A California federal judge on Monday sentenced former CNBC pundit James Arthur McDonald Jr. to five years in prison after he admitted to defrauding investors — including close friends — out of at least $2.7 million. The ruling closes a sordid chapter in a case the government described as a sophisticated fraud scheme.
U.S. District Judge Dale S. Fischer delivered the sentence, falling between the government’s request for 78 months and the defense’s push for a lighter 36-month term. She also tacked on three years of supervised release and a $100 special assessment, while restitution will be determined later.
A Fall From Television to Shackles
McDonald, once a frequent guest on CNBC and CEO of Los Angeles-based Hercules Investments LLC and Index Strategy Advisors Inc., appeared in court in prison garb and ankle shackles. He broke down in tears as he confessed to misusing funds entrusted to him.
“As painful as it is to admit, I betrayed them by misusing money they entrusted to me. I’m so sorry,” McDonald told the court.
The former executive had been a fugitive for nearly three years after skipping a U.S. Securities and Exchange Commission appearance, before being arrested in Washington state in June 2024. He pleaded guilty in February to one count of securities fraud under a plea deal.
