What's Going on at Chicago Sports Webio?
By Benjy Lipsman in News on Jun 16, 2009 2:20PM
With radio in turmoil and big name hosts getting axed across town, radio personalities are sometimes going to unusual lengths to reach an audience. After leaving The Score (670AM) last year, veteran sports radio host Mike North joined forces with David Hernandez to launch Chicagosportswebio.com as an internet sports-talk platform. Things started to get weird there last week, when it was reported that North was fired from his executive role at the start-up by Hernandez after North question why the media outlet's checks were bouncing.
Later in the week, the FBI executed search warrants at the company, and on Monday the SEC charged North's partner with running a ponzi scheme through his NextStep Financial company. He is alleged to have sold "guaranteed investment contracts" that were simply paid off with proceeds from later investors. These funds were also diverted to ChicagoSportsWebio's accounts as well as Hernandez's personal accounts, where he use used to buy cars, jewelry and pay off his mortgage.
Did North know that Hernandez was not exactly the best business partner, and that this venture might come crashing down? After all, Hernandez is an ex-con who served time for wire fraud and has filed for personal bankruptcy three times. With the arrest of business partner, what's to become of ChicagoSportsWebio? North might find himself off the air yet again. Perhaps, like Steve Dahl, he can find enough of an audience on Twitter until his contract expires.