For the past 10 years, James Frinzi worked as a lobbyist representing various clients, including the Goodman family, owners of Goodman Networks Inc., a major AT&T contractor. In 2010, Frinzi became an executive at Goodman Networks, which eventually faced financial difficulties, culminating in the company being on the brink of insolvency in 2021.
In October 2021, James Goodman, the co-founder, appointed Frinzi as CEO as they tried to turn the company around. Frinzi announced plans to rebrand the company and list it on NASDAQ. Frinzi also brought in powerful friends, including Texas Attorney General Ken Paxton and his wife, Senator Angela Paxton, to lend legitimacy to the company.
Frinzi acquired a dormant public shell company in Nevada and renamed it MBG Holdings Inc., doing business as Multiband Global. He appointed Senator Paxton to the board of directors, touting her political and legislative experience as an asset. Frinzi also made significant campaign donations to Ken Paxton during this time.
Frinzi’s extravagant lifestyle, funded by allegedly embezzled funds, included luxury homes, a golf club membership, and expensive vehicles. He also spent lavishly on travel and entertainment, including a trip to Kosovo with the Paxtons to promote Multiband Global.
However, court records and lawsuits have since revealed that Multiband Global was built on fraudulent schemes orchestrated by Frinzi and the Goodmans. Allegations of corporate fraud, embezzlement, and conspiracy have surfaced, with claims of diverting millions of dollars from the company for personal gain.
The bankruptcy proceedings for Goodman Networks have been complex and contentious, with trustee Scott Seidel leading the legal battle to recover assets for creditors. Frinzi has been accused of orchestrating fraudulent transfers and concealing assets to avoid repayment.
Despite the legal challenges, Frinzi has continued to engage in questionable business activities, including becoming an international arms dealer and lobbying for foreign companies. His ties to prominent politicians like Senator Ted Cruz have raised concerns about potential conflicts of interest.
The fallout from the Multiband Global scandal has been far-reaching, leading to bankruptcies and legal battles for the Goodmans and Frinzi. The trustee continues to pursue claims against the alleged bad actors, with the hope of recovering funds for creditors.
As the legal saga unfolds, questions remain about the extent of the Paxtons’ involvement in the scandal and their connections to Frinzi and the Goodman family. The case serves as a cautionary tale about the dangers of mixing politics, business, and personal gain.