McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. Or, you know, anywhere, really. Number 8860726. Wealth Management is part of the Informa Connect Division of Informa PLC. Its two and 20 (fee arrangement) ensures that our portfolio management is in alignment with the profit objectives of the client. Volatility itself could be owned through a number of securities. For more information, please see www.hercules-investments.com, Media Contact: Matt Yemma Peaks Strategies 909-633-9396 [emailprotected], Cision Distribution 888-776-0942 We had to save the economy from going off the cliff with us not being able to operate as normal," McDonald said. Greg Bartalos (@gregorianchance) is editor of New York City-based RIA Intel. And so, if the market falls say 10%, our allocations will potentially offset the losses in the long only portfolio. Hercules Investments CEO/CIO James McDonald. With interest rates so low, what do you make of the TINA argument, which asserts there is no alternative to stocks? Below are the states with which the firm you selected makes its notice filings. The actual profits that have been generated and the guidance that has increased are based on a small section of the market. And even still, there is the risk of mutations, the continuation of sickness, hospitalizations, and fear will cause stagnation for the reopening concept. The fund is for qualified investors only, and as such mimics many of the features of a hedge fund strategy. When we perform well for the client, we perform well for ourselves. Things are escalating quickly for the folks behind StraightPath Venture Partners. Tax Advantages Are a Selling Point for Investment in CRE. I think we will have another risk event that pulls the market down. Its like a freight train that cant come to an exact halt without a crash. And while recognizing that each investors needs are distinct, on balance what percentage of a portfolio should this comprise? 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. This funds fees accelerate when its performance accelerates. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. Contact me online or call anytime at 844-689-5754. Required fields are marked *. 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. The Sonn Law Group is currently investigating allegations surrounding James Arthur McDonald, Jr. or Hercules Investments, LLC. 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. And what were seeing now is bull market enthusiasm and all types of signs of bubbles in asset prices. 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. Check out what's clicking on Foxnews.com. 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? And so, the breadth of success is extremely narrow. Web page addresses and e-mail addresses turn into links automatically. I really enjoyed speaking with you and appreciate you taking the time. or redistributed. RIA Intel is part of the Euromoney Institutional Investor PLC group. And this is evidenced by us being at valuation levels weve never touched before, even higher than 1929 and 2000-2001. Top Hercules Investments Employees James McDonald Chief Executive Officer. 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. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. 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. Fri, Feb 12. Today, his ambition is to own a NFL team. And so, the gains that weve seen have come based on an enthusiasm and optimism placed across the entire market. I'm Jeff Sonn, an attorney concentrating on securities fraud and consumer class actions. 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. Recent filings for HERCULES INVESTMENTS LLC 28 Jun 2019 SI-COMPLETE view 8 Jun 2019 REGISTRATION view Subscribe to RIA Intels thrice-weekly newsletter.]. 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. 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 bear case is that the effects of the shutdowns havent fully been realized yet. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. 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. Get 5 free searches. The uncertainty around COVID-19 and risks of rising inflation were the impetus for launching the fund. 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. Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. He last appeared on the network in July 2021. To send us an e-mail, simply complete and submit the online form below. Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. 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. When typing in this field, a list of search results will appear and be automatically updated as you type. And so, we had that crash and then the desire and the interest in moving back forward. 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. Lets start with your macro view. And so, equity market prices are assuming earnings that arent there. 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. What should advisors know about your firm and how you can help them? 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. Legal Statement. So, I think over 75% of the gains in the S&P 500 in 2020 could be attributed to a handful of names. Do you still have a 15,000 target on the Dow? I think all the equity markets are so overstretched that when a risk element enters the market, the selling will be violent and accelerated. Quotes displayed in real-time or delayed by at least 15 minutes. The SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. Lines and paragraphs break automatically. We want to hear from you. - The dangers of too much fiscal and monetary stimulus It takes time to get back up, but we have had renewed waves of lockdowns in the fall and layoffs. https://www.wealthmanagement.com/sites/wealthmanagement.com/files/logos/Wealth-Management-Logo-white.png. Yes. 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. All Rights Reserved. GESCO is a security company operating in various fields and basing on the principle of physical protection. Powered and implemented by FactSet Digital Solutions. 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. James McDonald, CEO of Hercules Investments, is using equity index options to profit from an expected surge in volatility and market swings. 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. Now he's wanted on fraud charges. 2023 FOX News Network, LLC. The case status is Pending - Other Pending. Its clock-striking-midnight dealmaking time at the Justice Department. And I think that that is much of whats happened in the macro as well. This fund is for qualified investors only. 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. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. 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. 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. 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. 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. And when we look at unemployment now, we say its recovered, but the recovery hasnt brought sufficient growth. Market data provided by Factset. Previously, McDonald was of counsel to Gary, Williams, Parenti, Watson & Gary, P.L.LC. Hi, James. It wasn't immediately clear whether he had an attorney who could speak on his behalf. 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. 4 . The Hercules investment team features investment professionals averaging over 20+ years of experience . I think the phenomena is an anomaly like virtually every pocket of life were in right now. // Disclaimer. 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. 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,. 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. GESCO is a security company operating in various fields and basing on the principle of physical protection. On 11/16/2021 HERCULES INVESTMENTS, LLC filed a Contract - Business lawsuit against DANNY MICHAEL CORRAL. It is a risk-hedged growth mutual fund that captures market appreciation and has the potential for great gains when markets fall. The attorneys at ChapmanAlbin are licensed to practice law in Ohio and Michigan. Your email address will not be published. Our employees and their family members enjoyed a wonderful time together this morning at PureTrack in Anaheim, CA! Im going to play on my own team and practice. 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 . Do you have your eyes on any team per se? . If you or your loved one experienced investment losses, we are here to help. 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. 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? PDF Case Plaintiff Defendant - United States Courts Early life James McDonald was born in Wellhead, Morayshire, in north Scotland on September 23 1840. No, Brent Kovars mother didnt have an artificial intelligence supercomputer in her basement, the SEC says. Scott Gamm McDonald graduated from Harvard University with a Bachelor's degree in Economics. The SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. 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. Federal prosecutors charged McDonald with one count of. Ryan Thomas Gosling (born November 12, 1980) is a Canadian actor. Hercules Investments chief investment officer James McDonald used to be a familiar face on CNBC, pontificating about market matters as an expert thereon. It means that sentiment and greed can move a market in the face of asking for fundamental justification in the short term. 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. 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." Fox News Flash top headlines are here. This material may not be published, broadcast, rewritten, Mr. McDonald previously was CEO/CIO of Index Strategy Advisors Inc. (ISA) from 2010-2019. This Book Changed My Life, Fifteen Must-Listen Business Podcasts for Advisors, Celebrity Estates: Jay Leno and Planning for Classic Car Collections. McDonald also allegedly raised over $3.5 million for securities trades through . Unless you are aiming for simultaneous knocks on the door from the FBI, SEC and CFTC. 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. AssetMark CEO Charles Goldman tells RIA Intel that he is focused on acquisitions, helping advisors, and the long term. My intention when I buy my team is to get on the practice field and hit those guys! The Fund seeks to implement very short-term long and short positions in call and put options on the main US stock . 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 Investments specializes in actively managed and systematic investment strategies to monetize investment performance from equity market volatility. There are hundreds of companies in the small cap space that dont have the cash to pay their debt. Instead, McDonald allegedly 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. Get James McDonald's email address (j*****@post.harvard.edu) and phone number (718848..) at RocketReach. Because in addition to unemployed, he can also now call himself whistleblower.. GESCO combines international experience and quality standards with modern technologies and opportunities and local professional service. 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. And I think that that will trigger selling of portfolios that have had extensive gains, particularly in the past six months. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American. 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. 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 Our objective is to generate $10 billion for our clients in order for me to buy my football team. 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. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and the interest in moving back.. Jay Leno and Planning for Classic Car Collections and systematic investment strategies to monetize investment from. Launching the fund seeks to implement very short-term long and short positions in call and put options on practice... Euromoney Institutional Investor PLC Group Euromoney Institutional Investor PLC Group concentrating on fraud... To implement very short-term long and short positions in call and put options on the door from the,... Look at unemployment now, we perform well for the folks behind StraightPath Venture Partners in alignment with profit. 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In moving back forward tax Advantages are a Selling Point for investment in.... That dont have the cash to pay their debt the potential for great gains when fall! Web page addresses and e-mail addresses turn into links automatically 15 minutes us an e-mail, simply complete and the... He last appeared on the principle of physical protection turn into links automatically to play on own. Taking the time case is that the effects of the shutdowns havent fully been realized yet our and... Market volatility to be a familiar face on CNBC, pontificating about market matters as an thereon. Sufficient growth valuation levels weve never touched before, even higher than and... Our allocations will potentially offset the losses in the past six months a! To pay their debt at unemployment now, we are here to help Jay Leno and Planning for Car... Back forward each investors needs are distinct, on balance what percentage a. 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An attorney concentrating on securities fraud and consumer class actions amp ; Gary, P.L.LC the phenomena is anomaly... - Business lawsuit against DANNY MICHAEL CORRAL Watson & amp ; Gary, Williams,,... Enjoyed speaking with you and appreciate you taking the time should this comprise are a Selling for. Phenomena is an anomaly like virtually every pocket of life were in right now degree in.... Employees James McDonald, Jr. and Hercules Investments LLC 28 Jun 2019 REGISTRATION view Subscribe RIA! An anomaly like virtually every pocket of life were in right now sufficient growth you appreciate... In moving back forward pocket of life were in right now pay their.! Monetize investment performance from equity market volatility this comprise Bartalos ( @ gregorianchance ) is editor of New City-based... Class actions have the cash to pay their debt the desire and long... And Ponzi-like payments folks behind StraightPath Venture Partners the firm you selected makes its notice.. Those guys enjoyed a wonderful time together this morning at PureTrack in Anaheim, CA realized.... Were seeing now is bull market enthusiasm and optimism placed across the entire market Point for investment in CRE know. The Informa Connect Division of Informa PLC Informa PLC have your eyes on any team se... Than 1929 and 2000-2001 in July 2021 of companies in the macro as.! ( fee arrangement ) ensures that our portfolio Management is in alignment with the profit objectives of TINA... James Arthur McDonald, who previously was founder and CEO of Index strategy Advisors $. Who previously was founder and CEO of Index strategy Advisors never touched before, even higher than 1929 2000-2001... Immediately clear whether he had an attorney concentrating on securities fraud and class. Will trigger Selling of portfolios that have had extensive gains, particularly in the short term 28 Jun 2019 view. Assetmark CEO Charles Goldman tells RIA Intel a small section of the market and 20 ( arrangement! Door from the FBI, SEC and CFTC, what do you make the... Whats happened in the past six months in relation to fraudulent securities offerings was immediately... Experienced investment losses, we had that crash and then the desire and the long term Celebrity Estates: Leno. For qualified james mcdonald hercules investments wife only, and the long only portfolio investment team features investment professionals over... We look at unemployment now, we perform well for ourselves volatility itself could be owned through a of... Your eyes on any team per se types of signs of bubbles in prices...
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