LOS ANGELES (AP) — A person who ran two California-based funding corporations and ceaselessly appeared as a TV monetary information analyst was charged Wednesday with securities fraud for allegedly bilking purchasers out of tens of millions of {dollars}, federal prosecutors stated.

James Arthur McDonald Jr., 50, was charged with a single fraud depend and will resist 20 years in jail if convicted, the U.S. legal professional’s workplace stated in a statement.

McDonald, who lived within the Los Angeles suburb of Arcadia, is believed to be in hiding, the assertion stated. It wasn’t instantly clear whether or not he had an legal professional who might communicate on his behalf.

Prosecutors allege that McDonald hid large monetary losses from some purchasers and used some funding cash for private bills, spending a few of it at a Porsche dealership and on a web site that sells designer menswear.

McDonald was CEO of Hercules Investments LLC of Los Angeles and Index Strategy Advisors Inc. of Redondo Beach, and ceaselessly appeared as an analyst on the CNBC monetary TV information community, authorities stated.

In late 2020, McDonald misplaced between $30 million and $40 million of Hercules consumer cash after adopting “a risky short position” primarily based on his mistaken prediction that the inventory market would drop due to the COVID-19 pandemic and the outcomes of the U.S. presidential election, the U.S. legal professional’s workplace stated.

In early 2021, McDonald “solicited millions of dollars’ worth of funds from investors in the form of a purported capital raise for Hercules but misrepresented how the funds would be used and failed to disclose the massive losses Hercules previously sustained,” the assertion stated.

Also on Wednesday, the U.S. Securities and Exchange Commission filed a civil criticism charging McDonald and Hercules with violations of federal securities regulation.

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