Pinnacle Security

Wow! SAFE Security is really making news lately. First, it was acquired late last year by ICV Partners, a New York-based investment firm focused on lower middle-market companies.

Then, it announced earlier this month that it had just bought about 24,000 alarm monitoring accounts from Orem, Utah-based Pinnacle Security—a summer-model company the select assets of which Protection 1 recently purchased.

Now, SAFE announced today that it’s entering the DIY home security market by launching a new division, SAFE@home, that “allows homeowners to self install a Honeywell wireless security system with professional monitoring.”

Here’s more from a news release from the San Ramon, Calif.-based company, which has operations in 44 states:
 

SAFE Security, one of the nation’s largest security alarm companies has launched a new division, SAFE@home. This new division will enable a consumer to self install a wireless security system at their home with ease. This DIY home alarm system will include professional UL certified Five Diamond monitoring by SAFE Security and will not require a phone line. The home security system can be controlled remotely by a smartphone or tablet via Honeywell’s Total Connect. The system is available across the continental US.

“With an increased demand in the residential security market for a self installed alarm system coupled with increased technology that allows for a wireless security system to be setup in minutes, SAFE@home is well positioned to be a leader in the DIY security space,” said Paul Sargenti, SAFE’s President and CEO. “We’ve partnered with Honeywell to provide a state of the art wireless security system and will accommodate Wi-Fi for IP alarm communications. This will allow our customers to take advantage of being able to self-install their wireless security system. By enabling our customers to self install, they will save money by not requiring an alarm company to install the alarm system.”

Customers can select from 3 complete packages and add on additional hardware to best fit their needs.

I’ve reached out to Sargenti to learn more about all these developments. Look for more about SAFE Security on our site in the near future.

I just learned today that summer-sales-model company Pinnacle Security has agreed to pay a $1 million fine in a long-term settlement to the state of Illinois for such alleged violations as “slamming” customers and even hiring felons as sales reps.

In reaching the agreement, Pinnacle neither admitted nor denied the allegations. And the company sent me the following statement:

Pinnacle Security is pleased that it has come to a settlement with the Department of Financial and Professional Regulation of the State of Illinois to the parties' mutual satisfaction. Pinnacle Security has worked closely to address the generally historical issues related to licensing requirements of our sales representatives that allegedly took place as early as 2006.

Since 2010, Pinnacle has implemented industry-leading compliance initiatives to help ensure that Pinnacle's sales representatives meet all city, county and state licensing requirements.  We are confident that through this agreement, Pinnacle will continue to provide its thousands of customers in the state of Illinois superior support and customer service.

Here’s what the state said in its Oct. 31 news release:

State regulators announced today they have reached a long-term settlement agreement with Pinnacle Security, LLC, headquartered in Orem, Utah and licensed to sell home and business security systems in Illinois.  The Department of Financial and Professional Regulation (IDFPR) alleged in its order that Pinnacle had sold its services using unfair and deceptive trade practices, knowingly hired unlicensed sales personnel, and allowed employees with criminal histories to sell their products door-to-door to Illinois consumers.  The company also ‘slammed’ consumers by changing their alarm service using fraudulent and deceptive means.

“When homeowners purchase security systems to protect their families from crimes, they should at least be assured that the company with which they do business is following Illinois laws,” said Jay Stewart, Director, Division of Professional Regulation, IDFPR.  “With this settlement agreement, families doing business with Pinnacle Security, LLC will know that Illinois’ consumer protection agency is making sure they meet their obligations.”

The investigation conducted by IDPFR included issuing subpoenas for all employees working in Illinois and found that 700 of the 1,100 were not licensed by the state.  Further, several of the employees listed on the employee roster had been charged with or convicted of felonies, including larceny, robbery, theft, conspiracy to commit burglary, aggravated criminal sexual abuse, assault, domestic battery, and possession of controlled substances, any of which would have been cause to deny a license, had an application been filed.

The case was referred to IDFPR by Illinois Attorney General Lisa Madigan, after her office settled a lawsuit to protect prospective customers.   Today’s settlement includes payment of a one million dollar fine, of which $250,000 has already been paid, a two-year ban on new sales to Illinois consumers, supervision of Pinnacle’s ongoing business of overseeing already installed security systems and five years of supervised probation by the Illinois.

Pinnacle has settled similar complaints made by other states, although the amount of this fine stands out.

Pinnacle has told Security Systems News that the company had some issues in past years with “rogue” door-knocking sales staff.  However, in 2010, Pinnacle made a company cultural shift to emphasize a code of ethics for employees and the implementation of new ways to monitor their behavior and enforce the code.