Securities and Exchange Commission v. Straightpath Venture Partners, LLC
- Lewis Kaplan
- 1:22-cv-03897
- U.S. District Court · Southern District of New York
- 10
In Securities and Exchange Commission v. Straightpath Venture Partners, Judge Kaplan considered appointing Melanie Cyganowski as receiver and invited objections by June 10.
The Securities and Exchange Commission, Straightpath Venture Partners LLC and the other defendants, and Melanie Cyganowski and Otterbourg P.C. as the proposed receiver and assisting firm.
What happened
In Securities and Exchange Commission v. Straightpath Venture Partners, the court said it was considering appointing Melanie Cyganowski, a former bankruptcy judge, as receiver. Cyganowski is now a member of Otterbourg P.C., which would assist her if appointed.
The order disclosed that the Securities and Exchange Commission had previously contacted Cyganowski about serving as receiver. It also described a possible issue involving an Otterbourg client called Flexport Capital LLC and a name on a list provided by the Commission. The order described Cyganowski’s proposed hourly rate, Otterbourg’s rates, and proposed discounts.
Judge Lewis A. Kaplan set June 10, 2022, as the deadline for objections to Cyganowski’s appointment. The order does not state that she was appointed or resolve the underlying case.
The detailed version
- Securities and Exchange Commission v. Straightpath Venture Partners, LLC · No. 1:22-cv-03897
- Lewis Kaplan
- June 6, 2022
Background
The Securities and Exchange Commission’s case is against Straightpath Venture Partners LLC and other defendants. In this order, the court considered an additional candidate for appointment as receiver: Hon. Melanie Cyganowski. A receiver is a person appointed by a court to handle specified matters in a case. The order states that Cyganowski formerly served as Chief Judge of the United States Bankruptcy Court for the Eastern District of New York and is now a member of Otterbourg P.C.
Potential Conflict
The order states that the Commission had approached Cyganowski some time earlier about serving as receiver and had asked her to check for conflicts and submit a proposal. Otterbourg represents an entity called Flexport Capital LLC. The name “Flexport” appeared on a list the Commission gave Cyganowski, but she did not know whether the listed “Flexport” was the same entity as Flexport Capital LLC. She was advised that the situation would not be a conflict.
Proposed Compensation
If appointed, Cyganowski and the Otterbourg attorneys and professionals assisting her would bill at hourly rates. Cyganowski’s current rate is $1,470 per hour. The order lists hourly-rate ranges for Otterbourg members, counsel, associates, and paralegals, and states that less expensive junior attorneys would be used when possible under more experienced supervision. Cyganowski offered to keep her current rate for the duration of the case, while Otterbourg’s rates could increase during its usual annual review. She also offered a 25 percent discount on her aggregate fees, and Otterbourg offered a 10 percent discount on its total fees. Otterbourg would separately bill expenses allowed under the Commission’s guidelines.
Order
The court did not announce a final appointment in this order. Instead, it required that objections to Cyganowski’s appointment be filed by June 10, 2022. The order addresses the possible appointment and related compensation and conflict information; it does not decide the merits of the Commission’s claims against the defendants. Judge Lewis A. Kaplan signed the order on June 6, 2022.
Read the full 10-page opinion on CourtListener, the free public archive maintained by the Free Law Project.