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D. Ray Strong, CPA, CFE, CIRA LECG, LLC 2049 Century Park East, Suite 2300 Los Angeles, CA 90067 Telephone No. ( 310) 556-070 9 Facsimile No. ( 310) 556-0766
Accountants to the Chapter 11 Trustee

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UNITED STATES BANKRUPTCY COURT CENTRAL DISTRICT OF CALIFORNIA (NORTHERN DIVISION) In re: ESTATE Financial Mortgage Fund, LLC, a California limited liability company, Case No. 9:08-bk-11535 RR Chapter 11
SECOND INTERIM APPLICATION FOR LECG, LLC, AS ACCOUNTANTS TO BRADLEY D. SHARP, CHAPTER 11 TRUSTEE; DECLARATION OF D. RAY STRONG; DECLARATION OF BRADLEY D. SHARP, TRUSTEE, IN SUPPORT THEREOF

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Debtor.

Date: September 14, 2009 Time: 10:00 AM Courtroom: 201 Place: 1415 State Street Santa Barbara, CA 93101

TO THE HONORABLE ROBIN RIBLET, UNITED STATES BANKRUPTCY JUDGE:

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LECG, LLC ("LECG") hereby applies for interim compensation and reimbursement of expenses as Accountants to the Trustee (the "Applicant"), for the estate of Estate Financial Mortgage Fund, LLC ("EFMF", the "Debtor", the "Estate", or the "Fund"), incurred during the period February 1, 2009 through July 31, 2009 ("Second Interim Period"), and respectfully represent:

I.
INTRODUCTION

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LECG re

fully applies under 11 U.S.C.

330, 331,

503(b), and 507(a) (2) and Local Bankruptcy approval of

e 2016 1, for

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compensation for accounting and financial incurred.

services rendered and reimbursement of

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LECG

been employed as the Accountants to the July 28 1 2008, pursuant to court order entered

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Trustee ef

on September 19 1 2008. 2. LECG has previously requested compensation in this s first interim applicat
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case through

dated August 1
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2008 1

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through January 31, 2009 incurred total 126.90 hours

("First Interim

LECG

in the amount of $41,445.50 representing service to the Estate which it sought full

approval and payment of 100% of that amount when funds became available. Period relat LECG also advanced expenses to its services in the amount the First Interim $607.00 for The total for

which it sought full approval and reimbursement. both fees and is $42,052.50.

Pursuant to the Order Granting in Part and Denying in Part the Various Compensation $41,445.50 in $42,052.50. interim Applications Professionals for

Reimbursement of Expenses, LECG was allowed and $607.00 in expenses a total of

As the date of this application, LECG had been paid

a total of $14,718.38 for the First Interim Period leaving a balance of $27 1 334.12 to be paid. 3. the Second Interim Period, LECG incurred total ing 451.5 hours of

fees in the amount of $138,893.00

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to the Estate for which it seeks full approval and payment of 100% of that amount when funds become available. LECG so advanced expenses for the Second Interim its services in the amount of $2,279.36 for which it 1 approval and reimbursement when funds become avail The total for both fees and expenses is $141,172.36.

A.

Exhibits to this Application

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1.

The nature and extent of LECG services during the and

Second Interim Period are described in subsequent lowing exhibits to this Application:

Exhibit "A" is a copy of the Order Granting Application of

Bradl

D. Sharp, Chapter 11 Trustee for the Bankruptcy Estate

of Estate Financial Mortgage Fund, LLC, to Employ LECG, LLC as Accountants Effective as of July 28, 2008 ("LECG Employment Order") approving LECG's employment.
Exhibit "B" is a monthly summary of fees

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by LECG

as Accountants to the Trustee, organized by category of service.

Exhibit "Cn is a schedule setting forth the tot

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hours LECG in

each professional and paraprofessional has expended this case during the Second Interim Period and services.
was $307.63. Exhibit "D" provides the detailed time

hourly rates

The average hourly billing rate for LECG

for services provided, organized by performed.

Exhibit "E" is a summary of costs and

of

s incurred by

zed by category of expense.

Exhibit "F" provides a detailed schedule of costs and

expenses incurred by LECG, organized by category

Exhibit "G" includes the resumes describing

expense. education sionals

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and qualif

ions of the professionals and

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for LECG whose time constitutes a basis for

Exhibit "H" is a schedule of Applicant's

s Application. hourly These were clients full within 1 time

billing rates during the LECG Second Interim the rates charged by Applicant's personnel to for which Applicant ordinarily receives payment less than 90 days. Applicant carefully

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charges to ensure they were reasonable and non-duplicative. Costs and tenths
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sbursements were also reviewed. an hour.

Reasonableness of Rates

was billed in

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Each year, LECG attempts to gather accurate

information about rates charged by comparable accounting firms for comparable services to ensure its rates are competitive. LECG is informed and believes the rates charged by its staff and accountants are fair and reasonable in light charged by comparable firms. By way rates

example, Mr. Calder has

an hourly rate of $500 during the billing period, which is among the t rates of any LECG professional whose time is As set in Mr. Calder's

included in this application. resume ( account

t "E"}, Mr. Calder has over 25 years of public experience. Applicant is informed and believes led "Big-Four"

professionals at Mr. Calder's level at soaccount

firms, with whom Applicant competes, have hourly Applicant.

rates as high, or higher, than those

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During January of each year, LECG revises its billing for pending cases in All services

rates for new cases accepted therea

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the coming year based on facts described above. included in this fee application were bill standard hourly rates.

at the applicable

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II. BACKGROUND FACTS/DESCRIPTION OF SERVICES

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A.
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Case Background

The Debtor was a California 1 or about January, 2002, and is

liability company ated to another

formed

chapter 11 case pending before the Bankruptcy Court, that of Estate Financial, Inc. ( "EFI") bankruptcy number 9: 08-bk-11457creating a pool of

RR. EFMF was organized for the purpose

investors to invest in secured loans arranged by EFI. EFI was the sole manager of Debtor. 2. EFI had EFI was a private money in central California.

a licensed real estate brokerage firm since the

1980's according to the prepetition Offering Circular for EFI and EFMF. EFI solicited investments executed, real estate loans secured by f encumbering commercial and residential locat in California. , and arranged and deeds of trust estate primarily

Investors were placed by EFI in certain

loans pursuant to their investment and were to receive an assignment of a fractional interest in trust. underlying deed of

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3.

Five creditors filed an involuntary petition against

EFI on June 25, 2008("EFI Petition Date"). EFI consented to the entry of an Order for Relief under chapter 11 on July 11, 2008, and an order was entered on July 16, 2008, by the United States Bankruptcy Court for the Central District of California, Northern Division (the "Court"). The EFI case was followed by

a voluntary chapter 11 petition by EFMF on July 1, 2008 ("EFMF Petition Date"). On July 25, Bradley D. Sharp was appointed the

chapter 11 trustee for the EFMF bankruptcy estate ("the "EFMF Trustee") and Thomas P. Jeremiassen was appointed the chapter 11 trustee for the EFI bankruptcy estate (the "EFI Trustee") (collectively, the "Trustees") by the Court.
4.

As of the EFI Petition Date, EFI was servicing 544

outstanding loans (including approximately 42 loans for which the underlying real property had been foreclosed upon or deeded to EFI or its investors in lieu of foreclosure) . All of the

remaining loans are in default and the Trustees of both cases are working closely together to service, foreclose, reconcile, investigate, and liquidate these loans and underlying real property for the benefit of their constituencies. 5. These 544 loans were funded with several thousand

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direct investments by more than 1,000 individual "direct" investors and by the Fund, which itself has over 1,500 remaining investors. The 544 loans have outstanding principal balances

totaling nearly $318 million, of which approximately $151 million was funded by the Fund with the remainder of roughly $167 million funded by other direct investors.

6.

In an effort to minimize duplication of efforts and

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maximize efficiency, the EFI Trustee and the EFMF Trustee agreed That LECG would be employed as accountants, and Development Specialist, Inc. ( "DSI") would be employed as financial advisors

1n both chapter 11 bankruptcy cases. 7. LECG was employed as Accountants to the Trustee

effective July 28, 2008, pursuant to the LECG Employment Order. 8. On September 4, 2008, the Office of the United States

Trustee ("OUST") appointed an Official Investors' Committee in this case.

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On October 20, 2008, the OUST appointed an Official

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Committee of Unsecured Creditors in the EFI chapter 11 case.

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Both cases have some very challenging and complex

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issues for the Trustees requiring a significant time to analyze, reconcile, investigate and resolve in order to liquidate and ultimately distribute proceeds upon the sale of real property, including examples listed below: A. B. poor real estate and mortgage environment; poor record keeping and documentation; significant number of difficult and complex legal and accounting issues that have been identified, including;
i.

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c.

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various loan layers beginning with an original land acquisition loan, which many times were later sub-divided and refinanced into individual construction loans, and later refinanced several times;

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ii.

loans were not properly paid reconveyed upon a refinancing 1

f and two

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competing loans with different investor groups on the same property;

111.

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assignments that were never prepared and/or recorded with the county, recorded in wrong county, recorded using wrong percentages, remained on title investor was paid, prepared using wrong investor name, recorded within 90 day preference period, and recorded ing

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wrong instrument and/or document numbers; iv. numerous loans were fully funded periodic loan servicing advances were paid from both EFI and EFMF for onconstruction costs and interest payments due to borrower defaults; v. numerous transfers made to/from loans to cover construction costs, interest payments, lot payoffs, etc. when vi. circular cash transactions between related loans, with no real economic substance, to transfer investors refinanced loan; vii. large number of related transactions; loans and old loan to new

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viii.significant number

investor roll overs to

new loans with or without investor knowledge; ix. Fund investments moving in and out of loans on an "as needed" is causing fluctuations

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in principal balances over loan history; ix. EFI performed accounting functions for many of the borrowers including tracking construction costs and paying vendors and subcontractors;
X.

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transaction descriptions are vague, cryptic, and many times difficult to decipher;

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D. E.

properties are in varying stages of completion; and properties span a large geographical area within ifornia.

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Description of Services

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Applicant has been employed to render professional services to the EFMF Trustee which include, without limitation, analyzing transactions leading to the Debtor's cessation invest business;

ing allegations of fraudulent activity; analyzing

daily transactions; investigating transfers of funds and/or purchases of investments; the identification of assets, including causes of action; assist the EFMF Trustee in the

pursuit of any litigation he may pursue, including providing any expert witness testimony that may necessary; performing any

necessary tax work and other analysis which is required by the

EFMF Trustee to properly administer the Estate and conclude the cases; assisting the EFMF Trustee in preparation of federal and state income tax returns for the Estate; communicating with taxing authorities on behalf of the Estate; analyzing and reconciling loans, payoffs, etc.; analyzing and reconciling investor accounts, deeds of trust, assignments, etc.; providing cash tracing and related forensic accounting; reviewing and maintaining insurance coverage; preparing a claims analysis, reconciliation and verification; and assisting with such other accounting services requested by the EFMF Trustee. The details of LECG's services for its Second Interim Period are included herein as Exhibit "D" and the monthly summary is provided in Exhibit "B". Without limiting the detail

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given in Exhibit "D", the areas of emphasis of work are as follows:

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1.

Cash Receipts and Disbursement Analysis (5000) :

At

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the direction of the EFMF Trustee, Applicant is conducting an extensive cash receipts and disbursements analysis for the Fund to trace and investigate all investments by investor, draws and return of capital, income and interest distributions, and any other deposits or disbursements made from EFMF accounts since the inception in 2002. Applicant extracted the account activity from the EFI loan servicing software, imported the data into a database, and began to identify the Debtor's bank account documentation retained by EFI. Applicant worked with Debtor's

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counsel to request missing bank documentation and information from the Debtor's financial institution. Applicant also utilized

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ly developed OCR technology to scan the bank statements and to update the database, which has saved a

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rece

significant amount of time and expense to the Estate. LECG expended 61.0 hours resulting in $14,967.50 s in the amount of

ated to cash receipts and disbursement analysis.

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2.

General Tax Compliance and Analysis (7000}: Applicant

worked closely with the Trustee in addres investors regarding income tax treatment

concerns of Theft Losses,

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pursuant to existing IRS regulations, case law and other ished guidelines. Applicant performed tax research and ng existing IRS Losses. Applicant

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provided communication to the Trustee requirements for the deduction of The consul with the Trustee regarding the

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ication of newly

issued IRS safe harbor provisions regarding the deduction of Theft Losses resulting from a fraudulent arrangement, which were set in Revenue Procedure ("Rev. Proc.") 2009 20, issued Applicant also performed tax research to established in Rev. with the state of

March 17, 2009.

determine the application of the provis Proc. 2009-20 to income tax returns fi Cali

Applicant prepared and filed statutory information returns (Form 1099) for 2008. for These returns are red to be filed

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sbursements to outside third parties which provided

services to the debtor. LECG expended 10.6 hours resulting in $4,085.00 related to general tax compl s in the amount of and analysis.

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3.

Income Tax Return Preparation (7100):

Applicant

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performed analysis and corresponded with the Trustee regarding the approach to be taken in preparation of 2008 income tax returns, as well as for amended income tax returns for prior tax years. guidel Under existing IRS regulations, case law and other amended income tax returns were required to report

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losses resulting from income reported by investors in prior tax years which no asset distribution was received. Applicant projects

and the Trustee determined that the most time-sensit

to be completed were 1) 2008 income tax returns, due to the fact that members/investors of the Debtor needed to received the

2008 Schedule K-1 in order to complete their individual 2008 income tax returns, and 2) 2005 amended income tax returns to

report losses to members/investors of the Debtor for undistributed amounts which were previously reported as income on Schedule K-1 for 2005 and prior tax years, due to the fact that the IRS statute limitations the 2005 tax year was

due to expire on April 15, 2009. Applicant prepared 2005 amended income tax returns, along with amended Schedule K-1 for all members/investors {over 1,200) that had reinvested earnings reported to them as income in 2005 or earlier tax years. The amended 2005 income tax returns reinvested interest

reported losses to members/investors

income, as well as revised profit, loss and capital percentages for each member/investor. Applicant prepared a detailed

analysis setting forth the revisions made to the original 2005 income tax returns in arriving at the 2005 amended income tax

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returns. assure

2005 amended income tax returns were

ewed to

they were in compliance with current tax law,

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complete and accurate. icant reviewed and analyzed transaction Debtor to determine 2008 financial activity and to transactions required to be reported on the 2008 returns. Applicant determined proper income tax tax ing of icant of the

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s incurred by members/investors during 2008. a detailed analysis of the entity's cumulat act , on a member by member basis, in order to

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report 2008 Schedule K-1.

In order to properly identify and

report all required information on the income tax returns, Appl identi analyzed cash receipts and disbursement 1 to

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taxable income and deductible expenditures, prepared

necessary journal entries, prepared income and expense statements and prepared balance sheets. Applicant reviewed the compliance

2008 income tax returns to assure that they were with current tax law, complete and accurate.

Applicant

communicated with the Trustee regarding the anticipated complet date of the 2005 amended income tax returns and the

2008 income tax returns. On March 17, 2009 the IRS issued Rev. Proc. 2009 20 wherein a harbor provision was established for the deduction of Theft Losses in a Fraudulent Arrangement. facts Applicant the

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the case and the historical operations of the Debtor to if all the requirements to apply the provi of Once it Rev. Proc.

Rev. Proc. 2009 20 were met in the case of the was determined that the safe-harbor provisions

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2009-20 could be utilized by the Debtor

immediate

benefit of its Trustee and the

/investors Applicant consulted with the sion was made to utilize Rev. Proc. 2009-20, ing losses equal Applicant

thus requiring that the 2008 be prepared,

to 95% of the Qualified Investment on Schedule K-1. utilized the information that had original

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been accumulated to

prepare 2005, 2006 and 2007 amended income tax returns to determine the amount of loss to be reported in 2008, under the new safe-harbor provisions of Rev. Proc. 2009-20. Although the IRS guidelines allowing deduction of The the safe-harbor

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Losses in a Fraudulent Arrangement were to the filing due Debtor, the Applicant

issued by the IRS less than one month date of the 2008 income tax return

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completed the required income tax returns and provided Schedule

K-1 to the members/investors

(over 1,600) of the Debtor prior to

the April 15, 2009 income tax return filing deadline. LECG of $91,365.00
289.7 hours result

in fees in the amount

ated to income tax return preparation.

4.

Fee Application Preparation {9200):

LECG expended 8.6 hours resulting in fees in the amount of $2,250.00 Application. at to the preparation the 1st Interim Fee

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5.

Creditor Committee Meeting Attendance I Preparation

(9310):

Appl

drafted a memorandum to be provided to the harbor provisions for

investor committee regarding the new sa deduction of

Losses in a Fraudulent Arrangement.

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LECG

2.0 hours resulting in

the amount of

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$1,000.00 rel preparation.

to creditor committee meeting attendance and

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Investor Communications I Inquires (9325):

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As a result

the theft losses and other items reported to

members/investors on the 2008 Schedule K-1, Applicant received and responded to hundreds of inquiries from members/investors and their tax professionals regarding the 2008 Schedule K-1. Applicant made information information rece
LECG

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necessary corrections and updates to on Schedule K-1 pursuant to additional from investors. 79.6 hours resulting in in the amount of

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$25,225.50 rel

to investor communications and inquires.

III. CONCLUSION

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1.

Appl

believes compensation awarded herein will ity of services rendered, complexity of

account for the

the issues at hand, the desirability of employment, the results obtained and hours expended. contingency thereof, as well as the actual Applicant believes l payment of its fees is benefit of its

justified when considered in relation to work, as des 2. person for above.

No agreement exists between

icant nor any other

sharing of compensation that is received in understanding shareholders.

connection with this case, except for concerning compensation among its owne

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WHEREFORE, Applicant respectfully requests approval and reimbursement of 1) the Second Interim Period compensation of fees in the amount of $138,893.00 representing 451.5 hours of services provided to the Estate of which none has previously been paid, for a total remaining LECG balance owed of $138,893.00 for fees for the Second Interim Period; 2) approval and reimbursement of 100% of LECG expenses in the amount of
$2,279.36, of which none has previously been paid,

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for the

Second Interim Period; and 3) for such other further relief as the Court deems just and proper.

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Dated: August ____ II

2009

Respectfully submitted,

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D. Ray Strong, CPA, CFE, CIRA LECG, LLC

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DECLARATION OF D. RAY STRONG I, D.

1.

Strong, declare as follows: I am a Certifi Public Accountant, Certified Fraud

Examiner, Certified Insolvency and Restructuring Advisor and a Director in the firm LECG, LLC ("LECG"). I have read the

foregoing First Interim Application for LECG, LLC, as Accountants to Bradley D. Sharp, Chapter 11 Trustee (the "Application") and know the contents I certify the

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facts stated therein are true of my own knowledge, except those stated upon information and bel true. 2. The Application of LECG seeks 1 compensation the f, which I bel to be

period February 1, 2009, through July 31, 2009 ("Second Interim Period") totaling $138,893.00 for fees of services provided to the Estate. Appl senting 451.5 hours

The time billed in

ion is based on records kept in the ordinary course of is the customary practice of the

LECG's business, and

professionals and paraprofessionals to record their time on a substantially contemporaneous basis. 3. The Application seeks reimbursement of costs totaling

$2,279.36. It is customary for LECG to charge its clients for photocopies at $.20 cl copy. LECG so customarily charges its

s for toll and long-distance phone charges, faxes, such expenses at its

overnight mail, courier services, and cost.

4.

The Trustee has been informed

the nature

LECG's

services and the approximate amount of filing of the Application.

s fees prior to the

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5.

I believe Applicant's Application substantially

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complies with the U.S. Trustee Guidelines concerning professionals' fee applications. I declare under penalty of perjury under the laws of the United States of America that the facts stated herein are true and correct to the best of my knowledge.
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Executed this

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day of August 2009, in Salt Lake City, Utah.

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D. Ray Strong, CPA, CFE, CIRA

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DECLARATION OF BRADLEY D. SHARP

I, Bradley D. Sharp, declare as follows:
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I am a Senior Vice President of the Development I am the duly appointed Chapter 11 I have personal knowledge of the

Specialist, Inc. firm. Trustee in this case.

following facts and, if called, I could and would testify competently thereto. 2. I have reviewed the First Interim Application for

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LECG, LLC, as Accountants to Bradley D. Sharp, Chapter 11 Trustee (the "Application"). 3. I have discussed the Application with Applicant and

have no unresolved objections to approve the amounts sought this Application. I believe the approval of $138,893.00 for LECG, which is 100% of the total requested fees, and the approval of $2,279.36, which is 100% of expenses, is appropriate in light of the current status of the case. I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed this

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~day

of August 2009, in Los Angeles,

California.

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EXHIBIT A

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JOSEPH A. EISENBERG P.C. (SBN 52346) DAVID M. POITRAS P.C. (SBN 141309) THOMAS M. GEHER (SBN 130588) JEFFER, MANGELS, BUTLER & MARMARO LLP 1900 A venue of the Stars, Seventh Floor Los Angeles, California 90067-4308 Telephone: (310) 203-8080 Facsimile: (31 0) 203-0567 Email: jeisenberg@jmbm.com dpoitras@jmbm.com tgeher@jmbm.com Counsel for Bradley D. Sharp, Chapter 11 Trustee for the Bankruptcy Estate of Estate Financial Mortgage Fund, LLC

FILED & ENTERED

SEP 19 2008
CLERK U.S. BANKRUPTCY COURT Central District of California BY rust DEPUTY CLERK

UNITED STATES BANKRUPTCY COURT CENTRAL DISTRICT OF CALIFORNIA NORTHERN DIVISION

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ORDER GRANTING APPLICATION OF BRADLEY D. SHARP, CHAPTER 11 TRUSTEE FOR THE BANKRUPTCY ESTATE OF ESTATE FINANCIAL MORTGAGE FUND, LLC, TO EMPLOY LECG, LLC AS ACCOUNT ANTS EFFECTIVE AS OF JULY 28, 2008

[No Hearing Set Per LBR 9013-1]

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Having reviewed the Application (the "Application") of Bradley D. Sharp, Chapter 11 Trustee of the herein referenced bankruptcy estate ("Trustee"), to Employ LECG, LLC ("LECG") as Accountants effective as of July 28, 2008 and notice of the Application having been properly given pursuant to Local Bankruptcy Rule 2014-1, that LECG 's employment is in the best interest of the estate, and good cause appearing therefor,

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IT IS HEREBY ORDERED that:

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The Application is granted. The Trustee is authorized, to retain and compensate LECG as accountants on the

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terms and conditions set forth in the Application, effective as of July 28, 2008. # # # # #

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# # #
#

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# # # #
#

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DATED: September 19, 2008

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United States Bankruptcy Judge

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PROOF OF SERVICE STATE OF CALIFORNIA, CITY AND COUNTY OF LOS ANGELES I am employed in the City and County of Los Angeles, State of California. I am over the affie of 18 and not a party to the within action; my business address is: 1900 Avenue of the Stars, 7 'Floor, Los Angeles, California 90067. On September 19, 2008 I served the document(s) described as ORDER GRANTING APPLICATION OF BRADLEY D. SHARP, CHAPTER 11 TRUSTEE FOR THE BANKRUPTCY ESTATE OF ESTATE FINANCIAL MORTGAGE FUND, LLC, TO EMPLOY LECG, LLC AS ACCOUNTANTS EFFECTIVE AS OF JULY 28, 2008; in this action by placing the true copies thereof enclosed in sealed envelopes addressed as follows:
See Attached Service List

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(BY MAIL) I am "readily familiar" with the firm's practice for collection and processing correspondence for mailing. Under that practice it would be deposited with the U.S. Postal Service on that same day with postage thereon fully prepaid at Los Angeles, California in the ordinary course of business. I am aware that on motion of the party served, service is presumed invalid if postal cancellation date or postage meter date is more than one day after date of deposit for mailing in affidavit. (BY FAX) At , I transmitted, pursuant to Rule 2.306, the above-described document by facsimile machine (which complied with Rule 2003(3)), to the above-listed fax number(s). The transmission originated from facsimile phone number (310) 203-0567 and was reported as complete and without error. The facsimile machine properly issued a transmission report, a copy of which is attached hereto. (BY PERSONAL SERVICE) I delivered such envelope by hand to the offices of the addressee. (BY OVERNIGHT DELIVERY) I caused said envelope(s) to be delivered overnight via an overnight delivery service in lieu of delivery by mail to the addressee(s). Executed on September 19, 2008 at Los Angeles, California.

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(STATE)

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I declare under penalty of perjury under the laws of the State of California that the above is true and correct.

(FEDERAL) I declare that I am employed in the office of a member of the bar of this court at whose direction the service was made.

Is/ BILLIE TERRY

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Estate Financial Mortgage Fund, LLC, a California limited liability company; Case No. 9:08-bk-11535 RR SERVICE LIST TO PROOF OF SERVICE Attnys for Debtor Lewis R Landau Lewis R Landau Attorney at Law 23564 Calabasas Rd Ste 104 Calabasas, CA 91302 Debtor Estate Financial Mortgage Fund, LLC 806 9th Street, Suite lA Paso Robles, CA 93446

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United States Trustee (ND) 21051 Warner Center Lane, Suite 115 Woodland Hills, CA 91367

Chapter 11 Trustee Bradley D. Sharp Development Specialist, Inc. 333 South Grand Avenue, Ste 4070 Los Angeles, CA 90071-1544

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Brian Fitipaldi Office of the United States Trustee 128 E Carrillo St Santa Barbara, CA 93101

Attorneys for Equity Committee Counsel Peter Susi Michaelson Susi & Michaelson 7 W Figueroa St Santa Barbara, CA 93101

Proposed Attnys for Thomas P. Jeremiassen, Trustee Robert B. Orgel/Samuel R. Maizel Pachulski Stang Ziehl & Jones LLP 10100 Santa Monica Blvd., 11th Fl Los Angeles, CA 90067-4100

Chapter 11 Trustee Thomas P Jeremiassen Trustee for Estate Financial, Inc. LECGLLC 2049 Century Park East, #2300 Los Angeles, CA 90067

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Estate Financial Mortgage Fund, LLC, a California limited liability company; Case No. 9:08-bk-11535 RR SERVICE LIST TO SIGNED ORDER

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VIA EMAIL
Attnys for Debtor Lewis R Landau Lewis R Landau Attorney at Law 23564 Calabasas Rd Ste 104 Calabasas, CA 91302 Email: lew@landaunet.com United States Trustee (ND) 21051 Warner Center Lane, Suite 115 Woodland Hills, CA 91367 Email: ustpregion16.nd.ecf@usdoj.gov

VIA FIRST CLASS MAIL

Debtor Estate Financial Mortgage Fund, LLC 806 9th Street, Suite lA Paso Robles, CA 93446

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Chapter 11 Trustee Bradley D. Sharp Development Specialist, Inc. 333 South Grand Avenue, Ste 4070 Los Angeles, CA 90071-1544

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Brian Fitipaldi Office of the United States Trustee 128 E Carrillo St Santa Barbara, CA 93101 Fax: 805-957-4103 Email: Brian.Fittipaldi@usdoj .gov Attorneys for Equity Committee Counsel Peter Susi Michaelson Susi & Michaelson 7 W Figueroa St Santa Barbara, CA 93101

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Chapter 11 Trustee Thomas P Jeremiassen Trustee for Estate Financial, Inc. LECGLLC 2049 Century Park East, #2300 Los Angeles, CA 90067

Proposed Attnys for Thomas P. Jeremiassen, Trustee Robert B. Orgel/Samuel R. Maizel Pachulski Stang Ziehl & Jones LLP 10100 Santa Monica Blvd., 11th Fl Los Angeles, CA 90067-4100

LECG,LLC 2049 Century ParkE Ste 2300 Los Angeles, CA, 90067 Attn: Fernanda Schmid

EXHIBIT B

Estate Financial Mortgage Fund, LLC - Accountants to the Trustee Summary of Fees and Expenses February 1, 2009 through July 31, 2009

Category
5000 7000 7100 9200 9310 9325 Cash Receipts and Disbursement Analysis General Tax Compliance / Planning Income Tax Preparation Fee Application Preparation

February-09

March-09

April-09

May-09

June-09

July-09

Total Category Fees $ 14,967.50 4,085.00 91,365.00 2,250.00

Total Category Hours 61.00 10.60 289.70 8.60 2.00 79.60 451.50

1,350.00 19,088.50 2,156.00

5,104.50 1,350.00 46,306.50 94.00 950.00 450.00 $54,255.00 168.1

704.00 621.00 22,593.50

1,457.00 764.00 2,180.00

6,976.00

726.00

108.50

1,088.00

Creditor Committee Meeting Attendance / Preparation Investor Communications / Inquiries

50.00 $22,644.50 69.7

50.00 16,366.50 $40,335.00 137.0

5,696.00 $10,097.00 32.8

2,318.00 $9,402.50 36.6

345.00 $2,159.00 7.3

1,000.00 25,225.50 $138,893.00

Total Monthly Fees

Expenses Pacer and Data Charges Postage Photocopy and Reproduction Total

Amount 2.00 1,906.76 370.60 2,279.36

TOTAL FEES TOTAL HOURS TOTAL FEES & EXPENSES AVERAGE BILLING RATE

$138,893.00 451.50 $141,172.36 $307.63 LECG, LLC Tax I.D. #94-3370415 efmxx-30966

EXHIBIT C

efmxx-30966 Estate Financial Mortgage Fund, LLC - Accountants to the Trustee February 1, 2009 through July 31, 2009 PROFESSIONAL SERVICES - TIMEKEEPER SUMMARY 2009 RATE $500.00

NAME Vernon Calder

POSITION Director; 25 years of experience; Master of Accountancy/Taxation 1983; CPA since 1985 Director; 17 years of experience; Master of Professional Accountancy 1995; CPA since1997 Managing Consultant; Bachelor of Science in Accounting 1996; Enrolled Agent since 2001; CPA since 2006 Managing Consultant; 10 years of experience; Master of Professional Accountancy 1999 Associate; 4 years of experience; Master of Accounting 2005 Accounting Analyst; 2 years of experience; Bachelor of Science degree Accounting Analyst; 1 year of experience; Bachelor of Arts degree Accounting Analyst; 1 year of experience; Bachelor of Arts degree Intern; 1 year of experience; Bachelor of Arts degree Paraprofessional; 22 years of experience; Legal Assistant Certificate 1987 Paraprofessional; 22 years of experience; Associate degree in Business Education 1971 Paraprofessional; 10 years of experience

HOURS 75.30

FEES $37,650.00

Ray Strong

470.00

9.30

4,371.00

Leif Larsen

305.00

224.50

68,472.50

Dan Noble

295.00

2.50

737.50

Garrit Dahl James Armstrong

230.00 220.00

17.70 71.50

4,071.00 15,730.00

Sterling Holden

205.00

7.20

1,476.00

Patty Chan Adrienne Versteeg Connie Allred

200.00 145.00 155.00

1.50 15.90 21.00

300.00 2,305.50 3,255.00

Evelyn Perry

120.00

2.60

312.00

Katherine McKee

85.00

2.50

212.50

TOTALS

451.50

$138,893.00

LECG, LLC Fed ID No. 94-3370415

EXHIBIT D

efmxx-30966 Re: Estate Financial Mortgage Fund, LLC Service Rendered February 1, 2009 Through July 31, 2009 DATE Task Code: 03/03/09 03/03/09 03/03/09 03/04/09 03/04/09 03/04/09 03/04/09 03/04/09 03/10/09 03/10/09 03/11/09 03/12/09 03/12/09 03/20/09 04/09/09 04/17/09 04/29/09 05/07/09 06/02/09 06/05/09 06/05/09 06/05/09 06/08/09 06/08/09 06/08/09 06/08/09 06/08/09 NAME 5000 DESCRIPTION Cash Receipts and Disbursment Analysis Discussed EFMF database matching and analysis with software programmer. Reviewed check matching query and manually updated unmatched EFMF checks in database. Analyzed EFMF partner servicing tables in database for disbursements made in 2008. Reviewed and analyzed February 08 EFMF bank statements and EFMF trust account activity. Reviewed and analyzed January 08 EFMF bank statements and EFMF trust account activity. Reviewed and analyzed March 08 EFMF bank statements and EFMF trust account activity. Reviewed and analyzed May 08 EFMF bank statements and EFMF trust account activity. Reviewed and analyzed June 08 EFMF bank statements and EFMF trust account activity. Analyzed and categorized 2008 EFMF transaction within the cash entry schedule. Prepared cash activity schedule for EFMF 2008 transactions. Reviewed and analyzed EFMF Loss Reserve and Expense Account bank statements. Prepared 2008 cash activity schedule for the EFMF Loss Reserve account. Prepared 2008 cash activity schedule for the EFMF Expense account. Reviewed banking documents for EFMF Construction trust account received from Gina Axsom and uploaded to network for analysis. Reviewed and analyzed EFMF bank documents and updated EFMF master database. Reviewed EFMF database matching and provided additional guidance for software developer. Researched data relating to EFMF general account transactions, specifically legal fees and management fees. Addressed cash receipts and disbursement database issues and analyses. Reviewed and analyzed bank statement information in EFMF master cash database. Analyzed and categorized transactions in EFMF cash activity database. Reviewed, analyzed, and updated EFMF cash database. Analyzed EFMF cash activity table structure and provided updates. Used delete, update, and append queries to transfer newly matched data in the EFMF database. Categorized EFMF database transaction to show individual accounts they were transferred to in the construction trust account. Extracted pay account information into EFMF database using matched transactions from construction trust account. Matched unlabeled transaction from EFMF trust account with checks in construction trust account. Addressed issues on EFMF cash database with staff. 0.80 2.90 1.50 1.90 2.10 0.80 0.70 0.90 2.80 2.60 1.20 2.10 2.50 0.30 1.10 0.80 1.30 3.10 1.30 1.40 0.20 0.20 2.20 2.20 1.80 1.90 0.10 220.00 220.00 220.00 220.00 220.00 220.00 220.00 220.00 220.00 220.00 220.00 220.00 220.00 295.00 220.00 220.00 220.00 470.00 220.00 220.00 470.00 220.00 220.00 220.00 220.00 220.00 470.00 176.00 638.00 330.00 418.00 462.00 176.00 154.00 198.00 616.00 572.00 264.00 462.00 550.00 88.50 242.00 176.00 286.00 1,457.00 286.00 308.00 94.00 44.00 484.00 484.00 396.00 418.00 47.00 HOURS RATE AMOUNT

Armstrong, James Armstrong, James Armstrong, James Armstrong, James Armstrong, James Armstrong, James Armstrong, James Armstrong, James Armstrong, James Armstrong, James Armstrong, James Armstrong, James Armstrong, James Noble, Dan Armstrong, James Armstrong, James Armstrong, James Strong, Ray Armstrong, James Armstrong, James Strong, Ray Armstrong, James Armstrong, James Armstrong, James Armstrong, James Armstrong, James Strong, Ray

Page 1 of 12

efmxx-30966 Re: Estate Financial Mortgage Fund, LLC Service Rendered February 1, 2009 Through July 31, 2009 DATE 06/08/09 06/08/09 06/09/09 06/09/09 06/10/09 06/10/09 06/10/09 06/11/09 06/11/09 06/12/09 06/12/09 06/26/09 07/06/09 07/06/09 NAME Strong, Ray Armstrong, James Armstrong, James Armstrong, James Armstrong, James Armstrong, James Armstrong, James Armstrong, James Armstrong, James Armstrong, James Armstrong, James Strong, Ray Armstrong, James Armstrong, James 5000 DESCRIPTION Reviewed, analyzed and updated EFMF cash database. Performed additional queries to determine unknown transactions in the EFMF database. Reviewed and updated EFMF database for loan information on transactions between EFMF and EFI. Analyzed transactions between the EFMF trust account and construction trust account. Reviewed and categorized transactions in the EFMF trust account for further analysis. Developed query to delete transactions from EFMF trust account. Matched check transactions between EFMF trust account and Construction trust account. Reviewed and categorized unknown transactions in the EFMF database. Updated EFMF trust account database for transactions matched with the construction trust account. Matched transactions between EFMF and the construction trust to pull loan information into the EFMF database. Reviewed and categorized unknown transactions in the EFMF database. Reviewed, analyzed and provided updates to cash database. Matched transactions between EFMF database and construction trust account to identify loan numbers. Created tbl applied to id in EFMF database for future reporting. Cash Receipts and Disbursment Analysis HOURS 2.40 1.50 1.30 1.70 1.80 0.80 1.10 1.90 1.40 1.00 1.80 0.30 1.90 1.40 61.00 RATE 470.00 220.00 220.00 220.00 220.00 220.00 220.00 220.00 220.00 220.00 220.00 470.00 220.00 220.00 AMOUNT 1,128.00 330.00 286.00 374.00 396.00 176.00 242.00 418.00 308.00 220.00 396.00 141.00 418.00 308.00 14,967.50

Total for Task Code: Task Code: 02/20/09 02/23/09 03/09/09 03/19/09 03/20/09 7000

General Tax Compliance/Planning Drafted memorandum to trustee regarding Theft Losses in a Ponzi scheme in response to inquiries from various investors. Drafted memorandum addressing tax issues related to theft loss and constructive receipt of income. Drafted memorandum to Brad Sharp regarding tax reporting for earnings not distributed. Drafted memorandum to trustee regarding safe harbor provisions for theft loss deductions pursuant to Rev. Proc. 2009-20. Discussed via telephone with Brad Sharp regarding application of new Theft Loss safe harbor provisions. Discussed advantages and disadvantages. Analyzed requirements to be met in order to claim 95% Theft Loss pursuant to Rev. Proc. 2009-20. Performed tax research and analyzed issues regarding application of IRS safe harbor theft loss provisions to California. Analyzed cash schedules of payment for legal and professional fees requiring Form 1099-Misc preparation. Prepared Forms 1099-Misc for 2008. Reviewed 2009 Form 1099MISC. Assigned tax staff to issue forms to recipients. Prepared Form 1099-Misc for recipients. Prepared Form 1099-Misc for filing with the internal revenue service. Prepared Form 1099-Misc for Omni Management. 1.10 1.60 0.90 0.60 0.30 500.00 500.00 500.00 500.00 500.00 550.00 800.00 450.00 300.00 150.00

Calder, Vernon Calder, Vernon Calder, Vernon Calder, Vernon Calder, Vernon

03/23/09 03/26/09 04/29/09 04/30/09 05/04/09 05/07/09 05/14/09 05/14/09

Calder, Vernon Calder, Vernon Dahl, Garrit Dahl, Garrit Calder, Vernon Dahl, Garrit Dahl, Garrit Dahl, Garrit

0.40 0.50 0.60 2.10 0.60 0.80 0.60 0.40

500.00 500.00 230.00 230.00 500.00 230.00 230.00 230.00

200.00 250.00 138.00 483.00 300.00 184.00 138.00 92.00

Page 2 of 12

efmxx-30966 Re: Estate Financial Mortgage Fund, LLC Service Rendered February 1, 2009 Through July 31, 2009 DATE 05/15/09 NAME Calder, Vernon 7000 DESCRIPTION Reviewed and signed Form 1096, Information Return Transmittal, in order to submit Information Returns to IRS. General Tax Compliance/Planning HOURS 0.10 10.60 RATE 500.00 AMOUNT 50.00 4,085.00

Total for Task Code: Task Code: 02/03/09 02/03/09 02/05/09 02/11/09 7100

Income Tax Preparation Analyzed tax issues to be addressed in preparation of 2008 income tax returns. Compiled documentation for tax preparation. Discussion with tax department director re: Claim of EFMF into EFI case for tax purposes. Performed analysis and drafted memorandum to Brad Sharp regarding proposed approach to preparation of EFMF income tax returns for 2008 and for amended income tax returns for prior tax years. Analyzed issues relating to the preparation of the 2008 income tax returns for EFMF and issues relating to the preparation of amended returns for EFMF. Resolved issues regarding determination of investor income directly reinvested in the Fund. Reviewed issues related to the preparation of current and amended tax returns of EFMF. Drafted memo to trustee regarding status of income tax return preparation. Prepared schedule of EFMF reinvestments by partners since the funds inception. Analyzed information regarding reinvested interest in EFMF from inception through 2008. Determined most effective approach to prepare amended 2005 - 2007 partnership income tax returns to adjust for reinvested interest that was never constructively received by partners. Analyzed tax issues related to the preparing of amended and original tax returns and reviewed schedules needed to prepare the returns. Reviewed the 2005 tax return and schedules detailing activity of Members for 2005 to determine which Members will be receiving amended Schedule K-1's. Prepared amended return information for tax year 2005 for partners 501 through 1000. Prepared amended return information for tax year 2005 for partners 1 through 500. Answered questions encountered during preparation of amended 2005 tax returns regarding allocation of activity to partners. Prepared amended return information for tax year 2005 for partners 1001 through 1500. Reviewed and analyzed 2008 cash register in order to identify financial information required to prepare 2008 income tax returns. Prepared schedules detailing changes from the original return to those reported on the 2005 amended EFMF return regarding profit and capital percentages for Members 1 through 500. Worked on preparation of amended tax return import file to determine all partner information to be reported on amended partnership income tax returns. Prepared schedules detailing changes from the original return to those reported on the 2005 amended EFMF return regarding profit and capital percentages for Members 501 through 1230. 0.70 1.00 0.70 0.80 500.00 155.00 295.00 500.00 350.00 155.00 206.50 400.00

Calder, Vernon Allred, Connie Noble, Dan Calder, Vernon

02/11/09

Larsen, Leif

0.50

305.00

152.50

02/16/09 02/16/09 02/18/09 02/18/09 02/18/09

Calder, Vernon Larsen, Leif Calder, Vernon Armstrong, James Calder, Vernon

0.20 0.40 0.20 3.30 1.70

500.00 305.00 500.00 220.00 500.00

100.00 122.00 100.00 726.00 850.00

02/18/09 02/20/09

Larsen, Leif Larsen, Leif

2.50 0.70

305.00 305.00

762.50 213.50

02/23/09 02/23/09 02/23/09 02/23/09 02/24/09 02/24/09

Larsen, Leif Larsen, Leif Calder, Vernon Larsen, Leif Calder, Vernon Larsen, Leif

3.30 3.40 0.70 3.50 0.50 3.20

305.00 305.00 500.00 305.00 500.00 305.00

1,006.50 1,037.00 350.00 1,067.50 250.00 976.00

02/24/09

Calder, Vernon

2.20

500.00

1,100.00

02/24/09

Larsen, Leif

3.80

305.00

1,159.00

Page 3 of 12

efmxx-30966 Re: Estate Financial Mortgage Fund, LLC Service Rendered February 1, 2009 Through July 31, 2009 DATE 02/25/09 02/25/09 02/25/09 02/25/09 02/26/09 NAME Larsen, Leif Calder, Vernon Larsen, Leif Holden, Sterling Larsen, Leif DESCRIPTION Prepared the 2005 amended EFMF returns and analyzed issues relating to Schedule K-1 reporting. Resolved issues regarding reporting partner profit, loss and capital percentages on 2005 amended Schedule K-1s. Prepared a Member import file and imported into the tax software for the preparation of the 2005 amended EFMF returns. Prepared member information schedule for preparation of 2008 tax return. Prepared the profit and loss ending percentages as reported on Schedule K-1 for members 1 through 250 for the 2005 amended EFMF return. Discussed via telephone with Brad Sharp regarding status of information needed to prepare 2008 income tax returns. Prepared the profit and loss ending percentages as reported on Schedule K-1 for members 751 through 850 for the 2005 amended EFMF return. Prepared the profit and loss ending percentages as reported on Schedule K-1 for members 501 through 750 for the 2005 amended EFMF return. Prepared the profit and loss ending percentages as reported on Schedule K-1 for members 251 through 500 for the 2005 amended EFMF return. Prepared the profit and loss ending percentages as reported on Schedule K-1 for members 851 through 1000 for the 2005 amended EFMF return. Reviewed and referenced the 2005 EFMF amended return and related work papers. Prepared the profit and loss ending percentages as reported on Schedule K-1 for members 1001 through 1230 for the 2005 amended EFMF return. Prepared transmittal cover letters for Schedule K-1 and the disclosure statement for the 2005 amended return. Reviewed and revised Disclosure Statement to be filed with 2005 amended income tax return. Reviewed transaction ledgers for the period of April through july, 2008 to determine partner activity and to determine reportable transactions for the preparation of the 2008 EFMF returns. Reviewed transaction ledgers for the period of January through March, 2008 to determine partner activity and to determine reportable transactions for the preparation of the 2008 EFMF returns. Prepared Schedule K-1 tables to be used in the preparation of the 2008 EFMF returns. Resolved issues regarding principal payouts to members and new contributions to be reported on 2008 income tax returns. Prepared member information schedule for preparation of 2008 tax return. Prepared footnotes to Schedule K-1 allocating out theft losses for the preparation of the 2008 EFMF return. Prepared a detail list of theft losses incurred for the period of 2002 through 2004 to be reported on the 2008 EFMF return for the preparation of the 2008 EFMF return. Determined resolution of issues regarding reconciliation of 2008 financial activity with 2008 bank statements. Determined proper reporting of Theft Loss for reinvested earnings on 2008 Schedule K-1. HOURS 3.20 1.00 2.90 1.30 2.90 RATE 305.00 500.00 305.00 205.00 305.00 AMOUNT 976.00 500.00 884.50 266.50 884.50

02/26/09 02/26/09

Calder, Vernon Larsen, Leif

0.20 1.50

500.00 305.00

100.00 457.50

02/26/09

Larsen, Leif

2.60

305.00

793.00

02/26/09

Larsen, Leif

2.70

305.00

823.50

02/27/09

Larsen, Leif

1.90

305.00

579.50

02/27/09 02/27/09

Larsen, Leif Larsen, Leif

1.40 2.20

305.00 305.00

427.00 671.00

02/27/09 02/27/09 03/02/09

Larsen, Leif Calder, Vernon Larsen, Leif

0.30 1.10 2.60

305.00 500.00 305.00

91.50 550.00 793.00

03/02/09

Larsen, Leif

2.40

305.00

732.00

03/02/09 03/02/09 03/02/09 03/03/09 03/03/09

Larsen, Leif Calder, Vernon Holden, Sterling Larsen, Leif Larsen, Leif

2.20 1.20 1.80 3.70 2.30

305.00 500.00 205.00 305.00 305.00

671.00 600.00 369.00 1,128.50 701.50

03/03/09 03/03/09

Calder, Vernon Calder, Vernon

0.10 0.50

500.00 500.00

50.00 250.00

Page 4 of 12

efmxx-30966 Re: Estate Financial Mortgage Fund, LLC Service Rendered February 1, 2009 Through July 31, 2009 DATE 03/03/09 03/04/09 03/04/09 03/04/09 NAME Larsen, Leif Larsen, Leif Armstrong, James Larsen, Leif DESCRIPTION Prepared beginning and ending profit, loss and capital percentages detail to be included on the 2008 EFMF returns. Updated partner information and schedules tying prior year to current year work papers. Prepared schedule of EFMF disbursements in 2008 separated by partner for tax return. Reviewed transaction ledgers of EFMF and worked with staff to verify numbers and complete a reliable transaction history to be included on the 2008 EFMF returns. Analyzed revised information received to be used to prepare 2008 income tax returns. Reviewed 2005 amended income tax returns and related tax file. Reviewed amended Schedule K-1 for 2005. Partner 206 through 503. Determined proper accounting for EFMF member earnings to be reported on amended income tax returns. Performed an analysis on partnership activity for tax years 2002 through 2007 for partners 1 through 250. Prepared member information schedule for preparation of 2008 tax return. Discussed issue of recognizing income with tax department. Prepared member information schedule for preparation of 2008 tax return. Performed an analysis on partnership activity for tax years 2002 through 2007 for partners 751 through 1250. Performed an analysis on partnership activity for tax years 2002 through 2007 for partners 251 through 750. Prepared schedule of updated partner addresses and tax id numbers for K-1 filing. Reviewed 2005 amended Schedule K-1 for partner number 503 through 660. Determined proper treatment on 2005 amended income tax returns for non distributed earnings that were not classified as "reinvested". Performed an analysis on partnership activity for tax years 2002 through 2007 for partners 1251 through 1641. Reviewed and analyzed 2008 disbursements made to EFMF partners for tax reporting purposes. Analyzed cumulative partnership income and distribution information in order to determine income not distributed to EFMF members in conjunction with preparation of 2008 income tax return. Determined proper tax return reporting for 2008 financial activity. Prepared updated import files for partners 1 through 500 to include theft loss activity from 2002 through 2007 and reviewed transaction history of the debtor for the preparation of the 2008 EFMF tax return. Prepared updated import files for partners 501 through 1000 to include theft loss activity from 2002 through 2007 and reviewed transaction history of the debtor for the preparation of the 2008 EFMF tax return. Prepared the 2008 EFMF tax return and work papers and reviewed and referenced them. Prepared updated import files for partners 1001 through 1647 to include theft loss activity from 2002 through 2007 and reviewed transaction history of the debtor for the preparation of the 2008 EFMF tax return. HOURS 3.30 2.70 2.10 1.80 RATE 305.00 305.00 220.00 305.00 AMOUNT 1,006.50 823.50 462.00 549.00

03/04/09 03/04/09 03/05/09 03/05/09 03/05/09 03/05/09 03/06/09 03/06/09 03/06/09 03/06/09 03/06/09 03/06/09 03/06/09 03/09/09 03/09/09 03/09/09

Calder, Vernon Calder, Vernon Calder, Vernon Calder, Vernon Larsen, Leif Holden, Sterling Noble, Dan Holden, Sterling Larsen, Leif Larsen, Leif Armstrong, James Calder, Vernon Calder, Vernon Larsen, Leif Armstrong, James Calder, Vernon

0.30 4.60 3.70 1.00 2.10 2.40 0.30 1.70 3.50 3.70 1.20 1.60 1.90 3.50 2.70 1.80

500.00 500.00 500.00 500.00 305.00 205.00 295.00 205.00 305.00 305.00 220.00 500.00 500.00 305.00 220.00 500.00

150.00 2,300.00 1,850.00 500.00 640.50 492.00 88.50 348.50 1,067.50 1,128.50 264.00 800.00 950.00 1,067.50 594.00 900.00

03/10/09 03/10/09

Calder, Vernon Larsen, Leif

2.20 3.60

500.00 305.00

1,100.00 1,098.00

03/10/09

Larsen, Leif

3.50

305.00

1,067.50

03/11/09 03/11/09

Larsen, Leif Larsen, Leif

2.40 3.60

305.00 305.00

732.00 1,098.00

Page 5 of 12

efmxx-30966 Re: Estate Financial Mortgage Fund, LLC Service Rendered February 1, 2009 Through July 31, 2009 DATE 03/11/09 03/11/09 03/12/09 03/12/09 03/12/09 03/13/09 03/13/09 03/20/09 03/24/09 03/24/09 NAME Calder, Vernon Calder, Vernon Larsen, Leif Noble, Dan Calder, Vernon Calder, Vernon Calder, Vernon Calder, Vernon Calder, Vernon Larsen, Leif DESCRIPTION Corresponded with trustee regarding anticipated time of completion of 2008 income tax return. Resolved various accounting issues associated with 2008 income tax return. Updated the 2008 EFMF work papers to include activity from the expense and loss reserve accounts. Prepared detailed download from quickbooks to excel for all history of EFMF loss reserve account and provided to staff. Reviewed 2008 income tax return and related file. Reviewed 2008 income tax returns and related tax file. Drafted memorandum to trustee regarding proposed tax return reporting of distributions made to investors. Determined methodology to be used to identify theft loss to be reported by EFMF in 2008. Discussed via telephone with Brad Sharp regarding Theft Loss issues to be reported on 2008 income tax return. Analyzed the 2004 Schedule K-1's for Members 1 through 250 to determine theft loss to be reported on the 2008 tax return and requested the information. Determined additional information needed to determine theft loss to be reported on the 2008 tax return and requested the information. Analyzed member capital account activity for 2003 for members 114 - 150 for determining theft loss to be reported on the 2008 EFMF return. Analyzed member capital account activity for 2003 for members 153 for determining theft loss to be reported on the 2008 EFMF return. Analyzed the 2004 Schedule K-1's for Members 251 through 836 to determine theft loss to be reported on the 2008 tax return and requested the information. Analyzed the 2005 Schedule K-1's for Members 1 through 600 to determine theft loss to be reported on the 2008 tax return and requested the information. Analyzed member capital account activity for 2003 for members 153 for determining theft loss to be reported on the 2008 EFMF return. Analyzed the 2002 Schedule K-1's to determine theft loss to be reported on the 2008 tax return and requested the information. Analyzed member capital account activity for 2003 for members 250 - 325 for determining theft loss to be reported on the 2008 EFMF return. Reviewed the 2003 Schedule K-1 detail work sheets prepared by staff for completeness and accuracy. Worked with tax staff to provide guidance regarding application of IRS safe harbor provisions regarding theft loss deductions to be reported on 2008 income tax returns. Analyzed member capital account activity for 2003 for members 151 - 200 for determining theft loss to be reported on the 2008 EFMF return. Analyzed member capital account activity for 2003 for members 201 - 250 for determining theft loss to be reported on the 2008 EFMF return. Analyzed the 2005 Schedule K-1's for Members 601 through 1230 to determine theft loss to be reported on the 2008 tax return and requested the information. HOURS 0.20 0.80 2.50 1.20 0.80 0.40 0.70 0.60 0.10 1.90 RATE 500.00 500.00 305.00 295.00 500.00 500.00 500.00 500.00 500.00 305.00 AMOUNT 100.00 400.00 762.50 354.00 400.00 200.00 350.00 300.00 50.00 579.50

03/24/09 03/25/09

Larsen, Leif Dahl, Garrit

0.40 2.00

305.00 230.00

122.00 460.00

03/25/09 03/25/09

Allred, Connie Larsen, Leif

2.00 2.90

155.00 305.00

310.00 884.50

03/25/09

Larsen, Leif

3.30

305.00

1,006.50

03/25/09 03/26/09 03/26/09

Allred, Connie Larsen, Leif Dahl, Garrit

2.50 2.60 2.50

155.00 305.00 230.00

387.50 793.00 575.00

03/26/09 03/26/09

Larsen, Leif Calder, Vernon

1.30 1.00

305.00 500.00

396.50 500.00

03/26/09

Dahl, Garrit

2.50

230.00

575.00

03/26/09

Dahl, Garrit

2.50

230.00

575.00

03/26/09

Larsen, Leif

3.60

305.00

1,098.00

Page 6 of 12

efmxx-30966 Re: Estate Financial Mortgage Fund, LLC Service Rendered February 1, 2009 Through July 31, 2009 DATE 03/26/09 NAME Dahl, Garrit DESCRIPTION Analyzed member capital account activity for 2003 for members 326 - 390 for determining theft loss to be reported on the 2008 EFMF return. Prepared theft loss detail schedules for the preparation of the 2008 tax return. Analyzed the 2007 Schedule K-1's to determine theft loss to be reported on the 2008 tax return. Analyzed the 2008 contribution and distribution detail to determine theft loss to be reported on the 2008 tax return. Analyzed the 2006 Schedule K-1's to determine theft loss to be reported on the 2008 tax return. Prepared the 2008 federal and state tax returns. Reviewed 2008 income tax return and related tax file. Reviewed 2008 income tax returns and related tax file. Reviewed Schedule K-1 for partners 1 through 1100. Resolved issues regarding determination of Discovery Year for Theft Loss deductions. Reviewed Scheduled K-1 for partner number 1000 through end. Finished review of 2008 income tax returns. Compiled 2002 and 2003's K-1 and form 1056 pdf documents for tax department. Reviewed 2002 through 2008 K-1 activity for various beneficiaries to reconcile discrepancies between theft loss and capital account balances for the preparation of the 2008 EFMF returns. Reviewed corrections made to 2008 income tax returns. Reviewed corrections to 2008 income tax returns. Sent final draft tax returns to Brad Sharp. Cleared review notes relating to the 2008 EFMF returns and work papers. Drafted memorandum to Brad Sharp regarding his review and approval of 2008 income tax returns. Reviewed and finalized the 2008 EFMF returns for mailing to the taxing authorities and beneficiaries. Prepared 2008 beneficiary schedule K-1s for distribution to recipients of EFMF numbers 298 through 371. Prepared 2008 beneficiary Schedule K-1s for distribution to recipients of EFMF numbers 1 through 223. Discussed via telephone with Brad Sharp regarding finalizing 2008 income tax return. Coordinated K-1 distribution to members. Prepared K-1 transmittal letters for beneficiaries and directed staff on mailings to be prepared. Prepared 2008 beneficiary Schedule K-1s for distribution to recipients of EFMF numbers 224 through 297. Prepared 2008 beneficiary schedule K-1s for distribution to recipients of EFMF numbers 371 through 445. Resolved issues relating to the distribution of the 2008 Schedule K1's to recipients. Prepared 2008 beneficiary Schedule K-1s for distribution to recipients of EFMF numbers 1487 through 1641. Prepared 2008 beneficiary Schedule K-1s for distribution to recipients of EFMF numbers 1330 through 1486. HOURS 1.50 RATE 230.00 AMOUNT 345.00

03/27/09 03/27/09 03/27/09 03/27/09 03/28/09 03/30/09 03/31/09 04/01/09 04/01/09 04/02/09 04/03/09

Larsen, Leif Larsen, Leif Larsen, Leif Larsen, Leif Larsen, Leif Calder, Vernon Calder, Vernon Calder, Vernon Calder, Vernon Chan, Patty Larsen, Leif

2.40 2.20 1.70 1.90 3.80 3.40 6.10 0.20 2.30 1.50 3.90

305.00 305.00 305.00 305.00 305.00 500.00 500.00 500.00 500.00 200.00 305.00

732.00 671.00 518.50 579.50 1,159.00 1,700.00 3,050.00 100.00 1,150.00 300.00 1,189.50

04/03/09 04/04/09 04/04/09 04/06/09 04/06/09 04/07/09 04/07/09 04/07/09 04/07/09 04/07/09 04/07/09 04/07/09 04/08/09 04/08/09 04/08/09

Calder, Vernon Calder, Vernon Larsen, Leif Calder, Vernon Larsen, Leif Versteeg, Adrienne Allred, Connie Calder, Vernon Calder, Vernon Larsen, Leif Versteeg, Adrienne Versteeg, Adrienne Larsen, Leif Versteeg, Adrienne Versteeg, Adrienne

0.40 4.10 2.90 0.20 2.90 2.30 3.10 0.20 0.70 2.20 2.10 2.20 1.10 2.00 2.10

500.00 500.00 305.00 500.00 305.00 145.00 155.00 500.00 500.00 305.00 145.00 145.00 305.00 145.00 145.00

200.00 2,050.00 884.50 100.00 884.50 333.50 480.50 100.00 350.00 671.00 304.50 319.00 335.50 290.00 304.50

Page 7 of 12

efmxx-30966 Re: Estate Financial Mortgage Fund, LLC Service Rendered February 1, 2009 Through July 31, 2009 DATE 04/08/09 04/08/09 04/08/09 04/08/09 04/08/09 04/08/09 04/10/09 NAME Versteeg, Adrienne Versteeg, Adrienne Allred, Connie McKee, Katherine Dahl, Garrit Calder, Vernon Larsen, Leif DESCRIPTION Prepared 2008 beneficiary Schedule K-1s for distribution to recipients of EFMF numbers 1173 through 1329. Prepared 2008 beneficiary Schedule K-1s for distribution to recipients of EFMF numbers 1016 through 1172. Prepared 2008 beneficiary Schedule K-1s for distribution to recipients of EFMF numbers 445 through 1015. Prepare 2008 beneficiary Schedule K-1s for distribution to recipients of EFMF. Prepared 2008 extension of time to file income tax returns. Coordinated distribution of 2008 Schedule K-1 to members. Updated the 2008 EFMF work papers and returns to reduce overall theft loss to account for non recognition of theft loss for principles of EFMF. Reviewed and analyzed 2008 Schedule K-1 information to be provided to various members. Determined that revisions were required to Josh Yaguda Schedule K-1. Reviewed updated 2008 income tax returns. Updated certain 2008 EFMF Schedule K-1's to reflect changes to beneficiary information requested by Members and prepared individual K-1 requests. Performed tax research regarding proper tax return reporting of theft loss from fraudulent arrangement. Updated beneficiary information as directed by K-1 recipients of the 2008 EFMF return. Reviewed corrected Schedule K-1 for various investors. Prepared 2008 beneficiary Schedule K-1s for distribution to additional recipients of EFMF. Reviewed 2008 tax return filing extensions. Prepared 2008 beneficiary Schedule K-1s for distribution to additional recipients of EFMF. Prepared 2008 beneficiary Schedule K-1s for distribution to additional recipients of EFMF. Updated 2008 EFMF work papers to reflect all beneficiary change requests. Reconciled those IRA investors who transferred IRA accounts to determine which EFMF Schedule K-1's should be marked as final for 2008. Resolved issues regarding proper reporting on Schedule K-1 of accounts transferred during 2008. Updated the EFMF 2008 work papers to adjust for capital account changes as discovered through K-1 recipient correspondence and made corresponding journal entries to adjust the 2008 theft loss amount. Resolved issues regarding proper reporting on Schedule K-1 for interests that were transferred during 2008. Updated the EFMF 2008 federal and state tax returns to adjust for capital account changes as discovered through K-1 recipient correspondence and made corresponding journal entries to adjust the 2008 theft loss amount. Reconciled historical transaction information for all partners that transferred account numbers in 2008. Analyzed principal balance numbers for partners as they related to K1s. HOURS 2.20 2.30 5.20 2.50 0.50 0.80 2.80 RATE 145.00 145.00 155.00 85.00 230.00 500.00 305.00 AMOUNT 319.00 333.50 806.00 212.50 115.00 400.00 854.00

04/10/09

Calder, Vernon

1.90

500.00

950.00

04/10/09 04/10/09

Calder, Vernon Larsen, Leif

0.70 1.50

500.00 305.00

350.00 457.50

04/13/09 04/13/09 04/14/09 04/14/09 04/15/09 04/15/09 04/16/09 04/16/09 04/21/09

Calder, Vernon Larsen, Leif Calder, Vernon Allred, Connie Calder, Vernon Allred, Connie Allred, Connie Larsen, Leif Larsen, Leif

0.50 3.30 0.60 0.40 0.30 0.30 0.20 1.70 1.90

500.00 305.00 500.00 155.00 500.00 155.00 155.00 305.00 305.00

250.00 1,006.50 300.00 62.00 150.00 46.50 31.00 518.50 579.50

04/22/09 04/22/09

Calder, Vernon Larsen, Leif

0.40 2.50

500.00 305.00

200.00 762.50

04/22/09 04/22/09

Calder, Vernon Larsen, Leif

1.00 2.90

500.00 305.00

500.00 884.50

04/22/09 04/24/09

Armstrong, James Armstrong, James

2.00 1.90

220.00 220.00

440.00 418.00

Page 8 of 12

efmxx-30966 Re: Estate Financial Mortgage Fund, LLC Service Rendered February 1, 2009 Through July 31, 2009 DATE 04/29/09 05/04/09 05/12/09 05/28/09 NAME Calder, Vernon Armstrong, James Larsen, Leif Allred, Connie DESCRIPTION Reviewed corrections and updates made to 2008 income tax returns. Prepared schedule of EFMF investments in sold loans for Dan Noble. Prepared updated EFMF 2008 federal and state returns for e-filing. Prepared documentation and correspondence for the Trustee to file the 505(b) Tax Determination Request for Form 1065 for the year ended 12/31/08. Prepared documentation and correspondence for the Trustee to file US tax Form 1065 for the year ended 12/31/08. Prepared documentation and correspondence for the Trustee to file the 505(b) Tax Determination Request for Form 568 for the year ended 12/31/08. Prepared documentation and correspondence for the Trustee to file California Form 568 for the year ended 12/31/08. Prepared 2008 EFMF returns and attachments for signature and efiling and corresponded with Schedule K-1 recipients regarding 2008 tax treatment. Assisted in the preparation and documentation for the Trustee to file Form 1065, U.S. Return of Partnership Income, for Estate Financial Mortgage Fund for the year ending 12/31/08. Prepared tax documentation for review and analysis. Performed final review and signed 2008 income tax returns. Prepared 2008 Section 505(b) copy of California Income Tax Return. Prepared 2008 Trustee copy of Income Tax Returns. Prepared 2008 Section 505(b) copy of Federal Income Tax Return. Prepared documents for tax return. Prepared 2008 tax return package to be sent to Trustee for signature. Assigned tax staff to electronically file 2008 income tax returns. Determined status of prompt determination of tax requests. 7100 Income Tax Preparation HOURS 2.60 1.10 2.40 0.70 RATE 500.00 220.00 305.00 155.00 AMOUNT 1,300.00 242.00 732.00 108.50

05/28/09 05/28/09

Allred, Connie Allred, Connie

0.60 0.70

155.00 155.00

93.00 108.50

05/28/09 05/28/09

Allred, Connie Larsen, Leif

0.60 2.30

155.00 305.00

93.00 701.50

05/29/09

Versteeg, Adrienne

0.70

145.00

101.50

06/25/09 07/21/09 07/21/09 07/21/09 07/21/09 07/22/09 07/22/09 07/30/09

Allred, Connie Calder, Vernon Dahl, Garrit Dahl, Garrit Dahl, Garrit Allred, Connie Calder, Vernon Calder, Vernon

0.70 1.40 0.30 0.30 0.30 0.20 0.10 0.20 289.70

155.00 500.00 230.00 230.00 230.00 155.00 500.00 500.00

108.50 700.00 69.00 69.00 69.00 31.00 50.00 100.00 91,365.00

Total for Task Code: Task Code: 02/24/09 02/25/09 02/25/09 02/26/09 03/02/09 9200

Fee Application Preparation Drafted and reconciled fee application schedules required for the fee application. Researched information and prepared draft 1st interim fee application. Finalized time and costs for first interim fee application. Updated drafted narrative for first interim fee application. Updated 1st interim fee application and prepared for filing. 9200 Fee Application Preparation 2.60 2.80 1.50 1.50 0.20 8.60 120.00 155.00 470.00 470.00 470.00 312.00 434.00 705.00 705.00 94.00 2,250.00

Perry, Evelyn Allred, Connie Strong, Ray Strong, Ray Strong, Ray

Total for Task Code: Task Code: 03/20/09 04/07/09 9310

Creditor Committee Meeting Attendance / Preparation Drafted memorandum to be provided to investor committee regarding application of new Theft Loss safe harbor provisions. Discussed via telephone with Peter Susi regarding Schedule K-1 reporting. 9310 Creditor Committee Meeting Attendance / Preparation 1.90 0.10 2.00 500.00 500.00 950.00 50.00 1,000.00

Calder, Vernon Calder, Vernon

Total for Task Code:

Page 9 of 12

efmxx-30966 Re: Estate Financial Mortgage Fund, LLC Service Rendered February 1, 2009 Through July 31, 2009 DATE 04/27/09 NAME Larsen, Leif DESCRIPTION Responded to beneficiary inquiries and updated beneficiary information as directed by K-1 recipients of the 2008 EFMF return and researched capital account balances as claimed by members to confirm proper 12/31/08 balances. Responded to beneficiary inquiries and updated beneficiary information as directed by K-1 recipients of the 2008 EFMF return and researched capital account balances as claimed by members to confirm proper 12/31/08 balances. Responded to inquiries from various investors regarding questions they had on Schedule K-1 reporting. Discussed via telephone with Dennis Bean, CPA for EFMF investor, regarding losses reported on Schedule K-1. Responded to K-1 recipient questions regarding 2008 tax issues and updated beneficiary information as necessary. Responded to K-1 recipient questions regarding 2008 tax issues and updated beneficiary information as necessary. Responded to beneficiary inquiries and updated beneficiary information as required. Answered questions regarding proper reporting of theft loss by members. Responded to recipients of Schedule k-1 and researched recipient investment history. Responded to K-1 recipients regarding tax treatment of reported activity. Responded to K-1 recipients inquiries regarding tax treatment of activity reported on 2008 K-1's. Responded to K-1 recipient questions and to questions received from recipient tax preparers regarding potential tax treatment of reported items and researched history of contributions, income reported and distributions of certain recipients. Responded to 2008 Schedule K-1 recipients and/or their tax preparers regarding tax treatment of reported activity. Responded to 2008 Schedule K-1 recipients and/or their tax preparer regarding tax treatment of reported activity. Responded to investor inquiry regarding proper tax reporting of losses reported on 2008 Schedule K-1. Responded to various Schedule K-1 recipients. Responded to inquires from investors regarding Schedule K-1 reporting. Responded to various Schedule K-1 recipients. Followed up with various K-1 recipients. Prepared additional Schedule K-1's requested by K-1 recipients. Prepared additional Schedule K-1's requested by K-1 recipients and researched investors activities. Corresponded with Schedule K-1 recipients and prepared additional copies of 2008 K-1's requested. Corresponded with Schedule K-1 recipients and prepared additional copies of 2008 K-1's requested. Responded to inquiries of Schedule K-1 recipients. Responded to K-1 recipients. Responded to K-1 recipients. Corresponded with K-1 recipients. HOURS 2.20 RATE 305.00 AMOUNT 671.00

04/28/09

Larsen, Leif

1.50

305.00

457.50

04/28/09 04/29/09 04/30/09 05/01/09 05/04/09 05/04/09 05/07/09 05/11/09 05/12/09 05/13/09

Calder, Vernon Calder, Vernon Larsen, Leif Larsen, Leif Larsen, Leif Calder, Vernon Larsen, Leif Larsen, Leif Larsen, Leif Larsen, Leif

0.30 0.10 1.40 0.50 2.20 0.10 2.20 0.60 0.90 2.70

500.00 500.00 305.00 305.00 305.00 500.00 305.00 305.00 305.00 305.00

150.00 50.00 427.00 152.50 671.00 50.00 671.00 183.00 274.50 823.50

05/14/09 05/15/09 05/15/09 05/19/09 05/19/09 05/20/09 05/21/09 05/26/09 05/27/09 06/01/09 06/03/09 06/08/09 06/09/09 06/10/09 06/15/09

Larsen, Leif Larsen, Leif Calder, Vernon Larsen, Leif Calder, Vernon Larsen, Leif Larsen, Leif Larsen, Leif Larsen, Leif Larsen, Leif Larsen, Leif Larsen, Leif Larsen, Leif Larsen, Leif Larsen, Leif

1.90 0.50 0.70 1.70 0.10 1.20 0.40 1.50 0.90 2.10 0.30 1.10 0.50 2.20 0.50

305.00 305.00 500.00 305.00 500.00 305.00 305.00 305.00 305.00 305.00 305.00 305.00 305.00 305.00 305.00

579.50 152.50 350.00 518.50 50.00 366.00 122.00 457.50 274.50 640.50 91.50 335.50 152.50 671.00 152.50

Page 11 of 12

efmxx-30966 Re: Estate Financial Mortgage Fund, LLC Service Rendered February 1, 2009 Through July 31, 2009 DATE Task Code: 02/03/09 03/04/09 03/26/09 NAME 9325 DESCRIPTION Investor Communications / Inquiries Discussed via telephone with tax preparer for investors regarding status of 2008 Schedule K-1. Discussed via telephone with CPA for various investors regarding amended K-1s to be issued to partners of EFMF. Discussed via telephone with Dan O'Hare, CPA for several EFMF investors, regarding Theft Loss deductions to be reported on 2008 income tax return, pursuant to provisions of Rev. Proc. 2009-20. Discussed via telephone with accountant for investor regarding status of 2008 income tax returns. Responded to investor inquiries regarding items reported on 2008 Schedule K-1. Responded to inquiries from various investors regarding Theft Loss reported on 2008 Schedule K-1. Responded to numerous K-1 recipient questions related to the 2008 EFMF return. Analyzed and responded to inquiry from partner Mike Rivett regarding his K1. Responded to beneficiary inquiries and updated beneficiary information as directed by K-1 recipients of the 2008 EFMF return. Responded to inquiries from various investors regarding questions on 2008 Schedule K-1. Responded to various investor inquiries regarding 2008 Schedule K1. Responded to beneficiary inquiries and updated beneficiary information as directed by K-1 recipients of the 2008 EFMF return. Responded to inquiries from various investors regarding 2008 Schedule K-1. Responded to beneficiary inquiries and updated beneficiary information as directed by K-1 recipients of the 2008 EFMF return. Responded to inquiries from investors regarding amounts reported on 2008 Schedule K-1. Responded to beneficiary inquiries and updated beneficiary information as directed by K-1 recipients of the 2008 EFMF return. Responded to inquiry from partner Craig George who had an error that was not properly fixed by EFMF in 2007. Responded to beneficiary inquiries and updated beneficiary information as directed by K-1 recipients of the 2008 EFMF return. Responded to beneficiary inquiries and updated beneficiary information as directed by K-1 recipients of the 2008 EFMF return. Responded to beneficiary inquiries and updated beneficiary information as directed by K-1 recipients of the 2008 EFMF return. Analyzed partner interest payment in response to partner inquiry. Responded to beneficiary inquiries and updated beneficiary information as directed by K-1 recipients of the 2008 EFMF return and researched capital account balances as claimed by members to confirm proper 12/31/08 balances. Responded to beneficiary inquiries and updated beneficiary information as directed by K-1 recipients of the 2008 EFMF return and researched capital account balances as claimed by members to confirm proper 12/31/08 balances. 0.10 0.10 0.80 500.00 500.00 500.00 50.00 50.00 400.00 HOURS RATE AMOUNT

Calder, Vernon Calder, Vernon Calder, Vernon

04/02/09 04/10/09 04/13/09 04/13/09 04/13/09 04/14/09 04/14/09 04/15/09 04/15/09 04/16/09 04/16/09 04/17/09 04/17/09 04/20/09 04/20/09 04/21/09 04/22/09 04/22/09 04/23/09

Calder, Vernon Calder, Vernon Calder, Vernon Larsen, Leif Armstrong, James Larsen, Leif Calder, Vernon Calder, Vernon Larsen, Leif Calder, Vernon Larsen, Leif Calder, Vernon Larsen, Leif Armstrong, James Larsen, Leif Larsen, Leif Larsen, Leif Armstrong, James Larsen, Leif

0.10 0.20 1.40 5.50 0.90 5.40 1.20 0.10 3.50 0.50 2.20 0.30 4.30 0.90 5.90 2.60 3.80 0.80 2.70

500.00 500.00 500.00 305.00 220.00 305.00 500.00 500.00 305.00 500.00 305.00 500.00 305.00 220.00 305.00 305.00 305.00 220.00 305.00

50.00 100.00 700.00 1,677.50 198.00 1,647.00 600.00 50.00 1,067.50 250.00 671.00 150.00 1,311.50 198.00 1,799.50 793.00 1,159.00 176.00 823.50

04/24/09

Larsen, Leif

3.90

305.00

1,189.50

Page 10 of 12

efmxx-30966 Re: Estate Financial Mortgage Fund, LLC Service Rendered February 1, 2009 Through July 31, 2009 DATE 06/24/09 06/30/09 07/07/09 07/14/09 07/14/09 NAME Larsen, Leif Larsen, Leif Larsen, Leif Dahl, Garrit Calder, Vernon 9325 DESCRIPTION Prepared extra Schedule K-1 copies requested by recipients. Responded to Schedule K-1 recipient tax questions. Responded to K-1 recipient questions. Analyzed 2007 Form K-1 issued to Robert Pettit. Responded to inquiries from investors regarding filing date of 2007 income tax returns. Investor Communications / Inquiries HOURS 0.40 0.50 0.20 0.80 0.20 79.60 RATE 305.00 305.00 305.00 230.00 500.00 AMOUNT 122.00 152.50 61.00 184.00 100.00 25,225.50

Total for Task Code:

Total Professional Services

451.50

138,893.00

Page 12 of 12

efmxx-30966 Estate Financial Mortgage Fund, LLC - Accountants to the Trustee February 1, 2009 through July 31, 2009 TASK CODE SUMMARY TASK CODE DESCRIPTION 5000 7000 7100 9200 9310 9325 Cash Receipts and Disbursement Analysis General Tax Compliance / Planning Income Tax Preparation Fee Application Preparation Creditor Committee Meeting Attendance / Preparation Investor Communications / Inquiries Total Professional Services Average Rate 245.37 385.38 315.38 261.63 500.00 316.90 307.63

HOURS 61.00 10.60 289.70 8.60 2.00 79.60 451.50

AMOUNT 14,967.50 4,085.00 91,365.00 2,250.00 1,000.00 25,225.50 138,893.00

LECG, LLC Fed ID No. 94-3370415

EXHIBIT E

Estate Financial Mortgage Fund, LLC - Accountants to the Trustee February 1, 2009 through July 31, 2009

Expense Category Pacer and Data Charges Postage Photocopy and Reproduction Total Expenses Due $

Amount 2.00 1,906.76 370.60 2,279.36

LECG, LLC Fed ID No. 94-3370415

EXHIBIT F

efmxx-30966 Estate Financial Mortgage Fund, LLC - Accountants to the Trustee February 1, 2009 through July 31, 2009 EXPENSES Date Name Description Data Retrieval Data Retrieval -- Vendor Pacer Service Center Total: Data Retrieval Postage Postage for K-1 Investors Postage Postage Postage Postage Postage Total: Postage Photocopies Photocopies ($.20 x 117) Photocopies ($.20 x 60) Photocopies ($.20 x 60) Photocopies ($.20 x 255) Photocopies ($.20 x 67) Photocopies ($.20 x 70) Photocopies ($.20 x 105) Photocopies ($.20 x 59) Photocopies ($.20 x 35) Photocopies ($.20 x 32) Photocopies ($.20 x 83) Photocopies ($.20 x 75) Photocopies ($.20 x 172) Photocopies ($.20 x 199) Photocopies ($.20 x 84) Photocopies ($.20 x 105) Photocopies ($.20 x 144) Photocopies ($.20 x 43) Photocopies ($.20 x 71) Photocopies ($.20 x 38) Photocopies ($.20 x 41) Total: Photocopies Total Expenses Amount

07/03/09

LECG

2.00 2.00

04/08/09 04/14/09 04/14/09 05/07/09 05/14/09 05/15/09

LECG LECG LECG LECG LECG LECG

1,893.06 3.00 5.60 3.78 0.44 0.88 1,906.76

03/17/09 03/20/09 03/20/09 03/23/09 03/23/09 03/27/09 04/07/09 04/15/09 04/21/09 04/27/09 05/01/09 05/12/09 05/27/09 05/28/09 06/15/09 06/15/09 06/19/09 06/24/09 07/22/09 07/23/09 07/28/09

LECG LECG LECG LECG LECG LECG LECG LECG LECG LECG LECG LECG LECG LECG LECG LECG LECG LECG LECG LECG LECG

23.40 12.00 12.00 51.00 13.60 1.40 21.00 11.80 7.00 6.40 16.60 15.00 34.40 39.80 16.80 21.00 28.80 8.60 14.20 7.60 8.20 370.60 2,279.36

EXHIBIT G

Le CG
V emon L. Calder, Director
201 South Main Street, Suite 450 Salt Lake City, UT 84111 Direct: 801 .321 .0053 Fax: 801.364 .6230 Email: vcalder@lecg .com

Summary

Vernon L. Calder, a Director with LECG, has nearly twenty-six years of experience in public accounting specializing in tax services. Mr. Calder is a Certified Public Accountant (CPA) and a Certified Insolvency and Reorganization Advisor (CIRA) . For the last eighteen years he has specialized in bankruptcy tax compliance and planning. Prior to the acquisition of Neilson Elggren LLP ("NE") by LECG, LLC, Mr. Calder was the Partner-in-Charge of the tax practice of Neilson Elggren LLP. Prior to joining NE Mr. Calder was a Sr. Manager and tax consultant for Arthur Andersen ; a Sr. Manager for Neilson Elggren Durkin & Company; a Manager for the international accounting firms of Ernst & Young; and a Senior Tax Consultant for Touche Ross & Co. Mr. Calder has provided a wide variety of tax services to clients throughout his career. His efforts have focused on special tax issues in corporate, partnership and individual bankruptcy, formation of and tax compliance for liquidating trusts; representation of taxpayers before federal and state taxing authorities; tax consulting with regard to "change of ownership" issues; tax consulting and compliance for U.S. companies operating internationally; tax consulting and compliance for corporations with multi-state income using "water's edge" method; analysis of deductible ordinary and necessary business expenses; and supervising tax compliance for high technology companies. Mr. Calder's clients have included companies ranging in size from $1 billion in annual sales to small development companies in many industries such as computer and peripherals, software, semiconductors, life sciences, energy, hospitality, professional sports and automotive parts rebuilders. In addition, he has provided tax services to a variety of clients including individuals, corporations, partnerships, decedent estates, trusts, and bankruptcy estates. Services rendered include tax compliance, representation before taxing authorities, bankruptcy court appearances, testifying as an expert witness, and tax consulting and planning . Mr. Calder has been a featured speaker at many firm sponsored seminars covering special bankruptcy tax issues, new tax legislation and general tax concepts. He has written numerous articles and other publications.

Case Examples

Estate Financial , Inc. -Responsible for tax compliance and consulting . Consulted with investors regard ing deduction of theft losses in specified fraudulent arrangements. Cedar Funding , Inc.- Responsible for tax compliance and consulting. Consulted with investors regarding deduction of theft losses in specified fraudulent arrangements.

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Le*Nature's, Inc.- Represented trustee in defending IRS examination of prepetition tax liabilities. Successful in eliminating prepetition tax claim in excess of $30 million. Responsible for tax compliance and consulting. Mike Tyson Bankruptcy Estate- Responsible for defending IRS examination of prepetition tax years. Responsible for tax compliance and tax consulting. Reed Slatkin Bankruptcy Estate - Responsible for all tax compliance and tax consulting work. Represented trustee in defending IRS examination of prepetition tax liabilities of the debtor. Extensive involvement in formation of Liquidating Trust created pursuant to Chapter 11 Plan of Reorganization. JMS Automotive - Rebuilder of Automotive Parts "'""" Responsible for all tax compliance and tax consulting work. Represented trustee in defending IRS examination of pre-petition tax liabilities of the debtor. Bonneville Pacific Corporation--Geothermal Energy Corporation. Responsible for all tax compliance and tax consulting work. Extensive involvement in disposition of subsidiary stock. Holder's Capital Corporation--Ownership and management of hotels. Responsible for tax planning relating to restructuring of affiliated groups of corporations. Extensive work with provisions relating to taxation of affiliated groups. Represented Trustee in defending Internal Revenue Service examination of administrative tax liability. Property Mortgage Company, Inc.-Private mortgage company. Responsible for all tax compliance and tax consulting for several corporations and real estate partnerships. Bankruptcy--Responsible for tax compliance and tax consulting for various bankruptcies. Individual, partnership, and corporate. Advise trustees and attorneys concerning bankruptcy tax issues. Provide testimony in bankruptcy court. Various individuals--Tax Compliance, advisor and Taxpayer Advocate. Supervised tax compliance work for many top-level executives. Taxpayer advocate before IRS in attempt by the IRS to garnish wages for delinquent taxes.

Industry Experience

Aviation Real Estate Agricultural Restaurant Convenience Store/Gas Retail Amusement and Recreation Services Healthcare Electronic and Other Electrical Equipment Telecommunications Online Retailing

Automotive Construction Energy Transportation Legal and accounting Security and Commodity Brokers Insurance Carriers Insurance Agents and Brokers Furniture and Fixtures Technology

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Lecc
Education Bachelor of Science, Brigham Young University Master of Accountancy/Taxation, Brigham Young University

Professional Memberships Certified Fraud Examiner Association of Insolvency and Restructuring Advisors American Bankruptcy Institute American Institute of Certified Public Accountants Utah Association of Certified Public Accountants National Association of Bankruptcy Trustees

Instruction, Presentations & Publications Mr. Calder has provided instruction on the subject of taxation of bankruptcy estates at conferences for the American Bankruptcy Institute, the Association of Insolvency and Restructuring Advisors, and the Mississippi Bankruptcy Conference, Inc. Co-author of 2005 Bankruptcy Revision, Implications for Business and Financial Advisors published jointly by the American Institute of Certified Public Accountants and the Association of Insolvency and Restructuring Advisors in 2005.

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ec~c~

D. Ray Strong, Director, LECG

201 South Main Street, Suite 450 Salt Lake City, UT 84111 Direct: 801.321.0074 Fax: 801.364.6230 Email: rstrong@lecg.com SUMMARY D. Ray Strong is a director at LECG. Mr. Strong is a former partner of Neilson Elggren LLP, and a former manager in Arthur Andersen's global corporate finance practice. He is a certified public accountant, certified fraud examiner, and certified insolvency and restructuring advisor with more than 15 years experience providing investigative accounting, bankruptcy, and litigation services. Mr. Strong has been involved in numerous bankruptcy and insolvency matters including court appointments as estate manager, examiner, receiver, accountant to the trustee, accountant to the creditors' committee, and accountant to the debtor. His experience includes the liquidation of assets, investigation of alleged insider dealings, liquidation and substantive consolidation analyses, plan feasibility analyses, plan preparation, investigation and pursuit of preferences, fraudulent transfers, and other causes of action, solvency analyses, and claims resolution. He has also operated various companies in bankruptcy and receivership proceedings and provided services that include analyzing operating viability, developing operational and cash flow forecasts and projections, restructuring accounting and information technology functions, analyzing and implementing internal controls, resolving employee retention and benefit issues, identifying and resolving insurance and environmental issues, restructuring marketing and business development efforts, implementing cash flow and cash collateral management systems, developing cost control measures, reconstructing financial data and information, performing various financial analyses and investigations, and managing day-to-day operating and accounting activity. Mr. Strong has provided civil and criminal litigation support services including the investigation of fraud and mismanagement, tracing of funds, partner disputes, lost profit damage analyses, breach of contract damage analyses, economic analyses, insurance claims, family law and divorce matters, and personal injury damages. Mr. Strong has extensive training and experience investigating fraud and mismanagement including financial statement fraud, embezzlement, Ponzi schemes, check kiting, bank fraud, bankruptcy fraud, inventory schemes, and payroll schemes. He has also given presentations and seminars relating to various fraud, bankruptcy, and accounting topics. CASE EXAMPLES Mr. Strong is currently working with the Chapter 11 bankrupty trustee of Le-Nature's, Inc., a water, juice, and tea bottling company in Latrobe, Pennslyvania, which engaged in a massive fraud against various financial institutions and creditors. Mr. Strong is leading a massive forensic accounting analysis and investigation to reconstruct and determine the actual financial activities of the debtor that allegedly defrauded creditors of more than $800 million. More than $1 billion of transactions have been identified and traced to date. Mr. Strong has also assisted the trustee with the preparation and liquidation of the bottling plant and related assets, termination, and wind-down of business 675 Third Ave., 261h Floor New York, NY 10017 Direct: 212.621.4186 Fax: 212.468.7879

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operations, identification and analysis of potential causes of action, recovery and preservation of more than 12 terabytes of electronic data, and the identification and preservation of more than 1,200 boxes of debtor's documentation. Mr. Strong was appointed by the United States Bankruptcy Court as examiner with expanded powers of Tri-Valley Distributing, Inc., a wholesale and retail petroleum business. His duties included operating and liquidating a wholesale fuel distribution and bulk oil business, over 45 convenience stores, several fast food franchises , and a sizeable semi tractor and tank trailer fleet with annual revenues of more than $200 million and claims exceeding $35 million. The debtors operated in Arizona, California, Nevada, Wyoming and Utah. Mr. Strong was also responsible for implementing a liquidating plan, investigating various transactions and activities between the debtors and related parties, supervising numerous environmental remediation projects, and identifying and litigating various causes of action . Mr. Strong was appointed by the United States Bankruptcy Court as successor estate manager of Natural Wonders, Inc., a national retail chain. The debtor operated as a specialty gift retailer with over 260 stores located throughout the country. Mr. Strong was responsible for liquidating the debtors' remaining assets, identifying and litigating various causes of action, resolving and negotiating disputed claims, and making distributions to creditors pursuant to the confirmed plan and disclosure statement. More than 3000 claims were resolved and more than $18 million was distributed to holders of allowed claims. Mr. Strong was appointed by the United States Bankruptcy Court as examiner of Medical Software Solutions, a medical software company. The company created a web-based back-office software product to assist physicians with the management of their medical practices. His court mandate required the review and analysis of a proposed debtor-in-possession (DIP) financing agreement, asset purchase agreement, and investigation of alleged inappropriate insider dealings. Mr. Strong interviewed and deposed several key debtor personnel, venture capitalist, potential asset purchasers and other relevant insiders. Additionally, he reviewed and analyzed a large volume of documentation obtained from various parties and reported his findings to the court by written reports and testimony. Mr. Strong's firm was appointed receiver of two Nissan auto dealerships, Kirkland and Bellevue Nissan, in a state court insolvency proceeding in the state of Washington. He was the partner-incharge of this engagement with sole responsibility for all decision making on behalf of the firm. His responsibilities included developing cash and asset controls to protect and preserve the secured creditor's collateral, investigating potential claims, analyzing and determining the viability of on-going operations, making recommendations to the court regarding the future existence of the dealerships, locating and liquidating the debtor's new and used car inventory, parts, fixed assets, intangible assets, and receivables . Mr. Strong was engaged by a large national bank to investigate the financial dealings of Graham Motors, which included three automotive dealership locations with Ford , Chevrolet, Chrysler, Dodge, Jeep, and Subaru franchises in Wyoming. His investigation included the analysis of cash and flooring activity, identification of collateral, analysis of flooring transmittals and vehicle inventories, identification of existing liabilities, and calculation of loss due to the fraudulent conduct of the owner and his associates. Mr. Strong also assisted the bank in winding-down the dealership's operations including processing outstanding finance contracts , collection of outstanding trade and manufacturer receivables , and processing of state license and titling applications. Mr. Strong performed an investigation of a real estate partnership on behalf of a silent general partner. His investigation included analyzing current operations, determining reasonableness of

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development and construction costs, unauthorized payments to the active general partner, and unauthorized real property transfers to the active general partner and related insiders. The investigation resulted in settlement of approximately $2.7 million . Mr. Strong supervised the analysis of development and construction cost allocations relating to a joint venture agreement between a real estate developer and landowner. He determined the reasonableness of development and construction costs and investigated whether costs from other projects, unrelated to the joint venture agreement, were allocated to the development at the detriment of the landowner. Mr. Strong assisted in operating Magic Ford, one of the largest Ford/Mercury/Lincoln automobile dealerships in the country, to assist the trustee in selling the business as a going concern. His services included the management of cash flow, identification of assets and liabilities, analysis of historical and current operations, supervision of remaining employees, and various other daily operating activities. Additionally, Mr. Strong assisted the trustee with investigating the financial dealings of the dealership, owner, and various associates. His investigation and analyses helped uncover various fraudulent schemes and aided the trustee in pursing avoidance actions. Mr. Strong operated Express.com, a large e-commerce company, for a two-month period until the trustee could sell the company as a going concern . His services included cash management, analysis of historical and on-going operations, implementation of cost cutting strategies, negotiations with credit card merchants, financial reporting, preparation of financial and operational statistics to solicit potential buyers, supervision of remaining employees, web page management, and various day-to-day activities. Mr. Strong's efforts aided the trustee in the sale of all company assets resulting in substantial values in excess of liquidation . Additionally, he has analyzed and investigated filed claims to determine amounts to be allowed and made in creditor distributions. Mr. Strong supervised the financial analysis requested by the Creditors' Committee of Stueve Brother Farms. Stueve Brother Farms was a family business that operated one of California's largest dairy operations. The company filed a Chapter 11 bankruptcy petition resulting from a $10 million judgment obtained by a competitor for alleged trade secret and patent violations. The services performed included the identification and analysis of claims, an analysis of the disclosure statement and plan of reorganization filed by the debtor, identification of potential fraudulent transfers, assistance with the negotiation of plan default provisions, and an analysis of the dairy farm operations. Mr. Strong supervised the operations of the Cleaning Network, a multi-state jan itorial and cleaning company, to preserve collateral values of the secured creditor. He was responsible for the analysis of historical and current operations, identification and collection of outstanding receivables, identification of company assets, supervision of employees in various states, financial reporting , cash flow management, and daily operating activities. Additionally, Mr. Strong assisted the trustee with the investigation of preferences and fraudulent transfers, claims analysis, and creditor distributions. Mr. Strong assisted the trustee of Bonneville Pacific Corporation, an independent power producer, in a damage study, which included tracing and categorizing transactions in excess of $5 billion over a sixyear period. Recoveries exceeded $200 million from more than 30 defendants including auditors, law firms , underwriters, and insiders. Mr. Strong was engaged by a fitness equipment manufacturer as an expert witness to refute damages asserted by the plaintiff for alleged unpaid royalties . He analyzed sales volumes, pricing, and manufacturing cost structures to determine a reasonable royalty for the sales of an add-on fitness accessory, which the plaintiff alleged he designed.

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Mr. Strong supervised the lost profit damage analysis involving a low-level nuclear waste facility. Responsibilities included analyzing current operations, industry data, industry regulations , assisting counsel with depositions and interrogatories, reviewing and analyzing plaintiff's damages, coordinating various data obtained from other experts relating to transportation, construction, industry regulations , hydrology, and geology, and the preparation of a lost profit damage analysis. Mr. Strong investigated the controller of a small property management company based on allegations of embezzlement. His analysis uncovered various fraudulent schemes resulting in losses of approximately $300,000 . The investigation resulted in a criminal conviction including the payment of restitution. Mr. Strong supervised the damage analysis relating to the infringement of a patent for a HALON fire suppression chemical substitute. He prepared and submitted a report refuting damages alleged by the plaintiff's expert to an arbitration panel.

INDUSTRY EXPERIENCE
Real Estate Automotive Construction Retail Agricultural Energy Service Wholesale C-Store/Fuel Distribution Internet/Telecommunica tion Technology Transportation Waste Disposal Manufacturing Restaurant Software

EMPLOYMENT HISTORY
LECG, Director (2005 to present) Neilson Elggren LLP, Partner (2000-2005) Arthur Andersen LLP- Manager (1998-2000) Neilson, Elggren, Durkin & Company- Senior Accountant (1996- 98), Staff Accountant (1995-96) Lynn M. Carlson & Company - Staff Accountant (1990-1994)

EDUCATION
Master of Professional Accountancy, University of Utah Bachelor of Science in Accounting , Westminster College of Salt Lake City

LICENSES AND CERTIFICATIONS

Certified Certified Certified Certified Certified Public Accountant, California Public Accountant, Delaware Public Accountant, Utah Fraud Examiner Insolvency and Restructuring Advisor

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PROFESSIONAL LICENSES AND CERTIFICATIONS

American Institute of Certified Public Accountants Utah Association of Certified Public Accountants Association of Insolvency and Restructuring Advisors Association of Certified Fraud Examiners American Bankruptcy Institute Turnaround Management Association

PRESENTATIONS AND INSTRUCTION

Instructor, University of Utah, David Eccles School of Business. Graduate Level Course: "Fraud Examination and Forensic Accounting", Spring Semester 2007 & 2008 Instructor, Westminster College of Salt Lake City. "MBA Survey of Accounting", Spring Semester 1999 American Bankruptcy Institute, Rocky Mountain Conference. "Understanding Financial Statements from a Liquidation Perspective", February 2005 Association of Certified Insolvency and Restructuring Advisors. "Conducting a Fraud Investigation", June 2003 Utah Association of Certified Fraud Examiners. "Financial Statement Fraud", January 2000 Arizona Society of CPAs Conference. "Defining Forensic Accounting", September 1999 University of Utah. "Business Fraud", September 1999 Brigham Young University. "Business Fraud", March 1999 Utah State University. "Business Fraud", October 1998 Utah Association of Internal Auditors. "Financial Statement Fraud", May 1998 Los Angeles Bankruptcy Trustee Administrators. "Bankruptcy Fraud", April 1998 University of Utah. "Internal Controls", September 1997

PUBLICATIONS
Internal Auditing: Co-authored article titled "Are we giving fraud perpetrators a license to steal?", September/October 1998, Volume 14, Number 5.

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Leif M. Larsen, Managing Consultant
201 South Main Street, Suite 450 Salt Lake City, UT 84111 Direct: 801.321.0080 Fax: 801.364.6230 Email: llarsen@lecg.com
Summary

Lei M. Larsen, a Managing Consultant with LECG, LLC has over twelve years experience in tax return preparation. Prior to working at LECG, LLC, he was with Neilson Elggren, LLP, working as a Tax Manager. Mr. Larsen is a Certified Public Accountant and is an Enrolled Agent. Mr. Larsen is also a Certified Insolvency Restructuring Advisor. His experience also includes all areas of payroll taxes and sales & use taxes, including return preparation. A few of the cases in which Mr. Larsen has been involved include: Magic Ford and Magic Lincoln - Accountants to the Trustee. Prepared corporation tax returns for both Magic Ford and Magic Lincoln. Analyzed tax issues relating to final dispositions of assets for the bankruptcy estates. Leslie Todd Bankruptcy Estate- Accountants to the Trustee. Prepared initial and final fiduciary tax returns for Individual bankruptcy case. Analyzed treatment of settlement proceeds received from breach of contract related to sale of debtors business to an outside party. Reed Slatkin - Accountants to the Trustee. Prepared individual and S Corporation tax returns and numerous information returns for pass through entities, including Partnerships, and LLCs. Analyzed the many tax issues relating to the formation of a Liquidating Trust pursuant to the plan confirmation. Also prepared Liquidating Trust returns having over three hundred beneficiaries and prepared and maintained databases to track all pertinent beneficiary information. Metropolitan Mortgage & Securities Co., Inc. - Accountants to the Trustee. Prepared consolidated income tax returns and prepared Liquidating Trust returns having over seven thousand beneficiaries. National Summit Corporation - Accountants to the Trustee. Prepared consolidated income tax returns and prepared Liquidating Trust returns having over two thousand beneficiaries.

Michael G. Tyson - Accountants to the Debtor in Possession. Prepared individual and S Corporation tax returns. Also prepared Liquidating Trust returns having over one hundred beneficiaries and prepared and maintained databases to track all pertinent beneficiary information. JMS Automotive Rebuilders, Inc. - Accountants to the Trustee. Analyzed many tax documents relating to the Internal Revenue Service' audit of multiple tax years. Prepared corporate tax return.

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Webvan Group, Inc. and Subsidiaires - Accountants to the Trustee. corporate tax returns which included assets of over one billion dollars. Prepared consolidated

Licenses & Certifications

Certified Public Accountant- Licensed in the state of California Enrolled Agent- Internal Revenue Service Certified Insolvency & Restructuring Advisor- Association of Insolvency and Restructuring Advisors

Education

Bachelor of Science in Accounting, University of Utah

Professional Memberships

California Society of CPAs

American Institute of Certified Public Accountants

Association of Insolvency and Restructuring Advisors American Bankruptcy Institute
Employment History

2005 - Present

LECG, LLC Managing Consultant (2007- Present) Consultant (2005 - 2006) Neilson Elggren LLP Manager (2005) Experienced Senior (2002 - 2005) Senior (2000 - 2001) lnterwest Business Group, Inc. Manager (1999 - 2001) Staff Accountant (1996- 1998)

2001-2005

1996-2001

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Daniel R. Noble, Managing Consultant
201 South Main Street, Suite 450 Salt Lake City, Utah 84111 Direct 801.321.0081 Fax: 801 .364.6230 Email: dnoble@lecg.com

Summary Daniel R. Noble is a Managing Consultant with LECG, LLC. Mr. Noble is a Certified Public Accountant and a Certified Insolvency and Restructuring Advisor with over nine years of public accounting experience in the fields of attestation, investigative accounting, litigation services and bankruptcy accounting. Prior to LECG, Mr. Noble worked with Neilson Elggren LLP and with PricewaterhouseCoopers LLP in their Silicon Valley office. Mr. Noble has provided both civil and criminal litigation support services related to the investigation of fraud and mismanagement, partner disputes, lost profit damages, patent infringement damages, breach of contract, economic analyses, tracing of funds, and financial record reconstruction . Additionally, he has training and experience investigating fraud and mismanagement including financial statement fraud, embezzlement schemes, "Ponzi" schemes, check kiting, bank fraud, and bankruptcy fraud . Mr. Noble has also given various presentations relating to business fraud, financial statement fraud , bankruptcy fraud, and other fraud schemes. Mr. Noble's involvement in bankruptcy matters for both Chapter 11 and Chapter 7 filings includes services as Accountants to the Trustee, Accountants to the Liquidating Estate Manager and Accountants to the Debtor. Mr. Noble's responsibilities have included the preparation of various bankruptcy court filings, reports and schedules, analyses relating to liquidation and substantive consolidation issues, plan preparation and feasibility, and the identification and investigation of preferences, fraudulent transfers, post-petition transfers and other adversarial claims. He has assisted Trustees in operating Chapter 11 companies which included analyzing prior and on-going operations, cash flow projections, financial data reconstruction, tracing of funds, budgeting, hidden asset searches, solvency analysis and other day-to-day accounting functions .

Case Examples Natural Wonders Inc./World of Science- Chapter 11 Bankruptcy Husting Land and Development -Chapter 11 Bankruptcy Webvan, Inc. -Chapter 11 Bankruptcy John & Shanna Adkins- Chapter 11 Bankruptcy Horseshoe Bend Hydroelectric- Fraud Investigation Daw Technologies- Fraud Investigation Custom Coach, Inc. - Fraud Investigation Legend Sales and Marketing - Fraud Investigation Wells Fargo v. Kirkland Nissan and Swanson Bellevue, Inc. -Automotive Dealership Receivership ACT -Chapter 11 Bankruptcy/Fraud Investigation JD Services - Accountants to the Trustee Tri-Valley Distributing -Accountants to Examiner with Expanded Powers

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Student Finance Corp. - Chapter 11 Bankruptcy/Fraud Investigation Arthur D. Little- Valuation/Solvency Study Sandy-Hills Smith Investment- Valuation Med Diversified vs. Addus Healthcare -Valuation Schoenhals vs. Kimball Doxey - Damage experts Ronald Russo vs. Ballard Medical - Damage experts Bruce Lefavi vs. Utah Water Company- Damage Experts Energy Absorption Systems vs. Carsonite International, Inc. -Damage Experts Balboa Threadworks vs. Embroidery Central , Inc. - Damage Experts Summit Financial vs. Walthers Oil - Fraud investigation Estate of Archie D. Burton -Asset tracing I Solvency analysis Roman Catholic Bishop of San Diego- Asset tracing and fraud investigation

Industry Experience

Automotive Construction Financial I Securitizations Internet I Telecommunications

Manufacturing Retail Real Estate Transportation

Employment History

2005 - Present

LECG, LLC Consultant Neilson Elggren LLP Manager (2005) Senior Accountant (2002- 2004) Staff Accountant (2001 - 2002) PricewaterhouseCoopers, LLP Senior Accountant (2000 - 2001) Staff Accountant (1999- 2000)

2001-2005

1999-2001

Education

Bachelor of Science in Accounting, University of Utah, May 1998 Master of Professional Accountancy, University of Utah, May 1999

Licenses & Certifications

Certified Public Accountant- Utah Certified Insolvency & Restructuring Advisor

Professional Memberships

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Garrit Dahl, Associate
201 South Main Street, Suite 450 Salt Lake City, Utah 84111 Phone: 801.364.6233 Fax: 801 .364.6230 Email: gdahl@lecg.com
Summary

Garrit Dahl is an Associate with the LECG tax department in the Salt Lake City, Utah office. Mr. Dahl joined LECG as a result of LECG's acquisition of Neilson Elggren, LLP in November 2005. Prior to joining Neilson Elggren , Mr. Dahl graduated with a Master's degree in Accounting with a tax emphasis. Mr. Dahl has investigated issues with and prepared returns for individual bankruptcy estates, partnership bankruptcies and corporate bankruptcies.
Case Examples

California Target Entities-Prepared S-corporation returns. Determined the allocation amounts for each entity and amount of payables and receivables between entities. Also prepared estate returns for the bankruptcy estates of Gary & Grace Lazar, individuals having 50% to 100% interest in the California Target Entities. Issues in the bankruptcy estates of Gary & Grace Lazar included determining at risk losses, calculating basis in the scorporations, and preparing the net operating loss schedules for both federal and state. JMS Automotive Rebuilders , Inc. -Accountants to the Trustee. Prepared corporate tax return. Bonded Mortgage- Accountants to the Trustee. Prepared corporation tax return. Broadway Enterprises General Partnership -Accountants to the trustee. Prepared partnership tax returns for multiple years. Analyzed tax issues related to the final administration of bankruptcy estate assets. National School Fitness Foundation/School Fitness Systems- Accountants to the trustee. Prepared information returns for not for profit entity and partnership. Analyzed tax issues related to the allocation of receipts and expenses made necessary by the consolidation of the bankruptcy estates.

Employment History

November 2005 - Present

LECG, LLC Associate Neilson Elggren, LLP Accounting Analyst

May 2005-0ctober 2005

Education

Master of Professional Accountancy, University of Utah Bachelor of Science in Accounting, University of Utah
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James Armstrong, Accounting Analyst

5005 SW Meadows Road, Suite 300 Lake Oswego, OR 97035 Phone: 503.670.7772 Fax: 503.670.0997 JArmstrong@lecg.com
810/SUMMARY

James Armstrong is an accounting analyst in the Lake Oswego, Oregon office of LECG, where he uses his knowledge in economics, accounting and finance to conduct research and analyses related to securities litigation cases. Before joining LECG, Mr. Armstrong began his career as a financial advisor with Ameriprise Financial Services where he provided flexible and ongoing financial advice and comprehensive planning . While attending the University of Oregon, Mr. Armstrong worked as a Controller for the Associated Students of the University of Oregon where he managed the spending of student groups and assisted them throughout their budgeting process.
EDUCATION

BS, Economics, University of Oregon, 2006

PRESENT POSITION

LECG, Research Analyst, 2006 to present

OTHER POSITIONS HELD

Ameriprise Financial Services, Vancouver, Washington, Financial Advisor, 2006-2006 Associated Students, University of Oregon, Eugene, Oregon, Controller, 2005-2006 Apple Blossom Elementary, Sebastopol, California, Summer Day Camp Leader, 2003-2004 Emily B's Deli, Tomales, California, Deli Worker, 2000-2003

James Armstrong

Updated 9/10/07

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Sterling Holden, Research Analyst
201 South Main Street, Suite 450 Salt Lake City, Utah 84111 Phone: 801.364.6233 801.364.6230 Fax: Email: sholden@lecg .com
Summary

Sterling Holden is an Associate at LECG , LLC. Mr. Holden joined LECG in July 2007 . Prior to employment at Neilson Elggren , Mr. Holden was a staff accountant with Joseph Eve and graduated from the University of Utah with Bachelors' degrees in Finance and Accounting. Mr. Holden provides services in bankruptcy, investigative accounting , litigation SLJpport, and business valuation.
Case Examples

Le-Natures -Accountants to the Trustee Mechoopda Indian Tribe of the Chico Rancheria -Accounting Services Sparks Indian Colony- Audit Salish Kootenai -Audit Ho Chunk Casino- Audit Kykotsmovi (Hopi)- Aud it

Employment History

2007 - Present

LECG, LLC Research Analyst Joseph Eve Staff Accountant

2006-2007

Education

Bachelor of Science in Accounting, University of Utah Bachelor of Science in Finance, University of Utah

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Patty Chan, Accounting Analyst

2049 Century Park East Suite 2300 Los Angeles, CA 90067 Phone: 310.300 .2094 Fax: 310.556.0766 Email: pchan@lecg.com
Summary

Patty Chan is an Accounting Analyst at LECG, LLC . Ms. Chan joined LECG in September 2008. She graduated from the University of California, Los Angeles with a degree in Business Economics and minors in Accounting and Political Science. She is currently a candidate to become a CPA. Ms. Chan provides services in bankruptcy, forensic accounting, and litigation support.
Case Examples

Fremont Mortgage- Forensic Accounting o Reviewed and examined loan documentations provided by Fremont Mortgage. o Verified and analyzed one thousand and five hundred loan documents. Estate Financial, Inc. - Bankruptcy o Allocated costs of maintaining property in its current condition to a specific loan. o Utilized Quickbooks software system to maintain accrual accounting basis. o Created spreadsheet to reconcile rental checks received against rental statements provided by property management companies.

Employment History

2008 - Present

LECG, LLC Accounting Analyst

Education

Bachelor of Arts, Business Economics, University of California Los Angeles Minors, Political Science and Accounting, University of California Los Angeles

2/19/2009

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Adrienne Versteeg, Accounting Analyst
201 South Main Street, Suite 450 Salt Lake City, Utah 84111 Phone: 801.364.6233 Fax: 801.364 .6230 Email: aversteeg @lecg .com

Summary
Adrienne Versteeg is an Intern at LECG, LLC. Ms. Versteeg joined LECG in February 2008. Ms. Versteeg attended Westminster College where she received a Bachelors of Science in Accounting and graduated in December 2008. Ms. Versteeg provides services in bankruptcy, investigative accounting, litigation support and business valuation.

Case Examples
Le-Nature's, Inc. -Accountants to the Trustee Estate of Archie Burton - Litigation

Employment History
2007 - Present
LECG, LLC Accounting Analyst

Education
Bachelor of Science in Accounting, Westminster College (Graduation Date: December 2008) Accepted into the University of Utah - David S. Eccles School of Business MBA program (Graduation Date: April 2011)

Professional Memberships
American Institute of Certified Public Accountants (Student Member)

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Connie C. Allred, Paraprofessional
201 South Main Street, Suite 450 Salt Lake City, Utah 84111 Direct: 801 .321.0076 Fax: 801 .364.6230 Email: callred@lecg .com
Summary

Connie Allred is a member of LECG with over twenty-two years experience in the areas of Bankruptcy and Litigation Law. Prior to joining LECG she was with Neilson Elggren LLP, Arthur Andersen LLP in the Global Corporate Finance division, Neilson Elggren Durkin & Company, and was a paralegal at the law firm of Callister, Duncan & Nebeker. Ms. Allred has been involved in Chapter 7, Chapter 11 , and Chapter 13 bankruptcy cases where services performed have been for creditors, debtors, examiners and trustees. She has performed adversary proceeding services, assisted in litigation matters and has been involved in major cases requiring drafting of pleadings, document control , indexing and research of thousands of related documents.
Case Examples

A few of the cases in which Ms. Allred has been involved include: Triad America Corporation (diversified international corporate holdings including real estate, oil & gas and aviation)-Trustee and Accountants to the Trustee Bruce P. McNall (diversified corporate holdings including professional sports, entertainment, horse racing and breeding , rare coin & antiquities dealer)-Accountants to the Trustee Magic Ford (large full service Ford Dealership)-Accountants to the Trustee Adventure Land Video (video distribution company)-Accountants to the Trustee Entertainment Specialties, Inc. (producer of indoor motor racing events)-Trustee and Accountants to the Trustee La Mansion (a small hotel chain in the San Antonio area) - Expert Witness United Underwriters, Inc. (Insurance industry)- Liquidating Agent Reed E. Slatkin (One of California's largest ponzi schemes) -Accountants to the Trustee Adelphia - Forensic Accountants to the Creditor Committee Kenetech Windpower, Inc. -Accountants to the Liquidating Trustee

Education

Westminster College, Legal Assistant Program in the School of Professional Studies.

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Evelyn S. Perry, Paraprofessional
201 South Main Street, Suite 450 Salt Lake City, Utah 84111 Direct: 801.321.0082 Fax: 801.364.6230 Email: eperry@lecg.com
Summary

Evelyn Perry is a member of LECG with over twenty-two years experience in the areas of Bankruptcy and Tax. Prior to joining LECG she was with Neilson Elggren LLP, Arthur Andersen LLP in the Global Corporate Finance division and Neilson Elggren Durkin & Company. Evelyn's responsibilities include the preparation and submission of fee application pleadings to the bankruptcy court as well assisting with assembly and submission of tax returns. Other responsibilities include reconciliation and assembly of billings to litigation, tax and other clients, reconciliation of client bank accounts and related support duties assisting professionals.

Case Examples

Several of the cases in which Evelyn has been involved include: Kenetech Windpower - Engagement wherein the firm represents the creditors committee in the ongoing litigation of the largest wind power manufacturer in the United States. Triad America Corporation (diversified international corporate holdings including real estate, oil & gas and aviation)-Trustee and Accountants to the Trustee. Magic Ford/Lincoln Mercury- Accountants to the Trustee. Robert B. Solomon- Chapter 11 Debtor-in-possession. Utah Title- Accountants to the Chapter 7 Trustee. Reed E. Slatkin (One of California's largest ponzi schemes) -Accountants to the Trustee. Adelphia - Forensic Accountants to the Creditor Committee.

Education

Ricks College, Associates Degree in Business Education.

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Kathy McKee, Paraprofessional
201 South Main Street, Suite 450 Salt Lake City, Utah 84111 Direct: 801 .321.6333 Fax: 801.364.6230 Email: kmckee@lecg .com

Summary

Kathy McKee is a member of LECG with over ten years experience in the areas of litigation support such as personal injury, Intellectual property and forensic accounting. She has performed adversary proceeding services, assisted in litigation matters and has been involved in major cases requiring document control, indexing and research of related documents.

Case Examples

A few of the cases in which Ms. McKee has been involved include: Suncrest- Case Assistant Abraham -- Case Assistant Brzowski Plastic Surgery - Case Assistant Owner Operator Independent Driver Association -Case Assistant Columbia Sportswear North American, Inc. -Case Assistant Mears - Case Assistant New School District Transition Team -Case Assistant William James Del Biaggio - Case Assistant

Education

Salt Lake Community College, Business and Accounting .

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EXHIBIT H

LECG, LLC Schedule of Billing Rates 2009 Position Directors: Managing Consultant Consultant Junior Staff Paraprofessional Rate $470 - 600 295 - 340 250 - 285 200 - 240 120 - 155

In re: Estate Financial Mortgage Fund, LLC Debtor(s).

CHAPTER 11 CASE NUMBER 9:08-bk-11535-RR

NOTE: When using this form to indicate service of a proposed order, DO NOT list any person or entity in Category I. Proposed orders do not generate an NEF because only orders that have been entered are placed on the CM/ECF docket.

PROOF OF SERVICE OF DOCUMENT

I am over the age of 18 and not a party to this bankruptcy case or adversary proceeding. My business address is: PACHULSKI STANG ZIEHL & JONES LLP, 10100 Santa Monica Blvd., 11 Floor, Los Angeles, CA 90067 A true and correct copy of the foregoing document described as SECOND INTERIM APPLICATION FOR LECG, LLC, AS ACCOUNTANTS TO BRADLEY D. SHARP, CHAPTER 11 TRUSTEE; DECLARATION OF RAY STRONG; DECLARATION OF BRADLEY D. SHARP, TRUSTEE, IN SUPPORT THEREOF will be served or was served (a) on the judge in chambers in the form and manner required by LBR 5005-2(d); and (b) in the manner indicated below: I. TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (NEF) Pursuant to controlling General Order(s) and Local Bankruptcy Rule(s) (LBR), the foregoing document will be served by the court via NEF and hyperlink to the document. On August 14, 2009, I checked the CM/ECF docket for this bankruptcy case or adversary proceeding and determined that the following person(s) are on the Electronic Mail Notice List to receive NEF transmission at the email address(es) indicated below: Service information continued on attached page II. SERVED BY U.S. MAIL OR OVERNIGHT MAIL(indicate method for each person or entity served): On August 14, 2009, I served the following person(s) and/or entity(ies) at the last known address(es) in this bankruptcy case or adversary proceeding by placing a true and correct copy thereof in a sealed envelope in the United States Mail, first class, postage prepaid, and/or with an overnight mail service addressed as follows. Listing the judge here constitutes a declaration that mailing to the judge will be completed no later than 24 hours after the document is filed. Via Federal Express The Honorable Robin Riblet United States Bankruptcy Court Central District of California 1415 State Street Santa Barbara, CA 93101 Service information continued on attached page III. SERVED BY PERSONAL DELIVERY, FACSIMILE TRANSMISSION OR EMAIL (indicate method for each person or entity served): Pursuant to F.R.Civ.P. 5 and/or controlling LBR, on I served the following person(s) and/or entity(ies) by personal delivery, or (for those who consented in writing to such service method), by facsimile transmission and/or email as follows. Listing the judge here constitutes a declaration that personal delivery on the judge will be completed no later than 24 hours after the document is filed. Service information continued on attached page I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct.
th

8/14/09
Date

Megan J. Wilson
Type Name

/s/ Megan J. Wilson

Signature

This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California. January 2009

F 9013-3.1

In re: Estate Financial Mortgage Fund, LLC Debtor(s).

CHAPTER 11 CASE NUMBER 9:08-bk-11535-RR

I. SERVED VIA NEF

William C Beall on behalf of Interested Party Estate Financial, Inc. artyc@aol.com Mark Bradshaw on behalf of Interested Party Karen Guth mbradshaw@shbllp.com James L Brunello on behalf of Creditor Stan Young kateover66@yahoo.com Jerome S Cohen on behalf of Creditor William Adams jsc@jscbklaw.com Caroline Djang on behalf of Interested Party Courtesy NEF crd@jmbm.com Joseph A Eisenberg on behalf of Trustee Bradley Sharp jae@jmbm.com Brian D Fittipaldi on behalf of U.S. Trustee United States Trustee (ND) brian.fittipaldi@usdoj.gov Thomas M Geher on behalf of Trustee Bradley Sharp tmg@jmbm.com David Gould on behalf of Interested Party David Gould dgould@davidgouldlaw.com Robert E Hurlbett on behalf of Creditor Foley-Gannon, Inc. bob@hurlbettlaw.com Lewis R Landau on behalf of Debtor Estate Financial Mortgage Fund, LLC lew@landaunet.com Leib M Lerner on behalf of Creditor Charles & Debra Applebaum leib.lerner@alston.com Samuel R Maizel on behalf of Interested Party Thomas Jeremiassen smaizel@pszjlaw.com, smaizel@pszjlaw.com David M Poitras on behalf of Debtor Estate Financial Mortgage Fund, LLC dpoitras@jmbm.com Dean G Rallis Jr on behalf of Creditor Charles & Debra Applebaum drallis@sulmeyerlaw.com Robyn B Sokol on behalf of Creditor Committee Official Committeee of Unsecured Creditors for Estate Financial, Mortgage Fund, LLC ecf@ebg-law.com, rsokol@ebg-law.com

This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California. January 2009

F 9013-3.1

In re: Estate Financial Mortgage Fund, LLC Debtor(s).

CHAPTER 11 CASE NUMBER 9:08-bk-11535-RR

Peter Susi on behalf of Creditor Committee Official Equity Committee cheryl@msmlaw.com, peter@msmlaw.com United States Trustee (ND) ustpregion16.nd.ecf@usdoj.gov Katherine M Windler on behalf of Creditor Bryan Cave LLP katherine.windler@bryancave.com Jonathan R Zeko on behalf of Plaintiff Shelton Construction Company jzeko@grantandzeko.com

II. SERVED VIA OVERNIGHT MAIL

UNITED STATES TRUSTEE Brian D. Fittipaldi, Esq. 128 E. Carillo Street Santa Barbara, CA 93101 COUNSEL TO OFFICIAL COMMITTEE OF CREDITORS HOLDING UNSECURED CLAIMS IN THE EFI CASE Larry Gabriel, Esq. Robyn B. Sokol Ezra Brutzkus Gubner LLP 21650 Oxnard Street, Suite 500 Woodland Hills, California 91367 COMMITTEE OF EQUITY INVESTORS OF EFMF Attnys for Equity Committee Peter Susi Michaelson Susi & Michaelson 7 W Figueroa St Santa Barbara, CA 93101

This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California. January 2009

F 9013-3.1