In the Matter of Pinnacle Investments, LLC, Admin. Proc. File No. 3-21405

On May 5, 2023, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against Pinnacle Investments, LLC (“Pinnacle” or the “Respondent”). In the Order, the Commission found that Pinnacle, a registered investment adviser and broker-dealer, made false and misleading statements in Commission filings regarding reviews of advisory client accounts; failed to adequately disclose its conflicts of interests in connection with the outside business activities and related compensation arrangements of an Investment Adviser Representative with an affiliated fund; failed to adopt and implement policies and procedures reasonably designed to prevent violations of the Advisers Act concerning reviews of client accounts and conflicts of interest; and failed to deliver required information concerning advisory personnel to its clients. The Commission ordered the Respondent to pay $83,462.00 in disgorgement, $11,874.00 in prejudgment interest, and a $393,381.00 civil money penalty, for a total of $488,717.00, to the Commission according to a payment plan described in the Order. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty collected, along with the disgorgement and prejudgment interest collected, can be distributed to harmed investors (the “Fair Fund”). The Fair Fund consists of the $495,087.68 collected from the Respondent. See the Commission’s Order: Release No. 34-97448.

The Fair Fund has been deposited in a Commission-designated account at the U.S. Department of the Treasury, and any accrued interest will be added to the Fair Fund.

On November 13, 2024, the Commission issued an order appointing Heffler, Radetich & Saitta, LLP, as the Tax Administrator of the Fair Fund. See the Commission’s Order: Release No. 34-101612. 

On June 30, 2025, the Commission published a notice of the proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (the “Proposed Plan”). The notice provides the public with 30 days to submit their comments on the Proposed Plan. See the Commission’s Notice: Release No. 34-103346 and the Proposed Plan.

The Proposed Plan provides that the distribution of the Fair Fund shall be made to compensate investors for management advisory fees paid to the Respondent during the Relevant Period, when the Respondent failed to conduct adequate periodic reviews for certain client advisory accounts to determine whether they were being managed in accordance with their investment mandates as described in the Order.

On July 11, 2025, the Commission issued an order appointing Simpluris, Inc., as the Fund Administrator to oversee the administration and distribution of the Fair Fund. See the Commission’s Order: Release No. 34-103441.

For more information, please contact the Fund Administrator: 

Toll Free Number: 833-360-6854
Email: info@pinnaclefairfund.com
Address: Pinnacle Fair Fund, Fund Administrator, P.O. Box 25206, Santa Ana, CA 92799
Website: www.pinnaclefairfund.com