BizRadio – Another day another Lawsuit! Daniel Frishberg’s legal issues continue…

When the flow of money stops the crash is deafening!  Just ask Bernie Madoff, Sir Robert Stanford, and a whole host of others who either have faced or are facing the long arm of the law for their fraudulent financial actions.  Daniel Frishberg is NO BERNIE MADOFF – he’s not that smart, but many who have contacted me over the course of the past six months have said that he is that crooked.  Guess…time and the federal government will ultimately be the judge of that.

What is certainly true is there is a long line of folks who just want their money back.  They did not wish to be scammed.  They did not wish to own a failing radio station.  They did not wish to have their investment savings manipulated by someone (or group) that had first and foremost in mind their own self interest.  All they really wanted was to invest their hard earned dollars into something that would give them a safe and secure return.  And, folks RADIO ain’t it!

Now comes Plaintiff – DRA CRT POST OAK, LP – the Landlord for the property formerly occupied by FRISHBERG FINANCIAL SERVICES, INC.  Seems that Frishberg leased the property located at 3050 Post Oak Blvd., Houston, TX starting on December 1, 2002 with an expiration date of May 31, 2011.

Oops…Daniel’s funds dried up.  Now that is no great surprise.  It started when Kaleta got in trouble with the SEC and hasn’t stopped yet.  Did Frishberg create a Ponzi scheme?  I’ve been asked that a number of times, both in emails and telephone calls.  Answer: well…kind of.  To me, it seems that Frishberg, Kaleta and others really created more of an investment scam.  I’d call it “investment adviser fraud” – in that, they sure enough sought investor dollars that – for the most part – funded their money losing business so that they could attract more investment dollars.  From that perspective, it is a type of Ponzi scheme, but in reality they just scammed folks by making them believe that they were investing in something that was low risk and, almost a sure thing!  Either way you cut it – it was a scam and clear self dealing.  But back to the lawsuit…

CAUSE OF ACTION ONE:  $90,035.59 left owing on the lease creating the suit against Frishberg Financial Services, Inc.  Demand has been made and according to the document, Frishberg Financial Services, Inc. refused and continues to fail and refuse to pay the amounts due and owing pursuant to the terms of the lease.

CAUSE OF ACTION TWO:  Claim amount of $286,321.87 for anticipatory breach of lease with Plaintiffs claiming they can prove the reasonable cash market value of the Leases Premises for the unexpired term of the lease.

CAUSE OF ACTION THREE:  Plaintiff claims pre-judgment interest at the rate of 18% per annum as allowed by the statues of the State of Texas.

CAUSE OF ACTION FOUR:  Plaintiff requests recovery of reasonable attorney’s fees.

Total request excluding attorney’s fees, court costs, pre-judgment and post-judgment interest, is $376,357.46.

THE QUESTION really is what effect the involuntary bankruptcy and request by the SEC Receiver will have on all these lawsuits?  Rehan Siddiqi sues for $18,000,000.  Several individual lawsuits have been filed and now the Landlord.  There seems to be no end to the claims against Frishberg.

BUT HERE’S HOW IT WILL END…  Daniel Frishberg will eventually lose his license as a Registered Investment Adviser and be admonished by the SEC just like Al Kaleta.  My guess is that will happen within the next three months as the SEC has less time to take action civilly than others do criminally.  Frishberg will effectively be banned from using his knowledge and talent to sway investors.  The radio run will be over and “the Money Man” will be no more.  Following that, I believe that criminal law enforcement entities will take issues with both Daniel Frishberg and Albert Kaleta into a different realm.  In fact, likely the investigation and work that the Receiver will continue to do will form the basis for a series of criminal charges that will be levied against Frishberg and Kaleta.  Based on other cases, it would be difficult not to convict Frishberg and/or Kaleta (I suspect both) on mail fraud, wire fraud and, perhaps, investment adviser fraud.

With all that is happening in the financial markets, Frishberg has far too much notoriety to avoid criminal prosecution with prison time that follows – least that’s the way it seems to me.

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7 Responses to BizRadio – Another day another Lawsuit! Daniel Frishberg’s legal issues continue…

  1. Winsome Wit says:

    How on this earth is Daniel still on air in Houston still pushing his “strategy” sessions that lead to some of the worst investment products (structured notes) I have seen cobbled together in decades?

    I know the SEC will get him and Karl for suitability eventually, but Salem having him on air with all this turmoil is crazy.

  2. mrsnarkypants says:

    Until the sale closes, Frishberg holds the license. Salem is programming the rest of the day under a LMA. They have from now and the end of July for the sale to close.

    After the sale closes, all bets are off. Until then it’s still Dan’s station and he’s ultimately responsible for its operation.

  3. Ripped Off By Frishberg says:

    That’s right, let’s not forget about Karl Eggerss. Guilt by association? I would think so. He fled when this blew up to start his own capital management firm. Maybe the eyes of the SEC should take a little peak his way as well. He was Daniel’s ‘Chief Trader’ after all.

  4. rippedoff says:

    Looks like Frishberg, Kaleta, and gang can move on to greener pastures since all the bad publicity has died down.

  5. jammas says:

    What do you mean “greener pastures”?? I hope they return everything they all took from KCM. All of them need to be made accountable.

  6. Jammas says:

    They better return all they stole.

  7. BizzFree says:

    There are no greener pastures for them….patience grasshoppers.

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