UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 

Release No. 95192 / July 1, 2022

ADMINISTRATIVE PROCEEDING

File No. 3-20781

In the Matter of

Baxter International Inc. ,

Respondent.

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ORDER APPOINTING 

FUND ADMINISTRATOR AND 

SETTING ADMINISTRATOR’S 

BOND AMOUNT

ADMINISTRATIVE PROCEEDING

File No. 3-20782

In the Matter of

Jeffrey Schaible,

Respondent.

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ADMINISTRATIVE PROCEEDING

File No. 3-20783

In the Matter of

Scott Bohaboy,

Respondent.

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On February 22, 2022, the Commission issued an Order Instituting Cease-and-Desist 

Proceedings Pursuant to Section 8A of the Securities Act of 1933 and 21C of the Securities 
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Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order (the “Order”) 

against Baxter International Inc. (“Baxter”).1 In the Order, the Commission found that 

beginning in at least 2009 and continuing through July 2019, Baxter improperly leveraged its 

foreign exchange rate convention by engaging in intra-company transactions for the purpose of 

generating foreign exchange accounting gains or avoiding foreign exchange accounting losses 

(the “FX Transactions”). These FX Transactions had the effect of materially misstating Baxter’s 

net income as reported in public filings. In October 2019, Baxter announced that it was 

conducting an internal investigation concerning the FX Transactions. In March 2020, Baxter 

restated its financial statements, which reduced its previously reported net income for 2017 

through June 30, 2019, and retained earnings as of January 1, 2017, by $582 million, 

collectively. The Commission ordered Baxter to pay a civil money penalty of $18 million and 

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

Fair Fund”). Baxter has paid in full.

Also on February 22, 2022, in two related matters, the Commission issued Corrected 

Orders 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 a 

Cease-and-Desist Orders against Jeffrey Schaible (the “Schaible Order”)2and Scott Bohaboy

(the “Bohaboy Order”).

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 During relevant times, Schaible was an employee in the Treasury 

department of Baxter, and Bohaboy was its Treasurer. In the Schaible and Bohaboy Orders, the 

Commission found that the respondents, among other things, caused Baxter’s violations of the 

federal securities laws. The Commission ordered Schaible to pay disgorgement, prejudgment 

 

1 Securities Act Rel. No. 11032 (Feb. 22, 2022).

2

 Securities Act Rel. No. 11033 (Feb. 22, 2022).

3

 Securities Act Rel. No.11034 (Feb. 22, 2022).
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interest, and a civil penalty totaling $189,359.00 and Bohaboy to pay a civil money penalty of 

$125,000. Schaible and Bohaboy have paid in full. The Commission created a Fair Fund in each 

of the Schaible and Bohaboy Orders pursuant to Section 308(a) of the Sarbanes-Oxley Act of 

2002 and further ordered those Fair Funds combined with the Baxter Fair Fund. 

The Baxter Fair Fund has been deposited in an interest-bearing account at the U.S. 

Department of the Treasury’s Bureau of the Fiscal Service, and any accrued interest will be for 

the benefit of the Baxter Fair Fund. 

The Division of Enforcement now seeks the appointment of Epiq Class Action & Claims 

Solutions, Inc. (“Epiq”) as the fund administrator and requests that the administrator’s bond be 

set at $18,314,359.00. Epiq is included in the Commission’s approved pool of administrators.

Accordingly, IT IS HEREBY ORDERED that Epiq is appointed as the fund 

administrator, pursuant to Rule 1105(a) of the Commission’s Rules on Fair Fund and 

Disgorgement Plans (“Commission’s Rules”),4and shall obtain a bond in accordance with Rule 

1105(c) of the Commission’s Rules,5in the amount of $18,314,359.00.

For the Commission, by the Division of Enforcement, pursuant to delegated authority.6

Vanessa A. Countryman

Secretary 

 

4

 17 C.F.R. § 201.1105(a).

5

 17 C.F.R. § 201.1105(c).

6

 17 C.F.R. § 200.30-4(a)(17).