In the Matter of William D. King, CPA Admin. Proc. File No. 3-19991
Oct. 5, 2022
On September 11, 2020, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against William D. King, CPA (“King” or the “Respondent”). In the Order, the Commission found that from August 2015 through September 2018, King solicited clients to invest in a penny stock issuer, American Rebel Holdings, Inc. (“AREB”). King did not disclose that he received $72,250 in AREB shares as a commission for soliciting sales nor that he retained $447,384 in AREB shares as fees. The Commission also found that King operated as a broker-dealer through his solicitation of investors and other activities without registering to do so.
The Commission ordered the Respondent to pay $519,634.00 in disgorgement, $33,388.13 in prejudgment interest, and a $75,000.00 civil money penalty, for a total of $628,022.13, to the Commission, pursuant to a payment plan detailed therein. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty paid, along with the disgorgement and interest paid, can be distributed to harmed investors (the “Fair Fund”). See the Commission’s Order: Release No. 34-89848.
The Fair Fund consists of the $628,022.13 paid by the Respondent. The Fair Fund has been deposited in an interest-bearing account at the U.S. Department of the Treasury’s Bureau of the Fiscal Service, and any accrued interest will be added to the Fair Fund.
On October 14, 2021, the Commission issued an order appointing Miller Kaplan Arase LLP, as the Tax Administrator of the Fair Fund. See the Commission’s Order: Release No. 34-93321.
On December 29, 2021, the Commission issued an order appointing Analytics Consulting LLC, as the Fund Administrator to oversee the administration and distribution of the Fair Fund and, set the administrator’s bond amount. See the Commission’s Order: Release No. 34-93879.
On April 19, 2022, the Commission published a notice of the proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (“Proposed Plan”). The notice provides the public with 30 days to submit their comments on the Proposed Plan. See the Commission’s Notice: Release No. 34-94758 and the Proposed Plan.
The Proposed Plan provides that the distribution of the Fair Fund shall be made to those injured investors who suffered a recognized loss as calculated by the methodology used in the plan of allocation in the Proposed Plan.
On June 1, 2023, the Commission issued an order approving the disbursement of $490,537.31 from the Fair Fund for distribution to eligible investors. See the Commission’s Order: Release No. 34-97636.
On June 16, 2022, the Commission issued an order approving the Proposed Plan and simultaneously posted the approved plan of distribution (the “Plan”). See the Commission’s Order: Release No. 34-95109 and the Plan.
For more information, please contact the Fund Administrator:
Analytics Consulting LLC
Telephone Number: 877-318-1027