The financial-planning media are abuzz about the departure of San Diegan Derek Bruton from LPL Financial, which has headquarters in San Diego and Boston, and has 17,000 financial advisers under its wing.

Publications such as InvestmentNews,, and are discussing the way in which LPL publicly discussed the departure of Bruton, a top-level executive. (RIA stands for registered investment advisor.) In a document filed with the Securities and Exchange Commission, LPL said Bruton was permitted to resign "in light of the company's concern about [his] interactions with other employees." Then LPL added that the separation was not related to the company's performance. Hmm… Employee-relations specialists interviewed by the publications said this was a very unusual way to announce a departure.

Then, Bruton joined San Diego's Lucia Capital. This company, which, like LPL, gives out financial advice, calls itself a "partial successor" to Raymond J. Lucia Companies. Raymond Lucia Sr., a financial advice–giver on the radio, sold the Raymond J. Lucia Companies to his son, Raymond Lucia Jr., in 2010. The senior Lucia intended to concentrate on his media career.

But then he got in trouble. In 2012, the Securities and Exchange Commission charged that at investment seminars, the nationally syndicated radio personality was spreading false information to potential clients. Specifically, Lucia told audiences that his "Buckets of Money" investment strategy, about which he had written books, was not "backtested" as he claimed. Backtesting involves figuring how a strategy would have done in prior market periods. Last year, the senior Lucia was banned from the securities business and fined.

Raymond Lucia Jr. says his father is no longer connected with the organization. But a reporter called the senior Lucia's radio show and asked a receptionist to recommend a financial planning firm. The receptionist recommended Lucia Capital. The junior Lucia insisted that the receptionist had made a mistake.

The publication also pointed out that Lucia Capital touts its "Bucket Strategy," which smacks of the senior Lucia's "Buckets of Money" plan.


Visduh Aug. 3, 2014 @ 8:02 p.m.

After the sale, old Ray went to great lengths on radio to distance himself from his former firm. He was being very careful, to say the least. If young Ray wants to present a squeaky-clean image, he needs to avoid things like hiring this questionable individual. It all indicates that there was no clean break with dad, and that anyone who does business with the firm had best beware and watch them closely.


Don Bauder Aug. 3, 2014 @ 10:21 p.m.

Visduh: It appears the so-called clean break is a bit of a myth. Best, Don Bauder


Don Bauder Aug. 4, 2014 @ 7:46 a.m.

Murphyjunk: That adage appears to be relevant. Best, Don Bauder


ImJustABill Aug. 4, 2014 @ 8:52 p.m.

Well, admittedly I'm being unfair and jumping to conclusions - but from the wording of the LPL notice it sure sounds like Bruton did something either highly inappropriate (sexual harassment, violent actions or threats) or illegal (bad enough to potentially get LPL in big hot water). Again, maybe it was just a disagreement amongst senior management. But sounds like something worse.


Don Bauder Aug. 5, 2014 @ 6:32 a.m.

ImJustABill: The wording of the SEC filing on Bruton's departure was very curious indeed. Best, Don Bauder


Visduh Aug. 5, 2014 @ 7:43 a.m.

I'd guess sexual harassment or serial affairs. But the other possibilities are endless.


Don Bauder Aug. 5, 2014 @ 2:07 p.m.

Visduh: There is some reason LPL used this wording, but it certainly sounds like something inappropriate with other employee(s). Best, Don Bauder


Burwell Aug. 5, 2014 @ 11:41 p.m.

It looks like Bruton put his estate up for sale now that the LPL teat is dry. By all appearances he's been living pretty damn high off the hog. He's got real marble in his house. Not that Travertine crap like the rest of us have.


Don Bauder Aug. 6, 2014 @ 6:23 a.m.

Burwell: He had a top job at LPL. Maybe he won't be paid as much with Lucia. Excellent sleuthing. Best, Don Bauder


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