In the Matter of Orthofix International N.V. Admin. Proc. File No. 3-17791

In the Matter of Jeffrey Hammel, CPA
Admin. Proc. File No. 3-17792

In the Matter of Brian McCollum
Admin. Proc. File No. 3-17793

In the Matter of Kenneth Mack, et al.
Admin. Proc. File No. 3-17794

On January 18, 2017, the Commission instituted and simultaneously settled four related proceedings (the "Orders") against Orthofix International N.V. ("Orthofix") and four of its former senior executives and officers, Jeffery Hammel, CPA ("Hammel"), Brian McCollum ("McCollum"), Kenneth Mack ("Mack"), and Bryan McMillian ("McMillian") (collectively, the "Respondents"). In the Orders, the Commission found that, from at least 2011 to mid-2013, Orthofix materially overstated its distributor revenue and operating income in various annual and quarterly reports and earnings releases filed with the Commission violating the antifraud, reporting, books and records, and internal accounting controls provisions of the federal securities laws. The Commission ordered Orthofix, Hammel, McCollum, Mack, and McMillan to pay $8,250,000.00, $20,000.00, $35,000.00, $40,000.00, and $25,000.00, respectively, in civil money penalties. The Commission also created fair funds, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalties collected can be distributed to investors harmed by the Respondents' conduct. The Orders further provided that the fair funds can be combined for the benefit of investors, making the total funds available for distribution $8,370,000.00 (the "Fair Fund"). See the Commission's Orders: Release Nos. 33-10281, 33-10282, 34-79819, and 34-79820.

On December 27, 2017, the Commission issued an order consolidating the fair funds, appointing Strategic Claims Services Inc., as the Fund Administrator, and setting the administrator’s bond amount. See the Commissioner’s Order: Release No. 34-82410. 

On April 30, 2018, the Commission published a notice of the proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (“Proposed Plan”). The notice provides the public with 30 days to submit their comments on the Proposed Plan. See the Commission’s Notice: Release No. 34-83133 and the Proposed Plan.

The Proposed Plan provides that the distribution of the Fair Fund shall be made 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.

On June 22, 2018, the Commission issued an order approving the Proposed Plan, and simultaneously published the approved Plan of Distribution (the "Plan"). See the Commission's Order: Release No. 34-83497 and the Plan.

On July 6, 2020, the Commission issued an order directing the disbursement of $8,450,964.53 from the Fair Fund for distribution by the Fund Administrator to harmed investors. See the Commission’s Order: Release No. 34-89223.

On January 23, 2023, the Commission approved the Fund Administrator’s final accounting and issued an order transferring any remaining funds, and any funds returned in the future, to the U.S. Treasury; discharging the Fund Administrator, canceling the administrator’s bond, and terminating the Fair Fund.  See the Commission’s Order: Release No. 34-96737.