The SEC has fined syndicated financial radio host Ray Lucia and his financial advice firm $300,000 for spreading misleading information about his signature “Buckets of Money” investment strategy, reports Reuters. The SEC administrative law judge barred the San Diego-based host from associating with other advisers, brokers and dealers. Additionally, the judge also revoked his firm’s investment adviser registration.
Lucia, who hosts investing seminars and the syndicated “Ray Lucia Show” on weekdays, promotes his retirement-focused financial strategy, which calls for retirees to spend money from “buckets” of safer assets. The SEC judge said slideshows employed by Lucia failed to use actual historical data to show how fictional portfolios following his advice performed in past bear markets.
“He knew his fiduciary obligations as an investment adviser and he knew that he was violating them by misleading prospective clients for the purpose of selling REITs,” the ruling said. “He … became very financially successful as a result.”
Lucia and his attorney plan to appeal the ruling which the judge said would effectively put Lucia out of the financial advisory business.