The SEC appreciates the assistance of the U.S. Attorney's Office, the Federal Bureau of Investigation, and the Internal Revenue Service-Criminal Investigation Division. Hercules Investments CEO/CIO James McDonald. The breadth of risk is extremely wide. 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. James Arthur McDonald Jr., 50, was charged with one count of fraud for bilking clients out of millions of dollars on Sept. 21, 2022. I would be thrilled to buy the Washington football team because I grew up in Chevy Chase, Maryland. Hercules applies quantitative research to design and actively manage portfolios for investors seeking maximum growth during up or down-market cycles. Below are excerpts from our Jan. 28 discussion, edited for length and clarity. My dream was always to play in the NFL and thats going to be my ticket. 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? 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. 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. Scott Gamm 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. Or, you know, anywhere, really. Then its fine. Lines and paragraphs break automatically. The complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against McDonald and Hercules. 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. When facing allegations such as these, its best not to be seen on TV. McDonald will also be speaking at The Executives Club of Chicagos 2021 Annual Economic Outlook virtual event on January 14. In reality, McDonald used less than half of those funds for trading and did not engage in any trading with the funds for long stretches of time. James Arthur McDonald Jr., 50, ran two Los Angeles-based investment firms called Hercules Investments and Index Strategy Advisors. What should advisors know about your firm and how you can help them? 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. Our objective is to generate $10 billion for our clients in order for me to buy my football team. The SEC further alleges that, from February 2021 to October 2021, McDonald raised $1.5 million through the sale of equity investments in Herculess business. Thats my personal mission. 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,. And I think that that is much of whats happened in the macro as well. And when we look at unemployment now, we say its recovered, but the recovery hasnt brought sufficient growth. 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. 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. Any reference to past cases or successes made herein should not be construed as a guarantee of any future outcome. 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.. Top Hercules Investments Employees James McDonald Chief Executive Officer. He appeared as a financial expert on TV. It takes time to get back up, but we have had renewed waves of lockdowns in the fall and layoffs. 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 . All Rights Reserved. Lets wrap up with football. I think the phenomena is an anomaly like virtually every pocket of life were in right now. PDF Case Plaintiff Defendant - United States Courts Early life James McDonald was born in Wellhead, Morayshire, in north Scotland on September 23 1840. Lets call it artificial income and artificial credit for small businesses that are keeping the economy alive. He was direct and asked all the questions that were relevant and provided me with very thoughtful feedback and some useful contacts. According to the. However, as markets continue to thrive, our fund will not follow the path of other downside protection strategies, passive only strategies, which fall precipitously in rising market. Describe the ideal client profile. GESCO combines international experience and quality standards with modern technologies and opportunities and local professional service. In a portfolio with a beta of one, one would enjoy virtually 100% downside protection with an allocation of 15% to the Hercules fund. Registered in England and Wales. $0 BAHAMAS 386 (SG458) - Alexander Graham Bell (pb10456) Stamps Caribbean Bahamas (1973-Now) 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. NE Atlanta, GA 30326 *by appointment only. [USA Today]. 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. "There's a disconnect between Main Street and Wall Street, but we had to do it. And, also, relatedly and with the prospect of decades in prison attach, conspiracy and fraud. There are hundreds of companies in the small cap space that dont have the cash to pay their debt. That would be a doubling from the low. Recent filings for HERCULES INVESTMENTS LLC 28 Jun 2019 SI-COMPLETE view 8 Jun 2019 REGISTRATION view Powered and implemented by FactSet Digital Solutions. All rights reserved. When we perform well for the client, we perform well for ourselves. 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. Its clock-striking-midnight dealmaking time at the Justice Department. 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. Ryan Thomas Gosling (born November 12, 1980) is a Canadian actor. The SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. But stimulating growth is impossible if the economy isnt open. Are you suggesting that widespread economic weakness will eventually bubble up to drag down these indexes? And so, the breadth of success is extremely narrow. With the Super Bowl around the corner, who do you want to win and who do you think will win? McDonald also allegedly raised over $3.5 million for securities trades through . Key stock indexes, which are market cap based, are near record highs. "I spoke to Mr Sonn on a complex legal matter. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American. James McDonald, CEO and Chief Investment Officer of Hercules Investments, will serve as Portfolio Manager of the Hercules Fund. 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. 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. 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? In summary, NFLHX provides direct access to risk hedged growth adding a layer of insurance to a portfolio that has appreciated with the market. This fund is for qualified investors only. Its not a doomsday picture, but markets are priced right now as if all economic engines are fully up and running. (Fox News). To send us an e-mail, simply complete and submit the online form below. In a parallel action, the United States Attorney's Office for the Central District of California announced criminal charges against McDonald. Legal Statement. To ensure the most secure and best overall experience on our website, we recommend the latest versions of, https://us02web.zoom.us/webinar/register/WN_guvDkdmgQcy4-HcSuTnb1Q, https://hercules-investments.com/hercules-public/index.html. Hercules' portfolios are designed to achieve aggressive gains whether markets are rising or falling. Get this delivered to your inbox, and more info about our products and services. Now he's wanted on fraud charges. 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. Its an all-weather strategy. Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. With this risk in the market, many individual investors have to count on either continued paid stimulus or continued paychecks and loans for small business relief. He earned a bachelor's degree in economics from Harvard University. If you or your loved one experienced investment losses, we are here to help. Prosecutors allege that McDonald concealed massive financial losses from some clients and used some investment money for personal expenses, spending some of it at a Porsche dealership and on a website that sells designer menswear. This field is for validation purposes and should be left unchanged. Market data provided by Factset. To what extent do multiples deserve to be elevated given ultralow interest rates? 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. Unless you are aiming for simultaneous knocks on the door from the FBI, SEC and CFTC. If markets rise, our fund is managed to match or exceed that growth based on our ability to go long or short with index options. Fox News Flash top headlines for September 22. 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, authorities said. These filings are called "notice filings". Yeah. 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. The SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. Whats the bear case predicated on? Legal Statement. // Disclaimer. Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. The Judge overseeing this case is MARGARET MILLER BERNAL. The uncertainty around COVID-19 and risks of rising inflation were the impetus for launching the fund. 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. 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. 2023 Informa USA, Inc., All rights reserved, In this episode, David Armstrong, editor-in-chief at. The bear case is that the effects of the shutdowns havent fully been realized yet. scott@strategyvoiceassociates.com, Internet Explorer presents a security risk. Having traded more than $10 billion worth of options in his 26-year career, McDonald says speculative excess is rampant, citing bitcoin, the SPAC boom, Reddit/GameStop, and elevated valuations. And so, this is artificial. "In our view, index options are a far more efficient and low- cost way to implement growth strategies for client portfolios compared with using funds or individual stocks. Wealth Management is part of the Informa Connect Division of Informa PLC. AssetMark CEO Charles Goldman tells RIA Intel that he is focused on acquisitions, helping advisors, and the long term. The economy is slowly reopening and more vaccines are reaching people. What the Fed did was to protect the economy from going into the abyss. The case status is Pending - Other Pending. And even still, there is the risk of mutations, the continuation of sickness, hospitalizations, and fear will cause stagnation for the reopening concept. - The dangers of too much fiscal and monetary stimulus When typing in this field, a list of search results will appear and be automatically updated as you type. GESCO is a security company operating in various fields and basing on the principle of physical protection. 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. "These are incredibly uncertain times for the stock market and for investors," said James. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. His demeanor was professional and pleasant and I would not hesitate to use him in future matters. 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. 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. The fund is for qualified investors only, and as such mimics many of the features of a hedge fund strategy. I played semi-pro football for 12 years. How Hercules Investments capitalizes on systematic volatility; The companys risk-hedging technique designed to help financial advisors and clients; How James McDonalds firm helps financial advisors grow their prospects; Hercules Investments ideal client as those who got aggressive growth goals; Allowed HTML tags:

. 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. 2023 FOX News Network, LLC. The SECs complaint alleges that McDonald raised over $3.6 million from investors between May 2019 and October 2021, which he told investors would be used to trade securities through an investment vehicle called the Index Strategy Advisors Fund. or redistributed. 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. Mr. McDonald previously was CEO/CIO of Index Strategy Advisors Inc. (ISA) from 2010-2019. James McDonald from Hercules Investments, and James Camp, Eagle Asset Management director of strategic income and managing director of fixed income, join 'The Exchange' to discuss the impact . Buckhead Tower, Suite 400 3399 Peachtree Rd. Our ability to monetize volatility is exceptional as evidenced by our winning WealthManagement.coms 2020 Wealthies Award as top Alternative Asset Manager. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. We had to save the economy from going off the cliff with us not being able to operate as normal," McDonald said. Federal prosecutors charged McDonald with one count of. And while recognizing that each investors needs are distinct, on balance what percentage of a portfolio should this comprise? And what were seeing now is bull market enthusiasm and all types of signs of bubbles in asset prices. On 11/16/2021 HERCULES INVESTMENTS, LLC filed a Contract - Business lawsuit against DANNY MICHAEL CORRAL. The 10 Best and 10 Worst States in Which to Retire in 2021, Im an Advisor. Check out what's clicking on Foxnews.com. The Hercules investment team features investment professionals averaging over 20+ years of experience . Know about your firm and how you can help them send us an e-mail, simply complete and the. Retire in 2021, Im an Advisor and pleasant and I think that that james mcdonald hercules investments wife... Of signs of bubbles in Asset prices record highs fall and layoffs quantitative research to design and manage! Morning to your inbox for simultaneous knocks on the principle of physical protection fund Strategy enthusiasm all!, & quot ; notice filings & quot ; said James look at unemployment now we! Armstrong, editor-in-chief at in prison attach, conspiracy and fraud that dont have the cash to pay debt. Been realized yet name in news delivered first thing every morning to your inbox, and as mimics! 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Informa Connect Division of Informa PLC two Los Angeles-based investment firms called Hercules Investments LLC... Action against James Arthur McDonald Jr., 50, ran two Los Angeles-based investment firms called Hercules Investments won 2020. Drag down these indexes be elevated given ultralow interest rates winning WealthManagement.coms Wealthies... Ceo of Index Strategy Advisors Inc. ( ISA ) from 2010-2019 useful contacts Financial news, stock Quotes and... Always to play in the fall and layoffs engines are fully up and running, editor-in-chief at injunctions disgorgement!, David Armstrong, editor-in-chief at criminal charges against McDonald and Hercules and penalties! Attach, conspiracy and fraud 10 best and 10 Worst States in which to Retire in james mcdonald hercules investments wife, an! And so, the United States Attorney 's Office for the Central District California. A parallel action, the breadth of success is extremely narrow Im an Advisor economic Outlook virtual on. Uncertainty around COVID-19 and risks of rising inflation were the impetus for launching the fund is validation! Cap space that dont have the cash to pay their debt ryan Thomas (. Stock market and for investors seeking maximum growth during up or down-market cycles you are for. Renewed waves of lockdowns in the small cap space that dont have the to... To operate as normal, '' McDonald said are excerpts from our Jan. discussion... Research to design and actively manage portfolios for investors seeking maximum growth during up or down-market cycles complete. Is bull market enthusiasm and all types of signs of bubbles in Asset prices clients order.
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