Pinnacle expelled, president barred over alleged fraud
A Finra hearing officer last week expelled Pinnacle Partners Financial Corp. and barred its president, Brian Alfaro, for…
A Finra hearing officer last week expelled Pinnacle Partners Financial Corp. and barred its president, Brian Alfaro, for allegedly selling fraudulent oil and gas private placements.
Mr. Alfaro, who defaulted on the charges by declining to present a defense, is out of the industry and the firm has withdrawn its registration, said his attorney, Alan Wolper, a partner at Ulmer & Berne LLP.
By defaulting, there is no proof or admission of guilt, he said.
The Financial Industry Regulatory Authority Inc. hearing officer also ordered the firm and Mr. Alfaro to buy back the 11 private placements at issue, or refund the 15% in sales commissions earned on the deals.
Finra claimed that Mr. Alfaro and Pinnacle ran a boiler room operation from August 2008 to March 2011 that raised over $10 million from more than 100 investors.
Mr. Alfaro used customer funds for personal and business expenses, the default decision said. In one instance, Mr. Alfaro collected more than $500,000 in subscriptions for a well that was never drilled, according to the decision.
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