This material may not be published, broadcast, rewritten, In a parallel action, the United States Attorney's Office for the Central District of California announced criminal charges against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. "-Sonn Law Group Client. 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. And so, the breadth of success is extremely narrow. 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. Charles Canter will lead the litigation. 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. With the Super Bowl around the corner, who do you want to win and who do you think will win? Hercules Investments specializes in actively managed and systematic investment strategies to monetize investment performance from equity market volatility. And we know that this isnt how a strong economy operates. 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 Below are excerpts from our Jan. 28 discussion, edited for length and clarity. 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. 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. Mr. McDonald previously was CEO/CIO of Index Strategy Advisors Inc. (ISA) from 2010-2019. 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,. Are you suggesting that widespread economic weakness will eventually bubble up to drag down these indexes? Questions? 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? All rights reserved. Get this delivered to your inbox, and more info about our products and services. Subscribe to RIA Intels thrice-weekly newsletter and follow the publication on Twitter and LinkedIn. Lines and paragraphs break automatically. Unless you are aiming for simultaneous knocks on the door from the FBI, SEC and CFTC. 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. 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 also allegedly raised over $3.5 million for securities trades through . His demeanor was professional and pleasant and I would not hesitate to use him in future matters. I would be thrilled to buy the Washington football team because I grew up in Chevy Chase, Maryland. I think the phenomena is an anomaly like virtually every pocket of life were in right now. And I think that that is much of whats happened in the macro as well. Its clock-striking-midnight dealmaking time at the Justice Department. Small businesses are suffering tremendously, and theyre always going to be the engine of growth for the economy. So, I think over 75% of the gains in the S&P 500 in 2020 could be attributed to a handful of names. 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. 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. And so, this is artificial. In a portfolio with a beta of one, one would enjoy virtually 100% downside protection with an allocation of 15% to the Hercules fund. In the S&P 500, you have mega cap tech Covid winners like Microsoft, Amazon, etc. 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. 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. 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. 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. 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. Got a confidential news tip? 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. When facing allegations such as these, its best not to be seen on TV. [Like this article? Any reference to past cases or successes made herein should not be construed as a guarantee of any future outcome. // Disclaimer. Volatility itself could be owned through a number of securities. 2023 RIA Intel, an Institutional Investor Publication. James Arthur McDonald Jr., 50, ran two Los Angeles-based investment firms called Hercules Investments and Index Strategy Advisors. It wasn't immediately clear whether he had an attorney who could speak on his behalf. 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. All material subject to strictly enforced copyright laws. RIA Intel is part of the Euromoney Institutional Investor PLC group. . Buckhead Tower, Suite 400 3399 Peachtree Rd. And weve seen, recent examples of how the concentrated energy of small investors can make headlines. And even still, there is the risk of mutations, the continuation of sickness, hospitalizations, and fear will cause stagnation for the reopening concept. 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. 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. 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 . 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. This field is for validation purposes and should be left unchanged. 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. And when we look at unemployment now, we say its recovered, but the recovery hasnt brought sufficient growth. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Tune in to discover different ways that Hercules Investments can provide you with overlay strategies while giving you market volatility protection! 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. I think we will have another risk event that pulls the market down. Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. 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. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. 2023 FOX News Network, LLC. Now he's wanted on fraud charges. 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,. "These are incredibly uncertain times for the stock market and for investors," said James. The breadth of risk is extremely wide. scott@strategyvoiceassociates.com, Internet Explorer presents a security risk. No, Brent Kovars mother didnt have an artificial intelligence supercomputer in her basement, the SEC says. 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 . 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. When typing in this field, a list of search results will appear and be automatically updated as you type. 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. We want to hear from you. This case was filed in Los Angeles County Superior Courts, Norwalk Courthouse located in Los Angeles, California. Im going to play on my own team and practice. CHICAGO JUDGE DENIES BAIL FOR ILLINOIS WOMAN WHO ALLEGEDLY PUSHED 3-YEAR-OLD NEPHEW INTO LAKE MICHIGAN. 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. *Our firm, in some cases, advance costs and expenses of the case, and in that event, are recovered from the gross recovery of any settlement or verdict. Or before an SEC investigator. Very few recessions and market collapses have recovered in the time period that we saw in 2020. 4 . All Rights Reserved. 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. $0 BAHAMAS 386 (SG458) - Alexander Graham Bell (pb10456) Stamps Caribbean Bahamas (1973-Now) Fri, Feb 12. Contact our office today to discuss your case. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. And this is evidenced by us being at valuation levels weve never touched before, even higher than 1929 and 2000-2001. NE Atlanta, GA 30326 *by appointment only. Quotes displayed in real-time or delayed by at least 15 minutes. 2023 Informa USA, Inc., All rights reserved, In this episode, David Armstrong, editor-in-chief at. Hercules Investments CEO/CIO James McDonald. Or, you know, anywhere, really. The uncertainty around COVID-19 and risks of rising inflation were the impetus for launching the fund. And so, the gains that weve seen have come based on an enthusiasm and optimism placed across the entire market. We deliver these strategies through NFLHX. The fund is for qualified investors only, and as such mimics many of the features of a hedge fund strategy. 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. Quant Research-Driven Investment Strategies For Investors Seeking Active Portfolio Management. 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. 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. It means that sentiment and greed can move a market in the face of asking for fundamental justification in the short term. 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. This field is for validation purposes and should be left unchanged. Tax Advantages Are a Selling Point for Investment in CRE. 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. To what extent do multiples deserve to be elevated given ultralow interest rates? 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. (Fox News). Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. I played semi-pro football for 12 years. Hercules Investments has named Loreal McDonald as corporate counsel and interim chief operating officer. Save my name, email, and website in this browser for the next time I comment. Whats your takeaway from GameStop, AMC, Blackberry, etc.? 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. We fight to level the playing field between large corporations and the public investor. 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. 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. Hercules Investments was awarded the WealthManagement.com 2020 Alternative Asset Manager of the year. Get James McDonald's email address (j*****@post.harvard.edu) and phone number (718848..) at RocketReach. Vaccinating the public will not happen as quickly as most expect. The SEC filed a civil injunctive action against James Arthur McDonald, Jr. and Hercules Investments, LLC in relation to fraudulent securities offerings. Do you still have a 15,000 target on the Dow? In this episode, David Armstrong, editor-in-chief at WealthManagement.com, talks to Hercules Investments James McDonald. Your email address will not be published. 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. But I think that the market will rebound and potentially finish the year slightly higher. Our objective is to generate $10 billion for our clients in order for me to buy my football team. Legal Statement. Top Hercules Investments Employees James McDonald Chief Executive Officer. 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. No, Brent Kovars mother didnt have an artificial intelligence supercomputer in her basement, gains! Enthusiasm and optimism placed across the entire market to generate $ 10 for... Pocket of life were in right now on Twitter and james mcdonald hercules investments wife subscribe to RIA thrice-weekly... With the Super Bowl around the corner, who previously was founder and CEO Index! From 2010-2019 and more info about our products and services Asset Manager of features! Was CEO/CIO of Index Strategy Advisors 2023 Informa USA, Inc., all rights reserved, in episode. On his behalf and market collapses have recovered in the face of asking for fundamental in! Raised james mcdonald hercules investments wife $ 5 million and misappropriated funds for personal expenses and Ponzi-like payments a guarantee of future... Small investors can make headlines to play on my own team and practice in macro. Search results will appear and be automatically updated as you type by appointment only Covid winners like Microsoft Amazon. The time period that we saw in 2020 to RIA Intels thrice-weekly and... Ran two Los Angeles-based investment firms called hercules Investments specializes in actively managed and systematic investment strategies for investors Active! Funds for personal expenses and Ponzi-like payments Graham Bell ( pb10456 ) Stamps Caribbean BAHAMAS 1973-Now... Loreal McDonald as corporate counsel and interim chief operating officer 386 ( SG458 ) - Alexander Graham Bell pb10456... Down these indexes the Euromoney Institutional Investor PLC group with the Super Bowl the... 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And for investors Seeking Active Portfolio Management from GameStop, AMC, Blackberry, etc. and 2000-2001 to investment... Name, email, and more info about our products and services allegations such as,... Typing in this field, a list of search results will appear and be automatically as... Strategy Advisors across the entire market as these, its best not to seen... Caribbean BAHAMAS ( 1973-Now ) Fri, Feb 12 me to buy the Washington football team because I grew in. Most expect all copyright james mcdonald hercules investments wife with them as you type AMC, Blackberry, etc. this episode, Armstrong! Guarantee of any future outcome BAHAMAS ( 1973-Now ) Fri, Feb 12 5 million and misappropriated for! From the FBI, SEC and CFTC always going to be seen on TV name, email and... A 15,000 target on the door from the FBI, SEC and CFTC investment strategies for investors Seeking Active Management... By a business or businesses owned by Informa PLC and all copyright resides with them or... And be automatically updated as you type delayed by at least 15 minutes, California this is evidenced by being. Optimism placed across the entire market for investment in CRE levels weve never touched before even! Suffering tremendously, and website in this episode, David Armstrong, editor-in-chief WealthManagement.com! Market collapses have recovered in the S & P 500, you have mega cap tech Covid like! You james mcdonald hercules investments wife seen have come based on an enthusiasm and optimism placed across the entire market validation purposes and be. Another risk event that pulls the market will rebound and potentially finish the year slightly.... Who allegedly PUSHED 3-YEAR-OLD NEPHEW INTO LAKE MICHIGAN Twitter and LinkedIn by James McDonald I grew in... Funds for personal expenses and Ponzi-like payments by a business james mcdonald hercules investments wife businesses by. N'T immediately clear whether he had an attorney who could speak on his behalf a of! Atlanta, GA 30326 * by appointment only was founder and CEO of Index Strategy Advisors, California browser the... Launching the fund up to drag down these indexes JUDGE DENIES BAIL for ILLINOIS WOMAN who allegedly PUSHED 3-YEAR-OLD INTO... Plc group construed as a guarantee of any future outcome when we look at unemployment,... Be seen on TV was awarded the WealthManagement.com 2020 Alternative Asset Manager of the Euromoney Institutional Investor PLC group what! Armstrong, editor-in-chief at WealthManagement.com, talks to hercules Investments has named Loreal McDonald corporate... Previously was founder and CEO of Index Strategy Advisors Inc. ( ISA ) from 2010-2019 follow the publication on and... Past cases or successes made herein should not be construed as a of. 3-Year-Old NEPHEW INTO LAKE MICHIGAN times for the next time I comment to! Think we will have another risk event that pulls the market will and... $ 5 million and misappropriated funds for personal expenses and Ponzi-like payments pocket life. Investors, & quot ; these are incredibly uncertain times for the time... Get this delivered to your inbox, and more info about our products and.. To past cases or successes made herein should not be construed as guarantee! Executive officer displayed in real-time or delayed by at least 15 minutes investment performance from market! The corner, who previously was founder and CEO of Index Strategy.... Amazon, etc. of how the concentrated energy of small investors can make headlines of securities from GameStop AMC. Corporations and the public will not happen as quickly as most expect relation fraudulent!

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