The Biz 880 a.m. – Miami welcome Dan Frishberg but Beware!

December 1, 2010

That’s right…in the land of sun and fun I’m sure that you can provide a great Miami welcome to one of the newest additions to South Florida business radio – The Money Man himself – Dan Frishberg!  Formally of BizRadio fame in Houston, Dallas and San Antonio – Dan Frishberg – self proclaimed Money Man has now found a new outlet in South Florida at The Biz 880 a.m.

But before the excitement sets in for the new morning drive time sensation, perhaps a few questions should be asked.

Referred to as the Pirate of the Airwaves – an interesting article appeared in the Houston Chronicle by reporter Loren Steffy.  The full article appears here.  For purposes of brevity and full disclosure let’s look at part of Loren’s article which I quote:

The BizRadio Network’s slogan is “the sound of your money growing,” but for about 50 investors, it’s sounding more like their money disappearing.

The AM radio network — which broadcasts investment advice and other business information in Houston, Dallas, San Antonio, Denver and Colorado Springs — received millions raised from investors under false pretenses, according to a lawsuit filed last week by the Securities and Exchange Commission.

The SEC claims that between December 2007 and August of this year, Albert Kaleta and his investment firm, Kaleta Capital Management, sold $10 million in promissory notes, telling investors the money would be loaned to small businesses at 12 percent to 14 percent interest. Instead, the SEC said, it went to the money-losing radio network and an affilated investment advisory firm, Daniel Frishberg Financial Services, also known as DFFS Capital Management.

Kaleta and Dan Frishberg, who appears on BizRadio as “The Money Man,” were among the network’s founders. Kaleta also was part owner and chief compliance officer for DFFS.

To my friends and followers in Miami – that is just the tip of the iceberg.  Dan “The Money Man” is under investigation by the SEC and, if my sources are correct, is likely to lose his license as a potential Registered Investment Adviser.

Interestingly enough, Dan Frishberg, in what appears to be an effort to preserve his income from his RIA – DFFS – sold the asset to Barrington Financial Services before the SEC Receiver Tom Taylor could get his hands on the asset.  Tom’s interest is to protect the defrauded investors and work to recover any assets that could be used to make them whole.  To date, Frishberg seems to have protected his income to the detriment of the defrauded – scammed investors.

Loren Steffy also wrote an interesting piece – Beware of those who say beware of Scams.  Here’s the piece for your to review.  What’s ironic and quite amazing is that Dan Frishberg and his cronies are up to their necks in lawsuits and claims of being scammed and perpetrating frauds, yet, Dan must have a teflon tailor in that he seems to slide right past the claims with no consequence.  Example, he’s now on the air in Miami bringing his radio show and skilled investment advice to a new crowd.

Here are two other links that might shed some light on this new morning radio sensation on The Biz 880 a.m. in Miami:

So here are some questions for well informed Miami listeners to consider:

  1. What motivated The Biz 880 a.m. to bring Dan Frishberg to the airwaves of Miami?
  2. Was the management team at The Biz 880 a.m. aware of Dan Frishberg’s past dealings and the allegations of fraud and wrongdoing or the SEC investigation?
  3. If they were aware, did they think that it was worth the exposure – that Dan would bring the ratings – or did they just not care?
  4. If they were not aware, then what do you think The Biz 880 a.m. management will do as they begin to see that their credibility is called into play by allowing someone under investigation by the SEC to potentially lure some unsuspecting person into a situation similar to those who were defrauded in Houston?

But here’s the real question – WHAT DO YOU THINK MIAMI?

Perhaps you should voice your opinion – do you want a person investigated for financial misdeeds by the SEC sharing his trade secrets during your morning drive time?


Is the BizRadio – Dan Frishberg Financial “Scambus” headed to 880 AM THE BIZ in Miami?

November 25, 2010

What’s happening in South Florida?  Looks like Dan Frishberg – the self-proclaimed “Money Man” is taking his show on the road seeking a new audience and perhaps one that isn’t as familiar with his financial shenanigans as the folks who lost millions in the Houston – Dallas, TX markets.

Most in TX know that Dan Frishberg’s side kick – Al Kaleta is in dutch with the SEC and banned from his role in investment advice and BizRadio.  Likewise, Dan Frishberg’s DFFS (Dan Frishberg Financial Services) was “sold” to Barrington Financial (what some have described as a straw puppet for Frishberg’s investment work) – yet DFFS is under the purview of the SEC Receiver Tom Taylor.  Many questions have been raised as to those (DFFS) assets.  And yes, Frishberg himself is subject to SEC scrutiny.

So below is a new release which appeared on November 19th.  See comments below:

MIAMI – One of the brightest voices in financial and investment strategies in America will soon be heard on South Florida’s only all business radio station, The Biz, at 880 on the AM radio dial.

ONE OF THE BRIGHTEST VOICES – really?  The subject to an SEC investigation and millions of dollars in investor losses makes one a “Bright Voice?”

Daniel Frishberg, principal of is well known to viewers of CNBC and Fox Business News, as a frequent commentator on Wall Street and global investing, having appeared more than 5 times on such programs as “Closing Bell with Maria Bartiromo” on CNBC and Your World With Neil Cavuto on Fox since 2003. Starting Nov. 1, Miamians will be able to get the same up-to-the-minute strategic advice in the comfort of their cars on the way to work. So why should they? Listen to “Radio Wall Street: The MoneyMan Report”? Because Dan Frishberg is a unique voice in the world of financial commentary and analysis.

I will be the first to say that I may be wrong, but it seems that most of the claimed fame happened before the world found out the truth about Dan.  Truth is Dan has yet to be transparent regarding his financial dealings with DFFS, BizRadio and his RIA association with Barrington.  Perhaps many would have a different opinion if you – DAN – would come out of the closet and share the truth about the funds of BizRadio and how you are going to make restitution to what appear to be defrauded investors.

For instance, he says people are “drowning in statistics, data, and numbers”. In theory, he says, the 24/7 reporting of the latest market data would help people made better, more timely decisions about how and where to invest or how to use their resources. But in the years since they started getting constant reports on employment, manufacturing, and GDP, he notes, most Americans have actually lost ground.

“Data is worth very little,” says Frishberg. “That’s the inescapable conclusion. When you know what everybody else knows, you know nothing. Insight, vision and strategy make you rich.” Dan Frishberg has become famous for his ability to gather, analyze it and draw useful conclusions from the flood of data, distilling it into advice that helps people make good investment decisions. Strategic investing is not really rocket science but even the engineers and scientists in Cocoa Beach need timely advice to do it right.

Some of the most famous and successful investors and strategists on the planet join Dan every morning, offering his listeners their best ideas – spotting major turning points, identifying short term moves and options trades. These are people who have made their fortunes and their reputations by recognizing that there is a play for every situation and knowing which ones to make.

This might be interesting or certainly make for an interesting show – Dan why don’t you address the BizRadio fiasco.  Perhaps a call in show for the world to hear might be appropriate and one that would get great ratings as I know the calls would be lined up from scamed investors who want some serious answers.

Regular listeners to “Radio Wall Street” hear from financial reporters like CNBC’s Mark Haines and Maria Bartaromo, Fox Business Channel’s Neil Cavuto, Jenna Lee and Cody Willard; investment strategists Jon Najarian, Jack Bouroudjian, and Herb Greenberg. Economists and strategists Dr. Arthur Laffer, Dr. John Rutledge, former Fed vice-chairman Alice Rivlin and Robert Reich, Bill Clinton’s secretary of labor, captains of industry like Steve Forbes and Jack Welch all come on the air with Dan Frishberg. They don’t just stop by when they have a book to tout. They take the time to open up, so “The Money Man Report” audience gets to hear what they really think. They come on his show because they respect his track record of seeing the trends before they become conventional wisdom and they enjoy talking with a man who really gets what’s going on in the global financial and business markets.

Dan Frishberg literally grew up on Wall Street, learning the ins and outs of the market from his grandfather on visits to the Stock Exchange floor as a child. He spent three years as a Marine machine gunner, learning discipline, then came home to work his way through college trading silver contracts.

In almost twenty years of broadcasting he has had the great good fortune to become friends with most all of the most famous, successful, creative, gifted financial and economic strategists of our generation.

“Life isn’t fair,” Frishberg says, “and the best of us also get all the breaks. My gift was to have fallen into a life where I spent tens of thousands of hours practicing and learning, surrounded by the very best and brightest, and studying at the very highest levels from the trading floor at Goldman Sachs to the floor of the Chicago Merc.

The “best of us also get all the breaks.”  That is a curious statement as it seems that the breaks have fallen Dan’s way and at the cost of millions for investors who would like to “catch a break!”

“Now my special gift is to use this unusual configuration of talents and skills with regular people who would never get near it any other way.”

“Radio Wall Street: The MoneyMan Report” airs from 8 am to 9 am daily [OR weekdays] on Miami’s THE BIZ 880 AM.

For an interview with Dan Frishberg contact:
Pamela Caddell

Perhaps it would be appropriate to schedule an interview with Dan – maybe Pamela could set that up.  Oh…and for my readers don’t think I haven’t tried.  But of course, Dan’s far to smart than to give an interview to me – after all, I might ask some hard questions – questions he apparently doesn’t want to answer.


Ethics require Transparency – Dan Frishberg is caugh up in the Illusion of the Scam

September 21, 2010

They say it takes one to know one!  How many times do I wish that weren’t true, but in the case of Dan Frishberg and the BizRadio saga, I am uniquely qualified to report as I’ve (regrettably) been in his shoes and dealt with the consequence – federal prison.  Just last week, in doing a program for the US Navy, I was asked: “What did you learn in prison?”

Answer: “I learned three things: (1) every choice has a consequence! (2) often we get caught up in our own illusions and fail to see or acknowledge the truth; and (3) Success is measured by the impact we have on others, not by the stuff we acquire over our lifetimes.”

I freely acknowledge that I am not proud of my past choices from 1986 – 1989, but I have been honest in what I did, why and the lessons that were learned as a result.

So…where does this take us in the case of Dan Frishberg and BizRadio?

I was told by several folks that Dan has become frustrated at the publicity that he’s received.  When either BizRadio or Dan Frishberg is searched on the internet, articles (some mine) appear which shine a light of truth on what he, Al Kaleta and David Wallace have done to unsuspecting investors through their BizRadio scam. (Perhaps it didn’t start as a scam, but certainly became one by all accounts).

So what did Dan do?  Instead of looking at the truth of the matter, he’s continued his journey into the fog of illusion and enlisted the help of other bloggers to blog positively about him and the work that he does.  In other words, he’s trying to fill the media outlets with more illusion so that he counteracts his devious actions – currently being investigated by authorities.

One new blog by Mike Wazowski is a feeble attempt to shine a positive light on Dan.  Mike states the following regarding Dan Frishberg’s plight:

I have a feeling Dan “The Money Man” Frishberg knows just what Ray Donovan meant, even though his ordeal has been played out on a smaller field. Dan’s is a familiar voice on the radio and TV, where he has been a frequent commentator of Fox Business and CNBC, among others. If you want to see what caught my attention, take a look at this YOUTUBE VIDEO of The Money Man’s television appearances from 2008 and 2009.

Unfortunately for Frishberg, fame came with an opening for shady operators including a con artist who named himself CEO of Dan Frishberg’s radio enterprises and proceeded to try to sell the home station of his radio show, “The Money Man Report”. Also finding his way out of the woodwork is a blogging Lone Ranger who has spent more than a year on his lonely crusade against Frishberg’s reputation.

Let’s see – to be clear Dan does have commentary on YouTube, but then again anyone can have YouTube video.  What I notice is the total absence of Dan Frishberg as a guest of any legitimate media outlet since he’s come under the scrutiny and investigation of the SEC and his beloved radio station – BizRadio is effectively up for sale under the direction of an SEC Receiver.  Has Fox or CNBC had him on in 2010?  Sure would be interested to know if they did or perhaps they’re working on a new segment related to Dan on say – American Greed?  Just asking?

And, let me get this right – now Ron Crider is being implicated as a self appointed CEO “con artist” – hum…somehow I don’t think the fact bear out that claim.  But then again, I’m not yet sure that Mike is holding true to the title of his blog – Truth in Blogging.

Ah…but there’s more.  Mike now wishes to take a swipe at me.  Trust me, I’ve had many swipes, but this one is a bit comical.  Here goes Mikes comments:

Apparently a paid propagandist, he calls himself a “home grown journalist” and claims to be an Ethics Consultant. But his “reports” are nothing more than innuendo backed up by vague sources like “numerous phone calls and emails”, violating the first rule of the Society of Professional Journalists’ Code of Ethics. Of course, since he’s bucking the Mainstream Media by, alone among all the business reporters and editors in America, portraying Dan Frishberg as a villain and not a brilliant financial strategist, he may think he is not bound by “professional” ethics.

This deceptive blogger says he is a CPA, yet he is apparently also a convicted felon. I don’t understand how those go together, but in any event, he pretends not to understand the difference between capital and equity when he is straining to understand how an investment fund with more than $50 million in real estate could have also invested in BizRadio.

So for TRUTH IN BLOGGING – let’s set the record straight:

  1. I am not a paid propagandist – NO ONE PAYS ME TO WRITE WHAT I WRITE.  As you might notice, my blog is free and not used as a site for advertisers or sponsors.  So – Mike you’re wrong here.
  2. He calls himself a “home grown journalist” and claims to be an Ethics Consultant.  Well…I suppose I am a bit of a HOME GROWN JOURNALIST as are most bloggers, but to clarify, I also have been published in numerous national magazines, featured on numerous talk shows including but not limited to CNN, CBS and NPR radio as well as TV appearances.  AND I AM A PAID ETHICS AND FRAUD PREVENTION CONSULTANT.  Again, Mike you might wish to check your facts before you assume that I am not what I say or appear.
  3. His “reports” are nothing more than innuendo backed up by vague sources like “numerous phone calls and emails.” VAGUE SOURCES – hum, Judges orders, SEC Receiver reports, Written Documents and interviews by those who have been victimized by Dan Frishberg.  Wow…I guess those are insignificant in comparison to what Dan Frishberg says is true (ah…the fog of illusion).  Hum…I guess we’d never have had Watergate reported by Woodward and Bernstein if we could not report from “vague sources”.
  4. This deceptive blogger says he is a CPA, yet he is apparently also a convicted felon. – Mike you really miss the boat “Big Kid”…as you are apparently incapable of doing simple research?  I WAS A CPA – created a PONZI SCHEME and SERVED TIME IN FEDERAL PRISON.  Wow…there’s no NEWS HERE!  You report as if you’ve found something.  Sorry, but you didn’t.  Rather all you’ve done is show that I am exactly who I say I am – I am transparent.  Clearly, I’m not the one caught in the fog of ILLUSION.

So…to those who follow my reporting on Dan Frishberg, David Wallace, Al Kaleta and BizRadio … I will continue to do so and appreciate all the help I’ve been given along the way.  There’s an old Elvis song that says, “what you do in the dark, will be brought to the light” – and in Dan’s case that is true.

TRUTH:  “Keeping it real by bring you the truth!  Mike Wazowski” – Mike may be a real person (I honestly don’t know), but what is true is that it appears that Mike is no more than a mouthpiece for Dan Frishberg – spouting reports that are designed to counteract the light of truth that the Houston Chronicle, I and others have been shinning on Dan.   Nice try Mike…but in the future, call me and let’s discuss the truth…my number is published!

Special Strategy Session featuring Dan Frishberg – Really!? Who would trust a man investigated for potential fraud by the SEC?

August 17, 2010

I find myself amazed.  Amazed that Dan Frishberg – the subject of an SEC investigation – the centerpiece of a substantial Houston, TX fraud – would still have the guts to tout himself as a major source of money and investment advice.  I suppose that there are times when reality just isn’t reality – especially when it comes to Dan.

Strategy Session featuring Daniel Frishberg
Wednesday, September 22, 2010
7:00 p.m. to 9:00 p.m.
Space is Limited. Reserve Your Seat Immediately!!!
To RSVP Contact Sonia Joao

So it seems that Sonia, Dan’s former employee is not employed by Barrington.  Convenient and raises questions as to whether Barrington is not just a pawn in the massive fraud that Dan is effecting.  Just asking?

Note: The date has been changed. If you have already signed up for August 26, your RSVP has been counted and you will be notified of the change.

Wonder if this date change is evidence that Dan did not get the turn out that he expected on August 26th.  Maybe folks in the Houston area are wising up to Dan’s tricks of illusion and deception.  Just asking?

Dan Frishberg would like to invite you to attend a special Strategy Session event. More than ever now, with all of the current political and economic uncertainty, investors must be prudent with their money. Come hear about ways to invest safely in an unfamiliar market and get a few capital gains picks as well.

Sorry, but what a crock of (you know what).  Uncertainty!  Really?  What is uncertain is what Dan will do with your money once he gets his clutches on it.  Buyer or investor beware!

Join us on Wednesday, September 22, 2010 from 7:00 p.m. to 9:00 p.m. at the Houston City Club for our new strategy event in Houston. It’s free to attend, but if you want a seat, you must RSVP.

September 22, 2010
7:00 p.m. to 9:00 p.m.
Space is Limited. Reserve Your Seat Immediately!!!
To RSVP Contact Sonia Joao 713-490-8728

This Event is FREE but you must RSVP
Contact: Sonia Joao at
713-785-7100 or

What can I say…when a person like Dan cannot face reality and take positive actions to help those who have blindly been defrauded…well there is no reason for folks to call themselves victims if they listen to Dan now.  Buyer or investor beware!

Dan Frishberg and BizRadio – The Calm Before the Storm – will it be CIVIL or CRIMINAL?

June 24, 2010

All seems quiet on the western front – well at least for Dan Frishberg in Houston that is – and BizRadio.  But don’t mistake quite for inactivity.  Sometimes what is done in quiet can have profound and very loud consequences.

So…for those who have been following here is an update.

  • On June 17, 2010 an order was filed in the US District Court effectively representing an agreement between the SEC Receiver and the Court.  In the agreement the assets of BizRadio and DFFS (Daniel Frishberg Financial Services) were brought under the control of the Receiver along with the Kaleta assets.  The Agreement in its entirety can be see here.  34
  • A couple of items related to this that are noteworthy:  (a) the Receiver initially was attempting to pierce the corporate veil and go after Frishberg personally.  That did not happen.  Instead the Receiver got to include directly the assets of the organizations that were first included in the SEC Receiver appointment for BizRadio and Frishberg.  (b) the order stipulates that DFFS owes Kaleta Capital Mgmt. $1.2 million.

WHAT ABOUT THE BANKRUPTCY?  It seems that since the primary assets from DFFS and BizRadio are now in the hands of the Receiver there is not practical reason to move forward with the bankruptcy.  That is over as best I can tell.  The Receivers role is to protect all people who have a vested interest in some form of monetary recovery and no sense in complicating that with another entity involved – namely a bankruptcy judge.

WHAT ABOUT THE LAWSUITS?  Now that is another matter.  I reported on a suit filed by Barbara Doreen House in an earlier blog.  On June 10, 2010 the following was issued effectively dismissing the suit since a bankruptcy action was pending.  But from what I understand from a conversation with the SEC Receiver – the bankruptcy is dismissed so what that means to Ms. House’s lawsuit and others – like the one for $18 million filed by Rehan Siddiqi I have no clue.  Here’s the paperwork from the House dismissal.  Fraud dismissal

WHAT ABOUT THE MONEY FROM THE RIA?  Ah…now that’s where the seemingly quite issue gets interesting.  Daniel Frishberg used BizRadio as his mouthpiece and voice to attract clients.  The clients trusted Dan “The Money Man” and it has been reported that Dan (at one time) was earning some $700,000 per quarter for his work with DFFS – his RIA.   Not a bad income for a suspected con artist like Dan.

Dan – realizing that he’s going down – works to preserve his income and sells his RIA to William Heath.  I have tried calling Bill Heath several times for an interview.  Surprisingly he’s never there.  Go figure.  But on May 25th, 2010 he was being deposed by the SEC Receiver so I’m sure that he knows far better than I the real truth behind the transfer.  But there is some controversy.  Between who you might ask?  Guess…  greedy Dan Frishberg who is trying to protect himself and the SEC Receiver – who is trying to protect those who have been victimized by Frishberg and Kaleta.

Frishberg says that the income from the “former” DFFS assets should go to him as he is a CONSULTANT and that the income was consulting fees.  The Receiver (and these are my words not his) would claim that the assets earned from the monies invested are assets of DFFS and therefore under his control and dominion.  Well…what would happen if Frishberg loses that argument?  UH…he’s have no income!  And I can hear many of you who read say – Rightly So!

We’ll see what happens with that battle…  Stay tuned!  (my bet is with the SEC)

WHAT ABOUT CIVIL OR CRIMINAL ISSUES?  First, (old news) Kaleta lost his license as an investment adviser and therefore has effectively been rendered impotent when it comes to a career in the investment adviser world he once roamed and played in.  I SUSPECT THE SAME WILL BE TRUE FOR FRISHBERG.  I do not have a crystal ball, but if I were a betting man I would say that soon (by the end of the summer) the SEC will rule against Frishberg and he will lose his license – the same as Kaleta.  When that happens Frishberg will be out of business.  No more license.  No more credibility.  No more inside track.  And, most of all – No more radio show to promote his scams.

Now…on the CRIMINAL SIDE.  That seems to be up for debate.  There are clearly two camps: (1) those that feel that the SEC civil is sufficient to protect the public; and (2) those who feel that Frishberg and his exploitation of the airwaves for gain should justify criminal prosecution.  The problem is – there are too many crimes out there to prosecute so the US Attorney’s office just might pass on this one.  Whether they do or don’t may, in part, be a function of whether there is sufficient public outcry for punishment beyond losing one’s license and livelihood.  WHAT ARE YOUR THOUGHTS…CIVIL ENOUGH OR SHOULD CRIMINAL FOLLOW?

As more comes to light I will be one of the first to report.  For now…all quite on the western front is a bit deceiving – cause take to the bank work is still be done to bring some right to this blatant WRONG.


Ignored by Maria Bartiromo and the main stream media at CNBC related to the BizRadio – Dan Frishberg interview request – Why?

May 20, 2010

First, I’m a fan of Maria Bartiromo and respect the body of work that she’s done.  Out of that respect I contacted Ms. Bartiromo (Maria) to see if she would be willing to talk with me about the process by which guests are selected for CNBC’s Closing Bell and what happens when you find out that a guest – in this case Daniel Frishberg – is the subject of an investigation by the SEC?

Now…I am smart enough to recognize that I am not part of the main stream media, in fact, many feel that the new world of the blog and “in-home journalist” is not a legitimate media outlet and has no real value in the market place.  I disagree.  Reality is, those home grown journalists, are becoming vital when it comes to breaking stories that have yet to catch the media eye.  In the case of BizRadio and Daniel Frishberg, I first became aware of the issues from a friend in Houston and a story reported on in the Houston Chronicle.  The story was factual and spot on, but most who are active in reading this blog series would say that they have gained more information from my efforts than they have been exposed to in the Houston Chronicle.

The point?  What is reported on here does have value and many have shared that the questions posed are worthwhile and deserve answers.  To that end, I sought a brief interview with Maria Bartiromo so that some of the questions could be explored.  Here’s the body of emails that were sent and responses received so that, to the reader, it can be clear that I was not on a mission to discredit Ms. Bartiromo, but rather, to explore what happens when a former guest becomes somehow publicly discredited through his own actions.  See the emails below and then we’ll follow up with more questions:

Ms. Bartiromo,

It is with respect that I ask you for an interview.  I am an international speaker and author on business ethics and fraud prevention and write an active blog on the same.

I have been following – for some time – the escapades of Dan Frishberg, Al Kaleta and BizRadio.  I am aware that from time to time he has been a guest on your show and likewise has been interviewed by Tracy Byrnes on Fox.

Now that he is actively under investigation by the SEC and US Attorney’s office for fraud, I would like to discuss with you the impact that this might have on his past interviews.  There are several questions that arise and I feel your perspective would be helpful.

As a form of introduction here is a recent entry that frames the allegations against Mr. Frishberg.  These were heard in District court with a decision likely to follow another hearing on June 10, 2010.  Meanwhile, the allegations are being made by the Receiver appointed from the SEC investigation against Al Kaleta – Frishberg’s right hand man – and now are spilling into Frishberg’s domain.

I am interested in the vetting process that CNBC uses to attract guests and what happens when one fails that process.  My request to talk is in no way an attack on you or CNBC.  Rather, I respect your professional opinion and would like to know, when something like this happens – what’s next from a major media perspective?

I am hopeful that you will consider my request and help me with my interview.

Respectfully yours…
Chuck Gallagher

—– Forwarded Message —-
From: CNBC Customer Care Team <>
Sent: Thu, May 13, 2010 2:10:09 PM
Subject: Re: Closing Bell [#454864]
Dear Chuck,

Thank you for your submission to the CNBC Customer Care Team.

We do not provide specific contact details of our CNBC Employees. We would suggest you email the respective show directly. A list of show email addresses is provided at the end of this email.

If you have any further questions or comments, please respond to this note and provide as much additional information as possible.  We will make every effort to respond to your email within 24 hours. Thank you for choosing CNBC.

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–Original Message–
Date: 5/11/2010 2:17:28 PM
Subject: Closing Bell

First Name: Chuck
Last Name: Gallagher
I respectfully request contact with Maria Bartiromo regarding a story I am doing on Dan Frishberg “The Money Man” related to a government investigation into BizRadio. Ms. Bartiromo has interviewed him many times and I would like to talk with her regarding her perspective related to the investigation. I can be reached at 828.244.1400 or

In addition to the above email stream, I also sent Maria Bartiromo an email directly to maria@wsjreport .com.  Response to all email requests?  Deafening silence!

OK – I’m a pretty practical guy and I know at the outset that this was a shot in the dark, but if you don’t ask you will never receive.  For that matter, I have on several occasions ask Dan Frishberg for an interview and, of course, the response – that same deafening silence.

So let’s approach this another way.  Perhaps it’s best to be public with the request and questions that I would love to ask Ms. Bartiromo.  Do I expect a response – you know – maybe.  Maybe if she has the opportunity to see what I question and thereby formulate her answers, she will extend the professional courtesy of a response.  Maybe!

On February 13, 2009 Dan Frishberg was featured along with another gentleman in an interview that Maria was a part of.  The interview is on YouTube here.  Likewise, only 9 days earlier, Maria had Daniel Frishberg on as a guest on CNBC’s Closing Bell – the interview is here.

In both cases, it has been reported by BizRadio insiders that Daniel and (perhaps) Elisea Frishberg made their way first class to NY for the interviews, staying in lavish hotels, all at the expense of BizRadio.  This was done in a time when, by all accounts, BizRadio did not have an income stream to support the travel and lifestyle of the Frishberg’s.  In fact, most insiders now report that this was all part of the massive BizRadio illusion – appear larger than life, be featured on National TV shows, and hope that you can grow your business to profitability.  Unfortunately a house of cards, built on investor funds that have been called frauduletnly obtained, are destined to collapse.

Fast forward to February 13, 2010 – a year later – we see the collapse was practically complete.  Daniel Frishberg was under investigation by the SEC, DFFS had transferred the RIA to Barrington Financial Associates, Al Kaleta (Daniel Frishberg’s partner in crime) was busted by the SEC, an SEC Receiver was appointed, and Daniel Frishberg was struggling to keep his show alive – experiencing blackouts of his broadcast cause he couldn’t pay the bills.


  1. When a guest like Daniel Frishberg is selected to be featured on shows like – Closing Bell – what is the vetting process going in that determines the persons validity?
  2. When was the last time Daniel Frishberg appeared on CNBC’s Closing Bell?
  3. Are you aware (or were you aware) before my request for an interview that Daniel Frishberg was the subject of an SEC investigation (and unconfirmed potential criminal investigation)?
  4. If yes, when did you (when I say you I mean CNBC) become aware of Daniel’s problems?
  5. When you discover that a guest (or former guest) is the subject of an investigation related to financial matters (SEC in this case), do you (or CNBC) do your own investigation in order to report activity of this guest/former guest?
  6. Is Dan Frishberg and/or Al Kaleta the potential subject of CNBC’s show – American Greed?
  7. Lastly, if you do not investigate former guests like Dan Frishberg from BizRadio, do you see his actions coming to light having any negative impact on your journalistic reporting or credibility?

Will my questions receive a response?  What do you think?  I’d love to receive your comments.

By the way – to be fair – I also tried to contact Tracy Byrnes on Fox.  The outcome – that same deafening silence.  Although, in Ms. Byrnes case my attempts were through Twitter and other less direct methods (methods other than a direct email contact).

Let’s hope that two things come as a result of this blog:  (1) both Maria and Tracy find a willingness to help shed some light on the vetting process for guests and, more importantly, what happens when it is discovered that a guest has run a foul of the SEC or other financial or criminal investigative agencies; and (2) both Maria and Tracy help us understand the position that CNBC and Fox take on investigating Daniel Frishberg.

I truly hope that my interview attempts were ignored, not by intent, but rather by other factors that just delayed their time and attention.  And, if that were true, then perhaps – just perhaps – both Maria and Tracy would consider responding, as I’m sure from the contacts I’ve made, folks are interested in what happens now when it comes to future interviews.


Dan Frishberg & BizRadio – The Dan Cofall Interview: “I don’t like Dan Frishberg’s ethics.”

May 5, 2010

It’s hard when you try to uncover the truth.  Sometimes “truth” is illusive when there is a strong reason to feed an illusion.  As most who read know, I know that all too well…as (and I’m not proud of it) I fed an illusion that cost me everything but the love of my two sons.  But, I also found that time spent in federal prison was a unique and interesting way to learn that “truth” can set you free.

I’ve been, over the past several months, exploring what’s going on with BizRadio, Dan Frishberg and others as it relates to investment funds that now seem to represent unrecovered losses.  Each blog entry written seems to take the investigation into different more varied areas and exposes more opportunities to talk with people who have been touched by the BizRadio – Dan Frishberg fiasco.

In my last entry (since Dan Frishberg has yet to agree to an interview), I shared an email that he wrote to another investor which (in my opinion) seemed to provide some clarification or insight into where he is with this whole mess.   The entry is:  Dan Frishberg speaks – addressing investor concerns

In Dan Frishberg’s email to the investor he referenced Dan Cofall – who was basically new to me.  So like any reasonable person, I extended an opportunity to talk with Mr. Cofall and get his comments related to the situation that seemed to be unfolding daily.  I guess it is safe to say I got more than I bargained for in that my discussion with Mr. Cofall (I refer to him in that manner since it’s confusing to say Dan with both Dan Frishberg and Dan Cofall both have the same first name) produced some interesting comments and documents some of which I’ll share here.


Gallagher: Thank you for taking the time for this interview.  Recently I wrote a blog entry in which Dan Frishberg mentioned you.  Have you had a chance to read it by chance?

Cofall: Yes, I’ve been keeping up with what has been going on and I must say that I take exception to much of what Dan Frishberg has said.  Clearly he’s posturing.  His comments are inaccurate, to be polite.

Gallagher: Explain to me what is inaccurate please.

Cofall: Let’s take just a few of the more than 10 fabrications in the Frishberg letter.

Dan Frishberg stated, “Cofall, was accepting a salary from BizRadio to run our operation in Dallas in 2008 and 2009. He was charged with identifying a station for us in Dallas. When he found one on BizRadio’s nickel, he promptly resigned and contracted the station for himself.”  To be precise, Dan Frishberg asked me to do a daily radio show on BizRadio and I did.  The show was successful and Dan then asked me to help bring adult supervision to the DFW office of BizRadio.  It sounded interesting so I agreed to provide advisory services to BizRadio, for a fee, in addition to hosting my show.  Dan and Dave Wallace worked closely together to explore various radio properties in DFW and I was asked to do some basic research.  I tried for months to direct BizRadio to stations, available in DFW, that would improve the quality and reach of the signal.  One such property was 1190am.  I felt that it was one of the best that was, potentially, available.  My research fell on deaf ears.  When I left BizRadio in the spring of 2009, I moved our show, The Wall Street Shuffle, to an open time slot at CNN1190.  That is my entire relationship with CNN1190 and our show has entered its second year as the top rated financial talk show in DFW.  We do not and have not owned or managed a radio station in either DFW or Houston.  Dan should check his facts before he suggests something improper.

If he wants to air this in public, so be it.  Simply put, Dan’s definition of shareholder value and my definition are like night and day.  I tried to explain to him that since the shareholders in BizRadio were not the same shareholders as the  shareholders in his registered investment advisor, DFFS, he had an huge and opaque conflict of interest.  He paid nothing to BizRadio, from DFFS, for the prime two hours of air time he had each day nor for the huge amount of commercial and promotional time that he used.  This was the very core of the BizRadio model – selling airtime to shows, not selling advertising time, and he paid nothing to BizRadio.  Clearly his investment firm benefited from the relationship.  He said in open employee meetings that he would never pay a dime for those services and that BizRadio was just a loss leader for the investment advisory firm.  Countless employees heard him say this on multiple occasions.  This is the core of my difference with Dan Frishberg.  He knew this was a huge problem even before I told him.

In contrast, Bill Heath of Barrington, did not identify himself.  When asked, he said he represented a few investors at the meeting.  Only when I pressed him to identify who he was and what company he worked for, did he say “My name is Bill Heath, President of Barrington, the advisory firm who bought out Daniel Frishberg’s advisory firm.”  I then said ”You have a vested interest in protecting Bizradio to drive business to your advisory firm.”  Bill Heath also told me that Daniel Frishberg works for him and is on his ADV Part II as a consultant.

A close friend of mine is an equity investor in BizRadio but had not a dime in DFFS.  He will lose up to $200k.  He was not offered any ownership in DFFS.  The father of my good friend and business partner, Dan Stewart, has a great deal invested in various Frishberg entities and may lose all or part of his investments.  I became involved in this to help recover what value is left in these transactions.  There is no fee in this for me and I choose to do this to help my friends. Each day, DFFS received a huge benefit from BizRadio but I have no idea what BizRadio shareholders received in return.  Obviously, as of today, their investments have not performed well.  And if we were executing Frishberg’s business plan, we would own a poor radio station in Houston with no programming, we would be the likely target of numerous investor lawsuits, we would be the target of other investigations, we would be bankrupt and he would be writing this letter.

My business is debt management and we buy large amounts of charged-off debt and provide services to investors who buy charged off debt.  A logical extension of this business is asset management.  I asked Dan Stewart to join our board in mid-2009 and he agreed.  We are publically traded and fully disclosed Dan Stewart’s board seat in SEC filings so the idea of “hiding” his involvement is absurd.  I tried to recruit Dan Stewart to run our advisory firm for more than a year before he finally agreed to join us in February of this year.  I am very proud to have him as a friend and associate.
Chuck here is an email string that Dan Frishberg and I exchanged in 2008 that shows clearly that I brought 1190 AM to him and he wasn’t interested.  Please print the emails so that those who read can see for themselves the truth.  It is clear that Frishberg has forgotten the truth.  Please note the dates.  They are very important.

Here’s the first:

From: Cofall, Dan
Sent: Thursday, August 14, 2008 1:38 PM
To: Dan Frishberg
Subject: 1190am in DFW update


1190am in Dallas is a Clear Channel station.  They are 24 hours and have a very strong signal.  They used to carry Rush Limbaugh before he switched to WBAP.  Currently, they are renting their station (“LMA’s”) for $50,000 per month.

This info is from Ed and he is in the process of verifying the information right now.

If this is true, this appears to be an excellent opportunity.


That email was followed by another:

From: Cofall, Dan
Sent: Thursday, August 14, 2008 1:48 PM
To: Dan Frishberg
Subject: 1190am

50,000 watts daytime, 5,000 watts evening

We have the coverage maps and are looking at them right now.  Dallas is core, great coverage straight up north through key areas.  Looking for scale to see Ft. Worth coverage.

Then I followed that email with yet another showing that I was working in Dan Frishberg’s best interest.

From: Cofall, Dan
Sent: Thursday, August 14, 2008 3:12 PM
To: Dan Frishberg
Subject: 1190 update

The coverage is perfect and covers then entire metroplex many times over.

Station is a Clear Channel station purchased in 2001 for $18m.

It has been for sale for 4 years and the price is coming down.

First Broadcasting was LMA’ing it until end of 2007.

Now, CNN is full time and PSA’s.  No real revenue structure.  Rumor of $50k per month lease seems correct but still verifying.

I think it is worth a look when we can do so without tipping out hat to the 1110 seller.

When I find something else out, I will call.

Hope this is helpful.


Soon after I sent the third email, I received this response from Dan Frishberg:

From: daniel []
Sent: Thursday, August 14, 2008 3:32 PM
To: Cofall, Dan
Subject: RE: 1190am

We’ve been in negotiation with them on that station for 2 years. Still in conversation.

I responded as follows:

From: Dan Cofall []
Sent: Thursday, August 14, 2008 1:48 PM
To: daniel
Subject: 1190am

50,000 watts daytime, 5,000 watts evening

We have the coverage maps and are looking at them right now.  Dallas is core, great coverage straight up north through key areas.  Looking for scale to see Ft. Worth coverage.

Now, frankly I have a hard time with the assertion that I found a station on BizRadio’s nickel and then took it for myself.  If anything, there was full disclosure here that I brought the station to Dan Frishberg and he rejected it.  I followed with this email and my involvement was over as Frishberg was clear (at least to me) that he was on top of the 1190 AM deal (if there was to be one).

From: Cofall, Dan
Sent: Thursday, August 14, 2008 3:32 PM
To: ‘’
Subject: Re: 1190am

Ok, did not know. I thought it was news to you last night. Dogs officially off the hunt…

I left BizRadio but it was certainly not to take an opportunity away from Dan.

Gallagher: Well…why did you leave Dan Frishberg?

Cofall: I don’t like Dan Frishberg’s ethics.  Dan knew that the only chance for survival of any of the entities was to merge DFFS and BizRadio and for Dan to give up a significant, if not complete, ownership of DFFS to BizRadio.  This would align the interests of management, shareholders and bond holders of both firms.  Dan knew this.  The Shaffer plan is the same plan I outlined for Frishberg a year earlier.  It is old news.  Dan apparently did not keep or remember all of his emails.

Gallagher: Dan Frishberg clearly explains in his letter to the investor that in early 2010 that he had an investment/advisory firm look at BizRadio and offer opinions as to what needed to be done to make this a viable business enterprise.  His comments were as follows:

Mr.Shaffer reviewed the numbers, based on actual revenues and expenses of BizRadio and Daniel Frishberg Financial Services. He concluded that BizRadio was highly successful at generating business for financial services companies such as DFFS, Del Walmsly, Online Trading Academy, Ray Lucia and others, but was, in and of itself not likely to provide a good return on investment in the current environment.

He gave it to me straight. “If you combine BizRadio with the Investment Advisor by creating a holding company which  holds both assets, it can produce a very promising company with a solid business model and will likely attract the capital it needs. On its own as a separate business, BizRadio would not be nearly as viable.”

Since you were there before the end of 2009 and/or 2010, what perspective do you think that Dan Frishberg had regarding the viability of BizRadio?

Cofall: He knew the answer to the question before I left because I told him.   Dan Frishberg knew well into 2008 that BizRadio was not, I repeat, not a viable business enterprise on its own.  BizRadio believed in owning its stations instead of leasing airtime.  BizRadio did not own or control the content of its shows and hosts.  BizRadio did not believe in advertising revenue models and Frishberg was noted for saying these “old” models did not work.  BizRadio needed reliable revenue sources.  God knows it had a reliable expense structure!

Gallagher: How do you know this as fact?

Cofall: I received the email below from Frishberg after a heated discussion I had with him about fiduciary responsibilities, conflicts and shareholder value.  In this email, Frishberg boldly lied about BizRadio being part owner of DFFS (“FJS”) and Laffer Frishberg.  How anyone could solicit and accept funding for BizRadio after the date of this email, January 2009, will be a legal debate for some time to come.  And to suggest that if it is profitable for his advisory firm, it is profitable for BizRadio investors ignores the different shareholder and bond holder groups.

From: daniel
To: Cofall, Dan
Sent: Sun Jan 25 21:24:42 2009
Subject: RE: 870AM

I am grateful. I was the one who asked you to help. your points are well taken . would love to talk by phone or video right now. You are helping me think this thru.

My priorities are wholistic.

Bizradio is part owner of fjs. It is part owner of laffer frishberg as well as the educational facility. As a radio station, it does not generate enough money to justify its existence. As a marketing arm of fjs, lfw, and trading academy it is effective and can be very profitable.

The bottom line – if it is profitable for fjs, lfw and the trading school, it is profitable for the investors in the radio network. If not, it is not.

Can we talk now? You are helping me with this conversation.

Gallagher: O.K. I’m a bit confused.  I know that LFW means Laffer, Frishberg, Wallace fund and if I understand that correctly that is the fund where 60+% of the monies raised were “invested” in BizRadio.  What I read from the email from Dan Frishberg above is that BizRadio was a “marketing arm” of LFW yet everything I’ve seen to date doesn’t seem to disclose to investors that BizRadio was a marketing arm.  What am I missing?

Cofall: I believe that many if not all of the attendees (except for one) at the BizRadio investor meeting held in Houston several weeks ago were shocked when we discussed that Frishberg would openly say that BizRadio was a loss leader for DFFS.  My guess is that BizRadio investors were not scrupulously informed of this detail prior to their investment.

Gallagher: So what is FJS, as I’m still unclear? (too many initials to keep up with)

Cofall: Frishberg, Jordan, Stewart – that was the original name for the RIA.  It eventually became DFFS (Dan Frishberg Financial Services).  There were many names and iterations as original partners were bought out.  Overall, that is the name for the RIA.

Gallagher: So let me get this, Dan Frishberg states in his email that “As a radio station, it does not generate enough money to justify its existence.”  Wow…it’s early 2009 and Frishberg knew that BizRadio was nothing more than a loss leader for investments that either were under the control of his RIA or part of the web that included investments that David Wallace promoted.  Hum…are you familiar with David Wallace?

Cofall: Yes.

Gallagher: What do you think he know about the financial position of BizRadio?

Cofall: I can’t read his mind.  He’s an intelligent man and had a good political career.  He had access to more information than I did, but I think he had the best interests of the investors in mind.

Gallagher: How did you respond to the Dan Frishberg email?

Cofall: I suggested that if you are a radio network, act like a radio network and care about your content and signal.  I repeated that BizRadio had needs that DFFS (“FJK”) did not.  I emphasized that his priority should be BizRadio, not FJK.  Read for yourself…

From: Cofall, Dan []
Sent: Sunday, January 25, 2009 8:18 PM
To: daniel
Subject: Re: 870AM

I get your point as I always have. I did not start this new search for a new station. I was asked to help and test the signal. Shoot the competition, not the messenger.
You can make an argument for abandoning the Metroplex and that may be your answer. It seems that if you intend to move to a new station, it would be for a better quality product or for lower costs. I have suggested for some time that you should rent and not own. That went for 1190 over 1110 when I told you that it was available months ago for $25k LMA. That goes for the station and facilities and Academy locations. Use your capital effectively and use it to grow, not to dig in. As you always say, be nimble.
The real issue is whether you are driving folks to FJK seminars or if you are building value for shareholders in a network. It is my opinion that a bad signal is a bad signal and if we are a real network, we should lead with a good signal. The quality of the message and the signal drive revenues from shows and from advertising and revenues drive shareholder value. We cannot maximize revenue with below market signal quality.
I believe that the consensus is that the markets I drove today are the core audience for FJK in Dallas. I believe that Danny and Dave share this opinion. Further, I believe that 870 will increase the number of complaints and reduce the number of listeners and will reduce the number of qualified potential clients for FJK and the seminars in the Metroplex. FJK can survive quite well with a small listener base but BizRadio cannot. I cannot speak to the San Antonio market.
I am not trying to be argumentative and I know you will make your own decisions. I may just not understand each of your priorities.
Dan Cofall

Gallagher: What happened with the On Line Trading Academy?  I thought that was bought by BizRadio and then I heard that the franchisor took the franchise back.  Help?

Cofall: It is my understanding that the national franchisor took back OTA but you could confirm that with Vince Rowe.


While we talked for a while longer, it became evident to me, at least, that Dan Cofall had been seemingly forthright with his responses and, more importantly, was able to back up his comments with documentary proof.  Amazing sometimes the impact of an email sequence.

I was most taken back with the comment that Frishberg made in his email when he said, “Bizradio is part owner of fjs. It is part owner of laffer frishberg as well as the educational facility.”  I had to re-read this several times.  But the more I read it the more I came to feel that perhaps this email was a “smoking gun”.  Here, Dan Frishberg is stating that BizRadio has an ownership interest in “his” RIA” – the same one that was transferred or sold in 2010…the same one that Frishberg wrote to investors in late 2009 needed to be an asset of BizRadio…the same one that he most recent adviser in 2010 suggested needed to be transferred or owned by BizRadio if it (BizRadio) were to have any economic viability.

Now, let me ask this question… if Dan Frishberg knew in early 2009 that BizRadio (without the RIA, LFW and the On-Line Trading Academy) was not a viable entity, then how could he continue to allow Kaleta, Wallace and others (perhaps) to continue to get money to keep it going?

I’m not an attorney, but “fraud” is often a function of intent and if Frishberg knew better but took no action to protect investors, then it would appear that he committed fraud.  Of course, law enforcement and the courts would ultimately make that determination.  But when you say that BizRadio is a part owner in the RIA and yet, at least thus far, NO ONE has said that Dan ever gave up any commission money from the RIA to BizRadio or that the sale/transfer of the RIA to Bill Heath of Barrington Financial Advisers benefited BizRadio – then how could you draw any other conclusion except that Dan Frishberg was willing to scam or defraud investors for his own personal gain?

Help me understand how another conclusion could be draw…cause I’m truly open to a differing point of view!


Dan Frishberg speaks – addressing investor concerns!

May 2, 2010
For several months many of you know I’ve been writing about Biz Radio, Dan Frishberg and the rather amazing turn of events that seems to indicate potential investor fraud and the likelihood that some, if not all, of the principles involved will face the scrutiny of the federal government – both civilly and/or criminally or both.

Likewise, as you also may know, I’ve, on several occasions, asked Dan Frishberg to participate in an interview so that he could have an opportunity to share his perspective.  If for no other reason, Dan could have a forum to make his side known and become, what in my opinion would be, honest and transparent.  I have found over many years of making mistakes, that if you are open about the choices you’ve made and lessons that have followed, folks are at least willing to understand or try to understand.  But – Dan has, thus far, ignored my requests.

Below (in blue) is reportedly a message from Dan (to an unnamed individual) that was provided to me.  In essence, Dan (assuming Dan wrote this) is sharing his perspective and while he did not write this to me, it is the best information I have that might provide some insight into his thought process.  PLEASE NOTE:  I will make comments from time to time and my comments will be (like this writing) printed in black.  Dan’s comments are always in blue in this blog.

The content below is from an email that was forwarded to me.  The email was written on April 4, 2010.  The original recipient was not the source of my information, however, I am appreciative of those who are willing to keep me up to date regarding what is happening in the BizRadio world.

I want to respond to some of the points you bring up. I have spent a good deal of time responding to your feelings because they are important to me. I am very troubled by the misinformation flying around. These facts are easy to check, and I encourage you to do so in order to understand what is actually going on.

I asked to attend all of the last few meetings scheduled by Wallace but was barred from coming. In the last meeting I was very resolute and I was threatened with being forcibly removed. I did not feel that would do anyone any good, so I agreed not to attend.

GALLAGHER COMMENT:  I respect what Dan is saying, but I have to say, that if I were in his shoes, I would attend welcome or not.  The reality is – unless he has something to hide – being open about where things are and sharing his plan to bring investors whole would do a great deal to diffuse this horrific mess.

This did in fact give investors the impression that I am avoiding the group discussion. This is not correct.

BizRadio’s Plan

Months ago, a plan was proposed by one of your fellow investors/creditors of BizRadio and Wallace Bajjali. The plan recognized the fact that while the recession was not kind to media companies, expecially (Dan’s misspelling) the radio business, it was a good time for a Registered Investment Advisory firm. Daniel Frishberg Financial Services had done more than $70 million in new assets under management. Mr. Shaffer is an experienced businessman who has built and successfully sold businesses, and I had asked him to serve on an advisory committee I formed, along with other successful and experienced businessmen. None of these guys had any incentive to give anything but their honest opinions.

Mr.Shaffer reviewed the numbers, based on actual revenues and expenses of BizRadio and Daniel Frishberg Financial Services. He concluded that BizRadio was highly successful at generating business for financial services companies such as DFFS, Del Walmsly, Online Trading Academy, Ray Lucia and others, but was, in and of itself not likely to provide a good return on investment in the current environment.

GALLAGHER COMMENTS:  Wow…that was one of the first times I’ve seen someone come up with an honest appraisal of this business.  The program was a feeder to attract folks to put their assets under Dan’s management and therefore Dan could make money.  BizRadio was, not however, a good investment in and of itself.  Sha…  Most anyone who was associate with BizRadio knew that years ago.  You can’t run a radio station without substantial advertising and assume that you can make money.  The question I have is – why did it take so long for Dan to figure that out? And, why would Dan take investors money to fund BizRadio when it had no practical chance of succeeding on it’s own merits? And, was he that dumb or was this a scam to grow his numbers and income at the expense of the investors?

He gave it to me straight. “If you combine BizRadio with the Investment Advisor by creating a holding company which  holds both assets, it can produce a very promising company with a solid business model and will likely attract the capital it needs. On its own as a separate business, BizRadio would not be nearly as viable.”

I thought about this, consulted my wife and children and our family decided that this was the fair and honorable thing to do, and that in the long run, such a combination would be good for the BizRadio investors and would therefore be good for our family as well. Sharing our company would be a sacrifice in the short run, which would yield long term positive results for us and everyone concerned. We decided to accept and support Doug Shaffer’s plan, and to refine it.

This plan would include equity participation, has the support of many knowledgeable investors and would allow BizRadio to meet all its obligations.

GALLAGHER COMMENT:  This goes to the proposal that was done in December 2009.  Dan Frishberg is right here…this is the only plan that would make sense.  But, here’s the question that I can’t get anyone to answer:  If Dan Frishberg were committed to investors of BizRadio and supported the recommendations, then why did he transfer over the RIA to another party and not give it to BizRadio so that BizRadio could function and provide a fair return to investors?  Was Dan covering his own income by not making the transfer that he says here he supported?  Dan – why doesn’t BizRadio own your RIA?

I believe if you look into the plan you may also support it.

What is there to lose by getting more information? The investors’ plan does not require anything different from what we have already done with great success. In his calculations, Shaffer actually assumed much less success than we have experienced in Houston – more akin to the results our manager at the time, Daniel Stewart was producing in Dallas.

The Form of the Notes

I believe this is the issue that is at the bottom of this dispute – the  hidden agenda if you will – the character of the notes now being characterized as “Secured Notes,” of WB. The following is a copy of the term sheet submitted to DFFS by Mr. Wallace personally, as the description of the offering. You should also note WB accepted these funds, but most investors did not receive the actual documentation until they requested the documents later. When clients contacted us and told us they had not received documentation, we obtained it from Wallace, but the documents were not what Wallace offered, what we approved, and what the clients signed up for. The following is the term sheet submitted by Wallace at the time the notes were being funded by our clients.

GALLAGHER COMMENTS:  Stop…before you review the “terms sheet” – here (unless I’m reading this wrong) Dan is saying that Wallace Bajjali (aka David Wallace) committed fraud by saying one thing and providing another?  Interesting and I’d love to hear David Wallace’s comments on Dan’s assertion.

11% / 48-Month Secured Debt Financing Trust Agreement

Lender Pool: Pool of “Individual Investors,” each owning an undivided, pro-rata interest in certain collateral and cash flow proceeds generated off of certain secured debt instruments (the “Notes”).

Agency Agreement: Wallace Bajjali Investment Fund, LP (“Agent”) shall serve as the Agent on behalf of the Lender Pool. In such Agency capacity, the Agent shall be responsible for enforcing any and all collateral and collection rights, as well as causing the Borrower to make payments for the benefit of the Individual Investors.

Borrower: The Borrower under the Notes shall be various entities affiliated, or to be affiliated, with the Agent.

Use of Proceeds: To acquire or finance certain assets consisting of real estate, the operations of various radio stations, including, but not limited to, the acquisition of the underlying FCC licenses or other private equity investments.

Advance Mechanism: The Agent shall establish an interest bearing bank or government secured account (the “Bank Account”) in which the Agent shall deposit the proceeds from the Individual Investors. While the cash proceeds are maintained in such Bank Account, the overall return for the Individual Investors shall be the interest earned on such Bank Account. However, once the cash is further deployed pursuant to the Notes, then the yield shall adjust pursuant to the interest stated on the Notes.

Loan Amount: The ultimate loan amount, as to any single advance, will be determined by the Agent, provided that such advances shall conform to the general terms as outlined herein. Each Individual Investor in the Lender Pool shall share, on a parri pasu basis, in all collateral rights, including the rights in the Bank Account, of all Individual Investors.

Loan Repayment: Final Maturity of any and all Notes must be earlier than forty-eight (48) months from the date of funding. The Notes shall maintain a provision such that the Borrower may provide a repayment of the principal amount, on an annual basis, equal to 25% of the principal amount per year. Notwithstanding the foregoing, and during said forty-eight (48) month period, the Agent has the ability, without penalty, to refund any and all cash proceeds (including all principal) to the Individual Investors should the Agent determine that it does not have an Investment available that meets the underwriting criteria as outlined herein.

Interest Rate: 11% on any advances up to a 60% Loan to Value (“LTV”) for Senior Secured Debt Instruments.

Security: Perfected first lien security interest on all tangible assets of the Borrower.

GALLAGHER COMMENT:  I’m lost, but I don’t have a clue how David Wallace could promise anyone connected with this investment an 11% return.  This smells of just what happens when a Ponzi scheme is beginning to collapse.  Sorry, but this doesn’t seem to make sense…maybe someone else can offer some insight.  IF SO PLEASE COMMENT!

Many clients have brought to our attention the fact that this “single asset note,” was not what they expected or signed up for. I have agreed with them, and have brought this to Wallace’s attention. I suggested to him at that time that changing terms after the fact would not stand, and that taking that position would create problems for his and his company. I informed him that while we have no desire to enter into conflict with him or his company, since he is associated with our clients, however we must agree with the clients that this “after the fact” separation of these notes into single asset notes may have certain benefits to him and his company, but that it was improper.

GALLAGHER COMMENT:  Wonder if Dan is accurate in his characterization above – cause he sure is acting like the “white knight” there to help the investors.  Seems to me that’s pure posturing.

I did not obtain an answer from Wallace about how he would deal with these client complaints, with which I clearly told him I concurred. His answer came with this new campaign to discredit me and to destroy BizRadio. This will be as damaging to Wallace investors as it will be to anyone else, but he has no skin in the game. This is a shrewd attempt to discredit me and takes attention away from this issue by causing noteholders to want to foreclose on the KTEK asset. This would free WB real estate assets. This is actually what destroys your security, not the BizRadio plan,

You may remember that one of the investors asked Wallace at his meeting how did some administrative assistant get to decide after the fact, which single asset would securitize which note. Obviously this information would have to be part of the offering from the beginning, so the investor could assess the risk. Note that Wallace failed to respond to this question at the meeting.

You would not have taken on this single asset risk, nor would I have approved it. The risks of investing in each asset are clear and disclosed in the offering Memoranda that accompanied the equity offerings.

The debt offering made sense since it was clearly touted as secured by a 60% debt to equity ratio and a diversified portfolio of assets.

To assign all of your debt to one asset is in the opinion of our attorneys improper. Also notwithstanding the “agency” language, we have a legal opinion stating that the notes are clearly liabilities of Wallace Bajjali. BizRadio owes money to WB, and WB owes the money to you, the creditor.

In our view, and according to the offering documents, you debt is secured by all the assets of WB. This is clearly described in the term sheet, which was the document we received to approve the offering.

I will be happy to discuss this issue with anyone who wishes to, and we have the emails from Wallace showing these and other variations on offers that make the intent of the offering very clear.

GALLAGHER COMMENTS:  Really Dan?  You’ll be happy to discuss this issue with ANYONE who wishes to?  Wow!  I should ask for an interview again.

You brought up the question of informing the creditors of failure to make payments. In our view and in the view of counsel, the noteholders were the Wallace Bajjalie Fund which we kept in touch with and up to date at all times. We did not know WB was trying to make you into the note-holder. However, as you note in your email, I have always made myself available to discuss these issues.

Failure to Make Material Disclosures

Two people attended the meeting to help Mr. Wallace give what in our view is a purposely incorrect impression, Dan Stewart and Dan Cofall.

  1. Dan Stewart and his “advisor” Dan Cofalt identified themselves at the Wallace meeting as investors.  Stewart’s family has made investment, though Stewart himself has never done so. What they did not tell you, and what Wallace also never told you was that these people run a competing RIA firm, and operate a competing radio station. Stewart, Cofall and Wallace suggest that they do not believe in the potential of the BizRadio holding company plan. In fact, they were trained by me personally, and are doing that exact same business, executing the exact same plan in Dallas right now. They suggest that the plan will not work, yet it is working for them and they will try to do the exact same plan the second they get the opportunity.
  2. At the meeting it was suggested that the radio station could be sold for more cash than through our plan, and “it would be better to simply get 40 cents on the dollar now and walk away.” This is totally misleading. There is no legitimate buyer for close to the Salem bid. If there had been, we would have accepted it. If a better bid was to arise, offering cash, we would still gladly accept it. That is not how this is going to work out. This group’s apparent intention is to drive the company into bankruptcy so they can buy the station for much less than Salem offers. If they are successful with this scheme, and are able to get Salem to walk away, the result will be that you will receive 10 or 20 cents on the dollar, they will get a chance to buy the station for next to nothing. They would then be free execute a plan similar to Shaffer’s (which I support), but in this case, you would not be included. They would make a fortune and not share it with you. For emphasis, I again wish to note that the same people who assert that our plan will not work are now engaged in trying to do exactly the same plan – one which I taught them to do.
  3. Fact – Cofall, was accepting a salary from BizRadio to run our operation in Dallas in 2008 and 2009. He was charged with identifying a station for us in Dallas. When he found one on BizRadio’s nickel, he promptly resigned and contracted the station for himself. Also while working for DFFS, Stewart had secretly assumed a position on the Board of Cofall’s company.
  4. Fact – Cofall also operates a debt purchasing corporation, and he apparently became disgruntled when DFFS did not agree to fund Wallace’s plan for injecting capital into Cofall’s debt buying business.  Wallace actually attempted to forge another roll-up with Cofall but failed for lack of investment funds.
  5. Fact – Stewart was an original partner in DFFS, and was fired for personal problems that were clear and not important for the purposes of this letter. You may make further inquiries on this if you wish. He had made a $30,000 investment in our firm in the early 1990’s and was bought out for approximately 400% of that, even though fired for cause by his partners.  I took his side at that time, trying to win for him another chance to get his life together, but the other partners were adamant. To his credit, he did bring his life together and I immediately hired him to give him another start. Ironically, Wallace and Cofall who are using him now, were his most vocal critics when he worked for us.
  6. Wallace suggests that this plan, which he now “doesn’t like,” is similar to a plan he submitted years ago. In fact, the plan Wallace submitted was for another in his roll-ups, which would in effect allow him to trade shares of his real estate management company for our investment advisory firm. Please note that we immediately accepted the current investor’s plan described above. We had rejected Wallace’s plan outright, because it was simply amounted to a sale of his business to us and to our equityholders. Note that Wallace’s business has to this date, still not produced any successfully completed transactions. While we were impressed by Wallace’s hard work and articulate presentations, he has yet to produce any tangible benefit to anyone by his work. Our position has been to stand aside and wait to give him a chance to perform before investing more.
  7. A check of Wallace’s history before he became mayor will reveal that he was in the business of doing “turnarounds.” These turnarounds in virtually every case led to bankruptcy and few if any businesses were ever saved by his process. After becoming mayor, he apparently abandoned that idea and began an idea which I thought was terrific – creation of public/private partnerships. In his apparent distress, he seems to have reverted to the old MO of driving companies into bankruptcy- or burning down the building to save it.

GALLAGHER COMMENTS:  Dan Frishberg makes many assertions here and I’d be interested in what comments might follow.  I will make a few myself:

  • Many people have radio programs and I suspect that they have those programs to promote their business.  Dan Frishberg is no different.  Rather, the question is – do these folks mislead investors and use the funds of others to promote themselves without full disclosure?
  • To Frishberg’s comments that there were no legitimate buyers…apparently he felt that Siddiqi was otherwise he would not have changed from 1110 AM to 1180 AM.  Likewise, Frishberg would still be on 1180 AM today if he’d had the finances to continue his show there.  All evidence shows that Frishberg was more interested in the continuation of his show, rather than honoring his lease sell agreement to Siddiqi and returning money to his investors.  Would it not be possible (if he had grown his RIA assets by $70 million) to have been able to get a simple $150,000 letter of credit so he could stay on 1180 AM?  Seems that Dan says one thing and his actions prove (he self-servingly) will do another.
  • Dan…the money man – makes some serious accusations here.  Wonder what the folks identified will say (if anything) in response?

The Litany of Errors

In the interest of brevity, I will address only one egregious misrepresentation here. I hope at some point we can talk about some of the others. There are certainly things that I would handle differently the second time around. I do not wish to assert that I have been perfect or error-free in dealing with a horrible recession and a complete change of the economy. That is not my point.

I am only interested in correcting manipulative distortions and factual misrepresentations. One case in point is the acquisition of the Online Trading Academy, which the recitation at the meeting suggested was one more in a line of management snafus.

From the very beginning, we had planned to create a BizRadio Academy as one of our most important profit centers. In 2007, we began planning this operation, especially noting the apparent success of BizRadio’s customer, The Online Trading Academy Franchise operation.

We did a test and marketed a course by John Sheely and earned $70,000 on one classs which took us only two weeks to market. We also tested a smaller class by our personnel, which earned around $18,000 which sold out immediately, as well.

Having proven the concept, I approached our client, the CEO of OTA Texas and told him we were going to go into competition with him. I suggested that the most profitable thing he could do was to enter a partnership with BizRadio where he would provide content and we would market it. This would yield us significant profit with little or no extra investment by us, and would preserve OTA’s market share, since they would not be in direct competition with BizRadio.

At that time, I was experiencing a serious illness which made it very difficult for me to perform some of my management duties. I continued to do my program and to manage our DFFS portfolio, but Wallace volunteered to help with the management of BizRadio. Also, at that time, Wallace was just stepping down as Mayor of Sugarland, and I had been impressed with his performance as Mayor. Wallace agreed. As acting COO, Wallace was assigned to complete the joint venture with OTA Texas.

Instead of doing the deal as assigned, Wallace came back with a new idea. It was to purchase OTA Texas for 5 times profits. Wallace and his staff did the due diligence and determined that the company was earning a little over a million dollars a year, and the price was settled.

The purchase would be done with moneys earned by OTA. We expected to be able to add to the sales, because of the obvious synergies, and the monies expended would be accounted for as invested capital, not expense. After all the cost-cutting, Wallace believed this acquisition would allow the company to become cash flow positive in 2009. I agreed to the acquisition in this form.

For whatever reason, the OTA sales fell far short of the mark. There had apparently been a trend toward lower sales that the Wallace team had not picked up. We were able to rescind the deal based on the fact that the accounting numbers of previous years did not pan out.

We were able to get OTA Central, the franchisor, to buy back the franchise and the agreement terminated. The franchisor also terminated their agreement with the previous owner at the time. Their readiness to buy the franchise back when we asserted fraud, and the fact that they terminated their relationship with the former owner shows that there were problems with the deal itself, if not with the idea of the acquisition.

I believe the relevance of this story is that at the recent investor meeting, this acquisition was presented as “another management screw-up,” when in fact the purchase had been conceived by and executed by Wallace. This is a clear case of the kind of misleading information being disseminated by Wallace and friends. As CEO, I am always responsible for whatever happens on my watch, but the way this transaction was characterized at the recent meeting was purposely misleading.

As in all of these items, I do not ask anyone to take anything at face value. The facts here are easy to check. For example, in this case there are literally hundreds of emails and phone calls between Wallace, BizRadio’s attorneys and the sellers.

To make the situation more clear, here are some important questions to ask yourself:

  • Why does the note you received read so different from the term sheet submitted at the time you made the loan? Does this benefit you? Who benefits from this shift of security?
  • If BizRadio wanted to borrow money directly from you, why would it need Wallace Bajalli? Is it not clear and obvious that these notes were designed to add diversification?
  • Is the current attack meant to deflect attention from the issue of these WB notes?
  • Why did Cofall and Stewart not identify themselves as running a competitor Advisory firm and a competitor radio station?
  • Why did Wallace not identify them as such?
  • What would happen if they drive the company into bankruptcy and are able to create a forced sale of the station asset that was to provide the necessary capital to grow the company and make investors whole?
  • Why are you being asked to judge the BizRadio/Salem plan without allowing the plan to be presented to you?
  • If the investor plan did not have merit, why are Cofall and Stewart working the plan right now in Dallas?
  • How many cents on the dollar will you get if they are able to make Salem lose interest, and are able to buy the station for a million or two when there are no other bidders?
    • Would Wallace be willing to put in writing that he will accept no additional funding or jobs from anyone associated with Cofall?

GALLAGHER COMMENTS:  I guess I’m missing something, but it seems that Dan Frishberg has done two things in this rather long response: (1) suggested that David Wallace is really the person who is at fault here (successfully ignoring Al Kaleta, etc. and all that he did related to BizRadio) and (2) seems to have a fixation with some guy named Cofall (apparently a competitor in the business radio market).

What I’ve yet to see is Dan Frishberg truly taking responsibility for the dramatic downfall of BizRadio and the investment that investors were duped into.  But, as investigations unfold, I’m sure more will come to light.  For now…here’s the best I’ve got from Dan Frishberg that shows insight into his thought process.

I welcome comments – especially from folks who can help clarify some of the comments that Dan makes here.


Dan Frishberg – The Money Man – touts structured bonds and notes. Is that what he should be talking about?

April 26, 2010

Just the other day, when all the hoopla about Dan Frishberg seemed to be dying down (of course we all knew that was a momentary lapse), I received another of Dan’s famous emails.


Trillions of dollars of savings have been wiped out over the last ten years. Sadly, much of it has been lost through trying to “make it back” after the multiyear bear market that started in year 2000.

Here’s one good reason for the frustration.

The first time I saw this picture, I immediately understood the problem.

Up until that time, I thought of our country as having had some “ups and downs.” But measured in the global reserve currency, gold, you can see that even when we feel we are doing well, we are losing ground.

The fact is, even if you had better than average results investing in the U.S. over the past decade, you’ve gotten poorer than you were ten years ago. You’ve lost purchasing power, and now, just when we are really getting a handle on what’s happening to us, we are reluctant to do anything different, because most of us just can’t afford any more mistakes.

As always…I am amazed that I, of all people, am included in his infamous investor rants about where the market is going and how he can help you with your investments.  In fact, if you follow the link provided by Dan you’ll find six opportunities to give him your information so he can help you through touting the fact that he is a Registered Investment Adviser.

Don’t know about you, but here are some questions I think Dan would be better advised to raise and answer:

  • Since you touted the revenue generated from your RIA as the economic way for BizRadio investors to finally receive a return from their investment in December of 2009 – what have you done with earning from your RIA to help BizRadio investors?
  • Do you really think that you currently have the credibility to continue to tout your role as a Registered Investment Adviser considering the investigations that are currently underway?
  • It would appear that is an asset of the former BizRadio.  Why do you use that asset as if it were your own to tout your own venture and radio show?  Should that not be abandoned since it appears that you have abandoned the investors of BizRadio?
  • Knowing that Al Kaleta was banished (so to speak) from investments and BizRadio by the SEC, what motivated you to continue to allow him to be a part of BizRadio?
  • What effort, if any, have you made to pay back Rahan Siddiqi – since he advanced you six months lease on 1110 AM – the station you kicked him off of?

Dan…as the wall crumble around you, don’t you now think it time to become ethical and transparent in your financial actions and take steps to right the wrongs that many of your investors feel they’ve been subjected to?


BizRadio – Dan Frishberg: The Great RIA Hoax… yet, another nail in the coffin…

April 19, 2010

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.

Let’s continue to Page 2

Yes…there’s more…Page three

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.