A former J.P. Morgan Securities rep has been suspended for seven months by the Financial Industry Regulatory Authority after improperly applying for and receiving a COVID-19 Economic Injury Disaster Loan (EIDL), Finra said.
Kenny Meija, who was a broker with J.P. Morgan from 2015 to 2021, claimed he owned a gardening business to qualify for the loan. “But Mejia did not then own a gardening business or any other business eligible for an Economic Injury Disaster Loan from the Small Business Administration,” Finra said.
Without admitting or denying the findings, Mejia consented to the suspension and to the entry of findings that he made “reckless misrepresentations” in the loan application he submitted to the SBA to obtain the loan.
Finra findings stated that in the loan application, Mejia recklessly misrepresented that he was the owner of a gardening business that he operated as a sole proprietorship. Mejia said he founded the business in 2019 and operated it out of his home, using his personal telephone number and email address, Finra said. Mejia also said the business had earned revenue and incurred costs in the 12 months prior to January 31, 2020, according to Finra.
Based on Mejia’s misrepresentations, the SBA provided him with a $1,000 Economic Injury Disaster Loan advance, Finra said.
To date, Mejia has not repaid the $1,000 to the SBA, the regulator said in a disclosure on Meija’s BrokerCheck report.
As a result of this conduct, J.P. Morgan terminated his employment, Finra said. “Prior to his termination, when questioned by the firm’s investigators, Mejia made additional misrepresentations, including that he had filed the Economic Injury Disaster Loan application on the advice of his tax preparer,” Finra said.
From March to August, Mejia was registered with Centaurus Financial, but is no longer a registered broker, according to Finra.
Finra said Mejia violated Finra Rule 2010, governing standards of commercial honor and principles of trade.
J.P. Morgan did not immediately respond to a require for comment.
Meija is not the first J.P Morgan broker that Finra has suspended for Covid loan irregularities. Latonya L. Anderson, a former J.P. Morgan rep, was recently suspended from associating with any Finra member in all capacities for nine months and fined $12,500 for improperly applying for and receiving a Covid relief loan. JPMorgan Chase has also terminated a number of employees after an investigation revealed they improperly applied for and received loans meant to assist businesses affected by the pandemic.