NIGHT BOX UNITED STATES DISTRICT COURT FILE D SOUTHERN DISTRICT OF FLORIDA FORT LAUDERDALE DIVISION MAY 16 2005
CLARENCE MADDOX Case No. 03-80612 CIV-MARRA/VITUNAC CLERK, USDC/SDFL/FTL
SECURITIES AND EXCHANGE COMMISSION
Plaintiff,
V.
MICHAEL LAUER , LANCER MANAGEMENT GROUP, LLC, and LANCER MANAGEMENT GROUP II, LLC ,
Defendants, and
LANCER OFFSHORE, INC ., LANCER PARTNERS, LP, OMNIFUND, LTD., LSPV, INC ., and LSPV, LLC ,
Relief Defendants.
In re:
LANCER PARTNERS L .P., Chapter 11 Cas e Case No . : 04-80211 -CIV-MARRA Debtor.
SUMMARY OF NOTICE OF SIXTH INTERIM APPLICATION FOR AUTHORIZATION TO PAY (I) RECEIVER'S ATTORNEYS' FEES AND COSTS, (II ) RECEIVER'S FEES AND (III) RECEIVER'S INVESTIGATIVE FEES FROM RECEIVERSHIP FUNDS (Request for Relief in Receivership Proceeding Only )
If no party files and se rves an objection to this Notice on or before ten days from the date of service indicated on the Certificate of Se rvice attached hereto, the Receiver shall be Case N.,. 03-80612 CIV -MARRAJVITUNAC
automatically empowered to perform the intended action without further order from this Court. '
1 . Name of Applicant Hunton & Williams LLP 2 . Role of Applicant Counsel for the Receive r 3 . Name of certifying professional Craig V . Rasile 4 . Date Case Filed July 8, 200 3 5 . Date of Application for Employment October 3, 200 3 6 . Date of Order approving employment October 14, 2003 (nunc pro tunc to July 10, 2003 ) 7. Date of Order appointing Receiver July 10, 2003 8. Date of this Application May 26, 200 5 9. Date of services covered December 1, 2004 through March 31, 200 5 Fees. . . 10. Total fee requested for this period (from Exhibit 1-A) $1,241,257.23 11 . Balance remaining in fee retainer account, not yet awarded $0.00 12. Fees paid or advanced for his period, by other sources $0.00 13 . Net amount of fee requested for this perio d $1,241,257.23 Expenses. . . 14 . Total expense reimbursement requested for this period $79,982.60 15 . Balance remaining in expense retainer account, not yet received $0.00 16 . Expenses paid or advanced for this period, by other sources $0.00 17. Net amount of expense reimbursements requested fo r $79,982.60 this period 18 . Gross award requested for this period (#10 + #14) $1,321,239.83 19 . Net award requested for this period (#13 + #17) $1,321,239.83
'Pursuant to the Court's January 8, 2004 Case Management Order, no compensation will be paid by the Receiver before the Court enters an order awarding such compensation or (30) thirty days after this Notice of Compensation to ensure that even if no party in interest objects within ten (10) days of service, the Court will have an additional twenty (20) days to consider the Notice of Compensation and, if the court deems necessary, schedule a hearing on the Notice of Compensation .
2 Case N.,. 03-80612 CIV-MARRA/VITUNAC
History of Fees and Expenses
Dates covered by first application July 10 , 2003 through September 30, 2003 1 . Dates, sources, and amounts of retainers received : Dates Sources Amounts For fees and costs None 2. Dates, sources, and amounts of third party payments received : Dates Sources Amounts For fees and costs None 3 . Prior Fee and expense award to Hunton & Williams LLP $994,532 .86 Prior Fee and expense award to Turnstone Investigation Group $166,537 .89 Prior Fee and expense award to the Receiver $55,600 .00
Dates covered by second application: October 1, 2003 through November 30, 2003
1 . Dates, sources, and amounts of retainers received: Dates Sources Amounts For fees and costs None 2. Dates, sources, and amounts of third party payments received : Dates Sources Amounts For fees and costs None 3 . Prior Fee and expense award to Hunton & Williams LLP $653,508 .46 Prior Fee and expense award to Turnstone Investigation Group $42,570 .00 Prior Fee and expense award to the Receiver $32,300 .00
Dates covered by third application: December 1, 2003 through February 29, 2004
1 . Dates, sources , and amounts of retainers received : Dates Sources Amounts For fees and costs None 2 . Dates, sources , and amounts of third party payments received: Dates Sources Amounts For fees and costs None 3 . Prior Fee and expense request on behalf of Hunton & Williams LLP $975,658 .21 Prior Fee and expense request on behalf of Tu rnstone Investigation Group $32,856.00 Prior Fee and expense request on behalf ofthe Receiver $ 13,800 .00
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Dates covered by fourth application : March 1, 2004 through June 30, 2004
1 . Dates, sources, and amounts of retainers received : Dates Sources Amounts For fees and costs None 2. Dates, sources, and amounts of third party payments received : Dates Sources Amounts For fees and costs None 3 . Prior Fee and expense request on behalf of Hunton & Williams LLP $1,365,512 .30 Prior Fee and expense request on behalf of Turnstone Investigation Group $49,219 .50 Prior Fee and expense request on behalf of the Receiver $86,254 .80
Dates covered by fifth application : July 1, 2004 through November 30, 2004 (Fees requested but not yet awarded )
1 . Dates, sources, and amounts of retainers received: Dates Sources Amounts For fees and costs None 2 . Dates, sources , and amounts of third party payments received: Dates Sources Amounts For fees and costs None 3 . Prior Fee and expense request on behalf of Hunton & Williams LLP $1,557, 389.10 Prior Fee and expense request on behalf of Tu rnstone Investigation Group $53,395 .80 Prior Fee and expense request on behalf of the Receiver $63.040.00
4 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORID A FORT LAUDERDALE DIVISION Case No. 03-80612 CIV-MARRA/VITUNAC
SECURITIES AND EXCHANGE COMMISSION
Plaintiff,
V.
MICHAEL LAUER, LANCER MANAGEMENT GROUP , LLC, and LANCER MANAGEMENT GROUP II, LLC,
Defendants, and
LANCER OFFSHORE, INC ., LANCER PARTNERS, LP, OMNIFUND, LTD . , LSPV, INC., and LSPV, LLC ,
Relief Defend ants.
In re:
LANCER PARTNERS L.P., Chapter 11 Case Case No . : 04-80211 -CIV-MARRA Debtor.
NOTICE OF RECEIVER'S SIXTH INTERIM APPLICATION FOR AUTHORIZATION TO PAY (I) RECEIVER'S ATTORNEYS' FEES AND COSTS . (II) RECEIVER'S FEES AND (III) RECEIVER'S INVESTIGATIVE FEES FROM RECEIVERSHIP FUNDS (Request for Relief in Receivership Proceeding Only )
If no party files and serves an objection to this Notice on or before ten days from the date of service indicated on the Certificate of Service attached hereto, the Receiver shall be automatically empowered to perform the intended action without further order from this Court . 2
2Pursuant to the Court' s January 8, 2004 Case M anagement Order, no compensation will be paid by the Receiver before the Court enters an order awarding the compensation or (30 ) thirty days after this Notice of Compensation to ensure that even if no party in interests objects wi thin ten (10 ) days of service, the Court will have (continued . . . ) Case Iv ,,. 03-80612 CIV -MARRA/VITUNAC
Marty Steinberg, Esq ., court-appointed receiver (the "Receiver") of Lancer Management
Group LLC ("Lancer"), Lancer Management Group II LLC ("Lancer II"), Lancer Offshore Inc .
("Offshore"), Omnifund Ltd . ("Omnifund"), LSPV Inc . ("Offshore LSPV"), LSPV LLC
("Partners LSPV"), Alpha Omega Group Inc. ("Alpha Omega") and G.H. Associates LLC
("G.H . Associates")("G .H. Associates" together with Offshore, Omnifund, Offshore LSPV,
Partners LSPV, Lancer, Lancer II and Alpha Omega, the "Receivership Entities"), and the responsible person in control of Lancer Partners, L .P. ("Partners") ("Partners" together with the
Receivership Entities, the "Lancer Entities"), through undersigned counsel and pursuant to the
Court's Order Appointing Receiver dated July 10, 2003 (the "Receivership Order"), and the Case
Management Order dated January 8, 2004 (the "CMO"), hereby requests the Court to enter an order authorizing him to pay : (i) the reasonable attorneys' fees and costs incurred by Hunton &
Williams LLP, ("H&W") as reported in this Sixth interim fee notice (the "Notice") ; (ii) the
Receiver's fees as reported in this Notice ; and (iii) the investigative fees for Turnstone
Investigative Group ("TIG"), a subsidiary of H&W, as reported in this Notice, for the period July
1, 2004 through November 30, 2004, (the "Application Period") .
Pursuant to the powers granted to the Receiver under the Receivership Order, the
Receiver has employed, and the Court has approved, the Receiver's retention of H&W and TIG, a subsidiary of H&W .
By this Notice, the Receiver requests authority to pay his professionals for their fees and costs for services rendered during the Application Period, from the Receivership Entities, a s
an additional twenty (20) days to consider the Notice of Compensation and, if the Court deems necessary, schedule a hearing on the Notice of Compensation .
6 Case N., . 03-80612 CIV -MARRA /VITUNAC
follows: H&W, in the amount of $1,174,516 .23 for fees and $79,982 .60 in costs; TIG in the
amount of $48 ,270.00 for fees; and the Receiver in the amount of $18,471 .00 for fees for a total
award of $1,321,239.83 .3
DESCRIPTION OF SERVICES
During the Application Period, H&W, TIG and the Receiver rendered extensive and
necessary services for and on behalf of the estates of the Receivership Entities , as set forth
below. The following categories describe the services rendered and summarize the fees
requested by H&W, TIG and the Receiver during the Application Period . Pursuant to Court
Order, the invoices and additional suppo rt for this Notice will be filed with the Court under seal .
1. Hunton & Williams . LLP
1 . Case Administratio n
During the Application Period, H&W continued to advise and confer with the Receiver and interested parties in respect of the progress of the receivership case . H&W consulted with the Steering Committee and various investor constituents about an effort to move the case toward an interim distribution to investors, the possibilities of in kind distributions, and strategies for an ultimate plan of distribution, including the possible substantive consolidation of the Funds 4
'This Application does not include fees and expenses incurred for Partners, which is not a Receivership Entity. All fees and expenses incurred for the exclusive benefit of Partners are being requested by separate application to the Bankruptcy Court. Insofar as the Receivership Entities and Partners have many common portfolio holdings, however, some of the services rendered for the benefit of the Receivership Entities also benefited Partners . The extent and value of the holdings in the various Funds and related entities remains unclear, in large part because the records of the Funds and related entities recovered by the Receiver were incomplete and in disarray. As a result, the Receiver has estimated the fees and costs attributed to each fund based upon each fund's ownership of the various positions in their respective portfolios and the work performed for the benefit of each portfolio . Nevertheless, the Receiver reserves the right to reallocate a portion of the fees and costs incurred by the Receivership Entities to Partners at the appropriate time in the future .
4 The Funds shall be defined herein to include Partners, Offshore, Omnifund, Partners LSPC and Offshore LSPV.
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and/or the Management Companies5 . H&W has also continued extensive dialogue with counsel
for the Group Plaintiffs in respect of the cases and various litigation components, as well as a
form of cooperation agreement to establish a formal framework for joint or common efforts and
sharing information .
During the Application Period, H&W prepared and filed a motion with the Court to approve a protocol to be used for making an interim distribution . The motion had the desired effect of opening up a formal dialogue with the investor constituents about distribution and claim issues. H&W and counsel for the Group Plaintiffs and both bankruptcy committees negotiated and agreed to the form of an order granting a portion of the relief requested in the motion and withdrawing the remainder while the parties continue their dialogue . In particular, the parties agreed that the Receiver should analyze claims based on the net invested capital of each of the investors: that is, on a cash basis the amount of capital invested less the amount of funds redeemed. The only parties to file formal opposition to the Receiver's motion were Michael
Lauer and his one-time counsel, Leonard Hecht. Lauer and Hecht oppose the use of net invested capital for purposes of analyzing claims, and instead support analyzing claims based on the number of shares held by each investor in the Funds . H&W has filed papers in reply to the objections filed by Lauer and Hecht . The motion remains pending .
To further the efforts to conclude several pending matters, H&W filed certain requests for status conferences before the court and advised the court of pending matters, including a comprehensive litigation status report . H&W also worked on a comprehensive status report for the Receiver and the SEC . During the Application Period, H&W participated in multipl e
5 The Management Companies shall be defined herein to include Lancer and Lancer II .
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conferences with the Receiver and various parties, including several conferences with th e
Steering Committee. H&W continued to communicate with investors in connection with transfers oftheir interests.
H&W is requesting $57,077 .85 in attorney's fees for 152 .00 hours in connection wi th
Case Administration.
2. Asset Analysis and Recovery
During the Application Period , H&W continued its analysis of various portfolio companies. Among other things, H&W continued its extensive due diligence regarding Zi
Corporation ("Zi" or "Zi Corp.") and analyzed its control position therein. H&W held numerous conferences with DDJ, the Receiver' s investment advisor, concerning the value of Zi and the direction the Receiver should pursue to maximize the estate ' s interest in Zi . H&W also addressed numerous issues affecting registration rights, securities filings and disclosure issues.
Additionally , H&W, in consultation with DDJ, handled the proxy voting on behalf of the
Receiver for a number of securities held in the portfolio. H&W prepared insider trading repo rts and analyzed employee agreements and director and officer insur ance liability issues for various portfolio companies . H&W reviewed records from transfer agents and portfolio companies regarding holdings . H&W reviewed and analyzed issues relating to transfer restrictions on certain securities and analyzed the potential litigation impact on m any portfolio companies.
H&W also responded to various audit inquiries from portfolio companies and began making demands on certain po rtfolio companies to which L ancer had extended loans.
With respect to the assets of the Receivership Entities, H&W held numerous conferences with DDJ regarding the liquidation of certain securities , auctioning certain investment positions and resolving certain transfer obstacles. H&W researched and analyzed methods for removin g
9 Case No. 03 -80612 CIV-MARRA/VITUNAC
restrictions on certain securities to enable a timely sale of and meaningful recovery from the securities. H&W also held discussions and conference calls with current and former principals and employees of various portfolio companies as part of the overall analysis of the holdings.
H&W also continued to review documents , including public filings, correspondence from various third parties, bank statements , broker statements, financial statements, docket sheets from pertinent pending litigation and EDGAR filings . H&W continued its effo rts to locate, verify and analyze the holdings of the Receivership Entities . H&W also held numerous telephone conferences wi th investors to address questions they had regarding the Funds' holdings, and responded to written inquiries from certain investors .
During the Application Period, H&W continued to review proposed transactions for certain portfolio companies and researched securities laws and issues affecting directors for certain portfolio companies. H&W also addressed issues with respect to the freeze of Lauer's assets, the ownership of certain assets including the GMC Denali SUV, and the use of
Receivership Entities' funds to acquire personal assets by the insiders.
During the course of its investigation, H&W uncovered evidence that Lauer used funds belonging to Offshore to purchase a 1990 Mercedes -Benz C-11-05 racecar, potentially worth millions of dollars, in the name of an entity called CLR Associates, LLC ("CLR") . As a result, on February 1, 2005 the Receiver filed a motion to expand the receivership to include CLR so that the racecar can be returned to the estate for liquidation . Lauer contested the motion . The
Receiver' s motion remains pending before the Court.
Finally, H&W analyzed the impact that avoidance actions and other litigation might have on certain companies remaining in the portfolio. H&W also analyzed documents and
10 Case Nu . 03 -80612 CIV-MARRA/VITUNA C
information in connection with the Lancer Management Group Money Purchase Plan and the securities held by the plan.
H&W is requesting $92,456 .73 in attorney's fees for 335 .90 hours in connection with
Asset Analysis and Recovery .
3 . Asset Disposition
During the Application Period, H&W conferred with DDJ concerning the possible proposals to sell certain securities . H&W spent a significant amount of time addressing investor concern arising from the Receiver's intention to commence with limited sales of Zi Corp . on the public markets. H&W communicated with counsel for the Group Plaintiffs, the bankruptcy committees and other investor groups . H&W coordinated a widely-attended conference call with
DDJ to discuss the strategies with respect to the proposed Zi sales and ultimately found investor support for the proposed transactions . Lauer, on the other hand, filed an emergency motion to halt the sales. H&W responded and Lauer's motion was ultimately denied. Lauer sought reconsideration of the order denying his motion and has recently appealed the order to the United
States Court of Appeals for the Eleventh Circuit . H&W continues to communicate with the investor constituents about the progress of Zi and other securities sales .
In addition, H&W continued to correspond with DDJ with respect to the disposition of certain other portfolio companies and their assets . H&W also conferred with transfer agents concerning the removal of restrictive legends on various securities and continued to field numerous offers for portions of the Funds' portfolios . H&W also continues to field offers for various securities, including from certain portfolio insiders . Finally, H&W is continuing to explore alternative methods for disposing of certain portfolio companies in bulk, including a possible auction sale.
11 Case Nt.. 03-80612 CIV -MARRA/VITUNAC
H&W is requesting $78,536. 35 in attorney' s fees for 260. 10 hours in connection with
Asset Disposition .
4 . Investor/Creditor Communications
H&W continued to respond to investor inquiries through a toll free number, (866) 285-
5897, and an e-mail address, lancer@hunton. com, so investors and other interested parties may contact the Receiver for information at any time . H&W further updated and maintained the
Receiver's web page at www.hunton.com, which has a link that contains relevant information and certain pleadings specific to this matter. H&W is also maintaining an Investor Contact Sheet for future communications and notices. H&W regularly fields investor inquiries through these channels.
During the Application Period, H&W fielded numerous calls from investors wi th general inquiries involving tolling agreements , the claims objection process, late claims , transfer agreements , the disclosure of investments of beneficial owners that might impact an investor's willingness to execute such transfer agreements. During the Application Period, H&W routinely communicated with counsel for individual investors and groups of investors to keep them abreast of the status of significant events in the receivership .
Additionally , during the Application Period, H&W communicated extensively wi th investors and counsel in connection with a common interest and no-trade agreement to facilitate the exchange of information in connection wi th Zi and other portfolio sales, the proposed cooperation agreement with the counsel for the Group Plaintiffs, and the exchange of additional information to certain investor groups .
H&W is requesting $20,313 .72 in attorney' s fees for 67 .90 hours in connection with
Investor Meetings.
12 Case No. 03-80612 CIV -MARRA/VITUNAC
5. Fee/Employment Application s
During the Application Period , H&W prepared its fifth interim fee application and commenced with the preparation of this sixth interim application . H&W also prepared and filed the seventh, eighth and ninth interim fee applications for DDJ and assisted with the preparation and filing of the seventh application for BDPB, as well as applications for Kapila & Co, Sender
& Wasserm an, CBIZ, Fasken Martineau, and Colson Hicks . H&W prepared for and attended the fee hearing on twelve different fee applications on December 28, 2004 and prepared numerous schedules summarizing the applications for the professionals pending at the time .
H&W regularly communicates with DDJ and other professionals in respect of pending fee issues .
H&W is requesting $70,999.97 in attorney's fees for 276 .30 hours in connection with
Fee/Employment Applications .
6. Fee Application/Employment Application Objections :
During the Application Period , the Group Plaintiffs objected to BPDB ' s seventh and
H&W's fifth interim applications . H&W prepared a detailed response to the objection and conferred with counsel for the Group Plaintiffs regarding the same . Finally, Lauer objected to numerous fee applications and H&W responded in similar fashion .
H&W is requesting $24,695 .07 in attorney's fees for 79.80 hours in connection with Fee
Employment Objections.
7. Plan of Distribution
During the Application Period, H&W conferred with the Receiver about the format for a plan of distribution. H&W communicated with the Steering Committee and various counsel regarding the same. H&W prepared the motion to approve a protocol for interim distributions and ultimately prepared an agreed order granting partial relief related to the treatment of investo r
13 Case No. 03-80612 CIV-MARRAIVITUNAC
claims on a net invested capital basis . H&W also analyzed the possibilities of in-kind distributions and various hurdles to same .
H&W is requesting $5,987 .35 in attorney's fees for 19.30 hours in connection with Plan of Distribution .
8 . Preparation and Review of Report s
During the Application Period, H&W prepared and filed quarterly financial reports summarizing the cash flow of the Receivership Entities during the receivership. H&W also prepared and filed a Litigation Status Report which detailed the status and pending motions in the numerous ancillary proceedings at the time.
H&W is requesting $3,180.00 in attorney ' s fees for 12.80 hours in connection with
Preparation and Review of Reports .
9. Business Operation s
During the Application Period, H&W continued to analyze and address numerous operational issues at the portfolio company level, including changes in the board of directors .
Additionally, H&W continued to review and respond to business mail directed to the
Receivership Entities. H&W fielded correspondence from certain stock exchanges related to the operations. H&W also handled certain correspondence and issues related to the maintenance of the Receivership Entities . H&W and the Receiver continue to review and communicate extensively with certain investors regarding the Consent to Transfer Agreements , including issues related to transfers for beneficial versus nominal holders. H&W has also solicited offers from several financial institutions with regard to the maintenance of the receivership accounts to ensure the maximization of return on the receivership funds. Finally, H&W continued to negotiate agreements with a new prime broker for the Funds .
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H&W is requesting $46,051 . 14 in attorney ' s fees for 157.10 hours in connection wi th
Business Operations.
10. Accounting/Auditing
During the Application Period , H&W worked with the Receiver's forensic accountants with respect to their analysis and extensive on-going effo rts to create cash reconciliations for each Receivership Entity necessitated largely by the absence of customary books and records. Consequently, the accountants have created a forensic database of the history of these funds. The database is not yet complete, but H&W is now able to use the database in connection with its efforts to locate and analyze assets and possible litigation targets.
Additionally , H&W worked closely with the accountants in connection wi th the analysis of certain portfolio transactions and confirmation of ce rtain holdings and securities transactions .
H&W also worked with the accountants with respect to certain securities trading analyses, relationship schedules , valuation analysis and account reconciliations.
H&W is requesting $7,454. 11 in attorney' s fees for 21 . 70 hours in connection wi th the preparation , filing and analysis of accounting related matters.
11 . Employee Benefits
During the Application Period, H&W analyzed the Lancer Management Group Money
Purchase Pl an, the various duties that may arise under the plan and the possible termination of the plan . Additionally , H&W fielded communications from the Department of Labor inquiring about certain ERISA related matters.
H&W is requesting $7,615 .00 in attorney ' s fees for 22.80 hours in connection wi th
Employee Benefits.
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12. Data Analysis
During the Application Period, H&W analyzed the schedules of payments to
intermediaries and consultants, payee lists for the Receivership Entities, cash and redemption reports, spreadsheets of restrictive legends, financial reports, custodial statements and transactional details of executing brokers and spreadsheets for confirmation of holdings . In addition, H&W and the Receiver analyzed certain data reflected on the "blue sheets" obtained by the SEC which track activity for publicly traded securities . Specifically, the blue sheets reflect trade data of certain of the holdings of the Funds . H&W, along with BDPB, met with the SEC to better understand the blue sheets, which will ultimately suppo rt certain litigation to be brought by the Receiver.
H&W is requesting $225 .61 in attorney's fees for .50 hour in connection with Data
Analysis.
13 . Department of Justice Investigation
Pursuant to the Receivership Order, the Receiver and H&W continued to cooperate and meet with various federal law enforcement agencies and their representatives including the SEC,
FBI, U .S. Marshal's Office and the Department of Justice regarding this proceeding. The
Receiver and his professionals have had several formal and informal meetings and conference calls with the federal agencies in connection with the Receivership .
H&W is requesting $689 .92 in attorney's fees for 1 .80 hours in connection with the
Department of Justice Investigation.
14 . Document Management
H&W and the Receiver continued to issue subpoenas to various individuals and entities , including banks, brokers, investors and administrators, among others. As a result of thes e
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efforts, H&W has received hundreds of thousands of documents. As documents are obtained and recovered, they are imaged and scanned into a database that is full-text searchable .
H&W has implemented a comprehensive system to review and analyze the documents.
The Receiver ' s professionals have worked in tandem to establish a protocol for reviewing the documents to ensure that the review is both thorough and efficient. The review has focused on identification of assets; location of documents confirming the debt and equity holdings in the portfolio companies; identification of potential litigation claims against third parties and insiders of the Lancer Entities; reconciliation of all accounts of the Lancer Entities ; and analysis of all transfers from the Lancer Entities . H&W continues to update the current databases with new fields to assist in this review and continues to improve the comprehensive system to analyze documents relating to the receivership. H&W also continues to work with its accountants to refine the document management process, and to create efficiencies in the review of documents .
H&W prepares logs reflecting new documents that are obtained and the dates that these documents are scanned onto the text searchable database so that the Receiver's professionals c an follow-through with the original intent of the document requests .
H&W is requesting $36,013 .38 in attorney' s fees for 386 .50 hours in connection with
Document Management .
15 . Document Revie w
A continuing goal of the document review process has been to ascertain the specific holdings of the Lancer Entities in the portfolio companies to enable the Receiver to administer these positions for the benefit of investors and creditors. To determine the extent of the Lancer
Entities' investment positions in the portfolio companies, as well as any additional rights or responsibilities with respect to any security comprising an investment position, H&W has
17 Case No. 03-80612 CIV-MARRA/VITUNAC
continued to review the documents seized from the offices of the Receivership Entities as well as documents produced in response to subpoenas served by the Receiver. During the Application
Period, the Receiver's professionals have focused on reviewing documents produced by transfer agents and portfolio companies in an effort to ascertain whether and to what extent the holdings as reported on the prime broker's portfolio statements are accurate .
During the Application Period, H&W and the Receiver also refined a document review protocol aimed at identifying documents to support causes of action against various third parties, including insiders and service providers . Shortly after the Application Period, the Receiver filed a 49-page, eight count complaint against Lauer and a number of other insiders, including Martin
Garvey, Eric Hauser, Milton Barbarosh, James Kelley and David Newman, among others . In connection with preparing this complaint, H&W expended significant efforts reviewing the online database of hundreds of thousands of documents by focusing searches on these individuals and various companies with which they are affiliated .
During the Application Period, the Receiver also filed actions against certain po rtfolio companies and service providers, including the Offshore Funds ' administrator, Citco Fund
Services (Curacao) and Citco Fund Services (U.S.A.) (Collectively, "Citco") . In preparing the complaints commencing these actions , H&W focused its efforts on conduction specific searches on the online database relating to Citco.
As H&W and the Receiver review incoming documents, they further refine their understanding of the individuals who played a critical role in the depletion of the Receivership
Entities. This more refined review has assisted the Receiver in the preparation of complaints and follow-up discovery .
18 Case N. .. 03-80612 CIV-MARRANITUNAC
The Receiver and H&W also reviewed documents to analyze other assets of the Lancer
Entities, including bank accounts, insurance policies and the Mercedes C-11 race car.
H&W is requesting $142,953 .65 in attorney's fees for 979. 00 hours in connection with
Document Review.
16 . Investigation
During the Application Period , H&W continued to work with TIG regarding leads to follow for the Receiver' s investigation, witnesses to interview or depose, financial institutions, service providers and professionals to interview.
H&W is requesting $21,987 .50 in attorney's fees for 70 .20 hours in connection with the
Investigation category.
17. Securities Complianc e
During the Application Period, H&W and the Receiver continued their efforts, to ensure that the Receiver and the Funds comply with applicable U .S . and Canadian securities laws .
H&W consulted with local counsel in Canada to assist with several issues relating to
Canadian securities laws and to prepare and file certain reports required thereby. H&W continued to analyze the scope of the Receiver' s reporting obligations , and the dates that certain security repo rts are due. Among other things, H&W performed extensive legal research and prepared memoranda concerning non-exchange, public-market sales; notices required by the
NASDAQ and Toronto Stock Exchange with respect to the sales of certain holdings; proper methods for removing restrictive language on certain holdings to enable the sale of such holdings; amendment requirements under Section B of the Securities and Exchange Act of 1934 ; and the definitions of "affiliate " and "current public information" under Rule 144 .
19 Case N . 03-80612 CIV-MARRA/VITUNAC
In addition, H&W prepared and filed various Schedule 13D in the United States reports relating to a number of the Funds' holdings. The 13D reports reflect the extent of the Funds' holdings in a particular company.
H&W is requesting $28,054.40 in attorney' s fees for 139. 90 hours in connection with
Securities Compliance.
18 . Tax Issues
Lancer, Lancer II, GH Associates and Alpha Omega failed to file tax returns for the 2001 tax year as well as all subsequent tax years . Tax returns for 2003 for L ancer Partners, LP,
Lancer Management Group, LLC, Lancer Management Group II, LLC, Alpha Omega Group,
Inc. and GH were on extension until December 30, 2003 . H&W has assisted in the efforts of the
Receiver' s accountants in preparing books and records for these entities from documents produced by Harold Zoref CPA, B anc of America Securities , Fleet Bank and Chase Manhattan
Bank. The books and records re-created will be utilized to suppo rt the preparation of the 2003 returns as well as the 2001 and 2002 returns for the Receivership Entities (2001 and 2002 tax returns for the Receivership Entities were delinquent prior to the receivership). There are a number of unresolved issues that must be rectified prior to the completion of the tax returns for the Receivership Entities. The accountants have prepared open item lists for each entity by year and are working to resolve these issues . The receivership returns will be filed as soon as the remaining open issues are resolved . H&W is communicating regularly with the accountants regarding these tax issues as well as resolution of the open items. H&W has corresponded with the IRS with respect to the various tax returns due for the receivership entities as well as certain investigations by the IRS into Lauer' s tax issues.
20 Case Nu . 03-80612 CIV-MARRA /VITUNAC
H&W is requesting $15,151 .72 in attorney' s fees for 37.40 hours in connection wi th Tax
Issues.
19. Claims Adminis tration/Objections
During the Application Period , H&W and the Receiver have been working with the accountants in the review of the claims and voluminous suppo rting documents. With the assistance of the accountants, H&W has commenced the preparation of a comprehensive claims report and omnibus objections to claims by category. H&W and the accountants have spent a significant amount of time analyzing and confirming the net invested capital for each investor .
This process was delayed significantly by the absence of complete production of documents by
Citco evidencing individual investors ' contributions and redemptions . It is made more difficult due to the large number of investors subscribing to the funds through nominal holders and the massive volume of inter-investor and inter-nominee transfers.
During the Application Period, H&W has also continued to communicate wi th investors regarding the status oftheir respective claims, objection to claims, the use of net invested capital, and claims with insufficient documentation . H&W has also reviewed numerous investor replies and conferred with numerous claimants in connection with the claims.
H&W is requesting $17,431 .72 in attorney's fees for 78 .40 hours in connection wi th time expended in the Claims Administration/Objections catego ry.
20 . Litigation - General
During the Application Period, H&W undertook substantial efforts researching law and investigating facts relevant to potential litigation by the Receiver against numerous targets and potential defenses to such litigation . Among other things, H&W updated its research on the applicability of the in pari delicto defense to actions by Receiver' s against third parties. H&W
21 Case N .,. 03-80612 CIV-MARRA/VITUNAC
identified a case decided in 2005 out of the United States Bankruptcy Court for the Southern
District of Florida in which the Court held that the in pari delicto defense does not apply to bankruptcy trustees given the independent nature of trustees and their charge to pursue assets for the benefit of creditors . The same analysis would apply to receivers . H&W also performed legal research and drafted memoranda on other issues relevant to general litigation efforts of the
Receiver, including the potential liability of finders under federal securities laws ; the extent to which monies received by investors in a Ponzi scheme are recoverable by a receiver; and the standards that govern hedge fund valuations.
In addition, on May 7, 2004, the Court entered an order compelling Citco to produce documents to the Receiver. The May 7 Order provides that a protective order preventing the
Receiver from "sharing the documents and information contained therein with any entity covered by the stay provisions of the PSLRA is appropriate, however, the Receiver is free to use the documents and information on behalf of the Receivership Entities and may share same with the
SEC ." Citco filed a motion alleging that the Receiver should be sanctioned for attaching Citco- produced documents to a complaint that the Receiver filed against PWC . The Receiver filed pleadings opposing the position taken by Citco. Furthermore, as a result of Citco ' s allegations,
HW has been forced to prepare and file motions to allow the Receiver to file pleadings under seal wherever documents or information obtained from Citco are included with the relevant pleading.
During the Application Period, H&W also assisted in the preparation of a request for status conference to clarify the Court' s view of the litigation that has been brought by the
Receiver, as well as the litigation that has been brought by the Group and Class Plaintiffs. H&W
22 Case No. 03-80612 CIV-MARRA/VITUNAC
also reviewed certain pleadings prepared in the Group and Class Actions as they relate to the
Receiver' s actions, although H&W has limited its involvement in the Group and Class Actions .
During the Application Period, the Receiver and H&W also met with counsel for the
Group Plaintiffs in an effort to reach a cooperation agreement that would allow for sharing of documents and an efficient and equitable method to pursue and distribute proceeds from certain litigation. In connection with the negotiations , H&W and the Receiver have also consulted with members of the Steering Committee.
H&W also dispatched a number of proposed tolling agreements to pa rties with potential liability to the Receiver, including net redeemers , brokers, finders, and service providers. A number of these potential defendants agreed to toll the statute of limitations for the Receiver to bring suit in order to allow the Receiver to investigate causes of action more fully and procure additional discove ry .
H&W finally investigated facts and researched law relev ant to potential suits against portfolio companies and their management.
H&W is requesting $57,854. 16 in attorney' s fees for 251 . 70 hours in connection with
General Litigation .
21 . Litigation - Discovery Matters:
During the Application Period , H&W and the Receiver continued to undertake extensive formal discovery. H&W issued subpoenas for production of documents to several hundred more individuals and entities, including former officers and employees, executing brokers, transfer agents, po rtfolio companies, accountants, insiders, intermediaries , and administrators. H&W corresponded with many of the subpoenaed entities and individuals, and established a detailed procedure to track responses, objections, and production .
23 Case Nu. 03-80612 CIV-MARRA/VITUNAC
During the Application Period, H&W and the Receiver's special counsel , Colson Hicks
& Eidson ("CHE") maintained consistent contact wi th each other to synchronize the discovery
process. H&W and CHE coordinated discovery to ensure production of documents from all
subpoenaed entities , to issue subpoenas, to locate entities sought to be subpoenaed, to add entities to be subpoenaed, to serve subpoenas and to review produced documents . Additionally,
H&W and CHE employed a uniform discovery protocol, including the use of standstill agreements, supplemental production requests, and essential follow-up with non-responsive entities. To accomplish this end, H&W and CHE corresponded consistently to remain apprised of updated discovery issues.
During the Application Period, various entities served with subpoenas responded to those subpoenas. The responses ranged from objections to the documents requested to asse rtions that the entity served did not have any documents responsive to the subpoenas. Before responding to the subpoenas, many entities corresponded with H&W to clarify the scope of production, to extend the time to reply to the subpoena, and to inquire about the production requests and the
Funds generally. In certain instances where subpoenaed entities asse rted they had no responsive documents, H&W instituted a protocol of verifying specific transactions which revealed that the subpoenaed entity did in fact have responsive documents . In turn, H&W would correspond with these entities to "refresh their recollection" to obtain the relevant documents. This procedure proved important in identifying certain holdings of the Funds.
In instances where an entity objected to the subpoena, H&W would work with that entity to resolve the objections amicably to avoid litigation . Often, H&W would enter into standstill agreements pursuant to which subpoenaed parties would produce a certain level of documents, and H&W would rese rve the right to compel production of additional documents if the initial
24 Case Nu. 03-80612 CIV-MARRA/VITUNAC
production proved insufficient for any reason. The process of applying resources to the
subpoenas was and continues to be time -consuming, particularly given the number of subpoenas
served, the size of the Funds, the number of transactions executed by the Funds, and the need to
follow-up and correspond with subpoenaed entities . Nevertheless, the standstill agreements
provide an efficient means to preserve resources .
During the Application Period, H&W continued to refine the procedures for identifying subpoena targets and pertinent information and expended time with the accountants ascertaining gaps in the discovery provided by the subpoenaed parties . H&W participated in weekly conference calls wi th the accountants to discuss various discovery issues and methods for tracking discovery. These conference calls tracked the accountants ' discovery priorities and alerted H&W of any supplemental production required by the accountants, including any new entities sought to be subpoenaed by the accountants.
During the Application Period , H&W also conducted research into discovery related matters, including the applicability of the Fifth Amendment privilege to the act of producing documentation, whether a privilege log is required under the act of production doctrine, whether an entity can assert such privilege on behalf of a corporation , and whether a Fifth Amendment privilege shields the contents of any subpoenaed documents . H&W also researched issues relating to protective orders and motions to compel, and the evidentiary value of deposition testimony versus statements made during an informal witness interview . H&W also continued to research issues relating to discove ry from offshore entities and issuance of subpoenas to entities outside ofthe United States, including the issuance of letters rogatory .
25 Case N., . 03-80612 CIV-MARRA /VITUNAC
During the Application Period, H&W continued to work closely with the SEC to recover and analyze documents . H&W held weekly conference calls with the SEC to gauge the status of documents produced .
In addition, H&W continued its extensive review and analysis of documents produced to, among other things, determine claims against litigation targets, including, wi thout limitation, suspicious payees, insiders , and entities who received potentially avoidable transfers. H&W also reviewed documents for the purpose of drafting detailed deposition outlines and complaints .
H&W also reviewed and analyzed confidentiality agreements proposed by certain entities responding to the document requests . H&W is requesting $82,725.33 in attorney' s fees for
495 .80 hours in connection with Litigation-Discovery Matters.
22. Litigation - Third Party :
The Receiver and H&W unde rtook efforts in advancing the Receivership Entities' interests in ancillary litigation, including the Group Action and the Class Action. Specifically, the Receiver and H&W drafted briefs and motions designed to suppo rt the investors ' causes of action and this Court' s jurisdiction over same . H&W researched and prepared detailed memoranda of law in opposition to certain defend ants ' motions to dismiss and/or transfer the
Class Action. The Receivership Order directs the Receiver to do so where he deems it necessary .
The Receiver and H&W also followed developments in the Group Action and the Class
Action to prepare for the Receiver' s claims against identical defend ants. H&W reviewed and analyzed the Group Action Complaint, the Class Action Complaint, and the motions to dismiss and/or transfer those ancillary proceedings in order to frame his own complaints and to plead around potential defenses by the Citco defend ants and the PwC defendants . As a result of these efforts, the Receiver's complaints against these parties will be less likely to be deemed legally
26 Case N . 03-80612 CIV-MARRA/VITUNA C
deficient or subject to jurisdictional and venue challenges.
In November 2004, the Court entered an order transferring the Group Action and the
Class Action to the Southern District of New York . The Receiver believes it is important that the actions against the service providers proceed in one venue . Accordingly, the Receiver joined in the Class Plaintiffs' motion to reconsider such order and provided independent grounds in opposition to the transfer of venue. The Receiver also joined in a request for a status conference so that the Court would have the benefit of oral argument on this important subject .
H&W finally researched relevant law and prepared a detailed memorandum in response to an order to show cause why the Receiver' s cause of action against PwC should not be stayed in favor of the ancillary actions initiated by investors .
H&W is requesting $49,613 .89 in attorney's fees for 166.40 hours in connection with
Litigation - Third Party.
23 . Litigation - Nephros :
During the Application Period, H&W continued to prosecute the Receiver' s litigation against Nephros, one of the Funds' portfolio companies, to recover on a $1,500,000 matured loan and obligation to deliver to Offshore certain warrants for Nephros stock . H&W has conducted numerous depositions and served additional discovery on Nephros, responded to additional discovery requests and addressed numerous motions to compel and for protective orders. H&W also defended the Receiver' s deposition in this action. H&W has essentially concluded its discovery in the proceeding and recently prepared and filed an extensive motion for summary judgment on all counts in the Complaint . Finally, H&W continues its settlement dialogue with counsel for Nephros in the hopes of an amicable resolution .
27 Case No. 03-80612 CIV -MARRA/VITUNAC
H&W is requesting $72,670.37 in attorney' s fees for 290.00 hours in connection with
Litigation - Nephros :
24. Litigation - SEC :
During the Application Period , H&W undertook efforts in support of the SEC's enforcement action against Lauer . H&W provided the SEC with factual support and documents supporting the SEC' s allegations against Lauer and undermining Lauer's many spurious allegations regarding the SEC. Lauer has violated countless discovery rules, orders and obligations throughout the course of the enforcement action . During the Application Period, the
Receiver and H&W held a number of telephone conferences with the SEC regarding Lauer's blatant failures, and reviewed pleadings relating to the SEC's motions to hold Lauer in contempt.
H&W also held conferences wi th the SEC regarding Lauer' s blatant and extensive violations of the asset freeze and possible ways to remedy Lauer' s violations . H&W also reviewed and joined in the SEC 's motion to strike Lauer' s motion to dismiss . Finally, H&W conferred with the SEC on numerous occasions regarding securities compliance and portfolio company issues.
H&W is requesting $ 13,968 .82 in attorney 's fees for 34 .70 hours in connection with
Litigation - SEC .
25 . Litigation - Citco
During the Application Period, H&W undertook substantial efforts in pursuing litigation against the Citco defendants. As noted in various repo rts and pleadings filed with the Court,
Citco produced approximately 60,000 documents to the Receiver in response to a subpoena issued upon them. Citco produced these documents only after the Court granted a motion to compel production filed by the Receiver.
28 Case No. 03-80612 CIV-MARRAIVITUNA C
The Receiver requested Citco to produce the documents electronically to allow the
accountants to readily use and analyze the data produced. Citco initially refused to produce the
documents in an electronic format, and insisted that electronic production of the documentation was not feasible. Accordingly, H&W filed a motion to compel electronic production . After the
Receiver filed the motion to compel , Citco finally agreed to produce documents elec tronically.
H&W worked closely and extensively wi th the accountants to develop a "spec" sheet which described the format and nature in which the documents should be produced elec tronically.
Once the documents were produced electronically, H&W had numerous conferences with the accountants to discuss the shortfalls in the production, and thereafter held discussions wi th
Citco' s counsel regarding same . H&W and Citco' s counsel continue to work towards a satisfactory production .
During the Application Period, H&W continued to pour through the documents produced by Citco with an eye towards pursuing the estate' s rights against Citco. During the Application
Period, H&W drafted , finalized and ultimately filed a detailed and comprehensive complaint against Citco and certain employees of Citco who se rved as directors of the Offshore Funds alleging, among other things, professional negligence.
H&W filed the complaint under seal in light of Citco' s interpretation of the May 7 Order .
In connection with the complaint, H&W continued to perform extensive legal research into the standards applicable to administrators of hedge funds and into the various causes of action that the Receiver may have against Citco . H&W also consulted wi th ERISA counsel to discuss the applicability of ERISA to the Funds and the ability to asse rt ERISA causes of action against
Citco. H&W also reviewed issues relating to the fiduciary obligations of Citco and certain of its
29 Case No. 03-80612 CIV -MARRA /VITUNA C
directors. In addition, H&W reviewed and analyzed various repo rts and memoranda prepared
by Citco as they related to the Funds' holdings and the valuation of these holdings.
H&W is requesting $91,844 .83 in attorney' s fees for 291 . 70 hours in connection wi th
Litigation - CITCO.
26. Litigation - Fraudulent Transfers
During the Application Period, H&W filed additional complaints against net redeemers, finders, and other potential recipients of fraudulent transfers by the Funds. H&W worked closely with the accountants' to analyze all transfers by the Receivership Entities . H&W carefully reviewed the accountants analyses of transfers and insolvency to prepare detailed complaints seeking to recover transfers from numerous parties. In light of the aggressive position Citco has taken with respect to the Receiver's use of information provided pursu ant to a protective order,
H&W has filed the exhibits to the recent complaints under seal . H&W has obtained extensions of time to serve summonses on these numerous defendants until the exhibits are unsealed or an agreement can be reached wi th Citco to allow for the service of exhibits to the defendants. In the meantime, H&W continues its investigation into the nature of certain transfers and is communicating wi th many of the recipients about the transfers at issue and the allegations in the complaints.
During the Application Period , H&W has continued its analysis and has identified numerous transactions and defendants who should not be subject of these complaints . H&W has amended several of the complaints and recently filed (after the Application Period) amended complaints.
H&W is requesting $51,736.22 in attorney's fees for 237. 10 hours in connection with
Litigation - Fraudulent Transfers
30 Case N,,. 03-80612 CIV-MARRA/VITUNAC
27. Litigation - Insiders:
During the Application Period, H&W continued its investigation regarding Lauer and other insiders whom the Receiver believes were responsible for the financial demise of the
Funds. H&W focused its efforts on identifying the key insider targets and reviewing all documents pertaining to those insiders. Based on the information gathered, H&W began drafting a detailed and extensive complaint against the insiders . H&W also consulted with the SEC regarding the roles of insiders, and reviewed notes from interviews taken of the insiders .
H&W is requesting $50,649 .61 in attorney's fees for 165.50 hours in connection with
Litigation - Insiders .
28 . Litigation - PWC ;
During the Application Period , H&W assisted special counsel in investigating the facts surrounding PwC's role as auditor of the Funds . H&W attorneys also provided analyses of international and U .S. auditing standards relevant to PwC's audit of the Offshore Funds . H&W conferred with special counsel on numerous occasions regarding this investigation and the claims against the PwC for the Receiver's complaint .
In early December 2004, special counsel filed a complaint against PwC. The Court entered an order to show cause why the Receiver's action against PWC should not be stayed, primarily on the basis that the Group and Class Plaintiffs were already pursuing PwC on behalf of investors . The Receiver, through H&W, filed a detailed response to this order explaining that the Receiver ' s causes of action are separate from the investors ' causes of action , even if the facts giving rise to the causes of action are similar. Because the causes of action are distinct, the
Receiver believes it is critical that his action against PwC move forward, preferably in concer t
31 Case No . 03-80612 CIV-MARRA/VITUNAC
and in the same venue as the Group and Class Actions to allow for a more efficient and orderly litigation process.
H&W is requesting $5,036 .02 in attorney's fees for 13 .10 hours in connection wi th
Litigation - PwC .
29. Michael Lauer
H&W expended substantial efforts responding to Lauer 's numerous spurious motions and papers during the period covered by this application. H&W expended substantial efforts responding to Lauer ' s numerous motions, replies, sur -replies, motions for reconsideration, and other papers filed in opposition to the Receiver's proposed sale of the Funds ' holdings in Zi
Corporation and in opposition to the Court' s prior orders authorizing the Receiver to liquidate holdings on public exch anges. The Court eventually denied all of Lauer's requests for relief.
Lauer immediately filed a motion for reconsideration , which the Court denied. Lauer has appealed the Court' s rejection of his requests for a halt to the sale of Zi Corporation shares and for reconsideration of the Receiver' s authority to liquidate holdings on public exch anges.
H&W additionally attempted to procure Lauer ' s consent to a confidentiality order in order to provide Lauer with advance notice of sales of holdings on public exch anges, as directed by the Court. Unfortunately, Lauer refused to negotiate with H&W in good faith. After considerable discussions , Lauer refused to enter into the same confidentiality agreement executed by other parties entitled to advance notice of asset sales .
H&W further prep ared and filed pleadings in response to Lauer ' s opposition to the
Receiver' s motion for approval of a protocol for interim distribution to investors .
H&W also assisted the SEC in seeking discove ry and depositions from Lauer and in prosecuting motions for contempt and sanctions after Lauer failed to provide discove ry upon
32 Case No. 03-80612 CIV-MARRA/VITUNAC
Court orders . H&W assisted the SEC by assembling information to support the SEC's allegations of contempt and by preparing and filing joinders in support of the SEC's requests for sanctions against Lauer . H&W further prepared a motion to compel Lauer to respond to the
Receiver's discovery requests. H&W also assisted the SEC in preparing a motion to strike
Lauer's improper motion for summary judgment and prepared a joinder to the motion to strike .
H&W additionally continued its efforts to procure assets of the Receivership Entities held by Lauer. H&W continued its efforts to repossess the Yukon Denali owned by G.H. Associates and held by Lauer. Lauer continued filing pleadings in opposition to turnover of the vehicle despite the Court's orders granting the relief sought by the Receiver . The Court eventually overruled all of Lauer's objections to turnover, and the Receiver finally repossessed the Denali.
H&W further prepared and filed a motion to expend the receivership to include CLR, a corporation whose existence Lauer failed to disclose until recently, and a valuable Mercedes race car purchased by Lauer using the Funds' assets.
H&W finally expended substantial efforts responding to Lauer's spurious and groundless objections to fee applications filed by the Receiver's professionals.
H&W is requesting $29,081 .79 in attorney's fees for 109 .10 hours in connection with
Michael Lauer
II. Turnstone Investigation Group
In addition to assisting with the control and security of books, records and various other assets, during the Application Period, TIG continued to undertake efforts to discover additional assets of the Receivership Entities and to assist H&W in seeking discovery of relevant facts .
Turnstone performed background investigations on Lauer's associates both in the United States and abroad. Turnstone also investigated CLR and Lauer's use of that company to purchase a
33 Case No. 03-80612 CIV -MARRA/VITUNAC
Mercedes race car using investor funds . Tumstone additionally assisted the Receiver in tracking down numerous third parties for discovery purposes . Turnstone further performed extensive and numerous background investigations on portfolio companies and their officers and directors .
Turnstone also repossessed the Denali from Lauer and cleared its title for sale. Turnstone finally assisted the Receiver and the SEC in discovering Lauer's violation of the Court's asset freeze .
Much of this work required travel outside of the State of Florida .
TIG is requesting $40,730 .00 in fees for 203 .65 hours in connection with its services .
III. Receiver
The Receiver is responsible for the oversight of all aspects of this extensive receivership, including investor relations. The Receiver has spent considerable time preparing and reviewing pleadings, motions and subpoenas as well as reviewing business records, witness interviews and contracts. He has corresponded with various entities, including without limitation, commi ttee members, investors and their counsel through personal meetings , teleconferences , letters and electronic mail.
The Receiver has further administered certain of the Fund assets for the benefit of all investors and creditors. Since his appointment , the Receiver has worked extensively on litigation issues, including research, legal memoranda, pleadings, preparation for and attendance at Court hearings in connection wi th status conferences and motion practice , witness interviews, depositions, and factual development. The Receiver worked extensively wi th the forensic accountants to prepare reports that can be used by him in his civil litigation as well as by the federal agencies working on this case. The Receiver has cooperated and met with various
Federal Law Enforcement agencies and representatives including the SEC, FBI, and the
34 Case No. 03-80612 CIV -MARRA/VITUNAC
Department of Justice regarding this proceeding. The Receiver has participated extensively in
court proceedings , litigation decisions, meetings and conferences regarding strategy and case
administration as well as case management decisions involving the cases . During the
Application Period, the Receiver coordinated with H&W and his forensic accountants and other
professionals in connection with substantially all aspects of this case and their representation of him.
The Receiver is requesting $18,471 .00 for 39.30 hours he expended rendering services on behalf of the receivership estates.
RECEIVERSHIP FUNDS
As of May 26, 2005, the Receiver is in possession of $14,493,833.47.
COMPENSATION
This Court has the power to appoint a receiver and to award the receiver fees for his services and expenses incurred in the perform ance of his duties. See Donovan v. Robbins, 588 F.
Supp . 1268, 1272 (N .D. Ill. 1984) ("[T]he receiver diligently and successfully discharged the responsibilities placed upon him by the Court and is entitled to reasonable compensation for his efforts."). See also Securities & Exchange Commission v. Elliott, 953 F. Supp . 1560 (11th Cir.
1992) (receiver is entitled to compensation for perform ance of his duties.).
The determination of fees to be awarded is largely wi thin the discretion of the trial court.
Monaghan v. Hill, 140 F.2d 31 (9th Cir. 1944). Such discretion, however, is predicated upon the assumption that careful consideration is given to all evidence pertaining to the value of the attorneys ' services in the light of the factors relevant to a determination . These factors are set forth in In re Norman v. Housing Authority of City of Montgomery, 836 F.2d 1292 (11 th Cir.
35 Case No. 03-80612 CIV-MARRA/VITUNA C
1988), as follows: ( 1) the time and labor properly employed by the attorneys in processing the
case; (2) the quality of services rendered ; (3) the scope of the activity and conspiracy under
attack; (4) the financial risk involved; (5) the magnitude, complexity and novelty of the issues
involved; (6) the beneficial results obtained ; and (6) the degree to which , if any, efforts were supported by prior gove rnmental action . The Receiver requests the Court to consider these factors in determining reasonable compensation for the services rendered to date by the Receiver,
H&W and TIG as summarized below :
a. Time and Labor Required - The exhibits attached to this Notice and filed under seal include Exhibit 1 , which contains a summary of professional and paraprofessional time, and
Exhibit 2, which is a summary of requested expenses . The exhibits and narrative descriptions in this Notice evidence the time and labor employed in processing this case.
b. Novelty and Difficulty of the Issues and Questions Presented - Due to the nature of this case, it was necessary for the Receiver to employ professionals that are experienced and familiar with securities, insolvency, hedge funds, bankruptcy, tax, general litigation , commercial transactions, fraud, negligence , professional malpractice and a host of other practice areas.
Insofar as there have not been many SEC imposed receiverships involving hedge funds, m any of the issues presented in this proceeding are novel .
c. Skill Requisite to Perform the Legal Services Properly - In order to perform the services in connection wi th this complex matter, the Receiver' s and H&W' s legal skill and experience in the areas of negligence, fraud, securities, hedge funds, bankruptcy, insolvency, federal receivership, litigation, tax, commercial transactions and malpractice were required.
36 Case No. 03-80612 CIV-MARRA/VITUNAC
d. Preclusion From Other Employment - Although this case has required an
extensive investment of professional and paraprofessional time, it has not been necessary for the
Receiver, TIG or H&W to turn away other work.
e. Hourly Rates - The hourly rates charged by the attorneys and investigators
providing se rvices to the Receiver, as well as the Receiver's hourly rate, are below the customary
rates charged by attorneys of comparable skills in the Southern District of Florida. H&W has written off time valued at $112,041 .05
f. Whether the Fee is Fixed or Contingent - The Receiver and his professionals' hourly compensation in this matter is subject to final Court approval . The Receiver, TIG and
H&W have not received any compensation for their services or unreimbursed costs incurred during the Application Period .
g. The Limitations Imposed By The Client or the Circumstances - This case has imposed significant time limitations on the Receiver, H&W and TIG because of the need to resolve many issues rapidly, efficiently and economically . This effort has been hampered by the number and frequency of securities transactions undertaken by the Lancer Entities prior to the
Receivership and the lack of adequate internal bookkeeping for said transactions . In addition, the administrative tasks required to manage the Funds require almost daily monitoring and attention. The Receiver's investigation has also been impeded by the decisions of certain third parties not to respond to formal and informal discovery requests .
h. The Amount Involved and the Results Obtained - The above narrative, together with the exhibits attached hereto, detail the time, nature and extent of the professional services rendered by the Receiver, H&W and TIG for the benefit of the investors and creditors . The
Receiver, H&W and TIG, without the necessity of litigation, have successfully collecte d
37 Case No . 03-80612 CIV -MARRA /VITUNA C
approximately $30 million . The Receiver anticipates that he will collect and administe r
additional funds.
i . The Experience, Reputation and Ability of the Attorneys - The Receiver and
H&W are established, experienced attorneys with substantial experience in the substantive areas of law required by this proceeding including fraud, securities, bankruptcy, insolvency, federal receiverships, tax, hedge funds and litigation.
J . The Undesirability ofthe Case - The Receiver, TIG and H&W firmly believe this case is complex, difficult and challenging, as well as extremely important to investors , creditors and the SEC . Therefore, the Receiver, TIG and H&W do not believe the case is "undesirable ."
k. The Nature and Length of the Professional Relationship of the Client - Neither the
Receiver, TIG nor H&W had a professional relationship with the Receivership Entities, or any of their principals, prior to the institution of this proceeding .
1. Awards in Similar Cases - As set forth above, the Court has the ability and power to award fees and costs to H&W, TIG and the Receiver. Other federal judges in the Southern
District of Florida and elsewhere have actually awarded higher fees at full hourly rates for the same quantity and quality of work expended in receivership cases of similar complexity and magnitude .
M. Government Support - Although the SEC investigated and filed the initial pleadings in this case, the Receiver, TIG and H&W had to secure and protect the assets of the
Receivership Entities as well as investigate and analyze the Receivership Entities' business operations. The Receiver has undertaken extensive discovery efforts in connection with this receivership and shared his findings with several federal agencies as required by the
Receivership Order.
38 Case No. 03-80612 CIV -MARRA/VITI NA C
CONCLUSION
The Receiver respectfully requests that this Court authorize him to compensate : (i) H&W
for its attorneys ' fees for reasonable and necessary services rendered during the Application
Period in the amount of $1,174,516.23 plus expenses of $79,982.60; (ii) TIG for its investigative
fees for reasonable and necessary services rendered during the Application Period in the amount of $48,270 .00 to be paid from the appropriate estates of the Receivership Entities and (iii) the
Receiver for the reasonable and necessary services he rendered during the Application Period in the amount of $18,471 . 00 for a total award of $1,321 ,239.83 to be paid by the appropriate estates of the Receivership Entities.
Date : May 26, 2005 Miami, Florida
Respectfully submitted, HUNTON & WILLIAMS, LLP Counsel for the Receiver 1111 Brickell Avenue - Suite 2500 Miami, FL 33131 Tel: (305) 810-2500 Fax: (3QS181p?460
Craig V ile (FBN 613691) Jeffrey A/Bast (FBN 996343) Andrew D . Zaron (FBN 965790)
39 Case No. 03-80612 CIV -MAR.R.A/VITUNA C
CERTIFICATE OF SERVIC E
I FURTHER CERTIFY that a true and correct copy of the foregoing Notice was
furnished this day of May, 2005, upon the parties on the attached Service List and
posted on the Receiver's website located at www.hunton.com.
40 64036.000002 MIAMI 284442v7 JOINTLY ADMINISTERED CASE LANCER/RECEIVERSHIP AND BANKRUPTCY CAS E CASE NO. 03-80612-MARRA/VITUNAC/CASE NO .04-CIV-80211 -MARRAIVITUNAC ETC. SERVICE LIS T
Christopher Martin Michael Lauer, pro se Heidi Caren s Senior Trial Counsel Heidi Carens U.S. Securities & Exchange Commission 7 Dwight Lan e 7 Dwight Lane Greenwich, CT 0683 1 801 Brickell Avenue - Suite 1800 Greenwich , CT 06831 Miami, F133131
Patricia Beary Ms. Nina Fiskaaen M. Regina Thomas Office of the U .S. Trustee Nordea Liv Norge A S United States Trustee/Department of Justice Controlle r, One Century Tower, Suite 1103 51 SW Ist Avenue - Suite 120 4 Folke Bernadottes vei 3 8 265 Church Street 5147 Fyllingsdalen Miami , FL 3313 0 New Haven, CT 06510 1201 Bergen - NORWA Y
David Blaylock, Esq. Ga FF), M. G&Feber Gerry LaBush , Esq . Glankler Brown, PLL C Hodgsen Russ LLP 711 Third Avenue 1700 One Commerce Squar e Ono 4.49,T- PIRAEi; Su i te 2000 Suite 150 5 Memphis, Tennessee 3810 3 Buff to Now Vork 14203 New York, New York 10017 Counsel for George R. Pidgeon, Sr.
David Newman Jimmy Tsakn i Trisha D. Sindler c/o Timothy E. Hoeffner Special Counsel c/o Shari A . Brandt, Esq. 1500 Market street U .S. Securities & Exchange Commission Richard Spears Kibbe & Orbe. LLP 38`h Floo r One World Financial Center 801 Brickell Avenue - Suite 1800 Philadelphi a, PA 19102-218 6 Miami, FI 33131 New York, NY 10281
Frank Paul Terzo Noah J . Schafler, Esq . Mercedes G . Hale Katz Barron Squitero Faust The Law Offices of David W . Rubi n Piper Rudnick LL P 600 Summer Street , Suite 20 1 2699 S . Bayshore Drive 101 E . Kennedy Boulevard , Suite 2000 Eight Floor Pampa, FL 33602 Stamford, CT 0690 1 Miami, FL 3313 3
Kenneth B. Robinson , Esq. Mark S . Gregory Rice, Pugatch, Robinson & Schiller, P .A. Robert M . Dombroff, Esq. Delphine W . Knight Brown Jonathan Alter, Esq. 848 Brickell Avenue, Suite 1 100 Kelley Dry e & Warren LL P Bingham McCutchen LL P Miami, FL 33131 Two Stamford Plaza One State Street 281 Tresser Boulevard Hartford, CT 0610 3 Stamford, CT 0690 1
David Barrack, Esq . Anthony & Patricia O'Callagahan/ Hal M . Hirsch, Esq . Christopher B . O'Callaghan/ Joshua W . Cohen Greenberg Traurig, LLP Diane J . Nelson/John P . Heffernan Cummings & Lockwood Met Life Building Attn: Timothy T. Brock 700 State Stree t 200 Park Avenue Satterlee Stephens Burke & Burke LLP New Haven, CT 06509 New York, NY 10166 230 Park Avenu e New York, NY 1016 9
Thomas D. Goldberg Brian C . Getioney , Esq . Barbara H .Kat z Day , Berry & Howard LL P Rome, muciuigafl , sabanesh , PC Law Office of Barbara H . Katz One Canterbury Green One State Street 57 Trumbull Street C T Stamford, CT 0690 1 H artfo rd , 06 103 3402 New Haven, CT 0651 0
James M . Nugent, Esq . Klein Joseph P . Moodhe KFO Investors Partnershi p Debevoise and Plimpton James M . Nugen t 919 Third Avenue Harlow, Adams & Friedman, P .C . Stamford, CT 06905 New York, NY 10022 300 Bic Driv e Millford, CT 06460 Howard L . Siege l Brown Rudnick Berlack Israels LLP Thaddeus E . Delonis, CPA Timothy W . Walsh P Cityplace I, 38`x' Floor 290 Towne Center Drive Peper Rudnick LL 1251 Avenue of the Americas 185 Asylum Avenue Troy, MI 48084 -1774 New York, NY 10020-1 104 Hartford, CT 060103
Garry M . Graber Leonard H. Hecht c/o Joseph Galda, Esq. 1270 avenue of the Americas Corsair Advisors , Inc. Suite 21 4 497 Delaware Avenue New York, NY 10020 Buffalo, NY 14202 E-MAIL SERVICE LIS T
Scott M . Berman, Esq . Jeffrey Greilsheimer, Esq. Anne E . Beaumont, Esq . Greg T . Arnol d Hughes Hubbard and Reed, LL P Friedman, Kaplan,Siiler & Adelman LL P Brown Rudnick Berlack Israel s One Battery Park Plaza 1633 Broadway, 46th Floor One Fin ancial Cente r New York, New York 10004 New York, NY 100 19-6708 Boston , MA 0211 1 E-mail : greilshe(a?hugheshubbard .com sberman@fklaw . co m/abeau mo nt@fklaw. com E-mail: garnold(ulbrbilaw .com
Travis Corder David Cimo Esq . Paul Wallace Genovese Joblove & Battista , P.A. Brown Rudnick Berlack Israels 9701 S. Bexley Drive Bank of Tower, 36th Floo r One Financial Center Littleton, CO 80126 100 S.E. 2nd Street Boston, MA 02111 Miami, FL 33131 E-mail: wallaceclandenver(dms n.com E-mail : tcorder(ribrbilaw.com E-mail : dcimo(u~gib-law .co m
Bill McCowen Mr . Hans Jacob Dahle David P . Milian, Esq . Vesta Forsikring AS Kozyak Tropin & Throckmorton, P .A. Metamora Multi Managers L.L.C. P.O. Box 7070 2525 Ponce de Leo n E-mail: mccowenbiII(a.voyager. net 5020 Bergen - NORWAY Coral Gables 33134 e-mail: hans.jacob.dahle(ijvesta .no E-mail : dmili an,,u!kttlaw .com
Michael A . Hanzman, Esq. Aaron Podhurst, Es q. Joel H. Bernstein , Esq . Hanzman & Criden , P.A. Podhurst , Orseck, Josefsbur g, Goodkind Labaton Rudoff & Sucharow LLP Commerce B ank Building Eaton , Meadow, Olin & Perwin , P.A. 100 Park Avenue 220 Alhambra Circle - Suite 400 25 West Flagler Street - Suite 800 New Yor k, New York 1001 7 Coral Gables , Florida 33134 Miami , Florida 33130 E-mail ibernstein(aiglrslaw .com E-mail : Ml lanzmaniu~l1anzmanCriden .com E-mail: aoodhurst(iPoodhurst .com
Carol Felicett a Roberto Martinez, Esq. Joseph Matthews, Esq. Reid & Riege, P.C. Colson Hicks Eidson P .A. Colson Hicks Eidson P .A . 234 Church Stree t, 9th Floor 255 Aragon Avenue, 2nd Floor 255 Aragon Avenue , 2nd Floo r New Have n, CT 06510-181 9 Coral Gables , FL 33134 Coral Gables, FL 33134 E-mail: cfclicetta;tureidandriege .com E-mail : bob'acolson.com E-mail : joseph u?colson .co m
David L . Snyder, Esq . Rudolph F. Aragon . Fsq . Salvatore A. Barbatano, Esq . Craig B . Leavers, Esq. White & Case Foley & Lardner Neuberger, Quinn. Gielen, Rubin & Gibber Wachovia Fin ancial Center, Suite 4900 150 W . Jefferso n One South Street, 27`h Floor 200 South Biscayne Boulevard Suite 100 0 Baltimore, MA 21202-3282 Miami, Florida 33131-2352 Detroit, MI 48226-261 6 E-mail : dls( nggrg.com/cblru;nggrp, com E-mail : raragon@whitecase .com E-mail: sbarbatano("q?foleylaw .com
Eric A . Henzy, Esq . Donald Workman, Esq . Reid and Riege, P .C. Foley & Lardner Timothy P . Harkness, Esq . One Fin ancial Plaza 3000 K Street, N . W. Kramer Levin Naftalis & Frankel LL P Hartford, CT 06103 Suite 500 919 Third Avenu e E-mail : chenzy(areidandrie eg com Washington, D .C . New York, New York 1002 2 E-mail : dworkmarviOble),law .com E-mail: tharkness(u)kramerlevin .co m
Lewis N . Brown Harley S . Tropin, Esq . Christopher Marti n Gilbride, Heller & Brown, PA . Kozyak Tropin & Throckmorton, P .A. Senior Trial Counsel One Biscayne Tower, Suite 1570 2525 Ponce de Leon U.S . Securities & Exchange Commission Two South Biscayne Blvd . Coral Gables 33134 801 Brickell Avenue - Suite 180 0 Miami, Florida 33131 E-mail : hst Ikttlaw .com Miami, Fl 3313 1 E-mail : l brownca))ghblaw .com E-mail :sf(ui.kttlaw .com E-mail: martinc(fi[sec . ov Lewis N . Brown, Esq. Dyanne E . Feinberg, Esq . Andrew L . Jiranek Michael J . Dell , Esq . Brown, P .A. McKennon Shelton & Henn LLP Kramer Levin Naftalis & Frankel LLP Gilbride, Heller & Tower, Suite 1570 401 East Pratt St ., Suite 2315 919 Third Avenue One Biscayne Two South Biscayne Blvd . Baltimore, Md. 21202 New York, New York 10022 E-mail : [email protected] Miami, FL 3313 1 E-mail : andrew.jiranek@mshll p.com E-mail: lbrown@,ghblaw . com/dfeinberggghblaw .com Daniel A. Casey, Esq . Seth M . Schwartz, Esq. John Hochman, Esq . Kirkpatrick & Lockhar . Meagher & Flom LLP Schindler Cohen & Hochman LL P t Miami Center - 20'h Floor Skadden, Arps, Slate 201 S . Biscayne Blvd. Four Times Square 100 Wall Street, 15`h Floo r Miami, FL 33131 New York, New York 10036 New York, New York 1000 5 E-mail : [email protected] E-mail : sschwart@skadden .com. E-mail : jhochman @schlaw .com
David Cimo Esq . Robert T . Wright, Esq . Robert Pershes, Esq . Genovese Joblove & Battista, P .A. Coffey & Wright, LL P Buckingham , Doolittle & Bouroughs, LLP Bank of Tower, 36th Floor Grand Bay Plaza 2500 North Military Trail , Suite 480 100 S.E. 2nd Street Penthouse 2 B 2665 S . Bayshore Driv e Boca Raton, FL 33431 Miami , FL 33131 Miami, FL 3313 3 E-mail: rpershes@bdblaw .com E-mail : deimo@gjb-law .com E-mail : rwright@coffeywright .com
William R . Maguire , Esq . Jeffrey Greilsheimer, Esq . Jacqueline Wilson Kevin E . Gunthe r Hughes Hubbard & Reed, LLP British Virgin Islands Financial Services 27 Reid Street, I" Floo r One Battery Par k Plaza Commission P.O. Box HM 305 1 New York, NY 10004 Pasea Estate, Road Town Hamilton HM N X E-mail : maguire@hughesbubb ard.com Tortola, British Virgin Islands Bermuda greilshe@hugheshubbard .com e-mail : wilsonj@bvifsc .vg e-mail: kevin .gunther@lom .bm
Mr . Dylan Wolff Michael Lauer, pro se M aging Director Norges Investor Value an 7 Dwight Lane P.O. Box 1863 Vik a P .O. Box 3331 Greenwich, CT 06831 0124 Oslo - NORWAY Road TewA, To mblauer(ii hotmaiI .co m e-mail : dw @norgesinvestor .no
William S . Fish, Esq . John G. Moon, Esq . William H. Champlin, Esq . Chadbourne & Parke LLP Tyler Cooper & Alcorn, LL P 185 Asylum St ., CityPlace 35th Floor 30 Rockefeller Plaza Hartford, CT 0610 3 New York, NY 1011 2 e-mail : fish @tylercooper.com/ e-mail : jmoon@chadbourne .com champl in(c_tylercooper . com
54036.000002 MIAMI 236715v l EXHIBIT A
Summary of Professional And Paraprofessional Time HUNTON & WILLIAMS LLP
PROFESSIONALS - LEGAL SERVICES RENDERED (TOTAL) NAME STATUS HOURS RATE TOTAL FEES FERNANDO C. ALONSO Partner 2.90 $435 .00 $,261 .50 JEFFREY P. BAST Partner 343 .30 $340 .00 $116,722.00 MARK S. DRAY Partner 7 .30 $495 .00 $3,613.50 ALBERTO M . HERNANDEZ Partner 19 .60 $385 .00 $7,546.00 LESLIE O. JUAN Partner 9 .50 $655 .00 $6,222.50 ENRIQUE MARTIN Partner 0 .50 $355 .00 $177.50 MICHAEL P . MASSAD Partner 1 .30 $400 .00 $520.00 ROBERTO R. PUPO Partner 0 .30 $355 .00 $106.50 JOHN JAY RANGE Partner 0 .60 $525 .00 $315.00 CRAIG V. RASILE Partner 425.10 $445 .00 $ 189,169 .50 JENNINGS G . RITTER, II Partner 0.50 $475 .00 $237.50 DAVID E. WELLS Partner 138.90 $355 .00 $49,309.50 ANDREW D . ZARON Partner 374. 20 $355 .00 $132,841 .00 RICHARD E. MAY Counsel 11 .00 $575.00 $6,325.00 RAFAEL G . PROHIAS Counsel 87.90 $325.00 $28,567.50 RICHARD J . RAZOOK Counsel 14.00 $450.00 $6,300.00 ALEXANDRA M . AGUIRRE Associate 58.90 $240.00 $ 14,136.00 MICHAEL W . ALEXANDER Associate 21 .70 $275. 00 $5,967.50 PHILIP S. BUBB Associate 47.00 $200.00 $9,400.00 COURTNEY A . CAPRIO Associate 426.70 $180.00 $76,806.00 K. STACIE CORBETT Associate 36.60 $220.00 $8,052.00 MICHAEL A. DUNN Associate 60.40 $ 180.00 $ 10,872.00 KEVIN M . ECKHARDT Associate 313.00 $260.00 $81,380.00 ARTURO J. FERNANDEZ Associate 22.00 $ 180.00 $3,960.00 ANTHONY R . FOXX Associate 37.90 $305.00 $ 11,559.50 DANA MICHELLE GRYNIUK Associate 18.10 $200.00 $3,620.00 JARRETT L. HALE Associate 2.20 $220. 00 $484.00 JOSEPH F . HESSION Associate 108.40 $305.00 $33,062.00 STEVEN T. HOLMES Associate 0.30 $265.00 $79.50 ANTHONY D. LEHMAN Associate 180 .50 $285.00 $51,442.50 CARRIE M . LEVINE Associate 17 .90 $215.00 $3,848.50 GUILLERMO A . LEVY Associate 1 .50 $260.00 $390.00 GUSTAVO J . MEMBIELA Associate 5 .10 $235.00 $1,198.50 ALEJANDRA PENNIE Associate 8 .20 $295.00 $2,419.00 BENJAMIN W. PREVOST Associate 63 .90 $180.00 $ 11,502.00 AMY ALCOKE QUACKENBOSS Associate 37 .90 $325 .00 $12 ,317 .50 AHMED RIESGO Associate 132 .10 $ 180 .00 $23,778.00 CARLO ALEXANDE R Associate 24 .30 $180 .00 $4,374.00 RODRIGUEZ ALEX MCLANE SOTO Associate 56 .20 $215 .00 $ 12,083.00 FRADYN SUAREZ Associate 144 .00 $200 .00 $28,800.00 JAMES JAY THORNTON Associate 185 .80 $260 .00 $48,308.00 BENJAMIN WOLKOV Associate 31 .30 $260 .00 $8,138.00 TOTAL BY PROFESSIONAL 3478. 8 $1,016,212.00
PARAPROFESSIONAL SERVICES RENDERED TOTA L NAME STATUS HOURS RATE TOTAL FEES CAROL A. CASEY Paralegal 23.70 $120.00 $2,844.00 VIVIAN CHAPUNOFF Paralegal 253. 70 $65. 00 $16,490.50 NANCY F. COHEN Paralegal 76.90 $150.00 $ 11,535.00 RAYMOND E . GALBRAITH Paralegal 1 .00 $130.00 $130.00 AMELIA R. GOULD Paralegal 6.20 $120.00 $744 .00 GLENDA INGRID GUTSTEIN Paralegal 187.20 $130.00 $24,336.00 AL HERNANDEZ Paralegal 100.40 $150.00 $15,060.00 CAROL ANN KRAINSON Paralegal 44.00 $115.00 $5,060.00 HORTENSIA LECON Paralegal 20.10 $120.00 $2,412.00 BETH ANNE MOON Paralegal 244. 80 $160.00 $39,168.00 UNEEK R . MURPHY Paralegal 26.00 $100.00 $2,600.00 BETTY C. RICHARDS Paralegal 1 .00 $150. 00 $150 .00 DENISE A. RUDASILL Paralegal 23. 10 $120. 00 $2,772.00 ARETINA K. SAMUEL Paralegal 4.20 $125. 00 $525.00 NAOMI STEINBERG Paralegal 16.70 $150.00 $2,505.00 RANDYALMAGUER Staff 181 . 70 $45.00 $8,176.50 DEANETTE PAULA DUNN Staff 187 .70 $44.41 $8,335.23 CHRISTOPHER R. HIGGINS Staff 4.20 $160.00 $672.00 ETHLYN E. LEWIS Staff 10.80 $125.00 $1,350.00 TOM M . MCKENNEY Staff 4. 00 $170. 00 $680 .00 COLETTE J. PERKINS Staff 1 .00 $130. 00 $130 .00 MARITZA SERENTILL Staff 63.00 $65. 00 $4,095.00 NICHOLAS P. SERFASS Staff 19.60 $45. 00 $882 .00 RAFAEL TORNES Staff 90.00 $45.00 $4,050.00 JACQUELINE CRESPO Professional 2.50 $65. 00 $162 .50 Assistant MONICA C. TUCKER Professional 11 .40 $65.00 $741 .00 Assistant KERRI-ANN M. PHILP Librarian 2 .20 $140 .00 $308 .00 MICHAEL VALLEJO Other 30 .90 $45 .00 $1,390.50
TOTAL by Paraprofessional 1638 $157,304 .23
RECEIVER SERVICES RENDERED (TOTAL NAME STATUS HOURS RATE TOTAL FEES MARTY Partner 39.30 $470. 00 $18,471 .00 STEINBERG TOTAL 39.3 $18,471 .00
TURNSTONE INVESTIGATIVE GROUP SERVICES RENDERED TOTA L NAME STATUS HOURS RATE TOTAL FEES TURNSTONE Investigator 4.00 $200.00 $800.00 TURNSTONE09248 Investigator 50.25 $200.00 $10,050.00 TURNSTONE09364 Investigator 1 .00 $200.00 $200 .00 TURNSTONE4113 Investigator 8.00 $200.00 $1,600.00 TURNSTONE8764 Investigator 94.60 $200.00 $18,920.00 TURNSTONE8991 Investigator 83.50 $200 .00 $16,700 .00 TOTAL 241.35 $48,270.00
TOTAL FOR SERVICES RENDERE D 5397.45 $1,241,257.23 1
64036.000002 MIAMI 286604v 1 EXHIBIT B
ACTIVITY CODE CATEGORY : B110 CASE ADMINISTRATION NAME Code HRS VALUE RATE
BAST B110 13.30 4,522 .00 340.00 CRESPO B110 1 .50 97.50 65.00 DYE B110 0.00 0.00 ECKHARDT B110 3.10 806.00 260.00 FOXX B110 0.00 0.00 305 .00 GUTSTEIN B110 0.20 26.00 130.00 HESSION B110 5.30 1,616.50 305 .00 RASILE B110 68.20 30,556.85 445 .00 RIESGO B110 1 .50 270.00 180.00 RUDASILL B1 10 0.40 48.00 120 .00 SOTO B110 2.60 559.00 215.00 SUAREZ B110 0.70 140.00 200.00 TUCKER BI 10 4.00 260.00 65.00 ZARON B110 51 .20 18,176.00 355.00
Total 152.00 57,077.85 EXHIBIT B
ACTIVITY CODE CATEGORY : B120 ASSET ANALYSIS AND RECOVERY NAME Code HRS VALUE RATE AGUIRRE B 120 13.90 3,336.00 240.00 ALONSO B120 2.90 1,261 .50 435.00 BAST B 120 6.50 2,210.00 340.00 CAPRIO B 120 24. 10 4,338.00 180.00 ECKHARDT B 120 3.20 832.00 260.00 FUCHS B 120 0.00 0.00 HERNANDEZ B 120 3.50 525.00 150.00 HERNANDEZ B120 15.80 6,083.00 385.00 KRAINSON B120 35.60 4,094.00 115.00 LECON B 120 15.60 1,872.00 120.00 PHILP B 120 0.50 70.00 140.00 PUPO B120 0.30 106.50 355 .00 QUACKENBOSS B120 4.60 1,495.00 325 .00 RASILE B120 11 .20 4,990.41 445.00 RIESGO B120 13. 80 2,484 .00 180.00 SUAREZ B120 24.10 4,820.00 200.00 WELLS B120 106.30 37,742. 82 355 .00 WOLKOV B120 31 .30 8,138.00 260.00 ZARON B120 22.70 8,058.50 355.00
Total 335.90 92,456.73 EXHIBIT B
ACTIVITY CODE CATEGORY: B130 ASSET DISPOSITIO N NAME Code HRS VALUE RATE AGUIRRE B130 42.20 10,128.00 240.00 BAST B 130 37.10 12,614.00 340.00 ECKHARDT B130 0.30 78.00 260.00 GRYNIUK B130 7.00 1,400.00 200.00 GUTSTEIN B130 0.50 65.00 130.00 HERNANDEZ B130 3.80 1,463.00 385.00 MARTIN B130 0.50 177.50 355.00 RASILE B130 33 .70 15,200.63 445 .00 RIESGO B130 19.00 3,420.00 180.00 SUAREZ B130 46.50 9,300.00 200.00 WELLS B130 23.30 8,289.22 355.00 ZARON B130 46.20 16,401 .00 355 .00 1 1 1 Total 260.10 78,536.35 -:::d EXHIBIT B
ACTIVITY CODE CATEGORY: B150 INVESTOR CREDITOR COMMUNICATIO N NAME Code HRS VALUE RATE BAST B150 12 .30 4,182.00 340.00 ECKHARDT B150 7 .50 1,950.00 260.00 RASILE B150 17.60 7,663.22 445.00 SOTO B 150 27.90 5,998 . 50 215.00 SUAREZ B150 2.60 520.00 200.00
Total 67.90 20,313.72 ACTIVITY CODE CATEGORY: B160 FEE/EMPLOYMENT APPLICATIO N NAME Code HRS VALUE RATE BAST B 160 26.80 9,112.00 340.00 CAPRIO B160 16.50 2,970.00 180.00 ECKHARDT B160 30.20 7,852.00 260.00 GUTSTEIN B160 93 .60 12,168 .00 130.00 RASILE B 160 47.70 21,070.47 445.00 RUDASILL B 160 12.80 1,536.00 120.00 SOTO B160 6.90 1,483 .50 215.00 SUAREZ B 160 0.20 40.00 200.00 VALLEJO B 160 0.00 0.00 45.00 ZARON B 160 41 .60 14,768 .00 355.00
Total 276.30 70,999 .97 EXHIBIT B
ACTIVITY CODE CATEGORY: B170 FEE/EMPLOYMENT OBJECTION S NAME Code HRS VALUE RATE ALEXANDER B170 3 .20 880.00 275.00 BAST B170 3 .90 1,326.00 340.00 CAPRIO B170 0.30 54.00 180.00 DRAY B170 0.30 148.50 495.00 ECKHARDT B 170 36.20 9,412.00 260.00 RASILE B170 23 .10 10,250.57 445.00 SOTO B170 7.50 1,612.50 215.00 TUCKER B170 3 .00 195.00 65.00 ZARON B 170 2.30 816.50 355.00
Total 79.80 24,695.07 EXHIBIT B
ACTIVITY CODE CATEGORY : B181 PLAN OF DISTRIBUTIO N NAME Code HRS VALUE RATE BAST B181 6.40 2,176.00 340.00 ECKHARDT B181 9 .20 2,392.00 260.00 RASILE B181 1 .10 496.35 445.00 ZARON B181 2.60 923.00 355.00
Total 19.30 5,987.35 EXHIBIT B
ACTIVITY CODE CATEGORY : B182 PREPARATION AND REVIEW OF REPORT S NAME Code HRS VALUE RATE BAST B182 6.10 2,074.00 340 .00 HERNANDEZ B 182 4.00 600.00 150.00 RIESGO B182 1 .70 306.00 180.00 SERENTILL B182 0.00 0 .00 65.00 SUAREZ B182 1 .00 200 .00 200.00
Total 12.80 3,180.00 EXHIBIT B
ACTIVITY CODE CATEGORY : B184 RECEIVE R NAME Code HRS VALUE RATE STEINBERG B 184 39.30 18,471 .00 470.00
Total 39.30 18,471.00 EXHIBIT B
ACTIVITY CODE CATEGORY: B210 BUSINESS OPERATIONS NAME Code HRS VALUE RATE BAST B210 5.10 1,734 .00 340.00 GUTSTEIN B210 19.20 2,496.00 130.00 PROHIAS B210 87.90 28,567.50 325.00 RASILE B210 13 .40 6,031 .08 445.00 RIESGO B210 5.70 1,026.00 180.00 SUAREZ B210 19.20 3,840.00 200.00 WELLS B210 4.80 1,717.56 355.00 ZARON B210 1 .80 639 .00 355.00
157.10 46,051 .14 ACTIVITY CODE CATEGORY : B217 ACCOUNTING/AUDITING NAME Code HRS VALUE RATE BAST B217 16.00 5,440.00 340.00 GUTSTEIN B217 1 .00 130.00 130 .00 RASILE B217 2. 50 1,103 .11 445 .00 ZARON B217 2.20 781 .00 355 .00
Total 21 .70 7,454 .11 EXHIBIT B
ACTIVITY CODE CATEGORY : B219 TURNSTONE INVESTIGATIO N NAME Code HRS VALUE RATE TURNSTONE09190 B219 4.00 800.00 200.00 TURNSTONE09248 B219 50.25 10,050.00 200.00 TURNSTONE09364 B219 1 .00 200.00 200.00 TURNSTONE4113 B219 8 .00 1,600.00 200.00 TURNSTONE8764 B219 56.90 11,380.00 200.00 TURNSTONE8991 B219 83 .50 16,700.00 200.00
Total 203.65 40,730.00 EXHIBIT B
ACTIVITY CODE CATEGORY : B220 EMPLOYEE BENEFITS/PENSIONS NAME Code HRS VALUE RATE ALEXANDER B220 15 .70 4,317.50 275.00 BAST B220 1 .40 476.00 340.00 DRAY B220 5 .70 2,821 .50 495.00
Total 22.80 7,615.00 EXHIBIT B
ACTIVITY CODE CATEGORY : B223 DATA ANALYSI S NAME Code HRS VALUE RATE RASILE B223 0.50 225.61 445.00 ZARON B223 0.00 0.00 355.00
Total 0.50 225.61 EXHIBIT B
ACTIVITY CODE CATEGORY: B2228 DEPARTMENT OF JUSTICE INVESTIGATION NAME Code HRS VALUE RATE BAST B228 0.20 68.00 340.00 RASILE B228 0.70 302.42 445.00 ZARON B228 0.90 319.50 355.00
Total 1.80 689.92 EXHIBIT B
ACTIVITY CODE CATEGORY: B233 DOCUMENT MANAGEMEN T NAME Code HRS VALUE RATE ALMAGUER B233 99.30 4,473 .19 45 .00 BAST B233 0.20 68.00 340.00 DUNN B233 8.00 355.53 45 .00 FOXX B233 0.30 91 .66 305 .00 GALBRAITH B233 1 .00 130.00 130.00 GOULD B233 1 .50 180.00 120.00 HIGGINS B233 4.20 672.00 160 .00 LEHMAN B233 6.20 1,767.00 285 .00 LEWIS B233 10.80 1,350.00 125 .00 MCKENNEY B233 4.00 680.00 170.00 MOON B233 114.60 18,336.00 160.00 PENNIE B233 2.40 708.00 295 .00 SERENTILL B233 57.80 3,757.00 65 .00 SERFASS B233 19.60 882.00 45 .00 TORNES B233 51 .40 2,313 .00 45 .00 TUCKER B233 0.80 52.00 65 .00 VALLEJO B233 4.40 198.00 45 .00
Total 386.50 36,013.38 EXHIBIT B
ACTIVITY CODE CATEGORY : B234 DOCUMENT REVIEW NAME Code HRS VALUE RATE ALMAGUER B234 80.90 3,635.57 45 .00 BAST B234 3.50 1,190.00 340.00 BUBB B234 47.00 9,400.00 200.00 CASEY B234 23.70 2,844.00 120.00 CHAPUNOFF B234 44.30 2,879.50 65 .00 COHEN B234 76.90 11,535 .00 150.00 CORBETT B234 36.60 8,052.00 220.00 DUNN B234 179.70 8,090 .97 45 .00 DUNN B234 60.40 10,872.00 180.00 FERNANDEZ B234 16.30 2,934.00 180.00 FOXX B234 33.70 10,278.27 305 .00 HESSION B234 97.60 29,768.00 305 .00 KRAINSON B234 5.20 598.00 115 .00 LEHMAN B234 34.40 9,804.00 285 .00 MOON B234 120.80 19,328.00 160.00 MURPHY B234 26.00 2,600.00 100.00 PREVOST B234 24.60 4,428.00 180.00 RASILE B234 0.50 225.61 445 .00 RICHARDS B234 1.00 150.00 150.00 RUDASILL B234 9.90 1,188.00 120.00 SAMUEL B234 4.20 525.00 125.00 SERENTILL B234 1 .80 117.00 65.00 TORNES B234 38.60 1,737.00 45.00 VALLEJO B234 10.20 459.00 45.00 ZARON B234 1 .20 426 .00 355.00
Total 979.00 142,953.65 EXHIBIT B
ACTIVITY CODE CAT EGORY: B235 INVESTIGATIO N NAME Code HRS VALUE RATE BAST B235 0 .90 306.00 340.00 RASILE B235 30.70 13,822 .00 445.00 TURNSTONE8764 B235 37 .70 7,540.00 200.00 ZARON 2235 0 .90 319.50 355.00
Total 70.20 21 ,987.50 EXHIBIT B
ACTIVITY CODE CATEGORY : B235 INVESTIGATION NAME Code HRS VALUE RATE AGUIRRE B236 2.80 672.00 240.00 ECKHARDT B236 0.40 104.00 260.00 GRYNIUK B236 11 .10 2,220.00 200.00 LEVINE B236 17.90 3,848.50 215.00 LEVY B236 1 .50 390.00 260.00 RIESGO B236 54.00 9,720.00 180.00 SUAREZ B236 47.70 9,540.00 200.00 WELLS B236 4.50 1,559.90 355.00
Total 139.90 28,054.40 EXHIBIT B
ACTIVITY CODE CATEGORY : B240 TAX ISSUE S NAME Code HRS VALUE RATE BAST B240 3 .80 1,292.00 340.00 MAY B240 11 .00 6,325.00 575.00 RASILE B240 2. 10 932.22 445.00 RAZOOK B240 14.00 6,300.00 450.00 TUCKER B240 0.50 32.50 65 .00 VALLEJO B240 6.00 270.00 45.00
Total 37.40 15,151 .72 ACTIVITY CODE CATEGORY: B310 CLAIMS ADMINISTRATION /OBJECTION S NAME Code HRS VALUE RATE BAST B310 28.50 9,690.00 340.00 CAPRIO B310 29.30 5,274.00 180.00 CHAPUNOFF B310 0.20 13.00 65.00 GUTSTEIN B310 4.50 585.00 130.00 HALE B310 1 .70 374.00 220.00 HOLMES B310 0.00 0.00 265.00 MOON B310 2.30 368.00 160.00 RASILE B310 1 .00 451 .22 445.00 VALLEJO B310 10.30 463 .50 45.00 ZARON B310 0.60 213 .00 355.00
Total 78.40 17,431 .72 EXHIBIT B
ACTIVITY CODE CATEGORY : B510 LITIGATION GENERA L NAME Code HRS VALUE RATE BAST B510 13 .20 4,488.00 340.00 CAPRIO B510 70.10 12,618.00 180.00 CRESPO B510 0.00 0.00 65.00 ECKHARDT B510 29.60 7,696.00 260.00 FOXX B510 0.30 91 .66 305.00 GUTSTEIN B510 18.90 2,457.00 130.00 HERNANDEZ B510 17.00 2,550.00 150.00 LEHMAN B510 0.70 199.50 285.00 LEWIS B510 0.00 0.00 125.00 MEMBIELA B510 5.10 1,198.50 235.00 PHILP B510 1 .70 238.00 140.00 RASILE B510 21 .50 9,471 .00 445.00 RIESGO B510 36.40 6,552.00 180.00 RUDASILL B510 0.00 0.00 120.00 SERENTILL B510 0 .30 19.50 65.00 SOTO B510 7.50 1,612.50 215.00 STEINBERG B510 7 .90 1,185.00 150.00 SUAREZ B510 1 .00 200.00 200.00 TUCKER B510 0.00 0.00 65.00 ZARON B510 20.50 7,277.50 355.00
Total 251 .70 57,854.16 ACTIVITY CODE CATEGORY: B540 DISCOVERY MATTERS NAME Code HRS VALUE RATE ALMAGUER B540 1 .50 67 .74 45.00 BAST B540 1 .40 476.00 340.00 CAPRIO B540 209.70 37,746.00 180.00 CHAPUNOFF B540 192.20 12,493 .00 65.00 CRESPO B540 1 .00 65 .00 65.00 GOULD B540 0.00 0.00 120.00 HALE B540 0.50 110.00 220.00 HOLMES B540 0.30 79 .50 265.00 JUAN B540 9.50 6,222 .50 655.00 KRAINSON B540 3 .20 368.00 115.00 LEHMAN B540 3 .40 969 .00 285.00 MARTIN B540 0.00 0.00 355.00 MASSAD B540 1 .30 520.00 400.00 MOON B540 3 .90 624.00 160.00 PENNIE B540 5 .50 1,622.50 295.00 RASILE B540 7.90 3,507.09 445.00 SERENTILL B540 1 .20 78 .00 65.00 STEINBERG B540 5 .30 795 .00 150.00 TORNES B540 0.00 0 .00 45.00 TUCKER B540 0 .20 13 .00 65.00 ZARON B540 47 .80 16,969.00 355.00
Total 495.80 82,725.33 EXHIBIT B
ACTIVITY CODE CATEGORY: B550 DISCOVERY MATTER S NAME Code HRS VALUE RATE BAST B550 14.00 4,760.00 340.00 BUBB B550 0.00 0.00 200.00 CAPRIO B550 14.80 2,664.00 180.00 DUNN B550 0.00 0.00 45.00 ECKHARDT B550 89.30 23,218.00 260 .00 GUTSTEIN B550 0.20 26.00 130.00 HESSION B550 5.50 1,677.50 305 .00 PREVOST B550 4. 10 738.00 180 .00 RASILE B550 34.40 15,074.89 445.00 ZARON B550 4.10 1,455 .50 355 .00
Total 166.40 49,613.89 EXHIBIT B
ACTIVITY CODE CATEGORY : B560 LITIGATION NEPHROS NAME Code HRS VALUE RATE BAST B560 34.00 11,560.00 340.00 CAPRIO B560 47.50 8,550.00 180.00 ENJAMIO B560 0.00 0.00 GOULD B560 4.70 564.00 120.00 HERNANDEZ B560 0.00 0.00 150.00 LECON B560 4.50 540.00 120.00 MOON B560 1 .40 224.00 160.00 RASILE 8560 0.30 135.37 445.00 RUDASILL B560 0.00 0.00 120.00 SERENTILL B560 1 .90 123.50 65.00 SUAREZ B560 0.80 160.00 200.00 THORNTON B560 185.80 48,308.00 260.00 TUCKER B560 2.50 162.50 65.00 ZARON B560 6.60 2,343.00 355.00
Total 290.00 72,670.37 EXHIBIT B
ACTIVITY CODE CATEGORY: B570 LITIGATION - SE C NAME Code HRS VALUE RATE BAST B570 2.60 884.00 340 .00 CAPRIO B570 0.50 90.00 180.00 CRESPO B570 0.00 0.00 65.00 ECKHARDT B570 0.30 78.00 260.00 GUTSTEIN B570 0.00 0.00 130.00 RASILE B570 19. 10 8,585.82 445.00 ZARON B570 12 .20 4,331 .00 355.00
Total 34.70 13,968.82 EXHIBIT B
ACTIVITY CODE CATEGORY: B575 LITIGATION - CITCO NAME Code HRS VALUE RATE ALEXANDER B575 2.50 687.50 275 .00 BAST B575 14.40 4,896.00 340.00 DRAY B575 1 .00 495 .00 495.00 ECKHARDT B575 21 .70 5,642.00 260.00 FERNANDEZ B575 5 .70 1,026.00 180.00 FOXX B575 3 .60 1,097 .91 305.00 GUTSTEIN B575 4.00 520.00 130.00 LEHMAN B575 34.80 9,918.00 285.00 MOON B575 1 .80 288.00 160.00 PENNIE B575 0.00 0.00 295.00 PREVOST B575 35 .20 6,336.00 180.00 RANGE B575 0.60 315 .00 525.00 RASILE B575 64.00 28,463 .92 445.00 RITTER, 11 B575 0.50 237.50 475.00 RODRIGUEZ B575 24.30 4,374.00 180.00 ZARON B575 77.60 27,548.00 355.00
Total 291 .70 91,844.83 EXHIBIT B
ACTIVITY CODE CATEGORY: B590 FRAUDULENT TRANSFER NAME Code HRS VALUE RATE BAST B590 81 .90 27,846.00 340.00 CAPRIO B590 9.20 1,656.00 180.00 CHAPUNOFF B590 17.00 1,105.00 65 .00 CRESPO B590 0.00 0.00 65 .00 ECKHARDT B590 4.70 1,222.00 260.00 GUTSTEIN B590 38.40 4,992.00 130.00 HERNANDEZ B590 75.90 11,385.00 150.00 RASILE B590 1 .00 451 .22 445 .00 TUCKER B590 0.40 26.00 65.00 ZARON B590 8.60 3 ,053 .00 355 .00
Total 237.10 51,736.22 EXHIBIT B
ACTIVITY CODE CATEGORY: B595 LITIGATION - INSIDER S NAME Code HRS VALUE RATE ALEXANDER B595 0.30 82.50 275 .00 BAST B595 1 .90 646.00 340.00 CAPRIO B595 4.70 846.00 180.00 DRAY B595 0.30 148.50 495 .00 LEHMAN B595 101 .00 28,785 .00 285 .00 PERKINS B595 1 .00 130.00 130.00 QUACKENBOSS B595 33.30 10,822.50 325 .00 RASILE B595 11 .70 5,177.61 445 .00 ZARON B595 11 .30 4,011 .50 355 .00
Total 165.50 50,649.61 EXHIBIT B
ACTIVITY CODE CATEGORY : B596 LITIGATION - PW C NAME Code HRS VALUE RATE BAST B596 0.40 136.00 340.00 ECKHARDT B596 2.10 546 .00 260.00 RASILE B596 6.90 3,040.52 445 .00 ZARON B596 3 .70 1,313 .50 355.00
Total 13.10 5,036 .02 EXHIBIT B
ACTIVITY CODE CATEGORY : B701 MICHAEL LAUE R NAME Code HRS VALUE RATE BAST B701 7.50 2,550.00 340.00 ECKHARDT B701 75 .20 19,552.00 260.00 GUTSTEIN B701 6.70 871 .00 130.00 PENNIE B701 0.30 88.50 295.00 RASILE B701 4.30 1,940.29 445.00 SOTO B701 3 .80 817.00 215.00 STEINBERG B701 3 .50 525.00 150.00 SUAREZ B701 0.20 40.00 200.00 ZARON B701 7.60 2,698.00 355.00
Total 109.10 29,081.79 EXHIBIT 2
Summary of Requested Reimbursement of Expenses (HUNTON & WILLIAMS LLP )
Description Amount
Copying 8,358.20 Outside Printing 223.1 8 Telephone 445.35 Online Research 21,968 .83 Delivery services/messengers 8,742.24 Postage 964 .1 3 Local travel 33 .76 Out-of-Town Travel 1,987.44 Meals 364 .7 1 Subpoena fees 7,548 .1 3 Witness fees -160 .40 Deposition Transcripts 1,796 .52 Trial Transcripts 100 .00 Litigation Support 25,719 .92 Experts 1,259 .75 Local counsel 250.00 Other-Miscellaneous -1,416 .16 Other-Filing Fees 1,767 .00 Other-Secretary of State Fees 30 .00 TOTAL EXPENSES 79,982.60