SEC Fines Houston Radio "Money Man" $65,000 For Undisclosed Conflicts Of Interest


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.






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