The Sonn Law Group is currently investigating allegations surrounding James Arthur McDonald, Jr. or Hercules Investments, LLC. One hundred million viewers are expected to tune into Sundays Super Bowl between the defending champion Kansas City Chiefs and Tampa Bay Buccaneers. 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 . Then its fine. In a parallel action, the United States Attorney's Office for the Central District of California announced criminal charges against McDonald. That would be a doubling from the low. James Arthur McDonald Jr., 50, was charged with one count of fraud for bilking clients out of millions of dollars on Sept. 21, 2022. 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. Despite the challenges of Covid, equity markets have pushed to all-time highs on most indexes in a fashion that would suggest there is no risk in the market. 2023 FOX News Network, LLC. Lets start with your macro view. PDF Case Plaintiff Defendant - United States Courts Early life James McDonald was born in Wellhead, Morayshire, in north Scotland on September 23 1840. James McDonald, CEO of Hercules Investments, is using equity index options to profit from an expected surge in volatility and market swings. Charles Canter will lead the litigation. Hercules applies quantitative research to design and actively manage portfolios for investors seeking maximum growth during up or down-market cycles. Wealth Management is part of the Informa Connect Division of Informa PLC. Recent filings for HERCULES INVESTMENTS LLC 28 Jun 2019 SI-COMPLETE view 8 Jun 2019 REGISTRATION view 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. And this is evidenced by us being at valuation levels weve never touched before, even higher than 1929 and 2000-2001. or redistributed. The case status is Pending - Other Pending. Get 5 free searches. And so, this is artificial. And what were seeing now is bull market enthusiasm and all types of signs of bubbles in asset prices. It is a risk-hedged growth mutual fund that captures market appreciation and has the potential for great gains when markets fall. This funds fees accelerate when its performance accelerates. Legal Statement. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. Web page addresses and e-mail addresses turn into links automatically. 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 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. 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. Powered and implemented by FactSet Digital Solutions. Instead, the SEC alleges, McDonald misappropriated more than $1 million of the funds for personal expenses, including luxury vehicles and paying rent on his home, and misappropriated more than $2 million of the funds for Ponzi-like payments, payments to his Hercules' investment adviser clients and expenses associated with operating Hercules. This case was filed in Los Angeles County Superior Courts, Norwalk Courthouse located in Los Angeles, California. I would be thrilled to buy the Washington football team because I grew up in Chevy Chase, Maryland. Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. We had to save the economy from going off the cliff with us not being able to operate as normal," McDonald said. "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. My dream is to buy an NFL team. We want to hear from you. - Strategies to profit from a stock market decline 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. Scott Gamm 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. . Or, you know, anywhere, really. 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. $0 BAHAMAS 386 (SG458) - Alexander Graham Bell (pb10456) Stamps Caribbean Bahamas (1973-Now) Yes. 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. And so, equity market prices are assuming earnings that arent there. Mr. McDonald previously was CEO/CIO of Index Strategy Advisors Inc. (ISA) from 2010-2019. 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. All rights reserved. Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. Get James McDonald's email address (j*****@post.harvard.edu) and phone number (718848..) at RocketReach. The uncertainty around COVID-19 and risks of rising inflation were the impetus for launching the fund. 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. 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. Fox News Flash top headlines for September 22. "These are incredibly uncertain times for the stock market and for investors," said James. Our ability to monetize volatility is exceptional as evidenced by our winning WealthManagement.coms 2020 Wealthies Award as top Alternative Asset Manager. Because bulls point to loads of liquidity, low rates, and solid earnings and guidance. 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. Save my name, email, and website in this browser for the next time I comment. Now he's wanted on fraud charges. Our strategies offer downside protection and even potential upside gains with protracted market downturns. Its not a doomsday picture, but markets are priced right now as if all economic engines are fully up and running. 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. CHICAGO JUDGE DENIES BAIL FOR ILLINOIS WOMAN WHO ALLEGEDLY PUSHED 3-YEAR-OLD NEPHEW INTO LAKE MICHIGAN. In this virtual event, McDonald shares: - Why the markets are too optimistic about the Covid-19 vaccine Furthermore, index options provide compelling risk/return profiles with substantially less risk and volatility than their stock option counterparts.". 2023 CNBC LLC. Its like a freight train that cant come to an exact halt without a crash. 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. "I spoke to Mr Sonn on a complex legal matter. You can reach us by phone at 844-689-5754 or via e-mail. 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. 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. Small businesses are suffering tremendously, and theyre always going to be the engine of growth for the economy. 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 . 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. With the Super Bowl around the corner, who do you want to win and who do you think will win? Additionally, McDonald raised $1.5 million through equity investment sales in Hercules business while lying, failing to disclose important facts, and more. He was direct and asked all the questions that were relevant and provided me with very thoughtful feedback and some useful contacts. And, also, relatedly and with the prospect of decades in prison attach, conspiracy and fraud. Fox News Flash top headlines are here. 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 because of the COVID-19 pandemic and the results of the U.S. presidential election, the U.S. attorney's office said. For a free consultation, please call us now at 866-827-3202or complete ourcontact form. In a portfolio with a beta of one, one would enjoy virtually 100% downside protection with an allocation of 15% to the Hercules fund. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. Get this delivered to your inbox, and more info about our products and services. You've successfully subscribed to this newsletter! 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. Contact me online or call anytime at 844-689-5754. 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. Previously, McDonald was of counsel to Gary, Williams, Parenti, Watson & Gary, P.L.LC. And even still, there is the risk of mutations, the continuation of sickness, hospitalizations, and fear will cause stagnation for the reopening concept. Our objective is to generate $10 billion for our clients in order for me to buy my football team. And I think that that will trigger selling of portfolios that have had extensive gains, particularly in the past six months. Tax Advantages Are a Selling Point for Investment in CRE. 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. I think we will have another risk event that pulls the market down. His demeanor was professional and pleasant and I would not hesitate to use him in future matters. 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." Strategy Voice Associates, LLC Lets call it artificial income and artificial credit for small businesses that are keeping the economy alive. 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. Thats my personal mission. Accounting and Auditing Enforcement Releases. McDonald also allegedly raised over $3.5 million for securities trades through . 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. Below are the states with which the firm you selected makes its notice filings. from 8 AM - 9 PM ET. 4 . Quant Research-Driven Investment Strategies For Investors Seeking Active Portfolio Management. This field is for validation purposes and should be left unchanged. Subscribe to RIA Intels thrice-weekly newsletter.]. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. Mutual Fund and ETF data provided by Refinitiv Lipper. According to the. What the Fed did was to protect the economy from going into the abyss. Got a confidential news tip? I played semi-pro football for 12 years. 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. 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: .
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