Amy Mitchell, Receiver Iris Settlement Fund P.O. Box...

Amy Mitchell, Receiver Iris Settlement Fund

P.O. Box 2289 Lake Oswego, OR 97035

(503) 675-9955 Fax: (503) 675-9977 [email protected]

February 15, 2019 VIA ECF Chief Judge Michael W. Mosman U.S. District Court for the District of Oregon 1000 S.W. Third Ave. Portland, OR 97204 Re: USA v. Kniss, D. Or. Case No. 3:18-cr-00142-MO

Correspondence of State Court Receiver Amy Mitchell in In re Judicial Dissolution of Iris Capital Management Group, LLC, et al. Multnomah County Circuit Court Case No. 15-CV-30269 re: Sentencing of Defendant Shayne Kniss

Dear Chief Judge Mosman:

I am the receiver of the ten main Iris Fund entities (the “Iris Entities”), which were founded and managed by Shayne Kniss.1 I was appointed by the Multnomah County Circuit Court in 2015 in order to administer the assets and liabilities for the benefit of the investors and other creditors and then judicially dissolve the entities. I am writing this letter at the request of Assistant U.S. Attorney Seth D. Uram, to inform the U.S. District Court of my actions and findings in the Iris Entities’ receivership for purposes of the sentencing of Shayne Kniss. I was appointed based on a Petition of Dissolution filed by Shayne Kniss pursuant to a Consent Order that he entered into with the State of Oregon’s Division of Finance and Corporate Securities of the Department of Consumer and Business Services (the “State”). Based on a stipulation between counsel for Kniss and the State, this Court entered the order appointing me as receiver on November 6, 2015. Since then, I have administered assets, determined claims, and made two distributions. The most recent Claims Analysis (dated October 15, 2018) is attached as Exhibit A showing the claims asserted in the case and the distributions made on account of allowed claims. Regarding my background, I am a professional fiduciary. I have a bachelor’s degree in accounting and a master’s degree in business administration, and I am a member of the Oregon State Bar. Since 2002, I have been a U.S. Department of Justice Panel (Bankruptcy) Trustee for Oregon. I have administered over more than 17,000 chapter 7 bankruptcy cases, and I have been appointed by

1 The case is “In re Judicial Dissolution of Iris Capital Management Group, LLC; Iris Private Capital, LLC; Iris Capital Fund I, Limited Partnership; Iris Capital Fund I GP, LLC; Iris Private Capital Fund II, Ltd. Partnership; IPC Villages GP, LLC; IPC Fund III, Limited Partnership; IPC Woodridge GP, LLC; Iris Private Capital Fund IV, LP; and IPC Fund IV, GP, LLC, Petitioners” pending as Multnomah County Circuit Court Case No. 15-CV-30269.

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the Bankruptcy Court to serve as a chapter 11 trustee, plan agent, and disbursing agent in various business bankruptcy cases, as well as serving as a state court receiver in business cases.

The �$-�0$/�Court appointed Justin Leonard and his firm Leonard Law Group to serve as my legal counsel in this case. Mr. Leonard regularly represents bankruptcy trustees, receivers, and other fiduciaries when legal counsel is needed. Because Mr. Leonard communicated with counsel for Mr. Kniss, and later with Mr. Kniss personally and individually on my behalf as described below, he is joining in this letter.

My Initial Observations As Receiver for the Iris Entities

I was contacted by the State and counsel for Mr. Kniss in late 2015 to possibly serve as a receiver for the Iris Entities. After extensive communications with the State and counsel for Mr. Kniss (directly and through Mr. Leonard) as well as an interview of Mr. Kniss by my counsel, I agreed to serve as receiver for the Iris Entities through the Multnomah County Circuit Court.

At the time of my appointment, the Iris operation consisted of four mostly-defunct funds (Funds I, II, III, & IV) operated through two investment management entities: Iris Capital Management Group, LLC and Iris Private Capital, LLC (“Iris”). The principal and manager of these entities, Shayne Kniss, was previously employed as an investment manager at other investment firms in the area, and he had worked with similar real estate funds. Kniss decided to open his own investment firm called Iris, and create his own funds by collaborating with property manager Sean Keys (who had managed properties for funds of Mr. Kniss’s prior employer). Beginning in 2010 with Fund I, Mr. Kniss sold limited partnership interests in separate funds, each of which related to a separate residential real estate project. He also issued investment notes issued by various Iris entities.

It now appears that from its inception, Iris was plagued by mismanagement, lack of financial controls, chronic undercapitalization (in part caused by releasing funds from securities proceeds escrows before the stated minimum was raised), and commingling of funds. Kniss offered investors in these entities a share of preferred returns, generally 8% to 12%, from the Fund’s real estate investments. When such returns did not materialize from the mismanaged funds, Kniss commingled the cash raised from investors, and he used money from new investors to make payments to prior investors.

As the earlier Funds were collapsing, Kniss sold all of the assets of Funds I and III, cashed out some investors who demanded their money back, and moved all of the remaining Fund II investors into a newly formed Fund IV. Kniss promised Fund I and III investors that they would get their money back with a significant return, because the property those Funds were invested in was sold. However, he instead diverted the bulk of the sale proceeds to himself.

By 2015, Mr. Kniss had stopped issuing regular reports to investors, ignored increasingly frantic phone calls and emails from investors, and stopped sending certain investors the regular monthly payments that they had been assured. (A few investors had invested all of their retirement funds

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into Iris based on assurances from Mr. Kniss, who had served as their investment manager prior to founding Iris – and in reliance on the assurance that they would be issued monthly distributions, which they required for their monthly expenses during retirement.) Meanwhile, in 2015, the State actively investigated Mr. Kniss and his Iris operation. On November 5, 2015, Mr. Kniss—personally and on behalf of the Iris entities—consented to the entry of an order requiring that he and the Iris Entities cease and desist violating Oregon securities laws, assessing a $350,000 civil penalty (which was suspended on condition that Mr. Kniss and the Iris entities voluntarily petition for the appointment of a receiver), and permanently barring Mr. Kniss from working in the securities and investment industry in Oregon. The next day, on November 6, 2015, the Iris Entities petitioned the state court to appoint a receiver to administer the dissolution and winding-up of the Iris entities. The Petition was presented jointly by the State and counsel for Mr. Kniss, together with my counsel. After hearing from the parties, Presiding Court of Multnomah County Circuit Court entered the proposed Order Appointing Receiver, on November 6, 2015. In my administration of the Iris Entities as Receiver, I have observed mismanagement and misrepresentations by Mr. Kniss that I believe are relevant as the Court considers Mr. Kniss’s sentence. I will identify and describe them below: Initial Report to Court re: Missing Documents and Misrepresentations by Kniss Following my appointment, my counsel and I worked to identify assets and liabilities of the Receivership Estate. These efforts included conferring with interested parties and professionals, reviewing corporate and investor records from Mr. Kniss’s attorneys and third-parties, subpoenaing records from regulatory agencies and financial institutions, taking possession of funds on hand, and public record searches. One month after appointment, I prepared an Initial Report to the Circuit Court (and all investors, other creditors, and other interested parties) to summarize my initial findings and provide initial schedules of assets and liabilities. In my Initial Report, I noted that Mr. Kniss had not cooperated with the turnover of business records of the Petitioners as was required by the Receivership Order that Mr. Kniss had agreed to. Based on independently obtained records, I concluded that there were significant inconsistencies between the records and other evidence that I obtained, and the representations that were made by Mr. Kniss pre-petition, including to the State of Oregon in the November 5, 2015 Consent Order and to this Court in the Petition for Dissolution. In particular, my Initial Report noted that the following items were not disclosed or were misrepresented to the Receiver by Mr. Kniss:

a. Significant payment default on debt secured by real property held in PDX Portfolio, LLC entities;

b. Identity of the prior property management company; c. Condition of rental properties (several in need of significant

maintenance; with a number of vacancies);



d. Rental properties without lease agreements; e. Lack of insurance on rental properties (Receiver subsequently learned

secured creditor has force-placed insurance coverage); f. Assets transferred directly to and for the benefit of insiders and

insiders’ business entities, including Divine Kind LLC, Terwilliger Partners, and Cura Distribution;

g. Co-mingling of funds among the Petitioners; h. Significant use of Petitioners’ funds for personal (non-business)

expenses of insiders; i. Large withdrawals of cash and cashiers checks from Petitioners’

accounts, without an accounting of purpose; j. Accounting records not current or accurate; k. Funds on hand at Umpqua Bank significantly less than represented; l. Additional liabilities of Petitioners, including uncompensated

professionals; and m. Undisclosed ownership of real property (a vendee interest held by Iris

Private Capital, LLC in property used by a marijuana business).

(Receiver’s Initial Report (Dec. 7, 2015), ¶ 2-3.) As I explained to the circuit court, the misrepresentations and non-disclosure by Mr. Kniss and lack of full cooperation complicated my duties and hampered my ability to realize funds for creditors and investors. Kniss’s Failure to Maintain Necessary Business Records I later learned, once Mr. Kniss started assisting us, that some of the missing records described above never existed. Mr. Kniss did not maintain many typical business records, such as check registers, purchase receipts, or bank and credit card statements. Remarkably, Mr. Kniss did not retain copies of loan agreements when the Iris Entities needed to borrow funds from investors and other third parties and provided them promissory notes. Kniss’s Failure to Maintain Separate Bank Accounts (and/or Any Accounting of Separate Entities’ Funds) By the time I took over as Receiver, Mr. Kniss had consolidated the ten Iris Entities’ various bank accounts (holding accounts and checking accounts for the various entities and their respective investors) down to only one account to hold the funds of all of his entities. At one time, the Iris Entities had 12 accounts at Wells Fargo, and later 14 accounts at First Republic beginning in March 2013, to ensure that the entities’ funds remained separate. However, Mr. Kniss was forced to leave First Republic in fall of 2014, purportedly because First Republic learned that Mr. Kniss held unrelated interests in marijuana businesses. When Mr. Kniss moved the Iris Entities’ accounts from First Republic in October of 2014, he only opened two bank accounts at MBank. Mr. Kniss had to leave MBank in June 2015, apparently for



the same reason (because funds to and from his marijuana businesses were being held in the accounts). Mr. Kniss opened only one bank account at Umpqua Bank to manage the funds of all the Iris Entities. As a result of this bank account consolidation, the funds of the Iris Entities had been completely comingled, and insufficient records had been maintained to track the funds of the separate entities and their investment properties. Therefore, I recommended and the circuit court approved the substantive consolidation of the Iris Entities and the establishment of the Iris Settlement Fund to administer assets and liabilities on a consolidated basis. Kniss’s Misrepresentations of, and Failure to Pay, Mortgage At the time, these problems were overshadowed by Mr. Kniss’s misrepresentations regarding the only remaining physical assets of the Iris Entities: the real property that was held for investment purposes by Fund IV. By the time of my appointment, the PDX Portfolio, LLC and PDX Portfolio 2, LLC entities that held Fund IV’s property had been significantly reduced to approximately 26 rental properties (approximately 37 total rental units) (the “Rental Properties”). The institutional lender was owed over $3.2 million. Once appointed, I soon learned that Kniss had not paid the Rental Properties’ mortgage payments for some time and he allowed property insurance to lapse. As a result, the lender was pursuing the appointment of its own receiver to manage the properties while pursuing foreclosure. Notices of default had been issued by the lender and by its counsel long before my appointment, and therefore foreclosure was imminent (but never disclosed by Mr. Kniss). Furthermore, contrary to Mr. Kniss’s representations, I also learned that these units were no longer “premier” properties that were well-maintained and almost fully rented. Neither was true, and many units required substantial repairs before I could sell them. Impossibility of Kniss’s Business Plan Surprisingly (and contrary to Mr. Kniss’s business plan), even if the remaining Rental Properties had not been in default and subject to foreclosure by lender, they would not have generated meaningful net income to the Iris Entities. Even assuming the regular costs for property management (which agreement had expired), HOA dues (which were long past-due and in collection), real property taxes (which were also long past-due), regular maintenance and repairs (which had been long-neglected and deferred), premiums for property insurance (which apparently had lapsed), and the monthly loan payment to Lender, the Rental Properties would not generate funds for the investors. Notwithstanding Mr. Kniss’s initial representations, I realized that there was no way for the Rental Properties to make enough money to cover the costs of their operation going forward. / / /



Kniss’s Misrepresentations re: Separateness of Kniss’s Marijuana Business Transactions Once appointed, I quickly discovered that the Iris Entities had significant prior business dealings with marijuana businesses that were affiliated with Mr. Kniss. This was contrary to Mr. Kniss’s initial representations that there was absolutely no connection between the Iris Entities and his separate marijuana ventures. As a result of the connections with the marijuana-related businesses, the typical remedy of chapter 11 bankruptcy protection (e.g., to deal with an aggressive lender through a plan of liquidation) was not available to me. To be clear, the Iris Entities had no responsibility for or control of the separately held and managed marijuana businesses. (Nor did I as Receiver.) However, bankruptcy courts currently dismiss any cases involving marijuana-related assets, because marijuana is a Schedule 1 controlled substance under federal law. All potential issues with and claims against these marijuana businesses were promptly resolved through a settlement with the businesses, discussed further below. That settlement was funded by payments from related parties and not from proceeds of the marijuana businesses. Kniss’s Misrepresentations re: Amount (and His Continued Misuse of) Iris’s Remaining Cash Based on the pre-receivership communications with Mr. Kniss, I expected the Iris Entities to have cash on hand. When interviewed by my counsel, Mr. Kniss assured us that there was at least $10,000 available for the Receivership. However, he continued to spend down those funds so that only $3,397.78 remained in the Iris Entities’ sole bank account when I took over. Kniss’s Misuse of the Iris Entities’ Funds As stated in my Initial Report, in reviewing the Iris Entities’ records, it appeared that the Iris Entities’ funds (including all investor funds) had been commingled and were inappropriately transferred to or for the benefit of individuals and/or entities, including: Shayne Kniss personally, his wife and family, and other Kniss-related entities including Terwilliger Partners and its related entity, Divine Kind LLC. From Iris Entities’ accounts, these parties and entities received significant direct payments, payments to their employees, and other indirect transfers purportedly for their benefit which appeared to have no benefit to the Iris Entities. These findings contradicted completely Mr. Kniss’s pre-receivership representations. As noted in my Initial Report, it appeared possible to pursue Kniss, his wife, his entities, and other third parties to recover inappropriately transferred investor funds. In regards to Mr. Kniss, I have since concluded that he has no assets of value. Originally, it had appeared to us that Mr. Kniss had amassed collectable assets. For example, earlier that year (2015), an Iris Entities’ attorney (Nick Slinde) assisted Mr. Kniss in transferring a joint interest in his home to his wife through a deed for no consideration other than “love and



affection.” However, we later learned that Mr. Kniss’s home was over-encumbered by loans and had no equity. His luxury sedan, while appearing valuable, was leased, and it ended up being repossessed. Most of his other spending – such as for meals and drinks, vacations, clothing, subscriptions, health services, pet care, and other consumable goods – did not generate assets that could be recovered and sold. We found no meaningful savings or other financial accounts or other forms of investment. In regards to Mr. Kniss’s wife, it does not appear that she had any role in the Iris Entities’ business, nor assets of significant value as a result of her husband’s activities. She has since dissolved their marriage and filed for bankruptcy relief, obtaining a discharge of any and all pre-petition claims. Investors have questioned why Mr. Kniss would not have meaningful (and potentially collectable) assets that could be recovered for the benefit of the investors. It appears that Mr. Kniss had been living beyond his means, using funds of the Iris Entities’ investors in an attempt to cultivate a certain image. Even in the very beginning of the Iris Entities, Mr. Kniss used investors’ funds for non-business purposes, to benefit himself. The first investor funds of approximately $77,000 were wired from Bittner & Hahs on November 18, 2000 to the new “Iris Capital Fund 1, Limited Partnership” account established at Wells Fargo. Of those funds, $25,000 was immediately paid back to Bittner & Hahs (as Fund I’s legal counsel), and $50,000 was transferred to the new “Iris Capital Fund I GP, LLC” account at Wells Fargo. I have attached the December 2000 bank statement of that Fund I account (Exhibit B), which shows Mr. Kniss’s immediate use of Fund I’s debit card to make presumably non-business purchases at Men’s Warehouse, Frederick’s of Hollywood, Sur La Table, the Oregon Liquor Store, and Regal Cinemas – besides potential-but-unlikely business expenses like various taverns and pubs, 7-11, McDonalds, Papa Johns, Albertsons, and Safeway. This trend of using business funds for personal purposes was consistent throughout Mr. Kniss’s operation of the Iris Entities. In their last month of operation – and at the same time that Mr. Kniss was assuring my and his legal counsel of the Iris Entities’ funds that would be available for my use as receiver – Mr. Kniss was continuing to actively spend down the Iris Entities’ funds from the Iris Entities’ one remaining account, where all funds were consolidated. I have attached the final (October 2015) Iris bank statement from Umpqua Bank (Exhibit C), which shows over $25,000 of rent proceeds from the Rental Properties coming in plus a $11,000 check from Divine Kind, Inc. The statement shows nearly all debits being charged to restaurants, bars, gas stations, coffee shops, and grocery stores – as well as Regal Cinemas, Fine Men’s Salons, Redbox, Nike Company Store, Legacy Clinic, plus ACH debits used towards Mr. Kniss’s home mortgage and home utilities payments, plus cash withdrawals totaling over $26,000 that Mr. Kniss was unable to account for. When I was appointed and took over the account, only $3,360.29 was remaining in the account. / / /



Overview of Asset Administration & Distributions to Claimants in the Receivership As described above, when I was appointed and the Receivership Estate was established, there was little cash ($3,360.29) available for the receivership operations, and the only physical assets (the Rental Properties of Fund IV) were subject to imminent foreclosure by the lender. After significant negotiations, the lender allowed me a limited period of time to manage, improve, market, and sell the properties. The controlled sale process ultimately yielded a meaningful benefit to the Receivership Estate (approximately $1.37 million) after lender and various HOAs and county assessors were paid in full, and including the expenses paid by the Receivership for necessary repairs and maintenance and costs of sale. If lender had proceeded with foreclosure, there would have been no recovery by the Iris Entities after the costs of sale and some of the creditors may have had deficiency claims against the Receivership. Besides the physical assets, I investigated potential claims of the Iris Entities. According to information from the State and attorneys for investors, it appeared that the Iris Entities, and each of the individual investors of the Petitioners, held securities-related claims against certain third-parties, including the attorneys and accountants who created the Iris Fund entities and who advised the Petitioners. In order to maximize the recovery for the benefit of investors and other creditors of Petitioners, I obtained court approval to employ a team of securities-law attorneys to pursue these securities-related claims on a standard contingency fee: 30% of the net recovery (after costs and expenses) if settled, 40% if trial was necessary, and 45% if the matter was appealed. This team was comprised of Michael Esler, John Stephens, and Kim Buckley and their firm, Esler Stephens & Buckley LLP; Gary Berne, Keil Mueller, and their firm, Stoll Berne; and Christopher Kayser (aided by Cody Hoesly) and his firm, Larkins Vacura LLP (together, “Special Counsel”). The net recovery on which Special Counsel’s contingent compensation was based did not include the recoveries based on my independent efforts unrelated to the securities law claims, such as my sale of the remaining real property or recovery of assets that had been improperly transferred. To maximize recovery and ensure that investors (who could bring claims individually) received equitable treatment through the Receivership Estate, I obtained the investors’ and the circuit court’s approval to pursue and recover securities-related claims on behalf of all investors. The settlements that ultimately resulted were also subject to notice and approval by all investors and other claimants and the circuit court. These procedures assured the settling parties that they had resolved all claims at once through the receivership. This also ensured fair treatment of the investors, regardless of whether they had the independent means to investigate their claims and hire attorneys to prosecute securities-related violations against sophisticated professionals. With aid of Special Counsel, my counsel and I investigated the professionals involved in the Iris Entities. Special Counsel assisted me in identifying certain parties that appeared to be subject to securities law violations. Formal mediation proceedings and follow-up settlement negotiations took place with those parties. With approval of the investors and the circuit court, confidential



settlements were reached with some of the parties, which paid a total of $2.745 million to the Receivership Estate. I then filed a complaint on behalf of the Iris Entities and the investors against the remaining two parties in the mediation. After defending their motions to dismiss, we negotiated confidential settlements that generated an additional $1.32 million. Based on 30% of these multiple settlements, Special Counsel’s contingency fee and costs totaled approximately $1.235 million. Therefore, after payment of Special Counsel’s compensation, the securities-law settlements generated a net recovery of $2.83 million for the benefit of the Receivership Estate. In addition to those securities-related settlements, I recovered approximately $559,000 from other settlements: approximately $519,0002 from the Terwilliger Partners settlement of the Iris Entities’ potential interests in and transfers to and for the benefit of various marijuana businesses, and $40,000 from the partners in a small real estate investment called West Grove. Both of these settlements provided funds to the Estate and they also resolved claims asserted against the Receivership Estate, thereby reducing the potential claims pool and increasing the distributions to the Iris investors. At this point, I have administered all known assets. From these recoveries, I have distributed slightly over $3.9 million to claimants to date. The court-approved Claims Analysis is attached for reference as Exhibit A. This number represents a 77.76% return to investors and other creditors based on the over $6 million of “Tier One” claims – which is based on the principal amount of the claim (e.g., the amount originally invested in and transferred to one or more of the Iris Entities) minus any repayments received from the Iris Entities by the claimant. Therefore, the “Tier One” claims do not include the anticipated interest from the invested funds (which would increase the claims by roughly $3-4 million). The “Tier One” claims also do not take into account any expenses of investors’ attorney fees, costs, penalties, late fees, or other potentially-allowable claims. I anticipate making a small final distribution this year, after my administration – including the necessary tax filings and payments – are complete. Impact to Individual Investors I understand that many of the investors will not participate in the sentencing hearing or submit written statements. This is not necessarily surprising to me. Many of the investors have expressed embarrassment for having trusted Mr. Kniss, and they say that they do not wish to re-live their experience through a public appearance or statement. Some investors knew Mr. Kniss and his family through church. Some had allowed Mr. Kniss to invest all of their retirement assets into Iris, believing his assurances that it was a secure investment. Already elderly at the time, they now express regret and embarrassment at those decisions and placing such blind trust in Mr. Kniss. 2 Pursuant to the March 4, 2016 Settlement Agreement and Promissory Note, I received total payments from NPI Holdings, LLC of $425,000, plus interest of $18,970.46. In addition, NPI paid $75,000 attributable to Shayne Kniss’s interests in Terwilliger Partners LLC, pursuant to the Assignment Agreement executed by Shayne Kniss on April 14, 2016.



To provide some additional perspective for the Court, I will share some of the investors’ stories that my counsel and I have learned while serving as Receiver:

• Investor A was 66 when she invested $36,000 in Fund II. Mr. Kniss assured her it was “safe.” He then moved her investment into Fund IV without asking for or obtaining her permission.

• Investor B was 69 and a retired professor when she invested $495,000 in Fund II, virtually her entire retirement savings. As with investor A, Kniss told her it was “safe because it was backed up by real estate.” Her investment, too, was moved into Fund IV without her permission.

• Investors C and D were in their 70s when they invested $30,000 in Fund II, which was a substantial amount for them.

• Investor E was 78 years old when she invested a substantial amount ($160,000) in Funds II and III and a promissory note.

• Investors F and G were long-time public employees. They were admittedly unsophisticated investors, and they allowed Mr. Kniss to put nearly $800,000 of their retirement savings (mostly PERS) into Funds II and III and an Iris note. (Investor G was over 70 at the time.) Until I was able to make the initial distribution, they had to live off of their Social Security and whatever they could borrow.

• Investor H invested in Iris only because she was assured by Mr. Kniss that the Iris Entities would pay monthly distributions to cover her expenses in retirement. These payments slowed and then stopped in 2015. To make ends meet during the receivership, she sold off personal possessions. She could not pay her mortgage, and she nearly lost her home to foreclosure before my first distribution could be made.

Mr. Kniss’s Cooperation During the Receivership Because it is also relevant to the Court’s sentencing, I want to acknowledge Mr. Kniss’s times of cooperation during this proceeding. While many requests and reminders were generally required, Mr. Kniss has voluntarily cooperated with my investigation by:

• delivering the Iris Entities’ computers and its limited records to my counsel’s office; • meeting with my counsel on several occasions to answer our questions; • responding to questions and information requests by email; • agreeing to formally waive any claim of personal attorney-client privilege in the Iris

Entities’ files held by the Iris Entities’ law firms (required by some law firms as a precaution);

• assigning any and all personal interests in his marijuana businesses to facilitate my settlement (as described below); and

• participating on a conference call with my Special Counsel team, to answer questions related to our securities-related litigation.

While Mr. Kniss was not always responsive to inquiries (whether by mail, phone, or email), Mr. Kniss eventually responded to most of the email requests that were made by my counsel. He



provided us with missing and more-current contact information for investors and other relevant parties; he responded to my counsel’s detailed summaries of his meetings with corrected and supplemental information; he provided explanations for transactions involving Sean Keys and also the Terwilliger Partners-related marijuana businesses; and he answered follow-up questions related to potential claims against various third-parties. Furthermore, as a component of my settlement with the marijuana businesses, Mr. Kniss also agreed to voluntarily assign any and all of his ownership interests in the marijuana businesses to Terwilliger Partners in exchange for a payment of $75,000, which was transferred to the Receivership Estate for the benefit of the investors. This was to be considered by the Receivership Estate as a $50,000 payment from Shayne Kniss, and a $25,000 payment from Michelle Kniss, and would be treated as a credit against their respective liabilities to the Receivership Estate based on transfers made to and for their benefit. Mr. Kniss did not need to participate in that voluntary assignment transaction. However, his cooperation avoided legal expense of recovering his interest through litigation against him, and it streamlined my global settlement negotiations with Terwilliger Partners. Other Observations re: Mr. Kniss Based on our limited interactions with Mr. Kniss over the last three years of the receivership, it seems that he has remorse for the harm he has caused the investors. However, it does not appear that he recognizes his culpability. It seems that he blames others, substance abuse, and market forces generally for Iris’s failure. While it is possible that others may have taken advantage of Mr. Kniss and his investor clients (as we understand Mr. Kniss intends to assert as a defense), Mr. Kniss fails to recognize the extent of his personal responsibility for Iris’s downfall. From the beginning, Mr. Kniss mishandled his investors’ funds and abused their trust. Meanwhile, he justified his use of the funds for his personal benefit and for his marijuana ventures, convincing himself that at the end of the day, he would make his investors money. Yet, from day one (in 2010), he was using his investors’ funds for personal, non-business-related purposes. It seems that he has failed to recognize the significance of those day-to-day decisions. I believe Mr. Kniss would agree that he “got in over his head.” In meetings with my counsel, Mr. Kniss made light of and laughed about his self-described “inability” to maintain basic business and financial records, his lack of tracking of investor accounts (such as payments in and out), or even keeping a simple check register to track purchases to prevent his many overdraws of the Iris Entities’ accounts. He said that if we didn’t believe him, his wife and business partners would attest that he was “an awful banker.” For an investment manager who is solely responsible for the management of his clients’ funds, this lack of basic business and financial management certainly contributed to the Iris Entities’ downfall. Furthermore, as a result of Mr. Kniss’s failure to maintain appropriate records, this receivership took much more time to administer, and evaluating and pursuing potential claims against third parties was more challenging.



Response to Mr. Kniss’s Mitigation Defense I understand from Mr. Kniss’s last request for a continuance that he intends to demonstrate at the sentencing hearing how others were culpable. The Declaration in support states, “Perhaps the largest area of mitigation in this case is the erroneous legal, accounting, and business advice given to Mr. Kniss by his attorneys, accountants, and business partner. The advice was so deficient that the attorneys, accountants, and business partners have agreed to civil settlements with the appointed receiver totaling $3.9 million dollars (representing 78% of the money lost when Iris collapsed)….” (Docket No. 17, ¶ 6). This is a mischaracterization of the settlements (as well as the amounts recovered). While the identities of the settling parties are confidential, the settlements themselves were publicly reported to the Court and all interested parties. As detailed in their respective notices, the settlements that Mr. Kniss refers to were based on alleged securities law violations. As stated in the notices, no inference of wrongdoing should be drawn from any of the settlements. Furthermore, the settlements resolved allegations related to Oregon securities law. Those alleged securities law violations cannot be blamed for the seemingly wrongful acts by Mr. Kniss himself (including misrepresentations and misuse of assets) that I have summarized in this letter. I hold the attorney-client privilege for the Iris Entities, and my counsel and I have seen no evidence suggesting that Mr. Kniss’s actions described in this letter (both the bad and the good) were taken upon advice of counsel – or from other legal, accounting, or business advisors. As a disclaimer, I can only report to Your Honor from my specific vantage point, based upon an incomplete record. It is possible that others who are not involved in this criminal proceeding may have benefitted from this situation. However, this proceeding is focused on sentencing Mr. Kniss for his actions, and he was solely responsible for establishing and managing the Iris Entities. In that role, it seems that his choices – including misuse of business funds, failure to maintain records, and misrepresentations to investors – cannot be blamed on others. Please let me know if you have questions. Sincerely,

/s/ Amy Mitchell Amy Mitchell, Receiver for the Iris Entities

I agree with and confirm all representations herein: /s/ Justin D. Leonard Justin D. Leonard, Counsel for Receiver

Enclosures: Exhibits A-C cc: Interested Parties via ECF


1 - EX. A - UPDATED CLAIMS ANALYSIS (OCTOBER 15, 2018)

LEONARD LAW GROUP LLC 1 SW Columbia, Ste. 1010

Portland, Oregon 97258 leonard-law.com

IN THE CIRCUIT COURT FOR THE STATE OF OREGON FOR THE COUNTY OF MULTNOMAH

In re Judicial Dissolution of Iris Fund Entities: Iris Capital Management Group, LLC, Iris Private Capital, LLC, Iris Capital Fund I, Limited Partnership, Iris Capital Fund I GP, LLC, Iris Private Capital Fund II, Ltd. Partnership, IPC Villages GP, LLC, IPC Fund III, Limited Partnership, IPC Woodridge GP, LLC, Iris Private Capital Fund IV, LP, IPC Fund IV, GP, LLC,

Petitioners.

Case No. 15-CV-30269

UPDATED CLAIMS ANALYSIS (OCTOBER 15, 2018)

EXHIBIT A TO ORDER APPROVING (1) SECOND DISTRIBUTION TO CLAIMANTS; AND (2) UPDATED CLAIMS ANALYSIS

Amy Mitchell, Iris Funds Receiver PO Box 2289 Lake Oswego, OR 97035 Phone: 503.675.9955 Email: [email protected]

Investor Name Type of

Claim CLAIM

(Excl. Int & Fees; per Proof of

Claim Form §3)

VERIFIED PRINCIPAL

CLAIM (Per

Receiver)

TOTAL REPAYMTS.

(Per Receiver)

FINAL "TIER ONE"

ALLOWED CLAIM

Initial Distribution

Payment

2018 Proposed

Distribution (incl. any

hold-back)

IRA of Margaret Aune Investor $51,100.00 $49,700.00 $0.00 $49,700.00 $25,581.78 $13,066.33

IRA of Curtis Austin Investor $70,000.00 $35,000.00 $0.00 $35,000.00 $18,015.34 $9,201.64

Linda Barnum Investor $53,029.17 $36,000.00 $1,200.00 $34,800.00 $17,912.39 $9,149.06

Stuart Bell Investor $155,000.00 $100,000.00 $0.00 $100,000.00 $51,472.40 $26,290.41

IRA of Cynthia Bohan Investor $76,000.00 $76,000.00 $0.00 $76,000.00 $39,119.02 $19,980.71

Barry Boley Non-Inv.: Bookkeeper

$81,221.79 $81,221.79 $0.00 $81,221.79 $41,806.80 $21,353.54

IRA of Laura Bonham Investor $75,541.02 $70,000.00 $0.00 $70,000.00 $36,030.68 $18,403.29

June Cameron Investor $25,000.00 $25,000.00 $0.00 $25,000.00 $12,868.10 $6,572.60

Cartwright, Dawn IRA Investor "Unknown" $60,000.00 >$60,000 $0.00 $0.00 $0.00

IRA Marie L. Coax Investor $15,000.00 $15,000.00 $0.00 $15,000.00 $7,720.86 $3,943.56

Samuel Coehlo Investor $189,853.12 $144,375.00 $0.00 $144,375.00 $74,313.27 $37,956.78

Coleman, Randall IRA Investor $117,685.97 $5,000.00 >$5000 $0.00 $0.00 $0.00

IRA of Yvonne Crowe Investor $36,171.33 $25,000.00 $0.00 $25,000.00 $12,868.10 $6,572.60

IRA of Dan Deane Investor $56,500.00 $76,500.00 $20,000.00 $56,500.00 HELD $43,935.99

IRA of Pam Degler Investor $25,000.00 $25,000.00 $0.00 $25,000.00 $12,868.10 $6,572.60

Verne & Donna Duncan Investor $45,000.00 $30,000.00 $0.00 $30,000.00 $15,441.72 $7,887.12

Fagan, Scott Non-Inv.: Shayne Kniss loan

$117,795.00 OBJECT $0.00 $0.00 $0.00 $0.00

TD Ameritrade FBO Krista Fischer IRA

Investor $141,500.00 $150,000.00 $8,500.00 $141,500.00 HELD $110,034.37

EXHIBIT A 1 of 3





Investor Name Type of Claim

CLAIM (Excl. Int & Fees; per Proof of

Claim Form §3)

VERIFIED PRINCIPAL CLAIM (Per Receiver)

TOTAL REPAYMTS.

(Per Receiver)

FINAL "TIER ONE"

ALLOWED CLAIM


Payment

2018 Proposed


hold-back)

Francisco, Daniel Non-Inv.: employee

[Request for W-2]

$0.00 $0.00 $0.00 $0.00 $0.00

Gilbert, Michael "Scotty"

Investor No Claim $0.00 $0.00 $0.00 $0.00 $0.00

Heyer, Andrew Non-Inv.: West Grove

$145,200.00 SETTLED $0.00 $0.00 $0.00 $0.00

IRA of Beth Hodgkinson Investor $43,535.00 $56,000.00 $12,465.00 $43,535.00 $22,408.51 $11,445.53

Hodgkinson, Glen IRA Investor No Claim $0.00 $0.00 $0.00 $0.00 $0.00

Pioneer Canyon 1, LLC Investor $200,000.00 $200,000.00 $42,000.00 $158,000.00 $81,326.39 $41,538.85

IRA of Frederick Jiebmann

Investor $17,697.00 $50,000.00 $22,700.00 $27,300.00 $14,051.96 $7,177.28

Karl Kaluza Investor $172,431.00 $172,431.25 $0.00 $172,431.25 $88,754.50 $45,332.88

Kelly Creek Estates Townhomes No. 2 Owner's Association, Inc.

Non-Inv.: HOA (secured claim)

$28,075.10 PAID $0.00 $0.00 $0.00 $0.00

Kniss, Shayne "Investor"-Disallowed

$175,706.00 OBJECT $0.00 $0.00 $0.00 $0.00

Betty Krause Investor $110,000.00 $160,000.00 $50,000.00 $110,000.00 $56,619.64 $28,919.45

IRA of Jeff Laviolette Investor $64,500.00 $64,500.00 $0.00 $64,500.00 $33,199.70 $16,957.31

Jeff Laviolette Investor $27,500.00 $27,500.00 $0.00 $27,500.00 $14,154.91 $7,229.86

Lewis Group CPAs, P.C. Non-Inv.: CPA

$8,000.00 WITHDRAWN $0.00 $0.00 $0.00 $0.00

Tina Lundell Investor $75,000.00 $75,000.00 $0.00 $75,000.00 $38,604.30 $19,717.81

Maze, Ed and Gayle Investor No Claim $0.00 $0.00 $0.00 $0.00 $0.00

TD Ameritrade FBO Thomas McCord II IRA

Investor $133,500.00 $100,000.00 $0.00 $100,000.00 $38,604.30 $39,158.51

USBI F.B.O. Patricia McLean-Rogers

Investor $30,000.00 $30,000.00 $0.00 $30,000.00 $15,441.72 $7,887.12

IRA of Amy Mills Investor $75,842.00 $48,970.00 $0.00 $48,970.00 $25,206.03 $12,874.41

Roger Mills Investor $354,815.00 $350,000.00 $70,000.00 $280,000.00 $144,122.71 $73,613.15

Myers, Blaine Investor $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

IRA of Frank Nau Investor $189,000.00 $140,000.00 $0.00 $140,000.00 $72,061.36 $36,806.57

O'Donnell, John IRA Investor No Claim $0.00 $0.00 $0.00 $0.00 $0.00

OR-Kruse Woods, LLC Non-Inv.: Landlord

$46,352.04 $46,352.04 $0.00 $46,352.04 $23,858.51 $12,186.14

Nicholas Orr Non-Inv.: West Grove

$25,000.00 $25,000.00 $0.00 $25,000.00 $12,868.10 $6,572.60

Charles Schwab FBO Starr Padden IRA

Investor $617,000 est.

$800,000.00 $210,043.13 $589,956.87 $303,664.95 $155,102.08

EXHIBIT A 2 of 3





Investor Name Type of Claim

CLAIM (Excl. Int & Fees; per Proof of

Claim Form §3)

VERIFIED PRINCIPAL CLAIM (Per Receiver)

TOTAL REPAYMTS.

(Per Receiver)

FINAL "TIER ONE"

ALLOWED CLAIM


Payment

2018 Proposed


hold-back)

Charles Schwab FBO Susan Putnam IRA

Investor $30,000.00 $135,000.00 $0.00 $135,000.00 $69,487.74 $35,492.05

IRA of Thomas S. Renne Investor $29,194.67 $25,000.00 $0.00 $25,000.00 $12,868.10 $6,572.60

Duncan Roberts Investor $57,500.00 $125,000.00 $67,500.00 $57,500.00 $29,596.63 $15,116.99

IRA of Charles Robinett Investor $36,064.00 $25,000.00 $0.00 $25,000.00 $12,868.10 $6,572.60

IRA of Florence Robinett Investor $36,064.00 $25,000.00 $0.00 $25,000.00 $12,868.10 $6,572.60

USBI F.B.O. Mark Rogers Investor $759,100.00 $729,500.00 $254,046.23 $475,453.77 $244,727.46 $124,998.75

Rudder, David Non-Inv.: West Grove

$75,881.50 $0.00 $0.00 $0.00 $0.00 $0.00

Russo, John Investor No Claim $0.00 $0.00 $0.00 $0.00 $0.00

Russo, Sandra Investor No Claim $0.00 $0.00 $0.00 $0.00 $0.00

IRA of Jessica Schlegel Investor $10,625.57 $10,500.00 $0.00 $10,500.00 $5,404.60 $2,760.49

IRA of Stephen Schlegel, Jr.

Investor $75,499.72 $75,000.00 $0.00 $75,000.00 $38,604.30 $19,717.81

IRA of Sharon Sherman Investor $495,000.00 $495,000.00 $0.00 $495,000.00 $254,788.37 $130,137.53

IRA of Douglas Siegel Investor $17,175.00 $75,000.00 $57,825.00 $17,175.00 HELD $13,355.76

Siegel, Esther Investor No Claim $56,000.00 $0.00 $0.00 DISALLOWED $0.00

IRA of Mary Siegel Investor $7,721.00 $33,700.00 $25,979.00 $7,721.00 HELD $6,004.07

IRA of Dale Smith Investor $30,000.00 $30,000.00 $0.00 $30,000.00 $15,441.72 $7,887.12

Tracy Stewart Investor $327,684.23 $301,259.23 $0.00 $301,259.23 $155,065.35 $79,202.29

IRA of James Talavs Investor $42,000.00 $42,000.00 $0.00 $42,000.00 $21,618.41 $11,041.97

IRA of Monte Troutman Investor $43,500.00 $43,000.00 $0.00 $43,000.00 $22,133.13 $11,304.88

IRA of Pepper Troutman Investor $182,500.00 $182,500.00 $0.00 $182,500.00 $93,937.13 $47,980.00

Fidelity Brokerage Services, LLC FBO Lavern E. Wagner Rollover IRA

Investor $50,000.00 $100,000.00 $0.00 $100,000.00 $51,472.40 $26,290.41

James and Judy Wick Investor $48,000.00 $48,000.00 $0.00 $48,000.00 $24,706.75 $12,619.40

IRA of James Wick Investor $83,500.00 $83,500.00 $0.00 $83,500.00 $42,979.45 $21,952.49

IRA of Judy Wick Investor $14,000.00 $14,000.00 $0.00 $14,000.00 $7,206.14 $3,680.66

TOTALS: $6,003,509.31 $842,258.36 $5,040,250.95 $2,466,740.02 $1,452,700.62

EXHIBIT A 3 of 3


EXHIBIT B 1 of 4


EXHIBIT B 2 of 4


EXHIBIT B 3 of 4


EXHIBIT B 4 of 4


Acct# 635Page: 1 of 6

IRIS PRIVATE CAPITAL LLC400 D AVELAKE OSWEGO OR 97034-2322

Customer inquiries:

Relationship Manager:

866-486-7782

Umpqua BankLake Oswego Store201 B Avenue, Suite 100Lake Oswego, OR 97034

STORE OF ACCOUNT

Deposits/AdditionsDate Description Additions

ACH and Electronic Payments/SubtractionsDate Description Subtractions

Total ACH and Electronic Payments/Subtractions

Last statement: September 30, 2015This statement: October 31, 2015

Overdrafts can happen; we want to make sure you know about all the tools available to help avoidthem. The best way to avoid overdrafts and associated fees is to keep a close eye on your accountbalances. All the details and helpful tips are at umpquabank.com. Look for "overdraft services"under the personal tab, or stop by your neighborhood store.

COMMUNITY BUSINESS CHECKING

Account number 635Low balance $734.77Average balance $9,936.87Interest earned $0.00

Beginning balance $6,371.08Deposits/Additions $46,332.58Withdrawals/Subtractions $48,490.02Ending balance $4,213.64

10-14 Deposit 11,000.0010-15 Deposit 9,983.00

Total Deposits/Additions $20,983.00

10-02 ACH Debit Capital One Mobile Pmt 527439809127908 20151002 5,000.0010-13 ACH Debit Capital One Mobile Pmt 528239809488791 20151013 530.0010-15 ACH Debit Synchrony Bank Cc Pymt 20151015 2,773.8410-16 ACH Debit City Lake Oswego Utility DD 20151016 173.1910-20 ACH Debit Capital One Mobile Pmt 529239809350312 20151020 3,665.12

$12,142.15

EXHIBIT C 1 of 6


IRIS PRIVATE CAPITAL LLC Page: 2October 31, 2015 635

ACH and Electronic Deposits/AdditionsDate Description Additions

Total ACH and Electronic Deposits/Additions

Date Description Subtractions

10-13 ACH Credit Propm Homes 7587 Payments 292 Iris Privat 20151013 14,498.4410-13 ACH Credit Propm Homes 7587 Payments 293 Iris Privat 20151013 5,187.0010-13 ACH Credit Propm Homes 7587 Payments 294 Iris Privat 20151013 3,248.6010-13 ACH Credit Propm Homes 7587 Payments 295 Iris Privat 20151013 1,368.6410-13 ACH Credit Propm Homes 7587 Payments 296 Iris Privat 20151013 1,046.90

$25,349.58

Card Transactions/Withdrawals

10-01 POS Purchase Terminal Vbase2 MT. Park Convenien Ce S Lake Oswe ORXxxxxxxxxxxx8972

5.97

10-01 POS Purchase Terminal Vbase2 Sq *Kaady Car Wash 312 Milwaukie ORXxxxxxxxxxxx8972

7.00

10-01 POS Purchase Terminal Vbase2 Rite Aid Store - 5 329 Lake Oswe ORXxxxxxxxxxxx8972

3.99

10-01 POS Purchase Terminal Vbase2 Starbucks #00473 P Ortl Portland ORXxxxxxxxxxxx8972

7.00

10-02 POS Purchase Terminal S1d0740 Shell Oil 57444929 202 Portland ORXxxxxxxxxxxx8972

3.99


3.99


3.99

10-02 POS Purchase Terminal 002 Safeway Store0000 5082 Lake Oswe ORXxxxxxxxxxxx8972

8.28


3.99

10-02 POS Purchase Terminal 08 7-eleven 14497 Lake Oswe OR Xxxxxxxxxxxx8972 3.4910-02 POS Purchase Terminal Vbase2 Sq *Kyra's Bake Sh Op Lake Oswe OR

Xxxxxxxxxxxx89728.85

10-02 POS Purchase Terminal Vbase2 Starbucks #00473 P Ortl Portland ORXxxxxxxxxxxx8972

3.25

10-05 POS Purchase Terminal 001 Henrys Market D Portland OR Xxxxxxxxxxxx8972 3.9810-05 POS Purchase Terminal 16072575 Macy's East #394 Portland OR Xxxxxxxxxxxx8972 115.0010-05 POS Purchase Terminal 00382201 Taco Bell #25988 Portland OR Xxxxxxxxxxxx8972 4.2910-05 POS Purchase Terminal 002 Sunny 82nd Market Portland OR Xxxxxxxxxxxx8972 1.9910-05 POS Purchase Terminal Vbase2 Blitz Sports Pubs Tigard OR Xxxxxxxxxxxx8972 32.5010-05 POS Purchase Terminal 1 New Seasons Market Lake Oswe OR Xxxxxxxxxxxx8972 11.4810-05 POS Purchase Terminal 08 7-eleven 19222 Lake Grov OR Xxxxxxxxxxxx8972 5.4810-05 POS Purchase Terminal 001 Safeway Store0000 5082 Lake Oswe OR


10-05 POS Purchase Terminal 1 Plaid Pantry #204 Lake Oswe OR Xxxxxxxxxxxx8972 3.4910-05 POS Purchase Terminal 01 Chevron 00097028 Lake Oswe OR Xxxxxxxxxxxx8972 3.3810-05 POS Purchase Terminal In2100 Chevron 00097028 Lake Oswe OR Xxxxxxxxxxxx8972 45.6510-05 POS Purchase Terminal 00102527 Nicoli's Grill & S Port Lake Oswe OR


10-05 POS Purchase Terminal 00102527 Nicoli's Grill & S Port Lake Oswe ORXxxxxxxxxxxx8972

7.00

10-05 POS Purchase Terminal 00102527 Nicoli's Grill & S Port Lake Oswe ORXxxxxxxxxxxx8972

37.99


13.99

10-05 POS Purchase Terminal 47693840 Kure Juice Bar Portland OR Xxxxxxxxxxxx8972 14.7510-05 POS Purchase Terminal 1 Mcdonald's F11099 Vancouver WA Xxxxxxxxxxxx8972 2.1710-05 POS Purchase Terminal 3483001 Arco#82295 Vancouver WA Xxxxxxxxxxxx8972 2.70

EXHIBIT C 2 of 6



Date Description Subtractions10-06 POS Purchase Terminal Vbase2 The Observatory Portland OR Xxxxxxxxxxxx8972 42.0010-06 POS Purchase Terminal 824032 Jolly Roger At Joh Ns L Portland OR Xxxxxxxxxxxx8972 5.0010-06 POS Purchase Terminal 003 Safeway Store0000 5082 Lake Oswe OR



13.98


2.75

10-07 POS Purchase Terminal 001 Taco Bell 00020002 9678 Portland OR Xxxxxxxxxxxx8972 3.9910-07 POS Purchase Terminal 003 Safeway Store0000 5082 Lake Oswe OR


10-07 POS Purchase Terminal 08 7-eleven 14497 Lake Oswe OR Xxxxxxxxxxxx8972 6.0010-07 POS Purchase Terminal Vbase2 Sq *Cody Orchards Frui Hood Rive OR


10-07 POS Purchase Terminal Vbase2 Sq *Packer Orchard S & Hood Rive ORXxxxxxxxxxxx8972

6.00


6.28

10-08 POS Purchase Terminal Vbase2 Adobe *Creative Cl Oud 800-833-6 CAXxxxxxxxxxxx8972

49.99


13.46

10-08 POS Purchase Terminal 08 7-eleven 14497 Lake Oswe OR Xxxxxxxxxxxx8972 3.0010-09 POS Purchase Terminal 002 Safeway Store0000 5082 Lake Oswe OR



6.99

10-13 POS Purchase Terminal Vbase2 Dangs Thai Kitchen Lake Oswe OR Xxxxxxxxxxxx8972 11.5010-13 POS Purchase Terminal S1b0157 Shell Oil 57443146 204 Lake Oswe OR


10-13 POS Purchase Terminal 00065203 Regal Cinemas Brid Gepo Tigard ORXxxxxxxxxxxx8972

20.00


21.87


8.99




17.96

10-13 POS Purchase Terminal Vbase2 Starbucks #15430 L Ake Lake Oswe ORXxxxxxxxxxxx8972

6.40

10-13 POS Purchase Terminal 00003221 18 8 Fine Men's Sa Lons Lake Oswe ORXxxxxxxxxxxx8972

82.00

10-13 POS Purchase Terminal 01391112 Mod Pizza Kruse Vi Llag Lake Oswe ORXxxxxxxxxxxx8972

13.94


77.38


3.49


2.99


26.46


13.76

10-15 POS Purchase Terminal Vbase2 Redbox *Dvd Rental 866-733-2 Il Xxxxxxxxxxxx8972 8.0010-15 POS Purchase Terminal Vbase2 Starbucks #10465 P Ortl Portland OR


EXHIBIT C 3 of 6



Date Description Subtractions10-16 POS Purchase Terminal 047 Safeway Store0000 5082 Lake Oswe OR


10-19 POS Purchase Terminal Vbase2 Adobe *Il Creative Cld 800-833-6 CA Xxxxxxxxxxxx8972 19.9910-19 POS Purchase Terminal 003 Safeway Store0000 5082 Lake Oswe OR


10-19 POS Purchase Terminal 42080002 Lewis Bros Rental Portland OR Xxxxxxxxxxxx8972 150.0010-19 POS Purchase Terminal Vbase2 Clyde Common Portland OR Xxxxxxxxxxxx8972 41.5010-19 POS Purchase Terminal S1d0740 Shell Oil 57444929 202 Portland OR



3.18

10-19 POS Purchase Terminal 30208968 Ava Roasteria - 4 - Kr Lake Oswe ORXxxxxxxxxxxx8972

3.00

10-19 POS Purchase Terminal S1h0004 Shell Oil 57443145 909 Lake Oswe ORXxxxxxxxxxxx8972

3.00

10-19 POS Purchase Terminal Vbase2 Eb No Vacancy018 W L 888-810-2 CAXxxxxxxxxxxx8972

43.19

10-19 POS Purchase Terminal 19979997 Smartpark Naito Da Vis Portland ORXxxxxxxxxxxx8972

5.00

10-19 POS Purchase Terminal 001 Taco Bell 00160016 6009 Tigard OR Xxxxxxxxxxxx8972 7.7810-19 POS Purchase Terminal Vbase2 Sq *Kyra's Bake Sh Op Lake Oswe OR


10-19 POS Purchase Terminal 01391112 Mod Pizza Kruse Vi Llag Lake Oswe ORXxxxxxxxxxxx8972

19.41


7.77

10-19 POS Purchase Terminal Vbase2 Starbucks #00440 L Ake Lake Oswe ORXxxxxxxxxxxx8972

5.90

10-19 POS Purchase Terminal Vbase2 Dangs Thai Kitchen Lake Oswe OR Xxxxxxxxxxxx8972 19.0010-19 POS Purchase Terminal 001 Safeway Store0000 5082 Lake Oswe OR


10-19 POS Purchase Terminal Vbase2 Starbucks #11978 T Uala Tualatin ORXxxxxxxxxxxx8972

7.40

10-20 POS Purchase Terminal 001 Petco 212 6350 2124 Tigard OR Xxxxxxxxxxxx8972 7.0010-20 POS Purchase Terminal 004 Safeway Store0000 5082 Lake Oswe OR


10-20 POS Purchase Terminal Vbase2 Starbucks #11978 T Uala Tualatin ORXxxxxxxxxxxx8972

4.65

10-21 POS Purchase Terminal 16439568 The Whiskey Bar Portland OR Xxxxxxxxxxxx8972 11.0010-21 POS Purchase Terminal 18479922 Zupan's Market Lake Oswe OR Xxxxxxxxxxxx8972 10.1310-21 POS Purchase Terminal 001 Safeway Store0000 5082 Lake Oswe OR



6.00


3.05


7.98




3.05

10-26 POS Purchase Terminal 00002172 Bambuza Lake Osweg O Lake Oswe ORXxxxxxxxxxxx8972

10.50

10-26 POS Purchase Terminal 07508597 Nike Company Store #19 Beaverton ORXxxxxxxxxxxx8972

181.00

10-26 POS Purchase Terminal 355 0000 At&t*bill Payment 800-331-0 Tx Xxxxxxxxxxxx8972 91.6810-26 POS Purchase Terminal Vbase2 Apple Store #R134 Tigard OR Xxxxxxxxxxxx8972 35.0010-26 POS Purchase Terminal Vbase2 Wholefds Brd 10266 Tigard OR Xxxxxxxxxxxx8972 33.98

EXHIBIT C 4 of 6



Date Description Subtractions

Other Withdrawals/SubtractionsDate Description Subtractions

Total Other Withdrawals/Subtractions

Overdraft Fee Summary

Total ForThis Period

TotalYear-to-Date

Total Overdraft Fees

Total Returned Item Fees

10-26 POS Purchase Terminal 28194568 Fred-meyer #0375 Tigard OR Xxxxxxxxxxxx8972 35.3810-26 POS Purchase Terminal 003 Safeway Store0000 5082 Lake Oswe OR



44.83


7.77

10-26 POS Purchase Terminal Vbase2 Geico *Auto 800-841-3 Dc Xxxxxxxxxxxx8972 194.9910-27 POS Purchase Terminal 91038197 Sugarsync 888-78478 CA Xxxxxxxxxxxx8972 7.4910-27 POS Purchase Terminal 47655427 Legacy Clinic Lake Osw Lake Oswe OR



15.00


6.98

10-30 POS Purchase Terminal 000 0001 Mendocino Terrace - Anaheim CAXxxxxxxxxxxx8972

19.44

Total Card Transactions/Withdrawals $2,247.87

10-14 OTC Withdrawal 5,000.0010-15 OTC Withdrawal 7,000.0010-16 OTC Withdrawal 14,100.00

$26,100.00

Daily BalancesDate Amount09-30 6,371.0810-01 6,347.1210-02 1,307.2910-05 970.4810-06 913.0110-07 831.1010-08 758.37

Date Amount10-09 734.7710-13 25,263.2710-14 31,236.8110-15 31,415.2110-16 17,139.2710-19 16,703.8710-20 13,019.33

Date Amount10-21 12,994.7110-22 12,972.2410-23 12,969.1910-26 12,297.5510-27 12,240.0610-28 12,233.0810-30 4,213.6410-31 4,213.64

$0.00 $35.00

$0.00 $175.00

EXHIBIT C 5 of 6



ChecksCk# Amount Date1112 8,000.00 10-30

ChecksCk# Amount Date

Total Checks paid: 1 for $8,000.00(* Skip in check sequence, R-Check has been returned, + Electronified check)

EXHIBIT C 6 of 6


Amy Mitchell, Receiver Iris Settlement Fund P.O. Box...

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