CHARLESTON – A Summers County man wants his $5,000 subscription fee to an investment newsletter back as well as $1 million for the editor's "egregious conduct."
John J. Welch Jr. of Talcott claims he lost "very significant funds" following the investment advice of Nick Guarino and his The Wall Street Underground newsletter, which is based in Delaware.
In his lawsuit filed Dec. 12 in Kanawha Circuit Court, Welch says the newsletter guarantees a return of the subscription fee if the subscriber is dissatisfied with service.
After losing an undisclosed amount of money, Welch claims he has sought the refund since 2000.
Welch claims Guarino and his newsletter are guilty of willful and intentional fraud.
An Internet search shows that the Wall Street Underground newsletter is no stranger to these types of claims and lawsuits.
"I would like to know if Nick Guarino - the editor of Wall Street Underground - is on the level or what? One of his written claims is ... 'you'll turn every $2500 invested into at least $100,000 in 6 months - or everything I send you is ABSOLUTELY FREE, including your subscription,'" one person writes on experts.about.com.
Expert Victor Mador replies, "100%, absolute hogwash. Anyone stupid enough to believe that should be locked up. And, big deal. He gives you back your subscription price, so what? Most won't bother asking. Other's won't be able to afford ... the postage. Stay away. He should be put out of business."
In the Welch suit, filed by Talcott attorney Wilson Burdette Jr., Welch seeks his $5,000 subscription fee, an injunction to keep such an incident from happening again, a referrato the state's Consumer Fraud Division and punitive damages for "egregious conduct" of $1 million. In addition, he seeks general costs, fees, expenses and other damages permitted by law.
The case has been assigned to Circuit Court Judge Charley King.
Kanawha Circuit Court case number: 05-C-2700