In the Matter of Burrill Capital Management, LLC, et al.

Admin. Proc. File No. 3-17186

On March 30, 2016, the Commission instituted and simultaneously settled proceedings against Burrill Capital Management, LLC (“BCM”), G. Steven Burrill, CPA, Victor A. Hebert, Esq., and Helena C. Sen, CPA (collectively, the “Respondents”). The Commission found that, from December 2007 through August 2013, the Respondents violated federal securities laws by misappropriating approximately $18 million under the guise of “advanced management fees” from Burrill Capital Sciences Capital Fund III (“Fund III”), a $283 million venture capital fund advised by BCM. The Commission ordered, and the Respondents paid $6,060,000.00 in disgorgement, prejudgment interest, and civil money penalties, of which the Respondents paid $2,660,000.00 directly to Fund III as ordered. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalties, along with the disgorgement and prejudgment interest, paid to the Commission, totaling $3,400,000.00, could be distributed to those harmed by the Respondents’ misconduct described in the Order (“Fair Fund”).

The Order further provided that with 30 days of receipt of the monies ordered, the Commission would distribute the Fair Fund to Fund III, which suffered a net harm as a result of the misconduct described in the Order. Taxes, if any, and related administrative expenses were ordered to be paid from the Fair Fund.  See the Commission’s order: Release No. 34-77473.

On April 26, 2016, the Commission issued an order appointing Damasco & Associates LLP, as the Tax Administrator of the Fair Fund. See the Commission’s order: Release No. 34-77713.

The Commission distributed a total of $3,394,040.00 to Fund III and this matter has been closed.