- McDonald Jr was a CEO and appeared on CNBC as a monetary analyst
- He has been a fugitive since 2021 after being accused of fraud
- He might withstand 35 years in jail
A former CNBC monetary analyst-turned fugitive has been arrested by the FBI after three years on the run, as he’s accused of defrauding tens of millions from his traders.
James Arthur McDonald Jr, 52, was arrested in Port Orchard, Washington, on Saturday by the FBI and might be extradited to California to face trial within the subsequent few weeks for his alleged crimes, america Division of Justice mentioned.
He was the CEO and chief funding officer of two California-based corporations: Hercules Investments LLC and Index Technique Advisors Inc, and would additionally continuously seem as a monetary analyst on CNBC.
McDonald grew to become a fugitive in November 2021 when he failed to look earlier than the US Securities and Trade Fee to testify after being accused of defrauding his traders.
Forward of his 2021 trial, McDonald had reportedly terminated his earlier telephone and e mail accounts and had advised somebody he deliberate to ‘vanish’.
James Arthur McDonald, Jr. was wished for securities fraud after allegedly stealing consumer funds and concealing his funding agency’s huge monetary loss.
McDonald, Jr., was the CEO and chief funding officer of two corporations: Hercules Investments LLC, based mostly in downtown Los Angeles, California, and Index Technique Advisors Inc.
In keeping with the DOJ, the 12 months prior, he had misplaced tens of tens of millions of {dollars} of consumer Hercules cash after ‘adopting a dangerous quick place that successfully wager towards the well being of the United Sates financial system within the aftermath of the US presidential election’.
The monetary analyst and CEO had predicted that the COVID-19 pandemic and the election would end in main selloffs that might trigger the inventory market to drop. However when the market decline did not happen, Hercules purchasers misplaced between $30 million and $40 million.
Then, in January 2021, McDonald solicited tens of millions of {dollars} price of funds from traders to lift capital for Hercules, and allegedly ‘misrepresented how the funds could be used’.
He’s additionally suspected of acquiring $675,000 in funding funds he raised, which he used to splurge on himself — ‘spending roughly $174,610 of them at a Porsche dealership.’
The alleged fraudster transferred over $100K of these funds to the owner of a house he was renting in Arcadia, California, after which one other $6,800 to a web-based retailer to purchase designer clothes.
He additionally reportedly despatched purchasers falsified account statements.
McDonald is being charged with one depend of securities fraud, one depend of wire fraud, three counts of funding adviser fraud, and two counts of participating in financial transactions in property derived from illegal exercise.
He appeared in courtroom on Monday in Tacoma, Washington and can proceed his courtroom proceedings in Los Angeles within the coming weeks. If discovered responsible on all counts, the con artist might withstand 35 years in jail.
The CEO-turned fraudster would continuously seem on CNBC monetary tv information community as a monetary analyst
Pictured: McDonald makes an look on CNBC as a monetary analyst earlier than occurring the run in 2021 following fraud allegations
