Ten individuals from the Kansas City area are suing an Overland Park, Kansas-based investment group that recommended investing in a Florida-based firm that’s now going through a $283 million bankruptcy.
The lawsuit identifies Pinnacle Plus Capital, Pinnacle Plus Financial and Pinnacle Wealth Management, which share an Overland Park office. It also names Matthew Walker, the group’s owner, as well as George Gille and Travis Horn.
All three men recommended their clients invest in Florida-based 1st Global Capital. Court records show about 160 1st Global Capital accounts tied to Kansas City addresses.
Clients invested in “memorandums of indebtedness” from 1st Global Capital, which would then finance small businesses with proceeds from memorandums of indebtedness sold by firms like Pinnacle Plus.
The lawsuit filed by the Kansas City investors said said Pinnacle advisers told clients they would earn substantial interest on their investments, in some cases between 10 and 13 percent.
Read more: Kansas City Star