Free Notice (Other) - District Court of Colorado - Colorado

Case 1:01-cv-00645-JLK

Document 105-3

Filed 10/20/2005

Page 1 of 3

Krys Boyle, P.C.'s
Proposal to Act as Receiver and Distribution Agent to Administer the Claims Process in SEC v. Kenneth Roy Weare

I.

KRYS BOYLE, P.C. Krys Boyle, P.C. ("Krys Boyle") was founded in 1980 by three former members of the legal staff of the Central Regional Office (formerly known as the Denver Regional Office) of the U.S. Securities and Exchange Commission ("SEC"). The firm has historically represented clients involved in investigations and enforcement actions by the SEC and other regulatory authorities and defended such clients in class actions. Attorneys in the firm who will be involved in this project include a former staff member of the SEC's Denver office and attorneys experienced in distributing funds to aggrieved investors, representing trustees in federal bankruptcy proceedings, assisting large financial institutions in establishing claims and review procedures for resolving complaints regarding financial products, and winding down broker-dealers.

II.

PROFESSIONALS/ATTORNEYS The following professionals will assist with this project: A. THOMAS BOYLE:

Tom Boyle was a staff member of the SEC's Denver office from 1966 to 1980 and participated in investigatory, regulatory and trial activities of the office, including trials of criminal matters. In 1980, he founded Krys Boyle, P.C. While in private practice since 1980, he has represented before the SEC, issuers, broker-dealers, investment advisors, a mutual fund group, and persons associated with the foregoing, attorneys, accountants and municipalities, including the City and County of Denver. B. ANDREW SCHAUER:

Andy Schauer graduated from New York University Law School in 1992. While associated with Debevoise & Plimpton in New York, Mr. Schauer assisted large financial institutions in establishing claims and review procedures for resolving complaints regarding their financial products. He also served as Assistant Democratic Counsel for the Senate Whitewater Committee. Mr. Schauer currently represents clients in SEC investigations and enforcement proceedings and in civil securities actions, including defense of securities class actions.

Case 1:01-cv-00645-JLK

Document 105-3

Filed 10/20/2005

Page 2 of 3

Page 2 C. JAMES HUEMOELLER:

Jim Huemoeller is an experienced bankruptcy practitioner. Mr. Huemoeller has represented Chapter 11 Trustees and post-confirmation Trustees on numerous occasions in the process of claim liquidation and distribution of the assets of the bankruptcy estate. Mr. Huemoeller currently represents the post-confirmation Trustee in the Oren L. Benton bankruptcy, as well as Dan Hepner, as post-confirmation Trustee in the K&J Properties case. Mr. Huemoeller also represents Dan Hepner as Chapter 7 Trustee for The Will Hoover Company bankruptcies. D. RUSS BEAN:

Russ Bean graduated from the University of Wyoming in 1983 with a B.S. in Accounting and in 1986 with a J.D. His practice area focuses primarily on broker-dealer representation, including general compliance issues, litigation and offerings. His representation of broker-dealers has included all phases of their business, including formation and winding-up. For a number of years, Mr. Bean was general counsel and then President of a regional broker-dealer. He has an inactive license as a certified public accountant. III. RETENTION OF CLAIMS AGENT Krys Boyle has contacted several firms that specialize in claims noticing and administration to provide services as a third-party contractor to the receiver. Certain of the firms provide these services on a regular basis to bankruptcy debtors or Trustees. Others are indenture trustees who provide similar services to bondholders. We have contacted parties both locally and nationally. The range in bids has been from $100,000 to $300,000, which is obviously quite broad. We are attempting to determine the basis for the difference in the bids, and are making assumptions as to the number of times notice has to be given and the size of the notice, both in terms of number of pages and parties to be given notice. We believe that it is likely, once the differences in the bids are worked out, that the services of a competent claims noticing agent will be in the range of $150,000 to $200,000. Given the large number of potential claimants, we believe that the services of a claims agent will be essential. IV. SCOPE OF WORK As Receiver and Distribution Agent, Krys Boyle and the claims agent would use the existing Access Data base and source documents in the SEC's possession, together with publicly-available information, to formulate a list of potential aggrieved investors (with addresses and e-mail addresses when available). We will devise a methodology for a claims process that will return funds to investors who have suffered losses as a result of the defendant's scheme. This will include devising a notice and claims form and a process for the review of such claims, as well as an appeals procedure.

Case 1:01-cv-00645-JLK

Document 105-3

Filed 10/20/2005

Page 3 of 3

Page 3 V. FEES, COSTS, AND EXPENSES Krys Boyle professionals would charge between $250 and $300 per hour and its para-professionals would charge between $100 and $125 per hour in connection with this matter. Krys Boyle estimates its fees in connection with this matter to be in the $100,000 - $200,000 range.