";s:4:"text";s:17064:" 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. Your email address will not be published. GESCO combines international experience and quality standards with modern technologies and opportunities and local professional service. Now, there are a handful of companies that have flourished in the Covid era, but its a handful of companies. 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." 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. The bear case is that the effects of the shutdowns havent fully been realized yet. 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. Yeah. McDonald will also be speaking at The Executives Club of Chicagos 2021 Annual Economic Outlook virtual event on January 14. 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.. And, also, relatedly and with the prospect of decades in prison attach, conspiracy and fraud. More on that later. Yes. James Arthur McDonald Jr., 50, was charged with one count of fraud for bilking clients out of millions of dollars on Sept. 21, 2022. 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. But stimulating growth is impossible if the economy isnt open. A CNBC spokesperson told USA TODAY the network no longer allowed McDonald on the air as soon it found out he was under investigation. 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. With the Super Bowl around the corner, who do you want to win and who do you think will win? He was direct and asked all the questions that were relevant and provided me with very thoughtful feedback and some useful contacts. - Strategies to profit from a stock market decline When we perform well for the client, we perform well for ourselves. But I think that the market will rebound and potentially finish the year slightly higher. Greg Bartalos (@gregorianchance) is editor of New York City-based RIA Intel. 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. 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 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. 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. 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. Do you still have a 15,000 target on the Dow? We deliver these strategies through NFLHX. And, now that you, the Justice Department and the SEC mention it, a lot of his stories sound a bit hard to believe. We represent investors in claims against negligent brokers and brokerage firms. 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. In a parallel action, the United States Attorney's Office for the Central District of California announced criminal charges against McDonald. Describe the ideal client profile. Our ability to monetize volatility is exceptional as evidenced by our winning WealthManagement.coms 2020 Wealthies Award as top Alternative Asset Manager. 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. https://www.wealthmanagement.com/sites/wealthmanagement.com/files/logos/Wealth-Management-Logo-white.png. The ideal client would have a portfolio of stocks that have appreciated with the market and while offering great growth potential is susceptible to a market downturn. I think we will have another risk event that pulls the market down. Hercules Investments was awarded the WealthManagement.com 2020 Alternative Asset Manager of the year. The attorneys at ChapmanAlbin are licensed to practice law in Ohio and Michigan. The uncertainty around COVID-19 and risks of rising inflation were the impetus for launching the fund. 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. Our employees and their family members enjoyed a wonderful time together this morning at PureTrack in Anaheim, CA! Recent filings for HERCULES INVESTMENTS LLC 28 Jun 2019 SI-COMPLETE view 8 Jun 2019 REGISTRATION view And so, if the market falls say 10%, our allocations will potentially offset the losses in the long only portfolio. Thats my personal mission. 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. All material subject to strictly enforced copyright laws. So, I got to root for Tom Brady because any 40-plus football player is one I admire. "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 SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. 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. "These are incredibly uncertain times for the stock market and for investors," said James. I would be thrilled to buy the Washington football team because I grew up in Chevy Chase, Maryland. Lines and paragraphs break automatically. With interest rates so low, what do you make of the TINA argument, which asserts there is no alternative to stocks? 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. Questions? It is a risk-hedged growth mutual fund that captures market appreciation and has the potential for great gains when markets fall. 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. 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. And I think that that is much of whats happened in the macro as well. The Judge overseeing this case is MARGARET MILLER BERNAL. James McDonald from Hercules Investments and James Camp, Eagle Asset Management director of strategic income and managing director of fixed income, discuss the impact of the $1.9 trillion coronavirus relief package to the stock and bond markets. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. These filings are called "notice filings". He appeared as a financial expert on TV. When facing allegations such as these, its best not to be seen on TV. 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,. 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. Buckhead Tower, Suite 400 3399 Peachtree Rd. Mutual Fund and ETF data provided by Refinitiv Lipper. I played semi-pro football for 12 years. The fund is for qualified investors only, and as such mimics many of the features of a hedge fund strategy. 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. Our objective is to generate $10 billion for our clients in order for me to buy my football team. The Hercules investment team features investment professionals averaging over 20+ years of experience . 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. What the Fed did was to protect the economy from going into the abyss. Your email address will not be published. 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. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. It means that sentiment and greed can move a market in the face of asking for fundamental justification in the short term. And when we look at unemployment now, we say its recovered, but the recovery hasnt brought sufficient growth. To send us an e-mail, simply complete and submit the online form below. Key stock indexes, which are market cap based, are near record highs. James McDonald, CEO of Hercules Investments, is using equity index options to profit from an expected surge in volatility and market swings. 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. Tax Advantages Are a Selling Point for Investment in CRE. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Accounting and Auditing Enforcement Releases. For more information, please visit: https://hercules-investments.com/hercules-public/index.html, Media Contact The PE has risen by about 50% from a year ago. How does it factor into your life? 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 . 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 . Whats your takeaway from GameStop, AMC, Blackberry, etc.? 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. 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. 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 actual profits that have been generated and the guidance that has increased are based on a small section of the market. Its clock-striking-midnight dealmaking time at the Justice Department. The complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against McDonald and Hercules. And so, the breadth of success is extremely narrow. Check out what's clicking on Foxnews.com. Required fields are marked *. Market data provided by Factset. Hi, James. Or, you know, anywhere, really. Hercules Investments specializes in actively managed and systematic investment strategies to monetize investment performance from equity market volatility. 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. Because bulls point to loads of liquidity, low rates, and solid earnings and guidance. Each client and each clients case is unique, and no result or outcome is or can ever be guaranteed. 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. Are you suggesting that widespread economic weakness will eventually bubble up to drag down these indexes? Because in addition to unemployed, he can also now call himself whistleblower.. 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. We are able to provide uncorrelated growth, meaning our strategies do not depend on equity markets continuing to rise in order to accomplish gains. Its not a doomsday picture, but markets are priced right now as if all economic engines are fully up and running. He earned a bachelor's degree in economics from Harvard University. Legal Statement. On 11/16/2021 HERCULES INVESTMENTS, LLC filed a Contract - Business lawsuit against DANNY MICHAEL CORRAL. 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. A conversation about economies, markets, wage inequality, Congress, crypto, and more. In fairness to James McDonald, television is a much more welcoming venue than an SEC hearing room or courthouse. Employment levels have increased slightly, but we are artificially keeping our economy going with stimulus checks and obviously all of the Feds actions. For a free consultation, please call us now at 866-827-3202or complete ourcontact form. When typing in this field, a list of search results will appear and be automatically updated as you type. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. 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. 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. In a portfolio with a beta of one, one would enjoy virtually 100% downside protection with an allocation of 15% to the Hercules fund. 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