UNITI,D S'I'ATT~~S DIS'1 RICT CO~UI2T SOUTHERN DISTRICT

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

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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

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$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

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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

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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.

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~~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

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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.

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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.

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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.

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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~

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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.~


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


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


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


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


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~:.ìA ~.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 lì "~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


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,~

_ ~_


~>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 ..


the fce;s so~i~~trt far sci-vices perfòrxzlect try the Receiver an~~ its }~rofes>ionals iòa~ 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~ìvilc~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, Ì'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 ..


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;

_ ~..


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-


~CJ).~]1,fÌ~;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


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


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


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

_ ~~


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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UNITI,D S'I'ATT~~S DIS'1 RICT CO~UI2T SOUTHERN DISTRICT