UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934

Release No. 96737 / January 23, 2023

ADMINISTRATIVE PROCEEDING

File No. 3-17791 

In the Matter of

Orthofix International N.V.

Respondent.

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ORDER AUTHORIZING THE TRANSFER TO 

THE U.S. TREASURY OF ANY FUNDS 

RETURNED TO THE FAIR FUND IN THE 

FUTURE, DISCHARGING THE FUND 

ADMINISTRATOR, CANCELLING THE 

ADMINISTRATOR’S BOND, AND 

TERMINATING THE FAIR FUND

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 (together with the Orthofix 

Order, the “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 and appointed Strategic Claims 

Services, Inc. as the fund administrator.5 The Orthofix Fair Fund had a total of $8,370,000.00 

paid into it pursuant to the Orders.

On April 30, 2018, the Secretary, pursuant to delegated authority, published a Notice of 

Proposed Plan of Distribution and Opportunity for Comment (“Notice”),6pursuant to Rule 1103 

of the Commission’s Rules on Fair Fund and Disgorgement Plans (“Commission’s Rules”),7and 

simultaneously posted the Proposed Plan of Distribution (the “Proposed Plan”). The Notice 

advised interested persons that they could obtain a copy of the Proposed Plan from the 

 

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).

7 17 C.F.R. §201.1103.
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Commission’s public website or by submitting a written request to Keshia W. Ellis, United 

States Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-5876. 

The Notice also advised that all persons desiring to comment on the Proposed Plan could submit 

their comments, in writing, within 30 days of the Notice. The Commission received no 

comments on the Proposed Plan during the comment period. On June 22, 2018, the Secretary, 

pursuant to delegated authority, issued an order approving the Proposed Plan,8and 

simultaneously posted the approved Plan of Distribution (the “Plan”).

The Plan set forth a methodology for allocating the Net Fair Fund9comprised of the 

$8,370.000, plus interest, less taxes and expenses to investors who purchased shares of Orthofix 

International common stock at inflated prices during the period from March 2, 2010, through 

August 7, 2013, inclusive and who suffered losses in the value of their investments subsequent to 

disclosures by the Respondents. Any remaining funds that are infeasible to return to investors 

are to be returned to the Commission for transfer to the U.S. Treasury and the Orthofix Fair Fund 

terminated, subject to the Commission’s approval of the Fund Administrator’s final accounting.

As ordered by the Commission,10 the Fund Administrator distributed $8,450,964.53 from 

the Orthofix Fair Fund, pursuant to the Plan, to 1,265 harmed investors. The Fund Administrator 

made additional efforts to reach investors who did not cash checks including refreshing 

addresses and reissuing checks when needed. Of the amount distributed, $8,441,489.01 was 

successfully disbursed and cashed by recipient investors (99.9%), resulting in recipient investors 

being compensated for 11.9% of their losses. The Fund Administrator returned a total of 

$9,475.52 to the Commission, representing the amount of returned and cancelled checks.

The Fair Fund earned $424,324.89 in interest; and paid $91,609.63 for state and federal 

taxes, $821.21 for investment and banking fees, $42,602.37 for Tax Administrator fees and 

expenses, and $217,825.69 for Fund Administrator fees and expenses. The Fair Fund has a 

balance of $0.00. 

The Plan provides that after the Commission has approved the final accounting submitted 

by the Fund Administrator, the Commission staff may seek an Order: (a) to transfer the 

remaining funds in the Fair Fund and any funds returned in the future to the U.S. Treasury; (b) 

terminate the Fair Fund; (c) discharge the Fund Administrator; and (d) to cancel the bond. 

The Commission staff has confirmed that the Fund Administrator has completed the 

distributions process in accordance with the Commission’s orders, that all taxes, fees, and 

expenses have been paid, and that the Fund Administrator has transferred all monies remaining 

in the Fair Fund to the Commission. The Fair Fund has a balance of $0.00 and all funds returned 

to the Fair Fund in the future will be transferred to the U.S. Treasury. 

The final accounting, which was submitted to the Commission for approval, as required 

by Rule 1105(f) of the Commission’s Rules, 17 C.F.R. § 201.1105(f), and as set forth in the Plan, 

has been approved.

 

8 See Order Approving Plan of Distribution, Exchange Act Rel. No. 83497 (June 22, 2018).

9 All capitalized terms used herein but not defined shall have the same meanings ascribed to them in the Plan.

10

 See Order Directing Disbursement of Fair Fund, Exchange Act Rel. No. 89223 (July 6, 2020).
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Accordingly, it is ORDERED that:

A. Any funds returned to the Fair Fund in the future shall be transferred to the U.S. 

Treasury;

B. The Fund Administrator, Strategic Claims Services, is discharged;

C. The Fund Administrator’s bond is canceled; and

D. The Fair Fund is terminated.

By the Commission. 

Vanessa A. Countryman

Secretary