United States v. Colon

U.S. Court of Appeals for the Sixth Circuit

United States v. Colon

Opinion

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 DS

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

81,7(' 67$7(6 2) $0(5,&$ ; 3ODLQWLII$SSHOOHH    1R Y  !  $1$,%21< &2/21  'HIHQGDQW$SSHOODQW  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV 1R n(GPXQG$6DUJXVsU'LVWULFWsXGJH 6XEPLWWHG $XJXVW 'HFLGHGDQG)LOHG 2FWREHU %HIRUH 0225(DQG&2/(&LUFXLWsXGJHV 526(1 'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ 21%5,() 6WHYHQ61ROGHU$ODQs3IHXIIHU)('(5$/ 38%/,& '()(1'(5j6 2)),&( &ROXPEXV 2KLR IRU

7KH +RQRUDEOH *HUDOG ( 5RVHQ 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ

  8QLWHG6WDWHVY&RORQ 1R

$SSHOODQW  5RE\Q sRQHV +DKQHUW $66,67$17 81,7(' 67$7(6$77251(<&ROXPEXV2KLRIRU$SSHOOHH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 526(1'LVWULFWsXGJH'HIHQGDQW$SSHOODQW$QDLERQ\ &RORQDSSHDOVKLVFRQYLFWLRQDQGVHQWHQFHRQ&RXQWVDQG RI D VHYHQFRXQW LQGLFWPHQW ZKLFK FKDUJHG KLP ZLWK FRQVSLUDF\WRGLVWULEXWHDQGSRVVHVVZLWKLQWHQWWRGLVWULEXWH PRUH WKDQ  JUDPV RI FRFDLQH DQG GLVWULEXWLRQ RI PRUH WKDQ  JUDPV RI FRFDLQH UHVSHFWLYHO\ DUJXLQJ WKDW WKH 'LVWULFW &RXUW HUUHG LQ GHQ\LQJ KLV UHTXHVW IRU D OHVVHU LQFOXGHGRIIHQVH MXU\ LQVWUXFWLRQ RQ VLPSOH SRVVHVVLRQ RI FRFDLQH$VGLVFXVVHGEHORZZHILQGQRHUURUZLWKUHVSHFWWR WKH'LVWULFW&RXUWjVUHIXVDOWRJLYHDOHVVHULQFOXGHGRIIHQVH LQVWUXFWLRQ$FFRUGLQJO\ZHDIILUP'HIHQGDQWj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

$ (9(176 *,9,1* 5,6( 72 '()(1'$17j6 ,1',&70(17$1'68%6(48(17&219,&7,21 ,Q HDUO\ sDQXDU\   sDUUD $QGHUVRQ D FRRSHUDWLQJ ZLWQHVVFRQILGHQWLDOLQIRUPDQWLGHQWLILHGWKUHHLQGLYLGXDOV *DEULHO0HGLQD5REHUW6DQWDQDDQG5LFDUGR5H\HVDVDOO EHLQJLQYROYHGLQWKHVDOHRIFRFDLQH$QGHUVRQH[SODLQHGWR WKH *RYHUQPHQW DJHQWV WKDW KH PHW 0HGLQD 6DQWDQD DQG 5H\HVZKLOHKHZDVZRUNLQJDVDEDUEHUDW%URWKHUjV%DUEHU 6KRSLQ&ROXPEXV2KLR$QGHUVRQDOVRDGYLVHGWKHDJHQWV WKDWKHKDGEHHQSXUFKDVLQJFRFDLQHIRUVHYHUDOPRQWKVIURP 0HGLQD$QGHUVRQSXUFKDVHGDSSUR[LPDWHO\WKUHHNLORJUDPV RI FRFDLQH IURP 0HGLQD LQ 1RYHPEHU   DQG WKHQ SXUFKDVHGWKUHHPRUHNLORJUDPVIURPKLPDPRQWKODWHULQ 'HFHPEHU   0HGLQD XVXDOO\ GHOLYHUHG WKH FRFDLQH WR $QGHUVRQ DW KLV DSDUWPHQW LQ WKH /DXUHO /DNHV DSDUWPHQW FRPSOH[$QGHUVRQQHLWKHUNQHZ$SSHOODQW$QDLERQ\&RORQ QRU KDGKHKHDUG$SSHOODQWjVQDPHPHQWLRQHGE\0HGLQD 6DQWDQDRU5H\HV+RZHYHU0HGLQDWHVWLILHGDWWULDOWKDWKH ZRXOGFRQWDFW(XFOLGHV&DVWLOORKLVPDLQGUXJVXSSOLHUHDFK WLPHKHQHHGHGFRFDLQHDQGWKDWHDFKWLPH&DVWLOORDUUDQJHG IRU&RORQWRWUDQVSRUWWKHFRFDLQHIURP1HZ<RUNWR2KLR 2Q)HEUXDU\ $QGHUVRQDFWLQJDVDFRQILGHQWLDO LQIRUPDQW DQG XQGHU ODZ HQIRUFHPHQW GLUHFWLRQ FRQWDFWHG 0HGLQDDQGQHJRWLDWHGWREX\WZRNLORJUDPVRIFRFDLQH7KH WUDQVDFWLRQ ZDV WR WDNH SODFH DW $QGHUVRQjV /DXUHO /DNHV DSDUWPHQW  3ULRU WR 0HGLQDjV SODQQHG WUDQVDFWLRQ ZLWK $QGHUVRQ0HGLQDGURYHWR&RORQj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

WKH WZR NLORJUDPV RI FRFDLQH ODWHU WKDW HYHQLQJ  0HGLQD WKH 'LVWULFW &RXUW GLG QRW HUU LQ UHIXVLQJ WR JLYH D OHVVHU WHVWLILHG WKDW &RORQ DJUHHG WR KHOS KLP FOHDQ WKH RIILFH LQFOXGHG RIIHQVH LQVWUXFWLRQ RQ VLPSOH SRVVHVVLRQ EHFDXVH &RORQ ZDV DQ[LRXV IRU WKH FRFDLQH GHDO WR EH $FFRUGLQJO\'HIHQGDQW&RORQjVFRQYLFWLRQDQGVHQWHQFHDUH FRPSOHWHGWKDWQLJKW0HGLQDVDLGWKDWLI&RORQGLGQRWKHOS $)),50(' KLPKHZRXOGKDYHEHHQXQDEOHWRDUUDQJHWKHGHOLYHU\WR $QGHUVRQWKDWSDUWLFXODUQLJKW :KLOH DW 9LQFHQW *UDSKLFV 0HGLQD UHFHLYHG DQG PDGH VHYHUDOFHOOXODUSKRQHFDOOVWR$QGHUVRQGLVFXVVLQJWKHVDOHRI WZRNLORJUDPVRIFRFDLQH$OWKRXJK&RORQVDZ0HGLQDPDNH VHYHUDOFHOOXODUSKRQHFDOOVKHVDLGKHZDVXQDEOH WR KHDU 0HGLQDjVFRQYHUVDWLRQV$IWHU&RORQDQG0HGLQDILQLVKHG WKH FOHDQLQJ MRE 0HGLQD DJUHHG WR GULYH &RORQ KRPH $FFRUGLQJWR0HGLQDKHDQG&RORQWKHQKHDGHGWR&RORQjV DSDUWPHQWWRUHWULHYHWKHWZRNLORJUDPVRIFRFDLQHWRVHOOWR $QGHUVRQ %HIRUH 0HGLQD DQG &RORQ PDGH LW EDFN WR &RORQj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jVDSDUWPHQWDQGDEORFNDZD\IURPWKHORFDWLRQRI WKHWUDIILFVWRS $OWKRXJK0HGLQDjVFDUDQGFXUUHQF\ZHUH LPSRXQGHG QHLWKHU 0HGLQD QRU &RORQ ZHUH DUUHVWHG WKDW HYHQLQJ0HGLQDPDGHQRIXUWKHUFRQWDFWZLWK$QGHUVRQWKDW QLJKW 7KHQH[WGD\0HGLQDFDOOHG$QGHUVRQDQGWROGKLPKHZDV QRORQJHULQWHUHVWHGLQVHOOLQJKLPWZRNLORJUDPVRIFRFDLQH 'HVSLWH$QGHUVRQjVHIIRUWVWRSUHVV0HGLQDWRFRQWLQXHZLWK WKHVDOH0HGLQDWROG$QGHUVRQKHZRXOGVHQGVRPHRQHHOVH ZKRZRXOGDFWLQKLVSODFH/DWHUWKDWGD\0HGLQDLQGLFDWHG  8QLWHG6WDWHVY&RORQ 1R 1R 8QLWHG6WDWHVY&RORQ 

8QLWHG 6WDWHV Y 6HSXOYHGD  )G   VW &LU WR$QGHUVRQWKDWLWZRXOGEH5LFDUGR5H\HVZKRZRXOGEH   8QLWHG6WDWHVY%DUULHQWRV)G WK WDNLQJRYHUWKHWUDQVDFWLRQ$OWKRXJK5H\HVDWILUVWDJUHHGWR &LU  FHUW GHQLHG86   ,Q8QLWHG GHDO GLUHFWO\ ZLWK $QGHUVRQ KH UHIXVHG DIWHU OHDUQLQJ WKDW 6WDWHVYsDFNVRQVXSUDWKH7HQWK&LUFXLWKHOGWKDWVLPSOH 0HGLQDjV YHKLFOH DQG FXUUHQF\ KDG SUHYLRXVO\ EHHQ SRVVHVVLRQZDVQRWDOHVVHULQFOXGHGRIIHQVHRIGLVWULEXWLRQRI LPSRXQGHG7KHUHIRUH0HGLQDWROG$QGHUVRQWKDWKHZRXOG DFRQWUROOHGVXEVWDQFHH[SODLQLQJ EHVHQGLQJVRPHRQHHOVHWRGRWKHGHDOmDPDQZKRGLGQRW VSHDN WKDW JRRG (QJOLVKl  $FFRUGLQJ WR 0HGLQD WKDW :HKDYHSUHYLRXVO\KHOGVLPSOHSRVVHVVLRQLVDOHVVHU UHIHUHQFHZDVWR'HIHQGDQW$QDLERQ\&RORQ LQFOXGHGRIIHQVHRISRVVHVVLRQRIDFRQWUROOHGVXEVWDQFH ZLWKWKHLQWHQWWRGLVWULEXWH+RZHYHULWGRHVQRWIROORZ  7KHFRFDLQHGHDOIRUWKHWZRNLORJUDPVDOHWR$QGHUVRQZDV WKDW VLPSOH SRVVHVVLRQ LV D OHVVHU LQFOXGHG RIIHQVH RI UHVXUUHFWHGDPRQWKODWHULQ0DUFK +RZHYHU5H\HV GLVWULEXWLRQXQGHU86&† D  'LVWULEXWLRQ DQG QRW 0HGLQD ZDV WKH SHUVRQ ZKR FRQWDFWHG $QGHUVRQ PHDQVmWRGHOLYHUDFRQWUROOHGVXEVWDQFHRUDOLVWHG XUJLQJ KLP WR GR WKH GHDO  $QGHUVRQ VWLOO RSHUDWLQJ DV D FKHPLFDOl   86& †       $OWKRXJK FRQILGHQWLDO VRXUFH PHW ZLWK 5H\HV VHYHUDO WLPHV DQG GLVWULEXWLRQ PD\ LQYROYH WKH DFWXDO RU FRQVWUXFWLYH XOWLPDWHO\ DJUHHG WR SXUFKDVH WZR WR WKUHH NLORJUDPV RI SRVVHVVLRQ RI D FRQWUROOHG VXEVWDQFH FRXUWV KDYH FRFDLQHIURPKLP FRQVWUXHG WKH WHUP mGLVWULEXWLRQl EURDGO\ WR mLQFOXGH RWKHUDFWVSHUSHWUDWHGLQIXUWKHUDQFHRIDWUDQVIHURUVDOH 2Q0DUFK 5H\HVDJUHHGWRGHOLYHUWKHFRFDLQHWR VXFK DV DUUDQJLQJ RU VXSHUYLVLQJ WKH GHOLYHU\ RU $QGHUVRQLQWKH%LJ%HDUSDUNLQJORWLQ&ROXPEXV2QWKDW QHJRWLDWLQJ IRU RU UHFHLYLQJ WKH SXUFKDVH SULFHl   GDWH5H\HVILUVWZHQWWR&RORQj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jV DSDUWPHQW SRVVHVVLRQRIDFRQWUROOHGVXEVWDQFHmGLVWULEXWLRQlLQFOXGHV 7KHVHRIILFHUVZDWFKHGDV5H\HVSDUNHGRXWVLGHRI&RORQjV RWKHUDFWVSHUSHWUDWHGLQIXUWKHUDQFHRIDWUDQVIHURUVDOHVXFK EXLOGLQJDQGVXEVHTXHQWO\HQWHUHGWKHEXLOGLQJ$WWKLVWLPH DVDUUDQJLQJRUVXSHUYLVLQJWKHGHOLYHU\RUQHJRWLDWLQJIRURU 5H\HVKDGZLWKKLPDQRWKHUNLORJUDPRIFRFDLQHWRDGGWRWKH UHFHLYLQJWKHSXUFKDVHSULFH7KXVLWLVSRVVLEOHWRFRPPLW WZR ZKLFK KDG SUHYLRXVO\ EHHQ GHOLYHUHG WR &RORQjV WKHmGLVWULEXWLRQlHOHPHQWRIWKHFULPHZLWKRXWSRVVHVVLQJWKH DSDUWPHQWLQWKHNQDSVDFN5H\HVKDQGHGWKLVNLORJUDPWR GUXJVWKHPVHOYHV &RORQ DQG DVNHG KLP WR SODFH LW LQ WKH NQDSVDFN  &RORQ FODLPHGWKDW5H\HVWKHQDVNHGKLPWRFDUU\WKHNQDSVDFNDQG 7KHIRUHJRLQJGLVFXVVLRQGHPRQVWUDWHVWKDWWKHHOHPHQWVRI DFFRPSDQ\ KLP LQ KLV YDQ WR DQ XQGLVFORVHG ORFDWLRQ DQG VLPSOH SRVVHVVLRQ DUH QRW LGHQWLFDO WR WKH HOHPHQWV RI &RORQDJUHHGWRGRVR&RORQKRZHYHUFODLPHGKHGLGQRW GLVWULEXWLRQRIFRFDLQHRURIFRQVSLUDF\WRSRVVHVVZLWKLQWHQW NQRZWKHSXUSRVHRIWKHWULSWRWKH%LJ%HDUSDUNLQJORW WRGLVWULEXWHRUWRGLVWULEXWHFRFDLQH7KHUHIRUHZHILQGWKDW  8QLWHG6WDWHVY&RORQ 1R 1R 8QLWHG6WDWHVY&RORQ 

:KHQ WKH WZR PHQ H[LWHG &RORQjV DSDUWPHQW EXLOGLQJ  NQRZLQJO\RULQWHQWLRQDOO\GLVWULEXWHFRFDLQHDQG   DW &RORQ ZDV REVHUYHG FDUU\LQJ D JUHHQ J\P EDJ RQ KLV OHIW WKH WLPH RI VXFK GLVWULEXWLRQ WKH GHIHQGDQW NQHZ WKDW WKH VKRXOGHU%RWK&RORQDQG5H\HVJRWLQWR5H\HVjVYDQDQG VXEVWDQFHZDVFRFDLQH 5H\HVWKHQGURYHGLUHFWO\WRWKH%LJ%HDUSDUNLQJORWZKHUH WKHFRFDLQHVDOHZDVWRWDNHSODFH $SSHOODQW&RORQDUJXHVWKDWDOWKRXJKmSRVVHVVLRQlLVQRW XQGHUWKHWHUPVRIWKHVWDWXWHDQHOHPHQWRIWKHRIIHQVHRI 2QFH$QGHUVRQjVFDUZDVORFDWHGLQWKH%LJ%HDUSDUNLQJ DFWXDOGLVWULEXWLRQLWLVGLIILFXOWWRVHHKRZDGHIHQGDQWFRXOG ORW5H\HVSDUNHGKLVYDQGLUHFWO\DFURVVIURP$QGHUVRQjVFDU EHFRQYLFWHGRIDFWXDOGLVWULEXWLRQZLWKRXWH[HUFLVLQJDGHJUHH $WWKLVWLPHERWK5H\HVDQG&RORQJRWRXWRIWKHYDQ&RORQ RIFRQWURORYHUWKHGUXJV,QHVVHQFHZKDW&RORQSUHVHQWVLV VWRRGRXWVLGHRIWKHYDQDQGDSSHDUHGWREHORRNLQJDURXQG DQ mLQKHUHQW UHODWLRQVKLSl DSSURDFK ZKLFK ZDV H[SUHVVO\ WKHSDUNLQJORW+HHYHQWXDOO\JRWEDFNLQVLGHWKHYDQLQWKH UHMHFWHGE\WKH6XSUHPH&RXUWLQ6FKPXFN GULYHUjVVHDW&RORQWKHQXVHGVRPHPRUHRIWKHFRFDLQHKH KDG VWROHQ IURP RQH RI WKH NLORJUDP SDFNDJHV  5H\HV $VWKH*RYHUQPHQWSRLQWVRXWWKHFULPHRIGLVWULEXWLRQ PHDQZKLOH ZHQW WR $QGHUVRQjV FDU ZKHUH KH GHOLYHUHG WR PXFKOLNHWKHFULPHRIFRQVSLUDF\WRGLVWULEXWHDQGSRVVHVV $QGHUVRQWKUHHNLORJUDPVRIFRFDLQHLQWKHJUHHQJ\PEDJ ZLWKLQWHQWWRGLVWULEXWHFDQEHFRPPLWWHGZLWKRXWDFWXDOO\ WKDW&RORQKDGEHHQREVHUYHGFDUU\LQJRXWRIKLVDSDUWPHQW SRVVHVVLQJ WKH FRQWUROOHG VXEVWDQFH 7KH *RYHUQPHQWjV FRPSOH[2QFHWKHGHOLYHU\ZDVPDGHDJHQWVDUUHVWHG5H\HV DUJXPHQWLVFRQVLVWHQWZLWKSUHYLRXVGHFLVLRQVRIWKLVFLUFXLW DQG&RORQ DVZHOODVPDQ\RIWKHRWKHUFLUFXLWV 7KHFRFDLQHUHWULHYHGIURPWKHJUHHQGXIIOHEDJZDVWHVWHG 7KLV &RXUW KDV SUHYLRXVO\ REVHUYHG WKDW D mGLVWULEXWLRQ E\WKH'($ODERUDWRU\DQGIRXQGWRFRQWDLQ JUDPVRI FKDUJH FDQ FRQFHLYDEO\ EH SURYHG ZLWKRXW SURRI RI FRFDLQHRISXULW\7KUHHRI&RORQjVODWHQWILQJHUSULQWV SRVVHVVLRQl8QLWHG6WDWHVY6WHYHQV)G WK ZHUHIRXQGRQWKHZUDSSLQJRIWKHNLORJUDPVRIFRFDLQH1R &LU  $OWKRXJKZHRQO\EULHIO\WRXFKHGRQWKLVLVVXHLQ SULQWVRI0HGLQDRU5H\HVZHUHIRXQGRQDQ\RIWKHZUDSSHUV 6WHYHQVPDQ\RWKHUFLUFXLWVKDYHH[SUHVVO\GHWHUPLQHGWKDW WKHFULPHRIGLVWULEXWLRQFDQEHFRPPLWWHGZLWKRXWDFWXDOO\ :LWKLQ PLQXWHV RI &RORQjV DQG 5H\HVj DUUHVW D EURZQ HYHUSRVVHVVLQJWKHFRQWUROOHGVXEVWDQFH,Q8QLWHG6WDWHVY $FXUDZDVIRXQGSDUNHGRXWVLGH&RORQjVDSDUWPHQWFRPSOH[ *RUH  )G   G &LU    WKH 6HFRQG &LUFXLW 7KDWSDUWLFXODUYHKLFOHZDVUHJLVWHUHGWR(XFOLGHV&DVWLOORWKH GHWHUPLQHGWKDWSURRIRIGLVWULEXWLRQRIDFRQWUROOHGVXEVWDQFH VXSSOLHURIWKHFRFDLQHZKLFK&RORQDOOHJHGO\GHOLYHUHGWR GRHVQRWQHFHVVDULO\LQFOXGHWKHHOHPHQWRISRVVHVVLRQ7KH 0HGLQD FRXUWH[SODLQHG 8SRQKLVDUUHVWDJHQWVIRXQGLQ&RORQjVSRFNHWDGROODUELOO >6@RPHRQHZKRSDUWLFLSDWHVLQDGUXJWUDQVDFWLRQoHJ ZKLFKFRQWDLQHGDVPDOOTXDQWLW\RIFRFDLQH DSLHFHRISDSHU DVDEURNHURUDUPHGJXDUGoFDQEHOLDEOHIRUGLVWULEXWLRQ ZLWKWKH &RRNH5RDGIDNHDGGUHVVZULWWHQRQLW DSLHFH ZLWKRXW HYHU SRVVHVVLQJ WKH GUXJV     :KLOH RISDSHUZLWKSKRQHQXPEHUVIRU0HGLQD6DQWDQDDQG5H\HV mSRVVHVVLRQlLVFHUWDLQO\KHOSIXOLQSURYLQJGLVWULEXWLRQ DQG D UHFHLSW LQ WKH QDPH RI (XFOLGHV &DVWLOOR IURP (G LWLVWHFKQLFDOO\QRWDQHFHVVDU\HOHPHQW 5HHVHjV 7RZLQJ LQ 3O\PRXWK 0HHWLQJ 3HQQV\OYDQLD GDWHG 0DUFK IRUWKH$FXUDUHJLVWHUHGWR(XFOLGHV&DVWLOOR ,GDW 7KHUHFHLSWZDVVLJQHGE\$QDLERQ\&RORQDQGGHPRQVWUDWHG D GLUHFW FRQQHFWLRQ EHWZHHQ &RORQ DQG &DVWLOOR ZKR DV $ QXPEHU RI RWKHU FRXUWV KDYH VLPLODUO\ KHOG WKDW QRWHG DERYH ZDV WKH GLUHFW VXSSOLHU RI WKH FRFDLQH ZKLFK SRVVHVVLRQLVQRWDQHFHVVDU\HOHPHQWRIGLVWULEXWLRQ6HH  8QLWHG6WDWHVY&RORQ 1R 1R 8QLWHG6WDWHVY&RORQ 

FOHDUO\FRQVSLUDF\WRGLVWULEXWHDQGRUFRQVSLUDF\WRSRVVHVV &RORQDOOHJHGO\GHOLYHUHGWR0HGLQDLQ&ROXPEXV2KLR7KH ZLWKLQWHQWWRGLVWULEXWH&RORQGLGQRWKDYHWRGLVWULEXWHRU UHFHLSWIXUWKHULQGLFDWHGWKDWWKH$FXUDZDVLQ3HQQV\OYDQLD SRVVHVVDQ\FRFDLQHWREHJXLOW\RIWKHFRQVSLUDF\+HZDV WZRGD\VSULRUWRWKHGHOLYHU\RIWKHFRFDLQHWR$QGHUVRQE\ RQO\UHTXLUHGWRDJUHHZLWKVRPHRQHWRFRPPLWRQHRIWKRVH 5H\HVDQG&RORQ7KLVFRUUHVSRQGHGWRUHFRUGHGWHOHSKRQH FULPHV7KHHVVHQWLDOHOHPHQWRIFRQVSLUDF\LVWKDWmPHPEHUV FRQYHUVDWLRQVEHWZHHQ5H\HVDQG$QGHUVRQLQZKLFK5H\HV RIWKHFRQVSLUDF\LQVRPHZD\RUPDQQHURUWKURXJKVRPH LQGLFDWHGWKDWDVRI0DUFK DQG0DUFK KHZDV FRQWULYDQFH FDPH WR D PXWXDO XQGHUVWDQGLQJ WR WU\ WR VWLOOZDLWLQJIRUWKHFRFDLQHWRFRPHLQWRWRZQ DFFRPSOLVKDFRPPRQDQGXQODZIXOSODQl8QLWHG6WDWHVY 3HDUFH )G  WK&LU  FHUWGHQLHG  &RORQFODLPHGWKDW5H\HVJDYHKLPWKHWZRUHFHLSWVWRSXW 86     LQKLVSRFNHW+HDOVRFODLPHGWKDWKHSLFNHGXSWKHFDUGZLWK 0HGLQDjV6DQWDQDjVDQG5H\HVjSKRQHQXPEHUVRQLWVRWKDW 2WKHUFLUFXLWVWKDWKDYHDGGUHVVHGWKLVLVVXHKDYHKHOGWKDW KH FRXOG VQRUW FRFDLQH RII RI LW DQG WKDW LW ZDV PHUHO\ VLPSOH SRVVHVVLRQ LV QRW D OHVVHULQFOXGHGRIIHQVH RI mKDSSHQVWDQFHlWKDWKHKDGSODFHGWKHFDUGLQKLVSRFNHW FRQVSLUDF\WRGLVWULEXWHDQGSRVVHVVZLWKLQWHQWWRGLVWULEXWH FRFDLQH8QLWHG6WDWHVY.URXW)G WK $IWHUWKHDUUHVWVRI&RORQDQG5H\HV0HGLQDZDVDUUHVWHG &LU  FHUWGHQLHG86   8QLWHG6WDWHV DV ZHOO  0HGLQD VXEVHTXHQWO\ DJUHHG WR SOHDG JXLOW\ WR D Y%URZQ)G WK&LU  8QLWHG6WDWHV FRFDLQHGLVWULEXWLRQFRQVSLUDF\DQGFRRSHUDWHZLWKDXWKRULWLHV YsDFNVRQ)G    WK&LU FHUW LQUHWXUQIRUDGRZQZDUGGHSDUWXUHLQVHQWHQFLQJ0HGLQD GHQLHG86  8QLWHG6WDWHVY+RUQ  H[SODLQHGWRWKHDXWKRULWLHVWKDWKHPDGHDFRXSOHRIWULSVIRU )G WK&LU    $VWKH7HQWK&LUFXLW 5REHUW6DQWDQDWR1HZ<RUN&LW\LQRUGHUWRSLFNXSFRFDLQH H[SODLQHG LQ +RUQ m>,@W LV SRVVLEOH WR FRQVSLUH WR FRPPLW DQGEULQJLWEDFNWR&ROXPEXVIRUGLVWULEXWLRQ,WZDVRQKLV WKHVH GUXJ RIIHQVHV >SRVVHVVLRQ SRVVHVVLRQ ZLWK LQWHQW WR ILUVW WULS WKDW 0HGLQD ILUVW PHW (XFOLGHV &DVWLOOR  0HGLQD GLVWULEXWHDQGGLVWULEXWLRQ@ZLWKRXWDFWXDOO\FRPPLWWLQJWKH SLFNHGXSWKHFRFDLQHIURP&DVWLOORDQGGURYHDFDUZLWKWKH RIIHQVHWKHPVHOYHV WKXVLWLVQRWLPSRVVLEOHWRFRPPLWWKH FRFDLQHLQLWWR&ROXPEXVIRU6DQWDQD JUHDWHU RIIHQVH FRQVSLUDF\  ZLWKRXW FRPPLWWLQJ WKH VXJJHVWHGOHVVHURIIHQVHVl+RUQ )GDW 0HGLQDWHVWLILHGWKDWLQ RQDVHFRQGWULSWR1HZ<RUN &LW\WRSLFNXSPRUHGUXJVIURP&DVWLOORIRU6DQWDQD0HGLQD 5HO\LQJ RQ WKH VDPH UDWLRQDOH ZH QRZ MRLQ WKHVH RWKHU PHW 'HIHQGDQW &RORQ  2Q WKLV WULS &RORQ DV &DVWLOORjV FLUFXLWV DQG KROG WKDW VLPSOH SRVVHVVLRQ LV QRW D OHVVHU UHSUHVHQWDWLYH URGH ZLWK 0HGLQD EDFN WR &ROXPEXV WR LQFOXGHGRIIHQVHRIFRQVSLUDF\WRGLVWULEXWHDQGSRVVHVVZLWK WUDQVSRUWWKHFRFDLQHWR6DQWDQD0HGLQDWHVWLILHGWKDWDIWHU LQWHQWWRGLVWULEXWH WKHGHOLYHU\RIWKLVVKLSPHQWRIFRFDLQHWR6DQWDQDjVFXVWRPHU LQ'D\WRQ2KLR0HGLQDGHOLYHUHGWKHPRQH\WRSD\IRUWKH E 'LVWULEXWLRQ FRFDLQHWR&RORQDQG&RORQVXEVHTXHQWO\WRRNWKDWPRQH\ EDFN WR &DVWLOOR LQ 1HZ <RUN  $IWHU WKDW &RORQ EHJDQ &RORQDOVRDUJXHVWKDWWKHHOHPHQWVRIVLPSOHSRVVHVVLRQ WUDQVSRUWLQJFRFDLQHIURP1HZ<RUNWR6DQWDQDLQ&ROXPEXV VKRXOGEHFRQVLGHUHGmDQHFHVVDU\VXEVHWlRIWKHHOHPHQWVRI RQ D UHJXODU EDVLV  (YHQWXDOO\ &RORQ REWDLQHG KLV RZQ GLVWULEXWLRQRIFRFDLQH$VVWDWHGDERYHDYLRODWLRQRI DSDUWPHQWLQ&ROXPEXV 86&† D VLPSOHSRVVHVVLRQUHTXLUHV   NQRZLQJO\RU LQWHQWLRQDOO\   SRVVHVVLQJ   D FRQWUROOHG VXEVWDQFH 0HGLQD DGPLWWHG KHOSLQJ &RORQ REWDLQ DQ DSDUWPHQW LQ 0RQJHU VXSUD  ,Q FRPSDULVRQ D YLRODWLRQ RI  86& &ROXPEXV GXH WR KLV OLPLWHG (QJOLVK EXW WHVWLILHG WKH † D GLVWULEXWLRQRIFRFDLQHUHTXLUHVWKDWDGHIHQGDQW LQIRUPDWLRQKHSXWRQWKHDSSOLFDWLRQZDVSURYLGHGE\&RORQ  8QLWHG6WDWHVY&RORQ 1R 1R 8QLWHG6WDWHVY&RORQ 

6SHFLILFDOO\ 0HGLQD WHVWLILHG WKDW WKH LQIRUPDWLRQ ZKLFK DVRWKHUZLVHDXWKRUL]HGE\WKLVVXEFKDSWHURUVXEFKDSWHU OLVWHG &RORQjV YHKLFOH DV WKH $FXUD /HJHQG RI (XFOLGHV ,,RIWKLVFKDSWHU &DVWLOORZDVSURYLGHGE\&RORQ&RORQEODPHGDOORIWKH DQVZHUVRQKLVUHQWDODSSOLFDWLRQUHODWHGWR(XFOLGHV&DVWLOOR 86&† D  RQ0HGLQD 3XUVXDQWWR86&††DQG D LWLVXQODZIXOIRU 2QFH&RORQOHDVHGWKHDSDUWPHQWRQ5RFKH'ULYHWKHGUXJV ZHUHVWRUHGDWWKDWDSDUWPHQWXQWLOWKH\FRXOGEHGLVWULEXWHG $Q\ SHUVRQ >WR NQRZLQJO\ RU LQWHQWLRQDOO\@ DWWHPSW RU 0HGLQD WHVWLILHG WKDW &RORQ VXEVHTXHQWO\ EHJDQ PDNLQJ FRQVSLUH WR >PDQXIDFWXUH GLVWULEXWH RU GLVSHQVH RU GHOLYHULHVIRU6DQWDQDDQG&DVWLOORIURP&ROXPEXVWR'D\WRQ SRVVHVVZLWKLQWHQWWRPDQXIDFWXUHGLVWULEXWHRUGLVSHQVH 0HGLQDREWDLQHGDOORIWKHFRFDLQHKHVROGWRsDUUD$QGHUVRQ DFRQWUROOHGVXEVWDQFH@ IURP(XFOLGHV&DVWLOORZKLOH&RORQDOOHJHGO\GHOLYHUHGLWWR 0HGLQDIRU&DVWLOOR 86&†† D 

% 3(57,1(17352&('85$/%$&.*5281' 7KHUHLVFOHDUO\QRLGHQWLW\RIHOHPHQWVLQWKHWZRFULPHV $ YLRODWLRQ RI  86& †  D  VLPSOH SRVVHVVLRQ )ROORZLQJ 'HIHQGDQW &RORQj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sXO\    WHQ GD\V EHIRUH WKH WKHQ )G WK&LU  FHUWGHQLHG 86  VFKHGXOHGWULDOGDWHRI$XJXVW 7KH$XJXVW   FLWLQJ8QLWHG6WDWHVY6DQFKH] )G WULDO GDWH ZDV FRQWLQXHG XSRQ PRWLRQ E\ 'HIHQGDQW &RORQ WK&LU   XQWLO6HSWHPEHU $VRIWKHFRPPHQFHPHQWRIWULDO LQ 6HSWHPEHU   KRZHYHU 'HIHQGDQW KDG QRW ILOHG DQ\ ,Q 8QLWHG 6WDWHV Y 0RQJHU VXSUD ZH KHOG WKDW VLPSOH UHTXHVWHGMXU\LQVWUXFWLRQV SRVVHVVLRQ LV D OHVVHULQFOXGHGRIIHQVH RI SRVVHVVLRQ ZLWK LQWHQWWRGLVWULEXWH+RZHYHULQWKHSUHVHQWFDVH'HIHQGDQW 7KHWULDOEHJDQDVVFKHGXOHGRQ6HSWHPEHU DQG &RORQ ZDV QRW FKDUJHG ZLWK WKH VXEVWDQWLYH FULPH RI WKH JRYHUQPHQW UHVWHG LWV FDVHLQFKLHI RQ 6HSWHPEHU  mSRVVHVVLRQZLWKLQWHQWWRGLVWULEXWHFRFDLQHl,QVWHDG&RORQ  $SUHOLPLQDU\FKDUJHFRQIHUHQFHZDVKHOGSULRUWRWKH ZDV FKDUJHG LQ &RXQW  ZLWK FRQVSLUDF\ WR GLVWULEXWH DQG FRPPHQFHPHQWRIWHVWLPRQ\RQ6HSWHPEHU $WWKDW SRVVHVV ZLWK LQWHQW WR GLVWULEXWH PRUH WKDQ  JUDPV RI FRQIHUHQFH &RORQ GLG QRW UHTXHVW RU SURSRVH D OHVVHU FRFDLQH6LPSOHSRVVHVVLRQKDVDUHTXLUHGHOHPHQWWKDWQHHG LQFOXGHGRIIHQVH MXU\ LQVWUXFWLRQ  7KH ILQDO FKDUJH QRWEHSURYHQWREHFRQYLFWHGRIWKHFRQVSLUDF\FKDUJH7KDW FRQIHUHQFHZDVKHOGDWQRRQRQ6HSWHPEHU SULRUWR HOHPHQWLVRQHRImSRVVHVVLRQl WKHSUHVHQWDWLRQRIWKHGHIHQVHjVFDVH$JDLQGHIHQVHFRXQVHO GLGQRWUHTXHVWDOHVVHULQFOXGHGRIIHQVHLQVWUXFWLRQ &RORQIRFXVHVKLVDUJXPHQWRQWKHSRVVHVVLRQDVSHFWRIWKH FKDUJH DQG IDLOV WR DFNQRZOHGJH WKDW WKH FKDUJH LV QRW $W WKH FRQFOXVLRQ RI DOO WHVWLPRQ\ EXW SULRU WR FORVLQJ SRVVHVVLRQZLWKLQWHQWWRGLVWULEXWHEXWLQVWHDGFRQVSLUDF\WR DUJXPHQWVRQ6HSWHPEHU GHIHQVHFRXQVHOIRUWKH GLVWULEXWHDQGSRVVHVVZLWKLQWHQWWRGLVWULEXWHRUVWDWHGPRUH  8QLWHG6WDWHVY&RORQ 1R 1R 8QLWHG6WDWHVY&RORQ

+RZHYHUHYHQLIZHZHUHWRILQGWKDW'HIHQGDQWKDGPDGH ILUVW WLPH RUDOO\ UHTXHVWHG D MXU\ LQVWUXFWLRQ IRU D OHVVHU DmSURSHUUHTXHVWlDVGLVFXVVHGEHORZ'HIHQGDQWVWLOOZRXOG LQFOXGHGRIIHQVHRIVLPSOHSRVVHVVLRQ7KHFRXUWGHQLHGWKDW QRW EH HQWLWOHG WR WKH UHOLHI UHTXHVWHG EHFDXVH KH FDQQRW UHTXHVW$FFRUGLQJO\ZKHQWKHMXU\ZDVFKDUJHGIROORZLQJ HVWDEOLVKWKDWWKHHOHPHQWVRIWKHOHVVHURIIHQVHDUHLGHQWLFDO FORVLQJDUJXPHQWVQROHVVHULQFOXGHGRIIHQVHLQVWUXFWLRQZDV WRSDUWRIWKHHOHPHQWVRIHLWKHURIWKHJUHDWHURIIHQVHVZLWK JLYHQ ZKLFKKHZDVFKDUJHG 7KHMXU\XOWLPDWHO\UHWXUQHGDYHUGLFWILQGLQJ'HIHQGDQW  7KH(OHPHQWVRI6LPSOH3RVVHVVLRQ$UH1RW,GHQWLFDO &RORQJXLOW\RQ&RXQW FRQVSLUDF\WRGLVWULEXWHDQGSRVVHVV WR3DUWRIWKH(OHPHQWVRIWKH&ULPHV&KDUJHG ZLWKLQWHQWWRGLVWULEXWHFRFDLQH DQG&RXQW GLVWULEXWLRQRI FRFDLQH   &RORQ KRZHYHU ZDV DFTXLWWHG RI &RXQW  ,Q RUGHU WR GHWHUPLQH ZKHWKHU &RORQ ZDV HQWLWOHG WR DQ DWWHPSWHGGLVWULEXWLRQRIFRFDLQH  LQVWUXFWLRQ RQ D OHVVHULQFOXGHGRIIHQVH UHTXLUHV D GHWHUPLQDWLRQRIZKHWKHUWKHHOHPHQWVRIWKHOHVVHURIIHQVH &RORQ ZDV VXEVHTXHQWO\ VHQWHQFHG WR  PRQWKV DUHLGHQWLFDOWRVRPHRIWKHHOHPHQWVRIWKHJUHDWHURIIHQVH LQFDUFHUDWLRQ WR EH IROORZHG E\ D ILYH\HDU SHULRG RI 8QLWHG 6WDWHV Y 0RQJHU VXSUD  7KXV LQ WKLV FDVH WKH VXSHUYLVHG UHOHDVH &RORQ QRZ DSSHDOV KLV FRQYLFWLRQ DQG TXHVWLRQ LV ZKHWKHU WKH HOHPHQWV RI VLPSOH SRVVHVVLRQ DUH VHQWHQFHDUJXLQJWKDWWKH'LVWULFW&RXUWHUUHGLQGHQ\LQJKLV LGHQWLFDOWRDQ\RIWKHHOHPHQWVRIFRQVSLUDF\WRGLVWULEXWHDQG UHTXHVW IRU D OHVVHULQFOXGHGRIIHQVH MXU\ LQVWUXFWLRQ RQ SRVVHVVZLWKLQWHQWWRGLVWULEXWHRYHUJUDPVRIFRFDLQH VLPSOHSRVVHVVLRQRIFRFDLQH DQGRUGLVWULEXWLRQRIPRUHWKDQJUDPVRIFRFDLQH ,,$1$/<6,6 D &RQVSLUDF\ $ 67$1'$5'2)5(9,(: $SSHOODQW &RORQ DUJXHV WKDW WKH HOHPHQWV RI VLPSOH SRVVHVVLRQDUHLGHQWLFDOWRSDUWRIWKHHOHPHQWVRIFRQVSLUDF\ 7KH'LVWULFW&RXUWjVGHFLVLRQWRGHQ\$SSHOODQWjVUHTXHVW WRGLVWULEXWHDQGSRVVHVVZLWK LQWHQWWRGLVWULEXWHRYHU IRUDOHVVHULQFOXGHGRIIHQVHMXU\LQVWUXFWLRQLVUHYLHZHGIRU JUDPVRIFRFDLQH7KH6XSUHPH&RXUWKDVLQVWUXFWHGWKDWLQ DEXVHRIGLVFUHWLRQ8QLWHG6WDWHVY8UVHU\ )G  PDNLQJWKHGHWHUPLQDWLRQRIZKHWKHUWKHUHLVDQLGHQWLW\RI  WK&LU   HOHPHQWV RI D OHVVHU DQG JUHDWHU RIIHQVH IRU SXUSRVHV RI GHWHUPLQLQJZKHWKHUDOHVVHULQFOXGHGRIIHQVHLQVWUXFWLRQLV % / ( 6 6 ( 5  , 1 & / 8 ' ( '  2 ) ) ( 1 6 (  s85< DSSURSULDWHFRXUWVDUHWRFRPSDUHWKHVWDWXWRU\HOHPHQWVRI ,16758&7,21 WKH RIIHQVHV LQ TXHVWLRQ  6HH 6FKPXFN Y 8QLWHG 6WDWHV VXSUD $ FULPLQDO GHIHQGDQW LV HQWLWOHG WR DQ LQVWUXFWLRQ RQ D OHVVHULQFOXGHGRIIHQVH LI    D SURSHU UHTXHVW LV PDGH 86&† D VHWVIRUWKWKHSDUDPHWHUVRIWKHFULPHRI  WKHHOHPHQWVRIWKHOHVVHURIIHQVHDUHLGHQWLFDOWRSDUWRI mVLPSOHSRVVHVVLRQl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jV RIILFH DW OHDVWVL[  EXVLQHVVGD\VEHIRUHWKHVFKHGXOHGWULDOGDWH ,GDW FLWDWLRQVRPLWWHG 6HHDOVR)HG5&ULP &RSLHVDOVRVKRXOGEHVHUYHGXSRQRSSRVLQJFRXQVHO 3UR F  SHUPLWWLQJDMXU\WRFRQYLFWDGHIHQGDQWRIDOHVVHU RIIHQVHDVORQJDVLWLVmQHFHVVDULO\LQFOXGHGLQWKHRIIHQVH > 6FKHGXOLQJ2UGHU HPSKDVLVDGGHG @ FKDUJHGl  7KXVWKH6FKHGXOLQJ2UGHUSURYLGHVDJXLGHOLQHEXWGRHV :KHUHKRZHYHUWKHOHVVHURIIHQVHUHTXLUHVDQHOHPHQWQRW QRWVWDWHWKDWFRXQVHOmVKDOOlRUmPXVWl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mSURSHUlUHTXHVWIRUDOHVVHULQFOXGHGRIIHQVH LQVWUXFWLRQ DW WKH FORVH RI WHVWLPRQ\ DQG SULRU WR FORVLQJ LQVWUXFWLRQZDVHYHUPDGH

Reference

Status
Published