Case 4:13-cv RAS-DDB Document 139 Filed 11/11/14 Page 1 of 10 PageID #: 2006

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1 Case 4:13-cv RAS-DDB Document 139 Filed 11/11/14 Page 1 of 10 PageID #: 2006 IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS SHERMAN DIVISION U.S. COMMODITY FUTURES TRADING COMMISSION, v. Plaintiff, RFF GP, LLC, KGW CAPITAL MANAGEMENT and KEVIN G. WHITE, Defendants, REVELATION FOREX FUND, LP, MERIDIAN PROPANE LP, and W CORPORATE REAL ESTATE, LP d/b/a KGW REAL ESTATE, Relief Defendants. CIVIL ACTION NO. 4:13-CV-0382 PETITION NO. 20 RECEIVER S FIFTH QUARTERLY FEE PETITION Pursuant to the Statutory Restraining Order ( SRO ) entered by the Court on July 10, 2013, the Receiver is required to submit periodic fee petitions for authorization to pay fees and expenses of the receivership. Since the Receiver is also serving as the Receiver in the parallel proceeding brought by the Securities and Exchange Commission, Civil Action No. 4:13-CV (the SEC Case ), this Fifth Quarterly Fee Petition is also being filed in the SEC case. Moreover, the Order Appointing Receiver entered in the SEC Case allows the Receiver to seek payment of receivership fees and expenses on only a quarterly basis, with a twenty percent (20%) hold back required so that payment of such holdback can be considered by the Court at the conclusion of the receivership. Accordingly, by this Petition the Receiver seeks approval of 80% of the fees and expenses of the receivership accrued in the last quarter. RECEIVER S FIFTH QUARTERLY FEE PETITION PAGE 1

2 Case 4:13-cv RAS-DDB Document 139 Filed 11/11/14 Page 2 of 10 PageID #: 2007 A. Receiver Fees. I. FEES AND EXPENSES INCURRED By this Fifth Quarterly Fee Petition, the Receiver requests authority to pay $5,340 in Receiver fees, which is 80% of the total Receiver fees of $6,675 incurred from July 26, 2014 through October 25, During this period, the Receiver provided hours of service at his discounted hourly rate of $ The valuable services provided by the Receiver during this time period are set forth in the invoices attached hereto as Exhibit A. B. Receiver s Counsel Fees and Expenses. The law firm of Scheef & Stone, L.L.P. serves as primary counsel for the Receiver. Scheef & Stone submits monthly invoices to the Receiver for the services rendered. By this Petition and pursuant to the Receivership Order and the SRO, the Receiver requests authority to pay Scheef & Stone, L.L.P. $2,049 in fees, which is 80% of the total fees of $2, billed by Scheef & Stone, L.L.P. from July 26, 2014 through October 25, The attorneys and paralegals of Scheef & Stone who provided services to the Receiver during this period, their billable rates, and the hours billed are summarized as follows: Attorney/Paralegal Discounted Total Billed Billed Billable Rate Charlene Koonce 1.60 $300 $480 (Partner) James Stafford 0.50 $170 $85 (Associate) R. Walker Fults 7.75 $195 $1, (Associate) Will Hester 4.85 $100 $485 (Paralegal) TOTALS: $174* (blended rate) $2, This Fee Petition does not include fees billed by the Receiver or his law firm Scheef & Stone, LLP for filing and negotiating claims against certain third parties, which are subject to a contingent fee pursuant to the Receiver s liquidation plan approved by the Court. 2 Mr. Crawford s regular billing rate for non-receivership matters is $390 per hour. RECEIVER S FIFTH QUARTERLY FEE PETITION PAGE 2

3 Case 4:13-cv RAS-DDB Document 139 Filed 11/11/14 Page 3 of 10 PageID #: 2008 Scheef & Stone provided valuable services to the Receiver during the period from July 26, 2014 through October 25, 2014, which are set forth on the invoices attached hereto as Exhibit B. In addition, to assist the receivership estate, Scheef & Stone incurred expenses in the amount of $1, for the period from July 26, 2014 through October 25, 2014 as detailed on the invoices attached hereto as Exhibit C. The most significant third party expenses were for mailing the distribution checks to the approved claimants. Pursuant to the Statutory Restraining Order, the Receiver seeks authority to reimburse Scheef & Stone, L.L.P. for 80% of the $1, in expenses it incurred on behalf of the receivership, which equals $1, C. Receiver s Accountant Fees and Expenses. The accounting firm of The Alt Key, PLLC serves as the accountant for the Receiver. The Alt Key, PLLC submitted its invoice attached hereto as Exhibit D for the accounting services rendered for the period of August 1, 2014 through October 31, As set forth in the invoice, for this period the accounting firm of The Alt Key, PLLC charged $ in fees as follows: Accountant/Clerk Discounted Total Billed Billed Billable Rate Steve Parker 2.90 $220 $ Leisa Thompson 2.25 $120 $ TOTALS: 5.15 $176* (blended rate) $ Pursuant to the Receivership Order and the SRO, the Receiver requests authority to pay 80% of the total fees and expenses of $ charged by The Alt Key, PLLC, which is $ The accounting firm of The Alt Key, PLLC provided valuable accounting services to the Receiver, which services are described on the invoice attached hereto as Exhibit D. In particular, RECEIVER S FIFTH QUARTERLY FEE PETITION PAGE 3

4 Case 4:13-cv RAS-DDB Document 139 Filed 11/11/14 Page 4 of 10 PageID #: 2009 most of the accounting fees were incurred in assisting the Receiver in tracing the disposition of investor funds and preparing corrected K-1 s to issue to the investors. Based on the foregoing, the Receiver believes the services rendered to the receivership by the Receiver, the Receiver s law firm Scheef & Stone, and the Receiver s accountants The Alt Key, PLLC were valuable and that the rates charged to the receivership were fair and reasonable. Moreover, the Receiver s law firm incurred expenses for the receivership that were reasonable and necessary. The attorneys for Plaintiffs United States Commodity Futures Trading Commission and Securities and Exchange Commission and the Defendant Kevin White each previously reviewed the invoices of the Receiver, Scheef & Stone, and The Alt Key, PLLC and are unopposed to the invoices being paid. II. LEGAL DISCUSSION OF GUIDELINES FOR PAYMENT OF RECEIVERSHIP FEES AND EXPENSES In reviewing the total fees of the Receiver, the Receiver s counsel, and the Receiver s accountants incurred, divided by the hours worked, the lodestar average rate per hour is $ In accordance with the law governing calculation of the lodestar rate, the lodestar rate for which approval is sought in this case is reasonable and does not merit any adjustment. The lodestar method of evaluating the reasonableness of fees, which has been expressly approved by the Supreme Court, requires the court to look into the prevailing market rates in the relevant community and compare the prevalent rates with the average rate charged in the matter in issue. Perdue v. Kenny, 130 S.Ct. 1662, 1673 (2010). The lodestar method also includes most of the relevant factors constituting a reasonable fee, but does not rely expressly require the subjective Johnson factor analysis. 3 Id. 3 These Johnson factors are nevertheless addressed herein. See infra. RECEIVER S FIFTH QUARTERLY FEE PETITION PAGE 4

5 Case 4:13-cv RAS-DDB Document 139 Filed 11/11/14 Page 5 of 10 PageID #: 2010 The Court calculates the lodestar by determining the number of hours reasonably expended by an appropriate hourly rate in the community. 4 Louisiana Power & Light Co. v. Kellstrom, 50 F.3d 319, 324 (5 th Cir. 1995). In evaluating whether requested fees are reasonable, the court may use its own expertise and judgment to independently assess the value of an attorney s services. Davis v. Bd. Of Sch. Comm rs of Mobile County, 526 F.2d 865, 868 (5 th Cir. 1976). The Court also looks for evidence of billing judgment, or the attorney or receiver s decision to discount or write off time that was unproductive or duplicative. Saizan v. Delta Concrete Prods. Co., 448 F.3d 795, 799 (5 th Cir. 2006). The amount of the award, and any reduction of the requested fee award, is within the trial court s discretion. See, e.g., United States Football league v. National Football League, 887 F.2d 408, 415 (2d Cir. 1989). Additional considerations are also relevant in the context of an equity receivership. First, the agreement or opposition of the Commission to the fee application is entitled to great weight. See, e.g., SEC v. Fifth Ave. Coach Lines, Inc., 364 F.Supp. 1220, 1222 (S.D.N.Y. 1973). Further, given the public service nature of equity receiverships, courts also consider the amounts recovered or other results obtained by the receiver in determining what constitutes a reasonable fee. SEC v. Goren, 272 F.Supp.2d 202, 207 (E.D.N.Y. 003). Additionally, examination of reasonableness and necessity should take into account all circumstances surrounding the receivership. See, SEC v. W.L. Moody & Co., Bankers (Unincorporated), 374 F. Supp. 465, 480 (S.D. Tex. 1974), aff d, SEC v. W.L. Moody & Co., 519 F.2d 1087 (5th Cir. 1975). The complexity and difficulty associated with the receivership are highly relevant factors in determining the reasonableness of professional fees. See, SEC v. Fifth Ave. Coach Lines, Inc., 364 F. Supp. 1220, 1222 (S.D.N.Y. 1973) (awarding interim fees and expenses to law firm for role in receivership and noting that it involved wide variety of complex legal matters requiring 4 The movant bears the burden of proving that the compensation requested is reasonable, and satisfaction of this burden requires that the movant present records from which the court may determine the nature of the work done, the need for it, and the amount of time reasonably required. Louisiana Power, 50 F.3d at 324. RECEIVER S FIFTH QUARTERLY FEE PETITION PAGE 5

6 Case 4:13-cv RAS-DDB Document 139 Filed 11/11/14 Page 6 of 10 PageID #: 2011 the time, competence, and diverse resources of a law firm of high caliber). Further, Courts examine the credentials, experience, reputation, and other professional qualities required to carry out a court s orders when assessing the reasonableness of the rates charged for services to a receivership. See, W.L. Moody & Co., 374 F. Supp. at 481 (holding that a court should give considerable weight to a receiver s abilities, as required by the tasks of the receivership ); see also, Fifth Ave. Coach Lines, Inc., 364 F. Supp. at 1222 (fees awarded in full because they were based on law firm s usual hourly rate and supported by meticulous records). The Receiver submitted detailed descriptions of the matters on which services were expended, the number of hours billed by each professional, the rates charged by each, and the lodestar calculation for the fees submitted in this petition. Further, the Receiver s invoices and this petition demonstrate that billing judgment was exercised in the reduction of the standard rates charged by the Receiver and his firm 5, in staffing the work performed efficiently, and in writing off time where necessary. Finally, the Receiver requests that the Court judicially notice the much higher lodestar and hourly rates approved in other receiverships in Texas. 6 The request for approval of the disbursements is also consistent with the Johnson factors set forth by the Fifth Circuit Court of Appeals in Johnson v. Georgia Highway Express, Inc., 488 F.2d 714 (5 th Cir. 1974). Based on the lodestar calculation and the Johnson factors discussed above, the Receiver believes that the fees submitted are appropriate, just, and reasonable. 5 The Receiver s standard hourly rate is $390, but it is discounted for receivership work to $300. Likewise, the partners at Scheef & Stone, LLP and the personnel of The Alt Key PLLC discount their standard hourly rates for receivership work. 6 See, for example, Securities and Exchange Commission v. Correll; Case No. 4:05-CV-472, in the United States District Court for the Eastern District of Texas, Sherman Division (approving Receiver fees of $400 per hour and lead counsel fees of $585 per hour); SEC v. Amerifirst Funding, Inc., et al., Cause No. 3:07-CV-01188, Docket No. 117, in the United States District Court for the Northern District of Texas; Receiver s counsel s rates, discounted by 10 20% is $420 per hour; SEC v. W Financial Group, LLC, et al., Cause No. 3:08-CV-0499-N, Docket No. 65, in the United States District Court for the Northern District of Texas; Receiver s counsel s rate is $510 per hour, and $165 per hour for a law clerk; and CFTC v. Pousa; Case No. 1:12-cv in the United States District Court for the Western District of Texas, Austin Division (approving Receiver fees in excess of $600 per hour). RECEIVER S FIFTH QUARTERLY FEE PETITION PAGE 6

7 Case 4:13-cv RAS-DDB Document 139 Filed 11/11/14 Page 7 of 10 PageID #: 2012 A. The Time and Labor Required. The Receiver respectfully directs the Court s attention to the foregoing summary schedule of unpaid fees and expenses, which identifies the total number of hours billed by the Receiver, the Receiver s attorneys and accountants (42.10 hours) from July 26, 2014 through October 25, B. The Novelty and Difficulty of the Questions. Federal equity receiverships require extensive experience in order to act swiftly and efficiently in securing assets, obtaining documents and data from computers to find additional assets, and to communicate with investors and law enforcement agencies. As set forth in the status reports filed with the Court and the detailed invoices attached hereto the Receiver and his personnel continued to implement the Receiver s liquidation and distribution plan, and responded to questions from the investors. C. The Skill Requisite to Perform the Service. The Receiver believes the services performed in this case to date required individuals possessing considerable experience in the administration of receiverships, claims processes, distribution plans, asset seizure, collection and litigation. The Receiver, Scheef & Stone, L.L.P., and The Alt Key PLLC, for which disbursement approval is sought, have considerable experience in such areas. D. The Preclusion of Other Employment Due to Acceptance of the Case. Neither the Receiver, Scheef & Stone, LLP, nor The Alt Key PLLC declined any representation solely because of their services in this case. E. The Customary Fee. The hourly rates sought herein for the Receiver and the Receiver s attorneys and accountants are substantially lower than the rates charged by other practitioners of similar experience levels in Texas. Indeed the per hour rates charged by the Receiver s counsel whose fees are included herein (ranging between $170 $300 charged for attorneys) are $100 to $200 per hour lower than the rates currently charged on other RECEIVER S FIFTH QUARTERLY FEE PETITION PAGE 7

8 Case 4:13-cv RAS-DDB Document 139 Filed 11/11/14 Page 8 of 10 PageID #: 2013 receiverships pending in Texas. 7 The lodestar rate of $ per hour also demonstrates that when appropriate the Receiver is having work performed by less expensive attorneys or legal assistants. F. Whether the Fee is Fixed or Contingent. The Receiver s fees and his counsel s fees are fixed insofar as monies exist by way of Receivership Assets from which to pay such fees, but payment of the fees and expenses is subject to approval by the Court. Moreover, a 20% holdback is required by the Receivership Order and cannot be paid until the conclusion of the receivership. G. Time Limitations Imposed by the Client or Other Circumstances. There were no unusual time constraints placed on the Receiver, the Receiver s attorneys, or accountants during the months for which compensation is sought. H. The Amount Involved and the Results Obtained. The fees for which payment is sought were for work summarized previously. The Receiver s attorneys and accountants contributed significantly to the Receiver s recovery of monies, administration of the claims process, and the first interim distribution to the investors. The receivership account currently has a balance in excess of $200,000, which monies were obtained directly through the efforts of the Receiver and the personnel he retained. I. The Experience, Reputation and Ability of the Attorneys. Scheef & Stone, L.L.P., the Receiver s primary counsel, include numerous attorneys who specialize in representation of equity receivers in federal securities or commodities enforcement cases, and have done so for more than ten years. The reputation of Scheef & Stone, L.L.P. is recognized and respected in these fields. Mr. Crawford has served as a receiver in more than 12 federal 7 See footnote 6, supra. RECEIVER S FIFTH QUARTERLY FEE PETITION PAGE 8

9 Case 4:13-cv RAS-DDB Document 139 Filed 11/11/14 Page 9 of 10 PageID #: 2014 court cases brought by either the Securities and Exchange Commission or the U.S. Commodity Futures Association, with Scheef & Stone, L.L.P. as Mr. Crawford s counsel. J. The Undesirability of the Case. The representation of the Receiver incident to this case has not been undesirable. K. The Nature and Length of the Professional Relationship with the Client. Scheef & Stone, L.L.P. has represented the Receiver in numerous prior receiverships. L. Awards in Similar Cases. The Receiver believes the fees requested in this case for his counsel are less than or equal to those which have been awarded in similar cases in federal courts in Texas. III. CONCLUSION In conclusion, in accordance with the Receivership Order and SEC billing guidelines, the Receiver represents that: (i) the fees and expenses included in this Petition were incurred in the best interests of the Receivership Estate; and, (ii) with the exception of the SEC Billing Instructions and the contingent fee agreement with Scheef & Stone, LLP approved as part of the Receiver s liquidation plan, the Receiver has not entered into any agreement, written or oral, express or implied, with any person or entity concerning the amount of compensation paid or to be paid from the Receivership Estates, or any sharing thereof. Respectfully submitted November 11, RECEIVER KELLY M. CRAWFORD /s/ Kelly M. Crawford Kelly M. Crawford, Receiver State Bar No Scheef & Stone, LLP 500 N. Akard Street, Suite 2700 Dallas, Texas Telephone: Telecopier: RECEIVER S FIFTH QUARTERLY FEE PETITION PAGE 9

10 Case 4:13-cv RAS-DDB Document 139 Filed 11/11/14 Page 10 of 10 PageID #: 2015 CERTIFICATE OF CONFERENCE The undersigned certifies that this Motion and true and correct copies of the invoices that are exhibits to this Motion were provided to Harry Wedewer, Esq. of the Plaintiff U.S. Commodity Futures Trading Commission and to Janie Frank, Esq. of the Plaintiff Securities and Exchange Commission for review on November 7, In addition, this Motion and true and correct copies of the invoices that are exhibits to this Motion were provided to Defendant Kevin White. Mr. Wedewer indicated the U.S. Commodity Futures Trading Commission is unopposed to the relief sought. Ms. Frank indicated the Securities and Exchange Commission is unopposed to the relief sought. Defendant Kevin White did not respond to a conference request and therefore his agreement is presumed. /s/ Kelly M. Crawford KELLY M. CRAWFORD CERTIFICATE OF SERVICE The undersigned hereby certifies that on November 11, 2014 I electronically filed the foregoing document with the clerk of the U.S. District Court, Eastern District of Texas, using the electronic case filing system of the court. The electronic case filing system sent a Notice of Electronic Filing to the following attorneys of record, and a copy was mailed to the individual pro se defendant: Harry E. Wedewer John Einstman U.S. Commodity Futures Trading Commission Three Lafayette Centre st Street, N.W. Washington, D.C Counsel for Plaintiff Kevin White One Waterway Avenue, #2236 The Woodlands, Texas Pro Se Defendant /s/ Kelly M. Crawford KELLY M. CRAWFORD RECEIVER S FIFTH QUARTERLY FEE PETITION PAGE 10

11 Case 4:13-cv RAS-DDB Document Filed 11/11/14 Page 1 of 5 PageID #: 2016 Scheef & Stone, L. L. P. 500 N. Akard, Suite 2700 Dallas, Texas (214) INVOICE White Receivership 08/25/2014 Account No: Invoice No: Matter Receiver 07/29/2014 KMC Obtain Orders from Court authorizing distribution; prepare letter to investors regarding second interim distribution /30/2014 KMC Issue second interim distribution checks to investors and issue corresponding letters /07/2014 KMC Prepare Fifth Status Report of the Receiver and have filed with the Court in both the SEC and the CFTC cases /08/2014 KMC Confer with counsel for CFTC, SEC, and with Defendant White regarding fee petitions, finalize same, and have filed with the Court and served /11/2014 KMC Prepare Petition to Approve High Low Agreement with Brian Hinman /15/2014 KMC Communicate with H. Wedewer regarding final judgments and serving as monitor for making restitution payments; H. Wedewer regarding Receiver's fraudulent conveyance claim against FXCM; telephone conference with H. Wedewer regarding waiting to dismiss Revelation Forex Fund, l.p. from receivership; work on petition to approve high low agreement with Brian Hinman /20/2014 KMC Communicate with W. Fults regarding Dr. Edge wanting to discuss claims against Akin Gump; communicate with accountants regarding payments to Akin Gump conference with W. Hester regarding s between White and Akin Gump /21/2014 KMC Telephone conference with H. Wedewer regarding Petition to Approve High Low Agreement with Brian Hinman; revise certificate of conference on petition; confer with Kevin White regarding petition l1 I

12 Case 4:13-cv RAS-DDB Document Filed 11/11/14 Page 2 of 5 PageID #: 2017 White Receivership Matter Receiver 08/25/2014 Account No: Invoice No: to approve High Low Agreement with Brian Hinman; have petitions to approve high low agreement filed with the Court; prepare proposed Orders approving petitions and submit to court; prepare for and have telephone conference with Dr. Edge regarding status of receivership and potential claim against Akin Gump; send to Dr. Edge draft of arbitration statement of claim; conference with C. Koonce and M. Little regarding fraudulent conveyance claim against divorce attorney for White for monies received from KGW Capital and Revelation Forex Fund; investigate same /22/2014 KMC Prepare Notice of No Objection to Petitions 15 and 16 in the SEC and CFTC cases; assemble information regarding Akin Gump to send to Dr. Edge in response to his inquiry; conference with W. Fults regarding same /25/2014 KMC Have notices of no objection filed with Court as to petition; review list of transfers to vendor to determine potential fraudulent conveyance claims; conference with C. Koonce regarding same; legal research regarding same; prepare form demand letter to recover fraudulent conveyance; review revisions made by C. Koonce and revise letter; finalize demand letters to L. Aland, P. White, and M. Samuels Jewelers to recover fraudulent transfers; investigate status of Share donation that is recoverable and communicate with C. Koonce regarding same For Current Services Rendered , Ii!Jl~-~~_p?r Kelly M. Crawford Recapitulation Hourly Re3t~ $ Total $4, Total Current Services and Expenses 4, TERMS: DUE AND PAYABLE UPON RECEIPT

13 Case 4:13-cv RAS-DDB Document Filed 11/11/14 Page 3 of 5 PageID #: 2018 Scheef & Stone, L.L.P. 500 N. Akard, Suite 2700 Dallas, Texas (214) INVOICE White Receivership 09/25/2014 Account No: Invoice No: Matter 101 Receiver 08/26/2014 KMC Work on demand letters for recovery of fraudulent conveyances; communicate with W. Fults regarding obtaining missing bank records and regarding responding to demand letter addressed to Meridian. 09/02/2014 KMC Review from charity that received monies from K. White; prepare response to charity and conference with C. Koonce regarding same; receive voice mail from attorney representing L. Aland and conference with C. Koonce regarding same. 09/04/2014 KMC Prepare Notice of No Objection to CFTC and SEC Petitions seeking approval of High Low Agreement with Brian Hinman; telephone conference with accountant for Cucalon, L.P. investor regarding K-1 s; communicate with S. Parker, accountant regarding same; conference with legal assistant regarding lap tops being and watches being only property left to liquidate and strategy for same. 09/05/2014 KMC Telephone conference with M. Little regarding notice of no objection being filed as to agreement with Bryan Hinman; review communication from accountant Steve Parker regarding call with accountant for investor and regarding tax effect of distributions exceeding loss declared. 09/06/2014 KMC Communicate with C. Koonce regarding payment terms for Share ministries to repay $5,000 in settlement of claim; prepare draft of Settlement Agreement and Mutual Release and send to C. Koonce. 09/16/2014 KMC Review receivership account to identify distribution checks that have not yet cleared the bank; prepare letter to two investors giving them deadline to deposit distribution checks; communicate with C. Koonce regarding communications with attorney for L. Aland regarding claim; execute High Low Agreement with Brian Hinman and send to M. Little

14 Case 4:13-cv RAS-DDB Document Filed 11/11/14 Page 4 of 5 PageID #: 2019 White Receivership Matter Receiver 09/25/2014 Account No: Invoice No: /22/2014 KMC Review response of L. Aland to turnover demand and construct settlement offer to be made; receive from Paul White and send to him Sworn Statement of Financial Condition. For Current Services Rendered , Iim~ke~rLE?I Kelly M. Crawford Recapitulation 5.00 Hourly Rate $ Total $1, TERMS: DUE AND PAYABLE UPON RECEIPT

15 Case 4:13-cv RAS-DDB Document Filed 11/11/14 Page 5 of 5 PageID #: 2020 Scheef & Stone, L.L.P. 500 N. Akard, Suite 2700 Dallas, Texas (214) INVOICE White Receivership 10/25/2014 Account No: Invoice No: Matter Receiver 09/29/2014 KMC Review missing bank records from Legacy Bank and send to accountant for review. 09/30/2014 KMC Communicate with W. Fults regarding responding to investor call as to status of receivership and communicate with C. Koonce regarding settlement with Share Ministry. 10/06/2014 KMC Receive signed settlement agreement and check from SHARE; prepare petition to approve settlement agreement to be filed in CFTC and SEC cases; send to SEC and CFTC for purposes of conferencing; receive sworn statement of financial condition from Paul White; prepare memo to file regarding decision not to pursue claim against P. White. 10/14/2014 KMC Send petition to approve settlement with Share Ministry to H. Wedewer for conferencing; conference with C. Koonce regarding settling with L. Aland for return of monies she received from K. White; communicate with W. Fults regarding following up with investor who has not yet deposited distribution check. 10/16/2014 KMC Communicate with K. White regarding non-opposition to Petition to Approve Settlement with SHARE; finalize petitions seeking approval of settlement; prepare proposed Orders regarding same and have petition and Order submitted to court in CFTC and SEC cases. 10/21/2014 KMC Review settlement offer from Linda Aland; conference with C. Koonce regarding same and need for financial statement as to Linda Aland, PC. For Current Services Rendered Recapitulation Timekeeper Hourly Rate Kelly M. Crawford 2.75 $ Total $

16 Case 4:13-cv RAS-DDB Document Filed 11/11/14 Page 1 of 5 PageID #: 2021 Scheef & Stone, L. L. P. 500 N. Akard, Suite 2700 Dallas, Texas (214) INVOICE White Receivership 08/25/2014 Account No: Invoice No: Matter Representation of Receiver 07/30/2014 WLH Review Order granting Motion to make second distribution. 07/31/2014 RWF Tele. conf. with Kristin Zeleznik and Dr. Fred Edge regarding disbursement checks and settlements with Sovereign Society and Tidwell & Weaver; and conf. with the Receiver regarding the same; and reveiw of Petitions and records containing information of the same. 08/01/2014 RWF Confirm that website is not accessible to computers outside the firm network; and conf. with Aladin Martinez and Chad Clinger regarding the same; and correspondence with Kelly Crawford regarding getting the website up and running again. 08/07/2014 RWF Receive investor phone call; and ask for direction from Receiver to answer; and contact representative of Equity Trust company over the phone; and correspondence to Equity Trust to follow up, and to investor with answer to her question. 08/08/2014 RWF Follow-up correspondence with Equity Trust regarding records of KGW Receivership and disposition of investor account funds which are now in Receivership. 08/13/2014 WLH Review from D Lambert requesting assistance to verify Brian Hinman's residential address; research using Denton County records to verify Hinman's address; forward results to D Lambert; review and respond to from D Lambert requesting Kevin White's contact information; forward White's information via . 08/20/2014 WLH Review from KMC regarding review of KGW s to identify s between Kevin White and Akin Gump; conference with C Clinger and A Martinez to locate and transfer KGW s to outlook; begin review of KGW s J I

17 Case 4:13-cv RAS-DDB Document Filed 11/11/14 Page 2 of 5 PageID #: 2022 White Receivership Matter Representation of Receiver 08/25/2014 Account No: Invoice No: /21/2014 WLH Complete review of KGW s to identify correspondence between Kevin White and Akin Gump; conference with A Martinez to set up files for KMC's review; process hard copy of s per KMC's request /22/2014 RWF Review deposition of Kevin White for statements regarding where he obtained prospectus used to attract investors to his fraudulent scheme; and pass documents requested by investor along; and conf. with Kelly Crawford regarding the same /25/2014 CCK Confer w/kmc re potential TUFT A claims against attorneys paid by KGW Capital for White's divorce work, etc.; brief research reclaims asserted against vendors who rec'd payment from Ponzi entity in exchange for personal services provided to individual defendant rather than paying entity; review and revise demand letter from KMC to recipients of transfers from the entities For Current Services Rendered , Tim~kee12_~_r Charlene C. Koonce R. Walker Fults Will Hester Recapitulation Hourly Rate $ Total $ Total Current Services and Expenses 1, TERMS: DUE AND PAYABLE UPON RECEIPT

18 Case 4:13-cv RAS-DDB Document Filed 11/11/14 Page 3 of 5 PageID #: 2023 Scheef & Stone, L.L.P. 500 N. Akard, Suite 2700 Dallas, Texas (214) INVOICE White Receivership 09/25/2014 Account No: Invoice No: Matter Representation of Receiver 08/26/2014 CCK Review s from KMC re various targets for recovery of fraudulent transfers; review chains re demand to Share Ministries and send another to Share Ministries re same RWF Prepare letters to Legacy Texas Bank and Citibank regarding collection of specific check images; and prepare letter to MSB regarding Meridian, asking to cease and desist all collection efforts in light of receivership. WLH Review from KMC requesting current address for Paul White and Armand St. Paul; research using Westlaw and review of defendant documents to find current address for White and St. Paul; forward results to KMC via ; review and respond to from KMC regarding recovery of fraudulent transfers. 09/02/2014 CCK exchange with representative for "After Eden Pictures" which received fraudulent transfer from White and exchange w/kmc re same 09/04/2014 WLH Review and respond to from KMC regarding the status of Meridian Propane with the Texas Secretary of State and request documents reflecting the status; research the status of Meridian Propane using the Texas SOS site and forward results and documents to KMC via . 09/05/2014 CCK Telephone conference with counsel for White's divorce attorney re UFTA claim 09/09/2014 WLH Review from KMC requesting no computer files be given to Kevin White until he reviews them. 09/11/2014 CCK exchange with rep for Share Ministries re status of settlement agreement /17/2014 WLH Review report and recommendation of U.S. Magistrate Judge

19 Case 4:13-cv RAS-DDB Document Filed 11/11/14 Page 4 of 5 PageID #: 2024 White Receivership Matter Representation of Receiver 09/25/2014 Account No: Invoice No: regarding permanent injunction; docket response deadline n/c 09/19/2014 RWF Telephone call with representative of Legacy Bank regarding incongruous check information (amount, date, check number, etc.), and review of letter to the same requesting specific check images /22/2014 CCK Review message from Aland counsel re demand for turnover of funds by Revelation for White's divorce and confer w/kmc re same RWF Telephone call with investor Glen Ramsley regaridng status of the case; and correspondence with Kelly Crawford regarding the same For Current Services Rendered Iim~ls~~!:>~r Charlene C. Koonce R. Walker Fults Will Hester Recapitulation Hourly Rate $ Total $ Total Current Services and Expenses TERMS: DUE AND PAYABLE UPON RECEIPT

20 Case 4:13-cv RAS-DDB Document Filed 11/11/14 Page 5 of 5 PageID #: 2025 Scheef & Stone, L.L.P. 500 N. Akard, Suite 2700 Dallas, Texas (214) INVOICE White Receivership 10/25/2014 Account No: Invoice No: Matter Representation of Receiver 09/29/ /01/ /02/ /15/ /22/2014 RWF Telephone call with investor Nita Fanning; and attempts to call investor Henry Clifton Brenner. RWF Telephone call with Legacy Texas Bank representative regarding check images; and correspondence with Kelly Crawford regarding the same. RWF Telephone call with Kristen Zeleznik regarding case status; and telephone call with Henry Brenner regarding the same; and correspondence with Kelly Crawford regarding call with Mr. Brenner. RWF Telephone correspondence with Henry Brenner, and follow-up with Kelly Crawford. RWF Telephone call to investor Nita Fanning regarding un-deposited check. RWF Correspondence with Kelly Crawford regarding non-deposited investor monies. JSS Phone call to investor Anita Fanning regarding the cashing of her distribution /23/2014 JSS Phone conference with investor Nita Fanning regarding her request to have her check re-issued following an error in accounting by her trust fund manager; to Receiver regarding same For Current Services Rendered Timekeeper R. Walker Fults James Stafford Recapitulation Hourly Rate $ Total $ Total Current Services and Expenses

21 Case 4:13-cv RAS-DDB Document Filed 11/11/14 Page 1 of 3 PageID #: 2026 Scheef & Stone, L.L.P. 500 N. Akard, Suite 2700 Dallas, Texas (214) INVOICE White Receivership 08/25/2014 Account No: Invoice No: Matter Receivership Expenses 07/30/ /30/ /30/ /31/ /01/ /06/ /08/ /08/ /21/ /21/ /22/2014 Overnight Delivery (1) Federal Express Photocopies 18 Overnight Deliveries (1) Federal Express Computerized legal research (1 013) Thomson Reuters- West Photocopies Filing fee (33) Secretary of State Postage Photocopies Photocopies Photocopies Postage Total Expenses Total Current Services and Expenses TERMS: DUE AND PAYABLE UPON RECEIPT I

22 Case 4:13-cv RAS-DDB Document Filed 11/11/14 Page 2 of 3 PageID #: 2027 Scheef & Stone, L.L.P. 500 N. Akard, Suite 2700 Dallas, Texas (214) INVOICE White Receivership 09/25/2014 Account No: Invoice No: Matter Receivership Expenses 08/22/ /25/ /25/ /25/ /27/ /27/ /31/ /31/ /31/ /16/ /16/ /16/2014 Overnight Delivery (1) Federal Express 6 Overnight Deliveries (1) Federal Express Photocopies Postage Photocopies Postage Computerized legal research (1 013) Thomson Reuters- West Computerized legal research (1 013) Thomson Reuters- West Computerized legal research (1 013) Thomson Reuters- West Postage Overnight Delivery (1) Federal Express Photocopies Total Expenses Total Current Services and Expenses TERMS: DUE AND PAYABLE UPON RECEIPT

23 Case 4:13-cv RAS-DDB Document Filed 11/11/14 Page 3 of 3 PageID #: 2028 Scheef & Stone, L. L. P. 500 N. Akard, Suite 2700 Dallas, Texas (214) INVOICE White Receivership 10/25/2014 Account No: Invoice No: Matter Receivership Expenses 10/06/ /06/ /17/ /17/2014 Photocopies Photocopies Overnight Delivery (1) Federal Express Postage Total Expenses Total Current Services and Expenses TERMS: DUE AND PAYABLE UPON RECEIPT

24 Case 4:13-cv RAS-DDB Document Filed 11/11/14 Page 1 of 2 PageID #: 2029 THE Aft K PLLC A PROFESSIONAL ACCOUNTANCY GROUP 2151 E Broadway Road, Suite 115 Tempe, AZ Revelation Forex Fund-In Receivership, Kevin White Et al c/o Kelly Crawford, Receiver Scheef & Stone, LLP October 31, 2014 Invoice: /4/14 S. Parker Call investor John Fibbert, left message regarding 2012 returns 9/ 5/14 S. Parker Respond to Investor CPA John Febert, discuss 2012 tax returns and associated issues of incorrect K-1' issued but never filed, discuss distributions in excess of basis issues. Prepare for receiver for future related queries. Rate Amount 0.20 $ $ $ $ $ $ /15/14 L. Thompson Updated partnership return to reflect transfer of all assets to Receiver trust prior to year end, removed all assets & liabilities from partnership books and from tax return S. Parker Review and confirm filing complete, contact Receiver for signature, mail tax returns to IRS for both Receiver trust and Revelation Forex partnership returns 2.25 $ $ $ $ $ The Alt Key, PLLC 2151 E. Broadway Road Suite 115, TempeAZ p I f e. admin@thealtkey.comi!/jbiiiibbbbb. I

25 Case 4:13-cv RAS-DDB Document Filed 11/11/14 Page 2 of 2 PageID #: 2030 Revelation Forex Fund-In Receivership, Kevin White Et al Page 2 Invoice Total $908.00

26 Case 4:13-cv RAS-DDB Document Filed 11/11/14 Page 1 of 2 PageID #: 2031 IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS SHERMAN DIVISION U.S. COMMODITY FUTURES TRADING COMMISSION, v. Plaintiff, RFF GP, LLC, KGW CAPITAL MANAGEMENT and KEVIN G. WHITE, Defendants, REVELATION FOREX FUND, LP, MERIDIAN PROPANE LP, and W CORPORATE REAL ESTATE, LP d/b/a KGW REAL ESTATE, Relief Defendants. CIVIL ACTION NO. 4:13-CV-0382 ORDER GRANTING PETITION NO. 20 THE RECEIVER S UNOPPOSED FIFTH QUARTERLY FEE PETITION On this date, the Court considered Petition No. 20, The Receiver s Unopposed Fifth Quarterly Fee Petition. The Court finds that the parties do not oppose the relief requested in the Petition, that no other parties or persons objected to the relief requested, and that the Petition is just and appropriate and should be granted. ACCORDINGLY, it is hereby ordered that the Receiver is authorized to pay from the receivership assets recovered by the Receiver the following fees and expenses: 1. The sum of $5, shall be paid to Kelly Crawford for his services as Receiver from July 26, 2014 through October 25, This sum represents 80% of the total fees charged by the Receiver of $6,675. Twenty percent of the total fees charged

27 Case 4:13-cv RAS-DDB Document Filed 11/11/14 Page 2 of 2 PageID #: 2032 shall be held back and the Court shall consider payment of the held back fees at the conclusion of the receivership. 2. The sum of $2,049 shall be paid to Scheef & Stone, L.L.P. for its services as counsel to the Receiver from July 26, 2014 through October 25, This sum represents 80% of the total fees charged by Scheef & Stone, L.L.P. of $2, Twenty percent of the total fees charged shall be held back and the Court shall consider payment of the held back fees at the conclusion of the receivership. 3. The sum of $1, shall be paid to Scheef & Stone, L.L.P. for expenses it incurred on behalf of its representation of the Receiver from July 26, 2014 through October 25, This sum represents 80% of the total expenses incurred by Scheef & Stone, L.L.P. of $1, Twenty percent of the total expenses incurred shall be held back and the Court shall consider payment of the held back expenses at the conclusion of the receivership. 4. The sum of $ shall be paid to The Alt Key, PLLC for fees charged for its services as accountant to the Receiver from August 1, 2014 through October 31, This sum represents 80% of the total fees charged by The Alt Key, PLLC of $ Twenty percent of the total fees and expenses charged shall be held back and the Court shall consider payment of the held back fees at the conclusion of the receivership.