CHLT-#122146-v1-DCG Third Application for Compensation - GFC · Case 3:16-cv-00285-GCM Document 100 Filed 04/21/17 Page 2 of 35. 3 • GFC’s invoice for the Application Period,

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UNITED STATES DISTRICT COURT WESTERN DISTRICT OF NORTH CAROLINA

CHARLOTTE DIVISION

SECURITIES AND EXCHANGE COMMISSION,

Plaintiff, v. RICHARD W. DAVIS, JR.,

Defendant, and

DCG REAL ASSETS, LLC, et al.,

Relief Defendants.

CASE NO. 3:16-CV-285

THIRD APPLICATION FOR COMPENSATION TO

GRIER FURR & CRISP, PA, ATTORNEYS FOR THE RECEIVER

A. Cotten Wright as Receiver (the “Receiver”) for the assets of DCG Real Assets, LLC;

DCG Commercial Fund I, LLC; H20, LLC; DCG PMG, LLC; DCG PMF, LLC; Finely Limited,

LLC; DCG Funds Underwriting, LLC; DCG ABF Management, LLC; DCG Funds Management,

LLC; Davis Capital Group, Inc.; Davis Financial, Inc.; DCG Partners, LLC; DCG Real Estate

Development, LLC; Huntersville Plaza Phase One, LLC; Huntersville Plaza Phase Two, LLC;

North Lake Business Park, LLC; and Richard Davis Enterprises, LLC (collectively, the

“Receivership Defendants”), through counsel, hereby submits this Third Application for

Compensation to Grier Furr & Crisp, PA, Attorneys for the Receiver (this “Application”) for the

period of January 1, 2017 through March 31, 2017 (the “Application Period”). This Application

has been prepared in accordance with the Billing Instructions for Receivers in Civil Actions

Commenced by the U.S. Securities and Exchange Commission (the “SEC Guidelines”).

Case 3:16-cv-00285-GCM Document 100 Filed 04/21/17 Page 1 of 35

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I. BACKGROUND

On June 8, 2016, the Court entered its Temporary Receivership Order appointing the

Receiver in this case. (Doc. No. 8). Subsequent Orders were entered on August 5, 2016 and

September 22, 2016 (together with the Temporary Receivership Order, the “Receivership

Order”) whereby the Receivership was made permanent for the Receivership Defendants. (Doc.

Nos. 50 and 64). On June 9, 2016, the Receiver filed her Motion for Authority to Employ Grier

Furr and Crisp, PA as Attorneys for the Receiver (Doc. No. 9) which was granted in an Order

was entered on June 10, 2016 (Doc. No. 10). GFC’s services commenced on June 8, 2016, the

date that the Receiver was appointed.

II. SUMMARY OF PROFESSIONAL FEES AND REIMBURSEMENT OF EXPENSES REQUESTED

The Receivership Order requires the Receiver to file Quarterly Fee Applications with the

Court for compensation and reimbursement of expenses. This Application reflects the third

interim application for compensation and expense reimbursement for GFC.

The Receiver and GFC expended a total of 72 hours on the Receivership case during the

Application Period. The Receiver and GFC request allowance of interim compensation for

professional services rendered to the Receivership Estate in the amount of $20,245.00 and

reimbursement of $159.21 in actual and necessary expenses. No time has been billed for

preparing this Application.

In accordance with the SEC Guidelines, the following exhibits are attached:

• Certification regarding compliance by the Receiver and GFC with the SEC Guidelines, Exhibit A;

• Standardized Fund Accounting Report for the Application Period, Exhibit B;

• GFC’s Fee Schedule for the Application Period, Exhibit C; and


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• GFC’s invoice for the Application Period, setting out its time records and expenses, Exhibit D; and

• Summary of GFC expenses for the Application Period, Exhibit E.

II. SUMMARY OF ACTIVITIES DURING THE APPLICATION PERIOD

On April 11, 2017, the Receiver filed her Receiver’s Fourth Report (the “Report”), which

was preceded by the Receiver’s first three reports filed on July 8, 2016, October 5, 2016, and

January 31, 2017. The Report details the activity in this case for the Application Period. During

the Application Period Receivership, the Receiver and her professionals continued to work on

identifying, securing or obtaining control over Receivership assets; marketing assets; and

maintaining communications with investors. A summary of the information in the Report is

included here.

A. Investigations as to Assets and Asset Recovery

During prior the Application Period, the Receiver learned that Davis Financial, Inc. held

a half-interest in a house located at 9137 Mt. Holly-Huntersville Road, Huntersville, NC. The

Receiver obtained an appraisal of this property showing a total value of $195,000.00. Because

Davis had been living at the Residential Property, that house was furnished and being used to

store a significant amount of miscellaneous personal property. Because the Receiver could not

be certain which, if any, of those personal property assets might be titled to any of the

Receivership Defendants, the Receiver filed a motion requesting an Order allowing her to

abandon that personal property to Davis and requiring him to remove it within 14 days of any

such order. That motion was pending at the close of the Application Period.

The Receiver had anticipated obtaining title to two small parcels near Huntersville Town

Hall on which Receivership entities held unsatisfied deeds of trust through a foreclosure. But

due to an error in the foreclosure documents, the foreclosure sale was not scheduled until after


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the close of the Application Period on April 3, 2017. As reported previously, the Receiver and

the Town of Huntersville have negotiated a letter of intent relative to a possible sale to the Town

of the property that the Receiver anticipates obtaining through foreclosure and the adjacent

parcels titled to Receivership Defendants for a total sale price of $165,000.00.

During the Application Period, the Receiver’s litigation against certain defendants

relative to a faulty deed of trust recorded as to the Receivership property located at 11711

Alexanderana Road, Huntersville, North Carolina, that is titled to Finely Limited, LLC was

settled with entry of a judgment determining that there are no valid liens on the Alexanderana

Road property. The Receiver also obtained an appraisal of the Alexanderana Road property

showing a value of $846,000.00 and listed that property for sale with Trinity Partners. In

addition, the appraisal of the Alexanderana Road property valued an easement across the

property at $5,350.00. Pending court approval, the Receiver is poised to enter into an easement

agreement with the owner of an adjacent parcel, Blue Green, LLC, for that appraised value.

During the Application Period, the Receiver obtained an appraisal of real property titled

to H2O, LLC in Grayson County, Virginia, valuing that property at $1,250,000.00. The

Receiver was authorized to hire a realtor for that property, and, based on the realtor’s advice, the

property is currently listed for sale at $1,100,000.00.

As of the date of the Receivership, there was litigation pending in Grayson County,

Virginia, brought by Kenneth Hageman seeking to impose a constructive trust on the real

property titled to H2O, LLC. The Receiver’s attorneys reviewed documentation of Hageman’s

claims and negotiated a settlement with Hageman’s attorney. On March 30, 2017, the Receiver

filed a motion to approve a proposed settlement with Hageman, which is pending Court

approval.


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The Receivership property located at 16618 Old Statesville Road in Huntersville remains

listed for sale with Trinity Partners. The Receiver obtained an appraisal of the residential lot at

5330 Beacon Ridge, Granite Falls, North Carolina showing a value of $20,000.00. That

property is currently listed for sale with an asking price of $22,500.00.

The Receiver continued to research whether any mining equipment, vehicles, and the like

that constitute Receivership property remains in Nevada. Ultimately, the Receiver opted to

engage the services of a private investigator to assist with that investigation. The Receiver’s

efforts to recover any mining equipment that reflects Receivership property are ongoing.

The Report includes as an attachment a summary of the Receivership assets identified

thus far and their actual or estimated values.

B. Receipts and Disbursements

The Receiver attached ledger reports on the Receivership account at Rabobank, N.A. as

exhibits to the Report. As of the end of the Application Period, the balance in that account was

$141,923.56, no portion of which was encumbered.

C. Investor Communications

Early in the case, the Receiver established an email account for investors to use in

communicating with the Receiver. The Receiver continues to post pleadings and other items of

interest to investors on the webpage for the Receivership.

D. Receivership Operations

The Receiver has obtained approval to engage certain professionals, including appraisers

and real estate brokers, as are necessary to fulfilling the requirements of the Case Procedures

Order entered in this case on August 5, 2016.


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E. Claims Held by the Receivership Estate

Other than the claim reflected in the appeal of the Arbitration Award pending in Nevada,

the Receiver has not identified any claims held by the Receivership Estate at this point.

F. Status of Investor Claim Procedures

The Receiver anticipates proposing a claims procedure and distribution method to the

Court at a later date. The Receiver will likely request approval of a claim form that will solicit

from each claimant the dates and amounts of all investments, copies of checks or wire transfers

to any of the Receivership Defendants, the dates and amounts of all withdrawals, if any, and

other relevant information. The Receiver intends to recommend to the Court the allowance of

the principal amount invested by each investor, not to include any profit that may have been

reported by the Receivership Defendants and, for purposes of distributions by the Receiver,

taking into account any withdrawals by investors.

G. Communications with Investors

During the Application Period, the U.S. Attorneys’ Office filed a motion in the criminal

case against Richard Davis (United States v. Richard Wyatt Davis, Jr., 3:16CR312 (W.D.N.C.))

asking the court to appoint the Receiver as Special Master in the criminal case, which motion

was granted on February 14, 2017. As Special Master, the Receiver will be responsible

identifying victim-investors and providing notices to them regarding key events in the criminal

case; reporting on restitution and fashioning a proposed restitution order; and making

distributions of restitution payments to victims. Because those activities overlap with the

Receiver’s responsibilities in this case, the Receiver’s role as Special Master will parallel her

duties in this case.


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The SEC has provided the Receiver with lists of investors in the Receivership

Defendants. Additional parties have also contacted the Receiver indicating that they were

investors in one or more of the Receivership Defendants. Although the Receiver has contact

information for most of investors, there remain purported investors that the Receiver has not

been able to contact. With the Court’s direction, the Receiver is prepared to file (under seal or

otherwise) a list of purported investors known to the Receiver.

The Court entered an Order approving the Receiver’s second application for

compensation on February 27, 2017. No payment has been made in connection with the

Receiver’s second application for compensation and expenses, and the fees approved in the

Receiver’s first application for compensation remain only partially paid due to the SEC

Guidelines limiting the compensation and expense reimbursement available to the Receiver to

thirty percent (30%) of any net recovery.

H. Forecast

The Receiver is unable to forecast how long it will take to convert all Receivership assets

to cash, particularly given that the Receivership assets primarily consist of vacant land. By filing

periodic reports, the Receiver will keep the Court and investors apprised of her best estimate of

the progress of the Receivership her estimate of when the case will be closed.

III. COMPENSATION REQUESTED

This is an interim Application. The Court has previously approved interim

compensation and reimbursement of expenses to GFC totaling $159.21; however, those fees and

expenses were not paid in full due to the restrictions on compensation imposed by the SEC

Guidelines.

It remains the case that much of the necessary work in this matter must be done upfront

in order to position the Receivership to market and sell the Receivership’s real property assets.


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The Receiver has recorded some but by no means all of her time spent on this case; the

Receiver’s time for performing her duties as Receiver, as opposed to attorney time, have been

billed at $0.00. In addition, the Receiver has taken care in assigning legal work so as to control

the cost to the Receivership Estate.

The fees requested reflect the actual hours worked by the Receiver and GFC, charged at

the hourly rates in effect at the time when the services were rendered. Those rates take into

account all relevant circumstances and factors as set out in the North Carolina Code of

Professional Responsibility and the SEC Guidelines, including the nature of the services

performed, the amount of time spent, the experience and ability of the professionals working on

this case, the novelty and complexity of the specific issues involved, the time limitations

imposed by the circumstances, and the responsibilities undertaken by the Receiver and GFC

under the Receivership Order.

The expense reimbursement requested reflects the actual and necessary expenses of the

Receivership Estate that were advanced by GFC, billed in accordance with the SEC Guidelines.

The services rendered thus far by the Receiver and GFC fall into three categories: Asset

Analysis and Recovery, 35.50 hours; Asset Disposition, 12.10 hours; and Case Administration,

24.40 hours.

GFC’s summary of the fees and expenses for the Application Period is as follows:

Professional Hours Rate Total A. Cotten Wright (ACW) 11.20 @ $360.00 $ 4,032.00Anna S. Gorman (ASG) 18.20 @ $340.00 $ 6,188.00Michael L. Martinez (MLM) 40.10 @ $250.00 $10,025.00A. Cotten Wright as Receiver (CWT) 2.50 @ $ 0.00 $ 0.00

Total Hours and Fees: 72.00 $20,245.00Expenses: $ 159.21

Total Fees and Expenses: $20,404.21


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The SEC Guidelines limit the compensation and expense reimbursement available to the

Receiver to thirty percent (30%) of any net recovery. No cash recoveries were made during the

Application Period; therefore, the Receiver respectfully requests that this Application be

approved on the understanding that any payment of Court-approved fees and expenses will be

limited to 30% of net future recoveries.

IV. THE APPLICATION SHOULD BE ALLOWED

The Receiver’s compensation and that of her professionals may be determined at the

Court’s discretion. Court’s consider factors such as the complexity of the case, the benefit of the

services to the Receivership Estate, the quality of the work performed, and the time records

provided when ruling on an application for compensation and reimbursement of expenses. SEC

Fifth Ave. Coach Lines, 364 F.Supp. 1220, 1222 (S.D.N.Y. 1973); see also SEC v. Elliott, 953

F.2d 1560, 1577 (11th Cir. 1992) (per curiam) (the receiver is entitled to compensation if the

receiver reasonably discharges the receiver’s duties, and the circumstances surrounding the

receivership, including the results, are relevant).

Here, the Receiver and GFC respectfully submit that the services for which they seek

compensation were necessary for, and beneficial to, the orderly administration of the

Receivership Estate.

WHEREFORE, the Receiver prays that the Court will enter an Order: 1) Allowing GFC’s requested professional fees in the amount of $20,245.00;

2) Allowing GFC’s requested reimbursement of expenses in the amount of $159.21;

3) Directing that payment of any allowed fees and expenses for GFC shall be limited to thirty percent (30%) of net future recoveries;


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4) Allowing the Receiver to disburse to GFC any portion of allowed but unpaid fees and expenses upon recovery of additional funds, provided that no such disbursement shall exceed 30% of the net balance on hand in the Receivership account; and

5) Granting such further relief as is just and proper. This is the 17th day of April, 2017.

/s/ A. Cotten Wright A. Cotten Wright (State Bar No. 28162) Grier Furr & Crisp, PA 101 North Tryon Street, Suite 1240 Charlotte, North Carolina 28246 Phone: 704.375.3720 Fax: 704.332.0215 [email protected] Exhibits:

• Exhibit A – Receiver’s Certification • Exhibit B - Standardized Fund Accounting Report for the Application Period • Exhibit C - GFC’s Fee Schedule for the Application Period • Exhibit D - GFC’s invoice for the Application Period • Exhibit E – Summary of GFC expenses for the Application Period


EXHIBIT A

Receiver’s Certification


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UNITED STATES DISTRICT COURT WESTERN DISTRICT OF NORTH CAROLINA

CHARLOTTE DIVISION

SECURITIES AND EXCHANGE COMMISSION,

Plaintiff, v. RICHARD W. DAVIS, JR.,

Defendant, and

DCG REAL ASSETS, LLC, et al.,

Relief Defendants.

CASE NO. 3:16-CV-285

RECEIVER’S CERTIFICATION IN SUPPORT OF THIRD APPLICATION

FOR COMPENSATION TO GRIER FURR & CRISP, PA, ATTORNEYS FOR THE

RECEIVER

A. Cotten Wright, the Receiver for the estates of the Receivership Defendants herein,

hereby certifies as follows with respect to the Third Application for Compensation to Grier Furr

& Crisp, PA, Attorneys for the Receiver and the invoice attached thereto as Exhibit D:

1. This Certification is made in compliance with the Billing Instructions for

Receivers in Civil Actions Commenced by the U.S. Securities and Exchange Commission (the

“SEC Guidelines”).

2. I am an attorney licensed to practice law in the State of North Carolina and the

United States District Court for the Western District of North Carolina. I am a member of the

law firm of Grier Furr & Crisp, PA (“GFC”).

3. I have read and am familiar with GFC’s application for compensation and

reimbursement of expenses for the period of January 1, 2017 through March 31, 2017 (the

“Application”). To the best of my knowledge, information and belief formed after reasonable


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inquiry, the Application and all fees and expenses set forth therein are true and accurate and

comply with the SEC Guidelines.

4. All fees contained in the Application are based on the rates listed in the GFC’s fee

schedule to the Application as Exhibit C, and such fees are reasonable, necessary and

commensurate with the skill and experience required for the activity performed.

5. GFC has not included in the amount for which reimbursement is sought the

amortization of the cost of any investment, equipment, or capital outlay in any request for

expense reimbursement.

6. In seeking reimbursement for a service which the GFC justifiably purchased or

contracted for from a third party (such as copying, imaging, bulk mail, messenger service,

overnight courier, computerized research, or title and lien searches), GFC requests

reimbursement only for the amount billed to GFC by the third-party vendor and paid by GFC to

such vendor.

7. The Receiver and GFC professionals recorded time for all services provided in

increments of one-tenth of an hour.

8. The litigation reflected in Wright v. JBC, Inc., et al., Case No. 3:16-CV-621,

resulted in a net economic benefit for the Receivership Estate by clearing title to the Finely

Limited, LLC property so that it can be sold.

9. GFC does not seek payment for time spent preparing the Application or any

documentation in support of the same.

This is the 17th day of April, 2017. /s/ A. Cotten Wright A. Cotten Wright Receiver


EXHIBIT B

Standardized Fund Accounting Report for the Application Period


STANDARDIZED FUND ACCOUNTING REPORT for DCG Receivership - Cash BasisReceivership; 3:16-CV-285

Reporting Period 01/01/2017 to 03/31/2017

FUND ACCOUNTING Detail Subtotal Grand Total

Line 1 Beginning Balance (As of 01/01/2017) 141,923.56

Increases in Fund Balance:

Line 2 Business Income Line 3 Cash and Securities Line 4 Interest/Dividend Income Line 5 Business Asset Liquidation Line 6 Personal Asset Liquidation Line 7 Third-Party Litigation Income Line 8 Miscellaneous - Other

Total Funds Available (Lines 1-8):

Decreases in Fund Balance:

Line 9 Disbursements to Investors

Line 10 Disbursements to Receivership Operations Line 10a Disbursements to Receiver or Other Professionals

Line 10b Business Asset Expenses 10,720.46 10,720.46 Line 10c Personal Asset Expenses

Line 10d Investment Expenses

Line 10e Third-Party Litigation Expenses

1. Attorney Fees

2. Litigation Expenses

Total Third-Party Litigation Expenses

Line 10f Tax Administrator Fees and Bonds

Line 10g Federal and State Tax Payments

Total Disbursements for Receivership Operations 10,720.46 10,720.46

Line 11 Disbursements for Distribution Expenses Paid by the Fund: Line 11a Distribution Plan Development Expenses

1. Fees:

Fund Administrator

Independent Distribution Consultant (IDC)

Distribution Agent

Consultants

Legal Advisers

Tax Advisers

2. Administrative Expenses

3. Miscellaneous

Total Plan Development Expenses

Line 11b Distribution Plan Implementation Expenses:

1. Fees:

Fund Administrator

Independent Distribution Consultant (IDC)

Distribution Agent

Consultants

Legal Advisers

Tax Advisers


3. Investor Identification

Notice Publishing Approved Plan




Claimant Indentification

Claims Processing

Web Site Maintenance/Call Center

4. Fund Administrator Bond

5. Miscellaneous

6. Federal Account for Investor Restitution

(FAIR) Reporting Expenses

Total Plan Implementation Expenses

Total Disbursements for Distribution Expenses Paid by the Fund

Line 12 Disbursement to Court/OtherLine 12a Investment Expenses/Court Registry Investment

System (CRIS) Fees

Line 12b Federal Tax Payments

Total Disbursements to Court/Other

Total Funds Disbursed (Lines 9-11)

Line 13 Ending Balance (As of )

Line 14 Ending Balance of Fund - Net Assets:Line 14a Cash & Cash Equivalents

Line 14b Investments

Line 14c Other Assets or Uncleared Funds

Total Ending Balance of Fund - Net Assets 131,203.10

Other Supplemental Information Detail Subtotal Grand Total

Report of Items NOT to Be Paid by the Fund

Line 15 Disbursements for Plan Administration Expenses Not Paid by the Fund Line 15a Plan Development Expenses Not Paid by the Fund:

1. Fees:

Fund Administrator

IDC

Distribution Agent

Consultants

Legal Advisors

Tax Advisors


3. Miscellaneous

Total Plan Development Expenses Not Paid by the Fund

Line 15b Plan Implementation Expenses Not Paid by the Fund

1. Fees:

Fund Administrator

IDC

Distribution Agent

Consultants

Legal Advisors

Tax Advisors


3. Investor Indentification

Notice/Publishing Approved Plan




Claimant Identification

Claims Processing

Web Site Maintenance/Call Center

4. Fund Administrator Bond

5. Miscellaneous

6. FAIR Reporting Expenses

Total Plan Implementation Expenses Not Paid by the Fund

Line 15c Tax Adminstrator Fees & Bonds Not Paid by the Fund

Total Disbursements for Plan Adminstration Expenses Not Paid by the Fund

Line 16 Disbursements to Court/Other Not Paid by the Fund Line 16a Investment Expenses/CRIS Fees

Line 16b Federal Tax Payments

Total Disbursements to Court/Other Not Paid by the Fund

Line 17 DC & State Tax Payments

Line 18 No. of Claims Line 18a # of Claims Received This Reporting Period

Line 18b #of Claims Received Since Inception of Fund

Line 19 No. of Claimants/Investors Line 19a # of Claimants/Investors Paid This Reporting Period

Line 19b # of Claimants/Investors Paid Since Inception of Fund

Receiver

By:

A. Cotten Wright (printed name)

Receiver (title)

Date:


EXHIBIT 1



DETAIL OF LINE 10b, Business Asset Expenses

Description Amount Total United States District Court Certified Copy Fee 11.50 Zielinski, Inc Title Search Fee 321.00 Crown, Stanley and Silverman Private Investigator Fees Nevada 1,374.84 Trustee Insurance Agency - Insurance on 9137 Mount Holly- Huntersville Rd 450.00 Yeatts Real Estate Appraisals of SW Virginia 4,000.00 City of Charlotte - Water & Sewer service 9137 Mount Holly- Huntersville Rd 41.22 Mecklenburg County Register of Deeds - Recording Judgment Fee on JBC 26.00 Duke Energy - Electrical service for 9137 Mount Holly- Huntersville Rd 50.76 Trustee Insurance Agency - Insurance on estate assets 1,510.00 T.B. Harris, Jr & Associates - Appraisal of Alexandirana Road 2,350.00 City of Charlotte - Water & Sewer service 9137 Mount Holly- Huntersville Rd 4.58 Duke Energy - Electrical service for 9137 Mount Holly- Huntersville Rd 36.06 City of Charlotte - Water & Sewer service 9137 Mount Holly- Huntersville Rd 6.98 Thompson-Smith, Inc - Appraisal of 9137 Mount Holly-Huntersville Rd 500.00 Duke Energy - Electrical service for 9137 Mount Holly- Huntersville Rd 37.52

10,720.46

DETAIL OF LINE 10e, Third Party Litigation Expenses

-

DETAIL OF LINE 14a, Cash & Cash Equivalents Total

Description Rabobank, N.A. Account # xxxxxx2666 131,203.10


EXHIBIT C

Grier Furr & Crisp, PA Fee Schedule


Attorney Code Position Year Licensed

Hourly Rate

Joseph W. Grier, III JOE Member 1977 $550 A. Cotten Wright ACW Member 2001 $360 Anna S. Gorman ASG Staff Attorney 1994 $340 Michael L. Martinez MLM Associate 2009 $250 A. Cotten Wright as Receiver

CWT Receiver 2001 $0


EXHIBIT D

Grier Furr & Crisp, PA Invoice for Application Period


/

(704) 375-3720

ATTN:

Suite 1240101 North Tryon StreetCharlotte, NC 28246

Grier Furr & Crisp, P.A.

A. Cotten Wright, Receiver

Matter:16-6477File #:

Apr 18, 2017101 North Tryon Street Suite 1240Charlotte, NC 28246

13716

DATE DESCRIPTION HOURS AMOUNT LAWYER

Jan-03-17 CASE ADMINISTRATION Travel to and from 9137 Mount Holly-Huntersville Road to remove personal property of third party from house.

1.50 0.00 CWT

ASSET ANALYSIS AND RECOVERY Call with E. Bowers regarding foreclosure sale scheduled for tomorrow regarding land in Huntersville, discussed tax issues related to credit bidding. Follow up call from E. Bowers, pull relevant information from file regarding history of transaction and discuss with E. Bowers.Receive call E. Bowers regarding parameters to credit bid and related tax issues.

0.80 272.00 ASG

ASSET ANALYSIS AND RECOVERY Telephone callfrom G. Jones with Ritchie Bros. re: retrieval of equipment. Review videos from Gina Brent re: the same.

1.60 400.00 MLM

ASSET ANALYSIS AND RECOVERY Review SEC records database for additional assets.

2.40 600.00 MLM

CASE ADMINISTRATION Telephone call from C. Swecker, attorney for investors S.M. and C.D. Emails with C. Swecker re: the same.

0.10 25.00 MLM

CASE ADMINISTRATION Travel to and from 9137 Mount Holly-Huntersville Road property to remove personal property not belonging to the receivership estate.

1.50 375.00 MLM

Jan-04-17 ASSET ANALYSIS AND RECOVERY Receive correspondence H. Culp, Substitute Trustee regarding problem with foreclosure action she filed regarding Huntersville property, call with H. Culp. Discuss with

0.50 170.00 ASG


April 18, 20172Page13716Invoice #:

ACW. Update to B. Blythe regarding plan to refile foreclosure to correct errors of Substitute Trustee.ASSET ANALYSIS AND RECOVERY Review file regarding property on Alexandriana Rd for description inpreparation of having appraised. Review Easement issue documentation. Call to A. Weich of TB Harris andAssociates, discuss property and easement, cost of appraisal and time frame. Scan documents to A. Weich for appraisal.

0.80 272.00 ASG

ASSET DISPOSITION Review information on residential real estate lot in Granite Falls, NC. Foward toW. Lilly for opinion on auctioning same. Receive opinion from auctioneer. Call and correspondence to realtor, left messages.

0.80 272.00 ASG

ASSET ANALYSIS AND RECOVERY Review subpoena production from S. Bilheimer. Follow-up review of SEC records database re: the same.

2.40 600.00 MLM

ASSET ANALYSIS AND RECOVERY Review SEC records database for additional assets.

3.30 825.00 MLM

ASSET ANALYSIS AND RECOVERY Telephone callfrom investor M.S. re: 9137 Mt Holly-Huntersville Road.

0.20 50.00 MLM

Jan-05-17 ASSET ANALYSIS AND RECOVERY Correspondence with Receiver re: sending Order to A. Weich with request to proceed with appraisal of Alexandriana property and easement.

0.20 68.00 ASG

ASSET ANALYSIS AND RECOVERY Revise list of information requests from R. Davis.

0.80 200.00 MLM

ASSET ANALYSIS AND RECOVERY Email S. Bilheimer re: document production.

0.60 150.00 MLM

CASE ADMINISTRATION Draft proposed order granting motion to abandon 2014 Dodge RAM 2500.Upload the same. Email Debbie Coble re: the same.

0.50 125.00 MLM

Jan-06-17 ASSET ANALYSIS AND RECOVERY Reviewed appraisal of Grayson County, VA property. Brief conference with MLM re: same. Reviewed draft proposal to M.Hale re: possible resolution of Hageman claims in VA litigation.

0.50 180.00 ACW

ASSET ANALYSIS AND RECOVERY Receive call from B. Blythe regarding Town of Huntersville and real property to be foreclosed, errors in same and delay.

0.20 68.00 ASG

CASE ADMINISTRATION Review documents pertaining to K. Hageman claims. Draft settlement proposals for consideration by M. Hale and K. Hageman. Email ACW re: the same. Conference ACWre: same.

1.30 325.00 MLM

CASE ADMINISTRATION Draft letter to Chrysler Capital, DMV, and NCDOI re: 2014 Dodge RAM 2500.

1.00 250.00 MLM



Jan-09-17 ASSET ANALYSIS AND RECOVERY Telephone callfrom and email to investor M.S. re: 9137 Mount Holly Huntersville Road.

0.30 75.00 MLM

Jan-10-17 ASSET ANALYSIS AND RECOVERY Update Affidavit of Secured Party to support foreclosure.Forward to Substitute Trustee.

0.30 108.00 ACW

ASSET DISPOSITION Correspondences with Realtor regarding vacant lot in Granite Falls, pricing of same, terms of Listing Agreement, terms under Receivership Order.

0.20 68.00 ASG

Jan-12-17 ASSET DISPOSITION Receive and mark up Listing Agreement and other related documents regarding selling real property in Granite Falls, NC; correspondence to the Realtor about same.

0.40 136.00 ASG

ASSET ANALYSIS AND RECOVERY Emails with investors M.S. and S.S. re: 9137 Mount Holly-Huntersville Road. Research re: the same.

1.60 400.00 MLM

Jan-13-17 ASSET DISPOSITION Receive and review updated Listing Agreement and related documents regarding real property in Granite Falls, NC. Draft Ex Parte Motion and Order authorizing appraisal and retaining realtor.File with Court and send correspondence regarding same.

1.00 340.00 ASG

Jan-17-17 CASE ADMINISTRATION Travel to 9137 Mt Holly-Huntersville Road to enable Dodge RAM 2500 and reset garage door code.

1.00 250.00 MLM

Jan-18-17 ASSET ANALYSIS AND RECOVERY Revise renewed list of questions for R. Davis. Conference ACW re: the same. Draft consent of R. Davis to disclosure of banking documents. Email M. Burke and R. Davis re: the same. Review SEC records database for additional assets.

1.50 375.00 MLM

ASSET ANALYSIS AND RECOVERY Review supplemental production from S. Bilheimer. Emails withS. Bilheimer re: the same.

0.50 125.00 MLM

CASE ADMINISTRATION Telephone call from Mrs. Pinkett with Chrystler Capital re: reposession of Dodge RAM 2500.

0.30 75.00 MLM

Jan-23-17 ASSET DISPOSITION Correspondence to clerk to inquire about pending ex parte motion to retain realtor to market and sell real property in Granite Falls, NC.

0.10 34.00 ASG

Jan-24-17 ASSET DISPOSITION Receive Court Order regarding real property in Granite Falls, NC. Sent update to Realtor. Draft and file COS; request that MLM serve Order.

0.30 102.00 ASG

CASE ADMINISTRATION Emails with M. Hale re: settlement of Hageman dispute. Telephone call from M. Hale re: the same.

0.50 125.00 MLM

Jan-25-17 ASSET ANALYSIS AND RECOVERY Detailed review all listing documentation and sign electronically.Correspondence to K. Turner regarding same.

0.50 170.00 ASG



CASE ADMINISTRATION Emails with R. Davis re: document requests.

0.10 25.00 MLM

Jan-26-17 CASE ADMINISTRATION Telephone call from investor re: L.B.

0.40 100.00 MLM

Jan-27-17 ASSET ANALYSIS AND RECOVERY Call with A. Reich regarding appraisal of real property at Alexandriana Rd. Pull and forward additional information to him regarding sewer easement.

0.30 102.00 ASG

Jan-30-17 CASE ADMINISTRATION Worked on draft of Third Receiver's Report.

1.50 540.00 ACW

ASSET ANALYSIS AND RECOVERY Correspondences and confirmation regarding F/C hearing time scheduled for tomorrow. Receive and review Trustee's Affidavit, brief review of file for Hearing.

0.40 136.00 ASG

Jan-31-17 ASSET ANALYSIS AND RECOVERY Correspondences with H. Culp and J. Long regarding today's foreclosure hearing, review proposed Order and Notice and update same.

0.40 136.00 ASG

ASSET ANALYSIS AND RECOVERY To Court for Foreclosure Hearing as to real property in the Town of Huntersville. Participate in same.

1.00 340.00 ASG

CASE ADMINISTRATION Review and revise Receiver's Report to reflect actions taken.

0.20 68.00 ASG

CASE ADMINISTRATION Review and edit draft thirdquaterly report.

0.20 50.00 MLM

Feb-01-17 ASSET ANALYSIS AND RECOVERY Forward file stamped documents of foreclosure hearing to B. Blythe, Town of Huntersville with update on process.

0.10 34.00 ASG

Feb-02-17 ASSET ANALYSIS AND RECOVERY Reviewed appraisal of Alexandriana Rd property and calculation ofvalue of easement. Reviewed information on Mecklenburg County Register of Deeds website. Sent email to ASG re: correction as to ownership of the property as shown in appraisal. Email correspondence with A.Reich re: correction of ownership information in appraisal.

0.70 252.00 ACW

ASSET ANALYSIS AND RECOVERY Reviewed email from M.Hale to MLM re: Grayson County property & Hageman claim. Sent response to MLM re: same.

0.20 72.00 ACW

Feb-03-17 ASSET DISPOSITION Brief review of final appraisal.Correspondence with Real Property brokers W. Maxwelland W. Morris regarding marketing and selling real property on Alexandriana Rd.

0.40 136.00 ASG

ASSET ANALYSIS AND RECOVERY Emails with M. Hale re: settlement.

0.20 50.00 MLM

Feb-06-17 ASSET DISPOSITION Call with Broker W. Maxwell and Trinity Partners regarding listing Alexandriana Rd property, thoughts on pricing, market and related issues.

0.30 102.00 ASG



ASSET ANALYSIS AND RECOVERY Emails with J.D. DuPuy, attorney for Mecklenburg County, re: statusof certain real property.

0.20 50.00 MLM

CASE ADMINISTRATION Telephone call from investor M.S. re: status of various matters in the case.Telephone call from investor G.B. re: the same.

0.30 75.00 MLM

Feb-07-17 ASSET DISPOSITION Review and update Listing Agreement with Trinity Partners regarding listing 11711 Alexandriana Rd. Draft Ex Parte Application for Receiver to retain Appraiser and Broker for this real property. File with Court and corresondence to clerk regarding same.

1.50 510.00 ASG

ASSET ANALYSIS AND RECOVERY Telephone callfrom M. Hale re: settlement with K. Hageman.

0.10 25.00 MLM

Feb-09-17 CASE ADMINISTRATION Brief review of files related to prior years' tax returns provided by SEC.Copied files onto flash drive for Middleswarth Bowers and drafted letter to L.LeGrand enclosing same.

0.60 216.00 ACW

ASSET DISPOSITION Receive Court Order authorizing listing of real property for sale on Alexandriana Rd. Have signed by ACW and forward to W. Maxwell of Trinity Partners with correspondence.

0.30 102.00 ASG

ASSET ANALYSIS AND RECOVERY Telephone callto D. Smith re: appraisal of house of Mount Holly-Huntersville Road. Emails with investors M.S. and S.S. re: the same.

0.30 75.00 MLM

Feb-13-17 ASSET ANALYSIS AND RECOVERY Receive tax delinquent notice related to real property in Caldwell Co. Call tax office regarding Receivership, that property is on market and not to proceed with tax sale.

0.10 34.00 ASG

CASE ADMINISTRATION Telephone call from appriaser D. Smith. Email D. Smith re: the same.

0.20 50.00 MLM

CASE ADMINISTRATION Telephone call from D. Rosser re: firearms and investor communications.

0.20 50.00 MLM

Feb-14-17 ASSET ANALYSIS AND RECOVERY Review and provide input into foreclosure Public Notice of sale and correspond with H. Culp.

0.30 102.00 ASG

ASSET ANALYSIS AND RECOVERY Emails with G. Brent re: securing personal property.

0.10 25.00 MLM

Feb-16-17 ASSET DISPOSITION Receive, revise and draft addendum to Exclusive Authorization to Sell real property in VA and correspondence with B. Bonk, broker regarding same.

0.70 238.00 ASG

CASE ADMINISTRATION Draft application to employ D. Smith to appraise house located at 9137 Mount Holly-Huntersville Road. Update investor email list. File and serve the same.

1.40 350.00 MLM

Feb-17-17 ASSET ANALYSIS AND RECOVERY Emails with M. Hale re: settlement of Hageman claims.

0.30 75.00 MLM



CASE ADMINISTRATION Telephone call from and emails with investor R.S.

0.40 100.00 MLM

Feb-20-17 ASSET DISPOSITION Discuss terms of lising agreement with ACW re: Virginia property.

0.20 68.00 ASG

Feb-21-17 CASE ADMINISTRATION Drafted notice of appearance to file in criminal case re: appointment as special master. Filed notice electronically.

0.20 72.00 ACW

ASSET DISPOSITION Follow up with Trinity Partnersre: status of Alexandriana property, whether on market.Follow up with Coldwell Banker re: status of residential lot in Granite Falls, whether on market.

0.20 68.00 ASG

ASSET DISPOSITION Draft Ex Parte Motion for Authority to enter into Listing Agreement with United Country Collins and Associates to list 290 acres in Grayson Co, VA.

0.70 238.00 ASG

Feb-22-17 ASSET DISPOSITION Call with ACW and B. Bonk regarding VA real property. Correspondence to B. Bonkwith addenda to listing agreement and pricing of property.

0.50 170.00 ASG

Feb-24-17 ASSET DISPOSITION Receive and review updated Listing Agreement regarding real property in Grayson Co, VA. File same with Court and upload proposed Order. Communication with Judge's clerk regarding same.

0.50 170.00 ASG

CASE ADMINISTRATION Telephone call from investor C.D.

0.30 75.00 MLM

Feb-27-17 ASSET ANALYSIS AND RECOVERY Emails with ASG and ACW re: foreclosure procedure. Conference ACW re: the same.

0.50 125.00 MLM

CASE ADMINISTRATION Respond to emails on DCG Receivership website. Email R. Davis re: outstanding information requests.

0.20 50.00 MLM

Feb-28-17 ASSET DISPOSITION Receive Court Order authorizing entry into Listing Agreement regarding VA property, serve same, have signed by ACW, return to B. Bonk with correspondence.

0.40 136.00 ASG

ASSET ANALYSIS AND RECOVERY Emails with M. Hale re: settlement. Conference ACW re: the same.Email D.Smith re: appraisal.

0.40 100.00 MLM

Mar-01-17 CASE ADMINISTRATION Conference with MLM re:email from J.P. Davis stating R.Davis asserts Fifth Amendment rights as to our requests for information.Reviewed and edited response drafted by MLM.Reviewed response from JP Davis.

0.70 252.00 ACW

ASSET ANALYSIS AND RECOVERY Conference ACW re: fifth amendment issues. Emails with JP Davis re: the same.

2.10 525.00 MLM

ASSET ANALYSIS AND RECOVERY Draft motion to approve settlement with Hageman.

0.40 100.00 MLM



ASSET ANALYSIS AND RECOVERY Telephone callfrom Gene Jones with Ritchie Bros. re: equipment retrieval.

0.10 25.00 MLM

Mar-03-17 ASSET ANALYSIS AND RECOVERY Correspondences with H. Culp and M. Haines of the Town of Huntersville regarding status of foreclosure action.

0.30 102.00 ASG

CASE ADMINISTRATION Telephone call from JP Davis re: information to be provided by Rich Davis and Fifth Amendment issues. Conference ACW re: the sameand re: exemption issues.

0.80 200.00 MLM

CASE ADMINISTRATION Telephone call from investor R.S. re: status of case.

0.40 100.00 MLM

Mar-06-17 ASSET ANALYSIS AND RECOVERY Review, compare to file documents and revise H. Culp's pleadings regarding foreclosure of Huntersville Property.

1.00 340.00 ASG

ASSET ANALYSIS AND RECOVERY Review SEC records database for information on RVs. Emails with ASG and ACW re: the same.

0.40 100.00 MLM

Mar-07-17 CASE ADMINISTRATION Emails with D. Rosser re: receiver reports.

0.10 25.00 MLM

Mar-08-17 CASE ADMINISTRATION Draft proposed order approving employment of D. Smith. Emails with D. Coble re: the same. Email D. Smith and ACW re: the same.

0.30 75.00 MLM

Mar-10-17 ASSET DISPOSITION Call with B. Bonk regarding status of VA property.

0.10 34.00 ASG

ASSET DISPOSITION Respond to question about property for sale. Request MLM add information about same on webpage.

0.10 34.00 ASG

CASE ADMINISTRATION Emails with J.P. Davis andACW re: abandoned property in McDowell County.

0.40 100.00 MLM

Mar-13-17 ASSET DISPOSITION Assist broker B. Bonk with description of real property in VA for listing materials.

0.30 102.00 ASG

ASSET ANALYSIS AND RECOVERY Conference ACW re: document production from R. Davis. Review and organize pictures taken of personalty at 9137 Mount Holly Huntersville Road real property. Emails with J. Baynes re: Finely Limited, LLC.

0.50 125.00 MLM

Mar-14-17 CASE ADMINISTRATION Met with J.Sugar and S.Rutledge re: coordinating notifications investor-victims regarding criminal case hearings and thelike. Sent follow-up email to S.Rutledge re: sample notice from special master.

0.60 216.00 ACW

CASE ADMINISTRATION Requested B.Lewis cross-check victim list from AUSA with receivership investor list. Sent email to P.Costello & D.Matthews re: discrepancies between the two lists. Reviewed

0.20 72.00 ACW



email from D.Matthews and sent reply with highlighted list from AUSA.CASE ADMINISTRATION Call to chambers to confirm that Judge Mullen has no issue with my appointment as special master in criminal case.

0.10 36.00 ACW

CASE ADMINISTRATION Emails with JP Davis re: personal property and information requests. Emails withACW re: the same.

1.00 250.00 MLM

Mar-15-17 CASE ADMINISTRATION Reviewed email from C.Matthews re: victim-investor list and sent response.

0.10 36.00 ACW

CASE ADMINISTRATION Spoke with E.Bowers re: accounting questions regarding funds in and out of receivership entities. Forwarded information to E.Bowers. Sent email to C.Mathews re: working with E.Bowers.

0.20 72.00 ACW

ASSET ANALYSIS AND RECOVERY Call from J. Hyatt regarding asset of estate.

0.30 102.00 ASG

CASE ADMINISTRATION Telephone call from JP Davis re: personal property in R. Davis's former residence.

0.20 50.00 MLM

Mar-16-17 CASE ADMINISTRATION Reviewed and edited draftmotion to abandon any interest held by receivership in personal property stored at 9137 Mount Holly-Huntersville Rd.

0.40 144.00 ACW

ASSET DISPOSITION Pull references to real property being marketed for sale by Trustee and foward to B. Lewis to post on DCG Website.

0.40 136.00 ASG

ASSET DISPOSITION Draft Motion to Abandon Personal Property located at home in Huntersville and to direct Defendant to remove same, draft Notice of Opportunity for Objection. File and serve same with correspondence.

1.00 340.00 ASG

Mar-17-17 CASE ADMINISTRATION Took call from investor re: claims process and related issues.

0.20 72.00 ACW

CASE ADMINISTRATION Travel to 9137 Mount Holly-Huntersville Rd to meet JP Davis and R.Davis to turnover children's beds and personal property belongingto third party.

1.00 0.00 CWT

CASE ADMINISTRATION Emails with various parties re: various issues.

0.60 150.00 MLM

Mar-20-17 CASE ADMINISTRATION Contacted Duke Energy re: past due invoice for service at 9137 Mount Holly-Huntersville Rd. Sent email to JP Davis re: past due invoice is the final bill for service in C.Brantley's name, before I had access to the property.

0.20 72.00 ACW

Mar-22-17 CASE ADMINISTRATION Worked on draft of Receiver's Fourth Report.

1.20 432.00 ACW

CASE ADMINISTRATION Reviewed statutes re: special master. Researched online notices by special masters in other cases.

0.30 108.00 ACW



Mar-23-17 ASSET DISPOSITION Drafted motion for approval ofeasement agreement relative to Alexanderana Road property in exchange for appraised value. Exchanged multiple emails and calls with G.Faltin re: issues related to easement. Drafted proposed order on motion.

1.20 432.00 ACW

CASE ADMINISTRATION Reviewed various docket entries in criminal case and prepared posts for website relative to same. Sent email to J.Sugar & S.Rutledge re: proposed posting; reviewed response from J.Sugar.Requested B.Lewis post information to receivership website.

1.00 360.00 ACW

CASE ADMINISTRATION Provide input into Receiver's Fourth Report and Asset Chart.

0.20 68.00 ASG

Mar-24-17 ASSET DISPOSITION Edited motion to approve easement. Exchanged multiple emails with G.Faltin re: same. Filed motion with easement agreement and description attached. Requested B.Lewis serve motion and post to website.

0.50 180.00 ACW

CASE ADMINISTRATION Reviewed order entered incriminal case re: status conference; continuation of trial date. Requested B.Lewis post notice of status conference to website.

0.20 72.00 ACW

ASSET ANALYSIS AND RECOVERY Telephone callfrom A. Cayton, attorney for M.S., re: 9137 Mount Holly-Huntersville Road. Email ACW re: the same.

0.50 125.00 MLM

Mar-26-17 ASSET ANALYSIS AND RECOVERY Draft settlement agreement with Ken Hageman. Draft motion to approve the same.

3.50 875.00 MLM

Mar-27-17 CASE ADMINISTRATION Reviewed letter from VNS re: status hearing in criminal case and related issues.

0.10 36.00 ACW

ASSET ANALYSIS AND RECOVERY Conference ACW re: draft settlement agreement, and motion to approve settlement, with Hageman. Revise the same.Emails with Matt Hale re: the same.

1.30 325.00 MLM

Mar-28-17 ASSET ANALYSIS AND RECOVERY Emails with Matt Hale re: proposed settlement agreement.Conference ACW re: the same.

0.30 75.00 MLM

Mar-29-17 ASSET ANALYSIS AND RECOVERY Correspondence to H. Culp regarding foreclosure Sale on Monday, review file for notes on credit bidding.

0.20 68.00 ASG

CODE SUMMARY:

L701 $9,728.0035.50ASSET ANALYSIS AND RECOVERY:

L702 $4,148.0012.10ASSET DISPOSITION:



L706 $6,369.0024.40CASE ADMINISTRATION:

$20,245.00Totals Fees 72.00

FEE SUMMARY:

Lawyer Hours Effective Rate Amount

A. Cotten Wright 11.20 $360.00 $4,032.00

Cotten Wright Trustee 2.50 $0.00 $0.00

Anna S. Gorman 18.20 $340.00 $6,188.00

Michael L. Martinez 40.10 $250.00 $10,025.00

DISBURSEMENTS Disbursements Receipts

Jan-23-17 21.45Postage

Jan-31-17 1.80Computer Assisted Research Pacer Service 9.50Computer Assisted Research Pacer Service

Feb-17-17 18.40Postage19.78Postage19.32Postage

1.86Postage30.00Photocopy Charge 200 @ $0.15

12.90Photocopy Charge 86 @ $0.158.40Photocopy Charge 56 @ 0.15

Feb-28-17 2.90Computer Assisted Research Pacer Service 12.90Computer Assisted Research Pacer Service

Totals $159.21 $0.00



Please make check payable to Grier Furr & Crisp, PA

$68,794.83Balance Due

$0.00Previous Payments$48,390.62Previous Balance

Total Fees & Disbursements $20,404.21



TRUST STATEMENT

Disbursements Receipts

Mar-23-17 Received From: Wire In / Moore & Van Allen/DCGWire In / Moore & Van Allen/DCG 16-6477

5,350.00

Total Trust $0.00 $5,350.00

$5,350.00Trust Balance


EXHIBIT E

Summary of Expenses Incurred by Grier Furr & Crisp, PA for Application Period


Expense Category Amount Court Fees and Charges 0.00Postage $80.81Pacer Charges $27.10Copies $51.30Federal Express charges 0.00Service Fee – Secretary of State 0.00

Total $159.21


Documents

CHLT-#122146-v1-DCG Third Application for Compensation - GFC · Case 3:16-cv-00285-GCM Document 100 Filed 04/21/17 Page 2 of 35. 3 • GFC’s invoice for the Application Period,