SEC News
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- SEC Names Lona Nallengara as Chief of Staff May 15, 2013FOR IMMEDIATE RELEASE2013-88 Washington, D.C., May 15, 2013 — The Securities and Exchange Commission today announced that Lona Nallengara has been named the agency’s chief of staff. Mr. Nallengara came to the SEC in March 2011 and served as deputy director for legal and regulatory policy in the Division of Corporation Finance until he was appointed in Decemb […]
- SEC Charges China-Based Executives in Scheme to Overstate Revenues and Divert Money for Personal Use May 15, 2013FOR IMMEDIATE RELEASE2013-87 Washington, D.C., May 15, 2013 — The Securities and Exchange Commission today charged husband-and-wife executives at a China-based company with engaging in a scheme to overstate the company’s revenues and divert proceeds from a securities offering for their personal use. Additional Materials SEC Complaint The SEC alleges that RIN […]
- SEC, FINRA Issue Investor Alert On Pension or Settlement Income Streams May 9, 2013FOR IMMEDIATE RELEASE2013-86 Washington, D.C., May 9, 2013 — The Securities and Exchange Commission and the Financial Industry Regulatory Authority (FINRA) today issued an investor alert entitled Pension or Settlement Income Streams – What You Need to Know Before Buying or Selling Them. The investor alert informs investors about the risks involved when selli […]
TAG | Kaleta Capital Management
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Radio Personality, “The MoneyMan,” Charged With Fraud by SEC
Comments off · Posted by admin in FINRA
In a March 28th., 2011 article in InvestmentNews.com by Darla Mercado, Ms. Mercado writes that the Securities and Exchange Commission on Friday slapped an adviser and radio personality know as “The MoneyMan” with fraud charges after his firm encouraged clients to invest in promissory notes linked to a company with which he associated.
According to the article, Daniel Frishberg, chief executive and principal of Daniel Frishberg Financial Services Inc., allegedly 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 Mr. Frishberg’s firm, according to the SEC’s complaint. Both Mr. Kaleta and Mr. Frishberg were officers of Business Radio Networks, also known as BizRadio, and collected salaries from the company, a fact that wasn’t sufficiently disclosed to the promissory note investors, the SEC claimed.
Mr. Frishberg hosted his own radio show, The MoneyMan Report, through Houston-based BizRadio, according to the complaint.
Ms. Mercdo writes that between April 2008 and September 2009, the offering raised some $5.5 million in proceeds, but Mr. Frishberg failed to ensure that clients knew of BizRadio’s poor financial condition, as well as the conflicts of interest, the agency claimed. He also allegedly selected Mr. Kaleta to recommend the notes despite complaints about Mr. Kaleta’s honesty in sales presentations for other investments, the SEC alleged.
Then, from 2007 through 2009, Mr. Kaleta sold at least $10 million in promissory notes issued by a company he owned called Kaleta Capital Management to clients of Mr. Frishberg’s firm, according to the SEC. Mr. Kaleta didn’t provide the investors with any offering materials, the SEC alleged. Instead, he verbally explained to them that Kaleta Capital would use the proceeds to make short-term loans to small businesses, that the firm would perform due diligence on its borrowers and that it would charge 12% to 14% annual interest on the loans, according to the agency. However, Kaleta Capital also was in poor financial condition, making the promissory notes unsuitable, according to the SEC.
The InvestmentNews.com article goes on to say that in 2009, the SEC entered a judgment against Mr. Kaleta and his firm, ordering them to pay disgorgement, plus interest and penalties, and appointed a receiver to take possession of Kaleta Capital. Similarly, Mr. Frishberg’s firm and Business Radio have been placed under receivership.
It was noted that Mr. Frishberg has been accused of fraud and of aiding and abetting Mr. Kaleta. Mr. Frishberg has agreed to settle the SEC’s charges with a $65,000 penalty and has been barred from associating with any investment adviser.
If you feel you have been an alleged victim of ”The Money Man,” Daniel Frishberg, or Albert Kaleta, or any of their related businesses, please call a Securities Arbitration Lawyer for a free consultation on how to recover your losses. To speak with an attorney, call 888-760-6552, or visit www.stockmarketlawsuit.com. Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.
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