UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 

Release No. 85175 / February 22, 2019

ADMINISTRATIVE PROCEEDING 

File No. 3-17672

In the Matter of

Derik J. Todd, Madison Capital Energy 

Income Fund GP LLC, Big Horn 

Minerals LLC, Madison Capital 

Investments LLC, and Madison 

Royalty Management LLC

Respondents.

:

:

:

:

:

:

:

:

:

:

ORDER APPOINTING FUND 

ADMINISTRATOR AND SETTING

ADMINISTRATOR BOND AMOUNT

On November 10, 2016, the Commission issued an Order Instituting Administrative and 

Cease-and-Desist Proceedings, Pursuant to Section 8A of the Securities Act of 1933, Section 

21C of the Securities Exchange Act of 1934, Sections 203(e), 203(f) and 203(k) of the 

Investment Advisers Act of 1940, and Section 9(b) of the Investment Company Act of 1940, 

Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order (“Order”)1

against Derik J. Todd (“Todd”), Madison Capital Energy Income Fund II GP LLC (“Fund II 

GP”), Big Horn Minerals LLC (“Big Horn”), Madison Capital Investments LLC (“MCI”), and 

Madison Royalty Management (“MRM”) (collectively, the “Respondents”). In the Order, the 

Commission found that Todd and Fund II GP willfully violated Section 17(a) of the Securities 

Act of 1933 (“Securities Act”), Section 10(b) of the Securities Exchange Act of 1934 

(“Exchange Act”) and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment 

 

1

Securities Act Rel. No. 10250 (Nov. 10, 2016).
2

Advisers Act of 1940 (“Advisers Act”); and MCI, Big Horn and MRM willfully aided and 

abetted and caused Todd’s and Fund II GP’s violations of Section 17(a) of the Securities Act, 

Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of 

the Advisers Act. 

The Commission ordered the Respondents, on a joint and several basis, to pay $205,673 

in disgorgement and $21,581 in prejudgment interest, and ordered Todd to pay a $50,000 civil 

penalty to the Commission, pursuant to a payment plan detailed therein. The Commission also 

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

penalty, along with the disgorgement and prejudgment interest, can be distributed to investors 

harmed by the Respondents’ conduct described in the Order.

The Division of Enforcement now seeks the appointment of Rust Consulting, Inc. 

(“Rust”) as the fund administrator and requests that the administrator’s bond be set at $277,254, 

as required by Rules 1105(a) and 1105(c) of the Commission’s Rules on Fair Fund and 

Disgorgement Plans (“Commission’s Rules”).

2

 Rust is a member of the Commission’s Fund 

Administrator Pool.

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

Rules, 17 C.F.R. § 201.1105(a), that Rust is hereby appointed as fund administrator and the 

administrator shall obtain a bond in the amount of $277,254, in accordance with Rule 1105(c) of 

the Commission’s Rules, 17 C.F.R. § 201.1105(c) .

For the Commission, by the Division of Enforcement, pursuant to delegated authority.3

Brent J. Fields

Secretary 

 

2

17 C.F.R. §§ 201.1105(a) and 201.1105(c).

3

 17 C.F.R. § 200.30-4(a)(17).