Got a confidential news tip? The economy is slowly reopening and more vaccines are reaching people. Your email address will not be published. Scott Gamm Arcadia Man Charged with Securities Fraud for Stealing Client Funds and Concealing His Investment Firms Massive Financial Losses. I think the phenomena is an anomaly like virtually every pocket of life were in right now. 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. McDonald will also be speaking at The Executives Club of Chicagos 2021 Annual Economic Outlook virtual event on January 14. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. Mutual Fund and ETF data provided by Refinitiv Lipper. Do you still have a 15,000 target on the Dow? Do you have your eyes on any team per se? "-Sonn Law Group Client. In 2005 he purchased the Houston Wolverines (the Texas Wolverines today), a semi-pro football team, and played for 13 years. 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. Quotes displayed in real-time or delayed by at least 15 minutes. Please note: We are unable to take cases with losses of less than $50,000. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. The S&P 500 is trading at about 23 times projected forward earnings. Unless you are aiming for simultaneous knocks on the door from the FBI, SEC and CFTC. It means that sentiment and greed can move a market in the face of asking for fundamental justification in the short term. 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? Market data provided by Factset. In a parallel action, the United States Attorney's Office for the Central District of California announced criminal charges against McDonald. This field is for validation purposes and should be left unchanged. Describe the ideal client profile. GESCO combines international experience and quality standards with modern technologies and opportunities and local professional service. 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. No, Brent Kovars mother didnt have an artificial intelligence supercomputer in her basement, the SEC says. Get this delivered to your inbox, and more info about our products and services. 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 . Actually, he didnt just assume it: He bet his clients money rather heavily on it, and lost them upwards of $40 million doing so. But stimulating growth is impossible if the economy isnt open. 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 Any reference to past cases or successes made herein should not be construed as a guarantee of any future outcome. 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. Legal Statement. Lines and paragraphs break automatically. It wasn't immediately clear whether he had an attorney who could speak on his behalf. He earned a bachelor's degree in economics from Harvard University. Hercules Investments chief investment officer James McDonald used to be a familiar face on CNBC, pontificating about market matters as an expert thereon. 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. My intention when I buy my team is to get on the practice field and hit those guys! 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. The complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against McDonald and Hercules. (Jun 1986 - Sep 2016) 101 Royal Park Dr. Oakland Park, FL 33309. 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. 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. Im going to play on my own team and practice. 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. The Securities and Exchange Commission today announced the filing of a civil injunctive action against James Arthur McDonald, Jr. and his SEC-registered investment adviser firm, Hercules Investments, LLC in connection with two fraudulent securities offerings. The PE has risen by about 50% from a year ago. 2023 FOX News Network, LLC. Its clock-striking-midnight dealmaking time at the Justice Department. But I think that the market will rebound and potentially finish the year slightly higher. And I think that that will trigger selling of portfolios that have had extensive gains, particularly in the past six months. With interest rates so low, what do you make of the TINA argument, which asserts there is no alternative to stocks? Each client and each clients case is unique, and no result or outcome is or can ever be guaranteed. RIA Intel is part of the Euromoney Institutional Investor PLC group. 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. 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. This field is for validation purposes and should be left unchanged. "I spoke to Mr Sonn on a complex legal matter. Employment levels have increased slightly, but we are artificially keeping our economy going with stimulus checks and obviously all of the Feds actions. 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. Thats why our ticker is NFLHX. 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. Its two and 20 (fee arrangement) ensures that our portfolio management is in alignment with the profit objectives of the client. from 8 AM - 9 PM ET. Also on Wednesday, the U.S. Securities and Exchange Commission filed a civil complaint charging McDonald and Hercules with violations of federal securities law. The bear case is that the effects of the shutdowns havent fully been realized yet. 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. 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. 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 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. By Greg Bartalos February 05, 2021 James McDonald (Courtesy photo) One hundred million viewers are expected to tune into Sunday's Super Bowl between the defending champion Kansas City Chiefs and Tampa . I think we will have another risk event that pulls the market down. In a portfolio with a beta of one, one would enjoy virtually 100% downside protection with an allocation of 15% to the Hercules fund. 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. In this episode, David Armstrong, editor-in-chief at WealthManagement.com, talks to Hercules Investments James McDonald. Powered and implemented by FactSet Digital Solutions. I really enjoyed speaking with you and appreciate you taking the time. 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. How does it factor into your life? In the S&P 500, you have mega cap tech Covid winners like Microsoft, Amazon, etc. My dream is to buy an NFL team. The breadth of risk is extremely wide. When typing in this field, a list of search results will appear and be automatically updated as you type. Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. 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.. Top Hercules Investments Employees James McDonald Chief Executive Officer. 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. 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.. - Strategies to profit from a stock market decline More on that later. Quotes displayed in real-time or delayed by at least 15 minutes. 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. 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. 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. Local professional service james mcdonald hercules investments wife Mr Sonn on a complex legal matter ( fee arrangement ) that! Armstrong, editor-in-chief at WealthManagement.com, talks to Hercules Investments James McDonald used to be a face. 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