UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 

Release No. 99941 / April 11, 2024

ADMINISTRATIVE PROCEEDING

File No. 3-17956

In the Matter of

MagnaChip Semiconductor 

Corporation and Margaret HyeRyoung Sakai, CPA,

Respondents.

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ORDER APPROVING APPLICATION OF 

FUND ADMINISTRATOR FOR 

PAYMENT OF FEES AND EXPENSES 

AND APPROVAL OF FEES AND 

EXPENSES

On May 1, 2017, 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 Cease-and-Desist Orders (the 

“Order”)1against MagnaChip Semiconductor Corporation and Margaret Hye-Ryoung Sakai, 

CPA (collectively, the “Respondents”). In the Order, the Commission found that Respondents 

violated the antifraud, books and records and internal control provisions of the federal securities 

laws when it began engaging in a variety of practices to inappropriately inflate its revenues and 

meet the gross margin targets it previously had announced to the public. As a result, 

MagnaChip’s financial statements and related disclosures were materially misstated in its 

periodic, annual, and current reports filed with the Commission. MagnaChip also falsely stated 

in an October 2013 press release that it had met its revenue and gross margin guidance for ten 

consecutive quarters following its IPO. Following an internal investigation, MagnaChip selfreported the revenue issues and, as a result, MagnaChip restated its financial statements in early 

2015, reducing its previously reported revenue for 2011 through 2013 by $121 million. The 

Commission ordered the Respondents to pay a total of $3,135,000 in civil money penalties 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 collected can be distributed to harmed investors 

(the “Fair Fund”).

On March 19, 2020, the Division of Enforcement, pursuant to delegated authority, issued 

an order appointing Strategic Claims Systems, Inc. as the fund administrator of the Fair Fund and 

set the administrator’s bond amount.2

1

 Securities Act Rel. No. 10352 (May 1, 2017).

2

 Order Appointing Fund Administrator and Set the Administrator’s Bond Amount, Exchange Act Rel. No. 88430 

(Mar. 19, 2020).
2

In accordance with Rule 1105(d) of the Commission’s Rules,3the Fund Administrator 

has submitted to the Commission staff an invoice for services rendered from August 22, 2023, 

through January 21, 2024, totaling $54,799.02. The Commission staff has reviewed the Fund 

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

expenses of $54,799.02 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 $54,799.02 from the Fair Fund in accordance with Rule 

1105(e) of the Commission’s Rules.4 

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 

of the Office of Distributions, to pay the Fund Administrator’s 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,5that OFM pay the Fund Administrator’s fees and expenses of $54,799.02 from the Fair 

Fund in accordance with Rule 1105(e) of the Commission’s Rules.6 Further, OFM is authorized 

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

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

Commission’s Rules,7so 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.8

Vanessa A. Countryman

Secretary 

3

 17 C.F.R. § 201.1105(d).

4

 17 C.F.R. § 201.1105(e).

5

 17 C.F.R. § 201.1105(d).

6

 17 C.F.R. § 201.1105(e).

7

 17 C.F.R. § 201.1105(e).

8

 17 C.F.R. § 200.30-4(a)(21)(vi).