After almost 40 years of running Dohmen Capital Research, the investment and economic firm I founded, I have now become a victim of intimidation, defamation, and what in my opinion is “extortion” per common definitions of this term.
I never thought that I would spend this phase of my life fighting outrageous lies attacking my good name. Professional ethics don’t appear to be essential by some members of the legal profession. Knowing how to twist the facts and the law are now a way of life for some.
In 2014 I received a letter from a lawyer claiming he represented a client who had lost money in the stock market. He threatened that unless I pay a large amount, his client would “do his utmost to publicize this matter widely…”
The letter was full of false accusations, innuendos, and falsehoods. I was shocked. At first I thought it was someone trying to perpetrate a scam. But I don’t give in to such tactics and didn’t reply.
Unfortunately, the attorney was real, although the client had told me nothing. He made good on his threat, filed a suit with all the falsehoods, and then quoted them in an outrageous press release disseminated widely.
Incredibly, in 2011 this same wealthy client actually wrote a testimonial for Dohmen Capital and myself specifically:
“He (Bert Dohmen) gave me the warning about the big crash in 2008 that saved me millions of dollars.”
Apparently, by 2014 he had forgotten that and thought he found a new way to make a lot of money by finding an attorney who would actually bring such a frivolous lawsuit.
So how can the lawyer of an investor make such outrageous, defamatory and false statements publicly? Isn’t this defamation? As I now know, this is made possible by the legal concept of “privilege” and “anti-slapp.” These two are the enablers for such lawyers.
What I and others don’t know, is that the accusations of a lawsuit don’t have to be relevant, true, or accurate. Because the press release paraphrased the falsehoods in the lawsuit, he claims he was protected from a defamation suit. This allows a lot of freedom to the (otherwise) defaming attorney.
This unscrupulous behavior is apparently protected in some states. State laws should be updated to prevent such practices. If something isn’t true, dissemination of such falsehoods should not be protected. Hopefully, such questionable tactics won’t become a trend in the legal business.
In almost 40 years of being in the investment research business, and having thousands of subscribers, my reputation has never been attacked…until recently.
For those who don’t know me, let me tell you a little more about myself.
I founded my business, Dohmen Capital, in 1977. It has now been in the investment and economic research business for 39 years. Dohmen Capital doesn’t manage money, but offers in-depth research and analysis on the global stock markets and economies to individual and institutional investors. My company and I have achieved a superb reputation during that time including:
- Our award-winning Wellington Letter, which began in January 1977 and has kept investors safe in every significant market decline since that time.
- I have been ranked the #1 Stock Market Timer in the nation by Timers Digest.
- I have been a guest on many national and international TV shows, such as CNBC, CNBC ASIA, CNN, CHINA TV AMERICA, and Fox Business among others for over three decades.
- I was a special guest on Louis Rukeyser’s Wall Street Week, Lou Dobb’s Moneyline, Neil Cavuto on Fox, and The Nightly Business Report. All of which are very choosy about their guests. Jim Cramer of CNBC has also featured my chart analysis on his show, Mad Money.
- My analysis has been featured in some of the best known investment publications, such as the Wall Street Journal, Money Magazine, Barron’s, Forbes, Futures Magazine, and Seeking Alpha among many others.
Although I never wanted to write a financial book, I wrote “PRELUDE TO MELTDOWN” in 2007 because I felt so strongly about the inevitability of a severe 2008 global financial crisis.
Then I wrote “FINANCIAL APOCALYPSE,” a chronologic account of the year 2008 and the global meltdown later that year. I wanted it to be a guide for investors on how such a credit market crisis evolves, and the charts that gave me the warnings of the developing crisis.
And in 2012 I wrote “THE COMING CHINA CRISIS,” predicting a financial crisis in China. That crisis became full blown with the $5 TRILLION China market crash this summer.
Many of our subscribers have been with us for more than 20 years, some for as long as 38 years, which is unprecedented in our field. I often say that “we have the greatest clients in the world, many of whom have become true friends. And that includes several of the leading billionaires of the world.”
The outrageous press release by that attorney was posted in January 2015. Perhaps one could say that this was an announcement of the lawsuit, a news event.
But that was well over one year ago. In my opinion, to keep these false accusations on the internet until now can only be interpreted as a malicious. I can only conclude that the goal of the attorney and his client is to damage my business and my reputation as much as possible.
That is not what the lawyer’s protection under the concept of “privilege” should be for. Posting false accusations on the internet is not considered to be the role of an ethical attorney. Someone will have to answer for these malicious accusations.
I think the practice of threatening to ruin reputable people’s best reputation with irresponsible postings is becoming a serious problem. Apparently, the better a person’s reputation, the more likely he is to be a target because he values his reputation.
The European Union has already ruled that people can have defamatory postings taken off of the search engines. Search engine businesses have fought this in Europe, but lost. The US Congress needs to follow the example of the EU.
The search engines should eliminate postings of unsubstantiated materials designed to promote extortion. Sergey and Larry, do you remember your slogan, “Do no evil?”
There must be strict laws prohibiting such character assassination. It is too easy for ethic-deficient lawyers to use the internet for their outrageous practices. I will continue to pursue the topic of defamation and keep you up to date on how easy it is for honest people to become vulnerable victims. The enablers and unethical people involved need to be exposed. In due course I will divulge the names of the people involved and their backgrounds.
I thank our loyal subscribers for their support and confidence. I will continue to work for you as hard as ever, keeping you on the right side of the markets.
Founder of Dohmen Capital Research group