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Federal Trade Commission v. Health Formulas, LLC, 2:14-cv-01649-RFB-GWF. (2016)

Court: District Court, D. Nevada Number: infdco20160808b79 Visitors: 4
Filed: Aug. 04, 2016
Latest Update: Aug. 04, 2016
Summary: [PROPOSED] ORDER GRANTING MOTION FOR: (1) ORDER APPROVING AND AUTHORIZING PAYMENT OF FEES AND EXPENSES OF THE RECEIVER AND ITS PROFESSIONALS AS TO THE MILLER RECEIVERSHIP DEFENDANTS FOR THE PERIOD FROM SEPTEMBER 1, 2015 THROUGH FEBRUARY 29, 2016; (2) ORDER APPROVING FINAL REPORT AND ACCOUNTING AND WIND UP OF CSC RECEIVERSHIP, APPROVING AND AUTHORIZING PAYMENT OF FEES AND EXPENSES OF THE RECEIVER AND ITS PROFESSIONALS FROM SEPTEMBER 1, 2015 THROUGH THE CLOSING OF THE CSC RECEIVERSHIP ESTATE IN
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[PROPOSED] ORDER GRANTING MOTION FOR: (1) ORDER APPROVING AND AUTHORIZING PAYMENT OF FEES AND EXPENSES OF THE RECEIVER AND ITS PROFESSIONALS AS TO THE MILLER RECEIVERSHIP DEFENDANTS FOR THE PERIOD FROM SEPTEMBER 1, 2015 THROUGH FEBRUARY 29, 2016; (2) ORDER APPROVING FINAL REPORT AND ACCOUNTING AND WIND UP OF CSC RECEIVERSHIP, APPROVING AND AUTHORIZING PAYMENT OF FEES AND EXPENSES OF THE RECEIVER AND ITS PROFESSIONALS FROM SEPTEMBER 1, 2015 THROUGH THE CLOSING OF THE CSC RECEIVERSHIP ESTATE IN CONNECTION THEREWITH AND FOR RELATED RELIEF; AND (3) ORDER GRANTING RELIEF FROM NOTICE UNDER LOCAL RULE 66-5

The matter of the Motion for: (1) Order Approving and Authorizing Payment of Fees and Expenses of the Receiver and Its Professionals as to the Miller Receivership Defendants from September 1, 2015 through February 29, 2016; (2) Order Approving Final Report and Accounting and Wind Up of CSC Receivership, Approving and Authorizing Payment of Fees and Expenses of the Receiver and Its Professionals from September 1, 2015 Through the Closing of the CSC Receivership Estate in Connection Therewith and for Related Relief; and (3) for Order Granting Limited Notice Under Local Rule 66-5 ("Wind Up/Fee Motion") filed by Robb Evans & Associates LLC ("Receiver"), initially appointed Temporary Receiver ("Receiver") in this action pursuant to the Court's Order Granting Ex Parte Motion for Temporary Restraining Order (#5) and Appointing Receiver (#9) ("Temporary Restraining Order") issued October 9, 2014 (Doc. No. 12) and whose appointment was continued under the Stipulated Preliminary Injunction as to Defendants Chapnick, Smukler & Chapnick, Inc., Brandon Chapnick and Keith Smukler ("Stipulated Preliminary Injunction") issued November 17, 2014 (Doc. No. 61) and the Court's Opinion and Order ("Miller Preliminary Injunction") issued May 6, 2015 (Doc. No. 149), came on regularly for determination before the Honorable Richard F. Boulware, II, United States District Judge presiding. The Court having reviewed the Wind Up/Fee Motion, and oppositions or responses to the Motion, if any, and good cause appearing therefor,

IT IS ORDERED that:

1. The Wind Up/Fee Motion and all relief sought therein is hereby granted; 2. Without limiting the generality of the foregoing:

A. The receivership fees and expenses incurred for the six-month period from September 1, 2015 through February 29, 2016 ("Expense Period") to the Receiver and its professionals, including the fees of the Receiver, the Receiver's members, deputies, agents, staff and professionals, and costs incurred during the Expense Period in the total sum of $67,755.46 are hereby approved and authorized to be paid, including the fees of the Receiver, its members, deputies, agents and staff of $29,894.50, the Receiver's expenses of $1,113.89, and the Receiver's legal fees of $36,040.05 and costs of $707.02 for the services of the Receiver's lead counsel Dentons US LLP ("Dentons"). Of the total receivership fees and expenses incurred to the Receiver and its professionals of $67,755.46 during this Expense Period, the sum of $7,005.74 shall be allocated to and paid from funds transferred into the estate from accounts of defendant Chapnick, Smukler & Chapnick, Inc. ("CSC"), with the remainder of $60,749.72 allocated to and paid from the remaining receivership estate funds other than those transferred into the estate from accounts of CSC;

B. With respect to the receivership estate concerning CSC, pursuant to Section IX of the Stipulated Order for Permanent Injunction and Monetary Judgment Regarding Defendants Chapnick, Smukler & Chapnick, Inc., Brandon Chapnick and Keith Smukler filed February 16, 2016 (Doc. No. 195) ("CSC Final Judgment"):

(1) The Receiver Administrative Expenses for CSC and Fund Balance ("CSC Final Accounting"), a true and correct copy of which is attached as Exhibit 2 to the Declaration of Brick Kane filed in support of the Wind Up/Fee Motion, is hereby approved, and all payments made by the Receiver in connection with the administration of the receivership estate as it concerns CSC are hereby approved and confirmed; (2) The Receiver is authorized to wind up the receivership estate created under the Stipulated Preliminary Injunction concerning CSC only; (3) All actions and activities taken by or on behalf of the Receiver and all payments made by the Receiver• in connection with the administration of the receivership estate as it concerns CSC are hereby approved and confirmed; (4) All actual fees and expenses incurred by the Receiver and allocated to CSC for the period of September 1, 2015 through the closing of the CSC receivership, estimated to be in the total sum of $18,560.74, including (1) the sum of $7,005.74 proposed to be allocated and paid from assets of CSC for the Expense Period, as set forth in paragraph 2.A. above, comprised of (i) fees of $6,626.83 and costs of $11.44 incurred by the Receiver for the Expense Period, and (ii) fees of $360.40 and costs of $7.07 for attorneys' fees and expenses for the services of the Receiver's counsel Dentons for the Expense Period; (2) estimated Receiver fees of $1,510.00 and estimated costs of $45.00 from March 1, 2016 through the closing of the CSC receivership estate related to services for the wind up and closing of the receivership estate as it concerns CSC; and (3) estimated Receiver attorneys' fees of $9,500.00 and legal expenses of $500.00 from March 1, 2016 through the closing of the CSC receivership estate related to services for the wind up and closing of the receivership estate as it concerns CSC, as set forth in the CSC Final Accounting, Exhibit 2 to the Declaration of Brick Kane, are hereby approved and authorized to be paid; (5) The Receiver is authorized to distribute the remaining assets of the receivership estate of CSC held by the Receiver to plaintiff Federal Trade Commission ("FTC") in accordance with the CSC Final Judgment, in the estimated amount of $58,191.52 upon the closing of the CSC receivership; (6) The Receiver is authorized to return to CSC the business records of CSC in the Receiver's possession or custody, if any such records exist, with thirty days of the Receiver's closing of the CSC receivership; (7) Effective upon completion of the administration of the CSC receivership estate and distribution of the remaining CSC funds in the Receiver's possession and custody (a) neither the Receiver nor any agent, employee, member, officer, independent contractor, attorney or representative of the Receiver shall have any liability to any person or entity for any action taken in connection with carrying out the Receiver's administration of the CSC receivership estate, and the exercise of any powers, duties and responsibilities in connection therewith, and (b) the Receiver, its agents, employees, members, officers, independent contractors, attorneys and representatives are: (i) discharged; (ii) released from all claims and liabilities arising out of and/or pertaining to the CSC receivership; and (iii) relieved of all duties and responsibilities pertaining to the CSC receivership; and

C. Notice of the Wind Up/Fee Motion is deemed to be sufficient under Local Civil Rule 66-5 based on the service of the notice of the Wind Up/Fee Motion and the Wind Up/Fee Motion on all parties and service of the notice of the filing of the Wind Up/Fee Motion on all known non-consumer creditors of the estate concurrent with the filing of the Wind Up/Fee Motion with the Court.

Source:  Leagle

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