Frequently Asked Questions

BACKGROUND

1. What is this matter about?

On May 5, 2023, the SEC instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against Pinnacle Investments, LLC (“Pinnacle” or the “Respondent”). In the Order, the SEC found that Pinnacle, a registered investment adviser and broker-dealer, made false and misleading statements in SEC 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 SEC 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 SEC according to a payment plan described in the Order. The SEC 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.

On November 13, 2024, the SEC issued an order appointing Heffler, Radetich & Saitta, LLP, as the Tax Administrator of the Fair Fund.

On June 30, 2025, the SEC published a notice of the proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (“Proposed Plan”).

On July 11, 2025, the SEC issued an order appointing Simpluris, Inc. (“Simpluris”) as the Fund Administrator, to oversee the administration and distribution of the Fair Fund and setting the administrator’s bond amount.

On August 27, 2025, the SEC published a notice approving the plan of distribution and simultaneously published the approved plan of distribution (“Plan of Distribution” or “Plan”).

2. Why did I receive a Plan Notice?

You received a Plan Notice as you have been identified by the Fund Administrator as a person or entity who may have suffered a loss as a result of paying management advisory fees to Pinnacle Investments, LLC from January 1, 2015, through December 31, 2018 (the “Relevant Period”).

3. What is the Relevant Period?

The Relevant Period is from January 1, 2015, through December 31, 2018, inclusive.

4. How much is in the Pinnacle Fair Fund?

The Fair Fund consists of the $495,087.68 paid by the Respondent plus accrued interest.

ELIGIBILITY

5. Who is eligible for a potential payment from the Pinnacle Fair Fund?

You may be eligible for a payment from the Pinnacle Fair Fund if:

1. You paid excess management advisory fees during the Relevant Period;


2. Your Recognized Loss calculates to a distribution amount equal to or greater than the Minimum Distribution Amount of $20.00, as calculated under the Plan;


3. You are not an Excluded Party; and


4. You timely submitted a valid Certification Form.

In order to be considered for eligibility for a distribution payment from the Pinnacle Fair Fund, you must complete and submit a Certification Form by October 17, 2025 (the “Certification Form Deadline”).

6. Who is excluded from payment from the Pinnacle Fair Fund?

You are excluded from participation in the Pinnacle Fair Fund if you are an Excluded Party as defined in the Plan, including:

1. The Respondent (Pinnacle Investments, LLC);


2. Present or former officers of Respondent or any assigns, creditors, heirs, distributees, spouses, parents, dependent children or controlled entities of any of the foregoing Persons or entities;


3. Any employee or former employee of the Respondent or any of its affiliates who has been terminated for cause or has otherwise resigned, in connection with the conduct described in the Order;


4. Any Person who, as of the Certification Date, has been the subject of criminal charges related to the conduct described in the Order or any related SEC action;


5. The Fund Administrator, their employees, and those Persons assisting the Fund Administrator in their role as the Fund Administrator; and,


6. Any purchaser or assignee of another Person’s right to obtain recovery from the Fair Fund for value; provided, however, that this provision shall not be construed to exclude those Persons who obtained such a right by gift, inheritance or devise.

PLAN OF ALLOCATION

7. What is the Plan of Allocation?

The Plan of Allocation, available for review as Exhibit A of the Plan, states how the Recognized Losses and Distribution Payments will be calculated.

The Plan of Allocation is designed to compensate investors for management advisory fees paid to the Respondent during a four-year period, from January 1, 2015 through December 31, 2018 (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. An investor who did not suffer a loss by paying management advisory fees during the Relevant Period, or who is an Excluded Party, is ineligible to recover under the Plan. An Eligible Claimant is a Person who suffered a Recognized Loss as calculated by the Plan of Allocation; who submits a valid Certification Form by the Certification Form Deadline; and who is not an Excluded Party under paragraphs14(a)-(f) of the Plan. An Eligible Claimant will be deemed a Payee and will receive a distribution payment if their Recognized Loss calculates to a distribution amount equal to or greater than $20.00.

THE CERTIFICATION PROCESS

8. What is the deadline to submit a Certification Form?

The deadline to submit a Certification Form, also referred to as the “Certification Form Deadline”, is October 17, 2025.

Certification Forms completed online must be submitted on or before 11:59 p.m. Eastern Standard Time on October 17, 2025.

Certification Forms submitted by mail must be sent to the address provided on the Certification Form and postmarked (or if not sent by U.S. Mail, received) by October 17, 2025.

9. How do I submit a Certification Form online?

Online submissions are encouraged.

To submit a Certification Form online, go to the Submit a Certification Form page, login with the User ID and PIN provided on your paper Certification Form, and follow the provided instructions.

Certification Forms completed online must be submitted on or before 11:59 p.m. Eastern Standard Time on October 17, 2025.

10. How do I submit a Certification Form via mail?

If you are unable to submit a Certification Form online, you may request a copy of the paper Certification Form from the Third-Party via email at info@PinnacleFairFund.com or by calling 833-360-6854.

Certification Forms submitted by mail must be sent to the address provided on the Certification Form and postmarked (or if not sent by U.S. Mail, received) by October 17, 2025.

11. I think I might be eligible, but I did not receive a Plan Notice. What can I do?

Anyone who did not receive a Plan Notice but believes they should have, should contact the Fund Administrator by October 11, 2025, and submit documentation to support their claim along with their contact information. If the Fund Administrator, in consultation with the SEC, determines that the claimant should have received a Plan Notice, a Plan Notice will be sent to the claimant within 15 days of receipt of their documentation. The Fund Administrator can be reached by email at info@PinnacleFairFund.com, or by calling 833-360-6854.

12. Where do I find my Recognized Loss?

Your Recognized Loss is provided on the first page of your Certification Form. You can also view your Recognized Loss by going to the Submit a Certification Form page here and logging in using the User ID and PIN provided in your Certification Form. For further assistance locating your Recognized Loss, contact the Fund Administrator via email at info@PinnacleFairFund.com or by calling 833-360-6854.

13. How do I dispute my Recognized Loss calculation?

If you wish to dispute your Recognized Loss amount, you must provide a written statement along with supporting documentation to the Fund Administrator by email at info@PinnacleFairFund.com or by mail to Pinnacle Fair Fund, Fund Administrator, P.O. Box 25206, Santa Ana, CA 92799. The deadline to submit a dispute of your Recognized Loss amount is October 17, 2025.

14. How will I find out about the outcome of my Claim?

Within 180 days of the Plan approval, the Fund Administrator will send a Final Determination Notice to any Preliminary Claimant who timely submitted a written dispute, notifying the Preliminary Claimant of the Fund Administrator’s resolution of the dispute; and those Preliminary Claimants who have not responded to the Plan Notice, notifying the Preliminary Claimant that they have been deemed an Unresponsive Preliminary Claimant.

DISTRIBUTION

15. When will Distribution Payments be disbursed?

There is no current estimate for when Distribution Payments will commence. Please visit this website often to get the most up-to-date information.

ADDITIONAL INFORMATION

16. Who is the Tax Administrator?

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

17. Who is the Fund Administrator?

On July 11, 2025, the SEC issued an order Simpluris, Inc. (“Simpluris”) as the Fund Administrator for the Fair Fund. See the SEC’s Order: Release No. 34-103441.

18. Where can I get additional information?

Copies of the Plan, the Notice, and other relevant documents are available for download on the Important Documents page of this website and through the SEC’s website for this matter.

If you would like to request a copy of the Plan, the Plan Notice, and/or the Certification Form, or if you have any other questions, you may contact the Fund Administrator via email at info@PinnacleFairFund.com, or by calling 833-360-6854. The mailing address for the Fund Administrator is: Pinnacle Fair Fund, Fund Administrator, P.O. Box 25206, Santa Ana, CA 92799.