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The Securities and Exchange Commission (SEC) today (July 8) banned San Diego-based radio personality Ray Lucia from associating with an investment adviser, broker or dealer, revoked his license and that of his former company, and slapped both with a fine -- $50,000 to Lucia and $250,000 to his former firm. On Sept. 5 of last year, as reported here, the securities agency charged the syndicated radio host with spreading misleading information about his "Buckets of Money" strategy (about which he has written books.) The SEC charged that Lucia misleadingly claimed that this strategy had been "backtested," or subjected to historical data to see how it would have performed in earlier market conditions. Lucia denied the charges and a series of hearings ensued.
In issuing the penalties today, the SEC said that in slide shows before potential investors, Lucia had misrepresented historical inflation rates, the impact of investment adviser fees, returns on real estate investment trusts (REITs), and reallocation of assets in fictional portfolios. Lucia began hosting the Ray Lucia Show in 1990, and the program became nationally syndicated ten years later. In 2010, the show went on television on the BIZ Network. Lucia's former company, Raymond J. Lucia Companies, got an unfavorable audit in 2007 from a company in which it had a network agreement. At its peak, Lucia's family of companies employed 100, and had gross revenues of $20 million, according to the SEC. In 2010, Lucia sold his main company to his son.
The Securities and Exchange Commission (SEC) today (July 8) banned San Diego-based radio personality Ray Lucia from associating with an investment adviser, broker or dealer, revoked his license and that of his former company, and slapped both with a fine -- $50,000 to Lucia and $250,000 to his former firm. On Sept. 5 of last year, as reported here, the securities agency charged the syndicated radio host with spreading misleading information about his "Buckets of Money" strategy (about which he has written books.) The SEC charged that Lucia misleadingly claimed that this strategy had been "backtested," or subjected to historical data to see how it would have performed in earlier market conditions. Lucia denied the charges and a series of hearings ensued.
In issuing the penalties today, the SEC said that in slide shows before potential investors, Lucia had misrepresented historical inflation rates, the impact of investment adviser fees, returns on real estate investment trusts (REITs), and reallocation of assets in fictional portfolios. Lucia began hosting the Ray Lucia Show in 1990, and the program became nationally syndicated ten years later. In 2010, the show went on television on the BIZ Network. Lucia's former company, Raymond J. Lucia Companies, got an unfavorable audit in 2007 from a company in which it had a network agreement. At its peak, Lucia's family of companies employed 100, and had gross revenues of $20 million, according to the SEC. In 2010, Lucia sold his main company to his son.