Securities and Exchange Commission v. Path America, LLC et al

Filing 629

TENTH ORDER REGARDING FEE APPLICATIONS signed by Judge James L. Robart. The court GRANTS these fee applications ( 625 , 626 , 627 , 628 ) and APPROVES on an interim basis the application amounts for the period of January 1, 2018 through March 31, 2018. (PM)

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UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE

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SECURITIES AND EXCHANGE
COMMISSION,

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Plaintiff,

CASE NO. C15-1350JLR
TENTH ORDER REGARDING
FEE APPLICATIONS

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v.
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PATH AMERICA, LLC, et al.,
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Defendants, and
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POTALA SHORELINE, LLC, et al.,
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Relief Defendants.
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Before the court are four quarterly fee applications: (1) the tenth interim fee

19 application of Receiver Michael A. Grassmueck (“the Receiver”) for $5,381.00 in fees
20 and $586.29 in costs (Dkt. # 626); (2) the tenth interim fee application of the Receiver’s
21 general counsel, Allen Matkins Leck Gamble Mallory & Natsis, LLP (“Allen Matkins”),
22 for $105,563.25 in fees and $2,235.00 in costs (Dkt. # 625); (3) the tenth interim fee
ORDER- 1

1 application of Financial Forensics, the Receiver’s forensic accountant, for $6,534.00 in
2 fees and $6.45 in costs (Dkt. # 628); (4) the seventh interim fee application of Peterson
3 Sullivan LLP, tax accountants for the Receiver, for $27,669.75 in fees and $667.70 in
4 costs (Dkt. # 627). As described below, the court GRANTS the fee applications of the
5 Receiver, Allen Matkins, Financial Forensics, and Peterson Sullivan (Dkt. ## 625-28).
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Counsel for the Receiver filed all of the foregoing motions on May 18, 2018, and

7 properly noted them for the court’s consideration on June 1, 2018. (See id.) Any
8 opposition to the motions was due no later than Tuesday, May 29, 2018. See Local Rules
9 W.D. Wash. LCR 7(d)(3) (“Any opposition papers shall be filed and served no later than
10 the Monday before the noting date.”); see also id., LCR 7(d)(5) (“If the deadline for a
11 party’s response . . . falls on a date that is a legal holiday . . . , the party’s response . . . is
12 due on the following day . . . .”). No party filed an opposition to any of the motions.
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The court finds that (1) the fees and costs requested in each of the fee applications

15 listed above are reasonable and necessary, (2) the notice of the fee applications was
16 appropriate, (3) the fee applications are made in accordance with the Order Appointing
17 Receiver (see Order Appointing Receiver (“OAR”) (Dkt. # 88) ¶¶ 55-59), and (4) the
18 services provided were of substantial benefit to the Receivership Estate. Each of the
19 foregoing applicants seeks a distribution of only 80% of the approved fees and costs at
20 this time. (See id. ¶ 58 (“Quarterly Fee Applications may be subject to a holdback in the
21 amount of 20% of the amount of fees and expenses for each application filed with the
22 Court.”); see also Dkt. # 625 at 2; Dkt. # 626 at 2; Dkt. # 627 at 4; Dkt. # 628 at 4.)
ORDER- 2

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Accordingly, the court GRANTS the fee applications (Dkt. ## 625-28) and

2 APPROVES on an interim basis the following application amounts for the period of
3 January 1, 2018 through March 31, 2018:
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Applicant:

Fees:

Costs:

Total Allowed:

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$5,381.00

$586.29

$5,967.29

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Receiver Michael A.
Grassmueck
Allen Matkins

$105,563.25

$2,235.00

$107,798.25

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Financial Forensics

$6,534.00

$6.45

$6,540.45

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Peterson Sullivan

$27,669.75

$667.70

$28,337.45

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Finally, the court AUTHORIZES the Receiver to disburse the following

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percentages of the foregoing approved fees and costs at this time:
(1) The court AUTHORIZES the Receiver to disburse $4,773.83 to the Receiver,

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which is 80% of the approved fees and costs;

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(2) The court AUTHORIZES the Receiver to disburse $86,238.60 to Allen

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Matkins, which is 80% of the approved fees and costs;

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(3) The court AUTHORIZES the Receiver to disburse $5,232.36 to Financial

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Forensics, which is 80% of the approved fees and costs;

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ORDER- 3

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(4) The court AUTHORIZES the Receiver to disburse $22,669.96 to Peterson

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Sullivan, which is 80% of the approved fees and costs.
Dated this 13th day of June, 2018.

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A

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JAMES L. ROBART
United States District Judge

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ORDER- 4