Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_07-cv-01724/USCOURTS-caed-2_07-cv-01724-27/pdf.json

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

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1 BOUTIN GIBSON DI GIUSTO HODELL INC. 

Chris Gibson, SBN 073353 

2 Maralee MacDonald, SBN 208699 

555 Capitol Mall, Suite 1500 

3 Sacramento, CA 95814-4603 

(916) 321-4444 

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QUILLING, SELANDER, CUMMISKEY 

5 & LOWNDS, P.C. 

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

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

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

7 2001 Bryan Street, Suite 1800 

Dallas, TX 75201 

8 Telephone: (214) 871-2100 

Facsimile: (214) 871-2111 

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Attorneys for Michael J. Quilling 

10 Receiver of Defendants Secure Investment Services, Inc., 

American Financial Services, Inc., and Lyndon Group, Inc. 

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12 UNITED STATES DISTRICT COURT 

13 EASTERN DISTRICT OF CALIFORNIA 

14 SACRAMENTO DIVISION 

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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 GEB CMK 

STIPULATED MOTION TO 

AUTHORIZE RECEIVER TO 

EMPLOY FACIO ABOGADOS AND 

REQUEST FOR EXPEDITED 

CONSIDERATION 

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TO: THE HONORABLE GARLAND E. BURRELL, JR. 

22 UNITED STATES DISTRICT JUDGE 

 The parties, except substituted defendant and decedent Linda Neuhaus, administrator of 

the Estate of Donald F. Neuhaus, at the request of Michael J. Quilling, in his capacity as 

Receiver appointed in these proceedings (“Receiver”), respectfully submit this Stipulated Motion 

to Authorize Receiver to Employ Facio Abogados and Request for Expedited Consideration 

under L.R. 66-232. 

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STIPULATED MOTION TO AUTHORIZE RECEIVER TO EMPLOY FACIO ABOGADOS 

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Case 2:07-cv-01724-GEB-CMK Document 251 Filed 07/22/08 Page 1 of 5
RECITALS 1 

1. By Order dated August 24, 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”). In that capacity, the Court has authorized and charged the 

Receiver to take complete and exclusive control, possession, and custody of all receivership 

assets. The temporary appointment of the Receiver by virtue of the foregoing Order was made 

permanent by Order dated October 31, 2007 [Dkt. No. 80] (“Order Appointing Receiver”). 

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 2. Paragraph 10 of the Order Appointing Receiver authorizes the Receiver to employ 

attorneys as may be necessary and proper for the collection, preservation, maintenance and 

operation of the receivership assets. One of the assets of the receivership is a number of 

purported bonds issued by Provident Capital & Indemnity (“PCI”) an alleged bonding company 

in Costa Rica. These bonds were issued to provide a payment source should the insureds not die 

at the end of their life expectancy as represented to investors. Under the provisions of the bond, 

if the insured was still alive at the end of the life expectancy, the bonding company would pay 

the amount of the death benefits as if the insured had died and then step into the shoes of the 

owner of the insurance policy. Although it is the Receiver’s experience that most, if not all, 

bonding companies which engage in this type of business are fraudulent, the potential exists that 

PCI is legitimate and that the bonds would provide a source of recovery for the investors. 

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 3. Given the fact that PCI is located in Costa Rica, the Receiver has determined that 

it would be prudent to retain counsel in Costa Rica to assist the efforts of the Receiver in 

determining the bona fides of PCI and furthering demand upon the bonds which are now 

beginning to mature. Specifically, the Receiver requests that he be authorized to retain Facio 

Abogados which is a law firm with offices in Costa Rica. In particular, the partner at that law 

firm is Alejandro Pignataro. Mr. Pignataro and his law firm have experience in the 

representation of receivers and come highly recommended to the Receiver by others who have 

utilized their services in the past in connection with navigating through legal affairs in Costa 

Rica. 

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STIPULATED MOTION TO AUTHORIZE RECEIVER TO EMPLOY FACIO ABOGADOS 

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Case 2:07-cv-01724-GEB-CMK Document 251 Filed 07/22/08 Page 2 of 5
 4. Mr. Pignataro has advised the Receiver that the hourly rates for services of the 

lawyers and paralegals at Facio Abogados are $200.00 for partners, $150.00 for associates, and 

$125.00 for paralegals. The Receiver believes that these rates are reasonable. Mr. Pignataro has 

also requested that the Receiver provide an initial $10,000.00 retainer so that he may begin his 

efforts in assisting the Receiver. The Receiver believes that the requested retainer is also 

reasonable and seeks authority to be allowed to forward that retainer to Facio Abogados. 

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7 STIPULATION

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

authorizing the Receiver to employ and retain the Facio Abogados law firm and to forward an 

initial retainer of $10,000.00 and further stipulate that this matter be submitted for expedited 

consideration by this Court. 

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 BOUTIN GIBSON DI GIUSTO HODELL INC. 

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Dated: July14, 2008 By __/s/ Maralee MacDonald_________________ 

15 Maralee MacDonald 

Attorneys for Receiver of Secure 

Investment Services, Inc., American 

Financial Services, Inc., and Lyndon 

Group, Inc. 

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19 SECURITIES AND EXCHANGE 

 COMMISSION 

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21 Dated: July 10, 2008 By __/s/ Thomas J. Eme (authorized 7/10/08)____ 

 Thomas J. Eme 

22 John S. Yun 

Attorneys for Plaintiff Securities 

23 Exchange and Commission 

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25 KENNY, SNOWDEN & NORINE 

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Dated: July 10, 2008 By _/s/ Jonz C. Norine (authorized 7/10/08)______ 

27 Jonz C. Norine 

 Attorneys for Defendant 

28 Kimberly Snowden 

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STIPULATED MOTION TO AUTHORIZE RECEIVER TO EMPLOY FACIO ABOGADOS 

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Case 2:07-cv-01724-GEB-CMK Document 251 Filed 07/22/08 Page 3 of 5
1 Dated: July 11, 2008 MUNSCH HARDT KOPF & HARR, P.C. 

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 By_/s/ Dennis L. Roosien, Jr. (authorized 7/11/08)_ 3 

 Dennis L. Roosien, Jr. 

4 Attorneys for Examiner 

 Steven A. Harr 

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6 ORDER

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 IT IS SO ORDERED. 

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Dated: July 22, 2008 

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10 _________________________________________ 

 Honorable Garland E. Burrell, Jr. 

11 United States District Court Judge 

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STIPULATED MOTION TO AUTHORIZE RECEIVER TO EMPLOY FACIO ABOGADOS 

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1 CERTIFICATE OF MAILING 

 I hereby certify that on the 14th of July, 2008, a copy of this Stipulated Motion was served 

on the following by First Class United States Mail: 

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Bazzle John Wilson 

1291 Nunneley 

Paradise, CA 95969 

J.D. Zink 

Zink & Lenzi 

250 Vallombrosa Ave., #175 

Chico, CA 95926 

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6 /s/ Maralee MacDonald _________

7 Maralee MacDonald 

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STIPULATED MOTION TO AUTHORIZE RECEIVER TO EMPLOY FACIO ABOGADOS 

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