BizRadio was a “loss leader” – so said Dan Frishberg according to many sources who heard the comments. Look at the model and there was no way it could ever make money. Unless…? Unless the RIA that Frishberg was responsible for was an asset of BizRadio and, therefore, the money it created on a quarterly basis become a resource for paying the overhead.
Makes sense, except that Frishberg, from everything that I have seen, transferred the RIA to another investment firm to protect it and none of the monies it kicked off have been directed back to investors who are stinging from losses. IF THAT IS NOT TRUE, PLEASE FEEL FREE TO CORRECT ME WITH YOUR COMMENTS BELOW. I think, however, it is true.
So, what was Dan’s intent? Next that follows is material prepared by BizRadio for investors. Read it and let’s look at the content.
More importantly, we start pulling in assets in the RIA and that’s the most profitable part! Dan Frishberg told the truth here. The question is – if that is the most profitable part then why is that conspicuously missing from the apparent assets of BizRadio today?
This document was written in December 09 and was part of a promotion presentation for bringing on line Seattle, Salt Lake City, Charlotte, Indianapolis and St. Louis. Notice two very obvious things: (1) the date is confirmed as it mentions Ron Crider and that is the time he was there (ostensibly as CEO) and (2) it touts Al Kaleta (even though by that time he was busted by the SEC and shouldn’t have had any activity with BizRadio).
I may not be the sharpest knife in the drawer, but I can cut butter…and this seems to be a clear statement of Frishberg’s intent to include his prize RIA as part of the BizRadio assets. Further, this material seems to show his intent to defraud as many of the statements made are just not true, but rather stated in order to increase investments in BizRadio which was headed down the slippery slope of decline in December of 2009. It’s one thing to make a mistake on an investment – sometimes things just don’t turn out as planned – and quite another to keep up an illusory front in order to gain more money when any other reasonable person could see that most of this is just a sham.
What’s the outcome…? Who knows today? But, one thing is for sure. The cards are falling and the outcome is looking less and less promising.
YOUR COMMENTS WELCOME.