From 2011 to 2017, John-Aaron Lenhert (CRD#: 5989046) was employed as a broker and investment advisor at Morgan Stanley in Laguna Niguel, California. In January of 2017, Mr. Lenhert was terminated by the firm following allegations that he engaged in undisclosed outside financial transactions with three of his clients.
On October 10th, 2018, John-Aaron Lenhert was suspended by FINRA. According to the agency’s investigation, Mr. Lenhert improperly borrowed money from three different customers, failed to disclose these transactions, and made false statements to his brokerage firm.
Suspended Broker: John-Aaron Lenhert
According to FINRA, John-Aaron Lenhert borrowed more than $44,000 from at least three different Morgan Stanley customers. At no point did he seek to disclose these loans to Morgan Stanley. In addition, he provided false information — stating he never borrowed from a customer — on the brokerage firm’s annual compliance forms.
Under FINRA Rule 3240, all borrowing and lending arrangements between financial advisors and their customers must meet certain requirements and the transactions must be disclosed to and approved by the brokerage firm.
Without admitting or denying wrongdoing in this case, former Morgan Stanley broker John-Aaron Lenhert consented to FINRA’s proposed penalties, which include a five-month suspension from the securities industry and a $7,500 fine.
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