Customers of Ray Lucia Sr. Could Recover Losses Through Arbitration Following SEC Allegations

by InvestorLawyers on September 21, 2012

in Arbitration,California,Private Placements,Retirement,SEC,Securities Fraud,Suitability

Securities fraud attorneys are currently investigating claims on behalf of investors who suffered significant losses as a result of their investment with Ray Lucia Sr. and his affiliated broker-dealers. Reportedly, the Securities and Exchange Commission has charged Lucia and his company, formerly known as Raymond J. Lucia Companies Inc. (RJL), for using misleading information at a series of investment seminars when soliciting for his “Buckets of Money” strategy.

Customers of Ray Lucia, Sr. Could Recover Losses through Arbitration, Following SEC Allegations

According to the allegations issued by the SEC’s Division of Enforcement, Lucia claimed that this wealth management strategy had been thoroughly “backtested” over real bear market periods. He allegedly made these claims while promoting Buckets of Money at seminars where he presented a lengthy slideshow indicating that retires would receive inflation-adjusted income while protecting and increasing savings through his wealth management program. In truth, however, despite publicly made claims, little, if any, backtesting was done by RJL and Lucia on the Buckets of Money strategy.

These seminars were held in hopes of obtaining advisory clients, according to the SEC’s order which instituted administrative proceedings against RJL and Lucia. These clients would then be charged advisory services fees. Lucia’s radio show and personal and company website promoted the seminars.

Reportedly, RJL and Lucia did not adequately maintain records of backtesting, despite the SEC rule that required them to do so. A pair of two-page spreadsheets that did not accurately duplicate the investment strategy advertised, served as the only backtesting calculations documentation.

Stock fraud lawyers are especially concerned about the fact that various non-traded REIT investments were often included in the Buckets of Money strategy. While the Buckets of Money strategy was aimed at retirees, non-traded REITs are typically unsuitable for retired investors because of their inherent risks and illiquidity. The unsuitable recommendations of many non-traded REITs are currently under investigation by securities fraud attorneys.

If you suffered significant losses as a result of your investment with Ray Lucia Sr. and RJL, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact a stock fraud lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.

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