The BizRadio Saga – Albert Kaleta, Daniel Frisberg and David Wallace…this is the stuff bad movies are made of…

Is it that the ego is too big for the right thing to be done or it is that this is just a bad movie – only no one is shooting film?  The longer this saga continues the more I’m sensing that there is “tarnish on the microphone” – Mr. Frishberg.

LET’S REVIEW:

Albert Kaleta and Daniel Frishberg are (well “were” in the case of Kaleta) investment advisors, both having investor funds that were apparently under their direction.  Kaleta was the subject of an SEC suit in which Kaleta surrendered (I suppose you’d call it that) his license (in other words he is not supposed to be active in investing funds for others) and agreed not to involve himself with any other investment advisor(s).

The Order bars Kaleta from association with any investment adviser. Kaleta consented to the issuance of the Order without admitting or denying any of the findings in the Order, except as to the entry of the injunction, which he admitted.

So far so good…  Now it seems that Frishberg got to keep his investment license and, therefore, the ability to continue his investment activities (for which I’m told he’s pretty good at).  However, he and BizRadio were sued by the SEC.

The Commission also sued two other entities, Business Radio Network, L.P. d/b/a BizRadio (BizRadio) and Daniel Frishberg Financial Services, Inc. (d/b/a DFFS Capital Management, Inc.) (DFFS) as Relief Defendants solely for the purposes of equitable relief.

Now…a new party to me enters the picture.  Apparently, David Wallace, former mayor of Sugarland, Texas and his investment partner Mr. Bajjali have been active in several successful real estate investment funds.  David Wallace is the Chief Executive Officer and Secretary of General Partner and Chairman of the Investment Committee for Wallace Bajjali Development Partners.  Also, David wrote the book –  “One Nation Under Blog.”  Wallace has an impressive track record.

However, my sources tell me that in one of their last investments (primarily real estate), Wallace placed a portion of the private investment with BizRadio (you know where the microphone is tarnishing these days).  Without verification, I am told that the Wallace Bajjali investment in BizRadio was some $5 million.  I am further told that Albert Kaleta was instrumental in bringing private investors to the table for the Wallace Bajjali investment offering.  In fact, I am told that the subscription agreement that some (I don’t know how many) of the investors signed were signed in Albert Kaleta’s office.

There must be some truth that Wallace Bajjali invested funds with BizRadio otherwise why would they have a UCC Filing with a lien on the company?  See below:

NOW IS THAT A PROBLEM? In an of itself – NO.  Albert Kaleta was reported to be a great investment closer.  Reportedly, Wallace would put the deal together (in many cases public-private partnerships) and Kaleta (with his extensive investor network) would bring investors to the table.  Seemed to work for all concerned…till the SEC got involved.

SO HERE ARE SOME QUESTIONS:

  • If Kaleta was, in fact, (can’t confirm at this time) an active supplier of investors for Wallace Bajjali – does Kaleta’s prohibition from associating with investment advisors have a negative effect on finding future investors that Wallace Bajjali might need for upcoming projects?
  • What impact does the Wallace Bajjali investment in BizRadio have on their reputation with current investors or future investors, if any?
  • Is Daniel Frishberg’s insistence that Ron Crider was some “rogue radio guy” going to stand up to scrutiny when all the truth comes to light?  (I don’t know but it sure seems that Ron Crider had Frishberg’s blessings till his deal with 1180 AM went south).
  • Since Wallace Bajjali clearly has an interest in BizRadio…do they have the clout to take control of the operation and protect their investment?
  • Is it true that BizRadio and Daniel Frishberg are behind in their payments to their San Antonio station owner and behind in their payments to Salem Communications (the company they bought 1110 AM from)?  What impact does this have on BizRadio’s ability to continue as a going concern?
  • If so, what impact does that have on the value of the BizRadio business on a move forward basis?
  • One judge ruled in favor of Siddiqi giving him a Temporary Restraining Order thereby keeping him on the air.  Then (for some reason) another judge got the case and ruled in favor of Frisberg.  Why two judges?  Coincidence there was a change of judges or politics at play (judge shopping)?  Perhaps there is a simple explanation…  Thanks to Sarah Duckers (see the comment below) there is a simple explanation.  Thank you Sarah for your input!
  • Lastly, while it is reported that Daniel Frishberg produces consistent returns for his investors (funds he controls for others), is there evidence that Daniel Frishberg is an effective businessman when it comes to the operation of a radio station for profit.  (I submit, just because I can fly an airplane, does not make me qualifies to design the doggone thing.  Just a thought.)

I suspect that David Wallace is wondering what the hell happened?  Likely, knowing the astute businessman he is, David is figuring out how to protect his investors from what appears to be the Daniel Frishberg ego implosion.  The remaining question is…when will reason and sense prevail?  Perhaps, if logical action is taken quickly, the microphone can be repolished and everyone go back to doing what they do best.

LET’S HOPE FOR INVESTORS SAKE…Frishberg doesn’t take everyone down with BizRadio.

COMMENTS ARE WELCOME…

Advertisements

6 Responses to The BizRadio Saga – Albert Kaleta, Daniel Frisberg and David Wallace…this is the stuff bad movies are made of…

  1. Sarah Duckers says:

    There is a simple explanation for the change in judges. In Harris County, when a case is filed, it is randomly assigned to one of the 24 civil district courts. The Asia Vision case against Biz Radio was assigned to the 152d district court. However, when a temporary restraining order is requested (on an ex parte basis) the ancillary judge for that week(one of the sitting district judges, on a rotating basis) hears the application. Last week, the ancillary judge was Judge Patricia Kerrigan. She granted the TRO and set the hearing on temporary injunction with the court to which the case was assigned (Judge Robert Schaffer). Biz Radio had no say in which court the case was assigned to, or which judge heard the TRO.

  2. Matt Shannon says:

    Frishberg is an idiot. He put several good qualified people out of work…and now he will pay. It’s too bad his wife won’t get him out of this one. The gaval is about ready to come down on the Bizradio family and hard!

  3. […] get a sense of the broader picture.  Blog 1.  Blog 2.  Blog 3.  Blog 4.  Blog 5.  Blog 6.  Blog 7.  Blog 8.  Blog 9.  (O.K. it’s a big […]

  4. Texas Gal says:

    True, Kaleta did bring investors in and then he and Daniel would charge a fee for placing money with WB. Every year same fee (ranged from 1 % to 2% or higher)was being charged over and over, on the same money that David was managing. Yet investors had no access to their money.

  5. ex-employee says:

    I worked at BizRadio for over 2 years (04-06). I attended several investor meeting and watched Frishberg and Kaleta B.S. investors into giving more money for a sinking ship. Your article is “right-on”, Frishberg is con-man pure and simple. But as far as his abilities as an advisor, he pays his right-hand man Karl Eggerrs good money to make him look good. Frishberg knows how to appear competent – but he’s not.

  6. cb trammell says:

    found dan. f. honest-albert no not honest.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: