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From: StockDung7/3/2011 2:31:05 PM
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huffingtonpost.com

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From: StockDung7/3/2011 2:41:07 PM
   of 1589
 
re: stock promoter Donald Rowe

Nadel case roiled by records fight
By John Hielscher

Published: Saturday, December 4, 2010 at 1:00 a.m.

A battle over financial records has escalated between the Arthur Nadel receivership and Donald Rowe, the Sarasota newsletter publisher who promoted the Nadel hedge funds.

Rowe filed Thursday in federal court for a protective order to prevent receiver Burton Wiand from obtaining personal financial documents from him and his wife.

Wiand has subpoenaed Rowe for the records as part of his work to gather assets that will be used to pay investors cheated in Nadel's Ponzi scheme.

U.S. District Judge Richard Lazzara has twice refused to quash those subpoenas and has ordered Rowe to comply with them. He will hold a hearing Dec. 13 on Rowe's latest request.

Rowe is now seeking to protect any documents covered by attorney-client privilege, particularly those related to his finances after he stopped receiving payments from Nadel in 2007.

"Such discovery serves no purpose other than to satisfy Wiand's burning curiosity about Mr. Rowe's current financial situation, or to justify the tremendous legal fees generated in pursuit of Wiand's claims against him," attorney Anne-Leigh Moe stated.

Wiand has called Rowe "the primary salesman" for the six hedge funds operated by Nadel and partners Neil and Christopher Moody in downtown Sarasota.

Those funds attracted $330 million from investors before collapsing in January 2009. Nadel was sentenced in October to 14 years in federal prison after pleading guilty to 15 fraud counts.

The receiver is suing to "claw back" $8.6 million in fees and profits he claims Rowe made from the funds.

In his Wall Street Digest newsletter, Rowe called the Nadel-Moody funds "America's top-ranked money manager," and he personally solicited investors into the funds, court document state.

Rowe is also the target of two civil lawsuits by investors seeking more than $10 million; the investors say they relied on Rowe's advice and wound up losing money in the funds.

Wiand's latest subpoena seeks financial data from Rowe's personal bank and brokerage accounts, retirement and pension plans and other assets.

Rowe's attorneys contend Wiand is misusing his subpoena power by seeking those records through the U.S. Securities and Exchange Commission's case against Nadel, rather than through the separate clawback suit he filed against Rowe

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From: StockDung7/3/2011 2:49:48 PM
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Ponzi victims who lost millions sue Sarasota newsletter
LAWSUITS: Investors claim writer had improper ties to Nadel's hedge funds
Donald Rowe, 75, no longer publishes The Wall Street Digest, which for 32 years he trumpeted as "the world's most widely read investment newsletter."

Buy Photo HERALD-TRIBUNE FILE PHOTO / 2000
By John Hielscher

Published: Thursday, May 20, 2010 at 1:00 a.m.
Last Modified: Wednesday, May 19, 2010 at 8:40 p.m.
Page all of 5

For 15 years, the Formica family relied on Donald Rowe and his Sarasota-based newsletter The Wall Street Digest for advice on how to invest millions of dollars.

The Haworth, N.J., family trusted Rowe to give them expert, impartial counsel in what became a "close, adviser-advisee relationship" that included frequent telephone conversations.

But once Arthur Nadel's Ponzi scheme exploded in Sarasota last year, the Formicas say they realized the advice was a sham -- that Rowe was secretly paid hefty fees to recommend certain investments.

In a lawsuit filed in federal court in New Jersey, the five family members say Rowe never told them that he pocketed referral fees to promote not only the Nadel hedge funds, but also several other investment funds.

The family wound up losing more than $6 million.

It is the second lawsuit accusing Rowe and The Wall Street Digest of failing to tell his clients the truth about the now-worthless hedge funds operated by Nadel and partners Neil and Christopher Moody in downtown Sarasota.

Sarasota attorney Drew Clayton, who is suing Rowe on behalf of six other investors, said Rowe and the funds had what appears to be a partnership arrangement.

"In our review, we learned that Mr. Rowe was getting paid substantial monies to promote the hedge funds or to not say anything bad about them," Clayton said.

Rowe also is being sued for $8.6 million by the court-appointed receiver in the U.S. Securities and Exchange Commission's case against Nadel. Burton Wiand recently called Rowe "the primary salesman for this venture."

That suit contends Nadel and the Moodys paid Rowe to refer and solicit investors into what he had proclaimed "America's top ranked money manager." Wiand is suing to recover both referral fees and commissions and the profits he claims Rowe made from investments in the funds.

Clayton recently filed to add Rowe's wife, Joyce, as a defendant in his lawsuit. She received $2.3 million in distributions from the Nadel funds through her husband, court documents show.

"We certainly don't believe that the allegations can be proven or that they are accurate," said Edward Savitz, a Tampa attorney representing Rowe, about the Formica case.

Responding to Clayton's lawsuit, Savitz said Rowe was not responsible for the losses suffered by Joseph T. Bell II and the others who are suing the newsletter publisher.

"All the plaintiffs can allege is that the Wall Street Digest made statements between 2000 and 2004 about the Nadel-Moody funds and that in January 2009, five years after the last publication by the WSD regarding any of these funds, the Nadel-Moody funds were worthless," Savitz said in a pending motion to dismiss the suit.

Rowe, 75, no longer publishes The Wall Street Digest, which for 32 years he trumpeted as "the world's most widely read investment newsletter." His Carnegie Asset Management is still in business, Savitz said.

Rowe suffered a stroke a year ago, several months after the Nadel Ponzi scheme collapsed, his attorney said.

A former U.S. Navy pilot, he moved his company to Sarasota in 1988 from Princeton, N.J., where he had marketed his services through Barron's, the financial newspaper then owned by Dow Jones & Co.

Nadel has pleaded guilty to 15 federal fraud counts and will be sentenced in June. Neil and Christopher Moody settled civil securities fraud charges with the Securities and Exchange Commission and were barred from the industry for at least five years.

Public relations payments

Rowe's relationship with Nadel and the Moodys -- once friendly but later hostile -- has spilled over into other lawsuits. One is by investors who are suing the well-known Holland & Knight law firm for professional malpractice. The firm prepared the offering memorandums for the funds.

That suit contends that Holland & Knight knew Rowe received illegal payments for promoting and selling the hedge funds to investors. Only registered brokers, which Rowe was not, can be paid commissions for soliciting investors.

But rather than reporting those alleged violations of securities laws to authorities, the law firm arranged a "settlement" in which Rowe continued to receive improper compensation "thinly disguised as 'public relations' payments," the lawsuit states.

That claim appears to be supported by a memo written by Nadel and Neil Moody in January 2005 to their attorney, John W. Chapman of the Norton, Hammersley firm. The memo is cited in Clayton's lawsuit against Rowe.

That memo states that in 2004, Holland & Knight attorney Scott Macleod advised Nadel and Moody that their commissions to Rowe "might be illegal under current securities law." Those commission payments were halted.

"Instead, Mr. Rowe would be paid for public relations work, inasmuch as that was always a part of the arrangement," Nadel and Moody wrote. "Rowe would periodically write about the funds in his newsletters."

That memo was prompted by a dispute after the Nadel-Moody camp decided to stop paying fees to Rowe. He demanded payment through his attorney, Jason Lessinger of the Icard Merrill firm. Chapman responded that Rowe's solicitation of investors "violate federal securities laws."

Rowe and Nadel-Moody later signed a non-solicitation agreement that called for Rowe to be paid $500,000 a year to not recommend alternative investments to other investors in the hedge funds.

When those payments stopped in 2007, Rowe began bad-mouthing Nadel and touting his own feeder funds, court documents state.

"A complete fraud"

The Formicas say they first took Rowe's advice in 1996 to invest in the Draseena Group of funds. Over 12 years they invested $5.8 million and now say they lost $1.7 million in those funds.

Rowe never disclosed that he was paid referral fees from the Draseena Group, according to the lawsuit. He also failed to perform adequate due diligence, the suit says, and did not tell the Formicas that the funds had never been independently audited, that managing members were under SEC investigation, or that one managing member had been stripped of his license to the National Futures Association.

Rowe recommended the Nadel-Moody funds to the Formicas in 2001. The family claims it lost $3.8 million after the Ponzi scheme fell apart.

Rowe strongly touted the funds to his Wall Street Digest clients, who paid around $350 for an annual subscription. He marveled at the funds' return rates of 55 percent in 2000, 19.8 percent in 2001 and 21.7 percent in 2002.

Rowe reported that he personally visited the Nadel-Moody offices in downtown Sarasota to inspect the operation.

"After 26 years of reviewing the track records of over 11,000 mutual funds, 6,000 money managers and 5,800 hedge funds, Nadel's computerized investment program has produced the best track record and most consistent returns I have ever seen," Rowe effused.

The Formicas believe any "meaningful" due diligence by Rowe would have revealed "a complete fraud." He never disclosed to his clients that Nadel was a disbarred lawyer, that the funds had never been audited, or that funds accountant Michael Zucker had lost his license to practice as a CPA, their lawsuit says.

In April 2006, Rowe through his newsletter and in phone calls to the Formicas touted High Street Capital Management LLC, a fund in Tampa operated by money manager John Bartoletta. The family invested a total of $1.4 million.

The lawsuit claims Rowe and High Street had a "handshake agreement" for Rowe to receive a percentage of the management fees of clients he steered to the funds, earning him "millions."

When High Street stopped paying the fees in late 2007, Rowe began criticizing that fund. The Formicas say they lost $815,899 in High Street funds.

Meanwhile, Rowe began pushing his own feeder funds called the Carnegie Fund and the Wall Street Digest Fund. Feeder funds are hedge funds that invest in another "master" fund. The Formicas invested a combined $740,000 in those funds, and say they managed to get most of their money back.

Douglas Hirsch, the New York attorney representing the Formicas, found it odd that the investment funds Rowe recommended were always close to home.

"For a man who purportedly reviewed more than 22,800 global funds, the managers of the Nadel Funds, the High Street funds, the Carnegie Fund and the Wall Street Digest Fund were conveniently located in or near (Rowe's) hometown of Sarasota, Florida, not in global financial centers such as New York or London," Hirsch said.

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From: Q.7/9/2011 3:00:22 PM
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ESYL 1.40 - received today. Eight pages, non-glossy, all text with no photos or artwork.

The headline on the first page is exactly like one for ESYL that was posted here in April/May 2011: MonsterStockTracking.com "Your Second Chance at a 989% Gain"

Except that the name "Andy Carpenter" doesn't seem to be on the newsletter this time, and instead the name "Jessica Chang" now appears in the disclaimer as the "Endorser", which I suppose means the putative author of the newsletter. It is now dated July 2011. Oddly they kept the same 989% gain projection, but updated the target price to $14.85.

It starts off:

MonsterStockTrading.com
Global Stock Advisory
Investment Newsletter Confidential Alert $12.99 July 2011
IMMEDIATE OPPORTUNITY ALERT!
From the desk of Global Stock Advisory, MonsterStockTrading.com
Your Second Chance At A 989% Gain
The One Chinese Company You Must Own Today ... EASY LINK (ESYL)
Looks Set For A Potential Leap to $14.85

For comparison, the May issue started off like this:

MonsterStockTrading.com
Global Stock Advisory
Andy Carpenter Editor
Investment Newsletter Confidential Alert $12.99 May 2011
IMMEDIATE OPPORTUNITY ALERT!
From the Desk of Andy Carpenter Editor, MonsterStockTrading.com
Your Second Chance At A 989% Gain
The One Chinese Company You Must Own Today ... EASY LINK (ESYL)
Looks Set For A Potential Leap From 60 Cents To $5.93

The disclaimer this time doesn't indicate the amount of compensation or the identity of the party who paid for the advertising.

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From: demersal7/10/2011 10:02:23 PM
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RYUN also a paid mailer stock pump & dump:

timothysykes.com

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From: Tim Lento7/11/2011 8:57:56 AM
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ESYL 07/08/11 $400K (same budget, new mailer with slight changes)

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To: Tim Lento who wrote (1183)7/12/2011 9:25:30 AM
From: Q.
   of 1589
 
Oh, you're right, tlento, the ESYL mailer I received also discloses a $400k budget for the promotion. I didn't notice that when I tried to read the disclosure previously.

I should get a stronger pair of reading glasses for the fine print.

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From: peter michaelson7/12/2011 10:43:11 PM
1 Recommendation   of 1589
 
TBBC.ob via email 7/12/11 $1.30 American Energy Report $600,000

online copy of email

app.e2ma.net




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To: peter michaelson who wrote (1185)7/13/2011 8:55:08 AM
From: Tim Lento
   of 1589
 
TBBC Report ---> propennytrader.com

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From: StockDung7/15/2011 10:25:33 AM
   of 1589
 
Investorshub for a fee will hype your scam companies stock. Must be all a part of Matt Browns business plan.

"Investors Hub has been paid $3,500 (Three Thousand, Five Hundred Dollars) by a Third Party for the distribution of this email and other advertisements."

From: Investors Hub <ihub@investorshub.com>
To: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Date: 07/15/2011 10:03 AM
Subject: Momentum Alert: POTG stock Rising Incredibly Fast

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