FINRA announced that it had indefinitely suspended Pinnacle Partners Financial Corporation,
of San Antonio, Texas, and its President, Brian K. Alfaro, for failure
to comply with a Temporary Cease and Desist Order.
As mentioned in our previous blog in December, FINRA sought a Temporary
Cease and Desist Order against Pinnacle Partners and Brian K. Alfaro,
for allegedly operating a "boiler room." A "boiler room"
is a place in which stockbrokers and salespeople call potential investors
and use high-pressure and misleading sales tactics to persuade them to
invest in speculative (and sometimes fraudulent) securities products.
FINRA alleges that Pinnacle Partners and Alfaro have operated a boiler
room since 2008 and use it to raise money for eight unregistered
private placements in oil and gas interests that Alfaro also ran.
The Temporary Cease and Desist Order was issued by FINRA in January. However,
despite this, according to FINRA, Pinnacle continued to "market oil
and gas offerings through material
misrepresentations, with the intent to deceive investors." As quoted in the article,
FINRA suspended the pair because they posed "a serious risk to the
The Texas State Securities Board issued a
Consent Cease-and-Desist Order against Alfaro and Pinnacle in March.