Talking about twists and turns – this whole BizRadio, Al Kaleta, Daniel Frishberg mess gets more amazing by the day. At times I’ve wondered if the “fraud” (labeled by the SEC Receiver) was blatant or if these guys were just plain stupid. Quickly I’m coming to believe the answer is just “greedily” blatant!
A small part of the SEC Receiver’s document to the District Court stated the following:
Kaleta made similar misrepresentations concerning Masterpiece sculptures purchased with KCM assets. When asked by the Receiver to turn over the four sculptures identified by Kaleta, the Receiver was informed that the sculptures had been moved from the KCM/BizRadio/DFFS offices to Kaleta’s home. Kaleta agreed to return the four sculptures to the KCM/DFFS/BizRadio office for collection. Kaleta assured the Receiver through counsel that there were no other sculptures that remained undisclosed. The Receiver’s repeated requests for confirmation were met with repeated assurances that there were only four sculptures and that they had already been turned over to the Receiver. This was false.
The facts were uncovered during the Receiver’s telephonic collection efforts to note holders. He contacted Masterpiece to demand repayment of it’s $100,000 note to KCM. Masterpiece’s principal referenced a number of other sculptures purchased by KCM but delivered to or picked up by Kaleta. When asked to provide supplemental information, Masterpiece delivered to the Receiver detail regarding sculptures in Kaleta’s possession that had not been disclosed. In response to the Receiver’s subpoena and already confronted with evidence that the Receiver had received from Masterpiece, Kaleta admitted possession of the sculptures and agreed to deliver them to the Receiver.
So Kaleta lied! Caught in the web of his own deceit Kaleta is busted when it comes to credibility in light of an ongoing SEC investigation. NOT GOOD! When the criminal aspects of this take hold – and rest assured they will take hold – the outcome is likely not going to be pretty for Al Kaleta – the man who bragged about getting fellow comrades incarcerated since they crossed him.
But, how does this tie into the whole BizRadio – Daniel Frishberg thing? See the agreement below. Perhaps that might shed some light on the subject:
_________Masterpiece Investments________
Reciprocal Trade Agreement
Date: August 2, 2009
The following, when signed by you, Mark Ghiglieri and Masterpiece Investments (COMPANY) and Biz Radio Network, will constitute our reciprocal trade agreement relative to an exchange of radio advertising time on station BizRadio KTEK 1110 AM – Houston, KVCE 1160 AM—Dallas, KTMR 1130AM—San Antonio.
We hereby agree to furnish Company, broadcast time on BizRadio KTEK 1110 AM – Houston, for commercial announcements to advertise fine arts and sculptures.
- Time shall be accorded you in the amount of $100,000.00 computed according to our rate card in effect at the time the commercial announcements are placed on the station. House talent and regular production are included in rate. It is agreed that no agency commission is payable, such commission having been included in the dollar value of the time to be furnished you hereunder.
- Any request for specific talent, announcer or special production in connection with said announcements, shall be paid for, in cash, by you upon receipt of the invoice. Such charges shall not be included in computing the dollar value of the broadcast time furnished by station(s) to you hereunder.
- In exchange, you agree to furnish us with the following merchandise, as sole payment to the Biz Radio Network: The BizRadio Sculptures (TBD) worth $100,000.00.
- BizRadio agrees to reimburse COMPANY, the hard costs on all sculptures that are sold, at an agreed upon price up front, registered by serial number, after each sale, with the net proceeds going to BizRadio.
- You agree to furnish Biz Radio Network with serial numbers to be used for the purpose of accounting and fulfillment records for the aforementioned scrip.
- All announcements hereunder shall be subject to the terms and conditions of Station’s Standard Contract for Local Broadcasting.
- Advertiser will indemnify and hold harmless the Agent and the Station from and against all claims, demands, debts, obligations or charges (including reasonable attorney fees and disbursements) which arise of or result from the broadcast and/ or website advertising schedule. The provisions of this paragraph shall survive the termination or expiration of this agreement.
- Announcements provided for above shall be broadcast run of station (ROS) between start of station broadcast day and end of station broadcast day (Monday-Sunday) and are subject to availability. The Station(s) shall have the right to capture any time periods offered hereunder for any reason whatsoever. Charges will be made only for spots actually broadcast, and for which affidavits of performance showing the exact times are furnished. Schedule must run within one year of date of this agreement unless a prior arrangement is made and agreed to by station.
- This Station does not discriminate in the sale of advertising time and will accept no advertising which is placed with intent to discriminate on the basis of race, gender, or ethnicity. Advertiser hereby certifies that it is not buying broadcast air time under this advertising sales agreement for a discriminatory purpose, including but not limited to decisions not to place advertising on particular stations on the basis of race, gender, national origin or ancestry.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered effective as of the date first written above.
BusinessRadio Network, LP
By: _____________________________________________
Doug Roach – General Manager
Dated:__________________________________________
Account Executive: _________________________________
Jack Warkenthien—VP of Sales
Dated:___________________________________________
ACCEPTED AND AGREED:
Masterpiece Investments
By: ______________________________________________
Mark Ghiglieri
______________________________________________
President
Dated:___________________________________________
COMMENTS: It’s 2009 and as evidenced by this agreement, again BizRadio agrees to provide (shall we say) “advertising” in exchange for sculptures that somehow end up at Al Kaleta’s residence. The company is barely making payroll and yet the business of the day – advertising for art. IF THIS IS AN EXAMPLE OF BUSINESS ETHICS – well… I throw my hands up…fraud is fraud and it sure seems that the BizRadio folks were more than knee deep in it. Personally, I feel for the investors and hope they are able to get something back. Perhaps their best hope is the actual sale of the station… For now, only time will tell.
As always – YOUR COMMENTS ARE WELCOME!
Motivational Speaker - Chuck Gallagher Business Ethics and Choices Expert 
And how he used to brag about those sculptures…Al was so proud. Good job looking into the “trade agreements”…dig deeper 🙂
yes and he used to brag how rich he was, and how we all needed him more than he need us, the investors. shame shame shame.
IMO they are going to get away with this with a slap on their wrist. All they have to do is to wait for the bad publicity to get over.
Wow, Chuck, “60 Minutes” could use a super-sleuth like you … you leave no stone unturned, great job. Frishberg and Kaleta are EXACTLY why the economy is in the dump and your articles DEMAND accountability.
On a more personal note, I don’t think I’ve read this much since college.
This Mark Ghiglieri appears to be a crook himself. He was convicted for counterfeiting $$$ and another incident for being a terrorist. Al Kaleta is an idiot. It wasnt his money so why did he care to dump money into this company run by this crook. And to buy 2 million shares using KCM money and then try to say it was his, what a pig! So those 2 million shares are worth what to the crumbled KCM estate? I wonder.
I have attended a few investment seminars and lucheons advertized by Frishberg. Kaleta was present at one of them. I did have a consultation with Frishberg’s associates to determine if I wanted them to manage my investments. I chose not to allow them to manage my investments but I never felt pressured at the meeting or at any of the seminars I attended.
Their investment model sounded very solid. They were to invest in corporate bonds and covertivle bonds. Their management fee was going to be less than 2%. Plus they were using Fidelity as their broker for holding their investments. Using Fidelity lent more credibility to me. I have had experience with fraudulent investors before. There was nothing that set off alarms to me, but the information I have read concerns me, especially if Frishberg is associating with Kaketa.
Sounds like Ghiglieri and Kaleta deserve each other and deserve to share a prison cell. They are both thieves and Ghiglieri has scammed millions from charities and investors in his ponzi schemes.
[…] 10.Al Kaleta busted by SEC Receiver for lying about Sculptures « The following, when signed by you, Mark Ghiglieri and Masterpiece Investments (COMPANY) and Biz Radio Network, will constitute our reciprocal trade agreement relative to an exchange of radio advertising time on station BizRadio KTEK 1110 AM – Houston, KVCE 1160 AM—Dallas, KTMR 1130AM—San Antonio. https://chuckgallagher.wordpress.com/2010/05/14/a-masterpiece-of-a-fraud-al-kaleta-busted-by-sec-receiver-for-lying-about-sculptures/ […]