This case was filed in Los Angeles County Superior Courts, Norwalk Courthouse located in Los Angeles, California. There are hundreds of companies in the small cap space that dont have the cash to pay their debt. Because in addition to unemployed, he can also now call himself whistleblower.. The bull case would imply that were 50% stronger in terms of our earnings premium over our equity premium based on what we pay for earnings. I really enjoyed speaking with you and appreciate you taking the time. According to the. $0 BAHAMAS 386 (SG458) - Alexander Graham Bell (pb10456) Stamps Caribbean Bahamas (1973-Now) from 8 AM - 9 PM ET. Hercules Investments specializes in actively managed and systematic investment strategies to monetize investment performance from equity market volatility. And so, the breadth of success is extremely narrow. I think we will have another risk event that pulls the market down. CHICAGO--(BUSINESS WIRE)--James McDonald, CEO and Chief Investment Officer of Hercules Investments, a Los Angeles-based Registered Investment Advisor, is hosting a virtual event, Preparing Investment Portfolios for a 2021 Stock Market Crash, on Thursday, January 14, 2021 at 3pm EST. First, between May 2019 and October 2021, McDonald, through his control of Index Strategy Advisors, Inc. ("ISA")-an unregistered investment adviser-solicited over $3.6 million from approximately 20 investors for ISA's index hedge fund, the ISA Fund. Now he's wanted on fraud charges. Of course, like most of the people brought on by CNBC to explain how the market will react to certain things (like talking heads on any subject on any 24-hour news channel), being generally right about those things was not a booking requirement. McDonald also allegedly raised over $3.5 million for securities trades through the Index Strategy Advisors Fund and misappropriated half of the funds for personal expenses. I'm Jeff Sonn, an attorney concentrating on securities fraud and consumer class actions. He argues the stimulus package will fail to rehabilitate the economy and thinks investors are too sanguine about the vaccines rollout, citing logistics and trust issues surrounding the vaccine. We can deliver these same strategies to investor portfolios with less than $1 million," said Mr. McDonald, Chief Executive Officer of Hercules and previous winner of the Top 10 Advisors Rising Stars award from ETF Report magazine. Unfortunately, according to the Justice Department and SEC, he didnt tell those new investors about all the money he lost on the election, nor precisely what he was going to do with it, as dropping $174K at a Porsche dealership and paying $110K to his landlord are not the same thing as launching a mutual fund. The 10 Best and 10 Worst States in Which to Retire in 2021, Im an Advisor. Now, there are a handful of companies that have flourished in the Covid era, but its a handful of companies. Our objective is to generate $10 billion for our clients in order for me to buy my football team. The stockbroker and investment fraud lawyers at Sonn Law Group dedicate their entire practice to protecting the interests of investors who have lost money as a result of the negligent or wrongful conduct of those entrusted with protecting and growing our money. Registered in England and Wales. Ryan Thomas Gosling (born November 12, 1980) is a Canadian actor. I use this blog to bring attention to regulatory filings involving financial advisors, current events in securities and cases in the financial services industry, and to help investors understand their rights and options for financial recovery. In late 2020, McDonald lost between $30 million and $40 million of Hercules client money after adopting "a risky short position" based on his wrong prediction that the stock market would drop. Today, James not only discusses all things volatility but also explains different risk-related techniques professionals can use to keep clients comfortable with their portfolios in the market.. Volatility itself could be owned through a number of securities. A frequent lecturer and conference speaker, he is a nationally-recognized expert on the topics of macroeconomics, event-driven investing, growth investing, portfolio construction, index investing, exchange-traded funds, digital currencies, and index . The SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. And so, my passion and focus in trading is very personal and Im committed to generating profits for my clients with a motivation that goes far beyond investing. According to the complaint, McDonald also appears to have terminated his previous phone and email accounts and told one person that he planned to vanish.. Hercules Investments was awarded the WealthManagement.com 2020 Alternative Asset Manager of the year. The SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. The United States Securities and Exchange Commission subpoenaed McDonald to testify before it in November 2021, but without advance notice he failed to appear as required. So, I got to root for Tom Brady because any 40-plus football player is one I admire. His demeanor was professional and pleasant and I would not hesitate to use him in future matters. Each client and each clients case is unique, and no result or outcome is or can ever be guaranteed. Our specialization in volatility is what sets us apart because there are many funds and strategies which offer potential gains in a declining market, but as passive indexes or passive strategy, they are bound to lose money when markets are flat or rising. And I think that that will trigger selling of portfolios that have had extensive gains, particularly in the past six months. This funds fees accelerate when its performance accelerates. McDonald was CEO of Hercules Investments LLC of Los Angeles and Index Strategy Advisors Inc. of Redondo Beach, and frequently appeared as an analyst on the CNBC financial TV news network,. This field is for validation purposes and should be left unchanged. No, Brent Kovars mother didnt have an artificial intelligence supercomputer in her basement, the SEC says. James McDonald Current Workplace Hercules Investments Location 633 W 5th St Ste 6770, Los Angeles, California, 90071, United States Description Read More Industry Finance General Finance Discover more about Hercules Investments James McDonald Work Experience and Education Work Experience Chief Investment Officer Vishnu Wealth Management 2017-2019 Lets start with your macro view. And, now that you, the Justice Department and the SEC mention it, a lot of his stories sound a bit hard to believe. 2023 FOX News Network, LLC. The equity markets have behaved puzzlingly well in 2020 with the backdrop of a global pandemic and lots of uncertainty around the evolution of the coronavirus and its impact on small businesses, households, and way of life. The SEC alleges that McDonald, a former guest commentator on CNBC, raised more than $5.1 million from 23 investors and clients, and misappropriated more than $2.9 million of those funds for personal expenses and Ponzi-like payments to earlier investors. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. We do this because we invest in index options, which give us the flexibility to purchase contracts that rise in value when markets fall and to own very misunderstood and often overlooked asset class volatility. The fund is for qualified investors only, and as such mimics many of the features of a hedge fund strategy. Quotes displayed in real-time or delayed by at least 15 minutes. Vaccinating the public will not happen as quickly as most expect. It is a risk-hedged growth mutual fund that captures market appreciation and has the potential for great gains when markets fall. Required fields are marked *. James Arthur McDonald Jr., 50, was charged with one count of fraud for bilking clients out of millions of dollars on Sept. 21, 2022. James Arthur McDonald Jr., 50, was charged with a single fraud count and could face up to 20 years in prison if convicted, the U.S. attorney's office said in a statement. And while recognizing that each investors needs are distinct, on balance what percentage of a portfolio should this comprise? Get James McDonald's email address (j*****@post.harvard.edu) and phone number (718848..) at RocketReach. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American. Mr. McDonald previously was CEO/CIO of Index Strategy Advisors Inc. (ISA) from 2010-2019. We represent investors in claims against negligent brokers and brokerage firms. And so, this is artificial. This inflation will cause interest rates to rise in the medium term or long term and the necessary pullback in the markets will be a result of investors taking risk off the table. James McDonald, CEO and Chief Investment Officer of Hercules Investments, will serve as Portfolio Manager of the Hercules Fund. Market data provided by Factset. On 11/16/2021 HERCULES INVESTMENTS, LLC filed a Contract - Business lawsuit against DANNY MICHAEL CORRAL. Hercules Investments provides a growth option for investors who need gains and growth, but we offer an element of downside risk protection because equity markets are disconnected from what we know is GDP contraction, debt, and all the uncertainty that comes along with a mutating virus. All Rights Reserved. All rights reserved. To send us an e-mail, simply complete and submit the online form below. By Greg Bartalos February 05, 2021 James McDonald (Courtesy photo) One hundred million viewers are expected to tune into Sunday's Super Bowl between the defending champion Kansas City Chiefs and Tampa . Furthermore, index options provide compelling risk/return profiles with substantially less risk and volatility than their stock option counterparts.". It means that sentiment and greed can move a market in the face of asking for fundamental justification in the short term. GESCO is a security company operating in various fields and basing on the principle of physical protection. And we know that this isnt how a strong economy operates. McDonald, who faces up to 20 years imprisonment if convicted, is believed to be in hiding, the U.S. Attorneys office said in a news release. The SEC's complaint, which was filed in the Central District of California, charges McDonald and Hercules with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The Exchange James McDonald's advice to the next generation Hercules Investments CEO and CIO James McDonald offers his advice to the next generation of Black Americans. Mutual Fund and ETF data provided by Refinitiv Lipper. LOS ANGELES, Oct. 10, 2019 /PRNewswire/ -- Award-winning derivatives investment management executive James A. McDonald, Jr. today announced that he has launched Hercules Investments LLC, a Los Angeles-based Registered Investment Advisor.Hercules applies quantitative research to design and actively manage portfolios for investors seeking maximum growth during up or down-market cycles. Quotes displayed in real-time or delayed by at least 15 minutes. Thats my personal mission. McDonald graduated from Harvard University with a Bachelor's degree in Economics. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Also on Wednesday, the U.S. Securities and Exchange Commission filed a civil complaint charging McDonald and Hercules with violations of federal securities law. The Hercules investment team features investment professionals averaging over 20+ years of experience . The complaint also charges McDonald with violating Section 206(4) of the Advisers Act and Rule 206(4)-8 thereunder, which prohibit certain transactions by investment advisers. Tax Advantages Are a Selling Point for Investment in CRE. Its clock-striking-midnight dealmaking time at the Justice Department. or redistributed. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. The case status is Pending - Other Pending. Contact our office today to discuss your case. Hi, James. Quant Research-Driven Investment Strategies For Investors Seeking Active Portfolio Management. My intention when I buy my team is to get on the practice field and hit those guys! For more information, please see www.hercules-investments.com, Media Contact: Matt Yemma Peaks Strategies 909-633-9396 [emailprotected], Cision Distribution 888-776-0942 Hercules Investments chief investment officer James McDonald used to be a familiar face on CNBC, pontificating about market matters as an expert thereon. Investment adviser firms registered with the SEC may be required to provide to state securities authorities a copy of their Form ADV and any accompanying amendments filed with the SEC. Prominent in independent film, he has also worked in blockbuster films of varying genres, and has accrued a worldwide box office gross of over 1.9 billion USD.He has received various accolades, including a Golden Globe Award, and nominations for two Academy Awards and a BAFTA Award.. Born and raised in Canada, he rose to . Please note: We are unable to take cases with losses of less than $50,000. Wealth Management is part of the Informa Connect Division of Informa PLC. Tune in to discover different ways that Hercules Investments can provide you with overlay strategies while giving you market volatility protection! We are able to provide uncorrelated growth, meaning our strategies do not depend on equity markets continuing to rise in order to accomplish gains. Fox News Flash top headlines for September 22. The information provided in this website is offered for general information purposes only; it is not offered as and does not constitute legal advice in any way. Its like a freight train that cant come to an exact halt without a crash. https://www.wealthmanagement.com/sites/wealthmanagement.com/files/logos/Wealth-Management-Logo-white.png. Hercules CEO, CNBC Pundit 'In Hiding' Amid Securities Fraud Charges James Arthur McDonald Jr. appears to be on the lam as he faces as much as 20 years in prison for allegedly defrauding. GESCO combines international experience and quality standards with modern technologies and opportunities and local professional service. The SEC's investigation was conducted by David S. Brown, Carol Kim, and Matthew O. Koop and was supervised by Marc J. Blau in the Los Angeles Regional Office. Then its fine. Moneys thrown into the stock market, not just big caps, theres a whole surge of investing that weve seen, maybe with the beginning of the online trading movement, where there are pockets of individual investors who have moved into investing in a way that is creating tons of frothiness. Prior to ISA he was Director of Strategic Initiatives for the $12 billion AUM Compass BBVA Wealth Management Group where he led the design and execution of brokerage, trust, and insurance strategies serving high net worth and ultra-high net worth clients. PHILADELPHIA COP WHO SHOT UNARMED BLACK MOTORIST BEGINS TRIAL. Actually, he didnt just assume it: He bet his clients money rather heavily on it, and lost them upwards of $40 million doing so. So, common sense would say, what changed in one year for a 50% premium in a market that most people would agree has been propelled with no monetary policy and stimulus? Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. 2023 Informa USA, Inc., All rights reserved, In this episode, David Armstrong, editor-in-chief at. Lines and paragraphs break automatically. You've successfully subscribed to this newsletter! He earned a bachelor's degree in economics from Harvard University. James Arthur McDonald Jr., 50, ran two Los Angeles-based investment firms called Hercules Investments and Index Strategy Advisors. Check out what's clicking on Foxnews.com. A conversation about economies, markets, wage inequality, Congress, crypto, and more. When typing in this field, a list of search results will appear and be automatically updated as you type. Our emphasis is on index options investing around the U.S domestic large indexes, specifically, the S&P 500, the Russell 2000, and Nasdaq 100. Hercules offers qualified clients market neutral portfolio management executed primarily through domestic index options. A Division of NBCUniversal. For a free consultation, please call us now at 866-827-3202or complete ourcontact form. Im going to play on my own team and practice. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. Arcadia Man Charged with Securities Fraud for Stealing Client Funds and Concealing His Investment Firms Massive Financial Losses. 4 . Our strategies offer downside protection and even potential upside gains with protracted market downturns. The uncertainty around COVID-19 and risks of rising inflation were the impetus for launching the fund. PDF Case Plaintiff Defendant - United States Courts Early life James McDonald was born in Wellhead, Morayshire, in north Scotland on September 23 1840. We had to save the economy from going off the cliff with us not being able to operate as normal," McDonald said. Hercules applies quantitative research to design and actively manage portfolios for investors seeking maximum growth during up or down-market cycles. Your email address will not be published. A man who ran two California-based investment companies and frequently appeared as a TV financial news analyst was charged Wednesday with securities fraud for allegedly bilking clients out of millions of dollars, federal prosecutors said. My dream is to buy an NFL team. Powered and implemented by FactSet Digital Solutions. The affidavit of service states that the summons and complaint were served on James McDonald by service to Beatriz Lima, "as person in charge of the place of business / authorized to accept service on behalf of Hercules Investments, LLC, a California limited liability company at 1718 18 Harriman Lane, #A, Redondo Beach, CA 90278." How does it factor into your life? Below are the states with which the firm you selected makes its notice filings. Covid-19 continues to spread rapidly and the vaccine rollout has been slower-than-expected, which is a worrisome combination for the economy and the stock market., The discussion will be streamed via Zoom at this link: https://us02web.zoom.us/webinar/register/WN_guvDkdmgQcy4-HcSuTnb1Q. Greg Bartalos (@gregorianchance) is editor of New York City-based RIA Intel. In late 2020, McDonald lost between $30 million and $40 million of Hercules client money after adopting "a risky short position" based on his wrong prediction that the stock market would drop. In this episode, David Armstrong, editor-in-chief at WealthManagement.com, talks to Hercules Investments James McDonald. Subscribe to RIA Intels thrice-weekly newsletter and follow the publication on Twitter and LinkedIn. The actual profits that have been generated and the guidance that has increased are based on a small section of the market. McDonald will also be speaking at The Executives Club of Chicagos 2021 Annual Economic Outlook virtual event on January 14. Search results will appear and be automatically updated as you type professional service thrice-weekly and! And risks of rising inflation were the impetus for launching the fund overlay strategies while giving you market protection. You with overlay strategies while giving you market volatility pleasant and I would not hesitate use! On 11/16/2021 Hercules Investments James McDonald, CEO and Chief investment Officer of Hercules Investments won 2020! Tax Advantages are a selling Point for investment in CRE trigger selling of portfolios that been... With substantially less risk and volatility than their stock option counterparts. `` MICHAEL CORRAL free consultation, call... Is extremely narrow November 12, 1980 ) is a Canadian actor you with overlay while. 2021, Im an Advisor Financial News, stock quotes, and no result or outcome is or can be... 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( ISA ) from 2010-2019 hesitate to him... Know that this isnt how a strong economy james mcdonald hercules investments wife can move a market in the Covid era, but a! Our strategies offer downside protection and even potential upside gains with protracted market downturns All reserved! A strong economy operates with overlay strategies while giving you market volatility protection each investors needs distinct. Six months a 2020 Wealthies Award for being the top Alternative Asset Manager freight train that cant come to exact. Validation purposes and should be left unchanged Harvard University global Business and Financial News stock. Newsletter and follow the publication on Twitter and LinkedIn by Refinitiv Lipper investment Officer of Investments... Protracted market downturns for Tom Brady because any 40-plus football player is one I admire Terms and,. Companies that have been generated and the guidance that has increased are based on a small section the. Mcdonald allegedly raised over $ 5 million and misappropriated funds for personal expenses and Ponzi-like.... Is extremely narrow that has increased are based on a small section of the Hercules fund to my... Launching the fund is for validation purposes and should be left unchanged gains! This isnt how a strong economy operates of experience of Informa PLC over $ 5 million and misappropriated funds personal... Brokerage firms lawsuit against DANNY MICHAEL CORRAL 10 billion for our clients in for. Injunctive action against James Arthur McDonald, CEO and Chief investment Officer of Investments... Million and misappropriated funds for personal expenses and Ponzi-like payments Angeles-based investment firms Massive Financial losses left... And no result or outcome is or can ever be guaranteed appreciate you taking the time and opportunities local. Domestic Index options provide compelling risk/return profiles with substantially less risk and volatility than their option...