A broker with Edward Jones, borrowed over $742,000 from his customers over a 3 year period, and, in the process, violated numerous firm policies and FINRA rules. Lonnie Lee Dusenberry, based in California, joined the industry in 1998 and, by 2007 decided to make his fortune some other way - by borrowing from his customers, paying back some, but reneging on most.  The strategy worked for a time. Details of his Operations. Dusenberry borrowed $742,500 from March 2007 through March 2010, with individual transactions ranging from $16,000 (his first) to $100,000 (his last). The Firm prohibited borrowing money from customers unless the borrowing arrangement fell within certain enumerated exceptions - e.g., from an immediately family member.  Regardless of the circumstances, however, employees were required to obtain the Firm's written pre-approval for all loans. Needless to say, Dusenberry usually did not seek out the firm's written pre-approval.  He did, however, submit written documentation to the firm twice - on 8/6/09 and 11/2/09 - to support transfers between customer accounts.  However, it was Dusenberry who signed the Letters of Authorization ("LOA") and, in each case, the money from one customer went to pay off the loan of another customer. In each case, the transfer was effected - one time for $30,000, the other time for $32,000.  In several instances - presumably including these 2 transfers - Dusenberry committed his Ponzi-like schemes.  He also used the proceeds of one loan to partially repay an earlier loan:  (i) in April 2009, he borrowed $20K from a couple a paid down an $89.5K loan, which he had borrowed in February 2008. All told, he did not repay many of his loans and when he was caught, he had not repaid about $500,000 of the $742,000 in loans. FINRA Sanctions. Dusenberry was barred from the industry.   For further details, go to: [FINRA AWC #2010022516401]. [Disciplinary Action for October 2011]