Regulator FINRA Suspends Broker-Dealer for Continuing to Deceive Investors

by Wall Street Fraud on April 26, 2011

Stock broker fraud attorneyDespite being issued a cease and desist order by the Financial Industry Regulatory Authority (FINRA), Texas-based broker-dealer Pinnacle Partners Financial Corporation and its President, Brian K. Alfaro, continued to make fraudulent misrepresentations to investors.

As a result, FINRA announced today that they have been suspended indefinitely.

Brad Bennett, FINRA Executive Vice President and Chief of Enforcement, said, "Brian Alfaro and Pinnacle pose a serious risk to the investing public. Even after the issuance of a Temporary Cease and Desist Consent Order, Alfaro and Pinnacle continued to market oil and gas offerings through material misrepresentations, with the intent to deceive investors."

FINRA filed a complaint against Pinnacle and Alfaro on Dec. 3, 2010, alleging that Alfaro and Pinnacle operated a "boiler room" in which numerous brokers placed thousands of cold calls on a weekly basis to solicit investments in oil and gas drilling joint ventures Alfaro owned or controlled.

As detailed in the complaint,

  • Pinnacle and Alfaro included numerous misrepresentations and omissions in the investment summaries for the offerings, including grossly inflated natural gas prices, projected natural gas reserves, estimated gross returns and estimated monthly cash flows.
  • Pinnacle and Alfaro deliberately attempted to mislead investors by deleting unfavorable information from well operator reports and providing them with doctored maps, which omitted numerous dry, plugged or abandoned wells near their projected drilling sites.
  • Alfaro's misuse of customer funds included attempts to retain the grossly inflated "drilling costs," which were funds Alfaro obtained by convincing customers to allow him to transfer their money into other fraudulent offerings.

At Wall Street Fraud, we are dedicated to offering assistance to those who have been hurt by improper corporate or investment practices.

If you have been the victim of stock brokerage fraud, securities fraud, mutual fund fraud, stockbroker fraud, annuities fraud, or any other type of investment fraud, please contact us today for a free case evaluation. Our talented and aggressive legal and professional staff is eager to help you recover your losses.

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