Michael Gerard Fletcher (State Bar No. 070849) FRANDZEL … · 2021. 1. 11. · Michael Gerard...
Transcript of Michael Gerard Fletcher (State Bar No. 070849) FRANDZEL … · 2021. 1. 11. · Michael Gerard...
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4045014.3 | 078410-0061 1 Case No. 5:18-cv-02104-SJO-PLA
NOTICE OF FIFTH APPLICATION AND FIFTH APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES AND EXPENSES, ETC.
Michael Gerard Fletcher (State Bar No. 070849) [email protected] Craig A. Welin (State Bar No. 138418) [email protected] Hal D. Goldflam (State Bar No. 179689) [email protected] FRANDZEL ROBINS BLOOM & CSATO, L.C. 1000 Wilshire Boulevard, Nineteenth Floor Los Angeles, California 90017-2427 Telephone: (323) 852-1000 Facsimile: (323) 651-2577
Attorneys for Receiver ROBB EVANS AND ASSOCIATES LLC
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
WESTERN DIVISION
FEDERAL TRADE COMMISSION,
Plaintiff,
v.
JASON CARDIFF, etc., et al.,
Defendants.
Case No. 5:18-cv-02104-DMG-PLA
NOTICE OF FIFTH APPLICATION AND FIFTH APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES AND EXPENSES FOR THE PERIOD FROM JULY 1, 2020 THROUGH OCTOBER 31, 2020; MEMORANDUM OF POINTS AND AUTHORITIES
[Fifth Fee Application; Local Rule 66-7(f)]
Date: February 5, 2021 Time: 9:30 a.m. Place: Courtroom 8C, 350 West 1st St. Judge: Hon. Dolly M. Gee
Case 5:18-cv-02104-DMG-PLA Document 537 Filed 01/08/21 Page 1 of 17 Page ID#:30526
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4045014.3 | 078410-0061 2 Case No. 5:18-cv-02104-SJO-PLA
NOTICE OF FIFTH APPLICATION AND FIFTH APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES AND EXPENSES, ETC.
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TO: THE HONORABLE DOLLY M. GEE, UNITED STATES DISTRICT
JUDGE, THE PARTIES TO THIS ACTION, AND TO ALL KNOWN
CREDITORS AND OTHER PARTIES IN INTEREST:
PLEASE TAKE NOTICE that on February 5, 2021, at 9:30 a.m., or as soon
thereafter as the parties may be heard in Courtroom 8C of the above-entitled court
located at 350 West 1st Street, 8th Floor, Los Angeles, California 90012, Robb
Evans & Associates LLC, as Receiver of Redwood Scientific Technologies, Inc.
(California), Redwood Scientific Technologies, Inc. (Nevada), Redwood Scientific
Technologies, Inc. (Delaware), Identify, LLC, Advance Men’s Institute Prolongz
LLC, Run Away Productions, LLC, Carols Place Limited Partnership, and each of
their subsidiaries, affiliates, successors, and assigns, and of assets of Jason Cardiff
and Eunjung Cardiff (collectively, the “Receivership Defendants”), and as Receiver
of as Receiver of VPL Medical, Inc., will and hereby does apply to the Court for an
order approving the payment of the fees and expenses of the Receiver, the
Receiver’s staff, and the Receiver’s outside counsel, Frandzel Robins Bloom &
Csato, L.C., for the period from July 1, 2020 through October 31, 2020 (“Fifth
Reporting Period”). During the Fifth Reporting Period (a) the fees and costs of the
Receiver and its staff totaled $160,032.79 (consisting of $156,166.20 in fees and
$3,866.59 in costs), and (b) the fees and costs of FRBC totaled $348,969.76
(consisting of $344,648.50 in fees and $4,321.26 in costs), for a total of
$509,002.55.
PLEASE TAKE FURTHER NOTICE that this Application is made pursuant
to Local Rule 66-7(f) and in accordance with the Court’s preliminary injunctions
issued in this action, namely Preliminary Injunction with Asset Freeze, Receiver,
and Other Equitable Relief against Jason Cardiff and Eunjung Cardiff [Doc. No. 59,
filed on November 8, 2018], which requires the Receiver to file with the Court and
serve on the parties periodic requests for the payment of reasonable compensation
for the Receiver’s and the Receiver’s hired personnel, including counsel to the
Case 5:18-cv-02104-DMG-PLA Document 537 Filed 01/08/21 Page 2 of 17 Page ID#:30527
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4045014.3 | 078410-0061 3 Case No. 5:18-cv-02104-SJO-PLA
NOTICE OF FIFTH APPLICATION AND FIFTH APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES AND EXPENSES, ETC.
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Receiver, and for actual out-of-pocket expenses incurred by them.
Further, to the extent L.R. 7-3 applies to this Application, please see the
discussion in the concurrently filed Declaration of Michael Gerard Fletcher
regarding the Receiver’s compliance with this local rule.
This Application is based upon this Notice and the attached Memorandum of
Points and Authorities; the concurrently filed Declarations of Brick Kane and
Michael Gerard Fletcher and Exhibits thereto; upon the pleadings, records and files
of this case of which the Receiver requests the Court take judicial notice, and upon
all other further pleadings, oral and documentary evidence and argument of counsel
as may be presented by the Receiver at or before the time of the hearing on this
Application.
PLEASE TAKE FURTHER NOTICE that a copy of this Application and
supporting declarations and exhibits are posted on the Receiver’s website at
https://www.robbevans.com/find-a-case/redwood-scientific-technologies-inc-et-al/
where they may be reviewed in their entirety. This Application, the attached
Memorandum of Points and Authorities, and the concurrently filed declarations and
exhibits are being served on all parties herein. While a copy of this Application and
the attached Memorandum of Points and Authorities is being served on all known
creditors and interested parties (see attached Creditors Service List), these third-
parties may obtain copies of the supporting declarations and exhibits by accessing
the Receiver’s website or by sending a written request to: Robb Evans & Associates
LLC, 11450 Sheldon Street, Sun Valley, California 91352-1121; Telephone (818)
768-8100; Facsimile: (818) 768-8802.
Case 5:18-cv-02104-DMG-PLA Document 537 Filed 01/08/21 Page 3 of 17 Page ID#:30528
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4045014.3 | 078410-0061 4 Case No. 5:18-cv-02104-SJO-PLA
NOTICE OF FIFTH APPLICATION AND FIFTH APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES AND EXPENSES, ETC.
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Dated: January 8, 2021 FRANDZEL ROBINS BLOOM & CSATO, L.C.MICHAEL GERARD FLETCHER CRAIG A. WELIN HAL D. GOLDFLAM
By: /s/ Michael Gerard Fletcher
MICHAEL GERARD FLETCHER Attorneys for Receiver ROBB EVANS & ASSOCIATES LLC
Case 5:18-cv-02104-DMG-PLA Document 537 Filed 01/08/21 Page 4 of 17 Page ID#:30529
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4045014.3 | 078410-0061 5 Case No. 5:18-cv-02104-SJO-PLA
NOTICE OF FIFTH APPLICATION AND FIFTH APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES AND EXPENSES, ETC.
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MEMORANDUM OF POINTS AND AUTHORITIES
I. CHRONOLOGICAL FACTS THROUGH OCTOBER 31, 2020
1. On October 10, 2018, the Federal Trade Commission (“FTC”) initiated
this action alleging violations of the Federal Trade Commission Act, 15 U.S.C. §
45(a), among other alleged violations of federal laws and regulations.
2. On October 10, 2018, the Court issued its Ex Parte Temporary
Restraining Order with Asset Freeze, Appointment of a Temporary Receiver, and
Other Equitable Relief, and Order to Show Cause Why a Preliminary Injunction
Should Not Issue (“Temporary Restraining Order”), whereby the Court appointed
Robb Evans & Associates LLC (“REA”) the Temporary Receiver of the
Receivership Entities and of the assets of Jason Cardiff and Eunjung Cardiff as more
particularized therein. [Doc. No. 1.]
3. On October 24, 2018, the Court entered its Preliminary Injunction with
Asset Freeze, Receiver, and Other Equitable Relief Against Redwood Scientific
Technologies, Inc. (CA), etc. Appointment of a Receiver, and Other Equitable
Relief, whereby the Court ordered that Robb Evans & Associates LLC shall
continue to serve as the Receiver of the Receivership Entities with full powers of an
equity receiver. [Doc. No. 46.]
4. On October 24, 2018, the Court entered its Order Extending Temporary
Restraining Order and Granting Continuance of Preliminary Injunction Hearing for
Defendant Danielle Cadiz. [Doc. No. 47.]
5. On October 24, 2018, the Court entered its Order Extending Temporary
Restraining Order and Granting Continuance of Preliminary Injunction Hearing for
Defendants Jason Cardiff and Eunjung Cardiff and Ordering them to Return Assets.
[Doc. No. 48.]
6. On November 1, 2018, the Receiver filed its Report of Activities for
the period from October 10, 2018 through October 31, 2018 (“First Report of
Activities”). [Doc. No. 52; see also Doc. 53 Notice of Errata – whereby a readable
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4045014.3 | 078410-0061 6 Case No. 5:18-cv-02104-SJO-PLA
NOTICE OF FIFTH APPLICATION AND FIFTH APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES AND EXPENSES, ETC.
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copy of page 9 of the First Report of Activities was filed.]
7. On November 7, 2018, the Court entered its Stipulated Preliminary
Injunction as to Defendant Danielle Cadiz, whereby the Court ordered that Robb
Evans & Associates LLC shall continue to serve as the Receiver of the Receivership
Entities with full powers of an equity receiver [Doc. No. 55.]
8. On November 8, 2018, the Court entered its Preliminary Injunction
with Asset Freeze, Receiver, and Other Equitable Relief Against Jason Cardiff and
Eunjung Cardiff (“Preliminary Injunction”), whereby the Court ordered that Robb
Evans & Associates LLC shall continue to serve as the Receiver of the Receivership
Entities and of the Assets of Defendants Jason Cardiff and Eunjung Cardiff, as more
particularized therein, with full powers of an equity receiver. [Doc. No. 59.]
9. Pursuant to Section XXII of the Preliminary Injunction, the Court
ordered that:
“the Receiver and all personnel hired by the Receiver as
herein authorized, including counsel to the Receiver and
accountants, are entitled to reasonable compensation for
the performance of duties pursuant to this Order and for
the cost of actual out-of-pocket expenses incurred by
them, from the assets now held by, or in the possession or
control of, or which may be received by the Receivership
Defendants. The Receiver shall file with the Court and
serve on the parties periodic requests for the payment of
such reasonable compensation, with the first such request
filed no more than sixty (60) days after the date of this
Order.”
10. On September 27, 2019, the Court entered an Order Approving and
Authorizing Payment of the Receiver’s and Its Counsel’s Fees and Expenses for the
Period from Inception of the Receivership Estate through November 30, 2018
Case 5:18-cv-02104-DMG-PLA Document 537 Filed 01/08/21 Page 6 of 17 Page ID#:30531
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4045014.3 | 078410-0061 7 Case No. 5:18-cv-02104-SJO-PLA
NOTICE OF FIFTH APPLICATION AND FIFTH APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES AND EXPENSES, ETC.
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(“First Fee Application”). [Doc. 223.]
11. On September 27, 2019, the Court entered its Order Approving and
Authorizing Payment of the Receiver’s and Its Counsel’s Fees and Expenses for the
Period from December 1, 2018 through June 30, 2019 (“Second Fee Application”).
[Doc. 224.]
12. On March 10, 2020, the Court entered its Order Approving Settlement
Between Receiver and Third-Party Inter/Media Time Buying Corporation. [Doc.
306.]
13. March 10, 2020, the entered its Order Authorizing the Receiver to Sell,
Subject to the Court’s Final Confirmation, Defendants Cardiffs’ Residence Located
at 700 West 25th Street, Upland, California. [Doc. 306, 309 (formal order).]
14. On March 10, 2020, the Court entered its Order Approving and
Authorizing Payment of the Receiver’s and Its Counsel’s Fees and Expenses for the
Period from July 1, 2019 through September 30, 2019 (“Third Fee Application”).
[Doc. 307.]
15. On June 24, 2020, the Court entered its Temporary Restraining Order
With Asset Freeze and Other Equitable Relief and Order to Show Cause Why A
Preliminary Injunction Should Not Issue Under Seal and In Camera temporarily
appointing the Receiver over VPL Medical, Inc., which the Court extended for the
duration of this case by entering its Preliminary Injunction with Asset Freeze and
Receiver on July 7, 2020 [Doc. 389], giving the Receiver the powers of an equity
receiver as to VPL (collectively, the “VPL Preliminary Injunction”).
15. On June 29, 2020, the Receiver filed the Report of Receiver’s
Immediate Access to the Premises of VPL Medical, Inc (“Initial VPL Report”).
[Doc. 365.]
16. On July 6, 2020, the Receiver file its Supplemental Report Regarding
VPL Medical, Inc., Jason Cardiff, and Materially Altered Bank Account Statements
(“Supplemental VPL Report”). [Doc. 380.]
Case 5:18-cv-02104-DMG-PLA Document 537 Filed 01/08/21 Page 7 of 17 Page ID#:30532
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4045014.3 | 078410-0061 8 Case No. 5:18-cv-02104-SJO-PLA
NOTICE OF FIFTH APPLICATION AND FIFTH APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES AND EXPENSES, ETC.
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17. On August 31, 2020, the Receiver filed the Declaration of Brick Kane
including the Receiver’s Report of VPL Medical, Inc. Conducting Operations Going
Forward dated August 18, 2020, attached as Exhibit 1 to the Declaration (“August
18, 2020 VPL Report”). (Filed under seal [Doc. 472] pursuant to the Court’s Order
entered on August 29, 2020 [Doc. 470]). In addition to the ongoing operational
expenses in the VPL Cash Flow Projections included with the August 18, 2020 VPL
Report is a weekly reserve for the Receiver’s fees and costs, including the
Receiver’s counsel. The parties stipulated to the Court approving the August 18,
2020 VPL Report, including the Cash Flow Projections, and for the Court to instruct
the Receiver to conduct VPL operations going forward in accordance therewith
[Doc. 467-1]. On August 29, 2020, the Court entered its Order approving the
August 18, 2020 Report including the VPL Cash Flow Projections, and instructed
the Receiver to conduct VPL Operations going forward in accordance with the VPL
Cash Flow Projections. [Doc. 470.]
18. On October 1, 2020, the Receiver filed its VPL Operating Report.
[Doc. 503] pursuant to the Court’s September 9, 2020, Order [Doc. 486] directing
the Receiver to “provide updates on VPL’s business, operations, income/expenses,
and earnings projections”, among other things, every 60 days (“October 1, 2020
VPL Report”).
19. On October 13, 2020, the Court entered its Order Re Receiver’s Fourth
Application for Fees and Expenses granting the Receiver’s Fourth Fee Application
and authorizing payment of the Receiver’s and its counsel’s fees and expenses the
Fourth Fee Period (October 1, 2019 through June 30, 2020) (“Fourth Fee
Application). [Doc. 514.]
20. By July 16, 2020, the Receiver filed a total of six Affidavits of Non-
Compliance with the TRO and Preliminary Injunction (October 23, 2018 [Doc.
206], July 2, 2019 [Doc. 144], August 22, 2019 [Docs. 200, 201], January 29, 2020
[Doc. 273], April 30, 2020 [Doc. 331], and July 16, 2020 [Doc. 442]).
Case 5:18-cv-02104-DMG-PLA Document 537 Filed 01/08/21 Page 8 of 17 Page ID#:30533
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4045014.3 | 078410-0061 9 Case No. 5:18-cv-02104-SJO-PLA
NOTICE OF FIFTH APPLICATION AND FIFTH APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES AND EXPENSES, ETC.
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II. THE RECEIVER’S AND RECEIVER’S COUNSEL’S FEES,
EXPENSES, AND ACTIVITIES DURING THE FIFTH REPORTING
PERIOD
During the Fifth Reporting Period (July 1, 2020 through October 31, 2020),
the fees and costs of the Receiver, the Receiver’s deputies, and staff totaled
$160,032.79, consisting of $156,166.20 in fees and $3,866.59 in costs. The legal
fees and costs of the Receiver’s counsel, Frandzel Robins Bloom & Csato, L.C.
(“FRBC”), which the Receiver hired pursuant to the authority given to the Receiver
in the Court’s Temporary Restraining Order at § XVI.G., and the Preliminary
Injunction at § XVI.G., totaled 348,969.76, consisting of $344,648.50 in fees and
$4,321.26 in costs. Accordingly, the total of receivership fees and expenses
incurred during the Fifth Reporting Period which the Receiver seeks an order
authorizing payment is $509,002.55. (See Declaration of Brick Kane.)
The activities undertaken by the Receiver, the Receiver’s duties, and staff
during the Fifth Reporting Period are summarized the accompanying Declaration of
Brick Kane and are further detailed in the Receiver’s monthly billing summaries
reflecting the services rendered and time spent by the Receiver. (See Declaration of
Brick Kane and Exh. 2.) The activities described in the First Report of Activities, in
my declarations submitted in support of the Receiver’s Second Fee Application,
Third Fee Application, and Fourth Fee Application, the Initial VPL Report, the
Supplemental VPL Report, the August 31, 2020 VPL Report, and the October 1,
2020 VPL Report generally have continued during the Fifth Reporting Period in the
context of the Receiver’s efforts to identify, obtain, safeguard and preserve assets of
the receivership estate and otherwise to perform its duties and responsibilities under
the authority granted by the Temporary Restraining Order and Preliminary
Injunction, and the VPL Preliminary Injunction, generally have continued during the
Fifth Reporting Period in the context of the Receiver’s efforts to identify, obtain,
safeguard and preserve assets of the receivership estate and otherwise to perform its
Case 5:18-cv-02104-DMG-PLA Document 537 Filed 01/08/21 Page 9 of 17 Page ID#:30534
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4045014.3 | 078410-0061 10 Case No. 5:18-cv-02104-SJO-PLA
NOTICE OF FIFTH APPLICATION AND FIFTH APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES AND EXPENSES, ETC.
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duties and responsibilities under the authority granted by the Temporary Restraining
Order, Preliminary Injunction, and VPL Preliminary Injunction. FRBC assisted the
Receiver during the Fifth Reporting Period in the manner summarized in the
concurrently filed Declaration of Michael Gerard Fletcher and FRBC’s activities are
further detailed in FRBC’s monthly billing summaries reflecting the services
rendered. (See Declaration of Michael Gerard Fletcher and Exh. 4.)
The Receiver respectfully submits that in light of the work performed during
the Fifth Reporting Period, the fees and costs of the Receiver and its professionals
are reasonable and should be approved and authorized for payment in their entirety.
III. CONCLUSION
Based on the foregoing and the concurrently filed Declarations of Brick Kane
and Michael Gerard Fletcher (and exhibits thereto), the Receiver respectfully
requests that the Court grant the Application and that it issue an order deeming that,
in light of the work performed during the Fifth Reporting Period, the fees and costs
of the Receiver and its professionals are reasonable and should be approved and
authorized for payment in their entirety.
Dated: January 8, 2021 FRANDZEL ROBINS BLOOM & CSATO, L.C.MICHAEL GERARD FLETCHER CRAIG A. WELIN HAL D. GOLDFLAM
By: /s/ Michael Gerard Fletcher
MICHAEL GERARD FLETCHER Attorneys for Receiver ROBB EVANS & ASSOCIATES LLC
Case 5:18-cv-02104-DMG-PLA Document 537 Filed 01/08/21 Page 10 of 17 Page ID#:30535
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4062768.1 | 078410-0061 1 Case No. 5:18-cv-02104-SJO-PLA
DECLARATIONS OF BRICK KANE AND MICHAEL GERARD FLETCHER IN SUPPORT OF APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES, ETC.
Michael Gerard Fletcher (State Bar No. 070849) [email protected] Craig A. Welin (State Bar No. 138418) [email protected] Hal D. Goldflam (State Bar No. 179689) [email protected] FRANDZEL ROBINS BLOOM & CSATO, L.C. 1000 Wilshire Boulevard, Nineteenth Floor Los Angeles, California 90017-2427 Telephone: (323) 852-1000 Facsimile: (323) 651-2577
Attorneys for Receiver ROBB EVANS AND ASSOCIATES LLC
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
WESTERN DIVISION
FEDERAL TRADE COMMISSION,
Plaintiff,
v.
JASON CARDIFF, etc., et al.,
Defendants.
Case No. 5:18-cv-02104-DMG-PLA
DECLARATIONS OF BRICK KANE AND MICHAEL GERARD FLETCHER IN SUPPORT OF APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES AND EXPENSES FOR THE PERIOD FROM JULY 1, 2020 THROUGH OCTOBER 31, 2020
[Fifth Fee Application; Local Rule 66-7(f)]
Date: February 5, 2021 Time: 9:30 a.m. Place: Courtroom 8C, 350 West 1st St. Judge: Hon. Dolly M. Gee
Case 5:18-cv-02104-DMG-PLA Document 537-1 Filed 01/08/21 Page 1 of 403 Page ID#:30543
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4062768.1 | 078410-0061 2 Case No. 5:18-cv-02104-SJO-PLA
DECLARATIONS OF BRICK KANE AND MICHAEL GERARD FLETCHER IN SUPPORT OF APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES, ETC.
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DECLARATION OF BRICK KANE
I, Brick Kane, declare as follows:
1. I am the President & Chief Operating Officer of Robb Evans &
Associates LLC (“REA”), initially the Temporary Receiver and subsequently the
Receiver in this matter. I have personal knowledge of the matters set forth in this
declaration and, if I were called upon to testify as to those matters, I could and
would competently testify thereto based upon my personal knowledge.
2. I am one of the individuals with REA that has primary responsibility
for the day-to-day supervision and management of the receivership estate in this
case since REA first began to act as the Temporary Receiver on October 10, 2018,
pursuant the its Ex Parte Temporary Restraining Order with Asset Freeze,
Appointment of a Temporary Receiver, and Other Equitable Relief, and Order to
Show Cause Why a Preliminary Injunction Should Not Issue (“Temporary
Restraining Order”).
3. On October 24, 2018, the Court entered its Preliminary Injunction with
Asset Freeze, Receiver, and Other Equitable Relief Against Redwood Scientific
Technologies, Inc. (CA), etc. Appointment of a Receiver, and Other Equitable
Relief, whereby the Court ordered that Robb Evans & Associates LLC shall
continue to serve as the Receiver of the Receivership Entities with full powers of an
equity receiver. [Doc. No. 46.]
4. On October 24, 2018, the Court entered its Order Extending Temporary
Restraining Order and Granting Continuance of Preliminary Injunction Hearing for
Defendant Danielle Cadiz. [Doc. No. 47.]
5. On October 24, 2018, the Court entered its Order Extending Temporary
Restraining Order and Granting Continuance of Preliminary Injunction Hearing for
Defendants Jason Cardiff and Eunjung Cardiff and Ordering them to Return Assets.
[Doc. No. 48.]
6. On November 1, 2018, the Receiver filed its Report of Activities for
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4062768.1 | 078410-0061 3 Case No. 5:18-cv-02104-SJO-PLA
DECLARATIONS OF BRICK KANE AND MICHAEL GERARD FLETCHER IN SUPPORT OF APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES, ETC.
FRA
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the period from October 10, 2018 through October 31, 2018 (“First Report of
Activities”). [Doc. No. 52; see also Doc. 53 Notice of Errata – whereby a readable
copy of page 9 of the First Report of Activities was filed.]
6. On November 7, 2018, the Court entered its Stipulated Preliminary
Injunction as to Defendant Danielle Cadiz, whereby the Court ordered that Robb
Evans & Associates LLC shall continue to serve as the Receiver of the Receivership
Entities with full powers of an equity receiver [Doc. No. 55.]
7. On November 8, 2018, the Court entered its Preliminary Injunction
with Asset Freeze, Receiver, and Other Equitable Relief Against Jason Cardiff and
Eunjung Cardiff (“Preliminary Injunction”), whereby the Court ordered that Robb
Evans & Associates LLC shall continue to serve as the Receiver of the Receivership
Entities and of the Assets of Defendants Jason Cardiff and Eunjung Cardiff, as more
particularized therein, with full powers of an equity receiver. [Doc. No. 59.]
8. On September 27, 2019, the Court entered an Order Approving and
Authorizing Payment of the Receiver’s and Its Counsel’s Fees and Expenses for the
Period from Inception of the Receivership Estate Through November 30, 2018.
[Doc. 223.]
9. On September 27, 2019, the Court entered an Order Approving and
Authorizing Payment of the Receiver’s and Its Counsel’s Fees and Expenses for the
Period from Inception of the Receivership Estate through November 30, 2018
(“First Fee Application”). [Doc. 223.]
10. On September 27, 2019, the Court entered its Order Approving and
Authorizing Payment of the Receiver’s and Its Counsel’s Fees and Expenses for the
Period from December 1, 2018 through June 30, 2019 (“Second Fee Application”).
[Doc. 224.]
11. On March 10, 2020, the Court entered its Order Approving Settlement
Between Receiver and Third-Party Inter/Media Time Buying Corporation
(“Inter/Media”). [Doc. 306.]
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4062768.1 | 078410-0061 4 Case No. 5:18-cv-02104-SJO-PLA
DECLARATIONS OF BRICK KANE AND MICHAEL GERARD FLETCHER IN SUPPORT OF APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES, ETC.
FRA
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12. March 10, 2020, the entered its Order Authorizing the Receiver to Sell,
Subject to the Court’s Final Confirmation, Defendants Cardiffs’ Residence Located
at 700 West 25th Street, Upland, California. [Doc. 306, 309 (formal order).]
13. On March 10, 2020, the Court entered its Order Approving and
Authorizing Payment of the Receiver’s and Its Counsel’s Fees and Expenses for the
Period from July 1, 2019 through September 30, 2019 (“Third Fee Application”).
[Doc. 307.]
14. On June 24, 2020, the Court entered its Temporary Restraining Order
With Asset Freeze and Other Equitable Relief and Order to Show Cause Why A
Preliminary Injunction Should Not Issue Under Seal and In Camera temporarily
appointing the Receiver over VPL Medical, Inc., which the Court extended for the
duration of this case by entering its Preliminary Injunction with Asset Freeze and
Receiver on July 7, 2020 [Doc. 389], giving the Receiver the powers of an equity
receiver as to VPL (collectively, the “VPL Preliminary Injunction”).
15. On June 29, 2020, the Receiver filed the Report of Receiver’s
Immediate Access to the Premises of VPL Medical, Inc (“Initial VPL Report”).
[Doc. 365.]
16. On July 6, 2020, the Receiver file its Supplemental Report Regarding
VPL Medical, Inc., Jason Cardiff, and Materially Altered Bank Account Statements
(“Supplemental VPL Report”). [Doc. 380.]
17. On August 31, 2020, the Receiver filed the Declaration of Brick Kane
including the Receiver’s Report of VPL Medical, Inc. Conducting Operations Going
Forward dated August 18, 2020, attached as Exhibit 1 to the Declaration (“August
18, 2020 VPL Report”). (Filed under seal [Doc. 472] pursuant to the Court’s Order
entered on August 29, 2020 [Doc. 470]). In addition to the ongoing operational
expenses in the VPL Cash Flow Projections included with the August 18, 2020 VPL
Report is a weekly reserve for the Receiver’s fees and costs, including the
Receiver’s counsel. The parties stipulated to the Court approving the August 18,
Case 5:18-cv-02104-DMG-PLA Document 537-1 Filed 01/08/21 Page 4 of 403 Page ID#:30546
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4062768.1 | 078410-0061 5 Case No. 5:18-cv-02104-SJO-PLA
DECLARATIONS OF BRICK KANE AND MICHAEL GERARD FLETCHER IN SUPPORT OF APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES, ETC.
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2020 VPL Report, including the Cash Flow Projections, and for the Court to instruct
the Receiver to conduct VPL operations going forward in accordance therewith
[Doc. 467-1]. On August 29, 2020, the Court entered its Order approving the
August 18, 2020 Report including the VPL Cash Flow Projections, and instructed
the Receiver to conduct VPL Operations going forward in accordance with the VPL
Cash Flow Projections. [Doc. 470.]
18. On October 1, 2020, the Receiver filed its VPL Operating Report.
[Doc. 503] pursuant to the Court’s September 9, 2020, Order [Doc. 486] directing
the Receiver to “provide updates on VPL’s business, operations, income/expenses,
and earnings projections”, among other things, every 60 days (“October 1, 2020
VPL Report”).
19. On October 13, 2020, the Court entered its Order Re Receiver’s Fourth
Application for Fees and Expenses granting the Receiver’s Fourth Fee Application
and authorizing payment of the Receiver’s and its counsel’s fees and expenses the
Fourth Fee Period (October 1, 2019 through June 30, 2020) (“Fourth Fee
Application). [Doc. 514.]
20. By July 16, 2020, the Receiver filed a total of six Affidavits of Non-
Compliance with the TRO and Preliminary Injunction (October 23, 2018 [Doc.
206], July 2, 2019 [Doc. 144], August 22, 2019 [Docs. 200, 201], January 29, 2020
[Doc. 273], April 30, 2020 [Doc. 331], and July 16, 2020 [Doc. 442]).
Fees, Expenses, and Activities During the Fifth Reporting Period
21. During the Fifth Reporting Period (July 1, 2020 through October 31,
2020), the fees and costs of the Receiver, the Receiver’s deputies, and staff totaled
$160,032.79, consisting of $156,166.20 in fees and $3,866.59 in costs. The legal
fees and costs of the Receiver’s counsel, Frandzel Robins Bloom & Csato, L.C.
(“FRBC”), which the Receiver hired pursuant to the authority given to the Receiver
in the Court’s Temporary Restraining Order at § XVI.G., and the Preliminary
Injunction at § XVI.G., totaled 348,969.76, consisting of $344,648.50 in fees and
Case 5:18-cv-02104-DMG-PLA Document 537-1 Filed 01/08/21 Page 5 of 403 Page ID#:30547
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4062768.1 | 078410-0061 6 Case No. 5:18-cv-02104-SJO-PLA
DECLARATIONS OF BRICK KANE AND MICHAEL GERARD FLETCHER IN SUPPORT OF APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES, ETC.
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$4,321.26 in costs. Accordingly, the total of receivership fees and expenses
incurred during the Fifth Reporting Period which the Receiver seeks an order
authorizing payment is $509,002.55.
22. The Receiver’s fees and costs for which approval is requested are
identified in the summary which the Receiver’s office has prepared and titled as
“Receivership Administrative Expense Report by Month and Fund Balance From
Inception (October 10, 2018) to October 31, 2020,” a true and correct copy of which
I attach hereto as Exhibit 1. The fees are further detailed Exhibit 2 hereto.
Specifically, Exhibit 2 is comprised of monthly billing summaries reflecting the
services rendered and time spent by REA’s members, accountants, staff, and support
staff during the Fifth Reporting Period (with the work descriptions redacted where
appropriate to preserve information protected from disclosure by the attorney-client
privilege or otherwise to protect the Receiver and the receivership estate from
inappropriate disclosures).
23. I am familiar with the methods and procedures used to create, record,
and maintain the Receiver’s billing records. The billing records attached hereto as
Exhibit 2 are prepared from computerized time records prepared contemporaneously
with the services rendered by each professional billing time to this matter. These
computerized records are prepared in the ordinary course of business by the
Receiver’s professionals who have a business duty to accurately record their time
spent and services rendered on the matters on which they perform work. The time
records are transferred into a computerized billing program which generates
monthly invoices. In my experience, the Receiver’s methods and procedures for
recording and accounting for time and services have proven to be reliable and
accurate.
24. The activities described in the First Report of Activities, in my
declarations submitted in support of the Receiver’s Second Fee Application, Third
Fee Application, and Fourth Fee Application, the Initial VPL Report, the
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4062768.1 | 078410-0061 7 Case No. 5:18-cv-02104-SJO-PLA
DECLARATIONS OF BRICK KANE AND MICHAEL GERARD FLETCHER IN SUPPORT OF APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES, ETC.
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Supplemental VPL Report, the August 31, 2020 VPL Report, and the October 1,
2020 VPL Report generally have continued during the Fifth Reporting Period in the
context of the Receiver’s efforts to identify, obtain, safeguard and preserve assets of
the receivership estate and otherwise to perform its duties and responsibilities under
the authority granted by the Temporary Restraining Order and Preliminary
Injunction, and the VPL Preliminary Injunction. Moreover, while the services
rendered and time spent by REA’s members, accountants, staff, and support staff
during the Fifth Reporting Period are summarized in the Receiver’s billing
summaries (Exhibit 2), such services included, without limitation: (a) regularly
communicating with the Receiver’s counsel on various legal and fact issues related
to the Receiver’s administration of the receivership estate, including asset
identification and recovery issues; (b) regularly communicating with the FTC’s
counsel regarding receivership assets, including asset identification and preservation
issues; (c) preparing the Receiver’s sixth affidavit of non-compliance; (d) evaluating
the Receiver’s duties and obligations under the VPL Preliminary Injunction; (e)
regularly visiting VPL’s production, including in connection with VPL’s principals,
Bobbi Bedi and Jason Cardiff working on getting the production machines
operational; (f) engaging in extensive discussions and exchange of information with
Messrs. Bedi and Cardiff, the attorneys for VPL and Messrs. Bedi and Cardiff, and
third parties, regarding VPL manufacturing issues; (g) preparing the VPL cash flow
projections and continuously working on VPL cash flow issues; (h) negotiating
salaries and job descriptions for Messrs. Bedi and Cardiff; (i) regularly participating
in discussions with the parties and their counsel regarding VPL operational issues;
(j) conducting regular meetings with VPL’s principals re VPL operational issues; (k)
monitoring of the status of the instant litigation including review of motions and
other documents filed by the parties, and working with the Receiver’s counsel in
connection therewith; (l) handling of various VPL related issues, including sales tax
issues, vendor payment requests and payments, updating cash flow projections,
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4062768.1 | 078410-0061 8 Case No. 5:18-cv-02104-SJO-PLA
DECLARATIONS OF BRICK KANE AND MICHAEL GERARD FLETCHER IN SUPPORT OF APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES, ETC.
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payroll, and working with the Receiver’s counsel re employment agreement terms
for line workers; (m) preparing the Receiver’s reports filed with the Court; (n)
working on multiple matters relating to the Cardiffs’ residence.
21. During the Fifth Reporting Period, FRBC performed certain work for
the Receiver. That work is summarized in the accompanying Declaration of
Michael Gerard Fletcher and evidenced by FRBC’s invoices to the Receiver
(Exhibit 4 thereto), which I have reviewed and approved for payment subject to the
Court granting this Application.
22. I believe that in light of the work performed during the Fifth Reporting
Period, the fees and costs of the Receiver and FRBC are reasonable and should be
approved and authorized for payment in their entirety.
23. In connection with the Application, the Receiver will comply with the
notice requirements of Local Rule 66-7(f) concerning applications for approval of a
receiver’s administrative fees and expenses by serving a copy of the Notice of
Application and Application, the supporting Memorandum of Points and
Authorities, and the declarations and all exhibits on the parties to this action, and by
serving a copy of the Notice of Application and Application and the supporting
Memorandum of Points and Authorities on known creditors who are identified on
the Proof of Service attached to the Notice of Application and Application. In
addition, the Receiver will provide an entire copy of the Application, including the
declarations, to anyone who requests a copy of the Application in writing directed to
Robb Evans & Associates LLC, 11450 Sheldon Street, Sun Valley, California
91352-1121. The Receiver also will post a copy of the entire Application and
supporting declarations on the Receiver’s website for this case at
https://www.robbevans.com/find-a-case/redwood-scientific-technologies-inc-et-al/.
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4062768.1 | 078410-0061 10 Case No. 5:18-cv-02104-SJO-PLA
DECLARATIONS OF BRICK KANE AND MICHAEL GERARD FLETCHER IN SUPPORT OF APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES, ETC.
FRA
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DECLARATION OF MICHAEL GERARD FLETCHER
I, Michael Gerard Fletcher, declare as follows:
1. I am an attorney at law duly admitted to practice before the courts of
the State of California, the federal courts of the State of California, including the
United States District Court for the Central District of California, and the Ninth
Circuit Court of Appeals, and am a shareholder of Frandzel Robins Bloom & Csato,
L.C. (“FRBC”), attorneys for the Receiver in this matter, Robb Evans & Associates
LLC.
2. I am one of the attorneys primarily responsible for the representation of
the Receiver in this case in addition to Craig A. Welin, who also is a shareholder of
FRBC.
3. During the period of July 1, 2020 through October 31, 2020 (“Fifth
Reporting Period”), FRBC incurred $348,969.76, consisting of $344,648.50 in fees
and $4,321.26 in costs.
4. I attach hereto as Exhibit 3 a table that summarizes the hours worked
by each attorney and paralegal during the Fifth Reporting Period, and their
respective hourly billing rates. This table also shows the percentage of the total fees
incurred by each timekeeper. As the table indicates, the work I performed during
the Fourth Reporting period accounts for nearly 56% of all of the fees.
5. I attach hereto as Exhibit 4 the billing records for FRBC reflecting the
services rendered, time spent and costs incurred by FRBC pertaining to this matter
during the Fifth Reporting Period, with the work descriptions redacted where
appropriate to preserve information protected from disclosure by the attorney-client
privilege and/or attorney work product doctrine or otherwise to protect the Receiver
and the receivership estate from inappropriate disclosures (and FRBC and I
otherwise preserve the attorney-client privilege regarding our communications with
the Receiver as well as documents and information protected from disclosure under
the attorney work product doctrine). These billing summaries are organized in the
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4062768.1 | 078410-0061 11 Case No. 5:18-cv-02104-SJO-PLA
DECLARATIONS OF BRICK KANE AND MICHAEL GERARD FLETCHER IN SUPPORT OF APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES, ETC.
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0
following manner: (a) by the following ABA Uniform Task-Based Management
System Bankruptcy Code Tasks (which are most applicable to billings conducted in
a federal receivership matter) – e.g., Case Administration, Asset Analysis and
Recovery, Meetings of and Communications with Creditors, Litigation, Asset
Analysis and Recovery, and Asset Disposition; and (b) by each attorney and
paralegal under each of the referenced task codes. In addition, at the end of all
timekeeper entries under each task code is a table that includes the hours worked by
each attorney and paralegal.
6. I am familiar with the methods and procedures used to create, record
and maintain billing records for FRBC’s clients. The billing records attached hereto
as Exhibit 4 are prepared from computerized time records prepared
contemporaneously with the services rendered by each attorney and paralegal billing
time to this matter. These computerized records are prepared in the ordinary course
of business by the attorneys and paralegals employed by FRBC who have a business
duty to accurately record their time spent and services rendered on the matters on
which they perform work. The time records are transferred into a computerized
billing program which generates monthly invoices under the supervision of the
firm’s accounting department. Based upon my experience with FRBC, I believe the
firm’s methods and procedures for recording and accounting for time and services
for its clients is reliable and accurate.
7. While the legal services rendered by FRBC during the Fifth Reporting
Period, either at the direction of the Receiver or responsible attorneys with this firm,
are contained in the specific work entries in Exhibit 4, such services included,
without limitation: (a) regularly communicating with and advising the Receiver on
various legal issues related to the Receiver’s administration of the receivership
estate; (b) assisting the Receiver with legal issues as needed; (c) regularly
communicating with the FTC’s counsel and the Cardiffs’ counsel related to various
receivership administration issues; (d) continuing conducting initial legal work
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4062768.1 | 078410-0061 12 Case No. 5:18-cv-02104-SJO-PLA
DECLARATIONS OF BRICK KANE AND MICHAEL GERARD FLETCHER IN SUPPORT OF APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES, ETC.
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VA
RD, N
INE
TE
EN
TH
FLO
OR
LOS
AN
GE
LES,
CA
LIFO
RN
IA 9
00
17-2
427
(323
) 8
52-1
00
0
related to the Court appointing the Receiver as temporary receiver of VPL,
including legal review of VPL’s operations, pursuant to terms of the Court’s
temporary restraining order issued June 24, 2020; (e) attending the July 7, 2020
hearing on the OSC why the Court should enter an order for a preliminary injunction
re VPL; (f) reviewing the VPL Preliminary Injunction; (g) analyzing Jason Cardiff’s
and VPL’s ex parte application (and supporting declarations) to remove the
Receiver or to direct the receiver to continue VPL’s operations, etc., preparing the
Receiver’s opposition and supporting declaration, reviewing the FTC’s opposition
and supporting declarations, reviewing the applicants’ reply, and reviewing the
order denying the application; (h) preparing the Receiver’s sixth affidavit of non-
compliance; (i) reviewing documents and evidence filed by the parties regarding the
FTC’s motion for contempt sanctions against the Cardiffs, attending the July 24,
2020 hearing, and reviewing the Court’s order provisionally granting the FTC’s
motion in part; (j) analyzing third-party Inter/Media Time Buying Corporation’s
motion to compel the Receiver to cure mortgage arrearages for the Cardiffs’
residence and supporting declarations, preparing the Receiver’s opposition,
including supporting declarations and evidence, reviewing the oppositions of the
FTC, the Cardiffs, and third-party True Pharmastrip to the motion, reviewing the
reply, and reviewing the order denying the motion; (k) reviewing VPL’s application
for stay pending appeal, preparing the declarations in support of the Receiver’s
opposition to the application, reviewing the FTC’s opposition and supporting
evidence as well as applicants’ reply and Court’s order denying the application; (l)
assisting the Receiver on legal and other issues related to the VPL operational
issues, including assisting in extensive negotiations on operating expenses and cash
flow issues, including salaries for Bobbi Bedi and Jason Cardiff, negotiating the
joint stipulation as to VPL operations and preparing the ex parte application to file
same under seal, including preparing the Declaration of Brick Kane, and otherwise
assisting the Receiver on multiple matters needed to set up the operation of VPL to
Case 5:18-cv-02104-DMG-PLA Document 537-1 Filed 01/08/21 Page 12 of 403 Page ID#:30554
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4062768.1 | 078410-0061 13 Case No. 5:18-cv-02104-SJO-PLA
DECLARATIONS OF BRICK KANE AND MICHAEL GERARD FLETCHER IN SUPPORT OF APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES, ETC.
FRA
ND
ZEL
RO
BIN
S B
LOO
M &
CSA
TO, L
.C.
100
0 W
ILSH
IRE
BO
ULE
VA
RD, N
INE
TE
EN
TH
FLO
OR
LOS
AN
GE
LES,
CA
LIFO
RN
IA 9
00
17-2
427
(323
) 8
52-1
00
0
operate profitably and legally in compliance with the Court’s August 29, 2020 Order
instructing the Receiver to conduct VPL operations going forward in accordance
with the VPL Cash Flow Projections; (m) preparing VPL employee contracts; (n)
preparing and issuing subpoenas to VPL, Bobbi Bedi and related third-parties in
connection with the Receiver’s efforts to identify, obtain, safeguard and preserve
assets of the receivership estate, reviewing responses and objections to the
subpoenas, and conferring with counsel re attempts to informally resolve discovery
dispute; (o) preparing the Receiver’s Fourth Fee Application, including analyzing
Defendants’ opposition and third-party Inter/Media’s opposition, preparing the
Receiver’s reply memorandum, and reviewing the Court’s order granting
application; (p) reviewing the various motions filed by the parties (e.g., cross-
summary judgment motions) and resulting orders issued by the Court as they relate
to the administration of the receivership estate, including communicating with the
Receiver about the motions and orders; (q) assisting the Receiver on legal issues in
connection with its report on VPL operations filed on October 1, 2020, including
analysis of Defendants response; (r) analyzing the Cardiffs’ Motion for Jason
Cardiff’s Salary and Living Expenses and supporting declarations, reviewing the
FTC’s opposition and supporting evidence, and preparation the Receiver’s
opposition and supporting declarations, (s) assisting the Receiver on issues related to
the Receiver’s plan to discontinue efforts to sell the Cardiffs’ residence.
8. I believe that in light of the work FRBC performed during the Fifth
Reporting Period, FRBC’s fees and costs are reasonable and should be approved and
authorized for payment in their entirety.
9. It is FRBC’s understanding that in light of the Court’s requirement
under the Temporary Restraining Order and Preliminary Injunction that the Receiver
shall file with the Court and serve on the parties periodic requests for payment of the
Receiver’s and its professionals’ reasonable compensation, that the Receiver was
not required to comply with L.R. 7-3 before bringing the instant Application.
Case 5:18-cv-02104-DMG-PLA Document 537-1 Filed 01/08/21 Page 13 of 403 Page ID#:30555
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4062768.1 | 078410-0061 14 Case No. 5:18-cv-02104-SJO-PLA
DECLARATIONS OF BRICK KANE AND MICHAEL GERARD FLETCHER IN SUPPORT OF APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES, ETC.
FRA
ND
ZEL
RO
BIN
S B
LOO
M &
CSA
TO, L
.C.
100
0 W
ILSH
IRE
BO
ULE
VA
RD, N
INE
TE
EN
TH
FLO
OR
LOS
AN
GE
LES,
CA
LIFO
RN
IA 9
00
17-2
427
(323
) 8
52-1
00
0
Further, it is our understanding that L.R. 7-3 does not apply to the Application in the
first instance since the Receiver represents the Court’s agent, and there is no
“opposing counsel” as that term is used in L.R. 7-3. Nonetheless, on December 9,
2020, my partner, Hal D. Goldflam, communicated in writing with counsel of record
for Plaintiff Federal Trade Commission, Defendant Danielle Cardiz, and Defendants
Jason Cardiff and Eunjung Cardiff regarding the Receiver’s intent to bring the
instant Application, and that the Receiver would file it after December 16, 2020.
Mr. Goldflam also provided all counsel with (a) a copy of the “Receivership
Administrative Expense Report by Month and Fund Balance From Inception
(October 10, 2018) to October 31, 2020” and (b) copies of the Receiver’s and
FRBC’s respective redacted invoices for the Fifth Reporting Period. I attach hereto
collectively as Exhibit 5 true and correct copies of the December 9, 2020 written
communications, excluding copies of the invoices and report.
10. On December 14, 2020, Stephen Cochell, counsel for the Cardiffs and
VPL Medical, Inc., called me asking the Receiver to delay filing the Fifth Fee
Application until after the end of December, 2020, because he needed additional
time to review the Receiver’s and FRBC’s invoices for the Fifth Reporting Period.
He memorialized his request in an e-mail to me and Mr. Goldflam, and on
December 21, 2020, Mr. Goldflam confirmed in an e-mail that the Receiver would
not file the Fifth Fee Application until January 7, 2020 at the earliest. I attach hereto
as Exhibit 6 a true and correct copy of these e-mails, except I have caused the
amount of the weekly reserve in the stipulated VPL Cash Flow Projection for the
Receiver’s fees and costs, including the Receiver’s counsel, to be redacted since the
Cash Flow Projection was filed under seal.
Case 5:18-cv-02104-DMG-PLA Document 537-1 Filed 01/08/21 Page 14 of 403 Page ID#:30556
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4062768.1 | 078410-0061 15 Case No. 5:18-cv-02104-SJO-PLA
DECLARATIONS OF BRICK KANE AND MICHAEL GERARD FLETCHER IN SUPPORT OF APPLICATION FOR ORDER APPROVING AND AUTHORIZING PAYMENT OF RECEIVER’S AND RECEIVER’S COUNSEL’S FEES, ETC.
FRA
ND
ZEL
RO
BIN
S B
LOO
M &
CSA
TO, L
.C.
100
0 W
ILSH
IRE
BO
ULE
VA
RD, N
INE
TE
EN
TH
FLO
OR
LOS
AN
GE
LES,
CA
LIFO
RN
IA 9
00
17-2
427
(323
) 8
52-1
00
0
11. Despite Mr. Cochell’s request that the Receiver delay filing the Fifth
Fee Application, as of January 7, 2021, he never notified us whether VPL and/or the
Cardiffs have any intention to oppose the Fifth Fee Application. In addition, neither
the FTC nor Ms. Cardiz has notified us that it or she intends to oppose the Fifth Fee
Application.
I declare under penalty of perjury under the laws of the United States of
America that the foregoing is true and correct and that this declaration was executed
on January 8, 2021, at Los Angeles County, California.
/s/ Michael Gerard Fletcher ___________
MICHAEL GERARD FLETCHER
Case 5:18-cv-02104-DMG-PLA Document 537-1 Filed 01/08/21 Page 15 of 403 Page ID#:30557
EXHIBIT 1 19
Case 5:18-cv-02104-DMG-PLA Document 537-1 Filed 01/08/21 Page 16 of 403 Page ID#:30558
Rob
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van
s &
Ass
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LL
C R
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dJu
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0.00
0.00
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38.8
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Inte
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LC
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este
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ank
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otal
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68,4
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Pag
e 1
of 7
20
Case 5:18-cv-02104-DMG-PLA Document 537-1 Filed 01/08/21 Page 17 of 403 Page ID#:30559
Rob
b E
van
s &
Ass
ocia
tes,
LL
C R
ecei
ver
of R
edw
ood
Sci
enti
fic
Tec
hn
olog
ies,
In
c. e
t al
. R
ecei
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Ad
min
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ativ
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xpen
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onth
Fro
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4,67
7.76
0.00
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7.76
Cas
h f
rom
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end
ant
6,71
5.00
0.00
0.00
0.00
0.00
0.00
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5.00
Pet
ty C
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from
au
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n24
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0.00
0.00
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0.00
0.00
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9W
orke
r C
omp
Pre
miu
m R
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4,20
6.25
0.00
0.00
0.00
0.00
0.00
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6.25
Tot
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Def
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ant
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3,30
7,44
1.59
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3,68
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0.33
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L P
ayro
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eld
0.00
0.00
0.00
18,8
79.0
018
,270
.00
37,1
49.0
037
,149
.00
Ass
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r Ja
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es P
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5,98
4.80
0.00
0.00
0.00
0.00
0.00
1,20
5,98
4.80
Inte
rest
In
com
e56
3.61
31.8
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39.1
736
.03
147.
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0.93
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un
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Col
lect
ed4,
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990.
0037
0,68
0.54
7,04
0.32
18,9
18.1
718
,306
.03
414,
945.
064,
928,
935.
06
Pag
e 2
of 7
21
Case 5:18-cv-02104-DMG-PLA Document 537-1 Filed 01/08/21 Page 18 of 403 Page ID#:30560
Rob
b E
van
s &
Ass
ocia
tes,
LL
C R
ecei
ver
of R
edw
ood
Sci
enti
fic
Tec
hn
olog
ies,
In
c. e
t al
. R
ecei
vers
hip
Ad
min
istr
ativ
e E
xpen
se R
epor
t b
y M
onth
Fro
m I
nce
pti
on (
Oct
ober
10,
201
8) t
o O
ctob
er 3
1, 2
020
Pre
viou
sly
Rep
orte
d a
nd
A
pp
rove
dJu
l 31,
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Au
g 31
, 20
Sep
30,
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20~
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g0.
0046
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905.
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001,
370.
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370.
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Cle
anin
gJa
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l Sol
uti
ons
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ices
0.00
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1,12
0.00
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1,12
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est
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In
c.0.
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5.00
495.
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5.00
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ing
0.00
0.00
1,12
0.00
0.00
495.
001,
615.
001,
615.
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Eq
uip
men
tE
DM
In
t'l L
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tics
, In
c.39
,474
.89
0.00
0.00
0.00
0.00
0.00
39,4
74.8
9E
verw
an I
nt'
l Cor
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45,5
54.9
09,
121.
000.
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121.
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in I
nd
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ries
, In
c.0.
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0.00
0.00
0.00
26,0
50.0
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.00
Par
ts &
Mat
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lT
aizh
ou B
elp
ing
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e T
ool C
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000.
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664.
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664.
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arts
& M
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000.
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664.
006,
664.
00
Tot
al E
qu
ipm
ent
85,0
29.7
941
,835
.00
0.00
0.00
0.00
41,8
35.0
012
6,86
4.79
Inte
rnet
Ser
vice
Fro
nti
er0.
000.
0026
1.39
91.6
791
.67
444.
7344
4.73
Tot
al I
nte
rnet
Ser
vice
0.00
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261.
3991
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91.6
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73
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ran
ceW
orke
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omp
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sura
nce
0.00
0.00
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281.
1367
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1595
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un
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nce
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du
ct L
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icy
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mp
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ent
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ctic
es L
iab
ility
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0.00
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5T
otal
Bra
un
wal
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sura
nce
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ncy
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011
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al I
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ran
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,362
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31.8
746
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0
Pag
e 3
of 7
22
Case 5:18-cv-02104-DMG-PLA Document 537-1 Filed 01/08/21 Page 19 of 403 Page ID#:30561
Rob
b E
van
s &
Ass
ocia
tes,
LL
C R
ecei
ver
of R
edw
ood
Sci
enti
fic
Tec
hn
olog
ies,
In
c. e
t al
. R
ecei
vers
hip
Ad
min
istr
ativ
e E
xpen
se R
epor
t b
y M
onth
Fro
m I
nce
pti
on (
Oct
ober
10,
201
8) t
o O
ctob
er 3
1, 2
020
Pre
viou
sly
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nd
A
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rove
dJu
l 31,
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2,01
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20,6
66.6
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,000
.00
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66.6
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.00
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ax V
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45,5
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890
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2
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roll
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cess
ing
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tsA
DP
0.00
0.00
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62.9
615
5.92
218.
8821
8.88
Tot
al P
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ll P
roce
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62.9
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t Det
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c0.
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air
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pre
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otal
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1,83
4.97
Pag
e 4
of 7
23
Case 5:18-cv-02104-DMG-PLA Document 537-1 Filed 01/08/21 Page 20 of 403 Page ID#:30562
Rob
b E
van
s &
Ass
ocia
tes,
LL
C R
ecei
ver
of R
edw
ood
Sci
enti
fic
Tec
hn
olog
ies,
In
c. e
t al
. R
ecei
vers
hip
Ad
min
istr
ativ
e E
xpen
se R
epor
t b
y M
onth
Fro
m I
nce
pti
on (
Oct
ober
10,
201
8) t
o O
ctob
er 3
1, 2
020
Pre
viou
sly
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orte
d a
nd
A
pp
rove
dJu
l 31,
20
Au
g 31
, 20
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30,
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31,
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83
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stom
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tyD
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0.00
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1,13
2.83
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kala
0.00
0.00
0.00
40,4
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00.
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.00
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ngh
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tom
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n I
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0.00
23,6
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00.
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.00
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0Sm
ith
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e Se
rvic
es L
LC
0.00
0.00
0.00
0.00
3,65
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3,65
5.00
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0.00
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0.00
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985
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h W
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ng
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hin
ery
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hn
0.00
0.00
0.00
3,78
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al S
et U
p C
osts
0.00
158,
849.
190.
0046
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.83
19,6
55.0
022
4,85
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224,
859.
02
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pin
gU
PS
0.00
0.00
0.00
0.00
125.
7012
5.70
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70T
otal
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0.00
0.00
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7012
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nd
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nia
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0.00
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1,66
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781.
6775
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otal
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85,0
29.7
921
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746
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n F
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osts
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215.
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11,8
91.1
3
Pag
e 5
of 7
24
Case 5:18-cv-02104-DMG-PLA Document 537-1 Filed 01/08/21 Page 21 of 403 Page ID#:30563
Rob
b E
van
s &
Ass
ocia
tes,
LL
C R
ecei
ver
of R
edw
ood
Sci
enti
fic
Tec
hn
olog
ies,
In
c. e
t al
. R
ecei
vers
hip
Ad
min
istr
ativ
e E
xpen
se R
epor
t b
y M
onth
Fro
m I
nce
pti
on (
Oct
ober
10,
201
8) t
o O
ctob
er 3
1, 2
020
Pre
viou
sly
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orte
d a
nd
A
pp
rove
dJu
l 31,
20
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g 31
, 20
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30,
20
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31,
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254.
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ayro
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ses
1,94
6.63
0.00
0.00
0.00
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1,94
6.63
Stat
es T
axes
6,58
9.00
0.00
0.00
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Rec
eive
r's
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s &
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ts
Rec
eive
r F
ees
Rec
eive
rB
. Kan
e43
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9,54
1.80
8,10
5.40
4,06
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2,87
2.80
24,5
89.8
068
,571
.00
S. K
rish
nan
2,73
6.00
0.00
0.00
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0.00
2,73
6.00
K. J
ohn
son
16,8
60.6
08,
344.
800.
000.
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8025
,205
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A. J
en76
,095
.00
21,2
04.0
013
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.20
14,9
79.6
010
,431
.00
60,3
28.8
013
6,42
3.80
Tot
al R
ecei
ver
139,
672.
8039
,090
.60
21,8
19.6
019
,049
.40
13,3
03.8
093
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.40
232,
936.
20
Sen
ior
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fB
. Ow
ings
3,01
5.00
0.00
0.00
0.00
0.00
0.00
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5.00
C. C
alla
han
34,5
15.0
078
7.50
3,10
5.00
832.
5056
2.50
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7.50
39,8
02.5
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. Jen
18,5
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560
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50.
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552.
654,
703.
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26,9
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52,
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2529
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en8,
707.
502,
605.
502,
065.
5010
,773
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18,8
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034
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43,0
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. DeC
ius
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95.8
099
6.30
376.
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251.
451,
154.
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778.
6516
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in6,
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0056
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3,59
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1.90
12,5
55.0
019
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Tot
al S
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r St
aff
110,
896.
206,
710.
855,
694.
3016
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34,0
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062
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173,
799.
00
Sup
por
t St
aff
6,58
3.20
0.00
0.00
0.00
0.00
0.00
6,58
3.20
Tot
al R
ecei
ver
Fee
s25
7,15
2.20
45,8
01.4
527
,513
.90
35,5
02.7
547
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.10
156,
166.
2041
3,31
8.40
Pag
e 6
of 7
25
Case 5:18-cv-02104-DMG-PLA Document 537-1 Filed 01/08/21 Page 22 of 403 Page ID#:30564
Rob
b E
van
s &
Ass
ocia
tes,
LL
C R
ecei
ver
of R
edw
ood
Sci
enti
fic
Tec
hn
olog
ies,
In
c. e
t al
. R
ecei
vers
hip
Ad
min
istr
ativ
e E
xpen
se R
epor
t b
y M
onth
Fro
m I
nce
pti
on (
Oct
ober
10,
201
8) t
o O
ctob
er 3
1, 2
020
Pre
viou
sly
Rep
orte
d a
nd
A
pp
rove
dJu
l 31,
20
Au
g 31
, 20
Sep
30,
20
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31,
20
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0.00
0.00
0.00
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osts
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562.
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ksm
ith
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ts1,
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574.
971,
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osts
2,64
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kin
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00.
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tage
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ery
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ts1,
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ent
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0.00
400.
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Ret
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p F
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10,5
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00.
000.
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000.
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up
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2518
1.88
110.
9011
9.77
48.8
046
1.35
2,66
1.60
Tot
al R
ecei
ver
Cos
ts29
,193
.59
581.
881,
104.
491,
087.
621,
092.
603,
866.
5933
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.18
Leg
al F
ees
& C
osts
Fra
nd
zel R
obin
s B
loom
& C
sato
Leg
al F
ees
568,
561.
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6,95
9.00
114,
179.
0080
,226
.50
43,2
84.0
034
4,64
8.50
913,
209.
50L
egal
Cos
ts19
,543
.42
63.2
072
0.28
742.
242,
795.
544,
321.
2623
,864
.68
Tot
al F
ran
dze
l Rob
ins
Blo
om &
Csa
to58
8,10
4.42
107,
022.
2011
4,89
9.28
80,9
68.7
446
,079
.54
348,
969.
7693
7,07
4.18
Tot
al L
egal
Fee
s &
Cos
ts58
8,10
4.42
107,
022.
2011
4,89
9.28
80,9
68.7
446
,079
.54
348,
969.
7693
7,07
4.18
Tot
al R
ecei
ver'
s F
ees
& C
osts
874,
450.
2115
3,40
5.53
143,
517.
6711
7,55
9.11
94,5
20.2
450
9,00
2.55
1,38
3,45
2.76
Tot
al E
xpen
ses
977,
346.
4638
0,22
9.95
160,
315.
8025
9,23
7.49
186,
504.
7198
6,28
7.95
1,96
3,63
4.41
Fu
nd
Bal
ance
3,53
6,64
3.54
2,96
5,30
0.65
Pag
e 7
of 7
26
Case 5:18-cv-02104-DMG-PLA Document 537-1 Filed 01/08/21 Page 23 of 403 Page ID#:30565