CHLT-#127382-v1-Siskey Initial application for compensation … · 2018. 3. 26. · Case 17-30132...

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IN THE UNITED STATES BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF NORTH CAROLINA

Charlotte Division In re: TSI Holdings, LLC, WSC Holdings, LLC, SouthPark Partners, LLC and Sharon Road Properties, LLC.

DEBTORS.

CASE NO. 17-30132 (LEAD) CASE NO. 17-30338 CASE NO. 17-30339 CASE NO. 17-30363 CHAPTER 7 Jointly Administered

INITIAL APPLICATION FOR COMPENSATION

TO EDWARD P. BOWERS AND MIDDLESWARTH BOWERS & COMPANY, ACCOUNTANTS TO THE CHAPTER 7 TRUSTEE

Joseph W. Grier, III, the trustee in the above-referenced cases (the “Trustee”), hereby

files this Initial Application for Compensation to Edward P. Bowers and Middleswarth Bowers

& Company (“Bowers”) as accountants to the Trustee, for the period of February 15, 2017

through February 28, 2018, and respectfully represents as follows:

1. The Court authorized the joint administration of these four cases by order entered

on May 23, 2017 (D.E. 63).

2. By Order entered on February 14, 2017, Bowers was approved as the accountant

for the Trustee in these cases (D.E. 22).

3. Bowers has provided valuable services to the Trustee, including but not limited to

forensic accounting, tax return preparation, assistance in reviewing and establishing claims and

providing testimony in court hearings. No prior fee applications have been filed for Bowers.

4. Bowers has recorded professional time, fees and expenses broken down as

follows: TSI Holdings, LLC (“TSI”), WSC Holdings, LLC (“WSC”), SouthPark Partners, LLC

Case 17-30132 Doc 201 Filed 03/26/18 Entered 03/26/18 10:29:13 Desc Main Document Page 1 of 38

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(“SPP”) and Sharon Road Properties, LLC (“SRP”). Further, additional professional time and

expenses have been recorded as “Other” when work was not performed for a specific case but in

general for the Trustee in these cases.

5. Based on the Debtor records, and other evidence, including an affidavit of

Timothy Darin Stutheit, a Special Agent with the Federal Bureau of Investigation, the Trustee

and his professionals are of the opinion that TSI, WSC, and SPP were each operated as part of

the Ponzi Scheme (the “Ponzi Entities”).

6. This Court has held that SRP is not part of a Ponzi scheme and that the assets of

SRP shall satisfy the SRP administrative expenses (see Claim’s Order at D.E. 177).

7. The Trustee seeks an order allowing fees and expenses whereby such fees and

expenses would be allocated between the Ponzi Entities and SRP as fully set forth herein.

8. Bowers’ overall User Summary of fees and expenses for the four bankruptcy

cases is attached hereto as Exhibit A.

9. Bowers’ User Time Summary and detail on professional services rendered on

behalf of the Trustee related to the Ponzi Entities is attached hereto as Exhibit B.


behalf of the Trustee related to SRP is attached hereto as Exhibit C.


behalf of the Trustee categorized as “Other” and allocated as between the Ponzi Entities and SRP

is attached hereto as Exhibit D.

12. Based on the attached, Bowers has spent the following time in performing

professional services, and the Trustee maintains that Bowers’ fees and expenses should be

allowed and paid as a cost of administration of the bankruptcy cases as follows:


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PONZI ENTITIES

Fees (Recorded as to TSI/WSC/SPP – Exhibit B): Edward P. Bowers 52.65 hrs. @ $285 = $ 15,005.25 Michael T. Bowers 2.45 hrs. @ $225 = $ 551.25 Laurie LeGrand 154.55 hrs. @ $225 = $ 34,773.75 Akiko Bowers 10.95 hrs. @ $ 85 = $ 930.75 Total $ 51,261.00 Additional Allocated fees and expenses (Recorded as Other): $ 19,491.18 Detail on Exhibit D Expenses: $ 79.26 Total Fees – Ponzi Entities: $70,752.18 Total Expenses – Ponzi Entities: $ 79.26 Total Fees and Expenses related to the Ponzi Entities including allocated Fees/expenses: $ 70,831.44 SRP Fees (Recorded as to SRP – Exhibit C): Edward P. Bowers 29.20 hrs. @ $285 = $ 8,322.00 Michael T. Bowers 86.70 hrs. @ $225 = $19,507.50 Laurie LeGrand 70.30 hrs. @ $225 = $15,817.50 Akiko Bowers 0.10 hrs. @ $ 85 = $ 8.50 Total $43,655.50 Additional Allocated fees and expenses (Recorded as Other): $ 3,439.62 Detail on Exhibit D Expenses $ 0.00 Total Fees – SRP: $ 47,095.12 Total Expenses – SRP: $ 0.00 Total Fees and Expenses related to SRP including allocated Fees/expenses: $ 47,095.12

WHEREFORE, the Trustee respectfully requests that the Court approve initial


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compensation to Bowers for the period February 15, 2017 through February 28, 2018 from the

bankruptcy estates in this matter as follows:

1. $70,752.18 in professional fees and $79.26 in reimbursement of expenses be paid

as a cost of administration of the bankruptcy estates of TSI, WSC and SPP; and

2. $47,095.12 in professional fees and $0.00 in reimbursement of expenses be paid

as a cost of administration of the bankruptcy estate of SRP.

This the 26th day of March, 2018.

/s/ Anna S. Gorman Anna S. Gorman (State Bar No. 20987)

Joseph W. Grier, III (State Bar No. 7764) Grier Furr & Crisp, PA 101 North Tryon Street, Suite 1240 Charlotte, NC 28246 (704) 332-0208 Telephone (704) 332-0215 Facsimile [email protected]

Attorneys to the Trustee


CHLT-#127382-v1-Siskey Initial application for compensation … · 2018. 3. 26. · Case 17-30132...

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