Reported in the Houston Chronicle today…A state district judge signed a temporary restraining order against BizRadio and its CEO, Daniel Frishberg.
The TRO came at the request of Rehan Siddiqi, whose Asia Vision broadcasts Pakistani, Indian and South Asian programming. At the beginning of the year, Siddiqi and BizRadio essentially changed places on the AM dial. BizRadio moved to the higher-powered 1180 AM, while Siddiqi moved to 1110 AM, which BizRadio owns.
QUESTION: Considering much of BizRadio’s funding came from the investors who apparently didn’t know they were investing in the BizRadio operation, how is it that BizRadio owns a station? And, is that station an asset that would need to be liquidated in order to repay the loans that BizRadio and Daniel Frishberg has an obligation to repay?
Siddiqi paid BizRadio $180,000 to lease 1110 AM for six months, with an option to buy the station for $3.5 million. The deal was negotiated by Ronald Crider, who signed the documents as the co-president of BizRadio’s parent company. Siddiqi also produced a receipt for the money, included in the documents he filed with the court, that was signed by Albert Kaleta, president of the BizRadio Network.
NOTE: Albert Kaleta and KCM, without admitting or denying the complaint’s allegations, have consented to permanent injunctions against future violations of the antifraud provisions, as well as an order appointing a receiver. The Court will determine the amount of disgorgement and civil penalty that will be assessed against Kaleta and KCM.
Named as “equitable relief defendants,” BizRadio and Daniel Frishberg Financial Services, also known as DFFS Capital Management share a responsibility to repay the money.
Monday night at about 10 p.m., Siddiqi got an email from Frishberg saying that Asia Vision was to stop broadcasting on 1110 AM immediately because it had failed to consummate the terms of the deal, according to a copy of the message included in court records. At 7 a.m. Tuesday morning, BizRadio’s programming replaced Siddiqi’s, and Siddiqi went to court to get the restraining order.
Frishberg, who broadcasts as “The Money Man,” claims Crider was never an employee of BizRadio or any of its affiliates and was never authorized to enter into the deal with Siddiqi. He claims Crider and Siddiqi conspired to get control of 1110 AM by paying far less than the station was worth.
I DON’T GET IT: Albert Kaleta signs the documents and Frishberg is ” The Money Man” – so how is it now he finds that the deal should be undone. Seems that either he’s being pinched to repay money that he’s co-responsible for or he’s not “The Money Man” he represents himself to be. Either way, something doesn’t smell right. Whatever the outcome, these events certainly cast a long shadow on BizRadio, Daniel Frishberg and the credibility of his operation.
The full article from the Houston Chronicle is here.
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