5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

(/(&7521,& &,7$7,21  )(' $SS  3 WK &LU )LOH 1DPH D S

81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB

5,&+$5' 0$*$1$ ; 3HWLWLRQHU$SSHOODQW    1R  Y  !  *(5$/' +2)%$8(5  5HVSRQGHQW$SSHOOHH  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW 1R  n%HUQDUG$)ULHGPDQ'LVWULFWsXGJH 6XEPLWWHG $SULO 'HFLGHGDQG)LOHG $XJXVW %HIRUH 0$57,1&KLHIsXGJH 0225(&LUFXLWsXGJH 2j0$//(<'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ 21%5,() 9LQFHQWs/HRQH$66,67$17$77251(< *(1(5$/ +$%($6 &25386 ',9,6,21 /DQVLQJ

7KH +RQRUDEOH .DWKOHHQ 0F'RQDOG 2j0DOOH\ 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ

  0DJDQDY+RIEDXHU 1R 

0LFKLJDQ IRU $SSHOOHH  5LFKDUG 0DJDQD 1HZEHUU\ 0LFKLJDQSURVH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB .$5(1 1(/621 0225( &LUFXLW sXGJH  3HWLWLRQHU $SSHOODQW5LFKDUG0DJDQDDSSHDOVWKHGLVWULFWFRXUWjVGHQLDO RI KLV SHWLWLRQ IRU KDEHDV FRUSXV UHOLHI  0DJDQD ZDV FRQYLFWHG E\ D MXU\ LQ 0LFKLJDQ VWDWH FRXUW RI WZR GUXJ RIIHQVHVDQGVHQWHQFHGWRWZRPDQGDWRULO\FRQVHFXWLYHWHUPV RIWHQWRWZHQW\\HDUVjLPSULVRQPHQW0DJDQDjVVROHFODLPLQ KLVKDEHDVSHWLWLRQLVWKDWKHUHFHLYHGLQHIIHFWLYHDVVLVWDQFHRI FRXQVHOGXULQJWKHSOHDQHJRWLDWLRQSURFHVV0DJDQDFODLPV WKDW KLV WULDO DWWRUQH\ DGYLVHG KLP WR WXUQ GRZQ WKH JRYHUQPHQWjVSOHDRIIHUEDVHGXSRQWKHDWWRUQH\jVHUURQHRXV EHOLHIWKDWWKHPD[LPXPWRZKLFK0DJDQDFRXOGEHVHQWHQFHG XSRQ FRQYLFWLRQ ZDV WZR WHQ\HDU FRQFXUUHQW VHQWHQFHV 0DJDQDDVVHUWVWKDWLIKLVWULDODWWRUQH\KDGFRUUHFWO\LQIRUPHG KLP WKDW LI FRQYLFWHG KH ZRXOG UHFHLYH WZR VWDWXWRULO\ PDQGDWHGWHQWRWZHQW\\HDUFRQVHFXWLYHVHQWHQFHVKHZRXOG KDYHDFFHSWHGWKHJRYHUQPHQWjVSOHDRIIHU)RUWKHIROORZLQJ UHDVRQVZH5(9(56(WKHGLVWULFWFRXUWjVMXGJPHQW ,s85,6',&7,21 :H KDYH MXULVGLFWLRQ WR KHDU 0DJDQDjV DSSHDO IURP WKH GLVWULFWFRXUWjVGHQLDORIKLVSHWLWLRQIRUKDEHDVFRUSXVXQGHU 86&† ,,%$&.*5281' 0DJDQDZDVFKDUJHGLQ6HSWHPEHU ZLWKWKUHHFRXQWV SRVVHVVLRQZLWKLQWHQWWRGHOLYHUPRUHWKDQEXWOHVVWKDQ JUDPVRIFRFDLQH FRQVSLUDF\WRSRVVHVVZLWKLQWHQWWR GHOLYHUPRUHWKDQEXWOHVVWKDQJUDPVRIFRFDLQH DQG SRVVHVVLRQ ZLWK LQWHQW WR GHOLYHU PDULMXDQD  (LWKHU mLPPHGLDWHO\lEHIRUHRUWKHGD\RIWULDO0DJDQDjVDWWRUQH\ 5XGROSK:DUWHOODUHFHLYHGDQRIIHUWRSOHDEDUJDLQIURPWKH  0DJDQDY+RIEDXHU 1R  1R  0DJDQDY+RIEDXHU 

VXIIHUHGE\WKHGHIHQGDQWDQHZWULDOZDVDQLQDSSURSULDWH 0LFKLJDQVWDWHSURVHFXWRU*LQWKHU+UjJDW3ULRUWRWKDW UHPHG\ IRU D GHIHQGDQW ZKR KDG FRQVWLWXWLRQDOO\ GHILFLHQW WLPH QR SOHD RIIHU ZDV IRUWKFRPLQJ IURP WKH SURVHFXWRUjV FRXQVHO GXULQJ WKH SOHD QHJRWLDWLRQ SURFHVV  ,G DW  RIILFH  ,G  :DUWHOOD FRQYH\HG WR 0DJDQD WKDW WKH VWDWH ,QVWHDGZHKHOGWKDWDVDUHPHG\WKHSURVHFXWLRQZDVIUHHWR RIIHUHG WR GLVPLVV RQH FRFDLQH FRXQW LQ H[FKDQJH IRU RIIHU WKH GHIHQGDQW DQRWKHU SOHD EDUJDLQ EXW WKDW DQ\ SOHD 0DJDQDjVJXLOW\SOHDWRWKHRWKHURQH:DUWHOODVWDWHGWKDWLW RIIHU LQ H[FHVV RI WKH RULJLQDO RIIHU PXVW RYHUFRPH D ZDVKLVXQGHUVWDQGLQJWKDWLI0DJDQDSOHDGHGWRRQHFRFDLQH UHEXWWDEOHSUHVXPSWLRQRISURVHFXWRULDOYLQGLFWLYHQHVV6HH FRXQWKHZRXOGUHFHLYHDWHQ\HDUVHQWHQFH,G+HDOVRWROG LGDW $FFRUGLQJO\ZH5(9(56(WKHGLVWULFWFRXUWjV 0DJDQDWKDWKHZRXOGUHFHLYHDWPRVWDWHQ\HDUVHQWHQFH GHFLVLRQ GHQ\LQJ 0DJDQDjV SHWLWLRQ IRU KDEHDV UHOLHI DQG ZHUHKHWREHFRQYLFWHGDWWULDO,GDW%HFDXVH:DUWHOOD 5(0$1'WKLVFDVHWRWKHGLVWULFWFRXUWWRJUDQWWKHZULWRI GLG QRW EHOLHYH WKDW WKH SOHD EDUJDLQ RIIHUHG 0DJDQD DQ\ KDEHDV FRUSXV ZLWKLQ QLQHW\ GD\V FRQGLWLRQDO XSRQ D QHZ EHQHILWRYHUJRLQJWRWULDOKHDGYLVHG0DJDQDWRUHMHFWWKH SOHD KHDULQJ LQ VWDWH FRXUW DW ZKLFK 0DJDQD KDV WKH SOHDRIIHU,GDW0DJDQDWKHQUHMHFWHGWKHSOHD RSSRUWXQLW\WRFRQVLGHUZLWKFRXQVHOWKHVWDWHjVRULJLQDOSOHD RIIHU  6KRXOG WKH VWDWH FKRRVH WR RIIHU 0DJDQD D SOHD LQ )ROORZLQJDMXU\WULDO0DJDQDZDVFRQYLFWHGRIWKHWZR H[FHVVRIWHQ\HDUVLWVRULJLQDORIIHUWKHGLVWULFWFRXUWPXVW FRFDLQHFKDUJHVDQGDFTXLWWHGRQWKHPDULMXDQDFKDUJHsRLQW GHWHUPLQH ZKHWKHU WKH VWDWH FDQ UHEXW WKH SUHVXPSWLRQ RI $SSHQGL[ ms$l  DW   +H ZDV VHQWHQFHG SXUVXDQW WR YLQGLFWLYHQHVVZKLFKZRXOGDWWDFKWRLWVRIIHU,IWKHVWDWHFDQ 0LFKLJDQ&RPS/DZV m0&/l †  D LLL WR PHHWLWVEXUGHQWKHQWKHSDUWLHVDUHIUHHWRQHJRWLDWHDQHZ WZR PDQGDWRULO\ FRQVHFXWLYH WHUPV RI WHQ WR WZHQW\ \HDUVj SOHD  ,I WKH VWDWH FDQQRW RYHUFRPH WKH SUHVXPSWLRQ DQG LW LPSULVRQPHQW7KDWVWDWXWHVWDWHVWKDWDSHUVRQZKRSRVVHVVHV UHIXVHVWRUHLQVWDWHLWVRULJLQDORIIHUWKHQWKHZULWPXVWEH ZLWKLQWHQWWRGHOLYHUPRUHWKDQEXWOHVVWKDQJUDPVRI JUDQWHG D FRQWUROOHG VXEVWDQFH mLV JXLOW\ RI D IHORQ\ DQG VKDOO EH LPSULVRQHGIRUQRWOHVVWKDQ\HDUVQRUPRUHWKDQ\HDUVl 0&/ †   D LLL   $FFRUGLQJ WR 0&/ †  DWHUPRILPSULVRQPHQWLPSRVHGSXUVXDQWWR VXEVHFWLRQ  D mVKDOOEHLPSRVHGWRUXQFRQVHFXWLYHO\ZLWK DQ\ WHUP RI LPSULVRQPHQW LPSRVHG IRU WKH FRPPLVVLRQ RI DQRWKHUIHORQ\l0&/†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

WR KLV XQGHUVWDQGLQJ RI WKH SOHD EDUJDLQ DQG WKH SRWHQWLDO 4 2ND\$QGWKHUHjVDPDQGDWRU\PLQLPXPRQHDFK VHQWHQFHVLQYROYHGLQDFFHSWLQJWKHSOHDRIIHUYHUVXVJRLQJWR FKDUJHRIWHQ\HDUVLVWKDWULJKW" WULDO0DJDQDDVVHUWHGWKDWKDGKLVWULDOFRXQVHOLQIRUPHG KLP WKDW KLV VHQWHQFHV ZRXOG UXQ FRQVHFXWLYHO\ LI KH ZDV $ 5LJKWWKDWLWZRXOGUXQFRQFXUUHQW FRQYLFWHG KH ZRXOG KDYH SOHDGHG JXLOW\  )ROORZLQJ WKH KHDULQJWKHWULDOFRXUWKHOGWKDW0DJDQDjVWULDOFRXQVHOZDV ,GDW HPSKDVLVDGGHG $OWKRXJKDVWKHVWDWHWULDOFRXUW QRW FRQVWLWXWLRQDOO\ LQHIIHFWLYH EHFDXVH 0DJDQD FRXOG QRW IRXQG 0DJDQD GRHV FRQFHGH WKDW KH KDG EHHQ WROG DW RQH SURYHWKDWEXWIRUKLVFRXQVHOjVIDXOW\DGYLFHKHZRXOGKDYH SRLQWWKDWWKHPD[LPXPVHQWHQFHKHFRXOGUHFHLYHZDVWZHQW\ DFFHSWHG WKH SOHD  3HRSOH Y 0DJDQD 1R )+ \HDUV ZH QRWH ILUVW WKDW KH ZDV H[SRVHG WR D SRWHQWLDO 0DFRPE&W\&LU&W0D\   VHQWHQFHRIIRUW\\HDUVj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mIRUIDLOXUHWRSHUVXDGHWKH&RXUWRIWKHH[LVWHQFHRI WULDO FRXUW DSSDUHQWO\ ZHLJKHG 0DJDQDjV LQFRQVLVWHQW PDQLIHVWO\ UHYHUVLEOH HUURU ZDUUDQWLQJ SHUHPSWRU\ UHOLHI WHVWLPRQ\ DQG FRQFOXGHG WKDW GHIHQGDQW mNQHZ WKDW LI ZLWKRXWDUJXPHQWRUIRUPDOVXEPLVVLRQl3HRSOHY0DJDQD FRQYLFWHGKHFRXOGUHFHLYHVHQWHQFHVRIXSWR\HDUVlZH 1R  0LFK&W$SS6HSW   RUGHUGHQ\LQJ GR QRW EHOLHYH WKDW 0DJDQDjV RQH VWDWHPHQW UHIOHFWLQJ PRWLRQ   7KHUHDIWHU 0DJDQD DSSHDOHG WKH WULDO FRXUWjV NQRZOHGJHRIDFRQFHLYDEOHWZHQW\\HDUVHQWHQFHHOLPLQDWHV GHFLVLRQ7KH0LFKLJDQ&RXUWRI$SSHDOVDIILUPHGWKHWULDO WKHUHDVRQDEOHSUREDELOLW\HVWDEOLVKHGE\WKHUHVWRI0DJDQDjV FRXUWjVILQGLQJWKDW0DJDQDKDGQRWVXIIHUHGSUHMXGLFHIURP WHVWLPRQ\DWWKH*LQWKHUKHDULQJWKDWKHZRXOGKDYHDFFHSWHG KLVFRXQVHOjVIDLOXUHSURSHUO\WRDGYLVHKLPRIKLVSRWHQWLDO WKHVWDWHjVSOHDRIIHUKDGKHEHHQDFFXUDWHO\DSSULVHGRIKLV VHQWHQFHVKRXOGKHJRWRWULDODQGWKHQUHPDQGHGWKHFDVHWR SRWHQWLDOSULVRQVHQWHQFH WKHWULDOFRXUWIRUIXUWKHUILQGLQJVRQDFODLPRIHQWUDSPHQW 3HRSOH Y 0DJDQD 1R   0LFK &W $SS $SULO  %HFDXVHWKHWULDOFRXUWDQGWKH0LFKLJDQ&RXUWRI$SSHDOV     )ROORZLQJ WKH WULDO FRXUWjV UHMHFWLRQ RI 0DJDQDjV UHQGHUHGDGHFLVLRQWKDWZDVFRQWUDU\WRFOHDUO\HVWDEOLVKHG HQWUDSPHQWFODLPWKH0LFKLJDQ&RXUWRI$SSHDOVDIILUPHG 6XSUHPH &RXUW SUHFHGHQW DQG WKH UHFRUG FRQFOXVLYHO\ WKH WULDO FRXUWjV GHFLVLRQ 3HRSOH Y 0DJDQD 1R  GHPRQVWUDWHVWKDWSHWLWLRQHULVHQWLWOHGWRKDEHDVUHOLHIXQGHU 0LFK&W$SS6HSW  DQGWKH0LFKLJDQ6XSUHPH WKHFRUUHFWVWDQGDUGRIODZZH5(9(56(WKHGLVWULFWFRXUWjV &RXUWGHQLHGOHDYHWRDSSHDO3HRSOHY0DJDQD1R GHQLDORI0DJDQDjVSHWLWLRQIRUKDEHDVFRUSXVUHOLHI $XJ    ,95(0('< +DYLQJ H[KDXVWHG KLV VWDWH UHPHGLHV 0DJDQD ILOHG D SHWLWLRQ IRU KDEHDV FRUSXV UHOLHI LQ IHGHUDO GLVWULFW FRXUW $VZHQRWHGLQ7XUQHUDUHPHG\IRUD6L[WK$PHQGPHQW SXUVXDQW WR  86& †   7KH GLVWULFW FRXUW GHQLHG YLRODWLRQmVKRXOGEHWDLORUHGWRWKHLQMXU\VXIIHUHGIURPWKH 0DJDQDjV SHWLWLRQ  $FFRUGLQJ WR WKH GLVWULFW FRXUW FRQVWLWXWLRQDOYLRODWLRQDQGVKRXOGQRWXQQHFHVVDULO\LQIULQJH m>S@HWLWLRQHUjVFRXQVHOWHVWLILHGDWWKH*LQWKHUKHDULQJWKDWLW RQFRPSHWLQJLQWHUHVWVl7XUQHU)GDW TXRWLQJ ZDV KLV XQGHUVWDQGLQJ DQG KH LQIRUPHG 3HWLWLRQHU 8QLWHG6WDWHVY0RUULVRQ 86   :H DFFRUGLQJO\WKDWHDFKRIWKHFRFDLQHFKDUJHVFDUULHGSRWHQWLDO DOVRQRWHGWKDWEHFDXVHWKHUHPHG\IRUD6L[WK$PHQGPHQW YLRODWLRQVKRXOGmQHXWUDOL]HlWKHFRQVWLWXWLRQDOGHSULYDWLRQ  0DJDQDY+RIEDXHU 1R  1R  0DJDQDY+RIEDXHU 

DILQGLQJRISUHMXGLFH 6HFRQG:DUWHOODWHVWLILHGDERXWKRZ VHQWHQFHVRIWHQWRWZHQW\\HDUVDQGWKDWWKRVHWZRVHQWHQFHV 0DJDQD UHDFWHG WR WKH SOHD RIIHU KH SUHVHQWHG HLWKHU FRXOGQRWUXQFRQVHFXWLYHO\ls$DW 7KHGLVWULFWFRXUW LPPHGLDWHO\EHIRUHRURQWKHGD\RIWULDO$IWHU:DUWHOODWROG DOVR FRQFOXGHG WKDW m>S@HWLWLRQHU    WHVWLILHG WKDW KH ZDV 0DJDQDWKDWmKHZDVJRLQJWRJHWWHQ\HDUVZKHWKHUKHZHQW DZDUH WKDW HDFK RI WKH FRFDLQHUHODWHG FKDUJHV FDUULHG WRWULDORUGLGQjWJRWRWULDOl0DJDQDWKHQVWDWHGWKDWm>X@QGHU SRWHQWLDOVHQWHQFHVRIXSWRWZHQW\\HDUVLQFDUFHUDWLRQls$ WKRVHFLUFXPVWDQFHVlKHZRXOGJRWRWULDO*LQWKHU+UjJDW DW%HFDXVH0DJDQDmSURYLGHGQRFUHGLEOHHYLGHQFHZKLFK HPSKDVLVDGGHG  VKRZVWKDWWKHVWDWHFRXUWjVFRQFOXVLRQZDVDQXQUHDVRQDEOH DSSOLFDWLRQ RI 6XSUHPH &RXUW SUHFHGHQWl LG WKH GLVWULFW $OWKRXJKDVWKHVWDWHWULDOFRXUWIRXQGWKH*LQWKHUKHDULQJ FRXUWGHQLHG0DJDQDj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†   :H WULDOLIKHKDGQRWEHHQH[SOLFLWO\DVVXUHGE\KLVFRXQVHOWKDW JUDQWHGDFHUWLILFDWHRIDSSHDODELOLW\RQ0DJDQDjVVROHFODLP KH mZDV JRLQJ WR JHW WHQ \HDUV ZKHWKHU KH ZHQW WR WULDO RU RILQHIIHFWLYHDVVLVWDQFHRIFRXQVHO GLGQjWJRWRWULDOl*LQWKHU+UjJDW,QGHHGZHQRWHWKDW DQ\GHIHQGDQWZKRKDVPHQWDOO\ SUHSDUHGKLPVHOIWRJRWR ,,,$1$/<6,6 WULDOEHFDXVHWKHVWDWHKDVUHIXVHGWRSOHDEDUJDLQZLWKKLPDV WKHVWDWHKHUHUHIXVHGXQWLOLPPHGLDWHO\EHIRUHWULDOZLOOKDYH $6WDQGDUGRI5HYLHZ DOUHDG\ DVVHVVHG IRU KLPVHOI WKH UHODWLYH VWUHQJWKV DQG ZHDNQHVVHVRIWKHJRYHUQPHQWjVFDVHDJDLQVWKLP0DJDQD :KHQ D GLVWULFW FRXUWjV GHFLVLRQ WR GHQ\ KDEHDV FRUSXV DSSHDUVWRKDYHGRQHMXVWWKDW UHOLHIXQGHU86&†LVDSSHDOHGWRWKLVFRXUWZH UHYLHZWKHGLVWULFWFRXUWjVOHJDOFRQFOXVLRQVGHQRYRDQGLWV 7KH VWDWH WULDO FRXUW DOVR IRXQG WKDW 0DJDQD JDYH RQH IDFWXDOILQGLQJVIRUFOHDUHUURU3DOD]]RORY*RUF\FD LQGLFDWLRQLQWKH*LQWKHUKHDULQJWKDWKHKDGEHHQLQIRUPHG )G WK&LU  WKDWKHFRXOGUHFHLYHDSRVVLEOHWZHQW\\HDUVHQWHQFHIRUWKH FRFDLQHFKDUJHV %HFDXVH 0DJDQDjV SHWLWLRQ IRU KDEHDV FRUSXV UHOLHI ZDV ILOHGLQsXQH DIWHUWKHHIIHFWLYHGDWHRIWKH$QWLWHUURULVP 4 6LU\RXZHUHDGYLVHGRIZKDWWKHPD[LPXPRUZKDW DQG(IIHFWLYH'HDWK3HQDOW\$FWRI  m$('3$l 3XE/ SHQDOW\\RXZHUHIDFLQJLQWKLVFDVHLVWKDWULJKW" 1R   6WDW     ZKLFK DPHQGHG  'LG0U:DUWHOODWHOO\RXnRU\RXZHUHDGYLVHGDW 86&†$('3$JRYHUQVRXUUHYLHZRIWKHVWDWHFRXUW \RXUDUUDLJQPHQWZHUHQjW\RXWKDWWKHPD[LPXP GHFLVLRQVLQWKLVFDVH$FFRUGLQJWRWKHDPHQGHGYHUVLRQRI SHQDOW\LQWKLVFDVHZDVWZHQW\\HDUVLQSULVRQIRU 86&†ZHPD\QRWJUDQWDZULWRIKDEHDVFRUSXV GHOLYHU\RIFRFDLQH" mZLWKUHVSHFWWRDQ\FODLPWKDWZDVDGMXGLFDWHGRQWKHPHULWV LQ 6WDWH FRXUW SURFHHGLQJV XQOHVV WKH DGMXGLFDWLRQ RI WKH $ <HDK,ZRXOGJHWWHQLI,WRRNWKHSOHDRU,ORVWLQ FODLPn WULDOEXWWKHPD[ZRXOGEHWZHQW\  0DJDQDY+RIEDXHU 1R  1R  0DJDQDY+RIEDXHU 

 UHVXOWHG LQ D GHFLVLRQ WKDW ZDV FRQWUDU\ WR RU 4 2ND\$QG\RXMXVWVDLGKHDGYLVHG\RXWKH\ZRXOG LQYROYHG DQ XQUHDVRQDEOH DSSOLFDWLRQ RI FOHDUO\ UXQFRQFXUUHQW" HVWDEOLVKHG )HGHUDO ODZ DV GHWHUPLQHG E\ WKH 6XSUHPH&RXUWRIWKH8QLWHG6WDWHV RU

 UHVXOWHG LQ D GHFLVLRQ WKDW ZDV EDVHG RQ DQ $ <HV<HV XQUHDVRQDEOHGHWHUPLQDWLRQRIWKHIDFWVLQOLJKWRI WKHHYLGHQFHSUHVHQWHGLQWKH6WDWHFRXUWSURFHHGLQJ 4 2ND\,I\RXKDGNQRZQWKDWWKH\ZRXOGEHVWDFNHG ZRXOG\RXKDYHSOHGJXLOW\" 86&† G    7KHIHGHUDOFRXUWPXVWSUHVXPH WKDW DOO GHWHUPLQDWLRQV RI IDFWXDO LVVXHV PDGH E\ WKH VWDWH $ ,VXUHZRXOGKDYH,PHDQWHQ\HDUVLVDORWEHWWHU FRXUW DUH FRUUHFW XQOHVV WKH GHIHQGDQW FDQ UHEXW WKDW WKDQWZHQW\NQRZLQJWKDW,GLGKDYHRQWKHGHOLYHU\ SUHVXPSWLRQE\FOHDUDQGFRQYLQFLQJHYLGHQFH6HH86& \HV,ZRXOGKDYH † H   *LQWKHU+UjJDW HPSKDVLVDGGHG /DWHULQWKHKHDULQJ 7KH6XSUHPH&RXUWKDVFODULILHGWKDWWKHSKUDVHVmFRQWUDU\ 0DJDQD WROG WKH SURVHFXWRU WKDW DOWKRXJK KH ZDV ZRUULHG WRl DQG mXQUHDVRQDEOH DSSOLFDWLRQ RIl LQ  86& DERXWWKHPDULMXDQDFKDUJHEHFDXVHKHNQHZKLPVHOIWREH † G  KDYHLQGHSHQGHQWPHDQLQJ3HQU\YsRKQVRQ JXLOW\LGDWKHWKRXJKWWRKLPVHOI m,IHHOZHKDGVRPH 6&W    ,QRUGHUIRUDVWDWHFRXUWWR LVVXHVDQGPD\EHJHWDOHVVHUFKDUJHDQGDWWKDWWLPH,WXUQHG UHQGHUDGHFLVLRQmFRQWUDU\WRlFOHDUO\HVWDEOLVKHG6XSUHPH GRZQWKHWHQDQG,VDLG,GRQjWKDYHQRWKLQJWRORVHOHWjVJR &RXUW SUHFHGHQW WKH VWDWH FRXUW PXVW mDSSO>\@ D UXOH WKDW WRWULDO$QGDWWKDWWLPH,ZDVDOZD\Vn\RXNQRZ,VDLG FRQWUDGLFWVWKHJRYHUQLQJODZVHWIRUWKLQ>6XSUHPH&RXUW@ ZHOOHYHQLI,ORVHWRP\VHOI,ZRXOGVWLOORQO\JHWWHQHYHQ FDVHVl RU mFRQIURQW>@ D VHW RI IDFWV WKDW DUH PDWHULDOO\ LIDOOWKUHHFKDUJHVZHUHIRXQGJXLOW\WKDWWKH\ZRXOGEHn LQGLVWLQJXLVKDEOHIURPDGHFLVLRQRIlWKH6XSUHPH&RXUWDQG UXQFRQFXUUHQWl,GDW HPSKDVLVDGGHG  QHYHUWKHOHVVDUULYHDWDGLIIHUHQWUHVXOW:LOOLDPVY7D\ORU  86   2j&RQQRUsFRQFXUULQJ $Q 7ZRREMHFWLYHIDFWRUVLQDGGLWLRQWRWKHGHIHQGDQWjVRZQ mXQUHDVRQDEOHDSSOLFDWLRQRIlFOHDUO\HVWDEOLVKHG)HGHUDOODZ GHFODUDWLRQVFRQYLQFHXVWKDWWKHUHZDVDWOHDVWDUHDVRQDEOH PD\RFFXULQFRQWUDVWZKHQmWKHVWDWHFRXUWLGHQWLILHVWKH SUREDELOLW\WKDW0DJDQDZRXOGKDYHDFFHSWHGWKHSOHDRIIHU FRUUHFWJRYHUQLQJOHJDOSULQFLSOHIURPWKLV&RXUWjVGHFLVLRQV KDGKHNQRZQKLVWUXHVHQWHQFLQJH[SRVXUH)LUVWWKHUHLVD EXW XQUHDVRQDEO\ DSSOLHV WKDW SULQFLSOH WR WKH IDFWV RI WKH ODUJH GLVSDULW\ LQ WKH SULVRQ VHQWHQFHV EHWZHHQ WKDW ZKLFK SULVRQHUjVFDVHl,GDW$QXQUHDVRQDEOHDSSOLFDWLRQRI 0DJDQDZDVRIIHUHGE\WKHVWDWHnWHQ\HDUVmRQWKHQRVHln ODZLVQRWDFFRUGLQJWRWKH6XSUHPH&RXUWPHUHO\LQFRUUHFW DQGWKDWZKLFKKHUHFHLYHGE\YLUWXHRIWKHMXU\YHUGLFWnD UDWKHUmWKDWDSSOLFDWLRQPXVWDOVREHXQUHDVRQDEOHl,GDW PLQLPXPRI WZHQW\\HDUVjDQGDPD[LPXPRIIRUW\\HDUVj  LPSULVRQPHQW  ,W GRHV QRW VWUDLQ UHDVRQ WR EHOLHYH WKDW 0DJDQDZRXOGKDYHFKRVHQDIODWWHQ\HDUVHQWHQFHLQVWHDGRI :H PXVW WKHUHIRUH GHWHUPLQH ZKHWKHU WKH VWDWH FRXUWjV ULVNLQJDSRVVLEOHIRUW\\HDUWHUP,QGHHGKHVRWHVWLILHGDW FRQFOXVLRQWKDW0DJDQDZDVQRWGHSULYHGKLVULJKWWRHIIHFWLYH WKHKHDULQJ6HHHJ*LQWKHU+UjJDW&I*RUGRQ DVVLVWDQFH RI FRXQVHO LV FRQWUDU\ WR RU DQ XQUHDVRQDEOH )GDW QRWLQJWKDWODUJHGLVSDULW\EHWZHHQDFWXDO DSSOLFDWLRQRIFOHDUO\HVWDEOLVKHG)HGHUDOODZ VHQWHQFHDQGVHQWHQFHWKDWGHIHQGDQWjVFRXQVHOUHSUHVHQWHGKH ZRXOGUHFHLYHLIKHZHQWWRWULDOSURYLGHVVXIILFLHQWHYLGHQFH ZKHQYLHZHGZLWKWKHGHIHQGDQWjVRZQWHVWLPRQ\WRVXSSRUW  0DJDQDY+RIEDXHU 1R  1R  0DJDQDY+RIEDXHU 

VHSDUDWHRSLQLRQVLQWKDWFDVHZKLFKGHWHUPLQHGWKDWWKHVWDWH %,QHIIHFWLYH$VVLVWDQFHRI&RXQVHO FRXUWKDGHUUHGE\KROGLQJWKHSHWLWLRQHUWRDQHUURQHRXVOHJDO EXUGHQXQGHUWKH&RXUWjVUHOHYDQWSUHFHGHQWVWKHQHQJDJHGLQ ,QRUGHUWRVXFFHHGRQDFODLPRILQHIIHFWLYHDVVLVWDQFHRI D GH QRYR UHYLHZ RI WKH SHWLWLRQHUjV FODLP XQGHU WKH FRXQVHO D SHWLWLRQHU PXVW VKRZ ERWK WKDW KLV FRXQVHOjV FRQWUROOLQJODZ6HH:LOOLDPV 86DW   6WHYHQV SHUIRUPDQFHZDVFRQVWLWXWLRQDOO\GHILFLHQWVXFKWKDWKHZDV s  PDMRULW\ RSLQLRQ  DQDO\]LQJ GH QRYR KRZ FRXQVHOjV QRW IXQFWLRQLQJ DV WKH mFRXQVHOl JXDUDQWHHG E\ WKH 6L[WK HUURUV DW VHQWHQFLQJ SUHMXGLFHG SHWLWLRQHU  LG DW  $PHQGPHQW DQG WKDW KH ZDV SUHMXGLFHG E\ KLV FRXQVHOjV 2j&RQQRU s  FRQFXUULQJ RSLQLRQ  HQJDJLQJ LQ GH QRYR HUURUV6WULFNODQGY:DVKLQJWRQ86    UHYLHZDIWHUQRWLQJWKDWLWZDVmLPSRVVLEOHWRGHWHUPLQHlWR 7R SURYH FRQVWLWXWLRQDOO\ GHILFLHQW SHUIRUPDQFH SHWLWLRQHU ZKDWH[WHQWVWDWHVXSUHPHFRXUWjVHUURQHRXVYLHZRIWKHODZ PXVW VKRZ WKDW KLV FRXQVHOjV SHUIRUPDQFH IHOO EHORZ DQ FRORUHGLWVILQGLQJWKDWSHWLWLRQHUVXIIHUHGQRSUHMXGLFH ,Q REMHFWLYH VWDQGDUG RI UHDVRQDEOHQHVV XQGHU SUHYDLOLQJ DFFRUGDQFHZLWKWKH6XSUHPH&RXUWjVFRXUVHRIDFWLRQZH SURIHVVLRQDOQRUPV6WULFNODQG86DW,IKHFDQ ZLOOWKHUHIRUHHQJDJHLQDGHQRYRUHYLHZRI0DJDQDjVFODLP PHHWWKLVVWDQGDUGWKHQSHWLWLRQHUPXVWHVWDEOLVKSUHMXGLFHE\ RILQHIIHFWLYHDVVLVWDQFHRIFRXQVHO&I5RVH)GDW  GHPRQVWUDWLQJWKDWmWKHUHLVDUHDVRQDEOHSUREDELOLW\WKDWEXW UHFRJQL]LQJWKDWmUDWKHUWKDQFDOOLQWRGRXEWRXUDXWKRULW\WR IRU FRXQVHOjV XQSURIHVVLRQDO HUURUV WKH UHVXOW RI WKH FRQGXFW D GH QRYR UHYLHZ RI >SHWLWLRQHUjV@ LQHIIHFWLYH SURFHHGLQJZRXOGKDYHEHHQGLIIHUHQWl6WULFNODQG86 DVVLVWDQFHRIFRXQVHOFODLP:LOOLDPVFRQFOXVLYHO\DIILUPVRXU DW $mUHDVRQDEOHSUREDELOLW\lLVDmSUREDELOLW\VXIILFLHQW DXWKRULW\WRFRQGXFWVXFKDUHYLHZlZKHQSUHVHQWHGZLWKD WRXQGHUPLQHFRQILGHQFHLQWKHRXWFRPHl,G7KH6XSUHPH VWDWHFRXUWGHFLVLRQZKLFKLVFRQWUDU\WRFOHDUO\HVWDEOLVKHG &RXUWjVWZRSDUWVWDQGDUGIRUDQDO\]LQJFODLPVRILQHIIHFWLYH 6XSUHPH&RXUWSUHFHGHQW  DVVLVWDQFH RI FRXQVHO ILUVW DUWLFXODWHG LQ 6WULFNODQG ZDV FOHDUO\ HVWDEOLVKHG ODZ DV RI WKH WLPH 0DJDQD EURXJKW KLV $IWHUFDUHIXOUHYLHZRIWKHHYLGHQWLDU\KHDULQJWUDQVFULSW VWDWHFRXUWDSSHDO:LOOLDPV 86DW DQGWKHVWDWHWULDOFRXUWjVGHFLVLRQZHEHOLHYHWKDW0DJDQD DGHTXDWHO\ GHPRQVWUDWHG WKDW WKHUH ZDV D UHDVRQDEOH 7KH6WULFNODQGDQDO\VLVDOVRDSSOLHVWRFODLPVRILQHIIHFWLYH SUREDELOLW\ WKDW EXW IRU KLV FRXQVHOjV HUURQHRXV DGYLFH DVVLVWDQFH RI FRXQVHO LQYROYLQJ FRXQVHOjV DGYLFH RIIHUHG FRQFHUQLQJ KLV HVWLPDWHG SULVRQ VHQWHQFH ZHUH KH WR EH GXULQJWKHSOHDSURFHVV+LOOY/RFNKDUW86 FRQYLFWHG DW WULDO KH ZRXOG KDYH DFFHSWHG WKH VWDWHjV SOHD   $FFRUGLQJWRWKH6XSUHPH&RXUWDSHWLWLRQHUZKR RIIHU0DJDQDWHVWLILHGWKDWZKHQSUHVHQWHGZLWKWKHVWDWHjV DVVHUWV WKDW KLV FRXQVHO ZDV FRQVWLWXWLRQDOO\ LQHIIHFWLYH IRU SOHDRIIHUHLWKHULPPHGLDWHO\EHIRUHRURQWKHGD\RIWULDOKH HQFRXUDJLQJ KLP WR SOHDG JXLOW\ PXVW SURYH ERWK WKDW KLV UHDVRQHG FRXQVHOjV SHUIRUPDQFH ZDV GHILFLHQW DQG WKDW mWKHUH LV D UHDVRQDEOHSUREDELOLW\WKDWEXWIRUFRXQVHOjVHUURUVKHZRXOG m,VDLGZHOO\RXNQRZ,GRQjWKDYHQRWKLQJWRORVHLI QRWKDYHSOHDGHGJXLOW\DQGZRXOGKDYHLQVLVWHGRQJRLQJWR ,jPn\RXNQRZKHDGYLVHGPHWKDWWKH\ZRXOGDOOUXQ WULDOl,GDW )ROORZLQJ/RFNKDUWZHKDYHKHOGWKDWD FRQFXUUHQW ZKDWHYHU , JRW HYHQ LI , JRW JXLOW\ RQ WKH SHWLWLRQHU ZKR FODLPV WKDW KLV FRXQVHO ZDV LQHIIHFWLYH IRU PDULMXDQD \RXNQRZDQG,VDLGWKDWjVZKDW,ZDQWWRGR HQFRXUDJLQJKLPWRUHMHFWDSOHDEDUJDLQDQGJRWRWULDOVWDWHV JRWRWULDOEHFDXVH\RXNQRZ,ZDVWU\LQJWRJHWDOHVVHU DYLDEOH6L[WK$PHQGPHQWFODLP7XUQHUY7HQQHVVHH FKDUJH\RXNQRZEHFDXVHLWZDVVRFORVHWRILIW\JUDPV )G WK&LU  YDFDWHGRQRWKHUJURXQGV LWZDVQjWDQGRYHULWZDVILIW\DQGXQGHU  86    UHLQVWDWHGRQRWKHUJURXQGV )G   WK &LU     6XFK D SHWLWLRQHU PXVW SURYH ERWKGHILFLHQWSHUIRUPDQFHRQWKHSDUWRIKLVFRXQVHODQGWKDW  0DJDQDY+RIEDXHU 1R  1R  0DJDQDY+RIEDXHU 

EXWIRUKLVFRXQVHOjVDGYLFHWKHUHLVDUHDVRQDEOHSUREDELOLW\ EXWIRUKLVFRXQVHOjVHUURQHRXVDGYLFHWKHUHLVDUHDVRQDEOH WKDW KH ZRXOG KDYH SOHDGHG JXLOW\  7XUQHU  )G DW SUREDELOLW\WKDWKHZRXOGKDYHDFFHSWHGWKHSOHD:KHQZH  VHHDOVR3DWHUV )GDW UHTXLULQJGHIHQGDQW FRPSDUHWKH0LFKLJDQ&RXUWRI$SSHDOVjVOHJDOIRUPXODWLRQ WRVKRZWKDWmWKHUHLVDUHDVRQDEOHSUREDELOLW\WKDWKHZRXOG RI D FODLP RI LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO DW WKH SOHD KDYH DFFHSWHG WKH DOOHJHG SURSRVHG SOHD DJUHHPHQW DEVHQW EDUJDLQLQJ VWDJH ZLWK WKDW RI WKH 8QLWHG 6WDWHV 6XSUHPH GHIHQVH FRXQVHOjV DGYLFHl  *RUGRQ  )G DW  &RXUW LW LV FOHDU WKDW WKH 0LFKLJDQ &RXUW RI $SSHDOVjV DSSO\LQJ mUHDVRQDEOH SUREDELOLW\l VWDQGDUG WR FODLP WKDW VWDQGDUGSODFHGWRRJUHDWDEXUGHQRISURRIRQWKHGHIHQGDQW GHIHQVH FRXQVHOjV JURVV PLVDGYLFH UHJDUGLQJ SRWHQWLDO WR VKRZ SUHMXGLFH   XQGHU WKDW VWDWH FRXUWjV GHILQLWLRQ D VHQWHQFLQJH[SRVXUHYLRODWHGGHIHQGDQWjV6L[WK$PHQGPHQW GHIHQGDQW PXVW GHPRQVWUDWH QRW MXVW D mUHDVRQDEOH ULJKWV 8QLWHG6WDWHVY'D\  )G  G&LU  SUREDELOLW\lEXWDQDEVROXWHFHUWDLQW\WKDWWKHRXWFRPHRIWKH QRWLQJ WKDW GHIHQGDQW ZKR FODLPV WKDW KLV FRXQVHOjV JURVV SURFHHGLQJVZRXOGEHGLIIHUHQW&I'D\  )GDWQ XQGHUHVWLPDWLRQRIKLVVHQWHQFHOHGKLPWRUHMHFWVWDWHjVSOHD QRWLQJ WKDW m6WULFNODQG Y :DVKLQJWRQ GRHV QRW UHTXLUH RIIHU PXVW PHHW WKH mUHDVRQDEOH SUREDELOLW\l VWDQGDUG WR FHUWDLQW\ RU HYHQ D SUHSRQGHUDQFH RI WKH HYLGHQFH WKDW WKH SURYHSUHMXGLFH  RXWFRPHZRXOGKDYHEHHQGLIIHUHQWZLWKHIIHFWLYHDVVLVWDQFH RIFRXQVHO LWUHTXLUHVRQO\µUHDVRQDEOHSUREDELOLW\jWKDWWKDW &6WDWH&RXUW'HFLVLRQV LVWKHFDVHl +ROGLQJ0DJDQDWRWKLVPRUHH[DFWLQJVWDQGDUG ZDV ZH EHOLHYH FRQWUDU\ WR FOHDUO\ HVWDEOLVKHG 6XSUHPH $IWHUWKH*LQWKHUKHDULQJWKHVWDWHWULDOFRXUWFRQFOXGHG &RXUW SUHFHGHQW  6HH :LOOLDPV   86 DW  WKDW :DUWHOOD KDG LQIRUPHG 0DJDQD WKDW LQ H[FKDQJH IRU K\SRWKHVL]LQJWKDWDVWDWHFRXUWZKLFKKHOGWKDW6WULFNODQG 0DJDQDjV JXLOW\ SOHD WKH VWDWH mZRXOG UHFRPPHQG D VWDQGDUG IRU LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO UHTXLUHG PLQLPXP VHQWHQFH RI  \HDUVl  $SSHOOHHjV %U DW  SULVRQHUWRHVWDEOLVKE\DSUHSRQGHUDQFHRIWKHHYLGHQFHDV $FFRUGLQJ WR WKH WULDO FRXUW :DUWHOOD DOVR mEHOLHYHG DQ\ RSSRVHGWRDUHDVRQDEOHSUREDELOLW\WKDWUHVXOWRISURFHHGLQJV VHQWHQFHVGHIHQGDQWZRXOGUHFHLYHIROORZLQJDWULDOZRXOGUXQ ZRXOG KDYH EHHQ GLIIHUHQW ZRXOG EH FRQWUDU\ WR FOHDUO\ FRQFXUUHQW QRW FRQVHFXWLYH DQG GLGQjW EHOLHYH GHIHQGDQW HVWDEOLVKHG6XSUHPH&RXUWSUHFHGHQW VHHDOVR5RVHY/HH ZRXOGUHFHLYHDQ\EHQHILWE\SOHDGLQJJXLOW\l,G7KHFRXUW  )G    WK &LU   QRWLQJ WKDW LW ZDV WKHQIRXQGWKHIROORZLQJDVWR0DJDQD mFRQWUDU\WRlFOHDUO\HVWDEOLVKHG6XSUHPH&RXUWSUHFHGHQWIRU VWDWH KDEHDV FRXUW WR UHTXLUH SHWLWLRQHU WR SURYH SUHMXGLFH  XQGHU6WULFNODQGE\DSUHSRQGHUDQFHRIWKHHYLGHQFH 0DVN 7KH 6HYHQWK DQG 6HFRQG &LUFXLWV KDYH KHOG WKDW D GHIHQGDQWjV SRVW Y0F*LQQLV)G G&LU  FRQFOXGLQJ FRQYLFWLRQ WHVWLPRQ\ WKDW KH ZRXOG KDYH DFFHSWHG WKH SOHD LV LQVXIILFLHQW WKDW VWDWH WULDO FRXUW ZKLFK IDLOHG WR HPSOR\ mUHDVRQDEOH WR HVWDEOLVK SUHMXGLFH ,QVWHDG WKRVH FRXUWV KDYH UHTXLUHG WKH GHIHQGDQW WR FRPH IRUZDUG ZLWK DGGLWLRQDO REMHFWLYH HYLGHQFH WR SURYH WKDW WKH SUREDELOLW\l VWDQGDUG ZKHQ HYDOXDWLQJ FODLP RI LQHIIHFWLYH GHIHQGDQW ZRXOG KDYH DFFHSWHG WKH SOHD RIIHU 3DWHUV Y 8QLWHG 6WDWHV DVVLVWDQFHRIFRXQVHOGXULQJSOHDQHJRWLDWLRQXQUHDVRQDEO\  )G   WK &LU   8QLWHG 6WDWHV Y *RUGRQ  )G DSSOLHGFOHDUO\HVWDEOLVKHG6XSUHPH&RXUWSUHFHGHQW    G &LU    2XU FLUFXLW KDV QRW H[SOLFLWO\ DGRSWHG VXFK D UHTXLUHPHQW DOWKRXJK LQ 7XUQHU WKLV FRXUW DSSURYHG RI D GLVWULFW FRXUWjV '$SSURSULDWH+DEHDV5HOLHI GHFLVLRQ ZKLFK FRQFOXGHG WKDW WKH GHIHQGDQW KDG RIIHUHG VXIILFLHQW REMHFWLYH HYLGHQFH LQ WKDW KH PDGH D FRXQWHURIIHU WR WKH JRYHUQPHQW WKDW ,Q:LOOLDPVWKH6XSUHPH&RXUWHYDOXDWHGZKHWKHUDVWDWH KH ZRXOG KDYH DFFHSWHG WKH JRYHUQPHQWjV SOHD 7XUQHU  )G DW  6WULFNODQG KRZHYHU RQO\ UHTXLUHV WKDW D GHIHQGDQW GHPRQVWUDWH WKDW WKHUH FRXUW KDG LQFRUUHFWO\ IUDPHG LWV OHJDO DQDO\VLV RI WKH LV D mUHDVRQDEOH SUREDELOLW\l WKDW WKH UHVXOW RI WKH SURFHHGLQJ ZRXOG KDYH SHWLWLRQHUjVLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPLQOLJKWRI EHHQ GLIIHUHQW 7KH 6XSUHPH &RXUW KDV LPSRVHG QR UHTXLUHPHQW WKDW WKH FOHDUO\ HVWDEOLVKHG 6XSUHPH &RXUW SUHFHGHQW  7ZR RI WKH GHIHQGDQW PHHW KLV EXUGHQ RI SURRI WKURXJK REMHFWLYH HYLGHQFH  0DJDQDY+RIEDXHU 1R  1R  0DJDQDY+RIEDXHU

$ 1R,ZDVQj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nQR,GLGQjW,WROGKLPWKDW 'HIHQGDQW NQRZLQJO\ UHMHFWHG WKH SOHD RIIHU  +H ZDV KHZDVJRLQJWRJHWWHQ\HDUVZKHWKHUKHZHQWWR DZDUH LW ZDV D JRRG RIIHU LQ OLJKW RI WKH SRWHQWLDO WULDORUGLGQjWJRWRWULDO SHQDOWLHVKHZDVIDFLQJ+RZHYHUKHEHOLHYHGKHZRXOG QRWEHFRQYLFWHGRUDWWKHOHDVWKHZRXOGEHFRQYLFWHG ,GDW HPSKDVLVDGGHG $VERWKWKHVWDWHFRXUWVDQGWKH RIDOHVVHURIIHQVHDQGRUUHFHLYHOHVVHUVHQWHQFHV(YHQ GLVWULFWFRXUWDSSHDUWRKDYHFRQFHGHG:DUWHOODjVFRPSOHWH DVVXPLQJ GHIHQGDQW EHOLHYHG KH ZRXOG UHFHLYH LJQRUDQFH RI WKH UHOHYDQW ODZ XQGHU ZKLFK KLV FOLHQW ZDV FRQFXUUHQWVHQWHQFHVIRUKLVFRQYLFWLRQVE\GHIHQGDQWjV FKDUJHG DQG KLV FRQVHTXHQW JURVV PLVDGYLFH WR KLV FOLHQW RZQ WHVWLPRQ\ KH NQHZ WKDW LI FRQYLFWHG KH FRXOG UHJDUGLQJWKHFOLHQWjVSRWHQWLDOSULVRQVHQWHQFHFHUWDLQO\IHOO UHFHLYH VHQWHQFHV RI XS WR  \HDUV  ,W LV FOHDU IURP EHORZ DQ REMHFWLYH VWDQGDUG RI UHDVRQDEOHQHVV XQGHU GHIHQGDQWjVWHVWLPRQ\WKDWKHFKRVHWRWDNHDFKDQFHE\ SUHYDLOLQJSURIHVVLRQDOQRUPV JRLQJWRWULDO 7KHUHIRUH WKLV FDVH KLQJHV QRW RQ ZKHWKHU :DUWHOODjV ,G DW   %DVHG RQ WKHVH GHWHUPLQDWLRQV WKH WULDO FRXUW SHUIRUPDQFH ZDV LQDGHTXDWH EXW UDWKHU RQ ZKHWKHU WKH FRQFOXGHGDVDPDWWHURIODZWKDW0DJDQDjVFRXQVHOZDVQRW 0LFKLJDQ&RXUWRI$SSHDOVjVFRQFOXVLRQWKDW0DJDQDFRXOG LQHIIHFWLYH7KHWULDOFRXUWVWDWHGWKDWmGHIHQGDQWZRXOGQRW QRW SURYH SUHMXGLFH ZDV FRQWUDU\ WR RU DQ XQUHDVRQDEOH KDYHDFFHSWHGWKHSOHDRIIHUVRWKDWKHZDVQRWSUHMXGLFHGE\ DSSOLFDWLRQRIFOHDUO\HVWDEOLVKHG6XSUHPH&RXUWSUHFHGHQW FRXQVHOjVUHSUHVHQWDWLRQ7KHUHIRUHGHIHQGDQWLVQRWHQWLWOHG ,QLWVUHYLHZRIWKHVWDWHWULDOFRXUWjVGHFLVLRQWKH0LFKLJDQ WRUHOLHIl,G &RXUWRI$SSHDOVDIILUPHGWKHWULDOFRXUWjVFRQFOXVLRQWKDWWKH UHOHYDQWOHJDOVWDQGDUGDJDLQVWZKLFK0DJDQDjVFODLPVKRXOG 2Q DSSHDO WKH 0LFKLJDQ &RXUW RI $SSHDOV VWDWHG WKDW EHPHDVXUHGZDVWKHIROORZLQJ m,IWKHWULDOFRXUWGHWHUPLQHV XQGHUUHOHYDQW0LFKLJDQODZLIWKHGHIHQGDQWFDQSURYHWKDW WKDWWKHGHIHQGDQWZRXOGQRWKDYHDFFHSWHGWKHRIIHUWKHQWKH KHZRXOGKDYHDFFHSWHGWKHSOHDRIIHUWKHQWKHGHIHQGDQWZDV GHIHQGDQWZDVQRWSUHMXGLFHGDQGLVQRWHQWLWOHGWRUHOLHIRQ SUHMXGLFHGDQGKHZRXOGEHHQWLWOHGWRUHOLHI,IKRZHYHUWKH KLV LQHIIHFWLYH DVVLVWDQFH FODLPl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jV ILQGLQJ7KH&RXUWRI$SSHDOVVWDWHG m>:@H FRXQVHOjVSHUIRUPDQFHZDVREMHFWLYHO\GHILFLHQWDQG  WKDW FRQFOXGHWKDWWKHWULDOFRXUWjVILQGLQJWKDWGHIHQGDQWZRXOG  0DJDQDY+RIEDXHU 1R  1R  0DJDQDY+RIEDXHU 

QRWKDYHDFFHSWHGWKHSOHDRIIHULVVXSSRUWHGE\WKHUHFRUG $ 2EYLRXVO\ ,jP ZURQJ EXW , VWLOO IHHO WKDW \RX FDQjW 'HIHQGDQWWHVWLILHGWKDWKHIHOWWKDWKHFRXOGZLQDWWULDORU VWDFNVHQWHQFHVIRUWKHVDPHRIIHQVHHYHQWKRXJKWKHUH WKDW KH ZRXOG EH FRQYLFWHG RI D OHVVHU RIIHQVH  +H DOVR LVDFRQVSLUDF\LQYROYHG$QG,XQGHUVWDQGFRQVSLUDF\ WHVWLILHG WKDW KH ZDV DZDUH WKDW WKH PD[LPXP VHQWHQFH KH ODZ LV NLQG RI FRQYROXWHG EXW WKDWjV VWLOO P\ FRXOG JHW ZRXOG EH WZHQW\ \HDUVj LPSULVRQPHQWl  ,G LPSUHVVLRQ %HFDXVHLWFRQFOXGHGWKDWWKHWULDOFRXUWjVILQGLQJWKDW0DJDQD ZRXOGQRWKDYHDFFHSWHGWKHSOHDZDVQRWFOHDUO\HUURQHRXV 4 6RWRFODULI\GLG\RXHYHUWHOO0U0DJDQDWKDWD WKH 0LFKLJDQ &RXUW RI $SSHDOV KHOG WKDW 0DJDQD ZDV QRW FRQYLFWLRQ IRU GHOLYHU\ DQG D FRQYLFWLRQ IRU SUHMXGLFHGDQGZDVQRWWKHUHIRUHHQWLWOHGWRUHOLHI6HHLG FRQVSLUDF\ LQ KLV GUXJ GHOLYHU\ FRXOG UXQ FRQVHFXWLYH" %RWKWKHVWDWHWULDOFRXUWDQG0LFKLJDQ&RXUWRI$SSHDOV FRQFOXGHG WKDW HYHQ LI WULDO FRXQVHOjV SHUIRUPDQFH ZDV $ 1R,QHYHUWROGKLPWKDW FRQVWLWXWLRQDOO\GHILFLHQW0DJDQDFRXOGQRWSURYHSUHMXGLFH EHFDXVHKHGLGQRWHVWDEOLVKWKDWEXWIRUKLVWULDOFRXQVHOjV ,G HPSKDVLVDGGHG 2QFURVVH[DPLQDWLRQE\WKHVWDWHWKH HUURQHRXVDGYLFHKHZRXOGKDYHDFFHSWHGWKHSOHD%HFDXVH SURVHFXWRUDVNHG WKH VWDWH FRXUWV GLG QRW GLVFXVV WKH TXHVWLRQ RI GHILFLHQW SHUIRUPDQFH ZH ZLOO DVVXPH WKDW WKH\ FRQFOXGHG WKDW 4 +DG\RXDGYLVHGKLPRIZKDWWKHPD[LPXPSHQDOW\ :DUWHOODjV SHUIRUPDQFH ZDV REMHFWLYHO\ GHILFLHQW XQGHU ZRXOGEHLQWKLVFDVH" 6WULFNODQG  ,QGHHG LW ZRXOG EH KDUG WR LPDJLQH KRZ :DUWHOODjVDGYLFHGXULQJWKHSOHDQHJRWLDWLRQSURFHVVFRXOG $ ,I\RXZHUHFRQYLFWHGRQDOOWKUHHFKDUJHV" KDYH EHHQ PRUH LQDGHTXDWH  $W WKH *LQWKHU KHDULQJ KH 4 <HV WHVWLILHGDVWRKLVXQGHUVWDQGLQJRIWKHVWDWHjVSOHDRIIHUDV IROORZV m>0@\XQGHUVWDQGLQJRIWKHSOHDDJUHHPHQWZDVLI $ <HDK,DGYLVHGKLPLWZRXOGEHWHQ\HDUV KH SOHG RQ WKH QRVH KHjG JHW WHQ \HDUV DQG WKDWjV WKH LQIRUPDWLRQ WKDW , DP LPSDUWLQJ WR 0U 0DJDQDl  *LQWKHU 4 7KDWjVZKDW\RXWROGKLP" +UjJ7UDW+HWKHQVWDWHGWKDWKHDGYLVHG0DJDQDHLWKHU LPPHGLDWHO\EHIRUHRURQWKHGD\RIWULDOWKDWmKHKDGQRWKLQJ $ <HV WR ORVH VLQFH WKH\ ZHUHQjW JRLQJ WR GR DQ\WKLQJ  7KH\ ZHUHQjWJRLQJWRRIIHUKLPDQ\WKLQJVRKHPLJKWMXVWDVZHOO

JRWRWULDOl,GDW7KHIROORZLQJH[FKDQJHWKHQRFFXUUHG 4 6LUGLG\RXDGYLVH\RXUFOLHQWWKDWLQHDFKFDVHWKHUH 4 :K\ZDVLW\RXULPSUHVVLRQWKDWKHKDGQRWKLQJWR ZDV D PDQGDWRU\ PLQLPXP RI WHQ \HDUV LI ORVH" FRQYLFWHG" $ :HOOP\LPSUHVVLRQDQGP\LPSUHVVLRQLVVWLOOWKDW $ 1R \RX FDQjW VWDFN FRQFXUUHQW RIIHQVHV  <RX FDQjW PDNHWKHPUXQFRQVHFXWLYHO\ 4 <RXGLGQjWWHOOKLPWKDW"

$ 1R,GLGQjW 4 :HUH\RXDZDUHRIWKDW"