UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

ADMINISTRATIVE PROCEEDING

File No. 3-14641

In the Matter of

CHARLES L. RIZZO and

GINA M. HORNBOGEN 

Respondents.

AMENDED PROPOSED PLAN OF DISTRIBUTION

1. Purpose and Background. This Amended Proposed Plan of Distribution (the 

“Plan”) has been developed pursuant to the Commission’s Order Making Findings and Imposing 

Remedial Sanctions Pursuant to Section 203(f) of the Investment Advisers Act of 1940 and 

Section 15(b)(6) of the Securities Exchange Act of 1934 against Charles L. Rizzo (“Rizzo”) and 

Gina M. Hornbogen (“Hornbogen”) (collectively, “Respondents”), dated July 20, 2012 (the 

“Order”) (Exchange Act Rel. No. 67479 (July 20, 2012)). The Plan provides for the distribution 

of the disgorgement, prejudgment interest, and civil monetary penalties provided for in the Order

to clients of investment adviser Results One Financial, LLC (“Results One”) who had funds 

misappropriated from their accounts. The Plan has been amended from the Proposed 

Distribution Plan previously noticed on September 30, 2013 (Exchange Act Rel. No. 70573 

(Sept. 30, 2013)) in order to respond to the comments received and include two additional 

Eligible Fair Fund recipients.

The Order found, among other things, that Rizzo was a co-founder, director, and 35% 

equity owner of Results One, an investment adviser based in Elmhurst, Illinois. The Order also 

found that Hornbogen was the Chief Compliance Officer of Results One, in addition to being a 

director and 2.5% equity partner of Results One. The Order further found that Rizzo and 

Hornbogen failed reasonably to supervise Steven Salutric (“Salutric”), who, while acting as an 

investment adviser for Results One, misappropriated approximately $7 million from fifteen of 

his advisory clients.1

 

1

Results One client funds and securities were held by Charles Schwab, which served as custodian of the client 

funds. Pursuant to investment advisory agreements with clients, Results One personnel had authority to trade in 

clients’ accounts without prior approval.
2

The Order bars Rizzo and Hornbogen from associating in a supervisory capacity with any 

broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, 

or nationally recognized statistical rating organization. Rizzo was ordered to pay disgorgement 

of $35,079, prejudgment interest of $7,731, and civil penalties of $130,000. Hornbogen was 

ordered to pay disgorgement of $15,592, prejudgment interest of $3,467, and civil penalties of 

$25,000. 

In accordance with the Order, Rizzo paid a total of $172,810 in disgorgement, 

prejudgment interest, and civil monetary penalties to the Commission. Hornbogen paid 

$29,202.05 in disgorgement, prejudgment interest, and civil monetary penalties to the 

Commission. The remainder of Hornbogen’s payments in the amount of $14,856.95, plus postorder interest, is to be paid in installments through July 2015. Any remaining payments received 

after the effective date of the Plan will be added to the Fund, and it is anticipated that there will 

be two disbursements to the Eligible Clients, the latter of which is anticipated to occur after all 

scheduled payments have been received.

Pursuant to the Order, a Fair Fund was created under Section 308(a) of the SarbanesOxley Act of 2002, as amended, for the funds paid and to be paid by the Respondents (the “Fair 

Fund”). The Fair Fund is subject to the continuing jurisdiction and control of the Commission

and the Fair Fund is currently on deposit in a Commission designated non-interest bearing 

account at the United States Department of Treasury (“U.S. Treasury”). This Plan is subject to 

approval by the Commission, and the Commission retains jurisdiction over the implementation 

of the Plan.

Under the Plan, the Fair Fund, less any reserve for taxes, fees or other expenses of 

administering the Plan (the “Net Fair Fund”), will be distributed to Eligible Clients as defined in 

paragraph 4 of the Plan.

2. Fund Administrator. Nancy Chase Burton, Supervisory Assistant Chief Litigation 

Counsel in the Commission’s Division of Enforcement’s Office of Distributions, is proposed to 

act as the administrator of the Fair Fund (the “Fund Administrator”). As a Commission 

employee, the Fund Administrator shall receive no compensation from the Fair Fund for her

services in administering the Fair Fund. In accordance with Rule 1105(c) of the Commission’s 

Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. §§ 201.1100 through 201.1106

(“Rules”), no bond is required since the Fund Administrator is a Commission employee. In 

carrying out her duties, the Fund Administrator may be assisted by other Commission staff 

acting under her supervision. 

The Fund Administrator will, among other things: oversee the administration of the Fair 

Fund, obtain mailing information for eligible Results One clients, distribute money from the 

assets of the Fair Fund in accordance with this Plan, resolve disputes, distribute the Fair Fund to 

Eligible Clients as defined in paragraph 4 of the Plan, prepare a final accounting with assistance 

from the Tax Administrator, and provide the Tax Administrator with funds to pay tax liabilities 

and tax compliance fees and costs, pursuant to the Omnibus Order Directing the Appointment of 

Tax Administrator in Administrative Proceedings that Establish Distribution Funds (Exchange 

Act Rel. No. 68683 (January 17, 2013)).
3

3. Tax Administrator. The Commission has appointed Damasco and Associates, 

LLP as the Tax Administrator (“Tax Administrator”) of the Fair Fund (Exchange Act Rel. No. 

68264 (November 19, 2012)). The Fund Administrator will cooperate with the Tax 

Administrator in providing information necessary to accomplish the income tax compliance and 

any other work ordered to the Tax Administrator by the Commission. The Tax Administrator 

shall be compensated for reasonable costs and expenses from the Fair Fund in accordance with 

its 2013-2015 Engagement Letter Agreement with the Commission, and tax obligations will be 

paid out of the Fair Fund.

4. Specification of Eligible Fair Fund Recipients. The Fund Administrator shall 

distribute the Net Fair Fund to those Results One clients that have been harmed by the failure to 

reasonably supervise conduct by Salutric described in the Order (individually, each an “Eligible 

Client”, and collectively, the “Eligible Clients”). A client will be deemed harmed only if that 

client suffered a net loss of funds as a result of Salutric’s misappropriation of funds during the 

period of time, June 1, 2003 through December 31, 2009, that Respondents failed to reasonably 

supervise Salutric.

5. No claims-made process. This Fair Fund is not being distributed according to a 

claims-made process, so the procedures for providing notice and for making and approving 

claims are not applicable.

6. Qualified Settlement Fund. The Fair Fund constitutes a Qualified Settlement 

Fund (“QSF”) under Section 468B(g) of the Internal Revenue Code, 26 U.S.C. §468B(g), and 

related regulations, 26 C.F.R. §§1.468B-1 through 1.468B-5.

7. Methodology for Determining Distribution Amounts. The Fund Administrator 

will determine the amount to be distributed to each Eligible Client in the following manner. 

First, the Fund Administrator will determine, with reference to the information collected by the 

Commission staff regarding Eligible Clients’ losses, the net amount that each Eligible Client lost 

by virtue of the conduct described in the Order (“Net Loss Amount”). Net Loss Amount is 

defined as the amount of actual monies misappropriated by Salutric, less any monies received by 

Eligible Clients as settlements, insurance, or other payments in connection with this matter from 

Salutric, Results One, Rizzo, Hornbogen, or any other third party. Second, the Fund 

Administrator will determine what percentage of the total pooled Net Loss Amounts of all

Eligible Clients is represented by each individual Eligible Client’s Net Loss Amount (“Pro Rata 

Share”). Finally, for each Eligible Client, the Fund Administrator will multiply the Pro Rata 

Share by the Net Fair Fund to determine each Eligible Client’s gross distribution amount (“Gross 

Distribution Amount”). 

In the view of the Fund Administrator, this methodology constitutes a fair and reasonable 

allocation of the Fair Fund. Based on this methodology, it is anticipated that there will be two 

distributions to the Eligible Clients, which will take place as outlined in paragraph 9. 
4

Based on this methodology, the individual net loss amounts and percentages of pooled net loss

for Eligible Clients are as follows:

Eligible Client Total Loss Third Party 

Settlement/

Reimbursement 

Received

Net Loss % of Pooled 

Net Loss of 

All Eligible 

Clients

Eligible Client #1 $ 75,000 None $ 75,000.00 1.90%

Eligible Client #2 $ 50,000 None $ 50,000.00 1.26%

Eligible Client #3 $ 75,000 None $ 75,000.00 1.90%

Eligible Client #4 $ 160,000 None $ 160,000.00 4.04%

Eligible Client #5 $ 100,000 None $ 100,000.00 2.53%

Eligible Client #6 $ 95,000 $ 30,000 $ 65,000.00 1.64%

Eligible Client #7 $ 75,000 None $ 75,000.00 1.90%

Eligible Client #8 $ 55,000 None $ 55,000.00 1.39%

Eligible Client #9 $ 100,000 None $ 100,000.00 2.53%

Eligible Client #10 $ 590,000 $ 390,000 $ 200,000.00 5.05%

Eligible Client #11 $ 425,000 $ 275,138 $ 149,862.36 3.79%

Eligible Client #12 $ 100,000 None $ 100,000.00 2.53%

Eligible Client #13 $ 325,000 None $ 325,000.00 8.21%

Eligible Client #14 $ 230,000 None $ 230,000.00 5.81%

Eligible Client #15 $ 190,000 None $ 190,000.00 4.80%

Eligible Client #16 $ 100,000 None $ 100,000.00 2.53%

Eligible Client #17 $ 100,000 None $ 100,000.00 2.53%

Eligible Client #18 $ 406,000 $ 115,000 $ 291,000.00 7.35%

Eligible Client #19 $ 562,909 $ 66,895 $ 496,013.88 12.53%

Eligible Client #20 $ 85,000 $ 75,000 $ 10,000.00 0.25%

Eligible Client #21 $ 338,618 None $ 338,618.00 8.56%

Eligible Client #22 $ 1,524,353 $ 852,768 $ 671,585.00 16.97%

TOTAL NET LOSS $ 3,957,079.24 

8. Procedures for Locating and Notifying Eligible Clients. On the basis of 

information obtained by the Commission staff based on review and analysis of applicable 

records, the Fund Administrator will identify the Eligible Clients as defined in paragraph 4. 

Within thirty (30) days of the Commission’s approval of this Plan, the Fund Administrator will 

send each Eligible Client a notice by United States Postal Service regarding the Commission’s 

approval of the Plan, including as appropriate, a statement characterizing the distribution, a link 

to the Plan posted on the Commission’s website and instructions for requesting a copy of the 

Plan, a Net Loss Amount calculation and a preliminary Gross Distribution Amount, a description 

of the tax information reporting and other related tax matters, the procedure for the distribution

as set forth in the Plan, and the name of the Fund Administrator to contact with questions 

regarding the distribution (the “Plan Notice”). The Fund Administrator will coordinate with the 
5

Tax Administrator to request information from each Eligible Client that is needed to accomplish 

the distribution in accordance with applicable tax requirements relating to the Fair Fund.

If an Eligible Client fails to respond within thirty (30) days from the mailing of the Plan 

Notice, the Fund Administrator shall then make no fewer than two (2) attempts to contact the 

Eligible Client telephonically or by email. The second attempt shall in no event take place more 

than forty-five days (45) days from the mailing of the Plan Notice. If an Eligible Client fails to 

respond to the Fund Administrator’s contact attempts as described in this paragraph, such 

Eligible Client will be removed from the distribution and the allocated distribution amount shall 

be added to the Net Fair Fund and may, if ordered by the Commission, be distributed to the 

remaining Eligible Clients.

If a Plan Notice is returned as undeliverable, the Fund Administrator will make all 

reasonable efforts to ascertain an Eligible Client’s correct address. The Fund Administrator will 

then resend the Plan Notice to the Eligible Client’s new address within thirty days of receipt of 

the returned Plan Notice. If the Plan Notice is returned again, and the Fund Administrator, 

despite all reasonable efforts, is unable to find an Eligible Client’s correct address, the Eligible 

Client will be removed from the distribution and the allocated distribution amount shall be added 

to the Net Fair Fund and may, if ordered by the Commission, be distributed to the remaining 

Eligible Clients.

9. Distribution Timing. The Fund Administrator will use her best efforts to start the 

first distribution within one hundred and twenty (120) days of the Plan’s approval, and to start 

the second distribution within sixty (60) days of the final payment from Hornbogen. 

10. Financial Management Service; Validation and Approval of Disbursement of the 

Fair Fund. The Fair Fund disbursement to Eligible Clients will be implemented by the 

Commission and disbursed through the United States Department of the Treasury’s Financial 

Management Service (“FMS”), which will mail checks or electronically transfer funds to each 

payee as instructed by the Fund Administrator. The Fund Administrator will compile the payee

information and prepare a payment file in a Commission-approved format for submission to 

make the disbursements through FMS. Pursuant to Rule 1101(b)(6), the Fund Administrator will 

obtain an order from the Commission to disburse the Fair Fund. 

The Fund Administrator will work with FMS to obtain information about uncashed 

checks, any returned items due to non-delivery, insufficient addresses, and/or other deficiencies. 

The Fund Administrator is responsible for researching and reconciling errors and reissuing 

payments when possible. The Fund Administrator also is responsible for accounting for all 

payments. Checks issued by FMS will state on their face that they are valid for one year. If any 

checks issued are not cashed within the one year time period, the Fund Administrator will work 

with FMS to identify all uncashed checks. The amount of all uncashed checks will be credited to 

the Fair Fund account and may, if ordered by the Commission, be distributed to other Eligible 

Clients.

11. Accountings. When all funds have been disbursed except for the residual 

described in paragraph 17 of this Plan, the Fund Administrator will submit a final accounting for 
6

the approval of the Commission prior to termination of the Fair Fund and discharge of the Fund 

Administrator. Since the funds are being held in a Commission designated non-interest bearing 

account at the U.S. Treasury, and an SEC employee will be appointed as Fund Administrator, no 

interim accountings shall be required.

12. Expenses of Administration. Fees and other expenses of administering the Plan 

shall be paid from the Fair Fund. 

13. Amendments and Procedural Deadline Extensions. The Fund Administrator shall 

take reasonable and appropriate steps to distribute the Net Fair Fund according to the Plan. The 

Fund Administrator will inform the Assistant Director of Distributions, Logistics, and Services 

for the Division of Enforcement (“AD”) of any changes in the Plan. If a change is determined to 

be material, Commission approval is required prior to implementation by amending the Plan, 

which may be done upon the motion of any party, the Fund Administrator, or upon the 

Commission’s own motion. Immaterial changes may be made by the Fund Administrator with 

approval of the AD. For good cause shown, the Fund Administrator may extend any of the 

procedural dates set forth in this Plan.

14. Procedures for the Receipt of Additional Funds. It is anticipated that the Fair 

Fund will receive at least $14,856.95 in additional funds when Hornbogen pays the remaining 

installments owed pursuant to the Order, plus applicable post-order interest, which are to be paid 

in installments through July 2015. It is anticipated that there will be two disbursements to the 

Eligible Clients, the latter of which is anticipated to occur after all scheduled payments have 

been received.

15. Procedures to Request Plan Notice. A person that does not receive a Plan Notice 

and believes that he or she should have received a Plan Notice after becoming aware of the Plan 

(e.g., through other Eligible Clients or on www.sec.gov), must submit documentation to the Fund 

Administrator to establish that the individual is in fact eligible to receive a Plan Notice within 

forty-five days after the last Plan Notices are sent to Eligible Clients by the Fund Administrator. 

The Fund Administrator will send the individual a Plan Notice within twenty-one days of 

receiving the individual’s documentation if the Fund Administrator determines that the 

individual should have received a Plan Notice.

16. Procedures for Disputing Amounts Received. Disputes will be limited to 

calculations of disbursement amounts to Eligible Clients. Within thirty days of the date that an 

Eligible Client’s disbursement is made, the Fund Administrator must receive a written 

communication detailing the dispute along with any supporting documentation. The Fund 

Administrator will investigate the dispute, and such investigation will include a review of the 

written dispute as well as any supporting documentation. Within thirty days of receipt of the 

written dispute, the Fund Administrator will notify the Eligible Client of her resolution of the 

dispute, which shall be final. This procedure will be set forth in the Plan Notice.

17. Disposition of Undistributed Funds. A residual account within the Fair Fund is 

established for any amounts remaining after final distribution of the Net Fair Fund to Eligible 

Clients has occurred. The residual account may include funds reserved for future taxes and 
7

related expenses, distributions from checks that have not been cashed, from checks that were not 

delivered or from funds returned to the Commission, tax refunds for overpayment or for waiver 

of IRS penalties. All funds remaining in the residual account will be transferred to the U.S. 

Treasury after the final accounting is approved by the Commission.

18. Termination of the Fair Fund. Upon final distribution of the Net Fair Fund to 

Eligible Clients, the Fund Administrator shall make arrangement for the final payment of taxes 

and Tax Administrator fees and shall submit a final accounting to the Commission. The Fair 

Fund shall be eligible for termination after all of the following have occurred: (1) a final 

accounting, in the Division’s standard accounting form, has been submitted by the Fund 

Administrator, and has been approved by the Commission; and (2) all taxes, fees, and expenses

have been paid. When the Commission has approved the final accounting, staff shall seek an 

order from the Commission to approve: (1) sending the remaining residual amounts to the U.S.

Treasury; (2) termination of the Fair Fund; and (3) discharge of the Fund Administrator.

19. Notice of Proposed Plan and Opportunity for Comment. The Notice of the

Amended Proposed Plan of Distribution and Opportunity for Comment (the “Notice”) shall be 

published in the SEC Docket and on the Commission’s website http://www.sec.gov. Any person 

or entity wishing to comment on the Plan must do so in writing by submitting their comments 

within thirty (30) days of the date of the Notice (i) to the Office of the Secretary, United States 

Securities and Exchange Commission, 100 F Street, N.E., Washington, DC 20549-1090; (ii) by 

using the Commission’s Internet comment form (www.sec.gov/litigation/admin.shtml); or (iii) 

by sending an e-mail to rule-comments@sec.gov. Comments submitted by e-mail or via the 

Commission’s website should include “Administrative Proceeding File Number 3-14641” in the 

subject line. Comments received will be available to the public. Thus, persons should only 

submit information that they wish to make publicly available.