UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934

Release No. 86100 / June 13, 2019 

ADMINISTRATIVE PROCEEDING

File No. 3-17791 

In the Matter of

Orthofix International N.V.

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. 3-17792

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

File No. 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, 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 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 (the “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 (the “Commission’s Rules”), 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 

 

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.

3

 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.

4

 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.

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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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. On June 22, 2018, the 

Commission issued an Order Approving Distribution Plan.7

The Plan provides that the fees and expenses for the administration of the Fair Fund will be 

paid from the Fair Fund. In accordance with Rule 1105(d) of the Commission’s Rules, 17 C.F.R. 

§ 201.1105(d), the Fund Administrator has submitted three invoices totaling $101,295.06 to 

Commission staff that covers the period from its appointment through January 30, 2019. The 

Commission staff has reviewed the Fund Administrator’s invoices, confirms that the services 

detailed therein have been provided, and finds the fees and expenses of $101,295.06 to be 

reasonable. The Commission staff has requested that the Commission authorize the Office of 

Financial Management (“OFM”) to pay the Fund Administrator’s invoiced fees and expenses of 

$101,295.06 from the Fair Fund. 

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

staff has requested that the Commission authorize OFM to pay, at the direction of the Assistant 

Director of the Office of Distributions (“Assistant Director”), the Fund Administrator's future fees 

and expenses, 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 cost proposal submitted by the Fund Administrator.

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

17 C.F.R. § 201.1105(d), that OFM pay the Fund Administrator’s fees and expenses in the amount 

of $101,295.06. Further, OFM is authorized to pay, at the direction of the Assistant Director, any 

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 cost 

proposal submitted by the Fund Administrator.

By the Commission.

Vanessa A. Countryman

Acting Secretary

 

7 Exchange Act Rel. No. 83497 (June 22, 2018).