A financial analyst and regular CNBC pundit has been arrested after three years as a fugitive in a white-collar crime case.
James McDonald was arrested at a home in Port Orchard, Washington, near Seattle, on Saturday, according to the US Attorney’s Office, Central District of California.
McDonald, 52, has been on the run since 2021 when he failed to attend a hearing with the US Securities and Exchange Commission (SEC) regarding allegations he defrauded investors.
Prosecutors say McDonald told someone that he planned to vanish ahead of his disappearance.
The former pundit was indicted in January 2023. He faces three counts of investment adviser fraud, two counts of engaging in monetary transactions in property derived from unlawful activity, one count of securities fraud and one count of wire fraud.
The charges come after prosecutors say his company, Hercules Investments LLC, lost tens of millions following a risky move by McDonald in 2020.
Prosecutors said the analyst then failed to disclose these losses and asked for millions from investors as he “misrepresented how the funds would be used.”
McDonald is also accused of misrepresenting his other company, Index Strategy Advisors Inc (ISA). Prosecutors claim he falsely represented ISA as a registered adviser and sent false account statements to clients of the company.
The former pundit made an initial court appearance on Monday in Tacoma, Washington. He will be moved to Los Angeles, California in the coming weeks to face charges. McDonald could face up to 75 years in prison if convicted on all counts.
The SEC also filed a civil case against McDonald in 2022, charging him and Hercules Investments with violating federal securities law. In April, Judge Percy Anderson ruled McDonald must pay $3.8 million, the same amount as his net profits gained through the alleged fraud.
McDonald often appeared on CNBC to speak on the stock market. In June 2021, he appeared on the network to talk about economic recovery from the pandemic.
