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Federal Trade Commission v. Ecom Genie Consulting LLC
1:24-cv-23976
| S.D. Fla. | Jul 30, 2025
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Background

  • The court appointed Mark Bernet as receiver over entities suspected of violating the Federal Trade Commission Act, granting him authority over assets and operations.
  • The Receivership Order entitled the Receiver and his personnel to reasonable compensation for services and reimbursement of actual expenses.
  • The Receiver submitted detailed applications for payment of fees and expenses for himself, his deputy, and the law firm Akerman LLP for services rendered up to June 30, 2025.
  • The applications included billing for a broad range of tasks including asset control, litigation, financial investigations, and management of electronic information.
  • No parties objected to the requested amounts, but the court reviewed the reasonableness of the hourly rates and total amounts claimed, especially by paralegals.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Entitlement to receiver’s fees and expenses Receiver is entitled under the order No objection Receiver’s requested fees and expenses are granted.
Reasonableness of receiver hourly rates $480/hour is reasonable and below market No objection $480/hour approved as reasonable.
Reasonableness of paralegal hourly rates (Akerman LLP) $320/hour is reasonable for experience No objection Reduced to $150/hour; amount recalculated.
Reimbursement of costs to receiver and Akerman All costs are documented and necessary No objection All documented costs approved for reimbursement.

Key Cases Cited

  • Hensley v. Eckerhart, 461 U.S. 424 (lodestar method for calculating reasonable attorney's fees)
  • Loranger v. Stierheim, 10 F.3d 776 (use of lodestar method for fee awards)
  • Norman v. Housing Auth. of Montgomery, 836 F.2d 1292 (court review of hours and rates for reasonableness)
  • S.E.C. v. Elliott, 953 F.3d 1560 (receiver’s right to compensation and expense reimbursement)
Read the full case

Case Details

Case Name: Federal Trade Commission v. Ecom Genie Consulting LLC
Court Name: District Court, S.D. Florida
Date Published: Jul 30, 2025
Docket Number: 1:24-cv-23976
Court Abbreviation: S.D. Fla.