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Ray Lucia Buckets of Money (BOM)

Good news for those clients of Ray Lucia Sr. who are contemplating filing a FINRA arbitration claims or lawsuits against him. The SEC fined him and his firm $300,000 for spreading misleading information about his “buckets of money” strategy. The SEC judge, Cameron Elliot, said slideshows employed by Lucia failed to use actual historical data, like adviser fees and dividend rates for real estate investment trusts (REITs) he recommended, to show how fictional portfolios following his advice performed in past bear markets.” He knew his fiduciary obligations as an investment adviser and he knew that he was violating them by misleading prospective clients for the purpose of selling REITs,” the ruling said. “He … became very financially successful as a result.” Lucia, with Lucia Financial and formerly with First Allied and Securities America, has at least eight customer complaints on his CRD for various alleged sales practice violations.

The SEC allegations are disclosed as the following:

“On his radio show and website, at seminars, and in his books, lucia discusses his proprietary wealth management strategy, which he calls “buckets of money” (“bom”). Lucia’s comments are not limited to discussions of the bom strategy, but a recurring theme is that the bom strategy will enhance one’s ability to retire in comfort and safety, protect the money one has spent a lifetime accumulating, and generate inflation-adjusted income for life. To support their claims about the bom strategy, respondents claimed to have extensively “backtested” it. Backtesting is generally understood as the process of evaluating a strategy, theory, or model by applying it to historical data. Backtesting calculates how a strategy would have performed if it had actually been applied in the past. Thus, a backtest must utilize the actual data from the time in question in order to get an accurate result.”

For clients of Ray Lucia investors who wish to sue him for investment losses must do so through the FINRA arbitration process. it usually takes about 12 months from beginning to end. To learn about legal options against him, please contact us for a no cost evaluation of your case by a lawyer.

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