Elisea Frishberg – “Money Money Money!” What a difference two years makes!

June 29, 2011

From 2009 on Fox 26 to today…sometimes its hard to hide the truth.  Then Elisea Frishberg was a multi-millionaire – now we find that the millions she bragged about were scammed from unsuspecting investors. Before reading the discussion below and sharing your comments…watch this video.  It’s quite telling!

The interviewer said, “You’re a multimillionaire, but you were not born with a silver spoon in your mouth.”

Elisea responds, “In everyone’s book what I’ve done is impossible.  I am the co-founder of BizRadio Network.  We reach millions of lives and improve their lives.  We buy businesses.  We build cities.  We have monetary financial advantages, material advantage that I could never imagine I could reach.”

STOP FOR A MOMENT…I’ve got a question.  Does the news media do any (ANY) due diligence on their guests.  Come on – “We build cities.”  What a crock…

The interviewer asks in so many words how did you do this?

Again Elisea states, “For 48 years I wished someone would have come up with a box – a set of instructions – to lower my pain and anxiety.  So that makes you ask what makes you inspired to write this book? So I said I’ll box them up.  I’ll box up everything I’ve learned to get to where I am and I’m inspired and excited and want to give it to your listeners…”

HUM…PERHAPS THE BOOK SHOULD BE USED BY THE FBI…cause if you’ve boxed up all you’ve learned you should find the content to include chapters on: (1) how to scam unsuspecting investors out of their money; (2) How to live off of other people’s money (that they will never get back); (3) How to con the media into believing in the illusion instead of searching for the truth; (4) How to lie with a straight face; and (5) How to thumb your nose that those who supported your vision of a valuable business radio station.

HERE POINTS:  (Ya gotta check these out)

  1. Face Yourself
  2. Do Not Lie To Yourself (wonder if she’s O.K. with lying to others since that seems to be what happened?)
  3. Know What You Really Want (again wonder if she knew that was other people’s money?)

Elisea ends the interview by saying what people really want is MONEY…MONEY…MONEY!  Well…she got it.  The problem was it was other people’s money.  Wonder now what she has to say about that show?


CNBC Features Dan Frishberg, an investment advisor who’s under investigation by the SEC? Where are CNBC’s Ethics and Standards?

December 2, 2010

Short – sweet and to the point.  What due diligence does CNBC do when selecting their guests for appearances on their shows?

According to their web site – CNBC is the recognized world leader in business news, providing real-time financial market coverage and business information to more than 340 million homes worldwide, including more than 95 million households in the United States and Canada. The network’s Business Day programming (weekdays from 5:00 a.m.- 7:00 p.m. ET) is produced at CNBC’s headquarters in Englewood Cliffs, N.J. CNBC also includes reports from its news bureaus worldwide in Midtown Manhattan, the NASDAQ MarketSite, Washington D.C., Chicago, Los Angeles, Palo Alto, London, Singapore and CNBC’s headquarters in Englewood Cliffs, N.J.

So help me understand – what would motivate CNBC to have Dan Frishberg on as a guest spouting off his investment advice and accumen when the same Daniel Frishberg is the subject of an SEC investigation into allegations of investment fraud.  BizRadio (Dan’s former company) has failed.  Investors have lost substantial sums.  Al Kaleta, his former partner, has had his investment license pulled.  And word on the street is Dan will be next in line to have his RIA license pulled.  Likewise, criminal investigators are reviewing Dan’s financial activities with no word yet on whether an indictment will be forthcoming.

Here’s the link for those who wish to see that when I say Dan Frishberg was on the show, I’m telling the truth.  CNBC Frishberg link

So…does CNBC do any due diligence related to who they feature on their program?  And if not, what ethical standards do their adhere to if they allow someone who is at the center of a scam/fraud investigation to continue to be a spokesman.

This reminds me of Bernie Madoff getting great press right before the fall.  Just ask the victims of Frishberg’s actions if they would trust him today with their money!  Perhaps defrauded investors might want to comment on Dan’s video giving others (at least) a heads up on the Scambus that rumbling down the track.


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.


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 sjoao@barringtonfinancial.com

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 sjoao@barringtonfinancial.com 713-490-8728

This Event is FREE but you must RSVP
Contact: Sonia Joao at
713-785-7100 or  sjoao@barringtonfinancial.com

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 & 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 [mailto:dsf@themoneyman.com]
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 [mailto:dan@noramcapital.com]
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: ‘dsf@themoneyman.com’
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 [mailto:dan@noramcapital.com]
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!


BizRadio now Business 1110? Smoke and Mirrors? Dan Frishberg – sorry, but I’m confused…

March 9, 2010

On today’s broadcast of Dan “The Money Man” on BizRadio 1110 – is was reported that Dan announced that his broadcast would now be known as Business 1110 (not BizRadio).  After hearing that report, I tuned in to BizRadio.com and heard the on-line broadcast which seemed quite normal – just business as usual.  Then the questions began…

As a side note, when I was young I recall my Mom saying to me, “Boy, you just ask too many questions!”  I didn’t understand.  If you wanted to know something, how else could you get the answer other than asking questions.  She then said, “You know, you better watch out, someday you might just run out of words,” to which I replied.  “Well, Mama how many words are there?”  I guess somehow the questions have never stopped.

So with Dan’s announcement I began to think – wonder what the motivation is?  Keep in mind an earlier Houston Chronicle story reported the following:

“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. (Although Kaleta was reported at his office as late as January 2010).  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.

Despite Frishberg’s eagerness, neither BizRadio nor DFFS has made the payments required under the notes so far, the SEC’s lawsuit said. A receiver is likely to demand full repayment of the notes so it can be returned to investors.

Now, here are questions to consider (Mama would be proud):

  • Is this change BizRadio to Business 1110 a veiled attempt to avoid payment to investors as part of the SEC receivership and agreement?
  • Is Business 1110 the same as BizRadio and if so, does the operation of Business 1110 share in the BizRadio liability?
  • Salem purportedly bought 1110 AM back from Frishberg, where did that money go?  Did the SEC appointed receiver get any of those funds so that investors can be repaid?
  • Salem is supposed to be a reputable firm, wonder why they would enter into an agreement to lease the station to Frishberg considering the SEC scrutiny and attention?  Is there no other programming that could be broadcast on this Salem station?
  • BizRadio and Frishberg (along with related entities) were sued by Rehan Siddiqi for $18 million.  Is that business change (BizRadio to Business 1110) an attempt to avoid liability?
  • What liability does Salem incur since BizRadio apparently voided a lease/purchase agreement to Siddiqi?  Wouldn’t it make sense on Salem’s part to wait on any transfer until that lawsuit is resolved?
  • Most importantly, how does Frishberg “The Money Man” plan on making whole the investors who (as they put it) were part of a scam?  And, how is financially strapped Frishberg and BizRadio able to continue in his “new” format – Business 1110.
  • Oh, and where can I find Business 1110 on the web?  New format – old web site – old format.  Can someone please explain?