Published on Jul 15th, 2020 | Posted in Articles

The SEC announced on June 16, 2020 that they have agreed to a Settlement with Raymond J. Lucia, Sr. and Raymond J. Lucia Companies, Inc. after litigation ensued for almost eight years as a result of a cease-and-desist order in 2012 concerning a marketing strategy employed by Lucia and his San Diego based investment advisory firm.

The strategy involved using alleged materially misleading testing to promote the success of the strategy. This settlement comes after the case went all the way to the US Supreme Court, which ruled in favor of Lucia on the issue of improper appointment of the administrative law judge to his hearing. Despite the favorable ruling, the settlement offer deems that Mr. Lucia will be barred from associating with or working for a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, or an advisory board of such entity in addition to a $25,000 fine.

It is important to takeaway from this case that Investment Advisers and Investment Companies strictly adhere to SEC orders, especially pertaining to marketing materials as seen here. Litigation against the SEC can be long, expensive, and incredibly difficult to come out of as the victor.


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The Team at Vigilant