Dan Frishberg and Bill Heath of Barrington Finacial Advisors, Inc. UNITE? – Investor Alert

Don’t let the title put you off.  There may be nothing here other than information provided by several investors or former investors of Daniel Frishberg and DFFS.  But, with all that has been swirling lately, it would seem that transparency is the order of the day and the email I am received thanking me for what I am able to share seems to support the need and desire for transparency.  So here goes…

I was told sometime back that in light of the SEC agreement with Kaleta and KCM (Kaleta Capital Management), Dan Frishberg was rapidly moving his investment funds from A to B in order to (ostensibly) take advantage of a better brokerage deal, but (perhaps) to change “ownership” so that the SEC would find nothing in Dan’s name.  Then today I was notified of the following (please note that names and identifying information has been removed as the source is not relevant):

I am a victim of KCM and also a client of Dan Frishberg.

I have been following your articles and I have some additional information you may find useful.

Shortly after KCM blew up, Dan’s “chief trader” Karl Eggers (http://karleggerss.com) suddenly stopped appearing on Dan’s show and his own show ‘Through a Traders Eyes’ on BizRadio went off the air.  It looks like he has since started Eggerss Capital Management http://www.eggersscapital.com/. It is not clear if Karl was involved but it seems like he distanced himself from Dan.  According to the ADV Part II form on the site Karl left DFFS in December.

I was told personally by DFFS/BizRadio/KCM employee (NAME REMOVED) that Ron Crider was the new CEO of bizradio just a few weeks before the legal action. (THAT SEEMS TO BE SUPPORTED BY MANY OTHER SOURCES) In this same conversation I was also informed that they were moving their managed accounts from Fidelity to Schwab for better trading rates and wider availability of bonds. (THAT TOO IS SUPPORTED BY OTHER SOURCES).  They were also joining with Bill Heath, CEO of Barrington Finacial Advisors, Inc.  Barrington will become the registered investment advisor and Dan will serve as portfolio manager and consultant. (THIS IS WHERE THE SUSPICION COMES IN – SINCE FRISHBERG AND BIZRADIO WAS A PARTY TO THE SEC AGREEMENT WITH KALETA – THE CONCERN WAS THAT FRISHBERG WAS MOVING ASSETS IN ORDER TO AVOID SEC SUSPICION AND POTENTIALLY REPAYMENT RESPONSIBILITY.  HOWEVER, THAT HAS NOT BEEN SUPPORTED WITH FACTS).

At this point I am pondering if I should continue having my money managed by Dan/Barrington. I only got in trouble when I got involved with KCM and accounts are held at fidelity/schwab which I believe is in contrast to what Madoff was. I got caught in the KCM trap just as the doors were slamming shut. I only invested a small amount (as learned by listening to Dan) of my total worth but others were not as fortunate. I only ever received one partial interest payment and then the hammer fell.

This whole mess is just terrible. I love BizRadio and even attempted to become an investor because I believe in the format. I have followed Dan since he came to Houston and was even listening to his last broadcast on AM 650 when he decided to create his own station because 650 had been ruined by bringing in Howard Stern and changing formats.

Thank you for continuing to follow this story.

First, you’re welcome.  I am still mystified that Dan Frishberg has not been forthcoming, considering the media attention, with an ethical explanation of what is taking place, his plan to take care of the investors and willingness to answer questions (which I have repeatedly asked through various forms) which would show acceptance of responsibility and transparency.

Let me state for the record, if, in fact, Dan has changed DFFS’s assets to Barrington Finacial Advisors, Inc. and that change is to benefit the investors – then that would be a positive move.  If, that change has taken place, and the motive is, as some assume, to hide or shelter assets from a further SEC investigation – God help them.  For the investors of either BizRadio or DFFS – I wish you the best.  More info to follow.

OF COURSE, COMMENTS ARE WELCOME.

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2 Responses to Dan Frishberg and Bill Heath of Barrington Finacial Advisors, Inc. UNITE? – Investor Alert

  1. Winsome Wit says:

    Chuck,

    Lets entertain this possibility from folks inside:

    Post SEC penalties levied against Kaleta the phone rings around the DFFS offices and the caller asks for Kaleta to get some financial advice. Kaleta picks up and in reality its Fidelity -the DFFS broker at the time- that knows that Kaleta isn’t even suppose to be in the office, let alone answering calls from potential investors. Fidelity who is the most conservative B/D will have none of DFFSs shenanigans and issues them a termination notice sending them into a panic to find another B/D for the some 1200 victims of DFFS.

    Add these questions to your list:

    11. What were the circumstances surrounding your departure from Fidelity? (Don’t lie, as former clients know the truth)
    12. Was Fase (Kaleta) still seeing clients after he was enjoined but was just having someone else sit in?
    13. Did you have a deal with Schwab to move your clients to their B/D or was that just a sham you were telling clients to buy time?
    14. Are you still maintaining that your knowledge of what Kaleta was doing with the money in KCM, many of your clients lost, you had no knowledge of?
    15. Where is Laffer is all this mess? Dr Rutledge?

    Let me just add, Barrington Finacial Advisors, COME ON, what kind of monkey can’t see what he is doing here. If you can get your hands on their ADV (Disclosure statement) before they doctored it up for you know who, tell me you don’t see the smoke and mirror now coming down the line.

  2. Bizz Free says:

    Good stuff Chuck and please keep up the good work. So far, you seem to be spot on. I recently heard a rumor that if all the investors decided to roll their funds elsewhere, could be some even bigger problems.

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