A registered rep in Elk Grove, CA was busted by FINRA for requesting loans from customers and falsifying documents.  His complete disregard for even basic policies and rules of his former firm is a good reminder that firms need to make sure their compliance checks are thorough and regular. Lonnie Lee Dusenberry borrowed $742,500 from customers, despite his firm's policies that prohibited borrowing from customers except under certain strict conditions - e.g., client is a family member.  Dusenberry neither  requested nor sought approval for the loans, and proceeding to borrow without the firm knowing. Dusenberry used some of the loans to pay off old ones, but in the end he still owed some $500,000 to to his customers. The firm did require that employees receive written pre-approval for all loans, which More troubling, Dusenberry twice signed a customer's name to an LOA without their consent to effect loans by transferring money from one customer's account to another. The first instance was for $30,000, and the second for $32,000. Upon completing an investigation into improprieties, FINRA barred Dusenberry from the industry. [FINRA Case #2009020645901]