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Former WILK Radio Host Lake Charged with Fraud

Yep. Another black eye. First it was Mansions & Estates owner Scott Binsack now James "Jamie from Wilkes-Barre" Lake. So much for his tag line "we never forget, it's your money." He was also advertising on WNEP.com in their "Ask the Professional" section.

When Binsack got nailed, a reporter asked me (I bought time on WILK for a few years to do The Pet Guy Show) what, if anything, can radio stations do to "screen" paid programs like this to ensure nothing shady happens. The answer I gave was "nothing." How could you? In the case of Binsack, he had a contest where he was giving away a home. A listener won it, he made a big promotion out of it, and the listener got nothing. Sure it reflects bad on the radio station, but there really isn't anything the station can do to insulate themselves other than run the "paid announcement" disclaimer every 15 minutes to let listeners know this is not a XYZ station program.

What are your thoughts? Do you think that these two instances will have stations thinking twice about putting these kinds of programs on the air?
 
Binsack had a long, disgraceful tenure in the Poconos (prior to his Mansions and Estates fiasco) that made news 'round these parts for some time. How on Earth he could have talked his way into a scam involving media is beyond me.

I heard him advertising on Froggy at some point, and dropped a dime. Seems there was some Donald Trumpesque contest in the works where Binsack would choose his next protege. Methinks the contest was ended after word of his Pocono escapades turned up.
 
jeffwoehrle said:
How on Earth he could have talked his way into a scam involving media is beyond me.

Show me a GM or a sales rep at a radio station who is going to turn down a couple hundred bucks an hour for a paid program. That is how he did it.
 
If the salesperson or manager had known ANYTHING about what Binsack had done in the Poconos, it never would have happened.

I guess the Poconos are more isolated than I thought...

::)
 
The Poconos are in New Jersey right? Doh!
 
scottsan said:
When Binsack got nailed, a reporter asked me (I bought time on WILK for a few years to do The Pet Guy Show) what, if anything, can radio stations do to "screen" paid programs like this to ensure nothing shady happens. The answer I gave was "nothing." How could you? In the case of Binsack, he had a contest where he was giving away a home. A listener won it, he made a big promotion out of it, and the listener got nothing. Sure it reflects bad on the radio station, but there really isn't anything the station can do to insulate themselves other than run the "paid announcement" disclaimer every 15 minutes to let listeners know this is not a XYZ station program. What are your thoughts? Do you think that these two instances will have stations thinking twice about putting these kinds of programs on the air?

Block programs like "colon blow" shows are a plague on the business. ("You can lose 25 pounds by cleaning the debris out of your intestines!") Money is tight these days and as a result, RVPs, GMs and SMs will take money from just about any vendor, especially one that puts cash on the line, up front. In this sense, GMs should be treated as if they are complicit with the hucksters, charlatans and "Madoff Lite" shysters that pitch these schemes.

When I programmed a news-talk station years ago in a large medium market, I tried to hold the line on vendor shows. It wasn't easy. Considering how hard-pressed radio companies are these days, it's likely worse. The vendors played fast and loose with their claims, but usually didn't go over the line. However, there was a program that promoted a "cure for cancer," a supplement that would restore cancer patient's health. The program was hosted by a guy who claimed to be a doctor (I determined he was a PhD in animal biology, not an MD.) This guy bought a half hour block and had the balls to tell cancer patients they "could be cancer free" if they stopped taking the medications and cancer treatments that their physicians had prescribed and instead bought the elixer that he hawked on the show.

I first heard this program the week that it began airing and was furious. It happened that one of my relatives was being treated for breast cancer at the time. Apparantly the Chief of Oncology at Roswell Park Cancer Institute, one of the nation's foremost cancer treatment and research hospitals, heard the program too and was more upset than I was. It was Monday morning. He called the station, got through to me and read me the riot act, medically, legally and ethically. He calmed down a bit when I told him I felt exactly as he did, especially because a relative was being treated for cancer.

I approached the GM and told him I thought the show was unethical and should be taken off the air. I gave him my reasons and some of the reasons the Chief of Oncology gave me. My GM said, "As long as the client pays for the time, the show is alright with me, I don't see a problem." I then asked, "If your daughter had cancer and she was on medication prescribed by a physician to treat the cancer, what would you think about this guy's claims? Would you take her off the medication prescribed by her doctor?" The GM says, "How do you know the stuff doesn't work." What an imbecile!

The Chief of Oncoclogy was media savvy and knew about our company, the people who ran it and that it was publicly held corporation. It also helped that Roswell Park Cancer Center is well connected to all parts of the community: Banks and their clients, political movers and shakers, clergy and most of all, to its grateful patients.

When I talked to the doctor and told him there was resistance within our sales department to take the program off, but that he could "continue the dialogue with our GM" the doctor followed up. As a result, the GM did called me on the carpet. "You just cost us $500 a week in billing." I expected it and was well prepared, "I think I just saved the station's license, spared you a lot of grief and saved your job. The next person the Chief of Oncology will call is our CEO." A member of the CEO's family recovered from cancer about three years earlier, so it was likely the Chief of Oncology would have received a sympathetic ear.

My GM just couldn't accept giving up the $500 a week in billing. The next question out of his mouth was, "What if we run the program at 4 a.m. instead of 6 a.m?" I actually laughed out loud and told him he was rolling the dice on his job, my job and the license. After about five minutes of deliberation, he begrudgingly agreed to take the program off the air.

Turns of the Chief of Oncology did call the CEO, had a pleasant conversation and the CEO called my GM later that day. Through the grapevine, I was told the GM told the CEO, "I took that program off the air as soon as I became aware of it. It'll never run again. Damn the billing!" What a ******nozzle!

To his credit, the Chief of Oncology recounted his conversation with me when he first talked to our CEO and few months later, the CEO visited the station and pulled me aside to compliment the way I handled the situation. Clearly, he knew the GM was blowing smoke.

Unfortunately, there are GMs who think nothing of putting a vendor on the air, no matter what's being sold or the service that's being offered. PDs and OMs have to deal with a lot of crap these days more than ever, especially in smaller markets.

Allowing vendors to pitch shemes that steal people's money or their helth is wrong. Some people will argue "Caveat emptor" (buyer beware) and that "stupid listeners" should be held accountable too. But keep in mind that these hucksters often prey on the sick, elderly and uneducated, who will try just about anything to regain their health or their financial security. BTW some pretty smart people fell for Bernard Madoff's scam too.
 
To throw another side of the coin out there...

Suppose the station makes a habit of determining which commercials are unfit to run. To me, that means that commercials that ARE running have met the approval and vetting process of the radio station. Makes for a nice case of being added as additional defendant if one of the running commercials is found out to be bogus.

I'm not disagreeing with the wisdom of refusing ads that make unsubstantiated claims, but I'm not sure I want to be placed in the position of being the final arbiter of what is reputable and what is not...if only because doing so removes the favorable position of being merely a conduit, without any knowledge or control over what is being promoted or sold.

If you get a chance, get a look at the 'fine print' that runs before/after TV financial programs. The language used goes to great lengths to separate the medium from the message.
 
You make a good point Jeff, which would make for great debate. I can hear "the slippery slope" axiom being used. TV stations have a fine print disclaimer before and after many of their infomercials and we had a similar audio disclaimer as well. But there are many programs whose claims completely overwhelm the disclaimer, and as an attorney who is a friend of mine has said, "even the best worded 'cover your ass' disclaimer, which usually lasts 30 seconds before and after a program, is no match for a 29 minute info-mercial that promises the earth, moon and stars.

In our case, the claims of the program, "that cancer patients would never have to take the expensive, distasteful medications prescribed by their doctors" and "their radiation treatments would become unnecassary" were absolutley indefensible, especially when called out by a doctor who was a cancer specialist. I recall the doctor telling our GM, in a factual, non-threatening tone, "if one life is lost, if we learn about one patient who goes off his or her prescribed medication because of this program, I will hold you and your radio station personally responsible."

In this particular case, in the long run, I believe we saved ourselves a lot of money and aggrivation as well as the scorn of the entire medical community.
 
I agree with your decision, Buffalo. Something like the commercial you pulled runs afoul of moral obligations more than anything.

However, it is troubling that making moral (or legal) decisions to NOT run a particular spot puts the spots you ARE running in a different light from a liability perspective. Tacit endorsement, in a way. Couple that with the labor requirements to keep tabs on everything and you are almost creating an entire additional layer of management. (Oh, no! Not another layer!)

There truly is a sucker born every minute, but it's a shame that there are those who would seek out suckers with afflictions to play with their hopes and emotions to make a buck.

Even more of a shame is the fact that those folks doing it make discussions like this even necessary.

:(
 
what about when/if the sales rep tells an advertiser that by purchasing and hosting one's own show in a 30-60 minute block on a "news talk" station it will increase his/her or the products credibility? does the station then share in some of the responsibility?
 
ifc,

First off, I can't imagine a situation where a salesperson would take liberty with the truth just to make a sale.

;D

Ever.

;D ;D ;D ;D ;D ;D ;D

Anyway, in the situation you describe, it seems as if you are talking about the advertiser having issue with the radio station for credibility of the product. That seems unlikely, as that would force the advertiser to admit that his product was crap from the onset. Come to think of it, that would probably solve a few problems before they even start...
 
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