UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934

Release No. 82410 / December 27, 2017

ADMINISTRATIVE PROCEEDING

File No. 3-17791

In the Matter of

Orthofix International N.V.

Respondent.

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ORDER CONSOLIDATING 

FAIR FUNDS, APPOINTING 

FUND ADMINISTRATOR,

AND SETTING 

ADMINISTRATOR BOND 

AMOUNT

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 

penalties 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 respondents 

Jeffrey Hammel, CPA (“Hammel”),

2 Brian McCollum (“McCollum”),3

and Kenneth Mack 

(“Mack”) and Bryan McMillan (“McMillan”).

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 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 

 

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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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.

Orthofix has paid $8,250,000.00 as ordered into the Orthofix Fair Fund, and a total of 

$120,000.00 has been paid, as ordered, in the Related Matters, for a total of $8,370,000.00, for 

distribution to harmed investors.

The Division of Enforcement recommends that the Fair Funds created pursuant to the 

Orders be consolidated into a single Fair Fund for the purposes of distributing the funds for the 

benefit of the investors harmed by the conduct described in the Orders.

The Division of Enforcement now seeks the appointment of Strategic Claims Services, 

Inc. (“SCS”) as the fund administrator and requests that the administrator’s bond be set at 

$8,370,000.00, as required by Rules 1105(a) and 1105(c) of the Commission’s Rules on Fair 

Fund and Disgorgement Plans (“Commission’s Rules”).

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 SCS is not included in the 

Commission’s approved pool of administrators. However, appointing SCS will result in

significant economies of time and expense because SCS serves as a class administrator in a class 

action distribution arising out of the same conduct and similar time period.

Accordingly, it is hereby ORDERED, that: 

A. the assets of the Fair Funds created pursuant to the Orders, and any interest 

accrued on those assets, are consolidated into a single Fair Fund for distribution to 

harmed investors; 

B. pursuant to Rule 1105(a) of the Commission’s Rules, 17 C.F.R. § 201.1105(a), 

SCS is appointed as the fund administrator and 

 

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 17 C.F.R. §§ 201.1105(a) and 201.1105(c).
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C. the administrator shall obtain a bond in the amount of $8,370,000.00, in 

accordance with Rule 1105(c) of the Commission’s Rules, 17 C.F.R. 

§ 201.1105(c).

By the Commission.

 

Brent J. Fields

Secretary