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Full title: Supplemental Declaration of Eric Sternberger in in support of Second Interim Application of Ragghianti Freitas LLP for Allowance of Compensation and Reimbursement of Expenses Incurred as Special Counsel for Debtors (RE: related document(s)704 Application for Compensation). Filed by Debtor Professional Financial Investors, Inc. (Klinger, Matthew) (Entered: 08/03/2021)

Document posted on Aug 2, 2021 in the bankruptcy, 5 pages and 0 tables.

Bankrupt11 Summary (Automatically Generated)

eric@rflawllp.com 5 Counsel for Professional Financial Investors, Inc. and Professional Investors Security Fund, 6 Inc. UNITED STATES BANKRUPTCY COURT 7 NORTHERN DISTRICT OF CALIFORNIA, SAN FRANCISCO DIVISION 8 In re CaseSubsequent to the filing of the Application, the United States Trustee 8 expressed concern to the Applicant that (i) the Applicant lumped fees in certain billing 9 entries covered by the Application and (ii) the Application sought compensation for certai10 billing entries related to work performed to correct deficiencies in the Applicant’s first 11 interim fee application filed on January 21, 2021.As set forth in the detailed statement,14 the Applicant hereby waives $1,339.00 in fees sought in the Application, which results in 15 revised fee application for $50,854.10 in fees and $75.10 in expenses, for a total of 16 $50,929.20.Communication with the CRO 1.00 $515.00 Lumped time entries regarding the SEC’s desire to interview Jarek Romero and Lisa Cohen (.2); call with SMHR regarding the SEC’s desire to interview Jarek Romero and Lisa Cohen (.3); call with Phil McLeod to see if he would be willing to undertake the representation prior to the court order approving his fee application Unreasonable billing – work and revise time entries after (Waived) performed was to correct careful review of client deficiencies in the first interim records fee application.

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Document Contents

1 Eric Sternberger (Bar No. 202295) RAGGHIANTI FREITAS LLP 2 1101 Fifth Avenue, Suite 100 San Rafael, California 94901 3 Telephone: (415) 453-9433 Facsimile: (415) 453-8269 4 Email: eric@rflawllp.com 5 Counsel for Professional Financial Investors, Inc. and Professional Investors Security Fund, 6 Inc. UNITED STATES BANKRUPTCY COURT 7 NORTHERN DISTRICT OF CALIFORNIA, SAN FRANCISCO DIVISION 8 In re Case No. 20-30604 9 (Jointly Administered) PROFESSIONAL FINANCIAL 10 INVESTORS, INC., a California corporation, Chapter 11 et al., SUPPLEMENTAL DECLARATION OF 11 ERIC STERNBERGER IN SUPPORT OF Debtors. SECOND INTERIM APPLICATION OF 12 RAGGHIANTI FREITAS LLP FOR ALLOWANCE OF COMPENSATION 13 AND REIMBURSEMENT OF EXPENSES INCURRED AS SPECIAL COUNSEL FO 14 DEBTORS 15 Date: August 19, 2021 Time: 10:00 a.m. 16 Judge: Hannah L. Blumenstiel Place: Telephonic/Video Appearances Only 17 450 Golden Gate Ave., 16th Fl., Ctm. 19 16th Floor, Courtroom 19 18 San Francisco, CA 94102 19 I, Eric Sternberger, declare as follows: 20 1. I am attorney duly admitted to practice before this Court. I am an attorney 21 with the law firm of Ragghianti Freitas LLP (the “Applicant”), special counsel for 22 Professional Financial Investors, Inc. (“PFI”) and Professional Investors Security Fund 23 (“PISF,” and together with PFI, the “Debtors”) in the above-captioned jointly administere24 bankruptcy cases (the “Bankruptcy Cases”). 25 2. This supplemental declaration is provided in support of the Applicant’s 26 second interim application for allowance of compensation and reimbursement of expenses27 28

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1 filed on June 24, 2021, as Dkt. No. 704 (the “Application”). I give undefined capitalized 2 terms in this declaration the same meanings given to them in the Application. 3 3. I am authorized by the Applicant to make this supplemental declaration on 4 its behalf in support of the Application. Except for those statements made upon 5 information and belief, I have personal knowledge of the facts set forth herein and could 6 and would testify competently thereto if called upon as a witness. 7 4. Subsequent to the filing of the Application, the United States Trustee 8 expressed concern to the Applicant that (i) the Applicant lumped fees in certain billing 9 entries covered by the Application and (ii) the Application sought compensation for certai10 billing entries related to work performed to correct deficiencies in the Applicant’s first 11 interim fee application filed on January 21, 2021. 12 5. Attached to this supplemental declaration as Exhibit A is a detailed stateme13 responding to the United States Trustee’s concerns. As set forth in the detailed statement,14 the Applicant hereby waives $1,339.00 in fees sought in the Application, which results in 15 revised fee application for $50,854.10 in fees and $75.10 in expenses, for a total of 16 $50,929.20. 17 6. On July 23, 2021, I provided the detailed statement, attached hereto as 18 Exhibit A, to Ms. Elvina Rofael (“Ms. Rofael”) in the Office of the Unites States Trustee. 19 7. On July 26, 2021, Ms. Rofael responded that “[u]pon review, we [The Offic20 of the United States Trustee] have no further objections to Ragghianti Freitas LLP’s 21 second interim fee application at this time.” 22 I declare under the penalty of perjury under the laws of the United States of 23 America that the foregoing is true and correct. 24 Executed on August 2, 2021, at Marin County, California. 25 26 ___________________________ 27 Eric Sternberger, Esq 28

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1 2 EXHIBIT A 3 TO SUPPLEMENTAL DECLARATION IN SUPPORT OF FEE APPLICATION 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

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Ragghianti Freitas LLP Fee Application Date Description of Services Time Amount Comment Spent December 2020 12/8/2020 Communication with SEC 2.80 $1,442.00 Lumped time entriesregarding preservation of evidence letter and employee confirmations of receipt (.6); call with SEC (.6); communication with opposing counsel re same (.4); review client file to pull confirmation emails and transmit same to SEC (1.2). 12/30/2020 Communication with DOJ 0.60 $309.00 Lumped time entries regarding its request for a re- production of responses to it subpoena in a different format (.3); communication with Wilson Elser team regarding the possibility of meeting such a request (.3). January 2021 1/20/2021 Review billing records (.7); 3.00 $1,545.00 Lumped time entries review and revise draft motion and declaration and relevant exhibits to interim fee application (2.3). 1/22/2021 Communication with CRO 0.80 $412.00 Lumped time entries regarding Hunt Plaza (.3); review client files (.3) and send CRO the ‘19 appraisal (.2). February 2021 2/2/2021 Communication with the CRO 1.00 $515.00 Lumped time entries regarding the SEC’s desire to interview Jarek Romero and Lisa Cohen (.2); call with SMHR regarding the SEC’s desire to interview Jarek Romero and Lisa Cohen (.3); call with Phil McLeod to see if he would be willing to undertake the representation prior to the court order approving his fee application

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(.4); Email update and contact information to Phil & team (.1). 2/3/2021 Begin review of multiple 1.80 $927.00 Lumped time entries different assets that Lewis Wallach is ready to transfer (1.0); consider the timing and manner to accept the assets, and the logical order for transfer (.6); communication to Wallach’s counsel requesting updated financial statements related to the Jeserra assets (.2). 2/5/2021 Detailed review of Jeserra 3.80 $1,957.00 Lumped time entries related assets and financial statements, including dozens of loans that are the subject of fractionalized deeds of trust and multiple lots in TX, which are the subject of litigation (unpaid homeowners fees) (2.5); Review complaint (.6); Long phone call with plaintiff’s counsel regarding the TX litigation (.7) March 2021 3/3/2021 Review objection from trustee 1.80 $927.00 Unreasonable billing – work and revise time entries after (Waived) performed was to correct careful review of client deficiencies in the first interim records fee application. 3/4/2021 Final review and edit of time 0.80 $412.00 Unreasonable billing – work entries in response to trustee (Waived) performed was to correct objection; email same to deficiencies in the first interim trustee’s counsel fee application. Total Fees Waived: $1,339 for Work performed to correct deficiencies in the first interim application.

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