Radio Personality Charged with Fraud
The Securities and Exchange Commission (SEC) filed fraud charges against an adviser and a Houston radio personality who was known as “The Money Man”, according to a release by the SEC. Apparently, Daniel Frishberg, “The Money Man”, was chief executive and principal of Daniel Frishberg Financial Services, Inc. and he gave one of the firm’s representatives, Albert Kaleta, authorization to recommend that clients purchase promissory notes from Business Radio Networks, LP, an affiliate of frishberg’s firm, according to the SEC complaint.
Both Kaleta and Frishberg were officers of Business Radio Networks, also known as BizRadio, and received salaries from the company. This material fact was not properly disclosed to the promissory note investors, according to the SEC. Between April 2008 and September 2009, the promissory note offering generated some $5.5 million in investors’ money, however, Frishberg neglected to tell the clients that BizRadio was in bad shape financially, in addition to disclosing the conflicts of interest. Mr. Kaleta was under investigation for complaints about the disclosures and suitability of investments in promissory notes that raised $10 million that were issued by a company he owned named Kaleta Capital Management and sold to clients of Frishberg.
Kaleta was ordered to pay disgorgement, plus interest and penalties, plus placing Kaleta Capital in the hands of a receiver. Likewise, Frishberg’s firm has been placed under receivership, in addition to his paying an SEC fine of $65,000 and being barred from associating with any investment adviser.