SEC Charges Business Advisor for Failing to Disclose Compensation Related to Investments in Penny Stock

ADMINISTRATIVE PROCEEDING
File No. 3-19991

September 11, 2020 - The Securities and Exchange Commission today announced settled charges against William D. King, a Florida-based business advisor, for failing to disclose the compensation he received related to investment advice he provided to his clients.

The SEC's order finds that, from August 2015 until September 2018, King solicited clients to invest in a penny stock issuer, American Rebel Holdings, Inc. (AREB). According to the order, 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. Further, the order finds that King operated as a broker-dealer through his solicitation of investors and other related activities without registering to do so.

The order finds that King violated Sections 206(2) and 206(3) of the Investment Advisers Act of 1940 for his disclosure failures and Section 15(a) of the Securities Exchange of 1934 for operating as an unregistered broker-dealer. Without admitting or denying the findings, King agreed to cease and desist from any violations and future violations of the charged provisions and pay disgorgement of $519,634, prejudgment interest of $33,388, and a civil penalty of $75,000. In addition, King also agreed to an associational bar, investment company prohibition, and penny stock bar, with a right to reapply after three years.

The SEC's investigation was conducted by Kyle Bradley of the Atlanta Regional Office and was supervised by Natalie Brunson and Justin Jeffries.