Pinnacle Investments, LLC

ChapmanAlbin is investigating claims on behalf of investors who may have suffered losses due to supervisory failures at Pinnacle Investments, LLC.

According to a recently accepted FINRA Letter of Acceptance, Waiver, and Consent (AWC), Pinnacle has been censured, fined $65,000, and ordered to pay $53,847.99 in restitution to affected customers. FINRA found that from 2020 to 2024, Pinnacle failed to establish, maintain, and enforce a supervisory system reasonably designed to comply with Regulation Best Interest (Reg BI) and various FINRA rules.

Specifically, the firm failed to properly supervise recommendations involving non-traditional exchange-traded products (NT-ETPs), such as leveraged and inverse ETFs. One of Pinnacle’s registered representatives recommended that retail clients hold these high-risk products for extended periods—up to 110 days—despite warnings that these instruments are generally unsuitable for longer holding periods due to their daily reset feature. These unsuitable recommendations resulted in nearly $54,000 in customer losses.

Additionally, FINRA found that Pinnacle failed to implement an effective system to detect unauthorized or discretionary trading in customer accounts and failed to conduct timely inspections of multiple branch offices, violating multiple supervisory rules over an eight-year span.

If you were a client of Pinnacle Investments and believe you suffered investment losses or were sold unsuitable products like leveraged or inverse ETFs, contact ChapmanAlbin today. We are currently investigating claims involving Pinnacle and can help you evaluate your recovery options.

Reach out now at chapmanalbin.com or call 1-877-410-8172 for a free consultation.