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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.

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Comments

Visduh Sept. 5, 2012 @ 10:56 a.m.

While I never cared for the guy's manner of delivery, and thought he was a sort of blowhard, I didn't think he was making wild claims. And, from time to time, when I listened closely to his responses to callers, thought he was very careful to get it right and give good advice. But you just never know, because he was recently putting a disclaimer on his radio spots that he was not a rep for his own firm, or some such piece of arcana.

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Don Bauder Sept. 5, 2012 @ 11:11 a.m.

The only times I heard his shows were times I was on it. That would have been in the late 1990s -- maybe 3 or 4 times. I have interviewed him for a couple of Reader pieces -- the last one on non-traded REITs not long ago. He did well with his advisory firm, then turned it over to his son to concentrate on his media appearances. Best, Don Bauder

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Don Bauder Sept. 6, 2012 @ 9:12 a.m.

LUCIA RESPONDS: Radio personality Ray Lucia Sr. has responded to the SEC's charges on his website. Among several things, he says that he stopped making the disputed claims about Buckets of Money in his presentations two years ago when the SEC audit and investigation began. He says he repeatedly rejected settlement offers from the SEC and wants an early hearing on the charges. He says the SEC is not alleging that any investors lost any money because of the Buckets of Money strategy. Best, Don Bauder

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Truthtime Sept. 7, 2012 @ 7:37 a.m.

My mother has been a client, for many years, of the firm that Mr. Lucia refers people to. He does not have clients himself, since that would be conflict of interest. She has done just fine with her portfolio and the system works for her. Sad that people take an inflammatory headline and assume someone is guilty before even investigating what is being said. The fact is, if anyone accusing him cares about the facts, that what the SEC is claiming is a well-accepted assumption rate. Look it up and read the actual data before blatantly assuming someone is a "fraud" !!!

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Don Bauder Sept. 7, 2012 @ 8:22 a.m.

I don't think readers of this blog have assumed Lucia is guilty. That sentiment hasn't been expressed here, and I have not picked it up in phone calls and emails I have received. I am not surprised that your mother has done well using Lucia's strategy. Similar investment strategies are used by a large percentage of financial planners who work for people heading into retirement, or in retirement. Best, Don Bauder

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Duhbya Sept. 7, 2012 @ 8:25 a.m.

Step away from the keyboard, Truthtime. If it's truth you're after, consider this: the sole mention of the word "fraud" on this page was by you.

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Don Bauder Sept. 7, 2012 @ 9:25 a.m.

Yes, nobody else has used the term "fraud." The SEC didn't use the term "fraud" in its press release. It accused Lucia of "spreading misleading information." Best, Don Bauder

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SurfPuppy619 Sept. 7, 2012 @ 12:53 p.m.

Step away from the keyboard,...

OK, that is going into my little black book of one liners....step away from the keyboard!~

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Don Bauder Sept. 7, 2012 @ 1:27 p.m.

"Step away from the keyboard": that's what a concert pianist does as applause rings out and she prepares to take her bows. Best, Don Bauder

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Duhbya Sept. 8, 2012 @ 12:54 p.m.

I pulled that one from my "Richard Cranium" file, SP. You're welcome to use it.

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Don Bauder Sept. 8, 2012 @ 2:46 p.m.

What is a "Richard Cranium" file? Pardon my ignorance. Best, Don Bauder

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Don Bauder Sept. 8, 2012 @ 4:23 p.m.

You will probably have to explain to me what it means. Best, Don Bauder

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Don Bauder Sept. 9, 2012 @ 7:18 a.m.

Burwell comes through again. The old man (me) sees the light. People have used that pejorative on me (the two words in parentheses). Best, Don Bauder

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Duhbya Sept. 9, 2012 @ 9:06 a.m.

As have we all, I surmise. Spanish version is Ricardo Cabeza.

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Don Bauder Sept. 9, 2012 @ 1:25 p.m.

Now I know how to vilify in Spanish. Best, Don Bauder

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