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UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

Richmond Division

IN RE: )

)

LeClairRyan, PLLC ) Case No. 19-34574-KRH

) Chapter 7

Debtor. )

APPLICATION FOR COMPENSATION

OF PROFESSIONAL ACCOUNTANT

I. GENERAL INFORMATION

Comes now Lynn L. Tavenner, Trustee (the “Trustee”) with an Application for 

Compensation of Professional Accountant on behalf of Barry Strickland & Company, Certified 

Public Accountants (the “Applicant”). If specific provisions of this application do not comply 

with the procedural guidelines adopted by the United States Trustee pursuant to 28 U.S.C. 

§586(3)(A), the provision and reason for the omission is noted in the specific paragraph 

concerning the provision.

The Trustee certifies that she has received and reviewed this application and approved it. 

The Trustee further certifies that a copy of this application has been served on the United States 

Trustee, and notice of this application has been served on all parties required to receive notice.

II. NARRATIVE SUMMARY

A. Background:

l. The Petition was filed as a Chapter 11 on September 3, 2019 and was converted to 

a Chapter 7 on October 4, 2019

2. The order approving employment was entered on October 30, 2019.

3. The services commenced on October 22, 2019.

4. The services were rendered on behalf of Lynn L. Tavenner, Trustee.

5. The applicant is seeking compensation pursuant to 11 U.S.C. §503(b).

______________________________ 

Lynn L. Tavenner, Trustee (VSB #30083)

Tavenner & Beran PLC

20 N. Eighth Street, Second Floor

Richmond, VA 23219 

(804) 783-8300

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6. The terms and conditions of employment and compensation, including all payments 

made or promised to be made, are as follows:

Employment is to perform various accounting duties which are needed for the 

proper administration of the bankruptcy estate, including but not limited to 

preparation and filing of local, state and federal income tax returns. Compensation 

is to be determined pursuant to §328(a) of the Bankruptcy Code.

7. The source of the compensation is the Estate.

8. The terms and conditions of any retainers are: None.

9. The status of the retainers is: None.

10. Caps or limitations on fees or other charges are: None.

11. The information required of the professionals and paraprofessionals requesting fees 

and their hourly rates are listed below:

Name

Barry Strickland, CPA

Current

Hourly Rate: 

$325.00

If Rate Has Changed, Described from Last Rate

Change from Prior Rate: $315.00 

Date change became effective: 01/01/22

Reason for Change: General rate increase

Name

Betsy Chappell, CPA

Current

Hourly Rate:

$310.00

If Rate Has Changed, Described from Last Rate

Change from Prior Rate: $300.00

Date change became effective: 01/01/22

Reason for Change: General rate increase

Name

Cheryl DePrisco,

Staff Accountant

Current

Hourly Rate:

$130.00

If Rate Has Changed, Described from Last Rate

Change from Prior Rate: $125.00

Date change became effective: 01/01/22

Reason for Change: General rate increase

12. Previous compensation or reimbursement of expenses has been allowed.

Name: Barry Strickland & Company

Requested Approved Amount Paid Balance Due

Date Fees Expenses Date Fees Expenses Fees Expenses Fees Expenses

May 7, 2020 $20,531.50 $109.10 July 20, 2020 $20,531.50 $109.10 $20,531.50 $109.10 $0.00 $0.00

September 9, 2020 $12,310.95 $1,523.35 September 30, 2020 $12,310.95 $1,523.35 $12,310.95 $1,523.35 $0.00 $0.00

January 7, 2021 $3,314.70 $116.50 February 5, 2021 $3,314.70 $116.50 $3,314.70 $116.50 $0.00 $0.00

May 6, 2021 $17,127.50 $218.90 June 4, 2021 $17,127.50 $218.90 $17,127.50 $218.90 $0.00 $0.00

November 30, 2021 $6,588.70 $0.00 January 3, 2022 $6,588.70 $0.00 $0.00 $0.00 $6,588.70 $0.00

13. No application for interim compensation has been filed less than 120 days after the 

order for relief or after a prior application to the Court.

14. The time period of the services and covered by this application is from November 

30, 2021 to March 1, 2022.

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B. Case Status To the Best of Applicant's Knowledge:

1. Applicant's Knowledge:

The amounts in the Trustee’s possession are as follows: $9,117,646.69 (Signature 

Bank), $164,404.97 (Operating Account – HSBC); $954,692.37 (commonly 

referred to as CAPE account); and $299,775.36 (Virginia IOLTA).

2. A summary of the administration of the case is provided to the Court at regularly 

scheduled omnibus hearings.

4. Applicant states that if any changes in the status of the case occur after the filing 

of this application, the applicant shall orally or in writing supplement this 

application at the hearing, or if a hearing is not required, prior to the expiration of 

the time period for objection.

C. Project Summary

This application complies with the provision of the procedural guidelines pertaining to 

project task billing because the total amount of fees reasonably anticipated to be sought 

by each applicant in the case is $10,000.00 or more.

III. ITEMIZATION OF SERVICES RENDERED

A. Summary Sheet

1) Total Requested: Fees: $12,004.25 Expenses: $25.40

2) Total previously approved by the Court: Fees: $59,873.35 Expenses: $1,967.85

3) Total hours for which compensation is requested: 39.26

4) A summary is provided for each applicant:

Name: Barry Strickland, CPA

Total hours for which compensation is sought: 14.41

Hourly rate: $325.00

Name: Betsy Chappell, CPA

Total hours for which compensation is sought: 22.85

Hourly rate: $310.00

Name: Cheryl DePrisco

Staff Accountant

Total hours for which compensation is sought: 2.00

Hourly rate: $130.00

5) Blended hourly rate, excluding paralegal or other paraprofessional time: $315.47.

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6) Total blended hourly rate: $305.76.

B. Itemization of Time

Itemized time and services entries as specified in III (B)(1) of the procedural guidelines 

adopted by the United States Trustee pursuant to 28 U.S.C. §586(3)(A) are provided on 

the attached sheet(s).

WHEREFORE, the Trustee on behalf of the Applicant respectfully requests that the 

Court enter an order substantially in the form attached hereto as Exhibit C approving the charges 

made in this Application.

Dated: 03/08/2022 

/s/ Lynn L. Tavenner, Trustee

Lynn L. Tavenner, Trustee (Va. Bar No. 30083)

Tavenner & Beran, PLC

20 North Eighth Street, Second Floor

Richmond, Virginia 23219

(804) 783-8300

CERTIFICATE OF SERVICE

I hereby certify that a copy of the foregoing Application for Compensation of 

Professional Accountant, with exhibit(s) attached, was electronically served or mailed, by U. S. 

mail, postage prepaid to Shannon F. Pecoraro, Esquire, Trial Attorney for the Office of the 

United States Trustee, and all parties receiving ECF notices. Notification of the filing of the 

Application and amounts sought therein will be served on (a) the Debtor’s 20 Largest Unsecured 

Creditors; (b) all known secured creditors from the Debtor’s Official Form 106D; (c) the Core 

Parties and 2002 List as defined in the Case Management Order; and (d) all parties requesting 

service of pleadings in this Case (as indicated on the Schedule A attached to the Court filed copy 

of the Notice of said Application).

/s/ Lynn L. Tavenner, Trustee

Lynn L. Tavenner, Trustee (Va. Bar No. 30083)

Tavenner & Beran, PLC

20 North Eighth Street, Second Floor

Richmond, Virginia 23219

(804) 783-8300

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Exhibit A

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PROJECT SUMMARY

1. Application for Compensation: The preparation of the application for compensation 

and forward to Trustee for filing.

2. Tax Returns/Issues: Review tax notice from Dearborn, Michigan counsel; obtain 

court’s order to reject leases and abandon personal property; call and email to 

Dearborn’s counsel to resolve matter; print and assemble 2018 tax returns; work on 

questions related to Trustee’s attorney email regarding Gary LeClair; call from Trustee’s 

attorney regarding IRS audit; review and organize IRS audit file; scan file and email as 

directed; organize workpapers; look into Texas Franchise tax claims; call with Texas 

Attorney General’s office regarding claims; review information received from Attorney 

General’s office and compare to returns filed by the debtor; related tax research; email to 

Trustee and Trustee’s attorney explaining tax claims; continue working with questions 

from Trustee’s attorney; continue research regarding partnership tax issues; prepare for 

conference call with Trustee’s attorney; conference call with Trustee’s attorney 

regarding tax return issues related to partners that should receive K-1s; continue tax 

research regarding effect of Form 8082 filed by a partner; research how a partner should 

disclose that they are taking a different position from a schedule K-1; review all research 

regarding Form 8082; draft email explaining our findings; contact Trustee regarding 

preparing the 2021 tax return; determine information needed to prepare the 2021 tax 

return and contact to request; receive 2021 information from Trustee’s office; printing 

emails and schedules from staff; work with 2021 cash receipts and disbursements 

information; contact staff with questions; work with 2021 Form 2 activity; work with 

responses from staff; locate and read documents on Docket to help account for recovery

of preference payments and properly record other transactions; prepare and contact 

Trustee with questions regarding 2021 Form 2 activity; organize workpapers. 

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SUMMARY OF TIME BY PROJECT

Average Rate

 Per Hour

1. Application for Compensation 2.00 hours $ 125.00 $ 250.00

2. Tax Returns/Issues 37.26 hours $ 315.47 11,754.25

 ___________ __________

Subtotal 39.26 hours 12,004.25

Expenses Due 25.40

Total $ 12,029.65 

 

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Exhibit B 

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APPLICATION FOR COMPENSATION

11/30/2021 DEPRISCO, CHERYL 2.00 Preparation of Application for Compensation 250.00

by project summaries; review all entries for 

correct project codes and calculation of each 

employees time for each project; forward to 

_____ trustee's office for filing. 

_________

Subtotals: 2.00 250.00

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TAX RETURNS/ISSUES

12/03/2021 STRICKLAND, BARRY 1.25 Review tax notice from Dearborn, Michigan 393.75

counsel; obtain court's order to reject leases 

and abandon personal property; call and email

to Dearborn's counsel to resolve the matter

01/18/2022 CHAPPELL, BETSY 1.67 Printing and assembling the 2018 tax returns; 517.70

working on questions per Paula Beran's 

1/18/2022 email regarding Gary LeClair

01/19/2022 STRICKLAND, BARRY 1.92 Call from Paula Beran regarding IRS audit; 624.00

review and organize IRS audit file; scan 

contents of file and email as directed by Paula

01/19/2022 CHAPPELL, BETSY 0.25 Organizing work papers 77.50

01/20/2022 STRICKLAND, BARRY 4.17 Investigate two Texas Franchise tax claims; 1,355.25

call with Texas Attorney General's office 

regarding the claims; review information 

received from the Attorney General's office 

and compare to returns filed by the debtor; 

related tax research; email to Lynn and 

Paula explaining the tax claims

01/20/2022 CHAPPELL, BETSY 0.25 Continue working with questions from Paula 77.50

Beran

01/21/2022 STRICKLAND, BARRY 3.91 Continue research regarding partnership tax 1,270.75

issues; prepare for conference call with call 

Paula Beran; follow up

01/21/2022 CHAPPELL, BETSY 1.42 Conference call with Paula Beran to discuss 440.20

tax return issues related to partners that 

should receive K-1s

01/22/2022 STRICKLAND, BARRY 2.08 Continue tax research regarding effect of 676.00

Form 8082 filed by a partner

01/22/2022 CHAPPELL, BETSY 1.17 Research how a partner should disclose that 362.70

they are taking a different position from a 

Schedule K-1 

01/24/2022 STRICKLAND, BARRY 1.08 Review all research regarding Form 8082; 351.00

draft email explaining our finding

01/24/2022 CHAPPELL, BETSY 0.25 Continued work related to partner taking a 77.50

different position

01/28/2022 CHAPPELL, BETSY 0.17 Contact Trustee regarding preparing the 52.70

2021 tax return

01/29/2022 CHAPPELL, BETSY 0.75 Determine what information we will need to 232.50

prepare the 2021 tax return and contact staff 

to request

01/31/2022 CHAPPELL, BETSY 0.08 Received 2021 information from Trustee's 24.80

office

02/08/2022 CHAPPELL, BETSY 0.25 Printing emails and schedules from staff 77.50

02/21/2022 CHAPPELL, BETSY 0.17 Received 2021 additional information from 52.70

Trustee 

02/21/2022 CHAPPELL, BETSY 1.17 Begin working with the 2021 cash receipts 362.70

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and disbursements information

02/22/2022 CHAPPELL, BETSY 1.83 Continue working with cash receipts and 567.30

disbursements information; contact staff with 

questions

02/22/2022 CHAPPELL, BETSY 3.00 Begin working with Form 2 activity for 2021 930.00

02/23/2022 CHAPPELL, BETSY 0.67 Working with responses from our questions 207.70

to the staff

02/23/2022 CHAPPELL, BETSY 1.58 Locating documents on docket to help 489.80

account for recovery of preference payments 

02/27/2022 CHAPPELL, BETSY 2.00 Continue working on summary of Form 2 for 620.00

2021; locating and reading documents from 

docket to help properly account for 

transactions

02/28/2022 CHAPPELL, BETSY 5.00 Continue working on summary of Form 2 for 1,550.00

2021; preparing questions to ask Trustee

03/01/2022 CHAPPELL, BETSY 1.17 Contact Trustee with questions regarding 362.70

 _____ 2021 Form 2 activity; organizing workpapers 

_________

Subtotals: 37.26 11,754.25

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XP: OUT-OF-POCKET EXPENSES

03/05/2022 EXPENSES 0.00 Docket copies 25.40

Subtotals: 0.00 25.40

Total billed hours 39.26 Billed Time & Expenses $12,029.65

Invoice Total $12,029.65

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EXHIBIT C

UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

Richmond Division

In re: ) Case No. 

) 19-34574-KRH

LeClairRyan, PLLC, 1 )

) Chapter

Debtor ) 7

)

ORDER APPROVING COMPENSATION

OF ACCOUNTANT FOR TRUSTEE

Comes now Lynn L. Tavenner, Trustee (the “Trustee), on behalf of Barry Strickland & 

Company, Certified Public Accountants, accountant for the bankruptcy estate of the Debtor, on its 

Application for Compensation (the “Application”) for services rendered on behalf of the Trustee; and

It appearing to the Court that proper Notice of the Application was mailed to all creditors and 

parties in interest, no objections having been filed and hearing having been held, it is hereby

ORDERED that Barry Strickland & Company be awarded compensation in the amount of 

$12,004.25 for services rendered as accountant and the sum of $25.40 for reimbursement of expenses, 

and the Trustee is hereby authorized to pay the amounts so allowed. 

Entered:

/s/ 

United States Bankruptcy Judge

We ask for this:

/s/ ______________________________

Paula S. Beran, Esquire (Va. Bar No. 34679)

Tavenner & Beran PLC

20 North Eighth Street, Second Floor

Richmond, Virginia 23219

Telephone: (804) 783-8300

Facsimile: (804) 783-0178

Counsel for Lynn L. Tavenner, Chapter 7 Trustee 1 The principal address of the Debtor as of the petition date was 4405 Cox Road, Glen Allen, Virginia 23060, and the last four digits of the Debtor’s federal 

tax identification number are 2451.

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Seen and no objection:

 

Shannon F. Pecoraro (Va. Bar No. 46864)

Department of Justice

Office of the United States Trustee

701 East Broad Street, Suite 4304

Richmond, Virginia 23219

Tel: (804) 771-2310

Fax: (804) 771-2330

Local Rule 9022-1 Certification

I hereby certify that, pursuant to Local Rule 9022-1, the foregoing proposed Order has either 

been served upon and /or endorsed by all necessary parties.

 

Counsel for Lynn L. Tavenner, Chapter 7 Trustee

Service List of Entered Order

Shannon F. Pecoraro, Esquire

Office of the United States Trustee

701 East Broad Street, Suite 4304

Richmond, Virginia 23219

Paula S. Beran, Esquire

Tavenner & Beran PLC

20 North Eighth Street, Second Floor

Richmond, Virginia 23219

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