In fairness to James McDonald, television is a much more welcoming venue than an SEC hearing room or courthouse. Contact me online or call anytime at 844-689-5754. 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.. It means that sentiment and greed can move a market in the face of asking for fundamental justification in the short term. And this is evidenced by us being at valuation levels weve never touched before, even higher than 1929 and 2000-2001. from 8 AM - 9 PM ET. I'm Jeff Sonn, an attorney concentrating on securities fraud and consumer class actions. The economy is slowly reopening and more vaccines are reaching people. 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. The S&P 500 is trading at about 23 times projected forward earnings. The complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against McDonald and Hercules. 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. Its not a doomsday picture, but markets are priced right now as if all economic engines are fully up and running. 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. The uncertainty around COVID-19 and risks of rising inflation were the impetus for launching the fund. Mutual Fund and ETF data provided by Refinitiv Lipper. CHICAGO JUDGE DENIES BAIL FOR ILLINOIS WOMAN WHO ALLEGEDLY PUSHED 3-YEAR-OLD NEPHEW INTO LAKE MICHIGAN. Hercules Investments CEO/CIO James McDonald. He appeared as a financial expert on TV. Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. Or before an SEC investigator. // Disclaimer. Absolutely. Hercules offers qualified clients market neutral portfolio management executed primarily through domestic index options. And while recognizing that each investors needs are distinct, on balance what percentage of a portfolio should this comprise? To what extent do multiples deserve to be elevated given ultralow interest rates? The Judge overseeing this case is MARGARET MILLER BERNAL. Legal Statement. Got a confidential news tip? You can reach us by phone at 844-689-5754 or via e-mail. Mr. McDonald previously was CEO/CIO of Index Strategy Advisors Inc. (ISA) from 2010-2019. Lines and paragraphs break automatically. 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. 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 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. To send us an e-mail, simply complete and submit the online form below. However, as markets continue to thrive, our fund will not follow the path of other downside protection strategies, passive only strategies, which fall precipitously in rising market. Data is a real-time snapshot *Data is delayed at least 15 minutes. I really enjoyed speaking with you and appreciate you taking the time. 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. GESCO is a security company operating in various fields and basing on the principle of physical protection. AssetMark CEO Charles Goldman tells RIA Intel that he is focused on acquisitions, helping advisors, and the long term. (Fox News). Or, you know, anywhere, really. And so, the gains that weve seen have come based on an enthusiasm and optimism placed across the entire market. 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? Hercules Investments won a 2020 Wealthies Award for being the top Alternative Asset Manager. McDonald graduated from Harvard University with a Bachelors degree in Economics. Its two and 20 (fee arrangement) ensures that our portfolio management is in alignment with the profit objectives of the client. Number 8860726. I think the phenomena is an anomaly like virtually every pocket of life were in right now. All material subject to strictly enforced copyright laws. 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. Also on Wednesday, the U.S. Securities and Exchange Commission filed a civil complaint charging McDonald and Hercules with violations of federal securities law. This material may not be published, broadcast, rewritten, We fight to level the playing field between large corporations and the public investor. Key stock indexes, which are market cap based, are near record highs. "There's a disconnect between Main Street and Wall Street, but we had to do it. 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. 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. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. 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. [USA Today]. Ryan Thomas Gosling (born November 12, 1980) is a Canadian actor. Its clock-striking-midnight dealmaking time at the Justice Department. 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. Legal Statement. 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. When facing allegations such as these, its best not to be seen on TV. Scott Gamm 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.. 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 . And even still, there is the risk of mutations, the continuation of sickness, hospitalizations, and fear will cause stagnation for the reopening concept. Additionally, McDonald raised $1.5 million through equity investment sales in Hercules business while lying, failing to disclose important facts, and more. On 11/16/2021 HERCULES INVESTMENTS, LLC filed a Contract - Business lawsuit against DANNY MICHAEL CORRAL. Our ability to monetize volatility is exceptional as evidenced by our winning WealthManagement.coms 2020 Wealthies Award as top Alternative Asset Manager. This funds fees accelerate when its performance accelerates. Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. 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? Global Business and Financial News, Stock Quotes, and Market Data and Analysis. The equity markets have behaved puzzlingly well in 2020 with the backdrop of a global pandemic and lots of uncertainty around the evolution of the coronavirus and its impact on small businesses, households, and way of life. Because bulls point to loads of liquidity, low rates, and solid earnings and guidance. - The dangers of too much fiscal and monetary stimulus Then its fine. I think we will retest the previous lows of last March before buying comes back in. Previously, McDonald was of counsel to Gary, Williams, Parenti, Watson & Gary, P.L.LC. 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. 2023 CNBC LLC. 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 will also be speaking at The Executives Club of Chicagos 2021 Annual Economic Outlook virtual event on January 14. James Arthur McDonald Jr., 50, was charged with a single fraud count and could face up to 20 years in prison if convicted, the U.S. attorney's office said in a statement. And when we look at unemployment now, we say its recovered, but the recovery hasnt brought sufficient growth. And debt has spiraled over 50% higher to GDP than where we were last year this time. Tune in to discover different ways that Hercules Investments can provide you with overlay strategies while giving you market volatility protection! *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. 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. 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. Quotes displayed in real-time or delayed by at least 15 minutes. The SEC alleges that McDonald, a former guest commentator on CNBC, raised more than $5.1 million from 23 investors and clients, and misappropriated more than $2.9 million of those funds for personal expenses and Ponzi-like payments to earlier investors. Get 5 free searches. This field is for validation purposes and should be left unchanged. . Youre describing a giant disconnect between the markets and small businesses that are in a world of hurt. But stimulating growth is impossible if the economy isnt open. The SEC's investigation was conducted by David S. Brown, Carol Kim, and Matthew O. Koop and was supervised by Marc J. Blau in the Los Angeles Regional Office. Now, there are a handful of companies that have flourished in the Covid era, but its a handful of companies. Fair question. Thats my personal mission. And so, we had that crash and then the desire and the interest in moving back forward. Powered and implemented by FactSet Digital Solutions. Get this delivered to your inbox, and more info about our products and services. McDonald also allegedly raised over $3.5 million for securities trades through the Index Strategy Advisors Fund and misappropriated half of the funds for personal expenses. 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. Im going to play on my own team and practice. 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. Fox News Flash top headlines are here. NE Atlanta, GA 30326 *by appointment only. 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. Hercules Investments was awarded the WealthManagement.com 2020 Alternative Asset Manager of the year. Our objective is to generate $10 billion for our clients in order for me to buy my football team. 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. And, now that you, the Justice Department and the SEC mention it, a lot of his stories sound a bit hard to believe. Small businesses are suffering tremendously, and theyre always going to be the engine of growth for the economy. 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 . PDF Case Plaintiff Defendant - United States Courts Early life James McDonald was born in Wellhead, Morayshire, in north Scotland on September 23 1840. Our strategies offer downside protection and even potential upside gains with protracted market downturns. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American. 2023 FOX News Network, LLC. 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. I think all the equity markets are so overstretched that when a risk element enters the market, the selling will be violent and accelerated. 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. In this episode, David Armstrong, editor-in-chief at WealthManagement.com, talks to Hercules Investments James McDonald. For a free consultation, please call us now at 866-827-3202or complete ourcontact form. Furthermore, index options provide compelling risk/return profiles with substantially less risk and volatility than their stock option counterparts.". Recent filings for HERCULES INVESTMENTS LLC 28 Jun 2019 SI-COMPLETE view 8 Jun 2019 REGISTRATION view That would be a doubling from the low. 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. 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 Powered and implemented by FactSet Digital Solutions. 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 . And what were seeing now is bull market enthusiasm and all types of signs of bubbles in asset prices. Address of QUALITY servIce and relIable guarding, We are constantly workIng and developng to mprove our qualIty of servce. The attorneys at ChapmanAlbin are licensed to practice law in Ohio and Michigan. McDonald also allegedly raised over $3.5 million for securities trades through . 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. The bear case is that the effects of the shutdowns havent fully been realized yet. One hundred million viewers are expected to tune into Sundays Super Bowl between the defending champion Kansas City Chiefs and Tampa Bay Buccaneers. "I spoke to Mr Sonn on a complex legal matter. In a parallel action, the United States Attorneys Office for the Central District of California announced criminal charges against McDonald. "These are incredibly uncertain times for the stock market and for investors," said James. This site contains attorney advertising. And I think that that is much of whats happened in the macro as well. Any reference to past cases or successes made herein should not be construed as a guarantee of any future outcome. And so, the breadth of success is extremely narrow. In the S&P 500, you have mega cap tech Covid winners like Microsoft, Amazon, etc. GESCO is a security company operating in various fields and basing on the principle of physical protection. Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. 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. In 2005 he purchased the Houston Wolverines (the Texas Wolverines today), a semi-pro football team, and played for 13 years. The case status is Pending - Other Pending. 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. All rights reserved. Do you still have a 15,000 target on the Dow? The Sonn Law Group is currently investigating allegations surrounding James Arthur McDonald, Jr. or Hercules Investments, LLC. 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,. James McDonald, CEO of Hercules Investments, is using equity index options to profit from an expected surge in volatility and market swings. 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? Its like a freight train that cant come to an exact halt without a crash. McDonald, who lived in the Los Angeles suburb of Arcadia, is believed to be in hiding, the statement said. Employment levels have increased slightly, but we are artificially keeping our economy going with stimulus checks and obviously all of the Feds actions. All rights reserved. GESCO combines international experience and quality standards with modern technologies and opportunities and local professional service. Meanwhile, sophisticated investors including institutional firms, insurance companies, and ultra-high net worth individuals have sought higher returns during growth phases and greater protection during recessionary phases by utilizing derivatives, particularly options," said James McDonald, who also serves as the firm's Chief Investment Officer. 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. 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." All Rights Reserved. 2023 FOX News Network, LLC. Please note: We are unable to take cases with losses of less than $50,000. There are hundreds of companies in the small cap space that dont have the cash to pay their debt. PHILADELPHIA COP WHO SHOT UNARMED BLACK MOTORIST BEGINS TRIAL. It is a risk-hedged growth mutual fund that captures market appreciation and has the potential for great gains when markets fall. Volatility itself could be owned through a number of securities. 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. Fri, Feb 12. 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. The Hercules Fund aims to generate positive returns during times of rising and falling stock markets. More on that later. 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 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. 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. 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. He was direct and asked all the questions that were relevant and provided me with very thoughtful feedback and some useful contacts. McDonald graduated from Harvard University with a Bachelor's degree in Economics. The Hercules investment team features investment professionals averaging over 20+ years of experience . 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. 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. I played semi-pro football for 12 years. 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. 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. The potential for growth is there, but the conditions for growth are not because we are artificially providing income. The 10 Best and 10 Worst States in Which to Retire in 2021, Im an Advisor. Hercules Investments' James McDonald explains the different risk-related techniques advisors can use to keep clients comfortable with their portfolios. Because in addition to unemployed, he can also now call himself whistleblower.. 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. The PE has risen by about 50% from a year ago. We want to hear from you. It wasn't immediately clear whether he had an attorney who could speak on his behalf. When typing in this field, a list of search results will appear and be automatically updated as you type. My dream is to buy an NFL team. - Strategies to profit from a stock market decline Hercules Investments specializes in actively managed and systematic investment strategies to monetize investment performance from equity market volatility. Check out what's clicking on Foxnews.com. Registered in England and Wales. Charles Canter will lead the litigation. My intention when I buy my team is to get on the practice field and hit those guys! 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. Yes. "In our view, index options are a far more efficient and low- cost way to implement growth strategies for client portfolios compared with using funds or individual stocks. Of course, like most of the people brought on by CNBC to explain how the market will react to certain things (like talking heads on any subject on any 24-hour news channel), being generally right about those things was not a booking requirement. 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. Quotes displayed in real-time or delayed by at least 15 minutes. 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. scott@strategyvoiceassociates.com, Internet Explorer presents a security risk. 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. I would be thrilled to buy the Washington football team because I grew up in Chevy Chase, Maryland. We deliver these strategies through NFLHX. Questions? 4 . Buckhead Tower, Suite 400 3399 Peachtree Rd. Wealth Management is part of the Informa Connect Division of Informa PLC. 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. In summary, NFLHX provides direct access to risk hedged growth adding a layer of insurance to a portfolio that has appreciated with the market. Unless you are aiming for simultaneous knocks on the door from the FBI, SEC and CFTC. https://www.wealthmanagement.com/sites/wealthmanagement.com/files/logos/Wealth-Management-Logo-white.png. The Fund seeks to implement very short-term long and short positions in call and put options on the main US stock . Hercules Investments was founded by James McDonald, who previously was founder and CEO of Index Strategy Advisors. A conversation about economies, markets, wage inequality, Congress, crypto, and more. Event on January 14 describing a giant disconnect between the defending champion Kansas City Chiefs and Tampa Bay Buccaneers of! Its recovered, but the conditions for growth is impossible if the economy is slowly reopening and more vaccines reaching! Should not be construed as a guarantee of any future outcome stimulus Then its fine going with stimulus checks obviously! Results will appear and be automatically updated as you type small cap space that dont have cash. Phenomena is an anomaly like virtually every pocket of life were in right now the economy isnt open are... Practice field and hit those guys Wall Street, but markets are priced right now,... 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Congress, crypto, and more a doomsday picture, but we are constantly workIng developng... Miller BERNAL these indexes is impossible if the economy isnt open attorney 's for...