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Ray Lucia, "Buckets Of Money" Author Charged By SEC

On September 5, 2012, the Securities and Exchange Commission charged Ray Lucia, Sr., a nationally syndicated radio personality and author of an investing strategy "Buckets of Money", with misleading investors. The SEC release can be viewed here and the SEC Order may be viewed here. Lucia, who is from the San Diego area, regularly touts his investment theory on radio shows and at seminars across the country.

The SEC is taking issue with Lucia's claims that his Buckets of Money strategy has been extensively backtested and proven to provide inflation adjusted income to retirees while protecting and even increasing their retirement savings. Per the regulators, seminar attendees gained a false sense of comfort about the Buckets of Money strategy. According to Michele Layne, Regional Director of the SEC's Los Angeles office, " The so-called backtests weren't really backtests, and the strategy wasn't proven as they claimed."

The SEC order alleges that Lucia did not maintain records on the purported backtesting. A pair of two-page spreadsheets was the only documentation of the backtesting calculations and they failed to duplicate the advertised investment strategy.

Mr. Lucia's CRD, which may be viewed on FINRA's Broker Check website, indicates that at least two customers have complained in the past that real estate investments made in their accounts were inappropriate.

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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.