UNITED STATES DISTRICT COURT WESTERN DISTRICT OF NORTH CAROLINA CHARLOTTE DIVISION

Transcription

1 SECURITIES AND EXCHANGE COMMISSION, UNITED STATES DISTRICT COURT WESTERN DISTRICT OF NORTH CAROLINA CHARLOTTE DIVISION Plaintiff, v. RICHARD W. DAVIS, JR., Defendant, and CASE NO. 3:16-CV-285 EIGHTH APPLICATION FOR COMPENSATION TO GRIER FURR & CRISP, PA, ATTORNEYS FOR THE RECEIVER DCG REAL ASSETS, LLC, et al., Relief Defendants. A. Cotten Wright as Receiver (the Receiver ) for the assets of DCG Real Assets, LLC; DCG Commercial Fund I, LLC; H20, LLC; DCG PMG, LLC; DCG PMF, LLC; Finely Limited, LLC; DCG Funds Underwriting, LLC; DCG ABF Management, LLC; DCG Funds Management, LLC; Davis Capital Group, Inc.; Davis Financial, Inc.; DCG Partners, LLC; DCG Real Estate Development, LLC; Huntersville Plaza Phase One, LLC; Huntersville Plaza Phase Two, LLC; North Lake Business Park, LLC; and Richard Davis Enterprises, LLC (collectively, the Receivership Defendants ), through counsel, hereby submits this Eighth Application for Compensation to Grier Furr & Crisp, PA, Attorneys for the Receiver (this Application ) for the period of April 1, 2018 through June 30, 2018 (the Application Period ). This Application has been prepared in accordance with the Billing Instructions for Receivers in Civil Actions Commenced by the U.S. Securities and Exchange Commission (the SEC Guidelines ). 1 Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 1 of 29

2 I. BACKGROUND On June 8, 2016, the Court entered its Temporary Receivership Order appointing the Receiver in this case. (Doc. No. 8). Subsequent Orders were entered on August 5, 2016 and September 22, 2016 (together with the Temporary Receivership Order, the Receivership Order ) whereby the Receivership was made permanent for the Receivership Defendants. (Doc. Nos. 50 and 64). On June 9, 2016, the Receiver filed her Motion for Authority to Employ Grier Furr and Crisp, PA as Attorneys for the Receiver (Doc. No. 9) which was granted in an Order was entered on June 10, 2016 (Doc. No. 10). GFC s services commenced on June 8, 2016, the date that the Receiver was appointed. II. SUMMARY OF PROFESSIONAL FEES AND REIMBURSEMENT OF EXPENSES REQUESTED The Receivership Order requires the Receiver to file Quarterly Fee Applications with the Court for compensation and reimbursement of expenses. This Application reflects the seventh interim application for compensation and expense reimbursement for GFC. The Receiver and GFC expended a total of hours on the Receivership case during the Application Period. The Receiver and GFC request allowance of interim compensation for professional services rendered to the Receivership Estate in the amount of $43, and reimbursement of $ in actual and necessary expenses. No time has been billed for preparing this Application. In accordance with the SEC Guidelines, the following exhibits are attached: Certification regarding compliance by the Receiver and GFC with the SEC Guidelines, Exhibit A; Standardized Fund Accounting Report for the Application Period, Exhibit B; GFC s Fee Schedule for the Application Period, Exhibit C; and 2 Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 2 of 29

3 GFC s invoice for the Application Period, setting out its time records and expenses, Exhibit D; and Summary of GFC expenses for the Application Period, Exhibit E. II. SUMMARY OF ACTIVITIES DURING THE APPLICATION PERIOD On July 9, 2018, the Receiver filed her Receiver s Ninth Report (the Report ), which was preceded by the Receiver s first eight reports filed on July 8, 2016, October 5, 2016, January 31, 2017, April 11, 2017, July 11, 2017, October 24, 2017, January 9, 2018 and April 6,2018. The Report details the activity in this case for the Application Period. During the Application Period, the Receiver and her professionals continued to work on marketing and liquidating Receivership assets; reviewing investor claims; and maintaining communications with investors. A summary of the information in the Report is included here. A. Investigations as to Assets and Asset Recovery During the Application Period, the Receiver closed on the sale of a residential lot titled to Richard Davis Enterprises, LLC located at 5330 Beacon Ridge, Granite Falls, Caldwell County, North Carolina. Although the gross sale price was $10,500.00, payment of past due taxes and homeowner s association fees resulted in a net to the Receivership Estate of only $1, During the Application Period, the Receiver sold a dump truck that did not have a title or registration for $2, The real property titled to H2O, LLC in Grayson County, Virginia, and to Finley Limited, LLC in Huntersville, North Carolina, remained on the market during the Application Period. The Report includes as an attachment a summary of the Receivership assets identified thus far and their actual or estimated values. B. Receipts and Disbursements As of the end of the Application Period, the balance in that account was $776,306.75, no 3 Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 3 of 29

4 portion of which was encumbered. C. Investor Communications Early in the case, the Receiver established an account for investors to use in communicating with the Receiver. The Receiver continues to post pleadings and other items of interest to investors on the webpage for the Receivership. In accordance with her duties as Special Master in the criminal case against Richard Davis, United States v. Davis, 3:16-cr-312 (W.D.N.C.) (the Criminal Case ), the Receiver has provided updates to victim-investors through the Receivership webpage and notices. During the Application Period, the Court in the Criminal Case held a sentencing hearing for Davis. The Receiver submitted 11 letters from investors to the Court and spoke at the hearing on behalf of investors. Davis was sentenced to 90 months in prison to be followed by two years of supervised release. D. Receivership Operations The Receiver has obtained approval to engage certain professionals, including appraisers and real estate brokers, as are necessary to fulfilling the requirements of the Case Procedures Order entered in this case on August 5, E. Claims Held by the Receivership Estate Other than the claim reflected a previously reported arbitration award and claims against the individuals who have since turned over possession of the mining equipment, the Receiver has not identified any claims held by the Receivership Estate. F. Status of Investor Claim Procedures During the prior application period, the Receiver s 93 claims were filed by investors in accordance with procedures approved by the Court. On May 15, 2018 the Receiver filed her 4 Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 4 of 29

5 claims report, and on June 19, 2018, the Receiver filed her amended claims report. The Receiver also objected to a vendor claim filed in the case. A final determination as to allowed claims had not been made as of the close of the Reporting Period. H. Forecast The Receiver is unable to forecast how long it will take to convert all Receivership assets to cash, particularly given that the remaining Receivership assets primarily consist of vacant land. By filing periodic reports, the Receiver will keep the Court and investors apprised of her best estimate of the progress of the Receivership her estimate of when the case will be closed. III. COMPENSATION REQUESTED This is an interim Application. The Court has previously approved interim compensation of $226, and reimbursement of expenses to GFC totaling $5, As of the close of the Application Period, those fees and expenses had been paid in full in accordance with the restrictions on compensation imposed by the SEC Guidelines. The Receiver continues to take care in assigning legal work so as to control the cost to the Receivership Estate. The fees requested reflect the actual hours worked by the Receiver and GFC, charged at the hourly rates in effect at the time when the services were rendered. Those rates take into account all relevant circumstances and factors as set out in the North Carolina Code of Professional Responsibility and the SEC Guidelines, including the nature of the services performed, the amount of time spent, the experience and ability of the professionals working on this case, the novelty and complexity of the specific issues involved, the time limitations imposed by the circumstances, and the responsibilities undertaken by the Receiver and GFC under the Receivership Order. The expense reimbursement requested reflects the actual and necessary expenses of the 5 Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 5 of 29

6 Receivership Estate that were advanced by GFC, billed in accordance with the SEC Guidelines. The services rendered by the Receiver and GFC during the Application Period fell into five categories: Asset Analysis and Recovery, hours; Asset Disposition, 5.90 hours; Claims Administration and Objections, 79.40; Case Administration, hours; and Case Administration and Business Operations,.10 hours. GFC s summary of the fees and expenses for the Application Period is as follows: Professional Hours Rate Total A. Cotten Wright (ACW) $ $35, Anna S. Gorman (ASG) $ $ Michael L. Martinez (MLM) $ $4, Brittany N. Lewis $ $33.00 Summer Clerk 1 (SC 1) $ $2, Total Hours and Fees: $43, Expenses: $ Total Fees and Expenses: $44, IV. THE APPLICATION SHOULD BE ALLOWED The Receiver s compensation and that of her professionals may be determined at the Court s discretion. Court s consider factors such as the complexity of the case, the benefit of the services to the Receivership Estate, the quality of the work performed, and the time records provided when ruling on an application for compensation and reimbursement of expenses. SEC Fifth Ave. Coach Lines, 364 F.Supp. 1220, 1222 (S.D.N.Y. 1973); see also SEC v. Elliott, 953 F.2d 1560, 1577 (11 th Cir. 1992) (per curiam) (the receiver is entitled to compensation if the receiver reasonably discharges the receiver s duties, and the circumstances surrounding the receivership, including the results, are relevant). Here, the Receiver and GFC respectfully submit that the services for which they seek compensation were necessary for, and beneficial to, the orderly administration of the Receivership Estate. 6 Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 6 of 29

7 WHEREFORE, the Receiver prays that the Court will enter an Order: 1) Allowing GFC s requested professional fees in the amount of $43,677.50; 2) Allowing GFC s requested reimbursement of expenses in the amount of $409.87; 3) Directing that payment of any allowed fees and expenses for GFC shall be limited to thirty percent (30%) of net future recoveries; 4) Allowing the Receiver to disburse to GFC any portion of allowed but unpaid fees and expenses upon recovery of additional funds, provided that no such disbursement shall exceed 30% of the net balance on hand in the Receivership account; and 5) Granting such further relief as is just and proper. This is 18th day of July, /s/ A. Cotten Wright A. Cotten Wright (State Bar No ) Grier Furr & Crisp, PA 101 North Tryon Street, Suite 1240 Charlotte, North Carolina Phone: Fax: cwright@grierlaw.com Exhibits: Exhibit A Receiver s Certification Exhibit B - Standardized Fund Accounting Report for the Application Period Exhibit C - GFC s Fee Schedule for the Application Period Exhibit D - GFC s invoice for the Application Period Exhibit E Summary of GFC expenses for the Application Period 7 Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 7 of 29

8 EXHIBIT A Receiver s Certification Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 8 of 29

9 SECURITIES AND EXCHANGE COMMISSION, UNITED STATES DISTRICT COURT WESTERN DISTRICT OF NORTH CAROLINA CHARLOTTE DIVISION Plaintiff, v. RICHARD W. DAVIS, JR., Defendant, and CASE NO. 3:16-CV-285 RECEIVER S CERTIFICATION IN SUPPORT OF EIGHTH APPLICATION FOR COMPENSATION TO GRIER FURR & CRISP, PA, ATTORNEYS FOR THE RECEIVER DCG REAL ASSETS, LLC, et al., Relief Defendants. A. Cotten Wright, the Receiver for the estates of the Receivership Defendants herein, hereby certifies as follows with respect to the Eighth Application for Compensation to Grier Furr & Crisp, PA, Attorneys for the Receiver and the invoice attached thereto as Exhibit D: 1. This Certification is made in compliance with the Billing Instructions for Receivers in Civil Actions Commenced by the U.S. Securities and Exchange Commission (the SEC Guidelines ). 2. I am an attorney licensed to practice law in the State of North Carolina and the United States District Court for the Western District of North Carolina. I am a member of the law firm of Grier Furr & Crisp, PA ( GFC ). 3. I have read and am familiar with GFC s application for compensation and reimbursement of expenses for the period of April 1, 2018 through June 30, 2018 (the Application ). To the best of my knowledge, information and belief formed after reasonable 1 Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 9 of 29

10 inquiry, the Application and all fees and expenses set forth therein are true and accurate and comply with the SEC Guidelines. 4. All fees contained in the Application are based on the rates listed in the GFC s fee schedule to the Application as Exhibit C, and such fees are reasonable, necessary and commensurate with the skill and experience required for the activity performed. 5. GFC has not included in the amount for which reimbursement is sought the amortization of the cost of any investment, equipment, or capital outlay in any request for expense reimbursement. 6. In seeking reimbursement for a service which the GFC justifiably purchased or contracted for from a third party (such as copying, imaging, bulk mail, messenger service, overnight courier, computerized research, or title and lien searches), GFC requests reimbursement only for the amount billed to GFC by the third-party vendor and paid by GFC to such vendor. 7. The Receiver and GFC professionals recorded time for all services provided in increments of one-tenth of an hour. 8. GFC does not seek payment for time spent preparing the Application or any documentation in support of the same. This is the 18th day of July, /s/ A. Cotten Wright A. Cotten Wright Receiver 2 Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 10 of 29

11 EXHIBIT B Standardized Fund Accounting Report for the Application Period Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 11 of 29

12 STANDARDIZED FUND ACCOUNTING REPORT for DCG Receivership - Cash Basis Receivership; 3:16-CV-285 Reporting Period 03/31/2018 to 06/30/2018 FUND ACCOUNTING Detail Subtotal Grand Total Line 1 Beginning Balance (As of 03/31/2018) 797, Increases in Fund Balance: Line 2 Business Income Line 3 Cash and Securities Line 4 Interest/Dividend Income Line 5 Business Asset Liquidation (Exhibit 1) 13, , Line 6 Personal Asset Liquidation Line 7 Third-Party Litigation Income Line 8 Miscellaneous - Other (Exhibit 1) Total Funds Available (Lines 1-8): 13, , Decreases in Fund Balance: Line 9 Disbursements to Investors Line 10 Disbursements to Receivership Operations Line 10a Disbursements to Receiver or Other Professionals (Exhibit 1) 24, , Line 10b Business Asset Expenses (Exhibit 1) 10, , Line 10c Personal Asset Expenses Line 10d Investment Expenses Line 10e Third-Party Litigation Expenses 1. Attorney Fees 2. Litigation Expenses Total Third-Party Litigation Expenses Line 10f Tax Administrator Fees and Bonds Line 10g Federal and State Tax Payments Total Disbursements for Receivership Operations 35, , Line 11 Disbursements for Distribution Expenses Paid by the Fund: Line 11a Distribution Plan Development Expenses 1. Fees: Fund Administrator Independent Distribution Consultant (IDC) Distribution Agent Consultants Legal Advisers Tax Advisers 2. Administrative Expenses 3. Miscellaneous Total Plan Development Expenses Line 11b Distribution Plan Implementation Expenses: 1. Fees: Fund Administrator Independent Distribution Consultant (IDC) Distribution Agent Consultants Legal Advisers Tax Advisers 2. Administrative Expenses 3. Investor Identification Notice Publishing Approved Plan Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 12 of 29

13 STANDARDIZED FUND ACCOUNTING REPORT for DCG Receivership - Cash Basis Receivership; 3:16-CV-285 Reporting Period 03/31/2018 to 06/30/2018 Claimant Indentification Claims Processing Web Site Maintenance/Call Center 4. Fund Administrator Bond 5. Miscellaneous 6. Federal Account for Investor Restitution (FAIR) Reporting Expenses Total Plan Implementation Expenses Total Disbursements for Distribution Expenses Paid by the Fund Line 12 Disbursement to Court/Other Line 12a Investment Expenses/Court Registry Investment System (CRIS) Fees Line 12b Federal Tax Payments Total Disbursements to Court/Other Total Funds Disbursed (Lines 9-11) Line 13 Ending Balance (As of ) Line 14 Ending Balance of Fund - Net Assets: Line 14a Cash & Cash Equivalents Line 14b Investments Line 14c Other Assets or Uncleared Funds Total Ending Balance of Fund - Net Assets 776, Other Supplemental Information Report of Items NOT to Be Paid by the Fund Line 15 Disbursements for Plan Administration Expenses Not Paid by the Fund Line 15a Plan Development Expenses Not Paid by the Fund: 1. Fees: Fund Administrator IDC Distribution Agent Consultants Legal Advisors Tax Advisors 2. Administrative Expenses 3. Miscellaneous Total Plan Development Expenses Not Paid by the Fund Line 15b Plan Implementation Expenses Not Paid by the Fund 1. Fees: Fund Administrator IDC Distribution Agent Consultants Legal Advisors Tax Advisors 2. Administrative Expenses 3. Investor Indentification Notice/Publishing Approved Plan Detail Subtotal Grand Total Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 13 of 29

14 STANDARDIZED FUND ACCOUNTING REPORT for DCG Receivership - Cash Basis Receivership; 3:16-CV-285 Reporting Period 03/31/2018 to 06/30/2018 Claimant Identification Claims Processing Web Site Maintenance/Call Center 4. Fund Administrator Bond 5. Miscellaneous 6. FAIR Reporting Expenses Total Plan Implementation Expenses Not Paid by the Fund Line 15c Tax Adminstrator Fees & Bonds Not Paid by the Fund Total Disbursements for Plan Adminstration Expenses Not Paid by the Fund Line 16 Disbursements to Court/Other Not Paid by the Fund Line 16a Investment Expenses/CRIS Fees Line 16b Federal Tax Payments Total Disbursements to Court/Other Not Paid by the Fund Line 17 DC & State Tax Payments Line 18 No. of Claims Line 18a # of Claims Received This Reporting Period Line 18b #of Claims Received Since Inception of Fund Line 19 No. of Claimants/Investors Line 19a # of Claimants/Investors Paid This Reporting Period Line 19b # of Claimants/Investors Paid Since Inception of Fund Receiver By: A. Cotten Wright (printed name) Receiver (title) Date: Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 14 of 29

15 EXHIBIT 1 STANDARDIZED FUND ACCOUNTING REPORT for DCG Receivership - Cash Basis Receivership; 3:16-CV-285 Reporting Period 03/31/2018 to 06/30/2018 DETAIL OF LINE 5, Business Asset Liquidation Description Amount Total Sale of Lot 5330 Beacon Ridge 10, Refund of HOA Fees - Lot 5330 Beacon Ridge Sale of Dump Truck 2, , DETAIL OF LINE 10a, Disbursements to Receiver or Other Professionals Description Amount Total Grier, Furr & Crisp, PA - Allowed Attorney's Fees 21, Grier, Furr & Crisp, PA - Allowed Attorney's Expenses Middleswarth, Bowers & Co., LLP - Allowed Accountants' Fees 2, Middleswarth, Bowers & Co., LLP - Allowed Accountants' Expenses , DETAIL OF LINE 10b, Business Asset Expenses Description Amount Total Condlwell Banker Boyed - Realtor Commission Lot 5330 Beacon Ridge Anchor's Landing HOA - HOA Fees 5, Iredell County Tax Collector - Lot 5330 Beacon Ridge Property Taxes 4, Hamby & Hamby PA - Closing Costs Lot 5330 Beacon Ridge Trustee Insurance Agency Seneca - Insurance Premium for May DETAIL OF LINE 14a, Cash & Cash Equivalents 10, Total Description Rabobank, N.A. Account # xxxxxx , Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 15 of 29

16 EXHIBIT C Grier Furr & Crisp, PA Fee Schedule Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 16 of 29

17 Attorney Code Position Year Licensed Hourly Rate Joseph W. Grier, III JOE Member 1977 $550 A. Cotten Wright ACW Member 2001 $380 Anna S. Gorman ASG Staff Attorney 1994 $360 Michael L. Martinez MLM Associate 2009 $295 Brittany N. Lewis BNL Paraprofessional N/A $165 A. Cotten Wright as Receiver CWT Receiver 2001 $0 Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 17 of 29

18 EXHIBIT D Grier Furr & Crisp, PA Invoice for Application Period Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 18 of 29

19 Grier Furr & Crisp, P.A. Suite North Tryon Street Charlotte, NC (704) A. Cotten Wright, Receiver 101 North Tryon Street Suite 1240 Charlotte, NC Jul 18, 2018 ATTN: Matter: File #: / DATE DESCRIPTION HOURS AMOUNT LAWYER Apr Apr Apr Apr Apr ASSET DISPOSITION Correspondences regarding moving real property closing to April 5th, documentation regarding same. CASE ADMINISTRATION Began drafting Receiver's Eighth Report. Continued review of claims. ASSET DISPOSITION Telephone call from S. Nicholson re purchase of dump truck. Continued review and anaylsis of claims. CASE ADMINISTRATION AND BUSINESS OPERATIONS Provide input into Receiver's Eighth Report. ASSET ANALYSIS AND RECOVERY s with K. Galombeck re next steps. ASSET DISPOSITION Telephone call and s with S. Nicholson re potential purchase of dump truck. Conference ACW re the same. CASE ADMINISTRATION Review and edit draft status report. Continued review of claims in comparison with records. CASE ADMINISTRATION Completed Receiver's Eighth Report. ASSET DISPOSITION s with S. Nicholson re potential purchase of dump truck ASG ACW ACW MLM ACW ASG MLM MLM MLM ACW ACW MLM Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 19 of 29

20 Invoice #: Page 2 July 18, 2018 Apr Apr Apr Apr Apr Apr Apr Apr Continued work on claims review. CASE ADMINISTRATION Spoke with J.Sugar re: status of criminal case and review of investor claims. Reviewed ecf notice of presentence report; sent to J.Sugar requesting access to same; reviewed response. ASSET DISPOSITION Confirm receipt of sale proceeds, organize folder on Anchor's Landing Lot and note it has been liquidated. Draft Report of Sale and have filed. ASSET DISPOSITION Review docket to assure Reports of Sale filed on all real property, note need to file as to property sold to Town of Huntersville, draft Notice of Sale and have filed and posted. Continued work on claims issues. Conference with MLM re: same. CASE ADMINISTRATION Drafted Special Master's Interim Report for criminal case. Conference ACW re claims resolution process. Review claim submitted by K.L. Conference ACW re the same. CASE ADMINISTRATION Review draft special master report. Conference ACW re the same. Conference ACW re claims report. Took call from investor D.H. re: claims process and questions about case. CASE ADMINISTRATION Finalized interim report for criminal case and requested BNL file and serve same. ASSET DISPOSITION s with S. Nicholson re potential purchase and sale of dump truck. Exchange messages with ACW re the same. Draft motion to confirm sale re the same and proposed order. File the same. D. Coble re the same. Telephone from S. Nicholson re the same. Draft revised proposed order. Upload the same. D. Coble re the same. ASSET DISPOSITION Receive Offer to Purchase Alexandriana property from W. Maxwell. Review file for historical offers, discussions regarding value. Call with W. Maxwell regarding Offer, counteroffer, considerations. ASSET DISPOSITION s with S. Nicholson re order approving sale free and clear of liens. s with ACW re the same. Draft bill of sale re the same. ASSET ANALYSIS AND RECOVERY Telephone call from K. Galombeck re impending lawsuit ACW ACW ASG ASG , ACW ACW MLM MLM ACW ACW MLM ASG MLM MLM Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 20 of 29

21 Invoice #: Page 3 July 18, 2018 Apr May May May May May May May May May ASSET DISPOSITION s with M. Walker re continued performance under settlement agreement. Draft voluntary dismissal with prejudice of mining equipment lawsuit. File the same. Worked on letters to claimants and claim information. Began drafting claims report. Worked on claims information. Edited claims report and objection. Prepared written analysis of two investor claims. Review and provide input into Claims Report, Objections to Claims and Recommendation Regarding Claims. CASE ADMINISTRATION Conference ACW re various outstanding issues with claims resolution. Review K.L. claims. Took calls from and responded to s from investors re: claims report. Reviewed vendor claim from Gunderson Law Firm and attached invoices. Conference with MLM re: same. Drafted objection to claim. s and conferences with ACW re vendor claims. Draft to G. Bluff re the same. Researched bankruptcy filing by investor; reviewed bankruptcy schedules for disclosures of investments in the Receivership defendants. Compared disclosures to bankruptcy court with investments set out in claim form. Sent to P.Costello & D.Mathews re: disclosure to bankruptcy trustee of undiclosed assets. CASE ADMINISTRATION Call with J.Sugar re: format for restitution recommendation. ASSET DISPOSITION M. Walker re fact investigation concerning his clients. Review S.E.C. records database for additional information on K.L. transfers. Review draft objection to claim made by the Gunderson Law Firm. ASSET ANALYSIS AND RECOVERY Prepare materials for summer clerk re K. Galombeck. ASSET DISPOSITION Conference Summer Clerk re complaint against K. Galombeck MLM ACW ACW , ACW ACW ASG MLM ACW ACW MLM ACW ACW MLM MLM MLM MLM Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 21 of 29

22 Invoice #: Page 4 July 18, 2018 May May May Jun Jun Jun Jun CASE ADMINISTRATION Research re guidelines for equity receivers in disclosing victim information. ACW re the same. ASSET ANALYSIS AND RECOVERY Draft complaint against K. Galombeck. Input claimant information to spreadsheet ASSET ANALYSIS AND RECOVERY Continue drafting complaint against K. Galombeck. Took call from investor re: Claim 14 as to recommendation regarding claim. ASSET ANALYSIS AND RECOVERY Review and revise draft complaint against K. Galombeck. Reviewed correspondence ed on behalf of investor 127 and documentation provided. Reviewed file documentation. Made notes for response. Reviewed correspondence and documentation re: investor 14. Call to accountant for investor; left voice mail message. ASSET DISPOSITION s with ACW re complaint against K. Galombeck. ASSET ANALYSIS AND RECOVERY Review and revise draft complaint against K. Galombeck. Reviewed notes and drafted letter and analysis regarding claims 127A and 127B. ASSET ANALYSIS AND RECOVERY Review and revise draft complaint against K. Galombeck. Continued reviewing and analyzing amended claims 127A & 127B and drafting response. Continued drafting letter in response to amended claims 127A & 127B. Assembled exhibits for same. Began drafting letter to bankruptcy trustee for claimant re: pre-petition claims asserted against Receivership. Reviewed information received from accountant for claimant re: Claim 14 and noted issues with same. Call to accountant for claimant re: Claim 14 - left message. Sent to accountant. Reviewed information re: Claim 107 and made notes. Drafted letter to claimant re: reduction in claim amount. Edited letter responding to amended claims 127A & 127B and letter to bankruptcy trustee for claimant MLM SC SC SC ACW SC ACW ACW MLM SC , ACW SC , ACW ACW ACW ACW ACW Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 22 of 29

23 Invoice #: Page 5 July 18, 2018 Jun Jun Jun Jun Jun Jun Revised claims spreadsheet based on amendments to claims and additional claims submitted. Placed call to accountant for holder of Claim 14 re: spreadsheet of investments and withdrawals and net amount of same; requested corrected spreadsheet. Review and provide input into letter regarding various claims of K. L. Sent to holder of Claim 14 re: plans to amend claims report and recommendation as to his claim. CASE ADMINISTRATION Reviewed notice re: sentencing hearing scheduled for June 25. Drafted notice for webpage and requested BNL post same. Drafted notice to serve via and mail; requested BNL serve by . Arranged for mail service of notice. to J.Sugar inquiring as to procedure should investors wish to be heard at sentencing hearing. Reviewed response from J.Sugar re: same. CASE ADMINISTRATION Reviewed voice mail message from investor inquiring as to R.Davis' status. Returned call - court has just scheduled sentencing hearing for June 25. CASE ADMINISTRATION Telephone call from Second Circuit Court of Appeals re appeal involving Davis Capital Group, Inc. CASE ADMINISTRATION Posted Notice about sentencing hearing to website and serve via and mail. Reviewed correspondence from J.Barton re: claims recommendations. Drafted letter to J.Barton in response. CASE ADMINISTRATION Reviewed from JP Davis re: restitution issues. Sent to J.Sugar re: same. ASSET DISPOSITION s with Ritchie Bros. re outstanding invoices. Reviewed from JP Davis requesting detailed information on claims. Began work on spreadsheet requested by JP Davis. Conference ACW re victim restitution. Research SEC records database re the same. Continued work on spreadsheet for JP Davis. Continued work on spreadsheet for JP Davis ACW ACW ASG ACW ACW ACW MLM BNL ACW ACW MLM , ACW MLM , ACW , ACW Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 23 of 29

24 Invoice #: Page 6 July 18, 2018 Continued work on spreadsheet for JP Davis. Jun Continued work on spreadsheet. Drafted amendment to claims report. Jun Completed preparation of spreadsheet on claims. ed spreadsheet to J.Sugar & JP Davis with comments. Sent s to claimants affected by amendments to claims report that had not been previously notified of same. CASE ADMINISTRATION Call to J.Sugar re: sentencing hearing; restitution recommendation. Drafted amendment to Special Master's recommendation as to restitution. CASE ADMINISTRATION Drafted ex parte motion for authority to file letters to the Court under seal in the criminal case. Drafted order on motion. Requested BNL file motion. CASE ADMINISTRATION Reviewed government's sentencing memorandum. Jun Took calls and responded to s from investors re: amended claims report. CASE ADMINISTRATION Reviewed order on motion to seal. Filed letters from victims under seal. CASE ADMINISTRATION Reviewed Defendant's Sentencing Memorandum. Jun CASE ADMINISTRATION Telephone call from D. Rosser re receiver's report. Jun CASE ADMINISTRATION Filed victim letter electronically. Jun CASE ADMINISTRATION Worked on rough draft for comments for sentencing hearing. Returned call to victim re: letter to court. Filed victim letters electronically. CASE ADMINISTRATION Reviewed letters filed in support of R. Davis. Jun CASE ADMINISTRATION Review statement for the court for Rich Davis sentencing. s with ACW re the same. Jun CASE ADMINISTRATION Reviewed and made notes in preparation for sentencing hearing. Filed victim letter electronically. Jun CASE ADMINISTRATION Reviewed in preparation for sentencing hearing this morning. Filed one more victim letter. Met with investors before hearing. Appeared at hearing. Discussed results with investors after hearing , ACW , ACW ACW ACW ACW ACW ACW ACW ACW ACW MLM ACW , ACW ACW MLM , ACW , ACW Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 24 of 29

25 Invoice #: Page 7 July 18, 2018 Jun CASE ADMINISTRATION Filed additional victim letter electronically. CASE ADMINISTRATION Attend Rich Davis sentencing hearing. CASE ADMINISTRATION Call with J.Sugar re: restitution issues ACW MLM ACW CODE SUMMARY: L551 CASE ADMINISTRATION AND BUSINESS 0.10 $36.00 OPERATIONS L701 ASSET ANALYSIS AND RECOVERY: $2, L702 ASSET DISPOSITION: 5.90 $1, L705 : $29, L706 CASE ADMINISTRATION: $9, Totals Fees $43, FEE SUMMARY: Lawyer Hours Effective Rate Amount A. Cotten Wright $ $35, Anna S. Gorman 2.20 $ $ Michael L. Martinez $ $4, Brittany Lewis 0.20 $ $33.00 Summer Clerk $ $2, DISBURSEMENTS Disbursements Receipts Apr Computer Assisted Research Pacer Service Computer Assisted Research Pacer Service 1.20 Computer Assisted Research Pacer Service 4.20 Computer Assisted Research Pacer Service May Postage Photocopy Charge Jun Paralegal Service/DCG Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 25 of 29

26 Invoice #: Page 8 July 18, 2018 Jun Computer Assisted Research Pacer Service 4.20 Computer Assisted Research Pacer Service Totals $ $0.00 Total Fees & Disbursements $44, Previous Balance $0.00 Previous Payments $0.00 Balance Due $44, Please make check payable to Grier Furr & Crisp, PA Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 26 of 29

27 Invoice #: Page 9 July 18, 2018 TRUST STATEMENT Disbursements Receipts Apr May Received From: Wire In / Scott Nicholson/DCG Wire In /funds for dump truck/ Scott Nicholson/DCG Paid To: A. Cotten Wright Trustee for DCG 2, , Transfer funds/a. Cotten Wright Trustee for DCG Total Trust $2, $2, Trust Balance $0.00 Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 27 of 29

28 EXHIBIT E Summary of Expenses Incurred by Grier Furr & Crisp, PA for Application Period Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 28 of 29

29 Expense Category Amount Court Fees and Charges $0.00 Postage $ Pacer Charges $74.00 Newspaper Advertisements $0.00 Copies $ Federal Express charges $0.00 Service Fee Paralegal $68.75 Westlaw Charges $0.00 Total $ Case 3:16-cv GCM Document 198 Filed 07/18/18 Page 29 of 29