United States Securities And Exchange Commission V Stefan Qin Et Al

The United States Securities and Exchange Commission ("SEC") appointed Robert A. Musiala, Jr. Esq. of Baker & Hostetler LLP as Receiver in this action on January 21, 2021. On June 23, 2025, the Receiver submitted the Seventeenth Fee Application seeking approval of fees and expenses incurred between January 1, 2025 and March 31, 2025. The application sought payments totaling approximately $612,685.74 to the Receiver Team, including $237,200.10 to BakerHostetler, $61,858.78 to Ankura Consulting Group, $781.20 to Miller Kaplan Arase, LLP, and $282,845.66 to the Law Office of Dennis O. Cohen. During the Application Period, the Receiver Team performed work beneficial to the Receivership, including filing litigation against an investor group seeking return of approximately $1.6 million in fraudulent transfers, settling with all but one defendant, collecting significant funds, analyzing potential litigation, hosting and maintaining an electronic claims portal, and communicating with claimants. The court reviewed the application and accompanying invoices and granted the Seventeenth Fee Application, authorizing the Receiver to make the requested payments.

Whether to approve the Seventeenth Fee Application submitted by the Receiver for fees and expenses incurred between January 1, 2025 and March 31, 2025, including payments to BakerHostetler, Ankura Consulting Group, Miller Kaplan, and Cohen Law for services rendered during the Receivership.

The court granted the Seventeenth Fee Application submitted by the Receiver, authorizing payments totaling $600,000 to the Receiver Team (BakerHostetler, Ankura, Miller Kaplan, and Cohen Law) for services rendered between January 1, 2025 and March 31, 2025. The court found the fee application reasonable based on SEC approval and the significant efforts of the Receiver Team in complex litigation, settlements, claims portal management, and claimant communications.

The court granted the Seventeenth Fee Application submitted by the Receiver, Robert A. Musiala, Jr. Esq. of Baker & Hostetler LLP, and authorized the Receiver to make payments for the total amounts requested. The approved fees include $237,200.10 to BakerHostetler, $61,858.78 to Ankura Consulting Group, LLC, $781.20 to Miller Kaplan Arase, LLP, and $282,845.66 to the Law Office of Dennis O. Cohen, PLLC. The court noted that the hourly rates remain significantly discounted from ordinary rates, resulting in combined discounts totaling $376,137.00.

The court applied the legal standard that a receiver appointed by a court who reasonably and diligently discharges their duties is entitled to be fairly compensated for services rendered and expenses incurred. The reasonableness of a receiver's fee application is determined in the court's discretion and is judged by factors including the complexity of problems faced, benefits to the receivership estate, quality of work performed, and time records presented. The SEC's approval of a fee application is given great weight in determining the reasonableness of compensation sought by a receiver.

Jessica G. L. Clarke, United States District Judge