Jeff Smith 4 p.m., Dec. 20
SEC Says Radio's Ray Lucia Spread Misleading Information
The Securities and Exchange Commission (SEC) today (Sept. 5) charged San Diego-based financial radio personality Ray Lucia Sr. with spreading misleading information about his "Buckets of Money" strategy. In this strategy, which Lucia touts on the radio, and about which he has written books, people approaching or in retirement segment their funds in three separate "buckets" -- income, safety, and growth. The SEC says Lucia has spread misleading information about the strategy at a series of investment seminars that were promoted on the radio show.
According to the securities agency, Lucia said that the Buckets of Money strategy had been "backtested," or subjected to historical data to calculate how it would have performed had it been used in prior periods, such as bear markets. But, claims the SEC, Lucia and his then-company "performed scant, if any, actual backtesting of the Buckets of Money strategy." The SEC claims Lucia violated several sections of securities statutes. The SEC's enforcement division is seeking financial penalties and other remedial action in the proceedings.