Case 16-20516-AJC Doc 28 Filed 08/29/16 Page 1 of 4 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF FLORIDA MIAMI DIVISION IN RE: Case No. 16-20516-AJC PROVIDENCE FINANCIAL Chapter 7 INVESTMENTS, INC. Debtor. TRUSTEE'S EX PARTE APPLICATION TO EMPLOY JULIE H. FIRESTONE, ESQ. AND THE LAW FIRM OF BRIGGS AND MORGAN AS SPECIAL COUNSEL NUNC PRO TUNC TO AUGUST 5,2016 Maria Yip, the Chapter 7 Trustee (the "Trustee"), for the estate of Providence Financial Investments, Inc. (the "Debtor"), respectfully requests an order of the court authorizing the employment of Julie H. Firestone, Esq. and the law firm of Briggs and Morgan, Professional Association ("Briggs and Morgan"), to represent the Trustee as special counsel in this case and states: 1. On July 28, 2016, the Debtor filed a voluntary petition for relief under Chapter 7 of title 11 of the United States Code. 2. A concurrent proceeding styled as SEC v. Providence Fin. Inc. Inc., et al., Case No. 16-cv-1877, is pending before the United States District Court for the District of Michigan (the "District Court Action"). 3, The Trustee believes that employment of Julie H. Firestone, Esq. and the law firm of Briggs and Morgan ("Special Counsel") as local counsel in the District Court Action to be in the best interest of the Estate. 4. The Trustee has selected Special Counsel for its considerable experience in matters involving the SEC and regulatory investigation and enforcement. The Trustee believes (38932395;1}
Case 16-20516-AJC Doc 28 Filed 08/29/16 Page 2 of 4 that Special Counsel is well qualified to serve as local counsel to the Trustee in the District Court Action. 5. The Trustee believes that Special Counsel does not hold or represent any interest that is adverse to the Debtor or to the Estate, with respect to the matter on which Special Counsel is to be employed. 6. Attached to this motion is the proposed Special Counsel's affidavit disclosing Special Counsel's possible conflicts, if any, and otherwise demonstrating that Julie H. Firestone, Esq. and the law firm of Briggs and Morgan are disinterested as required by 11 U.S.C. 327 and a verified statement as required under FRBP 2014. 7. Special Counsel has agreed to be compensated in accordance with U.S.C. 330. 8. The professional services that Special Counsel will render are summarized as follows: (a) (b) to represent the Trustee as local counsel in the District Court Action; to prepare and review motions, pleadings, orders, applications, adversary proceedings, and other legal documents arising in the District Court Action; and (c) to perform all other legal services for the Trustee in the District Court Action which may be necessary therein. 9. Based on the foregoing services required, it is necessary for the Trustee to employ Special Counsel to perform such professional services at the following hourly rates: Julie H. Firestone has agreed to be compensated at an hourly rate of $425.00 per hour. 10. To the best of the Trustee's knowledge, neither attorney Firestone nor Briggs and Morgan hold or represent any interest that is adverse to the Debtor or to the Estate, with respect {38932395;1}
Case 16-20516-AJC Doc 28 Filed 08/29/16 Page 3 of 4 to the matter on which Special Counsel is to be employed, and are therefore disinterested, as evidenced by the Affidavit attached hereto. 11. Because of the legal services required, the Trustee desires to employ Special Counsel under a general retainer. 12. The Trustee believes that the retention of Special Counsel is in the best interest of the Estate. 13. The Trustee believes that Special Counsel is qualified to advise the Trustee with respect to the professional services detailed herein. WHEREFORE, the Trustee respectfully request an Order authorizing the employment of Julie H. Firestone, Esq. and the law firm Briggs and Morgan, Professional Association to represent the Trustee, nunc pro tunc to August 5, 2016 pursuant to 11 U.S.C. 327 and 330. Dated: August 29, 2016 Respectfully submitted, AKER1VIAN LLP Las Olas Centre II, Suite 1600 350 East Las Olas Boulevard Fort Lauderdale, FL 33301-2229 Phone: (954) 463-2700 Fax: (954) 463-2224 By: /s/ Catherine E. Douglas Eyal Berger Florida Bar No. 11069 eyal.berger@akerman.com Catherine E. Douglas, Esq. Florida Bar No. 85843 catherine.douglas@akerman.com (38932395;!)
Case 16-20516-AJC Doc 28 Filed 08/29/16 Page 4 of 4 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on August 29, 2016, I electronically filed the foregoing document with the Clerk of the Court using CM/ECF. I also certify that the foregoing document is being served this day by transmission of Notices of Electronic Filing generated by CM/ECF and/or U.S. Mail to those parties registered to receive electronic notices of filing in this case, as listed in the below service list. SERVICE LIST 16-20516-AJC Notice will be electronically mailed to: Eyal Berger, Esq. on behalf of Trustee Maria Yip eyal.berger@akertnan.com, jeanette.martinez@akerman.com Joan M Levit, Esq on behalf of Trustee Maria Yip joan.levit@akerman.com, charlene.cerda@akerman.com By: /s/ Catherine E. Douglas Catherine E. Douglas, Esq. James B Miller, Esq on behalf of Debtor Providence Financial Investments, Inc. bkcmiami@gmail.com Office of the US Trustee USTPRegion21.MM.ECF@usdoj.gov Susan R Sherrill-Beard, Esq on behalf of Creditor U.S. Securities and Exchange Commission sherrill-beards@sec.gov, atlreorg@sec.gov;berlina@sec.gov;martinc@sec.gov Maria Yip trustee@yipcpa.com, myip@ecf.epiqsystems.com Maria Yip on behalf of Trustee Maria Yip trustee@yipcpa.com, myip@ecf.epiqsystems.com 16-20516-AJC Notice will not be electronically mailed to: Thomas De Araujo 2 S Biscayne Blvd #2690 Miami, FL 33131 {38932395;1}
Case 16-20516-AJC Doc 28-1 Filed 08/29/16 Page 1 of 3 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF FLORIDA FORT LAUDERDALE DIVISION IN RE: PROVIDENCE FINANCIAL INVESTMENTS, INC. Case No. 16-20516-AJC Chapter 7 Debtor. AFFIDAVIT OF DISINTERESTEDNESS OF PROPOSED SPECIAL COUNSEL FOR CHAPTER 7 TRUSTEE STATE OF MINNESOTA ) ) SS: COUNTY OF HENNEPIN ) BEFORE ME, the undersigned authority, personally appeared Julie H. Firestone, in Minneapolis, Minnesota, who after being duly sworn, deposes and says as follows: 1. I am an attorney admitted to practice in the State of Mitmesota and the United States District Court for the District of Michigan. 2. I am a shareholder with the law firm of Briggs and Morgan, Professional Association ("Briggs and Morgan") with offices located at 2200 IDS Center, 80 South Eighth Street, Minneapolis, Minnesota, 55402. I am familiar with the matters set forth herein and make this Affidavit in support of the Trustee's Application to Employ Julie H Firestone and Briggs and Morgan, Professional Association as Special Counsel Nunc Pro Tunc (the "Application"). 3. Neither Briggs and Morgan nor I represent any interest adverse to the Chapter 7 Trustee (the "Trustee") or the Estate and we are disinterested persons as required by 11 U.S.C. 327 in the matters upon which we are to be engaged. {38950973;!} 1
Case 16-20516-AJC Doc 28-1 Filed 08/29/16 Page 2 of 3 4. Neither Briggs and Morgan nor I will represent any other entity in connection with this case and neither I nor the firm will accept any fee from any other party or parties in this case, except the Chapter 7 Trustee, unless otherwise authorized by the Court. 5. Except for the continuing representation of the Trustee and as otherwise disclosed herein, neither I nor Briggs and Morgan hold any connections with the Debtor, creditors, any other party in interest, their respective attorneys, accountants, the US Trustee, or any person employed by the Office of the U.S. Trustee as required by F.R.B.P. 2014. 6. Briggs and Morgan maintains a computerized conflicts check system. Briggs and Morgan has compared the information obtained thereby with the information contained in its client and adverse party conflict check system. The facts stated in this Affidavit as to the relationship between Briggs and Morgan and the Debtor, the Debtor's creditors, the United States Trustee, other persons employed by the Office of the United States Trustee, and those persons and entities who are defined as disinterested persons in Section 101(4) of the Bankruptcy Code, are based on the results of my review of Briggs and Morgan's conflict check system. Based upon such search, Briggs and Morgan does not represent any entity in any matter involving or adverse to the Trustee or which would constitute a conflict of interest or impair the disinterestedness of Briggs and Morgan in respect to the matters upon which the Trustee proposes to engage Briggs and Morgan to represent it herein. 7. Briggs and Morgan's client and adverse party conflicts check system is comprised of records regularly maintained in the business of the firm and it is the regular practice of the firm to make and maintain those records. The system reflects entries that are noted in the system at the time the information becomes known by persons who regular duties include recording and {38950973;!} 2
Case 16-20516-AJC Doc 28-1 Filed 08/29/16 Page 3 of 3 maintaining this information. I regularly use and rely upon the information eontained in the system in the performanee of my duties with Briggs and Morgan and in my praetiee of law. 8. A seareh of Briggs and Morgan's eonfliets eheek system did not reveal any matters impairing my or Briggs and Morgan's disinterestedness in respect to the matters upon which the Trustee proposes to engage Briggs and Morgan to represent it herein. 9. The professional fees and costs incurred by Briggs and Morgan in the course of its representation of the Trustee shall be subject in all respects to the application and notice requirements of 11 U.S.C. 330 and 331 and F.R.B.P. 2014 and 2016. 10. I am the attorney principally working on this matter, and I have reduced my hourly rate to $425. 11. There is no agreement of any nature, other than the shareholder agreement of our firm, as to the sharing of any compensation to be paid to the firm. No promises have been received by Briggs and Morgan, nor any member, or associate thereof, as to the compensation in connection with this case other than in accordance with the provisions of the Bankruptcy Code. 12. This concludes my declaration. FURTHER AFFIANT SAYETH NAUGHT. Julie H.'Tireitertf^^ SWORN TO AND SUBSCRIBED :ore me this ^^day of, 2016. NOTARY PUBLIC, STATE OF MINNESOTA By: Print Name: 'TJ L ^ 11 Commission No. 3ip29vil My Commission Expire; 1-3/- Mottiy P'lMc MlntveBoW {38950973;!} 3