On 11/16/2021 HERCULES INVESTMENTS, LLC, filed a Contract - Business lawsuit against DANNY MICHAEL CORRAL,. McDonald: Without question: Market Wizards Jack Schwager. Actually, he didnt just assume it: He bet his clients money rather heavily on it, and lost them upwards of $40 million doing so. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. VS JAMES A. MCDONALD, JR., ET AL. The FBI and IRS Criminal Investigation investigated this matter. 312 North Spring Street
Third, although creditor incurred fees defending against proposed intervenor Justin Bunnells efforts to vacate the stipulated judgment, these fees are not related to the collection of judgment against debtors. VS DANNY MICHAEL CORRAL, ET AL. Our estimate is that stock prices need to come down 20-50% to reflect COVID-19-impacted U.S. economic activity. My investigation has revealed that McDonalds fraudulent capital raise is part of a broader pattern of deceptive conduct, which includes the creation of false account statements for ISA clients, his ongoing misrepresentation to clients that ISA was a registered investment adviser even after he had terminated its registration, and even misleading statements about his educational background, according toFBI Special Agent Robert Chowthi, according to the criminal complaint. ${cardName} unavailable for quantities greater than ${maxQuantity}. 5 & Ex. 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.. To Chowthi, the evidence indicates that McDonald is currently intentionally concealing his whereabouts., https://www.wealthmanagement.com/sites/wealthmanagement.com/files/logos/Wealth-Management-Logo-white.png, Hercules Investments CEO/CIO James McDonald. Updated -- Hercules Investments, LLC (Defendant): Organization Name changed from HERCULES INVESTMENTS, LLC, a California limited liability company to Hercules Investments, LLC, Case reassigned to Stanley Mosk Courthouse in Department 72 - Hon. Shipping cost, delivery date, and order total (including tax) shown at checkout. mike vernon royal household; are there snakes in gran canaria; shooting in laurel, md yesterday. There was a problem loading your book clubs. The SECfiled a civil complaint today charging McDonald and Hercules with violations of federal securities law. On May 3, 2022, creditors motion to compel compliance with subpoena was denied. Customer Reviews, including Product Star Ratings help customers to learn more about the product and decide whether it is the right product for them.Learn more how customers reviews work on Amazon, [{"displayPrice":"$35.00","priceAmount":35.00,"currencySymbol":"$","integerValue":"35","decimalSeparator":".","fractionalValue":"00","symbolPosition":"left","hasSpace":false,"showFractionalPartIfEmpty":true,"offerListingId":"pjKvPbaCzTFGz7tm%2F4plpNBIHaGsThf1FzF2RcINGAblEr2D%2BPhusKDR7sd54ZbiPtyEWzdH%2BRY9V0EgvA2dziukOK7HD1nO6KVW%2F23KTXYaw7l%2BpJAbpdYHQjsWc0qrKCFg5%2FoCSEsG%2FTMsMfFffg%3D%3D","locale":"en-US","buyingOptionType":"NEW"},{"displayPrice":"$35.00","priceAmount":35.00,"currencySymbol":"$","integerValue":"35","decimalSeparator":".","fractionalValue":"00","symbolPosition":"left","hasSpace":false,"showFractionalPartIfEmpty":true,"offerListingId":null,"locale":"en-US","buyingOptionType":"PICKUP"}]. Share sensitive information only on official, secure websites. (Lindemann Decl. ", Read more: Bank of America unveils its top stock pick in each of the 11 S&P 500 sectors and explains why they're poised to dominate in the year ahead. To stop this, we will need to lock down the economy again and this will inevitably trigger the beginning of a recession. Today were the largest index options trader on the CBOE and the largest trader of Nasdaq 100 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,. And, also, relatedly and with the prospect of decades in prison attach, conspiracy and fraud. This is the story of the James McDonald and the rise and fall of Hercules Investments. For more information, please visit: https://hercules-investments.com/hercules-public/index.html, Media Contact Instead, McDonald spent more than $1 million of the money on his own expenses, and used more than $2 million on Ponzi-like payments to Hercules clients and business expenses for the firm, according to the SEC complaint against him. Indeed, such other claims may be substantial and the subject of an interpleader action in this Court. For all the foregoing reasons, the motion is DENIED. On February 15, 2022, creditors motion for order assigning right to payment was denied. McDonald then used some of the funds from this capital raise for his own purposes, including $174,610 at a Porsche dealership, $109,512 for rent expensesand nearly $7,000 on designer menswear, according to the DOJ. Ironically, however, pertinent information about any right to payment comes not from the moving party, but from the response to the motion by Ethan J. Technology innovations are too powerful. McDonald was the CEO of Los Angeles County-based Hercules Investments and Index Strategy Advisors Inc., prosecutors said. 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. (*******9709). The stock market is a big auction house. (See Brown Decl. As soon as we found out he was under investigation, we no longer allowed him on our air, said a CNBC spokesperson. 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 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. woke up and found that McDonald was gone, leaving his car (with the keys inside) in D.J.s driveway. Accordingly, to the extent that the post judgment enforcement proceedings in this case includes work on creditors ex parte application and motions, such work appears not to have been reasonable and necessary. But what really got my attention was the security that empowered Lewis to make history: junk bonds. The S&P 500 could be headed for a drop of up to 48%, according to James McDonald, the CEO and chief investment officer of Hercules Investments. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. The Dow Jones industrial average could drop to as low as 15,000, a roughly 50% drop from current levels, he added. A new strain of COVID-19, historically elevated tech . We are sorry. 1996-2023, Amazon.com, Inc. or its affiliates, Select a location to see product availability. Track. CHICAGO--(BUSINESS WIRE)--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 2021 Stock Market Crash, on Thursday, January 14, 2021 at 3pm EST. The stated reason for seeking ex parte relief is the purported irreparable harm and immediate danger of this Court granting plaintiffs Motion for Assignment without first determining whether Bunnell may intervene in this action and be heard as to that motion. Assistant United States Attorneys Carolyn S. Small and Alexander B. Schwab of the Major Frauds Section are prosecuting this case. By clicking Sign up, you agree to receive marketing emails from Insider Location South Ozone Park, New York, United States Work Chief Executive Officer @ Hercules Investments Chief Executive Officer and Chief Investment Officer @ Index Strategy Advisors NDAQ According to the DOJ, McDonalds troubles began after taking risky short positions in 2020, betting that the U.S. economy, and the stock market,would crater due to the COVID-19 pandemic and the 2020 presidential election. Ruth Ann Kwan in Department 72 Stanley Mosk Courthouse, Complaint; Filed by: Semyon Ginzburg (Plaintiff); As to: HERCULES INVESTMENTS, LLC, a California limited liability company (Defendant); James A. McDonald, JR. (Defendant), Civil Case Cover Sheet; Filed by: Semyon Ginzburg (Plaintiff); As to: HERCULES INVESTMENTS, LLC, a California limited liability company (Defendant); James A. McDonald, JR. (Defendant), Summons on Complaint; Issued and Filed by: Semyon Ginzburg (Plaintiff); As to: HERCULES INVESTMENTS, LLC, a California limited liability company (Defendant); James A. McDonald, JR. (Defendant), Notice of Case Assignment - Unlimited Civil Case; Filed by: Clerk. James McDonald went from being CNBC market pundit, media darling and self-proclaimed options guru to a fugitive in hiding and on the run. 2022-01-21, Los Angeles County Superior Courts | Contract | "There are going to be explosive opportunities for investors," says James McDonald, CEO of investment firm Hercules Investments on November 12. BROWN NERI SMITH & KHAN LLP, A LIMITED LIABILITY PARTNERSHIP, AND LAW FIRM VS JAMES A. MCDONALD, ET AL. We work hard to protect your security and privacy. 4.). As stated in his opening brief, proposed intervenor admits to this Court that Bunnell seeks only to only [sic] oppose the Assignment Motion (Bunnell Mem. 4.) Clients began asking Hercules employees about losses in their accounts, and since McDonalds compensation primarily was based on a percentage of his clients assets (typically around 2% ofAUM at Hercules), thelosses meant steep declines in McDonalds own earnings, according to the DOJ. On one morning in late October or early November 2021, D.J. Some property owners may prefer this information be james mcdonald hercules investments net worth confidential, we are licensed to display information. . in Economics. On February 1, 2022, creditors ex parte application for order assigning right to payment was denied. After injuries in high school, as a non-scholarship walk-on player, I ended up playing college football in Maryland and was having a stellar season as a freshman until I suffered a catastrophic knee injury that rendered me disabled for the next 15 years. Work Biography for James McDonald, Hercules Investments. That product for me ended up being index options. 2) and that [t]he insurance policy that generated the fund is referred to in the Settlement Agreement at 5. (Supp. In a recent note to clients, McDonald, who profited from the pandemic crash in March with bullish wagers on stock-market volatility, laid out three reasons the market is especially vulnerable to such a swift downturn right now. (Reply at 3.) Lastly, even if all or some of the referenced funds could be assigned pursuant to CCP 708.510, the Court would decline to issue an order so doing. Counsel avers: The services rendered include communications attempting to enforce the settlement agreement and judgment, post judgment enforcement proceedings in this case, defending a separate action brought by Justin Bunnell, defending a separate interpleader brought by Ethan Brown, defending an Appeal brought by Justin Bunnell, and a whole host of other services. (Lindemann Decl. Could you describe what you mean by that? When do you expect value stocks to take the lead again, if ever? THE NAMES "Hercules Investments" AND "Hercules Fund". To the extent the requested documents may serve as evidence the settlement was intended to satisfy plaintiffs claims asserted in this action (or was somehow made in bad faith to cheat plaintiff), discovery for that purpose may be germane to plaintiffs claims of equitable entitlement to the funds deposited in the interpleader action and must be sought in connection therewith. Brief content visible, double tap to read full content. at 3.) A nonparty shall petition the court for leave to intervene by noticed motion or ex parte application. 6,971 Number of Organizations $13.3B Total Funding Amount 1,202 Number of Investors. LOUI RUDAS, ET AL. Too many people are getting sick and dying. Anyone with information about McDonalds whereabouts is encouraged to call the FBIs Los Angeles Field Office at (310) 477-6565. Accounting and Auditing Enforcement Releases. 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. Greater Los Angeles Area Financial Services Companies. - 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. James McDonald, Hercules Investments founder and CEO, said Friday that the news of President Donald Trump contracting COVID-19 could "completely change the direction of the campaign," and. 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. The Hercules Fund aims to generate positive returns during times of rising and falling stock markets. Chowthi said McDonald gave D.J. Even assuming that $1.45 million has been received by Mr. Browns account from Herculess insurer, it is either (1) Herculess money (which happens to be held its former counsel) or (2) money set aside to pay defense costs to Herculess counsel or claims by investors claiming losses. He was named a "rising star" advisor in 2012 by ETF.com, frequently appeared on CNBC as a market analyst, including on "Fast Money" and "The Exchange," and Hercules Investments won a. He was named a "rising star"advisor in 2012 by ETF.com,frequently appeared on CNBC as a marketanalyst, including on Fast Money and The Exchange, and Hercules Investments won a WealthManagement.com Industry award in 2020 in the category ofAlternative Asset Management. - The dangers of too much fiscal and monetary stimulus 3.) proof by the judgment creditor . Why? Id rather my 72-year-old retired mom own a stable dividend stock right now than a FAANG! Los Angeles, California 90012. [2] That means there's a whole lot of opportunity for both streaming service providers and their investors. (whos only identified as suchin the complaint) a laptop and cell phone to secretly communicate with McDonald, as well as a thumb drive containing information about which clients were owed money. Approximately $109,512 was transferred to the landlord of a home McDonald was renting in Arcadia; and approximately $6,800 was spent on a website that sells designer menswear. This item can be returned in its original condition for a full refund or replacement within 30 days of receipt. James Zell McDonald (born March 29, 1961) is a former American football tight end in the National Football League. Investors should let a professional handle putting these trades on. James McDonald, CEO of Hercules Investments, told Yahoo Finance's "The First Trade" that the president and his advisors so far have paid close attention . He also allegedly sent ISA clients false account statements, including for one client who invested approximately $351,000, later needed the money to make a down payment on a home, was informed by McDonald that much of the money had been lost, and never got his full investment back. That seems not to be a proper basis for intervention under CCP 387, and Bunnell cites no meaningful authority for the proposition that he may intervene in an action for the limited purposes of participating in post-judgment proceedings or seeking to undermine the judgment already entered. Plaintiff and judgment creditor Semyon Ginzburgs Motion for an Order Awarding Post-Judgment Costs and Attorney Fees Incurred in Enforcing Judgment is DENIED. Firm Details for HERCULES INVESTMENTS, Location: California, AUM = 33200000.00, Last Form ADV Filed : 16-June-2021, Officers: MCDONALD, JAMES, ARTHUR, MCDONALD . 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. According to an affidavit filed with the complaint, McDonald frequently appeared as an analyst on the CNBC financial TV news network and was the CEO and chief investment officer of two companies: Hercules Investments LLC, based in downtown Los Angeles, and Index Strategy Advisors Inc. (ISA), based in Redondo Beach. Explore Our Venture Lending Portfolio | Hercules Capital Whether you're a curious investor or a successful start-up seeking VC financing, Hercules Capital is for you. A Carson man who was a central figure in an international fraud and money-laundering network that targeted $25 million through a variety of frauds including romance scams and elder A former executive at cinema subscription service MoviePass Inc. has been arrested on a federal grand jury indictment alleging he embezzled approximately $260,000 from MoviePass parent company to repay money An Orange County man was sentenced today to 54 months in federal prison for fraudulently obtaining $5 million in COVID-relief loans for his sham businesses, then used the money on Central District of California
McDonald, who faces up to 20 years imprisonment if convicted, "is believed to be in hiding," the U.S. Attorney's office said in a news release. In late 2020, McDonald lost between $30 million and $40 million of Hercules client money after adopting "a risky short position" based . 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. However, there is no proof of service indicating that the supporting declaration, amended declaration, or proposed order were served on debtors. Further, creditor also seeks $55,477 in post-judgment interest. He speaks with Bloomberg's Romaine Bostick and Taylor Riggs on . Pursuant to CCP 685.040, paragraph 13 of the stipulated judgment, and CCP 1033.5(10)(A), creditor Ginzburg is entitled to the reasonable and necessary costs of enforcing a judgment. Even large-cap companies such as Disney and Exxon-Mobil Houston, Texas, United States. The perceived future harm of the new COVID-19 strain in the UK will introduce additional risk to markets, according to McDonald. Produce all communications (including e-mails, text messages, or messages from any messaging service) between Hercules Investments, LLC and Justin Bunnell. Please try again. If you're an investor, you'd want to look much deeper into each of these situations. 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. James Macdonald will celebrate 62nd birthday on a Tuesday 4th of October 2022. Alternatively, for those willing to accept risk? TIMOTHY Z. MOSLEY, ET AL. 2022-01-24, Los Angeles County Superior Courts | Contract | Too many people and firms over-complicate these basic truths. How To Invest In Bitcoin By Two Harvard Minds. LOS ANGELES A former San Gabriel Valley resident who ran Los Angeles County-based investment companies and was a frequent guest on financial television news programs was charged today in a federal criminal complaint alleging he lied to investors. VS HERCULES INVESTMENTS, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, ET AL. portville central school yearbooks; jennette mccurdy astroseek. Accordingly, the claim of 531.4 hours is insufficiently supported. A .gov website belongs to an official government organization in the United States. 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,. My intensity and competitiveness on the field is what makes me extremely effective as an investment manager. My plan to write a $2-$3 billion dollar check for a franchise? James Arthur McDonald Jr. appears to be on the lam as he faces as much as 20 years in prison for allegedly defrauding investors, according to the Justice Department. HERCULES INVESTMENTS, LLC, ET AL. Web page addresses and e-mail addresses turn into links automatically. For the foregoing reasons, the motion is DENIED. Accordingly, plaintiff fails to demonstrate that the requested documents pertain to the search for assets to satisfy the judgment entered against defendants Hercules Investments, LLC and James McDonald in this action. UniCourt uses cookies to improve your online experience, for more information please see our Privacy Policy. Both the Dow and the S&P 500 closed at record highs last week but have pared gains. From what we see, there is still a clear disconnect between markets and the health of the economy. The $900 billion stimulus package is necessary and was largely expected by investors but it won't be enough to limit the economic fallout of the pandemic, according to McDonald. Bring your club to Amazon Book Clubs, start a new book club and invite your friends to join, or find a club thats right for you for free. Your activity looks suspicious to us. ET by Tomi Kilgore. Produce all communications (including e-mails, text messages, or messages from any messaging service) between Ethan Brown and Justin Bunnell. McDonald: I would ask him whether he believes that the Fed was successful in bolstering the economic stability of the people who needed it most (i.e. UVXY went from $12 to $120. Decl. Pursuant to CCP 708.510, a judgment creditor may seek by way of noticed motion an order that the judgment debtor assign to the judgment creditor all or part of a right to payment due or to become due. (CCP 708.510(a).). 2021-11-16, Los Angeles County Superior Courts | Property | However, interest is not the type of cost that can be claimed in this motion. Hercules Investments specializes in actively managed and systematic investment strategies to monetize investment performance from equity market volatility. (213) 894-4465. 2-3, 5 & Ex. In 1992, I became interested in markets after reading a book (Why Should White Guys Have All the Fun by Blair Walker) about Reginald Lewis who amassed a $1 billion fortune in the 80s and 90s through M&A. (Brown Decl. 297 views, 25 likes, 0 loves, 5 comments, 0 shares, Facebook Watch Videos from Hercules Investments: James McDonald, CEO of Hercules Investments on CNBC this morning discussing investment. 2023 Informa USA, Inc., All rights reserved, Target Needs to Make You Want to Spend Again, Six Reasons 2023 Is the Year of the 1031 Exchange, 10 Must Reads for CRE Investors Today (Feb. 28, 2023), Goldman Turns to Make-or-Break Unit as Solomon Put to Test, For Many Homebuyers, Its New Construction or Nothing, The 12 Best Business Books of 2022 for Advisors, The Most-Revealing Onboarding Questions Advisors Ask, Allowed HTML tags: . Being able to identify the turning points in sentiment is our secret to success. Hercules Investments chief investment officer James McDonald used to be a familiar face on CNBC, pontificating about market matters as an expert thereon. | By . In late 2020, McDonald lost tens of millions of dollars of Hercules client money after adopting a risky short position that effectively bet against the health of the United States economy in the aftermath of the U.S. presidential election. 1 1 Hercules Investments @HerculesInvests May 13, 2021 Tune in today's Fast Money on CNBC at 2pm PST. Learn more how customers reviews work on Amazon, Independently published (February 4, 2022). Second, the Court file reflects that the motions which creditor filed have been unsuccessful. I do not hold positions in these investments. It looks like WhatsApp is not installed on your phone. On its face, the number of hours appears to be without merit. Neither seems likely, which perhaps explains proposed intervenors unwillingness to file a proposed complaint or answer in intervention as required by statute. Search our database of over 100 million company and executive profiles. McDonald an avid football enthusiast stated that he planned to launch a publicly traded mutual fund under the ticker symbol NFLHX. The losses to Hercules clients and the potential for litigation related to those losses jeopardized the success of that fund because any litigation would have had to be publicly disclosed. Navin: What indicators do you follow to read the markets? 633 W 5th Street, Los Angeles, CA 90071 The founder of a Chicago megachurch has been fired as its leader. 5.) By December 2020, Hercules clients were complaining to company employees about the losses in their accounts. I became fascinated by the story of how junk bonds via Mike Milken and others were used to revolutionize financing and M&A during the 90s. Now he's wanted on fraud charges. The Judge overseeing this case is MARGARET MILLER BERNAL. Why Should White Guys Have All the Fun by Blair Walker. Any litigation that stemmed from those losses would need to be disclosed if he went forward with the fund, according to the DOJ. Registered in England and Wales. A [Complaint in Interpleader].). "As we see now, eventually reality strikes and changes things overnight. Explore our venture lending portfolio here. For this reason alone, the motion should be denied. - Strategies to profit from a stock market decline Lindemann Decl. . According to McDonalds former romantic partner and business associate, D.J., after the SEC subpoenaed records from Hercules and subpoenaed McDonald for testimony, McDonald told D.J. 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. 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.
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