{"id":2270454,"date":"2024-06-18T12:11:02","date_gmt":"2024-06-18T16:11:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cnbc-analyst-arrested-on-federal-charges-after-disappearing-and-being-declared-a-fugitive\/"},"modified":"2024-06-18T12:19:05","modified_gmt":"2024-06-18T16:19:05","slug":"cnbc-analyst-arrested-on-federal-charges-after-disappearing-and-being-declared-a-fugitive","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cnbc-analyst-arrested-on-federal-charges-after-disappearing-and-being-declared-a-fugitive\/","title":{"rendered":"CNBC Analyst Arrested on Federal Charges, Previously Declared a Fugitive"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcnbc-analyst-arrested-on-federal-charges-after-disappearing-and-being-declared-a-fugitive%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2270454&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>After over two and a half \u200cyears evading law enforcement, former CNBC analyst and once-acclaimed financial expert\u200b James Arthur \u200cMcDonald Jr. was apprehended on charges of fraud. McDonald, who had disappeared since November \u200b2021 following initial\u200d fraud allegations, was caught \u200dby federal authorities in Port Orchard, Washington, and \u2064is to be extradited to California for trial. He faces multiple charges\u2064 including securities fraud, \u2062wire fraud, and investment adviser fraud, with potential penalties \u200damounting to extensive prison time.<\/p>\n<p>McDonald served as CEO and chief investment officer of Hercules Investments LLC and \u200cIndex Strategy Advisors\u2062 Inc. During 2020, he allegedly mismanaged client funds expecting a post-pandemic market drop, resulting in\u200d substantial losses. However, in 2021, he reportedly engaged in raising\u200b money\u200c which\u200b he \u2062spent\u2063 on personal luxuries including\u200c a Porsche\u200d and \u2064designer clothes, rather than the intended securities trading. The \u200bSecurities and Exchange Commission (SEC) has accused McDonald of engaging in fraudulent activities involving approximately $5.1 million from investors, using some of these \u200bfunds\u2064 for\u2062 personal gain in a\u200d Ponzi-like scheme. If \u200bconvicted, McDonald \u2062could face up to\u200b 20 years in prison for each of the charges related to fraud and \u200bmonetary transactions derived from unlawful activity.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<header> <a href=\"https:\/\/www.westernjournal.com\/news\/\">  News <\/a>   <span> <\/p>\n<p><a href=\"https:\/\/www.westernjournal.com\/author\/russdavis\/\">  <\/a> <\/p>\n<p> <span>   By <a href=\"https:\/\/www.westernjournal.com\/author\/russdavis\/%20\"><span>Jack Davis<\/span><\/a> <\/span> <span>   June 18, 2024 at 6:42am <\/span> <\/span>  <\/header>\n<section>\n<p>After more than two and a half years on the run, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fncs-carlson-biden-immigration-policy-a-direct-assault-on-our-democracy\/\" title=\"FNC's Carlson: Biden Immigration Policy a 'Direct Assault on Our Democracy'\">federal authorities caught<\/a> up with one-time fiscal guru James Arthur McDonald Jr. who was wanted on fraud charges.<\/p>\n<p><a href=\"https:\/\/deadline.com\/2024\/06\/former-cnbc-pundit-arrested-1235976113\/\" target=\"_blank\" rel=\"noopener\">Deadline<\/a> described McDonald as\u00a0a \u201cperennial presence as an analyst on CNBC shows over the years.\u201d<\/p>\n<p>However, the high-profile commentator had been living under the radar since November 2021, when the initial <a href=\"https:\/\/www.westernjournal.com\/mastermind-huge-marriage-fraud-operation-sought-green-cards-600-immigrants-sentenced-prison\/\" target=\"_blank\" rel=\"noopener\">fraud<\/a> allegations against him were made, according to a U.S. Attorney\u2019s Office, Central District of California <a href=\"https:\/\/www.justice.gov\/usao-cdca\/pr\/former-financial-tv-news-analyst-turned-fugitive-arrested-federal-indictment-charging\" target=\"_blank\" rel=\"noopener\">news release<\/a>.<\/p>\n<p>The former Arcadia, California, resident was arrested Saturday at a residence in Port Orchard, Washington. He will eventually be returned to California to face the charges against him.<\/p>\n<p>McDonald had been summoned by the <a href=\"https:\/\/www.westernjournal.com\/ap-warren-buffett-warns-investors-new-letter-ignore-wall-street-financial-advisors-pay-attention-man\/\" target=\"_blank\" rel=\"noopener\">Securities and Exchange Commission<\/a> to address fraud allegations, but the news release said at that time his phone and email accounts were terminated and he told at least one person he planned to \u201cvanish.\u201d<\/p>\n<blockquote>\n<p dir=\"ltr\" lang=\"en\">Fugitive James Arthur McDonald was arrested in Port Orchard, WA, on Saturday. A former guest on television programs, he is accused of defrauding investors. <a href=\"https:\/\/twitter.com\/USAO_LosAngeles?\">@usao_losangeles<\/a> <a href=\"https:\/\/twitter.com\/FBISeattle?\">@fbiseattle<\/a> <a href=\"https:\/\/twitter.com\/IRS_CI?\">@irs_ci<\/a><br \/>  Link to Captured Poster: <a href=\"https:\/\/t.co\/eFRwF6c2eT\">https:\/\/t.co\/eFRwF6c2eT<\/a><br \/>  Details: <a href=\"https:\/\/t.co\/XeuixTV6AC\">https:\/\/t.co\/XeuixTV6AC<\/a> <a href=\"https:\/\/t.co\/lYuI6j0voL\">pic.twitter.com\/lYuI6j0voL<\/a><\/p>\n<p>\u2014 FBI Los Angeles (@FBILosAngeles) <a href=\"https:\/\/twitter.com\/FBILosAngeles\/status\/1802872366709551186?\">June 18, 2024<\/a><\/p>\n<\/blockquote>\n<p>In January 2023, a federal grand jury indicted McDonald on one count of securities fraud, one count of wire fraud, three counts of investment adviser fraud, and two counts of engaging in monetary transactions in property derived from unlawful activity.<\/p>\n<div id=\"firefly-poll-container\">\n<p>Do you trust the mainstream media?<\/p>\n<\/p><\/div>\n<p>McDonald was the CEO and chief investment officer of Hercules Investments LLC and Index Strategy Advisors Inc.<\/p>\n<p>In 2020, the release said, he positioned clients\u2019 investments to capitalize on what he expected to be a post-pandemic <a href=\"https:\/\/www.westernjournal.com\/wall-street-veteran-recession-inevitable-us-economic-decline-will-begin-2024\/\" target=\"_blank\" rel=\"noopener\">stock market<\/a> drop. Hercules clients lost between $30 million and $40 million. According to the release, 2020 ended with clients upset about the losses.<\/p>\n<p>In 2021, McDonald began raising money that the release said was spent on such things as a Porsche and designer clothes.<\/p>\n<p>The <a href=\"https:\/\/www.sec.gov\/files\/litigation\/complaints\/2022\/comp25515.pdf\" target=\"_blank\" rel=\"noopener\">SEC complaint<\/a> said that in two separate schemes, \u201cMcDonald fraudulently raised approximately $5.1 million from about 23 investors and clients, misappropriating more than $1.5 million in investor money to fund his lavish lifestyle and making at least $1.4 million in Ponzi-like payments to investors.\u201d<\/p>\n<p>The complaint said that in one part of the scheme, $3.6 million was raised, but less than half was ever spent on trading.<\/p>\n<p>While sending investors false statements, \u201cMcDonald also used $1 million of \u2026 investor monies to fund his extravagant lifestyle, including purchasing luxury vehicles, paying rent on his luxury home, and hundreds of thousands of dollars on personal credit card charges, as well as to pay expenses associated with operating Hercules,\u201d the complaint said.<\/p>\n<p>In a second scheme, the complaint alleged, \u201cMcDonald falsely represented\u201d that investor funds \u201cwould be used to expand Hercules\u2019s business, but he lied about the firm\u2019s financial condition and failed to disclose that he had promised Hercules clients that the firm would repay earlier losses they had incurred as a result of bad trades McDonald had made in the fall of 2020.\u201d<\/p>\n<p>\u201cMcDonald also lied to the Hercules client investors telling them that their funds would be spent on Hercules business operations or be used to engage in securities trading,\u201d the complaint said.<\/p>\n<p>\u201cIn fact, McDonald commingled their funds with his personal assets, and used the money to make payments to clients and investors and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fbi-investigating-massive-fraud-in-nonprofits-purportedly-providing-food-for-children-using-covid-19-funds\/\" title=\"FBI Investigating \u2018Massive Fraud\u2019 In Nonprofits Purportedly Providing Food For Children Using COVID-19 Funds\">pay personal expenses<\/a>, including purchasing a Porsche,\u201d the complaint said.<\/p>\n<p>The news release said that if McDonald is convicted on all charges, he could face a \u201cstatutory maximum sentence of 20 years in federal prison for each securities fraud and wire fraud count, up to 10 years in federal prison on the monetary transactions derived from unlawful activity count, and up to five years in federal prison on the investment adviser fraud count.\u201d<\/p>\n<hr>\n<div>\n<p><b><i>A Note from Our Deputy Managing Editor:<\/i><\/b><\/p>\n<p><i><span>\u201cWe don\u2019t even know if an election will be held in 2024.\u201d Those 12 words have been stuck in my head since I first read them. <\/span><\/i><\/p>\n<p><i><span>Former Lt. Gen. Michael Flynn recently made that comment to Floyd Brown, founder of The Western Journal. <\/span><\/i><\/p>\n<p><i><span>And if the leftists and the elites get their way, that\u2019s exactly what will happen \u2014 no real election, no real choice for the Electoral College, and no real say for the American people. <\/span><\/i><\/p>\n<p><i><span>The Western Journal is fighting to keep that from happening, but we can\u2019t do it alone.<\/span><\/i><\/p>\n<p><i><span>We work tirelessly to expose the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/watch-rep-anna-paulina-luna-scolds-dems-waving-ukrainian-flags-after-vote-put-those-damn-flags-away\/\" title=\"Video: Rep. Anna Paulina Luna Criticizes Democrats Waving Ukrainian Flags - 'Remove Those Flags!\">lying leftist media<\/a> and the corrupt America-hating elites.<\/span><\/i><\/p>\n<p><i><span>But Big Tech\u2019s stranglehold is now so tight that <\/span><\/i><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>without help<\/span><\/i><\/a><i><span>  from you, we will not be able to continue the fight. <\/span><\/i><\/p>\n<p><i><span>The 2024 election is literally the most important election for every living American. We have to unite and fight for our country, otherwise we will lose it. And if we lose the America we love in 2024, we\u2019ll lose it for good. Can we <\/span><\/i><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>count on you<\/span><\/i><\/a><i><span>  to help? <\/span><\/i><\/p>\n<p><i><span>With you we will be able to field journalists, do more investigative work, expose more corruption, and get desperately needed truth to millions of Americans. <\/span><\/i><\/p>\n<p><i><span>We can do this only with your help. Please don\u2019t wait one minute.<\/span><\/i><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>  Donate right now<\/span><\/i><\/a><i><span>.<\/span><\/i><\/p>\n<p><i><span>Thank you for reading,<\/span><\/i><\/p>\n<p><i><span>Josh Manning<\/span><\/i><\/p>\n<p><i><span>Deputy Managing Editor<\/span><\/i><\/p>\n<p><i><span>P.S. Please <\/span><\/i><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>stand with us<\/span><\/i><\/a><i><span>  today.<\/span><\/i><\/p>\n<\/p><\/div>\n<div id=\"author-info-44685\">\n<p><a href=\"https:\/\/www.westernjournal.com\/author\/russdavis\/\">  <\/a> <\/p>\n<div>\n<p><label for=\"summary-tab-radio-44685\">Summary<\/label><label for=\"more-info-tab-radio-44685\">More<span> Biographical Information<\/span><\/label><label for=\"posts-tab-radio-44685\">Recent<span> Posts<\/span><\/label><label for=\"contact-tab-radio-44685\" onclick=\"if( typeof grecaptcha=='undefined' ) { let cap_s=document.createElement( 'script' ); cap_s.src='https:\/\/www.google.com\/recaptcha\/api.js?render=6LeJFcsUAAAAAPsIEqvB1EebWbZfqRUe6ebMpGy7'; document.body.appendChild( cap_s ); }\">Contact<\/label><\/p>\n<div>\n<p>Jack Davis is a freelance writer who joined The Western Journal in July 2015 and chronicled the campaign that saw President Donald Trump elected. Since then, he has written extensively for The Western Journal on the Trump administration as well as foreign policy and military issues.<\/p>\n<\/p><\/div>\n<div>\n<p>  Jack Davis is a freelance writer who joined The Western Journal in July 2015 and chronicled the campaign that saw President Donald Trump elected. Since then, he has written extensively for The Western Journal on the Trump administration as well as foreign policy and military issues. <br \/> Jack can be reached at jackwritings1@gmail.com. <\/p>\n<p>  Location <\/p>\n<p>  New York City <\/p>\n<p>  Languages Spoken <\/p>\n<p>  English <\/p>\n<p>  Topics of Expertise <\/p>\n<p>  Politics, Foreign Policy, Military &#038; Defense Issues <\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal authorities have finally apprehended James Arthur McDonald Jr., a former financial expert frequently featured on CNBC, after over two years as a fugitive. McDonald faced charges of fraud, ending his long evasion of law enforcement<\/p>\n","protected":false},"author":661,"featured_media":2270455,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/06\/CNBC-Fugitive.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-2270454","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/06\/CNBC-Fugitive.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2270454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/661"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2270454"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2270454\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2270455"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2270454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2270454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2270454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}