The Shocking Allegations Against Former CNBC Analyst James Arthur McDonald

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Written By Angela Angela

 

 

 

 

 

A former CNBC analyst who was once featured on the FBI’s Most Wanted list for financial crimes has been arrested for allegedly defrauding investors, federal prosecutors said Monday.

James Arthur McDonald, 52, from California, used to appear on CNBC and was the CEO of Hercules Investments LLC and Index Strategy Advisors Inc.

According to federal prosecutors, McDonald lost millions of dollars of client money by making risky investments that bet against the U.S. economy after the 2020 presidential election. This caused his clients to lose between $30 and $40 million.

McDonald’s pay was based on a percentage of the assets he managed, so when his investments failed, he lost fees.

In 2021, McDonald raised millions of dollars from investors, telling them he would start a mutual fund. Instead, he allegedly spent the money on a Porsche, rent, and designer clothes.

He also lied to clients of Index Strategy Advisors, sending them false account statements.

McDonald became a fugitive in 2021 after failing to testify before the Securities and Exchange Commission about the fraud allegations. He was finally arrested in Washington over the weekend and will be brought to Los Angeles to face charges.

If convicted, McDonald could face up to 20 years in prison for each count of fraud.

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