Thrivent Investment Management: Lawsuits, Complaints, and Regulatory Actions
The White Law Group reviews the regulatory history including sanctions and broker misconduct involving Thrivent Investment Management Inc. (CRD#:18387).
Thrivent Investment Management Inc., a broker-dealer and investment adviser, has faced multiple regulatory actions, investor complaints, and sanctions in recent years. These cases raise concerns about the firm’s supervisory practices, compliance with industry rules, and suitability of investment recommendations. Investors who suffered losses with the firm may be able to pursue recovery through FINRA arbitration.
FINRA Sanction: Supervision of Electronic Signatures
In 2024, the Financial Industry Regulatory Authority (FINRA) fined Thrivent Investment Management $325,000 and sanctioned the firm for supervisory failures involving electronic signatures.
According to the regulator, beginning in July 2017, at least 15 Thrivent representatives falsified or forged customer names on more than 260 documents without authorization. FINRA’s investigation revealed that Thrivent did not have adequate procedures to detect or prevent this misconduct.
The findings violated multiple FINRA rules and Section 17(a) of the Securities Exchange Act of 1934, which requires accurate books and records.
SEC Enforcement: Reg BI Violation
In 2024, the Securities and Exchange Commission (SEC) brought an action against Thrivent for violations of Regulation Best Interest (Reg BI).
What happened: Thrivent used an outdated share class calculator, which caused retail customers to be recommended higher-cost mutual fund share classes within certain 529 college savings plans.
Sanctions: The SEC imposed a $25,000 fine, a censure, and a cease-and-desist order from future Reg BI violations.
This case illustrates how outdated systems and tools can result in investor harm and compliance failures.
Illinois Securities Department Action
In 2020, the Illinois Securities Department censured Thrivent over its handling of variable annuity replacements.
What happened: The firm allegedly encouraged clients to exchange existing variable annuities for new ones, which triggered surrender charges, higher fees, and tax consequences. Regulators said Thrivent failed to properly supervise these transactions and ensure suitability.
Sanctions: Thrivent was censured and faced the possibility of a suspension or revocation of its dealer registration in Illinois, according to the Illinois Secretary of State.
Thrivent Brokers Barred for Misconduct
Several Thrivent Investment Management brokers have been barred by FINRA for allegations of serious misconduct, further raising concerns about the firm’s supervision:
- Gary Kieper (Antigo, WI) CRD#: 4147968 – Barred after failing to cooperate with a FINRA investigation amid allegations of embezzling more than $300,000 from public funds.
- Thomas L. Studer (The Villages, FL) CRD#: 6300308 – Permanently barred after refusing to cooperate with a FINRA investigation involving unauthorized account activity.
- William Petrillo (Volo, IL) CRD#: 2212735 – Barred after allegedly engaging in unauthorized discretionary trades and failing to disclose outside accounts.
- William Godfrey (Clearwater, FL) CRD#: 2447660 – Barred after submitting inaccurate variable annuity applications and refusing to testify in a FINRA investigation.
- Dan Arcuri (Greensburg, PA) CRD#: 2200431 – Barred after allegations of misusing client funds, engaging in undisclosed outside business activities, and failing to cooperate with FINRA.
FINRA Arbitration vs. Class Action
Investors with Thrivent complaints should understand the difference between FINRA arbitration and class action lawsuits when considering recovery options:
FINRA Arbitration: Most Thrivent lawsuits are resolved in this forum. FINRA arbitration is a binding dispute resolution process where investors can pursue claims of broker fraud, negligence, or unsuitable recommendations. These cases are typically resolved faster than traditional court cases.
Class Actions: A class action combines many investors with similar claims. While class actions can result in large settlements, individual investors often recover only a small portion of their actual losses.
For most retail investors seeking to recover money from Thrivent Investment Management, FINRA arbitration is generally the most effective option.
What This Means for Thrivent Investors
The repeated regulatory actions against Thrivent Investment Management highlight ongoing concerns with supervision and compliance. Investors may have suffered significant losses due to improper recommendations or broker misconduct.
If you lost money investing with Thrivent or one of its financial advisors, you may be eligible to file a FINRA arbitration claim to pursue recovery of your losses.
Hiring a Securities Attorney
The White Law Group is investigating potential claims against Thrivent Investment Management for supervisory failures, unsuitable recommendations, and regulatory violations.
Our securities attorneys have handled hundreds of FINRA arbitration lawsuits involving broker-dealers across the country. We represent investors nationwide in claims to recover investment losses.
If you believe you have a claim against Thrivent, please contact The White Law Group at (888) 637-5510 for a free consultation.
FAQs about Thrivent Investment Management
1. Can I sue Thrivent Investment Management for investment losses?
Most disputes with brokerage firms like Thrivent are handled through FINRA arbitration, not traditional court lawsuits. Investors may be able to pursue claims for broker misconduct, unsuitable investments, or supervisory failures.
2. What are the regulatory actions against Thrivent?
Thrivent has faced sanctions from FINRA, the SEC, and the Illinois Securities Department for issues including forged electronic signatures, Reg BI violations, and unsuitable variable annuity recommendations.
3. How do I know if I have a claim against Thrivent?
If you experienced losses in investments such as mutual funds, 529 plans, variable annuities, or private placements recommended by Thrivent advisors, you may have a claim. Speaking with a securities attorney can help determine if FINRA arbitration is appropriate in your case.
