Welcome to Financial Advisor IQ
Follow

Kansas City Firm and Owner Named in Multimillion Suit

October 5, 2018

Ten investors in the Kansas City area are suing Pinnacle Plus Wealth Management and associated companies, as well as their owner, over $2.5 million in losses they say they suffered as a result of investment recommendations by the firm’s representatives, the Kansas City Star writes.

The suit also names Pinnacle Plus Capital, Pinnacle Plus Financial and the owner of the group, Matthew Walker, as well as George Gille and Travis Horn, according to the paper.

Walker and Gille have been registered as investment advisors with Pinnacle Plus Wealth since 2009, according to SEC records.

Horn was a registered broker with New England Securities until 2008 and hasn’t registered with another firm since then, according to BrokerCheck records.

The suit alleges the firms, along with the three men, recommended their clients invest in Florida-based 1st Global Capital and received commissions from those investments, the Star writes.

In some cases the investors allegedly put their life savings into 1st Global Capital memorandums of understanding — a type of loan contract, which the company would then allegedly lend to small businesses, according to the lawsuit cited by the paper.

Pinnacle advisors, meanwhile, told investors they would earn up to 13% interest — but 1st Global Capital went bankrupt this summer, according to the paper.

(Getty)

Walker and the Pinnacle companies didn’t return the Star’s calls for comment, the paper writes. Bankruptcy records show more than 4,000 1st Global Capital accounts around the country, sold by several advisors in different states, the Star writes.

By Alex Padalka
  • To read the Kansas City Star article cited in this story, click here.
  • To read the Kansas City Star article cited in this story, click here.