Buzz, You are 100% right.
My suspicion about this $25 a head shareholder counsel does not sit right with me at all as each day passes. I've explained the reasons in prior posts of why legally they will not succeed.
But beyond that I have stated how I question the motive of this effort and those so called respected posters in pumping others to send their $25.00 in. I'll take the gloves off a bit and translate what I have been trying to tactfully say:
It reeks of a potential scam in itself....BAD.
No matter how many uninformed people eventually send $25.00, the effort is fruitless. So far their $25.00 has got them a filing which may well be denied prior to the hearing. I believe it will. But, I'll take it one step further, just say the judge does allow John Martin to intervene (represented by Frizzle) at the hearing. Nothing I have read in his motion is relevant to the case of the SEC vs CMKX. I'm open to anyone to show me the proof and evidence submitted by Frizzle that is relevant to the case.
So let's talk about money for a bit.
Frizzle states in his motion likely crafted last week and early this week a number of at least 400 shareholders in his filing. I'll go out on a limb and say thay since that time with all of the pied piper posters telling their flock to sign on (even though these same pied pipers weren't thrilled about this at first...ahem) I'm guessing between 1000-1500 have now unbelievably sent $25 bucks in.
Let's assume the number now is 1,250 shareholders.
1250 x $25 = $31,250.00!
Being in litigation management, that means I've seen 18 years worth of billings from defense counsel from firms over a wide geographic area, including big cities. The cases have ranged from matters heard at the Court of Common Pleas, Court of Appeals and Federal Civil Court.
Plaintiff counsel represents a party or parties that sue another party (or parties) for money damages. In EVERY case that I have ever been aware of, plaintiff counsel works on a contingency. Ususally this contingency is 25% of damamges awarded in Workers' Compensation cases, 33% in civil cases settled without court appearances, 40% for cases in suit where court appearances such as hearings and trials. Some may even charge up to 50% for more complex cases which go to trial.
Defense counsel (similar to what we have here where Frizzle is claiming to defend the interests of CMKX shareholders) charge on a per hour basis. Their billed hours are submitted for review, approval and adjustment if required.
Very simply, they are paid for the time and expenses incurred based on an agreed upon per/hour rate. Usually $80 - $200 per hour is what I have seen regardless is that attorney is from a big city.
It would take YEARS of a messy case to even come to 80% of $31,250.00!!!!
In this case he has phone calls and the time and expense to prepare and file the motion and establish a website. Hopefully this is not his only case, so he is not sitting in his office praying or daydreaming about this case while scratching doodles and consider this work. God I hope not. The document was prepared and now he awaits a response.
30 billable hours tops to date. If it's coming in any more than that, those $25 donators better see a verified breakdown to see the inefficiency or padding of the bill that's going on here.
30 x $150/hr = $4,500 + $500 estimated costs = $5,000.00
Again, I am being generous in estimating hours. He filed a simple motion to intervene. This is not a complex pleading here.
So...what if the motion is denied? Will Frizzle account for his hours and send the money back to the shareholders??
What if he appears...he is not going to have $26,000 of expenses to appear. By then many more (possibly double the current number) will have sent their $25 in to him, (or them....ahem). Sorry, I had a non-securities attorney sized frog in my throat followed by a pied piper poster hairball.
Why suddenly have the pied piper posters 'come around' and are suddenly using influence to persuade people to keep sending their $25.00, even though the costs will not come close to the current total received??
The motion is denied....then what? Does he go away? What is the plan after that?? Not one person I've seen has discussed this.
The motion is accepted and he appears on behalf of John Martin...I ask again, then what? Does he go away? What is the plan after that?? Not one person I've seen has discussed this.
Last, if any pleading or argument serves to jeopardize my investment, Attorney Frizzle and those pied pipers who encouraged this effort to grow will go by another name soon:
Defendant.
Bo
