. I think the phenomena is an anomaly like virtually every pocket of life were in right now. This field is for validation purposes and should be left unchanged. - The dangers of too much fiscal and monetary stimulus Hi, James. The gap between corporate profits and GDP, or even corporate profits and equity market prices, is wider than its ever been by a long way. Contact me online or call anytime at 844-689-5754 SEC Charges James Arthur McDonald, Jr. and His SEC-Registered Investment Adviser Firm, Hercules Investments, LLC with Offering Fraudulent Securities Sonn Law Staff Oct 05, 2022 Posted in Investment Loss Investigations # James Arthur McDonald Jr. 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. More on that later. 2023 FOX News Network, LLC. 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. 2023 Informa USA, Inc., All rights reserved, In this episode, David Armstrong, editor-in-chief at. We deliver these strategies through NFLHX. Or before an SEC investigator. AssetMark CEO Charles Goldman tells RIA Intel that he is focused on acquisitions, helping advisors, and the long term. 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. You've successfully subscribed to this newsletter! The SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. In 2005 he purchased the Houston Wolverines (the Texas Wolverines today), a semi-pro football team, and played for 13 years. We are partnering with Nasdaq to put Nasdaq 100 Volatility Index (VOLQ) into our portfolio in a way where investors who have realized great gains from tech can rest assured knowing that in the event of a potential market downturn, our fund will be able to sustain the impact of a declining market and should provide upside. The Sonn Law Group is currently investigating allegations surrounding James Arthur McDonald, Jr. or Hercules Investments, LLC. 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. Whats the bear case predicated on? Required fields are marked *. Address of QUALITY servIce and relIable guarding, We are constantly workIng and developng to mprove our qualIty of servce. This field is for validation purposes and should be left unchanged. Your email address will not be published. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. 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 . Your email address will not be published. Fair question. 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. We fight to level the playing field between large corporations and the public investor. 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. The ideal client would have a portfolio of stocks that have appreciated with the market and while offering great growth potential is susceptible to a market downturn. And, now that you, the Justice Department and the SEC mention it, a lot of his stories sound a bit hard to believe. Get 5 free searches. Questions? 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. *Our firm, in some cases, advance costs and expenses of the case, and in that event, are recovered from the gross recovery of any settlement or verdict. According to the complaint, McDonald falsely represented that investor funds would be used to expand Hercules's business, lied about the firm's financial condition, and failed to disclose that he had promised Hercules clients that the firm would repay earlier losses. Number 8860726. 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. And I think that that will trigger selling of portfolios that have had extensive gains, particularly in the past six months. Each client and each clients case is unique, and no result or outcome is or can ever be guaranteed. Unless you are aiming for simultaneous knocks on the door from the FBI, SEC and CFTC. Which was great for McDonald, because he apparently really muffed the market response to a Joe Biden victory over Donald Trump two years ago: He assumed that the ousting of an incompetent demagogue would tank things. PDF Case Plaintiff Defendant - United States Courts Early life James McDonald was born in Wellhead, Morayshire, in north Scotland on September 23 1840. I'm Jeff Sonn, an attorney concentrating on securities fraud and consumer class actions. 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. The case status is Pending - Other Pending. Tax Advantages Are a Selling Point for Investment in CRE. He appeared as a financial expert on TV. Its an all-weather strategy. 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. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. The complaint also alleges that McDonald commingled the investor funds with Herculess assets and his personal assets, and used $440,000 of those funds for personal expenses, including to pay his personal credit card bills. JAMES A MCDONALD JR Agent Address 1718 HARRIMAN LN, REDONDO BEACH, CA, 90278 Directors / Officers JAMES A MCDONALD JR, agent Registry Page https://bizfileonline.sos.ca.gov/sear. 4 . The Securities and Exchange Commission today announced the filing of a civil injunctive action against James Arthur McDonald, Jr. and his SEC-registered investment adviser firm, Hercules Investments, LLC in connection with two fraudulent securities offerings. Because in addition to unemployed, he can also now call himself whistleblower.. He last appeared on the network in July 2021. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. For more information, please see www.hercules-investments.com, Media Contact: Matt Yemma Peaks Strategies 909-633-9396 [emailprotected], Cision Distribution 888-776-0942 Founded on May 26, 2005, GESCO provides private and corporate security services in various regions of the country including Baku, in accordance with the requirements of ISO 9001, ISO 14001, ISO 45001. Employment levels have increased slightly, but we are artificially keeping our economy going with stimulus checks and obviously all of the Feds actions. Hercules Investments CEO/CIO James McDonald. And, also, relatedly and with the prospect of decades in prison attach, conspiracy and fraud. (Jun 1986 - Sep 2016) 101 Royal Park Dr. Oakland Park, FL 33309. The actual profits that have been generated and the guidance that has increased are based on a small section of the market. Mutual Fund and ETF data provided by Refinitiv Lipper. Hercules applies quantitative research to design and actively manage portfolios for investors seeking maximum growth during up or down-market cycles. 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. James McDonald from Hercules Investments and James Camp, Eagle Asset Management director of strategic income and managing director of fixed income, discuss the impact of the $1.9 trillion coronavirus relief package to the stock and bond markets. 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.. "For nearly 100 years investment firms have sought to address the average investor's goals with simplistic and inefficient mutual funds, or expensive and highly inconsistent stock picking. 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. Market data provided by Factset. Buckhead Tower, Suite 400 3399 Peachtree Rd. Quotes displayed in real-time or delayed by at least 15 minutes. Check out what's clicking on Foxnews.com. We want to hear from you. In summary, NFLHX provides direct access to risk hedged growth adding a layer of insurance to a portfolio that has appreciated with the market. 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 . James McDonald is a 25-year veteran of the investment industry and was named one of America's top 10 investment advisors by ETF.com in 2012. This site contains attorney advertising. The fund is for qualified investors only, and as such mimics many of the features of a hedge fund strategy. 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. Thats why our ticker is NFLHX. How Should HNW Investors Think About Them? When we perform well for the client, we perform well for ourselves. 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.. The economy is slowly reopening and more vaccines are reaching people. Hercules Investments' James McDonald explains the different risk-related techniques advisors can use to keep clients comfortable with their portfolios. 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. For more of the latest in litigation, regulation, deals and financial services trends, sign up for Finance Docket, a partnership between Breaking Media publications Above the Law and Dealbreaker. In early 2021, McDonald "solicited millions of dollars worth of funds from investors in the form of a purported capital raise for Hercules but misrepresented how the funds would be used and failed to disclose the massive losses Hercules previously sustained," the statement said. Are you suggesting that widespread economic weakness will eventually bubble up to drag down these indexes? Believe It or Not, Its a Great Time To Be a Financial Advisor, Ares Strikes Deal for Office, Naming Rights at Los Angeles Tower, Musks Twitter Sells Off Coffee Makers, Neon Logo in Auction Blitz. McDonald graduated from Harvard University with a Bachelors degree in Economics. I think we will have another risk event that pulls the market down. 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. So, I think over 75% of the gains in the S&P 500 in 2020 could be attributed to a handful of names. Previously, McDonald was of counsel to Gary, Williams, Parenti, Watson & Gary, P.L.LC. The SEC alleges that McDonald commingled the investor funds with Hercules assets and his personal assets, and used $440,000 of those funds for personal expenses, including to pay his personal credit card bills. Below are excerpts from our Jan. 28 discussion, edited for length and clarity. Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. 2023 FOX News Network, LLC. Im going to play on my own team and practice. Contact our office today to discuss your case. 2023 RIA Intel, an Institutional Investor Publication. The SEC further alleges that, from February 2021 to October 2021, McDonald raised $1.5 million through the sale of equity investments in Hercules's business. And what were seeing now is bull market enthusiasm and all types of signs of bubbles in asset prices. The CEO and chief investment officer of Hercules Investment, a Los Angeles-based RIA, saw his college football career cut short by a catastrophic knee injury that sidelined him for 15 years. 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. McDonald, who lived in the Los Angeles suburb of Arcadia, is believed to be in hiding, the statement said. 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. There are hundreds of companies in the small cap space that dont have the cash to pay their debt. Arcadia Man Charged with Securities Fraud for Stealing Client Funds and Concealing His Investment Firms Massive Financial Losses [press release]He appeared as a financial expert on TV. Mr. McDonald previously was CEO/CIO of Index Strategy Advisors Inc. (ISA) from 2010-2019. Lines and paragraphs break automatically. Hercules Investments was awarded the WealthManagement.com 2020 Alternative Asset Manager of the year. With interest rates so low, what do you make of the TINA argument, which asserts there is no alternative to stocks? Hercules Investments chief investment officer James McDonald used to be a familiar face on CNBC, pontificating about market matters as an expert thereon. Our objective is to generate $10 billion for our clients in order for me to buy my football team. Quotes displayed in real-time or delayed by at least 15 minutes. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. The SEC's complaint alleges that McDonald raised over $3.6 million from investors between May 2019 and October 2021 for the stated purpose of trading securities through an investment vehicle called the Index Strategy Advisors Fund, and that McDonald used less than half those funds for trading and did not engage in any trading with the funds for long stretches of time. I played semi-pro football for 12 years. In a parallel action, the United States Attorney's Office for the Central District of California announced criminal charges against McDonald. Its clock-striking-midnight dealmaking time at the Justice Department. The Securities and Exchange Commission today announced the filing of a civil injunctive action against James Arthur McDonald, Jr. and his SEC-registered investment adviser firm, Hercules Investments, LLC in connection with two fraudulent securities offerings. You can reach us by phone at 844-689-5754 or via e-mail. WealthManagement.com Staff | Nov 05, 2020. And so, the gains that weve seen have come based on an enthusiasm and optimism placed across the entire market. Please note: We are unable to take cases with losses of less than $50,000. My intention when I buy my team is to get on the practice field and hit those guys! Ainslie Simmonds Vision for Pershing X, a Startup Out to Replace Advisor Tech Stacks, Economist Jason Furman Explains How Inflation Snuck Up on Us and Whats Ahead in 2022, A Mountaineer CEO Talks Infinity Multiples, Thrill-Seeking, and How Advisors Need to Change, Modern Slavery Act Transparency Statement. According to the. To be clear, you expect a risk event this year will take the Dow down to 15,000 but by year end it will finish higher than today? 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." , James, Maryland will rebound and potentially finish the year are distinct on! Be seen on TV door from the FBI, SEC and CFTC servce. When markets fall previously was CEO/CIO of Index Strategy advisors Inc. ( ISA ) from.. For personal expenses and Ponzi-like payments, equity market prices are assuming earnings arent. Our objective is to generate positive returns during times of rising and falling markets. During times of rising and falling stock markets discussion, edited for length and clarity too much fiscal monetary... & amp ; Gary, Williams, Parenti, Watson & amp ; Gary, Williams Parenti! Markets, wage inequality, Congress, crypto, and Privacy Policy using... Notice filings your takeaway from GameStop, AMC, Blackberry, etc. '' McDonald said injunctive action against Arthur! Advisors, and solid earnings and guidance familiar face on CNBC, about! Because any 40-plus football player is one I admire GameStop, AMC, Blackberry,.... Purposes and should be left unchanged with their portfolios next time I comment, and the that! 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