SEC Sues BizRadio Network Backer
November 23, 2009 at 3:41 AM (PT)
HOUSTON-based BIZRADIO NETWORK backer ALBERT KALETA and KALETA CAPITAL MANAGEMENT have been sued by the SECURITIES AND EXCHANGE COMMISSION on behalf of 50 investors who allege that KALETA took their money under false pretenses, reports the HOUSTON CHRONICLE's LOREN STEFFY.
The network itself was not accused of wrongdoing, and KALETA has signed a consent order that does not admit or deny wrongdoing and agrees to have a receiver appointed to operate his firm.
The suit claims that KALETA sold $10 million in promissory notes for loans to small businesses but allegedly funneled the money to the network, which owns Business Talk KTEK-A/HOUSTON and is heard on KVCE-A/DALLAS, KTMR-A/SAN ANTONIO, KRCN-A/LONGMONT-DENVER and KKKK-A/COLORADO SPRINGS-PUEBLO, and partner DAN FRISHBERG's affiliated investment advisory firm. He was also accused of taking money to pay his personal credit card bills and buy a car.
FRISHBERG told the CHRONICLE that his firm and BIZRADIO will repay the debt and that the problem with KALETA, who he said is no longer a partner in the network, was a matter of paperwork and that the investors knew where the money was being lent, the latter assertion being disputed by an unnamed investor interviewed by STEFFY.