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White Law Group has filed a $250,000 arbitration claim against First Allied Securities, the former firm of radio/TV investment personality Ray Lucia. The complaint alleges that First Allied put an investor in non-traded real estate investment trusts, controversial vehicles that bring brokers fat commissions but hurts customers often who can't unload the paper. Lucia has touted the non-traded real estate investment trusts on the air. In September, the Securities and Exchange Commission charged Lucia with spreading misleading information about his "Buckets of Money" investment strategy. The agency charged that Lucia in seminars had said the strategy was backtested -- that is, it was applied against historical data to see if how well it would have worked in past markets. The agency said there was "scant if any" backtesting. Lucia disputes the charge.

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Comments

Javajoe25 Nov. 15, 2012 @ 10:49 p.m.

Yea, that backtesting can really cause pain, Don, from the lower lumbar all the way down to the wallet pocket.

I hope the White Law Group gets every penny they are asking for and that others are encouraged to literally follow suit. Maybe those who suffer from aching backtests should try praying to Santa Lucia from now on, and stay clear of Ray and his Buckets of Bulltickey.

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Don Bauder Nov. 16, 2012 @ 5:43 a.m.

JavaJoe: See my column of Oct. 19, 2011, "Graybeards, Beware." It featured Lucia. The Financial Industry Regulatory Authority (FINRA) issued a warning about non-traded REITs, saying that front-end fees can be 10% to 15%, and while the income appears very generous, in many cases the investor is getting his or her own money back. And, of course, the non-traded REITs have a liquidity problem. These investments can be much better for the broker than for the investor. This arbitration has been filed with FINRA. Best, Don Bauder

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Burwell Nov. 15, 2012 @ 11:57 p.m.

This scandal will be the ruin of Ray Lucia and his investment strategies.

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Don Bauder Nov. 16, 2012 @ 6:01 a.m.

Burwell: Lucia is fighting the SEC charges. You are right in pointing out that such allegations certainly don't help a commentator's reputation. Lucia wrote a book titled "Buckets of Money" and preaches the gospel regularly. Best, Don Bauder

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