In late 2020, McDonald lost between $30 million and $40 million of Hercules client money after adopting "a risky short position" based . "The idea that tech stocks should keep rising in the face of the Covid-induced headwinds was an idea rooted in historic optimism," he said. 1718 Harriman Ln Redondo Beach, CA 90278 . In an initial declaration, counsel for plaintiff confusingly and without providing context, corroboration, or support states: The settlement agreement underlying the Judgment, and communication, refers to the fact that the payment will come from the Ascot insurance policy. (Lindemann Decl. I knew from the first time I stepped on the field at 11 years old that I wanted to be an NFL linebacker; and today at 49 years old, I still wish I could play in the NFL! - Strategies to profit from a stock market decline VS HERCULES INVESTMENTS, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, ET AL. 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. [USA Today]. 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. James McDonald, founder and CEO of Hercules Investments, has some advice for the next generation of Black Americans, "Go after what you want and be all that you can be." Tue, Feb 9. James McDonald - Latest News and breaking headlines - Benzinga Contribute SPY 412.68 0.04% QQQ 306.75 0.74% BTC/USD 22088.42 1.612% DIA 341.15 0.41% GLD 172.58 0.06% TLT 104.02 0.23% James. Hercules Investments LLC Active 2019 1 Member Excel Known Addresses for James McDonald. Under CCP 187, the Court can fashion an appropriate procedure to ensure that no stone [is left] unturned in the search for assets which might be used to satisfy the judgment. (Troy v. Superior Court (1986) 186 Cal.App.3d 1006, 1014 [[T]he purpose of a judgment debtor examination is to leave no stone unturned in the search for assets which might be used to satisfy the judgment]; Yolandas, 11 Cal.App.5th at 515. 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.. There are 0 customer reviews and 1 customer rating. that a third person has possession or control of property in which the judgment debtor has an interest or is indebted to the judgment debtor in an amount exceeding two hundred fifty dollars ($250), the court shall make an order directing the third person to appear before the court, or before a referee appointed by the court, at a time and place specified in the order, to answer concerning such property or debt]. 2 at 5.) 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 . 4.) He speaks with Bloomberg's Romaine Bostick and Taylor Riggs on . 2022-08-16, California Courts Of Appeal | Other | 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. Hercules Investments was awarded the WealthManagement.com 2020 Alternative Asset Manager of the year. 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. (Lindemann Decl. Creditor seeks fees for 531.4 hours incurred at an hourly rate of $500 for collecting and enforcing the settlement agreement and judgment between August 17, 2021 and September 1, 2022. Yet only 14.5% of the global market has been penetrated. Docket Updated -- Hercules Investments, LLC (Defendant): Organization Name changed from HERCULES INVESTMENTS, LLC, a California limited liability company to Hercules Investments, LLC 06/14/2021 Docket Case reassigned to Stanley Mosk Courthouse in Department 72 - Hon. The SEC also filed a complaint against the California-based advisor and frequent CNBC commentator. "The new strain is one of many potential catalysts that can shift sentiment and trigger violent selling, especially as stocks hit record highs as recently as Friday," McDonald said. The petition shall include a copy of the proposed complaint in intervention or answer in intervention and set forth the grounds upon which intervention rests. (CCP 387(c).). SEMYON GINZBURG VS HERCULES INVESTMENTS, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, ET AL. Small businesses are still facing closures at a record rate, while the pandemic is expected to push a further 10-15 million people into poverty. This is the best and simplest approach, but these securities should not be traded by novice investors. McDonald was the CEO and chief investment officer for two registered companies; Hercules Investments, based in Los Angeles, and Index Strategy Advisors, which was based in Redondo Beach. 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. 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. However, the motion was not properly served. McDonald: Our calculations put the S&P at 2,889 and the Dow at 23,740by inauguration and if Biden wins, S&P 1,800 and Dow 15,000 by August 2021. James Macdonald will celebrate 62nd birthday on a Tuesday 4th of October 2022. Arcadia Man Charged with Securities Fraud for Stealing Client Funds and Concealing His Investment Firms Massive Financial Losses. By December 2020, Hercules clients were complaining to company employees about the losses in their accounts. Second, between February and October 2021, McDonald offered and sold equity investments in Hercules itself, raising $1.5 million from two types of investors: one non-client group and two existing individual Hercules clients. Plaintiff Semyon Ginzburgs Motion to Compel Compliance with Subpoena is DENIED. McDonald ran two Los Angeles County-based investment companies: Hercules Investments, based in downtown Los Angeles, and Index Strategy Advisors (ISA), based in Redondo Beach, serving as. 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. Number 2 is market valuations. 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. 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: . 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. Read more about Hercules Capital's Fourth Quarter and Full-Year 2022 Results Life Sciences Technology SaaS Finance Sustainable + Renewable Or before an SEC investigator. Too many people are getting sick and dying. ciaran.mcevoy@usdoj.gov Please use a different way to share. The Judge overseeing this case is MARGARET MILLER BERNAL. Sign up for our newsletter to get the inside scoop on what traders are talking about delivered daily to your inbox. Hercules Investments, LLC, A California Limited Liability Company, et al., Court Case No. mike vernon royal household; are there snakes in gran canaria; shooting in laurel, md yesterday. Public Information Officer 1996-2023, Amazon.com, Inc. or its affiliates, Select a location to see product availability. If Biden wins, he will make the necessary tough choices early on that will hammer the market: tax hikes, and sweeping lockdowns of the economy. Search our database of over 100 million company and executive profiles. Could you describe what you mean by that? McDonald could not be reached for comment. Further, creditor also seeks $55,477 in post-judgment interest. (*******9709). The Court is hard-pressed to see how Bunnell is or should be entitled to enter the case, undo the judgment, and then leavewhich is precisely what the proposed intervenor seemingly seeks to accomplish here. 312 North Spring Street
On May 3, 2022, creditors motion to compel compliance with subpoena was denied. Explore our venture lending portfolio here. Through his other company, Index Strategy Advisors, McDonald used less than half of $3.6 million raised over more than two years in that firms investment fund for trading. last spoke to McDonald on Nov. 18, when he admitted to taking clients money without investing it; McDonalds accounts for his phone and email address have since been terminated. James Arthur McDonald Jr. faces as much as 20 years in federal prison, according to the Justice Department, which filed the charges in California federal court this week. Track. Lines and paragraphs break automatically. 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. And the best part of all, documents in their CrowdSourced Library are FREE! From this, the Court is hard pressed to make any finding as to what, if any, payments are due to the judgment creditors for purposes of assignment to plaintiff. Markets have always crashed in the weeks and months following 52-week highs, and it could take only a change in sentiment to trigger a large sell-off, the investment chief said. 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. Shipping cost, delivery date, and order total (including tax) shown at checkout. Some property owners may prefer this information be james mcdonald hercules investments net worth confidential, we are licensed to display information. VOLQ is even better because it can be used to protect gains and principal in tech holdings. On one morning in late October or early November 2021, D.J. However, there is no proof of service indicating that the supporting declaration, amended declaration, or proposed order were served on debtors. In 2018, I earned Defensive MVP for my championship winning team and led the entire league in tackles. 4. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. This item can be returned in its original condition for a full refund or replacement within 30 days of receipt. 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. Official websites use .gov McDonald graduated from Harvard University with a Bachelors degree in Economics. The Securities and Exchange Commission (SEC) has filed a civil injunctive action against James Arthur McDonald, Jr. No, Brent Kovars mother didnt have an artificial intelligence supercomputer in her basement, the SEC says. For those willing to take risk and or those who dont want to liquidate their securities, we recommend buying volatility with a 10-15% allocation in their portfolio. Currently, S&P 500 price levels imply that the economy is stronger now and will be stronger in the short-term future than it was PRIOR to the beginning of the pandemic. options. Houston, Texas, United States. Notice of Change of Address or Other Contact Information, Certificate of Mailing for - CERTIFICATE OF MAILING FOR (HEARING ON MOTION FOR ORDER MOTION FOR AN ORDER AWARDING POST) OF 10/11/2022, Memorandum of Costs After Judgment, Acknowledgment of Credit, and Declaration of Accrued Interest, Notice - NOTICE OF WITHDRAWAL OF MOTION FOR AN ORDER AWARDING POSTJUDGMENT COSTS AND ATTORNEYS FEES INCURRED IN ENFORCING JUDGMENT, Minute Order - MINUTE ORDER (HEARING ON MOTION FOR ORDER MOTION FOR AN ORDER AWARDING POST), Declaration - DECLARATION OF BLAKE J. LINDEMANN IN SUPPORT OF MOTION FOR AN ORDER AWARDING POST- JUDGMENT COSTS AND ATTORNEYS FEES INCURRED IN ENFORCING JUDGMENT, Declaration - DECLARATION OF BLAKE J. LINDEMANN IN SUPPORT OF MOTION FOR AN ORDER AWARDING POST JUDGMENT COSTS AND ATTORNEYS FEES INCURRED IN ENFORCING JUDGMENT, Motion for Order - MOTION FOR ORDER AWARDING POST-JUDGMENT COSTS AND ATTORNEYS FEES INCURRED IN ENFORCING JUDGMENT, Declaration - DECLARATION OF SEMYON GINZBURG IN SUPPORT OF MOTION FOR AN ORDER AWARDING POST-JUDGMENT COSTS AND ATTORNEYS FEES INCURRED IN ENFORCING JUDGMENT, Appeal - Notice Court Reporter to Prepare Appeal Transcript - APPEAL - NOTICE COURT REPORTER TO PREPARE APPEAL TRANSCRIPT NOA 4/29/22 B321138, Appeal - Ntc Designating Record of Appeal APP-003/010/103, Notice of Filing of Notice of Appeal (Unlimited Civil) - NOTICE OF FILING OF NOTICE OF APPEAL (UNLIMITED CIVIL) 614, Appeal - Notice of Appeal/Cross Appeal Filed, Minute Order - MINUTE ORDER (HEARING ON MOTION TO COMPEL COMPLIANCE WITH SUBPOENA IN AID O), Reply - REPLY PLAINTIFFS REPLY IN FURTHER SUPPORT OF MOTION TO COMPEL COMPLIANCE WITH SUBPOENA IN AID OF ENFORCEMENT OF JUDGMENT AND ENTRY OF PROTECTIVE ORDER TO ALLOW PRODUCTION OF ANY DOCUMENTS THAT. Decl. Ruth Ann Kwan in Department 72 Stanley Mosk Courthouse, DocketComplaint; Filed by: Semyon Ginzburg (Plaintiff); As to: HERCULES INVESTMENTS, LLC, a California limited liability company (Defendant); James A. McDonald, JR. (Defendant), DocketCivil Case Cover Sheet; Filed by: Semyon Ginzburg (Plaintiff); As to: HERCULES INVESTMENTS, LLC, a California limited liability company (Defendant); James A. McDonald, JR. (Defendant), DocketSummons 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), DocketNotice of Case Assignment - Unlimited Civil Case; Filed by: Clerk, Case Number: *******9709 Hearing Date: October 11, 2022 Dept: 72, MOTION FOR POST-JUDGMENT COSTS AND ATTORNEY FEES INCURRED IN ENFORCING JUDGMENT, Case: Semyon Ginzburg v. Hercules Investments, LLC et al. This is the story of how his charm and 'hubris' was so powerful, after one of his presentations, someone asked if they could join his cult. Navin: You've named the issues facing the stock market as "a 3-headed monster." UniCourt uses cookies to improve your online experience, for more information please see our Privacy Policy. In response, McDonald began soliciting funds for a purported capital raise for the company; as an avid football enthusiast, he claimed to be setting up a publicly traded mutual fund with the ticker symbol of NFLHX, but according to the Justice Department, this was a ruse concocted as the advisorcontinued to notinform clients about the seismic losses the firm suffered. A locked padlock that he was not going to stick around and that he would vanish, Chowthi wrote. James graduated from Harvard . When the market decline didnt occur, Hercules clients lost between $30 million and $40 million, according to the affidavit. Pronunciation of james mcdonald with 2 audio pronunciations, 1 meaning, 5 translations, 12 sentences and more for james mcdonald. He appeared as a financial expert on TV. [1] He played college basketball at Southern California (USC) and did not play college football. THE NAMES "Hercules Investments" AND "Hercules Fund". 3.) VS TRILLER HOLD CO LLC, ET AL. . (See CCP 685.080(b).) 6,971 Number of Organizations $13.3B Total Funding Amount 1,202 Number of Investors. Hercules and the various insureds settled claims for $1,450,000, which was directed by Hercules to be paid into a separate account maintained by BNSK and distributed at Hercules direction for (1) defense costs relating to claims by investors against Hercules for losses sustained as a result of Hercules investment strategies and/or (2) to pay claims by various investors relating to losses by such investors as established by the Settlement Agreement. (Brown Decl. I do not hold positions in these investments. Attempting to bolster that showing, plaintiffs counsel states in a supplemental declaration that there is a gross settlement fund consist[ing] of $1,450,000 that is being held by Ethan Brown (Lindemann Supp. Hercules Investments CIO James McDonald on CNBC The Exchange ), While BNSK may have previously been in possession of funds that may be used to satisfy the judgment in plaintiffs favor entered in this action, the settlement funds from Herculess insurer have now been deposited into a court account, the allocation of which will be determined in an interpleader action. That product for me ended up being index options. When facing allegations such as these, its best not to be seen on TV. Given these circumstances, McDonald said, the S&P 500 could crash to 1,900 if investor sentiment suddenly turns negative. He then misappropriated those funds in various ways, including spending roughly $174,610 of them at a Porsche dealership. In fairness to James McDonald, television is a much more welcoming venue than an SEC hearing room or courthouse. Actually, he didnt just assume it: He bet his clients money rather heavily on it, and lost them upwards of $40 million doing so. Work Biography for James McDonald, Hercules Investments. (Reply at 3.) Plaintiff contends that the requested documents are pertinent to the efforts to collection on the judgment, including ascertaining available insurance and concerning the assets of judgment debtors Hercules Investments, LLC and James McDonald that are being held, obstructed, or concealed by third parties. Yahoo Finance's Alexis Christoforous and Brian Sozzi speak with James McDonald, CEO of Hercules Investments, about the latest market moves. 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. Value may lead however in terms of short term suitability for conservative investors. From what we see, there is still a clear disconnect between markets and the health of the economy. BROWN NERI SMITH & KHAN LLP, A LIMITED LIABILITY PARTNERSHIP, AND LAW FIRM VS JAMES A. MCDONALD, ET AL. On February 10, 2022, plaintiff served a deposition subpoena seeking the production of business records on Ethan Brown, custodian of records for Brown Neri Smith & Khan LLP (BNSK). Navin: What indicators do you follow to read the markets? Brown, whose firm used to represent defendants on other matters seemingly related to this litigation but never actually appeared on behalf of defendants in this case. He last appeared on the network in July 2021. 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. James McDonald went from being CNBC market pundit, media darling and self-proclaimed options guru to a fugitive in hiding and on the run. (See Hood v. Gonzales (2019) 43 Cal.App.5th 57, 71 [interpleader is an equitable proceeding where the conflicting claims regarding the interpleaded funds are resolved]. 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. scott@strategyvoiceassociates.com, Internet Explorer presents a security risk. Share sensitive information only on official, secure websites. 5.) (See 2/15/22 Minute Order at 2-3.) According to the U.S. Attorney's Office, McDonald's . portville central school yearbooks; jennette mccurdy astroseek. Miraculously in 2006, I found an orthopedic surgeon who fixed my knee and I got back on the field at the age of 35. Since McDonalds compensation for his investment advisory services primarily was based on a percentage of assets under his management typically 2% of a clients total assets held by Hercules the massive losses to Hercules clients significantly decreased the fees McDonald was entitled to collect.
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