Free Response to Motion - District Court of Colorado - Colorado

Case 1:01-cv-00645-JLK

Document 174

Filed 07/26/2007

Page 1 of 4

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO

Civil Action No. 01-cv-645-JLK SECURITIES AND EXCHANGE COMMISSION Plaintiff, v. KENNETH ROY WEARE a/k/a ROY WEAVER, J&K GLOBAL MARKETING CORPORATION, and AAA-AUCTION.COM, INC., Defendants.

RESPONSE TO MOTION FOR REVIEW BY COURT FILED BY CLAIMANT KARYN DANIELS

Patten, MacPhee & Associates, Inc., the Court-appointed Receiver, by and through its attorney, responds to the Motion For Review By Court filed by Claimant Karyn Daniels ("Claimant") as follows: 1. On or about January 4, 2007, Claimant submitted to the Receiver Claim Number

1b395adc-7d31-4830-b95d-0845f9d48ad4 ("Claim"), which did not claim a specified amount. Instead, the Claim identified for the Receiver names under which Claimant may have invested. 2. The transaction database obtained by the SEC during the course of its investigation

indicated that Claimant made three investments of $375.00 each, or a total of $1,125.00, in Defendant J&K Global Marketing Corporation ("J&K Global"). Bank records provided by the SEC indicated one additional investment for $375.00. Thus, records available to the Receiver evidenced a total investment of $1,500.00 by Claimant.

Case 1:01-cv-00645-JLK

Document 174

Filed 07/26/2007

Page 2 of 4

3.

Nevertheless, J&K Global bank records also indicated that Claimant received two

checks from J&K Global: (1) Check No. 4349, dated 9/7/2000, in the amount of $375.00; and, (2) Check No. 7021, dated 10/31/2000, in the amount of $375.00. Thus, the total amount received by Claimant from J&K Global was $750.00 4. The "Unpaid Principal Balance" (as that term is defined in the claims procedures

established by the Court's order dated December 6, 2006) of Claimant's investment is $750.00 ($1,500.00 ­ $750.00). 5. On June 29, 2007, the Receiver sent a Final Determination Notice to Claimant,

denying her request for reconsideration and allowing her Claim in the amount of $750.00. 6. 7. On or about July 16, 2007, Claimant filed her Motion For Review By Court. Paragraph 23 of the Receiver's Unopposed Motion to Establish Procedures and

Deadline for Filing Claims, to Approve Manner of Notice to Potential Claimants, and to Establish Claims Review Procedures ("Motion to Establish Procedures"), granted by the Court's order dated December 6, 2006, expressly provides that the amount of each Claim shall be limited to the amount of the Unpaid Principal Balance, as defined in Paragraph 22 of the Motion to Establish Procedures. 8. Taking all of the above into consideration, the amount allowed with respect to the

Claim should be limited to $750.00. WHEREFORE, the Receiver respectfully requests that the Court dismiss Claimant's Motion For Review By Court and allow her Claim in the amount of $750.00.

-2-

Case 1:01-cv-00645-JLK

Document 174

Filed 07/26/2007

Page 3 of 4

DATED this 26th day of July, 2007.

s/ Michael D. Burns Michael D. Burns, #11631 1775 Sherman Street, Suite 2900 Denver, Colorado 80203 Telephone: (303) 296-2900 FAX: (303) 296-4475 E-mail: [email protected] Attorney for Receiver

-3-

Case 1:01-cv-00645-JLK

Document 174

Filed 07/26/2007

Page 4 of 4

CERTIFICATE OF SERVICE I hereby certify that on July 26, 2007, I electronically filed the foregoing RESPONSE TO MOTION FOR REVIEW BY COURT FILED BY CLAIMANT KARYN DANIELS with the Clerk of the Court using the CM/ECF system, which will send notification of such filing to the following e-mail addresses: Leslie J. Hughes [email protected] Christine J. Jobin [email protected] Thomas J. Krysa [email protected],[email protected] and I certify that I have caused to be mailed a copy of the foregoing to the following non-CM/ECF participant via U.S. mail, postage prepaid: Karyn Daniels 10711 Burnt Oak Drive Austin, TX 78737

s/ Michael D. Burns Michael D. Burns, #11631 Attorney for Receiver 1775 Sherman Street, Suite 2900 Denver, Colorado 80203 Telephone: (303) 296-2900 FAX: (303) 296-4475 E-mail: [email protected]