On November 10, 2016, the Commission settled administrative and cease-and-desist proceedings (the “Order”) against Derik J. Todd, Madison Capital Energy Income Fund II GP LLC, Big Horn Minerals LLC, Madison Capital Investments LLC, and Madison Royalty Management LLC (collectively, the “Respondents”). In the Order, the Commission found that, from late 2011 through 2014, the Respondents violated federal securities laws by improperly using affiliates as intermediaries for sales and purchases of oil and gas royalty interests. 

The Commission ordered the Respondents to pay a total of $227,254.00 in disgorgement, prejudgment interest, and a civil money penalty to the Commission, pursuant to a payment plan detailed in the Order. The Commission created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalty, along with the disgorgement and prejudgment interest, collected can be distributed to those harmed by the Respondents conduct described in the Order (the “Fair Fund”). See the Commission’s Order:  33-10250.

On December 14, 2017, the Commission issued an order appointing Miller Kaplan Arase LLP as the Tax Administrator of the Fair Fund. 

On February 22, 2019, the Commission issued an order appointing Rust Consulting, Inc., as the Fund Administrator to oversee the administration and distribution of the Fair Fund, and set the administrator’s bond.

For more information, please contact the Commission:

Office of Distributions
Email: ENFOfficeofDistributions@sec.gov