Pandemic Darlings The pandemic economy, in original documents
Home Source documents KServicing - Jones Day Second Monthly Fee Application

KServicing - Jones Day Second Monthly Fee Application, Doc. 400-2 — In re KServicing Wind Down Corp., et al.

Date
2023-01-03

Summary

Exhibit A to the Jones Day second monthly fee application, filed January 3, 2023 as Doc 400-2 in Case 22-10951-CTG. The nine-page exhibit is a Jones Day invoice dated December 28, 2022 to KServicing Corporation for legal services through November 30, 2022. The invoice reports 75.30 hours and total fees of USD 64,092.50, disbursements and charges of USD 66,042.03, and a total of USD 130,134.53. Fees are divided among Case Administration, Department of Justice Investigations, Congressional Investigation, Federal Trade Commission Investigation and Fee Application Preparation. A timekeeper summary lists hours and rates for partners, associates, a paralegal and a project manager, followed by daily time entries describing each task.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

Case 22-10951-CTG   Doc 400-2   Filed 01/03/23   Page 1 of 9




                       Exhibit A
             Case 22-10951-CTG         Doc 400-2       Filed 01/03/23     Page 2 of 9


                                         JONES DAY
                                             Atlanta Office
                                       1221 Peachtree Street, NE
                                                Suite 400
                                          Atlanta, GA 30361
                                             (404) 521-3939
                              Federal Identification Number: 34-0319085


December 28, 2022                                                                           102496
                                                                                Invoice: 221608113
KServicing Corporation
925B Peachtree Street NE
Suite 1688
Atlanta, GA 30309
United States of America

For legal services rendered for the period through November 30, 2022:


                                                                 Hours                    Amount

Case Administration                                                0.60                     255.00
Department of Justice Investigations                              18.10                  17,407.50
Congressional Investigation                                       38.10                  31,600.00
Federal Trade Commission Investigation                             1.90                   1,902.50
Fee Application Preparation                                       16.60                  12,927.50

Total Fees                                                        75.30 USD              64,092.50

                                Disbursement & Charges Summary

Consultants and Agents Fees                                  61,345.00
Hosting Charges                                               4,697.03

                                                                          USD            66,042.03
TOTAL                                                                     USD           130,134.53




                                       Please remit payment to:
                       PLEASE REFERENCE 102496/221608113 WITH YOUR PAYMENT
               Case 22-10951-CTG          Doc 400-2      Filed 01/03/23   Page 3 of 9

                                               JONES DAY
102496                                                                                     Page: 2
                                                                               December 28, 2022
KServicing Corporation                                                         Invoice: 221608113


                        Timekeeper/Fee Earner Summary – November 30, 2022

Timekeeper/Fee Earner                             Bar
Name                         Title                Year         Hours          Rate          Amount

 A E Lelling                 Partner              1996         24.20       1,275.00        30,855.00
 D J Merrett                 Partner              2007          8.70       1,100.00         9,570.00

Total                                                          32.90                       40,425.00

 S Nosco                     Associate            2022          6.10        525.00          3,202.50
 B N Wilhelm                 Associate            2017         25.90        625.00         16,187.50

Total                                                          32.00                       19,390.00

 C L Smith                   Paralegal                          8.50        425.00          3,612.50

Total                                                           8.50                        3,612.50

 D A Doell                   Project Manager                    1.90        350.00            665.00

Total                                                           1.90                          665.00


Total                                                          75.30         USD           64,092.50
              Case 22-10951-CTG               Doc 400-2         Filed 01/03/23         Page 4 of 9

                                                 JONES DAY
102496                                                                                                    Page: 3
                                                                                              December 28, 2022
KServicing Corporation                                                                        Invoice: 221608113


                                                    Fee Detail

Date of Service          Timekeeper/Fee Earner Name                        Hours                          Amount

Case Administration

11/07/22                C L Smith                                            0.30                            127.50
        Review and distribute docket (.10); obtain recently-filed documents and update electronic file management
        system with same (.10); update case calendar (.10).

11/14/22                C L Smith                                           0.20                             85.00
        Review and distribute docket and recently-filed documents (.10); update case calendar (.10).

11/28/22               C L Smith                                            0.10                             42.50
        Review docket and circulate recently-filed documents to Merrett, Perez.

                         Matter Total                                        0.60            USD            255.00


Department of Justice Investigations

11/03/22                 A E Lelling                                         1.80                         2,295.00
        Review recent negotiations with Small Business Administration and status of Form 940 and $100,000 issues
        (.80); review Chapter 11 filings to date (.30); review AMEX transaction agreement (.40); communicate with
        Coda (Invariant) regarding case (.30).

11/04/22                A E Lelling                                        0.80                           1,020.00
        Review KServicing internal data for possible production (.30); communicate with Wilhelm regarding
        production of same (.20); review amended FRA slides on Form 940 and $100,000 issues (.30).

11/07/22                B N Wilhelm                                         1.00                             625.00
        Communicate with Pintile, Klass, and Fresch (Forensic Risk Alliance) regarding slides for Small Business
        Administration and updates in discussions with DOJ (.50); call with LaMacchia, Loucks, and Seol (DOJ
        Boston) and Hall regarding settlement term sheet and document request (.50).


11/08/22             B N Wilhelm                                          1.00                            625.00
        Communicate with Hall, Loiseau (KServicing), and Arthur (Weil) regarding DOJ settlement discussions.

11/09/22                 D A Doell                                          0.50                            175.00
        Encrypt and send to vendor data previously produced internally to DOJ (.20); communicate with
        vendor regarding instructions for processing, loading and producing according to DOJ specifications
        (.30).
11/09/22                 A E Lelling                                        0.70                            892.50
        Review correspondence among Wilhelm, Loucks concerning production of fraud flag-related data (.50);
        draft correspondence to Loucks (DOJ Boston) Wilhelm and Loiseau (KServicing) concerning new DOJ
        data requests (.20).

11/09/22                 B N Wilhelm                                    0.80                           500.00
        Communicate with Doell and Loucks (DOJ Boston) regarding status of productions (.40); communicate
        with Lelling and Hall regarding document requests from DOJ Boston and DOJ Texas (.40).

11/10/22             D A Doell                                           0.50                               175.00
        Download production volume from vendor's FTP site (.10); verify production for accuracy (.40).
              Case 22-10951-CTG               Doc 400-2        Filed 01/03/23         Page 5 of 9

                                                 JONES DAY
102496                                                                                                    Page: 4
                                                                                              December 28, 2022
KServicing Corporation                                                                        Invoice: 221608113


Date of Service          Timekeeper/Fee Earner Name                        Hours                            Amount

11/10/22                A E Lelling                                       1.60                             2,040.00
        Call with Rodriguez (McGuireWoods) concerning SBA and DOJ strategy issues (.50); follow up
        correspondence with Loiseau (KServicing), Hall, Wilhelm regarding same (.30); call with Hall and Rodriguez
        concerning EDTX data request (.40); draft correspondence to Loiseau summarizing same (.40).

11/10/22               B N Wilhelm                                         0.70                            437.50
        Communicate with Rodriguez (McGuireWoods) and Pintile, Klass, and Fresch (Forensic Risk Alliance)
        regarding communications with DOJ and Small Business Administration on forgiveness issues (.40);
        communicate with Lelling, Loiseau (KServicing), and Kafiti (KServicing) regarding production of Cross
        River Bank materials to DOJ (.30).

11/11/22                 A E Lelling                                        0.30                         382.50
        Review civil investigative demand for Texas matter (.10); correspondence with Rodriguez (McGuire
        Woods) regarding same (.20); call with common interest group about congressional requests (.20).

11/14/22                 A E Lelling                                          1.10                          1,402.50
        Review email from Kafiti (KServicing) about new government inquiry (.20); correspondence with Kafiti
        about same (.10); review and analyze materials in case file concerning AMEX contacts and availability of
        financial information (.40); review and comment on draft SBA response (.40).

11/14/22             B N Wilhelm                                        0.40                                  250.00
        Communicate with Kafiti and Loiseau (KServicing) regarding Amex contact for PPP loan inquiry.

11/18/22               B N Wilhelm                                         0.80                               500.00
        Communicate with Hall, Bentley (Weil), and Fresch, Klass, and Pintile (Forensic Risk Alliance) regarding
        estimate of DOJ claims.

11/21/22                B N Wilhelm                                    0.40                            250.00
        Communicate with Moon, Olshan (Alvarez and Marsal) regarding production of Alvarez and Marsal report
        to partner banks.

11/22/22                 B N Wilhelm                                          1.00                             625.00
        Communicate with Loucks and Young (DOJ Texas) regarding response to civil investigative demand
        requests regarding communications with partner banks and fraud flags (.60); communicate with Bentley
        (Weil) and Fresch, Klass, and Pintile (Forensic Risk Alliance) regarding estimate of DOJ claims (.40).

11/28/22                 A E Lelling                                0.50                              637.50
        Communicate with Wilhelm, Rodriguez (McGuireWoods) and Loiseau (KServicing) on fraud flag data
        production (.40); call with Rodriguez regarding same (.10).

11/30/22                A E Lelling                                          3.00                           3,825.00
        Call with Wilhelm, Loucks, Young, (DOJ) to negotiate CID issues (.50); follow up with call with Wilhelm
        regarding same (.20); draft notes of call and summary email to Loiseau (KServicing), Wilhelm, Hall and
        Rodriguez (McGuireWoods) regarding same (.60); research on personal liability in False Claim Act context
        (1.70).

11/30/22                 B N Wilhelm                                          1.20                            750.00
        Communicate with Lelling, Loucks (DOJ Main), and Young (DOJ Texas) regarding response to civil
        investigative demand request regarding fraud flag data (.50); draft notes from call with Loucks (DOJ Main),
        Young (DOJ Texas), and Lelling to memorialize conversation (.40); communciate with Cox (KServicing)
        and Loiseau (KServicing) regarding sources of fraud flag data (.30).

                         Matter Total                                       18.10            USD           17,407.50
              Case 22-10951-CTG                 Doc 400-2          Filed 01/03/23           Page 6 of 9

                                                   JONES DAY
102496                                                                                                          Page: 5
                                                                                                    December 28, 2022
KServicing Corporation                                                                              Invoice: 221608113


Date of Service           Timekeeper/Fee Earner Name                           Hours                               Amount


Congressional Investigation

11/01/22                  A E Lelling                                         1.40                            1,785.00
        Review and analyze congressional requests and list questions for call with Weil (.30); conference with
        Arthur, Bentley (Weil), Shapiro (RLF), Wilhelm regarding likely developments and financial information
        present in filings (.50); communicate with Wilhelm regarding same (.20); communicate with Loiseau
        (KServicing) regarding congressional requests (.20); review caselaw regarding congressional subpoenas (.20).
11/01/22                B N Wilhelm                                       0.80                              500.00
       Communicate with Arthur, Bentley (Weil), Shapiro (RLF), Lelling regarding request for information filed
       in chapter 11 proceedings (.50); communicate with Doell regarding production of financial materials (.30).
11/02/22                 D A Doell                                        0.50                                       175.00
        Apply Bates numbers and confidentiality designations to documents (.30), created encrypted zip
        file containing production documents (.20).
11/02/22                A E Lelling                                       0.70                                       892.50
        Revise correspondence to congressional staff regarding document production (.20); review and
        analyze production (.30); review summary of Small Business Administration negotiations (.20).
11/02/22                 B N Wilhelm                                            1.00                                 625.00
        Draft cover letter for production of files to House staffers (.70); finalize and make production of
        financial materials to House staffers in connection with congressional investigation (.30).
11/03/22                 A E Lelling                                       1.80                            2,295.00
        Prepare for call with congressional staff regarding document requests (.80); conference with
        congressional staff regarding same (.40); communicate with Loiseau (KServicing), Arthur (Weil) regarding
        congressional requests (.40); follow-up with Wilhelm regarding same (.20).
11/03/22                 B N Wilhelm                                       2.60                            1,625.00
        Communicate with Lelling and House staffers regarding outstanding responses to congressional requests
        (.60); analyze documents from Amex transaction in connection with congressional request (2.00).
11/04/22                 D A Doell                                        0.40                                       140.00
        Apply Bates numbers and confidentiality designations to documents (.30), created encrypted zip
        file containing production documents (.10).
11/04/22                 B N Wilhelm                                         1.20                              750.00
       Call with joint defense group in congressional investigation regarding updates (.20); finalize production
       of Ch. 11 materials to House staffers (1.00).
11/08/22              A E Lelling                                                0.80                              1,020.00
       Review Chapter 11 filings in context of congressional requests.
11/11/22               A E Lelling                                        0.80                           1,020.00
       Correspondence with Loiseau (KServicing) and Wilhelm about congressional requests (.20); strategy call
       with Wilhelm regarding same (.40); call with common interest group about congressional requests (.20).
11/11/22             B N Wilhelm                                       0.70                               437.50
       Communicate with Lelling regarding response to subcommittee requests for financial information (.50);
       communicate with joint defense group regarding updates in subcommittee investigation for other FinTechs (.20).
11/13/22               B N Wilhelm                                    0.80                                           500.00
       Analyze prior communications with subcommittee from Davis Polk in connection with
       subcommittee's potential release to public.
11/14/22                  A E Lelling                                            1.20                             1,530.00
         Review incoming congressional correspondence (.20); email correspondence with common interest group on that subject (.30);
         communicate with Loiseau (KServicing), Wilhelm regarding congressional follow up on production of financial data (.70).
               Case 22-10951-CTG                Doc 400-2         Filed 01/03/23          Page 7 of 9

                                                   JONES DAY
102496                                                                                                        Page: 6
                                                                                                  December 28, 2022
KServicing Corporation                                                                            Invoice: 221608113


Date of Service           Timekeeper/Fee Earner Name                          Hours                              Amount


11/14/22                B N Wilhelm                                         1.30                                   812.50
        Prepare materials identified by subcommittee as possible items for public release for review by
        Loiseau (KServicing), Lelling, Hall, Rodriguez (McGuireWoods) and Arthur (Weil).

11/15/22                  A E Lelling                                          1.10                       1,402.50
        Conference with Loiseau (KServicing), Arthur (Weil), Wilhelm, Hall concerning strategy for congressional
        requests (.50); follow up call with Wilhelm regarding same (.20); review correspondence from Walker
        (KServicing) concerning 2020 and 2021 financial information (.40).

11/15/22               B N Wilhelm                                        0.50                                     312.50
        Communicate with Lelling, Hall, Loiseau (KServicing), and Arthur (Weil) regarding response to
        subcommittee correspondence on publication of certain production materials.

11/16/22             A E Lelling                                                1.10                             1,402.50
        Review documents identified by subcommittee for publication.

11/16/22                 S Nosco                                              6.10                           3,202.50
        Communicate with Wilhelm regarding financial institutions’ disclosure obligations under federal law as it
        relates to Congressional requests (.50); research regarding same (4.30); summarize finding for Wilhelm
        (1.30).

11/16/22                 B N Wilhelm                                     5.60                             3,500.00
        Review and analyze documents identified by subcommittee for potential release (2.20); draft summary of
        potential objections to release of same (3.40).

11/17/22                A E Lelling                                           1.00                            1,275.00
        Revise statement for publication after release of congressional report (.30); review documents identified by
        subcommittee for publication (.70).

11/17/22                 B N Wilhelm                                        1.30                            812.50
        Draft email to subcommittee lodging objections to public release of certain documents and information
        (.80); communicate with Lelling and Sullivan (KServicing) and Walker (KServicing) regarding
        subcommittee's request for financial information from 2020 and 2021 (.50).

11/18/22                  A E Lelling                                             2.90                            3,697.50
        Prepare for (.40) and participate in (.40) call with congressional subcommittee; common interest call with
        counsel in subcommittee investigation (.40); review and analyze other investigative report activity by the
        subcommittee (.60); revise objections to documents identified by subcommittee for disclosure with report
        (.60); review research on potential liability for certain disclosures in congressional proceedings (.50).

11/18/22                 B N Wilhelm                                         1.80                           1,125.00
        Finalize objections to subcommittee's proposal to release certain documents and information to public in
        consultation with Lelling (1.10); communicate with Lelling and White/Claflin (Subcommittee) regarding
        response to inquiry involving financial information (.20); communicate with joint defense group regarding
        updates from subcommittee and documents being publicly released (.50).

11/21/22               A E Lelling                                              0.50                               637.50
        Respond to inquiry from subcommittee staff.

11/25/22                 B N Wilhelm                                       0.20                            125.00
        Communicate with joint defense group for subcommittee investigation to discuss objections to publication
        of materials and updates from other companies under investigation.
              Case 22-10951-CTG               Doc 400-2         Filed 01/03/23         Page 8 of 9

                                                 JONES DAY
102496                                                                                                     Page: 7
                                                                                               December 28, 2022
KServicing Corporation                                                                         Invoice: 221608113


Date of Service          Timekeeper/Fee Earner Name                        Hours                             Amount

                         Matter Total                                       38.10             USD           31,600.00


Federal Trade Commission Investigation

11/01/22               A E Lelling                                         1.10                          1,402.50
        Review and analyze criminal investigation demand and production letters in FTC matter (.60); communicate
        with Wilhelm regarding same (.20); conference with Kristofferson (DLA) regarding FTC issues (.30).

11/01/22               B N Wilhelm                                            0.80                              500.00
        Communicate with Lelling, Kristofferson (DLA) regarding FTC investigation (.50); review research on FTC
        enforcement abilities in preparation for call with counsel representing entity under investigation by FTC
        (.30).

                         Matter Total                                         1.90            USD            1,902.50


Fee Application Preparation

11/07/22             D J Merrett                                             0.30                              330.00
        Communicate with Lelling regarding fee application procedures.

11/09/22                D J Merrett                                      2.80                           3,080.00
        Review and analyze October time entries for compliance with US Trustee guidelines (2.60); communicate
        with Clay regarding same (.20).

11/10/22                 D J Merrett                                        0.60                               660.00
        Communicate with Lelling, Wilhelm regarding Forensic Risk Alliance invoice (.30); communicate with
        Lelling regarding fee estimate request from debtors (.20); communicate with Doell regarding litigation
        support time (.10).

11/10/22             C L Smith                                           0.60                                255.00
        Communications with Merrett regarding Jones Day first monthly fee application (.20); draft and revise same
        (.40).

11/11/22               D J Merrett                                        0.70                             770.00
        Review form of fee application provided by debtors (.30); communicate with Smith regarding same (.10);
        communicate with Lelling regarding fee estimate request from debtors (.30).

11/11/22                C L Smith                                          1.10                               467.50
        Review materials from Weil regarding Jones Day first monthly application (.20); draft and revise Jones Day
        first monthly application (.90).

11/14/22             D J Merrett                                             0.20                              220.00
        Communicate with Clay regarding October invoice.

11/14/22             C L Smith                                           0.40                                170.00
        Communications with Merrett regarding Jones Day first monthly fee application (.20); draft and revise same
        (.20).

11/16/22                D J Merrett                                       2.70                           2,970.00
        Review and revise October fee application (1.50); communicate with Lelling regarding same (.30);
        communicate with Clay (.40), Smith (.30) regarding same; communicate with Smith, Rhodes regarding
              Case 22-10951-CTG                Doc 400-2         Filed 01/03/23          Page 9 of 9

                                                  JONES DAY
102496                                                                                                       Page: 8
                                                                                                 December 28, 2022
KServicing Corporation                                                                           Invoice: 221608113


Date of Service           Timekeeper/Fee Earner Name                         Hours                             Amount

         vendor invoice (.20).

11/16/22                 C L Smith                                             2.20                             935.00
        Emails with Merrett regarding Jones Day first monthly application (.10); draft and revise same (1.20);
        communications with Merrett regarding same (.20); review email from Merrett regarding October 2022
        invoice matters (.10); draft email to Clay regarding same (.10); review further email from Merrett regarding
        October 2022 invoice (.10); draft emails to Merrett, Clay regarding same (.10); communications with
        Rhodes, Diario, Clay regarding October 2022 invoice (.10); review revised Jones Day first monthly
        application (.10); revise same (.10).

11/17/22                 C L Smith                                       0.30                                 127.50
        Review Clay email regarding Jones Day October 2022 invoice matters (.10); review related materials (.10);
        draft email to Clay regarding same (.10).

11/18/22                  C L Smith                                              2.30                            977.50
        Emails with Merrett, Clay regarding Jones Day October 2022 invoice (.10); revise Jones Day first monthly
        application (.90); communications with Clay regarding information for same (.10); revise monthly fee
        application (.30); review revised invoice (.20); draft email to Clay regarding comments to same (.10); draft
        email to Merrett regarding same (.10); draft email to Merrett regarding monthly application (.10); emails with
        Clay regarding additional revisions and comments to invoice (.10); prepare monthly application for filing
        (.20); draft email to Merrett regarding same (.10).

11/20/22                D J Merrett                                        1.10                            1,210.00
        Review and revise October fee application (.90); communicate with Smith (.10), Ham (Weil) (.10) regarding
        same.

11/20/22               C L Smith                                               0.80                              340.00
        Review Merrett comments to Jones Day October 2022 invoice (.10); revise same (.30); revise Jones Day
        monthly fee application (.20); prepare same for filing (.10); draft email to Merrett, Clay regarding same (.10).

11/29/22             D J Merrett                                        0.30                                     330.00
        Communicate with Smith (.10), Hwangpo (Weil) (.20) regarding October fee application.

11/29/22               C L Smith                                            0.10                                  42.50
        Emails with Merrett regarding matters relating to Jones Day first monthly application.

11/30/22                C L Smith                                            0.10                                 42.50
        Call with Merrett regarding matters relating to Jones Day first monthly application.

                          Matter Total                                        16.60            USD            12,927.50


File and source

File
gov.uscourts.deb.188293.400.2.pdf
Size
309,215 bytes
SHA-256
531822cbb84d7a6561d1b6af0863e030ee7243099030f677971ca1fe7f8924cd
Our copy
gov.uscourts.deb.188293.400.2.pdf
Original
archive.org
Back to top