Doc Gallagher Lawsuits/KAAM

[Rance Butler]

The receiver prepared to sue other stations that hosted him. Christian talk station KAAM-AM (770) was one. But in a mediated settlement the station paid $250,000 into the assets fund.
- Dallas Daily News

Why are individual stations like KAAM deemed liable? He offered them money in exchange for airtime. My guess is there are many other scammers out there posing as legitimate businesses. Do stations have to vet every potential client or is there more to this than meets the eye?

 

[Y2kTheNewOldies]

13 things you need to know about Doc Gallagher, the Bernie Madoff of North Texas

Learn about Doc Gallagher, sentenced to 25 years in prison, so you don't get swindled like his clients.

www.dallasnews.com

Doc Gallagher is compared to Bernie Madoff in this case.

 

[Rance Butler]

Yes, he is. But nobody knew Bernie Madoff was a crook until he got indicted. My point is, if the stations he was paying to be on didn't know, how is it legal to make them accomplices?

 

[BamaTX]

My point is, if the stations he was paying to be on didn't know, how is it legal to make them accomplices?

I'm interested to know as well. This seems like a case of shooting the messenger. If stations can be sued for advertisements that turn out to be scams, then tons of stations all over the country need to lawyer up.

 

[ropertex]

Scam Advertisers: Are Broadcasters Responsible

Consumer Team host Pete Thomson recently wrote a blog challenging broadcasters to be more aggressive in screening advertisers for scam products and services.

myconsumerteam.com

 

[b-turner]

The above article has some flaws in my opinion. It seems he chooses to refer to radio stations as lowlife scum who willingly advertise scams and delight in doing so. He claims a station got calls from people in the business calling out an advertiser. Obviously, a competitor can easily have a different motive for calling a station other than being honest. Per the author, we in radio are not to trust advertisers but rather trust anybody that contacts us to tell us otherwise, obviously without some proof. My initial reaction to the writer is that he has a bone to pick with radio. In fact in all my years (34) selling advertising I could count the shady advertisers on one hand. I used my gut to decide. Most were shady in that they wanted us to claim co-op ads ran instead of what was aired. The average advertiser, I find, is quite honest.