F.B.I. investigating Pinnacle Workforce Solutions for possible fraud.

The Federal Bureau of Investigation, in conjunction with the Monterey County District Attorney's Office and the Monterey Police Department, is investigating the collapse of the Pinnacle Workforce Solutions.

In the last week of September the Monterey-based payroll and human resources firm had insufficient funds of $1.3 million and were unable to process their clients payroll, says Chief Assistant DA Berkley Brannon.

The company still owes its hundreds of clients nationwide, as well as dozens locally, hundreds of thousands of dollars.

On Oct. 9, Special Agent Roahn Wynar with the F.B.I.'s San Francisco office sent an email to all former Pinnacle clients asking for them to participate in the investigation.

"The purpose of this letter is to notify your company that it may be the victim of fraud," Wynar wrote in the email.

He then asked former clients to answer eight questions on their relationship with the defunct company.

The F.B.I.'s involvement comes from the possibility that Pinnacle did not distribute their clients' payroll tax dollars to the Internal Revenue Service, a federal crime.

"The investigating agencies respectfully request that your company conduct a careful examination of its financial exposure to Pinnacle’s collapse," Wynar continued in the email. "In particular, it may be that your company’s state and/or federal payroll taxes were not paid for several quarters."

Local clients become concerned Oct. 3 when their employees payroll checks began to bounce.

The owner and general manager John McEwen tried to tell customers that the payroll problems would be resolved soon.

But IT Director Andrew Samson took it upon himself on Oct. 5 to inform clients on the direness of Pinnacle's situation.

On Oct. 6, all of the firm's nearly two dozen employees were laid off.