New bills in the bankruptcy court add up to more than $5-million

Lawyers and accountants working on the Lou Pearlman and Trans Continental bankruptcy cases have submitted bills for more than $5-million, including $4.6-million filed yesterday. It covers more than a year's worth of work for some of them, but it's more than the entire $4-million or so that trustee Soneet Kapila has recovered to date. Pearlman has admitted stealing $300-million from banks and investors and been sentenced to 25 years in prison.

"I'm going to propose to the court that we hold back a substantial reserve of cash in the estate and then the balance used to pay the fees on a pro rata basis," Kapila said. "We're not going to pay the entire $5-million."

Kapila said waiting so long (the bankruptcy case started in March 2007) was a conscious decision. "We wanted to make sure that we had done enough work to demonstrate that the work wasn't wasted, it was necessary and we were able to show some results." The bills do not include anything for his own time, he said. As a trustee, he could, with court approval, receive up to 3% of the assets recovered. He said the accountants and lawyers working on the case should be paid something now because they are incurring major epenses for salaries and overhead. "It's a major financing burden to everyone who's working on the case."

Kapila and his team are still working on asset recovery, currently focused on litigation. Lawsuits have been and will be filed against people who received money from Pearlman and his companies. Pearlman himself is also expected to assist in recovery. However, Kapila said his efforts to set up a meeting with Pearlman since the sentencing have not been successful. 

Here's a rundown on the new bills: Akerman Senterfitt, $1.9-million; Kapila & Co., $1-million; Genovese Battista, $707,589; Schultz & Braun (Germany), $519,082; J.H. Cohn, $231,959; Pachulski Stang, $181,461. The banks that launched the bankruptcy case previously filed this request for $539,593 in fees (which has not been paid).

A hearing on the fees will be July 16 (the same day as the restitution hearing).

I have posted a lengthy comment from Lawrence Rifken, chairman of the unsecured creditors' committee.

Friday's St. Petersburg Times story.

Comments

GM what your house like, what kind of cars do you have?

GM do you and your family enjoy your bus at the expense of the backs of our elderly who built this country? Do your parents know what you have done? Hell, I know your living it here on earth because of your comments. Give the people their money back.

Did someone really send Lou a Lobstergram to the prison??

[SweetNothing]

Did you hear GM had a "freedom" party last weekend?.. Has to much on Lou and the young boys. Lou will not rat him out..

Idiot you do know we know it is a diversion?

You would have the most to lose, didn't I read here that you hired your family and Lou actually paid you?

Now what does that tell you?

Who else but you and I don't even know who the hell you are.

GM

GM

That is not an example.

Thank you

[1st Amendment]

Can't break any law in US with first amendment. Joe Redner.

How are they still doing this? Are they stealing other peoples money?

Who is that crowd? Is it known? I would love to know who did this? Thank you

[Kim]

To the poster below, if Lou had a party before he left town, I'm sure the topics were more on Lou convincing everyone to stay loyal and he would make sure they were taken care of. That crowd doesn't have a conscious or they wouldn't have done the things they did or shall I say, still are doing.

Do You feel anger because you think you could have done something to prevent it? Is Kim your closest accessible connection to Frankie?

Posted by: | July 03, 2008 at 03:07 PM

Young man, not a person would blame or judge you if you were a victim of Lou's. We have all been a victim in some way or another, however you can express yourself in other ways. Try it for your own sake.

GM you may not be as smart as you think you are?

Benscher, You could give the people money and use it for a tax break right?

GM was it you that I read was considered a wizard at computers? You would have been banned by now right?

The vulgar poster,is also too stupid to be able to realize when he's gotten himself into deeper trouble than the one he already has.Anonymity is only good for so long until you've broken laws you may not be aware of. Hey, I guess he feels even negative attention on a blog is better than no attention in his ordinary void of a life.Pathetic more than anything else.

GROW UP, YOUR POST MIGHT BE ENJOYED BY ANOTHER 12 YEAR OLD.

GM are you the one Lou paid all that money to? How are you feeling about yourself now?

sorry

Any news about Mandy or Fischetti?

When Lloyds of London brought this to the attention of the authorities, what happened, why was it ignored, lost, disregarded, or addressed?

[Helen Huntley]

I am sorry that we are all being subjected to these obscene posts by someone who obviously has no life. I delete them as soon as I see them, but I can't monitor the blog all the time. We are working on potential solutions.
Helen

Benscher, how do you feel now, knowing about the lies and not doing anything like reporting it to the authorities? Do you know what your domino actions have done? You can make it right and be a hero and pay people their money back.

Gross, Alan after reading the Vanity Fair article, you thought it was so funny about the fake picture. Why?

Juvenile mind guy, maybe another type of victim of Lou's, could it be sexual and it is coming out in a movie and you can't handle it? Your losing it buddy? Get help.

Hey perv for using pound in every sentence, I guess you want to pound but a living person would never consider you.

Can you communicate without speaking of genitals or is that as all you can do in that department?

Do You feel anger because you think you could have done something to prevent it? Is Kim your closest accessible connection to Frankie?

at the party did you sit around and drink and talk about Frankie

who else was on that wall

Who is the AG?

Helen, I AM NOT THE ONE ATTACKING PEOPLE.....

How can a person believe he can borrow million of dollars from multiple banks, and not pay them back and not wind up in prisons?

did anyone ever see the picture of Lou and the AG on Lous wall

He can pay his way out anytime he wants.

&:33 Do you know what he did to your fellow mankind? Why would you want him to be free?

Free Big Pop

Only chance you all have of getting any $$

I don't know, does this not sound right to you or is this a normal thing to happen in a case such as this?

Bankruptcy law calls for a 2 year statue of limitations. Is it coincidence we are seeing these stratospheric fees now?

Go ahead what do you want to say?

Now you know something more about yourself don't you? That is why you are not respected. It is always the actions of a man, not just words.

You can do this, yes you can.

Hey, what do people say about you? Question is rhetorical.

Your comments want to be heard loudly but say nothing. You have the floor, do you have the courage to take it? Remember, respect is earned that is the only way to obtain it. Go ahead

Your relationship must have been behind the scenes or at least you feel more comfortable with that, but a respected Position. Just outburst? Whats going on man What the hell happened? We at least deserve an explanation.

sorry: heard

Whoever you are I would guess that you had a position that was respected. Your obsession with respect and sex by your constant commenting tells me things are not going so good in those directions. Probable trying to numb the pain that is caught up inside you day after day. You know that doesn't work. Man, how did your life get to this point right. You want respect and to be herd. You can have it now, what you want. Go ahead big boy tell us how this happened? We are all reading what you have to say. Go for it.

1:41 The one who wants to be Jeff, is not ever gonna happen. Dream on.

2:07 I care as well as the other investors who lost all their money? We do not understand how this could happen, maybe you could help explain.

11:32 Who warned him he was going to be raided? Where has Renee been? Did she talk to him while he was out of the country?

WHO CARES

To 1;22 If you know something, why don't you help us solve this? You can still be loyal to yourself, but if you know something about other people share it.

11:10 I remember seeing a picture in the paper of a party remains I thought they indicated it was a party at the office? Did you have a party at the office and why was there destruction in the picture?

1:22pm sold out for what? Who are you talking about?

11:10 Why did you have a party, did you know he was leaving the country?

Im loyal to myself, you'd all be sold out by now sorry.

He was warned that he was going to be raided.

JOKE OF THE DAY...State sues Countrywide. Floridas Attorney General says Countrywide engaged in "deceptive and unfair trade practices"...Gee, isn't it funny how they act when they loose their own money "which alot was tied up in their employee investment retirement funds...The part about how it hurt the people of florida is BS.

Why did Pearlman do what he did?

There was a party. It started at a steak house then finished at Lou's house. There was alot of drinking.

9:51 Please let us know where you found this information? Would like to take a look for myself. Thanks.

11:39 Who did Lou say this to?

9:11 who was at the party that night or was there really a party?

Did you marry within your species, or did you have to go elsewhere?

Measure the fees by what value is returned not by hiding behind bankruptcy code. Come on!

STOP AND THINK, THE LOU'S SALESMAN MADE MORE THAN THESE LAWYERS DOING OVER A YEARS WORK. I DON'T THINK THE SALESMAN HAD A HARD TIME GETTING THIER MONEY TILL THE END. JUST SOMETHING TO MEASURE THESE FEE'S BY.

Lou said to them "hang in there" and "I'll take care of you if you are loyal".

Lou thru a party the night before he left town. I would like to know why these people who attened this party are acting like they didn't no what he was doing. They had not been payed for weeks, they knew investor's were coming to the office. And these people are claiming that Lou stole there money. I just hope that who ever is investagating takes a real hard look at these people.

Helen are you going to look into whether or not unsecured creditors are getting a fair bang by the lawyers or are you only the messenger w/o comment?
The cheap shots come with the territory so don't sour on EISA justice please.

[Kim]

Helen, obviously you have hit a nerve, this is why this person keeps attacking you. Keep up the good work!

It seems likely that since all the attacks against other interested parties hasn't convinced Helen to shut down the Blog that someone has turned up the heat trying to get Helen to run scared.

When people attack me it always seems to produce an opposite result to what they are attempting.

Helen can decide to ignore it, delete it, or dig in her heels and make someone wish they hadn't poked a hornet's nest.

[bob morfitt]

Helen Keep up the good work and I personally am thankful for all you have done to keep us informed. The personal attacks on you are rediculous and very petty. THANKS AGAIN HELEN

To whoever keeps attacking Helen:

...and had this person spent as much energy and time researching what they sold they would not be in this position and so full of anger at the mess they got themselves into
-------
Obviously the St. Pete Times did their research and has verified her degree or she wouldnt be in the position she is.

Give it up you got nothing.

Posted by: | June 27, 2008 at 07:51 PM

Just bill it all to Tolner

This case made Denise Dell Powell's career financially and professionally

To whoever keeps attacking Helen:

Obviously the St. Pete Times did their research and has verified her degree or she wouldnt be in the position she is.

Give it up you got nothing.

[tanker]

Helen, I've noticed you've been attacked quite a bit here, I've noticed the attacks seem to be the same type of thing the news isn't fair ect. but I'd say the only people attacking are the same people who are in the news because of their own actions. I for one don't put any stock in the post they put up. I don't know if some of them got big heads thinking they were wheeler dealers making lots of money because they were smart, but attacking the messenger isn't right and it won't take anyone's eyes off what some of them have done to their victims.

That seems fair, bill exorbitant amounts (500/hr) for massive amounts of RESEARCH done by paralegals. Than make a statement like only a % will be paid. im sure that wasn't discussed beforehand. Not that it is going to make any difference in restitution. Not to say they didn't do their jobs, but 1.9 million in about a year, please! The best part is they have 0 results from these lawyers. My mistake 4 million for them. Thanks kap for saving us that total 5 m bill!

[SweatTea45]

Does anyone know what is going on with the $12 million dollar suit of G. McDonald? Think they recover any money from him?

I was reading his bio and it looks like he as had many many suspect deals in the past. Including when he managed Mr. Nelson. There is a book about it.

Are they still posting nasty messages on this board?

[Helen Huntley]

I am really getting tired of this harrassment. Yes, I went to USF and yes, I received my degree under a different last name. Married women do sometimes have more than one name. If I wanted to make up a degree, it would at least be from Harvard.

Why not everything else about this mess is deceptive and it all feeds (literally) on itself. Hope it's not true.

In case you missed it I called USF and they have no record of the story teller ever attending the school. I checked Pinellas County data base no record. Check for yourself and remember this is where your information is coming from. Read Bio. See for yourself.

We can barely keep the bills paid can't even worry about this anymore.

Just wondering: At the July 16 hearing can the judge decide that certain 'hardship case' investor/s be paid before the attorneys? Or does that open yet another can of worms?

You gotta love it, zero return for us and millions for our legal advocates.

Since the fees now exceed amounts recovered to date, does that mean the attorneys will now resign from the case?

Lou spent all the money. Period. It's not Rifken or Kapila that is to blame. It's just not fair to do that to the people who are trying to help recover funds and punish Lou Pearlman. These people deserve a right to earn a living doing what they do and for us (the investors) to attack them is just wrong. Makes me sick to my stomach actually. Thank you, Mr Rifken, Mr Kapila and Helen.

I have no idea what will happen regarding Lou really being of help to locate funds. However,if he really had any remorse over what he's done,and wanted to help he would not be waiting.I'm sure he's well aware of how much money is being spent just trying to locate his assets.Money that is just being substracted from any hopes of restitution.Unless there is now some strategic reason for waiting to reveal information because it may prematurely affect the case against his co-conspirators or other potential defendants than there is no valid reason.Otherwise, he's just dangling his usual false promises.

Lawyers do no work for free, they knew they'd get paid so don't believe the noble BS. All in the game they know so well.

Mr. Rifkens silence is deafening. Just another day at the office with the professionals.

It had to get done, unfortunately thats what professional people get paid. You can't draw straws, nobody knew in the beginning whether or not there was money or not. How else would this get handled? They have spent their own money so far, I think they need to be thanked.

could it be the judges comments at sentencing putting eisa people ahead of banks is causing the creditor committee to gouge us??

Why exactly are his efforts to set up a meeting unsuccessful? Is Lou too busy? What is the problem and why would he even have the right to deny a meeting if he is expected to assist? Why don't they put the Trustee's investigation on hold for a short while,rather than incurring more exorbitant fees rather while going on a wild goose chase. If Lou is expected to assist and can possibly provide information that might hasten the process and lead to more recovery of assets what is the point? It's time he speaks up and is forced to meet with anyone necessary.If he is not willing to provide significant information than now is the time to know that for a fact. This is ridiculous.
---------------------
Pearlman himself is also expected to assist in recovery. However, Kapila said his efforts to set up a meeting with Pearlman since the sentencing have not been successful.

Lou had lawyers going after his detractors all the time. If they all charged $450/hr we certainly have an idea where all the money went.

It truly boggles the mind to imagine that such services warrant such an expense, but that's just the way it is.

A hospital would likely charge just as much to rip out your guts, strangle you with your entrails and then sew you back up. Feels the same anyway.

Let's just hope that Lou's co-conspirators are getting hit with legal bills in the same stratosphere.

Mr. Rifken, would you kindly tell those you purport to represent (EISA?) the hours spent on each issue with what was at stake and recovered. That would be hugely more meaningful than your lengthly public relations statement, as it comes across, that way the typical EISA victim could get a real sense of the actual value you are delivering to us for our money...you seem to offer no hope for recovery- it's all about your fees. Am I wrong?

[jeff]

look at the bill that was submitted by Pachulski, paragraph 21. the attorney is billing 75.30 hours for a total of $40,854.95 for being on the conferance call with the unsecured creditors committee. I don't see any bill from the creditors committee for their time. I guess since they are not attorneys that are not suppose to be paid. I thought Lou had a scam, look who the real scamers are now, the attorneys. I guess we are being had all around, as they are all laughing all the way to the bank. come you people on the comittee, I think it is your time to rise up and also get paid

Now there's at least a $2,100 dollar letter that says nothing. Does this legal fleecing mercilessly end when there are no more sources of money?

[jeff]

to: Lawrence Rifken. Thank you for your lengtly comments, however I want to ask you a few questions. Now that Lou has pleaded guilty and has been sentenced, why would you need that many attorneys involved. seems to me that you are overqeight in attorneys. Lou said he has not money, or he is not going to talk and give you anything, so that means that the attorneys are sucking the investors for what ever they can get. You claim that the unsecured creditors committee has a fiduciary comittment to the investors. Well, I would think that now is the time to cut cost and eliminate between 50% and 75% of the attorneys. Why would you still need them since basicly Lou is telling you he does not have the pot of gold that we are looking for. Also, what has the committe so for the investors? I understand that everyone on the committee is dong this voluntarily and not getting paid, why should the attorneys all get paid at a hourly rate when the committee gets nothing. This just goes to show you that the attorneys are looking out for their pockets only. Good look and keep sucking the blood out the investors who will get nothing at all

Hourly rates are included in some (maybe all) the filings. Click on the links.

[Gee Thanks]

Can we get an hourly rate break down?????

[Gee Thanks]

we are getting raped by these folks so that there will be nothing left for the victims that includes my mother.

[Lawrence E. Rifken]

Thank you for giving me the opportunity to comment on the Trustee's and the various professionals' fee applications that were recently filed in connection with the Pearlman related bankruptcy cases. As you are aware, I serve as Chairman of the Official Committee of Unsecured Creditors, the official statutory fiduciary of the general unsecured creditors/victims, in these bankruptcy cases. In that role, I have had the unique opportunity to work very closely with Soneet and his professionals and the members of the Committee and the Committee's professionals over the last twelve plus months. During that period of time, I have seen first hand how hard the Trustee and the various professionals for the Trustee and the Committee have worked on this case in a sincere effort to try to untangle the complex web that Pearlman's massive fraud has created in order to identify, locate and monetize any remaining assets for the benefit of Pearlman's unfortunate creditors/victims. Although the amount of the professional fees incurred in this case to date is significant, I want to emphasize three important points. First, although the Trustee and the professionals have been working very hard on this case for over a year now, none of the parties currently filing fee applications have been paid anything to date with the exception of a few very limited expenses. In essence, while the Trustee and each of the professionals have been paying ordinary operating expenses on a monthly basis out of their own pockets such as salaries, rent, utilities, insurance, and travel expenses, etc., they have truly provided the working capital for this case when no one else would or could. Second, while we have not yet identified, located and monetized the amount of recoverable assets that we had hoped to by this point in the case, and we are all very disappointed by this, the Trustee and the professionals are not the guarantors of success and they have done as good a job as possible to date under the very difficult and complex facts of this case. Third, it is very important that Pearlman's creditors/victims clearly understand that Pearlman and certain other individuals are the bad guys here and that the Trustee and the professionals are the good guys who sincerely and deeply care about the economic, physical and emotional pain and suffering that Pearlman's unfortunate victims have suffered as a direct result of this pervasive fraud. Although the aggregate amount of the fees and expenses that have been incurred in these cases to date and that will continue to be incurred into the future is significant, they are absolutely necessary if the creditors/victims are to have any chance of recovery. Finally, it is also important to note that the amount of the professional fees and expenses that are being requested pursuant to these fee applications are not unusual and, in fact, are fairly typical of the amount of professional fees and expenses that are routinely incurred in cases of similar size and complexity. I appreciate your affording me the opportunity to share this information with the creditors/victims in these cases.

Lawrence E. Rifken, Chairman
The Official Committee of Unsecured Creditors of Louis J. Pearlman and Trans Continental Airlines, Inc."