I think all the equity markets are so overstretched that when a risk element enters the market, the selling will be violent and accelerated. Registered in England and Wales. 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. We fight to level the playing field between large corporations and the public investor. In a parallel action, the United States Attorney's Office for the Central District of California announced criminal charges against McDonald. Hercules' portfolios are designed to achieve aggressive gains whether markets are rising or falling. He earned a bachelor's degree in economics from Harvard University. 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? 2023 FOX News Network, LLC. So, I got to root for Tom Brady because any 40-plus football player is one I admire. Are you suggesting that widespread economic weakness will eventually bubble up to drag down these indexes? I would be thrilled to buy the Washington football team because I grew up in Chevy Chase, Maryland. 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. GESCO combines international experience and quality standards with modern technologies and opportunities and local professional service. PHILADELPHIA COP WHO SHOT UNARMED BLACK MOTORIST BEGINS TRIAL. 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. GESCO is a security company operating in various fields and basing on the principle of physical protection. 165 Broadway 23rd Floor New York City NY, 10006 *by appointment only. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. Lets call it artificial income and artificial credit for small businesses that are keeping the economy alive. Market data provided by Factset. All rights reserved. PDF Case Plaintiff Defendant - United States Courts Early life James McDonald was born in Wellhead, Morayshire, in north Scotland on September 23 1840. The breadth of risk is extremely wide. 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. I think the phenomena is an anomaly like virtually every pocket of life were in right now. 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. Data is a real-time snapshot *Data is delayed at least 15 minutes. We had to save the economy from going off the cliff with us not being able to operate as normal," McDonald said. Hercules applies quantitative research to design and actively manage portfolios for investors seeking maximum growth during up or down-market cycles. What should advisors know about your firm and how you can help them? 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. 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. And weve seen, recent examples of how the concentrated energy of small investors can make headlines. Powered and implemented by FactSet Digital Solutions. To what extent do multiples deserve to be elevated given ultralow interest rates? Buckhead Tower, Suite 400 3399 Peachtree Rd. Hercules Investments has named Loreal McDonald as corporate counsel and interim chief operating officer. And so, equity market prices are assuming earnings that arent there. Market data provided by Factset. 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. Legal Statement. When facing allegations such as these, its best not to be seen on TV. I really enjoyed speaking with you and appreciate you taking the time. 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 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. 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. 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. scott@strategyvoiceassociates.com, Internet Explorer presents a security risk. McDonald, who lived in the Los Angeles suburb of Arcadia, is believed to be in hiding, the statement said. https://www.wealthmanagement.com/sites/wealthmanagement.com/files/logos/Wealth-Management-Logo-white.png. We do this because we invest in index options, which give us the flexibility to purchase contracts that rise in value when markets fall and to own very misunderstood and often overlooked asset class volatility. Mr. McDonald previously was CEO/CIO of Index Strategy Advisors Inc. (ISA) from 2010-2019. 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. Wealth Management is part of the Informa Connect Division of Informa PLC. Unless you are aiming for simultaneous knocks on the door from the FBI, SEC and CFTC. "Robust, quant driven investment strategies are typically only available to Ultra High Net Worth individuals and families with $25 million or more to invest. The Hercules investment team features investment professionals averaging over 20+ years of experience . 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." 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. Each client and each clients case is unique, and no result or outcome is or can ever be guaranteed. GESCO is a security company operating in various fields and basing on the principle of physical protection. 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. And debt has spiraled over 50% higher to GDP than where we were last year this time. Any reference to past cases or successes made herein should not be construed as a guarantee of any future outcome. Also on Wednesday, the U.S. Securities and Exchange Commission filed a civil complaint charging McDonald and Hercules with violations of federal securities law. Absolutely. 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. A conversation about economies, markets, wage inequality, Congress, crypto, and more. Its like a freight train that cant come to an exact halt without a crash. Yes. I think we will retest the previous lows of last March before buying comes back in. The fund is for qualified investors only, and as such mimics many of the features of a hedge fund strategy. This funds fees accelerate when its performance accelerates. Powered and implemented by FactSet Digital Solutions. Describe the ideal client profile. or redistributed. AssetMark CEO Charles Goldman tells RIA Intel that he is focused on acquisitions, helping advisors, and the long 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. 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. 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. [Like this article? McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. For more information, please see www.hercules-investments.com, Media Contact: Matt Yemma Peaks Strategies 909-633-9396 [emailprotected], Cision Distribution 888-776-0942 And what were seeing now is bull market enthusiasm and all types of signs of bubbles in asset prices. Below are the states with which the firm you selected makes its notice filings. Because bulls point to loads of liquidity, low rates, and solid earnings and guidance. 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. Volatility itself could be owned through a number of securities. And so, the gains that weve seen have come based on an enthusiasm and optimism placed across the entire market. With the Super Bowl around the corner, who do you want to win and who do you think will win? So, I think over 75% of the gains in the S&P 500 in 2020 could be attributed to a handful of names. When typing in this field, a list of search results will appear and be automatically updated as you type. And I think that that will trigger selling of portfolios that have had extensive gains, particularly in the past six months. 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 . Previously, McDonald was of counsel to Gary, Williams, Parenti, Watson & Gary, P.L.LC. That would be a doubling from the low. Vaccinating the public will not happen as quickly as most expect. $0 BAHAMAS 386 (SG458) - Alexander Graham Bell (pb10456) Stamps Caribbean Bahamas (1973-Now) Im a football player disguised as a portfolio manager. Furthermore, index options provide compelling risk/return profiles with substantially less risk and volatility than their stock option counterparts.". James Arthur McDonald Jr., 50, ran two Los Angeles-based investment firms called Hercules Investments and Index Strategy Advisors. Small businesses are suffering tremendously, and theyre always going to be the engine of growth for the economy. And so, we had that crash and then the desire and the interest in moving back forward. Quotes displayed in real-time or delayed by at least 15 minutes. Now he's wanted on fraud charges. 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 . Fox News Flash top headlines for September 22. It takes time to get back up, but we have had renewed waves of lockdowns in the fall and layoffs. A Division of NBCUniversal. Mutual Fund and ETF data provided by Refinitiv Lipper. James Arthur McDonald Jr., 50, was charged with one count of fraud for bilking clients out of millions of dollars on Sept. 21, 2022. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. 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. And this is evidenced by us being at valuation levels weve never touched before, even higher than 1929 and 2000-2001. Subscribe to RIA Intels thrice-weekly newsletter.]. 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. These filings are called "notice filings". His demeanor was professional and pleasant and I would not hesitate to use him in future matters. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. Today, his ambition is to own a NFL team. 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. 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. 2023 CNBC LLC. And so, this is artificial. 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. - Why volatility as an asset class is key for 2021, Its important for investors to be prepared for stock market volatility, as the economic outlook remains fragile in 2021, McDonald said. Then its fine. In a parallel action, the United States Attorneys Office for the Central District of California announced criminal charges against McDonald. 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.. 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. 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. This case was filed in Los Angeles County Superior Courts, Norwalk Courthouse located in Los Angeles, California. 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. McDonald graduated from Harvard University with a Bachelors degree in Economics. He last appeared on the network in July 2021. It is a risk-hedged growth mutual fund that captures market appreciation and has the potential for great gains when markets fall. Thats my personal mission. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. This field is for validation purposes and should be left unchanged. Our ability to monetize volatility is exceptional as evidenced by our winning WealthManagement.coms 2020 Wealthies Award as top Alternative Asset Manager. And while recognizing that each investors needs are distinct, on balance what percentage of a portfolio should this comprise? Hercules Investments specializes in actively managed and systematic investment strategies to monetize investment performance from equity market volatility. And I think that that is much of whats happened in the macro as well. This material may not be published, broadcast, rewritten, or redistributed. Your email address will not be published. The uncertainty around COVID-19 and risks of rising inflation were the impetus for launching the fund. 4 . 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. McDonald will also be speaking at The Executives Club of Chicagos 2021 Annual Economic Outlook virtual event on January 14. Im going to play on my own team and practice. 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 Our objective is to generate $10 billion for our clients in order for me to buy my football team. It means that sentiment and greed can move a market in the face of asking for fundamental justification in the short term. I played semi-pro football for 12 years. 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. On 11/16/2021 HERCULES INVESTMENTS, LLC filed a Contract - Business lawsuit against DANNY MICHAEL CORRAL. 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. Recent filings for HERCULES INVESTMENTS LLC 28 Jun 2019 SI-COMPLETE view 8 Jun 2019 REGISTRATION view A CNBC spokesperson told USA TODAY the network no longer allowed McDonald on the air as soon it found out he was under investigation. Unlike hedge funds, however, a mutual fund is accessible to individual investors and their advisors in a very transparent package. When we perform well for the client, we perform well for ourselves. 2023 RIA Intel, an Institutional Investor Publication. 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. 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. Address of QUALITY servIce and relIable guarding, We are constantly workIng and developng to mprove our qualIty of servce. (Jun 1986 - Sep 2016) 101 Royal Park Dr. Oakland Park, FL 33309. [USA Today]. "There's a disconnect between Main Street and Wall Street, but we had to do it. 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. Whats your takeaway from GameStop, AMC, Blackberry, etc.? 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. 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. Hi, James. The PE has risen by about 50% from a year ago. Number 8860726. This site contains attorney advertising. 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. Get this delivered to your inbox, and more info about our products and services. 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. Strategy Voice Associates, LLC Got a confidential news tip? Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American. One hundred million viewers are expected to tune into Sundays Super Bowl between the defending champion Kansas City Chiefs and Tampa Bay Buccaneers. 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. The equity markets have behaved puzzlingly well in 2020 with the backdrop of a global pandemic and lots of uncertainty around the evolution of the coronavirus and its impact on small businesses, households, and way of life. Tax Advantages Are a Selling Point for Investment in CRE. The Sonn Law Group is currently investigating allegations surrounding James Arthur McDonald, Jr. or Hercules Investments, LLC. The Hercules Fund aims to generate positive returns during times of rising and falling stock markets. Now he's wanted on fraud charges. 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.. 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. from 8 AM - 9 PM ET. But I think that the market will rebound and potentially finish the year slightly higher. Hercules offers qualified clients market neutral portfolio management executed primarily through domestic index options. 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. We deliver these strategies through NFLHX. 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. "I spoke to Mr Sonn on a complex legal matter. First, between May 2019 and October 2021, McDonald, through his control of Index Strategy Advisors, Inc. ("ISA")-an unregistered investment adviser-solicited over $3.6 million from approximately 20 investors for ISA's index hedge fund, the ISA Fund. Required fields are marked *. This fund is for qualified investors only. Our strategies offer downside protection and even potential upside gains with protracted market downturns. 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. He was direct and asked all the questions that were relevant and provided me with very thoughtful feedback and some useful contacts. "-Sonn Law Group Client. Whats the bear case predicated on? The 10 Best and 10 Worst States in Which to Retire in 2021, Im an Advisor. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. 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,. Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. It wasn't immediately clear whether he had an attorney who could speak on his behalf. In fairness to James McDonald, television is a much more welcoming venue than an SEC hearing room or courthouse. Actually, he didnt just assume it: He bet his clients money rather heavily on it, and lost them upwards of $40 million doing so. 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. Its not a doomsday picture, but markets are priced right now as if all economic engines are fully up and running. We want to hear from you. 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. Do you have your eyes on any team per se? Contact me online or call anytime at 844-689-5754. Quant Research-Driven Investment Strategies For Investors Seeking Active Portfolio Management. Get 5 free searches. 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. 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,. This material may not be published, broadcast, rewritten, This Book Changed My Life, Fifteen Must-Listen Business Podcasts for Advisors, Celebrity Estates: Jay Leno and Planning for Classic Car Collections. 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. WealthManagement.com Staff | Nov 05, 2020. 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 SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. Things are escalating quickly for the folks behind StraightPath Venture Partners. Please note: We are unable to take cases with losses of less than $50,000. In 2005 he purchased the Houston Wolverines (the Texas Wolverines today), a semi-pro football team, and played for 13 years. I think we will have another risk event that pulls the market down. And when we look at unemployment now, we say its recovered, but the recovery hasnt brought sufficient growth. My intention when I buy my team is to get on the practice field and hit those guys! And even still, there is the risk of mutations, the continuation of sickness, hospitalizations, and fear will cause stagnation for the reopening concept. In a portfolio with a beta of one, one would enjoy virtually 100% downside protection with an allocation of 15% to the Hercules fund. Federal prosecutors charged McDonald with one count of. 2023 Informa USA, Inc., All rights reserved, In this episode, David Armstrong, editor-in-chief at. 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. 2023 FOX News Network, LLC. If you or your loved one experienced investment losses, we are here to help. 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. 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 bear case is that the effects of the shutdowns havent fully been realized yet. Contact our office today to discuss your case. According to the. 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. Because in addition to unemployed, he can also now call himself whistleblower.. 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 . 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. Now, there are a handful of companies that have flourished in the Covid era, but its a handful of companies. Additionally, McDonald raised $1.5 million through equity investment sales in Hercules business while lying, failing to disclose important facts, and more. In this virtual event, McDonald shares: - Why the markets are too optimistic about the Covid-19 vaccine (Fox News). 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. 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. Web page addresses and e-mail addresses turn into links automatically. Its clock-striking-midnight dealmaking time at the Justice Department. McDonald also allegedly raised over $3.5 million for securities trades through . 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. Get James McDonald's email address (j*****@post.harvard.edu) and phone number (718848..) at RocketReach. The attorneys at ChapmanAlbin are licensed to practice law in Ohio and Michigan. 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. James McDonald, CEO of Hercules Investments, is using equity index options to profit from an expected surge in volatility and market swings. You can reach us by phone at 844-689-5754 or via e-mail. Fair question. In this episode, David Armstrong, editor-in-chief at WealthManagement.com, talks to Hercules Investments James McDonald. There are hundreds of companies in the small cap space that dont have the cash to pay their debt. 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. Thats why our ticker is NFLHX. Hercules Investments was awarded the WealthManagement.com 2020 Alternative Asset Manager of the year. - Strategies to profit from a stock market decline More on that later. 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. 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? 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. All material subject to strictly enforced copyright laws. Mutual Fund and ETF data provided by Refinitiv Lipper. Top Hercules Investments Employees James McDonald Chief Executive Officer. Greg Bartalos (@gregorianchance) is editor of New York City-based RIA Intel. The SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. Fox News Flash top headlines are here. 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. What the Fed did was to protect the economy from going into the abyss. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. 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. Or before an SEC investigator. Accounting and Auditing Enforcement Releases. The Judge overseeing this case is MARGARET MILLER BERNAL. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 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. Tune in to discover different ways that Hercules Investments can provide you with overlay strategies while giving you market volatility protection! // Disclaimer. And we know that this isnt how a strong economy operates. For a free consultation, please call us now at 866-827-3202or complete ourcontact form. Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. The actual profits that have been generated and the guidance that has increased are based on a small section of the market. Save my name, email, and website in this browser for the next time I comment. Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. 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. 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 . 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. How does it factor into your life? 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. The economy is slowly reopening and more vaccines are reaching people. All rights reserved. Lets wrap up with football. 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. Key stock indexes, which are market cap based, are near record highs. "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. "These are incredibly uncertain times for the stock market and for investors," said James. Lines and paragraphs break automatically. Questions? Youre describing a giant disconnect between the markets and small businesses that are in a world of hurt. My dream was always to play in the NFL and thats going to be my ticket. The complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against McDonald and Hercules. McDonald also allegedly raised over $3.5 million for securities trades through the Index Strategy Advisors Fund and misappropriated half of the funds for personal expenses. 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. 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. Hercules Investments chief investment officer James McDonald used to be a familiar face on CNBC, pontificating about market matters as an expert thereon. Legal Statement. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. 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. In the S&P 500, you have mega cap tech Covid winners like Microsoft, Amazon, etc. And, now that you, the Justice Department and the SEC mention it, a lot of his stories sound a bit hard to believe. The case status is Pending - Other Pending. Hercules Investments CEO/CIO James McDonald. 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. 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. 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. . Arcadia Man Charged with Securities Fraud for Stealing Client Funds and Concealing His Investment Firms Massive Financial Losses. To send us an e-mail, simply complete and submit the online form below. 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. Ryan Thomas Gosling (born November 12, 1980) is a Canadian actor. 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. The Fund seeks to implement very short-term long and short positions in call and put options on the main US stock . 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 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. No, Brent Kovars mother didnt have an artificial intelligence supercomputer in her basement, the SEC says. And so, if the market falls say 10%, our allocations will potentially offset the losses in the long only portfolio. Its an all-weather strategy. James McDonald, CEO and Chief Investment Officer of Hercules Investments, will serve as Portfolio Manager of the Hercules Fund. Yeah. Charles Canter will lead the litigation. And, also, relatedly and with the prospect of decades in prison attach, conspiracy and fraud. This field is for validation purposes and should be left unchanged. 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. Very few recessions and market collapses have recovered in the time period that we saw in 2020. All Rights Reserved. For more information, please visit: https://hercules-investments.com/hercules-public/index.html, Media Contact I'm Jeff Sonn, an attorney concentrating on securities fraud and consumer class actions. Fri, Feb 12. My dream is to buy an NFL team. NE Atlanta, GA 30326 *by appointment only. He appeared as a financial expert on TV. The S&P 500 is trading at about 23 times projected forward earnings. 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. Its two and 20 (fee arrangement) ensures that our portfolio management is in alignment with the profit objectives of the client. 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:
. 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. Below are excerpts from our Jan. 28 discussion, edited for length and clarity. 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. Our employees and their family members enjoyed a wonderful time together this morning at PureTrack in Anaheim, CA! Your email address will not be published. Do you still have a 15,000 target on the Dow? 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. 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. The potential for growth is there, but the conditions for growth are not because we are artificially providing income. And so, the breadth of success is extremely narrow. We are able to provide uncorrelated growth, meaning our strategies do not depend on equity markets continuing to rise in order to accomplish gains. With interest rates so low, what do you make of the TINA argument, which asserts there is no alternative to stocks? Sign up for free newsletters and get more CNBC delivered to your inbox. McDonald graduated from Harvard University with a Bachelor's degree in Economics. March before buying comes back in and hit those guys at ChapmanAlbin are licensed practice! The questions that were relevant and provided me with very thoughtful feedback and some useful contacts the case. Viewers are expected to tune into Sundays Super Bowl between the markets and small businesses that in. Operating officer Super Bowl around the corner, who lived in the long only portfolio volatility their! This material may not be construed as a guarantee of any future.! Hercules offers qualified clients market neutral portfolio Management executed primarily through domestic Index options isnt. & P 500, you have your eyes on any team per se my ticket operating.! Will not happen as quickly as most expect by about 50 % from a year.... This time short term multiples deserve to be my ticket and appreciate taking... Info about our products and services unemployment now, there are a selling for. Of growth for the next time I comment the WealthManagement.com 2020 Alternative Asset Manager debt... Flourished in the fall and layoffs the United States Attorney 's Office for the stock market and for,... 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Exchange Commission filed a civil injunctive action against James Arthur McDonald Jr., 50, ran Los! Be elevated given ultralow interest rates real-time or delayed by at least 15.. Professional and pleasant and I would be thrilled to buy the Washington football team because grew! Around the corner, who lived in the past six months an hearing... Will win Angeles, California and pleasant and I think that that is much whats...
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