I'm sure RITE CEO will address that issue
actually, they will be forced to address that issue and if RITE has already received some funding from Alpine, thats on Alpine not on RITE as RITE is not in any legal disputes etc
feel free to message RITE IR here
https://mineral-rite.com/investor-relations/
as you can see below, all of the issues with ALPINE go back to 2017 or earlier through 2023, long before RITE had any contact with them.
due to this, it would be interesting to hear Mr. James Burgaue's take on this as Alpine has been dealing with FINRA and SEC issues for 4 years or so
also in my post below (at bottom of this post) you will see that RITE is in a 'NON-EXCLUSIVE" agreement with ALPINE, therefore, my guess is the CEO is already in contact with other firms and or banks/financiers across the country, more importantly is the REG-S filing with an international source
https://www.alpine-securities.com/alpine-docs/Statement-of-Financial-Condition-09-30-2024.pdf
Legal. The Company may, from time to time, be named as a defendant in civil actions or a respondent in regulatory
actions. The Company is subject to the regulatory and civil actions discussed below.
On July 25, 2019, FINRA initiated an Enforcement Action in which FINRA alleged that the Company charged
excessive fees to customers. (See FINRA No. 2019061232601.) The Company has denied these allegations. The
hearing in that matter concluded in September 2021. On March 22, 2022, the Hearing Panel issued a Decision in
which the Panel found that the Company converted and misused customer funds and securities, charged customers
unreasonable and discriminatory fees, and made an unauthorized capital withdrawal. The sanction order includes
expulsion and $2,310,234 restitution. The Panel Decision also contains a permanent cease-and-desist order
(“PCDO) that prohibits the Company from charging certain fees to customers. On April 15, 2022, the Company
filed a notice of appeal, which stays the sanctions, except for the PCDO. In satisfaction of the order, a deposit of
$2,310,234 was placed in an escrow account pending the appeal. The appeal remains pending.
On April 19, 2023, FINRA initiated a related action to the fee case described above based on allegations that
Company violated the PCDO. (See FINRA No. 2019061235603.) FINRA seeks expulsion for the alleged
violations. Alpine has denied the allegations and the expedited hearing commenced on June 5, 2023. On June 7,
2023, the hearing was stayed by order of the D.C. Circuit Court of Appeals pending resolution of Alpine’s claims
that FINRA’s governance and structure is unconstitutional. On November 22, 2024, the D.C. Circuit Court of
Appeals granted Alpine’s motion for a preliminary injunction based on the holding that Alpine has demonstrated a
likelihood of success on its claim that FINRA’s expedited proceeding violated the private nondelegation doctrine.
The Court ruled that the FINRA hearing could resume but that no expulsion could become effective until after
review. In the event that an expulsion order is ultimately reviewed by the agency. If an expulsion order is affirmed,
the Company would be required to cease operations until it could seek and obtain a stay order from the district court.
The impact to the Company’s business could be significant and material.
On August 26, 2021, the SEC filed an Order Instituting Proceedings (“OIP”) pursuant to Section 15(b) of the
Securities Exchange Act of 1934 (SEC Administrative Procedures File. No. 3-20485). The OIP is a follow-on action
that stems from the 2017 SEC civil action filed in the Southern District of New York. In the SDNY matter, the court
found that Alpine had violated the books and records provisions of Section 17(a) of the Exchange Act and Rule
17a-8 thereunder, entitled “Financial recordkeeping and reporting of currency and foreign transactions.”
Under
the OIP, the Commission will consider whether Alpine should be subject to any further sanctions based on that
conduct. Discovery and briefing in the OIP matter are underway.
On August 10, 2022, the Securities and Exchange Commission filed an action in federal court in the District of
Nevada alleging violations of Section 10(b) and Section 15 based on a subset of the same events in 2019 that were
the subject of the above-referenced FINRA proceeding. Both parties have sought summary judgment; the matter is
pending before the District Court.
On October 27, 2023, Alpine filed an action in the District Court of Utah challenging the constitutionality of the
structure and operations of the Depository Trust Clearing Corp (“DTCC”) and National Securities Clearing
Corporation “(NSCC”). On November 9, 2023, DTCC issued to Alpine a Notice of Determination to Cease to Act.
Alpine requested a Hearing on that Notice and the Hearing commenced on March 18, 2024. The DTCC Hearing
Panel consisting of members of its Board issued a decision expelling Alpine from membership. Alpine filed an
appeal to the SEC and sought a stay of the DTCC decision which was granted by the SEC and remains in effect.
Alpine also sought a preliminary injunction from the District Court which was denied; that issue is now pending
before the Tenth Circuit Court of Appeals. Alpine remains in full compliance with the excess net capital
requirements that are the subject of that proceeding but if its appeal of the decision to the SEC and thereafter to the
court is unsuccessful, the impact to the Company’s business could be significant and material.
Page 8
ALPINE SECURITIES CORPORATION
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
NOTE 12 - COMMITMENTS AND CONTINGENT LIABILITIES (Continued)
During 2014 to 2019, the IRS conducted a lengthy audit of Alpine’s tax withholdings for certain foreign accounts
for the tax period 2011 and 2012. On August 9, 2019 the IRS issued a tax assessment totaling $1,957,705.96. In
September 2019, Alpine paid the required quarterly payment in the amount of $66,947.72 to the IRS.
Immediately, thereafter, Alpine filed a tax refund request, which the IRS did not take any action on. On November
19, 2021 Alpine filed a complaint for tax refund and to challenge the legality of the assessment in the U.S. District
Court of Utah, Central Division, 21-cv-00683. In the government answer, the U.S. made a counterclaim seeking
the full assessment amount of $2,396,474.25 plus interest. On September 23, 2022, Alpine filed a summary
judgement motion seeking to dismiss the action. The government has responded and raised a jurisdictional issue.
Summary judgment decision remains pending. Based on counsel’s assessment of the contingent liability Alpine
expects to prevail on its challenge to the IRS assessment and has not made any contingent liability reservation for
this matter.
Other legal matters in which Company is involved but not named as a defendant or respondent, are described
below.
In July 2021, the Company filed lawsuits seeking to recover funds based on allegations that a former officer and an
accomplice misappropriated approximately $1,300,000 million in funds. The majority of the funds have been
remanded to the court and are held and awaiting the resolution of this action. These matters, which are taking place
in both civil and FINRA Arbitration forums, are ongoing, and the Company expects to prevail. No accrual has been
made.
In 2018, Company also filed suit against its former CEO, Chris Frankel, alleging breaches of confidentiality and
trade secret agreements. In May 2021 the jury awarded Alpine $932,000 in unjust enrichment damages. Frankel
has filed several posting hearing motions and appeals which are being addressed by the courts. Company expects
the jury decision against Frankel will be affirmed. No accrual has been made.
Legal Expense Accrual. The Company estimates the legal expenses monthly which necessitated a rever
https://www.alpine-securities.com/
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