Dan Frishberg apparently in violation of SEC order not to offer Investment Advice. Will there ever be Justice in this case?

November 6, 2012

Hello everyone Dan, here. How often do you hear yourself saying “no I haven’t looked at that yet, but I’ve been meaning to?”

Thus began an email written to my by none other than Dan Frishberg.  Yes, Dan Frishberg of disgraced BizRadio fame, the same Dan Frishberg that is banned from the SEC in offering investment advice…not that it seems the SEC has any teeth when it comes to Dan and his continued radio commentary.

I just read yet another email from a frustrated trader telling me that the trading techniques, the pattern recognition software, or the black box strategies that he believed in are simply not working.

Wow…again I’m confused.  You received “yet another email from a frustrated trader” – but Dan you’re not supposed to be offering investment advice so why would you be receiving any emails from traders?  What am I missing here?

Brokers are telling their customers to ignore their losses and hang on, but that’s what they always say. Sometimes that advice works, but it has also resulted in some of the biggest losses in the past twenty years.

Oh my…”some of the biggest losses in the past twenty years” – wonder if that isn’t exactly what happened to people – good folks who couldn’t afford to lose – when they listened to your line about BizRadio and why they should invest in you.  Dan tell me – if they lost in you, why should they now listen to you – especially when you’re not supposed to be offering investment advice?  Damn this perplexes me!

One listener said he has finally realized technical analysis doesn’t work. This isn’t true, the current price is unquestionably a key part of the story but this is only part of it.

Only part of the story…seems that’s a mantra for you.  Has anyone who invested with you in BizRadio ever gotten the truth – the full story or even as much as an apology?

The paradox of investing is – it’s easy to make money when you stop searching for the easy answer.

Yet you and Al Kaleta offered “easy answers” to investors who by all accounts were defrauded.  Have you made restitution?  Have you made it easy for them to recover their monies?

Instead, get an update on what’s working now — the most up to the minute insight into the trends, turning points, and my best stock and option trade ideas in my all new newsletter, Whats Working Now.

You do have a big set of (whatever)…get “my best stock and option trade ideas” – good lord is that not in direct violation of the SEC requirement that you not offer investment advice?  Justice?  Doesn’t seem to be any here!

CLICK HERE – (I disabled this link as I’m not giving Dan Frishberg a link from my blog)

DANIEL FRISHBERG
THE MONEYMAN REPORT
themoneyman.com

YOUR COMMENTS ARE WELCOME!


One Step Ahead of the SEC – The Mystery behind Dan Frishberg – The Brains Elisea Frishberg – who knew?

June 29, 2011

I feel like I owe my readers an apology.  All this time I thought that “The Money Man” Dan Frishberg was the brains behind the massive theft involved with what is now known as BizRadio.  But it looks like I was wrong.  Seems that all was an illusion.  Perhaps Dan was not that smart after all, cause now the truth behind the myth appears – Elisea!  Shocked…well no, rather mystified.  Read this recent announcement by Elisea and then let’s talk…

I’m Elisea Frishberg and I’ve served as Executive Producer of “The MoneyMan Report” for twenty years. For all that time, when Dan has been on the radio, CNBC,  or Fox, I have been right there behind the scenes.

Through all these years, our show has been about helping people get themselves off the emotional roller coaster so they can be among the very few who actually make money in the markets AND KEEP IT.

Here is a picture of that roller coaster.

From despondency to depression to hope to relief, on to optimism then excitement and euphoria, and the herd’s emotional roller coaster ride starts back down into anxiety, denial (where they feel the market can’t fall any further,) and finally to capitulation. Then the whole thing starts all over again.

It’s all so human isn’t it?

I want to propose a solution – an easy way to escape from the herd and start to enjoy the markets.

Join us for our No B.S., Plain English, No Jargon, Everyone-Can-Do-It…

The MoneyMan’s Live Training…

BECOMING INVESTOR 2.0.

Morning Session: Becoming Investor 2.0

We’ll learn once and for all how to free ourselves from the emotional roller coaster most investors stay stuck on all their lives.

Find out how, at each stage, the markets serve as the primary mechanism to transfer wealth from the uninformed to the smart money, and find out how to make sure you’re on the winning side. Once you’re free, you’ll know there is a profitable play for every situation, just as in baseball.

Take a look at the small space between DEPRESSION and HOPE on the right hand side of the picture. Between those two little dots, investors go through highly predictable emotions…

Contempt: According to the cycle, a bull market typically starts when a market is at a low and investors scorn stocks.

Doubt and suspicion: They try to decide whether what they have left should be invested in a safe haven, such as a money market fund. They’ve burnt their fingers on stocks, and vow never to invest again.

Caution: The market then gradually starts showing signs of recovery. Most remain cautious, but prudent investors are already drooling at the possibility of profit.

What does the smart money do at that point?

First the big hitters begin to buy convertible bonds. Solid companies issued bonds that are paying only about 5% or 6% because they companies are so solid, but in this coming out of panic situation, panicked investors are still afraid to take action, so highly desirable and safe bonds are selling for 70 or 80 cents on the dollar. It happens in every cycle, and now that you’ve learned how to escape from the herd, you’ll be right there, ready to take advantage of the opportunity.

In fact, you’ll wonder how making money could be so easy, and how you missed all these opportunities for all these years.

Next, once they see the high yield bonds start to recover, they know the stock market won’t be far behind, so they take their profits on the bonds, then back up the pickup truck and load up.

While the experts are claiming to be in a “stock pickers’ market” as usual, the educated investor knows very well that at this stage, buying the whole market is better. There will be plenty of time for fine tuning later in the cycle, when the herd is moving between the OPTIMISM and EXCITEMENT stages.

Is it really that easy?

I don’t want to kid you. It really is that easy to understand, but being able to actually execute the right strategies and tactics takes courage, brains, and the ability to resist the hypnosis of the herd. That’s the part you’ll have to practice for the rest of your life.

Cycles constantly repeat. We move through the same seasons every year, and we’ve all learned how to anticipate the changing seasons. We follow the weather, the harvest and the sports cycle every year of our lives. We easily adapt to the cycle of the seasons, so they never surprise us. In fact, we learn to love each season, because we anticipate the predictable changes, and we successfully plan our activities to match.

For example, when the stock market rallies, stockholders win.

At the moment of EUPHORIA or maximum confidence, some chinks in the armor start to show up, suggesting the early signs of economic slowing. Stock prices go down, and the new winners are…

  • the short sellers,
  • the bond buyers
  • the patient investors who kept their cash ready,
  • the put buyers,
  • and the smart investors who Rent Out Stocks.

They all prosper when the rally stalls. Who loses? Simple! Those who blindly buy into the intoxicating euphoria of the herd.

Learn the winning play for every situation. The reason experienced investors and traders are able to achieve better results over time, is that they understand exactly what the herd is going through.

Why? Because this isn’t their first rodeo!

In the afternoon session: Master R.O.S. and you will know…

1. How to increase your annual returns by 20%-30% per year in a sideways stock market.

2. How to pinpoint your most accurate economic and market forecast, then choose the exact right tactics for that precise situation.

3. How to pinpoint your exact risk profile, then choose the exact right tactics to fit.

4. How to decide if collecting rent on a stock is a better deal than just holding the stock.

5. How to take consistent profits from a sideways consolidating market

6. How to choose which stocks make the best long term holds, so you can collect your rents while you minimize the downside risk of owning stocks.

7. How to tell when the speculators are paying too much for their long options.

8. How to understand the profit potential is in an option, so you can consistently outsmart your renters, by out-timing them.

9. How to consistently buy stocks cheaper than their ticker prices.

10. How to know which month’s options offer the best rental rates

11. How to know which stocks in which industries make the best “rental properties.”

12. How to take advantage of market fluctuations to increase market profits by over 35%

13. Learn how the top pros can consistently spot THE optimum moment to collect their rents, by knowing how to estimate future volatility. This skill will also help you know when and how to protect the downside in you equity holdings.

14. How to understand more about how to price the rents on your stocks than the speculators and gamblers whose money you collect.

15. How to use time decay to consistently make the optimum rentals on your long term stock holdings.

16. How to know when to make a above the market offer, and when to accept the current market price.

17. How to know when to pass on a high rent, to keep more upside in your stock holdings.

18. How to read the market trends and directions.

19. The three most common mistakes investors and traders make in reading market trends.

Also Includes a Special Lesson On Iron Condors, the more advanced play for a sideways market. Warning: This technique works terrific in when markets chop and don’t go anywhere, but it may require some more study and practice for some themoneymanreport.com/newsletters-a-reports/item/767-learn-more–sign-up.htmlstudents.

Most people assume that when the markets aren’t moving you can’t make money. Not anymore. Low volatility markets can be extremely profitable.

With the Iron Condors strategy, we will trade a single complex option spread which includes the simultaneous vertical spreads in the same expiration month.

The strategy will advise on market neutral and well defined risk iron condors with limited profit. Each month we will identify an index or ETF that is range bound, allowing us to profit from the non-directional movement. The main advantage to trading this strategy is that it will give you near-term hedging with defined and manageable risk characteristics.

Click here for a short video on exactly what the smart money is already doing at every turn.

Sincerely,

Elisea Frishberg

The MoneyMan Report

Radio Wall Street

Click here if you would no longer like to receive emails from us.

9800 Richmond Avenue Suite 250 Houston, Texas 77042 United States (713) 785-7100

WOW…DO YOU SUPPOSE THIS VEILED ATTEMPT WILL WORK?

Let’s consider the fact that the SEC was supposed to have shut up Dan Frishberg from offering investment advice.  Why?  Cause he was actively involved in defrauding investors according to SEC reports.  Dan and the SEC agreed on the outcome.  From my perspective Dan was to have gone to http://www.zipit.com with his glorious investment advice.

Ah…but there is nothing to muzzle the mouth of Elisea and apparently she was the brains behind the man…after all she was the Executive Producer of “The Money Man Report”.  Well…let me ask some questions:

  1. Elisea…if you were the Executive Producer – did you know that your husband was cheating many people out of their life time savings to support your failed business and personal lifestyle?
  2. No…you say, well then how smart were you?  Shouldn’t (as Executive Producer) you have known that financially BizRadio was in the tank and that you should have helped Dan cut back on lavish expenses?  Oh…I guess not as I’ve been told that you pushed for those lavish indulgences.
  3. And, lastly Elisea – do you have any remorse for those who lost their money at what you now seem to admit was your and Dan’s hand?  What are you doing today to make restitution?  Do you even care?

My strong suspicion is that Elisea won’t answer these questions – as it seems that it’s business as usual for the Frishbergs.

WHAT ARE YOUR THOUGHTS?


David Wallace and Costa Bajjali fined by the SEC for BizRadio related issues! Will Investors Be Made Whole?

May 24, 2011

David Wallace is the author of “One Nation Under Blog: Forget the Fact and Believe What I Say” – wow…I was reminded of that as I began this post and thought how telling.  David and Costa wanted investors in their private placements and it seemed that they wanted investors to “forget the facts” and believe what they said…although what they said led to massive losses when they over invested in the money losing BizRadio driven by Dan “The Money Man” Frishberg.

Fined by the SEC for their roles in misleading investors – David Wallace and Costa Bajjali each have agreed to pay a $60,000 fine.  The SEC news release states the following:

On May 20, 2011, the Commission filed suit in U.S. District Court for the Southern District of Texas against Houston area real estate developers David Wallace and Costa Bajjali in connection with two fund offerings. This suit is a related case to SEC v. Albert Fase Kaleta and Kaleta Capital Management, Case No. 4:09-cv-03674 (filed November 13, 2009) and SEC v. Daniel Sholom Frishberg, Case No. 4:11-cv-01097 (filed March 23, 2011).

The Commission’s complaint alleges that from November 2006 through December 2008, Wallace and Bajjali offered and sold interests in the Wallace Bajjali Investment Fund II, L.P. (“WB Fund”) and the Laffer Frishberg Wallace Economic Opportunity Fund, L.P. (“LFW Fund”). The complaint further alleges that the private placement memoranda (“PPMs”) for these funds stated that investment in any one business would be limited—to 33% in WB Fund and 20% in the LFW Fund.  Both funds exceeded the PPMs’ stated limitations by investing heavily in Business Radio Networks, L.P. d/b/a BizRadio, a struggling media company. As a result, they subjected the Funds’ investors to substantially greater investment risk than the Fund’s written materials disclosed.

The complaint alleges that Wallace and Bajjali violated the Sections 17(a)(2) and (a)(3) of the Securities Act of 1933. Without admitting or denying the Commission’s allegations, Wallace and Bajjali each consented to the entry of a permanent injunction and to pay a $60,000 civil penalty.

The actual SEC Complaint is here:  SEC Complaint – David Wallace Costa Bajjali

The Amarillo Globe News reports the following:

“When we sell the real estate,” Wallace said, “we believe we will be able to absorb whatever we’ve written off as it relates to news radio.”

In written disclosures related to the securities offerings, the suit says, Wallace and Bajjali told investors the funds’ investments in any one business would be limited to no more than 33 percent from the Wallace Bajjali Investment Fund and no more than 20 percent from the Laffer Frishberg Wallace Economic Opportunity Fund.

By May 2007, $6.5 million, or 40 percent, of $16 million raised under the Wallace Bajjali Fund had been invested in BizRadio, the suit says. By the time the Opportunity Fund closed in December 2008, roughly 57 percent, or $4 million, of about $7 million raised had been invested in BizRadio, the suit says.

The result was that Wallace and Bajjali, “subjected the Funds’ investors to substantially greater investment risk than the Funds’ written materials disclosed,” according to SEC filings.

Wallace called it a “technical” problem, saying he and Bajjali thought other money was being raised for the two funds that would have ensured that the limits were not surpassed.

The $120,000 fine wasn’t the only payment Wallace and Bajjali had to make in this case. Last November, in negotiations with Thomas Taylor III, the Houston attorney who is overseeing the SEC-ordered receivership of KCM, Wallace has paid back $92,348 and Bajjali has paid back $45,550 to date, according to the publicly available information. At that time, Taylor said negotiations are ongoing about further repayments by Wallace and Bajjali.

REALLY DAVID A TECHNICAL PROBLEM?

Sorry, but sometimes you have to call bull s**t when you see it.  Technical problem my ass!  David and Costa got their hands slapped when most who lost substantial monies likely feel that more is in order.  It is not a TECHNICAL PROBLEM when you substantially commit massive funds into an investment that you know is a losing proposition hoping that more investor funds would be forthcoming so that you could then avoid the TECHNICAL ISSUE.

SO HERE’S THE QUESTION DAVID – If, as you stated, when you sell the real estate you will be able to absorb what you’ve written off related to news radio – does that mean that the investors who lost millions at your hand will be made whole?  WILL INVESTORS BE MADE WHOLE?  That’s a question those who lost millions would like an answer to.  DAVID WHAT’S THE ANSWER?

THE NEXT QUESTION:  For those who were lucky enough not to be sucked into the Dan Frishberg scambus…doesn’t that mean that their gains (you know when the real estate sells) will be less?  David…REALLY DOESN’T EVERYONE LOSE HERE?

Put clearly – David – if you had followed the terms of your investment private placement memorandum – BizRadio and Dan Frishberg would have been out of business long ago and you would have not been embarrassed at their hand.

The Amarillo report also says:

“We have been impressed with the level of transparency in this issue, as David Wallace has kept us informed throughout the SEC process,” Amarillo Mayor-elect Paul Harpole said in a Wallace Bajjali news release. “We are pleased with this positive resolution and appreciate Wallace Bajjali’s forthright, thorough and ongoing communication about the issue.”

Melissa Dailey, executive director of Downtown Amarillo Inc., the nonprofit group leading downtown redevelopment, said in a statement: “The SEC review ended with a settlement announcement noting a single technical error regarding a Fund managed by Wallace and Bajjali.”

Perhaps David has figured out – stick to Real Estate and out of Radio!  My hope is that the profits from the Amarillo venture might be used to pay the investment losses from David’s mind fart in investing in BizRadio.

YOUR COMMENTS ARE WELCOME!


Has Salem Communications finally figured it out? Dan Frishberg “The Money Man” off the Air?

May 16, 2011

At times, as I’ve followed the Dan Frishberg scam saga, I’ve been mystified by how a company like Salem Communications could keep Dan on the air spewing his nonsense all the while knowing that he’s been busted by the SEC for wrongdoing.  Perhaps I’m wrong, but it appears that someone at Salem has finally come to their senses and removed Dan from his lofty broadcast position.

Seems Houston station 1110 KETK was (for all practical purposes) the home base for BizRadio – Dan Frishberg’s company that effectively defrauded millions – most of which won’t be recouped.  The station was up for sale and as of this writing I do not have confirmation of whether that has taken place yet.  But what is clear is that Dan Frishberg is no longer listed in the stations program line up.  The program line up link is listed here:  http://www.business1110ktek.com/  and note…Dan Frishberg “The Money Man” is no where to be seen.

Has Salem come to their senses?  Perhaps they now see that Dan Frishberg is a liability.  There is little doubt, especially in Houston, that Dan Frishberg’s actions which cost investors millions was nothing more than a glorified Ponzi scheme.

Months ago…many it seems, I also reported that Salem Communications had expanded Dan Frishberg’s coverage beyond Houston to Miami’s WZAB 880 AM and Atlanta’s WAFS 1190 AM – as I look at those web sites today I get mixed messages.

First – WAFS 1190 AM in Atlanta does NOT show Dan Frishberg on their program line up.  Here’s the link:  http://biz1190.com/schedule/ but he is listed as one of their personalities.  Which is it – is he on or is he off?  Here’s the personality link:  http://biz1190.com/personalities/

When it comes to WZAB 880 AM  in Miami – is has been reported that Dan Frishberg was preparing to move to Miami as it was a bit too hot in Houston for him to continue his financial connections.  Perhaps he felt the pickins were better in Miami.  Either way, WZAB still shows Dan Frishberg in the program line up.  Here’s the link:  http://www.880thebiz.com/schedule/

Kinda interesting – here’s what it says about Dan Frishberg on the WZAB site:  “Dan Frishberg grew up in New York and has spent over 40 years studying money and the markets; especially the people who make up those markets. His life’s work has been to strip away all the jargon and finance babble. He talks about money in a unique language: plain English. Frequently appearing as a guest expert on CNBC television, Dan brings unique insights and a down-to-earth approach to investing.”

Perhaps it should say –

Dan Frishberg grew up in New York and has spent over 40 years studying money and the markets; especially the people who make up those markets. His life’s work has been to strip away all the jargon and finance babble, as well as people’s money as he has been charged by the SEC with investor fraud where Texas residents lost millions. He talks about money in a unique language: plain English, and sometimes that talk is so slick that it is quite persuasive even though Dan’s intent may not be for the consumers good. Frequently appearing as a guest expert on CNBC television, Dan brings unique insights and a down-to-earth approach to investing, which he is now banned from by the SEC.  We are proud to feature on our station a person who no longer has the right to offer investment advice, but has a clear way of communicating financial psycho babble so that investors can have no idea what’s really happening to their money.

Seems that the above is a bit more honest and transparent…but who am I to say…?

OOPS PROGRAM NOTE:

According to “The Money Man” website the following has been posted:

The MoneyMan Report Contract with KTEK Houston has ended. The station is currently in the process of being acquired by new owners. We expect the show to be back on the air in Houston in a few weeks.

In the meantime, Texas listeners can catch Dan on the live stream at 7am Central time each morning, by clicking on this link. Or simply click the “Listen Live” tab and tune into 880 The Biz, Miami.

Perhaps there is more to the story…stay tuned and let’s see what shakes out.  Maybe Salem isn’t that smart…maybe they really don’t care who broadcasts on their stations – even a person who’s been banned from investment advice by the SEC – Dan you really are “The MoneyMan”.

YOUR COMMENTS ARE WELCOME!


Dan Frishber’s BizRadio: Tax Relief for Scammed Investors – Maybe? Section 165

January 3, 2011

So…I’m not a tax adviser!  I used to be, but frankly screwed that up many years ago based on the unethical choices I made.  My choices cost me my license, my career and earned me a coveted (just kidding) spot in the federal pen!  How’s that for a disclaimer?

That now said, I know many of you who have followed my work on the Dan Frishberg – BizRadio scam have lost substantial sums of money with little hope of any significant recovery.  So, as the pages of the year 2010 turn into a new year – 2011 – the question is – what kind of tax relief can you expect to receive considering your losses at the hand of Dan “The Money Man”?

Last year this time I was reporting on the same thing, but this time it was for those who had losses from other Ponzi schemer’s like Bernie Madoff and Gordon Grigg.  So let me dredge through some past information and see if this might be of help to the Frishberg’s victims.

As a busines ethics and fraud prevention speaker, I believe in giving credit where credit is due.  Today I received a response to two blog postings I made by Moira Souza Shiver who reminded me about a provision of the Internal Revenue Code that, in many ways, is little known.  Her website can be found here and it states the following:

My name is Moira Souza-Shiver and I am the founder and President of MSS Advocacy Group, LLC (MSSAG).  I’m extremely proud to have established an organization whose main mission is bringing help to victims by attaining the assistance they deserve and were promised.  Working in the investment fraud industry for the past 10 years has created in me a passion to fight for what’s right and even more, has instilled in me a deep respect for victims and the suffering they endure.

My decision to establish MSSAG came from what I describe as a desperate need within the 165 industry.  After serving 6 years with JK Harris 165 Services, LLC, it was clear there was little being done in the form of victims’ advocacy and an organization was needed to help alleviate their suffering.   Believing that investment fraud victims deserve the same rights allotted to other victims, MSSAG was born.

MSSAG is committed to doing everything it can for this cause, including aligning itself with other organizations and advocates that can provide complimentary assistance through established programs.  By combining forces with these types of organizations, we intend to maximize all available sources of assistance and bring hope back to victim’s lives.

Now, before you assume that I have a financial interest in promoting Moira or Section 165, let me clarify that I do not.  But like Moira, I do have an interest in making sure that all aspects of ethics and fraud (including prevention and recovery) are explored.

An excellent article was written in the Journal of Accountancy related to Section 165.  A portion of the article is reproduced below:

When a client is the victim of fraud or embezzlement, for example, CPAs can reduce the client’s ordinary income, recoup any previously paid taxes and minimize future tax obligations by using IRC section 165(c)(2).

Be aware that CPAs who prepare and defend an investment loss deduction under IRC section 165(c)(2) must meet numerous technical requirements and make certain determinations based on examining the circumstances. Section 165(c)(2) deductions also frequently prompt IRS oversight, and in many instances, the standard tax preparation software does not adequately address this deduction, since it’s generally geared to the more familiar section 1211 capital loss treatment. But while section 1211 is an appropriate treatment, using it may result in clients’ paying more taxes than are required.

If a client suffers an investment loss as a result of a fraudulent investment or unethical sales practice, probably the most prudent action a CPA can take, even though there is no requirement to do so, is to suggest the client first discuss it with his or her lawyer. Taxpayers are required to take reasonable action to recover a loss and not doing so disqualifies it for section 165(c)(2) treatment. If the lawyer feels there was malfeasance and it is not practical to pursue recovery due to a lack of recoverable assets, the cost of litigation or other reasons, the loss probably is deductible in the current period. Losses from embezzlement, blackmail, kidnapping for ransom, burglary, larceny, extortion and threats also may qualify for section 165 treatment.

A WORD OF CAUTION:

If you’re considering taking advantage of this section of the Internal Revenue Code – FIND A COMPETENT ADVISER.  Not every CPA or tax specialist is competent to assist you with this complicated section of the Internal Revenue Code.  I strong suggest that you find someone who will provide references and that you verify the results those references received.  DON’T BE SCAMMED TWICE!

Here are some other links that were provided to me that might be of help as well.

http://www.washingtonpost.com/wp-dyn/content/article/2009/04/04/AR2009040404341.html

http://www.journalofaccountancy.com/Issues/2005/Apr/MaximizeTaxBenefitsUnderIrcSection165.htm

http://www.traderstatus.com/section165theftloss.htm

http://www.taxreliefinc.com/165services2.htm

https://chuckgallagher.wordpress.com/2009/03/02/madoff-grigg-dryer-investment-fraud-victims-tax-relief-through-irc-section-165-c2/

http://www.crimes-of-persuasion.com/Victims/theft_loss_deduction.htm

Thanks to Vince Rowe for reminding me of the tax provisions that might help the Frishberg victims.  By the way, if any of you have a recommendation of someone who is competent to provide tax help in this matter in the Dallas or Houston area…feel free to respond to this blog and I’ll be delighted to share.

YOUR COMMENTS ARE WELCOME!


Dan Frishberg – BizRadio: Salem Communications settles Lawsuit with Rehan Siddiqi

January 3, 2011

It’s been almost a year since the world that Rehan Siddiqi lived in was dramatically changed.  Kicked off a radio station that he was joyfully buying, he found himself embroiled in a meltdown of major proportions created by BizRadio’s leader Dan Frishberg – also known as “The Money Man” – although it would appear that Dan’s money to support BizRadio was nothing more than an elaborate scam.

As a refresher, Rehan Siddiqi had entered into an agreement to lease/purchase the former station that BizRadio was aired on in early January 2010.  Asia Vision took the air the first of January on what Rehan thought was their new home.  Dan Frishberg took BizRadio to another station – one that cost him less and seemed to be a solution for the financial failure he was experiencing.

ONE MONTH…that’s all it lasted.  Frishberg (now well documented) couldn’t meet the financial obligations on the new station (he had no credit) and the result – SIDDIQI WAS KICKED OFF HIS NEW STATION.

The result was a lawsuit filed by Rehan Siddiqi for $18 million in damages against multiple parties including but not limited to:  Dan Frishberg, Elisea Frishberg, and Salem Communications.

Today, now almost a year later, this new year is starting with some good news for Rehan Siddiqi.  From reliable sources, it appears that Salem Communications has settled their issue with Siddiqi and as a result – Salem Communications – is no longer a party to the lawsuit filed by Rehan Siddiqi / Asia Vision.  What are the terms of the settlement – I don’t know.  But, this settlement opens the door for one major step forward with respect Dan Frishberg and his issues with the SEC (which still seem to be unresolved – and a lot of folks are wondering why) that is the sale of the station can now move forward with the Siddiqi lawsuit settled.

To be clear – Siddiqi’s settlement with Salem Communications does not mean he has settled with Dan Frishberg or Elisea.  The lawsuit for tortious interference against them still stands – although collecting from Dan or his wife should Siddiqi win the suit might be difficult at best.

I suspect that, based on Tom Taylor’s efforts (the SEC Receiver) the sale of the station will move forward fairly quickly in early 2010.  Who will buy it?  That remains to be seen.  Salem is an obvious candidate as they expressed interest in the station.  Likewise, Siddiqi, at one time, was interested.  Either way, whom ever buys the station, it would appear that this chapter might soon come to an end.  For the investors, however, I don’t suspect that the money from the sale will come close to making you whole as you look at your losses.

THE NEW YEAR’S QUESTION:

With things now open to move forward with the sale of the station, what action is the SEC going to take with respect to Dan Frishberg?  There seems to be sufficient evidence that he was an active part in the defrauding of numerous investors – most of whom will not come close to getting their principle losses back.  Al Kaleta lost his license as an investment advisor.  Dan Frishberg, on the other hand, has not.  Why?

Frishberg – “The Money Man” brand – is expanding with the conversion of Salem Stations to talk business stations, so it seems that Dan buys his suits with kevlar material…as thus far nothing seems to stick to him when it comes to law enforcement – either his investment license (SEC authority) or criminal – FBI, US Attorney or others.  Perhaps 2011 will bring some resolution to this sad affair.

PRIOR POSTS ARE HERE:

https://chuckgallagher.wordpress.com/2010/02/12/biz-radio-and-rehan-siddiqi-when-the-dust-clears-will-siddiqi-be-a-victim-or-a-victor/

https://chuckgallagher.wordpress.com/2010/03/03/dan-frishberg-and-bizradio-slapped-with-18-million-lawsuit-rehan-siddiqi-and-asia-vision-strike-back/

Meanwhile – YOUR COMMENTS ARE WELCOME!


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:

https://chuckgallagher.wordpress.com/2010/04/18/bizradio-dan-frishberg-several-tentacles-to-a-complex-story-every-choice-has-a-consequence/

https://chuckgallagher.wordpress.com/2010/03/03/dan-frishberg-and-bizradio-slapped-with-18-million-lawsuit-rehan-siddiqi-and-asia-vision-strike-back/

https://chuckgallagher.wordpress.com/2010/03/16/dan-frishberg-david-wallace-anatomy-of-an-investment-scam-laffer-frishberg-wallace-economic-opportunity-fund/

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?

I’m just asking?  YOUR COMMENTS ARE WELCOME!