Free Motion for Extension of Time - District Court of Colorado - Colorado

Case 1:01-cv-00645-JLK

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO

Civil Action No. 01-cv-645-JLK SECURITIES AND EXCHANGE COMMISSION Plaintiff, v. KENNETH ROY WEARE a/k/a ROY WEAVER, J&K GLOBAL MARKETING CORPORATION, and AAA-AUCTION.COM, INC., Defendants.

MOTION FOR EXTENSION OF TIME TO ISSUE FINAL DETERMINATION NOTICES AND TO FILE STATUS REPORT

Patten, MacPhee & Associates, Inc., the Court-appointed Receiver, by and through its attorney, hereby moves the Court for an order granting an extension of time until June 29, 2007, for the Receiver to issue a Final Determination Notice to all claimants seeking reconsideration of the disallowance of all or part of their claims, and granting an extension of time until July 30, 2007 for the Receiver to file with the Court the status report required pursuant to Paragraph 54 of the Receiver's Unopposed Motion to Establish Procedures and Deadline for Filing Claims, to Approve Manner of Notice to Potential Claimants, and to Establish Claims Review Procedures ("Motion to Establish Procedures") dated November 22, 2006, and the Court's Order dated December 6, 2006. In support thereof, the Receiver states as follows:

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1.

On November 22, 2006, the Receiver filed the Motion to Establish Procedures with

the Court, outlining in detail a proposed claims administration process in this matter. That process was approved by the Court's Order dated December 6, 2006 ("Order"). 2. Pursuant to the Court's Order, the Claims Bar Date was set at March 12, 2007. In

accordance with the Motion to Establish Procedures, the Receiver then had sixty (60) days in which to review and validate each claim, and to e-mail or mail a Determination Notice to each claimant, notifying him/her of the allowance/disallowance of his/her claim. 3. On May 11, 2007, the Receiver e-mailed and/or mailed a Determination Notice to

each of the approximately 1,900 claimants in this matter. 4. Among other things, the Motion to Establish Procedures provided for a process, by

which any claimant whose claim was disallowed by the Receiver, in whole or in part, could seek a "de novo review" of the Determination Notice by delivering a request for reconsideration to the Receiver within twenty (20) days after the date of the Determination Notice. 5. Of the more than 400 claims that were disallowed by the Receiver, in whole or in part,

approximately 140 claimants have requested such reconsideration in accordance with the Motion to Establish Procedures and Order. 6. A substantial percentage of such requests for reconsideration relate to claims that the

Receiver disallowed because the transaction database provided by the SEC, and relied upon by the Receiver in validating claims, indicated a return of all, or a portion, of the claimant's investment by J&K Global Marketing Corporation. Subsequent investigation and analysis by the Receiver indicates that, while the transaction database still appears to be the most complete and reliable source of
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information on which to validate claims, it may, in fact, overstate the amounts paid to investors in many, if not most, instances. 7. The Receiver, therefore, has proposed to the SEC, and hereby proposes to the Court,

that all claims previously disallowed by the Receiver, in whole or in part, based on payment information contained in the transaction database be reviewed and confirmed through bank records prior to the issuance of Final Determination Notices by the Receiver. The Receiver believes that this additional effort is appropriate and necessary to preserve accuracy and fairness in the claims process. 8. In accordance with the Motion to Establish Procedures and Order, the Receiver must

complete its review of all requests for reconsideration and send Final Determination Notices to claimants no later than June 11, 2007. 9. Given the substantial number of requests for reconsideration and the transaction

database issue discussed above, additional time is needed by the Receiver to resolve all requests for reconsideration, to verify all payments to investors through bank records provided to the Receiver by the SEC, and to issue Final Determination Notices to claimants. 10. Pursuant to Paragraph 54 of the Motion to Establish Procedures, the Receiver is also

obligated to prepare and file with the Court a status report setting forth, among other things, a list of all claimants and the amount approved by the Receiver for each claimant within thirty (30) days following completion of the processing of all claims in accordance with the Court's Order. 11. In light of the Receiver's request for an extension of time to issue Final Determination

Notices, the Receiver also requests additional time to submit the status report required pursuant to Paragraph 54 of the Motion to Establish Procedures and the Court's Order.
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12.

Pursuant to D.C.COLO.LCIVR 7.1.A, the undersigned conferred with counsel for the

SEC regarding the matters set forth in this motion on June 5, 2007, and e-mailed a draft of this motion to her on June 7, 2007. Counsel for the SEC has expressed no objection to the requests set forth in this motion; however, due to her travel schedule, she may not have had an opportunity to review the specific contents of this motion. WHEREFORE, the Receiver respectfully requests that the Court enter an order granting this motion and extending the period of time for the Receiver to issue Final Determination Notices to claimants until June 29, 2007, and extending the period of time for the Receiver to file the status report required pursuant to Paragraph 54 of the Motion to Establish Procedures and Order until July 30, 2007. DATED this 8th day of June, 2007.

s/ Michael D. Burns Michael D. Burns, #11631 1775 Sherman Street, Suite 2900 Denver, Colorado 80203 Telephone: (303) 296-2900 FAX: (303) 296-4475 E-mail: [email protected] Attorney for Receiver

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CERTIFICATE OF SERVICE I hereby certify that on June 8, 2007, I electronically filed the foregoing MOTION FOR EXTENSION OF TIME TO ISSUE FINAL DETERMINATION NOTICES AND FILE STATUS REPORT with the Clerk of the Court using the CM/ECF system, which will send notification of such filing to the following e-mail addresses: Leslie J. Hughes [email protected] Christine J. Jobin [email protected] Thomas J. Krysa [email protected], [email protected]

s/ Michael D. Burns Michael D. Burns, #11631 Attorney for Receiver 1775 Sherman Street, Suite 2900 Denver, Colorado 80203 Telephone: (303) 296-2900 FAX: (303) 296-4475 E-mail: [email protected]

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