00a0266p.06

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$SSHOODQW
Y
-$0(6 0 %2+$1121
'HIHQGDQW$SSHOOHH
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH0LGGOH'LVWULFWRI7HQQHVVHHDW&RRNHYLOOH
1R²7KRPDV$:LVHPDQ-U'LVWULFW-XGJH
6XEPLWWHG$SULO
'HFLGHGDQG)LOHG$XJXVW
%HIRUH.(11('<6,/(5DQG%$7&+(/'(5&LUFXLW
-XGJHV
BBBBBBBBBBBBBBBBB
&2816(/
21 %5,() 5REHUW $QGHUVRQ $66,67$17 81,7('
67$7(6$77251(<1DVKYLOOH7HQQHVVHHIRU$SSHOODQW
%RE/\QFK-U1DVKYLOOH7HQQHVVHHIRU$SSHOOHH
6,/(5 - GHOLYHUHG WKH RSLQLRQ RI WKH FRXUW LQ ZKLFK
.(11('< - MRLQHG %$7&+(/'(5 - SS
GHOLYHUHGDVHSDUDWHGLVVHQWLQJRSLQLRQ

-- 1 of 6 --

8QLWHG6WDWHVY%RKDQQRQ 1R
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
6,/(5 &LUFXLW -XGJH 7KH 8QLWHG 6WDWHV RI $PHULFD
SODLQWLII DSSHDOV DQ RUGHU JUDQWLQJ D PRWLRQ WR VXSSUHVV
HYLGHQFHVHL]HGIURP-DPHV%RKDQQRQGHIHQGDQWGXULQJD
ZDUUDQWOHVV VHDUFK )RU WKH UHDVRQV GLVFXVVHG EHORZ ZH
5(9(56(
%$&.*5281'
,Q 1RYHPEHU ODZ HQIRUFHPHQW DJHQWV H[HFXWHG D
VHDUFKZDUUDQWIRUDWUDLOHUUHVLGHQFHVXVSHFWHGRIEHLQJXVHG
DVDPHWKDPSKHWDPLQHODERUDWRU\7ZRRIWKHDJHQWV0LNH
7KRPSVRQ DQG 6DP /HH OHIW WKH UHVLGHQFH ,W ZDV ODWH
HYHQLQJDQGGDUNRXWVLGHDWWKHWLPH6HYHUDODJHQWVZHUH
VWLOO LQVLGH FRPSOHWLQJ WKH DGPLQLVWUDWLYH SRUWLRQ RI WKH
VHDUFK
$V/HHDQG7KRPSVRQZHUHZDONLQJWRWKHLUFDUDQRWKHU
FDUGURYHXSWKHGULYHZD\DWDUDSLGUDWHRIVSHHGDQGVWRSSHG
QHDUWKHIURQWSRUFKRIWKHUHVLGHQFH-DPHV%RKDQQRQJRW
RXWRIWKHSDVVHQJHU¶VVLGHRIWKHFDUDQG-RKQQ\%RKDQQRQ
JRWRXWRIWKHGULYHU¶VVLGH7KH\ZDONHGTXLFNO\WRZDUGWKH
UHVLGHQFH/HHWROGWKHPWRVWRSDSSURDFKHG-RKQQ\DQG
DVNHG IRU VRPH LGHQWLILFDWLRQ +H SURGXFHG D VWDWHLVVXHG
LGHQWLILFDWLRQFDUGZKLFKZDVQRWDGULYHU¶VOLFHQVH
-DPHV%RKDQQRQZDVKROGLQJDEHHULQKLVOHIWKDQGDQG
KDGKLVULJKWKDQGLQKLVSRFNHWZKHQKHJRWRXWRIWKHFDU
7KRPSVRQDVNHGKLPWRVHWWKHEHHUGRZQDQGWDNHKLVKDQG
RXWRIKLVSRFNHWDQG-DPHVFRPSOLHG%XW-DPHVSXWKLV
KDQG EDFN LQ KLV SRFNHW WZLFH DQG DFWHG YHU\ QHUYRXV
)LQDOO\7KRPSVRQLQVWUXFWHG-DPHVWRUDLVHKLVKDQGV:KHQ
7KRPSVRQSURFHHGHGWRIULVNKLP-DPHVGURSSHGKLVKDQGV
7KRPSVRQ VODSSHG -DPHV¶V KDQGV EDFN DQG FRQWLQXHG WKH
IULVN+HVDZDEXOJHLQ-DPHV¶VSRFNHWDQGKHSXOOHGRXW
WZR SDFNV RI FLJDUHWWHV DQG VRPH PHWKDPSKHWDPLQH +H
DVNHG-DPHVLIKHKDGDQ\PRUHGUXJVDQG-DPHVWROGKLPKH

-- 2 of 6 --

8QLWHG6WDWHVY%RKDQQRQ 1R
ZURQJWLPH6XUHO\WKLVW\SHRISROLFHFRQGXFWLVSUHFLVHO\
WKHW\SHRIVWDWHDFWLRQWKH)RXUWK$PHQGPHQWZDVGHVLJQHG
WRSURWHFWDJDLQVW7KHUHIRUHEHFDXVH,EHOLHYHWKHPDMRULW\
KDV LPSURSHUO\ H[WHQGHG WKH KROGLQJV RI 6XPPHUV DQG
)RXQWDLQXQGHUWKHIDFWVSUHVHQWHGE\WKLVFDVH,UHVSHFWIXOO\
GLVVHQW
1R 8QLWHG6WDWHVY%RKDQQRQ
KDG VRPH PRUH LQ KLV EDFN SRFNHW DV ZHOO DV D JXQ
7KRPSVRQ IRXQG D ORDGHG KDQGJXQ DQG DQ H[WUD FOLS LQ
-DPHV¶VZDLVWEDQG
$IWHU KLV DUUHVW -DPHV FRQIHVVHG WR RSHUDWLQJ D
PHWKDPSKHWDPLQHODERUDWRU\+HFRQVHQWHGWRDVHDUFKRIKLV
UHVLGHQFH ZKHUH DJHQWV IRXQG HTXLSPHQW FKHPLFDOV DQG
SDUDSKHUQDOLD ZKLFK FRXOG EH XVHG WR PDQXIDFWXUH
PHWKDPSKHWDPLQH
',6&866,21
/DZHQIRUFHPHQWRIILFLDOVKDYHDOLPLWHGDXWKRULW\WRGHWDLQ
RFFXSDQWV RI D SUHPLVHV ZKLOH D SURSHU VHDUFK LV EHLQJ
FRQGXFWHG 6HH 0LFKLJDQ Y 6XPPHUV 86
,Q6XPPHUVWKH&RXUWVWDWHGWKDW
0RVWREYLRXVLVWKHOHJLWLPDWHODZHQIRUFHPHQWLQWHUHVW
LQ SUHYHQWLQJ IOLJKW LQ WKH HYHQW WKDW LQFULPLQDWLQJ
HYLGHQFH LV IRXQG /HVV REYLRXV EXW VRPHWLPHV RI
JUHDWHULPSRUWDQFHLVWKHLQWHUHVWLQPLQLPL]LQJWKHULVN
RIKDUPWRWKHRIILFHUV)LQDOO\WKHRUGHUO\FRPSOHWLRQ
RIWKHVHDUFKPD\EHIDFLOLWDWHGLIWKHRFFXSDQWVRIWKH
SUHPLVHVDUHSUHVHQW
,GDW
,Q WKH SUHVHQW FDVH -DPHV ZDV QRW D UHVLGHQW RI WKH
SUHPLVHV EHLQJ VHDUFKHG +RZHYHU DJHQWV¶ DXWKRULW\ WR
GHWDLQ FLWL]HQV KDV EHHQ H[WHQGHG ,Q 8QLWHG 6WDWHV Y
)RXQWDLQ )G WK &LU WKLV FRXUW KHOG WKDW
GHWHQWLRQRIWKHGHIHQGDQWZKRGLGQRWOLYHDWWKHUHVLGHQFH
WKDWZDVEHLQJVHDUFKHGZDVFRQVWLWXWLRQDOEHFDXVHWZRRI
WKH MXVWLILFDWLRQV IRU GHWDLQLQJ UHVLGHQWV VWLOO H[LVWHG 7KH
FRXUWVWDWHGWKDWWKHVHDUFKZDVQHFHVVDU\IRUWKHVDIHW\RIWKH
DJHQWVDQG³UHDVRQDEOHDQGSURSRUWLRQDOWRODZHQIRUFHPHQW¶V
OHJLWLPDWH LQWHUHVWV LQ SUHYHQWLQJ IOLJKW LQ WKH HYHQW
LQFULPLQDWLQJ HYLGHQFH LV IRXQG´ ,G DW 7KH FRXUW
GHFODUHGWKDWWKRVHFRQFHUQVDUHWKHVDPHZKHWKHURUQRWWKH
SHUVRQGHWDLQHGLVDUHVLGHQWRIWKHSUHPLVHVEHLQJVHDUFKHG
,G7KHUHIRUHLWLVLUUHOHYDQWWKDW-DPHVZDVQRWDUHVLGHQW

-- 3 of 6 --

8QLWHG6WDWHVY%RKDQQRQ 1R
7KH SUHVHQW FDVH LV DOVR GLIIHUHQW IURP 6XPPHUV LQ WKDW
-DPHVZDVQRWLQVLGHWKHUHVLGHQFH+RZHYHUWKLVIDFWGRHV
QRWPDNHWKHVHDUFKRI-DPHVXQFRQVWLWXWLRQDO$VWKH7KLUG
&LUFXLWFRQFOXGHG³>D@OWKRXJK6XPPHUVLWVHOIRQO\SHUWDLQV
WRDUHVLGHQWRIWKHKRXVHXQGHUVHDUFK LW IROORZVWKDWWKH
SROLFHPD\VWRSSHRSOHFRPLQJWRRUJRLQJIURPWKHKRXVHLI
SROLFHQHHGWRDVFHUWDLQZKHWKHUWKH\OLYHWKHUH´%DNHUY
0RQURH7RZQVKLS)G G&LU 7KH
SROLF\MXVWLILFDWLRQVRI6XPPHUVDQG)RXQWDLQHVSHFLDOO\WR
SURWHFW RIILFHUV¶ VDIHW\ DUH DSSOLFDEOH LQ WKLV FDVH ³7KH
SRVVLEOHGDQJHUSUHVHQWHGE\DQLQGLYLGXDODSSURDFKLQJDQG
HQWHULQJDVWUXFWXUHKRXVLQJDGUXJRSHUDWLRQLVREYLRXV,Q
IDFW LW ZRXOG KDYH EHHQ IRROKDUG\ IRU DQ REMHFWLYHO\
UHDVRQDEOHRIILFHUQRWWRFRQGXFWDVHFXULW\IULVNXQGHUWKH
FLUFXPVWDQFHV´8QLWHG6WDWHVY3DWWHUVRQ)G
WK &LU )XUWKHUPRUH EHFDXVH -DPHV VKRZHG
HYHU\ LQWHQWLRQ RI ZDONLQJ LQWR WKH KRXVH ZKHUH DUPHG
RIILFHUV ZHUH LQ WKH SURFHVV RI FRPSOHWLQJ WKH VHDUFK KLV
VDIHW\ZDVDOVRDWULVN3UHYHQWLQJKLVXQH[SHFWHGHQWU\LQWR
WKHWUDLOHUZDVIRUWKHVDIHW\RIHYHU\RQHLQYROYHG
,Q 8QLWHG 6WDWHV Y %DUUHWW )G WK &LU
DQDJHQWKDGMXVWFRPSOHWHGDQDXWKRUL]HGVHDUFKRID
UHVLGHQFH ZKHQ KH QRWLFHG DQ DXWRPRELOH FRPLQJ XS WKH
GULYHZD\7KHDJHQWNQHZFRXULHUVPDGHGHOLYHULHVRIGUXJV
WRWKHUHVLGHQFH7KLVFRXUWKHOGWKDWWKHDJHQWZDVMXVWLILHG
LQDVNLQJ%DUUHWWIRULGHQWLILFDWLRQDQGKLVSXUSRVHIRUEHLQJ
RQWKHSUHPLVHV,GDW7KHSUHVHQWFDVHLVVLPLODUWR
%DUUHWW 7KH UHVLGHQFH VHDUFKHG ZDV D VXVSHFWHG
PHWKDPSKHWDPLQHODE7KHUHIRUHDQRIILFHUFRXOGUHDVRQDEO\
LQIHU WKDW D FXVWRPHU RU GLVWULEXWRU ZRXOG DUULYH RQ WKH
SUHPLVHV7KHDJHQWVKDGUHDVRQDEOHVXVSLFLRQWKDW-DPHV
ZDV LQYROYHG LQ FULPLQDO DFWLYLW\ &RQVHTXHQWO\ KLV
GHWHQWLRQZDVFRQVWLWXWLRQDO
,I WKH GHWHQWLRQ RI %RKDQQRQ ZDV FRQVWLWXWLRQDO WKH
TXHVWLRQEHFRPHVZKHWKHUWKHIULVNRI-DPHVZDVDXWKRUL]HG
XQGHUWKH)RXUWK$PHQGPHQW$ODZHQIRUFHPHQWDJHQWPD\
FRQGXFWDSDWGRZQVHDUFKWRILQGZHDSRQV³ZKHUHKHKDV
UHDVRQ WR EHOLHYH WKDW KH LV GHDOLQJ ZLWK DQ DUPHG DQG
1R 8QLWHG6WDWHVY%RKDQQRQ
7KH SROLFH KDYH OLPLWHG DXWKRULW\ WR VWRS LQGLYLGXDOV
VXVSHFWHG RI ZURQJGRLQJ EXW RQO\ LI WKH RIILFHU KDV DQ
DUWLFXODEOHVXVSLFLRQWKDWFULPLQDODFWLYLW\LVDIRRWRUWKDWWKH
LQGLYLGXDOLVDUPHGDQGGDQJHURXV6HH7HUU\86DW
<EDUUDY,OOLQRLV86 ,QWKLVFDVHWKH
GLVWULFWFRXUWDIWHUKHDULQJWKHWHVWLPRQ\RIERWK2IILFHUV/HH
DQG7KRPSVRQKHOGWKDW³>W@KH7HUU\VWRSZDVPDGHZLWKRXW
DQ\DUWLFXODWHGRUDUWLFXODEOH>@VXVSLFLRQRWKHUWKDQWKHPHUH
IDFWWKDWWKHVHSHRSOHVWRSSHGLQWKHPLGGOHRIILYHRUVL[FDUV
DQGDEXQFKRISROLFHRIILFHUV´7KHUHFRUGIXOO\VXSSRUWVWKLV
FRQFOXVLRQDQG,FDQQRWVHHDQ\EDVLVXSRQZKLFKWRUHMHFW
WKH ORZHU FRXUW¶V ILQGLQJ WKDW WKH SROLFH GLG QRW KDYH DQ
DUWLFXODEOHVXVSLFLRQ
, EHOLHYH WKDW 2IILFHU 7KRPSVRQ KDG HYHU\ ULJKW WR DVN
-DPHV IRU LGHQWLILFDWLRQ DQG LQTXLUH LQWR KLV SXUSRVH IRU
FRPLQJWRWKHVFHQH6XFKH[FKDQJHVHQWHUHGLQWRZLWKWKH
SHUVRQ¶VFRQVHQWGRQRWHYHQSUHVHQWD)RXUWK$PHQGPHQW
TXHVWLRQ,QWKLVFDVHKRZHYHU2IILFHU7KRPSVRQGLGQRW
PDNH VXFK DQ LQTXLU\ DV 2IILFHU /HH GLG RI -RKQQ\
%RKDQQRQ EXW UDWKHU FKRVH WR GHWDLQ -DPHV EDVHG XSRQ
QRWKLQJPRUHWKDQ-DPHV¶SUHVHQFHDWDFULPHVFHQH,WLV
ZHOOVHWWOHGWKDWPHUHSUR[LPLW\WRFULPLQDODFWLYLW\LVQRWDQ
DGHTXDWHEDVLVIRUWKHSROLFHWRPDNHVXFKDQLQYHVWLJDWRU\
VWRS6HH<EDUUD86DWVHHDOVR86Y%HOO
)G WK&LU ³>:@HGRQRWEHOLHYHWKDWWKH
7HUU\ UHTXLUHPHQW RI UHDVRQDEOH VXVSLFLRQ XQGHU WKH
FLUFXPVWDQFHVKDVEHHQHURGHGWRWKHSRLQWWKDWDQLQGLYLGXDO
PD\EHIULVNHGEDVHGXSRQQRWKLQJPRUHWKDQDQXQIRUWXQDWH
FKRLFHRIDVVRFLDWHV´ LQWHUQDOFLWDWLRQVRPLWWHG 7KHUHIRUH
,ZRXOGKROGWKDW2IILFHU7KRPSVRQ¶VLPPHGLDWHGHWHQWLRQRI
-DPHVEDVHGXSRQQRWKLQJPRUHWKDQ-DPHV¶PHUHSUHVHQFH
DWDORFDWLRQZKHUHSROLFHZHUHLQYHVWLJDWLQJGUXJDFWLYLW\
YLRODWHG-DPHV¶ULJKWWREHIUHHIURPXQUHDVRQDEOHVHL]XUHV
XQGHUWKH)RXUWK$PHQGPHQW
%\ DIILUPLQJ WKH UHDVRQDEOHQHVV RI 2IILFHU 7KRPSVRQ¶V
GHWHQWLRQ RI -DPHV WKH PDMRULW\ RSLQLRQ FUHDWHV WKH
RSSRUWXQLW\ IRU WKH SROLFH WR VWRS DQG GHWDLQ EDVHG XSRQ
QRWKLQJPRUHWKDQDSHUVRQ¶VEHLQJLQWKHZURQJSODFHDWWKH

-- 4 of 6 --

8QLWHG6WDWHVY%RKDQQRQ 1R
LQWDNLQJVRPHDFWLRQWRGHWDLQWKH%DNHUVXQWLOWKHDUHDFRXOG
EHVHFXUHG
7KHIDFWVRIWKLVFDVHKRZHYHUDUHHQWLUHO\GLIIHUHQW+HUH
WKH SROLFH VHDUFK RI WKH PHWKDPSKHWDPLQH ODE KDG EHHQ
FRPSOHWHGWKHSROLFHKDGFRPSOHWHFRQWURORIWKHVLWXDWLRQ
PDQ\RIWKHRIILFHUVKDGDOUHDG\OHIWWKHVFHQHDQGDOOWKDW
UHPDLQHGZDVWKHILQDOSDSHUZRUN7KHUHLVQRTXHVWLRQWKDW
WKHSROLFHKDGHYHU\ULJKWWRDVNWKH%RKDQQRQVWRLGHQWLI\
WKHPVHOYHVDQGH[SODLQWKHLUSUHVHQFHRQWKHSURSHUW\,Q
IDFWLWZRXOGKDYHEHHQLUUHVSRQVLEOHIRUWKHPQRWWRLQTXLUH
%XW EHFDXVH WKH VHDUFK ZDV DOO EXW FRPSOHWH ZKHQ WKH
%RKDQQRQVDUULYHGWKHUHZHUHQRFLUFXPVWDQFHVVXFKDVWKRVH
SUHVHQWHGLQ%DNHUWKDWPLJKWKDYHMXVWLILHGDEULHIGHWHQWLRQ
XQWLORUGHUFRXOGEHDFKLHYHG
,QP\PLQGWKHGLVWULFWFRXUWZDVFRUUHFWLQKROGLQJWKDWWKH
RQO\ TXHVWLRQ SUHVHQWHG E\ WKLV FDVH LV ZKHWKHU WKH SROLFH
GHWHQWLRQRI-DPHVFDQEHMXVWLILHGDVD7HUU\VWRS/LNHWKH
GLVWULFW FRXUW , EHOLHYH WKDW LW FDQQRW :KHQ 2IILFHU
7KRPSVRQRUGHUHG-DPHVWRSXWGRZQKLVEHHUDQGWDNHKLV
KDQG RXW RI KLV SRFNHW WKH RIILFHU ZDV DW WKDW PRPHQW
VXEMHFWLQJ -DPHV WR DQ LQYHVWLJDWRU\ VWRS 6HH 86 Y
0HQGHQKDOO86 ³>$@SHUVRQKDVEHHQ
μVHL]HG¶ZLWKLQWKHPHDQLQJRIWKH)RXUWK$PHQGPHQWRQO\
LILQYLHZRIDOOWKHFLUFXPVWDQFHVVXUURXQGLQJWKHLQFLGHQW
DUHDVRQDEOHSHUVRQZRXOGKDYHEHOLHYHGWKDWKHZDVQRWIUHH
WROHDYH´ 86Y7KRPSVRQ)G WK&LU
³μ>7@KHODZLVZHOOHVWDEOLVKHGWKDWLIWKHRIILFHUDVNV
UDWKHU WKDQ FRPPDQGV WKH SHUVRQ DFFRVWHG LV QRW VHL]HG
¶´ 86Y6WHHOH)6XSS 6',QG
DII¶G)G WK&LU ³$SROLFHRIILFHU¶V
YHUEDOFRPPDQG±LIKHHGHG±LVRIWHQVXIILFLHQWWRVHL]HD
SHUVRQ´ VHHDOVR86Y:LQIUH\)G
WK&LU ,QP\YLHZDUHDVRQDEOHSHUVRQVWDQGLQJLQ
-DPHV¶ SRVLWLRQ ZRXOG QRW KDYH IHOW IUHH WR OHDYH DQG
WKHUHIRUH 2IILFHU 7KRPSVRQ¶V DFWLRQV PXVW SDVV
FRQVWLWXWLRQDOPXVWHU
1R 8QLWHG6WDWHVY%RKDQQRQ
GDQJHURXVLQGLYLGXDO´7HUU\Y2KLR86
7KH ³LVVXH LV ZKHWKHU D UHDVRQDEO\ SUXGHQW PDQ LQ WKH
FLUFXPVWDQFHVZRXOGEHZDUUDQWHGLQWKHEHOLHIWKDWKLVVDIHW\
RUWKDWRIRWKHUVZDVLQGDQJHU´,G
-DPHV ZDV ULGLQJ LQ D FDU WKDW GURYH XS WR D UHVLGHQFH
GXULQJDQLJKWWLPHVHDUFKWKDWZDVEHLQJFRQGXFWHGEHFDXVH
WKH UHVLGHQFH ZDV VXVSHFWHG RI EHLQJ D ODERUDWRU\ IRU DQ
LOOHJDO GUXJ RSHUDWLRQ 7KH UDSLG DSSURDFK RI WKH YHKLFOH
GRZQWKHORQJGULYHZD\DQG-DPHV¶VTXLFNH[LWIURPWKHFDU
DQGDSSURDFKWRZDUGWKHIURQWGRRURIWKHWUDLOHULQGLFDWHDQ
DSSDUHQWIDPLOLDULW\ZLWKWKHUHVLGHQFH*LYHQWKDWWKHWUDLOHU
ZDVRZQHGE\DPHWKDPSKHWDPLQHGHDOHU-DPHV¶VDSSDUHQW
IDPLOLDULW\ZLWKWKHSODFHPLJKWJLYHWKHRIILFHUVFDXVHIRU
FRQFHUQWKDWKHZDVWKHUHWRGREXVLQHVVDQGPD\KDYHEHHQ
DUPHG)XUWKHUPRUHWKHGULYHURIWKHFDUGLGQRWSURYLGHWKH
ODZHQIRUFHPHQWDJHQWVZLWKDGULYHU¶VOLFHQVHEXWPHUHO\D
VWDWHLVVXHGLGHQWLILFDWLRQFDUG-DPHVDFWHGYHU\QHUYRXVDQG
WZLFHLJQRUHGWKHRIILFHU¶VUHTXHVWWKDWKHNHHSKLVKDQGVRXW
RI KLV SRFNHWV $ UHDVRQDEOH FRQFOXVLRQ IRU DQ RIILFHU WR
PDNHZDVWKDW-DPHVPD\KDYHEHHQDUPHGDQGGDQJHURXV
7KHUHIRUHLWZDVUHDVRQDEOHDQGSUXGHQWIRUWKHDJHQW ³WR
FRQGXFW D FDUHIXOO\ OLPLWHG VHDUFK RI WKH RXWHU FORWKLQJ RI
VXFKSHUVRQVLQDQDWWHPSWWRGLVFRYHUZHDSRQVZKLFKPLJKW
EHXVHGWRDVVDXOWKLP´,GDW
7KH SROLF\ MXVWLILFDWLRQV RI 6XPPHUV DQG )RXQWDLQ
HVSHFLDOO\ WR SURWHFW RIILFHUV¶ VDIHW\ DUH DSSOLFDEOH LQ WKLV
FDVH7KHUHIRUHWKHDJHQWVKDGWKHFRQVWLWXWLRQDODXWKRULW\WR
EULHIO\ GHWDLQ DQG VHDUFK -DPHV %RKDQQRQ $V D
FRQVHTXHQFHWKHIUXLWVRIWKHVHDUFKDQG-DPHV¶VLQFXOSDWRU\
VWDWHPHQWFRQFHUQLQJKLVUHVLGHQFHVKRXOGQRWEHVXSSUHVVHG
5(9(56('

-- 5 of 6 --

8QLWHG6WDWHVY%RKDQQRQ 1R
BBBBBBBBBBBBBBBBB
',66(17
BBBBBBBBBBBBBBBBB
$/,&(0%$7&+(/'(5&LUFXLW-XGJHGLVVHQWLQJ,Q
JUDQWLQJWKHGHIHQGDQW¶VPRWLRQWRVXSSUHVVWKHGLVWULFWFRXUW
KHOG0LFKLJDQY6XPPHUV86 DQG86Y
)RXQWDLQ)G WK&LU ZHUHLQDSSOLFDEOHWRWKH
TXHVWLRQRIZKHWKHUWKHSROLFHZHUHMXVWLILHGLQGHWDLQLQJDQG
VXEVHTXHQWO\IULVNLQJ-DPHV%RKDQQRQ5DWKHUWKHGLVWULFW
FRXUWEHOLHYHGWKHUHDVRQDEOHQHVVRIWKHRIILFHU¶VFRQGXFWZDV
SURSHUO\MXGJHGE\WKHVWDQGDUGVVHWIRUWKLQ7HUU\Y2KLR
86 ,DJUHH
7KH 6XSUHPH &RXUW GHFLVLRQ LQ 6XPPHUV KHOG WKDW WKH
SROLFHKDYHWKHDXWKRULW\WRGHWDLQRFFXSDQWVRIDSUHPLVHV
ZKLOHDSURSHUVHDUFKLVEHLQJFRQGXFWHG6HH6XPPHUV
86DW:HH[WHQGHGWKHKROGLQJLQ6XPPHUVWRDOORZ
RIILFHUVWRGHWDLQDOOSHUVRQVZKRDUHSUHVHQWDWWKHVLWHZKHQ
WKHVHDUFKZDUUDQWLVEHLQJH[HFXWHGUHJDUGOHVVRIZKHWKHU
WKH\ EH RFFXSDQWV RI WKH SUHPLVHV RU PHUHO\ YLVLWRUV 6HH
)RXQWDLQ )G DW 5HDG WRJHWKHU 6XPPHUV DQG
)RXQWDLQDOORZWKHDXWKRULWLHVWRGHWDLQDOOSHUVRQVZKRDUH
RQ WKH SUHPLVHV WR EH VHDUFKHG ZKHQ WKH SROLFH H[HFXWH D
VHDUFK ZDUUDQW $V WKH 6XSUHPH &RXUW H[SODLQHG LQ
6XPPHUV WKH LQWUXVLRQ XSRQ WKH SHUVRQDO OLEHUW\ RI WKRVH
IRXQGRQWKHSUHPLVHVDWWKHWLPHWKHSROLFHVHHNWRH[HFXWH
D VHDUFK ZDUUDQW LV MXVWLILHG E\ OHJLWLPDWH JRYHUQPHQW
LQWHUHVWV6HH6XPPHUV86DW QRWLQJYDULRXV
ODZHQIRUFHPHQWLQWHUHVWVHJSUHYHQWLQJIOLJKWLQWKHHYHQW
LQFULPLQDWLQJHYLGHQFHLVIRXQGPLQLPL]LQJWKHULVNRIKDUP
WRWKHRIILFHUVE\DOORZLQJRIILFHUVWRH[HUFLVHXQTXHVWLRQHG
FRPPDQG RI WKH VLWXDWLRQ DQG IDFLOLWDWLQJ WKH RUGHUO\
FRPSOHWLRQRIWKHVHDUFK
+RZHYHUWKRVHVWDWHLQWHUHVWVDUHQRWSUHVHQWZKHQDVLQ
WKLVFDVHWKRVHFRPLQJWRWKHVFHQHZHUHQRWRQWKHSUHPLVHV
ZKHQ WKH SROLFH H[HFXWHG WKH VHDUFK ZDUUDQW EXW UDWKHU
DUULYHGDIWHUWKHVHDUFKKDGEHHQVXEVWDQWLDOO\FRPSOHWHG,Q
WKLVFDVHWKHUHZDVQRFRQFHUQWKDWWKH%RKDQQRQVZRXOG
1R 8QLWHG6WDWHVY%RKDQQRQ
UHPRYHFRQWUDEDQGIURPWKHSUHPLVHVEHFDXVHWKHVHDUFKZDV
RYHU6LPLODUO\WKHSROLFHNQHZWKH%RKDQQRQVZHUHQRWWKH
RZQHUVRIWKHWUDLOHUWKXVWKHSROLFHZHUHQ¶WFRQFHUQHGWKDW
WKHPHQZRXOGIOHH$QGZKLOHWKHVDIHW\RIWKHRIILFHUVLV
DOZD\V RI SDUDPRXQW FRQFHUQ WKH %RKDQQRQV¶ DUULYDO
ZLWKRXW HYLGHQFH RI VRPHWKLQJ PRUH SRVHG QR PRUH RI D
WKUHDWWKDQDQ\RWKHUSDVVHUE\ZKRPLJKWKDYHZDQGHUHGLQWR
WKHDUHDVXUURXQGLQJWKHWUDLOHU7KHUHIRUH,GLVDJUHHZLWKWKH
PDMRULW\¶VDVVHUWLRQWKDWWKHSROLF\MXVWLILFDWLRQVRI6XPPHUV
DQG)RXQWDLQDSSO\WRWKLVFDVH
0RUHRYHU,EHOLHYHWKHPDMRULW\¶VUHOLDQFHRQWKH7KLUG
&LUFXLW¶V GHFLVLRQ LQ %DNHU Y 0RQURH 7RZQVKLS )G
G&LU LVPLVSODFHG,QWKDWFDVHWKH%DNHU
IDPLO\EURXJKWD†DFWLRQDJDLQVW0XQURH7RZQVKLSDQG
RQHRILWVRIILFHUVDOOHJLQJWKHLU)RXUWK$PHQGPHQWULJKWVKDG
EHHQYLRODWHG:KLOHSD\LQJDYLVLWWR0UV%DNHU¶VVRQWKH
%DNHUKDGIDPLO\DUULYHGDWWKHVRQ¶VKRPHMXVWDVWKHSROLFH
ZHUHLQLWLDWLQJDGUXJUDLG:KLOHPRVWRIWKHRIILFHUVEHJDQ
WRH[HFXWHWKH³QRNQRFN´ZDUUDQWRQWKHVRQ¶VKRXVHVRPH
RIILFHUVRUGHUHGWKH%DNHUIDPLO\WR³JHWGRZQ´IRUFHGWKHP
WR WKH JURXQG SRLQWHG JXQV DW WKHP KDQGFXIIHG WKHP
VHDUFKHGRQHRIWKH%DNHUFKLOGUHQDQGHPSWLHG0UV%DNHU¶V
SXUVHRQWKHJURXQG$IWHUDSSUR[LPDWHO\PLQXWHVWKH
YLVLWRUVZHUHUHOHDVHG
,Q%DNHUWKH7KLUG&LUFXLWMXVWLILHGWKHGHWHQWLRQRIWKH
%DNHU IDPLO\ E\ H[WHQGLQJ 6XPPHUV WR DSSO\ WR SHRSOH
FRPLQJ WR RU JRLQJ IURP WKH KRXVH LI WKH SROLFH QHHG WR
DVFHUWDLQZKHWKHUWKRVHSHRSOHOLYHWKHUH6HHLGDW
%XWWKH%DNHUFDVHLVIDFWXDOO\GLVWLQJXLVKDEOHIURPWKLVFDVH
,Q %DNHU WKH %DNHU IDPLO\ DUULYHG DV WKH GUXJ UDLG ZDV
FRPPHQFLQJ$VSROLFHRIILFHUVUDFHGWRWKHEXLOGLQJWKH
VLWXDWLRQKDGVHULRXVSRWHQWLDO WRHUXSWLQWRYLROHQFH7KH
7KLUG&LUFXLWFRQFOXGHGWKDWXQGHUWKRVHFLUFXPVWDQFHVWKH
RIILFHUVZHUHMXVWLILHGERWKIRUWKH%DNHU¶VSURWHFWLRQDQG
WKHLU RZQ WR VHTXHVWHU WKH %DNHUV XQWLO WKH\ FRXOG EH
LGHQWLILHG:KLOHWKH&RXUWIRXQGWKDWWKHDPRXQWRIIRUFH
XVHGZDVH[FHVVLYHLWFRQFOXGHGWKDWWKHSROLFHZHUHMXVWLILHG

-- 6 of 6 --