(888) 637-5510

Written by 10:04 am Blog, Securities Fraud Articles

Lawsuit filed involving radio personality Ray Lucia

The White Law Group announces the filing of another FINRA arbitration claim against First Allied Securities to attempt to recover investment losses in various REITs recommended by radio personality and San Diego financial advisor Ray Lucia.  This claim seeks to recover losses in excess of $180,000.

The claim was submitted to FINRA Dispute Resolution on behalf of two retired California investors alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim further alleges that First Allied Securities unsuitably invested the clients in Wells REIT II, Hines REIT, KBS REIT II and Aletheia Fund (among other allegedly unsuitable investments).

Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor.  It is alleged that First Allied Securities failed to perform the necessary due diligence on these investments prior to recommending them to this particular investor.

It is further alleged that First Allied Securities failed to adequately supervise a financial advisor investigated by the SEC.  On September 5, 2012, the Securities and Exchange Commission (the “SEC”) charged Ray Lucia, Sr. with spreading misleading information about his “Buckets of Money” strategy at a series of investment seminars that he and his company hosted for potential clients.  In July 2013, an administrative-law judge ruled that Mr. Lucia misrepresented for years “the validity of purported back-testing in seminars for prospective investors” interested in his Buckets of Money strategy for retirement savings. Additionally, Mr. Lucia was fined $50,000 and had his adviser registration revoked.

The claim against First Allied Securities alleges that these investors are victims of Mr. Lucia’s misleading “Buckets of Money” strategy.  This is at least the fifth lawsuit filed by The White Law Group against First Allied and involving Ray Lucia’s “Buckets of Money” strategy.

FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional.  It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court.

For more information on the claim filed by The White Law Group, please contact the firm’s Chicago office at 312-238-9650.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.  For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://whitesecuritieslaw.com.

Tags: , , , , , , , , , , , Last modified: December 28, 2022