Daniel Frishberg, better known to Texan radio listeners as "the Money Man," has been banned from associating with investment advisors and fined $65,000.
It turns out that, according to the SEC, Frishberg used his local financial radio show as a platform for selling $11 million in debt that his own media company had issued.
Frishberg apparently failed to disclose his personal interest in the securities -- since the issuer paid his salary -- or what the SEC characterizes as the company's "poor" financial condition even though it ran 3 AM radio stations in the Houston area.
Reagan-era economist Art Laffler was one of the network's celebrity commentators.
But unfortunately, it appears that Frishberg and partner Al Kaleta supported the business by selling notes with a coupon rate of 12% to 14% while allegedly diverting some of the money to their own accounts in the form of salaries or more direct draws.
Kaleta settled awhile back and now Frischberg has agreed to a $65,000 fine. Whether his "investors" will ever get their money back remains to be seen.