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?


BizRadio, David Wallace, Daniel Frishberg, Ron Crider and the loan that fell through(?): Investors is that the “sound of your money growing or going”?

February 11, 2010

The dots still don’t completely connect.  And what seems painfully missing is any transparency related to BizRadio and it’s CEO Daniel Frishberg.  If there is nothing to be concerned with, then it stands to reason that an ethical business person would take the high road and openly dispell any creditor or investor concerns.  Yet, that doesn’t seem to be happening.  So, let me start by asking this…if it were your business and you were capturing (relatively) negative media coverage from the Houston Chronicle, etc. and you had investors who were expressing concerns – what would you do?


Back in December a screen shot of the BizRadio website reflected that Ron Crider and Rehan Siddiqi were both connected with the station.  See screenshot below:

Ron Crider was listed as President of Broadcast Operations.

Rehan Siddiqi was listed as Vice President of Marketing

And, old news, by this point, Albert Kaleta had entered into his agreement with the SEC (without admitting guilt) that he was to have no contact with any investment advisor.  See SEC news release here and especially here.

WHAT NOW?  THAT THE INVESTOR FINDER (Kaleta – at least that’s what he’s been referred to) IS OUT OF THE PICTURE?

Ron Crider – ostensibly with the approval of Daniel Frishberg, maneuvers to sell 1110 AM to Rehan Siddiqi and move BizRadio to 1180 AM.  So far still not new NEWS.

The announcement is made January 2nd, 2010 by Ron Crider…see email announcement below:

But in a court proceeding just weeks ago Frishberg is reported to have made the claim that Crider was nothing more than a salesperson.  Hum???

Now, if Frishberg did not recognize Ron Crider as CEO then why would he allow an announcement to be sent via email indicating Ron in that position?  Am I missing something?  I can assure you, if I had a “salesperson” sending an email and copying me on it – and that person was claiming to be CEO…first I’d fire them and then make it clear who was in charge and what was to happen.  That, however, didn’t seem to take place till financing fell through and BizRadio and Frishberg were forced back to 1110 AM.


According to Ron Crider’s blog – see here.

I am not the one who lost over 3 Million dollars a year for the past two years at Biz Radio, since I didn’t get here until October 2009.

I am not the one who authorized the purchase of KTEK 1110 AM Alvin/Houston for 7.7 Million dollars. There is no one in the industry that would have paid that much for a critical hours, daytimer at 2,500 watts with no cash flow whatsoever. Now, let’s see who is trying to protect the investors?

In last week’s station licensing dispute, Kaleta was identified as president of at least some of the BizRadio-affiliated companies. Asia Vision’s Rehan Siddiqi produced a receipt signed by Kaleta as BizRadio’s president, though BizRadio CEO Daniel Frishberg said Kaleta never signed such a document.  Now let’s see, who could have signed that document? It couldn’t have been me since I was in Dallas at that time. Could it be Dan is not telling the truth?

Until February 2, 2010 I was firmly in Dan Frishberg’s corner. Tuesday February 2 Dan Frishberg perjured himself blatantly in so many ways. The operative word here is “Perjury”. He told the Harris County Court I was just a salesperson, working at no salary for Biz Radio.  Dan said I was not the co-CEO after he introduced me to 3 Investors meetings to over 200 people as the co-CEO, and further saying I had no authority to do the deals I did here in Houston for Biz Radio. How is it possible to believe that I, at almost 69 years of age old would move to Houston to work for nothing with no authority and be a salesman. I put my own business on hold to work with Dan and build something together. Just how stupid does Dan think his investors are?

Wow…Crider seems a bit testy.  I have heard from investors who are confused about this whole issue.  At first they felt that Crider was the “white knight” – a person who could salvage their investment in BizRadio and return it to a profitable operation.  Then, with Crider’s public comments on his website (blog), there is a feeling that he is insuring the destruction of the station.  As a disinterested third party…I don’t truly know Crider’s motives, but I have to admit, that if I were listed as President of Broadcast Operations in December, signed an email as CEO in January and then became the scourge (just a salesman) in February, I would likely be a bit ticked.


It seems that short term financing was being arranged in order to effect the lease/purchase of 1110 AM to Siddiqi.  As best I can tell there were a lot of moving targets.  Kinda reminds me of the old Ed Sullivan shows where they had folks whose talent it was to keep plates spinning on poles…  A lot of spinning plates were  twirling.

As reported on in an earlier blog…David Wallace (acting on behalf of creditors) was involved in helping with the $1.5 million financing package.  That, however, seemed to fall through on or around the 1st of February (don’t hold me to a specific date as I have not been able to verify a date).  The subordination agreement however is provided below in PDF format.  As you can see…at this time all parties were involved – Frishberg, Wallace and Crider.

BizRadio Agreement


Siddiqi seems to be the one who has been dealt with unfairly.  Agreeing to lease with an option to purchase 1110 AM – Siddiqi began broadcasting in January with a number of listeners sending him joyful well wishes.  Then…as soon as it began – Frishberg (finding himself off of 1180 AM due to failure to pay or provide a $150,00 letter of credit) kicks Siddiqi off the air and accuses Crider and Siddiqi of manipulating him into selling the station for (approximately) 50% of what he paid for it just two years earlier.

Now as Forest Gump said, “I’m not a smart man,” but someone who reportedly is a brilliant investment advisor (Bernie Madoff was called that as well keep in mind), should know that many investments have taken quite a dive considering we are in a severe economic recession.   But, I don’t value radio stations so I am certainly not an expert.  I do know that stations across the US are almost begging for advertisers or those with shows who are willing to PAY to PLAY.  So my guess is (and I’ve talked with hosts of Nationally Syndicated shows) that values for stations have dropped…and dramatically.


Well, that’s a dandy question.  Frishberg, instead of being transparent, is being invisible.  It would appear that he’s hoping this hailstorm will pass…perhaps it will all blow over.  Crider seems to be a bit caustic in his website (blog) comments accusing Frishberg of Perjury.  The investors seemed to have hope that Crider could salvage the station, but that seems to be in question (at least by some)…and probably to Frishberg’s delight.  And last…SIDDIQI is out $180,000 and a station.  His business is likely in ruin, reputation tarnished, and the best he could hope for today is to get his investment back and hope that his audience will support him when he returns to the air (sometime).

Lastly, the question has been raised as to why I’ve written these blogs?  As a business ethics speaker and author, I know first hand that EVERY CHOICE HAS A CONSEQUENCE.  I have made terrible choices and experienced the consequences…and they weren’t pleasant.  Likewise, I’ve made better choices and the outcome was outstanding.  So today, I write this blog to help connect the dots..  Choices and Consequences.

I would love to see a bright outcome for all…but at this moment, it seems that so many of the players are positioned for wins or losses.  Unfortunate!  And, I’m still left wondering if there isn’t more to this than meets the eye.  Stay tuned…

This is confusing! Kaleta barred by SEC from investment firms yet still connnected with BizRadio and Frishberg

February 9, 2010

I can’t quite get my hands around this whole mess, but something just doesn’t seem to connect.  I have found, based on experience, that when something doesn’t smell right…normally there’s a problem.  We might not be able to identify it at the outset, but all the pieces of the puzzle don’t completely connect here.

RELATED TO ALBERT FASE KALETA – The SEC issued the following:

SEC News Digest

Issue 2010-21
February 2, 2010


In the Matter of Albert Fase Kaleta

On Feb. 2, 2010, The Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 203(f) of the Investment Advisers Act of 1940, Making Findings and Imposing Remedial Sanctions (Order) against Albert Fase Kaleta. The Order finds that on Dec. 2, 2009, a final judgment was entered by consent against Kaleta, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and (2) of the Investment Advisers Act of 1940, in the civil action titled SEC v. Albert Kaleta, et al., Civil Action Number 4:09-cv-03674, in the United States District Court for the Southern District of Texas. The Order further finds that the Commission’s complaint in the federal court case alleged that, in connection with the sale of promissory notes made by KCM, Kaleta falsely stated to investors that the note proceeds would be used to make short-term loans to small businesses; that KCM would only lend to creditworthy individuals or entities whose models Kaleta had fully researched and understood; that Kaleta would perform due diligence to ensure that borrowers had the ability to repay their loans; that KCM would charge 12-14% annual interest on the loans, and would profit from the spread between that amount and the 10% promised investors. Instead, Kaleta misused and misappropriated investor funds. Kaleta paid himself, his family members, and his affiliated companies which were not creditworthy.

Based on the above, the Order bars Kaleta from association with any investment adviser. Kaleta consented to the issuance of the Order without admitting or denying any of the findings in the Order, except as to the entry of the injunction, which he admitted. (Rel. IA-2983; File No. 3-13773)

MAYBE I’M MISSING SOMETHING…but the last part of this order states that Kaleta is barred from association with any investment adviser…  O.K., so if I’m wrong, I stand to be corrected, but Daniel Frishberg is an investment adviser – isn’t he?  Regardless, the SEC stated the following on November 13, 2009:

The Commission also sued two other entities, Business Radio Network, L.P. d/b/a BizRadio (BizRadio) and Daniel Frishberg Financial Services, Inc. (d/b/a DFFS Capital Management, Inc.) (DFFS) as Relief Defendants solely for the purposes of equitable relief.

Now one would assume that if the SEC bars Kaleta from association with any investment adviser, and that BizRadio and Daniel Frishberg Financial Services, Inc. were sued for equitable relief, that Kaleta and Frisberg should have become disassociated with each other.  After all, the SEC linked Kaleta’s “investments” to BizRadio and Frishberg.

But…then there’s the Memo that states with some joy that BizRadio is now being heard on 1180 AM a more powerful station… see below:

Now, there’s nothing wrong with moving stations, especially if the signal is better and reach more effective.  But how did they get the contract with 1180 AM?  Seems that Kaleta signed the check for the initial agreement (or so I’ve been told) which is on the BizRadio check.  See below:

But how can that be…?  Daniel Frishberg is the CEO of BizRadio.  BizRadio and Daniel Frishberg Financial Services, Inc. were parties to the SEC Albert Kaleta mess and sued for purposes of equitable relief and yet…ALBERT KALETA signed a BizRadio check for the January payment for BizRadio to be on 1180 AM…?

Oh, and then Entravision exercised their option to kick BizRadio off the air for failing to provide a payment of $150,000 which left BizRadio high and dry.  It was then, and appears to be only then, that Daniel Frishberg disengaged from an agreement with Rehan Siddiqi for his lease of 1110 AM for which Siddiqi had paid BizRadio – Frishberg, et al… $180,000.  While I can’t state this as fact, it appears that Siddiqi (who used to work with Frishberg at BizRadio) is out his funds…and as I stated at the beginning…something just doesn’t smell right.


If the SEC bars Kaleta from association with any investment advisor and Frishberg’s BizRadio was sued by the SEC for equitable relief, then why would Kaleta be signing a BizRadio check for an agreement that seems to have gone south – in a big way?

Is Kaleta in violation of the SEC’s terms?

Did Kaleta sign the check show above or is he claiming it a forgery?

Why did BizRadio seemingly gladly switch to 1180 AM in January 2010 without any issue on Frishberg’s part that he was being taken advantage of?

And, when BizRadio was kicked off 1180 AM for failure to meet the financial terms, was that the event that caused Frishberg to cut bait and leave Siddiqi high and dry – having lost some $180,000?


BizRadio and Daniel Frishberg – Are we watching the slow decline of a legitimate business enterprise or implosion of a business scam?

February 8, 2010

Is this a business enterprises going south or just a Texas flim flam?  Read on cause something doesn’t pass the smell test…

Loren Steffy, with the Houston Chronicle wrote an article on his business blog (dated February 5, 2010) related to BizRadio being allowed to return to the air.  Before, I read that article, I was alerted by another media contact that BizRadio, Daniel Frishberg and 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.

Those articles caught my attention since I was twice contacted by BizRadio representatives, once in 2007 and then again in 2009, to have a show on business ethics on their station.  Both times something just didn’t seem right.  The first time I was invited to the BizRadio office in Dallas and told that my work was just the type of programming that fit the BizRadio format.  Of course, they were not interested in “my work” for their programming content unless I was prepared to pay a tidy sum of money to be on the air.  Pay to play as I call it.  At the time they were on (what I recall and my memory might be inaccurate) 1360 AM in Dallas.  Certainly the station was not one of the higher ranked stations when it came to aribtron ratings.

At the time it appeared that all they were interested in was me paying them money to bring my content to their station.  NOT INTERESTED.

Then, in either late 2008 or early 2009, I was contacted by another representative for BizRadio – again in a pay to play enticement.  When I asked for specific data regarding the stations signal, arbitron ratings, etc. mysteriously the interest in my show disappeared and no calls or emails were returned.  Again, something smelled fishy…but I paid it no attention, after all, in 2009 radio stations all over the country were hurting for revenue.


Loren Steffy with the Houston Chronicle broke the following article:

BizRadio Network’s slogan ringing a little hollow

I began to take notice.  Interestingly enough, it didn’t take long to begin to piece together what appears to be an interesting business enterprise or business scam – right now I can’t for sure tell which…but scam seems to gaining the upper hand thus far.

According to my sources the following seems to hold validity when it comes to the major players:  ALBERT KALETA; DANIEL FRISHBERG; RON CRIDER; and REHAN SIDDIQI

1. According to the Houston Chronicle article:

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.

2.  My sources tell me that Kaleta was a master at raising money.  In many cases, I was told, that when an investor would invest with Kaleta, he would suggest to them that they also “loan” money to, what ultimately, was BizRadio and that those funds would pay a return of 11+%.  Therefore, if an investor invested $1 million, he/she might also “loan” $100,000 for the express benefit of getting that high rate of return.  However, I am also told that with BizRadio losing some $300,000 per month (I have not been able to confirm that number), the only way the investor interest could be paid was from more investment funds pouring in.  THAT’S A PONZI SCHEME, just ask Bernie Madoff.

3.  Kaleta signed an SEC consent order neither admitting nor denying wrongdoing and agreeing not to violate securities laws in the future. His firm also agreed to have a court-appointed receiver take over its operations.  From what I am told, Kaleta also lost his Securities license as part of his agreement.  (At the time of this writing I am trying to get confirmation from the SEC on the license revocation).  It appears that Kaleta took one for the team.

4.   The Chronicle article states: “Neither BizRadio, nor Frishberg’s firm was accused of wrongdoing, but they were named as “equitable relief defendants,” meaning they must repay the money.”  At the time of the initial Chronicle article BizRadio was on the air…but that soon changed.

5.  On or around October 2009, Ron Crider was brought on board to be BizRadio’s CEO (or so it seemed).  Crider was not paid as an employee, but according to sources was introduced by Frishberg at BizRadio shareholder meeting(s) as BizRadios CEO or co-CEO.  Likewise, Crider had business cards that indicated he was CEO for BizRadio.  As Crider came on it would appear that the SEC was hot and heavy in their investigation and negotiations to shut down Kaleta – which had a clear effect on the operations of BizRadio.  BizRadio’s web site listed Crider as President of Broadcast Operations (see below).

6.  BizRadio apparently owned 1110 KTEK AM which was the subject of a possible lease/sale.  Seems that BizRadio paid a tidy sum of money for the station, but found that it didn’t serve their needs as well as other potential stations with a better listener reach.  As best I can tell, BizRadio seemed to switch stations often (why – I’m not sure, but it seems that it is either seeking a better signal, financial issues or both).

7.  Crider, ostensibily acting as CEO, negotiated with Rehan Siddiqi to lease 1110 KTEK AM with an option to purchase for some $3.5 million.  Note: my sources tell me that John Saunders was the broker who sold Daniel Frishberg 1110 KTEK for 7.7 million.   Later, Saunders (so I’m told) offered Dan
2.5 Million Dollars for the station (which in today’s economy might be reasonalbe).  Either way, the acceptance of the Siddiqi offer would appear to be reasonable if one were seeking a new station or cash or both.

8.  The Chronicle article states: “Asia Vision had been airing its programming on 1110 AM, which is owned by a BizRadio affiliate. Siddiqi paid $180,000 to various BizRadio-related entities to lease the station for six months after BizRadio moved to 1180 AM.”  Now, perhaps I’m lost but, if BizRadio accepted Siddiqi’s payment of $180,000 from allowed him to broadcast on 1110, then how can Frishberg say that the contract was invalid?  Either Frishberg (as CEO) doesn’t have a handle on the operation of his business or Crider did have authority to execute the contract and Frishberg was willing to accept Siddiqi’s funds…  Right now Crider testifying on behalf of Siddiqi seems to be at odds with Frishberg over the truth.  But there’s more…

9.  Seems that BizRadio lost their right to broadcast on 1180 AM.  Why?  Money!  Sources tell me that Frishberg failed to provide a letter of credit to the folks at 1180 AM and failed the first of February to pay their $75,000 per month lease…hence they were (supposedly) kicked off.  Likewise, I am told that BIZ
Radio had lost it’s Dallas affiliate as a direct result of the Houston Chronicle November 18 article.  Senator Dan Patritck the owner of the Dallas station  wanted to distance himself from Biz Radio, Dan Frishberg and Al Kalieta.


  • BizRadio is back on the air, but something still doesn’t smell right.  Why did BizRadio broadcast on 1180 AM in January and accept Siddiqi’s money for 1110 AM and then completely reverse course?
  • Why did Frishberg claim that Crider had no authority to execute an agreement with Siddiqi when in fact Crider was listed as President of Broadcast Operations for BizRadio?

  • Frishberg states today in an email I received the following:

An unauthorized but related party, Ron Crider, the same person in the Colorado newspaper story below, held himself out, falsely, to be the Chief Executive of BizRadio, and to be authorized to make deals and contracts for the sale of major assets. Our records show that he was not even an employee of our company, never received a paycheck from our company. Though a merger with his company was discussed and considered, it was never consummated.

  • What?  How could Crider be unauthorized and yet listed as President of Broadcast Operations?  Something doesn’t smell right!
  • Frishberg futher states in his email:

It now appears that there was no real intention to merge, but that this was all part of a carefully crafted plan to wrongfully take a valuable asset, our Houston radio station, for far less than its real value, harming our company and its investors. This is even more onerous now, because BizRadio has more debt than it should, and it is very important that we use our equity in such assets to reduce the company’s debt and make our lenders whole. That is what BizRadio is determined to do and we went to court Friday, to protect our ability to do this.

  • The truth is, at least, partially stated, BizRadio is apparently a money losing operation with too much debt.  But, I suspect the reason the deal with Siddiqi went south is that Frishberg found himself off the air due to his precarious financial situation and debt repayment requirement from the SEC.  I doubt, however, that Frishberg, in the current economy can sell 1110 AM for more than the offer from Siddiqi.  If, however, Frishberg is correct in his statement, he will list the station for sale, liquidate it to the highest bidder and pay off the investors loans thereby complying with the expectation of the SEC.
  • Frishberg goes on to say in his email:

They put in the contract an option to purchase the station for $3.5 million. NOTE THAT WE BOUGHT THE STATION TWO YEARS AGO FOR MORE THAN $7 MILLION.

  • Dan…the fact that you paid more than $7 million for the station two years ago when the cash was flowing from (perhaps) unsuspecting investors or lenders does not mean that you paid a fair price and, two years ago, the economy was booming.  Now, in the midst of the greatest economic recession we’ve seen since the great depression, most investors would easily conclude that the value of the station is worth well less than what you paid two years ago.  Dan…you’re the self proclaimed “Money Man” – surely you know that many business assets have decreased in value…like AIG, GM, Chrysler – even Toyota.
  • Finally, another part of Frishberg’s email states:

It was not disclosed until recently, that the purchaser did not have the means to make such a purchase, and was relying on financing from Crider, who recently failed to live up to financing commitments to BizRadio this month. IT WAS NEVER DISCLOSED THAT CRIDER WHO WAS SUPPOSED TO BE REPRESENTING BIZRADIO WAS INVOLVED ON THE PURCHASER SIDE AS WELL. WHAT A CONFLICT OF INTEREST – UNDISCLOSED!

  • Now…this is most interesting to me.  My sources tell me that Crider was involved with attempts at financing for the sale of the radio station.  Crider, on behalf of BizRadio, (I am told) was negotiating for a $1+ million loan for BizRadio (apparently since the former loan/investment sources would be drying up) and that the sale to Siddiqi for $3.5 Million was the collateral for the loan.  The lender (somehow related to Crider) decided at the last minute to back out which left BizRadio without the resources to continue on 1180 AM (a more powerful station).  Now, Frishberg states above that he was unaware of Crider’s connection to the lender.  Perhaps that is true, but it doesn’t change the fact that BizRadio’s precarious financial condition is the root cause of all that is currently taking place.


I suspect that when Frishberg points strongly a finger at Crider…he forgets that three fingers are pointing back at him.  Are we watching the slow decline of a legitimate business or the implosion of a business scam?


BizRadio and its CEO, Daniel Frishberg, Continue the Saga into Court

February 5, 2010

Reported in the Houston Chronicle today…A state district judge signed a temporary restraining order against BizRadio and its CEO, Daniel Frishberg.

The TRO came at the request of Rehan Siddiqi, whose Asia Vision broadcasts Pakistani, Indian and South Asian programming. At the beginning of the year, Siddiqi and BizRadio essentially changed places on the AM dial. BizRadio moved to the higher-powered 1180 AM, while Siddiqi moved to 1110 AM, which BizRadio owns.

QUESTION:  Considering much of BizRadio’s funding came from the investors who apparently didn’t know they were investing in the BizRadio operation, how is it that BizRadio owns a station?  And, is that station an asset that would need to be liquidated in order to repay the loans that BizRadio and Daniel Frishberg has an obligation to repay?

Siddiqi paid BizRadio $180,000 to lease 1110 AM for six months, with an option to buy the station for $3.5 million. The deal was negotiated by Ronald Crider, who signed the documents as the co-president of BizRadio’s parent company. Siddiqi also produced a receipt for the money, included in the documents he filed with the court, that was signed by Albert Kaleta, president of the BizRadio Network.

NOTE: Albert Kaleta and KCM, without admitting or denying the complaint’s allegations, have consented to permanent injunctions against future violations of the antifraud provisions, as well as an order appointing a receiver. The Court will determine the amount of disgorgement and civil penalty that will be assessed against Kaleta and KCM.

Named as “equitable relief defendants,” BizRadio and Daniel Frishberg Financial Services, also known as DFFS Capital Management share a responsibility to repay the money.

Monday night at about 10 p.m., Siddiqi got an email from Frishberg saying that Asia Vision was to stop broadcasting on 1110 AM immediately because it had failed to consummate the terms of the deal, according to a copy of the message included in court records. At 7 a.m. Tuesday morning, BizRadio’s programming replaced Siddiqi’s, and Siddiqi went to court to get the restraining order.

Frishberg, who broadcasts as “The Money Man,” claims Crider was never an employee of BizRadio or any of its affiliates and was never authorized to enter into the deal with Siddiqi. He claims Crider and Siddiqi conspired to get control of 1110 AM by paying far less than the station was worth.

I DON’T GET IT:  Albert Kaleta signs the documents and Frishberg is ” The Money Man” – so how is it now he finds that the deal should be undone.  Seems that either he’s being pinched to repay money that he’s co-responsible for or he’s not “The Money Man” he represents himself to be.  Either way, something doesn’t smell right.  Whatever the outcome, these events certainly cast a long shadow on BizRadio, Daniel Frishberg and the credibility of his operation.

The full article from the Houston Chronicle is here.


Albert Fase Kaleta sued by the SEC for Madoff like investment – BizRadio and and Daniel Frishberg relief defendants

February 4, 2010

Where did the money go?  And, what attracted investors to invest?

According to the SEC,  between December 2007 and August of 2009, 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.

NOTE: Whenever you are promised an investment return that is better than most folks can normally get…you have a good chance of being scammed!  This is the first rule of avoiding a Ponzi scheme and while this may not technically qualify as a Ponzi scheme…if it were allowed to continue, it would likely have morphed into one.

On Nov. 13, 2009, the Commission sued Albert Fase Kaleta and his company, Kaleta Capital Management, Inc. (KCM), in the United States District Court in Houston, Texas. The Commission alleges that Kaleta and KCM defrauded investors in the offer and sale of KCM-issued promissory notes in an offering that raised $10 million from approximately 50 investors. The Commission also sued two other entities, Business Radio Network, L.P. d/b/a BizRadio (BizRadio) and Daniel Frishberg Financial Services, Inc. (d/b/a DFFS Capital Management, Inc.) (DFFS) as Relief Defendants solely for the purposes of equitable relief.

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.  There is little doubt that Kaleta and/or Frishberg didn’t know what they were doing.

NOTE:  When money that is “supposed” to go into ‘small businesses’ and instead is diverted…that would be a warning sign that a fraud is beginning.  Now, realistically, the victims wouldn’t know as most fund diversions are kept from the public eye.  In this case, it would seem that luck (if you can call it that) intervened through the worst recession we’ve experienced in years.  More than likely the purported investment scam would have continued if the economy was robust.

The Commission alleges that Kaleta lied to investors about the intended uses of offering proceeds. Among other things, the Commission contends that Kaleta took approximately $1.5 million of the offering proceeds to pay personal expenses.

NOTE:  Like most of the Ponzi schemes I’ve reported on…a common thread is the use of “investment funds” for personal expenses.  Hint…this doesn’t look or smell like it was legitimate.  Again, timing is everything.  Madoff was fortunate in that his fraud spanned many years but, like most, imploded when the economy took a nosedive.

Without admitting or denying the complaint’s allegations, Kaleta and KCM have consented to permanent injunctions against future violations of the antifraud provisions, as well as an order appointing a receiver. The Court will determine the amount of disgorgement and civil penalty that will be assessed against Kaleta and KCM.

Named as “equitable relief defendants,” BizRadio and Daniel Frishberg Financial Services, also known as DFFS Capital Management share a responsibility to repay the money.

According to the Houston Chronicle – “In order to reverse what injustice has taken place here, so that the victims of this fraud can be made whole, what we’re seeking is that the relief defendants relinquish their possession of assets to which they have no rightful claim,” said Timothy McCole,the SEC attorney handling the case.

Frishberg said he and Kaleta are no longer partners. His firm and BizRadio will repay the debt under the terms of the promissory notes, he said.

“We’re eager to have them hurry up and appoint a receiver and get it going,” he said.


In a time when trust in financial professionals is at a low, I wonder what position Daniel Frishberg is taking here in early 2010 when it comes to the repayment of investors?

Are we finding transparency when it comes to the operation of BizRadio?

It seems that BizRadio often is jumping from station to station – especially in the Dallas, TX marketplace.  Is that a result of financial stress on the station since the flow of (what would appear to be) misappropriated investor funds has dried up?


The following is on the BizRadio web site:

We are off the air for the first time since 2005, but at our headquarters, we are as busy as we have ever been. We are using this time to make some major improvements in our operations that will benefit our audience and our investors.
We will be back on the air very soon, and we will make an important announcement about the future of BizRadio in the next week.
For the latest update, please continue to check back here at

Houston DA In The Hot Seat – Again! Chuck Rosenthal and Those Damning E-Mails

January 11, 2008

“I love you” and “I want to kiss you behind your right ear.” Alright those steamy e-mails have already been reported – as they were sent from Houston, TX District Attorney – Chuck Rosenthal – to his administrative assistant. So we all figured out that, in this case, Chuck was thinking. Or maybe he was but with the wrong head. (If I offended anyone here, forgive me, but I do believe what I said was true).


Then in early January 2008 (well, we’re still in early January – anyway) Chuck Rosenthal announced his withdrawal from the race for re-election. His withdrawal was time-stamped three minutes before the deadline for candidates to be included on the primary ballot. Interesting twist.

Oh, but there’s more.

In a Houston Chronicle story it seems that new (NEW) e-mails were released on Tuesday where Mr. Rosenthal, yet once again, is caught with his pants down again (so to speak – no pun intended) with his choice of e-mails. This time the content – racist jokes and political strategies related to his (former) re-election campaign. Likewise, there were numerous sexually explicit images found (although whether they were forwarded is unclear).

Now Rosenthal is being pressured to resign.

The latest batch of 730 e-mails was met with concern by Harris County GOP leaders, who had already successfully pressured him to abandon his re-election bid.

“It’s time for Chuck Rosenthal to pack his bags and leave,” said county GOP Chairman Jared Woodfill.

Now, we all know that Chuck Rosenthal never in his wildest dreams thought that his daily e-mail – that he sent back in December related to a case would ever have the effect that it is having today. But then, even as the Harris County District Attorney – Mr. Rosenthal must have missed that day in law school when they taught (big assumption here) that every choice has a consequence.

According to the Houston Chronicle some of the e-mails contained the following:

Among e-mails that concerned Woodfill were video clips of nudity and sex acts and a racist joke forwarded by Rosenthal that compares former President Bill Clinton to a black man.

The e-mail says Clinton played the saxophone, smoked marijuana and gets a check from the government each month.

In one e-mail from Sam Siegler to Rosenthal, an attached video shows women having their breasts exposed after men forcibly pulled down their blouses in public. The video called the act “sharking.”

E-mails about a barbecue fundraiser for Rosenthal’s planned re-election campaign also were sent to his employees, the documents reveal.

Oops…that last one might be his down fall.

It is widely considered illegal in Texas for public officials to campaign during work hours using government-owned equipment. Such instances in the past have led to charges of official misconduct, or theft by a public official.

“I’d like to kick off the 2008 re-election campaign with a barbecue in early October,” Rosenthal wrote to his staff in one e-mail in August, as he announced a planning session for the event. “I appreciate your help, and I am looking forward to seeing you there.”

Another e-mail announced Gail Hays, a captain investigator with the district attorney’s office, would be at the credit union parking garage with barbecue tickets. It was unclear who sent that message. Hays did not appear at the garage because of bad weather, a follow-up e-mail states.

Amorous feeling – well we all have them from time to time. Every received or sent a joke via e-mail? Likely, if you’re reading this the answer is YES. But, if you break the law when you e-mail about your campaign and your job is to uphold the law – you might have just crossed the line.

As GOP leaders are calling for Chuck Rosenthal’s resignation – what do you think?

Business ethics speaker – Chuck Gallagher – signing off…