Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_07-cv-01724/USCOURTS-caed-2_07-cv-01724-7/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 QUILLING

SELANDER CUMMISKEY & LOWNDS, P.C.; ORDER 

120719.1 

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BOUTIN DENTINO 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 

Attorneys for Receiver 

Michael J. Quilling 

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 QUILLING SELANDER 

CUMMISKEY & LOWNDS, P.C.; 

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 Quilling Selander Cummiskey & Lownds, P.C. under L.R. 66-232. 

BACKGROUND & AUTHORITY

1. By Order of 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”) and other related individuals and 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. 

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STIPULATED MOTION FOR ORDER AUTHORIZING RECEIVER TO EMPLOY QUILLING

SELANDER CUMMISKEY & LOWNDS, P.C.; ORDER 

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2. The Order Appointing Temporary Receiver authorizes the Receiver to employ 

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

Given the emergency nature of these proceedings, 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. As soon as possible after retaining such 

professionals, the Receiver shall file written applications to 

retroactively approve the employment pursuant to Local Rule 66-

232(g). 

Order Appointing Temporary Receiver [Dkt. No. 27] at ¶ 11. 

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

Quilling Selander Cummiskey & Lownds, P.C. (“QSCL”) of Dallas, Texas, to act as his legal 

counsel. QSCL has extensive experience in the discrete area of federal equitable receiverships, 

with three attorneys who practice in that field exclusively. Profiles of those attorneys and their 

practice experience are attached as Exhibit A. QSCL also has full-time claim analysts capable of 

handling the 500 potential investor claims in this case. 

4. QSCL recently acted as the Receiver’s legal counsel in two other receiverships 

involving large viatical companies, each with life insurance policy portfolios valued at over $230 

million. The Receiver believes that employing QSCL 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. 

5. QSCL will provide legal representation in this case at the hourly rates set forth in 

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

QSCL and to compensate it consistent with the terms described in Exhibit B. 

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STIPULATED MOTION FOR ORDER AUTHORIZING RECEIVER TO EMPLOY QUILLING

SELANDER CUMMISKEY & LOWNDS, P.C.; ORDER 

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STIPULATION

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

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

described in Exhibit B. 

 BOUTIN DENTINO GIBSON DI GIUSTO 

 HODELL INC. 

Dated: August 29, 2007 By /s/ Maralee MacDonald

 Maralee MacDonald 

 Attorneys for Receiver 

 SECURITIES EXCHANGE 

 COMMISSION 

Dated: August 29, 2007 By __/s/ John S. Yun(as authorized on August 29, 2007)

 Thomas J. Eme 

 John S. Yun 

Attorneys for Plaintiff Securities 

Exchange Commission 

 KENNY, SNOWDEN & NORINE 

Dated: August 29, 2007 By /s/ Mark Norcross (as authorized on August 29, 2007)

 Mark Norcross 

 Attorneys for Defendants 

 Donald Neuhaus and 

 Kimberly Snowden 

ORDER

IT IS SO ORDERED. 

Dated: September 6, 2007 

 /s/ Ronald S. W. Lew________________

 Honorable Ronald S. W. Lew 

 UNITED STATES DISTRICT COURT JUDGE

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