RECEIVER`S SIXTH QUARTERLY FEE PETITION PAGE 1 IN THE

Transcription

Case 4:13-cv-00383-RAS-DDB Document 155 Filed 05/04/15 Page 1 of 12 PageID #: 1628
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF TEXAS
SHERMAN DIVISION
SECURITIES & EXCHANGE COMMISSION,
Plaintiff,
v.
KEVIN G. WHITE,
KGW CAPITAL MANAGEMENT, LLC,
REVELATION FOREX FUND, L.P., and
RFF GP, LP,
Defendants,
MERIDIAN PROPANE, L.P., and
W CORPORATE REAL ESTATE, LP d/b/a
KGW REAL ESTATE,
Relief Defendants.
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CIVIL ACTION NO.
4:13-cv-383
PETITION NO. 22
RECEIVER’S SIXTH FEE PETITION
Pursuant to the Order Appointing Receiver entered by the Court on July 10, 2013, the
Receiver is required to submit quarterly fee petitions for authorization to pay 80% of the fees and
expenses incurred by the Receiver and all personnel hired by the Receiver, including counsel to
the Receiver. A twenty percent (20%) hold back is required so that payment of such holdback
can be considered by the Court at the conclusion of the receivership. Since the Receiver is also
serving as Receiver in the parallel proceeding brought by the U.S. Commodity Futures Trading
Commission, Civil Action No. 4:13-CV-0382 (the “CFTC Case”)1, this Sixth Quarterly Fee
Petition is also being filed in the CFTC case.
1
The Receiver was appointed pursuant to the Order Granting Plaintiff’s Ex Parte Emergency Motion for a Statutory
Restraining Order, Appointment of a Temporary Receiver, Expedited Discovery, and Order to Show Cause
Regarding a Preliminary Injunction, and Other Equitable Relief (the “SRO”).
RECEIVER’S SIXTH QUARTERLY FEE PETITION
PAGE 1
I.
FEES AND EXPENSES INCURRED
A.
Receiver Fees.
By this Sixth Quarterly Fee Petition, the Receiver requests authority to pay $4,125 in
Receiver fees incurred from October 26, 2014 through April 25, 20152. During this period, the
Receiver provided 13.75 hours of service at his discounted hourly rate of $300.003. The valuable
services provided by the Receiver during this time period are set forth in the invoices attached
hereto as Exhibit A.
B.
Receiver’s Counsel Fees and Expenses.
The law firm of Scheef & Stone, L.L.P. serves as primary counsel for the Receiver.
Scheef & Stone submits monthly invoices to the Receiver for the services rendered. By this
Petition and pursuant to the Receivership Order and the SRO, the Receiver requests authority to
pay Scheef & Stone, L.L.P. $4,103 in fees from October 26, 2014 through April 25, 2015. The
attorneys and paralegals of Scheef & Stone who provided services to the Receiver during this
period, their billable rates, and the hours billed are summarized as follows:
Attorney/Paralegal
Charlene Koonce
(Partner)
James Stafford
(Associate)
Will Hester
(Paralegal)
TOTALS:
Hours
Billed
2.0
Discounted
Billable Rate
$300
Total Billed
16.90
$170
$2,873
6.30
$100
$630
25.20
$163*
(blended rate)
$600
$4,103
2
This Fee Petition does not include fees billed by the Receiver or his law firm Scheef & Stone, LLP for filing and
negotiating claims against certain third parties, which are subject to a contingent fee pursuant to the Receiver’s
liquidation plan approved by the Court.
3
Mr. Crawford’s regular billing rate for non-receivership matters is $390 per hour.
PAGE 2
Scheef & Stone provided valuable services to the Receiver during the period from
October 26, 2014 through April 25, 2015, which are set forth on the invoices attached hereto as
Exhibit B.
In addition, to assist the receivership estate, Scheef & Stone incurred expenses in the
amount of $543.05 for the period from October 26, 2014 through April 25, 2015 as detailed on
the invoices attached hereto as Exhibit C.
Pursuant to the Receivership Order, the Receiver seeks authority to reimburse Scheef &
Stone, L.L.P. for the $543.05 in expenses it incurred on behalf of the receivership.
C.
Receiver’s Accountant Fees and Expenses.
The accounting firm of The Alt Key, PLLC serves as the accountant for the Receiver.
The Alt Key, PLLC submitted its invoices attached hereto as Exhibit D for the accounting
services rendered for the period of August 1, 2014 through April 25, 2015. As set forth in the
invoices, for this period the accounting firm of The Alt Key, PLLC charged $9,311 in fees as
follows:
Accountant/Clerk
Hours
Billed
39.05
Discounted
Billable Rate
$220
Leisa Thompson
2.25
$120
$270
K. Chamberlain
4.50
$100
$450
TOTALS:
45.80
$203*
(blended rate)
Steve Parker
Total Billed
$8,591
$9,311
Pursuant to the Receivership Order and the SRO, the Receiver requests authority to pay
the total fees and expenses of $9,311 charged by The Alt Key, PLLC.
The accounting firm of The Alt Key, PLLC provided valuable accounting services to the
Receiver, which services are described on the invoice attached hereto as Exhibit D. In particular,
PAGE 3
most of the accounting fees were incurred in assisting the Receiver in tracing the disposition of
investor funds and preparing corrected K-1’s to issue to the investors.
Based on the foregoing, the Receiver believes the services rendered to the receivership by
the Receiver, the Receiver’s law firm Scheef & Stone, and the Receiver’s accountants The Alt
Key, PLLC were valuable and that the rates charged to the receivership were fair and reasonable.
Moreover, the Receiver’s law firm incurred expenses for the receivership that were reasonable
and necessary.
II.
LEGAL DISCUSSION OF GUIDELINES FOR PAYMENT OF
RECEIVERSHIP FEES AND EXPENSES
In reviewing the total fees of the Receiver, the Receiver’s counsel, and the Receiver’s
accountants incurred, divided by the hours worked, the lodestar average rate per hour is $207. In
accordance with the law governing calculation of the lodestar rate, the lodestar rate for which
approval is sought in this case is reasonable and does not merit any adjustment.
The “lodestar” method of evaluating the reasonableness of fees, which has been expressly
approved by the Supreme Court, requires the court to look into the prevailing market rates in the
relevant community and compare the prevalent rates with the average rate charged in the matter
in issue. Perdue v. Kenny, 130 S.Ct. 1662, 1673 (2010). The lodestar method also includes most
of the relevant factors constituting a “reasonable” fee, but does not rely expressly require the
“subjective” Johnson factor analysis.4 Id.
The Court calculates the lodestar by determining the number of hours reasonably
expended by an appropriate hourly rate in the community.5 Louisiana Power & Light Co. v.
4
These Johnson factors are nevertheless addressed herein. See infra.
5
The movant bears the burden of proving that the compensation requested is reasonable, and satisfaction of this
burden requires that the movant present records from which the court may determine the nature of the work done,
the need for it, and the amount of time reasonably required. Louisiana Power, 50 F.3d at 324.
PAGE 4
Kellstrom, 50 F.3d 319, 324 (5th Cir. 1995). In evaluating whether requested fees are reasonable,
the court may use its own expertise and judgment to independently assess the value of an
attorney’s services. Davis v. Bd. Of Sch. Comm’rs of Mobile County, 526 F.2d 865, 868 (5th Cir.
1976). The Court also looks for evidence of “billing judgment,” or the attorney or receiver’s
decision to discount or write off time that was unproductive or duplicative. Saizan v. Delta
Concrete Prods. Co., 448 F.3d 795, 799 (5th Cir. 2006). The amount of the award, and any
reduction of the requested fee award, is within the trial court’s discretion. See, e.g., United
States Football league v. National Football League, 887 F.2d 408, 415 (2d Cir. 1989).
Additional considerations are also relevant in the context of an equity receivership. First,
the agreement or opposition of the Commission to the fee application is entitled to great weight.
See, e.g., SEC v. Fifth Ave. Coach Lines, Inc., 364 F.Supp. 1220, 1222 (S.D.N.Y. 1973). Further,
given the public service nature of equity receiverships, courts also consider the amounts
recovered or other results obtained by the receiver in determining what constitutes a “reasonable
fee.” SEC v. Goren, 272 F.Supp.2d 202, 207 (E.D.N.Y. 003). Additionally, examination of
reasonableness and necessity should take into account all circumstances surrounding the
receivership. See, SEC v. W.L. Moody & Co., Bankers (Unincorporated), 374 F. Supp. 465, 480
(S.D. Tex. 1974), aff’d, SEC v. W.L. Moody & Co., 519 F.2d 1087 (5th Cir. 1975). The
complexity and difficulty associated with the receivership are highly relevant factors in
determining the reasonableness of professional fees. See, SEC v. Fifth Ave. Coach Lines, Inc.,
364 F. Supp. 1220, 1222 (S.D.N.Y. 1973) (awarding interim fees and expenses to law firm for
role in receivership and noting that it involved wide variety of complex legal matters requiring
the time, competence, and diverse resources of a law firm of high caliber). Further, Courts
examine the credentials, experience, reputation, and other professional qualities required to carry
out a court’s orders when assessing the reasonableness of the rates charged for services to a
PAGE 5
receivership. See, W.L. Moody & Co., 374 F. Supp. at 481 (holding that a court should give
“considerable weight” to “a receiver’s abilities, as required by the tasks of the receivership”); see
also, Fifth Ave. Coach Lines, Inc., 364 F. Supp. at 1222 (fees awarded in full because they were
based on law firm’s usual hourly rate and supported by meticulous records).
The Receiver submitted detailed descriptions of the matters on which services were
expended, the number of hours billed by each professional, the rates charged by each, and the
lodestar calculation for the fees submitted in this petition. Further, the Receiver’s invoices and
this petition demonstrate that billing judgment was exercised in the reduction of the standard
rates charged by the Receiver and his firm6, in staffing the work performed efficiently, and in
writing off time where necessary. Finally, the Receiver requests that the Court judicially notice
the much higher lodestar and hourly rates approved in other receiverships in Texas.7
The request for approval of the disbursements is also consistent with the “Johnson
factors” set forth by the Fifth Circuit Court of Appeals in Johnson v. Georgia Highway Express,
Inc., 488 F.2d 714 (5th Cir. 1974). Based on the lodestar calculation and the Johnson factors
discussed above, the Receiver believes that the fees submitted are appropriate, just, and
reasonable.
A.
The Time and Labor Required. The Receiver respectfully directs the Court’s
attention to the foregoing summary schedule of unpaid fees and expenses, which identifies the
6
The Receiver’s standard hourly rate is $390, but it is discounted for receivership work to $300. Likewise, the
partners at Scheef & Stone, LLP and the personnel of The Alt Key PLLC discount their standard hourly rates for
receivership work.
7
See, for example, Securities and Exchange Commission v. Correll; Case No. 4:05-CV-472, in the United States
District Court for the Eastern District of Texas, Sherman Division (approving Receiver fees of $400 per hour and
lead counsel fees of $585 per hour); SEC v. Amerifirst Funding, Inc., et al., Cause No. 3:07-CV-01188, Docket No.
117, in the United States District Court for the Northern District of Texas; Receiver’s counsel’s rates, discounted by
10–20% is $420 per hour; SEC v. W Financial Group, LLC, et al., Cause No. 3:08-CV-0499-N, Docket No. 65, in
the United States District Court for the Northern District of Texas; Receiver’s counsel’s rate is $510 per hour, and
$165 per hour for a law clerk; and CFTC v. Pousa; Case No. 1:12-cv-00862 in the United States District Court for
the Western District of Texas, Austin Division (approving Receiver fees in excess of $600 per hour).
PAGE 6
total number of hours billed by the Receiver, the Receiver’s attorneys and accountants (84.75
hours) from October 26, 2014 through April 25, 2015.
B.
The Novelty and Difficulty of the Questions.
Federal equity receiverships
require extensive experience in order to act swiftly and efficiently in securing assets, obtaining
documents and data from computers to find additional assets, and to communicate with investors
and law enforcement agencies. As set forth in the status reports filed with the Court and the
detailed invoices attached hereto the Receiver and his personnel continued to implement the
Receiver’s liquidation and distribution plan, and responded to questions from the investors.
C.
The Skill Requisite to Perform the Service. The Receiver believes the services
performed in this case to date required individuals possessing considerable experience in the
administration of receiverships, claims processes, distribution plans, asset seizure, collection and
litigation.
The Receiver, Scheef & Stone, L.L.P., and The Alt Key PLLC, for which
disbursement approval is sought, have considerable experience in such areas.
D.
The Preclusion of Other Employment Due to Acceptance of the Case. Neither
the Receiver, Scheef & Stone, LLP, nor The Alt Key PLLC declined any representation solely
because of their services in this case.
E.
The Customary Fee. The hourly rates sought herein for the Receiver and the
Receiver’s attorneys and accountants are substantially lower than the rates charged by other
practitioners of similar experience levels in Texas. Indeed the per hour rates charged by the
Receiver’s counsel whose fees are included herein (ranging between $170 – $300 charged for
attorneys) are $100 to $200 per hour lower than the rates currently charged on other
receiverships pending in Texas.8 The lodestar rate of $207 per hour also demonstrates that when
8
See footnote 6, supra.
PAGE 7
appropriate the Receiver is having work performed by less expensive attorneys or legal
assistants.
F.
Whether the Fee is Fixed or Contingent. The Receiver’s fees and his counsel’s
fees are fixed insofar as monies exist by way of Receivership Assets from which to pay such
fees, but payment of the fees and expenses is subject to approval by the Court.
G.
Time Limitations Imposed by the Client or Other Circumstances. There were
no unusual time constraints placed on the Receiver, the Receiver’s attorneys, or accountants
during the months for which compensation is sought.
H.
The Amount Involved and the Results Obtained. The fees for which payment
is sought were for work summarized previously. The Receiver’s attorneys and accountants
contributed significantly to the Receiver’s recovery of monies, administration of the claims
process, and the first interim distribution to the investors. The receivership account currently has
a balance in excess of $190,000, which monies were obtained directly through the efforts of the
Receiver and the personnel he retained.
I.
The Experience, Reputation and Ability of the Attorneys. Scheef & Stone,
L.L.P., the Receiver’s primary counsel, include numerous attorneys who specialize in
representation of equity receivers in federal securities or commodities enforcement cases, and
have done so for more than ten years. The reputation of Scheef & Stone, L.L.P. is recognized
and respected in these fields. Mr. Crawford has served as a receiver in more than 12 federal
court cases brought by either the Securities and Exchange Commission or the U.S. Commodity
Futures Association, with Scheef & Stone, L.L.P. as Mr. Crawford’s counsel.
J.
The Undesirability of the Case. The representation of the Receiver incident to
this case has not been undesirable.
PAGE 8
K.
The Nature and Length of the Professional Relationship with the Client.
Scheef & Stone, L.L.P. has represented the Receiver in numerous prior receiverships.
L.
Awards in Similar Cases. The Receiver believes the fees requested in this case
for his counsel are less than or equal to those which have been awarded in similar cases in
federal courts in Texas.
III.
REQUEST FOR RELEASE OF HELD BACK FEES AND EXPENSES
The Receivership Order requires a 20% holdback of fees and expenses until the
conclusion of the receivership. The Statutory Restraining Order entered by the Court in the
parallel lawsuit brought by the CFTC does not require any holdback of fees and expenses. To
date, from the inception of the case in July, 2013 the Receiver has held back 20% of the fees and
expenses incurred in the receivership,9 which total as follows:
Receiver fees:
$18,408.0010
Receiver’s attorneys’ fees:
$40,567.8011
Receiver’s attorneys’ expenses:
$5,680.1112
Receiver’s accounting fees and expenses:
$8,967.3813
9
The invoices for the fees and expenses incurred were previously submitted to the Court and the parties without
objection in the Receiver’s first five fee applications.
10
$7,365 was withheld from the 1st fee petition; $6,120 was withheld from the 2nd fee petition; $2,760 was withheld
from the 3rd fee petition; $1,095 was withheld from the 4th fee petition; and $1,068 was withheld from the 5th fee
petition.
11
$24,732.50 was withheld from the 1st fee petition; $8,194.60 was withheld from the 2nd fee petition; $5,672.50
was withheld from the 3rd fee petition; $1,455.95 was withheld from the 4th fee petition; and $512.25 was withheld
from the 5th fee petition.
12
$3,163.38 was withheld from the 1st fee petition; $1,519.61 was withheld from the 2nd fee petition; $275.52 was
withheld from the 3rd fee petition; $417.90 was withheld from the 4th fee petition; and $303.70 was withheld from
the 5th fee petition.
13
$3,582.62 was withheld from the 1st fee petition; $387.20 was withheld from the 2nd fee petition; $3,320.59 was
withheld from the 3rd fee petition; $1,495.37 was withheld from the 4th fee petition; and $181.60 was withheld from
the 5th fee petition.
PAGE 9
As set forth in the Receiver’s Sixth Status Report filed with the Court, the receivership is
essentially finished except for the pursuit of claims against FXCM. The Receiver fees and
attorneys’ fees for pursuit of those claims are being paid on a contingent fee basis. Moreover, in
recognition that the receivership is near completion, other than pursuit of the claims against
FXCM, the Receiver is contemporaneously requesting the Court for authority to make a third
interim distribution to approved claimants of nearly all of the balance of unencumbered funds in
the receivership account. Accordingly, in light of the foregoing the Receiver requests the Court
to allow payment of the held back funds.
The Receiver conferred with the Securities and Exchange Commission regarding the
release of the held back funds and the Securities and Exchange Commission does not oppose
such relief.
IV.
CONCLUSION
In conclusion, in accordance with the Receivership Order and SEC billing guidelines, the
Receiver represents that: (i) the fees and expenses included in this Petition were incurred in the
best interests of the Receivership Estate; and, (ii) with the exception of the SEC Billing
Instructions and the contingent fee agreement with Scheef & Stone, LLP approved as part of the
Receiver’s liquidation plan, the Receiver has not entered into any agreement, written or oral,
express or implied, with any person or entity concerning the amount of compensation paid or to
be paid from the Receivership Estates, or any sharing thereof.
PAGE 10
Respectfully submitted May 4, 2015.
RECEIVER KELLY M. CRAWFORD
/s/ Kelly M. Crawford
Kelly M. Crawford, Receiver
State Bar No. 05030700
Scheef & Stone, LLP
500 N. Akard Street, Suite 2700
Dallas, Texas 75201
(214) 706–4200 – Telephone
(214) 706–4242 – Facsimile
CERTIFICATE OF CONFERENCE
The undersigned certifies that this Motion and true and correct copies of the invoices that
are exhibits to this Motion were provided to Harry Wedewer, Esq. of the Plaintiff U.S.
Commodity Futures Trading Commission and to Janie Frank, Esq. of the Plaintiff Securities and
Exchange Commission for review on April 29, 2015. On April 30, 2015 Mr. Wedewer indicated
the U.S. Commodity Futures Trading Commission is unopposed to the relief sought. On May 4,
2015 Ms. Frank indicated the Securities and Exchange Commission is unopposed to the relief
sought.
KELLY M. CRAWFORD
PAGE 11
CERTIFICATE OF SERVICE
The undersigned hereby certifies that on May 4, 2015 I electronically filed the foregoing
document with the clerk of the U.S. District Court, Eastern District of Texas, using the electronic
case filing system of the court. The electronic case filing system sent a “Notice of Electronic
Filing” to the following attorneys of record, and a copy was mailed to the individual pro se
defendant:
Janie L. Frank
Securities and Exchange Commission
Burnett Plaza, Suite 1900
801 Cherry Street, Unit #18
Fort Worth, TX 76102-6882
[email protected]
Kevin G. White #22043-078
USP Beaumont
U.S. Penitentiary
P.O. Box 26030
Beaumont, TX 77720
Defendant, Pro Se
B. David Fraser
Securities and Exchange Commission
Burnett Plaza, Suite 1900
801 Cherry Street, Unit #18
Fort Worth, TX 76102-6882
[email protected]
Counsel for Plaintiff
KELLY M. CRAWFORD
PAGE 12
Case 4:13-cv-00383-RAS-DDB Document 155-1 Filed 05/04/15 Page 1 of 6 PageID #: 1640
Scheef & Stone, L. L. P.
500 N. Akard, Suite 2700
Dallas, Texas 75201
(214) 706-4200
INVOICE
White Receivership
Account No:
Invoice No:
11/25/2014
6959-1 01
831175
Matter 101 -Receiver
Hours
10/27/2014
10/30/2014
11/03/2014
KMC
KMC
KMC
KMC
11/05/2014
KMC
11/19/2014
KMC
11/25/2014
KMC
Conference with J. Stafford regarding issuing replacement check to
investor for distribution and procedure to follow; communicate with C.
Koonce regarding need for financial statement from L. Aland, P.C. to
evaluate settlement offer.
0.25
Communicate with H. Wedewer and J. Frank and provide update
regarding status of receivership and intent to file petition seeking
permission to proceed with arbitration against FXCM; revise and finalize
petitions seeking permission to file arbitration and proposed orders and
have same filed with the court; communicate with K. White regarding
same.
1.50
Prepare fraudulent conveyance Complaint to file against Linda Aland,
P.C.; communicate with C. Koonce regarding same in final attempt to
settle claim.
Prepare and file notice of no objection in SEC case and CFTC case to
petition seeking approval of settlement agreement with SHARE
ministries.
2.00
0.25
Conference with W. Hester regarding call from K. White seeking real
estate files; conference with J. Stafford regarding contacting Nita Fanning
about depositing distribution check.
0.25
Review docket for objections to petitions; have notice of no objection
prepared; review and finalize for filing with the Court.
0.25
For Current Services Rendered
4.50
Recapitulation
Timekeeper
Kelly M. Crawford
Hours
4.50
Hourly Rate
$300.00
1,350.00
Scheef & Stone, L.l.P.
Dallas, Texas 75201
(214) 706-4200
INVOICE
White Receivership
Account No:
Invoice No:
12/22/2014
6959-101
832859
Matter 101 - Receiver
Hours
12/02/2014
12/10/2014
KMC
KMC
Have Notices of No Objection prepared and filed with respect to the
petitions seeking approval of the settlement agreement with Linda Aland.
0.25
Have settlement checks from Share and Aland deposited into
receivership account.
0.25
0.50
150.00
Recapitulation
Timekeeper
Kelly M. Crawford
Total Current Services and Expenses
TERMS: DUE AND PAYABLE UPON RECEIPT
Hours
0.50
Hourly Rate
$300.00
Total
$150.00
150.00
Dallas, Texas 75201
(214) 706-4200
INVOICE
White Receivership
Account No:
Invoice No:
02/25/2015
6959-101
837 490
Hours
02/04/2015
KMC
Telephone conference with FBI agent to respond to questions in
anticipation of White sentencing hearing.
0.25
0.25
75.00
Recapitulation
Timekeeper
Kelly M. Crawford
Hours
0.25
Hourly Rate
$300.00
Total
$75.00
75.00
Dallas, Texas 75201
(214) 706-4200
INVOICE
White Receivership
Account No:
Invoice No:
03/25/2015
6959-101
839862
Hours
02/26/2015
KMC
03/02/2015
KMC
03/09/2015
KMC
03/25/2015
KMC
Deposit settlement check; prepare letter to investors regarding sentencing
of K. White and status of receivership; finalize letters and have mailed out;
check on status of White computer as requested by K. White.
1.00
Conference with W. Hester regarding status of computer that Kevin White
requested; respond to K. White regarding same.
0.25
Review transcript of sentencing hearing of K. White; communicate with
White regarding turnover of information from computer.
0.25
Review bank account to determine if Share Ministries is in default of
settlement agreement; communicate with C. Koonce regarding default.
0.25
1.75
525.00
Recapitulation
Timekeeper
Kelly M. Crawford
Hours
1.75
Hourly Rate
$300.00
Total
$525.00
525.00
Scheef & Stone, L.L.P.
Dallas, Texas 75201
(214) 706-4200
INVOICE
White Receivership
Account No:
Invoice No:
Hours
03/30/2015
03/31/2015
04/03/2015
04/06/2015
04/10/2015
04/20/2015
04/21/2015
KMC
KMC
KMC
KMC
KMC
KMC
KMC
Receive and review final judgment entered in CFTC case and final
interlocutory judgment entered in SEC case; communicate with CFTC
and SEC counsel regarding status of receivership.
0.25
Conference with J. Stafford regarding preparation of tax return for
receivership and accounting for settlement payment from Weaver &
Tidwell; review proposed email to investor regarding change of account
for qualified fund.
0.25
Receive final settlement payment from Share Ministries; have deposited
into receivership account and execute Mutual Release.
0.25
Review tax return for partnership and K-1's to be delivered to investors
and make revisions to same; communicate with J. Frank regarding
distribution to investors and payment of heldback fees and and expenses.
0.75
Telephone conference with accountant regarding issuance of K-1's to
investors and recaptured income shown on K-1's; prepare letter to
investors regarding same; conference with J. Stafford regarding same;
conference with accountant regarding withholding obligation for foreign
investor regarding taxes due.
1.25
Communicate with J. Frank regarding McCraw settlement and how it
affects closing of receivership.
0.25
Conference with J. Frank regarding SEC action against McCraw and
potential for recovery from McCraw of restitution judgment and how that
factors into closing receivership; review SEC interlocutory judgment
against McCraw.
0.50
1.75
04/23/2015
KMC
Prepare draft of Receiver's Sixth Status Report.
04/24/2015
KMC
Finalize and file Receiver's Sixth Status Report in SEC action; prepare
04/25/2015
6959-101
839859
White Receivership
Account No:
Invoice No:
04/25/2015
6959-101
839859
Hours
1.50
and file Receiver's Sixth Status Report in CFTC case.
6.75
2,025.00
Recapitulation
Timekeeper
Kelly M. Crawford
Hours
6.75
Hourly Rate
$300.00
Total
$2,025.00
2,025.00
Dallas, Texas 75201
(214) 706-4200
INVOICE
White Receivership
Account No:
Invoice No:
Matter 102 - Representation of Receiver
Hours
10/27/2014
10/28/2014
10/29/2014
10/30/2014
JSS
JSS
JSS
CCK
WLH
11/06/2014
WLH
CCK
11/14/2014
11/17/2014
11/19/2014
CCK
CCK
WLH
Review and respond to e-mail from Receiver regarding re-issuance of
check to investor Nita Fanning; e-mail to investor regarding same.
0.30
Phone conference and e-mail to investor Nita Fanning regarding
re-issuance of check; e-mail to Receiver regarding same.
0.10
Receipt and review e-mail from Receiver regarding correspondence to
investor Nita Fanning; draft e-mail to Ms. Fanning regarding same.
0.30
Review and revise petition and order to authorize Receiver to file
arbitration demand based on Revelation's claims against FXCM
Review email from K Crawford regarding Kevin White's request for
documents and computer files pertaining to real estate analysis; review
documents taken from White's office in effort to locate real estate
analysis; email K Crawford to advise the documents were not in the
boxes from White's office.
0.30
0.50
Review and respond to emails (x3) from Kevin White inquiring if the KGW
Real Estate files can be put on disk and provided to him- advise he would
need to ask K Crawford.
Forward proposed settlement agreement and release to counsel for Linda
Aland
0.20
Review and revise motion to approve Aland settlement and review notice
of no objection re motion to authorize arbitration against FXCM
0.30
Confer w/all parties re motion to approve Aland settlement and conform
conference on motion re same
0.20
0.20
Email correspondence and conference with K Crawford to request
documents Kevin Whites has requested; review boxes of documents in
attempt to locate documents requested by Kevin White; email
correspondence with Kevin White to advise him the documents he
I
11/25/2014
6959-102
831512
White Receivership
Account No:
Invoice No:
11/25/2014
6959-1 02
831512
Hours
11/20/2014
11/24/2014
JSS
JSS
requested could not be found in the documents still in the possession of
the Receiver.
0.50
Receipt and review of e-mail from Receiver regarding letter to investor
Nita Fanning about payment; draft Letter to Nita Fanning regarding
un-cashed check from second distribution; e-mail communications to
Receiver regarding same.
0.50
Receipt and response to e-mail communications from Receiver regarding
request for information form T. Kohn relating to deposit of investor N.
Fanning's check; phone conference with and e-mail to Mr. Kohn
regarding same.
0.80
4.20
760.00
Recapitulation
Timekeeper
Charlene C. Koonce
Will Hester
James Stafford
Hours
1.00
1.20
2.00
Hourly Rate
$300.00
100.00
170.00
Total
$300.00
120.00
340.00
760.00
Dallas, Texas 75201
(214) 706-4200
INVOICE
White Receivership
Account No:
Invoice No:
12/22/2014
6959-1 02
832860
Hours
12/01/2014
12/10/2014
CCK
WLH
Respond to email from Aland's attorney re status of getting settlement
approved, and confirm 14 days has not yet run
0.20
Review Order granting motion to approve settlement agreement with
Linda Aland and docket reoccurring payments per the settlement
agreement; email K Crawford to confirm Aland's December payment had
been made due to the fact it occurs before the Order was granted and
entered.
0.25
For Current SeNices Rendered
0.45
Recapitulation
Timekeeper
Charlene C. Koonce
Will Hester
Hours
0.20
0.25
Hourly Rate
$300.00
100.00
Total
$60.00
25.00
85.00
Dallas, Texas 75201
(214) 706-4200
INVOICE
White Receivership
Account No:
Invoice No:
01/25/2015
6959-102
835396
Hours
12/23/2014
01/05/2015
01/08/2015
01/14/2015
JSS
CCK
CCK
WLH
Phone conference and e-mail to Receivership investor regarding status
update of litigation.
1.10
Telephone conference with counsel for Ms. Aland re concerns about
settlement agreement being posted on the internet, approval of
settlement agreement, and date for next payment; forward order and info
resettlement agreement to counsel.
0.30
Telephone conference with Ed Tomko re request that KMC provide letter
or testify re White's cooperation at White's sentencing; confer w/KMC re
same and further call with Tomko re same
0.30
Teleconference with Mary in Judge Crone's Court at the USDC Southern
District of Texas regarding letter received from Kelly Crawford dated
January 9, 2015 advising of the dealings with Mr. White and seizure of
assets.
0.25
1.95
392.00
Recapitulation
Timekeeper
Charlene C. Koonce
Will Hester
James Stafford
Hours
0.60
0.25
1.10
Hourly Rate
$300.00
100.00
170.00
Total
$180.00
25.00
187.00
392.00
Dallas, Texas 75201
(214) 706-4200
INVOICE
White Receivership
Account No:
Invoice No:
02/25/2015
6959-102
837491
Hours
02/04/2015
02/12/2015
02/13/2015
02/19/2015
WLH
JSS
JSS
WLH
Review and respond to emails (x2) from K Crawford regarding contact
with Judge Crone's Court in the Southern District of Texas regarding the
referral letter sent to the Court.
0.25
Inter-office conference with Receiver regarding status of litigation and
settlements and upcoming tax deadlines; attention to call from Investor P.
Smith regarding litigation status; e-mail to accountant regarding 1099
received and tax deadlines.
1.10
Phone conference with accountant regarding preparation of documents to
file return.
0.30
Review email from K Crawford regarding the sentencing hearing for Kevin
White; review documents filed in the USDC Eastern District regarding
White's sentencing and forward sentencing document to K Crawford via
email; review email from K Crawford requesting a transcript from the
hearing; contact the Court Coordinator Patricia Leger regarding a
transcript from the hearing advised I would need to contact the Court
Reporter; teleconference and email correspondence with Tonya Jackson,
Court Reporter for Judge Crone's court and request a copy of the
sentencing hearing transcript- two week turnaround; review email from D
Lambert to Jerrod Cross regarding an invoice from CT Corporation the
Receiver will not be paying.
0.75
2.40
Recapitulation
Timekeeper
Will Hester
James Stafford
Hours
1.00
1.40
Hourly Rate
$100.00
170.00
Total
$100.00
238.00
338.00
Dallas, Texas 75201
(214) 706-4200
INVOICE
White Receivership
Account No:
Invoice No:
Hours
02/26/2015
02/27/2015
03/02/2015
03/04/2015
03/06/2015
03/09/2015
WLH
WLH
WLH
JSS
WLH
JSS
WLH
Review email correspondence (x2) from Tonya Jackson at the USDC
Eastern District - Beaumont regarding an invoice for the sentencing
hearing transcript.
0.25
Review email from K Crawford requesting review of voice message from
Jerrod Cross with CT Corp and contact Cross to advise him Meridian
Propane is no longer in business and the Receiver had not authorized the
service provided by CT Corporation; teleconference with Jerrod Cross
regarding Meridian Propane and advise that the Receiver will not pay the
invoice for registered agent service for Meridian Propane and Meridian is
no longer in business.
0.30
Conference with K Crawford regarding Kevin White's request for personal
files located on the hard drive of the desktop taken from White's office;
review files on desktop hard drive for the purpose of identifying personal
files and documents.
1.50
Review and compile 2014 banking records in preparation for tax filings;
e-mail to accountant regarding same.
0.30
Review email from Tonya Jackson with the USDC Eastern District of
Texas forwarding the transcript from White's sentencing hearing; review
transcript.
0.30
Attention to voicemail from investor regarding update letter sent by
Receiver; e-mail to accountant regarding investor tax matters.
Create disk containing personal files from White's desktop removed from
the KGW office; email K Crawford to advise that Kevin White's personal
files have been save to a disk and ready to be sent forward to White;
review email from K Crawford verifying address to send White the disk;
transmit the disk via USPS first class mail; review email from K Crawford
to make note of date White is to report to the Bastrop facility for
incarceration and the need to revise White's contact information; research
0.40
03/25/2015
6959-102
839863
White Receivership
Account No:
Invoice No:
03/25/2015
6959-102
839863
Hours
03/16/2015
03/18/2015
JSS
JSS
WLH
using the bop.gov website to verify the contact information for the Federal
Corrections Institution in Bastrop and White's assigned inmate number.
0.50
Attention to investor request to direct future Receiver allotments into newly
created accounts; e-mail to accountant regarding investor K-1 s; confer
with Receiver regarding same, including research regarding transfer of
fund and impact on assignment and client engagement; draft e-mail to
Receiver regarding same.
1.20
Attention to e-mail from investor regarding status of receivership and
litigation; phone conference with investor regarding potential closure of
account; e-mail to Receiver in light of same; e-mail and phone call to
accountant regarding information needed for K-1 processing for investors.
Review email from investor Henry Brenner regarding further recovery of
funds from Revelation Forex Fund; review email from J Stafford stating he
will respond to Brenner; review email from J Stafford providing Wilhoit
S.A. change of address.
0.70
0.25
03/19/2015
JSS
JSS
Receipt and response to e-mail from accountant regarding investor K1 s.
Follow-up phone conference with investor regarding distribution account.
0.10
0.20
03/25/2015
JSS
Review and respond to e-mail from investor regarding transfer of accounts
relating to receivership.
0.20
6.20
Recapitulation
Timekeeper
Will Hester
James Stafford
Hours
3.10
3.10
Hourly Rate
$100.00
170.00
Total
$310.00
527.00
837.00
Dallas, Texas 75201
(214) 706-4200
INVOICE
White Receivership
Account No:
Invoice No:
Hours
03/27/2015
03/30/2015
03/31/2015
04/01/2015
04/02/2015
04/06/2015
JSS
WLH
JSS
JSS
JSS
JSS
CCK
04/13/2015
JSS
JSS
Review e-mail from accountant regarding analysis of receivership tax
status; review and discuss content of correspondence to investors
regarding K-1 s; receipt and response to e-mail from investor; contact
Legacy bank regarding tax information requested by accountant.
0.60
Review Consent Order and docket payment date and due date for annual
distribution report.
0.25
Phone call to Legacy Bank regarding request for documents needed to
process receivership tax obligations; inter-office conference with and
e-mail to Receiver regarding communications from investors relating to
future distributions, K1 sand accounting issues relating to taxes; phone
conference (x2) with and e-mails to accountant regarding same.
1.80
Review e-mail from accountant regarding potential legal issues of claims
as it relates to recovery and expenditures.
0.50
Communications with Legacy bank regarding statements needed to
finalize K-1s for investors; phone conference with accountant regarding
issues related to K1 processing.
0.70
Review and analysis of K-1's and associated documents received from
accountant.
Email exchange with Share ministries re receipt of check and request for
execution of final Mutual Release
Phone conference with accountant regarding edits and revisions to K1;
revise draft letter to investors regarding same; receipt and review revised
K1 s; confer with Receiver in light of same; finalize and send K1 s to
investors.
Attention to e-mail from investor regarding receipt of 2014 K1 and request
for2013K1.
0.20
0.20
4.20
0.40
04/25/2015
6959-102
839865
White Receivership
Account No:
Invoice No:
04/25/2015
6959-102
839865
Hours
04/15/2015
04/16/2015
JSS
JSS
WLH
Attention to e-mail from investors regarding receipt of 2014 K1 and
request for 2013 K1; e-mail correspondence to accountant regarding
same; attention to request from investor regarding status of the case.
Attention to e-mail from investor regading 2014 K-1 and request for 2013
K1.
Review Order regarding status reports to be filed by the Receiver and
docket.
0.70
0.20
0.25
10.00
1,691.00
Recapitulation
Timekeeper
Charlene C. Koonce
Will Hester
James Stafford
Hours
0.20
0.50
9.30
Hourly Rate
$300.00
100.00
170.00
Total
$60.00
50.00
1,581.00
1,691.00
Dallas, Texas 75201
(214) 706-4200
INVOICE
White Receivership
Account No:
Invoice No:
11/25/2014
6959-103
831177
Matter 103 - Receivership Expenses
10/31/2014
10/31/2014
10/31/2014
10/31/2014
11/12/2014
11/14/2014
11/14/2014
11/20/2014
11/20/2014
11/20/2014
Computerized legal research (1 013) Thomson Reuters -West
2 Overnight Deliveiesy (1) Federal Express
Postage
Photocopies
Postage
Postage
Overnight Delivery (1) Federal Express inv # 2-858-06019 to The Honorable
DOn D Bush
Postage
Photocopies
Overnight Delivery (1) Federal Express inv # 2-858-06019 to The Honorable
Don D Bush
213.48
27.33
0.90
8.80
2.03
0.69
Total Expenses
292.15
292.15
13.90
7.09
6.20
11.73
J
i
Dallas, Texas 75201
(214) 706-4200
INVOICE
White Receivership
Account No:
Invoice No:
04/25/2015
6959-103
839861
Matter 103 - Receivership Expenses
02/26/2015
04/06/2015
04/13/2015
04/13/2015
Document Services (9999) Tonya Jackson
Photocopies
Postage
Photocopies
161.50
37.40
18.00
34.00
Total Expenses
250.90
250.90
$9,790.60
Previous Balance
$10,041.50
Balance Due
0-30
0.00
31-60
0.00
Past Due Amounts
61-90
91-120
0.00
0.00
121-180
292.15
181+
9,498.45
Aft
A PROFESSIONAL ACCOUNTANCY GROUP
2151 E
Road. Suite 115
Revelation Forex Fund-In Receivership, Kevin
White Et al
c/o Kelly Crawford, Receiver
Scheef & Stone, LLP
8/7/14
S. Parker
Review records for transactions
between Revelation and
associated entities and the
brokerage I trading accounts
August 31, 2014
Invoice: 57797
Hours
1.25
Rate
$220.00
$275.00
1.25
8/12/14
S. Parker
Analysis of FXCM trading account
6.35
$275.00
$220.00
$1,397.00
----
$1,397.00
6.35
8/13/14
S. Parker
Review and update spreadsheets
to reconcile FXCM stmts with
general ledger
1.35
$220.00
$297.00
1.35
8/14/14
S. Parker
Complete reconciliation of FXCM
accounts, prepare schedule for
Receiver
1.65
$220.00
S. Parker
Reconcile FXCM transactions,
prepare analysis for Receiver
1.75
$220.00
S. Parker
Prepare Schedule of
disbursements to Akin Gump
1.00
1.00
$385.00
$385.00
1.75
8/22/14
$363.00
$363.00
1.65
8/15/14
$297.00
$220.00
$220.00
$220.00
The Alt Key, PLLC
2151 E. Broadway Road Suite 115, TempeAZ 852821 p.480.558.4400 1 f. 480.558.44151 e. admin@thealtke·---~~-. .
Revelation Forex Fund-In Receivership, Kevin White Et al
Page 2
8/25/14
S. Parker
Review and Discuss unknown
transactions, prepare schedule for
Receiver
1.85
$220.00
$407.00
L. Thompson
Researched into if we could
identify the payees on the checks
coded as payable to Unknown in
the QuickBooks file
1.00
$120.00
$120.00
2.85
8/26/14
S. Parker
Look through records to identify
bank account numbers. Account
numbers were not included on the
bank statements. Probably
because many of them were
downloads.
1.15
$527.00
$220.00
$253.00
$253.00
1.15
Total
Aft
PLLC
A PROFESSIONAL ACCOUNTANCY GROUP
'"'"'·"'.lV'""J Road, Suite i 15
White Et al
Scheef & Stone, LLP
11/5/14
S. Parker
TX Franchise tax reports
March 31, 2015
Invoice: 600770
Hours
1.85
Rate
$220.00
$407.00
1.85
11/12/14
L. Thompson
Research into requirements to file
Texas Franchise tax returns
1.25
$120.00
S. Parker
Prepare and review TX franchise
tax returns
1.65
$220.00
S. Parker
Review documents provided by
James Stafford, begin
bookkeeping for 2014
1.80
$220.00
K. Chamberlin
Loaded all transactions from
Chase statements into quick
books.
4.50
$100.00
S. Parker
Review accounting and
bookkeeping for 2014 in
anticipation of tax return
preparation
4.05
$450.00
$450.00
4.50
3/26/15
$396.00
$396.00
1.80
3/24/15
$363.00
$363.00
1.65
3/12/15
$150.00
$150.00
1.25
11/17/14
$407.00
$220.00
4.05
The Alt Key, PLLC
2151 E. Broadway Road Suite 115, Tempe AZ 85282 I p.480.558.4400 1 f. 480.558.4415 1 e. [email protected]
$891.00
$891.00
Revelation Forex Fund-In
Receivership~
Kevin White Et al
Page 2
3/31/15
S. Parker
Reviewing apparent discrepancy in
settlement from Weaver and
Tidwell, determine the amounts
deposited were net amounts with
other fees withdrawn prior.
1.15
$220.00
1.15
Invoice Total
$253.00
$253.00
Aft
PROFESSIONAL ACCOUNTANCY. GROUP
Road. Sufte
White Et al
Scheef & Stone, LLP
4/ 1/15
S. Parker
Prepare 2014 partnership return
form 1065. Reconcile capital
accounts from inception and tie to
returns. Review distributions and
recovery's to determine proper
treatment on Form K-1. Review
foreign investor issues
April 24, 2015
Invoice: 600897
Hours
Rate
5.42
$220.00
5.42
4/ 9/15
S. Parker
$11192.40
$1 1192.40
Review of partnership returns,
make edits requested by receiver,
prepare K-1 s, send to receiver.
2.03
$220.00
$446.60
Telephone consult with Larry
Warfield regarding Withholding
agent issues on foreign investors
0.42
$220.01
$91.67
$538.27
2.45
4/10/15
S. Parker
Review and research options to
address withholding requirements
for foreign investor
2.28
$220.00
$502.33
2.28
4/13/15
S. Parker
$502.33
Update and Finalize K-1 's with
final changes, send final versions
to Receiver
0.35
$220.00
$77.00
Complete Partnership tax returns
1.70
$220.00
$374.00
2.05
The Alt Key, PLLC
2151 E. Broadway Road Suite 115, Tempe AZ 85282 1p.480.558.4400 1 f. 480.558.44151 e. [email protected]
$451.00
Revelation Forex Fund-In Receivership, Kevin White Et al
Page 2
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF TEXAS
SHERMAN DIVISION
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
v.
KEVIN G. WHITE,
KGW CAPITAL MANAGEMENT, LLC
REVELATION FOREX FUND, LP, and
RFF GP, LLC,
Defendants,
MERIDIAN PROPANE LP, and
W CORPORATE REAL ESTATE, LP
d/b/a KGW REAL ESTATE,
Relief Defendants.
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
CIVIL ACTION NO.
4:13-CV-0383
ORDER GRANTING PETITION NO. 22
THE RECEIVER’S SIXTH FEE PETITION
On this date, the Court considered Petition No. 22, The Receiver’s Sixth Fee Petition.
The Court finds that the Commission does not oppose the relief requested in the Petition, that no
other parties or persons objected to the relief requested, and that the Petition is just and
appropriate and should be granted.
ACCORDINGLY, it is hereby ordered that the Receiver is authorized to pay from the
receivership assets recovered by the Receiver the following fees and expenses:
1.
The sum of $4,125 shall be paid to Kelly Crawford for his services as
Receiver from October 26, 2014 through April 25, 2015. In addition, the fees of $18,408
held back from the first five fee petitions shall be released and paid to Kelly Crawford.
2.
The sum of $4,103 shall be paid to Scheef & Stone, L.L.P. for its services
as counsel to the Receiver from October 26, 2014 through April 25, 2015. In addition,
the fees of $40,567.80 held back from the first five fee petitions shall be released and
paid to Scheef & Stone, L.L.P.
3.
The sum of $543.05 shall be paid to Scheef & Stone, L.L.P. for expenses
it incurred on behalf of its representation of the Receiver from October 26, 2014 through
April 25, 2015. In addition, the expenses of $5,680.11 shall held back from the first five
fee petitions shall be released and paid to Scheef & Stone, L.L.P.
4.
The sum of $9,311 shall be paid to The Alt Key, PLLC for fees charged
for its services as accountant to the Receiver from August 1, 2014 through April 25,
2015. In addition, the fees and expenses of $8,967.38 held back from the first five fee
petitions and shall be released and paid as follows: $4,511.21 to Warfield & Company,
CPA and $4,456.17 to The Alt Key, PLLC.

RECEIVER`S SIXTH QUARTERLY FEE PETITION PAGE 1 IN THE

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