[ by Melanie Gretchen ] An RR with Minneapolis-based Thrivent Investment Management received serious sanctions for taking shortcuts - often after making careless, though apparently unintentional, errors.  Like the mutual fund exchange he processed for a customer, about 1 month after he got authorization to execute the transaction.  Problem was, unbeknownst to the broker, the customer had died during that interval - meaning he then needed new authorizations from the beneficiaries or executors of the estate. Broker's Financial Experience. Jeffrey Sturm, at Thrivent for nearly 20 years, where he served as an Investment Company and Variable Contracts Products Representative.  Thrivent was his only employer in the industry - from 1/10/89 until 6/25/09.  An experienced RR, Sturm knew or should have known Thrivent's rules, which were posted on the firm's intranet website on - i.e., reminders that once a document was signed by a customer, it could not be altered in any manner, and that, if a document was altered, a new document would have to be signed by the customer. FINRA Findings and Allegations. For six (6) years, from April 2003 to April 2009, Sturm accommodated his customers by completing or altering internal Thrivent forms that his customers have previously signed and submitted them for processing.  Each incident violated Thrivent pols and procedures, as well as NASD and FINRA rules. Here are some violations found by FINRA:

• Executed MF Exchange After Customer's Death. On 5/4/09, 4 days after his client had died, Sturm exchanged shares of one proprietary mutual fund for shares of another proprietary fund.  Unfortunately, Sturm received the customer's authorization for the exchange 4 to 6 weeks earlier.  Sturm explained that he had forgotten to process the exchange and he upon realizing his error over a month later, he immediately did so.

Sturm didn't know that the customer had died 3 days earlier and, at that point, the securities were part of the customer's estate - meaning that Sturm would have needed authorization from the beneficiaries or executors to complete the transaction.  Sturm did not receive a commission on the transaction, so it was apparent that he put through the violative transaction for relatively innocent reasons, and not for his own personal benefit.

• Altered signed documents. Sturm also violated firm and NASD policies and rules when he had 9 customers sign forms in blank, or had them sign and date in advance forms authorizing a partial or full withdrawal from their variable deferred annuities or universal life insurance policies.

Then, from April 2003 to April 2009, on 24 occasions, he altered these forms by, among other things, photocopying the forms signed in blank, or whiting out the dates on the original forms, and inserting the current date on the forms as if the document had been recently signed and dated.  Each altered form was then submitted to Thrivent for processing.

It should be noted that, in all 24 instances, the transaction had been authorized by the customer.

FINRA Sanctions and Career Transitions. To settle the FINRA charges against him. Sturm agreed to a $10K fine and 3-month suspension.  [C-I Note: An expensive lesson for taking shortcuts - regardless of his intent.] Sturm left Thrivent and registered with another FINRA member firm on 6/17/10 - in similar capacities.  He's currently registered with a broker-dealer and has had no further disciplinary actions against him. He may not Thrive, but he's certainly not dead on arrival. For more details, go to [FINRA AWC#2009018240601].