Securities and Exchange Commission v. Nadel et al

Filing 392

UNOPPOSED FIFTH INTERIM MOTION for order awarding attorney fees, costs and reimbursement of costs to receiver and his professional by Burton W. Wiand. (Attachments: #1 Exhibit 1 Standard Fund accounting reports, #2 Exhibit 2 Fourth Interim Report Part 1, #3 Exhibit 2-2 Fourth Interim Report Part 2, #4 Exhibit 3 Fifth Interim Report Part 1, #5 Exhibit 3 Fifth Interim Report Part 2, #6 Exhibit 4, #7 Exhibit 5, #8 Exhibit 6, #9 Exhibit 7, #10 Exhibit 8, #11 Exhibit 9, #12 Exhibit 10, #13 Exhibit 11, #14 Exhibit 12, #15 Exhibit 13, #16 Exhibit 14, #17 Exhibit 15, #18 Exhibit 16, #19 Exhibit 17 part 1, #20 Exhibit 17 part 2, #21 Exhibit 18, #22 Exhibit 19, #23 Exhibit 20, #24 Exhibit 21, #25 Exhibit 22, #26 Exhibit 23, #27 Exhibit 24, #28 Exhibit 25, #29 Exhibit 26, #30 Exhibit 27, #31 Exhibit 28, #32 Exhibit 29, #33 Exhibit 30 part 1, #34 Exhibit 30 part 2, #35 Exhibit 30 part 3, #36 Exhibit 31, #37 Exhibit 32, #38 Exhibit 33 proposed order)(JLH)

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. ARTHUR NADEL; SCOOP CAPITAL, LLC; SCOOP MANAGEMENT, INC. Defendants, SCOOP REAL ESTATE, L.P.; VALHALLA INVESTMENT PARTNERS, L.P.; VALHALLA MANAGEMENT, INC.; VICTORY IRA FUND, LTD; VICTORY FUND, LTD; VIKING IRA FUND, LLC; VIKING FUND, LLC; AND VIKING MANAGEMENT, LLC Relief Defendants. ____________________________________/ RECEIVER'S UNOPPOSED FIFTH INTERIM MOTION FOR ORDER AWARDING FEES, COSTS, AND REIMBURSEMENT OF COSTS TO RECEIVER AND HIS PROFESSIONALS Burton W. Wiand, as Receiver, by and through his undersigned counsel and pursuant to Rule 66 of the Federal Rules of Civil Procedure and the Court's Order Appointing Receiver dated January 21, 2009 (the "Order Appointing Receiver"; Doc. 8), respectfully moves this Court for the entry of an order awarding fees, costs, and reimbursement of costs to the Receiver and his professionals. This motion covers all fees and costs incurred for the Case No. 8:09-cv-87-T-26TBM

five month period from September 1, 2009 through January 31, 2010.

The Standardized

Fund Accounting Reports ("SFAR") for this period are attached hereto as Exhibit 1.1 Since the appointment of the Receiver, he and those he has retained to assist him have engaged in substantial and continuing efforts for the benefit of the Receivership. As of the date of this Motion, among other things, the Receiver and his professionals have done the following: Instituted 136 lawsuits seeking to recover approximately $68,977,957.59; Reached 56 settlements for a total sum of $8,838,640.18; Sold or reached agreements in principle to sell Receivership assets that should result in approximately $2,613,600 for the Receivership and the waiver or resolution of more than $6.8 million in debt obligations of Receivership Entities; Expanded the Receivership to include 10 additional business entities and one trust; Obtained possession of additional property in Georgia, North Carolina, Mississippi, Ohio and Florida bringing the Receivership's current real and personal property holdings to more than 450 acres; four office/retail buildings; four residential properties; 31 aircraft hangars; three planes; and other miscellaneous items, including artwork, jewelry, and furniture; Obtained control of (1) a $4 million interest in Quest Energy Management, (2) more than 4.7 million shares of Bonds.com stock and more than one million warrants for Bonds.com stock, and (3) various promissory notes totaling nearly $3 million; Provided substantial assistance to the Commission that culminated in an enforcement proceeding brought against Neil Moody and Chris Moody and the ultimate entry of permanent injunctions against them;

The Securities and Exchange Commission (the "Commission") provided the Receiver with detailed Billing Instructions for Receivers in Civil Actions Commenced by the Commission (the "Billing Instructions"). The SFAR is one of the requirements contained in the Billing Instructions.

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Worked on recovering the assets in the possession of Neil Moody and Chris Moody; Pursued his malpractice action against Holland & Knight, including successfully defeating in substantial part a motion to dismiss; the complaint seeks to recover as much as possible of the approximately $168 million out-of-pocket losses suffered by investors; Instituted the claims process (the necessary motion and exhibits to institute the claims process were filed on April 20, 2010); and Continued to operate ongoing businesses, and where possible, enhance the value of those businesses resulting in the generation of more than $2,678,325.71 in gross business income since the appointment of the Receiver.

Case Background and Status As of the date of filing this Motion, the Court has appointed Burton W. Wiand as Receiver over the following entities and trust: a) b) Defendants Scoop Capital, LLC; and Scoop Management, Inc.; Relief Defendants Scoop Real Estate, L.P.; Valhalla Investment Partners, L.P.; Victory IRA Fund, Ltd.; Victory Fund, Ltd.; Viking IRA Fund, LLC; and Viking Fund LLC; Valhalla Management, Inc.; and Viking Management, LLC; and Venice Jet Center, LLC; Tradewind, LLC; Laurel Mountain Preserve, LLC; Laurel Preserve, LLC; Laurel Mountain Preserve Homeowners Association, Inc.; Marguerite J. Nadel Revocable Trust UAD 8/2/07; Guy-Nadel Foundation, Inc.; Lime Avenue Enterprises, LLC; A Victorian Garden Florist, LLC; Viking Oil & Gas, LLC; and Home Front Homes, LLC.

c)

(See Docs. 8, 17, 44, 68, 81, 153, 172.) The foregoing entities and trust are collectively referred to as the "Receivership Entities." On November 25, 2009, the Receiver filed the Fourth Interim Report (Doc. 240) and on March 10, 2010, the Receiver filed the Fifth Interim Report (Doc. 362). These Interim Reports contain comprehensive and detailed information regarding the case background and

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status; the recovery and disposition of assets; financial information on Receivership Entities; the proposed course of action to be taken regarding assets in the Receivership estate; and related litigation involving Receivership Entities. The Receiver incorporates the Fourth and Fifth Interim Reports into this Motion for Fees and has attached a true and correct copy of the Fourth and Fifth Interim Reports as Exhibit 2 and Exhibit 3, respectively, for the Court's convenience. Combined, these Interim Reports report on all of the activity which resulted in the fees and costs sought in this Motion. Throughout this Motion, the Fourth and Fifth Interim Reports will be collectively referred to as "Interim Report." Professional Services Rendered and Costs Incurred Paragraph 4 of the Order Appointing Receiver authorizes the Receiver to [a]ppoint one or more special agents, employ legal counsel, actuaries, accountants, clerks, consultants and assistants as the Receiver deems necessary and to fix and pay their reasonable compensation and reasonable expenses, as well as all reasonable expenses of taking possession of the assets and business of the Defendants and Relief Defendants, and exercising the power granted by this Order, subject to approval by this Court at the time the Receiver accounts to the Court for such expenditures and compensation. Pursuant to this paragraph, the Receiver retained (1) PDR Certified Public Accountants ("PDR") to provide accounting services; (2) Riverside Financial Group ("Riverside") to provide financial analyses; (3) E-Hounds, Inc. ("E-Hounds") to provide computer forensic services; and (4) Fowler White Boggs P.A. ("Fowler White"), and subsequently Wiand Guerra King P.L. ("WGK") to provide legal services (collectively, the "Professionals").2 As noted in the Fourth Interim Report (Doc. 240 at n.2), the Receiver and certain of his counsel of record in this case moved from Fowler White Boggs P.A. to Wiand Guerra King P.L. Some of the fees and costs covered by this Motion were incurred before the move.
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On May 13, 2009, the Receiver filed his First Interim Motion for Order Awarding Fees, Costs, and Reimbursement of Costs to Receiver and His Professionals. (Doc. 129.) The amounts requested therein were as follows: Burton W. Wiand Fowler White Boggs P.A. PDR Certified Public Accountants Riverside Financial Group E-Hounds, Inc. $59,080.00 $206,974.14 $44,794.00 $14,962.50 $10,453.12

The Court granted the First Interim Motion in full. (Doc. 130). No amounts remain unpaid. On July 27, 2009, the Receiver filed his Second Interim Motion for Order Awarding Fees, Costs, and Reimbursement of Costs to Receiver and his Professionals. (Doc. 164.) The amounts requested therein were as follows: Burton W. Wiand Fowler White Boggs P.A. PDR Certified Public Accountants Riverside Financial Group E-Hounds, Inc. $59,143.00 $298,425.61 $60,558.71 $2,450.00 $8,781.25

The Court granted the Second Interim Motion in full. (Doc. 165.) No amounts remain unpaid. On September 21, 2009, the Receiver filed his Third Interim Motion for Order Awarding Fees, Costs, and Reimbursement of Costs to Receiver and his Professionals. (Doc. 200.) The amounts requested therein were as follows: Burton W. Wiand Fowler White Boggs P.A. PDR Certified Public Accountants Riverside Financial Group E-Hounds, Inc. $38,360.00 $251,286.46 $48,238.61 $1,312.50 $2,975.00

The Court granted the Third Interim Motion in full. (Doc. 201.) No amounts remain unpaid.

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On December 16, 2009, the Receiver filed his Fourth Interim Motion for Order Awarding Fees, Costs, and Reimbursement of Costs to Receiver and his Professionals. (Doc. 259.) The amounts requested therein were as follows: Burton W. Wiand Fowler White Boggs P.A. PDR Certified Public Accountants Riverside Financial Group E-Hounds, Inc. $51,378.39 $204,708.77 $39,918.75 $4,371.20 $43.75

The Court granted the Fourth Interim Motion in full. (Doc. 266.) No amounts remain unpaid. As described above and more fully in the Interim Report, the Professionals have provided services and incurred expenses to investigate the affairs of the Receivership Entities, preserve the Receivership assets, attempt to locate and recover additional assets, and institute and pursue litigation. These services are for the benefit of aggrieved investors, creditors, and other interested parties of the Receivership Entities. I. The Receiver. The Receiver requests the Court award him fees for the professional services rendered from September 1, 2009, through January 31, 2010,3 in the amounts of $24,990 for the time the Receiver was with Fowler White and $26,460 for his time with WGK. The standard

During the time covered by this motion, the Receiver rendered professional services and incurred costs while he was with Fowler White and, after its opening, while he was with WGK. Professional services rendered from September 1, 2009 through November 6, 2009 are reflected on statements from Fowler White. Professional services rendered from November 8, 2009 through January 31, 2010 are reflected on WGK statements. For each of the sections below, statements from both law firms are attached as exhibits and provide the detail for the fees and costs requested and reflected in the tables below. The hourly rates and costs charged at WGK are consistent with those charged at Fowler White.

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hourly rate which the Receiver charges clients is $450. However, the Receiver agreed that for purposes of his appointment as the Receiver, his hourly rate would be reduced to $350 per hour, representing a little more than a twenty-two percent (22%) discount off the standard hourly rate which he charges clients in comparable matters. This rate was set forth in the Commission's Emergency Motion for Appointment of Receiver and Memorandum of Law (Doc. 6), which the Court granted on January 21, 2009 (Doc. 8). The Receiver commenced services immediately upon his appointment. The Receiver has billed his time for these activities in accordance with the Billing Instructions. The Billing Instructions request that this Motion contain a narrative of each "business enterprise or litigation matter" for which outside professionals have been employed. The Billing

Instructions identify each such business enterprise or litigation matter as a separate "project." Further, the Billing Instructions request that time billed for each project be allocated to one of several Activity Categories.4

The Activity Categories set forth by the Commission in the Billing Instructions are as follows: (1) Asset Analysis and Recovery, which is defined as identification and review of potential assets including causes of action and non-litigation recoveries; (2) Asset Disposition, which is defined as sales, leases, abandonment and related transaction work (where extended series of sales or other disposition of assets is contemplated, the Billing Instructions provide that a separate category should be established for each major transaction); (3) Business Operations, which is defined as issues related to operation of an ongoing business; (4) Case Administration, which is defined as coordination and compliance activities, including preparation of reports to the court, investor inquiries, etc.; (5) Claims Administration and Objections, which is defined as expenses in formulating, gaining approval of and administering any claims procedure; and (6) Employee Benefits/Pensions, which is defined as reviewing issues such as severance, retention, 401k coverage and continuance of pension plan. The Billing Instructions provide that time spent preparing motions for fees may not be charged to the Receivership Estate. In accordance with these instructions, the Receiver created an additional Activity Category for work on fees motions and has accounted for the time spent on such work but has not charged any amount for this work.

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A.

The Receivership.

During the relevant period of this Receivership, the work of the Receiver, Fowler White, and WGK focused on investigating the fraud and related activities underlying this matter; locating and taking control of Receivership assets; investigating, pursuing, and recovering additional assets for the Receivership; selling or otherwise disposing of assets in a manner that is in the best interests of the Receivership; and instituting litigation to recover false profits and other improper transfers. These activities of the Receiver are set forth in detail in the Interim Report. (Exs. 2 and 3.) A copy of the statements summarizing the Receiver's services rendered and costs incurred for the Receivership are attached hereto as Exhibit 4 for the time he was with Fowler White and Exhibit 5 for his time with WGK. The Receiver's time and fees for services rendered for each Activity Category for September 1, 2009 through January 31, 2010 are as follows: Receivership Receiver's Time and Fees for Services Rendered Activity Category Asset Analysis and Recovery Asset Disposition Business Operations Case Administration TOTAL B. Hours Expended 30.00 55.50 9.00 10.80 105.30 Fee Amount $10,500.00 $19,425.00 $3,150.00 $3,780.00 $36,855.00

Discrete Litigation Matters and Projects.

In conjunction with the Receivership, the following five discrete litigation matters or projects have been formally commenced by the Receiver.

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1.

Home Front Homes Litigation.

This was a lawsuit against Brian C. Bishop, a former employee who also had an ownership interest in Home Front Homes, LLC ("Home Front Homes") an operating business. (See also Ex. 2 § V.A.8 and Ex. 3 § V.A.8.) Although the litigation settled, Mr. Bishop did not comply with the terms of the settlement, and the Receiver had to initiate contempt proceedings against him. (See also id.) This matter has since been resolved. The resolution will be set forth in the Receiver's next interim report. A copy of the statements summarizing the Receiver's services rendered and costs incurred from September 1, 2009, through January 31, 2010, for this project are attached hereto as Exhibit 6 for the time he was with Fowler White and Exhibit 7 for his time with WGK. The Receiver's time and fees for services rendered for each Activity Category are as follows: Home Front Homes Litigation Receiver's Time and Fees for Services Rendered Hours Expended 1.60 7.90 .80 1.20 11.50

Activity Category Asset Analysis and Recovery Asset Disposition Business Operations Case Administration TOTAL 2.

Fee Amount $560.00 $2,765.00 $280.00 $420.00 $4,025.00

Carolina Mountain Land Conservancy Easement.

This is a project involving the recovery of a conservancy easement that Laurel Mountain Preserve, LLC, granted to the Carolina Mountain Land Conservancy. (See also Ex. 2 § V.A.3 and Ex. 3 § V.A.3.) A copy of the statement reflecting the services rendered and costs incurred by the Receiver from September 1, 2009, through January 31, 2010, for this project is attached hereto as Exhibit 8. The Receiver only charged fees for his time on

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this matter while at WGK. The Receiver's time and fees for services rendered for each Activity Category are as follows: Carolina Mountain Land Conservancy Receiver's Time and Fees for Services Rendered Hours Expended .10 .10

Activity Category Asset Analysis and Recovery TOTAL 3.

Fee Amount $35.00 $35.00

Recovery of False Profits from Investors.

This is a project involving the Receiver's efforts to recover profits from investors whose purported accounts received monies in an amount that exceeded their investments. (See also Ex. 2 § V.D and Ex. 3 § V.D.) These purported profits were false because they were not based on any trading or investment gain, but rather were fruits of a Ponzi scheme that consisted of funds of new and existing investors. A copy of the statements summarizing the services rendered and costs incurred by the Receiver from September 1, 2009, through January 31, 2010, for this project are attached hereto as Exhibit 9 for the time he was with Fowler White and Exhibit 10 for his time with WGK. The Receiver's time and fees for services rendered for each Activity Category are as follows: Recovery from Investors Receiver's Time and Fees for Services Rendered Activity Category Asset Analysis and Recovery Asset Disposition Case Administration TOTAL Hours Expended 13.80 1.50 .80 16.10 Fee Amount $1,705.00 $525.00 $280.00 $6,510.00

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4.

Recovery of Assets from the Moodys.

This is a project involving the Receiver's efforts to recover money and assets from Christopher D. Moody and Neil V. Moody. (See also Ex. 2 § V.E and Ex. 3 §§ V.D and V.E.2.) A copy of the statements summarizing the services rendered and costs incurred by the Receiver from September 1, 2009, through January 31, 2010, for this project are attached hereto as Exhibit 11 for the time he was with Fowler White and Exhibit 12 for his time with WGK. The Receiver's time and fees for services rendered for each Activity Category are as follows: Recovery from Chris and Neil Moody Receiver's Time and Fees for Services Rendered Hours Expended 11.50 11.50

Activity Category Asset Analysis and Recovery TOTAL 5.

Fee Amount $4,025.00 $4,025.00

Recovery from Recipients of Commissions and Other Transfers.

This is a project involving the Receiver's efforts to recover commissions and/or other transfers from individuals and/or entities who received commissions or other improper transfers from the Receivership Entities. (See Ex. 2 § V.F and Ex. 3 § V.E.3.) The Receiver did not charge any fees or incur any costs for this matter for the time covered by this Motion. II. Fowler White Boggs P.A. and Wiand Guerra King P.L. A. Fowler White Boggs P.A.

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The Receiver requests the Court award Fowler White fees for professional services rendered and costs incurred from September 1, 2009, through January 31, 2010,5 in the amounts of $282,156.10 and $7,088.31, respectively. A categorization and summary of all costs for which Fowler White seeks reimbursement is attached hereto as Exhibit 13. As an accommodation to the Receiver, Fowler White reduced the hourly rates of the Receiver's counsel as provided in the Fee Schedule attached hereto as Exhibit 14. Fowler White started providing services immediately upon the appointment of the Receiver. The activities of Fowler White for the time covered by this Motion are set forth in the Interim Report. (See Exs. 2 and 3.) Fowler White has billed time for these activities in accordance with the Billing Instructions. B. Wiand Guerra King P.L.

The Receiver requests the Court award WGK fees for professional services rendered and costs incurred from November 8, 2009, through January 31, 2010, in the amounts of $361,686.10 and $11,337.34, respectively. A categorization and summary of all costs for which WGK seeks reimbursement is attached hereto as Exhibit 15. WGK also requests that $1,605.00 be paid to Tampa Legal Copies for costs that were incurred during this period, but have not yet been paid. A copy of the statement setting forth these costs is attached hereto as Exhibit 16.

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While the Receiver and most of the attorneys who devoted time to the Receivership left Fowler White on November 6, 2009, the Receiver has continued to utilize select Fowler White attorneys to continue work on certain matters related to the Receivership where such use is in the best interests of the Receivership.

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As an accommodation to the Receiver, WGK agreed to reduce the hourly rates of the Receiver's counsel in accordance with the discounted fee structure that was in place at Fowler White as provided in Exhibit 14. WGK began providing services on November 8, 2009. The activities of WGK for the time covered by this Motion are set forth in the Fifth Interim Report. (See Ex. 3.) WGK has billed time for these activities in accordance with the Billing Instructions. C. The Receivership.

As discussed above, during the relevant period of this Receivership, the work of the Receiver, Fowler White, and WGK focused on investigating the fraud and related activities underlying this matter; locating and taking control of Receivership assets; investigating, pursuing, and recovering additional assets for the Receivership; and instituting litigation as detailed in the Interim Report. (Exs. 2 and 3.) A copy of the statement summarizing the services rendered and costs incurred by Fowler White for the foregoing from September 1, 2009, through January 31, 2010, is attached hereto as Exhibit 17. Fowler White's time and fees for services rendered on this matter for each Activity Category are as follows: Receivership Fowler White's Time and Fees for Services Rendered Activity Category Asset Analysis and Recovery Asset Disposition Business Operations Case Administration Claims Administration TOTAL Hours Expended Fee Amount 389.50 $85,808.90 351.40 $63,242.00 129.40 $23,348.70 373.30 $57,564.00 .20 $28.00 1,243.80 $229,991.60

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A copy of the statement summarizing the services rendered and costs incurred by WGK for the foregoing from November 8, 2009, through January 31, 2010, is attached hereto as Exhibit 18. WGK's time and fees for services rendered on this matter for each Activity Category are as follows: Receivership WGK's Time and Fees for Services Rendered Activity Category Asset Analysis and Recovery Asset Disposition Business Operations Case Administration Claims Administration TOTAL D. Hours Expended Fee Amount 131.20 $28,231.85 167.40 $34,141.75 41.70 $5,345.80 81.60 $15,628.95 11.20 $2,786.85 433.10 $86,135.20

Discrete Litigation Matters and Projects.

Fowler White and WGK professionals also provided services in connection with the five litigation matters and/or projects discussed above. 1. Home Front Homes Litigation.

This was a lawsuit against Brian C. Bishop, a former employee who also had an ownership interest in Home Front Homes, LLC ("Home Front Homes") an operating business. (See also Ex. 2 § V.A.8 and Ex. 3 § V.A.8.) Although the litigation settled, Mr. Bishop did not comply with the terms of the settlement, and the Receiver had to initiate contempt proceedings against him. (See also id.) This matter has since been resolved. The resolution will be set forth in the Receiver's next interim report. A copy of the statement summarizing Fowler White's services rendered and costs incurred from September 1, 2009,

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through January 31, 2010, for this project is attached hereto as Exhibit 19. Fowler White's time and fees for services rendered on this matter for each Activity Category are as follows: Home Front Homes Litigation Fowler White's Time and Fees for Services Rendered Hours Expended 1.60 .60 11.80 2.10 16.10

Activity Category Asset Analysis and Recovery Asset Disposition Business Operations Case Administration TOTAL

Fee Amount $378.95 $189.00 $2,144.20 $320.75 $3,032.90

A copy of the statement summarizing WGK's services rendered and costs incurred from November 8, 2009, through January 31, 2010, for this project is attached hereto as Exhibit 20. WGK's time and fees for services rendered on this matter for each Activity Category are as follows: Home Front Homes Litigation WGK's Time and Fees for Services Rendered Hours Expended 2.80 37.90 5.30 0.20 46.20

Activity Category Asset Analysis and Recovery Asset Disposition Business Operations Case Administration TOTAL 2.

Fee Amount $608.85 $7,535.30 $1,037.70 $0.00 $9,181.85

Carolina Mountain Land Conservancy.

This is a project involving the recovery of a conservancy easement that Laurel Mountain Preserve, LLC, granted to the Carolina Mountain Land Conservancy. (See also Ex. 2 § V.A.3 and Ex. 3 § V.A.3.) A copy of the statement summarizing Fowler White's

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services rendered and costs incurred from September 1, 2009, through January 31, 2010, for this project is attached hereto as Exhibit 21. Fowler White's time and fees for services rendered on this matter for each Activity Category are as follows: Carolina Mountain Land Conservancy Fowler White's Time and Fees for Services Rendered Hours Expended 15.50 .60 16.10

Activity Category Asset Analysis and Recovery Case Administration TOTAL

Fee Amount $3,277.85 $89.35 $3,367.20

A copy of the statement summarizing WGK's services rendered and costs incurred from November 8, 2009, through January 31, 2010, for this project is attached hereto as Exhibit 22. WGKs time and fees for services rendered on this matter for each Activity Category are as follows: Carolina Mountain Land Conservancy WGK's Time and Fees for Services Rendered Hours Expended 34.80 34.80

Activity Category Asset Analysis and Recovery TOTAL 3.

Fee Amount $10,664.50 $10,664.50

Recovery of False Profits from Investors.

This is a project involving the Receiver's efforts to recover profits from investors whose purported accounts received monies in an amount that exceeded their investments. (See also Ex. 2 § V.D and Ex. 3 § V.D.) These purported profits were false because they were not based on any trading or investment gain, but rather were fruits of a Ponzi scheme that consisted of funds of new and existing investors. A copy of the statement summarizing

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Fowler White's services rendered and costs incurred from September 1, 2009, through January 31, 2010, for this project is attached hereto as Exhibit 23. Fowler White's time and fees for services rendered on this matter for each Activity Category are as follows: Recovery from Investors Fowler White's Time and Fees for Services Rendered Hours Expended 105.30 1.00 106.30

Activity Category Asset Analysis and Recovery Case Administration TOTAL

Fee Amount $26,903.85 $166.00 $27,069.85

A copy of the statement summarizing WGK's services rendered and costs incurred from November 8, 2009, through January 31, 2010, for this project is attached hereto as Exhibit 24. WGK's time and fees for services rendered on this matter for each Activity Category are as follows: Recovery from Investors WGK's Time and Fees for Services Rendered Hours Expended 836.90 4.70 841.60

Activity Category Asset Analysis and Recovery Case Administration TOTAL

Fee Amount $212,694.10 $616.00 $213,310.10

The Receiver also retained the services of Johnson, Pope, Bokor, Ruppel & Burns, LLP. ("Johnson Pope") to institute and pursue one action against a profiteer. WGK was unable to bring this action because it had a representation conflict with the defendant. Johnson Pope began providing services on January 18, 2010. The activities of Johnson Pope for the time covered by this Motion are set forth in the Fifth Interim Report. (See Ex. 3.)

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Johnson Pope has billed time for these activities in accordance with the Billing Instructions. The Receiver requests the Court award Johnson Pope fees for professional services rendered and costs incurred from January 18, 2010 through January 31, 2010, in the amounts of $1,310.00 and $360.20, respectively. A copy of the statement summarizing Johnson Pope's services rendered and costs incurred from November 9, 2009, through January 31, 2010, for this project is attached hereto as Exhibit 25. Johnson Pope's time and fees for services rendered on this matter for each Activity Category are as follows: Recovery from Investors Johnson Pope's Time and Fees for Services Rendered Hours Expended 5.50 5.50

Activity Category Asset Analysis and Recovery TOTAL 4.

Fee Amount $1,310.00 $1,310.00

Recovery of Assets from the Moodys.

This is a project involving the Receiver's efforts to recover money and assets from Christopher D. Moody and Neil V. Moody. (See also Ex. 2 § V.E and Ex. 3 §§ V.D and V.E.2.) A copy of the statement summarizing Fowler White's services rendered and costs incurred from September 1, 2009, through January 31, 2010, for this project is attached hereto as Exhibit 26. Fowler White's time and fees for services rendered on this matter for each Activity Category are as follows:

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Recovery of Assets from Chris and Neil Moody Fowler White's Time and Fees for Services Rendered Hours Expended 86.30 .10 0.80 87.20

Activity Category Asset Analysis and Recovery Asset Disposition Case Administration TOTAL

Fee Amount $15,230.35 $14.00 $112.00 $15,356.35

A copy of the statement summarizing WGK's services rendered and costs incurred from November 8, 2009, through January 31, 2010, for this project is attached hereto as Exhibit 27. WGK's time and fees for services rendered on this matter for each Activity Category are as follows: Recovery of Assets from Chris and Neil Moody WGK's Time and Fees for Services Rendered Hours Expended 150.00 2.60 .10 152.70

Activity Category Asset Analysis and Recovery Asset Disposition Case Administration TOTAL 5.

Fee Amount $38,135.95 $826.50 $14.00 $38,976.45

Recovery of Commissions and Other Transfers.

This is a project involving the Receiver's efforts to recover commissions and/or other transfers from individuals and/or entities who received commissions or other improper transfers from the Receivership Entities. (See Ex. 2 § V.F and Ex. 3 § V.E.3.) A copy of the statement summarizing Fowler White's services rendered and costs incurred from September 1, 2009, through January 31, 2010, for this project is attached hereto as Exhibit 28. Fowler

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White's time and fees for services rendered on this matter for each Activity Category are as follows: Recovery of Commissions and Other Transfers Fowler White's Time and Fees for Services Rendered Hours Expended 13.00 13.00

Activity Category Asset Analysis and Recovery TOTAL

Fee Amount $3,338.20 $3,338.20

A copy of the statement summarizing WGK's services rendered and costs incurred from November 8, 2009, through January 31, 2010, for this project is attached hereto as Exhibit 29. WGK's time and fees for services rendered on this matter for each Activity Category are as follows: Recovery of Commissions and Other Transfers WGK's Time and Fees for Services Rendered Hours Expended 12.90 12.90

Activity Category Asset Analysis and Recovery TOTAL III. PDR Certified Public Accountants.

Fee Amount $3,418.00 $3,418.00

The Receiver requests the Court award PDR fees for professional services rendered and costs incurred from September 1, 2009 through January 31, 2010 in the amounts of $112,963.50 and $81.30,6 respectively. PDR started providing services for the Receivership on January 22, 2009. PDR has billed time for these services in accordance with the Billing Instructions. Because PDR's work for the period covered by this motion could be allocated
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This cost was incurred for purchasing new checks for Receivership Entities.

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to specific Receivership Entities and/or related entities, PDR has billed its time separately for each entity and indicated the appropriate Activity Category for each time entry.7 Copies of the statements summarizing the services rendered and costs incurred for the pertinent period are attached as composite Exhibit 30. The total hours billed by each PDR professional and their respective total amount of billing are set forth on composite Exhibit 30. PDR's

statements also include a summary of the total time spent on each relevant Activity Category in connection with each Receivership Entity (or "project" as identified in the Billing Instructions). For a discussion of entities delineated in the statements, please refer to

Sections III and V.A of the Interim Report. IV. Riverside Financial Group. The Receiver requests the Court award Riverside fees for professional services rendered from September 1, 2009 through January 31, 2010 in the amount of $3,113.75. Riverside started providing services for the Receivership on January 27, 2009. Riverside has

The Activity Categories that apply to PDR and Riverside as set forth in the Billing Instructions for Financial Activities are as follows: (1) Accounting/Auditing, which is defined as activities related to maintaining and auditing books of account, preparation of financial statements and account analysis; (2) Business Analysis, which is defined as preparation and review of company business plan; development and review of strategies; preparation and review of cash flow forecasts and feasibility studies; (3) Corporate Finance, which is defined as review financial aspects of potential mergers, acquisitions and disposition of company or subsidiaries; (4) Data Analysis, which is defined as management information systems review, installation and analysis, construction, maintenance and reporting of significant case financial data, lease rejection, claims, etc.; (5) Status Reports, which is defined as preparation and review of periodic reports as may be required by the Court; (6) Litigation Consulting, which is defined as providing consulting and expert witness services relating to forensic accounting, etc.; (7) Forensic Accounting, which is defined as reconstructing books and records from past transactions and bringing accounting current, tracing and sourcing assets; (8) Tax Issues, which is defined as analysis of tax issues and preparation of state and federal tax returns; and (9) Valuation, which is defined as appraising or reviewing appraisals of assets.

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billed time for these services in accordance with the Billing Instructions.

Because

Riverside's work for the period covered by this motion could be allocated to specific Receivership Entities and/or related entities, Riverside has billed its time separately for each entity and indicated the appropriate Activity Category for each time entry. Copies of the statements summarizing the services rendered, the hours billed, and the total amount of billing by Riverside for the pertinent period are attached as composite Exhibit 31. For a discussion of entities delineated in the statements, please refer to Section III and V.A of the Interim Report. V. E-Hounds, Inc. The Receiver requests the Court award E-Hounds fees for professional services rendered for September 1, 2009, through January 31, 2010, in the amount of $4,281.25. EHounds started providing services for the Receivership on January 22, 2009. The activities of E-Hounds for the time covered by this Motion are described in the Interim Report. (See Ex. 2 § IV.A and Ex. 3 § IV.A.) Copies of the statements summarizing the services rendered for the pertinent period are attached as composite Exhibit 32. MEMORANDUM OF LAW It is well settled that this Court has the power to appoint a receiver and to award the receiver and those appointed by him fees and costs for their services. See, e.g., SEC v. Elliott, 953 F.2d 1560 (11th Cir. 1992) (receiver is entitled to compensation for faithful performance of his duties); Donovan v. Robbins, 588 F. Supp. 1268, 1272 (N.D. Ill. 1984) ("[T]he receiver diligently and successfully discharged the responsibilities placed upon him by the Court and is entitled to reasonable compensation for his efforts."); SEC v. Custable, No. 94-

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C-3755, 1995 WL 117935 (N.D. Ill. Mar. 15, 1995) (receiver is entitled to fees where work was of high quality and fees were reasonable); SEC v. Mobley, No. 00-CV-1316, 1317RCC, 2000 WL 1702024 (S.D.N.Y. Nov. 13, 2000) (court awarded reasonable fees for the receiver and his professionals); see also (Doc. 8, Order Appointing Receiver, at p. 14). The

determination of fees to be awarded is largely within the discretion of the trial court. See Monaghan v. Hill, 140 F.2d 31, 34 (9th Cir. 1944). In determining reasonable compensation for the services rendered by the Receiver and his Professionals, the Court should consider the circumstances surrounding the receivership. See Elliot, 953 F.2d at 1577. Here, because of the nature of this case, it was necessary for the Receiver to employ attorneys and accountants experienced and familiar with financial frauds, federal receiverships, securities laws, banking, finance, and trusts and estates. Further, in order to perform the services required and achieve the results obtained to date, the skills and experience of the Receiver and the Professionals in the areas of fraud, securities, computer and accounting forensics, and financial transactions were indispensable. As discussed above, the Receiver, Fowler White and WGK have discounted their normal and customary rates as an accomodation to the Receivership and to conserve Receivership assets. The rates charged by the attorneys and paralegals are at or below those charged by attorneys and paralegals of comparable skill from other law firms in the Middle District of Florida. This case has been time-intensive for the Receiver and his Professionals because of the need to resolve many issues rapidly and efficiently. The attached Exhibits detail the time, nature and extent of the professional services rendered by the Receiver and his Professionals

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for the benefit of investors, creditors, and other interested parties. The Receiver anticipates that additional funds will be obtained through the Receiver's negotiations or litigation with third parties. Although the Commission investigated and filed the initial pleadings in this case, the Receiver has assumed the primary responsibility for the investigation and forensic analysis of the events leading to the commencement of the pending lawsuits, the efforts to locate and gather investors' money, the determination of investor and creditor claims and any ultimate payment of these claims. While the Receiver is sensitive to the need to conserve the

Receivership Entities' assets, he feels that the fees and costs expended to date were reasonable, necessary, and benefited the Receivership. Notably, the Commission has no objection to the relief sought in this motion. Custable, 1995 WL 117935, *7 ("In securities law receiverships, the position of the SEC in regard to the awarding of fees will be given great weight."). CONCLUSION Under the terms and conditions of the Order Appointing Receiver, the Receiver, among other things, is authorized, empowered, and directed to engage professionals to assist him in carrying out his duties and obligations. The Order further provides that he apply to the Court for authority to pay himself and his Professionals for services rendered and costs incurred. In exercising his duties, the Receiver has determined that the services rendered and their attendant fees and costs were reasonable, necessary, advisable, and in the best interest of the Receivership.

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WHEREFORE, Burton W. Wiand, the Court-appointed Receiver, respectfully requests that this Court award the following sums and direct that payment be made from the Receivership assets:8 Burton W. Wiand, Receiver Fowler White Boggs P.A. Wiand Guerra King P.L. Tampa Legal Copies Johnson, Pope, Bokor, Ruppel & Burns, LLP PDR Certified Public Accountants Riverside Financial Group E-Hounds, Inc. $51,450.00 $289,244.41 $373,023.44 $1,605.00 $1,670.20 $113,044.80 $3,113.75 $4,281.25

LOCAL RULE 3.01(g) CERTIFICATION OF COUNSEL The undersigned counsel for the Receiver is authorized to represent to the Court that the SEC has no objection to the Court's granting this motion.

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A proposed order is attached as Exhibit 33.

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CERTIFICATE OF SERVICE I HEREBY CERTIFY that on April 20, 2010, I presented to the Clerk of the Court for electronically filing the foregoing. I further certify that I will mail the foregoing document and the notice of electronic filing by first-class mail to the following non-CM/ECF participants once it has been electronically filed: Arthur G. Nadel Register No. 50690-018 MCC New York Metropolitan Correctional Center 150 Park Row New York, NY 10007

s/Gianluca Morello Gianluca Morello, FBN 034997 Email: [e-mail] WIAND GUERRA KING P.L. 3000 Bayport Drive Suite 600 Tampa, FL 33607 Tel.: [phone] Fax: [phone] Attorney for the Receiver Burton W. Wiand

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RECEIVER'S CERTIFICATION The Receiver has reviewed this Fifth Interim Motion for Order Awarding Fees, Costs, and Reimbursement of Costs to Receiver and His Professionals (the "Motion"). To the best of the Receiver's knowledge, information, and belief formed after reasonable inquiry, the Motion and all fees and expenses herein are true and accurate and comply with the Billing Instructions provided to the Receiver by the Securities and Exchange Commission. All fees contained in the Motion are based on the rates listed in the Fee Schedule, attached as Exhibit 14. Such fees are reasonable, necessary, and commensurate with (if not below the hourly rate that is commensurate with) the skill and experience required for the activity performed. The Receiver has not included in the amount for which reimbursement is sought the amortization of the cost of any investment, equipment, or capital outlay (except to the extent that any such amortization is included within the permitted allowable amounts set forth in the Billing Instructions for photocopies and facsimile transmission). To the extent the Receiver seeks reimbursement for any service which the Receiver justifiably purchased or contracted for from a third party (such as copying, imaging, bulk mail, messenger service, overnight courier, computerized research, or title and lien searches), the Receiver has requested reimbursement only for the amount billed to the Receiver by the third-party vendor and/or paid by the Receiver to such vendor. The Receiver is not making a profit on such reimbursable service. s/Burton W. Wiand Burton W. Wiand, as Receiver