Customer claims working with representative, Michael Binstock, to open an IRA rollover on 06/16/21. [REDACTED] signed paperwork to be an aggressive investor, and I followed all of her wishes, basically complaining of market drop.Customer claims Michael was misleading on the different options appropriate to the customer's needs. Customer is requesting compensation of the difference between what will be paid from the product and what would have been earned had better advice been given.

$276,909.10

Client is claiming the rep lied to him. Committed fraud in the way of explaining products and income to him

$212,000.00

At initial client meeting, rep did due diligence in gathering client information. After reviewing and discussing client's current financial situation including investment objectives and goal, the client signed all paperwork including applicable disclosures. After engaging in multiple phone conversations with the client post transactions with no indication of dissatisfaction or misunderstanding, the rep denies all allegations of wrong doing.

FINRA

FINRA RULE 2010, NASD RULES 2110, 3110: BINSTOCK AFFIXED PHOTOCOPIED SIGNATURES OR OTHERWISE ALTERED MULTIPLE DOCUMENTS FOR SEVERAL CUSTOMERS. BINSTOCK THEN SUBMITTED THESE ALTERED DOCUMENTS TO THE FIRM AND DESTROYED THE HARD COPIES HE HAD ALTERED. THE FIRM'S WRITTEN POLICIES AND PROCEDURES (WSPS) REQUIRED THAT, ON ALL DOCUMENTS, CUSTOMER SIGNATURES MUST BE ORIGINAL, BY THE CUSTOMER. BINSTOCK'S BRANCH OFFICE SUPERVISOR AND FIRM COMPLIANCE SPECIALISTS MET WITH BINSTOCK TO QUESTION HIM ABOUT HIS PRACTICES WITH RESPECT TO FIRM DOCUMENTS AND CUSTOMER SIGNATURES. DURING THE COURSE OF THE FIRM'S INVESTIGATION, BINSTOCK VOLUNTARILY RESIGNED FROM THE FIRM. THE FIRM RECEIVED A COMPLAINT FROM A CUSTOMER CONCERNING BINSTOCK. THE CUSTOMER HAD AN EXISTING LIFE INSURANCE POLICY WITH THE FIRM. BINSTOCK PROCESSED A PURCHASE OF A VARIABLE UNIVERSAL LIFE PRODUCT FOR THE CUSTOMER. BINSTOCK DID NOT EXPLAIN TO THE CUSTOMER THAT HE WAS KEEPING THE EXISTING POLICY IN PLACE, OR THAT THERE WOULD BE PREMIUMS ASSOCIATED WITH THE NEW POLICY. THE CUSTOMER WAS SURPRISED THAT HE HAD TWO LIFE INSURANCE POLICIES AND THE CUSTOMER HAD RECEIVED A NOTICE FROM THE FIRM THAT HE HAD TO PAY A PREMIUM, ALTHOUGH HE WAS NOT AWARE OF ANY PREMIUMS. THE CUSTOMER HAD PREVIOUSLY RECEIVED SUCH A NOTICE AND BINSTOCK TOLD THE CUSTOMER THAT HE WOULD TAKE CARE OF IT. IN FACT, BINSTOCK PHOTOCOPIED THE CUSTOMER'S SIGNATURE AND AFFIXED IT TO CREATE A DISTRIBUTION FORM WITHOUT THE CUSTOMER'S AUTHORIZATION. THIS FORM AUTHORIZED A PARTIAL WITHDRAWAL OF $2,100 FROM THE CUSTOMER'S INITIAL POLICY TO FUND AN ANNUAL PREMIUM FOR THE NEW VARIABLE UNIVERSAL LIFE PRODUCT. BINSTOCK EXECUTED THIS TRANSACTION WITHOUT THE CUSTOMER'S KNOWLEDGE OR AUTHORIZATION. BINSTOCK HAD PREVIOUSLY USED THE SAME METHOD TO COPY AND PASTE THE CUSTOMER'S SIGNATURE ON A MUTUAL FUNDS EXCHANGE REQUEST DOCUMENT. THIS FORM ENABLED BINSTOCK TO REALLOCATE THE CUSTOMER'S PORTFOLIO FROM TWO SPECIFIC MUTUAL FUND ACCOUNTS TO A PARTNER INTERNATIONAL FUND. BINSTOCK ENACTED THE TRANSACTION WITHOUT THE CUSTOMER'S KNOWLEDGE OR AUTHORIZATION. BINSTOCK THEN SUBMITTED BOTH OF THESE DOCUMENTS TO THE FIRM, AND DESTROYED THE HARD COPIES. THE FIRM EXECUTED EACH TRANSACTION. SOME ELDERLY CUSTOMERS OF THE FIRM ASKED BINSTOCK TO DEPOSIT $10,000 FROM A MATURING CERTIFICATE OF DEPOSIT INTO ONE OF THE CUSTOMERS' FIXED UNIVERSAL LIFE POLICY. THE $10,000 INVESTED IN THE FIXED UNIVERSAL LIFE INSURANCE POLICY WAS RECORDED AS A PREMIUM, WHICH RESULTED IN A FEE TO THE CUSTOMER. THE CUSTOMER CONTACTED BINSTOCK, WHO STATED THAT THIS WAS NOT ACCURATE AND HE WOULD FIX THE SITUATION. BINSTOCK LATER STATED THAT THESE CUSTOMERS WERE ENTITLED TO A CHECK FOR $500 AND ACCUMULATED INTEREST. AFTER BINSTOCK HAD ALREADY RESIGNED FROM THE FIRM, BUT WHILE HE WAS REGISTERED AT ANOTHER MEMBER FIRM, HE DEPOSITED $515.36 INTO THEIR CHECKING ACCOUNT FROM BINSTOCK'S OWN FAMILY BANK ACCOUNT. BINSTOCK MADE THIS DEPOSIT WITHOUT THE KNOWLEDGE OR AUTHORIZATION OF HIS FORMER FIRM AND IN ORDER TO SETTLE THE CUSTOMER'S COMPLAINT ABOUT HIS WORK ON THEIR ACCOUNTS. BY VIRTUE OF BINSTOCK'S CONDUCT, HE CAUSED HIS FIRM TO CREATE AND MAINTAIN INACCURATE BOOKS AND RECORDS IN VIOLATIONS OF SECTION 17(A) OF THE SECURITIES EXCHANGE ACT OF 1934 AND SEC RULE 17A-3.

Decision

Civil and Administrative Penalty(ies)/Fine(s)

$30,000.00

Monetary Penalty other than Fines

$6,623.90

Suspension

ANY CAPACITY

FOUR MONTHS

1/7/2013

5/7/2013

HEARING PANEL DECISION RENDERED NOVEMBER 19, 2012 WHEREIN BINSTOCK WAS FINED $25,000 AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR FOUR MONTHS FOR FALSIFYING CUSTOMER ACCOUNT DOCUMENTS IN VIOLATION OF FINRA RULE 2010 AND NASD RULE 2110, AND CAUSING HIS FIRM TO HAVE INACCURATE RECORDS IN VIOLATION OF FINRA RULE 2010 AND NASD RULES 2110 AND 3110. BINSTOCK WAS FINED $5,000 FOR SETTLING A CUSTOMER CLAIM AWAY FROM HIS FORMER MEMBER FIRM IN VIOLATION OF FINRA RULE 2010 AND NASD RULE 2110. BINSTOCK WAS ORDERED TO PAY $6,623.90 IN HEARING COSTS. THE FINE AND COSTS SHALL BECOME DUE AND PAYABLE WHEN BINSTOCK RETURNS TO THE INDUSTRY. THE CHARGE THAT HE ENGAGED IN AN UNAUTHORIZED TRANSACTION IN VIOLATION OF FINRA RULE 2010 AND NASD RULE 2110 WAS DISMISSED. IF THIS DECISION BECOMES FINRA'S FINAL DISCIPLINARY ACTION, THE SUSPENSION SHALL BECOME EFFECTIVE WITH THE OPENING OF BUSINESS ON JANUARY 7, 2013 AND END WITH THE CLOSE OF BUSINESS ON MAY 7, 2013. DECISION IS FINAL JANUARY 7, 2013. FINES AND COSTS PAID ON MAY 16, 2013.

ON 11-19-2012, BINSTOCK NOTIFIED OF FINRA DECISION. IN VIOLATION OF NASD RULE 2110 AND FINRA 2010 FALISFYING CUSTOMER DOCUMENTS, FINED $25,000. IN VIOLATION OF NASD RULE 3110, 2110 AND FINRA RULE 2010 CAUSING FIRM TO HAVE INACCURATE RECORDS $5000, AND ORDERED TO PAY COST OF PROCEEDINGS OF $ $6,623.90, FOR A TOTAL OF $36,623.90. THE UNAUTHORIZED TRANSACTION CHARGE IS DISMISSED. SUSPENSION 1/7/2013 - 5/7/2013

CUSTOMER STATED SHE WAS NOT AWARE OF VUL CONTRACT AND ALLEGED RR INSTRUCTED HER TO DISREGARD PREMIUM NOTICES. VUL CONTRACT SOLD BY ANOTHER THRIVENT AGENT AT HER DAD'S DEATH.

$10,014.38

$4,760.87

RR STATES VUL CONTRACT SOLD BY ANOTHER THRIVENT AGENT AND WHEN HE LAST SAW IT IN 2009, WHEN SHE SAID SHE DID NOT WANT TO FUND THE CONTRACT WITH HER OWN CASH, AND THE POLICY HAS SUFFICIENT CASH VALUE TO COVER PREMIUMS. NEITHER CLIENT NOR THIRVENT CONTACTED RR OR FIRM FOR RESOLUTION.

CLIENT ALLEGED RR MISREPRESENTED THE PURCHASE OF A VUL CONTRACT IN MAY 2006 BY NOT DISCLOSING PREMIUMS WOULD BE PAID FROM A VUL CONTRACT ISSUED IN 2001.

$5,465.00

$8,197.56

RR STATES CLIENT LOST HIS JOB IN 2006 AND WAS FULLY AWARE THAT THE 2001 VUL WAS SET-UP TO PAY PREMIUM OF NEW POLICY BOT IN 2006. THRIVENT NOR CLIENT CONTACTED REP OR FIRM IN RESOLUTION.

CUSTOMER ALLEGES THE VARIABLE UNIVERSAL LIFE (VUL) CONTRACT PURCHASED IN 2007 WAS MISREPRESENTED; THAT BY CONSOLIDATING OTHER WHOLE AND TERM LIFE INSURANCE CONTRACTS THERE WOULD BE NO CHARGES BECAUSE THE VUL WOULD BE SELF-SUFFICIENT.

$8,940.00

THRIVENT FOUND NO EVIDENCE TO SUPPORT THE CUSTOMER'S ALLEGATIONS.

THRIVENT INVESTMENT MANAGEMENT INC

Voluntary Resignation

RR SUBMITTED FOR PROCESSING MULTIPLE DOCUMENTS CONTAINING NON-ORIGINAL CUSTOMER SIGNATURES, DOLLAR AMOUNTS, AND INCORRECT DATES.

CUSTOMER CALLED ME TO TAKE WITHDRAWALS FROM MUTUAL FUNDS AND MONEY MARKET WHEN TALKING TO THEM I HAD THEM SIGN A FEW FORMS SO GOING FORWARD I COULD PROCESS THEIR SERVICE MORE QUICKLY. I ALSO CHANGED A DATE ON AN ALREADY USED FORM TO PROCESS FOR MY CLIENT- WITH AUTHORIZATION FROM THE CLIENT

CUSTOMER ALLEGES THAT FULL DISCLOSURE REGARDING TRANSACTION WAS NOT GIVEN. RESEARCH REVEALS FULL DISCLOSURE WAS PROVIDED.

$26,176.23