By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Pew PatriotsPew PatriotsPew Patriots
Notification Show More
Font ResizerAa
  • Home
  • News
  • Tactical
  • Guns and Gear
  • Prepping & Survival
  • Videos
Reading: Former CNBC analyst who betrayed investors sentenced in multimillion-dollar fraud scheme
Share
Font ResizerAa
Pew PatriotsPew Patriots
  • News
  • Tactical
  • Guns and Gear
  • Prepping & Survival
  • Videos
Search
  • Home
  • News
  • Tactical
  • Guns and Gear
  • Prepping & Survival
  • Videos
Have an existing account? Sign In
Follow US
Former CNBC analyst who betrayed investors sentenced in multimillion-dollar fraud scheme
News

Former CNBC analyst who betrayed investors sentenced in multimillion-dollar fraud scheme

Jimmie Dempsey
Last updated: August 4, 2025 9:05 pm
Jimmie Dempsey Published August 4, 2025
Share
SHARE

NEWYou can now listen to Fox News articles!

A former television financial analyst accused of defrauding investors out of millions of dollars and spending years on the run was sentenced to five years in prison, the Justice Department said Monday. 

James Arthur McDonald Jr., 53, is also expected to be ordered to pay restitution to his victims following his April 7 guilty plea for securities fraud.

“To his victims, [McDonald] seemed to embody the American Dream,” prosecutors argued in a sentencing memorandum. “But looks can be deceiving, and as [McDonald’s] victims learned, their trust had been betrayed.”

FORMER NBA STAR GILBERT ARENAS INDICTED IN ILLEGAL GAMBLING SCHEME WITH SUSPECTED CRIMINAL FIGURES, DOJ SAYS

McDonald, who frequently appeared as a guest on CNBC as a financial analyst, was arrested in June 2024 at his Florida home after spending years on the run and extradited back to California, where he was the CEO and chief investment officer of Los Angeles-based Hercules Investments LLC, and Index Strategy Advisors Inc.

Prior to fleeing, McDonald also appeared to have terminated his previous phone and email accounts and told one person that he planned to “vanish,” according to court documents.

In 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,” prosecutors said. 

He misrepresented how the funds would be used and failed to disclose the “massive losses” Hercules previously sustained.

CALIFORNIA MAN ACCUSED BY FEDS OF SCAMMING $2 MILLION FROM PEOPLE ON DATING APPS

James McDonald in a screenshot

“He misappropriated most of those funds in various ways, including spending $174,610 at a Porsche dealership and transferring $109,512 to the landlord of a home McDonald was renting in Arcadia,” the Justice Department said. 

In total, McDonald lost around $3 million of his clients’ money, prosecutors said. 

With his other company, McDonald allegedly sent 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.” 

 

In total, the U.S. Securities and Exchange Commission said McDonald “raised more than $5.1 million from 23 investors and clients, and misappropriated more than $2.9 million of those funds for personal expenses and Ponzi-like payments to earlier investors.” 

A federal arrest warrant was issued for McDonald in 2022 after he was charged with securities fraud.

Fox News Digital’s Greg Norman contributed to this report. 

Read the full article here

You Might Also Like

Erika Kirk shows how we should forgive, ‘because it was what Christ did’

Popular beach destination requires tourists to book spots via app or website

How the ‘sexiest doctor alive’ transformed viral fame into health education for millions

Ella Emhoff feels ‘trauma’ returning to NYC polling station where she voted for Harris

Madden NFL 26 release highlights Saquon Barkley’s apparent Trump-style touchdown celebration dance

Share This Article
Facebook Twitter Email Print
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

We Recommend
American trust in media reaches record low in new Gallup poll
News

American trust in media reaches record low in new Gallup poll

Jimmie Dempsey Jimmie Dempsey October 2, 2025
Military families seek out food assistance amid shutdown anxiety
Trump Announces “TrumpRx” Website and Pfizer Deal to Slash Drug Prices, Boost U.S. Manufacturing
These Pistols Are Flying Off Gun Store Shelves in 2025 — Find Out What’s Hot Now!
Tennessee set to execute first woman in more than two centuries
New Guns And Gear October 2025
11 Things You Should Have At All Times
Prepping & Survival

11 Things You Should Have At All Times

Jimmie Dempsey Jimmie Dempsey October 2, 2025
Paramount set to announce deal for Bari Weiss to join CBS News: report
News

Paramount set to announce deal for Bari Weiss to join CBS News: report

Jimmie Dempsey Jimmie Dempsey October 2, 2025
Trump declares drug cartels operating in Caribbean unlawful combatants
Tactical

Trump declares drug cartels operating in Caribbean unlawful combatants

Jimmie Dempsey Jimmie Dempsey October 2, 2025
Pew Patriots
  • News
  • Tactical
  • Prepping & Survival
  • Videos
  • Guns and Gear
2024 © Pew Patriots. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?