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 from January 2015 to October 2022, 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. 

For more information, please contact the Commission: 
Office of Distributions
Email: ENFOfficeofDistributions@sec.gov