Trevor Cook and Pat Kiley – Using Radio to promote the Scam – Does this remind you of BizRadio, Daniel Frishberg and Al Kaleta?

There are three component parts to a well run Ponzi scheme and in every case the victims fall prey and into the PIT.   PROMISE, ILLUSION and TRUST!

Over the past several months I’ve been reporting on BizRadio out of Houston and the scheme or scam (as I and many others see it) run, in part, by Daniel Frishberg and Al Kaleta.  Then just yesterday I clicked on a lengthy new report about another massive Ponzi scheme (makes BizRadio look like chump change) effected by Trevor Cook (who entered into a plea agreement) and Pat Kiley (Radio Host) who is reportedly the target of a criminal investigation.

The report was fascinating in that it – yet once again – clearly showed the three components of how victims become victimized.  First, before I explain – here’s the link to the CNN Money report.

http://money.cnn.com/video/news/2010/07/15/cook_kiley_long_pkg.cnnmoney/

So how did this mess come to be?  Three things:  PROMISE, ILLUSION and TRUST!

Step One:  Cook made the promise that this was a risk free investment.  As is often said, he (Cook) had a fool proof system.  Folks there is NO FOOL PROOF SYSTEM.

Step Two:  Cook created what looked (0perative word “LOOKED”) to be a high tech system that supported his claims.  He created the ILLUSION.  And, as part of that, he had (what appears to be) in his back pocket – Pat Kiley (Religious Radio Guru) whose mouth supported the Illusion that this was all real.  After all, it wasn’t just Cook who made his claim – he had a (my term here) co-conspirator to help with the Illusion.  Now whether Kiley was “in on the deal” or just too dumb to do due diligence on what he was promoting on the radio is for the legal system to decide, but either way – Kiley was instrumental in creating the Illusion.

Step Three:  Kiley’s brand – via his nationally syndicated radio show – created a large part of the TRUST needed to spread the message and seal the Ponzi scheme deal.  Not that this all fell on Kiley’s shoulders, Cook, too, played a large part in the Trust component by creating false statements giving investors an inaccurate view of their investment returns.

PROMISE, ILLUSION and TRUST.  These three are the foundations of how fraud becomes and creates victims.

See the SEC News Release on Trevor Cook – http://www.sec.gov/news/press/2010/2010-12.htm

See also SEC News on Pat Kiley – http://www.sec.gov/litigation/litreleases/2009/lr21313.htm

So…how does this relate to the story I’ve been following with BizRadio?  Seems that there are interesting correlations.  First, Al Kaleta was the one who seemingly was the point man for the money.  Perhaps it was best to say that Al Kaleta was the “promise keeper.”  Daniel Frishberg was the “radio personality” who had the name recognition to support the Illusion and create Trust.  Together, Frishberg and Kaleta, seemingly convinced many investors to (like in the case of Trevor Cook and Pat Kiley) put millions into venture(s) that turned out to be no more than a massive illusion designed to promote the personal gains of Daniel Frishberg and Al Kaleta.

Where from here?  Well, in the case of Cook – he’s entered into a plea deal for no more than 25 years in prison in exchange for his help in finding the money.  Good luck with that, as it appears that much of it has disappeared – gone as quickly as his illusion dissipated.  Kiley – well, that’s a function of where the criminal investigation goes.  Did he know and conspire or was he just that stupid?

In the other case of Al Kaleta and Daniel Frishberg – that is yet to be decided – other than an SEC Receiver has been appointed to take possession of what funds can be found so that investors can be made whole as much as possible.  More to come!

Meanwhile…YOUR COMMENTS ARE WELCOME!

Advertisements

7 Responses to Trevor Cook and Pat Kiley – Using Radio to promote the Scam – Does this remind you of BizRadio, Daniel Frishberg and Al Kaleta?

  1. george says:

    Pat Kiley was carried by a Houston radio station. I’ll bet that more than a few Houston folks got sucked into this Ponzi scheme. The show was setup to scare even the casual listener. The same radio station that carried Pat Kiley now broadcasts another fear-based financial show by Jim Bell. If you Google Jim Bell Financial you can listen to his past shows. Mr Gallagher, this might be your chance to follow a scare based scheme before a blowup.

    • Tim says:

      It appears that some time has passed since George posted his challenge, which I did not see until just now. I am not a Jim Bell client, nor am I affiliated with him. I would agree that certainly scare tactics are often used in fraudulent schemes. However, that does not mean that all financial advisers who try to warn listeners of bear markets are promoting fraudulent schemes. As I understand, Bell uses TD Ameritrade as separate custodian for the accounts that he manages. That immediately removes much of the concern that one would have, in my view. He uses hedged strategies for trading the accounts, so he does protect his clients from catastrophic loss. Somewhat skeptical, I have listened to Bell’s shows contemporaneously for several years, since 2007, before the bear market. The audio posted in his archives were made at the time they were posted and have not been doctored or added later. I believe that he is honorable and sincere, though sometimes a little over the top with his rhetoric–but I can forgive him that. His big picture calls have been accurate, including his 2007 declaration of impending bear market and his early 2009 prediction of the rally that started March 2009. He does not recommend specific trades, but he does give alternative short-term possibilities and admits when his short-term expectation does not work out.

  2. Robert says:

    Why do you not check out Bob Chapman…a crook like no other…he fled the US because the SEC is after him.

    Many on “Patriot Radio” know he is a crook and still allow him on the air…shame…shame

  3. Investing with Dan Frishbergy says:

    THE SEC TOLD ME my money was spent on art work, expensive offices, and vulgar displays off wealth

    -I lost hundreds of thousands of dollars
    -lost all income on that money as well
    -I live day to day scared to death of my future
    -years long, ongoing, and long stomach turning calls with sec attys even as I write this
    -many many many many sleepless nights – still to this day
    -I dont trust ANYONE with my money
    -Because of trusting dan frishberg I have a VERY UNCERTAIN FINANCIAL FUTURE

    this is what frishberg did to me and my money.

    If you work with these people, God help you – and go ahead and get the numbers for the sec.

    Anyone know what he is driving these days? Im NOW driving a 15 year old van.

    Anyone know if he has health insurance? I HAD to cancel mine after what he did to me.

    Why did he only lease a house? Was this to protect himself because he knew he had a Ponzi scheme going with our money?

  4. Ruined By Frishberg says:

    There’re are a lot of hateful feelings around here for Dan Frisbherg and Frishberg is damn lucky he isn’t reading this from his jail cell in my opinion.

    Dan Frishberg: Ponzi Scheme
    Dan Frishberg invested our money in a Ponzie scheme that defrauded many many people out of millions of dollars. This is a current and ongoing case. We investors haven’t been paid back a cent. In my opinion this guy is a narcissistic spoiled brat who will do ANYTHING to keep new money coming in to his hands.

    Dan Frishberg was our financial manager. Instead of investing the money we gave him Dan Frishberg put our money in a Ponzi scheme and used our money to pay his own personal expenses and his own bills, including paying for his Mercedes, buying hundred of thousands of dollars of art work and paying for his office rent, only to name a few. The SEC caught him shut it down! Now the money we gave Frishberg is frozen up with the SEC.

    It was the SEC that gave the above written facts. If you dont believe this information call any SEC telephone number and simply ask about Dan Frishberg. They’ll repeat word for word the above facts.

    http://www.sec.gov/litigation/complaints/2009/comp21293.pdf

    SEC Toll-Free Investor Information Service:
    1-800-SEC-0330

  5. PIst off Investor says:

    We’ve also been robbed & cheated by Frishberg and his stupid wife, and the dumbass of Kaleta. All are a bunch of greedy pigs. All were driving Mercedes and living high on the hog. I was glad to see Bill Heath has now settled with the receiver… he will pay the estate $100,000 for his criminal role in the whole scheme. They all make me sick. I’m still wondering why none of them are in prison yet? I have no idea why this SEC investigation hasn’t filed criminal charges. So upset about that. Luckily we still have few years of work and we are still planning for a good retirement. I’m in a peaceful place because my retirement account is in an annuity. Those pigs will never touch it.

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: