Hercules' portfolios are designed to achieve aggressive gains whether markets are rising or falling. My dream is to buy an NFL team. The potential for growth is there, but the conditions for growth are not because we are artificially providing income. Each client and each clients case is unique, and no result or outcome is or can ever be guaranteed. When typing in this field, a list of search results will appear and be automatically updated as you type. 4 . Its an all-weather strategy. You can reach us by phone at 844-689-5754 or via e-mail. "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 Hercules Fund aims to generate positive returns during times of rising and falling stock markets. Check out what's clicking on Foxnews.com. 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. Then its fine. 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 the Super Bowl around the corner, who do you want to win and who do you think will win? McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. 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. 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. 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. Address of QUALITY servIce and relIable guarding, We are constantly workIng and developng to mprove our qualIty of servce. Hi, James. But I think that the market will rebound and potentially finish the year slightly higher. 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 . Describe the ideal client profile. 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. NE Atlanta, GA 30326 *by appointment only. Additionally, McDonald raised $1.5 million through equity investment sales in Hercules business while lying, failing to disclose important facts, and more. A conversation about economies, markets, wage inequality, Congress, crypto, and more. "-Sonn Law Group Client. McDonald, who lived in the Los Angeles suburb of Arcadia, is believed to be in hiding, the statement said. 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. 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. It means that sentiment and greed can move a market in the face of asking for fundamental justification in the short term. GESCO combines international experience and quality standards with modern technologies and opportunities and local professional service. 2023 Informa USA, Inc., All rights reserved, In this episode, David Armstrong, editor-in-chief at. 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. South Ozone Park, New York, United States View. 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. - Strategies to profit from a stock market decline When facing allegations such as these, its best not to be seen on TV. Lets wrap up with football. from 8 AM - 9 PM ET. How Should HNW Investors Think About Them? We do this because we invest in index options, which give us the flexibility to purchase contracts that rise in value when markets fall and to own very misunderstood and often overlooked asset class volatility. 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,. Below are the states with which the firm you selected makes its notice filings. My dream was always to play in the NFL and thats going to be my ticket. And when we look at unemployment now, we say its recovered, but the recovery hasnt brought sufficient growth. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. I played semi-pro football for 12 years. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. Are you suggesting that widespread economic weakness will eventually bubble up to drag down these indexes? The Judge overseeing this case is MARGARET MILLER BERNAL. He last appeared on the network in July 2021. 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,. 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. James McDonald, CEO of Hercules Investments, is using equity index options to profit from an expected surge in volatility and market swings. And so, we had that crash and then the desire and the interest in moving back forward. Accounting and Auditing Enforcement Releases. 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 . This funds fees accelerate when its performance accelerates. Vaccinating the public will not happen as quickly as most expect. Hercules Investments was awarded the WealthManagement.com 2020 Alternative Asset Manager of the year. 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 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. Our employees and their family members enjoyed a wonderful time together this morning at PureTrack in Anaheim, CA! Hercules applies quantitative research to design and actively manage portfolios for investors seeking maximum growth during up or down-market cycles. Fox News Flash top headlines for September 22. 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. And what were seeing now is bull market enthusiasm and all types of signs of bubbles in asset prices. Hercules offers qualified clients market neutral portfolio management executed primarily through domestic index options. *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. Sign up for free newsletters and get more CNBC delivered to your inbox. Contact our office today to discuss your case. The Sonn Law Group is currently investigating allegations surrounding James Arthur McDonald, Jr. or Hercules Investments, LLC. 2023 FOX News Network, LLC. 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. Its clock-striking-midnight dealmaking time at the Justice Department. The complaint also alleges that McDonald commingled the investor funds with Herculess assets and his personal assets, and used $440,000 of those funds for personal expenses, including to pay his personal credit card bills. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. In fairness to James McDonald, television is a much more welcoming venue than an SEC hearing room or courthouse. Yes. Strategy Voice Associates, LLC All Rights Reserved. This Book Changed My Life, Fifteen Must-Listen Business Podcasts for Advisors, Celebrity Estates: Jay Leno and Planning for Classic Car Collections. 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. Our objective is to generate $10 billion for our clients in order for me to buy my football team. 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. GESCO is a security company operating in various fields and basing on the principle of physical protection. What the Fed did was to protect the economy from going into the abyss. In a parallel action, the United States Attorneys Office for the Central District of California announced criminal charges against McDonald. When we perform well for the client, we perform well for ourselves. There are hundreds of companies in the small cap space that dont have the cash to pay their debt. Charles Canter will lead the litigation. Your email address will not be published. "I spoke to Mr Sonn on a complex legal matter. 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 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. 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. Mutual Fund and ETF data provided by Refinitiv Lipper. So, I think over 75% of the gains in the S&P 500 in 2020 could be attributed to a handful of names. [Like this article? And so, this is artificial. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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. 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. For a free consultation, please call us now at 866-827-3202or complete ourcontact form. Hercules Investments' James McDonald explains the different risk-related techniques advisors can use to keep clients comfortable with their portfolios. All rights reserved. To what extent do multiples deserve to be elevated given ultralow interest rates? Or before an SEC investigator. A Division of NBCUniversal. 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. 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. This material may not be published, broadcast, rewritten, or redistributed. 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. To send us an e-mail, simply complete and submit the online form below. Federal prosecutors charged McDonald with one count of. 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? Previously, McDonald was of counsel to Gary, Williams, Parenti, Watson & Gary, P.L.LC. Subscribe to RIA Intels thrice-weekly newsletter and follow the publication on Twitter and LinkedIn. 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. 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. More on that later. I'm Jeff Sonn, an attorney concentrating on securities fraud and consumer class actions. PHILADELPHIA COP WHO SHOT UNARMED BLACK MOTORIST BEGINS TRIAL. Whats the bear case predicated on? Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. 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. And debt has spiraled over 50% higher to GDP than where we were last year this 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. James Arthur McDonald Jr., 50, was charged with one count of fraud for bilking clients out of millions of dollars on Sept. 21, 2022. 2023 CNBC LLC. It is a risk-hedged growth mutual fund that captures market appreciation and has the potential for great gains when markets fall. 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. He appeared as a financial expert on TV. We want to hear from you. 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.. The actual profits that have been generated and the guidance that has increased are based on a small section of the market. I think the phenomena is an anomaly like virtually every pocket of life were in right now. And weve seen, recent examples of how the concentrated energy of small investors can make headlines. 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. 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 . It wasn't immediately clear whether he had an attorney who could speak on his behalf. 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. For more information, please see www.hercules-investments.com, Media Contact: Matt Yemma Peaks Strategies 909-633-9396 [emailprotected], Cision Distribution 888-776-0942 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. If you or your loved one experienced investment losses, we are here to help. Registered in England and Wales. 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 In this virtual event, McDonald shares: - Why the markets are too optimistic about the Covid-19 vaccine This field is for validation purposes and should be left unchanged. . What should advisors know about your firm and how you can help them? 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: . Hercules Investments chief investment officer James McDonald used to be a familiar face on CNBC, pontificating about market matters as an expert thereon. 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. 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. And this is evidenced by us being at valuation levels weve never touched before, even higher than 1929 and 2000-2001. 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. 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. Buckhead Tower, Suite 400 3399 Peachtree Rd. - 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. And while recognizing that each investors needs are distinct, on balance what percentage of a portfolio should this comprise? Im going to play on my own team and practice. So, I got to root for Tom Brady because any 40-plus football player is one I admire. McDonald graduated from Harvard University with a Bachelor's degree in Economics. Powered and implemented by FactSet Digital Solutions. Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. Contact me online or call anytime at 844-689-5754 SEC Charges James Arthur McDonald, Jr. and His SEC-Registered Investment Adviser Firm, Hercules Investments, LLC with Offering Fraudulent Securities Sonn Law Staff Oct 05, 2022 Posted in Investment Loss Investigations # James Arthur McDonald Jr. Market data provided by Factset. Web page addresses and e-mail addresses turn into links automatically.
Peter Thomson Ent,
Skyrim Red Scar Cavern Location,
Letter From Po Box 27503 Raleigh, Nc 27611,
Articles J