Another TV Expert Busted: CNBC Analyst Sentenced for Fraud

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Another so-called financial “guru” bites the dust. Former CNBC analyst James Arthur McDonald is headed to prison for securities fraud after misusing client funds on luxury items—including a $174,000 Porsche and a six-figure home rental—before fleeing to Florida. He’s just the latest in a long line of slick-talking TV pundits who crash and burn after bad bets and worse ethics.
Chris breaks down how media personalities like McDonald (and even big names like John Corzine) use their platforms to mask incompetence and mislead investors. And why real financial professionals don’t give one-size-fits-all advice on national television. Financial advice isn’t entertainment—it’s a responsibility.

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it will have on everyday Americans. Author,
investment banker, consumer advocate, analyst and trader Chris Markowski.

Speaker 2 (00:16):
Another wizard of smart pundit in jail. Yeah, we got
former CNBC analyst James Arthur McDonald. He's gonna five years
in prison for securities fraud. Yeah, he used to be
on CNBC all the time. He ran this outfit called
Hercules what was it called Hercules Investments LLC. I see

(00:41):
some of these people oftentimes on CNBC, and I see
some of the things that they're saying, and they can
use some big words and talk a good game, but
oftentimes they really don't make much sense. And it didn't
take me long. I just go check out their adv
and see what they're all about, how much money they're managing,
and sometimes it's next to nothing. In this case, this guy, well,

(01:06):
he made some bad trades. He made some really really
bad bets, and he's not the first person to do that.
Former Senator John Corzine a former head of Goldman Sachs.
He was also governor of the state of New Jersey.
He won the largest financial bankruptcies in this country MF Global.

(01:31):
He went completely wrong as far as his trade was concerned,
and it took the entire company out, lost people of
fortune farmers. It was like again had a lot to
do with commodities as well. Well. What McDonald did is
he he ran, He ran, well, he you know, took
money and he used it as clients money on himself.

(01:53):
What did he buy here?

Speaker 1 (01:54):
Ah?

Speaker 2 (01:54):
Heah got himself a one hundred and seventy four thousand
dollars Porsche he made. I used one hundred and nine
thousand dollars on a house that he was renting. And
it's funny, not far in the center of Florida and Arcadia, Florida.
That's where he decided to hide out. But the thing
is is this guy only managed what about ten to

(02:17):
fifteen million dollars. That's it. That's it. I mean, get
a nice suit and all, but I mean that's that's
not a lot of money. Again, I I don't go
on CNB say I don't participate in what they do

(02:38):
simply because I do not. As you're well aware, I
do not give recommendations. No, I don't give recommendations unless
your client just that simple. I don't know you well enough,
and I'm like, I'm going to speak to the masses
of this country and what they should buy, sell and
hold when I don't know them, and the entire bit
is a racket. You know, what Jim Kramer does right, frankly,

(03:00):
is wrong. Is wrong. You shouldn't be giving advice like that.
I equate it to this, Okay, My business is a
profession here. Quite frankly, you don't see back surgeons. You
don't see back surgeons hosting programs on TV or on
the radio wherever it may be. People call it in. Gee,
you know, doc, I got some numbness in my fingers here.

(03:23):
You know, I got a little discompression. You know. Should
I have back surgery? Yeah? You should have back surgery.
What there's more to it than that, And that's why
I don't do that, not to mention the fact I've
been involved in it before. And what they try to
do is you get the little producer in your ear,
like wanting to get people riled up and arguing with
one another because it makes for good TV. What makes

(03:45):
for good TV doesn't make for great financial advice. As
we see time and time again. Watchdog on Wall street
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