Houmand Fee Application

Case 16-16655-btb Doc 540 Entered 02/09/21 11:49:21 Page 1 of 19
1 Jacob L. Houmand, Esq. (NV Bar No. 12781) Electronically Filed On: February 9, 2021
Email: jhoumand@houmandlaw.com
2 Bradley G. Sims, Esq. (NV Bar No. 11713)
Email: bsims@houmandlaw.com
3 HOUMAND LAW FIRM, LTD.
9205 West Russell Road, Building 3, Suite 240
4 Las Vegas, NV 89148
Telephone: 702/720-3370
5 Facsimile: 702/720-3371
6 Counsel for Shelley D. Krohn, Chapter 7 Trustee
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8 UNITED STATES BANKRUPTCY COURT
9205 West Russell Road, Building 3, Suite 240 Las Vegas, NV 89148
9 DISTRICT OF NEVADA
Telephone: (702) 720-3370 Facsimile: (702) 720-3371
10 In re: Case No. BK-S-16-16655-BTB

Chapter 7
HOUMAND LAW FIRM, LTD.
11 ROBERT C. GRAHAM, LTD. fdba ROB

GRAHAM & ASSOCIATES fdba FIRST AND FINAL APPLICATION OF
12 LAWYERS WEST, HOUMAND LAW FIRM, LTD. FOR
ALLOWANCE OF COMPENSATION
13 Debtor. FOR SERVICES RENDERED DURING
14 THE PERIOD FROM DECEMBER 22,
2016 THROUGH FEBRUARY 8, 2021
15 AND FOR REIMBURSEMENT OF
EXPENSES PURSUANT TO 11 U.S.C. §§
16 330 AND 331 AND FEDERAL RULE OF
BANKRUPTCY PROCEDURE 2016
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18 Date of Hearing: March 9, 2021
Time of Hearing: 1:30 p.m.
19 Place: Courtroom No. 2, Second Floor
Foley Federal Building
20 300 Las Vegas Blvd., S.
Las Vegas, NV 89101
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22 Judge: Honorable Bruce T. Beesley
23 The Houmand Law Firm, Ltd. (the “Firm”), counsel of record for Shelley D. Krohn,
24 Chapter 7 Trustee in the above-captioned bankruptcy case (the “Trustee”), hereby submits its
25 First and Final Application of Houmand Law Firm, Ltd. for Allowance of Compensation for
26 Services Rendered During the Period From December 22, 2016 through February 8, 2021 and
27 For Reimbursement of Expenses Pursuant to 11 U.S.C. §§ 330 and 331 and Federal Rule of
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1 Bankruptcy Procedure 2016 (the “Fee Application”).1
2 The Fee Application is filed pursuant to Sections 330 and 331, FRBP 2016, the Guidelines
3 for Compensation and Reimbursement of Professionals in Region 17 as promulgated by the
4 Offices of the United States Trustee (the “Region 17 Guidelines”), and the Guidelines for
5 Reviewing Applications for Compensation and Reimbursement on Expenses Filed Under 11
6 U.S.C. § 330 effective January 30, 1996 (the “U.S. Trustee Guidelines”). The Application is also
7 based on the following Memorandum of Points and Authorities, the Declaration of Shelley D.
8 Krohn In Support of First and Final Application of Houmand Law Firm, Ltd. for Allowance of
9 Compensation for Services Rendered During the Period From December 22, 2016 Through
10 February 8, 2021 and For Reimbursement of Expenses Pursuant to 11 U.S.C. §§ 330 and 331 and
11 Federal Rule of Bankruptcy Procedure 2016 (the “Trustee Declaration”), and the Declaration of
12 Jacob L. Houmand, Esq. In Support of First and Final Application of Houmand Law Firm, Ltd.
13 for Allowance of Compensation for Services Rendered During the Period From December 22,
14 2016 Through February 8, 2021 and For Reimbursement of Expenses Pursuant to 11 U.S.C. §§
15 330 and 331 and Federal Rule of Bankruptcy Procedure 2016 (the “Houmand Declaration”), both
16 of which are filed separately and concurrently with this Court pursuant to Local Rule 9014(c)(2).2
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24 1
Unless otherwise indicated, all chapter and section references are to the Bankruptcy Code, 11
25 U.S.C. §§ 101-1532, and to the Federal Rules of Bankruptcy Procedure, Rules 1001-9037. The
Federal Rules of Civil Procedure will be referred to as “FRCP” and the Federal Rules of
26 Bankruptcy Procedure will be referred to as “FRBP.” The Local Rules of Practice for the United
States Bankruptcy Court for the District of Nevada shall be referred to as the “Local Rules”.
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All references to “ECF No.” are to the numbers assigned to the documents filed in the case as
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they appear on the docket maintained by the clerk of the court.
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1 The Fee Application is also based on the pleadings and papers on file herein and any
2 argument that may be entertained at the hearing on the Fee Application.3
3 Dated this 9th day of February, 2021.
5
By: /s/ Jacob L. Houmand
6 Jacob L. Houmand, Esq. (NV Bar No. 12781)
Bradley G. Sims, Esq. (NV Bar No. 11713)
7 9205 West Russell Road, Building 3, Suite 240
Las Vegas, NV 89148
8 Telephone: 702/720-3370
Facsimile: 702/720-3371
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The Firm also requests that the Court take judicial notice of all pleadings filed in the above-
referenced bankruptcy case, including adversary proceedings, pursuant to Rule of Evidence 201,
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incorporated by reference by FRBP 9017.
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Name of Firm: Houmand Law Firm, Ltd.

1
Authorized to Provide Professional Victoria L. Nelson, Former Chapter 7 Trustee
2 Services to: Shelley D. Krohn, Successor Chapter 7 Trustee
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Date of Retention: December 22, 20164
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6 Period for which Compensation and December 22, 2016 through February 8, 2021
Reimbursement is Sought
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8 Amount of Compensation Requested: $303,267.50
9 Amount of Expense Reimbursement $12,720.39

Requested:
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This is an: interim X final application.

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This is the first and final Fee Application filed by Houmand Law Firm, Ltd. in this case.
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On March 23, 2017, the Court entered an Order Granting Application to Employ Nelson &
Houmand, P.C., Nunc Pro Tunc, As General Bankruptcy Counsel for Victoria L. Nelson, Chapter
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7 Trustee Pursuant to 11 U.S.C. §§ 327(a) and 328(a) and Federal Rule of Bankruptcy Procedure
25 2014 [ECF No. 219] that employed the Firm effective as of December 22, 2016.
26 On March 20, 2018, the Court entered an Order Granting Ex Parte Application to Employ
Houmand Law Firm, Ltd., Numc Pro Tunc As General Bankruptcy Counsel for Shelley D. Krohn,
27 Chapter 7 Trustee Pursuant to 11 U.S.C. §§ 327(a) and 328(a) and Federal Rule of Bankruptcy
Procedure 2014 [ECF No. 308] that employed the Firm effective as of January 19, 2018, the
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appointment of the Trustee as the successor Chapter 7 Trustee in the Debtor’s bankruptcy case.
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1 BILLING SUMMARY
2 Prior Applications: None
3 Fees
Fees Previously Requested 0.00
4 Fees Previously Awarded 0.00
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Expenses
6 Expenses Previously Requested 0.00
Expenses Previously Awarded 0.00
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Retainer Paid: 0.00
8 Drawn on Retainer: 0.00
9 Remaining Retainer: 0.00

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Current Application Fees from December 22, 2016 through

11 February 8, 2021, Requested: $303,267.50
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Current Application Expenses December 22, 2016 through
13 February 8, 2021, Requested: $12,720.39
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1 FIRST AND FINAL FEE APPLICATION OF

2 SUMMARY OF PROFESSIONALS
DECEMBER 22, 2016 THROUGH FEBRUARY 8, 2021
3
4 GRADUATION
FROM LAW HOURLY HOURS TOTAL
5 NAME SCHOOL TITLE RATE FEE
6 Jacob L. Houmand, Esq. 2011 Partner $375.00 188.9 $70,837.50
9 Bradley G. Sims, Esq. 2009 Associate $350.00 37.9 $13,265.00

10 Kyle J. Ortiz, Esq. 2016 Associate $300.00 35.5 $10,650.00

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14 Blended Hourly Rate: $319.70
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19 TOTAL $303,267.50
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1 FIRST AND FINAL FEE APPLICATION OF

2 SUMMARY OF COMPENSATION REQUESTED BY TASK CODE
DECEMBER 22, 2016 THROUGH FEBRUARY 8, 2021
3
4 ACTIVITY HOURS FEES
B110 – CASE ADMINISTRATION 78.3 $25,112.50
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B120 – ASSET ANALYSIS & RECOVERY 393 $118,510.00
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B130 – ASSET DISPOSITION 10 $2,842.50
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B150 – MEETINGS AND COMMUNICATIONS 11.9 $3,305.00
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9 B160 – EMPLOYMENT/FEE APPLICATIONS 92.9 $29,350.00

10 B185 – ASSUMPTION/REJECTION OF LEASES 1.1 $275.00

11 B190 – OTHER CONTESTED MATTERS 344.7 $117,975.00
12 B310 – CLAIMS ADMINISTRATION & OBJECTIONS 16.7 $5,897.50
13 TOTAL: 948.6 $303,267.50
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1 MEMORANDUM OF POINTS AND AUTHORITIES
2 I.
3 INTRODUCTION
4 The Firm, counsel of record to the Trustee in the above-captioned chapter 7 case (the
5 “Bankruptcy Case”), hereby submits this First and Final Fee Application for services rendered in
6 the Bankruptcy Case during the period from December 22, 2016 through February 8, 2021 (the
7 “Fee Application Period”). The Firm requests an order: (i) approving and allowing on a final
8 basis compensation in the amount of $303,267.50 for the reasonable and necessary services of the
9 Firm during the Fee Application Period; (ii) approving and allowing on a final basis
10 reimbursement of expenses in the amount of $12,720.39 that were incurred during the Fee
11 Application Period; and (iii) authorizing the Trustee to pay such amounts to the Firm. The Firm
12 believes that the services it rendered to the Trustee during the Fee Application Period benefited
13 the Debtor’s estate and that, therefore, the attorneys’ fees and costs requested in this Fee
14 Application should be approved under Section 330(a). The Trustee is currently holding funds in
15 the amount of $528,211.49.5 Throughout the administration of the Debtor’s bankruptcy case, the
16 Trustee will have collected funds in the approximate amount of $808,526.00.
17 II.
18 JURISDICTION AND VENUE
19 1. This Court has jurisdiction over this matter pursuant to 28 U.S.C. §§ 157 and 1134.
20 This is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(A). The statutory basis for the relief
21 sought are Sections 330, FRBP 2016, and Local Rule 2016. Venue before this Court is
22 appropriate under 28 U.S.C. §§ 1408 and 1409.
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25 This number does not include approximately $156,425.00 which is due but not yet received by
the Debtor’s bankruptcy estate pursuant to the Amended Order Granting Motion to Approve
26 Compromise Pursuant to Federal Rule of Bankruptcy 9019 [ECF No. 525] entered by the Court
on January 15, 2021. The Trustee is also awaiting a payment in the amount of approximately
27 $3,971.48 from the Chapter 7 Trustee appointed in the bankruptcy case filed by Linda Graham in
Colorado. After these payments are received, the Trustee will be holding approximately
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$688,607.97.
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1 2. This matter constitutes a core proceeding under 28 U.S.C. § 157(b)(2). Pursuant to
2 Local Rule 9014.2, if the Court determines that absent consent of the parties the Court cannot
3 enter final orders or judgment regarding the Application consistent with Article III of the United
4 States Constitution, the Firm consents to entry of final orders and judgment by this Court.
5 III.
6 SUMMARY OF PROFESSIONAL SERVICES PERFORMED
7 3. The Firm has provided services in the matters as described below.
8 4. The following summary is intended only to highlight a number of the services

9 rendered by the Firm, and it is not meant to be a detailed description of all of the work performed.
10 Detailed descriptions of day-to-day services provided by the Firm and the time expended
11 performing such services is fully set forth in the billing summary, true and correct copies of which
12 are attached to the Houmand Declaration as Exhibit “1”.
13 5. Detailed descriptions of the actual expenses incurred by the Firm during the Fee
14 Application Period are attached to the Houmand Declaration as Exhibit “1”.
15 IV.
16 STATEMENT REGARDING NOTICE
17 6. Pursuant to FRBP 2002(a)(6) and 2002(c)(2), notice of hearing on the Fee
18 Application, identifying the Firm and amounts requested, has been served on all identified
19 creditors and parties in interest not less than 28 days prior to the date set for hearing on this Fee
20 Application.
21 V.
22 STATEMENT REGARDING TERMS AND CONDITIONS OF EMPLOYMENT
23 7. On January 4, 2017, Victoria L. Nelson (“Trustee Nelson”) filed an Application to
24 Employ Nelson & Houmand, P.C., Nunc Pro Tunc, As General Bankruptcy Counsel for Victoria
25 L. Nelson, Chapter 7 Trustee Pursuant to 11 U.S.C. §§ 327(a) and 328(a) and Federal Rule of
26 Bankruptcy Procedure 2014 [ECF No. 35] (the “First Employment Application”).
27 8. The First Employment Application sought to employ the Firm nunc pro tunc as of
28 December 22, 2016.
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1 9. On March 23, 2017, the Court entered an Order Granting the Application to
2 Employ Nelson & Houmand, P.C., Nunc Pro Tunc, As General Bankruptcy Counsel for Victoria
3 L. Nelson, Chapter 7 Trustee Pursuant to 11 U.S.C. §§ 327(a) and 328(a) and Federal Rule of
4 Bankruptcy Procedure 2014 [ECF No. 219].
5 10. On October 17, 2017, the Firm filed a Notice of (1) Change of Firm Name and (2)
6 Change of Address [ECF No. 263] that stated the name of the Firm had changed from “Nelson &
7 Houmand, P.C.” to the “Houmand Law Firm, Ltd.”
8 11. On January 13, 2018, Trustee Nelson died.

9 12. On January 19, 2018, the Trustee was appointed as the successor Chapter 7 Trustee
10 in the Debtor’s bankruptcy case [ECF No. 296].

11 13. On March 19, 2018 the Trustee filed an Ex Parte Application to Employ Houmand
12 Law Firm, Ltd. As General Bankruptcy Counsel, Nunc Pro Tunc, for Shelley D. Krohn, Chapter 7
13 Trustee Pursuant to 11 U.S.C. §§ 327(a) and 328(a) and Federal Rule of Bankruptcy Procedure
14 2014 [ECF No. 304] (the “Second Application to Employ”).
15 14. The Second Application to Employ sought to employ the Firm effective as of
16 January 19, 2018, the date of the appointment of the Trustee as successor Chapter 7 Trustee.
17 15. On March 20, 2018, the Court entered an Order Granting Ex Parte Application to
18 Employ Houmand Law Firm, Ltd. As General Bankruptcy Counsel, Nunc Pro Tunc, for Shelley D.
19 Krohn, Chapter 7 Trustee Pursuant to 11 U.S.C. §§ 327(a) and 328(a) and Federal Rule of
20 Bankruptcy Procedure 2014 [ECF No. 308].
21 16. The scope of the Firm’s employment in this bankruptcy case was as follows:
22 (a) To investigate the financial affairs of the Debtor and

determine if there are any preferential transfers, fraudulent
23 conveyances, or turnover actions that may be filed on behalf
of the bankruptcy estate pursuant to 11 U.S.C. §§ 542, 544,
24 547, and 548.
25 (b) To prosecute any and all preferential transfers, fraudulent

conveyances, or turnover actions that may be filed on behalf
26 of the bankruptcy estate pursuant to 11 U.S.C. §§ 542, 544,
547, and 548.
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1 (c) To advise the Trustee of her rights and obligations and

performance of her duties during the administration of this
2 bankruptcy case;
3 (d) To represent the Trustee in all proceedings before this Court

and any other court which assumes jurisdiction of a matter
4 related to or arising in this bankruptcy case;
5 (e) To assist the Trustee in developing legal positions and

strategies with respect to all facets of these proceedings; and
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(f) To provide such other counsel and advice as the Trustee
7 may require in connection with this bankruptcy case.
8 17. The results achieved during the Fee Application Period encompassed by this Fee
9 Application relate to the scope of employment set forth in this Fee Application and are set forth in
10 more specific detail in the billing entries attached as Exhibit “1” to the Houmand Declaration.
11 18. The actual expenses incurred by the Firm during the Fee Application Period are set
12 forth in more specific detail in the billing entries attached as Exhibit “1” to the Houmand
13 Declaration.
14 19. During the time in question, the Firm has assisted the Trustee in those items
15 detailed in the “Scope of Employment” of the Employment Application and other miscellaneous
16 functions.
17 20. The Firm’s services were rendered economically and without unnecessary
18 duplication of efforts. In addition, the work involved, and thus the time expended, was carefully
19 assigned in consideration of the experience and expertise required for each particular task. If
20 more than one person attended a meeting or hearing, it was not a duplication of that effort, but it
21 was necessary to adequately represent the interests of the Trustee.
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1 VI.
2 STATEMENT REGARDING THE ADMINISTRATION OF THE DEBTOR’S
3 BANKRUPTCY ESTATE
4 20. On December 15, 2016, an Involuntary Bankruptcy Petition [ECF No. 1]6 (the
5 “Involuntary Petition”) was filed against the Debtor pursuant to 11 U.S.C. § 303. The Involuntary
6 Petition was filed by the Estate of Michael B. Macknin, the Sharona Dagani Trust, and the
7 Margueritte Owens Revocable Trust (collectively, the “Petitioning Creditors”).
8 21. On December 16, 2016, the Petitioning Creditors filed a Motion to Appoint Interim
9 Trustee in Involuntary Case [ECF No. 3] (the “Interim Trustee Motion”), which sought authority
10 to appoint an interim trustee to take possession of property and to manage the business operations
11 and assets of the Debtor.
12 22. On December 21, 2016, the Bankruptcy Court entered an Order on Trustee Motion
13 and Order for Relief Under Chapter 7 [ECF No. 21] (the “Order for Relief”).
14 23. The Order for Relief provided that the Debtor had consented to the filing of a
15 bankruptcy petition and that the filing of the bankruptcy case was effective as of December 15,
16 2016 (the “Petition Date”).
17 24. The Order for Relief further required that the Office of the United States Trustee
18 (the “U.S. Trustee”) appoint an Interim Chapter 7 Trustee pursuant to 11 U.S.C. § 701.
19 25. On December 22, 2016, Trustee Nelson was appointed as the Chapter 7 Trustee in
20 the Debtor’s bankruptcy case [ECF No. 22].
21 26. On February 7, 2017, Trustee Nelson filed a Motion to Approve Sale of Personal
22 Property to Ken Chupinsky Pursuant to 11 U.S.C. § 363 [ECF No. 160] (the “Motion to Sell”).
23 27. The Motion to Sell sought approval to sell certain personal property of the Debtor.
24 28. On March 23, 2017, the Court entered an Order Approving Motion to Approve
25 Sale of Personal Property to Ken Chupinsky Pursuant to 11 U.S.C. § 363 [ECF No. 218].
26 29. On January 13, 2018, Trustee Nelson died.
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All references to “ECF No.” are to the numbers assigned to the documents filed in the above-
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referenced case as they appear on the docket maintained by the clerk of the court.
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1 30. On January 19, 2018, the Trustee was appointed as the successor Chapter 7 Trustee
2 in the Debtor’s bankruptcy case.
3 31. During the course of the administration of the Debtor’s bankruptcy case, Trustee
4 Nelson and the Trustee have served approximately twenty-two (22) subpoenas issued pursuant to
5 FRBP 2004 (collectively, the “Subpoenas”) seeking the production of financial records related to
6 the Debtor’s financial affairs.
7 32. The Subpoenas resulted in the production of tens of thousands of financial records
8 that were required to be analyzed to evaluate whether there were pre-petition transfers of estate
9 property that could be avoided for the benefit of creditors.

10 33. In furtherance of the administration of the Debtor’s bankruptcy case, Trustee

11 Nelson and the Trustee employed Eisner Amper, LLP (“EisnerAmper”) as Forensic Accountant to
12 assist in the preparation of a forensic accounting of the records produced.
13 34. In furtherance of the administration of the Debtor’s bankruptcy case, Trustee
14 Nelson and the Trustee employed Andersen Law Firm, Ltd. (“Andersen”) as Special Litigation
15 Counsel to assist in recovery of funds from the Debtor’s legal malpractice insurer.
16 35. Through Andersen’s efforts, the Trustee was able to recover $11,583.00 from
17 Markell Insurance Company for the Debtor’s bankruptcy estate.
18 36. During the course of the administration of the Debtor’s bankruptcy case, the
19 Trustee initiated an adversary (the “Adversary Proceeding”) proceeding against Bank of America,
20 N.A. (“BOA”), alleging the following claims for relief: (a) Avoidance of Constructive Fraudulent
21 Transfers Pursuant to 11 U.S.C. § 544(b), 26 U.S.C. § 6502 and 6901 and N.R.S. Chapter 112; (b)
22 Avoidance of Actual Fraudulent Transfers Pursuant to 11 U.S.C. § 544(b) and N.R.S. Chapter
23 112; (c) Avoidance of Constructive Fraudulent Transfers Pursuant to 11 U.S.C. § 548(a)(1)(B);
24 (d) Avoidance of Actual Fraudulent Transfers Pursuant to 11 U.S.C. § 548(a)(1)(A); (e)
25 Avoidance of Transfers Pursuant to 11 U.S.C. § 544(b) and the Federal Debt Collection
26 Procedures Act (28 U.S.C. §§ 3301 through 3308); and (f) Recovery of Bankruptcy Estate
27 Property Pursuant to 11 U.S.C. § 550 [ECF No. 428].
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1 37. On April 24, 2020, the Trustee filed a Motion to Approve Compromise Pursuant to
2 Federal Rule of Bankruptcy Procedure 9019 [ECF No. 488] (the “BOA Compromise Motion”).
3 38. The BOA Compromise Motion sought approval of a settlement agreement which
4 resolved the claims alleged in the Adversary Proceeding in exchange for payment of $215,000.00
5 to the Debtor’s bankruptcy estate.
6 39. On June 3, 2020, the Court entered an Order Granting Motion to Approve
7 Compromise Pursuant to Federal Rule of Bankruptcy Procedure 9019 [ECF No. 494].
8 40. In addition to the Adversary Proceeding, the Trustee was able to negotiate multiple
9 settlements to recover funds for the estate, including the following:

10 a. A settlement with the Bankruptcy Estate of Linda Graham, resulting in

11 proceeds of $3,971.48 for the Debtor’s bankruptcy estate. As noted herein, this payment will be
12 received by the Trustee following the filing of this Fee Application, but prior to the hearing on the
13 same.
14 b. A settlement with American Express National Bank, f/k/a American
15 Express Centurion Bank resulting in proceeds of $250,000.00 for the Debtor’s bankruptcy estate.
16 c. A settlement with Valassis Direct Mail, Inc. resulting in proceeds of
17 $35,000.00 for the Debtor’s bankruptcy estate.
18 d. A settlement with the Church of Jesus Christ of Latter-Day Saints resulting
19 in proceeds of $156,425.00 for the Debtor’s bankruptcy estate. As noted herein, this payment will
20 be received by the Trustee following the filing of this Fee Application, but prior to the hearing on
21 the same.
22 41. The various settlements that were negotiated with the parties referenced above
23 were the result of months of negotiations that involved extensive legal analysis concerning
24 nuanced legal issues such as the Ponzi scheme presumption, standing, and state and federal
25 fraudulent transfer law.
26 42. Through the efforts of Trustee Nelson and the Trustee, a total of approximately
27 $808,526.00 will have been recovered for the Debtor’s bankruptcy estate.
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1 VII.
2 STATEMENT OF STATUTORY AUTHORITY FOR RELIEF SOUGHT
3 43. 11 U.S.C. Section 330(a) states:
4 (a)(1) After notice to the parties in interest and the United States
trustee and a hearing, and subject to sections 326, 328 and 329 the
5 court may award to a trustee, an examiner, a professional person
employed under section 327 or 1103.
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(A) Reasonable compensation for actual, necessary services
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rendered by the trustee, examiner, professional person, or attorney
8 and by any paraprofessional person employed by any such person;
and
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(B) Reimbursement for actual, necessary expenses.

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11 44. 11 U.S.C. Section 503 states, in relevant part:

12 (a) An entity may timely file a request for payment of an
administrative expense, . . .
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(b) After notice and a hearing, there shall be allowed administrative
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expenses, . . . including –
15 (2) compensation and reimbursement awarded under Section 330(a)
of this title.
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17 45. 11 U.S.C. Section 331 authorizes the application for and payment of compensation
18 or reimbursement as follows:
19 A trustee, an examiner, a debtor's attorney, or any professional
person employed under section 327 or 1103 of this title may apply
20 to the court not more than once every 120 days after an order for
relief in a case under this title, or more often if the court permits, for
21 such compensation for services rendered before the date of such an
application or reimbursement for expenses incurred before such
22 date as is provided under section 330 of this title. After notice and a
hearing, the court may allow and disburse such compensation or
23 reimbursement.
24 46. This Fee Application is brought pursuant to 11 U.S.C. Sections 330(a), 331 and
25 503(b) and Region 17 Guidelines Subsection (b).
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1 VIII.
2 STATEMENT RE: AMOUNT OF COMPENSATION SOUGHT TO BE ALLOWED
3 47. This Fee Application seeks allowance of compensation as follows: (a) $303,267.50
4 for professional services rendered during the Fee Application Period; and (b) reimbursement of
5 actual expenses in the amount of $12,720.39 incurred by the Firm during the Fee Application
6 Period.
7 IX.
8 STATEMENT REGARDING SERVICES RENDERED, HOURLY RATES,

9 AND EXPENSES INCURRED

10 48. Services rendered by Applicant are set forth in detail in the billing entries attached
11 as Exhibit “1” to the Houmand Declaration. The billing entries attached as Exhibit “1” to the
12 Houmand Declaration reflect the tasks and includes a detailed list of all time for which
13 compensation is sought, including date of service, designation of category of person rendering
14 service and hourly billing rate, and description of time spent and tasks performed. See
15 “Guidelines” subsection (b)(4); Bankruptcy Rule 2016(a)(1).
16 49. Actual expenses incurred by the Firm during the Fee Application Period are
17 attached as Exhibit “1” to the Houmand Declaration.
18 50. No unusual or costly expenses are listed above.
19 51. The Firm has charged customary rates for fees which are allowed by attorneys in
20 this area pursuant to 11 U.S.C. § 330.
21 52. The Firm is not employed on a contingency basis and, as in all bankruptcy
22 proceedings, the fees charged are subject to the discretion of the Court.
23 53. For the convenience of the Court, the U.S. Trustee, and all interested parties, the
24 following paragraphs set forth a narrative statement, summary and explanation of certain
25 activities and services performed during the time covered by the Fee Application Period. The
26 Firm expended a total of 948.6 hours in providing services on behalf of the Trustee in the
27 Bankruptcy Case over a period of approximately forty-nine (49) months. To provide an orderly
28 and meaningful summary of the services rendered by the Firm in accordance with applicable law
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1 and guidelines the Firm utilized the following separate project billing categories in the Fee
2 Application Period to provide a breakdown of the time expended:
3 B110 – Case Administration. The entries in this category relate to the work performed
4 pertaining to operational and administrative matters including communications with various
5 creditors, counsel for Debtor, and interested parties and their counsel on an on-going day-to-day
6 basis. The entries in this category also involved an inspection of the Debtor’s premises and
7 storage unit, and the preparation of pleadings to abandon property that was of inconsequential
8 value to the Debtor’s bankruptcy estate. The Firm expended 78.3 hours and spent $25,112.50 for
9 this category.
10 B120 – Asset Analysis & Recovery. The entries in this category relate to the investigation
11 and analysis of the potential recovery of assets for ultimate distribution to the unsecured creditors
12 of the Debtor’s bankruptcy estate. The Firm reviewed tens of thousands of financial documents
13 that were produced pursuant to the Subpoenas and researched nuanced legal issues such as the
14 Ponzi Scheme presumption, standing to avoid transfers from a trust account, and state and federal
15 fraudulent transfer law. The Firm expended 393 hours and spent $118,510.00 for this category.
16 B130 – Asset Disposition. The entries in this category relate to the marketing and sale of
17 one of persona property of the Debtor and the preparation of the Motion to Sell. The Firm
18 expended 10.0 hours and spent $2,842.50 for this category.
19 B150 – Meetings and Communications. The entries in this category include the
20 preparation and attendance at the Debtor’s 341(a) Creditors Meetings and meeting with Debtor
21 and counsel for the Debtor. The time entries in this category also included communications with
22 creditors of the Debtor’s bankruptcy estate. The Firm expended 11.9 hours and spent $3,305.00
23 for this category.
24 B160 – Preparation of Fee/Employment Applications. The entries in this category relate
25 to the drafting and filing of applications to employ the Firm, Andersen, EisnerAmper, Diamond
26 McCarthy, LLP, and Paul Healey & Sons CPAs, Ltd. and attending hearings on the same.
27 Following the appointment of the Trustee as successor Chapter 7 Trustee, the Firm prepared
28 second applications to employ these firms as representatives for the Trustee. There was also a
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1 protracted dispute with Markel Insurance concerning the employment of special counsel to
2 recover funds under an insurance policy in the name of the Debtor. Finally, the time entries in
3 this category also relate to the preparation of interim and final fee applications for each of these
4 firms. The Firm expended 92.9 hours and spent $29,350.00 for this category.
5 B185 – Assumption/Rejection of leases. The time entries in this category relate to a
6 review of lease agreements in the Debtor’s name. The Firm expended 1.1 hours and spent
7 $275.00 for this category.
8 B190 – Other Contested Matters. The entries in this category related to the prosecution of
9 the Adversary Proceeding and extensive negotiations with numerous third-parties that resulted in
10 the recovery of the majority of the funds recovered by the Trustee. The negotiations with third-
11 parties were extensive and included multiple agreements to toll the statute of limitations, analysis
12 of legal positions through written correspondence, and preparation of memoranda to the Trustee
13 regarding the same. The Firm expended 344.7 hours and spent $117,975.00 for this category.
14 B310 – Claims Administration & Objections. The entries in this category relate to the
15 review, analysis, and resolution of objections related to the proof of claims filed with the Court.
16 The Firm expended 16.7 hours and spent $5,897.50 for this category.
17 X.
18 STATEMENT REGARDING EXPERTISE REQUIRED
19 54. The Firm is skilled in insolvency proceedings and Chapter 7 Trustee cases and has
20 special knowledge which enabled the Firm to perform services of benefit to the Trustee.
21 Specialized knowledge and skills with respect to insolvency practice, and procedure and law are
22 required to handle the problems which arise in the bankruptcy context.
23 XI.
24 STATEMENT REGARDING PAYMENTS MADE OR PROMISED
25 AND AGREEMENTS TO SHARE COMPENSATION
26 55. No payments have been made or promised to the Firm for services rendered or to
27 be rendered in connection with this case, other than those payments described in this Fee
28 Application.
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1 56. No agreement or understanding exists between the Firm and any other entity for
2 the sharing of compensation received or to be received for services rendered in connection with
3 this case, except as permitted under Section 504(b)(1). See Houmand Declaration.
4 XII.
5 CONCLUSION
6 WHEREFORE, the Firm respectfully requests that this Court enter an Order: (a) granting
7 this Fee Application; (b) approving and allowing compensation in the amount of $303,267.50 and
8 reimbursement of expenses in the amount of $12,720.39 for the Fee Application Period consistent
9 with the terms of this Fee Application; (c) authorizing the Trustee to pay the Firm the amounts set
10 forth in the Fee Application; and (d) for such other relief as is such and proper.
11 Dated this 9th day of February, 2021.
13
By: /s/ Jacob L. Houmand
14 Jacob L. Houmand, Esq. (NV Bar No. 12781)
Bradley G. Sims, Esq. (NV Bar No. 11713)
15 9205 West Russell Road, Building 3, Suite 240
Las Vegas, NV 89148
16 Telephone: 702/720-3370
Facsimile: 702/720-3371
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Case 16-16655-btb Doc 540 Entered 02/09/21 11:49:21 Page 1 of 19

6 Counsel for Shelley D. Krohn, Chapter 7 Trustee

10 In re: Case No. BK-S-16-16655-BTB

11 ROBERT C. GRAHAM, LTD. fdba ROB

1 Bankruptcy Procedure 2016 (the “Fee Application”).1

3 for Compensation and Reimbursement of Professionals in Region 17 as promulgated by the

5 Reviewing Applications for Compensation and Reimbursement on Expenses Filed Under 11

2 argument that may be entertained at the hearing on the Fee Application.3

3 Dated this 9th day of February, 2021.

4 HOUMAND LAW FIRM, LTD.

10 Counsel for Shelley D. Krohn, Chapter 7 Trustee

Name of Firm: Houmand Law Firm, Ltd.

9 Amount of Expense Reimbursement $12,720.39

This is an: interim X final application.

2 Prior Applications: None

9 Remaining Retainer: 0.00

Current Application Fees from December 22, 2016 through

1 FIRST AND FINAL FEE APPLICATION OF

9 Bradley G. Sims, Esq. 2009 Associate $350.00 37.9 $13,265.00

10 Kyle J. Ortiz, Esq. 2016 Associate $300.00 35.5 $10,650.00

11 Kyle J. Ortiz, Esq. 2016 Associate $275.00 99.3 $27,307.50

12 Kyle J. Ortiz, Esq. 2016 Associate $250.00 174.4 $43,600.00

1 FIRST AND FINAL FEE APPLICATION OF

9 B160 – EMPLOYMENT/FEE APPLICATIONS 92.9 $29,350.00

10 B185 – ASSUMPTION/REJECTION OF LEASES 1.1 $275.00

11 B190 – OTHER CONTESTED MATTERS 344.7 $117,975.00

12 B310 – CLAIMS ADMINISTRATION & OBJECTIONS 16.7 $5,897.50

13 TOTAL: 948.6 $303,267.50

1 MEMORANDUM OF POINTS AND AUTHORITIES

16 Trustee will have collected funds in the approximate amount of $808,526.00.

18 JURISDICTION AND VENUE

22 appropriate under 28 U.S.C. §§ 1408 and 1409.

1 2. This matter constitutes a core proceeding under 28 U.S.C. § 157(b)(2). Pursuant to

6 SUMMARY OF PROFESSIONAL SERVICES PERFORMED

7 3. The Firm has provided services in the matters as described below.

8 4. The following summary is intended only to highlight a number of the services

12 are attached to the Houmand Declaration as Exhibit “1”.

14 Application Period are attached to the Houmand Declaration as Exhibit “1”.

16 STATEMENT REGARDING NOTICE

17 6. Pursuant to FRBP 2002(a)(6) and 2002(c)(2), notice of hearing on the Fee

22 STATEMENT REGARDING TERMS AND CONDITIONS OF EMPLOYMENT

23 7. On January 4, 2017, Victoria L. Nelson (“Trustee Nelson”) filed an Application to

28 December 22, 2016.

4 Bankruptcy Procedure 2014 [ECF No. 219].

7 Houmand, P.C.” to the “Houmand Law Firm, Ltd.”

8 11. On January 13, 2018, Trustee Nelson died.

10 in the Debtor’s bankruptcy case [ECF No. 296].

14 2014 [ECF No. 304] (the “Second Application to Employ”).

20 Bankruptcy Procedure 2014 [ECF No. 308].

22 (a) To investigate the financial affairs of the Debtor and

25 (b) To prosecute any and all preferential transfers, fraudulent

1 (c) To advise the Trustee of her rights and obligations and

3 (d) To represent the Trustee in all proceedings before this Court

5 (e) To assist the Trustee in developing legal positions and

21 was necessary to adequately represent the interests of the Trustee.

2 STATEMENT REGARDING THE ADMINISTRATION OF THE DEBTOR’S

7 Margueritte Owens Revocable Trust (collectively, the “Petitioning Creditors”).

11 and assets of the Debtor.

16 2016 (the “Petition Date”).

20 the Debtor’s bankruptcy case [ECF No. 22].

26 29. On January 13, 2018, Trustee Nelson died.

2 in the Debtor’s bankruptcy case.

6 the Debtor’s financial affairs.

9 property that could be avoided for the benefit of creditors.