Federal Trade Commission v. Ivy Capital, Inc. et al

Filing 243

ORDER that the receivers recommendations as set forth in 231 are approved in their entirety, as follows in the attached order. Signed by Judge James C. Mahan on 11/2/2011. (Copies have been distributed pursuant to the NEF - SLR)

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RANDOLPH L. HOWARD (Nev. SBN 006688)
KOLESAR & LEATHAM, CHTD.
3320 West Sahara Ave., Suite 380
Las Vegas, NV 89102
Telephone:
[phone]
Facsimile:
[phone]
GARY OWEN CARIS (CA SBN 088918)
E-mail: [e-mail]
LESLEY ANNE HAWES (CA SBN 117101)
E-mail: [e-mail]
MCKENNA LONG & ALDRIDGE LLP
300 South Grand Avenue, 14th Floor
Los Angeles, CA 90071-3124
Telephone:
[phone]
Facsimile:
[phone]
Attorneys for Permanent Receiver
ROBB EVANS & ASSOCIATES LLC

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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FEDERAL TRADE COMMISSION,

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CASE NO. 2:11-cv-00283-JCM-GWF

Plaintiff,
v.
IVY CAPITAL, INC., etc., et al.,

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Defendants, and

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CHERRYTREE HOLDINGS, LLC,
etc., et al.

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Relief Defendants.

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ORDER

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On October 27, 2011, at 10:30 a.m., the court held a status hearing regarding the issue of
legal expenses and attorneys’ fees pursuant to the court’s order entered August 12, 2011 (doc. #
229). Gary Owen Caris of McKenna Long & Aldridge LLP appeared on behalf of the permanent
receiver Robb Evans & Associates LLC (“receiver”); Daniel O. Hanks and Shamika L. Gainey
appeared on behalf of plaintiff Federal Trade Commission, and Emily Cope Burton appeared
telephonically on behalf of plaintiff Federal Trade Commission; David R. Koch of Koch & Scow

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LLC appeared on behalf of Benjamin E. Hoskins, Leanne Hoskins, Oxford Financial, LLC and

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Dream Financial; Joseph S. Kistler of Hutchison & Steffen appeared on behalf of defendants

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Fortune Learning, LLC, The Shipper, LLC, James G. Hanchett and Steven J. Sonnenberg; Chad

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R. Fears appeared on behalf of Ivy Capital, Inc., Kyle Kirschbaum, and several other persons and

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entities referred to as the Ivy Capital defendants; Ann C. Schneider appeared on behalf of

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defendants Christopher M. Zelig, Zyzac Commerce Solutions, Inc., and Curva LLC; and other

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appearances, if any, were as noted in the record. The court, having read and considered the legal

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expense budgets submitted by various defense counsel to the receiver as set forth in the

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Receiver’s Comments Regarding Legal Expense Budgets (doc. # 200), the Receiver’s

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Recommendations Regarding Legal Expense Budgets in Response to Court’s Order entered

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August 12, 2011 (doc. # 231), the revised legal expense budgets filed in response to the court’s

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August 12, 2011 order by various defendants (doc. ## 234, 235 and 236), and all of the other

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pleadings filed with respect to legal expense budgets by the plaintiff and defendants, having heard

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and considered the arguments and contentions of counsel, and good cause being shown therefor,

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it is

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ORDERED that the legal expense budgets and, where applicable, the revised budgets

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submitted to the receiver and the court by defense counsel, are tentatively approved, subject to a

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reasonableness review and changed circumstances; and it is further

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ORDERED that the receiver’s recommendations as set forth in doc. # 231 are approved in
their entirety, as follows:
1.

The defendants’ counsel shall each submit monthly invoices to the receiver

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showing actual fees and costs incurred for the preceding calendar month. Copies of the invoices

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shall be served on counsel for plaintiff and other defendants in order to enable them to review and

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comment. The receiver shall approve and authorize the payment of invoices provided they are

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within the budgeted limit tentatively approved herein and otherwise appear generally reasonable.

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If there is a dispute over the allowance of any portion of the fees and expenses as to any invoice,

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the receiver and/or defense counsel may bring the matter to the attention of the court for

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resolution. The invoices presented to the receiver and parties may be redacted as appropriate to

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preserve the attorney-client privilege.
2.

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For all defendants, approved invoices shall first be paid from income of the

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individual defendants earned after February 22, 2011 other than from telemarketing or other

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prohibited activities, in compliance with the court’s preliminary injunction order. To the extent

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such assets are unavailable, the balance of approved fees and costs shall be paid from frozen

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assets of the individual defendants or relief defendants. Receivership defendants’ funds shall not

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be used to fund any of the approved legal fees and expenses.
3.

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order.

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The receiver may adopt reasonable procedures to implement the terms of this

Dated:

November 2, 2011.
JAMES C. MAHAN
United States District Judge

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CERTIFICATE OF SERVICE

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I am a citizen of the United States and employed in San Francisco County, California. I

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am over the age of eighteen years and not a party to the within-entitled action. My business

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address is 300 South Grand Avenue, 14th Floor, Los Angeles, CA 90071.

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On October 31, 2011, I served the ORDER upon the parties and/or counsel listed and by
the methods indicated on the attached Service List.
I declare upon the penalty of perjury that the foregoing is true and correct, and that I am

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employed in the office of a member of the bar of this court at whose direction the service was

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made. Executed on October 31, 2011 at Los Angeles, California.

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/s/ Pamela A. Coates
Pamela A. Coates

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SERVICE LIST

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The following CM/ECF participants were served by electronic means on October 31,

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2011:

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Steven R. Bartell

[e-mail], [e-mail]

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Emily C. Burton

[e-mail]

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Gary Owen Caris

[e-mail], [e-mail].
[e-mail]

Robert D. Crockett

[e-mail], [e-mail],
[e-mail]

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James I. Edwards

[e-mail]

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Chad R. Fears

[e-mail], [e-mail],
[e-mail]

Shameka L. Gainey

[e-mail]

Tracy Green

[e-mail]

Daniel O. Hanks

[e-mail]

Lesley Anne Hawes

lhawes@mckennalong, [e-mail]

Randolph L. Howard

[e-mail], [e-mail],
[e-mail]

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Mark A. Hutchison

[e-mail]

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Joseph S. Kistler

[e-mail], [e-mail]

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David R. Koch

[e-mail]

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Blair Parker

[e-mail],
[e-mail], [e-mail]

Casey G. Perkins

[e-mail], [e-mail],
[e-mail]

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Ann C. Schneider

[e-mail]

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Robert G. Schoshinski

[e-mail]

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Dotan Weinman

[e-mail]

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Diane L. Welch

[e-mail]

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Blaine T. Welsh

[e-mail], [e-mail],
[e-mail], [e-mail],
[e-mail]

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Jeffrey Willis

[e-mail]

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Steven L. Zelig

[e-mail]

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