UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934

Release No. 83133 / April 30, 2018

ADMINISTRATIVE PROCEEDING

File No. 3-17791 

In the Matter of

Orthofix International N.V.

Respondent.

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NOTICE OF PROPOSED PLAN 

OF DISTRIBUTION AND 

OPPORTUNITY FOR 

COMMENT

ADMINISTRATIVE PROCEEDING

File No. 3-17792

In the Matter of

Jeffrey Hammel, CPA

Respondent.

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ADMINISTRATIVE PROCEEDING

File No. 3-17793

In the Matter of

Brian McCollum

Respondent.

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ADMINISTRATIVE PROCEEDING

3-17794

In the Matter of

Kenneth Mack and Bryan McMillan

Respondents.

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

Exchange Commission’s (“Commission”) Rules on Fair Fund and Disgorgement Plans, 17 

C.F.R. § 201.1103, that the Division of Enforcement has submitted to the Commission a 

proposed plan of distribution (the “Plan”) for the distribution of monies paid in the abovecaptioned matters.

On January 18, 2017, 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 (“Orthofix Order”)1against Orthofix International N.V. (“Orthofix”). 

The Orthofix Order required Orthofix to pay an $8,250,000.00 civil money penalty, and created a 

Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the 

penalty could be distributed to harmed investors (the “Orthofix Fair Fund”). The Orthofix Order 

further provided that the Orthofix Fair Fund could receive funds from and/or be combined with 

fair funds established for civil penalties paid by other respondents for conduct arising in relation 

to the violative conduct at issue in the Orthofix Order. 

The Commission simultaneously issued three settled orders (together with the Orthofix 

Order, the “Orders”) in related matters (collectively, the “Related Matters”) against Hammel,2

McCollum,3and Mack and McMillan.4 Hammel’s order required him to pay a $20,000.00 civil 

money penalty, and McCollum’s order required him to pay a $35,000.00 civil penalty. Mack and 

McMillan’s order required them to pay a $40,000.00 and $25,000.00 civil money penalty, 

respectively. Each order created a fair fund and provided that it could be added or combined 

with the Orthofix Fair Fund and/or may be added to or combined with fair funds established for 

the civil penalties paid by other respondents for conduct arising in relation to the violative 

conduct at issue in the order, so that the combined fair funds could be distributed to harmed 

investors affected by the same violative conduct. 

On December 27, 2017, the Commission issued an order consolidating the fair funds 

created in the Related Matters with the Orthofix Fair Fund and appointed Strategic Claims 

Services, Inc. as the fund administrator.5 The Orthofix Fair Fund has a total of $8,370,000.00 for 

distribution to harmed investors.

 

1

 Securities Act Rel. No. 10281 (Jan. 18, 2017).

2

 See 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, 

Securities Act Rel. No. 10282 (Jan. 18, 2017), Admin. Proc. File No. 3-17792.

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

1934, Making Findings, and Imposing Cease-and-Desist Orders and Remedies, Exchange Act Rel. No. 79819 (Jan. 

18, 2017), Admin. Proc. File No. 3-17793.

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

1934, Making Findings, and Imposing Cease-and-Desist Orders and Penalties, Exchange Act Rel. No. 79820 (Jan. 

18, 2017), Admin. Proc. File No. 3-17794.

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 See Order Consolidating Fair Funds, Appointing Fund Administrator, and Setting Administrator Bond Amount, 

Exchange Act Rel. No. 82410 (Dec. 27, 2017).
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The Fair Fund is subject to the continuing jurisdiction and control of the Commission and the 

Fair Fund has been deposited at the United States Department of the Treasury’s Bureau of the 

Fiscal Service for investment.

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 Plan by submitting a written request to 

Keshia W. Ellis, Esq., United States Securities and Exchange Commission, 100 F Street, NE, 

Washington, DC 20549-5876. All persons who desire to comment on the 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 Nos. 3-17791-17794” in the subject line. Comments received will be publicly 

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

THE PLAN

The Net Fair Fund6is comprised of the $8,370,000.00 in civil money penalties paid by 

Orthofix, Hammel, McCollum, Mack and McMillan plus accumulated interest and earnings 

thereon, minus all taxes, fees, and other expenses of distributing the Fair Fund to investors who 

were harmed by the conduct described in the Orders. The Plan proposes to distribute the Net 

Fair Fund to investors who purchased eligible securities during the Recovery Period and suffered 

a Recognized Loss as calculated by the methodology used in the plan of allocation in the Plan.

For the Commission, by its Secretary, pursuant to delegated authority.

Brent J. Fields

Secretary 

 

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