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

Case 1:01-cv-00645-JLK

Document 125-2

Filed 05/31/2006

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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.

RECEIVER'S SECOND APPLICATION FOR FEES AND EXPENSES

Patten, MacPhee & Associates, Inc., the Court-appointed Receiver in this case, hereby applies to the Court for payment of fees and expenses for the five months from December 1, 2005 through April 30, 2006, in the amount of $18,053.42. In support thereof, the Receiver states as follows: 1. On October 26, 2005, the Court entered its Order Appointing Receiver, appointing Patten, MacPhee & Associates, Inc. to serve as Receiver and to establish and administer a claims process for investors and to propose a distribution plan to the Court for funds collected from various bank accounts in the United States and abroad. 2. On or about January 6, 2006, the Receiver, through the SEC, submitted its Initial Application for Fees and Expenses, seeking payment of fees and expenses through

Case 1:01-cv-00645-JLK

Document 125-2

Filed 05/31/2006

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November 30, 2005 in the amount of $18,099.00. The Receiver's Initial Application for Fees and Expenses was approved by the Court on or about January 10, 2006. 3. In support of this Second Application, the Receiver attaches the following:

Exhibit A - List of Patten MacPhee & Associates, Inc.'s employees and their respective billing rates. Exhibit B - Summary of Billings which includes Attachments 1, 2, and 3. The Summary of Billings sets forth the professional services rendered by the Receiver to the estate and the expenses it has incurred from December 1, 2005 through April 30, 2006. The services rendered, hours expended and expenses incurred by category and amount are set forth in Exhibit B in detail. During the period of time covered in this Second Application, the Receiver expended a total of 38.0 hours and incurred fees in the amount of $9,400.00. The Receiver incurred expenses in the amount of $8,653.42. Attachment 1 to Exhibit B sets forth in detail and in chronological order the time entries by timekeeper and also includes a summary by category of the services rendered and fees incurred. Attachment 2 to Exhibit B sets forth in detail the expenses incurred. Attachment 3 to Exhibit B sets forth detailed billing statements by month for all services rendered by Patten MacPhee & Associates, Inc. by timekeeper and by narrative description of services rendered for the relevant time. Each person who has performed services in these matters has kept daily time records for the services performed and the charges being described thereon, all of which are set forth in Attachment 3. All work performed for the estate has been billed on an hourly

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Case 1:01-cv-00645-JLK

Document 125-2

Filed 05/31/2006

Page 3 of 3

basis. The Receiver has taken special care to ensure that duplication of time and services rendered has not occurred. 4. The Receiver believes that all of the services rendered to date and expenses incurred have been necessary and reasonable, in light of the scope of the activity and number of investors. WHEREFORE, the Receiver respectfully requests that the Court enter an order granting it compensation and the reimbursement of expenses from December 1, 2005 through April 30, 2006 in the total amount of $18,053.42. Dated this 31st day of May, 2006.

Patten, MacPhee & Associates, Inc.

s/John Paul Anderson John Paul Anderson, MA, CFA 1775 Sherman Street, Suite 2900 Denver, Colorado 80203 Telephone: (303) 296-2900 Fax: (303) 296-4475

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