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 (“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 through December 2013, the Respondents violated federal securities laws by overstating revenues for nearly two years in response to immense pressure placed on employees each quarter to meet revenue and gross margin targets that had been communicated to the public. The Commission ordered the MagnaChip and Sakai to pay a $3,000,000.00 and $135,000.00 civil money penalty, respectively, for a total of $3,135,000.00. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalties collected can be distributed to those harmed by the Respondents’ misconduct described in the Order. See the Commission’s order: Release No. 33-10352.
MagnaChip has paid a total of $3,000,000.00 into the Fair Fund for distribution to harmed investors.
Sakai is making payments into the Fair Fund, in accordance with the payment plan detailed in the Order. Sakai’s final payment is due on or before April 16, 2018.
For more information, please contact the Commission:
Office of Distributions