United States v. Schreane

U.S. Court of Appeals for the Sixth Circuit

United States v. Schreane

Opinion

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH   8QLWHG6WDWHVY6FKUHDQH 1R (/(&7521,& &,7$7,21  )(' $SS  3 WK &LU )LOH 1DPH D S BBBBBBBBBBBBBBBBB 23,1,21 81,7('67$7(6&28572)$33($/6 BBBBBBBBBBBBBBBBB )257+(6,;7+&,5&8,7 6,/(5&LUFXLWsXGJH'HIHQGDQW&ODUHQFH'DYLG6FKUHDQH BBBBBBBBBBBBBBBBB ZDVFRQYLFWHGRIEHLQJDIHORQLQSRVVHVVLRQRIDILUHDUPLQ YLRODWLRQ RI  86& ††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n&XUWLV/&ROOLHU'LVWULFWsXGJH UHJDUGLQJDEXUJODU\LQSURJUHVVDQGZDV WROGWREHRQWKH ORRNRXWIRUWZREODFNPHQLQDVPDOOUHGFDU:KLOHHQURXWH $UJXHG 0D\ WRWKHVFHQHKHREVHUYHGDYHKLFOHPDWFKLQJWKHGHVFULSWLRQ RI WKH FDU SDUNHG RQ WKH VLGH RI WKH URDG QRW IDU IURP WKH 'HFLGHGDQG)LOHG sXQH  ORFDWLRQRIWKHEXUJODU\7ZRLQGLYLGXDOVZHUHLQWKHYHKLFOH

%HIRUH .583$16.<6,/(5DQG*,/0$1&LUFXLW 7RSSLQJSXOOHGXSEHKLQGWKHYHKLFOHDQGQRWLFHGWKDWWKH sXGJHV RFFXSDQWV DSSHDUHG WR EH DUJXLQJ ZLWK RQH DQRWKHU ,PPHGLDWHO\WKHGULYHURIWKHFDU:LOODUG'XFNHWWZKRLV BBBBBBBBBBBBBBBBB 6FKUHDQHjV QHSKHZ TXLFNO\ H[LWHG WKH YHKLFOH DQG VWDUWHG WRZDUG7RSSLQJZKLOH\HOOLQJm+HKDVDJXQl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

 1R 8QLWHG6WDWHVY6FKUHDQH   8QLWHG6WDWHVY6FKUHDQH 1R

7RSSLQJWULHGWRFDOP'XFNHWWGRZQDQGEURXJKWKLPEDFN 6HUJHDQW7DUD3HGLJRZKRTXHVWLRQHG7RUUHJDQRDERXWWKH WRWKHSDWUROFDUZKHUHKHVHDUFKHGKLP:KLOHKLVDWWHQWLRQ ILUHDUPIRXQGDWWKHVFHQH7RUUHJDQRWROGKHUWKDWVKHNHSW ZDVRQ'XFNHWW7RSSLQJDOVRKDGWRZDWFK6FKUHDQHZKR WKHJXQLQDER[LQKHUKRPH7RUUHJDQRQHYHULQGLFDWHGWR UHPDLQHGLQWKHSDVVHQJHUVLGHRIWKHFDU,QDIHZPLQXWHV 3HGLJRWKDWVKHNHSWWKHILUHDUPLQKHUFDU 2IILFHU(UYLQ0RUJDQDUULYHGDWWKHVFHQH+HZDVZDUQHGE\ 7RSSLQJWKDWm7KHUHjVDJXQVRPHZKHUHl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sXO\ ZKLOHVWLOOLQVWDWHFXVWRG\DIHGHUDOJUDQGMXU\ UROOHG XS  1HLWKHU 0RUJDQ QRU 7RSSLQJ VDZ WKH JXQ LQ UHWXUQHG DQ LQGLFWPHQW FKDUJLQJ 6FKUHDQH ZLWK EHLQJ DQ 6FKUHDQHjVSRVVHVVLRQ DUPHGFDUHHUFULPLQDOLQXQODZIXOSRVVHVVLRQRIDILUHDUP YLRODWLRQVRI86&††  J  DQG  H 7KHUHDIWHU $IWHU6FKUHDQHH[LWHGWKHYHKLFOH0RUJDQDUUHVWHGKLPDQG WKH8QLWHG6WDWHVORGJHGDIHGHUDOGHWDLQHUDJDLQVW6FKUHDQH SODFHGKLPLQWKHEDFNRIKLVSDWUROFDU7RSSLQJWKHQVSRNH RQs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jV6HUYLFHZDVQRWQRWLILHGRIWKHGLVSRVLWLRQRIKLV WKHH[LVWHQFHRIWKHJXQWKDWKHDFFXVHG'XFNHWWRIEHLQJWKH VWDWH FDVH XQWLO sXO\    :KHQ ILQDOO\ QRWLILHG WKH WUXHSRVVHVVRURIWKHJXQRUWKDWKHGHQLHGGURSSLQJWKHJXQ JRYHUQPHQW LPPHGLDWHO\ SODFHG D VHFRQG IHGHUDO GHWDLQHU LQWKHJUDVV GDWHGsXO\DJDLQVW6FKUHDQH2Qs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sDQXDU\   RYHU WZR \HDUV DQG ILYH PRQWKV DIWHU WKH 1R 8QLWHG6WDWHVY6FKUHDQH   8QLWHG6WDWHVY6FKUHDQH 1R

LQGLFWPHQW6FKUHDQHjVWULDOFRPPHQFHG+HZDVFRQYLFWHG RIVSHHG\WULDOl,GDWm5DWKHUWKH\DUHUHODWHGIDFWRUV DQG VXEVHTXHQWO\ VHQWHQFHG WR D PRQWK WHUP WR UXQ DQG PXVW EH FRQVLGHUHG WRJHWKHU ZLWK VXFK RWKHU FRQVHFXWLYHO\ZLWK6FKUHDQHjVQLQH\HDUVWDWHSULVRQVHQWHQFH FLUFXPVWDQFHVDVPD\EHUHOHYDQWl,G ,,$1$/<6,6 /HQJWKRI'HOD\ $6SHHG\7ULDO 7KH ILUVW IDFWRU VHUYHV D GXDO IXQFWLRQ  )LUVW LW LV D WKUHVKROGUHTXLUHPHQW LIWKHGHOD\LVQRWXQFRPPRQO\ORQJ 6FKUHDQH FRQWHQGV WKDW WKH WZHQW\QLQH PRQWK GHOD\ MXGLFLDOH[DPLQDWLRQFHDVHV6HH'RJJHWW86DW EHWZHHQ KLV LQGLFWPHQW DQG WULDO YLRODWHG KLV 6L[WK VWDWLQJ WKDW mE\ GHILQLWLRQ >D GHIHQGDQW@ FDQQRW FRPSODLQ $PHQGPHQWULJKWWRDVSHHG\WULDOm,QGHWHUPLQLQJZKHWKHU WKDWWKHJRYHUQPHQWKDVGHQLHGKLPDµVSHHG\jWULDOLILWKDV D GHIHQGDQWjV ULJKW WR D VSHHG\ WULDO KDV EHHQ YLRODWHG DQ LQIDFWSURVHFXWHGKLVFDVHZLWKFXVWRPDU\SURPSWQHVVl VHH DSSHDOVFRXUWUHYLHZVTXHVWLRQVRIODZGHQRYRDQGTXHVWLRQV DOVR &DLQ Y 6PLWK  )G   WK &LU   RIIDFWXQGHUWKHFOHDUO\HUURQHRXVVWDQGDUGl8QLWHG6WDWHV H[SODLQLQJWKDWWKHOHQJWKRIWKHGHOD\VHUYHVDVDmWULJJHULQJ Y6PLWK )G WK&LU   FLWDWLRQRPLWWHG  PHFKDQLVPl 2QFHWKLVWKUHVKROGLVVDWLVILHGWKLVILUVWIDFWRU FHUWGHQLHG 86    PXVWEHFRQVLGHUHGDVRQH IDFWRUDPRQJWKHVHYHUDOLQWKH VSHHG\WULDODQDO\VLV6HH'RJJHWW86DW$GHOD\ 7KH6L[WK$PHQGPHQWJXDUDQWHHVWKDWm>L@QDOOFULPLQDO DSSURDFKLQJRQH\HDULVSUHVXPSWLYHO\SUHMXGLFLDO,GDW SURVHFXWLRQVWKHDFFXVHGVKDOOHQMR\WKHULJKWWRDVSHHG\DQG Q  ,Q WKH LQVWDQW FDVH WKH GLVWULFW FRXUW IRXQG DQG WKH SXEOLFWULDOl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mGLIIHUHQWZHLJKWV WREHDmIXQFWLRQDOlRQH LWZDVIRUPXODWHGWRGHDOZLWKWKH VKRXOG EH DVVLJQHG WR GLIIHUHQW UHDVRQVl   *RYHUQPHQWDO mYDJXHlmDPRUSKRXVlDQGmVOLSSHU\lQDWXUHRIWKHULJKWLQ GHOD\VPRWLYDWHGE\EDGIDLWKKDUDVVPHQWRUDWWHPSWVWRVHHN TXHVWLRQ%DUNHU86DW7KXVFRQVLVWHQWZLWK DWDFWLFDODGYDQWDJHZHLJKKHDYLO\DJDLQVWWKHJRYHUQPHQW WKLV LQTXLU\ QR RQH IDFWRU FRQVWLWXWHV D mQHFHVVDU\ RU 6HHLG VHHDOVR8QLWHG6WDWHVY0DULRQ86 VXIILFLHQWFRQGLWLRQWRWKHILQGLQJRIDGHSULYDWLRQRIWKHULJKW    KDUDVVPHQWLVDQLPSURSHUUHDVRQIRUGHOD\ 8QLWHG 6WDWHVY:KLWH )G WK&LU   m'HOD\V LQWHQGHGWRVHFXUHDWDFWLFDODGYDQWDJHZHLJKKHDYLO\DJDLQVW  WKH JRYHUQPHQWl   m$ PRUH QHXWUDO UHDVRQ VXFK DV +LV WULDO FRPPHQFHG WZR \HDUV ILYH PRQWKV DQG HOHYHQ GD\V DIWHU WKH LQGLFWPHQW )RU FODULW\ ZH UHIHU WR WKLV GHOD\ DV D WZHQW\QLQH PRQWK QHJOLJHQFH RU RYHUFURZGHG FRXUWV VKRXOG EH ZHLJKWHG OHVV GHOD\ KHDYLO\ EXW QHYHUWKHOHVV VKRXOG EH FRQVLGHUHG VLQFH WKH XOWLPDWHUHVSRQVLELOLW\IRUVXFKFLUFXPVWDQFHVPXVWUHVWZLWK  WKHJRYHUQPHQWUDWKHUWKDQZLWKWKHGHIHQGDQWl%DUNHU 6FKUHDQH GRHV QRW DOOHJH WKDW KLV ULJKWV ZHUH YLRODWHG XQGHU WKH 6SHHG\ 7ULDO $FW  86& ††  86DW VHHDOVR6WUXQNY8QLWHG6WDWHV86 1R 8QLWHG6WDWHVY6FKUHDQH   8QLWHG6WDWHVY6FKUHDQH 1R

    XQGHUVWDIIHG SURVHFXWRUjV RIILFH LV D QHXWUDO VHFRQG %DUNHU IDFWRU HVVHQWLDOO\ IDYRUV QR RQH  7KDW LV UHDVRQIRUGHOD\ $mYDOLGUHDVRQlIRUDGHOD\VXFKDVDQ QHLWKHUSDUW\LVUHDOO\mPRUHWREODPHlIRUWKHWRWDOGHOD\LQ XQDYDLODEOHZLWQHVVZHLJKVLQIDYRURIWKHJRYHUQPHQW6HH WKH SURVHFXWLRQ RI WKLV FDVH  6HH HJ 8QLWHG 6WDWHV Y %DUNHU86DW VHHDOVR8QLWHG6WDWHVY*ULPPRQG 2j'HOO)G WK&LU  H[SODLQLQJWKDW )G WK&LU  m9DOLGUHDVRQVIRUGHOD\LQJD EDVHGRQWKHIDFWVRIWKHFDVHWKHm'HIHQGDQWjVFXOSDELOLW\ WULDODUHZHLJKWHGLQIDYRURIWKH*RYHUQPHQWl FHUWGHQLHG ZLWK UHVSHFW WR GHOD\ LV DW OHDVW HTXDO WR WKDW RI WKH 86   7DNDFVY(QJOH)G WK JRYHUQPHQW7KXVQHLWKHUSDUW\LVFRPSOHWHO\IUHHRIEODPH &LU   H[SODLQLQJWKDWDYDOLGGHOD\mZHLJKVLQIDYRURI IRUWKHHQVXLQJGHOD\Vl  WKHJRYHUQPHQWl )LQDOO\LWVKRXOGEHQRWHGWKDWWKHVHFRQG %DUNHUIDFWRUmLVQRWDVHDUFKIRUDEODPHOHVVSDUW\l:LOVRQ 7KHILUVWGHOD\LQWKLVFDVHZDVDSSUR[LPDWHO\ILIWHHQDQG Y0LWFKHOO)G  WK&LU LQVWHDGWKH RQHKDOIPRQWKVDQGLWVSDQQHGIURPsXO\ ZKHQD FRQFHUQ LV ZLWK mZKHWKHU WKH JRYHUQPHQW RU WKH FULPLQDO IHGHUDO JUDQG MXU\ UHWXUQHG DQ LQGLFWPHQW WR 1RYHPEHU  GHIHQGDQWLVPRUHWREODPHIRU>WKH@GHOD\l'RJJHWW  ZKHQ6FKUHDQHZDVVHQWHQFHGLQVWDWHFRXUW7KLVGHOD\ 86DW ZDV GXH WR WKH REYLRXV QHHG WR DOORZ WKH GHIHQGDQW WR EH SURVHFXWHGE\WKH6WDWHZLWKRXWLQWHUIHUHQFHE\WKHIHGHUDO ,Q WKH LQVWDQW FDVH QRWKLQJ LQ WKH UHFRUG VXJJHVWVDQG JRYHUQPHQWm:KHQDGHIHQGDQWYLRODWHVWKHODZVRIVHYHUDO 6FKUHDQHGRHVQRWDUJXHWKDWWKHGHOD\WKDWRFFXUUHGLQWKH GLIIHUHQW VRYHUHLJQV DV ZDV WKH FDVH KHUH DW OHDVW RQH SURVHFXWLRQ RI WKLV FDVH ZDV PRWLYDWHG E\ EDG IDLWK VRYHUHLJQDQGSHUKDSVPRUHZLOOKDYHWRZDLWLWVWXUQDWWKH KDUDVVPHQW RU D JRYHUQPHQWDO GHVLUH WR VHHN D WDFWLFDO SURVHFXWRULDO WXUQVWLOHl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jVVWDWHVHQWHQFH7KH SURFHHGLQJV EHIRUH UHOLQTXLVKLQJ FXVWRG\ WR DQRWKHU VHFRQGFRQVLVWVRIDOOWLPHSHULRGVVXEVHTXHQWWR6FKUHDQHj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mQHFHVVDULO\FRPSHOV KDYHUXQWKHLUFRXUVHmZRXOGEHWRPLUHWKHVWDWHDQGIHGHUDO FRXUWVWRDSSURDFKVSHHG\WULDOFDVHVRQDQDGKRFEDVLVl WKH V\VWHPVLQLQQXPHUDEOHRSSRVLQJ ZULWVWRLQFUHDVHLQPDWH WUDQVSRUWDWLRQEDFNDQGIRUWKEHWZHHQWKHVWDWHDQGIHGHUDO V\VWHPV ZLWK FRQVHTXHQW DGGLWLRQDO VDIHW\ ULVNV DQG  DGPLQLVWUDWLYHFRVWVDQGJHQHUDOO\WRWKURZSDUDOOHOIHGHUDO 'HWHUPLQLQJ WKDW WKHUH H[LVWV D YDOLG UHDVRQ IRU WKH JRYHUQPHQWjV DQGVWDWHSURVHFXWLRQVLQWRFRQIXVLRQDQGGLVDUUD\l8QLWHG GHOD\ GRHV QRW SUHYHQW D ILQGLQJ WKDW D GHIHQGDQWjV ULJKW WR D VSHHG\ WULDO KDV EHHQ YLRODWHG 6HH *ULPPRQG   )G DW  Q $ VSHHG\ WULDO 6WDWHVY7KRPDV)G WK&LU FHUWGHQLHG DQDO\VLV UHTXLUHV D EDODQFLQJ RI DOO IRXU RI%DUNHUjV IDFWRUV6HH %DUNHU   86      0RUHRYHU mLI WKH JRYHUQPHQW PXVW  86 DW  H[SODLQLQJ WKDW DOO IRXU IDFWRUV mPXVW EH FRQVLGHUHG SURVHFXWH WKH GHIHQGDQW ZLWKRXW NQRZLQJ ZKDW KLV WRJHWKHUl  1R 8QLWHG6WDWHVY6FKUHDQH  8QLWHG6WDWHVY6FKUHDQH 1R

SXQLVKPHQW ZLOO EH DW WKH VWDWH OHYHO LW ZLOO EH XQDEOH WR WKH8QLWHG6WDWHVRIWKHGLVSRVLWLRQRIWKHGHIHQGDQWjVFDVH FRQVLGHUWKHVWDWHjVSXQLVKPHQWLQGHWHUPLQLQJZKDWFKDUJHV XQWLOHLJKWDQGRQHKDOIPRQWKVDIWHUWKHIDFW   WKHIHGHUDO WREULQJ>LIDQ\DWDOODVZHOODVZKDWSXQLVKPHQWWRVHHN@ SURVHFXWLRQjV IDLOXUH WR IROORZXS RQ WKH VWDWXV RI WKH WRPDNHWKHWRWDOLW\RIWKHVWDWHDQGIHGHUDOFRQYLFWLRQV>DQG GHIHQGDQWjV VWDWH SURFHHGLQJV IRU DSSUR[LPDWHO\ HLJKW DQG SXQLVKPHQWV@FRPPHQVXUDWHZLWKWKHFULPHl,GDWQ RQHKDOI PRQWKV IURP 1RYHPEHU    ZKHQ WKH 7KXV m>V@LPSO\ ZDLWLQJ IRU DQRWKHU VRYHUHLJQ WR ILQLVK GHIHQGDQWZDVVHQWHQFHGLQVWDWHFRXUWWRsXO\ZKHQ SURVHFXWLQJDGHIHQGDQWLVZLWKRXWTXHVWLRQDYDOLGUHDVRQIRU VWDWH DXWKRULWLHV ILQDOO\ QRWLILHG WKH 8QLWHG 6WDWHV RI WKH GHOD\lWKDWZHLJKVLQIDYRURIWKHJRYHUQPHQW*ULPPRQG GLVSRVLWLRQ RI KLV VWDWH FDVH    WKH IHGHUDO JRYHUQPHQWjV )GDW VHHDOVR8QLWHG6WDWHVY/D%RUGH )G IDLOXUHWRPRYHIRUZDUGZLWKLWVSURVHFXWLRQRIWKHGHIHQGDQW   WK&LU   SHUFXULDP  UHYHUVLQJWKHGLVWULFW GXULQJ WKH QHDUO\ ILYH DQG RQHKDOI PRQWK SHULRG EHWZHHQ FRXUWjVGLVPLVVDORIDQLQGLFWPHQWDQGKROGLQJWKDWDWZHQW\ ZKHQ WKH VHFRQG GHWDLQHU ZDV ORGJHG DQG ZKHQ WKH RQH PRQWK GHOD\ GLG QRW YLRODWH D GHIHQGDQWjV ULJKW WR D GHIHQGDQWjVWULDOFRPPHQFHGRQsDQXDU\ DQG  WKH VSHHG\WULDOEHFDXVHLQDGGLWLRQWRWKHQHXWUDOUHDVRQRIDQ GHIHQGDQWjVIDLOXUHWRLQYRNHKLVVSHHG\WULDOULJKWVIROORZLQJ RYHUFURZGHG GRFNHW WKH IHGHUDO GLVWULFW FRXUW UHOLQTXLVKHG UHFHLSWRIWKHVHFRQGIHGHUDOGHWDLQHUZKLFKZHGLVFXVVDQG FXVWRG\RIWKHDFFXVHGWRDQRWKHUMXULVGLFWLRQLQRUGHUIRUWKH ZHLJKVHSDUDWHO\EHORZLQWKHWKLUG%DUNHUIDFWRUGHVSLWHLWV GHIHQGDQWWRVWDQGWULDOLQWKDWMXULVGLFWLRQ 7RVRKROGGRHV FOHDUO\ FRQWULEXWLQJ WR WKH GHOD\  $OWKRXJK QHLWKHU SDUW\ QRWVXJJHVWmWKDWDSHQGLQJVWDWHSURVHFXWLRQLQDQ\VHQVHWROOV VKRXOGEHSHQDOL]HGE\WKHILUVWDQGVHFRQGFRQVLGHUDWLRQVDV WKHUXQQLQJRIWKH6L[WK$PHQGPHQWSHULRGRIGHOD\l UDWKHU WKH\DSSHDUWREHWKHUHVXOWRIWKH6WDWHjVIDLOXUHWRSURSHUO\ LW VKRXOG EH XQGHUVWRRG DV mD IDFWRU LQ WKH JRYHUQPHQWjV KDQGOH WKH IHGHUDO GHWDLQHU WKH WKLUG DQG IRXUWK UHDVRQV IDYRUWREHZHLJKWHGLQFRQVLGHULQJWKHOHQJWKRIWKHGHOD\ ZHLJKLQIDYRURIWKHGHIHQGDQW WKHSUHMXGLFHWRWKHDFFXVHGDQGWKHDFFXVHGjVDVVHUWLRQRI ULJKWl7KRPDV)GDW$FFRUGLQJO\LQWKLVFDVHWKH 7KHIHGHUDOJRYHUQPHQWZDVLQDSRVLWLRQWRFKHFNRQWKH IHGHUDO JRYHUQPHQWjV SDWLHQFH LQ DOORZLQJ WKH 6WDWH RI VWDWXVRIWKHGHIHQGDQWj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mQHXWUDOl UHDVRQV IRU ZHLJK LQ IDYRU RI WKH GHIHQGDQW  7KHVH UHDVRQV LQFOXGH GHOD\ WKDW VKRXOG ZHLJK DJDLQVW WKH JRYHUQPHQW 6HH %DUNHU   86 DW

 WKH6WDWHjVDSSDUHQWIDLOXUHWRQRWLI\WKHGHIHQGDQWRIWKH  6WUXQN   86 DW  ,Q DOO WKUHH H[DPSOHV IDXOW FDQ EH DWWULEXWHG

ILUVWIHGHUDOGHWDLQHU   WKH6WDWHjVDSSDUHQWIDLOXUHWRQRWLI\ WR WKH DFWLRQV RU RPLVVLRQV RI WKH SURVHFXWLQJ JRYHUQPHQW RU RWKHUZLVH WR D GHILFLHQF\ LQ WKH FULPLQDO V\VWHP LWVHOI ,Q WKH LQVWDQW FDVH WKH IDLOXUH WR SURYLGH QRWLILFDWLRQ WR WKH GHIHQGDQW ZDV QRW WKH UHVXOW RI JRYHUQPHQWDO HUURU RU LQDGHTXDFLHV LQ WKH IHGHUDO FULPLQDO V\VWHP UDWKHU WKH HUURU VWHPPHG IURP WKH 6WDWHjV DSSDUHQW IDLOXUH WR SURSHUO\ KDQGOH WKH GHWDLQHU  $OWKRXJK WKH GLVWULFW FRXUW IRXQG WKDW 6FKUHDQH ZDV mLQIRUPHGl RI /LNHZLVH WKH 6WDWH DSSHDUV WR EH DW IDXOW LQ ZDLWLQJ HLJKW DQG RQHKDOI WKH FKDUJHV DJDLQVW KLP ZKHQ WKH ILUVW GHWDLQHU ZDV ORGJHG WKHUH DSSHDUV PRQWKV WR QRWLI\ IHGHUDO DXWKRULWLHV RI WKH UHVROXWLRQ RI WKH GHIHQGDQWjV WR EH QRWKLQJ LQ WKH UHFRUG WKDW VXSSRUWV WKLV IDFWXDO ILQGLQJ $Q FDVH GHVSLWH DQ H[SHFWDWLRQ WKDW LW ZRXOG GR VR SURPSWO\ DIWHU WKH VWDWH HYLGHQWLDU\ KHDULQJ ZDV QRW KHOG RQ WKH LVVXH DQG WKH GHIHQGDQW SURFHHGLQJV ZHUH FRPSOHWHG 7KXV EHFDXVH ERWK SDUWLHV DSSHDU WR KDYH VSHFLILFDOO\ FKDOOHQJHV WKLV ILQGLQJ RQ DSSHDO :H QHHG QRW GHWHUPLQH FOHDQ KDQGV ZLWK UHJDUG WR WKH ILUVW DQG VHFRQG UHDVRQV IRU GHOD\ WKH ZKHWKHU WKLV ILQGLQJ ZDV FOHDUO\ HUURQHRXV KRZHYHU EHFDXVH ZH DVVXPH 6WDWHjV PLVWDNHV ZLOO QRW EH IDFWRUHG DJDLQVW HLWKHU SDUW\ 1R 8QLWHG6WDWHVY6FKUHDQH   8QLWHG6WDWHVY6FKUHDQH 1R

$OWKRXJKWKHJRYHUQPHQWPD\KDYHUHDVRQDEO\H[SHFWHGWKDW WKHUHDVRQVZHKDYHDOUHDG\LGHQWLILHGDVFRQWULEXWLQJWRWKH WKH 6WDWH ZRXOG SURPSWO\ QRWLI\ LW RI WKH GHIHQGDQWjV GHOD\ DYDLODELOLW\ZKHQWKHJRYHUQPHQWIDLOHGWRUHFHLYHDQ\QRWLFH DIWHUWKHSDVVDJHRIDFRQVLGHUDEOHSHULRGRIWLPHUHDVRQDEOH 'HIHQGDQWjV$VVHUWLRQRIKLV6SHHG\7ULDO5LJKWV GLOLJHQFHUHTXLUHVWKHJRYHUQPHQWWRIROORZXSRQWKHPDWWHU 6HH5HGGY6RZGHUV )G  WK&LU  7XUQLQJ WR WKH WKLUG IDFWRU RI WKH %DUNHU WHVW 6FKUHDQH H[SODLQLQJWKDWWKHm>W@KHSURVHFXWRUDQGWKHFRXUWKDYHDQ DUJXHVWKDWEHFDXVHKHGLGQRWNQRZRIKLVIHGHUDOLQGLFWPHQW DIILUPDWLYHFRQVWLWXWLRQDOREOLJDWLRQWRWU\WKHGHIHQGDQWLQD EHIRUHKHZDVVHUYHGZLWKWKHVHFRQGGHWDLQHU RQ sXO\ WLPHO\PDQQHUl  FLWDWLRQVRPLWWHG VHHDOVR3D\QHY5HHV KHFRXOGQRWKDYHGHPDQGHGDVSHHG\WULDODQ\WLPH  )G   WK &LU    ILQGLQJ WKDW D EHIRUH WKDW GDWH  7R WKLV DUJXPHQW WKH JRYHUQPHQW RIIHUV MXULVGLFWLRQ KDV WKH UHVSRQVLELOLW\ WR mPRY>H@ WRZDUG D QRWKLQJLQUHVSRQVH$FFRUGLQJO\WKHGHIHQGDQWFDQQRWEH UHDVRQDEO\ SURPSW GLVSRVLWLRQ RI >DQ@ LQGLFWPHQWl HYHQ EODPHG IRU QRW LQYRNLQJ KLV ULJKW WR D VSHHG\ WULDO EHIRUH mZKHUHDGHIHQGDQWLVLQFDUFHUDWHGLQDQRWKHUMXULVGLFWLRQRQ sXO\6HH8QLWHG6WDWHVY%URZQ )G SHQGLQJFKDUJHVl )DLOXUHWRGRVRSODFHVmPRUHEODPHlRQ WK &LU   H[SODLQLQJ WKDW D GHIHQGDQW VKRXOG QRW EH WKHJRYHUQPHQW6HH'LFNH\Y)ORULGD 86 SHQDOL]HGIRUQRWLQYRNLQJKLVVSHHG\WULDOULJKWVZKHQWKH    m$OWKRXJKDJUHDWPDQ\DFFXVHGSHUVRQVVHHNWRSXW JRYHUQPHQW KDV QRW SUHVHQWHG VXIILFLHQW SURRI WKDW WKH RIIWKHFRQIURQWDWLRQDVORQJDVSRVVLEOHWKHULJKWWRDSURPSW DFFXVHG mNQHZl KH KDG EHHQ LQGLFWHG   8QLWHG 6WDWHV Y LQTXLU\LQWRFULPLQDOFKDUJHVLVIXQGDPHQWDODQGWKHGXW\RI 0XQGW )G WK&LU   GHFOLQLQJWRGUDZWKH WKHFKDUJLQJDXWKRULW\LVWRSURYLGHDSURPSWWULDOl $OVR LQIHUHQFHWKDWWKHGHIHQGDQWNQHZRIKLVLQGLFWPHQWSULRUWR WKHUHFRUGLVVLOHQWRQZK\WKHUHZDVDQHDUO\ILYHDQGRQH KLVDUUHVWDQGILQGLQJWKDWDGHIHQGDQWjVIDLOXUHWRDVVHUWKLV KDOIPRQWKGHOD\EHWZHHQVHUYLFHRIWKHVHFRQGGHWDLQHUDQG ULJKW FDQQRW EH KHOG DJDLQVW KLP ZKHQ WKH JRYHUQPHQW FRPPHQFHPHQWRIWULDO%HFDXVHWKHJRYHUQPHQWKDVIDLOHG SUHVHQWVLQVXIILFLHQWHYLGHQFHRIWKHGHIHQGDQWjVNQRZOHGJH WRH[SODLQRUHYHQDGGUHVVWKLVGHOD\ZHDWWULEXWHWKLVGHOD\ RIWKHLQGLFWPHQW  WR WKH JRYHUQPHQW  6HH 5HGG   )G DW  m8QH[SODLQHGGHOD\LVZHLJKWHGDJDLQVWWKHSURVHFXWLRQl 6FKUHDQH FRQFHGHV KRZHYHU WKDW IROORZLQJ WKH VHFRQG FLWDWLRQVRPLWWHG  GHWDLQHUKHGLGQRWDVVHUWKLVULJKWWRDVSHHG\WULDOLQDWLPHO\ IDVKLRQ$V6FKUHDQHDFNQRZOHGJHVKHmQHYHULQYRNHGKLV ,Q VXP DOWKRXJK QRW DQ H[DFW VFLHQFH EDVHG RQ WKH ULJKWWRDVSHHG\WULDOXQWLO'HFHPEHUlZKHQ FLUFXPVWDQFHVRIWKLVFDVHHDFKRIWKHWZRURXJKO\HTXLYDOHQW GHIHQVHFRXQVHOILOHGDPRWLRQWRGLVPLVVWKHLQGLFWPHQWOHVV WLPHSHULRGVLQWKHWZHQW\QLQHPRQWKGHOD\IDYRUVDGLIIHUHQW WKDQ RQH PRQWK EHIRUH WULDO  6FKUHDQHjV IRXUPRQWK DQG SDUW\7KXVQHLWKHUSDUW\LVUHDOO\mPRUHWREODPHlIRUWKH WKUHHZHHN GHOD\ LQ LQYRNLQJ KLV VSHHG\ WULDO ULJKW ZHLJKV WRWDO GHOD\ LQ WKLV FDVH   &I 2j'HOO  )G DW  DJDLQVWKLP6HH:LOVRQ)GDW  H[SODLQLQJWKDWWKH H[SODLQLQJWKDWmDQ\GHOD\DWWULEXWDEOHWRWKHJRYHUQPHQWLV WKLUG IDFWRU LQ D VSHHG\WULDO DQDO\VLV FDOOV RQ FRXUWV mWR EDODQFHG E\ 'HIHQGDQWjV RZQ VWUDWHJLF PDFKLQDWLRQVl  GHWHUPLQH ZKHWKHU WKH GHIHQGDQW WLPHO\ DVVHUWHG KLV 6L[WK &RQVHTXHQWO\XQGHURXUDGKRFDQDO\VLVWKHVFDOHVRIMXVWLFH $PHQGPHQWULJKWVl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

  QRWLQJWKDWFRXUWVDUHIUHHWRmZHLJKWKHIUHTXHQF\ SUHVHQFHRISODVWLFJORYHVIRXQGRXWVLGHRIWKHGULYHUjVVLGHRI DQGIRUFHRIWKHREMHFWLRQVlDQGHPSKDVL]LQJWKDWmIDLOXUHWR WKHFDUDQGZKHWKHUWKHSDVVHQJHUZLQGRZZDVUROOHGGRZQ DVVHUWWKHULJKWZLOOPDNHLWGLIILFXOWIRUDGHIHQGDQWWRSURYH GXULQJ WKH DUUHVW GLG QRW XQGHUPLQH KLV GHIHQVH  UDWKHU LW WKDWKHZDVGHQLHGDVSHHG\WULDOl 8QLWHG6WDWHVY7KRPDV ZHDNHQHGWKHSURVHFXWLRQjVFDVH$VWKH6XSUHPH&RXUWKDV )G  WK&LU  m$GHIHQGDQWjVIDLOXUHWR REVHUYHGm>D@VWKHWLPHEHWZHHQWKHFRPPLVVLRQRIWKHFULPH DVVHUWKLVULJKWVLQDWLPHO\IDVKLRQZHLJKVKHDYLO\DJDLQVWKLV DQGWKHWULDOOHQJWKHQVZLWQHVVHVPD\EHFRPHXQDYDLODEOHRU 6L[WK$PHQGPHQWFODLPl  WKHLU PHPRULHV PD\ IDGH  ,I WKH ZLWQHVVHV VXSSRUW WKH SURVHFXWLRQ LWV FDVH ZLOO EH ZHDNHQHG    >DV@ LW LV WKH 3UHMXGLFH SURVHFXWLRQZKLFKFDUULHVWKHEXUGHQRISURRIl,GDW 7KXV WKH SDUWLDO PHPRU\ ODSVHV RI WKH SURVHFXWLRQjV NH\ 7KH ODVW %DUNHU IDFWRU LV FRQFHUQHG ZLWK WKH SUHMXGLFH ZLWQHVVHVZKLFKGHIHQVHFRXQVHOZDVIUHHWRKLJKOLJKWGXULQJ VXIIHUHG E\ 6FKUHDQH  $ GHIHQGDQW PXVW VKRZ WKDW WULDOZRUNHGWRWKHDGYDQWDJHRI6FKUHDQH mVXEVWDQWLDOSUHMXGLFHlKDVUHVXOWHGIURPWKHGHOD\:KLWH )GDW TXRWLQJ8QLWHG6WDWHVY'H&OXH )G 1H[W 6FKUHDQH DUJXHV WKDW KH ZDV SUHMXGLFHG EHFDXVH   WK &LU     7KH 6XSUHPH &RXUW KDV 6HUJHDQW 3HGLJR ZKR ZDV FDOOHG WR UHEXW 7RUUHJDQRjV LGHQWLILHG WKUHH UHOHYDQW IRUPV RI SUHMXGLFH LQ VSHHG\ WULDO WHVWLPRQ\ZDVSHUPLWWHGWRUHIHUWRLQYHVWLJDWRU\QRWHVRIDQ FDVHV    mRSSUHVVLYHSUHWULDOLQFDUFHUDWLRQl   mDQ[LHW\ LQLWLDO LQWHUYLHZ ZLWK 7RUUHJDQR LQ ZKLFK 7RUUHJDQR PDGH DQGFRQFHUQRIWKHDFFXVHGl DQG  mµWKHSRVVLELOLW\WKDW>WKH LQFRQVLVWHQW VWDWHPHQWV ZLWK KHU WULDO WHVWLPRQ\  6FKUHDQH DFFXVHGjV@GHIHQVHZLOOEHLPSDLUHGjE\GLPPLQJPHPRULHV DUJXHVWKDW3HGLJRjVWHVWLPRQ\PDGH7RUUHJDQRORRNDVLIVKH DQGORVVRIH[FXOSDWRU\HYLGHQFHl'RJJHWW86DW ZDVO\LQJZKHQVKHZDVMXVWVXIIHULQJIURPDPHPRU\ODSVH TXRWLQJ%DUNHU86DW  DOWHUDWLRQLQRULJLQDO  7KLVDUJXPHQWLVZKROO\PHULWOHVV5HJDUGOHVVRIZKHQDMXU\ m2IWKHVHWKHPRVWVHULRXVLVWKHODVWEHFDXVHWKHLQDELOLW\RI LV HPSDQHOHG IRU VSHHG\ WULDO SXUSRVHV  DV D PDWWHU RI DGHIHQGDQWDGHTXDWHO\WRSUHSDUHKLVFDVHVNHZVWKHIDLUQHVV HYLGHQWLDU\ODZDSDUW\LVIUHHWRFKDOOHQJHDWULDOZLWQHVVjV RIWKHHQWLUHV\VWHPl%DUNHU86DW WHVWLPRQ\ ZLWK SULRU LQFRQVLVWHQW VWDWHPHQWV  6HH 8QLWHG 6WDWHVY0F&DOO)G    WK&LU   QR ,QWKHLQVWDQWFDVH6FKUHDQHDOOHJHVWKDWKHKDVVXIIHUHG DEXVHRIGLVFUHWLRQZKHUHSURVHFXWLRQXVHGUHEXWWDOZLWQHVV RQO\IURPWKHWKLUGIRUPRISUHMXGLFH6SHFLILFDOO\KHDUJXHV WRLPSHDFKGHIHQVHZLWQHVVWHVWLPRQ\DQGGHIHQGDQWHOHFWHG WKDWWKHDUUHVWLQJRIILFHUVjWHVWLPRQ\ZDVFORXG\RQFHUWDLQ QRW WR FDOO D VXUUHEXWWDO ZLWQHVV   7R GR VR GRHV QRW IDFWV WKDWKLVJLUOIULHQGjVWHVWLPRQ\ZDVXQIDLUO\XQGHUPLQHG mSUHMXGLFHlWKHGHIHQGDQWXQGHUWKH6L[WK$PHQGPHQWULJKW E\ D UHEXWWDO ZLWQHVV ZKR ZDV DOORZHG WR UHIHU WR WRDVSHHG\WULDO LQYHVWLJDWRU\QRWHV WKDWKLVSDUWQHULQFULPH'XFNHWWZDV PLVVLQJ GXULQJ WULDO  WKDW KLV RZQ PHPRU\ RI HYHQWV KDG 6FKUHDQH DOVR DUJXHV WKDW WKH ODSVH LQ WLPH EHWZHHQ KLV GLPPHGWZHQW\QLQHPRQWKVDIWHUWKHIDFW DQGWKDWWKHUHPD\ LQGLFWPHQWDQGWULDOUHVXOWHGLQ'XFNHWWjVmXQWLPHO\DEVHQFHl KDYH EHHQ D ORVV RI H[FXOSDWRU\ HYLGHQFH FRPSOHWHO\ XQNQRZQWRWKHGHIHQVH%DVHGRQWKHUHFRUGEHIRUHXVWKHVH DOOHJHGSUHMXGLFHVIDOOIDUVKRUWRIVKRZLQJWKDW6FKUHDQHjV  GHIHQVHZDVVRPHKRZLPSDLUHGE\WKHGHOD\WKDWRFFXUUHGLQ $OWKRXJK 6FKUHDQH VWDWHV WKDW WKH SODVWLF JORYHV ZHUH SRVVLEO\

WKHSURVHFXWLRQRIWKLVFDVH H[FXOSDWRU\ SLHFHV RI HYLGHQFH KH KDV IDLOHG WR VKRZ KRZ WKH H[LVWHQFH DQG ORFDWLRQ RI WKHVH JORYHV VRPHKRZ SURYHV WKDW KH ZDV QRW WKH

&RQWUDU\WR6FKUHDQHjVDVVHUWLRQWKHLQDELOLW\RI2IILFHUV SRVVHVVRU RI WKH JXQ 0RUHRYHU LI WKHVH JORYHV ZHUH DV LPSRUWDQW DV 6FKUHDQH PDNHV WKHP RXW WR EH GHIHQVH FRXQVHO ZDV IUHH WR IRFXV WKH 7RSSLQJDQG0RUJDQWRUHPHPEHUSDUWLFXODUIDFWVVXFKDVWKH MXU\jV DWWHQWLRQ RQ WKLV HYLGHQFH DW WULDO 1R 8QLWHG6WDWHVY6FKUHDQH   8QLWHG6WDWHVY6FKUHDQH 1R

+RZHYHUDZULWRIKDEHDVFRUSXVDGWHVWLILFDQGXPZDVLVVXHG QHJOLJHQFHRQWKHJRYHUQPHQWjVSDUWEXWQREDGIDLWKMXGLFLDO IRU'XFNHWWSULRUWRWULDODQGKHZDVEURXJKWWRDORFDOMDLO mWROHUDWLRQ RI VXFK QHJOLJHQFH YDULHV LQYHUVHO\ ZLWK LWV WZRGD\VEHIRUHWKHWULDOEHJDQ,I6FKUHDQHZLVKHGWRFDOO SURWUDFWHGQHVVl  'RJJHWW  86 DW   7KDW LV m>W@R 'XFNHWWWRWHVWLI\KHZDVIUHHWRGRVR<HWm>S@UHVXPDEO\>@ ZDUUDQW JUDQWLQJ UHOLHI QHJOLJHQFH XQDFFRPSDQLHG E\ RQO\ WKRVH GHFODUDQWV WKDW QHLWKHU VLGH EHOLHYHV ZLOO EH SDUWLFXODUL]HG WULDO SUHMXGLFH PXVW KDYH ODVWHG ORQJHU WKDQ SDUWLFXODUO\ KHOSIXO ZLOO QRW KDYH EHHQ VXESRHQDHG DV QHJOLJHQFH GHPRQVWUDEO\ FDXVLQJ VXFK SUHMXGLFHl  ,G  2I ZLWQHVVHVlRUFDOOHGWRWHVWLI\RQFHPDGHDYDLODEOH8QLWHG FRXUVH mLQ FDOFXODWLQJ WKH OHQJWK RI WKH GHOD\ RQO\ WKRVH 6WDWHVY,QDGL86    7KXV'XFNHWWjV SHULRGVRIGHOD\DWWULEXWDEOHWRWKHJRYHUQPHQWRUWKHFRXUW mXQDYDLODELOLW\l ZKLFK PXVW KDYH EHHQ SDUW RI 6FKUHDQHjV DUHUHOHYDQWWR>WKH@FRQVWLWXWLRQDOFODLPl+RZDUG WULDOVWUDWHJ\LVKDUGO\HYLGHQFHRISUHMXGLFH )G DW  FLWDWLRQV RPLWWHG   %DVHG RQ WKH IDFWV DQG FLUFXPVWDQFHV RI WKLV FDVH WKH SRUWLRQ RI WKH GHOD\ )LQDOO\6FKUHDQHDUJXHVWKDWWKHGHOD\LQWKLVFDVHGLPPHG DWWULEXWDEOHWRWKHJRYHUQPHQWjVQHJOLJHQFHZKLFKLVDWPRVW KLV PHPRU\ RI HYHQWV UHOHYDQW WR KLV GHIHQVH DQG SRVVLEO\ WKLUWHHQ DQG RQHKDOI PRQWKV GRHV QRW JLYH ULVH WR D UHVXOWHG LQ WKH ORVV RI XQNQRZQ H[FXOSDWRU\ HYLGHQFH SUHVXPSWLRQRISUHMXGLFH6HHHJ=HUODY/HRQDUG)HG (VVHQWLDOO\ WKLV LV DQ DUJXPHQW WKDW WKH GHOD\ RI WKLV FDVH $SS[   WK &LU   XQSXEOLVKHG RSLQLRQ  QR VKRXOGLQDQGRILWVHOIFUHDWHDSUHVXPSWLRQRISUHMXGLFHWKDW SUHVXPSWLRQRISUHMXGLFHZKHQGHOD\ZDVVOLJKWO\ORQJHUWKDQ ZHLJKVLQIDYRURIWKHGHIHQGDQW6HH'RJJHWW86DW RQH\HDU FHUWGHQLHG866&W   m>$@IILUPDWLYHSURRIRISUHMXGLFHLVQRWHVVHQWLDOWR 7KRPDV  )G DW  WZHQW\QLQH PRQWK GHOD\ LQ UH HYHU\ VSHHG\ WULDO FODLP      >(@[FHVVLYH GHOD\ VHQWHQFLQJQRWSHUVHXQUHDVRQDEOH 8QLWHG6WDWHVY&RRN SUHVXPSWLYHO\FRPSURPLVHVWKHUHOLDELOLW\RIDWULDOLQZD\V )G

 Q WK&LU  SHUFXULDP  XQSXEOLVKHG WKDWQHLWKHUSDUW\FDQSURYHRUIRUWKDWPDWWHULGHQWLI\l  RSLQLRQ  VL[WHHQPRQWKVQRWSUHVXPSWLYHO\SUHMXGLFLDO FHUW +RZHYHUWKHSUHVXPSWLRQRISUHMXGLFHGLVFXVVHGLQ'RJJHWW GHQLHG  86     :KHQ SUHMXGLFH KDV EHHQ LVQRWDXWRPDWLFDOO\WULJJHUHGZKHQHYHUDQDFFXVHGjVWULDOLV IRXQGWKHJRYHUQPHQWjVGHOD\KDVW\SLFDOO\EHHQVKRFNLQJO\ GHOD\HG6HH8QLWHG6WDWHV Y+RZDUG)G ORQJ6HHHJ'RJJHWW86DW VL[\HDUV %URZQ WK&LU ,QVWHDGm>Z@KHQDGHIHQGDQWLVXQDEOHWR  )GDW ILYHDQGRQHKDOI\HDUV 8QLWHG6WDWHVY DUWLFXODWH >RU GHPRQVWUDWH@ WKH KDUP FDXVHG E\ GHOD\ WKH *UDKDP)G WK&LU   HLJKW\HDUV  UHDVRQ IRU WKH GHOD\ IDFWRU   ZLOO EH XVHG WR GHWHUPLQH ZKHWKHU WKH GHIHQGDQW ZDV SUHVXPSWLYHO\ SUHMXGLFHGl ,QVXP DIWHUEDODQFLQJWKHIRXU%DUNHUIDFWRUVRQO\WKH 0XQGW )GDW ILUVW IDFWRU ZHLJKV LQ IDYRU RI 6FKUHDQH ZLWK WKH VHFRQG IDYRULQJ QHLWKHU SDUW\ DQG WKH WKLUG DQG IRXUWK ZHLJKLQJ ,I mWKH JRYHUQPHQW SURVHFXWHV D FDVH ZLWK UHDVRQDEOH DJDLQVWWKHGHIHQGDQW&RQVLGHULQJDOOWKHIDFWRUVDVDZKROH GLOLJHQFH D GHIHQGDQW ZKR FDQQRW GHPRQVWUDWH KRZ KLV ZHILQGWKDW6FKUHDQHjV6L[WK$PHQGPHQWULJKWWRDVSHHG\ GHIHQVHZDVSUHMXGLFHGZLWKVSHFLILFLW\ZLOOQRWPDNHRXWD WULDOZDVQRWYLRODWHG VSHHG\WULDOFODLPQRPDWWHUKRZJUHDWWKHHQVXLQJGHOD\l +RZDUG  )G DW   :KHQ WKHUH LV HYLGHQFH RI %6XIILFLHQF\RIWKH(YLGHQFH 6FKUHDQH DUJXHV WKDW WKHUH ZDV LQVXIILFLHQW HYLGHQFH WR  VXSSRUW KLV FRQYLFWLRQ RI EHLQJ D IHORQ LQ SRVVHVVLRQ RI D 2I FRXUVH mSUHVXPSWLYH SUHMXGLFH FDQQRW DORQH FDUU\ D 6L[WK $PHQGPHQW FODLP ZLWKRXW UHJDUG WR WKH RWKHU %DUNHU FULWHULD> @    LW LV ILUHDUPLQYLRODWLRQRI86&†  J :HUHYLHZDFODLP SDUW RI WKH PL[ RI UHOHYDQW IDFWV DQG LWV LPSRUWDQFH LQFUHDVHV ZLWK WKH RILQVXIILFLHQWHYLGHQFHXVLQJWKHVDPHVWDQGDUGDVWKHGLVWULFW OHQJWK RI WKH GHOD\l 'RJJHWW  86 DW  1R 8QLWHG6WDWHVY6FKUHDQH   8QLWHG6WDWHVY6FKUHDQH 1R

FRXUW8QLWHG6WDWHVY%HGGRZ )G WK SLHFHVRIHYLGHQFHLQWURGXFHGE\WKHJRYHUQPHQW)LUVWKH &LU  m,QXQGHUWDNLQJWKLVDQDO\VLVWKLVFRXUWQHLWKHU FRQWHQGV WKDW 'XFNHWWjV VWDWHPHQW m+H KDV D JXQl ZDV LQGHSHQGHQWO\ZHLJKVWKHHYLGHQFHQRUMXGJHVWKHFUHGLELOLW\ mEODWDQWO\IDOVHlDQGmFOHDUO\VHOIVHUYLQJlEHFDXVHm>E@\ RIZLWQHVVHVZKRWHVWLILHGDWWULDOl8QLWHG6WDWHVY7DOOH\ WKH WLPH 'XFNHWW DSSURDFKHG 2IILFHU 7RSSLQJ WKH ILUHDUP )G    WK&LU  FLWDWLRQVRPLWWHG FHUWGHQLHG PXVWKDYHDOUHDG\EHHQRXWVLGHRIWKHFDUl$FFRUGLQJWR 86  m$FRXUWSURSHUO\GHQLHVDFKDOOHQJH 6FKUHDQHm>D@VVXPLQJWKDWWKHJXQPXVWKDYHEHHQSODFHG WRWKHVXIILFLHQF\RIWKHHYLGHQFHZKHUHµDIWHUYLHZLQJWKH RXWVLGHRIWKHFDUEHIRUHHLWKHURIILFHUDUULYHGRQWKHVFHQH HYLGHQFH LQ D OLJKW PRVW IDYRUDEOH WR WKH SURVHFXWLRQ DQ\ 'XFNHWWjVVWDWHPHQWFRXOGKDYHVKHGQRFUHGLEOHOLJKWRQ UDWLRQDOWULHURIIDFWFRXOGKDYHIRXQGWKHHVVHQWLDOHOHPHQWV ZKR H[HUFLVHG GRPLQLRQ DQG FRQWURO RYHU WKH 'HUULQJHUl RI WKH FULPH EH\RQG D UHDVRQDEOH GRXEWjl ,G  TXRWLQJ 6HFRQG 6FKUHDQH FRQWHQGV WKDW KLV VHOILQFULPLQDWLQJ sDFNVRQY9LUJLQLD86     HPSKDVLVLQ VWDWHPHQWVUHJDUGLQJKLVSRVVHVVLRQRIWKHJXQDQGKLVGHVLUH RULJLQDO ,QWKHLQVWDQWFDVHWKHUHLVVXIILFLHQWHYLGHQFHIRU WRUHWXUQLWEDFNWRKLVJLUOIULHQGZHUHXQFOHDUDQGRSHQWR 6FKUHDQHjVFRQYLFWLRQWRVWDQG LQWHUSUHWDWLRQ:HGLVDJUHHRQERWKSRLQWV m7R REWDLQ D FRQYLFWLRQ SXUVXDQW WR †  J   WKH :KHQ2IILFHU7RSSLQJILUVWSXOOHGEHKLQGWKHYHKLFOHLQ JRYHUQPHQWPXVWSURYHEH\RQGDUHDVRQDEOHGRXEW   WKDW TXHVWLRQ KH REVHUYHG WKH WZR SDVVHQJHUV DUJXLQJ WKHGHIHQGDQWKDVDSULRUFRQYLFWLRQIRUDFULPHSXQLVKDEOHE\ ,PPHGLDWHO\ 'XFNHWW ZKR ZDV WKH GULYHU RI WKH YHKLFOH LPSULVRQPHQW IRU D WHUP H[FHHGLQJ RQH \HDU    WKDW WKH GDUWHG RXW RI WKH FDU DQG KHDGHG WRZDUG WKH RIILFHU GHIHQGDQW WKHUHDIWHU NQRZLQJO\ SRVVHVVHG WKH ILUHDUP DQG H[FODLPLQJm+HKDVDJXQl 7RSSLQJGHVFULEHG'XFNHWWDV DPPXQLWLRQ VSHFLILHG LQ WKH LQGLFWPHQW  DQG   WKDW WKH EHLQJLQDJHQXLQHVWDWHRISDQLFVSHFLILFDOO\GHVFULELQJKLP SRVVHVVLRQZDVLQRUDIIHFWLQJLQWHUVWDWHFRPPHUFHl8QLWHG DVYHU\mQHUYRXVlmVFDUHGlmH[FLWHGlDQGDQ[LRXVWRmJHW 6WDWHV Y 'DQLHO  )G    WK &LU   DZD\ IURP WKH YHKLFOHl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

$FWXDORUFRQVWUXFWLYHSRVVHVVLRQLVVXIILFLHQWWRJLYHULVH GLVFXVVHG LQIUD WKH GLVWULFW FRXUW GLG QRW HUU LQ DOORZLQJ WKH MXU\ WR OHDUQ WRFULPLQDOOLDELOLW\XQGHU†  J 8QLWHG6WDWHVY0XUSK\ RI WKLV H[FLWHG XWWHUDQFH

 )G    WK &LU     m%RWK DFWXDO DQG 'XULQJ WKH SURVHFXWLRQjV RSHQLQJ VWDWHPHQW WKH MXU\ KHDUG FRQVWUXFWLYH HYLGHQFH PD\ EH SURYHG E\ FLUFXPVWDQWLDO 'XFNHWWjV IXOO VWDWHPHQW QDPHO\ m<RXjYH JRW WR KHOS PH +HjV JRW D JXQ HYLGHQFHl,GDW FLWDWLRQRPLWWHG  +HjV JRLQJ WR NLOO PH 3XW PH LQ WKH FDU $UUHVW PH 7DNH PH DZD\ +HjV JRW D JXQl $W WKH FRQFOXVLRQ RI RSHQLQJ VWDWHPHQWV WKH GHIHQVH $OWKRXJK6FKUHDQHGLGQRWKDYHSK\VLFDOSRVVHVVLRQRIWKH PRYHG IRU D PLVWULDO ZKLFK ZDV GHQLHG 7KH GLVWULFW FRXUW KRZHYHU JXQDWWKHWLPHRIKLVDUUHVWWKHUHZDVDPSOHHYLGHQFHIURP LQVWUXFWHG WKH MXU\ WR GLVUHJDUG WKH SURVHFXWRUjV DGGLWLRQDO VWDWHPHQWV DQG

ZKLFKWKHMXU\FRXOGLQIHUWKDWKHNQRZLQJO\SRVVHVVHGWKH QRW WR FRQVLGHU WKRVH VWDWHPHQWV DV HYLGHQFH 2Q DSSHDO 6FKUHDQH UHSHDWHGO\ UHIHUV WR WKH SURVHFXWLRQjV VWDWHPHQWV WR VXJJHVW SURVHFXWRULDO ZHDSRQ LPPHGLDWHO\ SULRU WR ZKHQ 2IILFHU 0RUJDQ PLVFRQGXFW 3XUVXDQW WR RXU KROGLQJ LQ 8QLWHG 6WDWHV Y %HVV   )G DSSURDFKHGWKHYHKLFOH6FKUHDQHSULQFLSDOO\FKDOOHQJHVWZR    WK &LU   KRZHYHU DQ\ DOOHJHG SURVHFXWRULDO HUURU GLG QRW GHQ\ WKH GHIHQGDQW KLV FRQVWLWXWLRQDO ULJKW WR D IDLU WULDO 1R 8QLWHG6WDWHVY6FKUHDQH   8QLWHG6WDWHVY6FKUHDQH 1R

FUDFNHGRSHQWKHSDVVHQJHUGRRURUUROOHGGRZQWKHSDVVHQJHU DQGWKDWKHH[HUFLVHGGRPLQLRQDQGFRQWURORYHULWEHIRUHLW ZLQGRZ DVVXPLQJWKHZLQGRZZDVUROOHGXS DQGGURSSHG ZDVGURSSHGRQWKHJURXQG9LHZLQJWKHHYLGHQFHLQWKHOLJKW WKHZHDSRQLQWKHJUDVVEHIRUH2IILFHU0RUJDQDUULYHGRQWKH PRVWIDYRUDEOHWRWKHSURVHFXWLRQLWLVTXLWHFOHDUWKDWWKHMXU\ VFHQH%HFDXVH7RSSLQJZDVSUHRFFXSLHGZLWK'XFNHWWZKLOH FRXOG KDYH UHDVRQDEO\ LQWHUSUHWHG 2IILFHU 7RSSLQJjV VWDQGLQJRQWKHGULYHUVLGHRIKLVSDWUROFDUDQGEHKLQGWKH WHVWLPRQ\WREHWKDWZKLOHLQWKHFUXLVHU6FKUHDQHDGPLWWHGWR VXVSHFWVjYHKLFOHWKHMXU\FRXOGKDYHUHDVRQDEO\LQIHUUHGWKDW KDYLQJEHHQLQSRVVHVVLRQRIWKHJXQDQGWKDWKLVJLUOIULHQG IURP KLV SRRU YDQWDJH SRLQW 7RSSLQJ ZRXOG KDYH KDG ZDVXQDZDUHWKDWKHKDGLW GLIILFXOW\GHWHFWLQJDQ\VXUUHSWLWLRXVDFWLYLW\RQWKHSDUWRI 6FKUHDQH7KXVFRQWUDU\WR6FKUHDQHj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mRIIHU>V@ DQ LQQRFHQW GHIHQGDQWZDVILGGOLQJZLWKWKHOHYHURIWKHFDUZLQGRZRUWKH H[SODQDWLRQ IRU WKH LQFULPLQDWLQJ IDFWV SURYHG E\ WKH LQVLGH GRRUKDQGOH$V0RUJDQDSSURDFKHGWKHYHKLFOHWR JRYHUQPHQW WKH MXU\ >L@V IUHH WR GLVEHOLHYH >LW@l  8QLWHG H[WUDFWWKHGHIHQGDQWKHGLVFRYHUHGWKHJXQLQWKHJUDVVQH[W 6WDWHV Y /HGH]PD  )G   WK &LU    FHUW WRWKHVLGHGRRURIWKHYHKLFOH%HFDXVHWKHJXQZDVODWHU GHQLHG86    m,WLVIRU>WKHMXU\@DQGQRWIRU GHWHUPLQHGWREHRZQHGE\7RUUHJDQRDQGQRWMXVWDUDQGRP DSSHOODWH FRXUWV WR VD\ WKDW D SDUWLFXODU ZLWQHVV VSRNH WKH JXQO\LQJDURXQGLQWKHVWUHHWFRLQFLGHQWDOO\ORFDWHGLQWKH WUXWKRUIDEULFDWHGDFRFNDQGEXOOVWRU\l8QLWHG6WDWHVY JUDVVQH[WWRZKHUH'XFNHWWGHFLGHGWRSDUNWKHFDUFOHDUO\ %DLOH\86     WKHGHIHQGDQWRU'XFNHWWKDGGRPLQLRQDQGFRQWURORYHUWKH ILUHDUPDQGGURSSHGLWRXWVLGH2IILFHU7RSSLQJWHVWLILHGWKDW )LQDOO\IRUSXUSRVHVRIFRPSDULVRQWKHIDFWVRIWKLVFDVH ZKHQ 'XFNHWW H[LWHG WKH YHKLFOH 'XFNHWW GLG QRW WKURZ DUHVLPLODUWR8QLWHG6WDWHVY'DQLHO)G  WK&LU DQ\WKLQJ RXWVLGH WKH FDU RU DWWHPSW WR NLFN DQ\WKLQJ   ZKHUHZHXSKHOGDMXU\j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jV SDQWV SRFNHW DQG D VKRWJXQ XQGHUQHDWK WKH GHFLGHGWRGURSLWRXWVLGH SDVVHQJHUVHDWLQZKLFKWKHGHIHQGDQWKDGEHHQVLWWLQJ$W )XUWKHUPRUH 6FKUHDQH GRHV QRW GHQ\ WKDW ZKHQ KH ZDV SODFHG LQ WKH EDFN RI WKH SROLFH FUXLVHU KH DVNHG 2IILFHU  6FKUHDQH FRPSODLQV WKDW 2IILFHU 7RSSLQJ mGLG QRW HODERUDWH RQ KLV 7RSSLQJ LI KH FRXOG JHW WKH JXQ EDFN DQG UHWXUQ LW WR KLV VWDWHPHQWl :H QRWH KRZHYHU WKDW WKURXJK HIIHFWLYH FURVVH[DPLQDWLRQ JLUOIULHQG  +H  DOVR GRHV QRW GHQ\ WKDW KH VWDWHG WKDW KLV GHIHQVH FRXQVHO FRXOG KDYH VRXJKW DQ\ VXFK mHODERUDWLRQl JLUOIULHQGZDVQRWDZDUHWKDWmKHKDVLW>LHWKHJXQ@lDFOHDU  DGPLVVLRQWKDWWKHILUHDUPZDVLQKLVLPPHGLDWHSRVVHVVLRQ 7KLV WHVWLPRQ\ KRZHYHU GRHV QRWKLQJ WR H[SODLQ KRZ WKH JXQ PDGH LWV ZD\ WR WKH JUDVV RXWVLGH WKH FDU 1R 8QLWHG6WDWHVY6FKUHDQH   8QLWHG6WDWHVY6FKUHDQH 1R

WULDOWKHGHIHQGDQWGHQLHGEHLQJLQSRVVHVVLRQRIWKHVKRWJXQ DVVLJQPHQWRIHUURULVWKDWLWIXQGDPHQWDOO\PLVXQGHUVWDQGV DQG DOOHJHG WKDW HDUOLHU LQ WKH GD\ WKH GULYHU PXVW KDYH ORQJVWDQGLQJMXULVSUXGHQWLDOLQVLJKWWKDWH[FLWHGXWWHUDQFHVLQ XQEHNQRZQVWWRWKHGHIHQGDQWVWHDOWKLO\SODFHGWKHVKHOOVLQ DQG RI WKHPVHOYHV DQG UHJDUGOHVV RI WKH VRXUFHFRQWDLQ KLV SRFNHW  ,G DW   ,Q ILQGLQJ WKHUH ZDV mDPSOHl mLQKHUHQW JXDUDQWHHV RI WUXWKIXOQHVVl +DJJLQV Y :DUGHQ HYLGHQFHIRUWKHMXU\WRUHWXUQDFRQYLFWLRQWKLVFRXUWSRLQWHG )RUW3LOORZ6WDWH)DUP)G WK&LU   WR DPRQJ RWKHU WKLQJV WKH GULYHUjV GLUHFW VWDWHPHQWV FHUWGHQLHG86   WKDWUHQGHUDGYHUVDULDO LPSOLFDWLQJWKHGHIHQGDQWDVEHLQJLQSRVVHVVLRQRIDJXQODZ WHVWLQJXQQHFHVVDU\DQGWKXVVDWLVI\WKHUHTXLUHPHQWVRIWKH HQIRUFHPHQW WHVWLPRQ\ WKDW WKH GHIHQGDQW ZDV mGRLQJ &RQIURQWDWLRQ&ODXVH6HH,GDKRY:ULJKW 86 VRPHWKLQJXQGHUQHDWKWKHVHDWlWKHGHIHQGDQWjVRQWKHVFHQH     DGPLVVLRQWKDWWKHVKHOOVZHUHIRUDGLIIHUHQWJXQKHKDGDW KRPH DVDFRQYLFWHGIHORQWKHGHIHQGDQWZDVQRWSHUPLWWHG $QH[FLWHGXWWHUDQFHLVGHILQHGDVm>D@VWDWHPHQWUHODWLQJWR WRSRVVHVVDQ\ILUHDUP DQGWKHGHIHQGDQWjVIDLOXUHGXULQJWKH DVWDUWOLQJHYHQWRUFRQGLWLRQPDGHZKLOHWKHGHFODUDQWZDV VWRSWRDFFXVHWKHGULYHURIEHLQJWKHWUXHSRVVHVVRURIWKH XQGHU WKH VWUHVV RI H[FLWHPHQW FDXVHG E\ WKH HYHQW RU JXQ,GDW FRQGLWLRQl  )HG 5 (YLG     7KH UDWLRQDOH IRU WKLV KHDUVD\ H[FHSWLRQLVWKDWmVXFKVWDWHPHQWVDUHJLYHQXQGHU ,Q VXP ZKHQ YLHZLQJ WKH HYLGHQFH LQ WKH OLJKW PRVW FLUFXPVWDQFHV WKDW HOLPLQDWH WKH SRVVLELOLW\ RI IDEULFDWLRQ IDYRUDEOHWRWKHSURVHFXWLRQWKHUHZDVVXIILFLHQWHYLGHQFHIRU FRDFKLQJ RU FRQIDEXODWLRQ DQG WKDW WKHUHIRUH WKH DUHDVRQDEOHMXU\WRUHWXUQDJXLOW\YHUGLFWRQWKHLQGLFWPHQW FLUFXPVWDQFHV VXUURXQGLQJ WKH PDNLQJ RI WKH VWDWHPHQW RIEHLQJDIHORQLQSRVVHVVLRQRIDILUHDUP SURYLGHVXIILFLHQWDVVXUDQFHWKDWWKHVWDWHPHQWLVWUXVWZRUWK\ DQGWKDWFURVVH[DPLQDWLRQZRXOGEHVXSHUIOXRXVl:ULJKW & 5LJKWWR&RQIURQWD:LWQHVV  86DW FLWDWLRQVRPLWWHG  HPSKDVLVDGGHG VHHDOVR +DJJLQV)GDW H[SODLQLQJWKDWWKHmDVVXPSWLRQ 6FKUHDQH QH[W DUJXHV WKDW WKH GLVWULFW FRXUW HUUHG LQ XQGHUO\LQJ>WKHH[FLWHGXWWHUDQFH@H[FHSWLRQLVWKDWDSHUVRQ DOORZLQJ 2IILFHU 7RSSLQJ WR WHVWLI\ WKDW GXULQJ WKH VWRS XQGHU WKH VZD\ RI H[FLWHPHQW SUHFLSLWDWHG E\ DQ H[WHUQDO 'XFNHWWH[FODLPHGm+HKDVDJXQlUHIHUULQJWR6FKUHDQH+H VWDUWOLQJ HYHQW ZLOO EH EHUHIW RI WKH UHIOHFWLYH FDSDFLW\ FRQWHQGV WKDW WKH DGPLVVLRQ RI WKLV VWDWHPHQW XQGHU WKH HVVHQWLDOIRUIDEULFDWLRQDQGWKDWFRQVHTXHQWO\DQ\XWWHUDQFH KHDUVD\H[FHSWLRQRIH[FLWHGXWWHUDQFHVGHSULYHGKLPRIKLV KHPDNHVZLOOEHVSRQWDQHRXVDQGWUXVWZRUWK\l  DOWHUDWLRQLQ FRQVWLWXWLRQDOULJKWWRFRQIURQWDZLWQHVV7KHGLVWULFWFRXUW RULJLQDO  LQWHUQDO TXRWDWLRQ PDUNV DQG FLWDWLRQ RPLWWHG  GLGQRWDEXVHLWVGLVFUHWLRQLQDGPLWWLQJ'XFNHWWjVVWDWHPHQW 7KXVFRQWUDU\WR6FKUHDQHjVDVVHUWLRQWKHGLVSRVLWLYHLQTXLU\ DVDQH[FLWHGXWWHUDQFHDQGWKHDGPLVVLRQRIWKLVVWDWHPHQW ZHPXVWPDNHLVQRWZKHWKHU'XFNHWWKDGDmPRWLYHlWRVKLIW GLG QRW YLRODWH WKH &RQIURQWDWLRQ &ODXVH RI WKH 6L[WK FULPLQDO OLDELOLW\ WR WKH GHIHQGDQW EXW ZKHWKHU 'XFNHWWjV $PHQGPHQW VWDWHPHQWZDVPDGHXQGHUJHQXLQHFRQGLWLRQVRIH[FLWHPHQW WKDWUHPRYHGWKHHOHPHQWVRIUHIOHFWLRQDQGFRQWULYDQFHIURP 6FKUHDQH GRHV QRW DGGUHVV ZKHWKHU 'XFNHWWjV VWDWHPHQW KLVZRUGV6HH8QLWHG6WDWHVY7RFFR)G TXDOLILHVDVDQH[FLWHGXWWHUDQFH LQVWHDGKHVHHPVWRDUJXH WKDW UHJDUGOHVV RI ZKHWKHU 'XFNHWW ZDV XQGHU WKH VWUHVV RI H[FLWHPHQW WKH GLVWULFW FRXUW VKRXOG KDYH UHMHFWHG WKH  LQWURGXFWLRQRI'XFNHWWjVVSRQWDQHRXVVWDWHPHQWEHFDXVHLW 6FKUHDQHjV KHDY\ UHOLDQFH RQ %XOOV Y sRQHV  )G  WK &LU

ZDVDVWDWHPHQWPDGHE\DFRGHIHQGDQWZKRmKDGDVWURQJ   DQG 8QLWHG 6WDWHV Y 0F&OHVNH\  )G  WK &LU   LV PLVSODFHG %RWK 0F&OHVNH\ DQG %XOOV LQYROYHG WKH DGPLVVLRQ RI LQWHUHVWLQVKLIWLQJDWOHDVWVRPHRIWKHUHVSRQVLELOLW\IRUWKH FXVWRGLDOLQWHUURJDWLRQDFFRPSOLFH VWDWHPHQWV WKDW ZHUH LQWURGXFHG EXUJODU\IURPKLPVHOIRQWR>WKHGHIHQGDQW@l7KHIODZRIWKLV DJDLQVW FULPLQDO GHIHQGDQWV ZLWKRXW WKH EHQHILW RI FURVVH[DPLQDWLRQ ,Q 1R 8QLWHG6WDWHVY6FKUHDQH   8QLWHG6WDWHVY6FKUHDQH 1R

 G &LU  ILQGLQJ WKDW DQ DFFRPSOLFHjV VWDWHPHQW XQGHUWKHDEXVHRIGLVFUHWLRQVWDQGDUG6HH*HQHUDO(OHFWULF LQFXOSDWLQJDGHIHQGDQWLQDQDUVRQZDVSURSHUO\DGPLWWHGDV &RYsRLQHU86    VWDWLQJWKDWm>D@OO DQ H[FLWHG XWWHUDQFH UHJDUGOHVV RI WKH DFFRPSOLFHjV HYLGHQWLDU\ GHFLVLRQV DUH UHYLHZHG XQGHU DQ SDUWLFLSDWLRQ LQ WKH FULPH  FHUW GHQLHG  86   DEXVHRIGLVFUHWLRQVWDQGDUGl $QDEXVHRIGLVFUHWLRQZLOOEH    IRXQG XSRQ D mGHILQLWH DQG ILUP FRQYLFWLRQ WKDW WKH FRXUW EHORZFRPPLWWHGDFOHDUHUURURIMXGJPHQWLQWKHFRQFOXVLRQ ,I 'XFNHWWjV VWDWHPHQW TXDOLILHV DV DQ H[FLWHG XWWHUDQFH LWUHDFKHGXSRQDZHLJKLQJRIWKHUHOHYDQWIDFWRUVl6XSHU ZKLFKQHFHVVDULO\PHDQVWKDWLWFDUULHVVXIILFLHQWLQGLFLDRI 6XON\,QFY8QLWHG6WDWHV7URWWLQJ$VV Q)G UHOLDELOLW\DQGWUXVWZRUWKLQHVVWKHQWKHMXGLFLDOLQTXLU\LVDW WK &LU  LQWHUQDO TXRWDWLRQ PDUNV DQG FLWDWLRQ RPLWWHG  DQHQG$FULPLQDOGHIHQGDQWjVULJKWWRFRQIURQWZLWQHVVHVLV FHUWGHQLHG86   QRWYLRODWHGE\WKHLQWURGXFWLRQRIKHDUVD\WHVWLPRQ\ZKHUH HLWKHU WKH KHDUVD\ VWDWHPHQW mIDOOV ZLWKLQ D ILUPO\ URRWHG ,Q+DJJLQVZHKHOGWKDWDVWDWHPHQWTXDOLILHVDVDQH[FLWHG KHDUVD\H[FHSWLRQlRUZKHUHLWLVVXSSRUWHGE\mDVKRZLQJRI XWWHUDQFHLIWKUHHHOHPHQWVDUHPHW)LUVWmWKHUHPXVWEHDQ SDUWLFXODUL]HG JXDUDQWHHV RI WUXVWZRUWKLQHVVl  2KLR Y HYHQW VWDUWOLQJ HQRXJK WR FDXVH QHUYRXV H[FLWHPHQWl   5REHUWV  86       7KH H[FLWHG XWWHUDQFH )GDW6HFRQGWKHVWDWHPHQWmPXVWEHPDGHEHIRUH H[FHSWLRQZKLFKLVDWOHDVWWZRFHQWXULHVROGDQGPD\LQIDFW WKHUH LV WLPH WR FRQWULYH RU PLVUHSUHVHQWl  ,G  7KLUG WKH KDYHLWVRULJLQVLQODWHWKFHQWXU\(QJOLVKFRPPRQODZLV VWDWHPHQWmPXVWEHPDGHZKLOHWKHSHUVRQLVXQGHUWKHVWUHVV ZLWKRXW TXHVWLRQ D ILUPO\ URRWHG KHDUVD\ H[FHSWLRQ  6HH RIWKHH[FLWHPHQWFDXVHGE\WKHHYHQWl,G)RUSXUSRVHVRI :KLWH Y ,OOLQRLV  86   Q    FLWLQJ GHWHUPLQLQJVSRQWDQHLW\m>W@HVWLPRQ\WKDWWKHGHFODUDQWVWLOO 7KRPSVRQY7UHYDQLRQ (QJ5HS  .%   DSSHDUHG QHUYRXV RU GLVWUDXJKW DQG WKDW WKHUH ZDV D UHDVRQDEOHEDVLVIRUFRQWLQXLQJ>WREH@HPRWLRQDO>O\@XSVHW $Q DSSHOODWH FRXUW UHYLHZV DOO HYLGHQWLDU\ UXOLQJV ZLOORIWHQVXIILFHl,GDW LQWHUQDOTXRWDWLRQPDUNVDQG LQFOXGLQJ FRQVWLWXWLRQDO FKDOOHQJHV WR HYLGHQWLDU\ UXOLQJV FLWDWLRQ RPLWWHG   ,Q WKH LQVWDQW FDVH DV 6FKUHDQH KLPVHOI DSSHDUVWRFRQFHGHWKHUHFRUGDPSO\VXSSRUWVDILQGLQJWKDW 'XFNHWWjV VWDWHPHQW IHOO ZLWKLQ WKH H[FLWHG XWWHUDQFH H[FHSWLRQ ERWK FDVHV ZH H[SODLQHG WKDW m6XSUHPH &RXUW &RQIURQWDWLRQ &ODXVH MXULVSUXGHQFH GRHV QRW SHUPLW WKH LQWURGXFWLRQ RI KHDUVD\ GHFODUDWLRQV XWWHUHG E\ DFFRPSOLFHV LQ ODZ HQIRUFHPHQW FXVWRG\ WKDW LQFXOSDWH D 2QWKHILUVWHOHPHQW2IILFHU7RSSLQJREVHUYHG'XFNHWWDQG GHIHQGDQW DEVHQW IXUWKHU µSDUWLFXODUL]HG JXDUDQWHHVj RI WKH GHFODUDWLRQjV 6FKUHDQH DUJXLQJ LQ WKH FDU LPPHGLDWHO\ DIWHU WKH\ KDG WUXVWZRUWKLQHVVl %XOOV  )G DW  TXRWLQJ 0F&OHVNH\  )G FRPPLWWHGDEXUJODU\DFULPHWRZKLFKWKHGHIHQGDQWSOHDGHG DW   ,W ZDV WKLV FRXUWjV YLHZ WKDW mEHFDXVH RI WKH LQFHQWLYH EURXJKW WR JXLOW\ LQ VWDWH FRXUW  &HUWDLQO\ WKH EXUJODU\ LWVHOI PD\ EHDU XSRQ VXFK DQ DFFRPSOLFH WR VKLIW DQG VSUHDG EODPH WR RWKHU SHUVRQV FRQVWLWXWH D VWDUWOLQJ HYHQW EXW HYHQ LI LW GLG QRW WKH VXFK D FRQIHVVLRQl ODFNV mJXDUDQWHHV RI WUXVWZRUWKLQHVV VXIILFLHQW WR UHEXW LWV SUHVXPSWLYH XQUHOLDELOLW\l 0F&OHVNH\  )G DW  1HLWKHU VXEVHTXHQWYHUEDODOWHUFDWLRQEHWZHHQ'XFNHWWDQG6FKUHDQH 0F&OHVNH\ QRU %XOOV LQYROYHG H[FLWHG XWWHUDQFHV ZKLFK DUH MXGLFLDOO\ RQHZKHUH6FKUHDQHDSSDUHQWO\WKUHDWHQHGWRXVHWKHJXQRQ DFFHSWHG WR EH JLYHQ XQGHU FLUFXPVWDQFHV WKDW mHOLPLQDWH WKH SRVVLELOLW\ 'XFNHWW TXDOLILHVDVDVWDUWOLQJHYHQW6HFRQGLPPHGLDWHO\ RI IDEULFDWLRQ FRDFKLQJ RU FRQIDEXODWLRQ   l :ULJKW   86 DW  XSRQ REVHUYLQJ WKH SDWURO FDU 'XFNHWW MXPSHG RXW RI WKH 7KH FDVH DW KDQG GRHV QRW LQYROYH D VLWXDWLRQ ZKHUH 'XFNHWW ZDV YHKLFOHDQGTXLFNO\DSSURDFKHG7RSSLQJ\HOOLQJm+HKDVD LQWHUYLHZHG E\ ODZ HQIRUFHPHQW IRU VRPH SHULRG DQG WKHQ PDGH VWDWHPHQWV LQFXOSDWLQJ WKH GHIHQGDQW RU KDG WLPH SRWHQWLDOO\ WR FRQWULYH JXQl7KHVKRUWOHQJWKRIWLPHEHWZHHQWKHEXUJODU\DQGWKH D VWRU\ VKLIWLQJ EODPH WR WKH GHIHQGDQW 7KH ULVNV RI IDEULFDWLRQ DQG VWDWHPHQWDQGRUWKHDUJXPHQWDQGWKHYRFDOL]DWLRQGLGQRW XQUHOLDELOLW\ SUHVHQW LQ 0F&OHVNH\ DQG %XOOV DUH QRW SUHVHQW LQ WKLV FDVH DIIRUG 'XFNHWW HQRXJK WLPH WR FRQWULYH D VWRU\ IRU WKH $FFRUGLQJO\ ERWK FDVHV DUH LQDSSOLFDEOH WR RXU DQDO\VLV 1R 8QLWHG6WDWHVY6FKUHDQH 

RIILFHUjVEHQHILW/DVW7RSSLQJGHVFULEHG'XFNHWWDVEHLQJ JHQXLQHO\mQHUYRXVlmVFDUHGlmH[FLWHGlHDJHUWRmJHWDZD\ IURPWKHYHKLFOHlVSHDNLQJLQDmKLJKSLWFKHGYRLFHlDQGLQ QHHG RI EHLQJ mVORZHG GRZQl  'XFNHWWjV H[FLWHG SK\VLFDO GHPHDQRUVXSSRUWVDILQGLQJWKDW'XFNHWWPDGHKLVVWDWHPHQW ZKLOHVWLOOXQGHUWKHVZD\RIH[FLWHPHQW$FFRUGLQJO\WKH GLVWULFW FRXUW GLG QRW DEXVH LWV GLVFUHWLRQ LQ DGPLWWLQJ 'XFNHWWjVVWDWHPHQWDVDQH[FLWHGXWWHUDQFHDQGDVDILUPO\ URRWHGH[FHSWLRQWRWKHKHDUVD\UXOHWKHVWDWHPHQWGLGQRW YLRODWHWKH&RQIURQWDWLRQ&ODXVH $)),50('

 (YHQ LI 'XFNHWW KDG D mPRWLYHl WR VKLIW UHVSRQVLELOLW\ IRU WKH EXUJODU\ 'XFNHWWjV VWDWHPHQW GLG QRW FRQFHUQ WKH EXUJODU\ EXW UDWKHU WKH GHIHQGDQWjV DSSDUHQW WKUHDW WR XVH WKH ILUHDUP DJDLQVW 'XFNHWW 7KH VWDWHPHQWjV IRFXV RQ WKH JXQ LQVWHDG RI WKH EXUJODU\ LV IXUWKHU SURRI WKDW 'XFNHWW ZDV UHDFWLQJ WR D VWDUWOLQJ HYHQW DQG ZDV QRW IDEULFDWLQJ D VWRU\ WR HVFDSH FULPLQDO UHVSRQVLELOLW\

 $V LQGLFDWHG VXSUD DOWKRXJK WKH GHIHQGDQW FRPSODLQV WKDW KH ZDV GHQLHG WKH RSSRUWXQLW\ WR VXEMHFW 'XFNHWW WR mLQWHQVH FURVVH[DPLQDWLRQl WKH UHFRUG VKRZV WKDW 'XFNHWW ZDV SURGXFHG E\ WKH JRYHUQPHQW DQG PDGH DYDLODEOH WR WKH GHIHQVH

Reference

Status
Published