September 5, 2012 Comments (0) Blog, Securities Fraud

Ray Lucia, Sr. charged by SEC for allegedly misleading investors.

According to reports, Ray Lucia Sr. has been charged by the Securities and Exchange Commission for spreading misleading information about his “Buckets of Money” strategy at a series of investment seminars.

The SEC’s Division of Enforcement alleges Lucia claimed that the wealth management strategy he promoted at the seminars had been empirically “backtested” over actual bear market periods.

Lucia, who lives in the San Diego area, and his company formerly named Raymond J. Lucia Companies Inc. (RJL) allegedly presented a lengthy slideshow at the seminars indicating that extensive backtesting proved that the Buckets of Money strategy would provide inflation-adjusted income to retirees while protecting and even increasing their retirement savings. However despite the claims they made publicly, Lucia and RJL allegedly performed scant, if any, actual backtesting of the Buckets of Money strategy.

According to the SEC’s order instituting administrative proceedings against Lucia and RJL, they held the seminars highlighting their Buckets of Money strategy in an effort to obtain advisory clients who would be charged fees in return for their advisory services. They purportedly promoted the seminars on Lucia’s radio show and on Lucia’s personal and company Web sites.

According to the SEC’s order, Lucia and RJL also failed to maintain adequate records of the backtesting as they were required to do under an SEC rule. A pair of two-page spreadsheets was apparently the only documentation of their backtesting calculations, and those spreadsheets failed to duplicate their advertised investment strategy.

Upon information and belief, the Buckets of Money strategy also sometimes included investing clients in various non-traded REITs.  Due to the risks and illiquidity of non-traded REITs, these investments are arguably unsuitable for conservative, retired investors.

The White Law Group continues to investigate potential arbitration claims against Ray Lucia and his affiliated broker-dealers.  To discuss your Ray Lucia investments with an experienced securities attorney, please call The White Law Group at 312/238-9650 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.  The firm represents investors in FINRA arbitration claims against their financial advisor or broker-dealer.

For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.

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