UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 

Release No. 93874 / December 29, 2021

ADMINISTRATIVE PROCEEDING

File No. 3-20089

In the Matter of

Scott Eugene Bachman,

Respondent.

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NOTICE OF PROPOSED PLAN OF 

DISTRIBUTION AND 

OPPORTUNITY FOR COMMENT

Notice is hereby given, pursuant to Rule 1103 of the United States Securities and 

Exchange Commission’s (“Commission”) Rules on Fair Fund and Disgorgement Plans 

(“Commission’s Rules”), 17 C.F.R. § 201.1103, that the Division of Enforcement has submitted 

to the Commission a proposed plan of distribution (the “Proposed Plan”) for the distribution of 

monies paid in the above-captioned matter.

On September 28, 2020, the Commission issued an Order Instituting Administrative and 

Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, and Sections 

15(b) and 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing 

Remedial Sanctions and a Cease-and-Desist Order (the “Order”)1against Scott Eugene Bachman 

(“Bachman” or the “Respondent”). In the Order, the Commission found that since July 17, 2017, 

Bachman had been a principal and served as the co-manager of Crudefunders, LLC, which 

previously operated an online equity crowdfunding portal. The Order further found that, 

between August 2017 and December 2017, Bachman directed Crudefunders’ Director of Client 

Relations to distribute promotional materials to potential investors concerning an oil and gas 

drilling project known as “Woodland-OPI Oddfellows A-1” (the “Oddfellows Project”), and to 

offer and sell securities in the form of “membership units” of an LLC. The Order also found that 

Bachman directed the use of investor funds in connection with the Oddfellows Project, and, at 

Bachman’s direction, Crudefunders received transaction-based compensation for its sales of 

securities. However, Bachman was not registered with the Commission as a broker-dealer or 

associated with a registered broker-dealer. In addition, these securities were not registered and 

did not qualify for any exemption from registration. As a result, the Order found that Bachman 

violated Section 15(a)(1) of the Securities Exchange Act of 1934 and Sections 5(a) and 5(c) of 

the Securities Act of 1934. The Commission ordered the Respondent to pay a civil money 

penalty of $8,824 to the Commission. The Commission also created a Fair Fund, pursuant to 

 

1

 Securities Act Rel. No. 10857 (Sept. 28, 2020).
Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty paid can be distributed to 

harmed investors (the “Fair Fund”).

The Fair Fund includes the $8,824.00 paid by the Respondent. 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 an interest-bearing account at the U.S. Department of the Treasury’s 

Bureau of the Fiscal Service, and any interest accrued will be added to the Fair Fund.

OPPORTUNITY FOR COMMENT

Pursuant to this Notice, all interested persons are advised that they may obtain a copy of 

the Plan from the Commission’s public website at http://www.sec.gov/litigation/fairfundlist.htm. 

Interested persons may also obtain a written copy of the Proposed Plan by submitting a written 

request to David H. London, United States Securities and Exchange Commission, 33 Arch 

Street, 24th Floor, Boston, MA 02110-1424. All persons who desire to comment on the 

Proposed Plan may submit their comments, in writing, no later than thirty (30) days from the 

date of this Notice:

1. to the Office of the Secretary, United States Securities and Exchange 

Commission, 100 F Street, NE, Washington, DC 20549-1090;

2. by using the Commission’s Internet comment form 

(http://www.sec.gov/litigation/admin.shtml); or

3. by sending an e-mail to rule-comments@sec.gov.

Comments submitted by email or via the Commission’s website should include “Administrative 

Proceeding File No. 3-20089” in the subject line. Comments received will be publicly available. 

Persons should submit only information they wish to make publicly available.
THE PROPOSED PLAN

The Net Available Fair Fund2is comprised of the $8,824.00 in civil money penalties paid 

by the Respondent, plus interest and income earned thereon, less taxes, fees, and expenses. The 

Proposed Plan provides for the distribution of the Net Available Fair Fund to investors who 

purchased Securities during the Relevant Period and suffered a Recognized Loss as calculated by 

the methodology used in the plan of allocation in the Proposed Plan.

For the Commission, by the Division of Enforcement, pursuant to delegated authority.3

Vanessa A. Countryman

Secretary 

 

2

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

Plan.

3

 17 C.F.R. § 200.30-4(a)(21)(iii).