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Media personality accused of duping investors out of millions

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You’ve worked hard to build your wealth. The last thing you deserve is a greedy investment broker or advisor to cheat you out of your future. This sad scenario happens to many people each year, and appears to have just happened again.

According to reports, a popular investment advisor has been charged with securities fraud for allegedly duping multiple investors out of millions of dollars. Federal prosecutors also claim that the advisor misappropriated funds and lied to his clients about the success of his investments.

Where the investments went wrong

According to prosecutors, James Arthur McDonald, Jr., an investment advisor and commentator on CNBC, bet against the U.S. economy in the midst of the health and economic crisis and the 2020 presidential election. As a result, he ended up losing his clients as much as $40 million.

McDonald then tried to recover his losses by gaining new capital from clients. In order to do so, McDonald avoided telling his clients and prospective clients about his firm’s recent losses, and he allegedly lied to those individuals about how newly acquired investment funds would be used. According to prosecutors, McDonald didn’t tell these investors that the money was going to be used to offset the massive losses that his firm had seen. Instead, McDonald told them was starting up a new mutual fund.

Making matters worse, prosecutors allege that McDonald then misappropriated those newly acquired funds, allegedly spending hundreds of thousands of dollars on cars, his rental property and clothing. Overall, McDonald is accused of fraudulently raising more than $5 million from investors.

What’s at stake in this kind of case?

For individuals who have been accused of securities fraud, the risk of criminal conviction is real. For example, the man in the case mentioned above could face up to 20 years in prison if he is convicted.

However, criminal penalties don’t do much to remedy the financial losses that have been suffered by victims of fraud. Yet, an investor who is subjected to fraud can face financial ruin. In order for these investors to recoup their losses, they may need to pursue a civil lawsuit against the party that cheated them out of their money.

Pursuing your fraud case

If you think that you’ve been taken advantage of by an investment professional, then you need to investigate the matter to make sure that you have evidence to back up your claim. This may require a lot of effort on the front end, but rest assured that it’s necessary if you want to position your claim for success.

This prep work may include any of the following:

  • Gathering communications that you had with the investment professional
  • Subpoenaing records pertaining to your investment
  • Speaking to employees of the investment firm to figure out what information they know
  • Researching statutory and case law to see how they apply to your set of circumstances

There’s certainly a lot to do, and this is a nuanced area of the law that many people find confusing. That’s why you might find it helpful to have an experienced legal professional on your side as you navigate your case. Hopefully, you can take comfort knowing that you have an advocate on your side who will fight to have your voice be heard and to secure a fair outcome.