United States v. Bearden
United States v. Bearden
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$SSHOOHH 1R Y ! s$&. %($5'(1 'HIHQGDQW$SSHOODQW 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH(DVWHUQ'LVWULFWRI.HQWXFN\DW&RYLQJWRQ 1R nsHQQLIHU%&RIIPDQ'LVWULFWsXGJH $UJXHG $XJXVW 'HFLGHGDQG)LOHG 'HFHPEHU %HIRUH 0225(DQG&2/(&LUFXLWsXGJHV 526(1 'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8(' *DU\ s 6HUJHQW 2j+$5$ 58%(5* 7$</256/2$1 6(5*(17&RYLQJWRQ.HQWXFN\IRU $SSHOODQW&KDUOHV3:LVGRPsU$66,67$1781,7('
7KH +RQRUDEOH *HUDOG ( 5RVHQ 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ
8QLWHG6WDWHVY%HDUGHQ 1R
67$7(6$77251(</H[LQJWRQ.HQWXFN\IRU$SSHOOHH 21 %5,() *DU\ s 6HUJHQW 2j+$5$ 58%(5* 7$</256/2$1 6(5*(17&RYLQJWRQ.HQWXFN\IRU $SSHOODQW&KDUOHV3:LVGRPsU$66,67$1781,7(' 67$7(6 $77251(< /H[LQJWRQ .HQWXFN\ :HQGH & 0RUULV $66,67$17 81,7(' 67$7(6 $77251(< &RYLQJWRQ.HQWXFN\IRU$SSHOOHH 0225(sGHOLYHUHGWKHRSLQLRQRIWKHFRXUW526(1 's S GHOLYHUHGDVHSDUDWHFRQFXUULQJRSLQLRQ BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB .$5(11(/6210225(&LUFXLWsXGJH'HIHQGDQW $SSHOODQWsDFN%HDUGHQDSSHDOVKLVFRQYLFWLRQDQGVHQWHQFH RQ RQH FRXQW RI NQRZLQJO\ WUDQVSRUWLQJ LQ LQWHUVWDWH FRPPHUFH VWROHQ JRRGV ,%0 ODSWRS FRPSXWHUV KDYLQJ D YDOXHRIRUPRUH,QWKLVDSSHDO%HDUGHQUDLVHVILYH LVVXHV WKHGLVWULFWFRXUWjVUHIXVDOWRDFFHSWKLVSOHDRIQROR FRQWHQGHUH WKH GLVWULFW FRXUWjV UHIXVDO WR JUDQW GRZQZDUG GHSDUWXUHVEHFDXVHRI%HDUGHQjVDJHDQGSRRUKHDOWKDQGIRU DFFHSWDQFH RI UHVSRQVLELOLW\ WKH H[LVWHQFH RI D YDULDQFH EHWZHHQ WKH LQGLFWPHQW DQG SURRI SUHVHQWHG DW WULDO WKH FUHGLELOLW\RIDJRYHUQPHQWZLWQHVV DQGWKHSURSULHW\RIWKH GLVWULFWFRXUWjVUHVWLWXWLRQRUGHU)RUWKHIROORZLQJUHDVRQV ZH$)),50%HDUGHQjVFRQYLFWLRQDQGVHQWHQFH ,%$&.*5281' )URPODWH WKURXJK0D\RI sDFN%HDUGHQDFWHG DV D PLGGOHPDQ VHOOLQJ ODSWRS FRPSXWHUV VWROHQ IURP WKH ZDUHKRXVH RI 3RPHUR\ &RPSXWHU 5HVRXUFHV m3RPHUR\l ORFDWHGLQ+HEURQ.HQWXFN\WREX\HUVORFDWHGSULPDULO\LQ WKH&LQFLQQDWL2KLRDUHDsDPHV)LQNHQVWHDGDQHPSOR\HH RI3RPHUR\VROGVL[W\HLJKWRIWKHVWROHQODSWRSFRPSXWHUVWR 7LPRWK\0DFNH0DFNHWKHQWUDQVIHUUHGIRUW\HLJKWRIWKHVH FRPSXWHUVWRsDFN%HDUGHQjVVRQ7HUU\%HDUGHQ m7HUU\l ZKRDJUHHGWRGLYLGHWKHSURFHHGVRIWKHFRPSXWHUVjVDOHZLWK 8QLWHG6WDWHVY%HDUGHQ 1R 1R 8QLWHG6WDWHVY%HDUGHQ
BBBBBBBBBBBBBBBBBBBBB 0DFNH 7HUU\ WKHQ DSSURDFKHG KLV IDWKHU DERXW WKH FRPSXWHUV %HDUGHQDJUHHGWRVHOOWKHFRPSXWHUVDQGGLYLGH &21&855(1&( KLVSURFHHGVZLWK7HUU\%HDUGHQVROGIRUW\VL[VWROHQODSWRS BBBBBBBBBBBBBBBBBBBBB FRPSXWHUVGXULQJWKHFRXUVHRIWKLVVFKHPH%HDUGHQVROGWKH FRPSXWHUVIRUDSSUR[LPDWHO\WRHDFKDOWKRXJK 526(1'LVWULFWsXGJHFRQFXUULQJ,IXOO\FRQFXULQWKH PRVWRIWKHFRPSXWHUVZHUHYDOXHGDWDSSUR[LPDWHO\ PDMRULW\jVRSLQLRQLQDOOUHVSHFWVEXWZULWHVHSDUDWHO\RQO\WR HDFK,QWXUQPRVWRIWKHFRPSXWHUV%HDUGHQVROGZHUHWKHQ XUJHWKDWZLWKUHVSHFWWRWKHLVVXHRIWKHVFRSHRIWKH'LVWULFW UHVROGRYHUWKH,QWHUQHWE\&LQFLQQDWLDUHDSK\VLFLDQV &RXUWjVGLVFUHWLRQWRUHMHFWQRORFRQWHQGHUHSOHDVXQGHU)HG 5&ULP3 E ZHVKRXOGMRLQWKRVH&LUFXLWVZKLFKKROG $IWHUDQLQYHQWRU\RIWKH3RPHUR\ZDUHKRXVHLQGLFDWHGWKDW WKDWLWLVZLWKLQDMXGJHjVGLVFUHWLRQWRDGRSWDJHQHUDOSROLF\ FRPSXWHUVZHUHPLVVLQJDMRLQWFRXQW\SROLFHGHSDUWPHQW DJDLQVWQRORSOHDV6HHHJ8QLWHG6WDWHVY*UDWWRQ )%,LQYHVWLJDWLRQHYHQWXDOO\OHGWR%HDUGHQDQGWKHRWKHUV$ )G WK&LU 8QLWHG6WDWHVY'RUPDQ IHGHUDO JUDQG MXU\ LQ &RYLQJWRQ .HQWXFN\ UHWXUQHG DQ )G WK&LU $OWKRXJK,GRQRWKDYH LQGLFWPHQW RQ )HEUXDU\ FKDUJLQJ %HDUGHQ ZLWK VXFKDEODQNHWSROLF\LWVHHPVWRPHWKDWWKHPDQ\VRXQG LQWHUVWDWH WUDQVSRUWDWLRQ RI VWROHQ JRRGV %HDUGHQ ZDV UHDVRQVLQIDYRURIRQHnUDQJLQJIURPDMXGJHjVEHOLHIWKDW VXEVHTXHQWO\ DUUHVWHG KH SOHDGHG QRW JXLOW\ EHIRUH D VRPHRQHZKRLVXQZLOOLQJWRIXOO\FRQIHVVJXLOWVKRXOGQRWEH PDJLVWUDWH MXGJH :KHQ KH ZDV UHDUUDLJQHG EHIRUH WKH SHUPLWWHGWRSOHDGJXLOW\WRWKHYLHZWKDWE\DFFHSWLQJDQROR PDJLVWUDWH MXGJH %HDUGHQ VRXJKW WR HQWHU D SOHD RI QROR SOHDWKHFRXUWLVSODFLQJLWVLPSULPDWXUXSRQDILFWLRQLQRUGHU FRQWHQGHUHWRWKHFKDUJH7KHPDJLVWUDWHMXGJHUHFRPPHQGHG WR DVVLVW D FULPLQDO GHIHQGDQW LQ DYRLGLQJ FLYLO OLDELOLW\ n WKDWWKHGLVWULFWMXGJHDFFHSWWKHSOHDRIQRORFRQWHQGHUH2Q OHDG WR WKH FRQFOXVLRQ WKDW WKH DGRSWLRQ RI VXFK D JHQHUDO $XJXVW %HDUGHQDSSHDUHGEHIRUHWKHGLVWULFWMXGJH SROLF\LVLWVHOIZLWKLQDFRXUWjVEURDGGLVFUHWLRQXQGHU5XOH IRUVHQWHQFLQJ7KHGLVWULFWMXGJHUHIXVHGWRDFFHSW%HDUGHQjV E 7KHVH MXVWLILFDWLRQV UHPDLQ YDOLG n DQG KHQFH D QRORSOHDKRZHYHUVWDWLQJm,ZLOOQRWWDNHDQRORSOHD<RX FRXUWjV GLVFUHWLRQDU\ DXWKRULW\ LV XQGLPLQLVKHG n HYHQ LQ PD\ SOHDG JXLOW\ DQG , ZLOO VHQWHQFH <RX PD\ SOHDG QRW WKRVHFDVHVLQZKLFKWKHJRYHUQPHQWGRHVQRWREMHFWWRDQROR JXLOW\DQGZHjOOJRWRWULDO%XW,MXVWGRQjWWDNHQRORSOHDVl SOHD sRLQW $SSHQGL[ s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
7KHVHQWHQFLQJKHDULQJZDVKHOGEHIRUHWKHGLVWULFWMXGJH MXU\ EH\RQG D UHDVRQDEOH GRXEW %HDUGHQ LV QRW FOHDU RQsDQXDU\%HDUGHQPRYHGIRUGRZQZDUGGHSDUWXUHV KRZHYHU ZKLFK mVWDWXWRU\ PD[LPXPl KH FRQWHQGV ZDV IRUERWKKLVDJHDQGSRRUKHDOWKSXUVXDQWWR866HQWHQFLQJ H[FHHGHGE\WKHUHVWLWXWLRQRUGHU6HFWLRQ$ E % RI *XLGHOLQHV 0DQXDO 866* + DQG KLV 7LWOHDXWKRUL]HVWKHGLVWULFWFRXUWWRLPSRVHDUHVWLWXWLRQ SD\PHQW RI UHVWLWXWLRQ LQ WKH DPRXQW RI WR RUGHUIRUmDQDPRXQWHTXDOWRWKHJUHDWHURIWKHYDOXHRIWKH 3RPHUR\jVLQVXUDQFHFRPSDQ\&1$SXUVXDQWWR866* SURSHUW\ RQ WKH GDWH RI ORVV RU WKH YDOXH RI WKH .7KHGLVWULFWMXGJHUHMHFWHGWKHGRZQZDUGGHSDUWXUH SURSHUW\ RQ WKH GDWH RI VHQWHQFLQJl 6HH DOVR 86& IRU%HDUGHQjVSRRUKHDOWKUHDVRQLQJWKDWVXFKDGHSDUWXUHLV I $ m,QHDFKRUGHURIUHVWLWXWLRQWKHFRXUWVKDOO mGLVIDYRUHGl DQG WKDW %HDUGHQjV KHDOWK SUREOHPV FRXOG EH RUGHU UHVWLWXWLRQ WR HDFK YLFWLP LQ WKH IXOO DPRXQW RI HDFK DGHTXDWHO\KDQGOHGE\WKH%XUHDXRI3ULVRQVs$DW YLFWLPjVORVVHVDVGHWHUPLQHGE\WKHFRXUWl HPSKDVLV %HDUGHQLVLQKLVODWHVL[WLHVDQGVXIIHUVIURPDQXPEHURI DGGHG %HDUGHQZDVRUGHUHGWRSD\UHVWLWXWLRQLQDQDPRXQW KHDOWKSUREOHPVLQFOXGLQJDKHDUWFRQGLWLRQDQGDIURQWDOOREH HTXDO WR WKH YDOXH RI WKH VWROHQ ODSWRS FRPSXWHUV DV LPSDLUPHQW FDOFXODWHG E\ WKH GLVWULFW FRXUW 7KLV ILJXUH WKXV GRHV QRW H[FHHG WKH mVWDWXWRU\ PD[LPXPl IRXQG LQ WKH UHVWLWXWLRQ 7KHEDVLVRIWKHGRZQZDUG GHSDUWXUHXQGHU.IRU VWDWXWHV$FFRUG8QLWHG6WDWHVY%HKUPDQ)G SD\PHQWRISDUWLDOUHVWLWXWLRQZDVGLVFXVVHGDWVRPHOHQJWKLQ WK&LU KROGLQJWKDW$mLVLQWKLVUHVSHFW WKH VHQWHQFLQJ KHDULQJ %HDUGHQjV FRXQVHO DUJXHG WKDW OLNHDVWDWXWHWKDWSHUPLWVWKHMXGJHWRLPSRVHDQ\WHUPRI %HDUGHQ VKRXOG UHFHLYH D GRZQZDUG GHSDUWXUH EHFDXVH \HDUV XS WR OLIH LQ SULVRQl DQG WKXV LV QRW JRYHUQHG E\ %HDUGHQKDGSDLGLQUHVWLWXWLRQWR&1$3RPHUR\jV $SSUHQGL 0RUHRYHU%HDUGHQZDVSRWHQWLDOO\VXEMHFWWRILQH LQVXUHU $V D UHVXOW RI WKLV SD\PHQW &1$ KDG UHOHDVHG RIXSWRSXUVXDQWWR86&+LVDFWXDO %HDUGHQIURPDOOIXUWKHUFODLPVDQGOLDELOLW\IRU3RPHUR\jV ILQHZDVVHWDW6HHs$DW sXGJPHQW 7KXVHYHQ ORVVHVRQsDQXDU\%HDUGHQjVFRXQVHODUJXHGWKDW LIWKHUHVWLWXWLRQRUGHUZHUHWREHFRQVLGHUHGDVDILQHIRUWKH WKLVSD\PHQWVKRXOGEHFRQVLGHUHGXQGHU866*.DV VSHFLILF RIIHQVH RI ZKLFK %HDUGHQ ZDV FRQYLFWHG WKH D PLWLJDWLQJ FLUFXPVWDQFH QRW DGHTXDWHO\ WDNHQ LQWR UHVWLWXWLRQ LPSRVHG GLG QRW H[FHHG WKH UHOHYDQW VWDWXWRU\ FRQVLGHUDWLRQ E\ WKH 6HQWHQFLQJ *XLGHOLQHV 7KH GLVWULFW PD[LPXP FRXUWUHMHFWHG%HDUGHQjVUHTXHVWIRUDGRZQZDUGGHSDUWXUH EDVHG RQ WKLV SURYLVLRQ KRZHYHU DV WKH SD\PHQW RI ,,,&21&/86,21 UHVWLWXWLRQLVDGHTXDWHO\WDNHQLQWRDFFRXQWLQWKHDGMXVWPHQW IRU DFFHSWDQFH RI UHVSRQVLELOLW\ 866* ( 7KH )RU WKH IRUHJRLQJ UHDVRQV %HDUGHQjV FRQYLFWLRQ DQG GLVWULFWFRXUWGHWHUPLQHGWKDW%HDUGHQVKRXOGQRWUHFHLYHWKH VHQWHQFHDUH$)),50(' EHQHILWRIDGHSDUWXUHIRUDFFHSWDQFHRIUHVSRQVLELOLW\EHFDXVH KHKDGSXWWKHJRYHUQPHQWWRLWVSURRILQWU\LQJKLPDQGKDG RQO\ UHDFKHG WKLV VHWWOHPHQW ZLWK &1$ DIWHU KLV WULDO 0RUHRYHU %HDUGHQ KDG mQHYHU DGPLWWHG >WR@ NQRZLQJ WKDW >WKHFRPSXWHUV@ZHUHVWROHQRUHYHQVXVSHFWLQJWKDWWKH\ZHUH VWROHQls$DW &RLQFLGHQWDOO\ WKH 6HYHQWK &LUFXLW UHFHQWO\ UHMHFWHG D VLPLODU DUJXPHQW E\ KROGLQJ WKDW UHVWLWXWLRQ LV QRW LQ IDFW D mSHQDOW\ IRU D FULPHl 7KH GLVWULFW MXGJH VHQWHQFHG %HDUGHQ WR WZHQW\IRXU EXW UDWKHU D FLYLO UHPHG\ LPSRVHG VLPXOWDQHRXVO\ ZLWK WKH FULPLQDO PRQWKVjLPSULVRQPHQWWKUHH\HDUVRIVXSHUYLVHGUHOHDVHDQG SHQDOW\ 6HH 8QLWHG 6WDWHV Y %HKUPDQ )G WK &LU D ILQH RI DQG RUGHUHG KLP WR SD\ LQ 6XFK UHDVRQLQJ LV FOHDUO\ DW RGGV ZLWK WKH FDVH ODZ LQ RWKHU FLUFXLWV WKDW KROGV WKDW UHVWLWXWLRQ LV DW OHDVW LQ SDUW SXQLVKPHQW 8QLWHG6WDWHVY%HDUGHQ 1R 1R 8QLWHG6WDWHVY%HDUGHQ
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jV1ROR3OHD YDOXHGDW,KDYHQRFRQWUDU\SURRI$QGWKDWLV ZKDW,ZRXOGDFFHSW,DFFHSWWKDWEHFDXVHDFFRUGLQJWR 7KHILUVWTXHVWLRQUDLVHGRQDSSHDOE\%HDUGHQLVZKHWKHU WKHWHVWLPRQ\ZKLFK,KHDUG>@'RFWRU%XNKDULVROGRI WKHGLVWULFWFRXUWDEXVHGLWVGLVFUHWLRQLQUHIXVLQJWRDFFHSWKLV WKHFRPSXWHUVnERXJKW'RFWRU%DUUHUHRQH'RFWRU QROR FRQWHQGHUH SOHD 7KH H[WHQW RI D GLVWULFW FRXUWjV /RUHQFWZR0U&UDZIRUGILYHRUVL[DQG0U3DUODWR GLVFUHWLRQLQFRQVLGHULQJZKHWKHUWRDFFHSWDSURIIHUHGSOHDRI RQH QRORFRQWHQGHUHXQGHU)HG5&ULP3 E LVDQLVVXHRI 7KDWLV D WRWDORIRU,ZLOOWDNHWKHORZHURI ILUVWLPSUHVVLRQLQWKLVFLUFXLW5XOH E FOHDUO\LQGLFDWHV WKRVHQXPEHUV7KDWYHULILHVWKH WKDWDFULPLQDOGHIHQGDQWKDVQRDEVROXWHULJKWWRSOHDGQROR 7KH GHIHQGDQW KDV QRW GLVSXWHG WKH PDWK WKH FRQWHQGHUHEXWLQVWHDGmPD\SOHDGQRORFRQWHQGHUHRQO\ZLWK PXOWLSOLFDWLRQ DW OHDVW 7KDW FRPHV XS WR WKH WKHFRQVHQWRIWKHFRXUWl7KHFLUFXLWVWKDWKDYHFRQVLGHUHG $QG WKDW LV WKH DPRXQW IRU ZKLFK WKH WKLVLVVXHKDYHJHQHUDOO\KHOGWKDWDGLVWULFWFRXUWSRVVHVVHV GHIHQGDQWZLOOEHKHOGUHVSRQVLEOH ZLGHGLVFUHWLRQZKHWKHUWRDFFHSWDSOHDRIQRORFRQWHQGHUH 6HHHJ8QLWHG6WDWHVY&HSHGD3HQHV)G s$DW%HDUGHQKDVQRWPDGHDQ\VSHFLILFDUJXPHQWV VW&LU m>$@FFHSWDQFHRIDQRORSOHDLVVROHO\DPDWWHU FDOOLQJLQWRTXHVWLRQWKLVDPRXQWDQGWKXVWKHEDVLVRIKLV RI JUDFH l 8QLWHG 6WDWHV Y *UDWWRQ )G FODLPRIH[FHVVLYHQHVVLVQRWFOHDU:LWKRXWPRUHZHFDQQRW WK&LU m>,@WVHHPVDWOHDVWDUJXDEOHWKDWWKH FRQFOXGHWKDWWKHGLVWULFWFRXUWDEXVHGLWVGLVFUHWLRQLQVHWWLQJ DFFHSWDQFHRIDQRORSOHDLVVREURDGO\DPDWWHURIGLVFUHWLRQ WKLVDPRXQW WKDWDMXGJHjVDGRSWLRQRIDSROLF\DJDLQVWVXFKDSOHDLVLWVHOI ZLWKLQ>WKHMXGJHjV@GLVFUHWLRQl 8QLWHG6WDWHVY'RUPDQ 6HFRQG%HDUGHQDSSDUHQWO\WDNHVLVVXHZLWKWKH H )G WK &LU ILQGLQJ mQR DEXVH RI SUHSRQGHUDQFHRIWKHHYLGHQFHVWDQGDUGLWVHOI%HDUGHQQRZ GLVFUHWLRQlLQWKHGLVWULFWMXGJHjVJHQHUDOSROLF\DJDLQVWQROR DUJXHVWKDWWKHGLVWULFWFRXUWjVUHVWLWXWLRQRUGHUFRQIOLFWVZLWK SOHDV H[FHSW LQ WD[ HYDVLRQ FDVHV 6HH DOVR &KDUOHV $ODQ $SSUHQGLY1HZsHUVH\86 EHFDXVH :ULJKW$)HGHUDO3UDFWLFH 3URFHGXUHDW G LWHIIHFWLYHO\mLQFUHDVHVWKHSHQDOW\IRUDFULPHEH\RQGWKH HG m>,@W LVZKROO\XQOLNHO\WKDWUHIXVDOWRDFFHSW>D SUHVFULEHGVWDWXWRU\PD[LPXPlZLWKRXWWKHIDFWRUVXVHGWR QROR FRQWHQGHUH@ SOHD ZRXOG EH UHJDUGHG DV HUURU RQ FDOFXODWHWKHDPRXQWRIUHVWLWXWLRQKDYLQJEHHQIRXQGE\D DSSHDOl %HDUGHQDUJXHVKRZHYHUWKDWWKHGLVWULFWFRXUWDEXVHGLWV GLVFUHWLRQE\UHMHFWLQJKLVQRORSOHDEDVHGRQDJHQHUDOSROLF\ DJDLQVW DFFHSWLQJ VXFK SOHDV +H DUJXHV WKDW 5XOH E UHTXLUHV DQ LQGLYLGXDOL]HG DVVHVVPHQW RI WKH PHULWV RI D 8QLWHG6WDWHVY%HDUGHQ 1R 1R 8QLWHG6WDWHVY%HDUGHQ
SDUWLFXODU GHIHQGDQWjV SURIIHUHG QROR SOHD EHIRUH D GLVWULFW UDWKHU WKDQ FRPSHQVDWRU\ LQ QDWXUH m$OWKRXJK UHVWLWXWLRQ FRXUW FDQ UHMHFW LW 7KH FRQWUDU\ SRVLWLRQ KRZHYHU LV GRHVUHVHPEOHDMXGJPHQWµIRUWKHEHQHILWRIjWKHYLFWLPWKH VXJJHVWHGE\WKHOLWHUDOODQJXDJHRI5XOH E ZKLFKVWDWHV FRQWH[WLQZKLFKLWLVLPSRVHGXQGHUPLQHVWKDWFRQFOXVLRQ LQUHOHYDQWSDUWm>V@XFKDSOHDVKDOOEHDFFHSWHGE\WKHFRXUW 7KH YLFWLP KDV QR FRQWURO RYHU WKH DPRXQW RI UHVWLWXWLRQ RQO\DIWHUGXHFRQVLGHUDWLRQRIWKHYLHZVRIWKHSDUWLHVDQGWKH DZDUGHGRURYHUWKHGHFLVLRQWRDZDUGUHVWLWXWLRQl,GDW LQWHUHVWRIWKHSXEOLFLQWKHHIIHFWLYHDGPLQLVWUDWLRQRIMXVWLFHl 6HH DOVR HJ 6KHLQEDXP )G DW 7KXV SULYDWH HPSKDVHVDGGHG 5HDGOLWHUDOO\WKHQWKHUXOHZRXOGDSSHDU LQGLYLGXDOVVKRXOGQRWEHDOORZHGWRWKZDUWWKHSHQDOJRDOVRI WRJUDQWGLVWULFWFRXUWVDQDEVROXWHnHYHQDUELWUDU\nULJKW WKH FULPLQDO MXVWLFH V\VWHP E\ HQWHULQJ LQWR UHOHDVHV RU WR UHMHFW QROR SOHDV EXW RQO\ D OLPLWHG GLVFUHWLRQ WR DFFHSW VHWWOHPHQWVZLWKZURQJGRHUVm3ULYDWHSDUWLHVFDQQRWVLPSO\ WKHP DJUHHWRZDLYHWKHDSSOLFDWLRQRIDFULPLQDOVWDWXWH>7@KH ODZZLOOQRWWROHUDWHSULYDWHO\QHJRWLDWHGHQGUXQVDURXQGWKH :HUHMHFWWKLVLQWHUSUHWDWLRQRI5XOH E EHFDXVHZHDUH FULPLQDOMXVWLFHV\VWHPl6DYRLH )GDW FLWDWLRQV UHOXFWDQW WR FRQFOXGH WKDW WKHUH LV QR SRVVLEOH VHW RI RPLWWHG FLUFXPVWDQFHV LQ ZKLFK D GLVWULFW FRXUW ZRXOG DEXVH LWV GLVFUHWLRQLQUHIXVLQJWRDFFHSWDQRORSOHDEDVHGRQDJHQHUDO :HQRZDGRSWWKHUXOHWKDWDSULYDWHVHWWOHPHQWEHWZHHQD SROLF\:HFRQFOXGHKRZHYHUWKDWWKHSUHVHQWFDVHGRHVQRW FULPLQDOZURQJGRHUDQGKLVYLFWLPUHOHDVLQJWKHZURQJGRHU SUHVHQWVXFKDVHWRIFLUFXPVWDQFHV%HDUGHQKDVQRWRIIHUHG IURPIXUWKHUOLDELOLW\GRHVQRWSUHFOXGHDGLVWULFWFRXUWIURP DFRPSHOOLQJUHDVRQ IRUKLVRIIHUWRSOHDGQRORFRQWHQGHUH LPSRVLQJDUHVWLWXWLRQRUGHUIRUWKHVDPHXQGHUO\LQJZURQJ UDWKHUWKDQJXLOW\RWKHUWKDQKLVLPSODXVLEOHFODLPWKDWKHGLG ,Q WKLV FDVH %HDUGHQ ZRXOG KDYH KLV SD\PHQW RI QRWNQRZWKDWWKHODSWRSFRPSXWHUVDWLVVXHLQWKHFDVHZHUH HUDVHWKHUHVWRIWKH UHVWLWXWLRQ LPSRVHG$VWKH VWROHQ$GLIIHUHQWFRQFOXVLRQPLJKWEHUHTXLUHGZKHUHWKH 6XSUHPH&RXUWLQGLFDWHGLQ.HOO\WKHSXUSRVHVRIFULPLQDO GHIHQGDQWFRXOGVKRZDPRUHFRPSHOOLQJUHDVRQIRUSOHDGLQJ UHVWLWXWLRQ LQFOXGH SXQLVKPHQW ,W ZRXOG EH LPSURSHU WR QRORFRQWHQGHUHEXWZHOHDYHWKDWSRVVLELOLW\IRUDQRWKHUGD\ SHUPLW SULYDWH SDUWLHV WR UHOHDVH FULPLQDO ZURQJGRHUV IURP 0RUHRYHUWKHJRYHUQPHQWREMHFWHGWRWKHSURIIHUHGQRORSOHD SXQLVKPHQW 7KXV XQGHU RXU KROGLQJ WRGD\ %HDUGHQ VWLOO LQWKHSUHVHQWFDVHDQGWKHGLVWULFWFRXUWZRXOGKDYHEHHQ RZHV&1$ LQUHVWLWXWLRQ ZLWKLQLWVGLVFUHWLRQKDGLWUHMHFWHG%HDUGHQjVQRORSOHDRQ WKDWEDVLV6HH8QLWHG6WDWHVY'DYLG(7KRPSVRQ,QF 0RUHRYHU WR SHUPLW FULPLQDO ZURQJGRHUV WR VHHN )G VW &LU m:H NQRZ RI QR FDVH LQ VHWWOHPHQWV ZLWK WKHLU YLFWLPV ZRXOG XQIDLUO\ DGYDQWDJH ZKLFKDQDSSHDOVFRXUWUHYHUVHGDGLVWULFWFRXUWjVUHIXVDOWR ZURQJGRHUVZLWKPHDQVRYHUWKHLUOHVVDIIOXHQWFRXQWHUSDUWV DFFHSWDSOHDRIQRORQRWVXSSRUWHGE\WKHSURVHFXWLRQl ,Q ,Q WKLV FDVH IRU H[DPSOH %HDUGHQ ZDV DEOH WR UDLVH WKH WKHVH FLUFXPVWDQFHV WKH GLVWULFW FRXUW GLG QRW DEXVH LWV WKDW KH SDLG LQ VHWWOHPHQW WR &1$ WKURXJK D ORDQ GLVFUHWLRQLQUHIXVLQJWRDFFHSW%HDUGHQjVSURIIHUHGQRORSOHD VHFXUHGE\KLVKRXVH7KURXJKUDLVLQJWKHVHIXQGV%HDUGHQ SURSRVHV WR HVFDSH SD\LQJ WKH UHPDLQGHU RI WKH UHVWLWXWLRQ %HDUGHQ KDV DOVR UDLVHG D GRXEOH MHRSDUG\ LVVXH ZLWK DPRXQWDQLPSRUWDQWDVSHFWRIKLVVHQWHQFH$OHVVDIIOXHQW UHVSHFWWRKLVUHMHFWHG QRORFRQWHQGHUHSOHD$VGHVFULEHG ZURQJGRHURQWKHRWKHUKDQGZRXOGVXIIHUWKHIXOOEUXQWRI VXSUD WKH GLVWULFW FRXUW LQ WKLV FDVH GHOHJDWHG WKH FRXUWRUGHUHGUHVWLWXWLRQ UHVSRQVLELOLW\ IRU LQLWLDOO\ WDNLQJ %HDUGHQjV SOHD WR WKH PDJLVWUDWHMXGJHXQGHU86& E 7KHPDJLVWUDWH ,QSDVVLQJ%HDUGHQUDLVHVWZRRWKHULVVXHVUHJDUGLQJWKH MXGJH DFFHSWHG %HDUGHQjV QROR FRQWHQGHUH SOHD GXULQJ WKH UHVWLWXWLRQRUGHU)LUVW%HDUGHQDVVHUWVWKDWWKHUHVWLWXWLRQ VHFRQG DUUDLJQPHQW DQG DV D UHVXOW %HDUGHQ DUJXHV WKDW RUGHUZDVH[FHVVLYH7KHGLVWULFWFRXUWjVUHVWLWXWLRQRUGHUZDV 8QLWHG6WDWHVY%HDUGHQ 1R 1R 8QLWHG6WDWHVY%HDUGHQ
E\&1$SUHFOXGHGWKHGLVWULFWFRXUWIURPRUGHULQJFULPLQDO MHRSDUG\ DWWDFKHG DW WKDW SRLQW 7KXV KH DUJXHV WKH UHVWLWXWLRQ :H KDYH QRW SUHYLRXVO\ GHFLGHG ZKHWKHU D JRYHUQPHQWZDVSUHFOXGHGIURPODWHUWU\LQJKLPRQWKHVDPH VHWWOHPHQW RU UHOHDVH H[HFXWHG E\ WKH YLFWLP RI D FULPH FKDUJH SUHYHQWVDVHQWHQFLQJFRXUWIURPRUGHULQJUHVWLWXWLRQ7KH RWKHUFLUFXLWVKRZHYHUKDYHJHQHUDOO\KHOGWKDWmDUHOHDVHE\ 7KLV DUJXPHQW LV EDVHG RQ WKH SURSRVLWLRQ WKDW MHRSDUG\ WKHYLFWLPGRHVQRWSUHFOXGHRUFDSUHVWLWXWLRQRIORVVHVDV JHQHUDOO\ DWWDFKHV ZKHQ WKH GLVWULFW FRXUW DFFHSWV D JXLOW\ SDUWRIFULPLQDOVHQWHQFLQJLQDFDVHZKHUHWKHUHLVQRGRXEOH SOHD6HH8QLWHG6WDWHVY8UVHU\ )G WK&LU UHFRYHU\l8QLWHG6WDWHVY3DUVRQV)G VW m>s@HRSDUG\DWWDFKHVWRDJXLOW\SOHDSXUVXDQWWRDSOHD &LU FLWLQJ8QLWHG6WDWHVY6DYRLH )G DJUHHPHQW XSRQ WKH FRXUWjV DFFHSWDQFH RI WKH SOHD VW&LU VHHDOVR8QLWHG6WDWHVY6KHLQEDXP DJUHHPHQWl UHYjGRQRWKHUJURXQGV86 )G WK&LU FRQFOXGLQJmWKDWGLVWULFWFRXUWV VHH DOVR 8QLWHG 6WDWHV Y $OLRWWD )G G &LU SRVVHVVWKHGLVFUHWLRQWRLPSRVHUHVWLWXWLRQRUGHUVLQVSLWHRI m$VDJHQHUDOUXOHMHRSDUG\DWWDFKHVLQDFULPLQDOFDVH FLYLO VHWWOHPHQWVl EHFDXVH RI mWKH UHKDELOLWDWLYH DQG DW WKHWLPHWKHGLVWULFWFRXUWDFFHSWVWKHGHIHQGDQWjVJXLOW\ UHWULEXWLYHIXQFWLRQVlRIUHVWLWXWLRQ FHUWGHQLHG86 SOHDl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jV QROR SOHD UHVWLWXWLRQRUGHURQWKHVDPHFODLP 8QLWHG6WDWHVY&ORXG DIWHUWKHPDJLVWUDWHMXGJHDFFHSWHGLW%HFDXVHZHFRQFOXGH )G WK &LU m>'@HVSLWH WKH H[LVWHQFH RI WKDWWKHGLVWULFWFRXUWUHWDLQHGWKLVXOWLPDWHSRZHURIUHYLHZ VHWWOHPHQW DJUHHPHQWV DPRQJ WKH SDUWLHV WKH GLVWULFW FRXUW ZHKROGWKDWMHRSDUG\FRXOGQRWDWWDFKXQWLOWKHGLVWULFWFRXUW ZDVDXWKRUL]HGWRRUGHU&ORXGWRSD\UHVWLWXWLRQWRWKH DFFHSWHGWKHSOHD LQVXUDQFHFRPSDQ\LQWKLVFDVHl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m095$l RI 3XE / 1R LPSOLFDWH $UWLFOH ,,, FRQFHUQV m>E@HFDXVH WKH GLVWULFW FRXUW 6WDW $SULO DQG WKXV PDQGDWRU\ UHVWLWXWLRQ ZDV UHTXLUHG IRU WKLV mRIIHQVH DJDLQVW SURSHUW\l $00 $ F $ LL UHPDLQV LQ FRQWURO RI WKH SURFHHGLQJ DQG WKH PDWWHU LV 800 DOVR 9DQGHEHUJ )G DW QRWLQJ WKDW GHIHQGDQW FRQYLFWHG RI UHSRUWHGWRWKDWFRXUWIRULWVDSSURYDOl,GDW6HHDOVR LQWHUVWDWH WUDQVSRUWDWLRQ RI VWROHQ JRRGV ZDV SURSHUO\ VHQWHQFHG XQGHU WKH 8QLWHG 6WDWHV Y 'HHV )G WK &LU 095$ 8QLWHG6WDWHVY%HDUGHQ 1R 1R 8QLWHG6WDWHVY%HDUGHQ
m7KHWDNLQJRIDSOHDE\DPDJLVWUDWHMXGJHGRHVQRWELQGWKH JRYHUQPHQW QHYHU RIIHUHG DQ\ ODSWRS FRPSXWHUV LQWR GLVWULFWFRXUWWRDFFHSWWKDWSOHD5DWKHUWKH GLVWULFWFRXUW HYLGHQFH UHWDLQVXOWLPDWHFRQWURORYHUWKHSOHDSURFHHGLQJVZKLFKDUH VXEPLWWHG WR WKH FRXUW IRU LWV DSSURYDO 0RUHRYHU GLVWULFW %HDUGHQjV LQVXIILFLHQF\ RI WKH HYLGHQFH DUJXPHQW LV FRXUWV UHYLHZ SOHD SURFHHGLQJV RQ DGH QRYR EDVLV l ZLWKRXWPHULW:KHQWKHHYLGHQFHLVYLHZHGLQWKHOLJKWPRVW FLWDWLRQRPLWWHG FHUWGHQLHG86 IDYRUDEOHWRWKHSURVHFXWLRQDQGDOOLQIHUHQFHVDUHGUDZQLQ WKH JRYHUQPHQWjV IDYRU D UDWLRQDO WULHU RI IDFW FRXOG KDYH %HDUGHQ DUJXHV KRZHYHU WKDW WKH OLPLWDWLRQ RQ WKH IRXQG WKH HOHPHQWV RI WKH FKDUJHG RIIHQVH EH\RQG D GHIHQGDQWj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jVVHQWHQFLQJKHDULQJ7KH ( 7KH'LVWULFW&RXUWjV5HVWLWXWLRQ2UGHU:DV3URSHU GLVWULFWFRXUWUHIXVHGWRDOORZWKHGHIHQGDQWWRZLWKGUDZWKH 1RW ([FHVVLYH DQG 'RHV 1RW 3UHVHQW DQ $SSUHQGL SOHD,QFRQVLGHULQJWKLVLVVXHRQDSSHDOWKH6HFRQG&LUFXLW 3UREOHP UHDVRQHGWKDWm>D@GHIHQGDQWKDVQRDEVROXWHULJKWWRZLWKGUDZ KLVSOHDRIJXLOW\l:LOOLDPV)GDW,QVWHDGUHO\LQJ &1$ 3RPHUR\jV LQVXUHU UHDFKHG D VHWWOHPHQW ZLWK RQ)HG5&ULP3 H WKH6HFRQG&LUFXLWVWDWHGWKDWD %HDUGHQSULRUWRVHQWHQFLQJZKLFKUHOHDVHG%HDUGHQIURPDOO GHIHQGDQW PXVW VKRZ D mIDLU DQG MXVW UHDVRQl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jVPRWLRQWR %HDUGHQjVDUJXPHQWLVQRWH[DFWO\WKDWWKHGLVWULFWFRXUWjV ZLWKGUDZKLVJXLOW\SOHD,G$FFRUG8QLWHG6WDWHVY0DGHU UHVWLWXWLRQZDVXQODZIXOEXWUDWKHUWKDWWKHUHOHDVHH[HFXWHG )G WK&LU KROGLQJWKDWDFULPLQDO GHIHQGDQW mPXVW SURYLGH D IDLU DQG MXVW UHDVRQ WR VXSSRUW 86& M VWDWHV LQ SDUW WKDW m>L@I D YLFWLP KDV UHFHLYHG FRPSHQVDWLRQ IURP LQVXUDQFH RU DQ\ RWKHU VRXUFH ZLWK UHVSHFW WR D ORVV WKH FRXUW VKDOO RUGHU WKDW UHVWLWXWLRQ EH SDLG WR WKH SHUVRQ ZKR SURYLGHG RU ZKR LV REOLJDWHG WR SURYLGH WKH FRPSHQVDWLRQl $FFRUG 3HUHW] Y 8QLWHG 6WDWHV 86 KROGLQJ WKDW YRLU GLUH RI MXU\ PD\ EH GHOHJDWHG WR PDJLVWUDWH MXGJH ZKHUH GHIHQGDQW FRQVHQWV WR WKH GHOHJDWLRQ EHFDXVH WKH GLVWULFW FRXUW UHWDLQV WKH 5HVWLWXWLRQ ZDV SURSHU LQ WKLV FDVH SXUVXDQW WR 86& $ XOWLPDWH GHFLVLRQ RQ HPSDQHOLQJ WKH MXU\ *RPH] Y 8QLWHG 6WDWHV DQG 866* ( 7KLV SDUWLFXODU SURYLVLRQ RI WKH 6HQWHQFLQJ 86 KROGLQJ WKDW GLVWULFW FRXUWjV GHOHJDWLRQ RI YRLU *XLGHOLQHV VWDWHV WKDW m>L@Q WKH FDVH RI DQ LGHQWLILDEOH YLFWLP WKH FRXUW GLUH WR PDJLVWUDWH MXGJH LV LQFRQVLVWHQW ZLWK 86& E ZKHUH VKDOO HQWHU D UHVWLWXWLRQ RUGHU IRU WKH IXOO DPRXQW RI WKH YLFWLPjV ORVV LI GHIHQGDQW GRHV QRW FRQVHQW VXFK RUGHU LV DXWKRUL]HG XQGHUl D QXPEHU RI VWDWXWHV LQFOXGLQJ 86& 8QLWHG6WDWHVY%HDUGHQ 1R 1R 8QLWHG6WDWHVY%HDUGHQ
' 7KHUH:DV1R9DULDQFH%HWZHHQWKH,QGLFWPHQWDQG ZLWKGUDZDORIKLVJXLOW\SOHDHYHQZKHQWKDWSOHDKDVQRW\HW WKH*RYHUQPHQWjV3URRIDW7ULDO EHHQDFFHSWHGE\WKHGLVWULFWFRXUWl %HDUGHQDOVRDUJXHVWKDWWKHUHZDVDIDWDOYDULDQFHEHWZHHQ 1HLWKHU :LOOLDPV QRU RXU UHFHQW KROGLQJ LQ 0DGHU WKH WHUPV RI KLV LQGLFWPHQW DQG WKH JRYHUQPHQWjV SURRI DW KRZHYHUDGGUHVVHGZKHQMHRSDUG\DWWDFKHVLQWKHFDVHRID WULDO :H UHYLHZ GH QRYR ZKHWKHU WKHUH ZDV D YDULDQFH JXLOW\RUQRORFRQWHQGHUHSOHDWKDWKDVEHHQRIIHUHGEXWQRW EHWZHHQ WKH LQGLFWPHQW DQG WKH SURRI RIIHUHG DW WULDO 6HH \HW DFFHSWHG E\ WKH GLVWULFW FRXUW :H KROG WKDW MHRSDUG\ 8QLWHG6WDWHVY)ORZDO)G WK&LU DWWDFKHVRQO\ZKHQWKHGLVWULFWFRXUWDFFHSWVWKHGHIHQGDQWjV FHUWGHQLHG86 m$YDULDQFHRFFXUVZKHQ JXLOW\ RU QROR FRQWHQGHUH SOHD ,Q WKH SUHVHQW FDVH IRU WKHFKDUJLQJWHUPV>RIWKHLQGLFWPHQW@DUHXQFKDQJHGEXWWKH H[DPSOHWKHPDJLVWUDWHMXGJHFRXOGQRWDGMXGLFDWH%HDUGHQjV HYLGHQFHDWWULDOSURYHVIDFWVPDWHULDOO\GLIIHUHQWIURPWKRVH JXLOWRUILQDOO\DFFHSWKLVSOHD RQO\WKHGLVWULFWFRXUWFRXOGGR DOOHJHGLQWKHLQGLFWPHQWl8QLWHG6WDWHVY%DUURZ)G WKDW 7R KROG WKDW MHRSDUG\ DWWDFKHG ZKHQ WKH PDJLVWUDWH WK &LU FLWDWLRQ DQG LQWHUQDO TXRWDWLRQ MXGJHDFFHSWHG%HDUGHQjVSOHDRQWKHRWKHUKDQGZRXOGOHDG PDUNVRPLWWHG DOWHUDWLRQLQ%DUURZ WRWKHFRQFOXVLRQWKDWWKHGLVWULFWFRXUWGRHVQRWLQIDFWUHWDLQ WKHXOWLPDWHGHFLVLRQPDNLQJUHVSRQVLELOLW\UHJDUGLQJSOHDV 7KHLQGLFWPHQWLQWKLVFDVHFKDUJHG%HDUGHQZLWKYLRODWLRQ DFRQFOXVLRQWKDWZRXOGUDLVH$UWLFOH,,,FRQFHUQV6HH'HHV RI 86& NQRZLQJO\ WUDQVSRUWLQJ LQ LQWHUVWDWH )GDW KROGLQJWKDWGLVWULFWMXGJHjVSRZHUWRUHYLHZ FRPPHUFHVWROHQJRRGV ODSWRSFRPSXWHUVLQWKLVFDVH ZLWK PDJLVWUDWH MXGJHj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sHRSDUG\&ODXVHDQGMXGLFLDOHFRQRP\ SURRIRIIHUHGDWWULDO%HDUGHQZDVFRQYLFWHGEDVHGRQWKH 7KH6XSUHPH&RXUWKDVVWDWHGWKDWm>W@KH'RXEOHsHRSDUG\ WHVWLPRQ\RIWKHLQGLYLGXDOVIURPZKRPKHERXJKWWKHVWROHQ &ODXVHDIIRUGVDGHIHQGDQWWKUHHEDVLFSURWHFWLRQVl2KLR FRPSXWHUVDQGWRZKRPKHVROGWKHP YsRKQVRQ86 2XUKROGLQJWRGD\ SUHVHUYHV WKHVH WKUHH EDVLF SURWHFWLRQV LQWDFW )LUVW WKH +RZHYHU %HDUGHQ FODLPV WKDW EHFDXVH WKH JRYHUQPHQW 'RXEOH sHRSDUG\ &ODXVH mSURWHFWV DJDLQVW D VHFRQG mIDLOHGWRSUHVHQWDVLQJOHFRPSXWHUE\LQWURGXFWLRQLQWR SURVHFXWLRQIRUWKHVDPHRIIHQVHDIWHUDFTXLWWDOl,GDW HYLGHQFHlm>W@KHUHZDVDIDWDOYDULDQFHEHWZHHQWKHSURRI TXRWDWLRQRPLWWHG %HDUGHQFDQQRWFODLPWKDWKHZDVGHQLHG DQGWKHRIIHQVHFKDUJHGLQWKHLQGLFWPHQWl$SSHOODQWjV%U WKLVSURWHFWLRQEHFDXVHKHZDVQHYHUDFTXLWWHGRIWKHFKDUJHG DW%HDUGHQDVVHUWVWKDWWKHJRYHUQPHQWjVUHOLDQFHRQmWKH RIIHQVH7KHGLVPLVVDORIWKHILUVWLQGLFWPHQWLQIDYRURIWKH WHVWLPRQ\ RI UHSUHVHQWDWLYHV RI 3RPHUR\ DQG WKH VXSHUVHGLQJLQGLFWPHQWZDVQRWWKHHTXLYDOHQWRIDQDFTXLWWDO SKRWRJUDSKLF UHSUHVHQWDWLRQ RI RQH H[HPSODU FRPSXWHUl 6HFRQG WKH 'RXEOH sHRSDUG\ &ODXVH mSURWHFWV DJDLQVW D FUHDWHGWKHYDULDQFHDWLVVXH,WWKXVDSSHDUVWKDW%HDUGHQLV VHFRQGSURVHFXWLRQIRUWKHVDPHRIIHQVHDIWHUFRQYLFWLRQl,G UHDOO\FODLPLQJWKDWWKHHYLGHQFHLQWKLVFDVHZDVLQVXIILFLHQW TXRWDWLRQ RPLWWHG %HDUGHQ FDQQRW DUJXH WKDW KH ZDV WRFRQYLFWKLP7KHDUJXPHQWDSSHDUVWREHWKDWDUDWLRQDO SURVHFXWHG D VHFRQG WLPH IRU WKH VDPH RIIHQVH DIWHU WULHURIIDFWFRXOGQRWFRQFOXGHWKDW%HDUGHQZDV JXLOW\RI FRQYLFWLRQ7KHJRYHUQPHQWGLGmQRWPDNHUHSHDWHGDWWHPSWV WUDQVSRUWLQJ VWROHQ ODSWRSV LQ LQWHUVWDWH FRPPHUFH LI WKH WR FRQYLFWl %HDUGHQ mWKHUHE\ H[SRVLQJ KLP WR FRQWLQXHG 8QLWHG6WDWHVY%HDUGHQ 1R 1R 8QLWHG6WDWHVY%HDUGHQ
HPEDUUDVVPHQW DQ[LHW\ DQG H[SHQVHl ,G DW & %HDUGHQjV &KDOOHQJH WR WKH &UHGLELOLW\ RI :LWQHVV ,QVWHDG%HDUGHQZDVLQMHRSDUG\RQO\RQFHLQRQHRQJRLQJ 0DFNH,V1RW5HYLHZDEOH SURVHFXWLRQWKDWHQGHGZKHQKHZDVFRQYLFWHG6HH3ULFHY *HRUJLD 86 GLVFXVVLQJ WKH ,Q KLV PRWLRQ IRU DFTXLWWDO %HDUGHQ DUJXHG WKDW WKH mFRQWLQXLQJMHRSDUG\SULQFLSOHl 7KLUGWKH'RXEOHsHRSDUG\ WHVWLPRQ\RI0DFNHZDVSHUMXUHGEDVHGRQLQFRQVLVWHQFLHV &ODXVHmSURWHFWVDJDLQVWPXOWLSOHSXQLVKPHQWVIRUWKHVDPH EHWZHHQ SULRU VWDWHPHQWV XQGHU RDWK DQG 0DFNHjV WULDO RIIHQVHl sRKQVRQ 86 DW TXRWDWLRQ RPLWWHG WHVWLPRQ\7KHWULDOFRXUWGHQLHGWKLVPRWLRQ2QDSSHDO %HDUGHQKRZHYHUKDVEHHQSXQLVKHGRQO\RQFH %HDUGHQ DUJXHV WKDW 0DFNHjV WHVWLPRQ\ HLWKHU ODFNHG FUHGLELOLW\RUZDVSHUMXUHG :HWKXVFRQFOXGHWKDW%HDUGHQjVGRXEOHMHRSDUG\DUJXPHQW LVZLWKRXWPHULWEHFDXVHLQWKHILQDODQDO\VLVm>W@KHUHVLPSO\ :HUHYLHZWKHIDFWXDOILQGLQJVRIWKHGLVWULFWFRXUWIRUFOHDU KDVEHHQQRQHRIWKHJRYHUQPHQWDORYHUUHDFKLQJWKDWGRXEOH HUURU 8QLWHG 6WDWHV Y *HVVD )G WK &LU MHRSDUG\LVVXSSRVHGWRSUHYHQW2QWKHRWKHUKDQGHQGLQJ FHUW GHQLHG 86 +RZHYHU LQ SURVHFXWLRQQRZZRXOGGHQ\WKH>JRYHUQPHQW@LWVULJKWWRRQH UHYLHZLQJ WKH GHQLDO RI D FULPLQDO GHIHQGDQWjV PRWLRQ IRU IXOODQGIDLURSSRUWXQLW\WRFRQYLFWWKRVHZKRKDYHYLRODWHG DFTXLWWDOZHDUHSUHFOXGHGIURPLQGHSHQGHQWO\DVVHVVLQJWKH LWVODZVl,GDW FUHGLELOLW\ RI ZLWQHVVHV 6HH LG m7KH DSSHOODWH FRXUWV JHQHUDOO\ GR QRW UHYLHZ WKH GLVWULFW FRXUWjV GHWHUPLQDWLRQV % 7KH'LVWULFW&RXUWjV'HQLDORI%HDUGHQjV0RWLRQIRU UHJDUGLQJZLWQHVVFUHGLELOLW\l 8QLWHG6WDWHVY$GDPR 'RZQZDUG'HSDUWXUHV,V1RW5HYLHZDEOHRQ$SSHDO )G WK&LU FHUWGHQLHGVXEQRP)UHHPDQ Y 8QLWHG 6WDWHV 86 7R GR RWKHUZLVH %HDUGHQFKDOOHQJHVWKHGLVWULFWFRXUWjVGHQLDORIKLVPRWLRQ ZRXOGmLQYDGHWKHSURYLQFHRIWKHMXU\DVWKHVROHILQGHURI IRUGRZQZDUGGHSDUWXUHVEDVHGRQKLVKHDOWKDQGSD\PHQWRI IDFWLQDMXU\WULDOl$GDPR)GDW UHVWLWXWLRQ7KHUHFRUGLQWKLVFDVHKRZHYHUFOHDUO\LQGLFDWHV WKDWWKHGLVWULFWFRXUWZDVDZDUHRILWVGLVFUHWLRQWRPDNHWKHVH %HDUGHQjVFODLPWKDW0DFNHjVWHVWLPRQ\ODFNHGFUHGLELOLW\ GHSDUWXUHVm:HKDYHFRQVLVWHQWO\KHOGWKDWWKHGHFLVLRQE\ LVWKXVQRWUHYLHZDEOH%HDUGHQjVFRXQVHOFURVVH[DPLQHG DGLVWULFWFRXUWQRWWRGHSDUWGRZQZDUGVIURPWKH*XLGHOLQHV 0DFNHDQGUDLVHGWKHLVVXHRIKLVSOHDDUUDQJHPHQWZLWKWKH LVQRWUHYLHZDEOHRQDSSHDOXQOHVVWKHUHFRUGUHIOHFWVWKDWWKH JRYHUQPHQW%HDUGHQWKXVDWWDFNHGWKHFUHGLELOLW\RI0DFNH GLVWULFW FRXUW ZDV QRW DZDUH RI RU GLG QRW XQGHUVWDQG LWV EXWWKHMXU\QRQHWKHOHVVFUHGLWHG0DFNHjVWHVWLPRQ\:HPD\ GLVFUHWLRQWRPDNHVXFKDGHSDUWXUHl8QLWHG6WDWHVY%XWOHU QRW UHYLVLW WKDW ILQGLQJ 0RUHRYHU %HDUGHQ RIIHUV QR UHDO )G WK&LU $W%HDUGHQjVVHQWHQFLQJ HYLGHQFH IRU KLV FODLP WKDW 0DFNH FRPPLWWHG SHUMXU\ KHDULQJWKHGLVWULFWFRXUWFRQVLGHUHGWKHPHULWVRIJUDQWLQJ %HDUGHQVWDWHV VRPHZKDWFU\SWLFDOO\ WKDWm>D@WWKHYHU\OHDVW %HDUGHQGRZQZDUGGHSDUWXUHVRQDFFRXQWRIKLVKHDOWKDQG WKH GLVPLVVDO RI FKDUJHV DJDLQVW WKH SXUSRUWHG WKLHI KLVDFFHSWDQFHRIUHVSRQVLELOLW\DQGGHQLHGWKHPRWLRQ7KXV )LQNHQVWHDG E\ WKH JRYHUQPHQW UDLVHG D SUHVXPSWLRQ WKDW m>L@WVHHPVFOHDUWKDWWKHGLVWULFWFRXUWUHFRJQL]HGLWVSRZHUWR 0DFNHZDVQRWEHLQJWUXWKIXORUPLQLPL]LQJKLVRZQUROHLQ GHSDUWGRZQZDUGVEXWPHUHO\H[HUFLVHGLWVGLVFUHWLRQQRWWR WKHWKHIWVl$SSHOODQWjV%UDW :LWKRXWPRUHWRVXJJHVW GR VRl ,G DW 7KHUHIRUH %HDUGHQjV FODLP WKDW WKH SHUMXUHG WHVWLPRQ\ %HDUGHQ KDV VLPSO\ IDLOHG WR UDLVH D GLVWULFWFRXUWHUUHGLQQRWJUDQWLQJKLVPRWLRQIRUGRZQZDUG UHYLHZDEOHLVVXH GHSDUWXUHVLVQRWUHYLHZDEOHRQWKLVDSSHDO
Reference
- Status
- Published