Lucas R. Hales of Austin, Texas, a stockbroker registered with Virtu Americas LLC, has been fined $10,000.00 and suspended for 12 months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Hales engaged in selling away or private securities transactions totaling $3,000,000.00 without notifying his firm. Letter of Acceptance, Waiver, and Consent No. 2022076767001 (January 18, 2024).
According to the AWC, in March 2021, Hales, along with two others, created a limited liability company as a vehicle for a tech company investment. As the sole manager, Hales oversaw investments totaling $3,000,000.00 from twenty-one investors, including himself. His role involved reviewing subscription documents, serving as the primary contact for investors, managing accounts, and executing investment related documents. The company apparently had the right to receive carried interest as compensation for selling once the investment in the technology company was finalized, and they distributed a portion of this carried interest to Hales.
Hales’ failure to disclose these activities and obtain approval from the securities broker dealer constituted a violation of FINRA Rules 3280 and 2010.
Hales was associated with Virtu Americas LLC in Austin, Texas from September 26, 2018, to March 7, 2022. Prior to this, he was associated with Virtu Financial BD LLC in Austin, Texas, from May 11, 2016, to April 9, 2020, and with Virtu Financial Capital Markets LLC in New York, New York, from May 11, 2016, to December 24, 2018.
