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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.

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Comments

Visduh July 8, 2013 @ 8:31 p.m.

Wow. I always thought he was a blowhard, but from time to time he came across as having some practical and steady advice for investors. I just didn't care for that high-pitched radio announcer style of half shout delivery that he used habitually. He had to be pretty stupid to give the SEC solid evidence of his misleading presentations. Most investment grifters manage to make all the claims verbally with enough ambiguity to avoid any claims that they gave misleading advice or sales pitches. Ray must have been so egotistical that he cast his Power Point pitches in stone, and hence the SEC had its case. Since he's still (or was still) on radio, I wonder what he'll have to say.

Ironically, Ray's daughter married the infamous Ryan Leaf, and did so after his career was on the skids. Is there some poetic justice in all of that?

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SurfPuppy619 July 8, 2013 @ 9:38 p.m.

Ray's daughter married the infamous Ryan Leaf,

LOL... I remember I linked the divorce docket here a few years back and someone, a regular commenter here- forgot who, went off on me for it!!!!!!!!!

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Don Bauder July 9, 2013 @ 6:07 a.m.

SurfPup: Yes, Ray's daughter was married to Ryan Leaf, who then worked for Ray in financial planning. The marriage didn't last long. Best, Don Bauder

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Don Bauder July 9, 2013 @ 2:21 p.m.

aardvark: As I recall, the marriage took place after it was pretty clear that Leaf was going to flame out. Best, Don Bauder

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Don Bauder July 9, 2013 @ 6:05 a.m.

Visduh: You make a good point. It's not a good idea to put misleading information in a PowerPoint presentation that is pitched to potential investors. I don't know whether he will stay on radio and TV -- my guess is he won't, at least for now. Nor will he be interviewed on air by Sean Hannity as much as in the past. Best, Don Bauder

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aardvark July 9, 2013 @ 1:58 p.m.

Don: He was on 1360am this morning.

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Don Bauder July 9, 2013 @ 2:23 p.m.

aardvark: I am not surprised he was on radio this morning. It would be up to the syndicator or individual stations to take him off air. Best, Don Bauder

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MURPHYJUNK July 9, 2013 @ 7:19 a.m.

I always wonder that if these "advisors" advice was so good, why do they share it, or get others to use their money.

seems to me keeping silent and investing would be the way to go for them.

I just don't think they are all that altruistic.

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Don Bauder July 9, 2013 @ 8:18 a.m.

Murphyjunk: Yes. You must cock an eyebrow at those who make their money peddling tips in the media and particularly at seminars. If they really had a foolproof investing method, they would keep it to themselves. One real estate guru who was widely celebrated around the U.S., and who lived in Rancho Santa Fe, kept touting his expertise while he went through bankruptcy. I have forgotten his name. I wrote about him in the mid-1990s, if memory serves me right. Another outfit, based in the state of Washington, had a surefire method for beating the stock market. People paid big bucks to go to the lessons. But the company had some stock outstanding, and thus had to report financial results. It was losing money on its own portfolio. I have forgotten its name, too, but wrote several pieces about it circa mid-1990s. Best, Don Bauder

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Don Bauder July 10, 2013 @ 12:23 p.m.

KOGO STICKS WITH LUCIA:KOGO AM 600, which airs Lucia's show locally, will continue to air him, as will the syndicate that sends the program out to other stations, according to Channel 10. Lucia's attorney says an appeal of the SEC's decision is likely. Best, Don Bauder

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aardvark July 10, 2013 @ 1:16 p.m.

Clear Channel must be desperate for programming.

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Don Bauder July 10, 2013 @ 8:48 p.m.

aardvark: Clear Channel has had problems, as has the radio industry. Best, Don Bauder

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ImJustABill July 11, 2013 @ 3:43 a.m.

I think it's a pretty good deal for both Clear Channel and guys like Lucia. Show's like Lucia's are pretty much informercials for the product they are selling so I doubt if Clear Channel pays them much - if anything. And Lucia gets free advertising.

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Don Bauder July 11, 2013 @ 9:18 a.m.

ImJustABill: I have done several Reader pieces on Lucia. In one of them, the station admitted that Lucia supported his program through ads for his own firm. Originally, back in the 1990s, Lucia was named to replace Bill Holland because Lucia brought his own firm's advertising with him; Holland had no such advantage. I think you will find that most investment advice programs buy their way on to the air. Best, Don Bauder

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nativeSandiEgoX July 14, 2013 @ 4:59 p.m.

coach Rocky Lucia was a 'richard' at poway high. he was arrogant and things havent changed. he always thought he was right. he did, however, come from a real 'cool' family and should have plenty of support. it is too bad if there was fraud, but can we just forget about 'cryin ryan' leaf?? Please...........

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