its focus on Tips!

July 31, 2011

Sometimes government agencies just don’t get it…they miss the obvious and ignore competent data that’s provided through tips.  Perhaps they aren’t staffed to follow up.  Perhaps they feel that most tips are grudge tips and not credible.  Who knows?  But after the Madoff scandall – the largest Ponzi scheme in US history, the SEC has now changed their focus when it comes to tips.  Below is a well written article that shows the power of tips and it’s impact on busting fraud wide open.

(Sarah N. Lynch and Matthew Goldstein) – For more than three years, U.S. securities regulators investigated allegations of accounting fraud at a small telecom firm called China Voice Holding Corp, but could not make a case.

Then last November, they got an unexpected break. A Texas-based tax consultant doing work for a firm affiliated with China Voice contacted the U.S. Securities and Exchange Commission with information about suspicious money transfers she’d detected.

The call from Dee Dee Stone was quickly routed to a preliminary version of the SEC’s new $21 million “Tips, Complaints and Referrals” or TCR Database, which the agency later fully deployed in March. Within 24 hours, Stone, a former Internal Revenue Service agent, got a call from an SEC attorney spearheading the China Voice inquiry.

Five months later, the SEC on April 29 sued several China Voice executives, claiming they had duped investors out of $8.6 million in a Ponzi scheme. Agency lawyers say without Stone’s help, regulators may not have even discovered the scheme, let alone made a case so soon.

The alleged fraud at China Voice was small in the annals of Wall Street sins. But the SEC’s response to Stone is an indication that after dropping the ball on Bernie Madoff, the nation’s top securities cops are trying to modernize the way they handle tips and complaints about potential wrongdoing.

The TCR Database is the SEC’s most significant response to its well-documented fumbling of early tips about Madoff’s $65 billion fraud. The SEC’s new Office of Market Intelligence, which last summer also forged a first-of-its kind partnership with the Federal Bureau of Investigation, is using the database as a key tool.

The changes are part of an effort by SEC Chairman Mary Schapiro to overcome the agency’s reputation for being a step or two behind the bad guys. It is far too soon for the SEC to declare victory. But some of the agency’s harshest critics notice a change.

Among them is Harry Markopolos, the Boston-based financial analyst and fraud investigator best-known for trying to alert regulators about problems with Madoff’s operation. Markopolos said since the database went into operation, he has submitted three of his own tips. In all three cases, he heard back from an SEC attorney within days, or in one case, a few hours.

“Everything they should have done in the Madoff case they are now doing,” said Markopolos. “They have done a fantastic job of reforming themselves.”

In February 2009, Markopolos told the House Committee on Financial Services that the SEC’s “investigative ineptitude and financial illiteracy” permitted Madoff’s crimes to go on for so long.

PAPER, PENCILS & FAXES

It took the embarrassment of the Madoff scandal to drag the SEC into the 21st century when it comes to tracking tips and complaints.

Tips used to come via phone calls, e-mails, faxes and even handwritten letters into the SEC’s 11 regional offices and Washington headquarters. Before the Madoff case, the SEC’s Los Angeles office might receive a written complaint about a bad broker, for instance, and stuff the letter into a filing cabinet if it was deemed without merit. So, if later on a complaint about the same broker was sent to the SEC’s Chicago office, staff there would have no easy way of knowing about the earlier tip and connecting the dots.

Sometimes, the only way an attorney could find out if someone had looked into a complaint would be to call all the other SEC offices.

“It was a sieve, basically,” says Russ Ryan, a partner in the Washington law office of King & Spalding who spent a decade at the SEC before leaving in 2004. “It probably got better as I went along in my career, but I remember back when I first started there, it was a lot of paper and pencil type stuff.”

Now with the TCR Database, once a tip or complaint is entered into the system, about 2,300 SEC employees can see it and add new information.

“All of the plumbing was brought into one place,” said Thomas Sporkin, a nearly 19-year veteran SEC attorney in Washington, who oversees the agency’s new Market Intelligence Unit and its 41-member team.

The database is emerging alongside a new program by the FBI’s criminal profiling group in Quantico, Va. that is creating a series of behavioral composites to help agents investigate white collar crime.

The more systematic approach by the SEC and FBI comes in response to the growth and complexity of financial crimes in recent years. In the US government’s 2010 fiscal year, the FBI’s economics crime unit reports the bureau had 1,703 active securities and commodities fraud investigations, a 41 percent increase over the number of active investigations in 2008.

Over the past year, the amount of monetary penalties the SEC has imposed on wrongdoers has almost tripled, with high-profile cases against companies such as Goldman Sachs, Citigroup and Morgan Keegan for their roles in the crisis.

Sporkin’s 41-member Market Intelligence Unit last month moved into new offices in Washington that look a little bit like a Wall Street trading floor, where they process more than 100 tips, complaints and referrals that come in each day.

The group’s chief task is to ensure legitimate tips, like the one from Stone about China Voice, get routed to the right attorneys. The triage process begins with analyzing the information provided by tipsters, whistleblowers and self-regulatory organizations on an online questionnaire in the TCR Database portal.(here)

The SEC is also trying to revamp the way it uses the raw data it gathers. Sporkin’s team is working side-by-side with an FBI expert in financial crimes under a deal agreed to last August.

The FBI agent gets to look at all the tips about securities fraud as they come into Sporkin’s team. For the FBI, the partnership offers the promise of faster criminal investigations. For the SEC, it’s a chance to learn a trick or two from law enforcement.

Having an FBI agent embedded with the SEC “is really revolutionary,” Sporkin said.

Other regulators are trying to set up their own FBI partnerships, including the Commodity Futures Trading Commission, which regulates the futures and over-the-counter derivatives market. The CFTC, which declined to comment, has also been closely studying the operation of Sporkin’s team.

THE FBI EMBED

Jeffrey Horner, the FBI agent embedded with Sporkin’s group, is an accountant who worked for audit giant PriceWaterhouseCoopers before joining the bureau in 2004.

Horner says he’s not allowed to talk about specifics, but the nearly year-long partnership has led to new leads and bolstered existing FBI files.

“Some of the raw data that comes into the SEC, the (FBI) case agents may not be aware of,” he said. “So plugging them in with the SEC and the information that the SEC has can be very valuable to an ongoing investigation.”

FBI agent Horner is also sitting in on two SEC working groups examining micro-cap fraud and Chinese businesses that have done so-called reverse mergers with small U.S. shell companies. The FBI has opened its own broad investigation into reverse mergers and allegations of accounting irregularities.

Horner also uses the SEC’s tips system to drill into areas of particular interest to the FBI. Right now, for instance, he is on the lookout for tips about high-yield investment scams as well as high-priority areas such as insider-trading and market manipulation.

The real test of the partnership — and the effectiveness of the TCR Database — will lie in the kind of cases the SEC and federal prosecutors file.

An independent analysis of the work of Sporkin’s team could come when SEC Inspector General David Kotz conducts a planned audit of the Market Intelligence Unit’s triage work. Kotz, who issued a scathing report on the SEC’s failures in the Madoff affair, has called the new database an adequate response to ensure tips are “acted upon in a timely and appropriate manner.”

Former SEC lawyers and securities attorneys wonder whether more agents need to be assigned to the SEC-FBI partnership.

“My sense is that there would be so many things going across that person’s desk, I am not sure one person can manage it,” said James Cox, a law professor at the Duke University School of Law.

Officials with the SEC and the FBI don’t rule out an enhanced relationship. They note that before Horner was embedded with the SEC, the two agencies coordinated on major investigations, such as the probe into insider trading by hedge funds.

At the same time, officials say they are sensitive to law enforcement protocols prohibiting prosecutors and the FBI from sharing investigative materials, such as wiretapped conversations, with securities regulators. They say it’s easier for the FBI and SEC to work hand-in-hand before an investigation gets going to avoid any defense allegations of improper collaboration or information-sharing.

REWARDING WHISTLEBLOWERS

Sporkin’s group is a work in progress and the TCR Database has some limits. It can’t yet be cross-checked against other internal databases. The system s not advanced enough to perform more sophisticated analysis or data-mining, such as cross-checks against trading activity, company filings or news feeds.

“It will be several years before we really see whether this new system is a success,” said Bradley J. Bondi, a former SEC attorney who is now a partner with Cadwalader, Wickersham & Taft LLP. “But I think the new system is a step in the right direction.”

It’s a system Sporkin expects will become bigger and better over time, especially now that the SEC in May finalized rules for its own whistleblower program, rewarding individuals who provide the agency with a high-quality tip that leads to a successful enforcement action.

Stone’s tip about the potential Ponzi scheme at China Voice came in November 2010, after she says she grew concerned about the number of complaints she was hearing from investors in China Voice and related partnerships.

On May 31, Stone, testifying before a U.S. judge in Dallas in the China Voice case, said she learned about the new whistleblower rule only after hiring an attorney in advance of her court appearance. Her attorney, Misty Gutierrez, declined to comment; Stone didn’t return telephone calls to her consulting business, Number Crunchers.

Stone told U.S. District Judge Reed O’Connor she started reviewing the bank statements for China Voice and those related companies after hearing the complaints, and quickly concluded, “something was wrong.”

She talked about the money transfers with a friend who also once worked for the IRS and agreed the math didn’t add up. The next day, Stone said she called the SEC.

(Editing by Bill Tarrant)

Copyright 2011 Thomson Reuters.

QUESTION: Do you think that you have information that would help law enforcement in discovering or uncovering fraud?  If so, would you be willing to share that in the form of a tip?  Not asking you to do that here on this blog, but rather discuss why you would or why you wouldn’t.

YOUR COMMENTS ARE WELCOME!


David Wallace and Costa Bajjali fined by the SEC for BizRadio related issues! Will Investors Be Made Whole?

May 24, 2011

David Wallace is the author of “One Nation Under Blog: Forget the Fact and Believe What I Say” – wow…I was reminded of that as I began this post and thought how telling.  David and Costa wanted investors in their private placements and it seemed that they wanted investors to “forget the facts” and believe what they said…although what they said led to massive losses when they over invested in the money losing BizRadio driven by Dan “The Money Man” Frishberg.

Fined by the SEC for their roles in misleading investors – David Wallace and Costa Bajjali each have agreed to pay a $60,000 fine.  The SEC news release states the following:

On May 20, 2011, the Commission filed suit in U.S. District Court for the Southern District of Texas against Houston area real estate developers David Wallace and Costa Bajjali in connection with two fund offerings. This suit is a related case to SEC v. Albert Fase Kaleta and Kaleta Capital Management, Case No. 4:09-cv-03674 (filed November 13, 2009) and SEC v. Daniel Sholom Frishberg, Case No. 4:11-cv-01097 (filed March 23, 2011).

The Commission’s complaint alleges that from November 2006 through December 2008, Wallace and Bajjali offered and sold interests in the Wallace Bajjali Investment Fund II, L.P. (“WB Fund”) and the Laffer Frishberg Wallace Economic Opportunity Fund, L.P. (“LFW Fund”). The complaint further alleges that the private placement memoranda (“PPMs”) for these funds stated that investment in any one business would be limited—to 33% in WB Fund and 20% in the LFW Fund.  Both funds exceeded the PPMs’ stated limitations by investing heavily in Business Radio Networks, L.P. d/b/a BizRadio, a struggling media company. As a result, they subjected the Funds’ investors to substantially greater investment risk than the Fund’s written materials disclosed.

The complaint alleges that Wallace and Bajjali violated the Sections 17(a)(2) and (a)(3) of the Securities Act of 1933. Without admitting or denying the Commission’s allegations, Wallace and Bajjali each consented to the entry of a permanent injunction and to pay a $60,000 civil penalty.

The actual SEC Complaint is here:  SEC Complaint – David Wallace Costa Bajjali

The Amarillo Globe News reports the following:

“When we sell the real estate,” Wallace said, “we believe we will be able to absorb whatever we’ve written off as it relates to news radio.”

In written disclosures related to the securities offerings, the suit says, Wallace and Bajjali told investors the funds’ investments in any one business would be limited to no more than 33 percent from the Wallace Bajjali Investment Fund and no more than 20 percent from the Laffer Frishberg Wallace Economic Opportunity Fund.

By May 2007, $6.5 million, or 40 percent, of $16 million raised under the Wallace Bajjali Fund had been invested in BizRadio, the suit says. By the time the Opportunity Fund closed in December 2008, roughly 57 percent, or $4 million, of about $7 million raised had been invested in BizRadio, the suit says.

The result was that Wallace and Bajjali, “subjected the Funds’ investors to substantially greater investment risk than the Funds’ written materials disclosed,” according to SEC filings.

Wallace called it a “technical” problem, saying he and Bajjali thought other money was being raised for the two funds that would have ensured that the limits were not surpassed.

The $120,000 fine wasn’t the only payment Wallace and Bajjali had to make in this case. Last November, in negotiations with Thomas Taylor III, the Houston attorney who is overseeing the SEC-ordered receivership of KCM, Wallace has paid back $92,348 and Bajjali has paid back $45,550 to date, according to the publicly available information. At that time, Taylor said negotiations are ongoing about further repayments by Wallace and Bajjali.

REALLY DAVID A TECHNICAL PROBLEM?

Sorry, but sometimes you have to call bull s**t when you see it.  Technical problem my ass!  David and Costa got their hands slapped when most who lost substantial monies likely feel that more is in order.  It is not a TECHNICAL PROBLEM when you substantially commit massive funds into an investment that you know is a losing proposition hoping that more investor funds would be forthcoming so that you could then avoid the TECHNICAL ISSUE.

SO HERE’S THE QUESTION DAVID – If, as you stated, when you sell the real estate you will be able to absorb what you’ve written off related to news radio – does that mean that the investors who lost millions at your hand will be made whole?  WILL INVESTORS BE MADE WHOLE?  That’s a question those who lost millions would like an answer to.  DAVID WHAT’S THE ANSWER?

THE NEXT QUESTION:  For those who were lucky enough not to be sucked into the Dan Frishberg scambus…doesn’t that mean that their gains (you know when the real estate sells) will be less?  David…REALLY DOESN’T EVERYONE LOSE HERE?

Put clearly – David – if you had followed the terms of your investment private placement memorandum – BizRadio and Dan Frishberg would have been out of business long ago and you would have not been embarrassed at their hand.

The Amarillo report also says:

“We have been impressed with the level of transparency in this issue, as David Wallace has kept us informed throughout the SEC process,” Amarillo Mayor-elect Paul Harpole said in a Wallace Bajjali news release. “We are pleased with this positive resolution and appreciate Wallace Bajjali’s forthright, thorough and ongoing communication about the issue.”

Melissa Dailey, executive director of Downtown Amarillo Inc., the nonprofit group leading downtown redevelopment, said in a statement: “The SEC review ended with a settlement announcement noting a single technical error regarding a Fund managed by Wallace and Bajjali.”

Perhaps David has figured out – stick to Real Estate and out of Radio!  My hope is that the profits from the Amarillo venture might be used to pay the investment losses from David’s mind fart in investing in BizRadio.

YOUR COMMENTS ARE WELCOME!


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

SHARE YOUR VOICE -

WHAT DO YOU THINK ABOUT THIS SEC OUTCOME?


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