According to FINRA, Lincoln Lucas Mason (CRD #7057393), based in Arnolds Park, Iowa, was sanctioned on January 17, 2024, through a Letter of Acceptance, Waiver and Consent (AWC). Mason was assessed a deferred fine of $5,000 and suspended from association with any FINRA member firm in all capacities for 90 days.

FINRA found that Mason engaged in an outside business activity (OBA) without providing prior written notice to, and receiving his member firm's approval of, the outside activity. Mason created and was the sole member of an LLC for the purpose of holding a commercial property that he owned. He intended to transfer his property into the company and use it as his firm branch office, entering into a lease agreement with the firm whereby it would pay him rent through the company.

The firm became aware of the company through its compliance program and initially approved Mason's OBA. Later, Mason transferred his property into the company and contacted the firm to establish it as his branch office. The firm advised Mason that properties owned by associated persons could not be used as branch offices.

Rather than complying, Mason provided false information and fictitious documents to the firm to conceal the true nature of his outside activity and his ownership interest in the company and its property. Mason created documents purporting to show the transfer of his interest in the company to a third party, falsely represented that he had sold the office building, and provided these false transfer documents to the firm in an effort to prove he no longer owned the company or the property. As a result, the firm unknowingly entered into a lease agreement with the company and allowed Mason to use his own property as a branch office.

Even when the firm's compliance department continued to request additional information, Mason falsely claimed the only property the LLC held was a storage facility and that the commercial building had been sold, neither of which was true. The firm terminated the lease agreement and Mason's registration shortly thereafter. Mason received no rent payments under the agreement.

This case underscores the importance of honesty in dealings with member firms. Providing false documents and fictitious information to a firm is a serious violation that erodes the trust essential to the broker-dealer relationship. Investors should be aware that the regulatory framework depends on truthful reporting by financial professionals, and violations like these can be identified through FINRA's BrokerCheck.

The suspension was in effect from February 5, 2024, through May 4, 2024 (FINRA Case #2022073651801).