FINRA fined and suspended John-Aaron Lenhert, formerly of Morgan Stanley in Laguna Niguel, California, for borrowing funds from multiple customers without approval and for related misrepresentations, including false statements on both questionnaires and to investigators.
According to the findings, Lenhert (CRD #5989046) borrowed $44,700 from three Morgan Stanley customers in contravention of firm policy that prohibited such lending activity, and did not seek prior approval from Morgan Stanley before borrowing the funds.
Lenhert purportedly completed multiple annual compliance questionnaires in which he incorrectly stated that he had not borrowed money from any firm clients even though he had. Furthermore, according to FINRA's report, Lenhert told Morgan Stanley during an internal investigation that none of the loans were documented by a promissory note and that at least some of the loans had commenced prior to his employment at the firm.
FINRA determined that Lenhert's statements were false and found that Lenhert has repaid only a portion of the total funds borrowed.
Morgan Stanley discharged Lenhert in 2017 as a result of the allegations relating to "undisclosed outside financial transactions between the financial advisor and three clients of the firm." Lehnert's BrokerCheck file indicates an additional outside business activity in Victorville, CA related to real estate called JKL Property Investors.
If you have invested with John-Aaron Lenhert or with any broker or financial adviser who has borrowed money from or loaned money to you in contravention of firm policy, or who has failed to repay such loans, resulting in harm to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.