The SEC has banned Matthew Walker, managing partner and chief compliance officer at Pinnacle Plus Wealth Management in Kansas, from associating with any industry entity or penny stock offerings for five years.
In its initial complaint filed a year ago, the SEC alleged that Walker, who had previously been a registered broker and investment advisor, allowed those registrations to expire from July 2017 to June 2018, offered and sold 1 securities of Global Capital, which were also not registered. , to investors.
Walker could not be reached for comment before press time.
“The complaint alleged that Walker had solicited investors to buy 1 global securities; advised investors on the merits of investments; and received commissions of approximately $ 393,000 which were transaction-based compensation for its sales of 1 Global securities, ”the SEC filing said yesterday. Prior to joining Pinnacle Plus, Walker worked at MML Investors from 2004 to 2008, and Lincoln Financial Securities for two months in 2009, according to BrokerCheck.
According to the SmartAdvisorMatch website, Pinnacle Plus had $ 8.1 million in assets under management and 113 accounts. The company had been registered as a brokerage firm in Kansas, Colorado, Louisiana and Missouri, but all of those listings were terminated in June 2019, apparently all for the same reason.
In early 2019, the Idaho Department of Finance alleged that Walker and Pinnacle sold securities without being registered as a broker and employed agents who were not registered. This case resulted in a fine of $ 5,000 and $ 13,423 in restitution. Also in early 2019, the Colorado Division of Securities made the same allegations, issued a cease and desist order, and revoked the license for Pinnacle Plus.
Walker’s case outside Kansas was resolved on Oct. 14, and Walker paid a fine of $ 40,000, according to BrokerCheck.
According to the SEC, Walker had not acted alone. Two other Pinnacle Plus advisers, Roger Dobrovodsky and Robert Todd Seth, worked with him and together they collectively sold over $ 21 million worth of unregistered titles.
“The defendants marketed 1 global securities to investors as a safe alternative to the stock market and have collected hundreds of thousands of dollars in commissions on their sales even though they were not registered as brokers or associated with brokers registered, ”the SEC filing said.
Dobrovodsky settled the restitution of $ 317,690 with pre-judgment interest of $ 32,038 and a penalty of $ 50,000, the SEC said. Seth also agreed on a bar with the amounts of restitution, pre-judgment interest and penalties to be decided later.
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