UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 

Release No. 99215 / December 20, 2023

ADMINISTRATIVE PROCEEDING

File No. 3-19927

In the Matter of

Super Micro Computer, Inc., 

Respondent.

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ORDER APPROVING 

APPLICATION OF FUND 

ADMINISTRATOR FOR PAYMENT 

OF FEES AND EXPENSES AND 

APPROVAL OF FUTURE FEES 

AND EXPENSES

ADMINISTRATIVE PROCEEDING

File No. 3-19928

In the Matter of

Howard Hideshima,

Respondent.

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On August 25, 2020, 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 a Cease-and-Desist Order

(the “SMC Order”)1against Super Micro Computer, Inc. (the “SMC”). In the SMC Order, the 

Commission found that that SMC, a producer of computer servers headquartered in California, 

engaged in improper accounting—prematurely recognizing revenue and understating expenses 

from at least fiscal year (“FY”) 2015 through FY 2017. As a result, SMC filed with the 

Commission materially misstated financial statements in its annual, quarterly and current reports 

during the period. 

Also on August 25, 2020, in a related matter, the Commission issued a Corrected 

Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities 

Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order (“Hideshima 

1 Securities Act Rel. No. 10822 (Aug. 25, 2020).
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Order”) against Howard Hideshima (“Hideshima”),2the former Chief Financial Officer of 

SMC. The Commission determined that Hideshima engaged in improper accounting and caused 

internal accounting controls failures, which resulted in SMC systematically prematurely 

recognizing and reporting revenue and understating expenses from at least FY 2015 through FY

2017. The Commission further determined that, from at least FY 2015 through FY 2017, 

Hideshima signed and/or approved annual, quarterly and current reports with the Commission that

contained materially misstated financial statements. 

As a result of the conduct described in the SMC Order and Hideshima Order 

(collectively, the “Orders”), the Commission ordered SMC to pay a civil money penalty of 

$17,500,000.00, and Hideshima to pay disgorgement of $260,844.00, prejudgment interest 

of $40,212.00, and a civil money penalty of $50,000.00, to the Commission. In the SMC 

Order, the Commission created a Fair Fund (the “Fair Fund”), pursuant to Section 308(a) of the 

Sarbanes-Oxley Act of 2002, so the collected civil penalty could be distributed to investors 

harmed by the conduct described in the Orders. In the Hideshima Order, the Commission 

also established a Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002,

and ordered it to be added to the Fair Fund established in the SMC Order, so the collected 

civil penalty, along with collected disgorgement and prejudgment interest, could be 

combined into one fund for distribution to investors harmed by the conduct described in the 

Orders.

The Fair Fund is comprised of the $17,851,056.00 paid by SMC and Hideshima, pursuant 

to the Orders. Any additional funds ordered to be combined with the Fair Fund, as well as 

accrued interest, will be added to the Fair Fund.

On December 22, 2020, the Division of Enforcement, pursuant to delegated authority, 

issued an order appointing Kurtzman Carson Consultants, LLC as the fund administrator (the 

“Fund Administrator”) of the Fair Fund and set the administrator’s bond amount.

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In accordance with Rule 1105(d) of the Commission’s Rules,4the Fund Administrator 

has submitted to the Commission staff an invoice for services rendered from December 22, 2020, 

through July 31, 2023, totaling $455,627.22. The Commission staff has reviewed the Fund 

Administrator’s invoices, confirmed that the services have been provided, and finds the fees and 

expenses of $455,627.22 to be reasonable. The Commission staff has requested that the 

Commission authorize the Office of Financial Management (“OFM”) to pay the Fund 

Administrator’s fees and expenses of $455,627.22 from the Fair Fund in accordance with Rule 

1105(e) of the Commission’s Rules.5 

Additionally, to expedite and streamline the process for future payments, the Commission 

staff has requested that the Commission authorize OFM, at the direction of an Assistant Director 

2 Exchange Act Rel. No. 89657 (Aug. 25, 2020). The Hideshima Order was corrected from its original form to 

combine the Fair Fund created therein to the Fair Fund established in the SMC Order for distribution. See Paragraph 

IV.C. of the Hideshima Order.

3

 Order Appointing Fund Administrator and Setting Bond Amount, Exchange Act Rel. No. 90784 (Dec. 22, 2020).

4

 17 C.F.R. § 201.1105(d).

5

 17 C.F.R. § 201.1105(e).
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of the Office of Distributions, to pay the Fund Administrator’s future fees and expenses from the 

Fair Fund so long as the total amount paid to the Fund Administrator, including the invoice to be 

paid, does not exceed the total amount of the approved cost proposal submitted by the Fund 

Administrator.

Accordingly, it is hereby ORDERED, pursuant to Rule 1105(d) of the Commission’s 

Rules,6that OFM pay the Fund Administrator’s fees and expenses of $455,627.22 from the Fair 

Fund in accordance with Rule 1105(e) of the Commission’s Rules.7 Further, OFM is authorized 

to pay, at the direction of an Assistant Director of the Office of Distributions, any future fees and 

expenses of the Fund Administrator from the Fair Fund in accordance with Rule 1105(e) of the 

Commission’s Rules,8so long as the total amount paid to the Fund Administrator, including the 

invoice to be paid, does not exceed the total amount of the approved cost proposal submitted by 

the Fund Administrator.

For the Commission, by the Division of Enforcement, pursuant to delegated authority.9

Vanessa A. Countryman

Secretary 

6

 17 C.F.R. § 201.1105(d).

7

 17 C.F.R. § 201.1105(e).

8

 17 C.F.R. § 201.1105(e).

9

 17 C.F.R. § 200.30-4(a)(21)(vi).