UNITED STATES OF AMERICA

UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934

Release No. 99145 / December 12, 2023

ADMINISTRATIVE PROCEEDING

File No. 3-20526

:

In the Matter of

:

:

Frontier Wealth Management, LLC :

and Shawn Sokolosky,

:

:

Respondents.

:

ORDER APPROVING

PLAN OF DISTRIBUTION

On September 3, 2021, the Commission issued an Order Instituting Administrative and

Cease-and-Desist Proceedings, Pursuant to 8A of the Securities Act of 1933, Sections 203(e),

203(f) and 203(k) of the Investment Advisers Act of 1940, and Section 9(b) of the Investment

Company Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-andDesist Order (the “Order”)1 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 (“IARs”) from

recommending certain types of complex products to clients for whom they were not suitable.

The Commission ordered the Respondents to pay $261,617.00 in disgorgement, $47,095.00 in

prejudgment interest, and $450,000.00 in civil money penalties, for a collective total of

$758,712.00, 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”).

The Fair Fund includes the $758,712.00 paid by the Respondents. The assets of the Fair

Fund are subject to the continuing jurisdiction and control of the Commission. The Fair Fund

and has been deposited in a Commission-designated account at the U.S. Department of the

Treasury, and any interest accrued will be added to the Fair Fund.

On October 17, 2023, the Division of Enforcement, pursuant to delegated authority,

published a Notice of Proposed Plan of Distribution and Opportunity for Comment (“Notice”),2

pursuant to Rule 1103 of the Commission’s Rules on Fair Fund and Disgorgement Plans

(“Commission’s Rules”);3 and simultaneously posted the Proposed Plan of Distribution (the

1

Securities Act Rel. No. 10978 (Sept. 3, 2021).

Exchange Act Rel. No. 98762 (Oct. 17, 2023).

3

17 C.F.R. § 201.1103.

2

“Proposed Plan”). The Notice advised interested persons that they could obtain a copy of the

Proposed Plan from the Commission’s public website or by submitting a written request to

Jennifer Cardello, via email at cardelloj@sec.gov. The Notice also advised that all persons

desiring to comment on the Proposed Plan could submit their comments, in writing, within 30

days of the Notice. The Commission received no comments on the Proposed Plan during the

comment period.

The Proposed Plan provides for the distribution of the Net Available Fair Fund4 to

compensate investors based on management fees paid in connection with their investment in the

Frontier Permo Fund from February 1, 2016 through February 28, 2018, inclusive, as calculated

by the methodology used in the Plan of Allocation in the Proposed Plan.

The Division of Enforcement now requests that the Commission approve the Proposed

Plan.

Accordingly, it is hereby ORDERED, pursuant to Rule 1104 of the Commission’s Rules,5

that the Proposed Plan is approved, and the approved Plan of Distribution shall be posted

simultaneously with this order on the Commission’s website at www.sec.gov.

For the Commission, by the Division of Enforcement, pursuant to delegated authority.6

Vanessa A. Countryman

Secretary

4

All capitalized terms used herein but not defined shall have the same meanings ascribed to them in the Proposed

Plan.

5

17 C.F.R. § 201.1104.

6

17 C.F.R. § 200.30-4(a)(21)(iv).

2