Pinnacle Business Management (Prev SRCI)

[janice shell]

UPDATE: PINNACLE BUSINESS MANAGEMENT, INC. N/K/A SERAC HOLDINGS, INC. (Pink Sheets: SRCI) - FIRE SALE

June 29, 2004

A fire at an auto dealership in Pennsylvania hardly seems like a national business news story, but investors in a company once known as Pinnacle Business Management, Inc. would probably disagree. The All-Pro Auto Mall, which was destroyed by fire last week, once served as the focal point of a stock scheme that caused small investors to lose a bundle.

In other words, hundreds of people who invested in Pinnacle Business Management, Inc. know what it is like to be burned.

In early 2001, Pinnacle agreed to acquire the All-Pro Auto Mall and related businesses in Western Pennsylvania from Vincent and Kim LoCastro. A used car dealership in Canonsburg was central to those All-Pro Ventures. See 3 E International Corp. - From All Pro To All That Dough. Pinnacle indicated that it would make the All-Pro operations the focal point of its business. Those who relied upon Pinnacle's promises were destined to be disappointed when the Company failed to perform and the Securities and Exchange Commission came knocking on the door. See Update: Pinnacle Business Management, Inc. - Trading, No. Fraud Claims, Yes.

In consideration for the All-Pro "empire," Pinnacle gave the LoCastros 83.3 million shares of Pinnacle common stock and a promissory note for more than $6.6 million to the LoCastros. The catch was simple. If Pinnacle failed to pay the note when it came due, the LoCastros would get their business back. See Update: 3 E International Corp. and Pinnacle Business Management, Inc. - Less Than Meets The Eye.

Which is precisely what happened - but not before Pinnacle touted plans to spin-off the All-Pro operations as a separate public company. See Update: Pinnacle Business Management, Inc. - No Pro And No Dough. Those promises caused the SEC to file a suit charging Pinnacle, Vincent LoCastro and Pinnacle's Chief Executive Officer, Jeffrey Turin, with issuing false and misleading press releases.

Back in the hands of the LoCastros, the All-Pro Auto Mall now has a new share of woes. According to published reports, the fire at the dealership probably was started intentionally on Wednesday. Employees apparently put out Wednesday's fire, but the local assistant fire chief, Tim Solobay, says it reignited the next day, either on its own or through the efforts of the same culprit.

Vincent LoCastro, who is now barred from serving as an officer of a public company by virtue of the SEC's case against Pinnacle, informed local reporters that the corporation hoped to rebuild within six months. While the fire destroyed ten cars, another 100 cars in a separate lot were unharmed.

Pinnacle, which changed its name to Serac Holdings, Inc. (Pink Sheets: SRCI) in April 2004, has not issued any comment.

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