Free Motion for Disbursement of Funds - District Court of Colorado - Colorado

Case 1:01-cv-00645-JLK

Document 125-4

Filed 05/31/2006

Page 1 of 10

EXHIBIT B SUMMARY OF BILLINGS December 1, 2005 through April 30, 2006 I. CASE BACKGROUND

On October 26, 2005, the United States District Court for the District of Colorado appointed Patten, MacPhee & Associates, Inc. of Denver, Colorado (the "Receiver") as a receiver in the civil action brought by the United States Securities and Exchange Commission ("SEC") against Kenneth Roy Weare a/k/a Roy Weaver, J & K Global Marketing Corporation and AAA-Auction.com, Inc. ("Defendants"). According to the Order Appointing Receiver dated October 26, 2005, The Receiver was appointed by the Court to: · Compare Access database to summaries of deposit items listing investors names and identification numbers in order to make a determination as to which investors made deposits and received monies in order to identify the full group of potential Claimants; Devise an efficient and comprehensive method of establishing the current location of the approximately 23,000 investors; Establish a claims procedure by determining the form of notice to be sent to investors and the information investors need to submit to establish their claim, the length of time for investors to submit claims and the necessary proof investors must submit to support their claim; Give notice to investors to begin claims process through email and, if necessary, postal mail, along with developing the necessary tools, such as web pages, for collecting data from potential Claimants; Receive claims from investors and evaluate the validity of claims; Prepare distribution proposal assigning investors a pro rata share of funds after costs of the distribution plan have been deducted and submit the distribution proposal to the Court for approval; Give notice to claimants of process to contest final distribution plan; and, Administer distribution of funds from registry of the Court in coordination of the Clerk's office.

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Case 1:01-cv-00645-JLK

Document 125-4

Filed 05/31/2006

Page 2 of 10

SEC v. J&K Global Marketing Corp., et al. Exhibit B, Summary of Billings December 1, 2005 through April 30, 2006 Page 2 II. SCOPE OF ACTIVITIES AND RELATED PROFESSIONAL FEES

This is the second application for professional fees and expenses. Since our appointment, we have performed the following: · · · · · · · · · Reviewed electronic data files received from the SEC containing contact information for potential Claimants; Analyzed database for duplicate entries and compared to alternative sources of electronic data provided by the SEC; Met with representatives of the SEC to discuss the various issues pertaining to this matter and collect additional data and documentation; Began development of framework for capturing and ensuring the accuracy and authenticity of contact information for the pool of potential Claimants; Met with the website designer / database programmer to outline objectives of website and determine data to be collected; Took possession of additional documents obtained by the SEC during its investigation; Established a toll-free Investor Helpline for investors to leave information and send faxes to the Receiver; Established a website for the Receiver: www.jkgolbalreceivership.com and an email address for the Receiver: [email protected]; Worked with representatives of the SEC to establish a link between the portion of its website devoted to the J&K Global Marketing Corporation / AAA-auction, Inc. matter and the Receiver's website in order to add credibility to the Receiver's website; Established a post office box for the Receiver: PO Box 18309, Denver, Colorado 80218;

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Case 1:01-cv-00645-JLK

Document 125-4

Filed 05/31/2006

Page 3 of 10

SEC v. J&K Global Marketing Corp., et al. Exhibit B, Summary of Billings December 1, 2005 through April 30, 2006 Page 3 · On or about April 5, 2006, completed the website design in anticipation of the broadcast email notification to solicit investors to register their current contact information and the contact information of known participants in the investment fraud via the Receiver's website; Prepared the text and sent broadcast emails to a sample group of 567 investors on April 6, 2006 and to the more than 22,000 remaining investors on April 25, and 26, 2006; and, Routinely responded to email and voicemail requests from victims of the investment fraud.

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Case 1:01-cv-00645-JLK

Document 125-4

Filed 05/31/2006

Page 4 of 10

SEC v. J&K Global Marketing Corp., et al. Exhibit B, Summary of Billings December 1, 2005 through April 30, 2006 Page 4 Project Planning and Coordination Included in the hours billed in this category are meetings and telephone conferences pertaining to establishing a framework for notifying and collecting information regarding potential Claimants.
Current Application Biller
John Paul Anderson Michael D. Burns Jan L. Loser Leslie A. Patten Carolyn J. Pharis Totals

Previous Applications Hours
7.5 9.2 7.7 0.0 0.0 24.4

Cumulative Hours
9.7 10.2 7.7 0.0 0.5 28.1

Rate
$250 $250 $100 $375 $50

Hours
2.2 1.0 0.0 0.0 0.5 3.7

Fees
$550.00 $250.00 $0.00 $0.00 $25.00 $825.00

Fees
$1,875.00 $2,300.00 $770.00 $0.00 $0.00 $4,945.00

Fees
$2,425.00 $2,550.00 $770.00 $0.00 $25.00 $5,770.00

Case 1:01-cv-00645-JLK

Document 125-4

Filed 05/31/2006

Page 5 of 10

SEC v. J&K Global Marketing Corp., et al. Exhibit B, Summary of Billings December 1, 2005 through April 30, 2006 Page 5 Website and/or Database Development and Testing Included in the hours billed in this category are meetings and telephone conferences with the website and database developers. These discussions related to the data to be captured from the potential claimant pool, validation of such data, the establishment of user names and passwords of individuals and entities contained in the database seized by the SEC during its investigation. Also included are time spend preparing narrative for the website and designing, formatting and implementation of the screens to be placed on the website.
Current Application Biller
John Paul Anderson Michael D. Burns Jan L. Loser Leslie A. Patten Carolyn J. Pharis Totals

Previous Applications Hours
0.0 0.0 0.0 0.0 0.0 0.0

Cumulative Hours
11.1 17.1 0.0 0.0 0.0 28.2

Rate
$250 $250 $100 $375 $50

Hours
11.1 17.1 0.0 0.0 0.0 28.2

Fees
$2,775.00 $4,275.00 $0.00 $0.00 $0.00 $7,050.00

Fees
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Fees
$2,775.00 $4,275.00 $0.00 $0.00 $0.00 $7,050.00

Case 1:01-cv-00645-JLK

Document 125-4

Filed 05/31/2006

Page 6 of 10

SEC v. J&K Global Marketing Corp., et al. Exhibit B, Summary of Billings December 1, 2005 through April 30, 2006 Page 6 Communication and/or Meeting with the SEC Included in the hours billed in this category are meetings and telephone conferences with attorneys and/or other staff at the SEC. These meetings pertain to the SEC's investigation into the fraud engaged in by the Defendants, the SEC's steps in recover data related to the fraud, and our gaining an understanding of the work completed by the SEC in conjunction with its involvement with this matter.
Current Application Biller
John Paul Anderson Michael D. Burns Jan L. Loser Leslie A. Patten Carolyn J. Pharis Totals

Previous Applications Hours
1.5 3.3 0.0 0.0 0.0 4.8

Cumulative Hours
1.5 3.3 0.0 0.0 0.0 4.8

Rate
$250 $250 $100 $375 $50

Hours
0.0 0.0 0.0 0.0 0.0 0.0

Fees
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Fees
$375.00 $825.00 $0.00 $0.00 $0.00 $1,200.00

Fees
$375.00 $825.00 $0.00 $0.00 $0.00 $1,200.00

Case 1:01-cv-00645-JLK

Document 125-4

Filed 05/31/2006

Page 7 of 10

SEC v. J&K Global Marketing Corp., et al. Exhibit B, Summary of Billings December 1, 2005 through April 30, 2006 Page 7 Communication and/or Meeting with Investors Included in the hours billed in this category review and responses to emails sent to the Receiver by investors, listening and responding, via email, to voicemails. Also included in this category are unsolicited phone calls from investors answered by representatives of the Receiver.
Current Application Biller
John Paul Anderson Michael D. Burns Jan L. Loser Leslie A. Patten Carolyn J. Pharis Totals

Previous Applications Hours
0.0 0.0 0.0 0.0 0.0 0.0

Cumulative Hours
2.0 4.1 0.0 0.0 0.0 6.1

Rate
$250 $250 $100 $375 $50

Hours
2.0 4.1 0.0 0.0 0.0 6.1

Fees
$500.00 $1,025.00 $0.00 $0.00 $0.00 $1,525.00

Fees
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Fees
$500.00 $1,025.00 $0.00 $0.00 $0.00 $1,525.00

Case 1:01-cv-00645-JLK

Document 125-4

Filed 05/31/2006

Page 8 of 10

SEC v. J&K Global Marketing Corp., et al. Exhibit B, Summary of Billings December 1, 2005 through April 30, 2006 Page 8 Communications - Miscellaneous Hours billed in this category relate to communications meetings with parties other than counsel and investors, such as vendors or suppliers.
Current Application Biller
John Paul Anderson Michael D. Burns Jan L. Loser Leslie A. Patten Carolyn J. Pharis Totals

Previous Applications Hours
0.5 4.6 0.3 0.0 0.0 5.4

Cumulative Hours
0.5 4.6 0.3 0.0 0.0 5.4

Rate
$250 $250 $100 $375 $50

Hours
0.0 0.0 0.0 0.0 0.0 0.0

Fees
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Fees
$125.00 $1,150.00 $30.00 $0.00 $0.00 $1,305.00

Fees
$125.00 $1,150.00 $30.00 $0.00 $0.00 $1,305.00

Case 1:01-cv-00645-JLK

Document 125-4

Filed 05/31/2006

Page 9 of 10

SEC v. J&K Global Marketing Corp., et al. Exhibit B, Summary of Billings December 1, 2005 through April 30, 2006 Page 9 Database Verification and Analysis ­ Investor Related Activity Hours billed in this category relate to the verification and ongoing analysis and maintenance of an electronic database seized from the Defendants which contains an accounting of cash deposits and withdrawals as well as contact and identification information of investors. Also included in this category is the review of documents related to the validation and supplementation of this database.
Current Application Biller
John Paul Anderson Michael D. Burns Jan L. Loser Leslie A. Patten Carolyn J. Pharis Totals

Previous Applications Hours
32.5 9.9 0.0 0.0 0.0 42.4

Cumulative Hours
32.5 9.9 0.0 0.0 0.0 42.4

Rate
$250 $250 $100 $375 $50

Hours
0.0 0.0 0.0 0.0 0.0 0.0

Fees
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Fees
$8,125.00 $2,475.00 $0.00 $0.00 $0.00 $10,600.00

Fees
$8,125.00 $2,475.00 $0.00 $0.00 $0.00 $10,600.00

Case 1:01-cv-00645-JLK

Document 125-4

Filed 05/31/2006

Page 10 of 10

SEC v. J&K Global Marketing Corp., et al. Exhibit B, Summary of Billings December 1, 2005 through April 30, 2006 Page 10 III. SUMMARY OF PROFESSIONAL FEES The names and hourly rates of all professionals and para-professionals who billed time on this matter is contained at Exhibit A. Attachment 1 contains a summary of professional fees in chronological order by month, and includes detail by biller and by category for period December 1, 2005 through April 30, 2006. Attachment 3 contains copies of all PMA billing statements governed by the application for fees and expenses for the same period. IV. SUMMARY OF EXPENSES Attachment 1 contains a summary of expenses by month for the period December 1, 2005 through April 30, 2005. Attachment 2 contains a detailed listing of expenses by category for the same period. V. CONCLUSION

The Receiver believes that the requested fees and expenses are reasonable and necessary to complete the task required and discharge his duties in this matter. The Receiver has charged reasonable rates based upon the customary compensation charged by comparably skilled professionals charged with similar fiduciary duties. Further, the Receiver believes the requested fees and expenses are reasonable and necessary considering the complexity of the financial and accounting issues involved. The Receiver has reviewed the billing statements to ensure that they are reasonable and necessary.