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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