In the Matter of Frontier Wealth Management, LLC, et al.

Admin. Proc. File No. 3-20526

On September 3, 2021, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against Frontier Wealth Management, LLC and Shawn Sokolosky (collectively, the “Respondents”). In the Order, the Commission found that from January 2016 to February 2018, Frontier failed to adopt and implement written policies and procedures reasonably designed to prevent its investment advisory representatives from recommending certain types of complex products to clients for whom they were not suitable. In total, the Commission ordered the Respondents to pay $261,617 in disgorgement, $47,095 i prejudgment interest, and $450,000 in civil money penalties, for a collective total of $758,712, to the Commission. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalties paid, along with the disgorgement and interest paid, can be distributed to harmed investors (the “Fair Fund”). See the Commission’s Order: Release No. 33-10978.

The Fair Fund consists of the $758,712 paid by the Respondents.

On January 18, 2023, the Commission issued an order appointing Heffler, Radetich & Saitta, LLP, as the Tax Administrator of the Fair Fund. See the Commission’s Order: Release No. 34-96692.

On October 17, 2023, 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. 34-98762 and the Proposed Plan.

The Proposed Plan provides for the distribution of the Fair Fund to compensate investors for management fees paid in connection with their investment in the Frontier Permo Fund from February 1, 2016 through February 28, 2018, inclusive, and who suffered a loss as calculated by the methodology used in the Plan of Allocation attached as Exhibit A to the Proposed Plan.

On December 12, 2023, the Commission issued an order approving the Proposed Plan and simultaneously published the approved Plan of Distribution (the “Plan”). See the Commission’s Order: Release No. 34-99145 and the Plan.

For more information, please contact the Fund Administrator:

Jennifer Cardello
Telephone Number: (617) 573-4577
Email: cardelloj@sec.gov