Securities and Exchange Commission v. Chen et al

Filing 142

ORDER granting in part Receiver's 138 Application re: First Quarterly Application for Compensation and Reimbursement of Receiver and of Foster Garvey as Receiver's Counsel. The Court APPROVES on an interim basis the application am ounts as described and ORDERS that the Receiver is authorized to disburse 80% of the foregoing approved fees and costs at this time. Signed by Judge James L. Robart. (LH) Modified to add additional text and re-generated NEF to all parties on 2/18/2022 (LH).

Case 2:17-cv-00405-JLR Document 142 Filed 02/18/22 Page 1 of 3

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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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v.

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Defendants.

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ORDER REGARDING FIRST FEE
APPLICATION

ANDY SHIN FONG CHEN, et al.,

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Plaintiff,

CASE NO. C17-0405JLR

Before the court is the first quarterly application for compensation and
reimbursement of expenses of: (1) Receiver Geoffrey B. Winkler (“the Receiver”) in the
amounts of $6,293.50 in fees and $0.00 in costs; and (2) the Receiver’s counsel, Tara J.
Schleicher and Foster Garvey P.C. (collectively, “Foster Garvey”), in the amounts of
$5,591.15 in fees and $12.74 in costs. (1st Fee App. (Dkt # 138); 1st Fee Notice (Dkt.
# 139).) The Receiver and Foster Garvey seek an order authorizing disbursement of
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ORDER - 1

Case 2:17-cv-00405-JLR Document 142 Filed 02/18/22 Page 2 of 3

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100% of the total requested fees and costs. (See id.) No party has filed an opposition to

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any of the foregoing fee applications. (See generally Dkt.)

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The court finds that the fees and costs represented in the instant fee application are

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reasonable and necessary, notice of the fee application was appropriate, and the services

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provided were of substantial benefit to the estate. The fee application, however, is not in

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accord with the court’s order appointing a receiver insofar as it seeks an order authorizing

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disbursement of 100% of the total requested fees and costs. (Compare Order Appt.

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Receiver (Dkt. # 130) ¶ 59, with 1st Fee App. at 2.) Pursuant to the court’s order

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appointing a receiver,

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Quarterly Fee Applications will be subject to a holdback in the amount of
20% of the amount of fees and expenses for each application filed with the
[c]ourt. The total amounts held back during the course of the receivership
will be paid out at the discretion of the [c]ourt as part of the final fee
application submitted at the close of the receivership.

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(See Order Appt. Receiver ¶ 59.)

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Accordingly, the court GRANTS IN PART the fee application listed above and
APPROVES on an interim basis the following application amounts:
Applicant:
Foster Garvey

The Receiver

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ORDER - 2

Period:
November 1,
2021, through
December 31,
2021
November 23,
2021, through
December 31,
2021

Fees:
$5,591.15

Costs:
$12.74

Total:
$5,603.89

$6,293.50

$0.00

$6,293.50

Case 2:17-cv-00405-JLR Document 142 Filed 02/18/22 Page 3 of 3

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The court further ORDERS that the Receiver is authorized to disburse 80% of the

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foregoing approved fees and costs at this time to the foregoing respective applicants, as

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described below:

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(1) The court AUTHORIZES the Receiver to disburse $4,483.11 to Foster
Garvey.

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(2) The court AUTHORIZES the Receiver to disburse $5,034.80 to the Receiver.

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Dated this 18th day of February, 2022.

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A

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JAMES L. ROBART
United States District Judge

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ORDER - 3