UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 

Release No. 89333 / July 16, 2020 

ADMINISTRATIVE PROCEEDING

File No. 3-17582

In the Matter of

Weatherford International PLC, f/k/a 

Weatherford International LTD., James 

Hudgins, CPA, and Darryl Kitay, CPA

 

Respondents.

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ORDER APPOINTING 

FUND ADMINISTRATOR 

AND SETTING BOND 

AMOUNT

ADMINISTRATIVE PROCEEDING

File No. 3-17628

In the Matter of

Ernst & Young LLP, Craig R.

Fronckiewicz, CPA, and Sarah E. 

Adams, CPA

Respondents.

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On September 27, 2016, the Commission issued an Order Instituting Public 

Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act 

of 1933, Sections 4C and 21C of the Securities Exchange Act of 1934, and Rule 102(e) of the 

Commission's Rules of Practice, Making Findings, and Imposing Remedial Sanctions and a 

Cease-and-Desist Order ("Order") (“Order”)1 against Weatherford International, PLC, f/k/a/ 

Weatherford International LTD (“Weatherford”), James Hudgins, CPA, and Darryl Kitay, CPA,

 

1

 Securities Act Rel. No 10221 (Sep 27, 2016).
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(collectively, the “Respondents”). In the Order, the Commission found that, between 2007 and 

2012, Weatherford, a large multinational provider of oil and natural gas equipment and services, 

issued false financial statements that inflated its earnings by over $900 million in violation of 

Generally Accepted Accounting Principles ("GAAP"). As a result, Weatherford was forced to 

restate its financial statements on March 8, 2011, and again in February and July 2012. 

As a result of the conduct described in the Order, the Commission ordered the Respondents to 

pay a total of $140,364,067 in disgorgement, prejudgment interest, and civil money penalties. 

All the amounts ordered have been paid. Pursuant to Section 308(a) of the Sarbanes-Oxley Act 

of 2002 (“Sarbanes-Oxley”), as amended, the Order created a Fair Fund (the “Fair Fund”) for

distribution of the amounts ordered to harmed investors. 

On October 18, 2016, the Commission issued an Order Instituting Cease-and-Desist 

Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the 

Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a 

Cease-and-Desist Order (the “Order”) against Ernst & Young LLP, Craig R. Fronckiewicz, CPA, 

and Sarah E. Adams, CPA (collectively, the “Respondents”). According to the Order, the 

Respondents violated the federal securities laws and engaged in improper professional conduct 

while serving as the external auditor, coordinating (i.e., signing) partner, and tax partner, 

respectively for Weatherford in connection with its 2007-2010 financial statements. As a result 

of this conduct, the Commission ordered the Respondents to pay a total of $11,840,107 in 

disgorgement, prejudgment interest, and civil money penalties to the Commission, and created a 

Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley. 
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On November 30, 2017, the Commission issued an Order consolidating the Weatherford 

and Ernst & Young Fair Funds into a single Fair Fund for distribution to harmed investors, for a 

total Fair Fund in the amount of $152,204,174. 

The Division of Enforcement now seeks the appointment of Epiq Systems, Inc. (“Epiq”) 

as the fund administrator and requests that the administrator’s bond be set at $152,204,174. Epiq 

is included in the Commission’s approved pool of administrators.

Accordingly, IT IS HEREBY ORDERED that Epiq is appointed as the fund 

administrator, pursuant to Rule 1105(a) of the Commission’s Rules of Fair Fund and 

Disgorgement Plans (“Commission’s Rules”),2 and shall obtain a bond in accordance with Rule 

1105(c) of the Commission’s Rules3in the amount of $152,204,174.00.

For the Commission, by the Division of Enforcement, pursuant to delegated authority.4

Vanessa A. Countryman

Secretary

 

2

 17 C.F.R. § 201.1105(a).

3

 17 C.F.R. § 201.1105(c).

4

 17 C.F.R. § 200.30-4(a)(17).