Bankruptcy Judge Linda Riegle has approved $6.6 million in fees for lawyers, financial analysts and other professionals in the USA Capital bankruptcy case plus another $392,000 in expenses.

Attorney fees have been a sore point with investors who worry how much money they may lose as a result of the USA Capital bankruptcy. The firm, a private lender controlling $962 million in assets, filed for bankruptcy court protection April 13 when it became insolvent. It solicited money from individual investors and used the money to make short-term loans secured by real estate.

At one point during the hearing on Thursday, Riegle chastised a spectator who clapped when the judge mentioned concern about a fee.

Riegle urged the investors present to be silent. "This is not a town meeting. This is not 'Judge Judy' (a courtroom television show). We don't need applause. We don't need boos," she said.

As she was starting to consider fees from a long list of law and professional firms, Riegle urged investors to put the expenses and fees into context of the almost $1 billion in assets and the $68 million already paid back to investors by USA Capital's interim managers.

"There has been a lot of misunderstanding," Riegle said. "People say 'Don't let the attorneys take the money.' "

Augie Landis, assistant U.S. Trustee, frequently has disagreed with Riegle's decisions in the USA Capital case, but he agreed with her on this issue.

The fees are "a lot of money," but they appear reasonable given the $68 million paid to investors so far, Landis said.

"Ten percent in the collection arena is a good number," Landis said.

The lawyers' fees will not come out of interest and principal payments made to investors who were so-called direct lenders and own fractional interests in mortgage loans, sometimes called trust deeds.

The fees do come from earnings of two mortgage loan funds and from mortgage loan servicing fees earned by USA Commercial Mortgage, a company that collects and distributes loan payments to investors. USA Commercial collects a 1 percent fee on older loans and 3 percent mortgage servicing fee on more recent loans, said Mark Olson, chief operating officer at USA Capital.

Mesirow Financial Interim Management, which has taken over operations at USA Capital, was approved to receive $3.4 million in fees and another $214,000 in expenses. But Olson said Mesirow has 24 workers, ranging from entry level workers to chief restructuring officer Tom Allison, who worked 8,200 hours between April 13, when the bankruptcy petition was filed, and July 31.

The law firms of Las Vegas-based Schwartzer & McPherson and Ray Quinney & Nebeker of Salt Lake City have worked as attorneys for USA Capital since early April. Other firms were approved for fees and expenses for shorter periods of two to three months.

Olson said the firms will receive payments up to the amount of cash available.

Schwartzer & McPherson was approved for $265,000 in fees; and Ray Quinney, $937,000. Riegle authorized Stutman Treister & Glatt of Los Angeles, an attorney for USA Capital First Trust Deed Fund, to receive $565,000; Shea & Carlyon, the local law firm for the First Trust fund, $297,000; Orrick, Herrington & Sutcliffe, the Sacramento, Calif., firm representing USA Capital Diversified Trust Fund, $468,000; and Beckley Singleton, the local law firm for the Diversified fund, $74,000.

Also, Gordon & Silver, the law firm for the direct lenders' committee, was allowed to charge $257,000; Lewis & Roca, the law firm for the unsecured creditors' committee, $228,000; and lawyer David Huston, an attorney for investors in transactions that were pending at the time of the bankruptcy filing, $8,600.

Alvarez & Marshal, a financial analyst firm for the First Trust fund, was approved to get $166,000.