HomeMy WebLinkAbout920037.tiff RESOLUTION
RE: APPROVE ENGAGEMENT OF SPECIAL COUNSEL AND AUTHORIZE CHAIRMAN TO SIGN
WHEREAS, the Board of County Commissioners of Weld County, Colorado,
pursuant to Colorado statute and the Weld County Home Rule Charter, is vested
with the authority of administering the affairs of Weld County, Colorado, and
WHEREAS, pursuant to Article V, Section 5.5 of the Weld County Home Rule
Charter, the Board is allowed to engage special counsel when it is determined to
be necessary, and
WHEREAS, the County Attorney has advised the Board to engage counsel with
expertise in the securities field and local to California, to handle the matter
of $4.6 million of county funds frozen by the Securities Exchange Commission, and
WHEREAS, the Board has been presented with an Engagement Letter with
Phillips, Haglund, Haddan & Jeffers, with the further terms and conditions being
as stated in said letter, and
WHEREAS, after review, the Board deems it advisable to approve said letter,
a copy of which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the firm of Phillips, Haglund, Haddan & Jeffers be, and
hereby is, engaged as special counsel.
BE IT FURTHER RESOLVED by the Board that the Chairman be, and hereby is,
authorized to sign said letter.
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 15th day of January, A.D. , 1992.
�/�am BOARD OF COUNTY COMMISSIONERS
ATTEST: C ` WELD COUNTY, COLORADO
Weld County Clerk to the Board / �V
X V Geoorre Ken edy, Chairman --
BY: � �� / IV /J 1�11�1 GA' ��(.,✓�t1�
r„F
Deputy C rk to the Board Constance L. Harbert, Pro-Tem
APPROVED AS RM: 7
C. W. Kirby
C
County Attorney Gordo . Lac
A
W. H. Webster
920037
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PHILLIPS, HAGLUND, HADDAN & JEFFERS
ATTORNEYS AT LAW
4695 MACARTHUR COURT, SUITE 1150
NEWPORT BEACH, CALIFORNIA 92660
17141 752-6100 OF COUNSEL
DANIEL M. RARKINS FACSIMILE (714) 752-6161 ROBERT V. GIBSON
January 13, 1992
Bruce T. Barker, Esq. t ••,a/r •
: y
Assistant County Attorney l !1�
Weld County J.,'d 1 x'92
915 10th Street .
Greeley, CO 80631 :WELD COUNTY
ATTORNEY'S OFFICE
Dear Mr. Morrison:
As a follow up to our telephone conversations today and those
with Mr. Morrison on Friday afternoon this letter sets out the
terms under which my firm, Phillips, Haglund, Haddan & Jeffers,
would be engaged as special counsel to the Board of County
Commissioners. The purpose of our engagement would be to assist the
Board in (i) examining the relationship between the County and the
investment advisory firm of Institutional Treasury Management
( "ITM" ) , (ii) determining the status of the County' s account and
(iii) recovering the County' s funds. You have advised me that the
County had approximately $4 .6 million under the management of ITM
and that you have been unable to recover those funds. It is my
understanding that the court appointed receiver for ITM has failed
to identify or return any of your funds.
Phillips Haglund is an eleven lawyer firm whose primary area
of practice is corporate and securities law. Each of the six
partners has specific specialties within securities law. Michael
Jeffers and I are both specialists in investment advisor and
investment company regulation. In addition, I am a specialist in
broker dealer regulation and government securities, having served
as general counsel to a government securities broker, general
securities broker and registered investment advisor. Mr. Jeffers
and I have more than thirty years of combined experience in
securities regulatory law, thus uniquely positioning our firm to
serve the needs of our clients in this area. I have enclosed a
brief resume of each of the lawyers in the firm for your review.
As I informed you, this firm is currently representing a
former client of Denman Securities, an affiliate of ITM, in an
attempt to locate and recover that client' s funds which had been
entrusted to ITM/Denman. Much of the research into the procedures
and operations of ITM/Denman that has been done is directly
applicable to analyzing the relationship between ITM and Weld
County.
If we are engaged we would propose to review: ( 1) the County' s
contractual relationship with ITM, (2) all trading activity in the
County' s accounts under the control or influence of ITM, (3) the
relationship, if any, which the County may have had with any other
advisor, broker or custodian, (4 ) compliance by all parties with
all applicable securities laws and contractual undertakings, (5)
review all trading activity to determine if the County has suffered
any loss as a result of unauthorized activity or non-compliance
with applicable laws and regulations, (6) the identification of all
parties who may have failed to meet obligations to the County under
statutory, regulatory and common law and ( 7 ) plot a course for the
recovery of all of the County' s funds. The overriding objective
shall at all times be the timely recovery of the County' s funds .
We will at all times act at the direction of and in
conjunction with the office of the County Counsel. Reports on the
results of our investigation will be made to the County Attorney,
or his designee, in a format presentable to the elected officials
of the County. As the County' s representatives we will endeavor to
cooperate with the Securities and Exchange Commission, U.S. Postal
Inspector, U.S. Attorney and all other governmental and regulatory
authorities that are investigating the activities of ITM and its
affiliates, officers, directors and employees.
Our services will be billed on a monthly basis at an hourly
rate of $175 plus reimbursement for all expenses reasonably
incurred. Extraordinary disbursements will be submitted to the
County Attorney for preapproval, which may be oral, and all monthly
statements will be forwarded to the County Attorney for approval
prior to payment. All statements will be due when received. In view
of the complexity and immediacy of this matter, we are requesting
an initial retainer of $15,000 which will be credited against our
statements.
This agreement will govern all services we may perform for the
County on this matter unless we receive additional written
instructions from the County. The County may discharge us at any
time and for any reason but we may withdraw from the representation
only with the County' s consent or for good cause.
Please confirm that this letter accurately sets out the terms
of our engagement by signing the enclosed copy in the space
provided and returning it to us.
Sincerely,
Phillips,s,Haglund, H ddan & Jeffers
By; �- '^p�
Daniel M. Harkins
Accepted and Agreed: tin
Board of County Commissioners ATTEST: ,( f ._til VA�
Weld County Colorado � il� i/
777
TO IHE BOAj '>Y�i✓�By= BY:
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�lO.5190-- DEPUTY CLERK 10 THE BOARD
--",00-e-71
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