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

*5(*25< (63$5=$ ; 3HWLWLRQHU$SSHOOHH  &URVV$SSHOODQW   1RV    Y !   %(77< 0,7&+(//:DUGHQ  5HVSRQGHQW$SSHOODQW  &URVV$SSHOOHH  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG 1R n.DWKOHHQ0F'RQDOG2j0DOOH\ 'LVWULFWsXGJH $UJXHG $XJXVW 'HFLGHGDQG)LOHG 1RYHPEHU %HIRUH 0(55,7768+5+(,15,&+DQG '$8*+75(<&LUFXLWsXGJHV BBBBBBBBBBBBBBBBB &2816(/ $5*8(' &KDUOHV/:LOOH$77251(<*(1(5$/j6 2)),&( 2) 2+,2 &$3,7$/ &5,0(6 6(&7,21 &ROXPEXV 2KLR IRU $SSHOODQW  $QJHOD :LOVRQ 0LOOHU &ROXPEXV 2KLR IRU $SSHOOHH  21 %5,()   &KDUOHV /

  (VSDU]DY$QGHUVRQ 1RV 

:LOOH $77251(< *(1(5$/j6 2)),&( 2) 2+,2 &$3,7$/ &5,0(6 6(&7,21 &ROXPEXV 2KLR IRU $SSHOODQW$QJHOD:LOVRQ0LOOHU&ROXPEXV2KLRsHIIU\) .HOOHKHU &OHYHODQG 2KLR IRU $SSHOOHH  3DXO / 1HOVRQ )('(5$/38%/,&'()(1'(562)),&(*UDQG5DSLGV 0LFKLJDQIRU$PLFXV&XULDH 0(55,77sGHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQZKLFK '$8*+75(<sMRLQHG68+5+(,15,&+s SS  GHOLYHUHGDVHSDUDWHGLVVHQWLQJRSLQLRQ BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 0(55,77 &LUFXLW s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†  RI2KLRODZHQWLWOHGm,PSRVLQJ6HQWHQFH IRU D &DSLWDO 2IIHQVHl DQ LQGLFWPHQW LQ D FDSLWDO FDVH mFKDUJLQJ DJJUDYDWHG PXUGHUl PXVW VWDWH WKH mDJJUDYDWLQJ FLUFXPVWDQFHVlWKDWPDNHWKHGHIHQGDQWHOLJLEOHIRUWKHGHDWK SHQDOW\ $ ,IWKHLQGLFWPHQWRUFRXQWLQWKHLQGLFWPHQWFKDUJLQJ DJJUDYDWHG PXUGHU GRHV QRW FRQWDLQ RQH RU PRUH VSHFLILFDWLRQVRIDJJUDYDWLQJFLUFXPVWDQFHVOLVWHGLQ 1RV  (VSDU]DY$QGHUVRQ 

GLYLVLRQ $ RI†  RIWKH5HYLVHG&RGHWKHQ IROORZLQJ D YHUGLFW RI JXLOW\ RI WKH FKDUJH RI DJJUDYDWHGPXUGHUWKHWULDOFRXUWVKDOOLPSRVH D VHQWHQFH RI OLIH LPSULVRQPHQW     (PSKDVLV DGGHG 7KH LQGLFWPHQW GLG QRW FRQWDLQ VXFK D FKDUJH  7KH QH[W VHFWLRQRIWKH2KLR&RGH†  HQWLWOHGm&ULWHULDIRU ,PSRVLQJ'HDWKlUHSHDWVWKLVUHTXLUHPHQWZKLFKLVIROORZHG E\DOLVWRIQLQHmDJJUDYDWLQJFLUFXPVWDQFHVlWKDWDOORZWKH LPSRVLWLRQRIWKHGHDWKSHQDOW\ $ ,PSRVLWLRQ RI WKH GHDWK SHQDOW\ IRU DJJUDYDWHG PXUGHU LV SUHFOXGHG XQOHVV RQH RU PRUH RI WKH IROORZLQJLVVSHFLILHGLQWKHLQGLFWPHQWRUFRXQWLQ WKHLQGLFWPHQWDQGSURYHGEH\RQGDUHDVRQDEOH GRXEW (PSKDVLVDGGHG 8QGHUVXEVHFWLRQ % RI†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†   $  m7KH RIIHQVH>RIPXUGHU@ZDVFRPPLWWHGZKLOHWKHRIIHQGHUZDV FRPPLWWLQJUREEHU\DQGZDVWKHSULQFLSDORIIHQGHU LQWKHFRPPLVVLRQRIWKHDJJUDYDWHGPXUGHUl (PSKDVLV DGGHG 7KHVH GHDWK SHQDOW\ SURYLVLRQV RI WKH 2KLR &RGH ZHUH DGRSWHGLQ LQGLUHFWUHVSRQVHWRDVHULHVRIFDVHVLQWKH  (VSDU]DY$QGHUVRQ 1RV  1RV  (VSDU]DY$QGHUVRQ 

6XSUHPH&RXUWRIWKH8QLWHG6WDWHVLQWHUSUHWLQJWKH(LJKWK $SSHDOV GHFLVLRQ ZDV FRQWUDU\ WR RU DQ XQUHDVRQDEOH $PHQGPHQW  $V PRUH IXOO\ GLVFXVVHG EHORZ WKHVH FDVHV DSSOLFDWLRQRI3UHVQHOO UHTXLUHVWDWHVWRQDUURZRUUHVWULFWWKHFODVVRIPXUGHUHUVZKR DUH VXEMHFW WR FDSLWDO SXQLVKPHQW  $ VWDWH PD\ GR VR E\ 7KLVLVDGLIILFXOWTXHVWLRQEXWWKH$('3$GLUHFWVRXUKDQG DGRSWLQJE\VWDWXWHDVHWRImDJJUDYDWLQJFLUFXPVWDQFHVlDV LQWKLVFDVH,ZRXOGUHYHUVHWKHGLVWULFWFRXUWjVSDUWLDOJUDQW 2KLR KDV GRQH  &KLHI sXVWLFH 5HKQTXLVWjV RSLQLRQ LQ RIWKHZULWRIKDEHDVFRUSXV /RZHQILHOGY3KHOSV86   FRQFLVHO\ VXPPDUL]HVWKHUHTXLUHPHQWVRIWKH(LJKWK$PHQGPHQWLQ ,DOVRREMHFWWRWKHPDMRULW\jVFRQFOXVLRQWKDWWKHUHZDVQR WKLVUHVSHFW  LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOEDVHGRQFRXQVHOjVIDLOXUHWR UHDG WKH LQGLFWPHQW VLQFH m>L@W PD\ KDYH EHHQ FRXQVHOjV 7R SDVV FRQVWLWXWLRQDO PXVWHU D FDSLWDO VHQWHQFLQJ VWUDWHJ\WROHDYHWKHHUURULQSODFHl0DM2SDW,GRQRW VFKHPH PXVW mJHQXLQHO\ QDUURZ WKH FODVV RI SHUVRQV WKLQNMXGJHVRIWKLV&RXUWVKRXOGFRXQWHQDQFHVWUDWHJLFDOO\ HOLJLEOHIRUWKHGHDWKSHQDOW\DQGPXVWUHDVRQDEO\MXVWLI\ SODFHGHUURUVE\RIILFHUVRIWKHFRXUW WKH LPSRVLWLRQ RI D PRUH VHYHUH VHQWHQFH RQ WKH GHIHQGDQWFRPSDUHGWRRWKHUVIRXQGJXLOW\RIPXUGHUl ,UHVSHFWIXOO\GLVVHQW =DQWY6WHSKHQV866&W    8QGHUWKHFDSLWDOVHQWHQFLQJODZVRIPRVW6WDWHVWKHMXU\ LVUHTXLUHGGXULQJWKHVHQWHQFLQJSKDVHWRILQGDWOHDVW RQH DJJUDYDWLQJ FLUFXPVWDQFH EHIRUH LW PD\ LPSRVH GHDWK%\GRLQJVRWKHMXU\QDUURZVWKHFODVVRISHUVRQV HOLJLEOHIRUWKHGHDWKSHQDOW\DFFRUGLQJWRDQREMHFWLYH OHJLVODWLYH GHILQLWLRQ  =DQW VXSUD  86 DW  m>6@WDWXWRU\ DJJUDYDWLQJ FLUFXPVWDQFHV SOD\ D FRQVWLWXWLRQDOO\ QHFHVVDU\ IXQFWLRQ DW WKH VWDJH RI OHJLVODWLYH GHILQLWLRQ   WKH\ FLUFXPVFULEH WKH FODVV RI SHUVRQV HOLJLEOH IRU WKH GHDWK SHQDOW\l   &LWDWLRQV RPLWWHG ([FXVLQJ WKH WULDO MXGJHjV IDLOXUH WR FRPSO\ ZLWK WKH VWDWXWRU\SURYLVLRQVUHIHUUHGWRDERYHWKHVWDWHFRXUWVRQ WKHLURZQLQLWLDWLYHDIWHUWKHMXU\WULDODQGYHUGLFWIRXQGWKH SHWLWLRQHU(VSDU]DJXLOW\RIWKHDJJUDYDWLQJFLUFXPVWDQFHWKDW PDGH KLP HOLJLEOH IRU WKH GHDWK SHQDOW\ LH EHLQJ WKH mSULQFLSDO RIIHQGHUl LQ FRPPLWWLQJ DQ DJJUDYDWHG PXUGHU ZKLOH FRPPLWWLQJ D UREEHU\  7KH MXU\ LWVHOI ZDV QHYHU LQIRUPHGRIWKHDJJUDYDWLQJFLUFXPVWDQFHVUHTXLUHGQRUGLG LWILQGWKDWVXFKDFLUFXPVWDQFHH[LVWHG7KHSULPDU\TXHVWLRQ LVZKHWKHUWKH6WDWHYLRODWHGWKH(LJKWK$PHQGPHQWDVZHOO DVVWDWHODZZKHQLWIDLOHGWRHLWKHU FKDUJH(VSDU]DLQWKH LQGLFWPHQWZLWKWKHDJJUDYDWHGFLUFXPVWDQFHIRUZKLFKWKH  (VSDU]DY$QGHUVRQ 1RV  1RV  (VSDU]DY$QGHUVRQ 

7KHPDMRULW\DOVRFLWHV3UHVQHOOY*HRUJLD 86 GHDWK SHQDOW\ ZDV LPSRVHG RU LQVWUXFW WKH MXU\ RQ WKH    SHUFXULDP 7KHUHWKHGHIHQGDQWZDVFRQYLFWHGLQ DJJUDYDWLQJFLUFXPVWDQFHDQGKDYHWKHMXU\UHDFKDYHUGLFWRQ VWDWH FRXUW RI WKUHH FDSLWDO RIIHQVHV  UDSH NLGQDSLQJ ZLWK WKHH[LVWHQFHRIWKHDJJUDYDWLQJFLUFXPVWDQFH:HFRQFOXGH ERGLO\ LQMXU\ DQG PXUGHU ZLWK PDOLFH DIRUHWKRXJKW  7KH WKDWWKH'LVWULFW&RXUWZDVFRUUHFWLQLVVXLQJWKHZULWRQWKLV *HRUJLD 6XSUHPH &RXUW UXOHG WKDW WKH ILUVW WZR GHDWK EDVLV VHQWHQFHV ZHUH LQYDOLG EHFDXVH ERWK GHSHQGHG XSRQ WKH SHWLWLRQHU KDYLQJ FRPPLWWHG IRUFLEOH UDSH DQG WKH FRXUW ,)DFWV GHWHUPLQHG WKDW WKH MXU\ KDG QRW SURSHUO\ FRQYLFWHG WKH SHWLWLRQHURIWKDWRIIHQVH7KHMXU\KDGEHHQLQVWUXFWHGGXULQJ 7KHFDVHZDVWULHGRQWKHWKHRU\WKDW(VSDU]DZDVWKHRQO\ WKHJXLOWSKDVHERWKRQIRUFLEOHDQGVWDWXWRU\UDSHEXWGLGQRW SDUWLFLSDQWLQWKHFULPH7KH6WDWHjVSURRIVKRZHGWKDWRQWKH VSHFLI\LQLWVYHUGLFWZKLFKRIIHQVHLWKDGIRXQGDQGWKHUH HYHQLQJ RI )HEUXDU\    D PDVNHG PDQ HQWHUHG WKH ZDVQRMXU\ILQGLQJRIIRUFLEOHUDSHDWWKHSHQDOW\SKDVH7KH ,VODQG9DULHW\&DUU\RXWLQ7ROHGR2KLRDQGDSSURDFKHGWKH *HRUJLD 6XSUHPH &RXUW XSKHOG WKH WKLUG GHDWK SHQDOW\ WZR VWRUH HPSOR\HHV 0HODQLH *HUVFKXOW] DQG sDPHV LPSRVHGE\WKHMXU\LQVSLWHRIWKHODFNRIDMXU\ILQGLQJRQ %DUDLOORX[  3RLQWLQJ D VPDOO EODFN KDQGJXQ DW WKHP KH IRUFLEOH UDSH RQ WKH JURXQGV WKDW HYLGHQFH LQ WKH UHFRUG RUGHUHG*HUVKXOW]WRRSHQWKHFDVKUHJLVWHU:KLOHVKHZDV VXSSRUWHGWKHFRQFOXVLRQWKDWWKHSHWLWLRQHUZDVJXLOW\RIWKDW GRLQJ WKLV %DUDLOORX[ IOHG WKH VWRUH WKURXJK D UHDU GRRU RIIHQVHZKLFKLQWXUQHVWDEOLVKHGWKHHOHPHQWRIERGLO\KDUP HQWHULQJWKHDWWDFKHGKRPHRIWKHVWRUHjVRZQHU:KLOHKH QHFHVVDU\WRPDNHWKHWKLUGFDSLWDOFULPHmNLGQDSSLQJZLWK ZDVDOHUWLQJWKHRZQHURIWKHUREEHU\KHKHDUGDVKRW+H ERGLO\KDUPDJJUDYDWHGVRGRP\lDVXIILFLHQWO\DJJUDYDWLQJ UHWXUQHGWRWKHVWRUHDQGIRXQG*HUVKXOW]O\LQJRQWKHIORRU FLUFXPVWDQFHWRMXVWLI\WKHGHDWKVHQWHQFH,GDW7KH VKRWRQFHLQWKHQHFNDQGWKHFDVKUHJLVWHURSHQDQGPLVVLQJ 8QLWHG6WDWHV6XSUHPH&RXUWUHYHUVHGJLYHQWKHDEVHQFHRI DSSUR[LPDWHO\*HUVKXOW]GLHGVKRUWO\WKHUHDIWHU D MXU\ ILQGLQJ RI IRUFLEOH UDSH  +RZHYHU LQ WKDW FDVH WKH 6XSUHPH&RXUWGLGQRWFRQVLGHUZKHWKHUWKHKDUPOHVVHUURU $W WULDO D \HDU ODWHU ERWK (VSDU]DjV VLVWHU DQG D IHOORZ GRFWULQHPLJKWEHDSSOLFDEOH LQPDWHWHVWLILHGWKDWKHFRQIHVVHGWRWKHNLOOLQJ DQGWKHVROH ZLWQHVV WR WKH UREEHU\ sDPHV %DUDLOORX[ WHVWLILHG WKDW WKH )XUWKHUPRUH3UHVQHOOLVGLVWLQJXLVKDEOHEHFDXVHKHUHDV, PDVNHGUREEHUZDVVKRUWDQGKXVN\DVZDV(VSDU]DDQGWKDW KDYHQRWHGWKHMXU\QHFHVVDULO\IRXQGWKDW(VSDU]DZDVWKH KH ZDV ZHDULQJ D GDUN EOXH MDFNHW VLPLODU WR WKH MDFNHW DFWXDO NLOOHU DQG WKHUHIRUH WKH SULQFLSDO RIIHQGHU  7KXV (VSDU]DjV VLVWHU VDLG (VSDU]D ZRUH WKDW QLJKW  7KH MXU\ XQOLNH 3UHVQHOO WKH MXU\ LQ WKLV FDVH DFWXDOO\ PDGH D UHWXUQHGDYHUGLFWRIJXLOW\RQERWKFRXQWVODWHLQWKHGD\RQ ILQGLQJoDOEHLW LPSOLFLWO\oRQ DQ HOHPHQW RI WKH RIIHQVH 7KXUVGD\0D\ $PLWLJDWLRQKHDULQJZDVKHOGRQ QHFHVVDU\ WR PDNH  (VSDU]Dj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jV WULDO KLV DSSHDOV DQG KLV VWDWH SRVW LVDSSOLFDEOH ,WKHUHIRUHGRQRWILQGWKDWWKH2KLR&RXUWRI FRQYLFWLRQSURFHHGLQJVDVXEVWDQWLDOYROXPHRIH[FXOSDWRU\ HYLGHQFHZDVUHYHDOHGWKDWZDVQRWWXUQHGRYHUE\SURVHFXWRUV  (VSDU]DY$QGHUVRQ 1RV  1RV  (VSDU]DY$QGHUVRQ 

DWWULDO7KLVHYLGHQFHWHQGHGWRSURYHWKDWsRHsDVVRZDVD ,QP\YLHZWKHIDLOXUHWRSURSHUO\LQVWUXFWWKHMXU\XQGHU SDUWLFLSDQWLQWKHFULPHDQGWKDW(VSDU]DGLGQRWDFWDORQH 6HFWLRQ   $  LQYROYHGDWULDOHUURUmZKLFKRFFXUUHG GXULQJ WKH SUHVHQWDWLRQ RI WKH FDVH WR WKH MXU\l WKDW FRXOG 1R LQIRUPDWLRQ FRQFHUQLQJ sDVVR ZDV SURYLGHG WR WKH WKHUHIRUHEHTXDQWLWDWLYHO\DVVHVVHGDJDLQVWWKHRWKHUHYLGHQFH GHIHQVHEHIRUHWULDO,QLQIRUPDWLRQGLVFRYHUHGDVDUHVXOWRI WRGHWHUPLQHLIWKHHUURUZDVKDUPOHVVEH\RQGDUHDVRQDEOH D GLVFRYHU\ UHTXHVW HQIRUFHG E\ WKH GLVWULFW FRXUW EHORZ GRXEW)XOPLQDQWH 86DW0RUHLPSRUWDQWO\ (VSDU]D OHDUQHG WKDW WZR LQGLYLGXDOV &KDUOHV +DOO DQG ,GRQRWWKLQNLWXQUHDVRQDEOHIRUWKH2KLR&RXUWRI$SSHDOV 6WHSKHQ %LOOLQJV ERWK VHSDUDWHO\ UHSRUWHG WR WKH 7ROHGR WR KDYH GRQH VR EHFDXVH (VSDUD]DjV WULDO VWLOO VHUYHG DV D 3ROLFH'HSDUWPHQWWKDWWKH\KDGVHHQD&DXFDVLDQPDOHDQG UHOLDEOHYHKLFOHIRUWKHGHWHUPLQDWLRQWKDWKHZDVJXLOW\RI D+LVSDQLFPDOHLQWKH,VODQG9DULHW\&DUU\RXWWKHQLJKWRIWKH FDSLWDOPXUGHU%\WKHVDPHWRNHQ,GRQRWWKLQNWKHVWDWH KRPLFLGH+DOODQG%LOOLQJVERWKUHSRUWHGWKDWWKH&DXFDVLDQ FRXUWjVFRQFOXVLRQWKDWWKHHUURUZDVLQIDFWKDUPOHVVLQOLJKW PDQZDVGULYLQJD0RQWH&DUOR+DOOUHSRUWHGWKDWKHVDZWKH RIWKHmPDQLIHVWZHLJKWRIWKHHYLGHQFHlZDVDQXQUHDVRQDEOH 0RQWH&DUORFLUFOHWKH,VODQG9DULHW\&DUU\RXWWZHOYHWLPHV DSSOLFDWLRQRIWKHKDUPOHVVHUURUGRFWULQHHLWKHU ,QIRUPDWLRQLPSOLFDWLQJsDVVRZDVDOVRGLVFRYHUHGDVDUHVXOW RI GLVWULFW FRXUWRUGHUHG UHOHDVH RI WLSV FROOHFWHG E\ 7KHPDMRULW\DOVRVWDWHVWKDWHYHQLIKDUPOHVVHUURUDQDO\VLV &ULPHVWRSSHUV D SULYDWHO\ IXQGHG SURJUDP WKDW ZRUNV LQ ZHUH DSSURSULDWH mZH DUH IDFHG ZLWK WKH SUREOHP WKDW FRQMXQFWLRQZLWKORFDOODZHQIRUFHPHQWWRJDWKHULQIRUPDWLRQ VXSSUHVVHG HYLGHQFH GLVFRYHUHG IRU WKH ILUVW WLPH LQ WKH UHJDUGLQJXQVROYHGFULPHV7ZRGD\VDIWHUWKHKRPLFLGHDQ 'LVWULFW &RXUW LQ WKLV SURFHHGLQJ UDLVHV D TXHVWLRQ DERXW XQLGHQWLILHG FDOOHU VWDWHG WKDW KH KDG RYHUKHDUG sRH sDVVR ZKHWKHU(VSDU]DDFWHGDORQHl0DM2SDW7KHUHFRUGLQ WDONLQJ DERXW WKH PXUGHU  7KH FDOOHU KXQJ XS EHIRUH DQ\ WKH GLVWULFW FRXUW UHIOHFWV WKDW WKH SURVHFXWLRQ ZLWKKHOG DGGLWLRQDOLQIRUPDWLRQZDVREWDLQHG HYLGHQFH E\ WZR ZLWQHVVHV LQGLFDWLQJ WKDW WKHUH ZHUH WZR SDUWLFLSDQWVLQWKHFULPH(VSDU]DDQGsRHsDVVR%DVHGRQ 3ULRU WR WULDO WKH JRYHUQPHQW H\HZLWQHVV ,VODQG 9DULHW\ WKLV HYLGHQFH WKH PDMRULW\ FRQFOXGHV WKDW m>W@KH EDVLV RQ &DUU\RXWVWRUHFOHUNsDPHV%DUDLOORX[SURYLGHGDVHULHVRI ZKLFK 2KLR MXGJHV GLUHFWHG D YHUGLFW RQ WKH µSULQFLSDO LQFRQVLVWHQWGHVFULSWLRQVRIWKHDVVDLODQWWRWKH7ROHGRSROLFH RIIHQGHUjDJJUDYDWRUoWKDWWKHUHZDVRQO\RQHSDUWLFLSDQWLQ GHSDUWPHQW  sXVW GD\V DIWHU WKH UREEHU\ DQG KRPLFLGH WKHFULPHoDSSHDUVQRZWREHXQWUXHlDQGWKDWmWKHEDVLVIRU RFFXUUHG %DUDLOORX[ SURYLGHG WZR VOLJKWO\ GLIIHUHQW WKH6WDWHjVKDUPOHVVHUURUDUJXPHQWLQWKH6WDWHFRXUWVKDV GHVFULSWLRQVRIWKHDVVDLODQWERWKJHQHUDOO\GHVFULELQJDZKLWH EHHQXQGHUPLQHGE\WKHQHZHYLGHQFHl0DM2SDW, PDOHLQKLVPLGWKLUWLHVDURXQG WDOODQGZHLJKLQJDURXQG ZRXOG DJUHH ZLWK WKH PDMRULW\ WKDW WKLV HYLGHQFH ZRXOG SRXQGV+HGLGQRWPHQWLRQDVNLPDVN(VSDU]DZDV FRPSHODILQGLQJWKDWWKHHUURUZDVQRWKDUPOHVVKHUHH[FHSW \HDUVROGDWWKHWLPHRIWKHLQFLGHQW WDOO+LVSDQLFDQG WKDW DV WKH PDMRULW\ QRWHV HOVHZKHUH LQ LWV RSLQLRQ LQ KHDY\VHW LQ ERG\ W\SH  7ZR PRQWKV DIWHU WKH UREEHU\ FRQQHFWLRQ ZLWK (VSDU]DjV %UDG\ FODLP WKDW m>H@YHQ DIWHU %DUDLOORX[GHVFULEHGWKHSHUSHWUDWRUDVHLWKHU&DXFDVLDQRU WKLVKRZHYHUWKHUHUHPDLQVRWKHUVLJQLILFDQWHYLGHQFHDJDLQVW +LVSDQLF DQG mKXVN\l  +H SURYLGHG QR GHVFULSWLRQ RI WKH (VSDU]DLQSDUWLFXODUWKHWHVWLPRQ\RIWZRLQGLYLGXDOVWKDW DVVDLODQWjV FORWKLQJ GXULQJ WKDW LQWHUYLHZ  %DUDLOORX[jV (VSDU]DDGPLWWHGWRVKRRWLQJ0HODQLH*HUVKXOW]l0DM2S GHVFULSWLRQ FRQWLQXHG WR FKDQJH RYHU WLPH DQG DW WULDO KH DW,QVKRUW,GRQRWWKLQNWKDWLWFDQEHVDLGWKDWWKH2KLR GHVFULEHGWKHSHUSHWUDWRUDVDODUJHKHDY\VHWPDQZLWKDODUJH FRXUWjV DSSOLFDWLRQ RI WKH KDUPOHVV HUURU GRFWULQH ZDV DQ QHFNZHDULQJDJUHHQVNLPDVNZLWKJROGVWULSHVDQGDmSXII\l XQUHDVRQDEOHDSSOLFDWLRQRI6XSUHPH&RXUWSUHFHGHQWWRWKH EOXH MDFNHW  1RQH RI WKH LQFRQVLVWHQW GHVFULSWLRQV ZHUH IDFWVRIWKLVFDVHHYHQLQOLJKWRIWKHQHZHYLGHQFH GLVFORVHGWRWKHGHIHQVHFRXQVHOEHIRUHWULDO  (VSDU]DY$QGHUVRQ 1RV  1RV  (VSDU]DY$QGHUVRQ 

8OWLPDWHO\KRZHYHULWLVWKHGLVDJUHHPHQWLWVHOIRYHUWKH 2Q GLUHFW DSSHDO IURP WKH YHUGLFW RI GHDWK WKH 2KLR DSSURSULDWH DQDORJ\oWR 1HGHU RU 6XOOLYDQo WKDW LV PRVW 6XSUHPH&RXUWIRXQGQRUHYHUVLEOHHUURULQWKHWULDOZLWKWZR UHOHYDQWKHUHEHFDXVHXQGHUWKH$('3$ZHDUHQRWWRIDXOW RIWKHVHYHQMXVWLFHVGLVVHQWLQJ6WDWHY(VSDU]D 2KLR6W WKHVWDWHFRXUWjVGHFLVLRQXQOHVVZHILQGLWFRQWUDU\WRRUDQ G    1(G       ,Q VWDWH SRVWFRQYLFWLRQ XQUHDVRQDEOHDSSOLFDWLRQRI6XSUHPH&RXUWSUHFHGHQW$VWKH SURFHHGLQJV WKH 2KLR &RXUW RI $SSHDOV LQ JHQHUDO IRUHJRLQJ GLVFXVVLRQ UHYHDOV WKH VWDWH FRXUWj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sXO\  7KH DVIRXQGE\WKH2KLR&RXUWRI$SSHDOVWKHIURQWSDJHRIWKH 2KLR6XSUHPH&RXUWGLVPLVVHGWKHDSSHDOZLWKRXWRSLQLRQ LQGLFWPHQW VWDWHV WKDW (VSDU]D ZDV FKDUJHG ZLWK 6WDWH Y (VSDU]D  2KLR 6W G   1(G  m$**5$9$7(' 085'(5o†   % oZLWK D JXQ    VSHFLILFDWLRQ $**5$9$7('52%%(5<† oDOVR ZLWKDJXQVSHFLILFDWLRQ DOVRDGHDWKSHQDOW\VSHFLILFDWLRQDV 7KH 'LVWULFW &RXUW GLVDJUHHG  ,W FRQFOXGHG WKDW WKH WRWKHILUVWFRXQW>@l+HUHWKHMXU\ZDVLQVWUXFWHGFRPSOHWHO\ SURFHGXUH IROORZHG E\ WKH 6WDWH LQ VHQWHQFLQJ (VSDU]D WR DQGSURSHUO\RQWKHHOHPHQWVRIDJJUDYDWHGPXUGHUmGHILQHG GHDWK YLRODWHG WKH OLQH RI 6XSUHPH &RXUW FDVHV IROORZLQJ DVSXUSRVHO\FDXVLQJWKHGHDWKRIDQRWKHUZKLOHFRPPLWWLQJ )XUPDQY*HRUJLD86   HVWDEOLVKLQJQHZ $JJUDYDWHG5REEHU\l,QDGGLWLRQWKHMXU\ZDVLQVWUXFWHG WKDWLILWIRXQG(VSDU]DJXLOW\RI$JJUDYDWHG0XUGHUmLWLV WKHQ\RXUGXW\WRGHOLEHUDWHIXUWKHUDQGGHFLGHWZRDGGLWLRQDO  7KH (LJKWK $PHQGPHQW LVVXH ZDV FOHDUO\ UDLVHG LQ WKH 2KLR FRXUWV IDFWXDOTXHVWLRQVFDOOHG6SHFLILFDWLRQVl$VWRWKHVHFRQG )RU H[DPSOH (VSDU]DjV ILUVW DVVLJQPHQW RI HUURU LQ WKH &RXUW RI $SSHDOV

VSHFLILFDWLRQWKHWULDOFRXUWLQVWUXFWHGWKHMXU\WKDWWKHLVVXH VDLG

IRU GHFLVLRQ ZDV mZKHWKHU WKH 6WDWH KDV SURYHG EH\RQG D UHDVRQDEOHGRXEWWKDWWKHRIIHQVHRI$JJUDYDWHG0XUGHUZDV $33(//$17 (63$5=$j6 '($7+ 6(17(1&( ,6 92,' $1' 9,2/$7(6 7+( (,*+7+ $1' )2857((17+ FRPPLWWHGZKLOHWKH'HIHQGDQWZDVFRPPLWWLQJ$JJUDYDWHG $0(1'0(176 72 7+( 81,7(' 67$7(6 5REEHU\l7KH6WDWHSURFHHGHGRQWKHWKHRU\WKDWRQHSHUVRQ &2167,787,21

FRPPLWWHGWKHPXUGHUDQGUREEHU\7KXVLQRUGHUWRILQG (VSDU]DJXLOW\EH\RQGDUHDVRQDEOHGRXEWWKHMXU\PXVWKDYH 7KH &RXUW GHVFULEHG WKH DUJXPHQW DV IROORZV

IRXQG WKDW (VSDU]D mDFWXDOO\ NLOOHGl 0HODQLH *HUVFKXOW] 8QGHU KLV ILUVW DVVLJQPHQW RI HUURU (VSDU]D FRQWHQGV WKDW KLV m3ULQFLSDORIIHQGHUlKDVEHHQGHILQHGXQGHU2KLRODZDVmWKH GHDWK VHQWHQFH LV YRLG LQ WKDW WKH VWDWH IDLOHG WR DOOHJH DQG WKH DFWXDONLOOHUl6WDWHY&KLQQ 1(G 2KLR MXU\ IDLOHG WR ILQG DOO RI WKH HOHPHQWV RI D FDSLWDO VSHFLILFDWLRQ  7KXVDOWKRXJKWKHMXU\ZDVQRWH[SOLFLWO\LQVWUXFWHG ,Q SDUWLFXODU DSSHOODQW DVVHUWV WKDW WKH LQGLFWPHQW IDLOHG WR DOOHJH WRPDNHDILQGLQJXQGHU6HFWLRQ   $  WKDW(VSDU]D D GHDWK SHQDOW\ VSHFLILFDWLRQ EHFDXVH LW GLG QRW DOOHJH WKDW KH ZDV

ZDV mWKH SULQFLSDO RIIHQGHU LQ WKH FRPPLVVLRQ RI WKH HLWKHU WKH SULQFLSDO RIIHQGHU RU WKDW KH FRPPLWWHG WKH DJJUDYDWHG PXUGHU ZLWK SULRU FDOFXODWLRQ DQG GHVLJQ $SSHOODQW IXUWKHU DJJUDYDWHGPXUGHUlLWQHFHVVDULO\KDGWRPDNHWKDWILQGLQJLQ DVVHUWV WKDW WKH MXU\ LQVWUXFWLRQV DW WKH JXLOW SKDVH RI KLV WULDO RUGHU WR ILQG (VSDU]D JXLOW\ RI WKH DJJUDYDWHG PXUGHU RI EHORZ ZHUH VLPLODUO\ GHIHFWLYH *HUVFKXOW]RQWKHIDFWVEHIRUHLW   :/   DW   (VSDU]DY$QGHUVRQ 1RV  1RV  (VSDU]DY$QGHUVRQ 

(LJKWK$PHQGPHQWVWDQGDUGVIRUWKHVWDWHVWRIROORZLQGHDWK 7KHPDMRULW\GUDZVDGLIIHUHQWFRQFOXVLRQDQDORJL]LQJWR FDVHV7KH&RXUWEDVHGLWVUXOLQJRQWKHIDLOXUHRIWKH2KLR WKH UXOLQJ LQ 6XOOLYDQ Y /RXLVLDQD  86     FRXUWVWRIROORZWKHLURZQVWDWXWRU\UXOHVGHVLJQHGWRUHQGHU 6XOOLYDQKHOGWKDWDGHIHFWLYHmUHDVRQDEOHGRXEWlLQVWUXFWLRQ 2KLRjV GHDWK SHQDOW\ VFKHPH FRQVWLWXWLRQDO XQGHU WKHVH LQYLRODWLRQRIWKHGHIHQGDQWjV)LIWKDQG6L[WK$PHQGPHQW (LJKWK$PHQGPHQWFDVHV ULJKWV LV QRW VXEMHFW WR KDUPOHVV HUURU DQDO\VLV EHFDXVH LW mYLWLDWHVDOOWKHMXU\jVILQGLQJVl86DWDQGUHVXOWV +HUHWKHWULDOMXGJHOHGGRZQWKLVSDWKE\WKHGHIHFWLYH LQ mFRQVHTXHQFHV WKDW DUH QHFHVVDULO\ XQTXDQWLILDEOH DQG LQGLFWPHQW FKDUJHG WKH MXU\ DV WR RQH RIIHQVH n LQGHWHUPLQDWHl  ,G DW   ,Q 1HGHU WKH 6XSUHPH &RXUW DJJUDYDWHGPXUGHUnEXWVHQWHQFHG(VSDU]DDVLIKHKDG UHMHFWHGWKHGHIHQGDQWjVDUJXPHQWWKDW6XOOLYDQSUHFOXGHGWKH EHHQFRQYLFWHGRIDQHQWLUHO\VHSDUDWHRIIHQVHnFDSLWDO DSSOLFDWLRQ RI KDUPOHVV HUURU ZKHUH DQ HUURQHRXV MXU\ PXUGHU$VWKH6XSUHPH&RXUWVDLGLQ6XOOLYDQY LQVWUXFWLRQRPLWVWKHHOHPHQWRIPDWHULDOLW\EHFDXVHWKHMXU\ /RXLVLDQD86> @   mWRK\SRWKHVL]H FRXOGQRWUHQGHUDmFRPSOHWHYHUGLFWlRQHYHU\HOHPHQWRIWKH D JXLOW\ YHUGLFW WKDW ZDV QHYHU LQ IDFW UHQGHUHG n QR RIIHQVH1HGHU86DW7KHPDMRULW\GLVWLQJXLVKHV PDWWHU KRZ LQHVFDSDEOH WKH ILQGLQJ WR VXSSRUW WKDW 1HGHURQWKHJURXQGVWKDWmPDWHULDOLW\lZDVDPLQRUHOHPHQW YHUGLFW PLJKW EH n ZRXOG YLRODWH WKH MXU\ WULDO LQ D WD[ IUDXG FDVH DQG IXUWKHU QRWHV WKDW m>W@KHUH LV QR JXDUDQWHHl VXJJHVWLRQ LQ WKH &KLHI sXVWLFHjV RSLQLRQ LQ 1HGHU WKDW KDUPOHVVHUURUZRXOGSURWHFWDGLUHFWHGYHUGLFWIRUWKH6WDWH 7KLVSRVWKRFGHWHUPLQDWLRQE\DQDSSHOODWHFRXUWRI RQDFUXFLDOILQGLQJXQGHUWKH(LJKWK$PHQGPHQWLQDFDSLWDO ZKDW WKH MXU\ ZRXOG KDYH GRQH LI WKH FDSLWDO FDVHl0DM2SDW VSHFLILFDWLRQV TXHVWLRQ KDG EHHQ SUHVHQWHG WR LW LV SDUWLFXODUO\ WURXEOLQJ LQ OLJKW RI WKH FDSLWDO VFKHPH DW +RZHYHU 1HGHU LWVHOI ZDV QRW EDVHG RQ WKH IDFW WKDW LVVXHKHUH$VGLVFXVVHGODWHULQWKLVRSLQLRQWKH2KLR PDWHULDOLW\ZDVDPLQRUHOHPHQWRIWKHRIIHQVHDWLVVXH:KDW 6XSUHPH&RXUWWKLV&RXUWDQGWKH6L[WK&LUFXLWKDYHDOO WKH1HGHU&RXUWGLGVD\LVWKDWm>W@KHHUURUDWLVVXHKHUHoDMXU\ UHOLHGXSRQWKHH[LVWHQFHRIWKHFDSLWDOVSHFLILFDWLRQVVHW LQVWUXFWLRQRPLWVDQHOHPHQWRIWKHRIIHQVHoGLIIHUVPDUNHGO\ IRUWK LQ 2KLR 5HY &RGH †    $   WR FRQFOXGH IURP WKH FRQVWLWXWLRQDO YLRODWLRQV ZH KDYH IRXQG WR GHI\ WKDWWKH2KLRFDSLWDOVFKHPHKDVVXIILFLHQWO\QDUURZHG KDUPOHVVHUURUUHYLHZl1HGHU86DW1RWLQJWKDW WKHFODVVRISHUVRQVVXEMHFWWRWKHGHDWKSHQDOW\WRUHQGHU m>Z@H KDYH RIWHQ DSSOLHG KDUPOHVVHUURU DQDO\VLV WR FDVHV WKDWVFKHPHFRQVWLWXWLRQDOXQGHU=DQWY6WHSKHQV LQYROYLQJ LPSURSHU LQVWUXFWLRQV RQ D VLQJOH HOHPHQW RI WKH 86    RIIHQVHlWKH&RXUWSURFHHGHGWRGLVFXVVLWVSUHFHGHQWRQWKH VXEMHFW,GDW 7KH&RXUWFRQFOXGHGWKDWZKLOHm>L@WZRXOG 7KXVWKH2KLR6XSUHPH&RXUWKDVHPSKDVL]HGWKDWD QRWEHLOORJLFDOWRH[WHQGWKHUHDVRQLQJRI6XOOLYDQlWRWKH GHIHQGDQWPD\QRWEHVXEMHFWWRWKHGHDWKSHQDOW\IRUD IDLOXUHWRLQVWUXFWRQDQHOHPHQWRIWKHFULPHmWKHPDWWHULV PHUHYLRODWLRQRI2KLR5HY&RGH†  % EHIRUH QRWUHVQRYDXQGHURXUFDVHODZl,GDW WKH GHDWK SHQDOW\ FDQ EH LPSRVHG WKH VWDWH mPXVW DGGLWLRQDOO\ SURYH WKDW WKH RIIHQGHU ZDV WKH SULQFLSDO RIIHQGHULQWKHFRPPLVVLRQRIWKHDJJUDYDWHGPXUGHURU LIWKHRIIHQGHUZDVQRWWKHSULQFLSDORIIHQGHUWKDWWKH DJJUDYDWHGPXUGHUZDVFRPPLWWHGZLWKSULRUFDOFXODWLRQ  $W WKH ULVN RI VRXQGLQJ XQGXO\ UKHWRULFDO ZK\ ZRXOG WKHUH EH" DQG GHVLJQl  6WDWH Y sHQNLQV  1(G  2KLR 1HGHU ZDV QRW D FDSLWDO FDVH $QG DV WKH PDMRULW\ ZHOO NQRZV WKH    FHUW GHQLHG  86     HPSKDVLV 6XSUHPH &RXUW DV LW LV FRQVWLWXWLRQDOO\ UHTXLUHG WR GR VSHDNV RQO\ WR WKH LVVXHV SURSHUO\ EHIRUH LW  (VSDU]DY$QGHUVRQ 1RV  1RV  (VSDU]DY$QGHUVRQ

5DWKHUWKHLVVXHLVZKHWKHUWKH6WDWHjVIDLOXUHWRIROORZWKDW DGGHG 6HHDOVR6WDWHY%DUQHV 1(G   VFKHPHE\IDLOLQJWRSURSHUO\LQGLFWDQGLQVWUXFWWKHMXU\RQ 2KLR  FHUWGHQLHG86     mWKHWULDO WKHHOHPHQWRIFDSLWDOPXUGHUFRQVWLWXWHGFRQVWLWXWLRQDOHUURU FRXUWKDGWRILQGWKDW>WKHGHIHQGDQW@FRPPLWWHGPXUGHU RIDVWUXFWXUDOW\SHRULVVXEMHFWWRKDUPOHVVHUURUDQDO\VLV ZKLOHFRPPLWWLQJRUDWWHPSWLQJWRFRPPLW>DVSHFLILHG %RWKP\VHOIDQGWKHPDMRULW\VWUXJJOHZLWKWKHTXHVWLRQRI IHORQ\@ DQG IXUWKHU WKDW >WKH GHIHQGDQW@ ZDV WKH ZKHWKHUWKLVLVSXUHO\DYLRODWLRQRIWKH(LJKWK$PHQGPHQWRU SULQFLSDORIIHQGHURUWKDWWKHPXUGHUZDVSUHPHGLWDWHGl  DYLRODWLRQRIWKH6L[WK$PHQGPHQWULJKWWRWULDOE\MXU\RU $QGIHGHUDOFRXUWV DVWKLVRQHGRHVKHUHKDYHUHOLHG ERWK7KHUHLVQRGLUHFW6XSUHPH&RXUWSUHFHGHQWWRUHVROYH XSRQWKLVLQWHUSUHWDWLRQRI2KLRjVFDSLWDOVFKHPHE\WKH WKLVTXHVWLRQVRZHFDQQRWDQDO\]HWKH2KLR&RXUWRI$SSHDOV KLJKHVWFRXUWLQWKHVWDWHDVVXSSRUWIRUWKHFRQFOXVLRQ GHFLVLRQXQGHUWKHmFRQWUDU\WRmFODXVHRIWKH$('3$ WKDW 2KLRjV FDSLWDO VFKHPH GRHV QDUURZ WKH FODVV RI SHUVRQVWRZKRPWKHGHDWKSHQDOW\FDQEHDSSOLHGDQG 7KHTXHVWLRQWKHQEHFRPHVZKHWKHUWKHVWDWHFRXUWjVUXOLQJ GRHVQRWXVHWKHSUHFLVHVDPHIDFWRUVERWKWRFRQYLFWIRU LV QRQHWKHOHVV DQ mXQUHDVRQDEOH DSSOLFDWLRQl RI FOHDUO\ DJJUDYDWHGPXUGHUDQGWRVXEMHFWRQHVRFRQYLFWHGWRWKH HVWDEOLVKHG )HGHUDO  ODZ  :LWKRXW D FOHDU DQVZHU RQ WKH GHDWKSHQDOW\6HHHJ6FRWWY0LWFKHOO )G VXEMHFW ZH PXVW H[WHQG E\ DQDORJ\  RWKHU 6XSUHPH &RXUW  WK&LU  GHFLVLRQV DGGUHVVLQJ WKH DSSURSULDWHQHVV RI KDUPOHVV HUURU DQDO\VLV,QP\YLHZLWLVQRWXQUHDVRQDEOHWRDQDORJL]HWR :KHUHWKHH[LVWHQFHRIWKHVSHFLILFDWLRQVXQGHU2KLR 6XSUHPH &RXUW SUHFHGHQW KROGLQJ WKDW RPLVVLRQV DQG 5HY&RGH†   $  DQGRIWKHVWDWHjVREOLJDWLRQ PLVGHVFULSWLRQV RI HOHPHQWV RI DQ RIIHQVH DUH VXEMHFW WR D WR SURYH WKRVH VSHFLILFDWLRQV DV DGGLWLRQDO IDFWRUV DUH KDUPOHVVHUURUDQDO\VLV6HHHJ1HGHU86DW  FULWLFDOWRWKHFRQVWLWXWLRQDOLW\RIWKHFDSLWDOVFKHPHD FDVHV LQYROYLQJ 6L[WK $PHQGPHQW ULJKW WR WULDO E\ MXU\ IDLOXUHWRFKDUJHWKRVHIDFWRUVRUVXEPLWWKHPWRWKHMXU\ GLVFXVVLQJ6XSUHPH&RXUWSUHFHGHQWKROGLQJWKDWRPLVVLRQRI VXUHO\ PXVW EH VWUXFWXUDO  %HFDXVH WKH VWDWH IDLOHG WR DQHOHPHQWRIDQRIIHQVHDQGPLVGHVFULSWLRQRIDQHOHPHQWDUH LQGLFW (VSDU]D IRU WKH RIIHQVH RI FDSLWDO PXUGHU DQG VXEMHFWWRKDUPOHVVHUURUUHYLHZ m8QOLNHVXFKGHIHFWVDVWKH IDLOHG WR LQVWUXFW WKH MXU\ WR ILQG DOO HOHPHQWV RI WKH FRPSOHWHGHSULYDWLRQRIFRXQVHORUWULDOEHIRUHDELDVHGMXGJH RIIHQVHRIFDSLWDOPXUGHUDQGEHFDXVHWKDWHUURULVQRW DQLQVWUXFWLRQWKDWRPLWVDQHOHPHQWRIWKHRIIHQVHGRHVQRW VXVFHSWLEOH WR D UHYLHZ IRU KDUPOHVV HUURU (VSDU]D LV QHFHVVDULO\UHQGHUDFULPLQDOWULDOIXQGDPHQWDOO\XQIDLURUDQ FRUUHFW WKDW LPSRVLWLRQ RI WKH GHDWK SHQDOW\ XSRQ KLP XQUHOLDEOHYHKLFOHIRUGHWHUPLQLQJJXLOWRULQQRFHQFHl,GDW ZRXOGEHXQFRQVWLWXWLRQDO  (VSDU]DY$QGHUVRQ1R &9DW 1'2KLR 2FW  IRRWQRWHVRPLWWHG  7KH TXHVWLRQ EHIRUH XV LV ZKHWKHU WKLV DQDO\VLV RI WKH  7KH GLVWULFW FRXUW VKDUHG LQ WKLV VWUXJJOH 7KH ORZHU FRXUWjV DQDO\VLV (LJKWK $PHQGPHQW UHTXLUHPHQWV LQ FDSLWDO FDVHV LV LV DQ DPDOJDP RI WKH )LIWK $PHQGPHQW ULJKW WR LQGLFWPHQW E\ JUDQG MXU\ HUURQHRXV DOEHLW HUURQHRXVO\ EHFDXVH WKLV ULJKW GRHV QRW H[WHQG WR VWDWH SURVHFXWLRQV  WKH )RXUWHHQWK $PHQGPHQW ULJKW WR DGHTXDWH QRWLFH FLWLQJ ,,$QDO\VLV ,Q UH :LQVKLS    86     WKH 6L[WK $PHQGPHQW JXDUDQWHH RI $SSUHQGL WULDO E\ MXU\ FLWLQJ Y 1HZ sHUVH\  86    DQG WKH sXVWLFH 6FDOLD FRQFLVHO\ SRLQWHG RXW LQ KLV GLVVHQWLQJ (LJKWK $PHQGPHQW ULJKW WR EH VHQWHQFHG XQGHU D FDSLWDO VFKHPH WKDW VXIILFLHQWO\ QDUURZV WKH FODVV RI SHUVRQ VXEMHFW WR WKH GHDWK SHQDOW\ FLWLQJ RSLQLRQLQ$OPHQGDUH]7RUUHVY8QLWHG6WDWHV86 =DQW Y 6WHSKHQV  86      (VSDU]DY$QGHUVRQ 1RV  1RV  (VSDU]DY$QGHUVRQ 

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sXVWLFH6FDOLDRQWKLVSRLQW7KH IDFWV DQG FLUFXPVWDQFHV RI WKH GHIHQGDQW KLV DXWKRURIWKH&RXUWjVRSLQLRQLQ$OPHQGDUH]7RUUHVsXVWLFH EDFNJURXQG DQG KLV FULPH  6HH HJ 6SD]LDQR Y %UH\HUH[SUHVVHGWKHVDPHYLHZLQKLVFRQFXUULQJRSLQLRQLQ )ORULGD>86   @ =DQWY6WHSKHQV 5LQJY$UL]RQD6&W  ZKHQKHREVHUYHG >86    @ (GGLQJVY2NODKRPD mWKDW MXU\ VHQWHQFLQJ LQ FDSLWDO FDVHV LV PDQGDWHG E\ WKH 86   /RFNHWWY2KLR86 (LJKWK$PHQGPHQWl,GDW,Q5LQJDPDMRULW\RIWKH     SOXUDOLW\RSLQLRQ *UHJJY*HRUJLD PHPEHUVRIWKH&RXUWUHDFKHGWKH VDPHFRQFOXVLRQRQWKH  86       MRLQW RSLQLRQ RI 6WHZDUW EDVLVRIWKHMXU\WULDOJXDUDQWHHLQWKH6L[WK$PHQGPHQW 3RZHOODQG6WHYHQVss ,QVFUXWLQL]LQJGHDWKSHQDOW\ SURFHGXUHVXQGHUWKH(LJKWK$PHQGPHQWWKH&RXUWKDV 7KH VDPH HVVHQWLDO SRLQW ZDV PDGH E\ &KLHI sXVWLFH HPSKDVL]HG WKH mWZLQ REMHFWLYHVl RI  mPHDVXUHG 5HKQTXLVW LQ WKH SRUWLRQ RI KLV RSLQLRQ IRU WKH &RXUW LQ FRQVLVWHQW DSSOLFDWLRQ DQG IDLUQHVV WR WKH DFFXVHGl /RZHQILHOGTXRWHGDERYH)XQGDPHQWDOSULQFLSOHVIURPERWK (GGLQJVVXSUDDWoj WKH'XH3URFHVV&ODXVHDQGWKH(LJKWK$PHQGPHQWDVWKH 'LVWULFW&RXUWKHOGLQLWVRSLQLRQTXRWHGDERYHDSSO\WRWKH &OHPRQV 86DW VRPHFLWDWLRQVRPLWWHG  IDFWVRIWKLVFDVHEHFDXVHWKHMXU\QHYHUIRXQGWKHVWDWXWRULO\ UHTXLUHGDJJUDYDWLQJFLUFXPVWDQFHZKLFKLQsXVWLFH6FDOLDjV 2KLR KDV VXFK D FDSLWDO VHQWHQFLQJ VFKHPH ZKLFK WKLV ZRUGVVXSSOLHVWKHmIDFWRUZKLFKPDNHV>WKH@FULPHDFDSLWDO &RXUWKDVIRXQGFRQVWLWXWLRQDO6HHHJ6FRWWY0LWFKHOO RIIHQVHl  7KLV HUURU LV XQTXHVWLRQDEO\ D YLRODWLRQ RI WKH   )G   WK &LU  FHUW GHQLHG  86  (LJKWK$PHQGPHQW  %XWWKHLVVXHLQWKLVFDVHLVQRWDVWKHPDMRULW\jV UHVRUW WR (LJKWK $PHQGPHQW MXULVSUXGHQFH PLJKW VXJJHVW sXVWLFH6FDOLDjVSRLQWLVUHLQIRUFHGE\WKHODQJXDJHRIWKH ZKHWKHU (VSDU]D ZDV VHQWHQFHG XQGHU FDSLWDO VHQWHQFLQJ &RXUWjVHDUOLHUSHUFXULDPRSLQLRQLQ3UHVQHOOY*HRUJLD SURFHGXUHVWKDWYLRODWHWKH(LJKWK$PHQGPHQWXQGHU)XUPDQ 86   DFDSLWDOFDVHVLPLODUWRWKHLQVWDQWFDVH DQG LWV SURJHQ\  )XUWKHUPRUH WKLV OLQH RI FDVHV GRHV QRW LQZKLFKWKH*HRUJLD6XSUHPH&RXUWVXSSOLHGWKHDJJUDYDWRU GLVFXVVWKHKDUPOHVVHUURUGRFWULQHDQGWKHPDMRULW\VXSSOLHV HOHPHQWRIWKHFDSLWDORIIHQVHRQZKLFKWKHMXU\ZDVVLOHQW QRDXWKRULW\ZKLFKDOORZVLWWRLQIHUIURPWKH&RXUWjVVLOHQFH WKDW WKH GRFWULQH LV QRW DSSOLFDEOH  7KXV LQ $('3$ ,Q&ROHY$UNDQVDV86    SHWLWLRQHUV WHUPLQRORJ\WKHVWDWHFRXUWjVUXOLQJLVQRWmFRQWUDU\WRlWKH ZHUH FRQYLFWHG DW WULDO RI RQH RIIHQVH EXW WKHLU 6XSUHPH&RXUWSUHFHGHQWXSRQZKLFKWKHPDMRULW\UHOLHV FRQYLFWLRQV ZHUH DIILUPHG E\ WKH 6XSUHPH &RXUW RI  (VSDU]DY$QGHUVRQ 1RV  1RV  (VSDU]DY$QGHUVRQ 

,Q)XUPDQY*HRUJLD86    SHUFXULDP  $UNDQVDV RQ WKH EDVLV RI HYLGHQFH LQ WKH UHFRUG WKH6XSUHPH&RXUWKHOGWKDWWKHSHQDOW\RIGHDWKPD\QRWEH LQGLFDWLQJWKDWWKH\KDGFRPPLWWHGDQRWKHURIIHQVHRQ LPSRVHGXQGHUDVHQWHQFLQJVFKHPHWKDWFUHDWHVDVXEVWDQWLDO ZKLFKWKHMXU\KDGQRWEHHQLQVWUXFWHG,QUHYHUVLQJWKH ULVNWKDWWKHSXQLVKPHQWZLOOEHLQIOLFWHGLQDQDUELWUDU\DQG FRQYLFWLRQV 0U sXVWLFH %ODFN ZURWH IRU D XQDQLPRXV FDSULFLRXV PDQQHU  )XUPDQ PDGH FOHDU WKDW D VWDWH PD\ &RXUW LPSRVHWKHGHDWKSHQDOW\RQO\LILWVODZVDUHVKDSHGWRQDUURZ WKHFODVVRIRIIHQGHUVHOLJLEOHIRUWKHGHDWKSHQDOW\*UHJJY m,WLVDVPXFKDYLRODWLRQRIGXHSURFHVVWRVHQGDQ *HRUJLD  86     UHDIILUPHG WKH KROGLQJ RI DFFXVHGWRSULVRQIROORZLQJFRQYLFWLRQRIDFKDUJH )XUPDQ VWDWLQJ WKDW mZKHUH GLVFUHWLRQ LV DIIRUGHG D RQ ZKLFK KH ZDV QHYHU WULHG DV LW ZRXOG EH WR VHQWHQFLQJERG\RQDPDWWHUVRJUDYHDVWKHGHWHUPLQDWLRQRI FRQYLFWKLPXSRQDFKDUJHWKDWZDVQHYHUPDGH ZKHWKHU D KXPDQ OLIH VKRXOG EH WDNHQ RU VSDUHG WKDW m7RFRQIRUPWRGXHSURFHVVRIODZSHWLWLRQHUVZHUH GLVFUHWLRQ PXVW EH VXLWDEO\ GLUHFWHG DQG OLPLWHG VR DV WR HQWLWOHG WR KDYH WKH YDOLGLW\ RI WKHLU FRQYLFWLRQV PLQLPL]HWKHULVNRIZKROO\DUELWUDU\DQGFDSULFLRXVDFWLRQl DSSUDLVHGRQFRQVLGHUDWLRQRIWKHFDVHDVLWZDVWULHG ,GDW ,QRWKHUZRUGVDFDSLWDOVHQWHQFLQJVFKHPHPXVW DQGDVWKHLVVXHVZHUHGHWHUPLQHGLQWKHWULDOFRXUWl SURYLGHDmPHDQLQJIXOEDVLVIRUGLVWLQJXLVKLQJWKHIHZFDVHV ,GDWl LQ ZKLFK >WKH SHQDOW\@ LV LPSRVHG IURP WKH PDQ\ FDVHV LQ ZKLFK LW LV QRWl ,G DW  TXRWLQJ)XUPDQ  86 DW 7KHVH IXQGDPHQWDO SULQFLSOHV RI SURFHGXUDO IDLUQHVV  6HHDOVR *RGIUH\Y*HRUJLD86 DSSO\ZLWKQROHVVIRUFHDWWKHSHQDOW\SKDVHRIDWULDOLQ    VDPH  SOXUDOLW\RSLQLRQ =DQWY6WHSKHQV86 DFDSLWDOFDVHWKDQWKH\GRLQWKHJXLOWGHWHUPLQLQJSKUDVH     UXOLQJ WKDW MXU\jV OLPLWHG IXQFWLRQ RI ILQGLQJ RIDQ\FULPLQDOWULDO&I*DUGQHUY)ORULGD86 VWDWXWRU\DJJUDYDWLQJFLUFXPVWDQFHGRHVQRWUHQGHU*HRUJLDjV      VWDWXWRU\VFKHPHLQYDOLGXQGHU)XUPDQ  :HDOVRDJUHHZLWKWKHGLVWULFWMXGJHWKDWWKHHUURUFDQQRW 7KH LVVXH LQ :RRGVRQ ZDV  mZKHWKHU D GHDWK VHQWHQFH EHRYHUFRPHE\ HPSOR\LQJmKDUPOHVVHUURUl1RQHRIWKH UHWXUQHG SXUVXDQW WR D ODZ LPSRVLQJ D PDQGDWRU\ GHDWK VHPLQDO6XSUHPH&RXUW(LJKWK$PHQGPHQWFDVHVUHTXLULQJ SHQDOW\IRUDEURDGFDWHJRU\RIKRPLFLGDORIIHQVHVFRQVWLWXWHV WKHQDUURZLQJRIWKHFODVVRIGHIHQGDQWVHOLJLEOHIRUWKHGHDWK FUXHO DQG XQXVXDO SXQLVKPHQW ZLWKLQ WKH PHDQLQJ RI WKH SHQDOW\SHUPLWVWKHRIIHQGHUWREHH[HFXWHGEHFDXVHWKHHUURU (LJKWK DQG )RXUWHHQWK $PHQGPHQWVl   86 DW  ZDV GHHPHG KDUPOHVV  )XUPDQ Y *HRUJLD  86  IRRWQRWHV RPLWWHG    7KH :RRGVRQ &RXUW H[SODLQHG WKDW    :RRGVRQ Y 1RUWK &DUROLQD  86   m>W@KH LVVXH OLNH WKDW H[SORUHG LQ )XUPDQ LQYROYHV WKH    DXWRPDWLF RU PDQGDWRU\ GHDWK SHQDOW\ GRHV QRW SURFHGXUH HPSOR\HG E\ WKH 6WDWH WR VHOHFW SHUVRQV IRU WKH FRPSO\ZLWKmWKHKROGLQJLQ)XUPDQWKDWWKHYHVWLQJRI XQLTXHDQGLUUHYHUVLEOHSHQDOW\RIGHDWKl,G7KH:RRGVRQ VWDQGDUGOHVVVHQWHQFLQJSRZHULQWKHMXU\YLRODWHGWKH(LJKWK &RXUWKHOGWKDWmLQFDSLWDOFDVHVWKHIXQGDPHQWDOUHVSHFWIRU $PHQGPHQWl *RGIUH\Y*HRUJLD86 KXPDQLW\ XQGHUO\LQJ WKH (LJKWK $PHQGPHQW UHTXLUHV    m7KH VWDQGDUGOHVV DQG XQFKDQQHOHG LPSRVLWLRQ RI FRQVLGHUDWLRQ RI WKH FKDUDFWHU DQG UHFRUG RI WKH LQGLYLGXDO GHDWKVHQWHQFHVLQWKHXQFRQWUROOHGGLVFUHWLRQRIDEDVLFDOO\ RIIHQGHUDQGWKHFLUFXPVWDQFHVRIWKHSDUWLFXODURIIHQVHDVD XQLQVWUXFWHG MXU\ LQ WKLV FDVH ZDV LQ QR ZD\ FXUHG E\ WKH FRQVWLWXWLRQDOO\LQGLVSHQVDEOHSDUWRIWKHSURFHVVRILQIOLFWLQJ DIILUPDQFH RI WKRVH VHQWHQFHV E\ WKH *HRUJLD 6XSUHPH WKH SHQDOW\ RI GHDWKl  ,G DW  FLWDWLRQV RPLWWHG   7KH &RXUWl 7KHGHDWKSHQDOW\IRUDOOVXFKRIIHQGHUVKDVEHHQ &RXUWWKHUHIRUHFRQFOXGHGWKDWWKHGHDWKVHQWHQFHVLPSRVHG VHW DVLGH QRW UHYLHZHG IRU KDUPOHVV HUURU  $QG LQ WKH XSRQWKHSHWLWLRQHUVXQGHU1RUWK&DUROLQDjVPDQGDWRU\GHDWK  (VSDU]DY$QGHUVRQ 1RV  1RV  (VSDU]DY$QGHUVRQ 

3UHVQHOOY*HRUJLDFDVHVXSUDWKH6XSUHPH&RXUWGLGQRW mVWUXFWXUDOl ,GDW,QIDFWWKH6XSUHPH&RXUWKDV VHQGWKHFDVHEDFNIRUKDUPOHVVHUURUUHYLHZ HPSOR\HGWKHmVWUXFWXUDOGHIHFWlYVmWULDOHUURUlGLFKRWRP\ LQ  FDSLWDO FDVHV 6HH HJ 6XOOLYDQ   86 DW  $VWDWHPD\QRWDGRSWDYDOLGVWDWXWHDQGWKHQGHFOLQHWR )XOPLQDQWH 86DW KROGLQJWKDWDGPLVVLRQRIWKH FDUU\LWRXW7RDOORZDVWDWHWRFRQVWUXFWDFRQVWLWXWLRQDOO\ GHIHQGDQWjVFRHUFHGFRQIHVVLRQLQDFDSLWDOFDVHZDVVXEMHFW YDOLGGHDWKSHQDOW\VWDWXWHWKDWHVWDEOLVKHVDIDFWWREHSURYHG WR KDUPOHVV HUURU DQDO\VLV DQG ZDV QRW KDUPOHVV HUURU WRWKHMXU\EH\RQGDUHDVRQDEOHGRXEWEXWSHUPLWVMXGJHVWR 6DWWHUZKLWH  86 DW  DSSURYLQJ KDUPOHVV HUURU LJQRUHWKHVWDWXWHLQRUGHUWRLPSRVHWKHGHDWKSHQDOW\LVWKH DQDO\VLV RI DGPLVVLRQ LQ FDSLWDO VHQWHQFLQJ SURFHHGLQJ RI VDPH DV GLVSHQVLQJ ZLWK WKH UHDVRQDEOH GRXEW UHTXLUHPHQW SV\FKLDWULF WHVWLPRQ\ REWDLQHG LQ YLRODWLRQ RI WKH 6L[WK GHHPHGQRWVXEMHFWWRKDUPOHVVHUURUDQDO\VLVLQ6XOOLYDQY $PHQGPHQW  &OHPRQV   86  KROGLQJ WKDW WKH /RXLVLDQD86    m7KH6L[WK$PHQGPHQW &RQVWLWXWLRQ GRHV QRW SUHYHQW D VWDWH DSSHOODWH FRXUW IURP UHTXLUHVPRUHWKDQDSSHOODWHVSHFXODWLRQDERXWDK\SRWKHWLFDO XSKROGLQJDGHDWKVHQWHQFHWKDWLVEDVHGLQSDUWRQDQLQYDOLG MXU\jVDFWLRQRUHOVHGLUHFWHGYHUGLFWVIRUWKH6WDWHZRXOGEH DJJUDYDWLQJFLUFXPVWDQFHHLWKHUE\UHZHLJKLQJWKHHYLGHQFH VXVWDLQDEOHRQDSSHDOl ,WLVQRWWKHVDPHDVGLVSHQVLQJ RUE\KDUPOHVVHUURUUHYLHZ UHPDQGLQJIRUFODULILFDWLRQIURP ZLWK WKH PLQRU HOHPHQW RI mPDWHULDOLW\l LQ D IHGHUDO ZKLWH 0LVVLVVLSSL6XSUHPH&RXUW  FROODU WD[ FDVH IRXQG VXEMHFW WR KDUPOHVV HUURU DQDO\VLV LQ 1HGHU Y 8QLWHG 6WDWHV  86     7KHUH LV QR 7KH PDMRULW\ SURFODLPV WKDW m>Q@RQH RI WKH VHPLQDO VXJJHVWLRQ LQ WKH &KLHI sXVWLFHjV RSLQLRQ LQ 1HGHU WKDW 6XSUHPH &RXUW (LJKWK $PHQGPHQW FDVHV UHTXLULQJ WKH KDUPOHVVHUURUZRXOGSURWHFWDGLUHFWHGYHUGLFWIRUWKH6WDWH QDUURZLQJ RI WKH FODVV RI GHIHQGDQWV HOLJLEOH IRU WKH GHDWK RQDFUXFLDOILQGLQJXQGHUWKH(LJKWK$PHQGPHQWLQDFDSLWDO SHQDOW\SHUPLWVWKHRIIHQGHUWREHH[HFXWHGEHFDXVHWKHHUURU FDVH,Q1HGHUsXVWLFH6WHYHQVVSHFLILFDOO\SRLQWVRXWLQKLV ZDV GHHPHG KDUPOHVVl 0DM 2S DW  FLWLQJ)XUPDQ Y FRQFXUULQJRSLQLRQWKDWVXFKKDUPOHVVHUURUZRXOGQRWDSSO\ *HRUJLD  86     SHU FXULDP  :RRGVRQ Y WRFDSLWDOFDVHVZKHUHmWKHUHLVDVSHFLDOGDQJHUWKDWHOHFWHG 1RUWK &DUROLQD  86      *RGIUH\ Y MXGJHV PD\ OLVWHQ WR WKH YRLFH RI YRWHUV UDWKHU WKDQ *HRUJLD86    ,QQRQHRIWKRVHFDVHV ZLWQHVVHVl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nDFRQVWLWXWLRQDOO\LQGLVSHQVDEOHUHTXLUHPHQWZLWKRXWZKLFK XQGHUVWDWHODZIRULPSRVLWLRQRIGHDWKSHQDOW\YLRODWHG6L[WK WKHGHDWKSHQDOW\FDQQRWEHLPSRVHG7KH6WDWHjVDUJXPHQW $PHQGPHQWULJKWWRDMXU\WULDOLQFDSLWDOSURVHFXWLRQV DQG WKDWWKHHUURUKHUHFDQEHH[FXVHGDVKDUPOHVVZRXOGOHDGWR VWDWLQJWKDWWKH&RXUWGLGmQRWUHDFKWKH6WDWHjVDVVHUWLRQWKDW WKHFRQFOXVLRQWKDWDQ\RUDOOHOHPHQWVUHTXLUHGE\DVWDWHjV DQ\HUURUZDVKDUPOHVVlEHFDXVHWKH&RXUWRUGLQDULO\OHDYHV FDSLWDOVHQWHQFLQJV\VWHPPD\EHVXSSOLHGE\MXGJHVUDWKHU LWWRORZHUFRXUWVWRSDVVRQWKHKDUPOHVVQHVVRIWKHHUURULQ WKDQWKHMXU\1HLWKHUWKH(LJKWK$PHQGPHQWQRU2KLRjVRZQ WKHILUVWLQVWDQFH   (VSDU]DY$QGHUVRQ 1RV  1RV  (VSDU]DY$QGHUVRQ 

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sRHsDVVRDQG(VSDU]D7KHEDVLVRQ SUHOLPLQDU\KHDULQJLQYLRODWLRQRIWKH6L[WK$PHQGPHQW ZKLFK 2KLR MXGJHV GLUHFWHG D YHUGLFW RQ WKH mSULQFLSDO &RQIURQWDWLRQ&ODXVH  RIIHQGHUlDJJUDYDWRUnWKDWWKHUHZDVRQO\RQHSDUWLFLSDQWLQ WKHFULPHnDSSHDUVQRZWREHFDOOHGLQWRTXHVWLRQ7KXVWKH )XOPLQDQWH 86DW VRPHFLWDWLRQVRPLWWHG ,Q EDVLV IRU WKH 6WDWHjV KDUPOHVV HUURU DUJXPHQW LQ WKH 6WDWH )XOPLQDQWHWKH6XSUHPH&RXUWH[SODLQHGWKDW  FRXUWVKDVEHHQXQGHUPLQHGE\WKHQHZHYLGHQFH 7KHFRPPRQWKUHDGFRQQHFWLQJWKHVHFDVHVLVWKDWHDFK ,,,2WKHU,VVXHV LQYROYHGmWULDOHUURUl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mSURPRWHVSXEOLF GHQLHGDFRQWLQXDQFHWRSUHSDUHIRUWKHVHQWHQFLQJSKDVHDQG UHVSHFWIRUWKHFULPLQDOSURFHVVE\IRFXVLQJRQWKHXQGHUO\LQJ WKDWKLVULJKWVZHUHYLRODWHGWKURXJKFXPXODWLYHHUURULQWKH IDLUQHVV RI WKH WULDO UDWKHU WKDQ RQ WKH YLUWXDOO\ LQHYLWDEOH VHQWHQFLQJSKDVH SUHVHQFHRILPPDWHULDOHUURUl6DWWHUZKLWHY7H[DV86      TXRWLQJ5RVHY&ODUN86DW  (VSDU]DDOVRDGYDQFHVWKUHHJURXQGVRQZKLFKKHDVNVXV WR JUDQW D JHQHUDO ZULW LQYDOLGDWLQJ KLV FRQYLFWLRQV IRU $OWKRXJKWKH6XSUHPH&RXUWKDVUHSHDWHGO\LQGLFDWHGWKDW DJJUDYDWHGPXUGHUDQGDJJUDYDWHGUREEHU\+HFODLPVWKDW mGHDWKLVGLIIHUHQWlVHH:RRGVRQY&DOLIRUQLD86  KHZDVGHQLHGLQHIIHFWLYHDVVLVWDQFHRIFRXQVHODWWULDO      m>'@HDWKLVTXDOLWDWLYHO\GLIIHUHQWIURPDVHQWHQFH  WKDWKLVULJKWVZHUHYLRODWHGZKHQWKHVWDWHGLGQRWSURYLGH RILPSULVRQPHQWKRZHYHUORQJ'HDWKLQLWVILQDOLW\GLIIHUV KLP ZLWK DOO DYDLODEOH UHOHYDQW PDWHULDO DQG H[FXOSDWRU\ PRUH IURP OLIH LPSULVRQPHQW WKDQ D \HDU SULVRQ WHUP HYLGHQFH DQG  WKDWKLVULJKWVZHUHYLRODWHGZKHQWKHWULDO GLIIHUV IURP RQH RI RQO\ D \HDU RU WZRl  VHH DOVR 'DYLG MXGJH UHIXVHG WR UHFXVH KLPVHOI DIWHU FRQGXFWLQJ D ZLWQHVV 0F&RUG ,V 'HDWK m'LIIHUHQWl IRU 3XUSRVHV RI +DUPOHVV FHUWLILFDWLRQ KHDULQJ FRQFHUQLQJ WKUHDWV DOOHJHGO\ PDGH (UURU$QDO\VLV"6KRXOG,W%H" $Q$VVHVVPHQWRI8QLWHG DJDLQVWDSRWHQWLDOZLWQHVVE\(VSDU]DjVEURWKHU:HDGGUHVV 6WDWHV DQG /RXLVLDQD 6XSUHPH &RXUW &DVH /DZ   /D / WKHVHLQWXUQ 5HY Q  WKH&RXUWKDVQHYHUKHOGWKDW HYHU\ FRQVWLWXWLRQDO HUURU LQ D GHDWK SHQDOW\ FDVH LV  (VSDU]DY$QGHUVRQ 1RV  1RV  (VSDU]DY$QGHUVRQ 

$,QHIIHFWLYH$VVLVWDQFHRI&RXQVHO UHVXOW ZDV FRUUHFW  7KDW LV m>H@DFK RI WKHVH FRQVWLWXWLRQDO GHSULYDWLRQV LV D VLPLODU VWUXFWXUDO  GHIHFW DIIHFWLQJ WKH (VSDU]D ILUVW FODLPV WKDW KH ZDV GHQLHG LQHIIHFWLYH IUDPHZRUNZLWKLQZKLFKWKHWULDOSURFHHGVUDWKHUWKDQVLPSO\ DVVLVWDQFHRIFRXQVHODWWULDO7KRXJKKHDGYDQFHVWKLVDVWZR DQHUURULQWKHWULDOSURFHVVLWVHOIl)XOPLQDQWH 86DW VHSDUDWHJURXQGVDUJXLQJWKDWLQHIIHFWLYHDVVLVWDQFHRFFXUUHG m3XWDQRWKHUZD\WKHVH HUURUVGHSULYHGHIHQGDQWVRI ERWKZKHQKLVFRXQVHOIDLOHGWRUHDGWKHIDXOW\LQGLFWPHQWDQG µEDVLF SURWHFWLRQVj ZLWKRXW ZKLFK µD FULPLQDO WULDO FDQQRW ZKHQKHGLGQRWFRQGXFWDWKRURXJKSUHWULDOLQYHVWLJDWLRQRU UHOLDEO\VHUYHLWVIXQFWLRQDVDYHKLFOHIRUGHWHUPLQDWLRQRI REMHFWWRDOOHJHGSURVHFXWRULDOPLVFRQGXFWWKHFODLPVDUHRI JXLOWRULQQRFHQFHDQGQRFULPLQDOSXQLVKPHQWPD\EH DSLHFH7RHYDOXDWHVXFKFODLPVZHDSSO\WKHWZRSDUWWHVW UHJDUGHGDVIXQGDPHQWDOO\IDLUjl1HGHU86DW ODLGRXWLQ6WULFNODQGY:DVKLQJWRQ86 TXRWLQJ 5RVH Y &ODUN  86         :H PD\ RQO\ UHYHUVH D VWDWH FRXUW UXOLQJ LI LW LV DOWHUDWLRQLQRULJLQDO  FRQWUDU\WRRULQYROYHVDQXQUHDVRQDEOHDSSOLFDWLRQRIIHGHUDO ODZ6HH86&† G  7KH 6XSUHPH &RXUW KDV UXOHG WKDW FRQVWLWXWLRQDO HUURUV VXEMHFWWRKDUPOHVVHUURUUHYLHZLQFOXGH (VSDU]Dj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j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jV VWDWHGWKDWWKHYLFWLPZDVVKRWZKLOHUHDFKLQJIRUDQDODUP WHVWLPRQ\UHJDUGLQJWKHFLUFXPVWDQFHVRIKLVFRQIHVVLRQ DQGWKDWmVFLHQWLILFHYLGHQFHlVKRZHGWKHVKRRWLQJZDVQRW 'HODZDUH Y 9DQ $UVGDOO  86    DFFLGHQWDODOWKRXJKQRHYLGHQFHLQWKHUHFRUGVXSSRUWVWKHVH UHVWULFWLRQ RQ D GHIHQGDQWjV ULJKW WR FURVVH[DPLQH D FODLPV$OWKRXJKWKHVHVWDWHPHQWVDUHVRPHZKDWPLVOHDGLQJ ZLWQHVV IRU ELDV LQ YLRODWLRQ RI WKH 6L[WK $PHQGPHQW WKH\GRQRWZDUUDQWLVVXDQFHRIWKHZULW&RXQVHOLVIUHHWR &RQIURQWDWLRQ&ODXVH 5XVKHQY6SDLQ86 DUJXH UHDVRQDEOH LQIHUHQFHV IURP WKH HYLGHQFH VR ORQJ DV DQGQ    GHQLDORIGHIHQGDQWjVULJKWWREH HYLGHQFHRQWKHUHFRUGLVQRWPLVVWDWHG6HH8QLWHG6WDWHVY SUHVHQWDWWULDO 8QLWHG6WDWHVY+DVWLQJ86 <RXQJ86   (VSDU]DDOVRFODLPVWKDW    LPSURSHU FRPPHQW RQ GHIHQGDQWjV VLOHQFH DW WKHSURVHFXWRUSOD\HGXSRQWKHMXU\jVSDVVLRQVDQGSUHMXGLFHV WULDO LQ YLRODWLRQ RI WKH )LIWK $PHQGPHQW 6HOI LQDVNLQJIRUDFRQYLFWLRQ(VSDU]DjVWULDOFRXQVHOFRXOGZHOO ,QFULPLQDWLRQ&ODXVH +RSSHUY(YDQV86 KDYH FRQFOXGHG WKDW WKH SURVHFXWLRQjV FRPPHQWV ZHUH QRW    VWDWXWHLPSURSHUO\IRUELGGLQJWULDOFRXUWjVJLYLQJ REMHFWLRQDEOH  (YHQ DVVXPLQJ DUJXHQGR WKDW WKH\ ZHUH DMXU\LQVWUXFWLRQRQDOHVVHULQFOXGHGRIIHQVHLQDFDSLWDO  (VSDU]DY$QGHUVRQ 1RV  1RV  (VSDU]DY$QGHUVRQ 

$('3$WKHQLVWRGHWHUPLQHZKHWKHUDSSOLFDWLRQRIKDUPOHVV REMHFWLRQDEOHDQGWKDWWKHWULDOFRXQVHOVKRXOGKDYHREMHFWHG HUURU DQDO\VLV WR DQ (LJKWK $PHQGPHQW YLRODWLRQ ZDV DQ (VSDU]D GRHV QRW SURYH WKH FRPPHQWV SUHMXGLFHG KLP  ,Q XQUHDVRQDEOHDSSOLFDWLRQRIRUFRQWUDU\WR6XSUHPH&RXUW UHMHFWLQJWKLVFODLPWKH2KLRFRXUWFRQFOXGHGWKDW(VSDU]D SUHFHGHQWDVRIWKHWLPHRIWKHUHOHYDQWVWDWHFRXUWGHFLVLRQV mIDLOHGWRHVWDEOLVKWKDWWKHRXWFRPHRIKLVWULDOZRXOGKDYH EHHQGLIIHUHQWKDGKLVWULDOFRXQVHOQRWFRPPLWWHGWKHDOOHJHG 6LQFH WKH ODQGPDUN FDVH RI &KDSPDQ Y &DOLIRUQLD  HUURUVl  (VSDU]D   :/   DW   7KLV LV D 86   LQZKLFKWKH6XSUHPH&RXUWKHOGWKDWVRPH UHDVRQDEOHFRQFOXVLRQWREHGUDZQDIWHUDSSO\LQJ6WULFNODQG IHGHUDO FRQVWLWXWLRQDO HUURUV FDQ EH GHHPHG KDUPOHVV WKH 6XSUHPH&RXUWKDVIRXQGRQO\DIHZFRQVWLWXWLRQDOHUURUVWKDW (VSDU]DjVFODLPWKDWKLVFRXQVHOZDVLQHIIHFWLYHZKHQKH DUHVRIXQGDPHQWDODVWREHDXWRPDWLFDOO\UHYHUVLEOHDQGQRW IDLOHG WR FRQGXFW D SURSHU SUHWULDO LQYHVWLJDWLRQ IDLOV IRU VXEMHFWWRWKHKDUPOHVVHUURUDQDO\VLV$UL]RQDY)XOPLQDQWH VLPLODUUHDVRQV$OWKRXJKKLVFRXQVHOUHOLHGFKLHIO\RQWKH  86    VHHDOVR1HGHUY8QLWHG6WDWHV LQYHVWLJDWLRQ RI D SULYDWH LQYHVWLJDWRU DQG QHJOHFWHG WR  86     VWDWLQJ WKDW mZH KDYH UHFRJQL]HG D LQWHUYLHZ VRPH ZLWQHVVHV OLVWHG DV SRWHQWLDO JRYHUQPHQW OLPLWHGFODVVRIIXQGDPHQWDOFRQVWLWXWLRQDOHUURUVWKDWµGHI\ ZLWQHVVHV (VSDU]D LV XQDEOH WR H[SODLQ KRZ LQWHUYLHZLQJ DQDO\VLVE\mKDUPOHVVHUURUlVWDQGDUGVjl TXRWLQJ)XOPLQDQWH WKHVH LQGLYLGXDOV RU FRQGXFWLQJ D PRUH WKRURXJK  86DW 6XFKmVWUXFWXUDOlHUURUVLQFOXGHWKHJLYLQJ LQYHVWLJDWLRQZRXOGKDYHSURGXFHGDGLIIHUHQWUHVXOWDWWULDO RIDQHUURQHRXVUHDVRQDEOHGRXEWLQVWUXFWLRQVHH6XOOLYDQY +LVVLVWHUjVWHVWLPRQ\ZRXOGVWLOOKDYHEHHQSUHVHQWHGDJDLQVW /RXLVLDQD86   WKHDSSRLQWPHQWRI KLP OLNHO\ OHDGLQJ WR DQRWKHU FRQYLFWLRQ  7KXV WKH 2KLR DQ LQWHUHVWHG SDUW\jV DWWRUQH\ DV D SURVHFXWRU IRU FRQWHPSW FRXUWVDFWHGUHDVRQDEO\LQFRQFOXGLQJWKDWWKHDOOHJHGHUURUV FKDUJHV<RXQJY8QLWHG6WDWHV86     GLG QRW SUHMXGLFH (VSDU]DjV GHIHQVH  2Q KLV FODLP RI WKHH[FXVLQJRIDMXURUIRUFDXVHLQDFDSLWDOFDVHZKRZDVQRW LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO DW WULDO UHOLHI LV QRW LUUHYRFDEO\ FRPPLWWHG WR YRWH DJDLQVW WKH GHDWK SHQDOW\ ZDUUDQWHG UHJDUGOHVVRIWKHIDFWVDQGFLUFXPVWDQFHVRIWKHFDVH*UD\Y 0LVVLVVLSSL86   WKHXQODZIXOH[FOXVLRQ %%UDG\&ODLP RI PHPEHUV RI WKH GHIHQGDQWjV UDFH IURP D JUDQG MXU\ 9DVTXH]Y+LOOHU\86   WKHGHQLDO (VSDU]DDOVRDVNVWKLVFRXUWWRLVVXHWKHJHQHUDOZULWEDVHG RIWKHULJKWWRDSXEOLFWULDO:DOOHUY*HRUJLD86  RQ WKH IDFW WKDW WKH 6WDWH ZLWKKHOG PDWHULDO H[FXOSDWRU\   Q     WKH  DEULGJPHQW RI ULJKW WR VHOI HYLGHQFH IURP KLP DW WULDO  $V GLVFXVVHG DERYH WKH UHSUHVHQWDWLRQ0F.DVNOHY:LJJLQV86Q VXSSUHVVHG HYLGHQFH WHQGHG WR   LPSHDFK D ZLWQHVVjV   WKHFRPSOHWHGHQLDORIULJKWWRFRXQVHODWWULDO*LGHRQ GHVFULSWLRQRIWKHLQGLYLGXDOZKRUREEHG,VODQG9DULHW\DQG Y:DLQZULJKW86   DQGWULDOEHIRUHDELDVHG VKRW 0HODQLH *HUVKXOW]   VKRZ WKDW PRUH WKDQ RQH MXGJH7XPH\Y2KLR86    LQGLYLGXDOFRPPLWWHGWKHFULPHDQG  VKRZWKDWSROLFHDOVR KDGRWKHUVXVSHFWVLQWKHFULPHEHIRUHFKDUJLQJ(VSDU]DZLWK ,QHDFKRIWKHVHFDVHVWKHHUURUDIIHFWHGWKHIUDPHZRUNRI WKHNLOOLQJ7DNHQWRJHWKHUWKHHYLGHQFHWKURZVLQWRGRXEW WKHWULDOVRWKDWLWZDVLPSRVVLEOHWRGHWHUPLQHZKHWKHUWKH ZKHWKHU(VSDU]DZDVWKHmSULQFLSDORIIHQGHUlLQWKLVFULPH DQGWKXVPHULWVDGHDWKVHQWHQFHXQGHU2KLRODZ 7KHTXHVWLRQKHUHKRZHYHULVZKHWKHUWKHHYLGHQFHDOVR SDUDJUDSK LQ ZKLFK WKH 2KLR &RXUW RI $SSHDOV VWDWHG WKDW m:H IXUWKHU QRWH WKDW WKH ZRUGV GHDWK SHQDOW\ VSHFLILFDWLRQ DV WR WKH ILUVW FRXQW DUH WKURZV LQWR GRXEW (VSDU]DjV FRQYLFWLRQ IRU DJJUDYDWHG FOHDUO\ W\SHG RQ WKH IURQW RI WKH LQGLFWPHQWl (VSDU]D   :/  UREEHU\DQGDJJUDYDWHGPXUGHU8QGHU%UDG\Y0DU\ODQG DW  DVWDWHPXVWGLVFORVHDOOPDWHULDOH[FXOSDWRU\HYLGHQFHWRD  (VSDU]DY$QGHUVRQ 1RV  1RV  (VSDU]DY$QGHUVRQ 

GHIHQGDQW EHIRUH WULDO   86      7R DVVHUW D ,G DW   ,Q RWKHU ZRUGV LW DSSHDUV WKDW WKH 2KLR FRXUW VXFFHVVIXO %UDG\ FODLP D SHWLWLRQHU PXVW VKRZ WKDW FRQFOXGHGWKDWWKHUHZDVQRSUHMXGLFHXQGHU6WULFNODQG7KDW  HYLGHQFHIDYRUDEOHWRWKHSHWLWLRQHU  ZDVVXSSUHVVHGE\ LVDSSHOODWHFRXQVHOjVIDLOXUHWRUDLVHWKH(LJKWK$PHQGPHQW WKH JRYHUQPHQW DQG   WKHUHIRUH WKH GHIHQGDQW ZDV FODLPGLGQRWUHVXOWLQSUHMXGLFHEHFDXVHRIWKHRYHUZKHOPLQJ SUHMXGLFHG6HH6WULFNOHUY*UHHQH86  $ HYLGHQFHDJDLQVW(VSDU]D GHIHQGDQW LV SUHMXGLFHG ZKHQ mWKHUH LV D UHDVRQDEOH SUREDELOLW\ WKDW KDG WKH HYLGHQFH EHHQ GLVFORVHG WR WKH $VWKHGLVWULFWFRXUWVXJJHVWHGLWDSSHDUVWKDWWKHVWDWHFRXUW GHIHQVH WKH UHVXOW RI WKH SURFHHGLQJ ZRXOG KDYH EHHQ HQJDJHGLQDKDUPOHVVHUURUDQDO\VLV2XUWDVNXQGHUWKH GLIIHUHQWl8QLWHG6WDWHVY%DJOH\86    2XUWDVNKHUHLVWRGHWHUPLQHZKHWKHUZKHQWKHGHIHQGDQW ZDVGHSULYHGRIWKHVXSSUHVVHGHYLGHQFHKHVWLOOUHFHLYHGD  mIDLUWULDOXQGHUVWRRGDVDWULDOUHVXOWLQJLQDYHUGLFWZRUWK\ 7KH 2KLR &RXUW RI $SSHDOV GLG QRW DGGUHVV FDXVH SUHVXPDEO\

RIFRQILGHQFHl6WULFNOHU86DW  TXRWLQJ.\OHVY EHFDXVH LW IRXQG WKDW SUHMXGLFH ZDV QRW VKRZQ

:KLWOH\86      7KH GLVWULFW FRXUW VWDWHG LQ UHOHYDQW SDUW

$IWHUFRQVLGHULQJWKHHYLGHQFHZHFRQFOXGHWKDW(VSDU]DjV 7KH VWDWH FRXUW FRQFHGHG WKDW WKHUH ZDV QR FDSLWDO WULDO ZDV QRW IDWDOO\ IODZHG DW WKH JXLOW SKDVH RI WKH FDVH VSHFLILFDWLRQ REYLRXV RQ WKH IDFH RI WKH LQGLFWPHQW EXW DOWKRXJKREYLRXVO\WKHVXSSUHVVHGHYLGHQFHVKRXOGKDYHEHHQ FRQFOXGHG WKDW WKLV IDFW GLG QRW SURKLELW (VSDU]DjV FRQYLFWLRQ IRU SURGXFHG  7KH VXSSUHVVHG HYLGHQFH WHQGHG WR VKRZ WKDW FDSLWDO PXUGHU 7KLV LV VR WKH VWDWH FRXUW UHDVRQHG EHFDXVH LW  RQHZLWQHVVjVVWDWHPHQWWKDWWKHUREEHUVKRRWHULQWKHVWRUH IRXQG WKDW WKH LQGLFWPHQW ZDV VXIILFLHQW GHVSLWH WKH DEVHQFH RI

UHVHPEOHG(VSDU]DPD\KDYHEHHQZURQJDQG  WKDWDQRWKHU FHUWDLQ SUHFLVH ODQJXDJH WR SXW (VSDU]D RQ QRWLFH RI DOO RI WKH HOHPHQWV RI WKH RIIHQVH ZLWK ZKLFK KH ZDV FKDUJHG 7KXV WKH LQGLYLGXDOPD\KDYHEHHQLQYROYHGLQWKHFULPH(YHQDIWHU VWDWH FRXUW IRXQG WKDW WKH mSULQFLSDO RIIHQGHUl VSHFLILFDWLRQ ZDV WKLVKRZHYHUWKHUHUHPDLQVRWKHUVLJQLILFDQWHYLGHQFHDJDLQVW LPSOLFLW LQ WKH LQGLFWPHQW EHFDXVH QR RQH RWKHU WKDQ (VSDU]D ZDV (VSDU]D LQ SDUWLFXODU WKH WHVWLPRQ\ RI WZR LQGLYLGXDOV WR FKDUJHG ZLWK SDUWLFLSDWLQJ LQ WKH HYHQWV GHVFULEHG 7KH FRXUW ZKRP (VSDU]D DGPLWWHG VKRRWLQJ 0HODQLH *HUVKXOW]  :H VWDWHG

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µSULQFLSDO RIIHQGHUj 6WDWH Y (VSDU]D   :/  DW  >VLF@ 2KLR $SS

&&HUWLILFDWLRQ+HDULQJ 0D\     

,W DSSHDUV DFFRUGLQJO\ WKDW ZLWKRXW VD\LQJ VR H[SUHVVO\ WKH )LQDOO\(VSDU]DFODLPVKLVULJKWVZHUHYLRODWHGZKHQWKH VWDWH FRXUW HQJDJHG LQ D KDUPOHVV HUURU DQDO\VLV ILQGLQJ WKDW WKH WULDOMXGJHIDLOHGWRUHFXVHKLPVHOIDIWHUFRQGXFWLQJDSUHWULDO DEVHQFH RI WKH ZRUGV mSULQFLSDO RIIHQGHUl LQ WKH LQGLFWPHQW ZDV ZLWQHVVFHUWLILFDWLRQ KHDULQJ SXUVXDQW WR 2KLR 5 &ULP 3 QRW PHDQLQJIXO ZKHUH DV KHUH WKHUH ZDV RQO\ RQH RIIHQGHU  %  F  XQGHU ZKLFK WKH FRXUW PD\ DOORZ WKH VWDWH WR FKDUJHG LQ WKDW LQGLFWPHQW

ZLWKKROGSHUVRQDOLQIRUPDWLRQDERXWDSURVHFXWLRQZLWQHVV (VSDU]D Y $QGHUVRQ 1R &9 VOLS RS DW  (' 2KLR ZKHQWKHSURVHFXWLQJDWWRUQH\mFHUWLILHVWRWKHFRXUWWKDWWRGR 2FW   IRRWQRWHG RPLWWHG  VRPD\VXEMHFWWKHZLWQHVVRURWKHUVWRSK\VLFDORUVXEVWDQWLDO 7KH GLVWULFW FRXUW IDLOHG WR TXRWH WKH ODVW VHQWHQFH RI WKH IRUHJRLQJ  (VSDU]DY$QGHUVRQ 1RV  1RV  (VSDU]DY$QGHUVRQ 

6WDWH Y (VSDU]D 1R /   :/   DW  HFRQRPLFKDUPRUFRHUFLRQl,G7KHZLWQHVVLQTXHVWLRQ 2KLR &W $SS sXO\     XQSXEOLVKHG SHU FXULDP  KHUHZDV&DWKHULQH6WHJJ*UHJRU\(VSDU]DjVJLUOIULHQGDQG FDXVH GLVPLVVHG  1(G  2KLR     7KH 2KLR PRWKHURIKLVFKLOGZKRIHDUHGWKDW(VSDU]DjVEURWKHUVZRXOG &RXUWRI$SSHDOVHYDOXDWHGWKHDVVLJQPHQWRIHUURUXQGHUWKH KDUP KHU LI WKH\ NQHZ KHU ZKHUHDERXWV  ,Q VXSSRUW RI LWV 6WULFNODQGVWDQGDUG6HHLGDW  VHWWLQJIRUWK6WULFNODQG FHUWLILFDWLRQ UHTXHVW WKH VWDWH SURYLGHG LQIRUPDWLRQ DERXW WHVWIRULQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPV $VWRWKLV (VSDU]DjVYLROHQWSDVW$IWHUWKHKHDULQJWKHMXGJHJUDQWHG LVVXHWKH2KLR&RXUWRI$SSHDOVFRQFOXGHG WKH PRWLRQ DOORZLQJ WKH VWDWH WR H[FOXGH 6WHJJj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mLH 6XSUHPH &RXUW RI 2KLR DSSHOODQW DVVHUWHG WKDW KLV DSSHOODQWjVKLVWRU\RIYLROHQWEHKDYLRUZDVDOVRDGPLWWHGDW FRQYLFWLRQ ZDV DJDLQVW WKH PDQLIHVW ZHLJKW RI WKH WKHSHQDOW\SKDVHRIWKHWULDOEHORZl6WDWHY(VSDU]D1R/ HYLGHQFH8SRQUHYLHZERWKWKLVFRXUWDQGWKH6XSUHPH  :/DW  2KLR$SSWK'LVW0D\  &RXUW GHWHUPLQHG WKDW WKH YHUGLFW ZDV QRW DJDLQVW WKH   5DWKHUWKDQFRQWHQGLQJWKDWWKHHUURUZDVKDUPIXO PDQLIHVW ZHLJKW RI WKH HYLGHQFH  ,Q VR ILQGLQJ ERWK (VSDU]DFODLPVWKDWVXFKHUURUVDUHmVWUXFWXUDOlDQGGHPDQG FRXUWV QHFHVVDULO\ GHWHUPLQHG WKDW DIWHU YLHZLQJ WKH UHYHUVDOLQHYHU\LQVWDQFH:HGLVDJUHH7KHQDWXUHRIWKH HYLGHQFHLQDOLJKWPRVWIDYRUDEOHWRWKHSURVHFXWLRQDQ\ FULPLQDO MXVWLFH V\VWHP RIWHQ UHTXLUHV MXGJHV WR FRQVLGHU UDWLRQDO WULHU RI IDFW FRXOG KDYH IRXQG WKH HVVHQWLDO HYLGHQFH DQG WKHQ GLVPLVV LW IURP WKHLU PLQGV  6HH HJ HOHPHQWV RI WKH FULPHV SURYHQ EH\RQG D UHDVRQDEOH :LWKURZY/DUNLQ86    7KXVKDUPOHVV GRXEW6HH6WDWHYsHQNV   2KLR6WG  HUURUDQDO\VLVLVFDOOHGIRUKHUHDQGZHILQGWKH2KLRFRXUWjV $GGLWLRQDOO\WKLVFRXUWLQLWVGHFLVLRQRI0D\   FRQFOXVLRQWKDWWKHHUURUGLG(VSDU]DQRKDUPLVDUHDVRQDEOH UHYLHZLQJDSSHOODQWjVSRVWFRQYLFWLRQDSSHDODGGUHVVHG DSSOLFDWLRQRIIHGHUDOODZ WKHPHULWVRIWKLVDVVLJQPHQWRIHUURUDQGIRXQGLWQRW ZHOOWDNHQ  $V VXFK ZH ILQG WKDW WKHUH DUH QR $FFRUGLQJO\WKHMXGJPHQWRIWKH'LVWULFW&RXUWLVDIILUPHG VXEVWDQWLYHJURXQGVIRUUHOLHIXQGHUWKLVDVVLJQPHQWRI HUURU

 6WULFNODQG Y :DVKLQJWRQ  86      (VSDU]DY$QGHUVRQ 1RV  1RV  (VSDU]DY$QGHUVRQ 

BBBBBBBBBBBBBBBBB XQGHU† G  mLIWKHVWDWHFRXUWDUULYHVDWDFRQFOXVLRQ RSSRVLWHWRWKDWUHDFKHGE\>WKH6XSUHPH@&RXUWRQDTXHVWLRQ ',66(17 RIODZRULIWKHVWDWHFRXUWGHFLGHVDFDVHGLIIHUHQWO\WKDQ>WKH BBBBBBBBBBBBBBBBB 6XSUHPH@&RXUWKDVRQDVHWRIPDWHULDOO\LQGLVWLQJXLVKDEOH IDFWVl,GDW$QmXQUHDVRQDEOHDSSOLFDWLRQlRFFXUV 68+5+(,15,&+&LUFXLWsXGJHGLVVHQWLQJ7KHPDMRULW\ ZKHQ mWKH VWDWH FRXUW LGHQWLILHV WKH FRUUHFW OHJDO SULQFLSOH KROGVWKDWWKHm2KLRFRXUWVGLGQRWIROORZ2KLRGHDWKSHQDOW\ IURP >WKH 6XSUHPH@ &RXUWjV GHFLVLRQV EXW XQUHDVRQDEO\ VWDWXWHV FUHDWHG WR FRPSO\ ZLWK 6XSUHPH &RXUW FDVHV DSSOLHVWKDWSULQFLSOHWRWKHIDFWVRIWKHSULVRQHUjVFDVHl,G QDUURZLQJWKHFODVVRIRIIHQGHUVHOLJLEOHIRUWKHGHDWKSHQDOW\ 8QGHUWKLVVWDQGDUGDVWDWHFRXUWGHFLVLRQLVQRWXQUHDVRQDEOH XQGHUWKH(LJKWK$PHQGPHQWl0DM2SDWDQGWKDWWKLV VLPSO\ EHFDXVH WKH IHGHUDO FRXUW FRQFOXGHV WKDW WKH VWDWH IDLOLQJFDQQRWEHRYHUFRPHE\HPSOR\LQJmKDUPOHVVHUURUl FRXUWjVGHFLVLRQLVHUURQHRXVRULQFRUUHFW,GDW5DWKHU 0DM2SDW,DJUHHWKDWWKHVWDWHIDLOHGWRSURSHUO\ WKHIHGHUDOFRXUWPXVWGHWHUPLQHWKDWWKHVWDWHFRXUWjVGHFLVLRQ LQGLFW(VSDU]DIRUWKHRIIHQVHRIFDSLWDOPXUGHUDQGIDLOHGWR LVDQREMHFWLYHO\XQUHDVRQDEOHDSSOLFDWLRQRIIHGHUDOODZ,G LQVWUXFWWKHMXU\WRILQGDOOHOHPHQWVRIWKHRIIHQVHRIFDSLWDO DW PXUGHU+RZHYHU,GRQRWDJUHHZLWKWKHPDMRULW\WKDWWKLV HUURUFDQQRWEHVXEMHFWWRDmKDUPOHVVHUURUlDQDO\VLV 7KH:LOOLDPV&RXUWHPSKDVL]HGWKDWmFOHDUO\HVWDEOLVKHG )HGHUDOODZDVGHWHUPLQHGE\WKH6XSUHPH&RXUWlUHIHUVWR $OWKRXJKWKHPDMRULW\EDVLFDOO\VLGHOLQHVLWVHH0DM2S mWKH KROGLQJV DV RSSRVHG WR WKH GLFWD RI >WKH 6XSUHPH@ DW  WKLV FDVH LV JRYHUQHG E\ WKH $QWLWHUUURULVP DQG &RXUWjV GHFLVLRQV DV RI WKH WLPH RI WKH UHOHYDQW VWDWHFRXUW (IIHFWLYH'HDWK3HQDOW\$FWRI 3XE/1R GHFLVLRQ,GDW  6WDW     FRGLILHG DV DPHQGHG DW  86& † 6XSS  m$('3$l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o $SSHOODQWKDVQRZILOHGWKHSUHVHQWPRWLRQIRUGHOD\HG   UHVXOWHG LQ D GHFLVLRQ WKDW ZDV FRQWUDU\ WR RU UHFRQVLGHUDWLRQ LQ ZKLFK KH DVVHUWV WKDW KLV RULJLQDO LQYROYHG DQ XQUHDVRQDEOH DSSOLFDWLRQ RI FOHDUO\ DSSHOODWHFRXQVHOZDVLQHIIHFWLYHIRUIDLOLQJWRUDLVHWKH HVWDEOLVKHG )HGHUDO ODZ DV GHWHUPLQHG E\ WKH IROORZLQJDVVLJQPHQWVRIHUURULQWKHRULJLQDODSSHDORI 6XSUHPH&RXUWRIWKH8QLWHG6WDWHV RU KLVFRQYLFWLRQDQGVHQWHQFHWRWKLVFRXUW 86&† G   $66,*10(172)(552512 $33(//$17(63$5=$j6'($7+6(17(1&( ,Q:LOOLDPVY7D\ORU 86  WKH6XSUHPH ,6 92,' $1' 9,2/$7(6 7+( (,*+7+ $1' &RXUW H[SODLQHG WKH PHDQLQJ RI mFRQWUDU\ WRlDQG )2857((17+ $0(1'0(176 72 7+( mXQUHDVRQDEOH DSSOLFDWLRQl LQ WKH VWDWXWH   $ VWDWH FRXUWjV 81,7('67$7(6&2167,787,21 OHJDOGHFLVLRQLVmFRQWUDU\WRlFOHDUO\HVWDEOLVKHGIHGHUDOODZ