Categories: OLD Media Moves

Investment newsletter sued for taking money from alleged Ponzi scheme

John Hielscher of the Sarasota Herald-Tribune writes that The Wall Street Digest, a Sarasota-based investment newsletter, is being sued by readers for recommending hedge funds — in return for money paid for “public relations” — that turned out to be Ponzi schemes.

Hielscher writes, “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.”