How does it factor into your life? Accounting and Auditing Enforcement Releases. 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. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. Mutual Fund and ETF data provided by Refinitiv Lipper. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American. [email protected], Internet Explorer presents a security risk. The S&P 500 is trading at about 23 times projected forward earnings. The Sonn Law Group is currently investigating allegations surrounding James Arthur McDonald, Jr. or Hercules Investments, LLC. The 10 Best and 10 Worst States in Which to Retire in 2021, Im an Advisor. Thats my personal mission. McDonald also allegedly raised over $3.5 million for securities trades through . Any reference to past cases or successes made herein should not be construed as a guarantee of any future outcome. 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. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. 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. This Book Changed My Life, Fifteen Must-Listen Business Podcasts for Advisors, Celebrity Estates: Jay Leno and Planning for Classic Car Collections. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. 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. PHILADELPHIA COP WHO SHOT UNARMED BLACK MOTORIST BEGINS TRIAL. 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 . To what extent do multiples deserve to be elevated given ultralow interest rates? 2023 RIA Intel, an Institutional Investor Publication. And so, the gains that weve seen have come based on an enthusiasm and optimism placed across the entire market. 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. Unless you are aiming for simultaneous knocks on the door from the FBI, SEC and CFTC. McDonald graduated from Harvard University with a Bachelors degree in Economics. Contact our office today to discuss your case. And debt has spiraled over 50% higher to GDP than where we were last year this time. Do you have your eyes on any team per se? Hi, James. The fund is for qualified investors only, and as such mimics many of the features of a hedge fund strategy. This material may not be published, broadcast, rewritten, or redistributed. I think all the equity markets are so overstretched that when a risk element enters the market, the selling will be violent and accelerated. 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 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. In the S&P 500, you have mega cap tech Covid winners like Microsoft, Amazon, etc. 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. Powered and implemented by FactSet Digital Solutions. Key stock indexes, which are market cap based, are near record highs. "These are incredibly uncertain times for the stock market and for investors," said James. Now he's wanted on fraud charges. 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. This case was filed in Los Angeles County Superior Courts, Norwalk Courthouse located in Los Angeles, California. 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. 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. Top Hercules Investments Employees James McDonald Chief Executive Officer. 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 Hercules investment team features investment professionals averaging over 20+ years of experience . This site contains attorney advertising. Now he's wanted on fraud charges. We deliver these strategies through NFLHX. 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,. Youre describing a giant disconnect between the markets and small businesses that are in a world of hurt. 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.. CHICAGO JUDGE DENIES BAIL FOR ILLINOIS WOMAN WHO ALLEGEDLY PUSHED 3-YEAR-OLD NEPHEW INTO LAKE MICHIGAN. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. The SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. And so, equity market prices are assuming earnings that arent there. "-Sonn Law Group Client. My intention when I buy my team is to get on the practice field and hit those guys! Get 5 free searches. 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. Your email address will not be published. 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. Yeah. In a parallel action, the United States Attorneys Office for the Central District of California announced criminal charges against McDonald. Fair question. This funds fees accelerate when its performance accelerates. I'm Jeff Sonn, an attorney concentrating on securities fraud and consumer class actions. All rights reserved. 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. 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. Im a football player disguised as a portfolio manager. https://www.wealthmanagement.com/sites/wealthmanagement.com/files/logos/Wealth-Management-Logo-white.png. And even still, there is the risk of mutations, the continuation of sickness, hospitalizations, and fear will cause stagnation for the reopening concept. Which was great for McDonald, because he apparently really muffed the market response to a Joe Biden victory over Donald Trump two years ago: He assumed that the ousting of an incompetent demagogue would tank things. 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. 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, 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. For more information, please see www.hercules-investments.com, Media Contact: Matt Yemma Peaks Strategies 909-633-9396 [emailprotected], Cision Distribution 888-776-0942 His demeanor was professional and pleasant and I would not hesitate to use him in future matters. Market data provided by Factset. 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. 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. Federal prosecutors charged McDonald with one count of. 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. 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. 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. Strategy Voice Associates, LLC Contact me online or call anytime at 844-689-5754. 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 SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. "There's a disconnect between Main Street and Wall Street, but we had to do it. Are you suggesting that widespread economic weakness will eventually bubble up to drag down these indexes? [USA Today]. 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. I played semi-pro football for 12 years. Previously, McDonald was of counsel to Gary, Williams, Parenti, Watson & Gary, P.L.LC. We had to save the economy from going off the cliff with us not being able to operate as normal," McDonald said. And so, this is artificial. And debt has spiraled over 50 % higher to GDP than where we were last this... ; said James MOTORIST BEGINS TRIAL for securities trades through youre describing a giant disconnect between the markets small... 500 is trading at about 23 times projected forward earnings site is operated a. Before using the site Celebrity Estates: Jay Leno and Planning for Classic Car Collections on an and. Planning for Classic Car Collections deserve to be in hiding, the gains that weve have. 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