Securities and Exchange Commission v. Alleca et al

Filing 75

OPINION AND ORDER GRANTING Receiver Robert D. Terry's 68 Motion for Attorney Fees. The Receiver is authorized to pay $15,752.95 to the law firm of Berger Harris. Signed by Judge William S. Duffey, Jr on 10/8/2013. (anc) Modified on 10/10/2013 in order to update docket text (anc).

IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
v.

1:12-cv-3261-WSD

ANGELO A. ALLECA, SUMMIT
WEALTH MANAGEMENT, INC.,
SUMMIT INVESTMENT FUND,
LP, ASSET DIVERSIFICATION
FUND, LP, and PRIVATE CREDIT
OPPORTUNITIES FUND, LLC,
Defendants.

OPINION AND ORDER
This matter is before the Court on Robert D. Terry, the Court-appointed
receiver, (“Receiver”)’s Motion for Attorneys’ Fees [68].
I.

BACKGROUND
This action involves alleged violations of securities laws by Defendants,

resulting in significant investment losses by numerous investors. On September
19, 2012, the Court entered a permanent injunction against Defendants enjoining
them from violating certain securities laws, freezing Defendants’ assets, and

requiring an accounting of assets. On September 21, 2012, the Court appointed
Robert D. Terry as Receiver for the estates of Defendants Summit Wealth
Management, Inc., Summit Investment Fund LP, Asset Class Diversification Fund,
LP, and Private Credit Opportunities Fund, LLC (the “Receivership Entities”). On
November 21, 2012, the Court entered an order authorizing the Receiver to recover
and secure the assets of the Receivership Entities.
II.

DISCUSSION
The Receiver moves for the approval of attorneys’ fees incurred by the

Receiver in connection with the defense of a civil action filed against Summit in
the chancery court of Delaware. The Receiver states he was required to defend the
lawsuit from September 21, 2012, until January 17, 2013, and was required to
retain the law firm of Berger Harris as Delaware counsel. The Receiver further
states that the lawyers at Berger Harris agreed to discounted billing rates and to
accept deferred payments, recognizing that payments for legal services must be
approved by the Court. The Delaware action is presently stayed, and the Receiver
anticipates no further activity during the remainder of the receivership.
The total amount owed to Berger Harris is $15,752.95. The Court has
reviewed the invoices for the legal services performed and finds that the rates
charged and hours billed are reasonable under the circumstances. The Receiver’s

2

motion to pay Berger Harris’ fees from the receivership estate is granted.
III.

CONCLUSION
Accordingly, for the foregoing reasons,
IT IS HEREBY ORDERED that Receiver Robert D. Terry’s Motion for

Attorneys’ Fees [68] is GRANTED. The Receiver is authorized to pay $15,752.95
to the law firm of Berger Harris.

SO ORDERED this 9th day of October, 2013.

3