UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934

Release No. 83497 / June 22, 2018

ADMINISTRATIVE PROCEEDING

File No. 3-17791 

In the Matter of

Orthofix International N.V.

Respondent.

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ORDER APPROVING PLAN

OF DISTRIBUTION 

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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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 

 

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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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.

On April 30, 2018, the Notice of Proposed Plan of Distribution and Opportunity for 

Comment (the “Notice”)6 was published, pursuant to Rule 1103 of the Commission’s Rules on 

Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1103. The Notice advised interested 

persons that they could obtain a copy of the Proposed Plan of Distribution (the “Plan”) from the 

Commission’s public website or by submitting a written request to Keshia W. Ellis, United 

States Securities and Exchange Commission, Office of Distributions, 100 F Street, NE, 

Washington, DC 20549-5876. All persons who desired to comment on the Plan could submit 

their comments, in writing, no later than May 30, 2018. No comments were submitted within the 

thirty (30) day comment period. 

The Fair Fund is comprised of the $8,370,000.00 in civil money penalties paid pursuant 

to the Orders. The Plan provides for distribution of the Net Fair Fund7to eligible investors, who 

suffered a Recognized Loss. The Plan proposes to distribute the Net Fair Fund in accordance with 

the methodology described in the Plan.

The Division of Enforcement now requests that the Commission approve the Plan. 

 

5

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

Exchange Act Rel. No. 82410 (Dec. 27, 2017).

6

 Exchange Act Rel. No. 83133 (Apr. 30, 2018). 

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 All capitalized terms used herein but not defined shall have the same meanings ascribed to them in the Plan.
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Accordingly, IT IS HEREBY ORDERED that, pursuant to Rule 1104 of the Commission’s 

Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1104, the Plan is approved, and shall 

be posted simultaneously with this Order on the Commission’s website at www.sec.gov. 

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

Brent J. Fields

Secretary