Former TV financial analyst turned fugitive arrested in Port Orchard

LOS ANGELES, Calif. — A financial analyst who made guest appearances on CNBC’s financial television news network before becoming a fugitive for defrauding investors has been arrested in Port Orchard.

On Monday, the Attorney General of the Central District of California announced that 52-year-old James Arthus McDonald Jr. from California had been arrested on Saturday in Port Orchard. Mcdonald is expected to face federal criminal charges in the U.S. District Court in Tacoma.

McDonald became a fugitive in November 2021 when he failed to show up and testify with the SEC after allegations of fraud were brought up.

He attempted to disappear by getting rid of his phone and email, telling someone he planned to “vanish,” according to court documents. He was considered a missing fugitive until he was arrested last Saturday.

This led to a Los Angeles grand jury indicting McDonald on seven counts that included wire fraud, investor adviser fraud, and transactions that involved property from unlawful activity.

According to the district attorney, McDonald made risky investments, losing millions of investor dollars and failing to properly disclose the losses when he sought to raise additional money for a new mutual fund.

McDonald also reportedly used money raised at a Porsche dealership to cover the cost of housing fees and other personal expenses, as well as used an unregistered investment firm and false statements to deceive investors.

If found guilty, McDonald could likely spend decades in federal prison.

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