Or before an SEC investigator. The S&P 500 is trading at about 23 times projected forward earnings. My dream is to buy an NFL team. And what were seeing now is bull market enthusiasm and all types of signs of bubbles in asset prices. 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. The Hercules investment team features investment professionals averaging over 20+ years of experience . 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? 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.. 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. scott@strategyvoiceassociates.com, Internet Explorer presents a security risk. And weve seen, recent examples of how the concentrated energy of small investors can make headlines. How Should HNW Investors Think About Them? 4 . Subscribe to RIA Intels thrice-weekly newsletter and follow the publication on Twitter and LinkedIn. Fox News Flash top headlines for September 22. 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. Hercules Investments' James McDonald explains the different risk-related techniques advisors can use to keep clients comfortable with their portfolios. 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. 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 . McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. Hercules Investments CEO/CIO James McDonald. He earned a bachelor's degree in economics from Harvard University. Data is a real-time snapshot *Data is delayed at least 15 minutes. Its an all-weather strategy. Now he's wanted on fraud charges. Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. Small businesses are suffering tremendously, and theyre always going to be the engine of growth for the economy. or redistributed. Its two and 20 (fee arrangement) ensures that our portfolio management is in alignment with the profit objectives of the client. When facing allegations such as these, its best not to be seen on TV. This site contains attorney advertising. 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. 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 . - 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. $0 BAHAMAS 386 (SG458) - Alexander Graham Bell (pb10456) Stamps Caribbean Bahamas (1973-Now) "I spoke to Mr Sonn on a complex legal matter. Describe the ideal client profile. Very few recessions and market collapses have recovered in the time period that we saw in 2020. When typing in this field, a list of search results will appear and be automatically updated as you type. Legal Statement. It is a risk-hedged growth mutual fund that captures market appreciation and has the potential for great gains when markets fall. The actual profits that have been generated and the guidance that has increased are based on a small section of the market. Get 5 free searches. The Sonn Law Group is currently investigating allegations surrounding James Arthur McDonald, Jr. or Hercules Investments, LLC. Tax Advantages Are a Selling Point for Investment in CRE. According to the. Lets call it artificial income and artificial credit for small businesses that are keeping the economy alive. Previously, McDonald was of counsel to Gary, Williams, Parenti, Watson & Gary, P.L.LC. 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. And this is evidenced by us being at valuation levels weve never touched before, even higher than 1929 and 2000-2001. I really enjoyed speaking with you and appreciate you taking the time. McDonald will also be speaking at The Executives Club of Chicagos 2021 Annual Economic Outlook virtual event on January 14. 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. Whats the bear case predicated on? You've successfully subscribed to this newsletter! On 11/16/2021 HERCULES INVESTMENTS, LLC filed a Contract - Business lawsuit against DANNY MICHAEL CORRAL. Strategy Voice Associates, LLC In summary, NFLHX provides direct access to risk hedged growth adding a layer of insurance to a portfolio that has appreciated with the market. 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. One hundred million viewers are expected to tune into Sundays Super Bowl between the defending champion Kansas City Chiefs and Tampa Bay Buccaneers. And debt has spiraled over 50% higher to GDP than where we were last year this time. This case was filed in Los Angeles County Superior Courts, Norwalk Courthouse located in Los Angeles, California. McDonald graduated from Harvard University with a Bachelors degree in Economics. 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:

. Check out what's clicking on Foxnews.com. 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. Our strategies offer downside protection and even potential upside gains with protracted market downturns. In 2005 he purchased the Houston Wolverines (the Texas Wolverines today), a semi-pro football team, and played for 13 years. Thats why our ticker is NFLHX. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. 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. Lets wrap up with football. Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. 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. 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 2023 RIA Intel, an Institutional Investor Publication. The SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. This Book Changed My Life, Fifteen Must-Listen Business Podcasts for Advisors, Celebrity Estates: Jay Leno and Planning for Classic Car Collections. Hi, James. But stimulating growth is impossible if the economy isnt open. James Arthur McDonald Jr., 50, was charged with one count of fraud for bilking clients out of millions of dollars on Sept. 21, 2022. When we perform well for the client, we perform well for ourselves. 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. Yes. 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. Your email address will not be published. Sign up for free newsletters and get more CNBC delivered to your inbox. 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. In this virtual event, McDonald shares: - Why the markets are too optimistic about the Covid-19 vaccine Legal Statement. We had to save the economy from going off the cliff with us not being able to operate as normal," McDonald said. For more information, please see www.hercules-investments.com, Media Contact: Matt Yemma Peaks Strategies 909-633-9396 [emailprotected], Cision Distribution 888-776-0942 "-Sonn Law Group Client. Its clock-striking-midnight dealmaking time at the Justice Department. 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. And so, this is artificial. Get James McDonald's email address (j*****@post.harvard.edu) and phone number (718848..) at RocketReach. PDF Case Plaintiff Defendant - United States Courts Early life James McDonald was born in Wellhead, Morayshire, in north Scotland on September 23 1840. Do you still have a 15,000 target on the Dow? Volatility itself could be owned through a number of securities. 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 this episode, David Armstrong, editor-in-chief at WealthManagement.com, talks to Hercules Investments James McDonald. Key stock indexes, which are market cap based, are near record highs. And so, the gains that weve seen have come based on an enthusiasm and optimism placed across the entire market. "Robust, quant driven investment strategies are typically only available to Ultra High Net Worth individuals and families with $25 million or more to invest. Your email address will not be published. We are able to provide uncorrelated growth, meaning our strategies do not depend on equity markets continuing to rise in order to accomplish gains. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. The Fund seeks to implement very short-term long and short positions in call and put options on the main US stock . CHICAGO JUDGE DENIES BAIL FOR ILLINOIS WOMAN WHO ALLEGEDLY PUSHED 3-YEAR-OLD NEPHEW INTO LAKE MICHIGAN. 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. Contact me online or call anytime at 844-689-5754. GESCO combines international experience and quality standards with modern technologies and opportunities and local professional service. He appeared as a financial expert on TV. Mutual Fund and ETF data provided by Refinitiv Lipper. Required fields are marked *. Unlike hedge funds, however, a mutual fund is accessible to individual investors and their advisors in a very transparent package. There are hundreds of companies in the small cap space that dont have the cash to pay their debt. This material may not be published, broadcast, rewritten, or redistributed. Questions? A CNBC spokesperson told USA TODAY the network no longer allowed McDonald on the air as soon it found out he was under investigation. Also on Wednesday, the U.S. Securities and Exchange Commission filed a civil complaint charging McDonald and Hercules with violations of federal securities law. McDonald, who lived in the Los Angeles suburb of Arcadia, is believed to be in hiding, the statement said. James Arthur McDonald Jr., 50, ran two Los Angeles-based investment firms called Hercules Investments and Index Strategy Advisors. Additionally, McDonald raised $1.5 million through equity investment sales in Hercules business while lying, failing to disclose important facts, and more. Now he's wanted on fraud charges. 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 seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against McDonald and Hercules. Fox News Flash top headlines are here. 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 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. 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. In the S&P 500, you have mega cap tech Covid winners like Microsoft, Amazon, etc. - The dangers of too much fiscal and monetary stimulus How does it factor into your life? Vaccinating the public will not happen as quickly as most expect. The breadth of risk is extremely wide. 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. Quotes displayed in real-time or delayed by at least 15 minutes. Scott Gamm A conversation about economies, markets, wage inequality, Congress, crypto, and more. You can reach us by phone at 844-689-5754 or via e-mail. Web page addresses and e-mail addresses turn into links automatically. And so, if the market falls say 10%, our allocations will potentially offset the losses in the long only portfolio. 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. The Judge overseeing this case is MARGARET MILLER BERNAL. It takes time to get back up, but we have had renewed waves of lockdowns in the fall and layoffs. And even still, there is the risk of mutations, the continuation of sickness, hospitalizations, and fear will cause stagnation for the reopening concept. I think we will have another risk event that pulls the market down. 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. 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 . Im going to play on my own team and practice. The bear case is that the effects of the shutdowns havent fully been realized yet. Because in addition to unemployed, he can also now call himself whistleblower.. Today, his ambition is to own a NFL team. Fri, Feb 12. Im a football player disguised as a portfolio manager. 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. All Rights Reserved. Powered and implemented by FactSet Digital Solutions. 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 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. Hercules CEO, CNBC Pundit 'In Hiding' Amid Securities Fraud Charges James Arthur McDonald Jr. appears to be on the lam as he faces as much as 20 years in prison for allegedly defrauding. 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 . NE Atlanta, GA 30326 *by appointment only. This material may not be published, broadcast, rewritten, [Like this article? In a parallel action, the United States Attorney's Office for the Central District of California announced criminal charges against McDonald. 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. McDonald also allegedly raised over $3.5 million for securities trades through . 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. 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. Because bulls point to loads of liquidity, low rates, and solid earnings and guidance. 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 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. Youre describing a giant disconnect between the markets and small businesses that are in a world of hurt. 165 Broadway 23rd Floor New York City NY, 10006 *by appointment only. 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. And when we look at unemployment now, we say its recovered, but the recovery hasnt brought sufficient growth. These filings are called "notice filings". I would be thrilled to buy the Washington football team because I grew up in Chevy Chase, Maryland. To send us an e-mail, simply complete and submit the online form below. 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." Registered in England and Wales. 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.

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