Securities and Exchange Commission v. Wealth Management LLC et al

Filing 527

ORDER Authorizing Allowance and Payment of Final Compensation and Final Reimbursement of Expenses to (I) Faye B. Feinstein, Receiver for Wealth Management, LLC and the Relief Defendants, and (II) Quarles & Brady, LLP as Counsel to the Receiver signed by Judge William C. Griesbach on 8/16/22. (cc:all counsel and mailed to pro se party)(Griesbach, William)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF WISCONSIN
GREEN BAY DIVISION
SECURITIES AND EXCHANGE COMMISSION,
v.

Plaintiff,

Case No: 09-C-506

WEALTH MANAGEMENT, LLC,
JAMES PUTMAN, and SIMONE FEVOLA,
Defendants, and
WML GRYPHON FUND, LLC;
WML WATCH STONE PARTNERS, L.P.; WML
PANTERA PARTNERS, L.P.; WML PALISADE
PARTNERS, L.P.; WML L3, LLC;
WML QUETZAL PARTNERS, L.P., and
EMPLOYEE SERVICES OF APPLETON, INC.,
Relief Defendants.
ORDER AUTHORIZING ALLOWANCE AND PAYMENT OF FINAL
COMPENSATION AND FINAL REIMBURSEMENT OF EXPENSES TO
(I) FAYE B. FEINSTEIN, RECEIVER FOR WEALTH MANAGEMENT LLC
AND THE RELIEF DEFENDANTS, AND (II) QUARLES & BRADY LLP,
AS COUNSEL TO THE RECEIVER
______________________________________________________________________________
THIS CAUSE, coming to be heard on the Final Status Report and Final Application for
Allowance and Payment of Compensation to, and for Reimbursement of Expenses of, (I) Faye B.
Feinstein, Receiver for Wealth Management LLC and the Relief Defendants, and (II) Quarles &
Brady LLP, as Counsel to the Receiver (the "Application"; all capitalized terms not otherwise
defined herein shall have the meanings ascribed to them in the Application); due and proper notice
of the Application having been served on all entities entitled thereto and no other or further notice
having been required; the Application having included a "Certification of Faye B. Feinstein,
Receiver" (the "Certification"); no objections to the Court's granting of the Application having

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been filed within the time period specified in the Court's related scheduling order entered at Docket
No. 523, and the Court being otherwise fully advised in the premises;
BASED ON ITS REVIEW OF THE APPLICATION AND THE CERTIFICATION AND
ON THE LACK OF OBJECTIONS TO THE SAME, THE COURT HEREBY FINDS
THAT:
1.

Pursuant to (a) the Court's Order Appointing Receiver dated May 20, 2009 (Docket

No. 8) (the "Initial Receiver Order"), and (b) the Court's First Modified Order Appointing Receiver
(Docket No. 14) (the "Modified Receiver Order" and, with the Initial Receiver Order, the
"Appointment Orders"), Faye B. Feinstein (the "Receiver") was duly appointed to serve as
Receiver for Wealth Management, LLC, and the WM Funds, effective May 20, 2009. By order
dated August 18, 2009 (Docket No. 54), the Court extended the receivership to ESA.
2.

Pursuant to the Appointment Orders, the Receiver has retained the attorneys and

other professionals of Quarles & Brady LLP ("Q&B" and, with the Receiver, collectively, the
"Receiver Team") to assist her in performing her duties as Receiver.
3.

This Court has jurisdiction over this matter pursuant to 28 U.S.C. §§754, 1367(a),

and the inherent equitable powers of the Court. Pursuant to Fed. R. Civ. P. 66, the Federal Rules
of Civil Procedure apply to this matter.
4.

The Receiver has represented that the hourly rates charged by the Receiver Team

for services rendered to the Receiver Estate by Q&B attorneys and paraprofessionals who provided
such services represent significant discounts from the ordinary rates charged by those attorneys
and paraprofessionals for similar work performed for other Q&B clients. The rate structures
applied by Q&B to the Application and all Prior Applications were approved by the SEC.

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5.

Before filing the Application, the Receiver submitted it to the SEC for review, as

required by the "Billing Instructions for Receivers in Civil Actions Commenced by the U.S.
Securities and Exchange Commission", dated October 1, 2008 (the "Billing Instructions").
6.

During the Current Period (i.e., from June 1, 2021 through May 31, 2022), the

Receiver Team devoted no less than 290.60 hours to the performance of necessary and valuable
services on behalf of the Receiver Estate.
7.

During the Prior Period (i.e., from the date of the Receiver's appointment through

May 31, 2021), the Receiver Team devoted no less than 8,424.20 hours to the performance of
necessary and valuable services on behalf of the Receiver Estate.
8.

Based upon the time, nature, extent, and value of the services performed by the

Receiver Team, the responsibilities assumed by the Receiver Team, the rates charged by the
Receiver Team, the results achieved to date, and the costs of comparable services, the
compensation for services rendered and reimbursement of expenses sought in the Application for
the Current Period and the Prior Period are reasonable, necessary, and commensurate with the skill
and experience required for the activities performed.
9.

The fair value of services rendered by the Receiver Team during the Current Period

is not less than $135,040.70.
10.

Q&B incurred $448.73 in actual and necessary expenses during the Current Period,

all of which are reimbursable pursuant to the Billing Instructions.
11.

The fair value of services rendered by the Receiver Team during the Prior Period is

not less than $2,879,304.00.
12.

Q&B incurred $77,082.14 in actual and necessary expenses during the Prior Period,

all of which are reimbursable pursuant to the Billing Instructions.

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NOW, THEREFORE, IT IS ORDERED, ADJUDGED, AND DECREED that the
Application is GRANTED;
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Receiver Team
is hereby allowed compensation in the sum of $135,040.70 for actual and necessary services
rendered to the Receiver Estate during the Current Period;
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Q&B is hereby
allowed reimbursement of expenses in the sum of $448.73 for actual and necessary expenses
incurred in connection with those services on behalf of the Receiver Estate during the Current
Period;
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the allowances
described above are approved as final;
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Receiver is
hereby authorized to pay to Q&B the Current Period Fees in the sum of $135,040.70 and the
Current Period Expenses in the sum of $448.73 from the assets of the Receiver Estate, to the extent
of funds available in the Receiver Estate, and all such payments are approved as final;
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that all interim awards
of Prior Period Fees, in the aggregate amount of $2,879,304.00, and the payment thereof, are
approved as final, and
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that all interim awards
of Prior Period Expenses, in the aggregate amount of $77,082.14, and the payment thereof, are
approved as final.
Dated this 16th day of August, 2022.
s/ William C. Griesbach
William C. Griesbach
United States District Judge

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