Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_04-cv-02037/USCOURTS-casd-3_04-cv-02037-7/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:77 Securities Fraud

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- 1 - 04-CV-2037W

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

SECURITIES AND EXCHANGE

COMMISSION,

Plaintiff,

CASE NO. 04-CV-2037 W (LSP)

ORDER GRANTING

RECEIVER’S AND HIS

PROFESSIONALS’ FIFTH

INTERIM APPLICATION FOR

APPROVAL AND PAYMENT

OF FEES AND EXPENSES

v.

LEARN WATERHOUSE, INC., et al.

Defendants.

On October 12, 2004 the Securities and Exchange Commission commenced this

securities action against Defendants Learn Waterhouse, Inc. (“LWI”), Randall T.

Treadwell, Rick D. Sluder, Larry C. Saturday, and Arnulfo M. Acosta (collectively,

“Defendants”). By order dated November 1, 2004 this Court granted a Preliminary

Injunction freezing Defendants’ assets, prohibiting the destruction of documents,

requiring an accounting and repatriation of assets. The Court also appointed Thomas

F. Lennon (“Receiver”) as the permanent receiver authorized to take all actions

necessary to protect the investors’ assets. 

Case 3:04-cv-02037-W-DHB Document 502 Filed 05/28/08 Page 1 of 3
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1

 Neligan Tarpley has completed its work, and applied for and obtained approval of final fees.

- 2 - 04-CV-2037W

In executing his duties, the Receiver has employed the San Diego law firm of

Allen, Matkins, Leck, Gamble & Mallory (“Allen Matkins”) and the Texas law firm of

Neligan, Tarpley, Andrews & Foley LLP (“Neligan Tarpley”).1

 The Receiver has also

retained the services of William H. Ling (“Ling”) and his staff, as a Certified Public

Accountant. The Court has previously approved the Receiver’s and his professionals’

first, second, third and fourth interim fee applications. The Receiver and his

professionals now seek approval and payment (subject to a 20% fee holdback) of their

fifth interim fee applications, covering fees and costs from December 1, 2006 through

February 29, 2008 (the “application period”).

 Having conducted a thorough review of the fee applications, the record in this

case, the progress the Receiver and his professionals have made, and no opposition

having been filed, the Court finds: (1) the Receiver’s, Allen Matkins’ and Ling’s billing

rates are reasonable given the circumstances of the case; and (2) the work they

performed during the application period was reasonable and necessary. Accordingly, the

Court GRANTS the Receiver’s, Allen Matkins’ and Ling’s fee applications subject to

the following conditions: 

1. The Receiver applied for $36,704.50 in fees and $223.55 in costs. The

Court approves the Receiver’s request for fees and costs incurred during the application

period and authorizes payment on an interim basis of 80% and 100%, respectively. 

2. Ling applied for $3,687.50 in fees. The Court approves Ling’s request for

fees incurred during the application period and authorizes payment of 100% of the fees

incurred during this application period.

3. Allen Matkins applied for $186,953.50 in fees and $4,006.79 in costs. The

Court approves Allen Matkins’ request for fees and costs incurred during the application

period and authorizes payment on an interim basis of 80% and 100%, respectively. 

4. The Receiver shall pay these amounts from available receivership estate

assets no later than July 11, 2008.

Case 3:04-cv-02037-W-DHB Document 502 Filed 05/28/08 Page 2 of 3
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- 3 - 04-CV-2037W

IT IS SO ORDERED.

DATED: May 28, 2008

Hon. Thomas J. Whelan

United States District Judge

Case 3:04-cv-02037-W-DHB Document 502 Filed 05/28/08 Page 3 of 3