Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_07-cv-01724/USCOURTS-caed-2_07-cv-01724-17/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 12:22 Securities Fraud

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STIPULATED MOTION FOR ORDER AUTHORIZING RECEIVER TO EMPLOY 

LITZLER, SEGNER, SHAW & MCKENNEY; ORDER 

123881.1 

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BOUTIN GIBSON DI GIUSTO HODELL INC. 

Chris Gibson, SBN 073353 

Maralee MacDonald, SBN 208699 

555 Capitol Mall, Suite 1500 

Sacramento, CA 95814-4603 

(916) 321-4444 

QUILLING, SELANDER, CUMMISKEY 

 & LOWNDS, P.C. 

Michael J. Quilling (Tex. Bar No. 16432300) – Admitted Pro Hac Vice 

D. Dee Raibourn, III (Tex. Bar No. 24009495) – Admitted Pro Hac Vice 

Brent J. Rodine (Tex. Bar No. 24048770) – Admitted Pro Hac Vice 

2001 Bryan Street, Suite 1800 

Dallas, TX 75201 

Telephone: (214) 871-2100 

Facsimile: (214) 871-2111 

Attorneys for Receiver 

UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA 

SACRAMENTO DIVISION 

 

SECURITIES AND EXCHANGE COMMISSION, 

 Plaintiff, 

 v. 

SECURE INVESTMENT SERVICES, INC., 

AMERICAN FINANCIAL SERVICES, INC., 

LYNDON GROUP, INC., DONALD F. NEUHAUS, 

and KIMBERLY A. SNOWDEN, 

 Defendants. 

 Case No. 2:07-cv-01724 LEW CMK 

STIPULATED MOTION FOR ORDER 

AUTHORIZING RECEIVER TO 

EMPLOY LITZLER, SEGNER, SHAW 

& MCKENNEY; ORDER 

 The parties, at the request of Michael J. Quilling, the Receiver appointed in these 

proceedings, (“Receiver”), respectfully submit this Stipulated Motion for Order Authorizing 

Receiver to Employ Litzler, Segner, Shaw & McKenney under L.R. 66-232. 

// 

// 

Case 2:07-cv-01724-GEB-CMK Document 96 Filed 12/10/07 Page 1 of 5
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STIPULATED MOTION FOR ORDER AUTHORIZING RECEIVER TO EMPLOY 

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BACKGROUND & AUTHORITY

 1. By Order of October 30, 2007, the Court appointed Michael J. Quilling as 

Receiver for Secure Investment Services, Inc. (“SIS”), American Financial Services, Inc. 

(“AFS”) and Lyndon Group, Inc. (“LGI”) and other related entities. In that capacity, the Court 

has authorized and charged the Receiver to take complete and exclusive control, possession, and 

custody of all receivership assets. 

2. The Order Appointing Receiver authorizes the Receiver to employ accountants as 

needed to preserve and maintain the Receivership Assets in this case: 

The Receiver is hereby authorized to employ such employees, 

accountants, and attorneys as is necessary and proper for the 

collection, preservation, maintenance and operation of the 

Receivership Assets and Receivership Records and to open bank 

accounts or other depository accounts in the name of the Receiver 

on behalf of the receivership estate. 

Order Appointing Receiver [Dkt. No. 80] at ¶ 11. 

 3. Accordingly, the Receiver requests authority under L.R. 66-232(g) to employ 

Litzler, Segner, Shaw & McKenney (“LSSM”) of Dallas, Texas, to act as his accountants. 

LSSM has extensive experience in the discrete area of federal equitable receiverships. Prior to 

the initiation of these proceedings and until the time the Court issued the Order Appointing 

Receiver, LSSM functioned as an expert witness for the Securities and Exchange Commission 

(“SEC”) and in that role prepared an extensive analysis of the receivership entities’ bank records 

and financial condition. LSSM, with the consent of the SEC, has agreed to provide the Receiver 

the benefit of their prior services. Accordingly, it would greatly benefit the receivership estate at 

no cost to be able to have and use that information. Hiring other accountants would necessitate a 

duplication of the work and would take a considerable period of time at substantial expense. 

4. LSSM is acting as the Receiver’s accountants in another receivership involving a 

large viatical company, with a life insurance policy portfolio valued at over $230 million. The 

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STIPULATED MOTION FOR ORDER AUTHORIZING RECEIVER TO EMPLOY 

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Receiver believes that employing LSSM is in the best interest of the receivership estate because 

it has the experience and resources to efficiently and effectively represent the Receiver in this 

case and because of the prior work they have performed in these proceedings. 

 5. LSSM will provide accounting services in this case at the hourly rates set forth in 

Exhibit A. The Receiver seeks Court approval to pay those amounts on a tentative basis 

pursuant to Paragraph 17 of the Order Appointing Receiver pending a hearing for final approval 

under L.R. 66-232. 

 6. The Receiver requests that this Court enter an order authorizing him to employ 

LSSM and to compensate them consistent with the terms described in Exhibit A. 

STIPULATION

 WHEREFORE, THE PARTIES STIPULATE to the entry of an order of this Court 

authorizing the Receiver to employ LSSM and to compensate it consistent with the terms 

described in Exhibit A. 

 BOUTIN GIBSON DI GIUSTO HODELL INC. 

Dated: November 30, 2007 By _/s/ Maralee MacDonald_______ 

 Maralee MacDonald 

Attorneys for Receiver of Secure 

Investment Services, Inc., American 

Financial Services, Inc., and Lyndon 

Group, Inc. 

 SECURITIES AND EXCHANGE 

 COMMISSION 

Dated: November 28, 2007 By /s/ Thomas Eme (authorized 11/28/2007)_

 Thomas J. Eme 

 John S. Yun 

Attorneys for Plaintiff Securities 

Exchange and Commission 

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STIPULATED MOTION FOR ORDER AUTHORIZING RECEIVER TO EMPLOY 

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 MOSS & LOCKE 

Dated: November 26, 2007 By _/s/ Bruce Locke (authorized 11/26/2007)_

 Bruce Locke 

 Attorneys for Defendant 

 Donald Neuhaus 

 KENNY, SNOWDEN & NORINE 

Dated: November 30, 2007 By _/s/ Mark Norcross (authorized 11/30/2007) 

 Mark Norcross 

 Attorneys for Defendant 

 Kimberly Snowden 

ORDER

 IT IS SO ORDERED. 

Dated: December 3, 2007 

 _____________________________________ 

 Honorable Ronald S.W. Lew 

 Senior, U.S. District Court Judge 

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EXHIBIT A

 Milo Segner, Partner $350.00 

 Jim Shaw, Partner $350.00 

 Edward Kigosi, Tax Accountant $235.00 

 Jana Hicks, Staff Accountant $210.00 

 Reed Nordyke, Forensic Analyst $135.00 

 Scott Reese, Paraprofessional $ 95.00 

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