. 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. Now, there are a handful of companies that have flourished in the Covid era, but its a handful of companies. 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. 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. 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. Now he's wanted on fraud charges. 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. I'm Jeff Sonn, an attorney concentrating on securities fraud and consumer class actions. 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. Unlike hedge funds, however, a mutual fund is accessible to individual investors and their advisors in a very transparent package. For more information, please visit: https://hercules-investments.com/hercules-public/index.html, Media Contact Get this delivered to your inbox, and more info about our products and services. This material may not be published, broadcast, rewritten, I played semi-pro football for 12 years. The SECs complaint charges McDonald 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. 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.. Registered in England and Wales. 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. 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. Because in addition to unemployed, he can also now call himself whistleblower.. Previously, McDonald was of counsel to Gary, Williams, Parenti, Watson & Gary, P.L.LC. "I spoke to Mr Sonn on a complex legal matter. So, I got to root for Tom Brady because any 40-plus football player is one I admire. Buckhead Tower, Suite 400 3399 Peachtree Rd. 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. Im a football player disguised as a portfolio manager. Its not a doomsday picture, but markets are priced right now as if all economic engines are fully up and running. A Division of NBCUniversal. Hercules applies quantitative research to design and actively manage portfolios for investors seeking maximum growth during up or down-market cycles. And this is evidenced by us being at valuation levels weve never touched before, even higher than 1929 and 2000-2001. When we perform well for the client, we perform well for ourselves. The case status is Pending - Other Pending. Today, his ambition is to own a NFL team. Unless you are aiming for simultaneous knocks on the door from the FBI, SEC and CFTC. Your email address will not be published. The S&P 500 is trading at about 23 times projected forward earnings. Powered and implemented by FactSet Digital Solutions. For a free consultation, please call us now at 866-827-3202or complete ourcontact form. Top Hercules Investments Employees James McDonald Chief Executive Officer. Volatility itself could be owned through a number of securities. 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. So, I think over 75% of the gains in the S&P 500 in 2020 could be attributed to a handful of names. McDonald allegedly raised over $5 million and misappropriated funds for personal expenses and Ponzi-like payments. We represent investors in claims against negligent brokers and brokerage firms. Questions? 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. Required fields are marked *. Mutual Fund and ETF data provided by Refinitiv Lipper. 2023 Informa USA, Inc., All rights reserved, In this episode, David Armstrong, editor-in-chief at. 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 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. Market data provided by Factset. 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. Lets call it artificial income and artificial credit for small businesses that are keeping the economy alive. 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 Sonn Law Group is currently investigating allegations surrounding James Arthur McDonald, Jr. or Hercules Investments, LLC. Lets start with your macro view. 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. . James Arthur McDonald Jr., 50, was charged with one count of fraud for bilking clients out of millions of dollars on Sept. 21, 2022. Its two and 20 (fee arrangement) ensures that our portfolio management is in alignment with the profit objectives of the client. Do you have your eyes on any team per se? I think we will retest the previous lows of last March before buying comes back in. Fri, Feb 12. "Robust, quant driven investment strategies are typically only available to Ultra High Net Worth individuals and families with $25 million or more to invest. All rights reserved. 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