What About All Those Heller Ehrman Receivalbles?

If you check out the updated Bankruptcy section, you’ll notice that the Dissolution Committee has selected the Adler Law Firm to work on collecting Heller’s receivables (at a fee rate of up to 35% of the amount collected).

Did you ever wonder how much effort was or is being put forth by Heller Ehrman to actually collect on the monies owed to them by former clients? Wouldn’t it be nice to see who owes what and how much?

Well, one of the dangers of pissing off your former employees is the amount of dirt and documents those same people are willing to dig up and pass on to Heller Highwater. I’ve received a collections call log from early October 2008 which lists the names of clients and the amount of AR due to Heller for legal services rendered.

Keep in mind that this list is out-of-date and that some of these former clients may have made good on the amounts they owed. But what is interesting in reviewing this document are the notations made during the collection process. Here are some highlights:

Client Name: Emine Technology Company Ltd.
AR Total (as of 10/6/2008): $1,670,999
Notes: DO NOT CALL – Acct. being handled by outside attorney – Pamela Phillips at Howard Rice.

Client Name: EPV Solar Inc.
AR Total (as of 10/6/2008): $1,560,390
Notes: Awaiting deternination (sic) on whether full credit is to be given to bond received from client. Left voice mail and sent e-mail to client contact for additional payment dates.

Client Name: Servcon – San Marcos, Inc.
AR Total (as of 10/6/2008): $1,201,293
Notes: 10/06/08 – DO NOT CALL – Prior to his departure B. Cohen adamantly claimed this will be paid this year, once the landfill permit is approved. Heller should collect over $2M with interest charges.

Client Name: Girl Scouts of the USA
AR Total (as of 10/6/2008): $1,089,758
Notes: $500k to be received by 10/10.

Client Name: Lehman Brothers
AR Total (as of 10/6/2008): $971,471
Notes: 10/7/08 – Client filed for bankruptcy.

Client Name: Kelly-Moore Paint Company, Inc.
AR Total (as of 10/6/2008): $961,146
Notes: No Client Accounts Contact Allowed. 10/7/08 – Client was supposed to pay a bonus but refused.

Client Name: Government of Singapore Investment Corpo
AR Total (as of 10/6/2008): $909,303
Notes: Per B. Dick: We told them we would wait until the closing for payment which hopefully will be this month. They agreed to pay by November in all events.

Client Name: SonoSite, Inc.
AR Total (as of 10/6/2008): $802,497
Notes: NO CONTACT – M.Parris to contact client for payment of remaining AR bal

Client Name: Pulse-Link, Inc.
AR Total (as of 10/6/2008): $676,471
Notes: Left a msg for Rudy. He previously told me they don’t have money to bring the acct current or PIF. They are seeking financing. They have been making $5K good faith payments about every two weeks.

Client Name: Array/Comm
AR Total (as of 10/6/2008): $616,715
Notes: left several messages to Steve, VP. Per Steve Steger on 10/1/08, he’ll check the payment status with their Financing Department.

Client Name: Clarium Capital Management LLC
AR Total (as of 10/6/2008): $558,290
Notes: __ sent an email to AIG to request payment status on 3 invoices on matter 0006. AIG pays 80% of the bills. __ also sent an email to Clarium to confirm on the payment date for the rest of the invoices.

Client Name: Washington Mutual Bank – Commercial Liti
AR Total (as of 10/6/2008): $497,303
Notes: NO CONTACT – B.Russell working to get AR paid

Client Name: Ministry of Commerce, Peoples Republic o[f China?]
AR Total (as of 10/6/2008): $492,500
Notes: Attorney in china this week explaining why all contracts must be changed for second time. He will have payment dates by return on 10/13.

Client Name: Aperto Networks, Inc.
AR Total (as of 10/6/2008): $487,202
Notes: 10/06/08 – Left voicemail for Pres. & CEO, Brian Deutsch; Miles Mochizuki, CFO not negotiating in good faith. $1.5M in trust cannot be applied – must be returned to client. Keep trying to negotiate a reduction of A/R to get this stettled.

Client Name: Washington Mutual Bank – Employment/Huma
AR Total (as of 10/6/2008): $476,294
Notes: NO CONTACT – B.Russell working to get AR paid

Client Name: Republic of the Phillipines
AR Total (as of 10/6/2008): $424,505
Notes: NO CONTACT – This is a government, we should allow the requirements of the government to proceed. We always have been paid over many years, although the process is cumbersome. S. Bomse will make sure that these bills are paid as well. Trying to push more is likely to be counterproductive.

Client Name: Foundry Networks, Inc.
AR Total (as of 10/6/2008): $394,457
Notes: Per S. Tonsfeldt: he is confident that the client will pay promptly. He will contact the client if we don’t see the payment by the end of this month.

Client Name: Targeted Growth Inc.
AR Total (as of 10/6/2008): $347,445
Notes: Client dispute – S.Erickson and B.Finrow to discuss issues with Tom Todaro (CEO) and resolve

Client Name: Celebrate Express, Inc.
AR Total (as of 10/6/2008): $261,975
Notes: NO CONTACT – S.Erickson working on payment w/ client, Kristopher Galvin (CFO)

Client Name: Blue Heron Biotechnology, Inc.
AR Total (as of 10/6/2008): $252,498
Notes: Per S.Erickson – client still trying to obtain financing but will discuss w/ client payment plan; once funded s/b paid in full

Client Name: Ronald A. Katz Technology Licensing, L.P
AR Total (as of 10/6/2008): $165,035
Notes: $87K paid 10/6/08. The rest of the AR is waiting for R. Holdrup approval for write off. First Pass Credit to offset with AR on matter 0003. TF

Client Name: New Century Financial Corporation
AR Total (as of 10/6/2008): $137,558
Notes: Client is in BK. We may have received all allowed to us by the Trustee.

Client Name: Better Energy Systems Ltd.
AR Total (as of 10/6/2008): $137,239
Notes: Client has some cash. Client has been holding on a $59K check since 9/15/08. J. Gavenman will discuss with client.

Client Name: Element Six
AR Total (as of 10/6/2008): $128,680
Notes: Cannot reach client by phone. FedEx’d invoices to the listed contact (due to arrive on 10/07/08 in their offices in Ireland).

Again, there is no information as to what amounts have been paid since this list is dated early October, 2008. And the items above are only a few which have been selected based on the large amount of money and/or the interesting comments in the Notes section.

You have to admit it is an interesting collection of companies, institutions, organizations and people. What is more interesting is how persistent Heller has been (or has not been) in pursuing any and all A/R accounts especially for clients which departing shareholders may have taken with them to their new firms.

As for the Girl Scouts, I’m sure they’ve paid the rest of their outstanding bill.  If not, Heller could take many boxes of Thin Mints as payment.


12 Responses to “What About All Those Heller Ehrman Receivalbles?”

  1. 1 anonemp 21 April 2009 at 6:19 pm

    I wonder if posting this is to the benefit of us former employees as creditors. Seems a little like cutting off your nose to spite your face.

  2. 2 My Guess 22 April 2009 at 7:26 pm

    How so?

  3. 3 Anon2 23 April 2009 at 12:37 am

    This is no surprise. These firms were employed by Heller Ehrman for years to deal with outstanding claims/malpractice issues, etc. They have their own personal interest in this, no surprise here.

  4. 4 anonemp 23 April 2009 at 7:37 pm

    How so?

    Well if there are clients listed here and they are irritated and don’t pay then there is less for the rest of us.

  5. 5 Thomas MacEntee 23 April 2009 at 7:46 pm

    anonemp (or should I say Carol Budinger? – I can tell by the email address carol@optionforge.com which others can’t see – but now they can)

    Do you hear yourself? Don’t you realize that this entire debacle is about people who have no shame, starting with the Heller shareholders?

    You’ve been drinking the Heller purple kool aid way too long if you ask me. You’ve been nothing but negative about this blog and what honest people are trying to do to recover their money. You gave me lots of sh*t when I had the nerve to publish a post about the 401k plan being frozen and had you and others say it wasn’t true when it was. Quite frankly I’m about half-past give-a-sh*t with you and your comments. And don’t go and read me back the “terms of service” on the sidebar – I know what it says because I wrote it. You’re wasting your time.

    Perhaps when you stop playing Tokyo Rose or Mata Hari for Heller Ehrman you’ll come to realise what really went on here.

  6. 6 anonemp 24 April 2009 at 11:15 am

    This is not Carol Budinger.

    But I should say this attack is really sad. I remember when you said this wasn’t about negativity and clearly we are way past that now. But really I am concerned about us as employees getting as much as we can and some clients feel that this is the time to pay less for services that were rendered by many people who read this. The collectors are driven to get this money and need all the help they can get because it is hard work. What happened 6 months ago is a travesty and what lead up to it is a damn shame. But today the only people left are those working for the estate, getting the most value for it so that they can.

    But if hammering those people makes you feel better then so be it.

  7. 7 Former Associate 24 April 2009 at 12:00 pm

    Emine filed a proof of claim for $1.1M. They must be fixing to claim malpractice.

  8. 8 Thomas MacEntee 24 April 2009 at 12:42 pm


    I still stand by my story and the backend IP address info substantiates that. But anywhoooo. . ..

    While I think the Collections staff has worked very hard, I wonder how hard the shareholders worked to press their clients for payment. And I wonder what kind of “sweetheart” deals were cut to get clients to follow these same shareholders to their new firms. This is the area of outstanding receivables that needs to be discussed and investigated.

    It would fall right in line with the total disregard some shareholders have had about recovering the most money so that ex-employees can get paid the wages that they rightfully earned. And I don’t buy the “discount” issue. I realize that many firms are renegotiating legal billing rates but we are talking about billings that are up to many many months old – and that was in October. I think some of Heller’s former clients are also helping themselves to what they think is an ideal situation of “gettin’ while the gettin’ is good” and just blowing off what they owe for legal services rendered.


  9. 9 Former Associate 24 April 2009 at 1:05 pm

    I share Thomas’s concern about the lack of collections effort on the shareholders’ part. And we will all pay the price for it, to the tune of the 30-35% contingency fee that the debtor’s collections lawyer will keep on the money it collects.

  10. 10 anonemp 24 April 2009 at 5:52 pm

    I still stand by my assertation that I am not Carol Budinger howeverrrrrr…

    I don’t disagree that there are issues relating to collections. I just want us to be able to get all we can from those clients who owe us.

  11. 11 Former Associate 24 April 2009 at 6:02 pm

    I think the more that is known about clients that owe will actually encourage them to pay. There is no shame in refusing to pay your bills when no one knows about it. But when the people whose financial lives depend on you making that payment know who you are and what you’re doing, then there may be consequences.

  12. 12 anonemp 24 April 2009 at 6:39 pm

    Thats a thought and a point to consider. It can be a pretty tough and shameless crowd however.

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