Dan Frishberg asks: Do investors steal from themselves? Are You Kidding…seems you steal from them?

May 16, 2011

Perhaps I am missing it, but I am flabbergasted by the title of Dan’s new Keynote speech to be given on May 18, 2011 – just a few days from now.  Damn this guy has bigger b***s  than a well fed circus elephant!  How can someone who is supposed to be banned by the SEC from offering investment advice – offer investment advice and be so blatant about it?  The question he asks:  Do Investors steal from themselves?  Answer: No it appears that you steal from them…

Here’s what is stated on his web site and I’m not making this up:

Dan Frishberg asks: Do investors steal from themselves?

I see experienced investors, desperately trying to preserve their capital for retirement, taking exactly the wrong action, as the Fed attacks the value of their dollars, bonds, and bank accounts – all the guaranteed dollar savings that used serve as our safe harbor.

“They about to cost themselves millions each over the next five years, solely and entirely because of the futile attempt to do what was once safe in the past, but has now become extraordinarily risky.”

I’ve just taken the best gig of the year. I’ll be the keynote speaker at the Barrington Financial Investment Strategy Conference, starting at 7pm, at the Marinas Resort Hotel, on 18683 Collins Avenue, in beautiful Sunny Isle, on May 18th, 2011.

I can’t wait to take you through the strategic mistakes you may be making right now, at this turning point in the U.S. economy. I will examine the flawed psychology behind those errors, and how to actually take advantage of the opportunities that are just now presenting themselves.

We’ll cover:

  • ·      Where I see new strength already developing, and how we can easily know whether this strength is authentic and reliable
  • ·      How to know when to sell
  • ·      How to avoid being caught in big Bond-Fund Losses
  • ·      How the pros are now able to easily skim profits from the excessive speculation by the amateur investors
  • ·      Why most people are pouring money into the developing markets, and why most of them will actually lose money.
  • ·      The most over-looked high tech stock opportunity of this generation, and much more.

The Free Book You’ve Heard About on the Radio

Here is the best part. Barrington Financial has compiled a comprehensive bound book called MILLION DOLLAR RESEARCH FOR $99. It’s full of our most important research, assembled over the past year. They have spent thousands of dollars on all this research, ( I know this for a fact, because some of that research has been mine) and it’s been worth it, because the information has made millions of dollars for Barrington and its clients.

On May 18th, 2011, for one evening only, Barrington will give Free copies of this valuable book, MILLION DOLLAR RESEARCH FOR $99,  to the first 100 people who attend their Investor Strategy Conference. My  keynote address is free, but please reserve your space, because seating is limited.

·      How Your Instincts Can and Will Lose you Money

·      When to Buy Convertible Bonds, How to Evaluate and Price Them, and When to Take Your Profits

·      How to Deal With Inevitable Inflation Without Taking Undue Risk.

·      How a Fed Induced Inflation Spiral Can Spoil Your Retirement  (you are seeing the first signs of it already, though the spiral they are talking about could be a year or two off.)

·      The Safest Ways to Hedge Your Portfolio in a Volatile or Down Market,

·      Buffet’s Two Top Rules (never lose money and never forget rule number one.)

·      How the Fed Has Attacked Savers, and How to Turn the Tables and Take Advantage of the Fed’s miscues

·      Why Bricklayers’ Stock Portfolios Outperformed Surgeons’ Over the Last Decade

·      The Chinese Internet Company that Doubles Every Couple of Years, and Why it is Likely to Double Again by 2013. (Learn how you can actually use the Chinese pullback to position yourself.)

·      How to Turn the Tables and Prosper from the Fed’s Assault on the Dollar

·      How Big Hedge Fund Operators Like Soros and Paulson Use Institutional Macro Bonds to Help the Rich Get Richer

·      Why the Water Crisis Could Turn out to be the Biggest Profit Center of this Decade (have you noticed you’re already paying more for drinking water than gasoline?)
This beautiful book – thousands of dollars worth of high end research, worth at least $100 bucks – is a free gift, from Barrington Financial, to the first 100 people who arrive for their big Strategy Session in Sunny Isles, Florida at 7pm, on May 18th, 2011.

Simply fill out the form below to reserve your seat and your Barrington Book, MILLION DOLLAR RESEARCH FOR $99.  Be one of the first 100 people to arrive at the Strategy Session, and the book will not cost $99. The price to you will be zero – a gift from Barrington Financial Advisors.

I’ll see you at the Marenas Resort in Sunny Isles, at 7pm on May 18th.

ATTENTION:  To those who attend this seminar…be on notice that Dan Frishberg has been the subject of an SEC investigation where a multitude of investors were scammed out of millions of dollars in Dan’s failed BizRadio fiasco.  Attend at your own risk…cause it would appear that Dan Frishberg’s SCAMBUS is headed to Florida.

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!


Major Ponzi Scheme Indictment handed down for Tim Durham of Fair Finance and National Lampoon fame. Choices and Consequences…

March 16, 2011

According to an indictment handed down on March 15, 2011 – Tim Durham, James F. Cochran and Rick D. Snow – all have been charged in what is reported as the largest fraud case in the state of Indiana.  The 23 page Grand Jury indictment alleges that Durham, business partner James F. Cochran and former Fair Chief Financial Officer Rick D. Snow devised and executed a scheme to defraud investors in the Akron, Ohio-based  Fair Finance.  The actual indictment can be seen here:  durham_indictment

The alleged fraud is over $200,000,000 and that, if proven, equals a long time in prison.

All three men are facing felony charges of 10 counts of wire fraud, one count of securities fraud and one count of conspiracy to commit wire fraud and securities fraud.  Each faces a maximum of five years in prison for the conspiracy count, 20 years in prison for each wire fraud count and 20 years in prison for the securities fraud count. In addition, each could be fined $250,000 for each count upon which they are convicted.

Separate civil securities charges were filed by the SEC against the men in federal court.

The indictment alleges that between February 2005 and November 2009, Durham and Cochran directed Fair to loan money to themselves and other insiders “which caused a steady and substantial deterioration in Fair’s financial condition.” The three men then allegedly deceived and defrauded investors through misleading statements about the company’s finances.

Durham and Cochran also “used a significant portion of the proceeds of these loans to maintain their lifestyles and to pay for personal expenses,” which, according to the indictment include:  $250,000 in Fair money in 2007  wired to remodel his garage, another $150,000 the following year to use at a casino and Cochran wired $50,000, also in 2008, to pay country club fees.  This is the tip of the iceberg according to the formal indictment.

FROM A HIGH TO A LOW…

CNBC did a report on Tim Durham sometime back.  Take a look

How high one can fall when life is based on an illusion.  I know…I’ve been there.  For now, Tim and cohorts face an uphill battle.  Rarely does the US Attorney unseal an indictment unless the US Attorney feels that a win is inevitable.  Advice to Tim – cop a plea…otherwise a conviction will result in a far greater sentence than he’d get today.  Further, although I doubt he’d receive it…I think the three could gain some benefit in reading my new book – SECOND CHANCES.  Perhaps one day – just not this day – they will find that they could use their intellect in a well placed endeavor that will help instead of hurt people.

WHAT ARE YOUR THOUGHTS?


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.

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!


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
pcaddell@barringtonfinancial.com
713-748-9642

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.

BUT IF YOU HAVE QUESTIONS…SUBMIT THEM HERE AND I PROMISE I’LL TRY TO GET SOME ANSWERS.


David Wallace – Proposed Downtown Master Developer Questioned by The Amarillo Independent

November 16, 2010

As many who have followed this blog know – Dan Frishberg, of failed BizRadio fame, along with Al Kaleta, who had his license as an investment advisor pulled by the SEC, were coupled with David Wallace as a interesting trio – whose clients, in large part, lost millions with respect to Wallace’s BizRadio funding investments from his other investment funds.

Today reporters from The Amarillo Independent called into question a proposed development that David Wallace is pitching to the City of Amarillo.  There article is reprinted below in full.

What’s it all about, Wallace?

By Gina Haschke, Greg Rohloff and George Schwarz
The Amarillo Independent

The principals in the development firm that the Amarillo City Commission is considering as the master developer for downtown revitalization are no strangers to litigation, with one of the firm’s showcase Houston area projects the subject of a foreclosure and lawsuit. And, those same principals, David G. Wallace, and Costa Bajjali, are on the periphery of an ongoing Securities and Exchange Commission fraud investigation.

Last Tuesday, Wallace, co-founder and chief executive officer of Wallace Bajjali Development Partners, L.P., impressed city commissioners and staff with a presentation touting his experience with developments in his hometown of Sugar Land, where he served as mayor until 2008. He also touted his firm’s developments in other cities, including Waco and the Houston area.

But at least one development has soured — the Creekmont Plaza mixed use commercial development in Fort Bend County.

According to a petition filed June 10, 2010, Frost National Bank foreclosed on the Creekmont Plaza Development in Missouri City.

The two men took out a loan of more than $1.9 million with Frost in August 2008 as the general and limited partners in Creekmont Plaza Partners, L.P. and personally guaranteed the loan.

“Despite demand for payment of the balance due, Mr. Wallace and Mr. Bajjali have failed to pay the balance due,” the petition alleges.

The petition states that the property was sold in a foreclosure sale in April at the Fort Bend County Courthouse. But the sale, which brought $1.1 million, was almost $820,000 short of the loan amount. At that time, taxes on the property were also overdue.

“The delinquent taxes for the years 2007 through 2009 were in the amount of $157,494 if paid in March of 2010, plus the 2010 taxes and the Defendants are jointly and severally liable to Plaintiff for the taxes plus interest thereon as allowed by law,” the petition alleges.

The petition asks for payment of the shortfall of the sale, interest, court costs and lawyer’s fees.

All the defendants have entered a general denial and, as of Monday, the case is set for trial in March 2011, according to Harris County District Court records.

A search of additional Harris County District Court records shows Wallace involved in several other lawsuits, including litigation in 1995 with Mark Thatcher, son of former British Prime Minister Margaret Thatcher and Wallace’s former business partner in several United States-based businesses.

How much Downtown Amarillo, Inc. is aware of all the court actions isn’t clear.

Melissa Dailey, executive director of Downtown Amarillo, Inc., said she had done “quite a bit” of background research on the firm. She said she had not looked into the Thatcher alliance in detail, but added, “I’m more interested in his development activities here in the United States.”

When asked about a Securities and Exchange Commission investigation, she said she was “aware of the situation.”

It has little negative reflection on Wallace Bajjali, Dailey said, adding, “In fact, it’s a positive.”

Daily wouldn’t discuss the matter further, saying instead Wallace would talk about it when he was in Amarillo in the next week or two “because he knows the details much more intimately than I do.”

Several calls and repeated messages left for Wallace for comment were not returned.

The SEC investigation focuses on Kaleta Capital Management, or KCM, and a Houston business known as BizRadio, and may yet reach Wallace and Bajjali or some of their business entities.

The year-old litigation — the SEC filed suit Nov. 13, 2009,— names Albert Kaleta and KCM as defendants in a claim that they defrauded investors of $10 million.

According to a July 2010 update on the receivership website, “Based upon the recent inclusion of BizRadio in the Receivership Estate, negotiations have now been commenced with respect to potential liability of the Wallace Bajjali entities and their principals with respect to investments by members of the public in BizRadio directly, and in other related investment vehicles. To date no agreements have been reached with respect to these matters.”

On Monday, Thomas L. Taylor III, the Houston attorney who is overseeing the SEC-ordered receivership of KCM, said neither Wallace nor Bajjali or their entities are yet named in any of the court papers but he would also neither confirm nor deny that they could be pulled into the federal investigation at a later time.

In negotiations with Taylor, Wallace has paid back $92,348 and Bajjali has paid back $45,550 to date, according to the publicly available information.

Taylor said negotiations are ongoing about further repayments by Wallace and Bajjali.

Nevertheless, DAI’s Dailey said Monday, “We have not come across anything negative. When we looked into it in detail, it all was positive.”

I find it interesting that a comment was made that “We have not come across anything negative.  When we looked into it in detail, it all was positive.”  Really?  Just gotta ask these questions:

  • If Frost National Bank foreclosed on the Creekmont Plaza Development in Missouri City and Mr. Wallace and Mr. Bajjali have failed to pay the balance due, how can that be positive?
  • If over 60% of the funds invested in the Laffer, Frishberg, Wallace fund were funneled into BizRadio which David Wallace has stated was a failed business, how can he be trusted to protect the assets of his investors (or the City of Amarillo’s assets) when due diligence would clearly be called into question?
  • Since David Wallace and Wallace Bajjali were integral in the financial operations of BizRadio and Al Kaleta has been busted by the SEC and Daniel Frishberg is being investigated – how can the City Fathers assume that the fingers of justice might move just a bit further to pull in David Wallace?

Wallace Bajjali might do a great job for the City of Amarillo.  However, to say that after looking into issues all looks good is like your finger in a pot of boiling water and then saying its cool.  Where there is smoke there is usually fire.

I’m just saying…

YOUR COMMENTS ARE WELCOME!