The US Securities and Exchange Commission isn’t the only one fighting in court over the fate of KTEK-AM Houston. In addition to the SEC’s federal lawsuit, there’s an ongoing Texas state court lawsuit filed by a would-be buyer of the station.
Asia Vision Inc. and its CEO, Rehan Siddiqi, claim they have a contractual option to buy the station for $3.5 million and tried to exercise that option. The lawsuit states that Asia Vision agreed to LMA the station under a five-year contract that began January 1, 2010. The company even paid $180,000 upfront for the first six months.
Asia Vision states that it was unaware of the SEC’s fraud litigation against Albert Fase Kaleta and Kaleta Capital Management (KCM) and its request to have KTEK placed in receivership by the federal court. After broadcasting on KTEK for a month and a day, Asia Vision was knocked off the air on February 2nd and the station was subsequently LMA’d to Salem Communications, a former owner which is now preparing to buy it back.
Not surprisingly, Asia Vision is suing everyone involved, including Kaleta, KCM, Business Radio Network LP, former Business Radio owner Daniel Frishberg and Salem Communications. Asia Vision claims to have lost over $100,000 per month in advertising by having its LMA canceled. It has accused Salem of tortious interference and the other defendants with fraud and breach of contract. The lawsuit seeks at least $18 million in damages.
RBR-TVBR observation: What is clear is that the defendants no longer have possession of KTEK, since the FCC has transferred the license to the federal court receiver. Asia Vision may have to stand in line with several other victims in this convoluted case.