In the Matter of MagnaChip Semiconductor Corporation, et al.
Admin. Proc. File No. 3-17956
On May 1, 2017, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against MagnaChip Semiconductor Corporation (“MagnaChip”) and Margaret Hye-Ryoung Sakai, CPA (“Sakai”) (collectively, the "Respondents"). In the Order, the Commission found that, from mid-2011 to December 2013, the Respondents violated the antifraud, books and records and internal control provisions of the federal securities laws, in connection with a scheme involving improper and fraudulent accounting practices intended to artificially inflate revenue and meet gross margin targets it had previously announced to the public. The Commission ordered MagnaChip and Sakai to pay civil penalties totaling $3,135,000.00. The Commission also created a fair fund (the “Fair Fund”), pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalties can be distributed to harmed investors. See the Commission’s order: Release No. 33-10352.
The Respondents have paid $3,134,499.00 into the Fair Fund for distribution to harmed investors.
On June 14, 2018, the Commission issued an order appointing Miller Kaplan Arase LLP, as the Tax Administrator of the Fair Fund.
On March 19, 2020, the Commission issued an order appointing Strategic Claims Systems, Inc., as the Fund Administrator to oversee the administration and distribution of the Fair Fund and, set the administrator’s bond amount. See the Commission’s Order: Release No. 34-88430.
For more information, please contact the Commission:
Office of Distributions