U.S. Securities and Exchange Commission Litigation Release No. 26347, dated July 11, 2025.
The SEC has dismissed its civil enforcement action against Pinnacle Advisors, LLC, and four individuals. The dismissal was filed as a joint stipulation between the SEC and the defendants, indicating an agreement to end the litigation with prejudice. This decision was made by the SEC in the exercise of its discretion and as a policy matter.
In Plain English
Imagine the SEC was like a referee in a game, and they accused a team (Pinnacle Advisors and its players) of breaking the rules. The SEC decided to stop the game and dismiss the case against that team. It's like saying, 'We're not going to pursue this particular game anymore,' but it doesn't necessarily mean the team did nothing wrong in other games.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
How the Alleged Scheme Worked
- SEC Files Complaint On May 5, 2023, the Securities and Exchange Commission (SEC) initiated a civil enforcement action by filing a Complaint against Pinnacle Advisors, LLC, Robert F. Cuculich, Benjamin R. Quilty, Mark E. Wadach, and Lawton A. Williamson. This marked the beginning of the legal proceedings in the Northern District of New York.
- Defendants Move to Dismiss Shortly after the Complaint was filed, on July 11, 2023, the Defendants formally moved to dismiss the SEC's case. This is a common procedural step where defendants argue that the claims against them are legally insufficient.
- Court Denies Initial Dismissal The Court initially considered the Defendants' motions. On March 27, 2025, the Court denied these motions but granted the Defendants leave to refile their motions within thirty days. This was to allow them to address a recent Supreme Court decision, Loper Bright Enters. v. Raimondo.
- Defendants Refile Motions Following the Court's order, the Defendants proceeded to refile their motions to dismiss the Complaint on April 28, 2025. This indicated their continued belief that the SEC's case lacked legal merit.
- SEC and Defendants Agree to Dismissal Instead of proceeding with further litigation, the SEC and the Defendants submitted a Joint Stipulation to Dismiss the case with prejudice. This agreement signifies a mutual decision to end the litigation.
- SEC Exercises Discretion The Securities and Exchange Commission announced that it determined the dismissal of this action was appropriate in the exercise of its discretion and as a policy matter. The SEC stated that this decision does not necessarily reflect its position on any other case.
- Litigation Dismissed With Prejudice On July 11, 2025, the Court was presented with the Joint Stipulation. Pursuant to Fed. R. Civ. P. 41(a)(1)(A)(ii), the litigation was dismissed with prejudice as to the conduct alleged in the Complaint through the date of the stipulation, meaning the SEC cannot bring the same claims again.
- No Costs or Fees As part of the stipulation, the dismissal was agreed upon without costs or fees to either party. This means neither the SEC nor the Defendants will pay the other's legal expenses related to this specific litigation.
- Defendants Waive Claims and Fees The Defendants, in turn, waived and released any rights to seek reimbursement for attorney's fees or other costs under laws like the Equal Access to Justice Act. They also released the SEC and its employees from any claims arising from or relating to the litigation and prior investigative steps.
The Enforcement Action
The Securities and Exchange Commission announced the dismissal, with prejudice, of its civil enforcement action against Pinnacle Advisors, LLC, Robert F. Cuculich, Benjamin R. Quilty, Mark E. Wadach, and Lawton A. Williamson. The dismissal was filed via a joint stipulation between the Commission and the Defendants. The Commission stated that the decision to seek dismissal was made in the exercise of its discretion and as a policy matter, and does not necessarily reflect its position on any other case. The litigation was filed on May 5, 2023, and the dismissal was agreed upon on July 11, 2025.