Any reference to past cases or successes made herein should not be construed as a guarantee of any future outcome. Lets start with your macro view. The Hercules Fund aims to generate positive returns during times of rising and falling stock markets. Check out what's clicking on Foxnews.com. 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: . Data is a real-time snapshot *Data is delayed at least 15 minutes. 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. And I think that that is much of whats happened in the macro as well. Because in addition to unemployed, he can also now call himself whistleblower.. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Lets wrap up with football. In summary, NFLHX provides direct access to risk hedged growth adding a layer of insurance to a portfolio that has appreciated with the market. 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? Key stock indexes, which are market cap based, are near record highs. Subscribe to RIA Intels thrice-weekly newsletter.]. Contact our office today to discuss your case. 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. A CNBC spokesperson told USA TODAY the network no longer allowed McDonald on the air as soon it found out he was under investigation. 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. 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. 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. Very few recessions and market collapses have recovered in the time period that we saw in 2020. Arcadia Man Charged with Securities Fraud for Stealing Client Funds and Concealing His Investment Firms Massive Financial Losses. 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 Sonn Law Group is currently investigating allegations surrounding James Arthur McDonald, Jr. or Hercules Investments, LLC. Fair question. This material may not be published, broadcast, rewritten, A conversation about economies, markets, wage inequality, Congress, crypto, and more. It means that sentiment and greed can move a market in the face of asking for fundamental justification in the short term. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. The case status is Pending - Other Pending. 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. My intention when I buy my team is to get on the practice field and hit those guys! Resilience is the name of the game, says Mastercard CEO Michael Miebach, We've seen resilience in the U.S. consumer, says Coca-Cola CEO James Quincey, Illinois Governor JB Pritzker: Crime is coming down gradually in the city and it's getting better, Guggenheim CIO: We are predicting the recession to start mid-year, Moderna CEO: We're preparing our FDA filing for our RSV vaccine. Hercules Investments specializes in actively managed and systematic investment strategies to monetize investment performance from equity market volatility. My dream was always to play in the NFL and thats going to be my ticket. 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. 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. Fox News Flash top headlines are here. Hercules offers qualified clients market neutral portfolio management executed primarily through domestic index options. 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. Hercules applies quantitative research to design and actively manage portfolios for investors seeking maximum growth during up or down-market cycles. Of course, we know that theres tremendous risk, not just to our health, but to the sustainability of small businesses, to the credit and economic security of households and to the outlook for how we will move forward past the pandemic. Wealth Management is part of the Informa Connect Division of Informa PLC. Below are excerpts from our Jan. 28 discussion, edited for length and clarity. In fairness to James McDonald, television is a much more welcoming venue than an SEC hearing room or courthouse. Accounting and Auditing Enforcement Releases. 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. This field is for validation purposes and should be left unchanged. McDonald will discuss why investors should be prepared for a looming 2021 stock market crash, after an unprecedented stock market surge since the March 2020 Covid-19-driven stock market lows. 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. Thats my personal mission. We deliver these strategies through NFLHX. And while recognizing that each investors needs are distinct, on balance what percentage of a portfolio should this comprise? 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. Hercules' portfolios are designed to achieve aggressive gains whether markets are rising or falling. Number 8860726. 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. Do you still have a 15,000 target on the Dow? Thats why our ticker is NFLHX. 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. And weve seen, recent examples of how the concentrated energy of small investors can make headlines. GESCO is a security company operating in various fields and basing on the principle of physical protection. (Fox News). McDonald graduated from Harvard University with a Bachelor's degree in Economics. On 11/16/2021 HERCULES INVESTMENTS, LLC filed a Contract - Business lawsuit against DANNY MICHAEL CORRAL. Mutual Fund and ETF data provided by Refinitiv Lipper. 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. For more information, please see www.hercules-investments.com, Media Contact: Matt Yemma Peaks Strategies 909-633-9396 [emailprotected], Cision Distribution 888-776-0942 CHICAGO JUDGE DENIES BAIL FOR ILLINOIS WOMAN WHO ALLEGEDLY PUSHED 3-YEAR-OLD NEPHEW INTO LAKE MICHIGAN. The SECs complaint charges McDonald 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. I think we will retest the previous lows of last March before buying comes back in. In a parallel action, the United States Attorneys Office for the Central District of California announced criminal charges against McDonald. My dream is to buy an NFL team. Then its fine. The uncertainty around COVID-19 and risks of rising inflation were the impetus for launching the fund. James McDonald, CEO of Hercules Investments, is using equity index options to profit from an expected surge in volatility and market swings. The SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. We are able to provide uncorrelated growth, meaning our strategies do not depend on equity markets continuing to rise in order to accomplish gains. We fight to level the playing field between large corporations and the public investor. Market data provided by Factset. He last appeared on the network in July 2021. This Book Changed My Life, Fifteen Must-Listen Business Podcasts for Advisors, Celebrity Estates: Jay Leno and Planning for Classic Car Collections. Lets call it artificial income and artificial credit for small businesses that are keeping the economy alive. In a portfolio with a beta of one, one would enjoy virtually 100% downside protection with an allocation of 15% to the Hercules fund. And this is evidenced by us being at valuation levels weve never touched before, even higher than 1929 and 2000-2001. Also on Wednesday, the U.S. Securities and Exchange Commission filed a civil complaint charging McDonald and Hercules with violations of federal securities law. Its an all-weather strategy. And we know that this isnt how a strong economy operates. McDonald falsely represented that investor funds would be used to expand Herculess business, lied about the firms financial condition, and failed to disclose that he had promised Hercules clients that the firm would repay earlier losses. The leader of Pershing X explains why her experience, leadership style, and the support of BNY Mellon, have positioned the new venture to disrupt how wealth managers do business. The SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. Below are the states with which the firm you selected makes its notice filings. (Jun 1986 - Sep 2016) 101 Royal Park Dr. Oakland Park, FL 33309. With interest rates so low, what do you make of the TINA argument, which asserts there is no alternative to stocks? When typing in this field, a list of search results will appear and be automatically updated as you type. 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. Get James McDonald's email address (j*****@post.harvard.edu) and phone number (718848..) at RocketReach. This fund is for qualified investors only. Tax Advantages Are a Selling Point for Investment in CRE. With only a few times in history have we had a gap even approaching these levels of GDP growth, equity market prices, corporate profits, equity market prices and PE ratios. Legal Statement. PHILADELPHIA COP WHO SHOT UNARMED BLACK MOTORIST BEGINS TRIAL. 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,. 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. Hercules Investments was awarded the WealthManagement.com 2020 Alternative Asset Manager of the year. I think all the equity markets are so overstretched that when a risk element enters the market, the selling will be violent and accelerated. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. Because bulls point to loads of liquidity, low rates, and solid earnings and guidance. 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. Ryan Thomas Gosling (born November 12, 1980) is a Canadian actor. Strategy Voice Associates, LLC The attorneys at ChapmanAlbin are licensed to practice law in Ohio and Michigan. 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 . Its like a freight train that cant come to an exact halt without a crash. Buckhead Tower, Suite 400 3399 Peachtree Rd. This funds fees accelerate when its performance accelerates. Mutual Fund and ETF data provided by Refinitiv Lipper. Describe the ideal client profile. He was direct and asked all the questions that were relevant and provided me with very thoughtful feedback and some useful contacts. "Robust, quant driven investment strategies are typically only available to Ultra High Net Worth individuals and families with $25 million or more to invest. What should advisors know about your firm and how you can help them? We represent investors in claims against negligent brokers and brokerage firms. 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. No, Brent Kovars mother didnt have an artificial intelligence supercomputer in her basement, the SEC says. 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.. Sign up for free newsletters and get more CNBC delivered to your inbox. 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. In a parallel action, the United States Attorney's Office for the Central District of California announced criminal charges against McDonald. Lines and paragraphs break automatically. So, I got to root for Tom Brady because any 40-plus football player is one I admire. 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. Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. Fri, Feb 12. And so, this is artificial. 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." 2023 RIA Intel, an Institutional Investor Publication. Your email address will not be published. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. Previously, McDonald was of counsel to Gary, Williams, Parenti, Watson & Gary, P.L.LC. Yes. 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 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. 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. 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. Questions? Your email address will not be published. The complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against McDonald and Hercules. 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. Get 5 free searches. 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 . Market data provided by Factset. Its not a doomsday picture, but markets are priced right now as if all economic engines are fully up and running. "-Sonn Law Group Client. scott@strategyvoiceassociates.com, Internet Explorer presents a security risk. 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. More on that later. 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. This seriously cut in to his fee income, and CNBC appearance feesoh, yes, he was still bloviating on television about on how people should invest for more than a year-and-a-half after the most spectacular wrong call of his careerapparently dont cover the Porsches or the rent, so he decided to raise some more. 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. 2023 Informa USA, Inc., All rights reserved, In this episode, David Armstrong, editor-in-chief at. 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 According to the. This material may not be published, broadcast, rewritten, or redistributed. Save my name, email, and website in this browser for the next time I comment. And when we look at unemployment now, we say its recovered, but the recovery hasnt brought sufficient growth. But stimulating growth is impossible if the economy isnt open. I played semi-pro football for 12 years. And even still, there is the risk of mutations, the continuation of sickness, hospitalizations, and fear will cause stagnation for the reopening concept. We want to hear from you. 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. It wasn't immediately clear whether he had an attorney who could speak on his behalf. Hercules Investments has named Loreal McDonald as corporate counsel and interim chief operating officer. Please note: We are unable to take cases with losses of less than $50,000. 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. Now he's wanted on fraud charges. The economy is slowly reopening and more vaccines are reaching people. On September 21, 2022, the SEC announced charges against James Arthur McDonald, Jr. and his SEC-registered investment adviser firm, Hercules Investments, LLC in connection with two fraudulent securities offerings. That would be a doubling from the low. // Disclaimer. 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. How does it factor into your life? Meanwhile, sophisticated investors including institutional firms, insurance companies, and ultra-high net worth individuals have sought higher returns during growth phases and greater protection during recessionary phases by utilizing derivatives, particularly options," said James McDonald, who also serves as the firm's Chief Investment Officer. 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. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. Legal Statement. Fox News Flash top headlines for September 22. 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. Mr. McDonald previously was CEO/CIO of Index Strategy Advisors Inc. (ISA) from 2010-2019. This site contains attorney advertising. For more information, please visit: https://hercules-investments.com/hercules-public/index.html, Media Contact 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. GESCO is a security company operating in various fields and basing on the principle of physical protection. - The dangers of too much fiscal and monetary stimulus And what were seeing now is bull market enthusiasm and all types of signs of bubbles in asset prices. Vaccinating the public will not happen as quickly as most expect. 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,. The 10 Best and 10 Worst States in Which to Retire in 2021, Im an Advisor. Youre describing a giant disconnect between the markets and small businesses that are in a world of hurt. Get this delivered to your inbox, and more info about our products and services. McDonald was CEO of Index Strategy Advisors from 2010 until 2019, when he founded Hercules, which offers market neutral portfolio management, while specializing in high-growth equity index options for clients. Hercules Investments' James McDonald explains the different risk-related techniques advisors can use to keep clients comfortable with their portfolios. I'm Jeff Sonn, an attorney concentrating on securities fraud and consumer class actions. He earned a bachelor's degree in economics from Harvard University. Absolutely. 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. The potential for growth is there, but the conditions for growth are not because we are artificially providing income. 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. 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. The Hercules investment team features investment professionals averaging over 20+ years of experience . Im a football player disguised as a portfolio manager. "These are incredibly uncertain times for the stock market and for investors," said James. 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. Hi, James. In this virtual event, McDonald shares: - Why the markets are too optimistic about the Covid-19 vaccine The breadth of risk is extremely wide. Now he's wanted on fraud charges. Small businesses are suffering tremendously, and theyre always going to be the engine of growth for the economy. All rights reserved. The Fund seeks to implement very short-term long and short positions in call and put options on the main US stock . AssetMark CEO Charles Goldman tells RIA Intel that he is focused on acquisitions, helping advisors, and the long term. Unlike hedge funds, however, a mutual fund is accessible to individual investors and their advisors in a very transparent package. McDonald, who graduated from Harvard University with an economics degree, expects the Dow will tumble more than 50% to 15,000, a prediction he has made several times since March 2020, before surging to new highs this year. South Ozone Park, New York, United States View. 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. Additionally, McDonald raised $1.5 million through equity investment sales in Hercules business while lying, failing to disclose important facts, and more. Its two and 20 (fee arrangement) ensures that our portfolio management is in alignment with the profit objectives of the client. And, also, relatedly and with the prospect of decades in prison attach, conspiracy and fraud. "I spoke to Mr Sonn on a complex legal matter. Required fields are marked *. 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. It is a risk-hedged growth mutual fund that captures market appreciation and has the potential for great gains when markets fall. And so, equity market prices are assuming earnings that arent there. Powered and implemented by FactSet Digital Solutions. 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. Address of QUALITY servIce and relIable guarding, We are constantly workIng and developng to mprove our qualIty of servce. Greg Bartalos (@gregorianchance) is editor of New York City-based RIA Intel. 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