‘Buckets of Money’ Advisor Settles With SEC After Long Legal Battle
June 24, 2020 by Melanie Waddell and Allison Bell
After a 10-year battle including a Supreme Court case in which he prevailed over the Securities and Exchange Commission, former RIA Raymond Lucia Sr. and his former advisory firm, Raymond J. Lucia Cos., agreed Tuesday to settle charges related to the marketing of their “Buckets of Money” retirement investing strategy.
Lucia will pay a $25,000 fine and drop a case he has filed against the SEC.
The SEC’s order finds that from 2006 through 2010, presentations of the strategy included slides that claimed to show “backtests” of how it would have performed through a series of historical market conditions.
“The self-described ‘backtests’ were presented as empirical proof that the Buckets of Money strategy provided income for life and growth of principal under difficult market conditions,” the order states.