This story just took a turn for the strange

 

http://newsblogs.chicagotribune.com/towert...webio-boss.html

The Federal Bureau of Investigation on Friday executed search warrants on the Chicago office of David Hernandez's NextStep Medical Staffing and NextStep Financial. That's the same day Hernandez fired host Mike North and others as executives from their Internet radio venture after they sought an explanation for allegedly bounced checks in recent days.

 

The FBI confirmed the search, which was in connection with an ongoing investigation. No arrests were made. No other details concerning the investigation were available.

 

Efforts to reach Hernandez for comment have been unsuccessful

Why am I not shocked by this. That whole webio thing had to be some kind of corrupt to get off the ground with all the advertisement and not even a leg to stand on. Everyone knew it was a failure before they even started.

wow... wtf was going on there? I'm going to eagerly follow this story... I have a feeling its only going to get better.

Flashback! for those of you who remember, this was the Facebook message I got from JHood after I told him i wouldnt listen to the Webio because it was a Mike North venture:

Jason,

Mike North is a minority owner in my new venture. My supervisor is actually David Hernandez, who is a great guy to work with. I don't think your dislike for Mike should stop what could be fun listening habits for you. I would love your support. Bless you and have a great day. J~

Hoods not on AM1000 anymore?

Hoods not on AM1000 anymore?

 

Since Mike North started Webio a few months back

Flashback! for those of you who remember, this was the Facebook message I got from JHood after I told him i wouldnt listen to the Webio because it was a Mike North venture:

 

 

Oops.

Pretty odd.

Flashback! for those of you who remember, this was the Facebook message I got from JHood after I told him i wouldnt listen to the Webio because it was a Mike North venture:

That's what I've been remembering since this story broke. I'm sure the on-air talent loved him if/while he was cutting big checks.

This is definitely interesting...

 

Do people even listen to Mike North anymore?

This is definitely interesting...

 

Do people even listen to Mike North anymore?

 

He was consistently topped in the ratings by Mike and Mike on ESPN1000, and this was a guy who was "undeniably chicago", making a million a year to get beat by a national show.

 

I doubt his comcast show, which is pretty brutal, is much of a hit either, and since he's financing the deal, I'm sure Comcast doesn't as much steak.

wow this is pretty serious stuff

http://www.chicagotribune.com/business/chi...0,4162544.story

SEC charges founder of Chicago Sports Webio in fraud

 

By Ameet Sachdev and Becky Yerak | Tribune reporters

1:28 PM CDT, June 15, 2009

 

Mike North's business partner in a new Internet sports-talk station in Chicago is a convicted felon who has filed for bankruptcy three times and now faces civil charges of running a Ponzi scheme.

 

On Monday, the U.S. Securities and Exchange Commission accused David J. Hernandez of violating federal securities laws, three days after the FBI executed search warrants on the Chicago office of NextStep Financial Services Inc. and NextStep Medical Staffing, two business ventures with ties to Hernandez.

 

The SEC said NextStep Financial is a defunct corporation through which Hernandez operated his fraudulent scheme. He allegedly sold so-called "guaranteed investment contracts" to investors that promised returns of 10 percent to 16 percent per month. The complaint said Hernandez, 48, of Downers Grove, raised more than $11 million from investors in at least 12 states.

 

Hernandez, could not be immediately reached for comment. One of his companies, Spectrum Entertainment Group Inc. is the parent of the sports-talk Web site, Chicago Sports Webio. North, a long-time Chicago radio personality, co-founded the Web site with Hernandez. On Friday, Hernandez fired North after the host started asking questions about why checks to other on-air personalities, such as Chet Coppock, were bouncing.

 

On Sunday, Hernandez told a Tribune reporter that the FBI action was connected to the actions of a "disgruntled ex-employee who I caught misappropriating funds" and fired several weeks ago. He said that he was cooperating with the U.S. attorney's office, and that if checks bounced, it was because the investigation led to accounts being frozen. He added: "None of our companies are having any troubles."

 

The SEC paints another picture. The agency said Hernandez lied numerous times about himself, about his companies and the nature of the investment.

 

He told investors that NextStep Financial invested in consumer payday loans, which sometimes carry very high interest rates, the lawsuit said. Instead he diverted the funds to other companies he controlled, the SEC said.

 

One of those companies was Spectrum Entertainment.

 

Chicago Sports Webio debuted earlier this year with media fanfare and what appeared to be a sizable financial commitment by Hernandez. The SEC charges that Hernandez spent at least $275,000 of investor funds to pay for advertising and promotion of the Web site and another company he controlled, NextStep Medical. He also diverted at least $165,500 of investor funds to Spectrum's bank accounts, the complaint said.

 

Hernandez also diverted about $500,000 for his and wife's personal use, the complaint said. He bought an Audi Quattro car for $25,879, a $16,674 Steinway piano and $34,000 in jewelry from Tiffany's. He also spent $23,000 for a holiday party at the Ritz-Carlton in Chicago in December. He also paid off a $318,000 mortgage on his Downers Grove residence.

 

The SEC said that in his pitch to potential investors, Hernandez misrepresented his educational background. The agency said that he never attended the University of Wisconsin, where he said received his bachelor's degree in finance and a master's in business administration. His law degree from John Marshall Law School in Chicago is also fake, the SEC said.

 

Hernandez also hid his criminal background from investors, the complaint said. In October 1998, he pleaded guilty to wire fraud for diverting money that investors sent to Columbia National Bank in Chicago, where he worked as a vice president, to accounts under his personal control. Hernandez was sentenced to 34 months in prison and ordered to pay restitution of $590,533.67.

 

Court records also show that Hernandez and his wife, Gina Hernandez, filed for personal bankruptcy three times, in 2004, 2005 and 2006.

I heard "Ponzi Scheme."

I heard "Ponzi Scheme."

I read "Ponzi scheme" at the top of that Trib article.

I read "Ponzi scheme" at the top of that Trib article.

Reading's for suckers and educational graduates.

Hood and Doyle last show tues at 11am

 

from J-Hood's twitter... I actually feel bad for him.

I hope Hood comes back to eithe 670 or 1000... I don't know why anyone thought internet radio was a good idea.

Not going to happen.

 

did he burn bridges?

I hope Hood comes back to eithe 670 or 1000... I don't know why anyone thought internet radio was a good idea.

 

here's the thing... I think that this is ultimately where radio is going. Its cheaper and as the technology gets better I think internet radio will become more prominent. This particular internet radio station was done really poorly and headed by a crook, thus it had very little chance for success.

here's the thing... I think that this is ultimately where radio is going. Its cheaper and as the technology gets better I think internet radio will become more prominent. This particular internet radio station was done really poorly and headed by a crook, thus it had very little chance for success.

 

 

Until they figure out that they have to simulcast on an actual radio station, its never going to get off the ground. People want to listen to stuff like sportstalk while driving to work

Until they figure out that they have to simulcast on an actual radio station, its never going to get off the ground. People want to listen to stuff like sportstalk while driving to work

 

Eventually you will have internet in your car.

Eventually you will have internet in your car.

 

 

eventually. Not very practical right now though, which puts this little business venture between a rock and a hardplace, and that is without Ponzi Hernandez running the show

Until they figure out that they have to simulcast on an actual radio station, its never going to get off the ground. People want to listen to stuff like sportstalk while driving to work

 

its not hard to simulcast at all... but you need to have a station interested in broadcasting you. however, as stated previously in this thread, that problem will become moot when the internet works its way into cars.

here's the thing... I think that this is ultimately where radio is going. Its cheaper and as the technology gets better I think internet radio will become more prominent. This particular internet radio station was done really poorly and headed by a crook, thus it had very little chance for success.

I agree with you that that's the future, heck, between satellite and the Adam Carolla podcast, I barely listen to a radio I tune into, I just think they were a little ambitious and as it turns out maybe a little crooked.

 

I'm a fan of Hood and hope he can find something

its not hard to simulcast at all... but you need to have a station interested in broadcasting you. however, as stated previously in this thread, that problem will become moot when the internet works its way into cars.

 

I know its not hard to simulcast, but like you said a station has to simulcast for you. this chicago webio is trying to get by on Monsters in the Morning and everything else is just on the internet. That aint gonna work(especially considering how bad MITM is)