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Case 1:15-cv-23070-MGC Document 197 Entered on FLSD Docket 06/27/2018 Page 1 of 18
UNITI,D S'I'ATT~~S DIS'1 RICT CO~UI2TSOUTHERN DISTRICT' OF FLORIDA
C~sc No. 15-23070-civ-COOKE/TORR.ES
CONSUML:R l~'INANCIAL PRO'I'I~CTIONBURI;AIJ,
P1aiz~tiPf,
v.
ORION PROCESSING, LLC, etc., et al.,
Defendants.
MOTION FOR ORDER AI'l'ROVING I'INAL R~1'OR"1, AND I~'INAL ACCOUNTING,
FINAL REQUEST FOR APPI20VAL AND PAYMI+',NT OF I2~C~IV~12'S AND
I'ROT~'rSS1ON~.L'S FEES AnTD COSTS, INCLUDING 'I'HOS~ PROM AUGUST 1, 2017
THROUGH CLOSING, FAR DISCHARGE ANI) RELATED R~~LILF; MEMORANDUM
Oi' LAW IN SUPPORT TIIEREOI~
Robb Evans &Associates LLC, as Receivez~ ("Receiver") over Family Capital Investment
& Manage~11ei7t, I~~LC, and its successors, assigns, affiliates, or subsidiaries, and each of ~l~em, by
whatever Haines each might be ic~iown, provided that the Receiver leas reasoli to believe they az•e
owned or controlled in whole or ~iti part by any aC the Defendants, and World Law Debt Services,
LLC and World Law Processing, LLC, and their successors, assigns, affiliates, or sLibsidiaries;
and each of them, by whatever names each ~71igl~t be la~own, provicleci that the Receiver I~as
reason to believe they ai~e owned or conli•ollcd in whole or in p~i~t b}~ a~~y of the Defendants,
hez-eby moves the Collrt for an order for tl~e followi~ig ~~elieT:
1. Appl•oving tl~e Receiver's Final Report and final Accoluiting; whiell are bei~l~
filed concun~ently herewith;
2. Authorizi»g and approving the Receiver's wind up of the z~eceivership estate
created under tine Defatilt Judginen~ and order l~~ainst World I acv Debt Services LLC, World
- ]-1 IS129091.)
Case 1:15-cv-23070-MGC Document 197 Entered on FLSD Docket 06/27/2018 Page 2 of 18
Law Processing, LLC, and I'amil~~ Capita] Investment &Management LLC entered. August J,
201 h (D.~. 104) ("World Law .iudgment");
3. Approving and coilfirining all actions ai d activities taken by or on behalf of the
Receiver and all proposed actions to be taken, and all pay~a~e~~ls made by the Receiver and alI
proposed payments to be ai~ade in connection with the administration of the receivership estate;
4. Approving and authorizing payment of the Tees of the Receivea~, the Receiver's
i~lembers, staff and professionals, and reimbursement of costs p~•eviously sought pursuant to tl7e
Motion for Ordez- Approving and Authorizing Payment of lees and Expenses of the Receiver and
the Receiver's Professionals From January 1, 20l 7 'Through July 3 J , 2017 (D.E.D.E. 183)
("Fifth Fee Motion"), comprised of: (a) Receiver's fees and costs of X74,570.80; (b) Receiver's
local counsel, Carlto~l Fields' fees and costs of $20,217.79; and (c) Receiver's for►77cr lead
counsel, Diamond McCarthy, I_,LP's ("Diamozld McCarthy") fees and costs of $106,761.84;
5. l~pprovir~lg and authoi•izii7g payment of the fees of the Receiver, the Receiver's
meml~c;rs, staff and professionals, aild reimbuzsemeiat of costs during; the period from August 1,
2017 through the closing of the receive7•sl~ip estate ("Final Expense Period"), coi~api-ised of: (a)
Receiver's ices, including the Receiver's members and staff', of $6,198.90 ai d Receiver's costs
of $9,409.45, foz• a total oF$15,608.35 for the period ~fi~om August 1, 2017 tht~ough April 30,
2014, plus estimated Receiver's fees of $1 ]. ,418.00 and Keccivcr's costs of $2 ,302.31 (w}~ich
includes an estimated X20,000.00 for ilie Receiver's outside accotnatarlt Sc~uar Milner ]~l,P
("Squar Milnea~") which prepares tai returns and 1•cccivership rett~z~ns), foi• t11e period from May
1, 20'18 tl~rol~gh closinb of the estate, for a total of X53;328.66; (b) Receiver's local cotulsel
Carltoa~ Fields' fees oi~ $ l ] ,300.65 and Carlton Fields' costs of $270.62, lol• a total ol~ $ l l ,57 7.27
for tl~e period from August 1, 207.7 through Api•il 3Q, 2018, plus estimated fees oi~$2,500 and
costs of $500 for the period fi-o~n May 1, 2018 tlirougl~ the closing oT the estate, for a total of
- 2-I I$12)091. 1
Case 1:15-cv-23070-MGC Document 197 Entered on FLSD Docket 06/27/2018 Page 3 of 18
$14,571.27; (c) Receiver's former lead colmsel, Diamond McCartl~y's Fees of $10,41 LC5 Tor the
period from !-~ugList 1, 207.7 through Novezllber 20, 20] 7; al~d (d) Receiver's current lead
couzlsel, ~3anies & Thornbt7rg LLP ("Barnes & Thorz~btu~g") ~~fees o~$2,511.60 az~d costs of
bl 1.1.0, for a total of $2,522.70 for the pez~iod from November 14, 2017 th~•ough April 30; 2018,
phis estimated fees of $9,000 and costs of $1,000 for the period from May 1, 2018 throt~gl~ the
closing of the estate, ~foi• a total of $12,522.70; all as set forth in the Final Accounting attached to
the Final Report filed concurrently herewith, with a~1 order providing iJ~at cue r~~inimis an~owlts
incurred above tl~e estimated ai~lowlts may be paid only wit:la the approval of the plaintiff
Consumer ~ii2ancia.l Protection 13Lireau (the Bureau");
6. Authot•izing tl~e Receiver to distribute the. i~cmainin~ assets of the ~~eceivership
estate held by the Receiver after the payi~aent oil admi»isti~ative expenses, to the Buz~eau or the
Bureau's agent, in accordance wit11 paragraph 72.b. of the World Law Judglnezat;
7. Atrthorizing the Receiver to destroy all records of the Receivership Defendants
and Affiliated Entities as hereinafter• de~ii~ed, in tl~e Keceiver's possession, custody or control
within 30 days after the Receiver serves written notice on the Bureau of the Receiver's inl~ention
to destroy such records, unless the Bureau requests possession oi'the records or another
government agency issues a subpoena for such records, in whic]2 case the Receiver is atirthorized
to turn over the records to ~thc Bureau or to the government agency which issued fhe subpoena;
8. Effective upon the completion of t11e adii~inistration of the receivership estate and
the disU~ibution of the 1•emai~lii~g filzlds in the Receiver's possessio~l a~~d custody to the Btilreau,
for aai oz~der (~) providing that neither the Receiver' ~Io~- any agent, employee, mei~nber, ol'~ccr,
indepe~Ideilt contt~actor, attorney oz- represei~tativc of ~tl~e Receiver s1i211 lave airy liability to any
person or e~lYity for a1~y action tial<en in connection wish carrying otri the Receiver's
administration of tl~e receivership estate, and the exercise oi' any powers; duties and
-,- ~-
I 15129091.1
Case 1:15-cv-23070-MGC Document 197 Entered on FLSD Docket 06/27/2018 Page 4 of 18
responsibilities in eoilnection the~~ewitll; aild (b) directing that the Receiver, its agents,
e~ilployees, mez~~bers, officers, independent contractors, ~ttor~leys and z-epresei7tatives are
discharged, released from all claims a~1d liabilities arising DLit of a»d/or pertaining to the
i•eceiversl~ip, and relieved of all duties and responsibilities pertaining to the receivership; and
9. Granting such addilion~l relief ire co~inection with the wind u~ and closing of the
receivership estate ~s i:he Court may determine to be just and proper udder the circumstances.
This Motion is made pursuant- to Local Civil Rule 7.1 and paragraphs 67-75 of the World
Law Judgment "I'11e Motion is based upon this ~notio~i, on the separate zlotice of motion served
cozlcurrently herewitl~ on the parties and no~1-colasumer creditors, tl~e supporting memorandum of
la~~ accompanying the Motion, the declaratio~~s of Brick Kane and Gary Owen Caris, att~clied as
Exhibits A and B, respectively aloi7g with the exhibits attached thereto, the Receiver's Final
Repoz~C and Final Accounting filed and served coneurre~ltly herewith, ozl the pleadings, records
and f Jes of the Count in this actiolz of ~~,~hich the Receiver requests the Cow~t take judicial notice
under Federal Rule of evidence 201, including without limitation the Report of Receiver's
Activities for the Pez•iod From Septcr»ber 1, 2015 Through Septeinbei• 4, 2015 (D.E. 30) ("First
Report"), the Report of Receiver's Financial Analysis September 4, 2015 Through Nove»~ber 30,
2015 {D.E. 57) ("Second Report"), Fifth Pee Motion, and such other pleadil~gs az~d docuznentazy
evidence and as•gument of comisel as i~1ay hereat~ter be presented to the Court by the Receiver in
support of the Motion.
MEMORANDUiVI OF I,AW
I. INTRODIICPION
This action is a civil enforceme~It action filed by tl~e Bureau. On A«gust 19, 2015, the
Court issti~ed a Te111porary Restraining Order (D.E. I~To. 12) with an asset freeze and othez~
provisions applicab]e to all defendants. O» August' 28, 2015, Magistrate 1l.~dge "l~orres issued his
- 4-1 15129091. 1
Case 1:15-cv-23070-MGC Document 197 Entered on FLSD Docket 06/27/2018 Page 5 of 18
1•eport and recomine~ldation (D..F. No. 26); ~~ecomme~zding that a Prelin~i~~ary Injunction Orcler be
i~~lposed which included the appointment of a receiver for corporate defendaists World Lew Debt
Services, LLC ("WL Debt") and World Law Processing, LI,C ("WL Processing"). O~Z
September 1, 2015, the Cotiirt entered an order ap~~roving the Stipulated Extension of the
Temporary Restraining Or•dex- for Defendants Derili Scott, David Klein, Family Capital
Investn7ent & Managez~lent, LLC ("TCIAM") aid ReIie~l Delerldant Shliuion Scott (D.T. No. 27)
("FCIAM TRO") pursuant to which the Receiver- vas appointed as Tempol•azy Receiver for
FCIAM.
On September 2, 2015, tl~e Court issued the World I,a~v Preliminary Iz7jtailctiozi pw•suant
to which the Receives• v~~as appointed rece~ivei- over• defendants WL Debt and WL Processing, a~1d
their successors, assigns, affiliates, or subsidiaries, and each of then, by whatever names each
might be known, provided that the Receiver has reason to believe they are owned or controlled in
whose oi• in part by any olthe Defe»dants. On September 14, 2015, the Court issued the PCIAM
Preliulinazy Injunction, appointing the Receiver as receiver over I'CIAM and its successors,
assigns, affiliates, or subsidiaries, and each of~then~, by whatever naz~7cs each might be known,
provided that the Receiver has reason to believe they are owned or controlled in whole or in part
by any of tl~e Defcndailts. ~
Tl~e Receiver filed a brief initial report priinasily focused on I~CIAM on Septenzbea• 8,
2015 prior to the hearing on the Bureau's i~~otion fora }~relimin~u~y injLn~ctiorl and appointment of
a receiver for FCIAM. On December 1, ?015, the Receiver filed its Report of Receiver's
~ For convenience, the World Law Prelioiinary ]rijunction and the PCIAM Preliminary Injunction are referred to
collectively herein as the "Preliminary Injunctions." ]n addition, WL Debt, Wt, Processing, and FCIAR~ and their
successors, assigns, affiliates and subsidiaries, and each of them, by whatever names each might be laiown, provided
that d1e Receiver has reason to believe they arc owned or controlled in whole or in part by auy of the llefendants, are
Receivership Defendants under the Preliminary Injunction and referred to herein as the Receivership Defendants.
Vario~~s successors, assigns, subsidiaries and affiliates of WL Debt, WL Processing and PCIAivI, including ~~~itho~it
IimitaCion World Law I'oz~ms ai d MediaCion, Inc. ("roans") and WLD Price Global, ]na ("Price GlobaP'), are.
son7ct~imes reFerred to herein as tl~e Affiliaie~ Tntitics.
-5-i i7~z<~o~i. i
Case 1:15-cv-23070-MGC Document 197 Entered on FLSD Docket 06/27/2018 Page 6 of 18
~~inax~cial A»alysis September ~}, 2015 T17rough Noven~bel• 30, ?015 (D.E. No. 57) ("Second
Report") aiaalyzing in detail tl~e businc;ss, banking, accounti~i~ and other financial information
and records 1he71 available regarding the ReceivErship llefendants.
In February 2015, prior to ille co~n~llencez~~ent of this action, defendant Orion Processi~ag,
LLC ("Orion") 1~iled a voluntary Chapter 11 petition under- the I3ailkruptcy Code in the United
States Ba~11<ruptey Cotn~t fo1~ the Western District o f "Texas. Nearly contemporataeously with the
commencement of this case, on August 20, 2015, the Bankruptcy Court converted the Orion
bankruptcy case to a Chapt~.c7. 7 }igilidation proceeding, appointing Randolph N. Oshez-o~~~ as the
Chapter 7 trustee for Onion ("Orion Trustee").
Judgments have bee~1 rendered abainst all defendants in file action, eitl~el~ by stipulation or
by default. Receivership Defealdants WL Debt; WI, Processing and FCIAM have not appeared in
the action and the World l aw Judgmen~C was entered against them on nugust 1, 2016 (D.E. No.
104). The Receiver continues to serve as receiver over the Receivership Dei'endants Linder the
World Law Judgment. On August 7 ; 2016; tl~e Court also entered a stipulated judgment against
defendants Derin Scott and David KleiJ1 and Relief Defendants Shannon Scott pursuant to their
Stipulated Final Judgniei~t and Order Agai~~st llefendants Derin Scott, David K.leii~ ar~d Relief
De:fendanC Sha~lnon Scott (ll.T. Nn. 1 US) ("Individl~al Stipulated Judgment"). The Bureau filed a
motion for entry of default judgment against del:endaz~t Bradley Haskins ("H~skins"), who failed
to appear in the action, and a default judgtllent was eiitei•ed against I-Haskins oi~ November 29,
2016 (D.1~. No. l 32). Based on a Stipulation for Entry of Judgment between tlae Bureau and the
Orion Trtiistee, judgment was etlter-ed against Orion and in favor of tl~e I3ui•eau on March 22,
2017 (D.L. Nn. 152).
Under ttie World I,aw 7udgtnent entered Au~usl 1; 2016, file RecEiver was liven 180
days to complete tl~e adnli~~istration and ]ac~uidation of all receivership assets and to file ils final
- 6-1 15129091.1
Case 1:15-cv-23070-MGC Document 197 Entered on FLSD Docket 06/27/2018 Page 7 of 18
report az~d accounting. The Receiver filed a zl~otion, unopposed by the 13w~eaLi, asking the Court
to extend the deadline for 120 days for the Keceiver to complete fl7ese and other tasks i~ecessaiy
to pre}~are the estatE to be wound lrp (D.~. No, 137). The Court granted the Keceivcr's request by
the L;ndorsed Order oi~ January 27, 2017 (D.E. No. 139). The Keceiver later filed an emergency
motion seeking a further• extension oi'tl~e receivership case through Julie 30, 2018 (Doc Nn.
161). The c~xlergency motion was granted, and the receivership leas been extended to June 30;
20l 8 (I.~.T. No. 168).
As of June 30, 20I 7 the Receivez• had cash in the estate of approximately X8,395,000 net
of accrued expenses. '1'l~e Wot-ld La~3~ Judgment grants the Bureau a monetary judgment against
the Receivership Defe»dants in the amount of $106,813,049. World Law Judg~i~ent, p. 15, para.
50.E Iia additiozl, the World Law Jud~menl provides that "This Order grants to t11e I~ureau all
z-igl~ts and claims that Default Defenda~lts have to Default Defendants' frozen assets cur~•ently in
the possession, custody or eont~-ol of the Receiver or in the z-eceivez-ship estate, ai7d Default
Defendants shall forfeit any rights to the fiends era the receivership estate .... " Wo~~ld Law
Judgment, p. 15; Para. 51. ~t the conchision of the receivership, the World Law Judgment
p1•ovides fo1• tine Receives• to "pay all reil~aiiiin~ funds to the Burea-u ~n~ithin ten (10) days" after
tl~e Receivel-'s I:iiial report and accourltilig are appT•oved and the Receiver is authot-ized to wi~1d up
the estate. V~iorld Law Judgme~7t, p. 19, para. 72.b.
On July 21, 2017 the Receiver filed its Motion fox- Order Appz•oving Rcceive~~'s Proposed
Plan of.Distl-ibution and Authoi~izin~ Receiver to Make Interim Dis~i•ibution of Estate I~uncls to
Plaintiff Consumer Financial Protection Bureau (D.E. 179) ("Distribution Motion"). Udder tl~c
World I,a~~- Jud~n~ent, as scti i~oi~~h above, the Btu-eau was to receive the assets of i)~e receivership
I:or use in a consumer redress program wl~icl~ will address claims of injured consumers of the
~ The Receiver cites to both the page and paragraph numbers in the World La u Judgi~~ent because there appear to be
some inadvertent duplication of relevant parabr~ph nun~be~s.
- 7-115129091.1
Case 1:15-cv-23070-MGC Document 197 Entered on FLSD Docket 06/27/2018 Page 8 of 18
Receivership I~elendall~ts. World I,aw Jt~clgnlent p. 1 h para. 53. Consistent with t1~e World I_,aw
Judgement, tl~e Distribution Motion sought approval to pay all receivership assets io tl~e Bureau,
after payment of a small pi•ioz-ity tax claim and all receivership expenses, i~lclucling Receiver aild
professional fees a~1d costs and other adil~inistrative obligatiolis. "1'he Receiver sou-g}it
permission of the Court to pay the Bureau most of the ligtiiid receivership assets as an interim
distribution in the amou~~t of $8 milliozl pezadi~a~; the final wind up of the receivership by Juz1e 30,
2018, with tl~e Receiver' retaining approxiln~tely $393,000 in the estate for potential receivership
elpezlscs.
Under tihe circumstances of this case, tl~e Receiver did not propose implementing a cl~inzs
allowance and objection process or paying azly claims of px~e-receivership no~1-eonsunlei•
creditors, except for a small tax claim of approximately $2,000 owed to the Internal Revenue
Ses•vicc which leas a priority right to payment Luider 31 U.S.C. 3713. The Cotut branted the
Distribution Motion by Order entered August 7, 2017 (D.~. 182). Thereafter, the Receiver
tL~rned over $8 million to tl~e Bureau who thereafter distributed the funds to cotlswners in a
redress program co~nmcnced in Pebrualy, 2018.
As required by paragraph 72 of the World Law Judgu~ent, concurrently ~~ith the tiling of
this Motioa~. tl~e Receiver ]gas Cled a~1d served on tl~e parties its Pina1 Rep<~rt and final
Aceouiiti~l;, detailing the steps necessary to wind up the receivership estate. "I'l~e final
Accounting attached to i:l~e T'inal Report is aza accoL~iltii7g of the receivership estate's finances a.nd
total assets for- the 1listoi-y of the estate.
The Receiver filed its Fifth Fce Motio~a, oz~ September 27, 2017 (D.~~. 1 ~3). The Tiftl~
Pee Motion detailed the extensive work perfori~led by the Receiver and its professionals dL~ring
the seve~l n~onih period e~lcompassed by tl~e Fift11 Fee Motion. The Court has not yet ruled oi~
the Filth Fee Motion.
-8-1 15129091.1
Case 1:15-cv-23070-MGC Document 197 Entered on FLSD Docket 06/27/2018 Page 9 of 18
Ttie ne,ct section of this Motion will describe acid sun~ma7~ize the aetivitiEs uilclertalce~7 by
ille Receiver a~~d its }~roiessionals since Alrgust 1, 20l 7 and anticipated t~ be ~akeli through tl~e
closing of the estate, which comprise the Final Expense Period. The azi7ount of services rendered
duri~lg the Final Expense Period has been relatively modest, since most of the work had been
completed by the Receives• and its professionals prior to august 1, 2017, a~1d tl~e pr-iticipal reasozl
that the 1°eceivcl•ship estai~e was kept open during this period was because $100,000 was being
held i~1 t:rust in connection with the sale of one of the properties sold by tl~c Receiver. I']1e time
period for lioldi~lg those funds in trust lzas passed, the money has been turned_ over to the
Receiver and is now part of the reeeiveiship estate. Consequently, the fees sought for services
pci•fornlcd by tlae Receiver alid its professionals :Tor• the Final Expense Period arc relatively si11a11.
IL SUMMARY OF THE RECEIVER'S AND R~CEIVTR'S COUNSF,L'S
SERVICES AND ACTIVITIES DURIn~G THE I~'INAL E~PENS~i. PERIOD
A. Robb Evans &Associates LLC
T}~e Receiver seeks payment of the Receiver's fees a»d costs summarized in the Final
Accou»tinb attached to the Final Report, filed concux•i•ently with this Motion, al~d set forth in the
detailed billing i•eeords of the Receiver•, attached to Kane's declaration collectively as Eal~ibit 1.3
Duri~~~ the F final Expense Period, tl~e Receiver leas incur~a~ed fees For the Receiver, its rnen~bers
and staff of $6,198.90 from August 1, 2017 through April 30, 2018, together ~~itli estivaated ~Iees
of ~ 11,118.00 fi~oin May 1, 2018 through closing. The ReceivEr's costs during the Final Expe~~se
Period total $9,409.45 fro3n August 1, 2017 tl~irou~h April 30, 2018, comprised primarily of tax
return preparation i~ees, aild are detailed in the Final Accounti~ld. lstimateci costs fi~oni May 1,
2017 tl~rougl~ closing arc $26,302.31, primarily comprised of expenses f'or tax preparatioa~ in t11e
estimated su~i~ of $20,000.00.
~ ,~s explained in the Caris declaration, the bills have been redacted where appropriate to preserve confidential,
sensitive, strategic, atTorney-client privileged and/or attorney work product information.
- 9-
i ~si2<)a~)i . l
Case 1:15-cv-23070-MGC Document 197 Entered on FLSD Docket 06/27/2018 Page 10 of 18
Much of the work undertaken by the Receiver dtu~ing the I~'ii~al I;Ypense Period was
ad»~inistrative in nature. This included addressing billing issues and processing payables;
updating accounti~~g and. banking inforrrlation aY1d preparing bank i~econciliatio~~s; t~eviewing tax
rehlrns; and opening a new bank account for the receivez:ship est~~te in the name of a Qualified
Seltleinent Fund. Tl1e Receiver also contimled to respond to nuulerous communications li~om
customers of the Receivership Defendants, including telephone calls, e-mails and :Cacsimila
ti°ansnlissions, acid addressed it7quiries from the Bureau.
During the F'ival Expense Period, the Receiver also performed a ntiu~aber of disct•ete t~slcs.
It cooa-dinated the payment of $8 million to the Bureau in August 2017 pursuant to tl~e Cotu~t's
Ordef~ granting the Distz~ibution Motio~a. It addressed issues related to tl~e disposition of perso~~al
property origi»ally abandoned in and recovered from the Jackson coi~dominitun on Birch Road,
in Fort Lauderdale, Florida. The Receiver prepared the financial accounting whieli accompa~lied
the fifth Fee Motiozz. The Receive•, ill conjunction with its counsel, also addressed a request for
the Receives- to testify in a fan7ily law proceeding related to t11e conservatoi~sl~ip of one of the
i~adividual defendznt's parents. `1'he Receiver also monitored the status of the scitlei~lent it
previously entered into with Oi•ion 1i•ustee and payed the Or•iorl Tz~ustee after he obtai~led
Bankruptcy Court appro~~al of the settlement, wllicl~ had been previously approved by this Court
(D.E. 159). "I~he Receiver also assisted its coLu7sel in preparing for the status co~lference set by
this Co~u~t and which was field on February 9, 2018.
Tl~e estimated fees to close the estate for the pez-iod fi-oi~1 May 1, 20] 8 tlu~ough closi~zg
iilclucles the preparatioi7 of the }~inal Accouni~ing which accompanies tl~e Final Repoz~t, as well as
adn~iiaistrative lasl<s required to complete t11e wind up and closing oPthe estate once the Motion
is ~rantied, including responding to inquiries li-oni creditors al~d other interested parties and
wot•lcing in eo~ljunction with Syuar Milner to prepare and ~ilc the necess~ii'y tax retur~ls. /1ll oi~
- 10-i ~siz<~o~i . ~
Case 1:15-cv-23070-MGC Document 197 Entered on FLSD Docket 06/27/2018 Page 11 of 18
the ices incurred during the t~'inal T'xpense Period and tl~e estimated closing lees ai-e ex~ti-emely
reasonable iil li~~ht of tl~e services performed and to be perl~ornled.
I3. Diamond McCarthy
The Receivez~ seeks payment of its former lead counsel's fees ai d costs summai°ized iii
the Ti~1a1 Accounting, and set forth iu the detailed billing records of Diamond McCarthy,
attached collectively as F_,xhibit 1 to the Caris declaration. Dui•iilg the Fir1a1 l~~apense Pe1-iod, the
Receiver i~~curred fees to Diamond McCat~thy of $10,411.65 for the period from August 1, 2017
through November 20, 2017, shortly after Caris moved to Bari7es ~ Thornburg.
While lead counsel during the Final Txpense Period, Diamond McCart~lly prepared tl~e
fifth Fee Motiozi and the declarations filed in support oi'the I~iftl~ Fee Motion. Diauloz~d
McCarthy addressed tlae Ol°ion "Trustee's premaitiire deznaiid for payment fi~orll the Receiver
before obtaining Bankruptcy Court approval of the settlemezlt the Orion Trustee entered into
with the Receiver, and required fLill conlpliancc with the settlement terns before the Receiver
paid the Orion "Trustee. It also analyzed the Orion Trustee's omnibus claims objectioais.
Dian7ond McCarthy communicated with a potential elai~nant in ~tl~e i~eceivei-ship estate. It also
assisted the Receiver in res~~onding to the regtiiest that the Receiver testify in a fami]y law dispute
concerning a conservatorship of one of the defenda~lt's parents.
C. I3a~•nes & Tl~o~•nbui•g
"The Receiver also seeks payme~lt of ids current lead cow~sel's fees ai d costs as
suinmaz~ized in tl~e Final Accounti~lg, and set forth in tl~e detailed billing records of L3arnes &
Tl~ornbur~, attached collectively as Lal~ibit 2 to the Caris declaration. Dining the period from
November~l4, 2017 tl~rougla Ap1~i1 30, 2018, the Receiver incurred fees to Barnes & Tl~oz~nburg
of $2,S l 1.60; wit11 estimated Tees from May 1, 20l 8 tl~rougli closi~ig of $9,000. Costs incurred
by Barnes & Thornbtiug from November 14, 2017 through !\pril 30; 20l 8 total ~1 1.10, and costs
~ isiz~o~i.~
Case 1:15-cv-23070-MGC Document 197 Entered on FLSD Docket 06/27/2018 Page 12 of 18
from May 1; 2018 tlu•ough closing are estimated ai X500.00.
13ariies & Tl~oz~nbui~g leas had ~ mi~limum anzouilt of work to perform si~lce becoming lead
counsel through May 2018. It prepared the necessary paperwork to substitute in as lead counsel
and addressed electronic fili~~g and notice issues in connection with the substitution. It addressed
issues pertaining to $l 00,000 held iz~ t~°ust iii col~i~ection with the sale of one of the rccciveiship
propes•tie;s. Barnes &Thornburg assisted local counsel in preparing for the statLis conference set
by the Court.
The bulk o~f the work being done by T3a7•nes & Thornb~lrg will occur in June 2018. This
~~i~incipally includes the preparation of the Final Report, this Motion aild all paper's filed in
support of this Motion.
ll. Carlton Fields
Finally, the Receiver also seeks payment of its local colulsel's fees and costs,
summarized in the 1~i~7a1 Accounting, acid set forth in tl~e detailed billing records oil Cai~lto~1
Tields, attached collectively as Exhibit 3 tc~ tl~e Caris declaration. During the Final I Ypense
Period, the Receiver incur-red fees to Carltozi Fields of $1 ],300.65 for tl~e period from ALigust 1,
2017 through April 30, 2018, with estimated fees of $2,500 froi11 May 1, 2018 tlu-oubh closing.
Costs inciured by Carltozl Fields from ~ugusi 1, 2017 through April 30, 2018 total $270.62, and
costs from May 1, 2018 t]~rough closing are estimated at $500.00.
Ca~-lion fields Kist assisted Diamond McCa-rthy and then Baines 8c '~(,hornburg in
ensuring that all pleadings filed by the Receiver are in conformance witih the l ocal Rules. Tt
reviewed and prepared for ~fili~ng the Fifth Fee Motio~7. It assisted Barnes & T11oi-nbLirg i~7 its
substitution as lead counsel, a~1d coinn~unicatcd with the CoiirC i~egardi~~g the order app~~ovinb tl~e
substitution and the status of~ Che Fifth Pee Motion.
Carlton I~ielcls also addressed various issues pertaini»g to the disposition ol~perso~~al
- 12-1 15129091.1
Case 1:15-cv-23070-MGC Document 197 Entered on FLSD Docket 06/27/2018 Page 13 of 18
property ~~hich had been. abandoned in the Jackson condominiul~l on F3i1-ch Road. Additionally,
it prepared for and appeared at the status confei~e~lce set by the CoLu•t in February.
It is a~~ticipated that Carltoia Fields will assist in the finalizing and ~~iling of'tl~is Motion,
all papers filed in support of this Motion, and the Fin~1 Report a~~d Pinal Accomlt~ng.
III. THE FL'l~ S ANll COSTS OIL THl? RTC~IVER ANll ITS COUNSEL A17~
R~ASONABL~ AND SHOULD I3~ PAID AS R~QI11S'I'ED
It is a fundamental tenet of receivership law that expenses of administration incurred by
the receiver, includi~lg those of the receiver; his ec~unsel ai d others employed by l~iz~~, constitute
priority expenses for which coil~pensation should be paid from the assets of the receivership. As
explained in tl7e leading treatise Clark on Receivers:
The obligations ai d expenses wl~icl~ the court creates in its adminish~atiot~
of the property at•e ilecessar•ily bilydens o~i the propez-ty taken possession
of, and this, irt•espective of t11e question who may be the ultimate owner,
or• wllo may have the prefet•red lien, oi° who may illvo}ce the receivers)aip.
The appointing coLrrt pledges its good :faith that all duly ati~tlzoa-izcd
obligations incurred during the receivership shall be paid.
2 Clarlc, Ralph ~wizzg, A Ti-etrtzse nn the La1-r crr~ca' Pf~~rclice of Receives°s § 637, p. 1052 (3t~d ed.
Rev. 1992).
The Receiver is ail ofFicer of the Court cllaz~ged wit11 a myriad of duties Linder the Coln~t's
varioLrs orders, including the World Law Judgment. Because of the nature of the administ~~ative
and other services required in receiverships, the bene:Eit a t•eceiver confers oi~ recei~~ership
property cannot be detet~~l~ined based solely on the increase or decrease in tlaE value of property
ire the receiver's possession. As the Court explained in Sec~f-ities ar~d I'xcl~cznge Co»u~zi.ssion v.
Elliott, 953 F. 2d 1560, 1577 (l ltll Cir. 1992):
[I]t is sometimes diF~icult to ascertain what type of bevel-its a receiver has
bestowed on receivership property . . . . . [~ ~ benefit to a securedparty
may tale iliore subtle forms than a bare increase in inoi7etary value. Tven
tl~ougll a receiver may clot have increased, or pi~evei~ted a decrease i~a, t~l~e
- 13-1 15129091 . 1
Case 1:15-cv-23070-MGC Document 197 Entered on FLSD Docket 06/27/2018 Page 14 of 18
value of tl~e collatei•~l, if a receiver reasonably and dilibently discharges
his duties, he is entitled to compensation. [Citations oi»itted.]
Securities ~ancl Exclzange Com»~ission v. Tlliott, 953 F. 2d at l 577.
The CourT. leas broad discretion in determining t11e reasonable~less of fees to be awarded a
receiver. See In i~e Sun Vicente Medical Par~tne~°s Ltcl., 962 F. 2c1 1402, 1409-1410 (9tla Cir.
1992). The Court may evaluate the time and effort expended by the Receiver with res~~ect to
specific projects and aspects of the adaninistiation of the estate, and may look to a number of
different :factors under the case law in approving receiver's and. counsel's fees. ld. at 1409-1410.
The Receiver and its professionals have performe.d variol7s tasks during the Final
F,xpense Period to facilitate the successful ii~~plementation oTthe World L,1w .Tndgment. This
motion esta.blisl~es that the Receiver, its members, staff and p7-ofessionals rendered z•easonable
and necessary services for the receivership estate during the Fii1a1 Expense Period tiaat were
bez7e~cial to the estate. See Fede~•~alI.'~-ctde Co»~n~issior~ v. C'apitcrl Acguisilions & Mcz~zagenaer~t
Cof~p., 2005 U.S. Dist. LI;XIS 18504 (N.I~. lll. August 26, 2005). "I'he Receiver submits the fees
ate extremely reasonable in light of the services rendered, and that the fees and expenses
requested should be awarded izl their e.i~tircty. As set fot•th in tlae Kane declaration in s~~lpporti of
tl~e Motion a.nd the Tinal Aceountin~;, there will still be appz~oxinlately $300,859.44 available for
distribution to t11e Bureau pursuant to tl~e World Law Jtzdgmciit after payment of all fees and
costs sought puz~suant to this Motion, including the payr~lent of Pees and costs sought pu~~suant to
the Fifth Tee Motion, in ~iddition to $8 million already distributed to t11e Bureau.
IV. TII~ CLOSING OI< 1'HT tiS'TATE SHOULD 13Is~ APPROVTD AS
RTQUTSTEll
The Receiver's request to ~~ind up tl~e receivership estate is consistent ti~ith the provisio~~s
ol~tl~e World Law Judgiz~ent. Tl~c Receiver leas prepared a Pinal Report and Final Accoilntiz~g
- 14-1J5129091.1
Case 1:15-cv-23070-MGC Document 197 Entered on FLSD Docket 06/27/2018 Page 15 of 18
and served it on the parties. Notice of this Motio~l and of the Fival Repo~~t a~1d Final Accotulting
have been se~•ved on all non-corisui7~e1~ cz~editors of the a~eceiveiship estate. The related relief
sou~llt in co~li~ection with the wield up o~f the receivership estate created under the World Law
Jtildgmei~t, incluciiug the approval of all actions taken by or ol~ behalf of tlae Receiver, the
destrtiiction of records and discharge oi'the Receive~~, al•e all ordinary and customary in
connection with the wind up of a receivership and within the Court's broad. supervisory authority
over federal equity receiverships. See ~Secuf~itzes and Fxchun~e Coiz7~nis•sion v. Hardy, 803 F.2d
1034 (9th Cir. 1986).
CONCLUSION
Based on the Motion, the supporting declaratiol7s of I3i~icic Kaize and Gary Owen Cai•is,
along with the exhibits attached the~•eto, and the Final Report and Final recounting filed
cozlcurrently IZei~ewith, it is respecifillly requested that the Court grant tl~e Motion in its e~~tirety.
WH~REFORI , tl~e undersigned moves t31is Count to enter an Order ~i•antin~ the relief
requested herein.
CFRTIFICATION OI+ COUNSEL UNDI~R LOCAL RULE 7.1(x)(3)
Counsel for the Receiver hereby certifies that prior to filing this Motio~~, the Receiver
conferred with counsel for the Bureau by telepho~~c o~1 Junc 2S, 2018 in a good faith effort to
address the issues raised in the Motion. Cou»sel for flee Bureau advised counsel for the
Receiver that the I3ur~eau does not ot~ject to the relief sought by the Receiver in the Motion. "I~l1e
Receiver advised Defendants Derin Scott and David Klcin and Relief Dei:~ndant Shannon Scott
about the substance olthe Motion by e-mail on .Itiuie 25, 20] 8 and requested their position on tl~e
Moi:ion, but as of the filing of the Motion received no ~•esponse from them. Othez• parties to tl~e
litigation, including World Law Debt Services, LI,C, World Law Processing, LLC, Family
Capital Invest~~lent & Managen~ient LLC and Bradley Ilaslcins, have all had default jud~m~nts
- ] _5 -]15129091.1
Case 1:15-cv-23070-MGC Document 197 Entered on FLSD Docket 06/27/2018 Page 16 of 18
entered against them.
Respectl-ally submitted,
By: /.s/ Yolcaf~dcz P. Str~aderMerrick L. GrossFlorida Bar No. 716677Yolanda P. Stradei-Florida Bar No. 70212CARLTON FIELDS JORDrN BURT, Y.A.
Miami Towei•100 S.F. 2" i Stz~eet, Suite 4200
Miami, Florida 33131Telephone: (305) 530-0050Pacsinlile: (305) 530-0055-mail: engross@cai•ltonfields.com
powers~carltonfields.coinystrader~cr~carltonfields.comiabay@carltonfields.com
I occcl Counsel. for Receive~~
By: /s/ Gcrry Oti-nen Car•zsVary Owen CabsAppearing Pro Hac ViceCalifoa~nia Bar No. 08891813ARN~S & TH012NBURG LLP2029 Century Park fast, Sure 3Q0
Los Anbeles, CA 90067Telephone: (370) 284-3880Facsimile: (310) 284-3894
E-mail: gcaris(a~btlaw.com
I ec~c~ Coz,rnsel,fo~~ Receiver
- 16-1 15129091 . 1
Case 1:15-cv-23070-MGC Document 197-1 Entered on FLSD Docket 06/27/2018 Page 2 of 72
(J~11'I'1:?C) ~Tn,"l'I~;S 1.11:,"I~I~IC"r C:;t)URT
~SO[.)'Z"1-~.i~,l~~i`~' DI.~~'I'RIC.;'1' (_~F`.[~1,C)Rf.i~A
Case I~I~E~, 15-2:~O70-civ-C;t.?OKI:;I~I'C)lZIZ}~~~~~
CONSLJIVII;R 1~:~'INAI~TC;~I.I-~(., 1'IO':1,1;C:'T'~ON
13UE~1>AC i>
1'lG~intiTf,
v.
OI~I.C~~ ~~I~OC}~;S~II~IC;, .I_,Z_,C, etc., ~t al.,
~7ef~:nd~~t~i~s.
I~~i~CI.~~~~'~'~~~i ~~~+' ~I~~CvI~ ~~~~i~~ ~";~ ~~r~b~'~~~"~' ~~~s' I~~`~I~)~~ ~+~~ ~31~~3~;~~
I4~'['~~~~r~t~df~ ~t I~I~.~, .~~~+;~'~:51$'~" f~id.T.~ ~t 4~7l~I.1 ta~.`~`~~~Ji~'~":~~?v'(:N' ~4~~[~.~I.., ~~~+~~~?.~%„~'.I' ~~C~4~
~I'I'I~C)~,~Cs E~i~13 ~'~~'1~r~.~+,N~"~" ~.~~+ .ICI+.;C;~?~~'~+;~~'4 <r~l°~'~3 I'~b(~t+`l+.",~;~~C31~'~~19~ I~~+.~+; ~ ~S.l~t~)
l~iJ~:.`iA ~.7y AI'Y~~.: ~)IiS~V~7 d. .~.tl.'4.~~.~.A~. .Ei A~e..~1~''.S. 1~R i./~: 6'q~~A ty ~~D .S. ~~ .~,..R .~. A"6.1~t.~4.YgA i.. Y~k.f ~.7A l`i "~J~y d~*i>A"s
d~3.~.74..,dA~ll~~~~. f~1W.i~ &.`~~~i A.itS,9 Af~A~ .F.~3~r1.~~~~a fl{
7, 13ricic Kane, declare:
7 . 7 am t:l~ic President and Chief C)pcf~atix~g ORicer ref Rc~lab Evans ~:, ~ssoci.~~.t~;s L.LC.
fZobb l eans lz a~ssuci.ai.es I,T,C' has l~c.cn ap~~ointed as Receiver (~~T~eceiver>,) o~~er.l~ai~aily C~pi~tal
Investrrient lac M~:~i1a~;emez~t, I1L,C ("1~~C1l~M:"}, a~~ri its si_~eczssni-s, assi~~.~.s, K~fi:ilit~.t~;s,
s1~b5icliari~s, ~nc3 each ot'tlaezn, b~~ ~~~11at~ver nan~c.s eaci~ f.tli~ht be 1<z~l~~~Gr~n, providc~ct that t17e
Receiver h~~s i•etisotl to belie-~~e tl~~Gy ~li~~ owr.c.d or~ coxat~~olle.d iii ~~tirliole or in p~z~t by an,y ref t~11~
I.~e1~e~nciar~ts; ~i.irsuai~t to t.J~~e I~r•eli~Ilinar~y I~ljunctic~n wiTl~ i~s,sei I~~~•e~;zr:, ~~7~,~:>~int~ne;ilt. o~i'Recf;,ivv1°,
Lx~~clitc~d C)iscovery, az~ici Otl~aez- I=?qui_tat>J.e ~elicf°for l~.~c#'cncia~7~ts De,rir~ ;~coYt, Da~,ic3 Kleitl,
Pai~rly Ca~ait~xl Tz~v~;sttr~c~nC ~~ Ivlana~~en~~tit ~LLC~, grid Rcliel'Dcfeild-ant 51iaa7non Scott (]hoc. 4~~)
("I::C:;1~~~~1~ 1~>reli~l~it~ary Irljtulctiorl"j rind World I,a~~,~ Debt ~~rviccs, I,I~~C; ("~~~~L, I:?cbt") ar~d ti~%or1E1
7_,~~r~ ~Processia~i~, I;I_,C ("~~%~I, Yt~i~ce~sirl~"}, r:~ncl their ;~uc~r~ssors, assi~ras, z~f~:iliates., or
Case 1:15-cv-23070-MGC Document 197-1 Entered on FLSD Docket 06/27/2018 Page 3 of 72
SL117S1C~1~1'I~g, aliC~ f;f~Gl~ t~l 11811'1, ~~% LVI')~l[eVGt` Y11111GS L~iC~I 7]ll~a~'ll ~~ ~C.I]U4V11, ~11`0l~'I(~~d f~1~lt C~1C
Reccivur laG~s ~~e~soil to beii~r~~e tl~~y ~~~•e o~~~i~e~ ox= c~~~xCz°c>lie,~ ii1 ~~~iolc oi• irl ~af~t by ar~~~ of the
I:)efznd~z~ts, ~~u~~sz~~rzt to iir~ P~-elimiil~~ry Inju~lcti~7~1 ~~vitli l~sset ~~reere, /~Zj~~oi~~at_ment c~CReceivez->
Isxpcdited T~is~;ovcry, ant:l Qther L,i(i~it.~bl~ ~~clie~.f as to 1~)c:fcnda~ats Orion Pt~~~L.e:~;sinf;, ~C:L,(.'>
I~radlcy .7~~irtGs 1_I~lslciils, ~,~oz•Id I:aw D<dbt Scr~~i~,~s> LI,{ aild 4'dorlcl I.,~w Proc~~;ssin~;, L~,C
entered ~ept~mber~ 2, 201 ~ (I~)o<,. 28) ("~~orlc~ I.a~~ Px~€,liminary Injunction"). If'c~lled upon to
testi:['y ~.is to thL :E~acts set forth in this dct;laratior~, 1 c.oi.11c~ and would testi k~y c~~17.~etex~tl;~ t.(~exeto as
the faeCs arc, true t~~scd on r~~~~ a~r~r~ personal krra~vicdge,
?. ~1'he ~I~~;c:civea~'s ~~~~~oi~1t~7:~ei1t~ has c.o~axim~ecl over the rc.c,civexslli~~ cntieies,
i~~cluctint; over receiv~rs}~ip d~f~,ndarits V4'L llebt, ~~L I'r~~cessinf; and I~'CI~Ivt under the C;ourt's
~1e~i~atzlt judpiz~erit entez~ed t~}~air~ist tl~~n~ qn :iu~,u:,t l; 201 ~ {I~or 104) ("~~orld La-4v Jtrdr,~ll~e~7t").
In addition, on llta~;ust 1, 2O(6, t11e Court ez~tured ~~ stipulated ,j~ri~gmez~t against delend~z~~ts Deri~1
Set~tl ~iia~i 1:7avic~ Klein ai d I~Z.elief~I)~~eaid~nits ~h~~i~_uoz~ Scott put°sl~az~~t to their Sti~~lllated Final
,T~.~dr;z~rient a17d Ord~t~ A~ iz~lst De~f'~ndt~ints D~riil Scott, ]~avi~i Klein acid R~li~;l~Defendant
S1lannoa~ ~>cot~t (l:)ac 10~) ("Individu~~l ~tlpu!ated .I~icl~n~ent"}, pursuant to ~~~hicli v~~•ic>us assets
evert turned over to t11c It~cc;~iver for adz7lirlrstratio~~ and liquidation.
3. I have. b~:ez~ t~rim~zi-ily a~esE~~orasible t~_>r t~l~i~ sLr~ei-vision and a~i~~»i,uistratiori «f th~~
z~ecG:iver~slli~7 est~~te;, iJ~e, }Z~ceiver's re~~ieiv and in~~e;sti~~~uion of~asscts ~~.nd analysis of 1~inai~t,ia1
az~d business records relev;~i7t to t11e r'~;ceivcr5hi~, ztinci th~~ l2c:ceiver's exer~;isc cif its powers at~d
d.~~~ic;s uucier tl~ze'C~~nlpo~'a~~y IZ.estr~inii~~; 0,c1e_r ~lr~d ~l~.e Pi-c;liznir~i~it~y In.ji~a~rtions, I }~iav~ been
in~~olvcd iri the Receivea~'s on~oirtg review and ~3et~ailec~ ai7alysis of die Rucei.vez;ship I~)c;fendants'
fi~~~ancial recoa~ds anc~ of}per blisi7~~:ss records and t~ilcs ~ii7d tl~o~c. of Orio~~ 1'rocc.ssiri~;, L,J C;
("Oriole"); ~~hich is in ~~ Chapter• 7 ligtiiciation b«nl<ruptcy case pending ~,cl~ore the ~3ar~1«~uptcy
C~>u~-t fof~ t~l~ze ~Ues~tern 1~.:}asti•ict of`l,~xas. I was persoi.ally involved i_t~ the pz•e~~a~•~ttion and ~E~viev,~
_ ~_
Case 1:15-cv-23070-MGC Document 197-1 Entered on FLSD Docket 06/27/2018 Page 4 of 72
~>f'the Rc;port of Reccivcr's /letivilies f:or the }'erigd fi~orn ~~ej~te.nit~er 1, 2015 'C7~~~o~i~li ~ept~embc;r
~~, 201 ("~l~~it~st l~Ze}~o,rt") and the R.e;port u:l.' IZ~C~iv~r`s T~i~ar2ci~1 tlnaly5is Sept~;n7ber ~, 2015
T}iror~~hNavenzl~e~~ 30, ?..p1.5 ("`z~eoricl I~e~c~rt"). I z-eviewec~, revised anc~ apprc~v~;d t1~e;
Rc,cei~~er's }~i~lal IZep«r-t, w]Zich is ~Ic°,d coricurrcntl~t hex•e.with. I s~~t~.3erviscd the prc*.p.zt~riCic~rr o:k~tl~e
Fin~~l ~cuo'Lu_lti~~g~~hich is attacl~~ed t« the 1~'iz1~l Deport,
4. !~s reglzir~;el by pt~x~ag~-~ipl~ '72 of the ~~or~id T ava Judgrnet~t; cot~er~trrut'iCt}~ witl~t ~CI1e
Iili»~ of this Motion tl~e R.~ceive~~ i~as i~ile~~ ar~d serve~~ o.n the }~aa~Ci~;s its I~in~il R~.p~~-t ~~nd Final
Accotx~7ti~i~, detailiii~;~ tI~e steps .~7ucessary~ to ~,~ia7d ti~~ t.l1e receivc,rslzip e;sate. 'I~he f~iz~a.(
~1cc~~ur~tin~ ~~ttac}~iecl t<~ the j~~inal Keport is an ~3e~;ou~~tiz~~ o~'the receive~•sl~.ip estate's ~'in~inces tlnd
total assets f~>r Che I~listoxy of trze estate.
5. Tl7u Recci~~e;r filed its fifTl~ f~;~; l~~otion, entitled ?v3c~tzon ft7z` C)1°der ,~ppi~ovial~ and
Authorizing J'a~~zzleilt of~ I'c'es and 1 xpet~ es of the ~Zucei~r~r a11d Its I'ro.f~ssicmals l~'rom Januaxy
1, 2017'lhrough.lul~~ 31, 20I~7 ("riftl~ I~ee Mono»") {I~oc.. l83) on September ~%, 2.017. "I'he;
1~~~i~E'tl~ Pee ~,~lation detailed t}~e extensive Ivor°1< peri'oz-nacci by dze .T~ecei~rer ,znd its profe~sio~zals
dtzriri~; ~tl~e seven monil~ pez~iod c;ncot~np~ssed by the l~ ~ i:tl~ 1~e;e IVIotic~ri. '~I'l~e C;ou~-t I~as not yet
ruled ox~ the Tit~}~ (~~~e I~~1«tion. "]~~lie k~w~(~ince o~1~tl~is d~;clal~ation ~-vill desc~ribc a~ici :~t.~~nrr~ari G the
tictivities undert~alcrll t~}- i~l~ie Re~;civer si~~acc l~u~u.;t 1, 20l 7 anal antib;i~at~~~~ to be tal<ezi tl~~~ough
tli~ closiiar~ of tl~e est~it~;, w•,hiah cc~n~i7ri~,e the l~i ~ilal L;~~}>ensc Period. 'l~hc azi~otint of sF~,~•vi~;es
a~~nd~z~e:~! duri~~g tk~e Dina-1 l~x~ense 1'eri~~c( kaas ~ee~.7 ~~el<~~tively n7r~desi, si~~ce n7ost o~f'Yhe r~,~or•k llati
been cors~~~le;i~ci by the I.r„ceiv~;r anci its professionals ~~rio~~ do l~u~ust 1, 201 "7. '~I'hc ~:~rinci}3~I
re~sc~t~ tY~~t the rec~iversl~ii~~ est~~te ~~~as Iccpt open during; this ~ez~i~d «gas b~;causc of ,$100,000
held in trust by the IZeceivez~'s c<7uns~1 in cc~llnLutiozz with t}~e sale oi' one of the p~~o}~G;~~t~e5 soIcl
by t~h~. IZecei~ver. "~I.~l~e tine perrod ~f'~~r holding those in f`L~nds i~1 trust has passed ~r~~l Che m.o.ney
has (~ec~l tucnc~i o~~e~r tc~ t}~rc I'~ea~ivcr ~~i~d is i1o~W ~~rt o#~ the z~ece;ivea~~[~ip estate. C;oi~bec~ucntJy,
_ S ..
Case 1:15-cv-23070-MGC Document 197-1 Entered on FLSD Docket 06/27/2018 Page 5 of 72
the fce;s so~i~~trt far sci-vices perf`orxzlect try the Receiver an~~ its }~rofes>ionals i`oa~ tl~e (~~in~l
l:;xpense .~'eriod are rel~itivcly sr1~3i1.
6. Thy Receiver see.lcs p~iyn~ent o:F t11.e R.ec~;iver's f~ces anti e,osts sun~rtiarired in t1~ie
1-~ii~al I~ccc~~.iz~tizsg ~~ttach~d to C~l~le Final IZt;port, filed oo»curre.i.~tly ~vit-]7 thib tvlt~ti~n, and s~f fo~~th
ir7 the detailed billing records ~~f~thc; Re~;c,iv~;~~, ~iita~~heci ~ollectivcly hereto as Exhil~ii 1, t~s
~xpl~~i~~ted iu th~~ ac~;or7~~7ai~yir~g decl~ratio~~ of Gamy (Jwen C:aris, the bi11~ il~~vc t~c.ei~ r~ed~~cted
where tippro~~riate to ~a~eserr~e coif-~dentit~l, sci~sitiv~;, strategic, attorn~:~y-Acliex~t p~`ivilc~ed and/or
attorney work pr~~duct inf~z~li~i~Yioi1. During; the }air~~~i] 1~?xpense Pe~~io~i, tl~ie 1Le;ceiver 17as incurred
fee;; for t~l~e t~eceiver, its ~n~tnbers ~u~~d stsxff a[~ X6,19894 fi-ozn .~~t~~;ust 1, 201 "7 throrl~;h April 30,
201 ~, together ti~.ith e5tinlated .fees of ~ I l;~ 1~.0O _fi-ox~~ .i~!~t~y 1, 20].8 through closing, `I'h~
Receiver's costs durii~ig the Final Expense Period t~>t~~l X9,4O9.45 ~i~om August 1, 2011 thi•ougl~
April 30, 2018, anci ire detailed ia7 tl~~e Ti~~al ~a~;ountiz~~. ~/I.osY: oE~i~his amount, ~~),143,5b, w~~s
'for tax return preparation se~•vices. EstimaCed. costs ~i~on~~ May 1, 201'7 tlirou~;h closing ~~U
$26,307_.31, ~~rirriarily com~~risec3 of the <.~ccou~it~lnt expenses Ior t~~ prepar~ti~~~ in T]~i~ estini~ated
sung of $?0,000.00.
7, Mt~~h oi~tl~c wo~~lc undertal<21~ 1>y the RcL~ivcr clti'irin~ t~l~~ .l~~in.aI .1~:?x~7cz~sc Period
~v~ls ~tdministr~~tive in nature. "I'l~is included ~~ddressin~ Filling issues and proccssinf; payahles;
t~~~cl~zlir~~; ~ccountiza ; 4ir~~i b~~ntcin~; i»forialati~i~ ~z1ci ~re~~ar~irig bank r~;co»cilaa~iio~7s; ~~4vie~vic~g lax
reCurns; azac( operfing a l~u~~v b~~n}< <~c;<;out~t ~C<~r the r~ceivcrship G~st~tC~; in 1hL n~.rri~ of a C;>ualified
Settleine~at .Fund-. "]~'l~e 1~~_e~~~iv~r ~t1F~o co~ltir~u~d ~o rc.~;~~~7i7ci t'o nizi~rz~,rous ct~r~7i~~u~~iic:atioia~ 1i~ozT1
eust~mers of the Itceciver~~hip lleCend~~ni:s, i~~cl'~.adin~; ticl~;phor.e cs,~lls, c-mails az~d .(1~~similc
tl°ai~srraissi~>ns, and address~.cl inquiries fi-o~n the Constinaef~ Financial I'rc~tcetion T3uz~eau
("~E3ureau").
_ 4 ..
Case 1:15-cv-23070-MGC Document 197-1 Entered on FLSD Docket 06/27/2018 Page 6 of 72
8. TJt.irin~ tl~le l'iz~~~il l:;xl,~erlse P~~rio~, the: ~1~Z~~u~:iv~r also ~~~;r~<ia~ia~ed a rzua~lbcr of
di~cr~;i:~ CasJ<s. It coc~rdii~~~t~:cl the ~~ayrrae~~t o:f':~;8 rniliiozl to the. I3ur~au n~ Augl~sf 2017 ~:rtra~suant
t~~ the C'ourt's Oc°dez• ~rant~il~~ the Reeezver's motion to ~~ake a~1 int~rirn distri.l~utior~ oI`funds. It
addressed iss~.les rel~it~;~f to C}~~ clispositiol~ t~f p~,z•so~at~l a~ropc,rty ori~inall.y z•ec~>ver~.d 1~•on~ tree
,i~lekso~7 cc>ild~ir~it7it~E~~ on F3irc1~1 Road, in I~orl: La~rdet~dale, Fl«x~i~{tt. 'I'h~ Receiver ~~rcp~lrec~ t11e
#irzaricial accou~~.iix~~~; wi~i.~;}~ ac.c~~>rnl~~ulied tllc Fift11 Tt;e Vlotio~~. '1~.iae :CZcreivci~, i41 c~>njGlr~ctio~a
with its cour~s~;l, also ac~dressecf a rec~i.icst for tti~ Itecei.ver to ~c~tify ire a- faxxai.ly 1~:~~,~~ procecdiilt;
related to tl~e consez-vat~~~:~hip of one ~~f the irlclivicival delezad~iat's parents, 'I'iae I~.eceivcr ~ilso
in~nitvred the status r,~~P t11e setticincr~t with Orion 1'~~ocessiz~~;, I,I.,C's Cl~a}~t~.r~ 7 b~~ala~upi:c},
trust~~:e ("C)rion Trustee") and. p<~yed the Orion "['ri~lstee after he oblain~ci 1~.3~nlcrur~~c~~ Court
approval ~~f lrxe se~tle~a~ent bet~~~eeti tl~ae Receiver aYlc~ l}le Orion [."rustc;e, which l~~ic1 been
~~reviously apl~r~ov4:c1 vy t}~is Cotufi (T:)c~u. lit)), T]Zc Receiver also ~ssi_:;tcd ids cotuls~;1 i>>
pi•cparinf7 fo~~ the st~lt.l.is c;onic;rence set by this Court end which was hc;ld c>n I~e;bi~uar~- 9, 201 £i,
9. '~l lie estirr~~le to close i.'~7x tlae ~~~~riocl I'ro1i~ May 1, 2,018 th~~olrr ri closing iriel~ides
Thy; ~~rc.pas~atioi~ of thy; Final llc;co~.int.i~lg which accor~ipanies the ~'in.xl iZeporC, as ~ve11 its
adnainista~al~i~~c taslt_s rccluired t~o complete the ~ti~in~3 up end closing cif the estate once the .Motion
is ~~~~~nted, iacluclii~~; res~~c>ndia~~;~ to inquiries from creditors and other interested parties and
workiri~ itl cor~jl~nc~Cior1 1~vith tbi ac~;ol,~zzt<t~1cy ~rr~1 o~i ~guai• I~~Iili~er to pz~F,p~tre grid I"il~; the
nec~:ssat-y Cox retlirlls. All of Yhc fees iricu~-red duriz~x~ the Final E'r._~~~;i~se Period ~.md the estit7~~~ed
closi~~~ f~cs Sri ex~i~e>»~;ly reasonable in light o~('the se~rvi~;es per~orn~ecl ~~nd to be performccl.
l U. "I'h<: billiri~, z~at~y ehar~ed by the R~cciver in this ~;ase~ t~c~:fl~cted iri tl~~. billing
r~cor~is filed i~~ 5u~~;~r+,_ o~'~he I~~Iotiol~ for tt~~e ~I~cceiver, tllc Rec~i~~~er~s i~~zen~l.~t,rs and s~Pzio~
accoL~utit7~ staff ,.lz~e discounted pit 10°/u ~z-oz~~ tV~e z'ltes cl~Zr~ ~d t~~y the .R.cceivez~'s Cia~an in }:~rivatc
sector• cases as r,~i~,l~~~, tii~~i€; of tl~e ~Zeceivei•'s ~~~~a~o~inc~t7~;nt ire 2015. "I'iae I~ec~i~;ei' rocs r~crt. raise;
_ ~..
Case 1:15-cv-23070-MGC Document 197-1 Entered on FLSD Docket 06/27/2018 Page 7 of 72
the rat~;s charged i'or the K~;c.eiver and its senior. elnd accout7tiza~ staff dt.irin~ the ~°cceivership
~;~~~~.
1 1 . ~1.s ~ in~rnl~er cif Robb l~va~~s ~; Associat.es I~I..,~;, I any far~~iliar with i~he methods
and procedures used by the l2.eceiver and its staff and emplov~~;es to record tl~e t'irne s~~~i1t
rci7derii~g s~rr~~ices to rece:ivers~azp cst7tes aver ~~~l~ich Rot~b ~;vaixs aild Robb ~~~~~i~s ,S'L flssociates
T~~_C have been a~~pc~inte;ct. 'i~hc ~•ec;<>t~ds collectively attached l~~reto as Exllibi~ 1 arc rc;~ul~r(y
pre}~ar•ed ley the; 177ernbers, staff and cYnployees oi'the ~2eceiver at oi• about tl~e time of tl~c
services reridcred ai~el each of wlioiz~ laas a business duty to accurat~cly r~cc~rd tl~e inf~~rrzzation
regarding tl~cir servicc;s set i~~rth lr~ these records. "I'lze rccorcls are z•eviewLc~ by Che Recc:ivcr's
accoi~l7ting sta9~f «~~d summarized in tine Receiver's F~in~tl t~ccoiizifin~, att~cl~ecl to the i2.eceiver's
final Rc~~ort. F3~s~d upon nay cxperiea~ce with Robt~ Evans &Associates LI.,C, I believe the
I~ecei~~er's r~~ethc~ds and procedur~,s for recording; and accounting; i'or tirale ai d sez~vice~ for tl~e
receivership estate's over Fvhicil ]2obb Lvans and Rabb Evans f~i; A.ssoeiaees C.,I.,C have been
<Zp~~oint~d are r<~liable; and accut•atr;.
I r_4cclare under pe,l~a.lty v1' ~~eijury t1~aC the £ui~egoin~ is ti•l~e and cor~'ecC dzxd t}~at this
declaraticm was Gxecutecl tl~is~~~day of June ~O1 ~ ~~t dun Valley, Califol~ni~z.
.. -- - .~~ ~~4 ~ ~-~~~ 4.;
-- r _...... _ _ __ __}3 TUCK I~1N ~;
-6-
Case 1:15-cv-23070-MGC Document 197-2 Entered on FLSD Docket 06/27/2018 Page 2 of 68
~CJ).~]1,f`I~;l~) ~,'1'A'I'1:?~ DI;~T1~iC_;"l` CC)D[~.~.['
SOU"I~'1-IE1ZN 7:)15'~I':~~ICT OT~ F~T_.,O1~ID,~
Case Nc~. 15-23(~7f)~~~iv-f_OC71~<1~~/~['OR32_t ~
C.;tJN;~C_It~~il?lZ 1~1NANC;I.hI, t'I~U"l'} t;"LION
13C1IZ l~,r~ t ,
I'lainti f('.
v.
OI~I<?N PR~C,I~i:~1N<J, Is1.,C, e;tc., et al.,
L~~~~cndailts.
~~,~~~,.~}a~,~~~~~~i~ ~~t ~~~~~~~Y ~~~%~?,t~ ~~f~~~ era ~~;~3r~~~a~r~~ ~~~<Y r~~~~~,ac~r~~ ~~~~y~~~~~~i~~Yl+Il~dr~l:.~ 2~~t~~'(:~k~'~' ~1``~~) I{~~~'~~~~_, ~~;~;~.~~JI~'`1'.~i~1~9 1+I:~;~~, ~~L+"~~~):G+~~~' ~{CI~~ ~s.~~i~~tC~~I~I..
l~al°v'I~ Z'E$~Pb~~.~i°'iT' ~~~ .~~;~I~I`~''~+'].Z'~i !Rb?`~'1) ['~~~~~',;s~I~.}~I'~~L.',~i ~' ~~,~~.~ r'~.l~di~ C."~~~rS'~
A ~~~d.J~19.9d1"70.F ~.W. &. cl.9 ~A`~ .l'A`.~~IWA L-3, iJ 2]'~i,~17~~ /.~ 9 .G F~.i / k..L~A~~~C.I ~F ~k ~..4.J~~;Y &l i`~ky 1'~L~
1. I ~~zz~ an at~lorney at~ law' dLzly acin~ittec~ to p~~actice b~fi~re tJie colu~i:s oC~the ~tat~e o1~
C;~i!i.i'ori~isl ai~c€ h~.tve l~eezi adtllit-ted to practice~~r~o huc vice t7efore tl~iis C.;o~.~rt i~~~ this matter, 7
have; beefy a partc~er ira tl~~ firm o:t Bar»e5 & "Thc>r~;biir~; I.T,I~ ("~E~ar»es &'l~horr~bur~;") since
Nc,vernb~;r 13, 201'7 ~ncl bel~or~ that, t was a ~~artiac;r irz t~~e ~_iz~~~i ~>f Di~~lrz~ond Mc,C~rthy LLP
(".I~i~zrllo~nd McC;a~~~hy~~). While; at I~iaznoYac~ McC~~rtl'~~~ and no~v at T3at~nes ~~C "['l~t>t-zabL~r~, 1 have
t~ec~ Iead coullscl 1oz~ hobo I_;varis f~ Asso~i~it.es LI_,(.; ~zs R~.c.err~c.r ("I~.ect~.i~~Lr"} ovci~ Tarn~ily
C:a~~ita1 ~Inv~;st~neist ~~C Ivlana c~ia~,nt, LLt~', ;i~~d its successo~~,; ~~s_Si~r1s, af~l~ili~t~.es, ter subsicliai~ies,
at~d eacl~i of tl~cm, by ~~l~at~ever .taarrac:s ~ac1~. itli~,ht be k~~i~wt~~; ~>r~>~~ideci tl~a~t il~e I~Zec~iver has
reasozl to l~eli~ve they az~e owrzed or cori'(rollcd in whole or i11 pant by airy ~~i' [iae I7eI:~;z~i~3ants, ~~ncl
\~oi~lcj L,a~h~ Debt Service, I.~.1.~C' ~sic~ Worl~~l I,a~~ Prc>cessir~~p,; r,I_,C, ~r~ci tl~eiz• su~~ccssc~rs, assigns,
a~17lliates, ox~ subsidiaries, and cacl~ of the.7ii, by wl~atev<;r Haines ~acl~ ini~ ht he lcr~c~~~,~~a, provided
that the Kecciver~ nos re~lso~1 to believe they ~~re o~.viaed or ~;~>~~trollect ire ~~~h~~le oi• iri ~~ai•t 1~~~~ alay of
Case 1:15-cv-23070-MGC Document 197-2 Entered on FLSD Docket 06/27/2018 Page 3 of 68
the 1)e.:ketld~~its. ~ sti~bstitutto~.~ ofcnla~as~;1 ~~,~t~s ~lileci o« i~'~~v~,inl7ei~ 21, ?01.7 (!'_)o~,. 1~i8) ~~~aci t~
C.;t.>>.rrt C~z•del~ ap}~roviY7~ ll~ae substitution ~va~ cilter~cl are r~ece~nber 2t3, 201"7 (C~~oc. 7 g9), :i have
~>et;~~~z~aal lcrio~~~led~;e ~~f it~le ri~~~llers sc:f 1~ortli in this d~,~l~X•,~ltion, arzd i{~ I ~t✓c;~•e c~~~11ed up<~n to testify
~~s to these rnatt~;rs, l_ c<~i.~lcl ar~d ~~ould coi~~petei~tl}r testify 1~~~sec~ upon nay ~ez:~or~a1 lcz7owi~tl~~.
2. I l~~.a~~e l~ec;ii tlZe pr.izxz~lry ~1t~~z•~~cy t~e~ruserititz~; t71~ I~ec~~ei~,~~r since t~l~ie z~eeL.ivel~ship
c~'~n1~~~c~nt;ucl can ~uptetnber 1, COI S, ~~he~t~ tl~e Cot~ri~ e:nt~~r~~~~i ~~~~ oz~cier t.~pproviu~; the St.ilaulate~
}~xtensi~~n o~l'tlle Tc,r~n~~c>ra7•y Resti•ainin~ O~•de~~~ for I9e~1'ez~daz~its ~C)~;r~iri ~coCt, Datiic~ l~lein, Family
(~;a}~iEal I.n~restn~ent ~, M~na~r~zl~ent, ~,LC (< I~~CIA~~1") azad Re.liei'll~fencl~nt ~Caannoi~ Scott
(l~.~oc. 27) ("I~~C[f1M. ~1~'1~C7") pursuant do wl~iit;17 1-lie Rei;eiver vas appointed ~s "1'eal~a~aorGu'Y
Il.eceivea~ for 1~t:~I~~.NS. '.C'he 1Zeceiver ,vas stil~sec~uentl~~ zilade peri7~~~ricnf re.euiver pursu~zat to thy;
I~ecaivei~'s app~>i~ltzr~ents under t4~~. 5~.ptcinber 2, ?015 ]?reli.~~~iil~ry I.lzjui~etiozl ~vitEl /asset: I~'z~ee~e,
~pl~oiiltpncnt of~ Receiver, I~xpedite~f I:}iscovery, a~ad Othc;7~ I:?c~~litablc R~;lie~ ~~s i~o l~:~eferldants
C)z~iori I'rc~c~ssin~, ~I.,I:.,C;, 13z~~dlcy :(2n1e~ I~~Ias]<ins, World L,aw I)ef~t S~;z-vicc~s, LL,~ an~3 Worlr.i I~~~x~~~
Yr~ocessiit~;; LLC; ~;nter~d ~eC~te~Y~ber '?, 201 S (I)oc. 28) ("World Law ~'z~elimi~l.~n~y~ Injunction'..),
ar~ci tkie Se~~ter~nbei• 14, 2.015 Pre;lin~i»ary Ct7jtijlctio~a tiv,it}i ltssGl Facie, ~~p~~c~i~ltrn~nt ~>1~R~;ceir~er,
expedited Discovery, amid Othe.i• ~,quitat~.le Relie~Ffor L~c~f= rldailts Deri~~ Scott, David Kleii~i,
l~a~~~~ily C~~~:l}>ital ~InvGstii3ent c~ Ntarfa~E,z~ncnt ~i,I,C; and ]belief Dete~aclant Shar~z7~~~~ ~eott (Dc~c;. ~2)
(".T'C;I~~1~/i I'~~elii~~itlart•y Irijianciion").
3. ~.(~~l~e l.:eceivea~ seeks paymeizt oY its i'orzl~i~r lca~~ c~~l>>>sei's fees and c~~>sts
slala~i~~.~~z~ized in The final .~ccnu~~tinc7 aTt~chc,cl to t17c, f~~ii~<~1 Rcprn•l~, filc~cl r;cinciarreaitiy l~~;reu~ith
grid detailed ire tl~a~, liillin~ records cif' 1-)ialrioi7d 1l~cCa~~thy, ~xttac~lled collert.i~vely 1~eret~o as r?xhibil
1. I)u~•in~ t11e I~ir~al Txpense S'cri~~~d, the Rec~;iver ir~curi~ed f~.;~s to l~i~~motad A-'[c;C;a~~t}~z~~ ~f
$10,11 1.65 tt~r tl~c ~~criod fi°om August 1, ~O1"i tllro~-i~l~ 7~Iovc:n~ib~r 20, 2017.
4. A%4~11i1~~ le~~cl cc~~insel citic~in~ the l~'irnl ~x~~cnse P~~:i<~d, T.~i~unozzd McC'artl~y,
L
Case 1:15-cv-23070-MGC Document 197-2 Entered on FLSD Docket 06/27/2018 Page 4 of 68
pre~~ared the l~~iftIi l ee ~Vfot.ioll gild t'he clecl~aratioris filed ire su~p~~rt o~l'the. '}~~i.ft~~ E~er 1,vlotinr7.
Di~a~nor7d ~~~cC;actl~iy aclda°essec~ t11~ pr~in~ture dezxiai~c~ for• pa~ri11e~1t o» tl7e ~CZcc;ei~~er by t17e
C;haptez~ 1 t~~~ri]<ruptcy tr~istee c}~1; Orion I'r«c~:ssinf„ .LI,C ("Oa~it>r~ "I'~-uslee") E~etbr~; ~it~>tai~ritx~
F~~~nkru~7tcy C~~urt ~1~~}~r°oval of the s~,ttle.m~;z~t between tl~c Oric~al Trlrs~tec end the IZec~;iver, a~~d
regizircc~ Rill corn~~li~~nc~c ~-vitt~ tl~~c settl~r7icx7t tc=rrns b~.l~ore the ~~ccciv~~r Maid tl~e C)i•ron Trustee. I.ti
also analyzed t11~ Orion Truslec's oal~ii~i~,us cl~ilr~s ob;ectiens. Dia~~~.~7t~d McCarthy
eo7~iiriunicated ~n~ith a pt>tential claimant in tkre recei~~ersl~ir~ e~;;tate. ik also ~tssiwtcd the; Receiver
iil l~espc~n~irzg to the rer~~uesY that tb.~, 1'~Zec~ive~r testify in a f~i~~ily 1~~~~~ dis~:~r~i~c conc~er~li~i~ ~z
cons~;~•v~.itt~~-sl~ip of one of the ciefer~clt~~at's pat~erlts.
S. "~I:'lic Receiver also seeks p~ymcnt of its; currcrit lead counsel's fees ~u1d costs as
surzlmarized in tl~e Fii~a1 ~ceolmti~~b, ar~d sei foi•Ch ii1 the detailed billing records ~~f I3ar~~es c~
'l~h~l•nt~ut~g, aCt~chcd coll~ctivcly I7et•~,~o a~ l:lxhibit 2. Durir~~ tie }~~~r~iocl frc~n~ Novernbcr I4,
20]7 tl~t<>ugt~ ~~pril 30, 2018, tYie Receiver inct.~rz~ec~ fees to F~ar7~i~s ~~ "l~hornbtu~~y 01~~2,~ll.60,
with estimated fe~:s from May 1, 2C?18 throubh closing, cif X9,000, Costs irreu~•z~ecl by .1.3xr•nes &
"rhori~l:>ur~ ~Erorn 7~overribcr 14, 2017 throu~l~ April 30, 20l 8 total ~ 1 1.1~, axed costs frotr~ May I,
?018 tt~x-o~i~}~ ctosi~l~ a~~e estimated at ~ L,000.(}{},
6. ~3arri~s ~~ 'S'hoX~zzbur~ has ).aad a n~~inii~~~irr~i ~ii~ouiit of ~vorl< to p~rfoi~.m since
bt;conlin~r lead cotir~scl thro~~~l~ May ZO 1 f3. Ii pi~ep~~rc~cl t11e nGcess~.ry p4~~~cr~~~oi~k to sti.~~stitute izr
as lead couriscl end acldress~~cl cl~:Gtroi~ic filing, azid nonce issues i~1 cot~z~iectior~. with ille
.~ul~~tit~ati~n. It addressed i,s>L,es }~crtaiilin~; to ,`n ] 00, 00 l~cld in tr~,lst in cor_necti~~r~ ~~itl~i ~t11c sale,
of ~~ue of'the i~eceivc°rship properties. ~3arn~:s ~~, "I,l~iornt~ur~ also ~lssis~ted local c<7tznsel in
pr~;pai~inb {~r tl~e status core{'erencc se.; by tl~c~ Coi.~l~t.
7. The bulk of tlTe w~?7~1c being d<i~~ l7y l~aX~iz~~s ~~~ ~l~hornl~urg will ocei~r irl June X018.
"T~~his }~i'i»cip~ll}~ inrlucie;s the prep~~ration o(~tlie ~~ir~~~-1 R.~;poa•t, the tivind up Motion, ~~~hich dl~s
Case 1:15-cv-23070-MGC Document 197-2 Entered on FLSD Docket 06/27/2018 Page 5 of 68
ciec;larati~~n s~a}~port~;, ~~rld ,~I1 ~~ap~;rs fi1Gd i~~ suppoz~t oft-he~ Motion.
8, I~~inally, the R~c;~ir~er also seeks p~ymc~nt oI'its loc~.l couz~isel's f.'~es ai~cl costs,
sunit~~ariz~;d .in the 1'in~~l Accoi.~nli~r~6, ~znd sit: f~ortl~ izl the c~~;f~~i_lecl billii~t~ z~ecords E~f t~'~lrlio~l
~I~ielr.{s, attached et>liec~liv~;ly fiep~eto ~s L;xNiibit 3. Dut~ir~.f; tl~e I~irial l;x~~ense Pcz~i~>4~, T1~e R~;ceiver
iiicuri~~~~ fees to ~;arlton ~~ielc(s o1~,`~I I,30U.F5 l~~r t11~ pe~~iod ~~~oi1~1 ~ll~ust 1, 2U I 1 t~klz~ou~;h ApAil
30, 20l ~, wii:h cstirll~~~~ed fees af'$~;500 from may Z, 20I ~ throu~?h closi:~~. Costs incua•~~ed by
Caz•Itc>n Fields fi•o~11 Au~~u~C ], 201'7 tllrou~}~ l~pril. 30, 2018 total ~2"l0,62, and costs ii~o~l~t May 7,
2O] S ilu~o~l~h closiia~ ate ~st:ii~lated at ~5OO.C)0,
9. C:ar3i:on F~'ie.ids cc~r~zt,inued t~~ assist L~iainond .ivlc;Carfhy and I~arrie~ c~ '1~l~iornt~ur~~; iz~
esis~.ai•i~~f; tl~~aY all ~leaclin~s l~:ticd by the 1Z.eceiv~r a~~e iz~ conf<ar~7~ailc;e cciil~~ tl7e T_,oeal Mules, It
t•evie~~-ed az~d }'~re~~~~i°ed f~oi• tiliil~~ (he. I'i:l:'t1~ .1~e~; Mot'.i_o~a. .it assisted I~arne5 t~ Tl~ornbl~r~ izi ils
substitut'ioz7 as lead cot~n~el, and cornmtinic~tecl «~itl~ t:he Cou1•t re~~:c~i.ng file order a~aprov~it~g t}ic~
substitution anci the status of the T'ii'th I'ee ivlotion.
I O. Carlton .l~ietds also a~lclresst,~1 various issues }~ertairiinc7 ~to the. disposition of
pe-rs~~n~l pz-c~~~;a~ty wl~~icl~~ l,~ad beeza abandoned iri tl~l~ .i~ac,ksor~ cc~ridotnit~ii.a~~1 on Birch Load-,
Additirnlally, it prepa~~ed :I'or ~z~~c~ ap~~~az'ed at the st~itus c;onfei~enc~; set by file Cou~~t iri r'e~bruar.•y.
] 1 . It is ;zntici}~ated that C'ai lto~l fields ~~~ill assist: iri the finrxliz,ing a~~ad riling of t1~is
Matio~~, all pa~~crs file in support of this Motion, end the l~'i~7~~1 1~t.c:p~~rC ~aad. Final accounting.
1?. The r~~~~es that have been ch~~r~ec~ U}- [:)i~mo~ad N[e,Cai~tl~iy and 13az~ne~ c~ "f'17o,rnbur~
f'oz~ its attor~n~:ys ~n<i J~~araie.f ails in this it~iatter 1~~~>~ve bean cii~coi~~~te~i ley I.04/u i=rotas tl~i~ stari~lard
I~c~i~~rly billing raies charged by 1:11e attorneys billing se~~vicc;s b~~sG~ oil their rat:cs tivheil dais case
corxa~ncilc~;cl. in 7015.
1 :3. ~1s ~~ pai~iner of~l3~ix~iles ~L~ '[~I~ox~nbial-~ ~ar~cl ~Por~1l~;rly~ a part~aea~ ~zt ~l~~iatn~?n~i
McE;~~~~tl~v, I a~.~~ f~unili~r- with t11r: t~nG~l~ods and ~~roee~iizres t~sccf to create;, re~orcl acid zn~ir~~t~~it~i
_ ~~
Case 1:15-cv-23070-MGC Document 197-2 Entered on FLSD Docket 06/27/2018 Page 6 of 68
laillir~~; rucol~~:ls ~~~~f~ the clients of ih~>5e firms, 'I'11e billi~~~; sumn~~~~rics ~~tt:aehc.~[ 17~reto ~~s Exl~ibifs 1
and ?., ar•e ~~z~epf~re.E.l f'ran~ coi~~~~uterized tine .recorc3,a ~re~,aruc3 c~~rltt.xl~pox~az~~ously ~~itll tllr,
services r~,iadered by each attorne}r and parale.~;~il t~iflin~; dine to ila~: i~~~tt~r. '~l~'l~ese comput~;l-ized
records aee; ~~r~~7ar~~1 in thy; ordix~~iz~y c~>tu~se c,f busii~css by ~l~e ~~tTc~rtaey5 ar~cl j~~iraAe~al;; uznployec3.
by tl~e ~Ei~•~~n,:, ~~~rao have a business duty io accurately record tl~,eir tirnEa s~ei~t ~r~d se~~vices rendered
o~i tl~~e rraatters «1a wl~icl~ tl~e.y peri~~rrn wt~rk. "1']Ze ti~~~L rc;cords a~~e traz~_s.i'er~~ed into coi~lpt~terized
billiz~z~ pro~ra.ills t~ll~it ~ez~~erate 17~io7~thly invoices ur~t~iex- thy, supe;rvisiot~ oaf tl~zc acc;ountii~~;
dep,~.ctzx~~nls c~rthc firm. ~3a,sed upon my exl~ericnce while at ].)ian~~c~nd il~IuCai~tl~y~ and no~~ witI7
I~arrie~s ~; "I`11c>r-~~blarg, ~I betic;ti~e t1~ie n1~~th~ds ~nci procedurer., fi r re~;ordint; and accounti~l~; :fog•
tii7ie ,u~d services for the c~lielats of t}zos~ t~ir~x~;~ arc i~eli~ble and a~,~uraCt~. I undc;rsta»cl Carlton
Fields ~mplo5~:; sirtiilar methods ur~d pr~>~edua~es i~1 gener~t~i3~~~; its t~~illii~g r<;corc~s.
1 ~6. 1 h~~.ve- z~~orc ti11an 3$ years' e:~~crie:~lce ~:~~ ~~ husir7css grid coi37i~r~~rci~l litigator ail~l
also lave ~:x~~P_7si~~e e~xp~;riencc as ~~ bankrr.~ptcy at~tx~rncy re~rresentizl~; creditors i~~ Chzptet~ 11 and
G11a~~ter 7 btiinla•u~~tcy c<~scs. I~~r rno~-~, tliaz~ eighteen }~~~ars I h,~ve also spE;cializecf izi rt~~pi~csc~~ifiri~
~°eceivers in ~~ed~ral Equity r~;ceiversllips. 1 l:~elievc Che rates azad the Gunolailts intauri-ed by thu
Deceiver t<~ 1~~7ia7~nor7d VIcCartl7y, Barnes & "L'}~~urribG~z~~, and C'~z~lt~on Fields i'Ui- t'11e :services
re~i~d~r~d cl~urin~; the period cor~eri:ci by the ~-lotio~~. ~~~~e ~-eas~>nG~l~le ai7d app7~o~~7~~xatc teased on Che
nature of il~~e service;, r~»d~,rcd, t-he c~ualit~t ~znd amo~int of se~~~~ices p~~ovide~~, the cc~til7,~Ic>cit~~ t~f
the issues i~lvolvcd an<.fi c~ll~ier P~~ict~of~s under tlic. cir~cun~stances.
l declare; u~1d~r pcn~ilt~~ of pe:rjtizry tilai t~ltie foregt~it~~; i5 k7~u~. ~~nc~ ct~rr~:,~~t ar~c1 that ibis
deelar~tic~~7 w~is executed tizis,~'~pday~ ~f Jtiu~e 201 g at L,os Angeles, C~tt(ifo~~i=ia.
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