Case 4:11-cv Document 41 Filed in TXSD on 11/14/11 Page 1 of 15

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1 Case 4:11-cv Document 41 Filed in TXSD on 11/14/11 Page 1 of 15 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION SECURITIES AND EXCHANGE COMMISSION, v. Plaintiff, BRIAN A. BJORK, ESTATE OF JOEL DAVID SALINAS, J. DAVID GROUP OF COMPANIES, INC., J. DAVID FINANCIAL GROUP, L.P., SELECT ASSET MANAGEMENT, LLC, SELECT CAPITAL MANAGEMENT, LLC, SELECT ASSET FUND I, LLC, AND SELECT ASSET PRIME INDEX FUND, LLC, Defendants. CIVIL ACTION NO. 4:11-cv-2830 RECEIVER S UNOPPOSED FIRST INTERIM APPLICATION TO ALLOW AND PAY (1) RECEIVER'S FEES AND EXPENSES, (2) ATTORNEY'S FEES AND EXPENSES, (3) OTHER PROFESSIONAL FEES AND EXPENSES, AND PROPOSED METHOD FOR FUTURE PAYMENTS AND BRIEF IN SUPPORT TO THE HONORABLE KEITH P. ELLISON, UNITED STATES DISTRICT COURT: Steven A. Harr ( Receiver ), the Receiver appointed by the Court in these proceedings, files his Unopposed First Interim Application to Allow and Pay (1) Receiver's Fees and Expenses, (2) Attorney's Fees and Expenses, (3) Other Professional Fees and Expenses, and Proposed Method for Future Payments and Brief in Support for same states as follows: BACKGROUND 1. On August 1, 2011, the United States Securities and Exchange Commission ("SEC") filed its Complaint and requested the appointment of a Receiver. On that same date, the Court appointed Steven A. Harr to serve as Receiver and he has functioned in that capacity since. RECEIVER S FIRST INTERIM APPLICATION TO ALLOW AND PAY(1) RECEIVER S FEES AND EXPENSES, (2) ATTORNEY S FEES AND EXPENSES, (3) OTHER PROFESSIONAL FEES AND EXPENSES, AND PROPOSED METHOD FOR FUTURE PAYMENTS AND BRIEF IN SUPPORT - PAGE 1 of 15

2 Case 4:11-cv Document 41 Filed in TXSD on 11/14/11 Page 2 of Mr. Harr is an attorney with the law firm of Munsch Hardt Kopf & Harr, P.C. ("MHKH"). The Order permitted Mr. Harr to retain members of his firm and any other professionals considered to be reasonable and necessary by the Receiver to fulfill his obligations to the Court. As part of his duties, the Receiver employed the accounting firm of UHY Advisors FLVS, Inc. ( UHY ) to assist the Receiver with a variety of services. These services include the financial investigation of the Receivership entities, operation of the Receivership assets and accounting for the Receivership estate. 3. This application seeks the Court's approval of the fees and expenses incurred by the Receiver, MHKH and UHY for the time period of August 1, 2011 through October 31, This application is being filed to comply with the policies governing receivers associated with the Securities and Exchange Commission. SUMMARY OF WORK OF THE RECEIVER AND PROFESSIONALS TO DATE 4. A Preliminary Report (Dkt. 25) was filed by the Receiver on September 27, Shortly thereafter, a Second Interim Report was filed on November 4, These reports more fully describe the work and accomplishments of the Receiver to date. 5. Beginning on August 2, 2011, and within hours of appointment of the Receiver by this Court, the Receiver s agents arrived at the corporate offices of J. David Financial Group LP in Friendswood, Texas and Select Asset Management LLC in Houston, Texas. In general, since this time, the following has occurred: a. Securing of all premises and records, both physical and electronic, and the initiation of a review of the files in place to obtain an understanding of general-record keeping methods and files available. The business premises on Washington Avenue in Houston and Edgewood Drive in Friendswood have been closed and all documents, computers and other business materials have been moved to a secure location at the Receiver's office; RECEIVER S FIRST INTERIM APPLICATION TO ALLOW AND PAY(1) RECEIVER S FEES AND EXPENSES, (2) ATTORNEY S FEES AND EXPENSES, (3) OTHER PROFESSIONAL FEES AND EXPENSES, AND PROPOSED METHOD FOR FUTURE PAYMENTS AND BRIEF IN SUPPORT - PAGE 2 of 15

3 Case 4:11-cv Document 41 Filed in TXSD on 11/14/11 Page 3 of 15 b. Interview of available key former employees, some multiple times, to gain information regarding the assets, status of same, and current issues; c. Initial inventory, inspection, and preliminary investigation to understand all assets, the Defendants' relationship to those assets, and all legal documents related to the same; d. Re-open and daily operation of the Parkway Pawn business to facilitate loan payments, recovery of property and maintenance of the continuing business of Parkway Pawn to satisfy the demands of the regulatory agencies of the State of Texas over pawn shops. The Receiver has also worked with the Office of Consumer Credit for the State of Texas to facilitate the change of official ownership of the pawn shop into the name of the Receiver so as to facilitate the sale of the business in the months to come; e. Preliminary evaluation of the assets held by the Receivership entities, including, but not limited to, initiating the process to determine actual market value of the assets, quantifying the debt on certain assets and notice to all lenders of the Receivership so as to protect the assets from any kind of claim or foreclosure; f. Request and obtain access through the Secret Service to all financial information available, contact financial institutions to freeze all identified bank accounts and transfer frozen money to accounts maintained by the Receiver. The Receiver has either requested or subpoenaed all bank statements dating back to 2004 for all bank accounts used by the entities involved in the Receivership so as to facilitate a complete forensic accounting. This process is slow due to the policies of the financial institutions and the length of time in issue; g. Through both the investigation and the claims process, begin to determine the actual extent of liabilities to creditors, mortgage holders and investors; h. Devise an appropriate claims process, prepare and file a motion to obtain Court approval for a claims process, claims manager and claim form, obtain an order approving RECEIVER S FIRST INTERIM APPLICATION TO ALLOW AND PAY(1) RECEIVER S FEES AND EXPENSES, (2) ATTORNEY S FEES AND EXPENSES, (3) OTHER PROFESSIONAL FEES AND EXPENSES, AND PROPOSED METHOD FOR FUTURE PAYMENTS AND BRIEF IN SUPPORT - PAGE 3 of 15

4 Case 4:11-cv Document 41 Filed in TXSD on 11/14/11 Page 4 of 15 the process and forms and begin the process of accepting and reviewing claims. The Receiver was substantially delayed in getting what is believed to be a complete mailing list of all investors due to confusion as to the location of the list and passwords that protected the computer system containing the list. A list has been obtained and claim forms will be mailed in the near future; i. Establish within a few days of the Receiver s appointment an information website ( for all interested investors, creditors and others with regard to the status of the Receivership and to provide for on-going communications, updated pleadings filed in the proceeding and an address for questions an inquiries; j. Secure the services of a broker/property consultant to evaluate and market all real estate assets of the Receivership; k. Search for, obtain and contact all insurance companies that have issued policies on the life of J. David Salinas, provide them with copies of the TRO/ Freeze Order and Order Appointing Receiver and initiate and continue communications with these insurers with regard to their policies and claims to be made under the policies. The Receiver has filed claims on $12,900, in death benefits for receipt by the Receivership and collected the sum of $12,747, (including interest). The Receiver has maintained efforts to communicate with the insurance companies to satisfy their requirements and gather the information necessary to file on the remaining death benefits. Some of the death benefits were transferred by J. David Salinas a few weeks before his death to individuals who he apparently knew during his life time. Requests have been made on those purported beneficiaries to disclaim their interest in these last minute transfers and most of those to whom the transfers were made have cooperated with the Receiver and returned those interests so as to avoid the time and expense of asserting claims for fraudulent transfers and other claw back remedies available to the Receiver. Some of the purported beneficiaries, although cooperating, have requested information from the Receiver that will be provided as soon as the forensic accounting is completed.; RECEIVER S FIRST INTERIM APPLICATION TO ALLOW AND PAY(1) RECEIVER S FEES AND EXPENSES, (2) ATTORNEY S FEES AND EXPENSES, (3) OTHER PROFESSIONAL FEES AND EXPENSES, AND PROPOSED METHOD FOR FUTURE PAYMENTS AND BRIEF IN SUPPORT - PAGE 4 of 15

5 Case 4:11-cv Document 41 Filed in TXSD on 11/14/11 Page 5 of 15 l. Employ the services of an accountant for the Receivership to be responsible for all accounting of the funds received and disbursed as well as forensic accounting with respect to the records of the Defendants; m. Move the court for permission to employ an experienced claims manager for all investor and creditor claims to be made in the Receivership claims process; n. Begin the process of understanding the wills and trust associated with the Estate of J. David Salinas and meet with the family of J. David Salinas and their counsel to discuss the overall situation. This process has been substantially slowed by the delay experienced in the probate court in Galveston County and its appointment of the Executrix of the estate of J. David Salinas. It is believed that this appointment will happen the first week of November and that substantial progress can be made on resolving the different interests of the Executrix and the Receiver with regard to the assets of the Estate of J. David Salinas thereafter. o. Accomplish control of all mail to the various entities associated with the receivership, review and respond to mail as needed; p. Travel to and meet with the representative of Select Asset Capital Management to review all loans in Fund I and the Prime Fund and map out strategies for collection of those loans; and q. The financial results of the work of the Receiver are shown in a form, known as an "SFAR", which is provided by the Securities and Exchange Commission and is attached herein as Exhibit "A". 6. The work of the Receiver and his counsel during this period has been to continue to stabilize and put in motion the wide variety of actions necessary to address the diverse set of assets and liabilities posed by this situation. During the period covered by this application, the Receiver has incurred fees and expenses with respect to his activities as Receiver and with respect to MHKH as follows: RECEIVER S FIRST INTERIM APPLICATION TO ALLOW AND PAY(1) RECEIVER S FEES AND EXPENSES, (2) ATTORNEY S FEES AND EXPENSES, (3) OTHER PROFESSIONAL FEES AND EXPENSES, AND PROPOSED METHOD FOR FUTURE PAYMENTS AND BRIEF IN SUPPORT - PAGE 5 of 15

6 Case 4:11-cv Document 41 Filed in TXSD on 11/14/11 Page 6 of 15 Period Hours Fees Expenses 8/01/2011 8/31/ $137, $6, /01/2011 9/30/ , , /01/ /31/ , , TOTALS 1, $298, $9, Exhibit "B," which is attached and incorporated herein by reference for all purposes, conveys the following information for the time period of August 1, 2011 through October 31, 2011: a. The number of hours worked by each attorney and staff member on a particular day; b. The work performed by each attorney and staff member; c. The rates for each person rendering service in this matter (all of which represent at least a 10% discount from the firm's standard rates), and the involvement of the Receiver and MHKH attorneys and staff in this case during the period covered by this application during which a total of more than 1,104 hours of attorney, staff and Receiver time has been expended. For this period, the Receiver's fees average a blended rate of approximately $ an hour. 8. In addition to the work of the Receiver and his counsel, the Receiver has principally employed UHY as accountants to serve the Receivership. Their work can generally be described as: Taking strategic control of the Defendants' offices and accounting records located in numerous locations; Conducting interviews of key employees and evaluating necessary ongoing support and integrity of administrative functions; Evaluating the Receivership entities' accounting data; Analyzing and monitoring ongoing operational cash requirements needed and budgetary and accounting controls over operating entities; RECEIVER S FIRST INTERIM APPLICATION TO ALLOW AND PAY(1) RECEIVER S FEES AND EXPENSES, (2) ATTORNEY S FEES AND EXPENSES, (3) OTHER PROFESSIONAL FEES AND EXPENSES, AND PROPOSED METHOD FOR FUTURE PAYMENTS AND BRIEF IN SUPPORT - PAGE 6 of 15

7 Case 4:11-cv Document 41 Filed in TXSD on 11/14/11 Page 7 of 15 Identifying and marshalling property of the estate and assets purchased for insiders and third parties with investor funds; Preparing interim reports of operations and asset recoveries and reports for the Receiver; and Reconstructing cash activity for all entities and development of an investor database for evaluating investor claims. The fees and expenses incurred during the Period with respect to UHY are as follows: Period Hours Fees Expenses Totals 8/01/2011 8/31/ $34, $ $34, /01/2011 9/30/ $69, $ $69, /01/ /31/ $50, $ $51, TOTALS $154, $1, $155, Exhibit "C," which is attached and incorporated herein by reference for all purposes, conveys the following information for the time period of August 1, 2011 through October 31, 2011: on a particular day; a. The number of hours worked by each UHY accountant and staff member b. The work performed by each accountant and staff member; c. The rates for each person rendering service in this matter, and involvement of UHY and staff in this case during the period covered by this application during which a total of more than 875 hours of UHY and staff time have been expended. UHY has provided services to the Receivership at a blended rate of approximately $175 an hour. JOHNSON FACTORS 10. In support of this request for allowance of compensation and reimbursement of expenses, the Receiver and MHKH respectfully direct this Court's attention to those factors generally considered by Courts in awarding compensation to professionals for services performed in connection with the administration of a receivership estate. As stated by the Sixth Circuit Court of Appeals in Reed v. Rhodes, 179 F.3rd 453, 471 (6th Cir. 1999), "The primary RECEIVER S FIRST INTERIM APPLICATION TO ALLOW AND PAY(1) RECEIVER S FEES AND EXPENSES, (2) ATTORNEY S FEES AND EXPENSES, (3) OTHER PROFESSIONAL FEES AND EXPENSES, AND PROPOSED METHOD FOR FUTURE PAYMENTS AND BRIEF IN SUPPORT - PAGE 7 of 15

8 Case 4:11-cv Document 41 Filed in TXSD on 11/14/11 Page 8 of 15 concern in an attorney's fee case is that the fee awarded be reasonable." See Blum v. Stenson, 465 U.S. 886, 893 (1984). A reasonable fee is "one that is adequate to attract competent counsel " Id. (internal citation omitted). Under the twelve factor test enunciated by the Fifth Circuit in Johnson v. Georgia Hwy. Express, Inc., 488 F.2d 714, 717 (5th Cir. 1974), and adopted by the Supreme Court in Hensley v. Eckerhart, 461 U.S. 424, 432 (1983), a court must first determine the loadstar amount by multiplying the reasonable number of hours billed by a reasonable billing rate. Johnson, 488 F.2d at 717. That amount can then be adjusted by the "Johnson Factors". Those factors as applied to the services rendered in this case by the Receiver, MHKH and UHY are addressed below: a. The time and labor required. The Receiver, MHKH and UHY respectfully refer the Court's attention to their itemized billings which details the involvement of the Receiver, MHKH attorneys and the accountants in this case during the period covered by this application during which a total of more than 1,104 hours of attorney, staff and Receiver time has been expended and more than 875 hours of accountant and accounting staff time has been expended. b. The novelty and difficulty of the questions. Many of the tasks involve factual and legal questions which are of substantial complexity. The issues associated with originally eight separate pieces of real estate, the poor condition of the real estate market, the estate of the principal now deceased, possible fraudulent transfers, collection of insurance proceeds, the great concern of the investors for their potential losses and the daily operation and management of three businesses has presented many novel and difficult operating issues as well as legal and factual questions. The issues are ever changing. The Receiver and MHKH have had to become knowledgeable and keep current of daily ongoing events. The issues require constant attention to the inquiries. RECEIVER S FIRST INTERIM APPLICATION TO ALLOW AND PAY(1) RECEIVER S FEES AND EXPENSES, (2) ATTORNEY S FEES AND EXPENSES, (3) OTHER PROFESSIONAL FEES AND EXPENSES, AND PROPOSED METHOD FOR FUTURE PAYMENTS AND BRIEF IN SUPPORT - PAGE 8 of 15

9 Case 4:11-cv Document 41 Filed in TXSD on 11/14/11 Page 9 of 15 c. The requisite skill to perform the service. The Receiver believes that the services performed in this case have required individuals possessing considerable experience in business transactions, investment fraud, insurance, workouts, litigation, tax, equity receiverships, real estate, lending, negotiation and liquidations. The Receiver, MHKH and UHY have considerable experience in these areas. d. The preclusion of other employment due to the acceptance of the case. The Receiver, MHKH and UHY have not declined any representation solely because of their services as Receiver, counsel or accountant for the Receiver. e. The customary fee. The hourly rates sought herein are at least commensurate with the rates charged by other practitioners of similar experience levels in the Southern District of Texas. In the case of the Receiver and his counsel, the rates are below their standard hourly rates. During the time period covered by this application, the following lawyers at MHKH have performed legal services on behalf of the Receiver with respect to these proceedings. Steven A. Harr (Receiver) Dennis Roossien (Receiver s Lead Counsel) Walter Buchanan (corporate issues) Christopher Speer (tax issues) Leona Hammill (real estate issues) Michael Harvey (general issues) Randy Canche (general issues) $ per hour Licensed in Texas in 1980 and admitted to practice law before all state and federal courts in the State of Texas. $ per hour Licensed in Texas in 1992 and admitted to practice before all state and federal courts in the State of Texas. $ per hour Licensed in Texas in 2005 and admitted to practice law before all state courts in the State of Texas. $ per hour Licensed in Texas in 1993 and admitted to practice law before all state courts in the State of Texas. $ per hour Licensed in Texas in 2006 and admitted to practice law before all state courts in the State of Texas. $ per hour Licensed in Texas in 2007 and admitted to practice law before all state and federal courts in the State of Texas. $ per hour Licensed in Texas in 2005 and admitted to practice law before all state and federal courts in the State of Texas. RECEIVER S FIRST INTERIM APPLICATION TO ALLOW AND PAY(1) RECEIVER S FEES AND EXPENSES, (2) ATTORNEY S FEES AND EXPENSES, (3) OTHER PROFESSIONAL FEES AND EXPENSES, AND PROPOSED METHOD FOR FUTURE PAYMENTS AND BRIEF IN SUPPORT - PAGE 9 of 15

10 Case 4:11-cv Document 41 Filed in TXSD on 11/14/11 Page 10 of 15 Sameer Karim (general issues) Christopher DeMeo (general issues) James Ketchum (real estate issues) Erreka Campbell (general issues) Steven Caufield (real estate issues) Timothy Million (general issues) $ per hour Licensed in Texas in 2011 and admitted to practice law before all state courts in the State of Texas. $ per hour Licensed in Texas in 1996 and admitted to practice before all state and federal courts in the State of Texas. $ per hour Licensed in Texas in 2003 and admitted to practice law before all state courts in the State of Texas. $ per hour Licensed in Texas in 2011 and admitted to practice law before all state courts in the State of Texas. $ per hour Licensed in Texas in 2007 and admitted to practice law before all state courts in the State of Texas. $ per hour Licensed in Texas in 2005 and admitted to practice law before all state and federal courts in the State of Texas. Additionally, the following paralegals and timekeepers assisted with the work performed: Mary Jo Martin (paralegal handling the majority of the investor questions and concerns) Tere Robinson (limited involvement in receivership issues) $ per hour Rendered valuable service in connection with the communications with investors and responding to investor contact and maintenance of all information posted on the Receiver's website. $ per hour Rendered assistance with general receivership issues. f. Whether the fee is fixed or contingent. The Receiver, MHKH and UHY's fees are fixed insofar as monies exist by way of Receivership assets from which to pay such fees. Payment of such fees, however, is subject to Court approval. g. Time limitations imposed by the Client or other circumstances. The time requirements during the period covered by this application have been substantial. The Receiver and his staff are constantly addressing the issues associated with the assets, responding to investors, addressing new issues presented and their affect on the investors, monitoring and updating the Receiver's website, and attending to voic communications, investor responses and reporting information as necessary to the Court. RECEIVER S FIRST INTERIM APPLICATION TO ALLOW AND PAY(1) RECEIVER S FEES AND EXPENSES, (2) ATTORNEY S FEES AND EXPENSES, (3) OTHER PROFESSIONAL FEES AND EXPENSES, AND PROPOSED METHOD FOR FUTURE PAYMENTS AND BRIEF IN SUPPORT - PAGE 10 of 15

11 Case 4:11-cv Document 41 Filed in TXSD on 11/14/11 Page 11 of 15 h. The amount involved and the results obtained. During the period covered by this application, the Receiver and his lawyers and paralegals have handled the following matters: 1. Interview of available key employees, some multiple times, to gain information regarding the assets and their status and other current issues; 2. Continue to review as needed the legal documents regarding the assets of the Receivership and position of the related entities with respect to those assets; 3. Continue to stabilize and operate three operating businesses, including, but not limited to, addressing negative cash flows, insurance and benefits issues, unpaid lender s concerns, unpaid vendors and negotiating appropriate contracts with employees and third-parties; 4. Identify and evaluate assets held by the Receivership entities, including, but not limited to, initiating a determination of the actual market value of most of the assets, evaluating whether the debt on certain assets exceeds the value and can not be sustained and determining whether certain assets could be sold to provide a return to the investors; 5. Evaluate whether adequate financial information was available to determine the actual extent of liabilities to creditors and investors, devise an appropriate claims process and prepare a motion to obtain Court approval for a claims process and form; 6. Establish within a few days of the Receiver s appointment an information website for all interested investors, creditors and others to provide for on-going communications, updated pleadings filed in the proceeding, and an address for questions and inquiries; 7. Secure the services of a broker/property consultant to evaluate, lease or list and market all real estate assets of the Receivership and deal with interested RECEIVER S FIRST INTERIM APPLICATION TO ALLOW AND PAY(1) RECEIVER S FEES AND EXPENSES, (2) ATTORNEY S FEES AND EXPENSES, (3) OTHER PROFESSIONAL FEES AND EXPENSES, AND PROPOSED METHOD FOR FUTURE PAYMENTS AND BRIEF IN SUPPORT - PAGE 11 of 15

12 Case 4:11-cv Document 41 Filed in TXSD on 11/14/11 Page 12 of 15 buyers, in an effort to sell the assets at prices that exceed the debts against them so as to create some value for the investors; 8. Establish bank accounts for the Receivership and some of the operating businesses within the Receivership; 9. Interview and establish means for communications with Robbin Salinas, Christopher Salinas and Sarah Hail and investigate a potential property settlement with Robbin Salinas as Executrix of the Estate of Joel David Salinas; 10. Determine which assets are of no value to the Receivership to position the Receiver to move to abandon any interest in them, so as to avoid on going costs associated with ownership; 11. Invest a substantial amount of time in the evaluation and collection of insurance proceeds on the life of Joel David Salinas resulting in the collection of $12,747, (including interest) with the expectation of collecting another $2,865, in the future; Court and investors; from investors on claims issues; 12. Prepare and file a Preliminary and Second Interim report for the 13. Respond to and assist with numerous and constant questions 14. Manage all real property and personal property remaining using staff of the law firm at minimal cost in most cases to the estate; 15. Respond to and provide information from the records of the estate to the Secret Service and United States Attorney as requested; i. The experience, reputation and ability of the attorneys. MHKH is a broadbased commercial firm with vast experience in the handling of matters generally related to civil trial law, dispute resolution, bankruptcy, corporate, real estate and general workout matters. RECEIVER S FIRST INTERIM APPLICATION TO ALLOW AND PAY(1) RECEIVER S FEES AND EXPENSES, (2) ATTORNEY S FEES AND EXPENSES, (3) OTHER PROFESSIONAL FEES AND EXPENSES, AND PROPOSED METHOD FOR FUTURE PAYMENTS AND BRIEF IN SUPPORT - PAGE 12 of 15

13 Case 4:11-cv Document 41 Filed in TXSD on 11/14/11 Page 13 of 15 The practice of the attorneys specifically in this case regularly includes the representation of investors and other persons involved in business transactions in which the investors or other parties are victims or aggrieved in some fashion. Receiver and other attorneys at MHKH have also served as Receiver and counsel in other large SEC Receiverships involving investor fraud on a worldwide basis. The reputation of the Receiver and MHKH attorneys is recognized and respected in their community in Texas. j. The undesirability of the case. The service as Receiver and the representation of the Receiver incident to this case has not been undesirable. k. The nature and length of the professional relationship with the client. MHKH did not represent the Receiver in these proceedings prior to being retained in these proceedings. l. Award in similar cases. MHKH believes that the fees requested in this case are less than or equal to those which have been awarded in similar cases in this district. METHOD FOR FUTURE PAYMENTS 11. The Receiver and UHY work constantly on this matter to secure the assets, build a fund for investor reimbursement, investigate the historical financial background so as to provide a basis for evaluating claims both against the Receivership and those that the Receiver may have to pursue, monitor the claims process and generally attend to the issues so as to bring this matter to a close as efficiently as possible. Each month the cost of this operation is meaningful to these firms. The Receiver moves this Court to empower the Receiver to pay the ongoing fees and expenses of MHKH, UHY and any other professional that is employed in the future under the following terms: a. Monthly payment of 90% of the professionals itemized fee statements plus all expenses with a hold back of 10% of the fees; RECEIVER S FIRST INTERIM APPLICATION TO ALLOW AND PAY(1) RECEIVER S FEES AND EXPENSES, (2) ATTORNEY S FEES AND EXPENSES, (3) OTHER PROFESSIONAL FEES AND EXPENSES, AND PROPOSED METHOD FOR FUTURE PAYMENTS AND BRIEF IN SUPPORT - PAGE 13 of 15

14 Case 4:11-cv Document 41 Filed in TXSD on 11/14/11 Page 14 of 15 b. Submission of quarterly fee applications for approval by the Securities and Exchange Commission and the Court seeking approval of the payment of all fees and expenses and allowing for the quarterly payment of the 10% holdback; c. Payment of the 10% hold back only on order of the Court. SEC CERTIFICATION 12. I have read the Application and to the best of my knowledge, information and belief formed after reasonable inquiry, the Application and all fees and expenses therein are true and accurate and comply with the Billing Instructions (with any exceptions specifically noted in the Certification and described in the Application); all fees contained in the Application are based on the rates listed in the Applicant s fee schedule attached hereto and such fees are reasonable, necessary and commensurate with the skill and experience required for the activity performed; the Application has not included in the amount for which reimbursement is sought the amortization of the cost of any investment, equipment, or capital outlay (except to the extent that any such amortization is included within the permitted allowable amounts set forth herein for photocopies and facsimile transmission); and, in seeking reimbursement for a service which the Applicant justifiably purchased or contracted for from a third party (such as copying, imagining, bulk mail, messenger service, overnight courier, computerized research, or title and lien searches), the Applicant requests reimbursement only for the amount billed to the Applicant by the third-party vendor and paid by the Applicant to such vendor. If such services are performed by the receiver, the receiver will certify that it is not making a profit on such reimbursable service. 13. Pursuant to Local Rule CV-7, the Receiver advises the Court that the Plaintiff Securities and Exchange Commission has no objection to the relief requested in this Motion. WHEREFORE, PREMISES CONSIDERED, the Receiver requests that this Court approve all of the fees and expenses as set forth herein, the method for payment of future RECEIVER S FIRST INTERIM APPLICATION TO ALLOW AND PAY(1) RECEIVER S FEES AND EXPENSES, (2) ATTORNEY S FEES AND EXPENSES, (3) OTHER PROFESSIONAL FEES AND EXPENSES, AND PROPOSED METHOD FOR FUTURE PAYMENTS AND BRIEF IN SUPPORT - PAGE 14 of 15

15 Case 4:11-cv Document 41 Filed in TXSD on 11/14/11 Page 15 of 15 professional expenses and for such other and further relief, general and special, at law or in equity, to which the Receiver, MHKH and UHY may show themselves justly entitled. Dated: November 14, Respectfully submitted, MUNSCH HARDT KOPF & HARR, P.C. 700 Louisiana Suite 4600 Houston TX (713) (phone) (713) (facsimile) By: /s/ Steven A. Harr Steven A. Harr ATTORNEYS FOR THE RECEIVER CERTIFICATE OF SERVICE I certify that a copy of the foregoing was filed electronically with the Clerk via the CM/ECF system. Notice of this filing will be sent to all parties by operation of the Court s electronic filing system. Houston, Texas, this 14 th day of November By: /s/ Steven A. Harr Steven A. Harr RECEIVER S FIRST INTERIM APPLICATION TO ALLOW AND PAY(1) RECEIVER S FEES AND EXPENSES, (2) ATTORNEY S FEES AND EXPENSES, (3) OTHER PROFESSIONAL FEES AND EXPENSES, AND PROPOSED METHOD FOR FUTURE PAYMENTS AND BRIEF IN SUPPORT - PAGE 15 of 15 MHDocs _

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261 Case 4:11-cv Document 41-6 Filed in TXSD on 11/14/11 Page 1 of 1 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION SECURITIES AND EXCHANGE COMMISSION, PLAINTIFF, vs. BRIAN A. BJORK, THE ESTATE OF JOEL DAVID SALINAS, J. DAVID GROUP OF COMPANIES, INC., J. DAVID FINANCIAL GROUP LP, SELECT ASSET MANAGEMENT LLC, SELECT ASSET CAPITAL MANAGEMENT LLC, SELECT ASSET FUND I, LLC, AND SELECT ASSET PRIME INDEX FUND, LLC. DEFENDANTS. CIVIL ACTION NO. 4:11 CV ORDER GRANTING FIRST INTERIM APPLICATION TO ALLOW AND PAY (1) RECEIVER'S FEES AND EXPENSES, (2) ATTORNEY'S FEES AND EXPENSES, (3) OTHER PROFESSIONAL FEES AND EXPENSES AND PROPOSED METHOD FOR FUTURE PAYMENTS This matter is before the Court on the Receiver s Unopposed First Interim Application to Allow and Pay (1) Receiver's Fees and Expenses, (2) Attorney's Fees and Expenses, (3) Other Professional Fees and Expenses, Proposed Method for Future Payments (the Motion ). The Plaintiff and Defendants agree to the relief requested. The Court is of the opinion that the Receiver s Motion is well-taken and it is GRANTED. IT IS HEREBY ORDERED that the Receiver's First Interim Application to Allow and Pay Fees and Expenses is GRANTED and the proposed method for future payments is APPROVED. SIGNED this day of, ORDER Solo MHDocs _ UNITED STATES DISTRICT JUDGE