01a0358p.06

00-1399Court of Appeals for the Sixth CircuitOct 5, 2001

Full text

8QLWHG6WDWHVY(PXHJEXQDP 1R
\RXODGLHVDQGJHQWOHPHQIRUWKHLUSURWHFWLRQ:HDUHDW
ZDU<RXKDYHDGXW\WRSHUIRUPKHUH
$V D UHSUHVHQWDWLYH RI \RXU *RYHUQPHQW , DP FDOOLQJ
XSRQHYHU\RQHRI\RXWRGR\RXUGXW\
,GDWQ(YHQLIWKHUHPDUNVDWLVVXHLQWKHFDVHEHIRUH
XV WRGD\ HPERG\ DQ DSSHDO WR WKH QDWLRQDOLVP RI WKH MXU\
QRWKLQJ DERXW WKH FORVLQJ DUJXPHQW¶V DSSUREDWLRQ RI WKH
$PHULFDQ FULPLQDO MXVWLFH V\VWHP UHPRWHO\ DSSURDFKHV WKH
SUHMXGLFLDODUJXPHQWPDGHLQ9LHUHFNHVSHFLDOO\XQGHUDSODLQ
HUURUVWDQGDUG$VIRUWKHSURVHFXWRU¶VDUJXPHQWLQUHEXWWDO
DERXWWKHFXUUHQF\H[FKDQJHWKHVHFRPPHQWVUHVSRQGHGWR
'HIHQGDQW¶V FORVLQJ DUJXPHQW LQ ZKLFK (PXHJEXQHP
PDLQWDLQHG WKDW KH KDG EURXJKW WKH IRXQG RQ KLV
SHUVRQXSRQKLVDUUHVWZLWKKLPWR&DQDGDIURP1LJHULD,Q
FRQWH[W WKHQ WKH UHEXWWDO GLG QRW DSSHDO WR WKH MXU\¶V
QDWLRQDOLVPDQGZHUHMHFW'HIHQGDQW¶VFODLP
&RQFOXVLRQ
)RU WKH IRUHJRLQJ UHDVRQV ZH DIILUP 'HIHQGDQW¶V
FRQYLFWLRQ

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
3XUVXDQW WR 6L[WK &LUFXLW 5XOH
(/(&7521,& &,7$7,21 )(' $SS 3 WK &LU
)LOH 1DPH DS
81,7('67$7(6&28572)$33($/6
)257+(6,;7+&,5&8,7
BBBBBBBBBBBBBBBBB
81,7(' 67$7(6 2) $0(5,&$
3ODLQWLII$SSHOOHH
Y
&+8&.6 (08(*%81$0
'HIHQGDQW$SSHOODQW
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW
1R²'HQLVH3DJH+RRG'LVWULFW-XGJH
6XEPLWWHG$XJXVW
'HFLGHGDQG)LOHG2FWREHU
%HIRUH.(,7+1255,6DQG%$7&+(/'(5&LUFXLW
-XGJHV
BBBBBBBBBBBBBBBBB
&2816(/
21%5,()0DUWLQ-%HUHV6W&ODLU6KRUHV0LFKLJDQIRU
$SSHOODQW .DWKOHHQ 0RUR 1HVL $66,67$17 81,7('
67$7(6 $77251(< 'HWURLW 0LFKLJDQ IRU $SSHOOHH
&KXFNV(PXHJEXQDP2DNGDOH/RXLVLDQDSURVH

-- 1 of 20 --

8QLWHG6WDWHVY(PXHJEXQDP 1R
7KH UHFRUG YDULRXVO\ UHIHUV WR WKH 'HIHQGDQW DV ³&KXNV´ ³&KXFNV´
RU ³&KXFN´ DQG DOWHUQDWHV EHWZHHQ XVLQJ ³(PXHJEXQDP´ DQG
³(PXHJEXQHP´ DV KLV VXUQDPH %HFDXVH WKH 'HIHQGDQW KDV DYHUUHG WKDW
KLV SURSHU QDPH LV ³&KXNV (PXHJEXQHP´ DQG 'HIHQGDQW¶V SDVVSRUW XVHV
WKLV VSHOOLQJ ZH ZLOO UHIHU WR KLP DV ³(PXHJEXQHP´ RU ³'HIHQGDQW´
XQOHVV TXRWLQJ RU GLVFXVVLQJ PDWHULDO XVLQJ D GLIIHUHQW VSHOOLQJ
$FWXDOO\ D JUDQG MXU\ ILUVW LQGLFWHG (PXHJEXQHP RQ )HEUXDU\
$IWHU RXU GHFLVLRQ LQ 8QLWHG 6WDWHV Y 2YDOOH )G WK
&LU KROGLQJ WKDW FHUWDLQ JUDQG MXU\ VHOHFWLRQ SURFHGXUHV XVHG LQ
WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ YLRODWHG WKH -XU\ 6HOHFWLRQ DQG 6HUYLFH
$FW 86& † DQG WKH HTXDO SURWHFWLRQ SULQFLSOHV RI WKH )LIWK
$PHQGPHQW WKH GLVWULFW FRXUW GLVPLVVHG WKH LQGLFWPHQW ZLWKRXW
SUHMXGLFH 2Q 0DUFK D FULPLQDO FRPSODLQW FKDUJHG
(PXHJEXQHP ZLWK FRQVSLUDF\ WR LPSRUW KHURLQ DQG WKH JUDQG MXU\
VXSHUVHGHG WKH FRPSODLQW ZLWK WKH LQGLFWPHQW WKDW OHG WR 'HIHQGDQW¶V WULDO
DQG FRQYLFWLRQ
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
$/,&(0%$7&+(/'(5&LUFXLW-XGJH2Q-XQH
D IHGHUDO JUDQG MXU\ UHWXUQHG DQ LQGLFWPHQW DJDLQVW
³&KXFNV(PXHJEXQDPDNDμ&KXFN¶´DFLWL]HQRI1LJHULD
ZKRKDGEHHQDUUHVWHGLQ&DQDGDRQRQHFRXQWRIFRQVSLULQJ
ZLWK DQ LQGLYLGXDO QDPHG -RKQQLH ' 3OD\HU DQG RWKHUV WR
LPSRUWDSSUR[LPDWHO\JUDPVRIDVXEVWDQFHFRQWDLQLQJ
KHURLQLQWRWKH8QLWHG6WDWHVLQYLRODWLRQRI86&††
DQG)ROORZLQJKLVH[WUDGLWLRQWRWKH8QLWHG6WDWHV
'HIHQGDQWILOHGQXPHURXVSUHWULDOPRWLRQVERWKSURVHDQG
WKURXJKFRXQVHOWKHPRVWVLJQLILFDQWRIZKLFKIRUSXUSRVHV
RI WKLV DSSHDO LQFOXGH D PRWLRQ IRU D SUHWULDO KHDULQJ WR
GHWHUPLQHWKHDGPLVVLELOLW\RIFRFRQVSLUDWRUVWDWHPHQWVD
PRWLRQWRVWULNHDQGDPHQGWKHLQGLFWPHQWDQGDPRWLRQWR
GLVPLVV WKH LQGLFWPHQW SXUVXDQW WR $UWLFOH E RI WKH
9LHQQD&RQYHQWLRQRQ&RQVXODU5HODWLRQV7KHGLVWULFWFRXUW
GHQLHGWKHVHPRWLRQV
6KRUWO\ EHIRUH WULDO WKH GLVWULFW FRXUW HQWHUHG DQ RUGHU
DOORZLQJ (PXHJEXQHP WR UHSUHVHQW KLPVHOI ZLWK DGYLVRU\
1R 8QLWHG6WDWHVY(PXHJEXQDP
SXEOLFUHSXWDWLRQRIWKHMXGLFLDOSURFHHGLQJV8QLWHG6WDWHV
Y.LQJVOH\)G WK&LU FLWDWLRQV
RPLWWHG SHWLWLRQIRUFHUWILOHG1R -XQH
2QO\LQH[FHSWLRQDOFLUFXPVWDQFHVLQZKLFKWKHHUURULVVR
SODLQ WKDW WKH WULDO MXGJH DQG SURVHFXWRU ZHUH GHUHOLFW LQ
FRXQWHQDQFLQJLWZLOOWKLVFRXUWUHYHUVHDFRQYLFWLRQXQGHUWKH
SODLQ HUURU VWDQGDUG &DUUROO )G DW FLWDWLRQV
RPLWWHG
³8QOHVVFDOFXODWHGWRLQFLWHWKHSDVVLRQVDQGSUHMXGLFHVRI
WKH MXURUV DSSHDOV WR WKH MXU\ WR DFW DV WKH FRPPXQLW\
FRQVFLHQFHDUHQRWSHUVHLPSHUPLVVLEOH´6ROLYDQ)G
DW7KH6XSUHPH&RXUW¶VGHFLVLRQLQ9LHUHFNY8QLWHG
6WDWHV86 JXLGHVWKLVFRXUW¶VGHWHUPLQDWLRQ
RI ZKHWKHU D SURVHFXWRU LQWHQGV KLV FRPPHQWV WR LQFLWH
SUHMXGLFHDQGSDVVLRQLQWKHMXU\,G,Q9LHUHFNWKH&RXUW
UHYHUVHG WKH FRQYLFWLRQ RI D *HUPDQ IRUHLJQ DJHQW IRU
ZLOOIXOO\IDLOLQJWRLQIRUPWKH6HFUHWDU\RI6WDWHRIFHUWDLQ
EXVLQHVVDFWLYLWLHVWKURXJKZKLFKKHV\VWHPDWLFDOO\HQJDJHG
LQSURSDJDQGDRQEHKDOIRI*HUPDQ\$OWKRXJKWKH&RXUW
UHYHUVHGEDVHGRQLWVLQWHUSUHWDWLRQRIWKHVWDWXWHXQGHUZKLFK
9LHUHFN KDG EHHQ FRQYLFWHG WKH &RXUW QRWHG WKDW WKH
SURVHFXWRU¶VFORVLQJDUJXPHQW³PLJKWZHOOKDYHSODFHGWKH
MXGJPHQWRIFRQYLFWLRQLQMHRSDUG\´86DW7KH
SURVHFXWRU¶V FORVLQJ DUJXPHQW LQ 9LHUHFN LQFOXGHG WKLV
H[KRUWDWLRQ
,QFORVLQJOHWPHUHPLQG\RXODGLHVDQGJHQWOHPHQWKDW
WKLVLVZDU7KLVLVZDUKDUVKFUXHOPXUGHURXVZDU
7KHUH DUH WKRVH ZKR ULJKW DW WKLV YHU\ PRPHQW DUH
SORWWLQJ\RXUGHDWKDQGP\GHDWKSORWWLQJRXUGHDWKDQG
WKHGHDWKRIRXUIDPLOLHVEHFDXVHZHKDYHFRPPLWWHGQR
RWKHUFULPHWKDQWKDWZHGRQRWDJUHHZLWKWKHLULGHDVRI
SHUVHFXWLRQDQGFRQFHQWUDWLRQFDPSV7KLVLVZDU,WLV
DILJKWWRWKHGHDWK7KH$PHULFDQSHRSOHDUHUHO\LQJRQ
\RXODGLHVDQGJHQWOHPHQIRUWKHLUSURWHFWLRQDJDLQVWWKLV
VRUWRIDFULPHMXVWDVPXFKWKH\DUHUHO\LQJXSRQWKH
SURWHFWLRQ RI WKH 0HQ ZKR PDQ WKH JXQV LQ %DWDDQ
3HQLQVXODDQGHYHU\ZKHUHHOVH7KH\DUHUHO\LQJXSRQ

-- 2 of 20 --

8QLWHG6WDWHVY(PXHJEXQDP 1R
OHGKLPWRWKHFDU$UHDVRQDEOHLQIHUHQFHDULVLQJIURPWKLV
HYLGHQFHLVWKDW3OD\HU¶VFDOOWR&KXNVXSRQDUULYLQJLQWKH
8QLWHG6WDWHVWULJJHUHGDVHULHVRIHYHQWVWKDWFXOPLQDWHGLQ
WKH PHHWLQJ ZLWK -HII DW WKH DLUSRUW ,Q WKLV VHQVH WKH
SURVHFXWRU¶VVWDWHPHQWWKDW3OD\HUZDVDEOHWRJHW-HIIWRIO\
WR'HWURLWFRQVWLWXWHVDQDFFXUDWHVXPPDWLRQRIWKHHYLGHQFH
%HFDXVH SURVHFXWRUV ³PXVW EH JLYHQ OHHZD\ WR DUJXH
UHDVRQDEOHLQIHUHQFHVIURPWKHHYLGHQFH´ %\UGY&ROOLQV
)G WK&LU TXRWLQJ8QLWHG6WDWHVY
&ROOLQV)G WK&LU QRLPSURSULHW\
DWWDFKHGWRWKHSURVHFXWRU¶VSUHVHQWDWLRQRIKLVLQWHUSUHWDWLRQ
RIWKHHYLGHQFH0RUHRYHUSULRUWRPDNLQJWKHVWDWHPHQWWKH
SURVHFXWRU FDXWLRQHG WKH MXU\ WKDW KLV DUJXPHQW GLG QRW
FRQVWLWXWHHYLGHQFH)XUWKHUWKHGLVWULFWFRXUWLQVWUXFWHGWKH
MXU\WKDWWKHODZ\HUV¶DUJXPHQWVZHUHQRWHYLGHQFH7KHVH
DGGLWLRQDOVDIHJXDUGVJHQHUDOO\FXUHDQ\LPSURSULHWLHVLQD
FORVLQJDUJXPHQW%\UG)GDW&DUUROO)GDW
Q8QLWHG6WDWHVY$VKZRUWK)G WK
&LU
)LQDOO\'HIHQGDQWPDLQWDLQVWKDWWKHSURVHFXWRU¶VFORVLQJ
DUJXPHQWDQGUHEXWWDOGHSULYHGKLPRIDIDLUWULDOE\DURXVLQJ
WKHQDWLRQDOELDVHVRIWKHMXU\DQGE\LQVLQXDWLQJWKDWKHZDV
DOLDU%HFDXVH'HIHQGDQWREMHFWHGWRQHLWKHUWKHSURVHFXWRU¶V
SUHIDFH WR KLV FORVLQJ DUJXPHQW LQ ZKLFK KH H[WROOHG WKH
YLUWXHV RI WKH $PHULFDQ FULPLQDO MXVWLFH V\VWHP QRU WKH
UHPDUNVLQUHEXWWDODGGUHVVHGWRWKHFXUUHQF\H[FKDQJHWKLV
FRXUWUHYLHZVRQO\IRUSODLQHUURU³:KHUHDVKHUHDFULPLQDO
GHIHQGDQW KDV IDLOHG WR REMHFW EHORZ KH RU VKH PXVW
GHPRQVWUDWHWKDWWKHHUURUZDVSODLQDVGHILQHGE\>5XOHRI
WKH )HGHUDO 5XOHV RI &ULPLQDO 3URFHGXUH@ EHIRUH ZH PD\
H[HUFLVHRXUGLVFUHWLRQWRFRUUHFWWKHHUURU´8QLWHG6WDWHVY
.RHEHUOHLQ )G WK &LU IRRWQRWH
RPLWWHG ³3ODLQHUURUVRUGHIHFWVDIIHFWLQJVXEVWDQWLDOULJKWV
PD\ EH QRWLFHG DOWKRXJK WKH\ ZHUH QRW EURXJKW WR WKH
DWWHQWLRQRIWKHFRXUW´)(' 5 &5,0 3 E 7RHVWDEOLVK
SODLQHUURUDGHIHQGDQWPXVWVKRZWKDW DQHUURURFFXUUHG
LQWKHGLVWULFWFRXUW WKHHUURUZDVREYLRXVRUFOHDU WKH
HUURU DIIHFWHG GHIHQGDQW¶V VXEVWDQWLDO ULJKWV DQG WKLV
DGYHUVHLPSDFWVHULRXVO\DIIHFWHGWKHIDLUQHVVLQWHJULW\RU
1R 8QLWHG6WDWHVY(PXHJEXQDP
FRXQVHO DSSRLQWHG WR DVVLVW LQ KLV GHIHQVH DV QHHGHG
)ROORZLQJDVL[GD\WULDOWKHMXU\UHWXUQHGDYHUGLFWRIJXLOW\
RQ 6HSWHPEHU $W WKH FORVH RI QHLWKHU WKH
SURVHFXWLRQ¶V FDVH QRU KLV RZQ GLG 'HIHQGDQW PRYH IRU D
MXGJPHQWRIDFTXLWWDO
2Q 2FWREHU (PXHJEXQHP ILOHG D SRVWWULDO
PRWLRQVHHNLQJDMXGJPHQWRIDFTXLWWDORULQWKHDOWHUQDWLYH
D QHZ WULDO EDVHG RQ WKH VXIILFLHQF\ RI WKH HYLGHQFH WKH
JRYHUQPHQW¶VDOOHJHGLQWHUIHUHQFHZLWKREWDLQLQJDGHIHQVH
ZLWQHVV WKURXJK FRPSXOVRU\ SURFHVV DQG DOOHJHG
SURVHFXWRULDO PLVFRQGXFW GXULQJ FORVLQJ DUJXPHQWV $W D
KHDULQJWKHGLVWULFWFRXUWFRQFOXGHGWKDW'HIHQGDQWGLGQRW
WLPHO\ILOHWKHPRWLRQEXWSURFHHGHGWRGHQ\WKHPRWLRQRQ
WKHPHULWV'HSDUWLQJGRZQZDUGIURPWKHJXLGHOLQHUDQJHRI
VHYHQW\HLJKW WR QLQHW\ PRQWKV LPSULVRQPHQW SXUVXDQW WR
866*†.WKHGLVWULFWFRXUWVHQWHQFHG(PXHJEXQHP
WRWKHVWDWXWRU\PLQLPXPWHUPRIVL[W\PRQWKVLPSULVRQPHQW
WR EH IROORZHG E\ IRXU \HDUV RI VXSHUYLVHG UHOHDVH 7KLV
WLPHO\DSSHDOIROORZHG)RUWKHUHDVRQVWKDWIROORZZHZLOO
DIILUP'HIHQGDQW¶VFRQYLFWLRQ
,6WDWHPHQWRI)DFWV
(YLGHQFH DGGXFHG DW WULDO GHPRQVWUDWHV WKDW DW
DSSUR[LPDWHO\ DP RQ )HEUXDU\ -RKQQLH
3OD\HUDWWHPSWHGWRHQWHUWKH8QLWHG6WDWHVIURP&DQDGDDWWKH
%OXH:DWHU%ULGJHLQ3RUW+XURQ0LFKLJDQ:KHQ3OD\HU
FRXOG QRW SURGXFH LGHQWLILFDWLRQ 8QLWHG 6WDWHV FXVWRPV
RIILFLDOVUHIHUUHGKLPWRDVHFRQGDU\LQVSHFWLRQGXULQJZKLFK
LQVSHFWRUVIRXQGDEDJRIPDULMXDQDLQWKHSRFNHWRI3OD\HU¶V
SDQWV DQG D WKUHHE\ILYH LQGH[ FDUG RQ ZKLFK WKH QDPHV
³&KXFNV´DQG³-HII´DSSHDUHGQH[WWRDKRWHOSKRQHQXPEHU
DQGWKHQRWDWLRQ³H[WHQVLRQ´DQGDSKRQHQXPEHUZLWK
D1HZ-HUVH\DUHDFRGHUHVSHFWLYHO\$VXEVHTXHQWVHDUFKRI
3OD\HU¶VFDUWXUQHGXSDFRPSXWHUPRGHPER[XQGHUWKHIURQW
VHDWFRQWDLQLQJVL[W\QLQHSHOOHWVILOOHGZLWKDZKLWHSRZGHU\
VXEVWDQFHWKDWZHLJKHGJUDPVDQGWHVWHGSRVLWLYHIRU
VHYHQW\SHUFHQWSXUHKHURLQK\GURFKORULGH

-- 3 of 20 --

8QLWHG6WDWHVY(PXHJEXQDP 1R
,QLWLDOO\ 3OD\HU PDLQWDLQHG WKDW DQ LQGLYLGXDO QDPHG
$FDGDNKLVIRUPHUEURWKHULQODZDUUDQJHGIRUKLPWRSLFN
XS WKH KHURLQ LQ 7RURQWR $IWHU D FRQYHUVDWLRQ ZLWK KLV
EURWKHUD0LFKLJDQVWDWHWURRSHU3OD\HUGHFLGHGWRFRRSHUDWH
ZLWKWKHDXWKRULWLHV3OD\HUWKHQJDYHDVWDWHPHQWWKDW-HII
IURP1HZ-HUVH\ZKRPKHKDGPHWWKURXJK$FDGDNGLUHFWHG
KLP WR PHHW ³&KXNV´ DW 5RRP RI WKH &URZQH 3OD]D
+RWHO LQ 7RURQWR ZLWK RI WKH KHURLQ¶V
SXUFKDVH SULFH RQ )HEUXDU\ DURXQG SP
3OD\HULQGLFDWHGWKDWKHKDGQHYHUPHW&KXNVEHIRUHDQGWKDW
&KXNVVXSSOLHGKLPZLWKWKHSHOOHWVLQKLVKRWHOURRP:KHQ
3OD\HULQIRUPHG&KXNVWKDWKHKDGEURXJKWRQO\ZLWK
KLP&KXNVDGPRQLVKHG KLPWREULQJKDOIRIWKHSXUFKDVH
SULFHZLWKKLPLQWKHIXWXUHDVDGRZQSD\PHQWDQGWROGKLP
WR GHOLYHU WKH EDODQFH WR -HII WKH QH[W GD\ DW WKH 'HWURLW
0HWURSROLWDQ$LUSRUW&KXNVDOVRDVNHG3OD\HUWRFDOOKLPDW
WKHKRWHODVZHOODV-HIILQ1HZ-HUVH\XSRQKLVVDIHUHWXUQ
WRWKH8QLWHG6WDWHV
:LWK3OD\HU¶VFRQVHQWLQYHVWLJDWRUVUHFRUGHGKLVFDOOVWR
&KXNVIRUZKRP3OD\HUOHIWDYRLFHPDLOPHVVDJHDQG-HII
ZKRDQXQLGHQWLILHGLQGLYLGXDOLQGLFDWHGKDGOHIWIRU'HWURLW
RQ D IOLJKW VFKHGXOHG WR DUULYH WKDW DIWHUQRRQ $JHQWV
DUUDQJHGIRU3OD\HUDQGRQHXQGHUFRYHUFXVWRPVDJHQWDFWLQJ
DV 3OD\HU¶V FRXVLQ WR PHHW -HII DW WKH DLUSRUW :KHQ -HII
DUULYHGKHPHW3OD\HUDQGWKHXQGHUFRYHUDJHQW$WUDQVFULSW
RIWKHUHFRUGHGPHHWLQJVKRZVWKDW3OD\HUDQG-HIIGLVFXVVHG
WKHEDODQFHRIWKHPRQH\RZHGIRUWKHKHURLQDQGPHQWLRQHG
³&KXFN´ LQ WKHLU FRQYHUVDWLRQ :KHQ 3OD\HU DQG WKH
XQGHUFRYHU DJHQW WRRN -HII WR WKH WUXQN RI 3OD\HU¶V FDU WR
UHWULHYH WKH PRQH\ -HII ZDV DUUHVWHG $XWKRULWLHV ODWHU
LGHQWLILHG-HIIDV-HII(PXHJEXQHPDOVRNQRZQDV-RSKHW
8ZDILO,OREDWKHEURWKHURI'HIHQGDQW&KXNV(PXHJEXQHP
0HDQZKLOH FXVWRPV DJHQWV KDG FRQWDFWHG WKH 5R\DO
&DQDGLDQ0RXQWHG3ROLFH ³5&03´ ZLWKWKHLQIRUPDWLRQ
3OD\HU KDG SURYLGHG DERXW 'HIHQGDQW¶V DFWLYLWLHV DW WKH
&URZQH 3OD]D +RWHO 7KH 5&03 XQGHUWRRN LWV RZQ
LQYHVWLJDWLRQ DQG OHDUQHG WKDW KRWHO UHFRUGV OLVWHG WKH
RFFXSDQWRIURRPDV³0U(&KXFNV´:KHQDGYLVHG
1R 8QLWHG6WDWHVY(PXHJEXQDP
LVSURSHUGXULQJFORVLQJDUJXPHQWV8QLWHG6WDWHVY'UDNH
)G WK&LU
6LPLODUO\ WKH SURVHFXWRU¶V FRPPHQW WKDW 3OD\HU FDQQRW
³FRPHLQWRDFRXUWURRPDQGOLHWRWU\WRSXWRUIDEULFDWHD
FDVHRQDQRWKHUSHUVRQ´UHIOHFWVKLVDWWHPSWWRH[SODLQWKH
HYLGHQFH,QFRQWH[WWKHSURVHFXWRUE\WKLVUHPDUNDWWHPSWHG
WRJLYHWKHMXU\DFKRLFHHLWKHUDFFHSW3OD\HU¶VWHVWLPRQ\WKH
LQFRQVLVWHQFLHV RI ZKLFK DUH WKH SURGXFW RI D GLVWUDXJKW
LQGLYLGXDOLQVHULRXVWURXEOHRUFRQFOXGHWKDW3OD\HUKDVWULHG
WRIUDPH(PXHJEXQHP7RIRUHFORVHWKHODWWHUFRQFOXVLRQ
WKHSURVHFXWRUHPSKDVL]HGWKHHYLGHQFHRIUHFRUGRWKHUWKDQ
3OD\HU¶VWHVWLPRQ\7KLVWDFWLFDOGHFLVLRQ²QRWSURVHFXWRULDO
PLVFRQGXFW²DFFRXQWV IRU WKH GHVFULSWLRQ RI 3OD\HU DV D
³ZL]DUG´$FFRUGLQJO\WKHUHLVQRWKLQJLPSURSHUDERXWWKH
UHPDUNVFRQFHUQLQJ3OD\HU¶VFKDUDFWHU
(YHQ VR 'HIHQGDQW DUJXHV WKDW WKH SURVHFXWRU EDVHG WKH
VWDWHPHQWWKDW3OD\HU³KDGQHYHUEHHQFDXJKWXSLQWKLVNLQG
RIWURXEOHEHIRUH´XSRQHYLGHQFHNQRZQWREHIDOVH)RUWKLV
UHDVRQ'HIHQGDQWPDLQWDLQVWKDWKLVFRQYLFWLRQFDQQRWVWDQG
%XWWKLVSRVLWLRQWDNHVWKHFRPPHQWRXWRILWVFRQWH[W7KH
UHFRUG FOHDUO\ UHIOHFWV WKDW 3OD\HU DQG WKH SURVHFXWRU ZHUH
ERWKUHIHUULQJWRWKHFLUFXPVWDQFHVWKDWOHG3OD\HUWRFDOOKLV
EURWKHUDQGFRRSHUDWHZLWKWKHDXWKRULWLHVQDPHO\KDYLQJ
EHHQFDXJKWFURVVLQJWKH&DQDGLDQERUGHUZLWKJUDPV
RI KHURLQ )RU WKLV UHDVRQ QR PLVFRQGXFW DWWHQGHG WKH
SURVHFXWRU¶V DUJXPHQW WR WKH MXU\ UHJDUGLQJ WKH NLQG RI
WURXEOHLQZKLFK3OD\HUIRXQGKLPVHOI
'HIHQGDQWQH[WFRQWHVWVWKHDFFXUDF\RIWKHVWDWHPHQWWKDW
3OD\HUZDV³DEOHWRJHWWKLVLQGLYLGXDOWRIO\IURP1HZ-HUVH\
WR'HWURLW´7KHHYLGHQFHDGGXFHGDWWULDOVKRZVWKDW&KXNV
LQVWUXFWHG 3OD\HU WR FDOO KLP DW WKH KRWHO DQG -HII LQ 1HZ
-HUVH\XSRQDUULYLQJVDIHO\LQWKH8QLWHG6WDWHVDQGWRPHHW
-HIIWKHQH[WGD\DWWKH'HWURLW0HWURSROLWDQ$LUSRUWZLWKWKH
EDODQFH RI WKH SD\PHQW IRU WKH KHURLQ $IWHU OHDYLQJ D
PHVVDJHIRU&KXNV3OD\HUUHDFKHGDQXQLGHQWLILHGLQGLYLGXDO
DW -HII¶V QXPEHU LQ 1HZ -HUVH\ ZKR SURYLGHG IOLJKW
LQIRUPDWLRQIRU-HII3OD\HUWKHQPHW-HIIDWWKHDLUSRUWDQG

-- 4 of 20 --

8QLWHG6WDWHVY(PXHJEXQDP 1R
WULDO RU VR JURVV DV SUREDEO\ WR SUHMXGLFH WKH
GHIHQGDQW3ULWFKHWW)GDW FLWDWLRQVRPLWWHG
8QLWHG6WDWHVY7RFFR)G WK&LU
³,PSURSHUYRXFKLQJRFFXUVZKHQDMXU\FRXOGUHDVRQDEO\
EHOLHYHWKDWDSURVHFXWRUZDVLQGLFDWLQJDSHUVRQDOEHOLHILQD
ZLWQHVV¶FUHGLELOLW\´7D\ORUY8QLWHG6WDWHV)G
WK&LU SHUFXULDP FLWLQJ&DXVH\)GDW
,PSURSHUYRXFKLQJDOVRRFFXUVZKHQWKHSURVHFXWRU
DUJXHVHYLGHQFHQRWLQWKHUHFRUG8QLWHG6WDWHVY0DUWLQH]
)G WK&LU FLWDWLRQRPLWWHG RUZKHQ
WKH SURVHFXWRU VXSSRUWV WKH FUHGLELOLW\ RI D ZLWQHVV E\
H[SUHVVLQJ D SHUVRQDO EHOLHI LQ WKH WUXWKIXOQHVV RI WKH
ZLWQHVV¶VWHVWLPRQ\WKHUHE\SODFLQJWKHSUHVWLJHRIWKHRIILFH
RIWKH8QLWHG6WDWHV$WWRUQH\EHKLQGWKDWZLWQHVV)UDQFLV
)GDW
8QGHU WKHVH GHILQLWLRQV 'HIHQGDQW FRQWHQGV WKDW WKH
SURVHFXWRU¶V VWDWHPHQW DERXW 3OD\HU¶V ³FKDUDFWHU´ LQ
SDUWLFXODUWKHUHPDUNVWKDW3OD\HU³KDGQHYHUEHHQFDXJKWXS
LQ WKLV NLQG RI WURXEOH EHIRUH´ DQG FDQQRW ³FRPH LQWR D
FRXUWURRP DQG OLH WR WU\ WR SXW RU IDEULFDWH D FDVH RQ
DQRWKHUSHUVRQ´FRQVWLWXWHLPSURSHUYRXFKLQJ³,WLVFOHDU
WKDWWKH*RYHUQPHQWPLVOHGWKHMXU\WREHOLHYHWKDW3OD\HUZDV
D JRRG JX\ RI ZKROHVRPH FKDUDFWHU ZKR ZDV
XQFKDUDFWHULVWLFDOO\ FDXJKW XS LQ DQ LVRODWHG GUXJ FRXULHU
VLWXDWLRQ7KDWKHVKRXOGEHEHOLHYHGEHFDXVHKHμFDPHFOHDQ¶
DQGFRRSHUDWHGZLWKWKHJRYHUQPHQWWRMRLQIRUFHVDJDLQVWWKH
UHDOYLOODLQ'HIHQGDQW´
$OWKRXJK WKH UHFRUG UHIOHFWV WKDW 3OD\HU KDG D FULPLQDO
UHFRUGIURPSUHYLRXVGUXJWUDQVDFWLRQV3OD\HUWHVWLILHGWKDW
ZKHQ KH ZDV DUUHVWHG KH ZDV VFDUHG K\VWHULFDO DQG ³LQ D
EXQFKRIWURXEOH´3OD\HUDOVRVWDWHGWKDWKHKDG³QHYHUEHHQ
LQWURXEOHOLNHWKLVEHIRUH´,QOLJKWRIWKLVWHVWLPRQ\ WKH
SURVHFXWRU¶VFKDOOHQJHGVWDWHPHQWQHLWKHUDUJXHGIDFWVQRWLQ
WKHUHFRUGQRUH[SUHVVHGDSHUVRQDORSLQLRQDERXW3OD\HU¶V
FUHGLELOLW\ 5DWKHU WKH SURVHFXWRU ³VXPPDUL]H>G@ WKH
HYLGHQFHDQGFRPPHQW>HG@XSRQLWVVLJQLILFDQFH´DV
1R 8QLWHG6WDWHVY(PXHJEXQDP
WKDWWKHRFFXSDQWZDVFKHFNLQJRXWRIWKHKRWHOWKH5&03
DUUHVWHG KLP $ VHDUFK RI (PXHJEXQHP \LHOGHG
DSSUR[LPDWHO\LQ8QLWHG6WDWHVFXUUHQF\3XUVXDQWWR
D ZDUUDQW WKH 5&03 VHDUFKHG URRP DQG UHFRYHUHG
'HIHQGDQW¶V RUJDQL]HU FRQWDLQLQJ D UHFHLSW IURP :HVWHUQ
8QLRQIRUZLUHGWR-HII(PXHJEXQHPLQ1HZ-HUVH\
RQ)HEUXDU\'HIHQGDQW¶VDGGUHVVERRNOLVWLQJ-HII
(PXHJEXQHP¶VSKRQHQXPEHULQ1HZ-HUVH\XQGHUWKHOHWWHU
³-´ DQG D QXPEHU IRU -RKQQLH 3OD\HU RQ WKH VDPH SDJH D
SLHFHRISDSHULQWKHJDUEDJH FDQ VXEWUDFWLQJIURP
DQGDOVREHDULQJWKHQXPEHUDQGDQRWHIRXQG
LQ'HIHQGDQW¶VEULHIFDVHUHDGLQJ³+HPXVWFRPHZLWKDWOHDVW
òQH[WWLPH´7KHKRWHO¶VUHFRUGVUHIOHFWWKDWGXULQJKLVVWD\
'HIHQGDQWPDGHWZHOYHFDOOVWR-HII(PXHJEXQHP¶VSKRQH
QXPEHU LQ 1HZ -HUVH\ 7KHVH UHFRUGV DOVR VKRZ WKDW
'HIHQGDQWSDLGFDVKRQDGDLO\EDVLVIRUKLVVWD\DWWKHKRWHO
EHJLQQLQJ RQ )HEUXDU\ 8QWLO KLV H[WUDGLWLRQ
'HIHQGDQWUHPDLQHGLQ&DQDGLDQFXVWRG\IROORZLQJKLVDUUHVW
DQGWKH&DQDGLDQJRYHUQPHQWHYHQWXDOO\GLVPLVVHGFKDUJHV
LQIDYRURILQGLFWPHQWE\$PHULFDQDXWKRULWLHV
,,7KH9LHQQD&RQYHQWLRQRQ&RQVXODU5HODWLRQV
&ODLPLQJWKDWIHGHUDORIILFLDOVYLRODWHGKLVULJKWVXQGHUWKH
9LHQQD&RQYHQWLRQRQ&RQVXODU5HODWLRQV$SUDUW
867 8176 ³9LHQQD
&RQYHQWLRQ´ ZKLFKXSRQWKHDUUHVWRIDIRUHLJQQDWLRQDO
UHTXLUHVQRWLILFDWLRQRIWKHGLSORPDWLFUHSUHVHQWDWLYHVRIWKH
QDWLRQRIZKLFKWKHLQGLYLGXDOWDNHQLQWRFXVWRG\LVDFLWL]HQ
DQGWKDWWKLVYLRODWLRQSUHMXGLFHGKLVGHIHQVH(PXHJEXQHP
VHHNV GLVPLVVDO RI WKH LQGLFWPHQW RU LQ WKH DOWHUQDWLYH
UHYHUVDORIKLVFRQYLFWLRQ
$)DFWXDO%DVLVRIWKH&ODLP
6RPHWLPHLQ-XQHDSSUR[LPDWHO\RQH\HDUDIWHUKLV
H[WUDGLWLRQWRWKH8QLWHG6WDWHV(PXHJEXQHPFRPSODLQHGWR
WKHGLVWULFWFRXUWWKDWSURVHFXWRUVKDGQRWKRQRUHGKLVULJKWV
XQGHUWKH9LHQQD&RQYHQWLRQ$WDKHDULQJRQ-XQH
WKH GLVWULFW FRXUW DOORZHG WKH SDUWLHV DGGLWLRQDO WLPH WR
UHVHDUFK WKH PDWWHU 7UHDWLQJ 'HIHQGDQW¶V FRPSODLQW DV D

-- 5 of 20 --

8QLWHG6WDWHVY(PXHJEXQDP 1R
PRWLRQIRUWKHDVVLVWDQFHRI1LJHULDQFRQVXODURIILFLDOVDWD
KHDULQJ RQ -XQH WKH GLVWULFW FRXUW GLUHFWHG WKH
SURVHFXWRUWRFRQWDFWWKH1LJHULDQFRQVXODWH6XEVHTXHQWO\
ERWKWKHSURVHFXWRUDQG(PXHJEXQHPGLGVR7KHSURVHFXWRU
VHQWDOHWWHULQIRUPLQJWKH1LJHULDQFRQVXODWHRIWKHFULPH
ZLWKZKLFK(PXHJEXQHPKDGEHHQFKDUJHGWKHORFDWLRQDW
ZKLFKKHZDVEHLQJKHOGDQGWKHQDPHDQGDGGUHVVRIKLV
DWWRUQH\ )RU KLV SDUW 'HIHQGDQW VRXJKW WKH DVVLVWDQFH RI
1LJHULDQ RIILFLDOV LQ SURFXULQJ ZLWQHVVHV DQG SK\VLFDO
HYLGHQFHIURP1LJHULD,QDOHWWHUGDWHG$XJXVWWKH
1LJHULDQ(PEDVV\LQ:DVKLQJWRQ'&VHQW'HIHQGDQWWKH
IROORZLQJOHWWHU
, DP GLUHFWHG WR DFNZROHGJH >VLF@ WKH UHFHLSW RI \RXU
OHWWHUDQGRWKHUUHOHYDQWDWWDFKHGGRFXPHQWVUHJDUGLQJ
\RXUFDVH&5'7+RZHYHUZHKDYHQRW
EHHQLQIRUPHGQRUKDYHLWLQRXUUHFRUGDVDQRWLFHRI
\RXUDUUHVWQRWXQWLO\RXFDOOHGDQGOHIWDPHVVDJHLQWKH
YRLFH PDLO $OVR WKH UHTXHVW IRU \RXU ZLWQHVVHV ZKR
UHVLGHV >VLF@ LQ 1LJHULD WR EH DW \RXU WULDO LV XQWLPHO\
JLYHQWKHIDFW\RXUZLWQHVVHVLIFRQWDFWHGZRXOGUHTXLUH
DWOHDVWWZRPRQWKVWRVHHNDQGREWDLQWUDYHOGRFXPHQWV
ZKLFKLQFOXGH86YLVDWKLVLVEHFDXVHRIWKHLUQHZUXOH
QRZ
&DQZHQRZORRNIRUZDUGWRWKH$XJXVWVWIRU
WKHWULDODQGVHHZKDWLVFRPLQJRXWDQGWKHQZHFDQJR
IURPWKHUH0\VHQLRURIILFHU $$0XVD LVQRWLQWKH
FRXQWU\ULJKWQRZ+HLVWRLQLWLDWHWKHDSSURYDOIRURXU
FRPLQJWREHDWWKHWULDOZKLFK,FDQQRWJXDUDQWHHLIZH
ZLOOEHFRPLQJRUQRWEXWDWDQ\FDVHZHZLVK\RXWKH
EHVW
8SRQ UHFHLSW RI WKH OHWWHU (PXHJEXQHP ILOHG D PRWLRQ WR
GLVPLVVWKHLQGLFWPHQWSXUVXDQWWRWKH9LHQQD&RQYHQWLRQ
DQGFODLPHGSUHMXGLFHIURPWKHGHQLDORIHDUOLHUFRQWDFWZLWK
1LJHULDQGLSORPDWLFUHSUHVHQWDWLYHV
(PXHJEXQHP¶VFODLPRISUHMXGLFHDULVHVIURPWKHGHIHQVH
KHZDQWHGWRPDNHDWWULDO8QGHUWKHGHIHQVHWKHRU\RIWKH
FDVH (PXHJEXQHP DQ H[HFXWLYH ZLWK D 1LJHULDQ
1R 8QLWHG6WDWHVY(PXHJEXQDP
RIWKHMXU\IDFWVQRWLQHYLGHQFH8QLWHG6WDWHVY:LHG\N
)G WK&LU FLWLQJ8QLWHG6WDWHVY/HRQ
)G WK&LU /LNHZLVHDSURVHFXWRU
FDQQRWLPSURSHUO\YRXFKIRUWKHFUHGLELOLW\RIKLVZLWQHVVHV
8QLWHG6WDWHVY&DXVH\)G WK&LU
RULQFLWHWKHSDVVLRQVDQGSUHMXGLFHVRIWKHMXU\E\DSSHDOLQJ
WRWKHQDWLRQDORUFRPPXQLW\LQWHUHVWVRIMXURUV8QLWHG6WDWHV
Y6ROLYDQ)G WK&LU FLWLQJ
9LHUHFNY8QLWHG6WDWHV86
:KHQUHYLHZLQJFODLPVRISURVHFXWRULDOPLVFRQGXFWZH
GHWHUPLQHILUVWZKHWKHUWKHVWDWHPHQWVZHUHLPSURSHU
6HH8QLWHG6WDWHVY.UHEV)G WK
&LU ,IWKH\DSSHDULPSURSHUZHWKHQORRNWRVHH
LIWKH\ZHUHIODJUDQWDQGZDUUDQWUHYHUVDO6HH8QLWHG
6WDWHVY&DUUROO)G WK&LU 7R
GHWHUPLQHIODJUDQF\WKHVWDQGDUGVHWE\WKLV&RXUWLV
ZKHWKHU WKH VWDWHPHQWV WHQGHG WR PLVOHDG WKH MXU\ RU
SUHMXGLFHWKHGHIHQGDQW ZKHWKHUWKHVWDWHPHQWVZHUH
LVRODWHG RU DPRQJ D VHULHV RI LPSURSHU VWDWHPHQWV
ZKHWKHUWKHVWDWHPHQWVZHUHGHOLEHUDWHO\RUDFFLGHQWDOO\
EHIRUHWKHMXU\DQG WKHWRWDOVWUHQJWKRIWKHHYLGHQFH
DJDLQVWWKHDFFXVHG8QLWHG6WDWHVY0RQXV)G
WK&LU FLWLQJ8QLWHG6WDWHVY&REOHLJK
)G WK &LU &DUUROO )G DW
FLWLQJ8QLWHG6WDWHVY/HRQ)G
WK&LU 7RUHYHUVHDFRQYLFWLRQEHFDXVHRIDQ
LPSURSHUQRQIODJUDQWVWDWHPHQWDUHYLHZLQJFRXUWPXVW
GHWHUPLQHWKDW WKHSURRIRIWKHGHIHQGDQW VJXLOWLVQRW
RYHUZKHOPLQJ WKHGHIHQVHFRXQVHOREMHFWHGDQG
WKHWULDOFRXUWIDLOHGWRFXUHWKHLPSURSULHW\E\IDLOLQJWR
DGPRQLVKWKHMXU\0RQXV)GDW&DUUROO
)GDW FLWLQJ8QLWHG6WDWHVY%HVV)G
WK&LU 8QLWHG6WDWHVY)UDQFLV
)G WK &LU VHH DOVR 3ULWFKHWW Y
3LWFKHU)G WK&LU TXRWLQJ6HUUD
Y0LFKLJDQ'HSWRI&RUUHFWLRQV)G
WK&LU :HZLOOQRWRYHUWXUQDYHUGLFWXQOHVV
WKH SURVHFXWRULDO PLVFRQGXFW LV VR SURQRXQFHG DQG
SHUVLVWHQWWKDWLWSHUPHDWH>G@WKHHQWLUHDWPRVSKHUHRIWKH

-- 6 of 20 --

8QLWHG6WDWHVY(PXHJEXQDP 1R
$QG WKURXJK WKH FRXUVH RI WKH FRQYHUVDWLRQ WKDW
WUDQVSLUHGLQWKDWYHKLFOHQRWRQO\GLGWKH\UHIHUHQFHKRZ
PXFKPRQH\ZDVVWLOORZHGIRUWKHGRZQSD\PHQWEXW
WKH\DOVRUHIHUHQFHGWKHIDFWWKDWLWZDVKHURLQ$QGWKH
QDPH&KXFNRU&KXFNVZDVDOVRUHIHUHQFHG
'XULQJ UHEXWWDO WKH SURVHFXWRU GHOLYHUHG WKH IROORZLQJ
VXPPDWLRQ
2QHRIWKHPDLQSRUWLRQVRIWKDWDUJXPHQW\RXMXVWKHDUG
LVZLWKUHJDUGWRVRPHPRQH\WKDWZDVVHL]HGIURPWKH
SHUVRQRIWKH'HIHQGDQWRUDWOHDVWIURPKLVKRWHOURRP
LQ7RURQWR&DQDGDEHFDXVHKHLVDEXVLQHVVPDQIURP
1LJHULD KH KDG WKDW PRQH\ DQG KH KDG JRQH WR WKH
PRQH\H[FKDQJHWRJHWWKDWPRQH\:HZLOOFORVHRQ
WKDW

/HW¶VQRZWXUQWRWKHPRQH\
:HDUHGHDOLQJKHUHZLWKD1LJHULDQEXVLQHVVPDQDPDQ
ZKR VLWV RQ WKH ERDUG RI GLUHFWRUV RI YDULRXV
FRUSRUDWLRQVDPDQZKRLVWKHFKLHIH[HFXWLYHRIILFHURI
WKHVH YDULRXV FRUSRUDWLRQV $ PDQ ZKR FRPHV WR WKH
FRXQWU\ RI &DQDGD IRU WKH SXUSRVHV RI DWWHQGLQJ D
VHPLQDU LQ &DQDGD 6R KH JRHV WR D 1LJHULDQ PRQH\
H[FKDQJHDQGZKDWNLQGRIPRQH\GRHVKHJHW"8QLWHG
6WDWHVFXUUHQF\6RWKDW\RXFDQWUDYHOLQWKHFRXQWU\RI
&DQDGD
$JDLQ /DGLHV DQG *HQWOHPHQ DOORZ \RXU UHDVRQ DQG
FRPPRQVHQVHWRGHWHUPLQHLILQIDFWWKDWZDVWKHFDVH
7KDQN\RX
:KHWKHU WKH JRYHUQPHQW¶V FORVLQJ DUJXPHQW FRQVWLWXWHV
SURVHFXWRULDOPLVFRQGXFWSUHVHQWVDPL[HGTXHVWLRQRIODZ
DQGIDFWWKDWZHUHYLHZGHQRYR8QLWHG6WDWHVY&ODUN
)G WK&LU 6WDWHPHQWVE\DSURVHFXWRULQ
DFORVLQJDUJXPHQWDUHQRWSURSHULIWKH\EULQJWRWKHDWWHQWLRQ
1R 8QLWHG6WDWHVY(PXHJEXQDP
WHOHFRPPXQLFDWLRQV FRPSDQ\ QDPHG ,QWUDPHGLD /WG
DWWHQGHGDWUDGHFRQIHUHQFHKHOGLQ7RURQWRIURP)HEUXDU\
WR$FFRUGLQJWRDIILGDYLWVDSSHQGHGWR'HIHQGDQW¶V
PRWLRQ WR GLVPLVV WKH LQGLFWPHQW WZR 1LJHULDQ ZLWQHVVHV
(PXHJEXQHPZLVKHGWRSUHVHQWDWWULDOZRXOGKDYHWHVWLILHG
WKDWRQ)HEUXDU\'HIHQGDQWSXUFKDVHGZRUWK
RI$PHULFDQFXUUHQF\EHIRUHOHDYLQJ1LJHULDIRU7RURQWR$W
WULDO(PXHJEXQHPVXJJHVWHGWKDWKLVDUUHVWVWHPPHGIURPD
FDVH RI PLVWDNHQ LGHQWLW\ EHFDXVH DQ XQNQRZQ LQGLYLGXDO
QDPHG³&KXFN´PRVWOLNHO\$FDGDNZKRZDVDOVRNQRZQDV
³2RFKLH´ DQG XVHG DSSUR[LPDWHO\ WZHQW\ DOLDVHV VROG WKH
KHURLQ WR 3OD\HU 'XULQJ SUHWULDO SURFHHGLQJV GHIHQVH
FRXQVHOGLVFORVHGWKLVWKHRU\RIWKHFDVHWRWKHGLVWULFWFRXUW
,Q KLV PRWLRQ WR GLVPLVV WKH LQGLFWPHQW 'HIHQGDQW
UHSUHVHQWHGWKDWKHZLVKHGWRFDOODWKLUG1LJHULDQZLWQHVVWR
VXSSRUWWKLVYHUVLRQRIHYHQWVE\WHVWLI\LQJWKDWDQLQGLYLGXDO
QDPHG³8FKH2GLQDND&KXFN´KDGVXSSOLHG3OD\HUZLWKWKH
KHURLQ'HIHQGDQWH[SODLQHGWKDWWKHGRFXPHQWVIRXQGRQKLV
SHUVRQ DQG LQ KLV KRWHO URRP WKDW DSSHDUHG WR FRUURERUDWH
3OD\HU¶VVWRU\UHODWHGWRDWUDQVDFWLRQKHZDVDWWHPSWLQJWR
QHJRWLDWHDWWKHWUDGHFRQIHUHQFH
$W D KHDULQJ RQ WKH PRUQLQJ RI WULDO WKH GLVWULFW FRXUW
GHQLHG 'HIHQGDQW¶V PRWLRQ 5HFRJQL]LQJ WKDW WKH 9LHQQD
&RQYHQWLRQ SURWHFWV WKH DELOLW\ RI FRQVXODU RIILFLDOV WR
SHUIRUPWKHLUGLSORPDWLFIXQFWLRQVWKHGLVWULFWFRXUWSRVLWHG
WKDWDOORZLQJDGHIHQGDQWWRFRQWDFWWKHUHSUHVHQWDWLYHVRIKLV
QDWLRQFRQVWLWXWHGWKHRQO\UHPHG\MXGLFLDOO\DYDLODEOHIRUD
YLRODWLRQRIWKHWUHDW\)RUWKLVUHDVRQWKHFRXUWGHFOLQHGWR
GLVPLVV WKH LQGLFWPHQW $OWKRXJK WKH FRXUW FRQFHGHG WKDW
(PXHJEXQHP PLJKW VXIIHU VRPH SUHMXGLFH IURP QRW EHLQJ
DIIRUGHGWKHRSSRUWXQLW\WRFDOOWKH1LJHULDQZLWQHVVHVDWKLV
WULDO LW WUHDWHG WKH GRFXPHQWDU\ HYLGHQFH RI WKH FXUUHQF\
H[FKDQJH LQ 1LJHULD DV PLWLJDWLQJ WKH DEVHQFH RI WKH RUDO
WHVWLPRQ\RIWKHWZR1LJHULDQDIILDQWV$VIRU'HIHQGDQW¶V
FODLP WKDW WKHUH ZDV D WKLUG ZLWQHVV ZKR ZRXOG LGHQWLI\
³2RFKLH´RU³8FKH´DVWKH³&KXFN´ZKRVXSSOLHG3OD\HUZLWK
KHURLQWKHFRXUWIRXQGQRFRQQHFWLRQEHWZHHQODFNRIQRWLFH
WR 1LJHULDQ GLSORPDWV XQGHU WKH 9LHQQD &RQYHQWLRQ DQG
'HIHQGDQW¶VLQDELOLW\WRREWDLQWKHWHVWLPRQ\RIWKLVZLWQHVV

-- 7 of 20 --

8QLWHG6WDWHVY(PXHJEXQDP 1R
8QGHU WKH ODQJXDJH RI WKH WUHDW\ WKH ³VHQGLQJ 6WDWH´ LV WKH QDWLRQ
RI WKH DUUHVWHG IRUHLJQ QDWLRQDO DQG WKH ³UHFHLYLQJ 6WDWH´ LV WKH DUUHVWLQJ
QDWLRQ 8QLWHG 6WDWHV Y &KDSDUUR$OFDQWDUD )G Q WK
&LU FHUW GHQLHG 6 &W
,Q VXP WKH FRXUW IRXQG LQVXIILFLHQW SUHMXGLFH WR ZDUUDQW
GLVPLVVDORIWKHLQGLFWPHQW
1RQHWKHOHVVWKHGLVWULFWFRXUWRIIHUHGWRGHOD\WKHWULDOWR
HQDEOH(PXHJEXQHPWRREWDLQZLWQHVVHVDQGHYLGHQFHIURP
1LJHULD5HFRJQL]LQJWKDW'HIHQGDQWKDGWKURXJKRXWWKHSUH
WULDOSURFHHGLQJVLQVLVWHGXSRQKLVULJKWVXQGHUWKH6SHHG\
7ULDO$FW86&†WKHFRXUWDGYLVHGKLPWKDWWKLV
GHOD\ZRXOGWROOWKHUXQQLQJRIWKHVHYHQW\GD\SHULRGDIWHU
LQGLFWPHQWZLWKLQZKLFKDFULPLQDOWULDOPXVWRFFXUXQGHUWKH
6SHHG\ 7ULDO $FW 'HIHQGDQW HOHFWHG WR SURFHHG WR WULDO
ZLWKRXWWKHZLWQHVVHVDQGWKHWULDOEHJDQWKDWGD\
%$UWLFOHRIWKH9LHQQD&RQYHQWLRQ
%RWKWKH8QLWHG6WDWHVDQG1LJHULDDUHSDUWLHVWRWKH9LHQQD
&RQYHQWLRQ D VHYHQW\QLQH DUWLFOH PXOWLODWHUDO WUHDW\ WKDW
JRYHUQV WKH HVWDEOLVKPHQW RI FRQVXODU UHODWLRQV EHWZHHQ
QDWLRQV DQG GHILQHV WKH IXQFWLRQV RI D FRQVXODWH 8QLWHG
6WDWHVY$OYDUDGR7RUUHV)6XSSG 6'&DO
DII¶G1R:/ WK&LU6HSW
$UWLFOHDSSHDUVLQ&KDSWHU,,RIWKHWUHDW\ZKLFK
LVHQWLWOHG³)DFLOLWLHV3ULYLOHJHVDQG,PPXQLWLHV5HODWLQJWR
&RQVXODU3RVWV&DUHHU&RQVXODU2IILFHUVDQG2WKHU0HPEHUV
RID&RQVXODU3RVW´DQGSURYLGHVLQLWVHQWLUHW\
&RPPXQLFDWLRQDQGFRQWDFWZLWKQDWLRQDOVRIWKH
VHQGLQJ6WDWH
:LWKDYLHZWRIDFLOLWDWLQJWKHH[HUFLVHRIFRQVXODU
IXQFWLRQVUHODWLQJWRQDWLRQDOVRIWKHVHQGLQJ6WDWH
D FRQVXODURIILFHUVVKDOOEHIUHHWRFRPPXQLFDWHZLWK
QDWLRQDOVRIWKHVHQGLQJ6WDWHDQGWRKDYHDFFHVVWR
WKHP1DWLRQDOVRIWKHVHQGLQJ6WDWHVKDOOKDYHWKH
1R 8QLWHG6WDWHVY(PXHJEXQDP
1RZZHDUHJHWWLQJEH\RQGWKHUHDOPRI MXVWEHLQJD
JRRGOLDUZHDUHQRZJHWWLQJLQWRWKHUHDOPRIEHLQJD
ZL]DUG%HFDXVHWKLVZL]DUGDOVRLQGLFDWHGWRWKHODZ
HQIRUFHPHQWRIILFHUVQRWRQO\FRXOGKHWHOOWKHPZKDW
KDSSHQHG LQ WKH SDVW EXW KH FRXOG IRUHWHOO WKH IXWXUH
EHFDXVHKHLQGLFDWHGQRWRQO\GLGKHJHWWKHKHURLQIURP
WKH 'HIHQGDQW LQ 7RURQWR 2QWDULR &DQDGD EXW DW WKH
WLPH WKH\ ZHQW WKURXJK WKH QHJRWLDWLRQV DQG KH WRRN
UHFHLSWRIWKDWKHURLQKH>Z@DVJLYHQLQVWUXFWLRQVWKDW
DIWHU KH UHWXUQHG VDIHO\ WR WKH 8QLWHG 6WDWHV KH ZDV
VXSSRVHG WR PDNH FRQWDFW ZLWK -HII WKH WHOHSKRQH
QXPEHU WKDW¶V OLVWHG RQ WKDW VDPH ILOH FDUG WKDW ZDV
VHL]HGIURPKLPDWWKHWLPHRIKLVDUUHVW
$QGORDQGEHKROGKHLVDEOHWRJHWWKLVLQGLYLGXDOWRIO\
IURP1HZ-HUVH\WR'HWURLWDQGWKHUHDIWHUPHHWKLPDW
'HWURLW0HWURSROLWDQ$LUSRUWWDNHKLPWRDYHKLFOHDQG
HQJDJHKLPLQFRQYHUVDWLRQ²
7+('()(1'$172EMHFWLRQDJDLQ<RXU+RQRU0U
6DXJHWLVDUJXLQJZKDWLVQRWLQHYLGHQFH-RKQQLH3OD\HU
KDVQHYHUVDLGWKDWKHZDVDEOHWRJHWLQWRXFKZLWK-HII
RQWKHSKRQH-RKQQLH3OD\HUV>VLF@KDVWHVWLILHGWKDWZDV
DOUHDG\RQWKHIOLJKWZKHQKHEHFDPHDZDUH
7+(&2857,WLVQRWHGDQGSUHVHUYHGIRUWKHUHFRUG
DQGRYHUUXOHG<RXPD\FRQWLQXH
056$8*(77KDQN\RX
+H ZDV DEOH WR JHW WKH PDQ WR ZDON WR D YHKLFOH DQG
HQJDJHKLPLQDFRQYHUVDWLRQZLWKUHJDUGWRKHURLQ
1RZWKLVZDVDQLQGLYLGXDOWKDW0U3OD\HUKDGLQGLFDWHG
WR\RXWKDWKHKDGNQRZQIURPWKHSDVWRND\7KLQNIRU
D PRPHQW +H GULYHV RXW WR 'HWURLW 0HWURSROLWDQ
$LUSRUWDPDMRULQWHUQDWLRQDODLUSRUWLQWKH8QLWHG6WDWHV
DQGLVDEOHWRZDONXSWRVRPHRQHDQGMXVWZDONKLPWR
DYHKLFOH7KDW¶VSUREDEO\EHFDXVHKHNQHZWKHSHUVRQ
DQGKHKDGLQIDFWGHDOWZLWKWKHPDQLQWKHSDVW

-- 8 of 20 --

8QLWHG6WDWHVY(PXHJEXQDP 1R
6RZKDWZHKDYHJRWKHUHLV,EHOLHYHDPDQZKRZDV
WU\LQJWRH[WULFDWHKLPVHOIIURPDSUREOHPWKDWKHNQRZV
KH LV LQ GHHS WURXEOH RU ZH KDYH JRW RXUVHOYHV D UHDO
ZL]DUG :H KDYH JRW VRPHRQH ZKR FDQ FRPH LQWR D
FRXUWURRPDQGOLHDQGWRWU\WRSXWRUIDEULFDWHDFDVHRQ
DQRWKHUSHUVRQ
7+('()(1'$172EMHFWLRQ<RXU+RQRU+HLV
YRXFKLQJIRUWKHFUHGLELOLW\RI-RKQQLH3OD\HUE\VD\LQJ
WKDWKHFDQQRWFRPHWRWKHFRXUWURRPWROLH
7+(&2857,GRQ¶WWKLQNWKDW¶VSUHFLVHO\ZKDWKHLV
VD\LQJDOWKRXJKWKH-XU\PD\LQIHUWKDW,VXSSRVH$QG
,WKLQNWKDW>WKHSURVHFXWRU@KDVDOUHDG\VDLGKHLVQRW
YRXFKLQJIRUWKHZLWQHVVDQGWKDWKHZRQ¶W%XWKHLV
HQWLWOHGWRVSHDNWRWKHFUHGLELOLW\RIKLVZLWQHVV
>$86$6$8*(7@7KDQN\RX<RXU+RQRU
,I DOO \RX KDG EHIRUH \RX ZDV WKH EDUH WHVWLPRQ\ RI
-RKQQLH3OD\HULQWKLVFDVH,ZRXOGVXEPLWWR\RXWKDW
EDVHGRQWKHLQVWUXFWLRQVWKDW\RXDUHJRLQJWRJHWIURP
WKH-XGJHDQGWKDWLVWRVD\WKDW\RXDUHVXSSRVHGWRORRN
DWWKHWHVWLPRQ\RISHRSOHZKRDUHDFFRPSOLFHVSHRSOH
ZKR KDYH EHHQ JUDQWHG UHGXFHG FULPLQDO OLDELOLW\ IRU
SXUSRVHVRIFRPLQJLQWRWHVWLI\EHIRUHDMXU\,ZRXOG
VXEPLWWR\RXWKDWLI\RXRQO\KDGWKDWWHVWLPRQ\DQG
WKDWEDUHWHVWLPRQ\DORQHWKDWLWZRXOGEH\RXUGXW\WR
ILQGWKLV'HIHQGDQWQRWJXLOW\%XWRQWKLVUHFRUGWKHUH
LVVXEVWDQWLDOO\PRUH
$V , KDYH VDLG ZH DUH HLWKHU GHDOLQJ KHUH ZLWK DQ
LQGLYLGXDOZKRLVWU\LQJWRGRWKHULJKWWKLQJWRWU\WR
H[WULFDWHKLPVHOILQWHUPVRIKLVOLDELOLW\DVKHWHVWLILHGRU
ZHDUHGHDOLQJKHUHZLWKDZL]DUG
7KH SURVHFXWRU ZHQW RQ WR H[SODLQ WKDW 3OD\HU PXVW EH D
³ZL]DUG´ LI KH ZHUH O\LQJ LQ KLV WHVWLPRQ\ EHFDXVH RI WKH
DGGLWLRQDO HYLGHQFH DJDLQVW (PXHJEXQHP WKH LQGH[ FDUG
IRXQGRQ3OD\HUDWKLVDUUHVWDQGWKHGRFXPHQWDU\HYLGHQFH
IRXQGE\WKH5&03LQURRPRIWKHKRWHOLQ7RURQWR
1R 8QLWHG6WDWHVY(PXHJEXQDP
VDPHIUHHGRPZLWKUHVSHFWWRFRPPXQLFDWLRQZLWKDQG
DFFHVVWRFRQVXODURIILFHUVRIWKHVHQGLQJ6WDWH
E LIKHVRUHTXHVWVWKHFRPSHWHQWDXWKRULWLHVRIWKH
UHFHLYLQJ 6WDWH VKDOO ZLWKRXW GHOD\ LQIRUP WKH
FRQVXODU SRVW RI WKH VHQGLQJ 6WDWH LI ZLWKLQ LWV
FRQVXODUGLVWULFWDQDWLRQDORIWKDW6WDWHLVDUUHVWHGRU
FRPPLWWHGWRSULVRQRUWRFXVWRG\SHQGLQJWULDORULV
GHWDLQHG LQ DQ\ RWKHU PDQQHU $Q\ FRPPXQLFDWLRQ
DGGUHVVHGWRWKHFRQVXODUSRVWE\WKHSHUVRQDUUHVWHG
LQSULVRQFXVWRG\RUGHWHQWLRQVKDOODOVREHIRUZDUGHG
E\ WKH VDLG DXWKRULWLHV ZLWKRXW GHOD\ 7KH VDLG
DXWKRULWLHVVKDOOLQIRUPWKHSHUVRQFRQFHUQHGZLWKRXW
GHOD\RIKLVULJKWVXQGHUWKLVVXESDUDJUDSK
F FRQVXODU RIILFHUV VKDOO KDYH WKH ULJKW WR YLVLW D
QDWLRQDORIWKHVHQGLQJ6WDWHZKRLVLQSULVRQFXVWRG\
RUGHWHQWLRQWRFRQYHUVHDQGFRUUHVSRQGZLWKKLPDQG
WRDUUDQJHIRUKLVOHJDOUHSUHVHQWDWLRQ7KH\VKDOODOVR
KDYHWKHULJKWWRYLVLWDQ\QDWLRQDORIWKHVHQGLQJ6WDWH
ZKRLVLQSULVRQFXVWRG\RUGHWHQWLRQLQWKHLUGLVWULFW
LQSXUVXDQFHRIDMXGJPHQW1HYHUWKHOHVVFRQVXODU
RIILFHUVVKDOOUHIUDLQIURPWDNLQJDFWLRQRQEHKDOIRID
QDWLRQDOZKRLVLQSULVRQFXVWRG\RUGHWHQWLRQLIKH
H[SUHVVO\RSSRVHVVXFKDFWLRQ
7KHULJKWVUHIHUUHGWRLQSDUDJUDSKRIWKLV$UWLFOH
VKDOO EH H[HUFLVHG LQ FRQIRUPLW\ ZLWK WKH ODZV DQG
UHJXODWLRQVRIWKHUHFHLYLQJ6WDWHVXEMHFWWRWKHSURYLVR
KRZHYHUWKDWWKHVDLGODZVDQGUHJXODWLRQVPXVWHQDEOH
IXOOHIIHFWWREHJLYHQWRWKHSXUSRVHVIRUZKLFKWKHULJKWV
DFFRUGHGXQGHUWKLV$UWLFOHDUHLQWHQGHG
9LHQQD &RQYHQWLRQ 867 DW 8176 DW
HPSKDVLVDGGHG
3URSHULQWHUSUHWDWLRQRIDWUHDW\SUHVHQWVDTXHVWLRQRIODZ
WKDWWKLVFRXUWUHYLHZVGHQRYR8QLWHG6WDWHVY3DJH
)G WK&LU FLWLQJ8QLWHG6WDWHVY0RUJDQ
)G WK&LU FHUWGHQLHG6&W
8QGHU WKH 6XSUHPDF\ &ODXVH RI WKH 8QLWHG

-- 9 of 20 --

8QLWHG6WDWHVY(PXHJEXQDP 1R
6WDWHV &RQVWLWXWLRQ ³DOO 7UHDWLHV PDGH RU ZKLFK VKDOO EH
PDGHXQGHUWKH$XWKRULW\RIWKH8QLWHG6WDWHVVKDOOEHWKH
VXSUHPH/DZRIWKH/DQG´86 &2167 DUW9,FO8QGHU
IHGHUDOODZWUHDWLHVKDYHWKHVDPHOHJDOHIIHFWDVVWDWXWHV6HH
HJ:KLWQH\Y5REHUWVRQ86 3DJH
)GDW FLWLQJ%UHDUGY*UHHQH86
SHU FXULDP $V D JHQHUDO UXOH KRZHYHU
LQWHUQDWLRQDO WUHDWLHV GR QRW FUHDWH ULJKWV WKDW DUH SULYDWHO\
HQIRUFHDEOHLQWKHIHGHUDOFRXUWV
$ WUHDW\ LV SULPDULO\ D FRPSDFW EHWZHHQ LQGHSHQGHQW
QDWLRQV,WGHSHQGVIRUWKHHQIRUFHPHQWRILWVSURYLVLRQV
RQWKHLQWHUHVWDQGKRQRURIWKHJRYHUQPHQWVZKLFKDUH
SDUWLHV WR LW ,I WKHVH IDLO LWV LQIUDFWLRQ EHFRPHV WKH
VXEMHFWRILQWHUQDWLRQDOQHJRWLDWLRQVDQGUHFODPDWLRQVR
IDUDVWKHLQMXUHGSDUWLHVFKRRVHWRVHHNUHGUHVVZKLFK
PD\LQWKHHQGEHHQIRUFHGE\DFWXDOZDU,WLVREYLRXV
WKDWZLWKDOOWKLVWKHMXGLFLDOFRXUWVKDYHQRWKLQJWRGR
DQGFDQJLYHQRUHGUHVV
+HDG 0RQH\ &DVHV 86 6HH DOVR
)RVWHU Y 1HLOVRQ 86 3HW ³7KH
MXGLFLDU\LVQRWWKDWGHSDUWPHQWRIWKHJRYHUQPHQWWRZKLFK
WKH DVVHUWLRQ RI LWV LQWHUHVWV DJDLQVW IRUHLJQ SRZHUV LV
FRQILGHGDQGLWVGXW\FRPPRQO\LVWRGHFLGHXSRQLQGLYLGXDO
ULJKWV DFFRUGLQJ WR WKRVH SULQFLSOHV ZKLFK WKH SROLWLFDO
GHSDUWPHQWVRIWKHQDWLRQKDYHHVWDEOLVKHG´ RYHUUXOHGLQ
SDUWRQRWKHUJURXQGVE\8QLWHG6WDWHVY3HUFKHPDQ86
3HW ³,QWHUQDWLRQDO DJUHHPHQWV HYHQ WKRVH
GLUHFWO\EHQHILWWLQJSULYDWHSHUVRQVJHQHUDOO\GRQRWFUHDWH
SULYDWH ULJKWV RU SURYLGH IRU D SULYDWH FDXVH RI DFWLRQ LQ
GRPHVWLF FRXUWV ´ 5(67$7(0(17 7+,5' 2) 7+(
)25(,*1 5(/$7,216 /$: 2) 7+( 81,7(' 67$7(6†FPW
D ,QIDFWFRXUWVSUHVXPHWKDWWKHULJKWVFUHDWHGE\DQ
LQWHUQDWLRQDO WUHDW\ EHORQJ WR D VWDWH DQG WKDW D SULYDWH
LQGLYLGXDOFDQQRWHQIRUFHWKHP6HHHJ*ROGVWDU 3DQDPD
6$ Y 8QLWHG 6WDWHV )G WK &LU
³,QWHUQDWLRQDOWUHDWLHVDUHQRWSUHVXPHGWRFUHDWHULJKWVWKDW
DUHSULYDWHO\HQIRUFHDEOH´ 0DWWD%DOOHVWHURVY+HQPDQ
)G WK&LU ³,WLVZHOOHVWDEOLVKHGWKDW
1R 8QLWHG6WDWHVY(PXHJEXQDP
7KHUHIRUH ZH FRQFOXGH WKDW WKH SURVHFXWLRQ QHLWKHU
VXEVWDQWLDOO\ LQWHUIHUHG ZLWK WKH 'HIHQGDQW¶V IXQGDPHQWDO
ULJKWWRFDOOZLWQHVVHVLQKLVGHIHQVHQRULPSURSHUO\GHFOLQHG
WRRIIHU-HII(PXHJEXQHPLPPXQLW\WRDOORZKLPWRWHVWLI\
IRUWKHGHIHQVH
%0LVFRQGXFWLQ&ORVLQJ$UJXPHQWV
'HIHQGDQW FRQWHQGV WKDW GXULQJ FORVLQJ DUJXPHQWV WKH
SURVHFXWRUPLVVWDWHGWKHHYLGHQFHDUJXHGHYLGHQFHNQRZQWR
EH IDOVH LPSURSHUO\ YRXFKHG IRU RQH RI WKH JRYHUQPHQW¶V
ZLWQHVVHVDQGDURXVHGWKHQDWLRQDOELDVHVRIWKHMXU\DJDLQVW
(PXHJEXQHP 7KH IROORZLQJ FRPPHQWV GXULQJ WKH
SURVHFXWLRQ¶V FORVLQJ DUJXPHQW IRUP WKH EDVLV IRU WKHVH
REMHFWLRQV
%HIRUH,ODXQFKLQWRP\FORVLQJDUJXPHQW,ZRXOGOLNHWR
GRWZRWKLQJV)LUVWRIDOO,ZRXOGOLNHWRWKDQN\RXIRU
FRPLQJLQDQGVHUYLQJRQWKLVMXU\KHUH,NQRZDORWRI
WLPHVLWPLJKWKDYHEHHQWHGLRXVDQGLWPLJKWKDYHEHHQ
SDLQIXOHFRQRPLFDOO\RURWKHUZLVHEXWTXLWHIUDQNO\LW
LVWKHMXU\V\VWHPWKDWLVWKHIXHOIRURXUZKROHV\VWHPRI
JRYHUQPHQW$QGLI\RXJHWDFKDQFHLIHYHUWRFRPSDUH
WKHYDULRXVV\VWHPVWKHOHJDOV\VWHPVLQWKHZRUOG\RX
ZLOOILQGWKDWWKLVSDUWLFXODUV\VWHPLVE\IDUWKHEHVW
%HFDXVH ZH KDYH RI RXU FLWL]HQV WR FRPH LQ DQG
GHWHUPLQHWKHJXLOWRULQQRFHQFHDVRSSRVHGWRVRPHRI
RWKHUW\SHRUDQ>LPDP@RUVRPHKRO\PDQRUVRPHW\SH
RIDVWDUFKDPEHULI\RXUHFDOO\RXUKLVWRU\WKDWSHRSOH
ZKRKDYHVRPHZKDWSUHGHWHUPLQHGLGHDVDVWRZKDWD
SHUVRQ¶VIDWHVKRXOGEH$QGDV,VDLGWKLVSDUWLFXODU
V\VWHPLVWKHEHVW

%XWOHW¶VWDNHDPRPHQWDQGORRNXSRQWKHFKDUDFWHU
RI0U3OD\HU,ZRXOGVXEPLWWKDWKHGLGQRWSUHVHQW
KLPVHOIDVSUREDEO\WKHZRUOG¶VEULJKWHVWLQGLYLGXDO+H
LQGLFDWHG WR \RX WKDW KH ZDV YHU\ VFDUHG +H ZDV
QHUYRXV+HKDGQHYHUEHHQFDXJKWXSLQWKLVNLQGRI
WURXEOHEHIRUH

-- 10 of 20 --

8QLWHG6WDWHVY(PXHJEXQDP 1R
,Q 7DOOH\ ZH UHFRJQL]HG WKDW FHUWDLQ OLPLWHG VLWXDWLRQV LQ ZKLFK WKH
JRYHUQPHQW VHOHFWLYHO\ JUDQWHG LPPXQLW\ WR LWV RZQ ZLWQHVVHV ZKLOH
GHQ\LQJ LPPXQLW\ WR GHIHQVH ZLWQHVVHV PLJKW GHSULYH D GHIHQGDQW RI D
IDLU WULDO DQG VR UHTXLUH WKH MXGLFLDO UHPHG\ RI FRPSHOOHG LPPXQLW\
)G DW
VR´ FLWDWLRQVRPLWWHG FHUWGHQLHG86
2QO\WZROLPLWHGFLUFXPVWDQFHVSUHVHQWSRVVLEOHH[FHSWLRQV
WR WKLV UXOH )LUVW XQGHU WKH ³HIIHFWLYH GHIHQVH´ WKHRU\
LPPXQLW\ PD\ EH DYDLODEOH ZKHQ D ZLWQHVV SRVVHVVHV
H[FXOSDWRU\WHVWLPRQ\WKDWLVHVVHQWLDOWRDQHIIHFWLYHGHIHQVH
DQG WKDW VWURQJO\ RXWZHLJKV WKH JRYHUQPHQW¶V LQWHUHVWV LQ
GHFOLQLQJWRRIIHULPPXQLW\7DOOH\)GDW6XEMHFW
WRRQHQDUURZH[FHSWLRQQRWUHOHYDQWKHUHZHKDYHUHMHFWHG
WKHHIIHFWLYHGHIHQVHH[FHSWLRQ8QLWHG6WDWHVY0RKQH\
)G WK&LU
6HFRQG LPPXQLW\ PLJKW EH ZDUUDQWHG WR UHPHG\
SURVHFXWRULDOPLVFRQGXFW³8QGHUWKLVWKHRU\GXHSURFHVV
UHTXLUHVDQLPPXQLW\JUDQWZKHUHWKHSURVHFXWLRQDEXVHVLWV
GLVFUHWLRQ E\ LQWHQWLRQDOO\ DWWHPSWLQJ WR GLVWRUW WKH IDFW
ILQGLQJSURFHVV´,GDW$FFRUGLQJO\WKHGHIHQGDQW
PXVWHVWDEOLVKWKDWWKHSURVHFXWLRQKDVGHOLEHUDWHO\GLVWRUWHG
WKHMXGLFLDOIDFWILQGLQJSURFHVV,G FLWDWLRQVRPLWWHG :H
KDYH \HW WR GHFLGH ZKHWKHU LPPXQLW\ UHSUHVHQWV D YDOLG
UHPHG\IRUVXFKFRQGXFW7DOOH\)GDWDQGZH
QHHGQRWGRVRLQWKLVFDVHEHFDXVHDVZDVWKHFDVHLQ7DOOH\
³HYHQDVVXPLQJWKDWWKHSURVHFXWRULDOPLVFRQGXFWWKHRU\LV
FRJQL]DEOH LQ WKH 6L[WK &LUFXLW ZH DUH FRQILGHQW WKDW
>'HIHQGDQW@KDVPDGHQRVKRZLQJRIVXFKPLVFRQGXFWLQWKLV
FDVH´ ,G 'HIHQGDQW FDQQRW PHHW WKH KLJK WKUHVKROG
UHTXLUHG VKRZLQJ WKH DYDLODELOLW\ RI WKLV H[FHSWLRQ
)XUWKHUPRUHWKLVWKHRU\DOORZVWKHSURVHFXWLRQWRUHIXVHWR
JUDQWLPPXQLW\WRDGHIHQVHZLWQHVVZKHQLWGRHVQRWZLVKWR
KLQGHUDIXWXUHFULPLQDOSURVHFXWLRQRIWKHZLWQHVV0RKQH\
)GDW+HUHWKHSURVHFXWRULQIRUPHGWKHGLVWULFW
FRXUWWKDWKHLQWHQGHGWROHDYHRSHQWKHSRVVLELOLW\RIFULPLQDO
OLDELOLW\LQWKHHYHQWWKDW-HII(PXHJEXQHPSHUMXUHGKLPVHOI
RULPSOLFDWHGKLPVHOILQDGGLWLRQDOGUXJWUDQVDFWLRQV
1R 8QLWHG6WDWHVY(PXHJEXQDP
:KLOH GRLQJ VR WKH &RXUW KDV DOVR SX]]OHG RYHU ZKDW WKH SURSHU
UHPHG\ IRU D YLRODWLRQ RI WKH 9LHQQD &RQYHQWLRQ ZRXOG EH ³(YHQ ZHUH
%UHDUG¶V 9LHQQD &RQYHQWLRQ FODLP SURSHUO\ UDLVHG DQG SURYHG LW LV
H[WUHPHO\ GRXEWIXO WKDW WKH YLRODWLRQ VKRXOG UHVXOW LQ WKH RYHUWXUQLQJ RI
D ILQDO MXGJPHQW RI FRQYLFWLRQ ZLWKRXW VRPH VKRZLQJ WKDW WKH YLRODWLRQ
KDG DQ HIIHFW RQ WKH WULDO´ %UHDUG 86 DW FLWLQJ $UL]RQD Y
)XOPLQDQWH 86 ,Q %UHDUG WKH &RXUW GHQLHG D SHWLWLRQ
IRU D ZULW RI FHUWLRUDUL E\ HQIRUFLQJ D SURFHGXUDO GHIDXOW DJDLQVW D KDEHDV
SHWLWLRQHU¶V DWWHPSW WR OLWLJDWH D 9LHQQD &RQYHQWLRQ FODLP RQ WKH GD\ RI
KLV VFKHGXOHG H[HFXWLRQ +ROGLQJ WKDW WKH WUHDW\ GLG QRW WUXPS WKH
SURFHGXUDO UXOHV RI WKH IHGHUDO FRXUWV WKH &RXUW RXW RI DQ DEXQGDQFH RI
FDXWLRQ DQG LQ WKH IDFH RI ODZVXLWV LQ WKH 8QLWHG 6WDWHV DQG WKH
,QWHUQDWLRQDO &RXUW RI -XVWLFH EURXJKW E\ WKH JRYHUQPHQW RI 3DUDJXD\
DWWHPSWLQJ WR KDOW %UHDUG¶V H[HFXWLRQ QRQHWKHOHVV FRQVLGHUHG LQ GLFWD
ZKHWKHU %UHDUG VXIIHUHG DQ\ SUHMXGLFH IURP WKH DOOHJHG YLRODWLRQ
%UHDUG 86 DW
LQGLYLGXDOV KDYH QR VWDQGLQJ WR FKDOOHQJH YLRODWLRQV RI
LQWHUQDWLRQDO WUHDWLHV LQ WKH DEVHQFH RI D SURWHVW E\ WKH
VRYHUHLJQVLQYROYHG´
1RQHWKHOHVVWKH6XSUHPH&RXUWKDVUHFRJQL]HGWKDWWUHDWLHV
FDQ FUHDWH LQGLYLGXDOO\ HQIRUFHDEOH ULJKWV LQ VRPH
FLUFXPVWDQFHV6HHHJ8QLWHG6WDWHVY$OYDUH]0DFKDLQ
86 FLWLQJ 8QLWHG 6WDWHV Y
5DXVFKHU 86 $UJHQWLQH 5HSXEOLF Y
$PHUDGD+HVV6KLSSLQJ&RUS86
³:KHWKHURUQRWWUHDW\YLRODWLRQVFDQSURYLGHWKHEDVLVIRU
SDUWLFXODUFODLPVRUGHIHQVHVWKXVDSSHDUVWRGHSHQGXSRQWKH
SDUWLFXODU WUHDW\ DQG FODLP LQYROYHG´ 8QLWHG 6WDWHV Y
/RPEHUD&DPRUOLQJD)G WK&LU HQEDQF
FHUWGHQLHG6&W $EVHQWH[SUHVVODQJXDJH
LQ D WUHDW\ SURYLGLQJ IRU SDUWLFXODU MXGLFLDO UHPHGLHV WKH
IHGHUDOFRXUWVZLOOQRWYLQGLFDWHSULYDWHULJKWVXQOHVVDWUHDW\
FUHDWHVIXQGDPHQWDOULJKWVRQDSDUZLWKWKRVHSURWHFWHGE\
WKH &RQVWLWXWLRQ 6HH HJ 3DJH )G DW
$FNQRZOHGJLQJ WKDW WKH 9LHQQD &RQYHQWLRQ ³DUJXDEO\
FRQIHUV RQ DQ LQGLYLGXDO WKH ULJKW WR FRQVXODU DVVLVWDQFH
IROORZLQJ DUUHVW´ WKH 6XSUHPH &RXUW KDV OHIW RSHQ WKH
TXHVWLRQ RI ZKHWKHU WKH 9LHQQD &RQYHQWLRQ FUHDWHV DQ
LQGLYLGXDOULJKWHQIRUFHDEOHE\WKHIHGHUDOFRXUWV%UHDUG
86DW

-- 11 of 20 --

8QLWHG6WDWHVY(PXHJEXQDP 1R
&'LVPLVVDORIWKH,QGLFWPHQW
:LWKUHVSHFWWR(PXHJEXQHP¶VFODLPWKDWYLRODWLRQRIKLV
ULJKWVXQGHUWKH9LHQQD&RQYHQWLRQUHTXLUHVGLVPLVVDORIWKH
LQGLFWPHQW ZH QHHG QRW GHWHUPLQH ZKHWKHU SULYDWH
LQGLYLGXDOVFDQHQIRUFHWKHWUHDW\RUZKHWKHU(PXHJEXQHPLQ
IDFWVXIIHUHGDYLRODWLRQRIWKHULJKWVFRQIHUUHGE\WKHWUHDW\
,Q 3DJH )G DW ZH KHOG WKDW ³DOWKRXJK VRPH
MXGLFLDOUHPHGLHVPD\H[LVWWKHUHLVQRULJKWLQDFULPLQDO
SURVHFXWLRQ WR KDYH HYLGHQFH H[FOXGHG RU DQ LQGLFWPHQW
GLVPLVVHGGXHWRDYLRODWLRQRI$UWLFOH´6HHDOVR8QLWHG
6WDWHVY&KDSDUUR$OFDQWDUD)G WK&LU
KROGLQJWKDWGLVPLVVDORIDQLQGLFWPHQWLVQRWDYDLODEOHWR
UHPHG\DYLRODWLRQRIWKH9LHQQD&RQYHQWLRQ FHUWGHQLHG
6&W 8QLWHG6WDWHVY&RUGRED0RVTXHUD
)G WK&LU SHUFXULDP DEVHQWD
VKRZLQJRISUHMXGLFHDYLRODWLRQRIWKH9LHQQD&RQYHQWLRQ
FDQQRWEHUHPHGLHGWKURXJKGLVPLVVDORIWKHLQGLFWPHQW FHUW
GHQLHG6&W 8QLWHG6WDWHVY/L)G
VW&LU HQEDQF GLVPLVVDORILQGLFWPHQWLVQRWDQ
DYDLODEOHUHPHG\ FHUWGHQLHG6&W (YHQ
LI'HIHQGDQWKDVVXIIHUHGDYLRODWLRQRIKLVULJKWVXQGHUWKH
9LHQQD&RQYHQWLRQDQGHYHQLIKHFDQHQIRUFHWKRVHULJKWVLQ
IHGHUDOFRXUW3DJHIRUHFORVHVGLVPLVVDORIWKHLQGLFWPHQWDV
DUHPHG\
'5HYHUVDORIWKH&RQYLFWLRQ
,Q3DJHZHDGGUHVVHGRQO\WKHDYDLODELOLW\RIVXSSUHVVLRQ
RI HYLGHQFH RU GLVPLVVDO RI DQ LQGLFWPHQW DV UHPHGLHV WR
UHGUHVVDYLRODWLRQRIWKH9LHQQD&RQYHQWLRQ$FFRUGLQJO\
ZH PXVW WXUQ WR FRQVLGHUDWLRQ RI ZKHWKHU UHYHUVDO RI D
FRQYLFWLRQFDQUHPHG\DYLRODWLRQRIWKH9LHQQD&RQYHQWLRQ
$V D WKUHVKROG PDWWHU WKH JRYHUQPHQW FRQWHQGV WKDW WKH
9LHQQD &RQYHQWLRQ GRHV QRW FUHDWH ULJKWV LQGLYLGXDOO\
HQIRUFHDEOHLQWKHIHGHUDOFRXUWV:HDJUHH
&RQIURQWHG LQ UHFHQW \HDUV ZLWK QXPHURXV FODLPV EDVHG
XSRQ WKH 9LHQQD &RQYHQWLRQ ZLWKRXW WKH EHQHILW RI D
GHILQLWLYHVWDWHPHQWIURPWKH6XSUHPH&RXUWIHGHUDOFRXUWV
ZKHQHYHUSRVVLEOHKDYHVLGHVWHSSHGWKHTXHVWLRQRIZKHWKHU
1R 8QLWHG6WDWHVY(PXHJEXQDP
KLV GHIHQVH LV VXEMHFW WR KDUPOHVV HUURU DQDO\VLV 8QLWHG
6WDWHVY)RVWHU)G Q WK&LU
$VDWKUHVKROGPDWWHUWKHSDUWLHVGLVSXWHZKHWKHUDQ\DJHQW
RI WKH 8QLWHG 6WDWHV LQWHUIHUHG ZLWK 'HIHQGDQW¶V ULJKWV
'HIHQGDQWFRQWHQGVWKDWWKH8QLWHG6WDWHVEHDUVUHVSRQVLELOLW\
IRUWKHDFWLRQVRIWKHRIILFHUVDWWKH:D\QH&RXQW\MDLOZKR
GLVFXVVHG-HII(PXHJEXQHP¶VWHVWLPRQ\ZLWKKLPZKLOHWKH
8QLWHG 6WDWHV PDLQWDLQV WKDW MDLO RIILFLDOV DUH LQGHSHQGHQW
FRQWUDFWRUVZKRPDNHWKHLURZQGHFLVLRQVDERXWFRQGLWLRQVRI
FRQILQHPHQW:HH[SUHVVQRRSLQLRQZKHWKHURQWKHIDFWVRI
WKLV FDVH WKH DFWLRQV RI WKH :D\QH &RXQW\ WXUQNH\V DUH
DWWULEXWDEOHWRWKH8QLWHG6WDWHV(YHQLIWKH\DUHWKHUHFRUG
VKRZVQRVXEVWDQWLDOLQWHUIHUHQFHZLWK'HIHQGDQW¶VULJKWWR
FDOOKLVEURWKHUDVDZLWQHVVLQKLVGHIHQVHDWPRVWWKLVUHFRUG
VKRZVVRPHLOODGYLVHGDQGLQFRQVHTXHQWLDOLQWHUIHUHQFHZLWK
WKDW ULJKW $Q\ LQWHUIHUHQFH LV LQVXEVWDQWLDO RQ WKHVH IDFWV
EHFDXVH-HII(PXHJEXQHP¶VDWWRUQH\LQIRUPHGKLPWKDWWKH
:D\QH &RXQW\ MDLOHUV FRXOG QRW LQLWLDWH IXUWKHU FULPLQDO
SURFHHGLQJV DJDLQVW KLP $GGLWLRQDOO\ WKH GLVWULFW FRXUW
MXGJH KHUVHOI UHLQIRUFHG WKH H[SODQDWLRQ JLYHQ E\ -HII
(PXHJEXQHP¶VDWWRUQH\DQGVRXJKWIXUWKHUDVVXUDQFHVIURP
WKHSURIIHUHGZLWQHVVKLPVHOIWKDWKLVGHFLVLRQQRWWRWHVWLI\
GHULYHG IURP FRQFHUQV DERXW KLV H[SRVXUH WR SRWHQWLDO
FULPLQDOOLDELOLW\EDVHGXSRQTXHVWLRQVWKDWWKHSURVHFXWLRQ
DQGGHIHQVHZLVKHGWRSRVHUDWKHUWKDQIURPWKHLGOHWKUHDWV
RIKLVMDLOHUV7KHVHDVVXUDQFHVDOORZHGWKHGLVWULFWFRXUWWR
FRQFOXGHWKDW³,GLGQRWKDYHWKHLPSUHVVLRQDWWKHWULDOVWDJH
WKDW0U-HII(PXHJEXQDPZDVEHLQJIRUFHGRUWKUHDWHQHGWR
JHWKLPQRWWRWHVWLI\´
7RWKHH[WHQWWKDW'HIHQGDQWFKDOOHQJHVWKHGHFLVLRQRIWKH
SURVHFXWLRQQRWWRJLYHKLVEURWKHULPPXQLW\LQH[FKDQJHIRU
KLVWHVWLPRQ\VXFKDFODLPLVQRWFRJQL]DEOH³1RFRXUWKDV
DXWKRULW\WRLPPXQL]HDZLWQHVV´3LOOVEXU\&RY&RQER\
86 6HHDOVR8QLWHG6WDWHVY7DOOH\
)G WK&LU ³:HKDYHFRQVLVWHQWO\KHOGWKDW
DGLVWULFWFRXUWLVZLWKRXWDXWKRULW\WRHLWKHUJUDQWLPPXQLW\
WR D ZLWQHVV ZKR DVVHUWV KLV )LIWK $PHQGPHQW SULYLOHJH
DJDLQVWVHOILQFULPLQDWLRQRUWRIRUFHWKHJRYHUQPHQWWRGR

-- 12 of 20 --

8QLWHG6WDWHVY(PXHJEXQDP 1R
$PHQGPHQWDQGKHZDVQRWWKUHDWHQHGDQGKDUDVVHGE\WKH
*RYHUQPHQW´
2QDSSHDOWKH8QLWHG6WDWHVDUJXHVWKDW'HIHQGDQWPXVW
SUHVHQWWKLVFODLPWRWKHGLVWULFWFRXUWWKURXJKD5XOHRU
5XOHSRVWWULDOPRWLRQWRSUHVHUYHLWIRUDSSHDOEXWKDV
FLWHGQRDXWKRULW\IRUWKLVSURSRVLWLRQ2XUOHDGLQJFDVHRQ
JRYHUQPHQWDOLQWLPLGDWLRQRIDGHIHQVHZLWQHVV8QLWHG6WDWHV
Y7KRPDV)G WK&LU SHUFXULDP GRHV
QRW UHTXLUH VXFK D VWHS WR SUHVHUYH WKH LVVXH IRU DSSHOODWH
UHYLHZVRORQJDVWKHGHIHQGDQWKDVVXIILFLHQWO\UDLVHGDQG
SUHVHQWHGWKHPDWWHUWRWKHGLVWULFWFRXUWLQWKHILUVWLQVWDQFH
$FFRUGLQJO\ EHFDXVH (PXHJEXQHP DUJXHG WR WKH GLVWULFW
FRXUWWKDWWKHJRYHUQPHQW¶VFRQGXFWLQWHUIHUHGZLWKKLVDELOLW\
WR SUHVHQW KLV GHIHQVH ZH FRQFOXGH WKDW 'HIHQGDQW KDV
SUHVHUYHGWKLVLVVXHIRUDSSHOODWHUHYLHZ
$ GHIHQGDQW¶V ULJKW WR SUHVHQW KLV RZQ ZLWQHVVHV WR
HVWDEOLVKDGHIHQVHFRQVWLWXWHVDIXQGDPHQWDOHOHPHQWRIGXH
SURFHVVDQGLVSURWHFWHGE\WKH&RPSXOVRU\3URFHVV&ODXVHRI
WKH6L[WK$PHQGPHQW:DVKLQJWRQY7H[DV86
9DULRXVSURVHFXWRULDODQGMXGLFLDODFWLRQVDLPHGDW
GLVFRXUDJLQJ GHIHQVH ZLWQHVVHV IURP WHVWLI\LQJ GHSULYH D
GHIHQGDQWRIWKLVULJKW6HHHJ:HEEY7H[DV86
SHUFXULDP UHYHUVLQJDFRQYLFWLRQZKHQWKHWULDO
MXGJHVHYHUHO\DGPRQLVKHGWKHVROHZLWQHVVSURIIHUHGE\WKH
GHIHQVHZKRGHFOLQHGWRWHVWLI\DVDUHVXOW 7KRPDV)G
DW UHYHUVLQJDFRQYLFWLRQREWDLQHGDIWHUD6HFUHW6HUYLFH
DJHQWLQDQH[SDUWHFRPPXQLFDWLRQDGYLVHGDGHIHQVHZLWQHVV
RI SRVVLEOH SURVHFXWLRQ LI KH WHVWLILHG 1HLWKHU:HEE QRU
7KRPDVKRZHYHU³VWDQG>V@IRUWKHSURSRVLWLRQWKDWPHUHO\
ZDUQLQJDZLWQHVVRIWKHFRQVHTXHQFHVRISHUMXU\GHPDQGV
UHYHUVDO´8QLWHG6WDWHVY3LHUFH)G WK&LU
FLWLQJ8QLWHG6WDWHVY6PLWK)G
WK&LU )RUWKLVUHDVRQJRYHUQPHQWDOFRQGXFWPXVW
DPRXQWWRDVXEVWDQWLDOLQWHUIHUHQFHZLWKDZLWQHVV¶VIUHHDQG
XQKDPSHUHG GHWHUPLQDWLRQ WR WHVWLI\ EHIRUH ZH ZLOO ILQG D
YLRODWLRQRIGXHSURFHVVRUWKH6L[WK$PHQGPHQW,GDW
FLWLQJ6PLWK)GDW (YHQZKHQVXFKLQWHUIHUHQFH
RFFXUVDYLRODWLRQRIDGHIHQGDQW¶VULJKWWRFDOOZLWQHVVHVLQ
1R 8QLWHG6WDWHVY(PXHJEXQDP
WKHWUHDW\FUHDWHVLQGLYLGXDOULJKWV²W\SLFDOO\E\FRQFOXGLQJ
WKDWUHPHGLHVVXFKDVVXSSUHVVLRQRIHYLGHQFHRUGLVPLVVDORI
DQ LQGLFWPHQW DUH QRW DYDLODEOH HYHQ LI WKH WUHDW\ FUHDWHV
LQGLYLGXDOULJKWV6HHHJ8QLWHG6WDWHVY6DQWRV)G
WK&LU 3DJH)GDW8QLWHG
6WDWHVY/DZDO)G WK&LU FHUW
GHQLHG 6 &W &KDSDUUR$OFDQWDUD
)GDW/RPEHUD&DPRUOLQJD)GDW/L
)GDW2QRWKHURFFDVLRQVFRXUWVKDYHFRQFOXGHGWKDWD
GHIHQGDQWPXVWVKRZSUHMXGLFHWRHVWDEOLVKDYLRODWLRQRIWKH
9LHQQD &RQYHQWLRQ 6HH HJ 8QLWHG 6WDWHV Y 0LQMDUHV
$OYDUH]BBB)GBBB:/DW WK&LU-XO\
8QLWHG 6WDWHV Y &KDQWKDGDUD )G
WK&LU SHWLWLRQIRUFHUWILOHG1R
0D\ &RUGRED0RVTXHUD)GDW8QLWHG
6WDWHVY3DJDQ)G WK&LU 8QLWHG
6WDWHVY$GHPDM)G VW&LU 2QH
FLUFXLWKDVKHOGWKDWWKH9LHQQD&RQYHQWLRQGRHVQRWHVWDEOLVK
DQ\ MXGLFLDOO\ HQIRUFHDEOH ULJKW RI FRQVXOWDWLRQ EHWZHHQ D
GHWDLQHGIRUHLJQQDWLRQDODQGWKHFRQVXODUUHSUHVHQWDWLYHVRI
KLVQDWLRQ8QLWHG6WDWHVY-LPHQH]1DYD)G
WK &LU FHUW GHQLHG 6 &W 6HH DOVR
6DQWRV)GDW %HDP-FRQFXUULQJ FRQFOXGLQJ
WKDW WKH 9LHQQD &RQYHQWLRQ GRHV QRW FRQIHU RQ SULYDWH
FLWL]HQVULJKWVHQIRUFHDEOHLQIHGHUDOFRXUW /L)GDW
6HO\D- %RXGLQ-FRQFXUULQJ VDPH 1RIHGHUDO
DSSHOODWHFRXUWKDV\HWDFFHSWHGDFODLPEDVHGXSRQYLRODWLRQV
RIWKHWUHDW\
³,QFRQVWUXLQJDWUHDW\DVLQFRQVWUXLQJDVWDWXWHZHILUVW
ORRN WR LWV WHUPV WR GHWHUPLQH LWV PHDQLQJ´ $OYDUH]
0DFKDLQ86DW FLWLQJ$LU)UDQFHY6DNV86
DQG 9DOHQWLQH Y 8QLWHG 6WDWHV H[ UHO
1HLGHFNHU86 6HHDOVR(DVWHUQ$LUOLQHV
,QF Y )OR\G 86 9RONVZDJHQZHUN
$NWLHQJHVHOOVFKDIWY6FKOXQN86 2I
WKH VHYHQW\QLQH DUWLFOHV RI WKH 9LHQQD &RQYHQWLRQ RQO\
$UWLFOHDUJXDEO\SURWHFWVLQGLYLGXDOQRQFRQVXODURIILFLDOV
-LPHQH]1DYD)GDW7KHDUJXPHQWWKDWWKHWUHDW\
FRQIHUV ULJKWV XSRQ FULPLQDO GHIHQGDQWV ZKR DUH IRUHLJQ

-- 13 of 20 --

8QLWHG6WDWHVY(PXHJEXQDP 1R
QDWLRQDOVRULJLQDWHVLQWKHODQJXDJHRILQGLYLGXDOULJKWVWKDW
DSSHDUVWKURXJKRXWWKH$UWLFOHDPRQJWKHWUHDW\¶VSURWHFWLRQV
IRUWKHDELOLW\RIWKHFRQVXODURIILFLDOVRIDVHQGLQJ6WDWHWR
FRPPXQLFDWH ZLWK D GHWDLQHG QDWLRQDO 6HH HJ 9LHQQD
&RQYHQWLRQDUW† D ³1DWLRQDOVRIWKHVHQGLQJ6WDWH
VKDOOKDYHWKHVDPHIUHHGRPZLWKUHVSHFWWRFRPPXQLFDWLRQ
ZLWKDQGDFFHVVWRFRQVXODURIILFHUVRIWKHVHQGLQJ6WDWH´
† E ³>$UUHVWLQJ@ DXWKRULWLHV VKDOO LQIRUP WKH SHUVRQ
FRQFHUQHG ZLWKRXW GHOD\ RI KLV ULJKWV XQGHU WKLV VXE
SDUDJUDSK´ <HWWKH3UHDPEOHWRWKH9LHQQD&RQYHQWLRQ
H[SUHVVO\ GLVFODLPV WKH FUHDWLRQ RI DQ\ LQGLYLGXDO ULJKWV
³>7@KHSXUSRVHRIVXFKSULYLOHJHVDQGLPPXQLWLHVLVQRWWR
EHQHILWLQGLYLGXDOVEXWWRHQVXUHWKHHIILFLHQWSHUIRUPDQFHRI
IXQFWLRQV E\ FRQVXODU SRVWV RQ EHKDOI RI WKHLU UHVSHFWLYH
6WDWHV´9LHQQD&RQYHQWLRQ867DW8176
DW HPSKDVLVDGGHG 6LPLODUO\&KDSWHU,,RIWKHWUHDW\
LQ ZKLFK $UWLFOH DSSHDUV FRQFHUQV WKH SULYLOHJHV DQG
LPPXQLWLHV RI FRQVXODU RIILFHUV QRW GHWDLQHG IRUHLJQ
QDWLRQDOV 0RUHRYHU FRQVLVWHQW ZLWK WKH EDFNJURXQG
SUHVXPSWLRQDJDLQVWLPSO\LQJSHUVRQDOULJKWVLQLQWHUQDWLRQDO
WUHDWLHVWKHULJKWVFRQWDLQHGLQ$UWLFOHEHORQJWRWKHSDUW\
VWDWHVQRWLQGLYLGXDOV
2IFRXUVHWKHUHDUHUHIHUHQFHVLQWKH>WUHDW\@WRDULJKW
RI >FRQVXODU@ DFFHVV EXW WKHVH UHIHUHQFHV DUH HDVLO\
H[SODLQDEOH 7KH FRQWUDFWLQJ 6WDWHV DUH JUDQWLQJ HDFK
RWKHUULJKWVDQGWHOOLQJIXWXUHGHWDLQHHVWKDWWKH\KDYHD
ULJKWWRFRPPXQLFDWHZLWKWKHLUFRQVXOLVDPHDQVRI
LPSOHPHQWLQJWKHWUHDW\REOLJDWLRQVDVEHWZHHQ6WDWHV
$Q\RWKHUZD\RISKUDVLQJWKHSURPLVHDVWRZKDWZLOOEH
VDLGWRGHWDLQHHVZRXOGEHERWKDUWLILFLDODQGDZNZDUG
/L )G DW 6HO\D - %RXGLQ - FRQFXUULQJ
$FFRUGLQJO\ZHFRQFOXGHWKDWWKH9LHQQD&RQYHQWLRQGRHV
QRWFUHDWHLQDGHWDLQHGIRUHLJQQDWLRQDODULJKWRIFRQVXODU
DFFHVV
7R WKH H[WHQW WKH WUHDW\ DGPLWV RI DQ\ DPELJXLW\ RQ WKH
TXHVWLRQQRQWH[WXDOVRXUFHV³VXFKDVDWUHDW\¶VUDWLILFDWLRQ
KLVWRU\DQGLWVVXEVHTXHQWRSHUDWLRQ´8QLWHG6WDWHVY6WXDUW
1R 8QLWHG6WDWHVY(PXHJEXQDP
WUHDWPHQWLQGHWHQWLRQ%RWK'HIHQGDQWDQGWKHSURVHFXWLRQ
LQIRUPHG WKH FRXUW RI WKHLU LQWHQWLRQ WR TXHVWLRQ -HII
(PXHJEXQHPDERXWKLVGHDOLQJVZLWK3OD\HULQRWKHUGUXJ
WUDQVDFWLRQV)RUWKLVUHDVRQWKHGLVWULFWFRXUWFRQFOXGHGWKDW
-HII(PXHJEXQHPKDGSURSHUO\DVVHUWHGKLV)LIWK$PHQGPHQW
SULYLOHJHDJDLQVWVHOILQFULPLQDWLRQDQGGLVFKDUJHGKLPIURP
WHVWLI\LQJ:LWKUHVSHFWWRKLVWUHDWPHQWDWWKH:D\QH&RXQW\
MDLOWKHGLVWULFWFRXUWIRXQGWKDWDOWKRXJKRIILFHUVPD\KDYH
PLVWUHDWHG-HII(PXHJEXQHPQRWKLQJURVHWRWKHOHYHORID
WKUHDW WR KLV OLIH 'XULQJ WKHVH SURFHHGLQJV -HII
(PXHJEXQHP¶VDWWRUQH\PDGHFRPPHQWVWKDWLQGLFDWHGWKDW
-HII KDG XQVXFFHVVIXOO\ UHTXHVWHG LPPXQLW\ WR WHVWLI\ RQ
EHKDOIRIKLVEURWKHU
)ROORZLQJ KLV FRQYLFWLRQ 'HIHQGDQW LQFOXGHG WKH
JRYHUQPHQW¶VLQWLPLGDWLRQRIKLVEURWKHUDVDJURXQGIRUUHOLHI
LQKLVPRWLRQIRUMXGJPHQWRIDFTXLWWDORULQWKHDOWHUQDWLYH
IRU D QHZ WULDO 7KLV LQWLPLGDWLRQ 'HIHQGDQW DVVHUWHG
GHSULYHGKLPRIKLV)LIWK$PHQGPHQWGXHSURFHVVULJKWDQG
KLV6L[WK$PHQGPHQWULJKWVWRFRPSXOVRU\SURFHVVDQGDIDLU
WULDO,QGRLQJVR'HIHQGDQWVXPPDUL]HGWKHPDWWHUVDVWR
ZKLFKKLVEURWKHUZRXOGKDYHWHVWLILHG
+HYROXQWHHUHGWRWHVWLI\WRWKHIDFWWKDW3OD\HUKDGOLHG
DERXWWKHVRXUFHRIWKHKHURLQZKLFKZDVVHL]HGIURP
KLPDQGWKDWKHGLGQRWVROLFLW3OD\HUWRSLFNXSKHURLQ
IURP'HIHQGDQWLQ&DQDGD-HII¶VWHVWLPRQ\ZRXOG
KDYH FRUURERUDWHG 3OD\HU¶V UHJDUGLQJ WKH IDFW WKDW
'HIHQGDQWZDVQRWWKHLQGLYLGXDOZKRP3OD\HUUHIHUUHG
WRDV&+8&.LQWKHWDSHUHFRUGHGFRQYHUVDWLRQEHWZHHQ
-HII3OD\HUDQG>WKHXQGHUFRYHUFXVWRPVDJHQW@,W
ZRXOGKDYHDOVRUHYHDOHGWKDWWKHZKLFK8FKH
SKRQHWLF2RFKLH &+8&.KDGLQVWUXFWHGKLPWRFROOHFW
IURP3OD\HUGLGQRWLQYROYH'HIHQGDQW
$OWKRXJKIRUWKHUHDVRQVDOUHDG\GLVFXVVHGWKHGLVWULFWFRXUW
IRXQGWKDW 'HIHQGDQWKDGILOHGWKLVPRWLRQLQDQXQWLPHO\
IDVKLRQWKHFRXUWQRQHWKHOHVVGHQLHGWKHPRWLRQRQWKHPHULWV
EHFDXVH ³-HII (PXHJEXQHP SURSHUO\ WRRN WKH )LIWK

-- 14 of 20 --

8QLWHG6WDWHVY(PXHJEXQDP 1R
:KHQ'HIHQGDQW¶VWULDOUHVXPHGRQ6HSWHPEHU
-HII(PXHJEXQHP¶VDWWRUQH\DSSHDUHGDQGUHSRUWHGWKHUHVXOWV
RIKLVLQYHVWLJDWLRQ
+LVOLIHZDVQHYHUWKUHDWHQHG+HDGPLWWHGWRPHWKDW
RQHRIWKHVKHULIIVRYHUWKHUHRQHRIWKHWXUQNH\VVRWR
VSHDNKDGWROGKLPWKDWWKHVKHULIIGHSXWLHVWKRXJKWWKDW
KHZDVDVQLWFKDQGWKDWKHKDGEURXJKWGUXJVLQWRWKH
FRXQWU\DQGWKDWKHZDVKHUHWROLHIRUKLVEURWKHUDQG
WKDWWKHUHZRXOGEHQHZFKDUJHVEURXJKWLIKHGLGWKDW
>0@\XQGHUVWDQGLQJRIZKDWKHWROGPHWKDW¶VZKDWKH
ZDVFRPSODLQLQJDERXWZDVWKDWKHIHOWWKDWZDVDWKUHDW
ZKHQWKHVKHULIIWROGKLPKHZDVEULQJLQJGUXJVLQWRWKH
FRXQWU\DQGWKDWKHZRXOG²DQGWKDWKHZDVKHUHWROLH
IRUKLVEURWKHU
/RRNLQJDWP\QRWHVKHDOVRZDVSXWLQWRDVHJUHJDWLRQ
XQLW , FRXOG QRW ILQG RXW ZK\ KH ZDV SXW LQWR
VHJUHJDWLRQ+HZDVWKHUHIRUDERXWDZHHN+HGLGQ¶W
OLNHWKDW+HGLGQ¶WJHWDVKRZHU,JXHVVWKHFROGZDWHU
ZDVQ¶WUXQQLQJWKHKRWZDWHUZDVQ¶WUXQQLQJDQGWKH\
GLGQ¶WJLYHKLPDWRRWKEUXVK$QGWKDWLV²ZKDW,FDQ
SXWRQWKHUHFRUGZKDW,OHDUQHGIURPWKLVIHOORZLVWKDW
LWZDVKLVSHUFHSWLRQWKDWKHZDVWKUHDWHQHGWKHUHZDV
QRERG\WKUHDWHQLQJKLP$QGPRVWLPSRUWDQWO\WKHUH
ZDVQRRWKHULQPDWHWKUHDWHQLQJKLP
(PSKDVLV DGGHG 'XULQJ WKLV LQYHVWLJDWLRQ -HII
(PXHJEXQHP¶VDWWRUQH\DVVXUHGKLPWKDWVKHULIIVGRQRWEULQJ
SHUMXU\ FKDUJHV $V D UHVXOW RI KLV LQYHVWLJDWLRQ -HII
(PXHJEXQHP¶VDWWRUQH\IRUPHGWKHRSLQLRQWKDWWKHWUHDWPHQW
RIKLVFOLHQWLQWKH:D\QH&RXQW\MDLOZDVQRWUHVSRQVLEOHIRU
KLVUHIXVDOWRWHVWLI\
:KHQ'HIHQGDQWFDOOHGKLVEURWKHUWRWHVWLI\RQKLVEHKDOI
-HII (PXHJEXQHP GHFOLQHG WR GR VR $V UHDVRQV IRU QRW
WHVWLI\LQJKHH[SODLQHGWKDWKHIHDUHGIRUKLVOLIHDQGZRUULHG
DERXW EHLQJ FKDUJHG ZLWK DGGLWLRQDO GUXJ RIIHQVHV LI KH
WHVWLILHG 2WKHUZLVH -HII (PXHJEXQHP FRUURERUDWHG KLV
DWWRUQH\¶V DFFRXQW RI KLV FRQGLWLRQV RI FRQILQHPHQW DQG
1R 8QLWHG6WDWHVY(PXHJEXQDP
86 GLVSHODQ\GRXEWDERXWZKHWKHUWKH
9LHQQD &RQYHQWLRQ FUHDWHV LQGLYLGXDO ULJKWV ,Q UHVROYLQJ
GRXEWVDERXWWKHLQWHUSUHWDWLRQ³WKHFRQVWUXFWLRQRIDWUHDW\
E\ WKH SROLWLFDO GHSDUWPHQW RI WKH JRYHUQPHQW ZKLOH QRW
FRQFOXVLYH XSRQ FRXUWV FDOOHG XSRQ WR FRQVWUXH LW LV
QHYHUWKHOHVVRIZHLJKW´)DFWRUY/DXEHQKHLPHU86
6HHDOVR(O$O,VUDHO$LUOLQHV/WGY7VXL
<XDQ7VHQJ86 ³5HVSHFWLVRUGLQDULO\
GXHWKHUHDVRQDEOHYLHZVRIWKH([HFXWLYH%UDQFKFRQFHUQLQJ
WKHPHDQLQJRIDQLQWHUQDWLRQDOWUHDW\´ .RORYUDWY2UHJRQ
86 ³:KLOHFRXUWVLQWHUSUHWWUHDWLHVIRU
WKHPVHOYHVWKHPHDQLQJJLYHQWKHPE\WKHGHSDUWPHQWVRI
JRYHUQPHQWSDUWLFXODUO\FKDUJHGZLWKWKHLUQHJRWLDWLRQDQG
HQIRUFHPHQWLVJLYHQJUHDWZHLJKW´
6LQFHWKH6WDWH'HSDUWPHQWKDVFRQVLVWHQWO\WDNHQWKH
YLHZWKDWWKH9LHQQD&RQYHQWLRQGRHVQRWFUHDWHLQGLYLGXDO
ULJKWV/L)GDW6HHDOVR-LPHQH]1DYD
)GDW/RPEHUD&DPRUOLQJD)GDW,Q
WKH YLHZ RI WKH 6WDWH 'HSDUWPHQW ³WKH RQO\ UHPHGLHV IRU
IDLOXUHVRIFRQVXODUQRWLILFDWLRQXQGHUWKH9LHQQD&RQYHQWLRQ
DUH GLSORPDWLF SROLWLFDO RU H[LVW EHWZHHQ VWDWHV XQGHU
LQWHUQDWLRQDOODZ´3DJH)GDW TXRWLQJ/L
)GDW DOWHUDWLRQVRPLWWHG 7KLVSRVLWLRQDFFRUGVZLWK
WKH YLHZ RI WKH 'HSDUWPHQW DQG WKH 6HQDWH GXULQJ WKH
UDWLILFDWLRQSURFHHGLQJV/L)GDW,QSUDFWLFH
WKH SDUWLHV WR WKH &RQYHQWLRQ KDYH DWWHPSWHG WR UHPHG\
YLRODWLRQVRI$UWLFOHWKURXJKLQYHVWLJDWLRQVDQGDSRORJLHV
³7KH 6WDWH 'HSDUWPHQW LQGLFDWHV WKDW LW KDV KLVWRULFDOO\
HQIRUFHGWKH9LHQQD&RQYHQWLRQLWVHOILQYHVWLJDWLQJUHSRUWV
RI YLRODWLRQV DQG DSRORJL]LQJ WR IRUHLJQ JRYHUQPHQWV DQG
ZRUNLQJ ZLWK GRPHVWLF ODZ HQIRUFHPHQW WR SUHYHQW IXWXUH
YLRODWLRQVZKHQQHFHVVDU\´/RPEHUD&DPRUOLQJD)G
DW,QWXUQ³>P@DQ\LIQRWPRVWRIWKHFRXQWULHVZLWK
ZKLFK WKH 8QLWHG 6WDWHV UDLVHV FRQFHUQV WKDW FRQVXODU
QRWLILFDWLRQ REOLJDWLRQV KDYH EHHQ YLRODWHG ZLWK UHVSHFW WR
86 FLWL]HQV ZLOO XQGHUWDNH WR LQYHVWLJDWH WKH DOOHJHG
YLRODWLRQ DQG LI LW LV FRQILUPHG WR DSRORJL]H IRU LW DQG
XQGHUWDNHWRSUHYHQWIXWXUHUHFXUUHQFHV´/L)GDW
$SSDUHQWO\ QR FRXQWU\ UHPHGLHV YLRODWLRQV RI WKH 9LHQQD

-- 15 of 20 --

8QLWHG6WDWHVY(PXHJEXQDP 1R
&RQYHQWLRQWKURXJKLWVFULPLQDOMXVWLFHV\VWHP,G³7KHVH
SUDFWLFHV HYLGHQFH D EHOLHI DPRQJ 9LHQQD &RQYHQWLRQ
VLJQDWRU\ QDWLRQV WKDW WKH WUHDW\¶V GLFWDWHV VLPSO\ DUH QRW
HQIRUFHDEOHLQDKRVWQDWLRQ¶VFULPLQDOFRXUWV>@´,GDW
,Q VXSSRUW RI KLV DUJXPHQW WKDW WKH 9LHQQD &RQYHQWLRQ
FUHDWHV LQGLYLGXDOO\ HQIRUFHDEOH ULJKWV (PXHJEXQHP FLWHV
)DXOGHUY-RKQVRQ)G WK&LU DQG%UHDUG
Y 3UXHWW )G WK &LU 7KLV UHOLDQFH LV
PLVSODFHG ,Q )DXOGHU WKH )LIWK &LUFXLW VWDWHG WKDW WKH
9LHQQD &RQYHQWLRQ ³UHTXLUHV DQ DUUHVWLQJ JRYHUQPHQW WR
QRWLI\DIRUHLJQQDWLRQDOZKRKDVEHHQDUUHVWHGLPSULVRQHGRU
WDNHQ LQWR FXVWRG\ RU GHWHQWLRQ RI KLV ULJKW WR FRQWDFW KLV
FRQVXO´)GDW$OWKRXJKVWDWHDXWKRULWLHVDGPLWWHG
WKDWWKH\KDGIDLOHGWRFRPSO\ZLWKWKH9LHQQD&RQYHQWLRQ
WKHFRXUWDIILUPHGDFDSLWDOPXUGHUFRQYLFWLRQEHFDXVHRQWKH
IDFWVSUHVHQWHGWKHUHWKHYLRODWLRQGLGQRWPHULWUHYHUVDORIWKH
FRQYLFWLRQ,G6XEVHTXHQWO\WKH)LIWK&LUFXLWH[SODLQHGWKDW
LWVUXOLQJLQ)DXOGHUKDGQRWH[SUHVVHGDYLHZRQWKHTXHVWLRQ
RIZKHWKHUWKH9LHQQD&RQYHQWLRQFRQIHUVULJKWVHQIRUFHDEOH
E\LQGLYLGXDOV)ORUHVY-RKQVRQ)G WK
&LU SHUFXULDP FHUWGHQLHG6&W
:HGRQRWUHDGRXURSLQLRQLQ)DXOGHUDVUHFRJQL]LQJD
SHUVRQDOULJKWXQGHUWKH&RQYHQWLRQ5DWKHUWKHSDQHO
GLVSDWFKHG WKH FODLP ZLWK LWV FRQFOXVLRQ WKDW DQ\
YLRODWLRQ ZDV KDUPOHVV $Q\ QHJDWLYH LPSOLFDWLRQ
LQKHUHQW LQ UHMHFWLQJ WKH FODLP DV KDUPOHVV ODFNV
VXIILFLHQW IRUFH WR VXSSRUW D FRQWHQWLRQ WKDW WKH SDQHO
KHOGWKDWWKH&RQYHQWLRQFUHDWHGULJKWVHQIRUFHDEOHE\
LQGLYLGXDOV :KLOH ZH FRQFOXGH WKDW )DXOGHU KDV QRW
GHFLGHGWKHTXHVWLRQZHGRQRWUHDFKLWVPHULWVEHFDXVH
DWEHVW)ORUHV VDVVHUWLRQLV7HDJXHEDUUHG
,G DW $FFRUGLQJO\ DIWHU )ORUHV ZKHWKHU WKH 9LHQQD
&RQYHQWLRQ FUHDWHG LQGLYLGXDO ULJKWV UHPDLQHG DQ RSHQ
TXHVWLRQLQWKH)LIWK&LUFXLW-LPHQH]1DYD)GDW
Q FRQFOXGLQJLQWKHZDNHRI)DXOGHUDQG)ORUHVWKDWWKH
TXHVWLRQZDVRQHRIILUVWLPSUHVVLRQLQWKHFLUFXLW DQGLQ
1R 8QLWHG6WDWHVY(PXHJEXQDP
WLPH RU WKH PRWLRQ IRU MXGJPHQW RI DFTXLWWDO DQG
(PXHJEXQHPGLGQRWPRYHIRUDMXGJPHQWRIDFTXLWWDODWWKH
FORVH RI WKH SURVHFXWLRQ¶V FDVH RU DW WKH FORVH RI DOO WKH
HYLGHQFHZHUHYLHZRQO\IRUDPDQLIHVWPLVFDUULDJHRIMXVWLFH
'HIHQGDQW¶V FKDOOHQJH WR WKH VXIILFLHQF\ RI WKH HYLGHQFH
VXSSRUWLQJKLVFRQYLFWLRQ6HH8QLWHG6WDWHVY6ZLGDQ
)G WK&LU QRWLQJWKDWDGHIHQGDQW¶V
IDLOXUHWRSUHVHUYHKLVULJKWWRFKDOOHQJHWKHVXIILFLHQF\RIWKH
HYLGHQFH DOORZV DSSHOODWH UHYLHZ RQO\ IRU ³D PDQLIHVW
PLVFDUULDJHRIMXVWLFH´ TXRWLQJ8QLWHG6WDWHVY)D\PRUH
)G WK&LU ,QWKLVFDVHWKHUHFRUG
GHPRQVWUDWHV WKDW FRQVLGHUDEOH FLUFXPVWDQWLDO HYLGHQFH LQ
DGGLWLRQWRWKHWHVWLPRQ\RI3OD\HUOLQNV(PXHJEXQHPWRWKH
FULPH %HFDXVH 'HIHQGDQW KDV GHPRQVWUDWHG QR PDQLIHVW
LQMXVWLFH ZH UHMHFW KLV FKDOOHQJH WR WKH VXIILFLHQF\ RI WKH
HYLGHQFH
9,3URVHFXWRULDO0LVFRQGXFW
$,QWHUIHUHQFHZLWKWKH5LJKWWR3UHVHQWD'HIHQVH
'HIHQGDQWUDLVHVRQDSSHDOVHYHUDOFODLPVRISURVHFXWRULDO
PLVFRQGXFW)LUVWKHDOOHJHVWKDWWKHJRYHUQPHQWLQWHUIHUHG
ZLWKKLVULJKWWRFDOOKLVEURWKHU-HII(PXHJEXQHPWRWHVWLI\
DW KLV WULDO )RU KLV UROH LQ WKH LQVWDQW RIIHQVH -HII
(PXHJEXQHP UHFHLYHG D VHQWHQFH RI IRUW\VL[ PRQWKV¶
LPSULVRQPHQW SXUVXDQW WR WKH WHUPV RI D SOHD DJUHHPHQW
6KRUWO\DIWHUKLVWULDOKDGFRPPHQFHG'HIHQGDQWLQIRUPHG
WKH GLVWULFW FRXUW WKDW KLV EURWKHU ZKRP WKH PDUVKDOV KDG
WUDQVSRUWHGIURPWKHIHGHUDOSULVRQLQ1RUWK&DUROLQDZKHUH
KHZDVVHUYLQJKLVVHQWHQFHWRWKH:D\QH&RXQW\MDLOIRUWKH
SHQGHQF\RIWKHWULDOZDVEHLQJKHOGLQDFHOOZLWKRXWZDWHU
VR WKDW KH FRXOG QHLWKHU EDWKH QRU EUXVK KLV WHHWK
)XUWKHUPRUH'HIHQGDQWZKRZDVDOVRKRXVHGDWWKH:D\QH
&RXQW\MDLOUHSUHVHQWHGWKDWKLVEURWKHU³ZDQWVWRJREDFN
WKDWKHKDVQRWLFHGVRPHKDUDVVPHQWWKDWKHZLOOQRWEHDEOH
WRWHVWLI\DJDLQEHFDXVHKHLVVFDUHGRIKLVOLIH´,QUHVSRQVH
WR WKHVH DOOHJDWLRQV WKH GLVWULFW FRXUW GLUHFWHG -HII
(PXHJEXQHP¶VDWWRUQH\WRLQYHVWLJDWHWKHFRQGLWLRQVDWWKH
:D\QH&RXQW\MDLO

-- 16 of 20 --

8QLWHG6WDWHVY(PXHJEXQDP 1R
RIILFLDOVRQ2FWREHUKHWLPHO\ILOHGLWZLWKWKHFRXUW
7KLVDUJXPHQWIDLOVIRUWZRUHDVRQV)LUVW+RXVWRQ¶VPDLOER[
UXOHGRHVQRWDSSO\WR5XOHVDQG³>7@KHFRXUWPD\QRW
H[WHQGWKHWLPHIRUWDNLQJDQ\DFWLRQXQGHU5XOHV
DQGH[FHSWWRWKHH[WHQWDQGXQGHUWKHFRQGLWLRQVVWDWHGLQ
WKHP´)(' 5 &5,0 3 E 7KHSODLQWH[WRIWKH5XOHV
VLPSO\GRHVQRWSHUPLWWKHILOLQJRIDPRWLRQIRUMXGJPHQWRI
DFTXLWWDO RU IRU D QHZ WULDO PRUH WKDQ VHYHQ GD\V DIWHU
GLVFKDUJHRIWKHMXU\XQOHVVZLWKLQWKDWVHYHQGD\SHULRGWKH
GLVWULFW FRXUW HQODUJHV WKH WLPH IRU GRLQJ VR 6HH 8QLWHG
6WDWHVY+RFNLQJ)G WK&LU ³5XOH
E PHDQV ZKDW LW VD\V´ FLWDWLRQV RPLWWHG 6HH DOVR
7DSLD2UWL] Y 'RH )G Q G &LU
³+RXVWRQGRHVQRWDSSO\RIFRXUVHZKHQWKHUHLVDVSHFLILF
VWDWXWRU\ UHJLPH WR WKH FRQWUDU\´ FLWDWLRQ RPLWWHG ,Q
&DUOLVOHWKH6XSUHPH&RXUWUHFRJQL]HGDVPXFK
7KHUHLVVLPSO\QRURRPLQWKHWH[WRI5XOHVDQG E
IRUWKHJUDQWLQJRIDQXQWLPHO\SRVWYHUGLFWPRWLRQIRU
MXGJPHQWRIDFTXLWWDOUHJDUGOHVVRIZKHWKHUWKHPRWLRQ
LVDFFRPSDQLHGE\DFODLPRIOHJDOLQQRFHQFHLVILOHG
EHIRUHVHQWHQFLQJRUZDVILOHGODWHEHFDXVHRIDWWRUQH\
HUURU
86DW
,QDQ\HYHQWWKHGLVWULFWFRXUWGLGQRWH[WHQGWKHSHULRGIRU
ILOLQJWKHPRWLRQIRUMXGJPHQWRIDFTXLWWDOGXULQJWKHVHYHQ
GD\ SHULRG HVWDEOLVKHG E\ 5XOHV F DQG (YHQ LI
(PXHJEXQHP WLPHO\ ILOHG WKH PRWLRQ IRU DQ H[WHQVLRQ RI
WLPHWKHGLVWULFWFRXUW¶VIDLOXUHWRJUDQWLWFDXVHGWKHVHYHQ
GD\SHULRGWRH[SLUH&DUOLVOH86DW ³>$@PRWLRQ
IRUMXGJPHQWRIDFTXLWWDOPXVWEHILOHGHLWKHUZLWKLQVHYHQ
GD\V RI WKH MXU\¶V GLVFKDUJH RU ZLWKLQ DQ H[WHQGHG SHULRG
IL[HGE\WKHFRXUWGXULQJWKDWGD\SHULRG´ 'DYLV)G
DW ³5XOH E SURKLELWVWKHFRXUWIURPH[WHQGLQJWKH
WLPHIRUWDNLQJDQ\DFWLRQXQGHU5XOHDQG5XOHLQD
PDQQHULQFRQVLVWHQWZLWKWKRVHUXOHV´
%HFDXVHWKHGLVWULFWFRXUWFRUUHFWO\FRQFOXGHGWKDWLWODFNHG
MXULVGLFWLRQWRHQWHUWDLQHLWKHUWKHPRWLRQIRUDQH[WHQVLRQRI
1R 8QLWHG6WDWHVY(PXHJEXQDP
-LPHQH]1DYDWKHFRXUWUHVROYHGWKHLVVXHDGYHUVHO\WRWKH
SRVLWLRQDGYRFDWHGE\'HIHQGDQW,GDW
/LNH)DXOGHUWKH)RXUWK&LUFXLW¶VRSLQLRQLQ%UHDUGVLPSO\
DWWHPSWVDGHVFULSWLRQRIWKH9LHQQD&RQYHQWLRQDQGWDNHVQR
SRVLWLRQRQWKHULJKWVDQGUHPHGLHVRIFULPLQDOGHIHQGDQWVLQ
WKH8QLWHG6WDWHVZKRDUHIRUHLJQQDWLRQDOV%UHDUGY3UXHWW
)G WK &LU VHWWLQJ IRUWK %UHDUG¶V
DUJXPHQWWKDWWKHFRXUWVKRXOGRYHUWXUQKLVFRQYLFWLRQDQG
GHDWKVHQWHQFHEHFDXVHWKH³DXWKRULWLHVIDLOHGWRQRWLI\KLP
WKDW DV D IRUHLJQ QDWLRQDO KH KDG WKH ULJKW WR FRQWDFW WKH
&RQVXODWHRI$UJHQWLQDRUWKH&RQVXODWHRI3DUDJXD\SXUVXDQW
WR WKH 9LHQQD &RQYHQWLRQ´ FHUW GHQLHG 86
SHUFXULDP 7ZR IHDWXUHVRIWKH)RXUWK&LUFXLW¶V
GHFLVLRQLQ%UHDUGFRQILUPWKLVFRQFOXVLRQ)LUVWQRWLQJWKDW
%UHDUGKDGIDLOHGWRUDLVHWKLVFODLPLQVWDWHFRXUWWKH)RXUWK
&LUFXLWFRQFOXGHGWKDWKHKDGSURFHGXUDOO\GHIDXOWHGWKHFODLP
DQG WKDW KH FRXOG QRW VKRZ FDXVH WR H[FXVH WKH GHIDXOW
$FFRUGLQJO\ WKH FRXUW GHFOLQHG WR FRQVLGHU WKH PHULWV RI
%UHDUG¶V9LHQQD&RQYHQWLRQFODLP,GDW6HFRQG
WKHFRXUWTXRWHG0XUSK\Y1HWKHUODQG)G WK
&LU LQ ZKLFK LW UHMHFWHG DQ DUJXPHQW WKDW D KDEHDV
SHWLWLRQHU¶V9LHQQD&RQYHQWLRQFODLPZDVVRQRYHOWKDWKH
FRXOGQRWKDYHUDLVHGLWLQVWDWHFRXUWSURFHHGLQJVEHFDXVHD
UHDVRQDEO\ GLOLJHQW DWWRUQH\ VKRXOG KDYH GLVFRYHUHG ³WKH
H[LVWHQFH DQG DSSOLFDELOLW\ LI DQ\ RI WKH 9LHQQD
&RQYHQWLRQ´ %UHDUG )G DW HPSKDVLV DGGHG
7KLV SURFHGXUDO SRVWXUH DQG WKH TXRWDWLRQ IURP 0XUSK\
GHPRQVWUDWHWKDWWKH)RXUWK&LUFXLWLQ%UHDUGWRRNQRSRVLWLRQ
RQWKHTXHVWLRQRIZKHWKHUWKH9LHQQD&RQYHQWLRQ FUHDWHV
LQGLYLGXDOULJKWV
)RU WKH IRUHJRLQJ UHDVRQV ZH KROG WKDW WKH 9LHQQD
&RQYHQWLRQ GRHV QRW FUHDWH D ULJKW IRU D GHWDLQHG IRUHLJQ
QDWLRQDOWRFRQVXOWZLWKWKHGLSORPDWLFUHSUHVHQWDWLYHVRIKLV
QDWLRQ WKDW WKH IHGHUDO FRXUWV FDQ HQIRUFH $ FRQWUDU\
FRQFOXVLRQULVNVDJJUDQGL]LQJWKHSRZHURIWKHMXGLFLDU\DQG
LQWHUIHULQJ LQ WKH QDWLRQ¶V IRUHLJQ DIIDLUV WKH FRQGXFW RI
ZKLFK WKH &RQVWLWXWLRQ UHVHUYHV IRU WKH SROLWLFDO EUDQFKHV
6HH/RPEHUD&DPRUOLQJD)GDW ³7KHDGGLWLRQRI

-- 17 of 20 --

8QLWHG6WDWHVY(PXHJEXQDP 1R
DMXGLFLDOHQIRUFHPHQWPHFKDQLVPFRQWDLQVWKHSRVVLELOLW\IRU
FRQIOLFWEHWZHHQWKHUHVSHFWLYHSRZHUVRIWKHH[HFXWLYHDQG
MXGLFLDOEUDQFKHV´ 6LJQLILFDQWO\WKH6XSUHPH&RXUWKDV
WZLFH KHOG WKDW WKH 9LHQQD &RQYHQWLRQ GRHV QRW SURYLGH D
VLJQDWRU\QDWLRQDSULYDWHULJKWRIDFWLRQLQWKHIHGHUDOFRXUWV
WR VHHN D UHPHG\ IRU D YLRODWLRQ RI $UWLFOH )HGHUDO
5HSXEOLFRI*HUPDQ\Y8QLWHG6WDWHV86
SHUFXULDP %UHDUG86DW,IDIRUHLJQ
VRYHUHLJQ WR ZKRVH EHQHILW WKH 9LHQQD &RQYHQWLRQ LQXUHV
FDQQRW VHHN D MXGLFLDO UHPHG\ ZH FDQQRW IDWKRP KRZ DQ
LQGLYLGXDOIRUHLJQQDWLRQDOFDQGRVRLQWKHDEVHQFHRIH[SUHVV
ODQJXDJHLQWKHWUHDW\
,,,7KH0RWLRQWR6WULNH
(PXHJEXQHPPRYHGWRVWULNHWKHDOLDV³&KXFN´IURPWKH
LQGLFWPHQWERWKEHFDXVH³'HIHQGDQWLVDWUDGLWLRQDO&KLHIDQG
KLVFXOWXUHIRUELGVWKHXVHRIDOLDVHVDVD&KLHI´DQGEHFDXVH
FRQVLVWHQW ZLWK WKH GHIHQVH¶V PLVWDNHQLGHQWLW\ WKHRU\ KH
EHOLHYHVWKDWWKHSURVHFXWLRQXVHGWKHDOLDV³&KXFN´WROLQN
KLPWR3OD\HUQRWZLWKVWDQGLQJWKHJRYHUQPHQW¶VSRVVHVVLRQ
RI KLV SDVVSRUW DQG RWKHU GRFXPHQWV LGHQWLI\LQJ KLP DV
³&KXNV (PXHJEXQHP´ 'HIHQGDQW DOVR DUJXHG WKDW WKH
GLVWULFWFRXUWVKRXOGVWULNHWKHHQWLUHLQGLFWPHQWEHFDXVHWKH
JRYHUQPHQW LQGLFWHG KLP DV ³&KXFNV (PXHJEXQDP DND
μ&KXFN¶´,QGHQ\LQJWKHPRWLRQWRVWULNHWKHGLVWULFWFRXUW
DFFHSWHG WKH UHSUHVHQWDWLRQ RI WKH SURVHFXWRU WKDW WKH
LQGLFWPHQWFRQWDLQHGWKHDOLDVEHFDXVH3OD\HUZRXOGWHVWLI\
WKDWKHNQHZWKHLQGLYLGXDOIURPZKRPKHUHFHLYHGWKHKHURLQ
DV³&KXFN´DQGWKDWWKH'HIHQGDQWZDVWKDWSHUVRQ)RUWKH
FRXUW WKLV H[SODQDWLRQ VXIILFHG WR GHPRQVWUDWH WKDW WKH
JRYHUQPHQW XVHG WKH DOLDV LQ WKH LQGLFWPHQW WR FRQQHFW
(PXHJEXQHPWRWKHFKDUJHGRIIHQVH
7KHGHFLVLRQZKHWKHUWRVWULNHODQJXDJHIURPDQLQGLFWPHQW
UHVWVZLWKLQWKHVRXQGGLVFUHWLRQRIWKHGLVWULFWFRXUW8QLWHG
6WDWHVY.HPSHU)G WK&LU :H
³VWURQJO\ GLVDSSURYH WKH SUDFWLFH RI LQFOXGLQJ DOLDVHV LQ
LQGLFWPHQWV2QO\ZKHQSURRIRIDQDOLDVLVUHOHYDQWWR
LGHQWLI\LQJWKHGHIHQGDQWVKRXOGDFRXUWDOORZLWVLQFOXVLRQLQ
1R 8QLWHG6WDWHVY(PXHJEXQDP
DVFHUWDLQLQJZKHWKHUDGHIHQGDQWWLPHO\ILOHGDPRWLRQIRU
MXGJPHQWRIDFTXLWWDORUDQHZWULDO8QLWHG6WDWHVY'DYLV
)G WK&LU
)RUDGLVWULFWFRXUWWRKDYHMXULVGLFWLRQRYHUDPRWLRQPDGH
XQGHU5XOHRU5XOHWKHPRYDQWPXVWFRPSO\ZLWKWKH
VHYHQGD\ SHULRG RI WKH 5XOHV 6HH HJ 8QLWHG 6WDWHV Y
*D\GRV)G G&LU 8QLWHG6WDWHVY
&DOGHURQ)G WK&LU 8QLWHG6WDWHVY
%HUDQ)GQ WK&LU ,Q&DUOLVOH
Y8QLWHG6WDWHV86 WKH6XSUHPH&RXUW
VWULFWO\FRQVWUXHGWKHWLPHOLPLWVVHWIRUWKLQ5XOH F LQ
DIILUPLQJWKLVFRXUW¶VMXGJPHQWLQ8QLWHG6WDWHVY5XSHUW
)G WK&LU KROGLQJWKDWDGLVWULFWFRXUWODFNV
MXULVGLFWLRQRYHUDSRVWWULDOPRWLRQIRUMXGJPHQWRIDFTXLWWDO
ILOHGRQHGD\RXWVLGHWKH5XOH¶VVHYHQGD\SHULRG 7KH&RXUW
KHOGWKDWDPRWLRQXQGHU5XOH F ³PXVWEHILOHGHLWKHU
ZLWKLQ VHYHQ GD\V RI WKH MXU\¶V GLVFKDUJH RU ZLWKLQ DQ
H[WHQGHGSHULRGIL[HGE\WKHFRXUWGXULQJWKDWGD\SHULRG´
&DUOLVOH86DW
8QGHU WKH UXOHV IRU FRPSXWLQJ WLPH LQ 5XOH D WKH
VHYHQGD\SHULRGIRUILOLQJDPRWLRQXQGHU5XOH F RU5XOH
H[SLUHG RQ 2FWREHU 'HIHQGDQW ILOHG ERWK KLV
PRWLRQIRUDQHZWULDODQGKLVPRWLRQIRUDQH[WHQVLRQRIWLPH
DIWHU WKLV GDWH $FFRUGLQJO\ WKH GLVWULFW FRXUW FRUUHFWO\
FRQFOXGHG WKDW LW ODFNHG MXULVGLFWLRQ WR HQWHUWDLQ HLWKHU
PRWLRQ6HH5XSHUW)GDW ³8QGHU5XOHLWLV
EH\RQGWKHFRXUW¶VMXULVGLFWLRQWRJUDQWDQXQWLPHO\PRWLRQ
IRUDFTXLWWDO´ 6HHDOVR8QLWHG6WDWHVY6KHSSDUG)G
WK&LU FRQFOXGLQJRQWKHDXWKRULW\RI
&DUOLVOH WKDW WKH GLVWULFW FRXUW ODFNHG MXULVGLFWLRQ RYHU DQ
XQWLPHO\5XOH F PRWLRQ
(PXHJEXQHPDUJXHVWKDWWKH³PDLOER[UXOH´UHFRJQL]HGLQ
+RXVWRQY/DFN86 KROGLQJWKDWDSUR
VHKDEHDVSHWLWLRQHU³ILOHV´DQRWLFHRIDSSHDOXSRQGHOLYHU\
RILWWRSULVRQRIILFLDOVIRUIRUZDUGLQJE\PDLOWRWKHFOHUNRI
FRXUWV DSSOLHV WR KLV FDVH ZLWK WKH UHVXOW WKDW ZKHQ KH
WHQGHUHG KLV PRWLRQ IRU DQ H[WHQVLRQ RI WLPH WR SULVRQ

-- 18 of 20 --

8QLWHG6WDWHVY(PXHJEXQDP 1R
2Q2FWREHUWKHGLVWULFWFRXUWGRFNHWHGDPRWLRQWR
H[WHQG WKH WLPH IRU ILOLQJ WKH PRWLRQ IRU D QHZ WULDO
'HIHQGDQWGDWHGWKHPRWLRQIRUDQH[WHQVLRQRIWLPH2FWREHU
EXWWKHHQYHORSHLQZKLFKSULVRQRIILFLDOVVHQWLWWR
WKH FOHUN RI WKH GLVWULFW FRXUW EHDUV D SRVWDO VWDPS GDWHG
2FWREHU2Q2FWREHU'HIHQGDQWILOHGD
PRWLRQIRUMXGJPHQWRIDFTXLWWDOSXUVXDQWWR5XOH F RIWKH
)HGHUDO5XOHVRI&ULPLQDO3URFHGXUHRULQWKHDOWHUQDWLYHIRU
DQHZWULDOSXUVXDQWWR5XOH$WDVXEVHTXHQWKHDULQJWKH
GLVWULFWFRXUW FRQFOXGHGWKDWLWODFNHGMXULVGLFWLRQRYHUWKH
PRWLRQIRUDQH[WHQVLRQRIWLPHDQGWKHPRWLRQIRUDQHZWULDO
VLQFH(PXHJEXQHPGLGQRWILOHHLWKHUZLWKLQVHYHQGD\VRIWKH
MXU\¶VYHUGLFW'HIHQGDQWFRQWHQGVWKDWWKHGLVWULFWFRXUWHUUHG
LQVRFRQFOXGLQJ
:HUHYLHZWKHGHQLDORIDPRWLRQIRUMXGJPHQWRIDFTXLWWDO
GH QRYR EXW ZLOO DIILUP WKH GLVWULFW FRXUW LI WKH HYLGHQFH
YLHZHGLQWKHOLJKWPRVWIDYRUDEOHWRWKHJRYHUQPHQWZRXOG
DOORZ D UDWLRQDO WULHU RI IDFW WR ILQG WKH GHIHQGDQW JXLOW\
EH\RQG D UHDVRQDEOH GRXEW 8QLWHG 6WDWHV Y +DUURG
)G WK&LU TXRWLQJ8QLWHG6WDWHVY
&DQDQ )G WK &LU 5XOH F
SURYLGHV
0RWLRQ$IWHU'LVFKDUJHRI-XU\,IWKHMXU\UHWXUQVD
YHUGLFWRIJXLOW\RULVGLVFKDUJHGZLWKRXWKDYLQJUHWXUQHG
D YHUGLFW D PRWLRQ IRU MXGJPHQW RI DFTXLWWDO PD\ EH
PDGH RU UHQHZHG ZLWKLQ GD\V DIWHU WKH MXU\ LV
GLVFKDUJHGRUZLWKLQVXFKIXUWKHUWLPHDVWKHFRXUWPD\
IL[ GXULQJ WKH GD\ SHULRG ,I D YHUGLFW RI JXLOW\ LV
UHWXUQHG WKH FRXUW PD\ RQ VXFK PRWLRQ VHW DVLGH WKH
YHUGLFWDQGHQWHUMXGJPHQWRIDFTXLWWDO,IQRYHUGLFWLV
UHWXUQHGWKHFRXUWPD\HQWHUMXGJPHQWRIDFTXLWWDO,W
VKDOOQRWEHQHFHVVDU\WRWKHPDNLQJRIVXFKDPRWLRQ
WKDW D VLPLODU PRWLRQ KDV EHHQ PDGH SULRU WR WKH
VXEPLVVLRQRIWKHFDVHWRWKHMXU\
5XOHHPSOR\VWKHVDPHVHYHQGD\SHULRGIRUVHHNLQJDQHZ
WULDO H[FHSW LQ FDVHV RI QHZO\ GLVFRYHUHG HYLGHQFH
$FFRUGLQJO\ ZH WUHDW WKH 5XOHV VLPLODUO\ IRU SXUSRVHV RI
1R 8QLWHG6WDWHVY(PXHJEXQDP
WKH LQGLFWPHQW DQG LWV VXEVHTXHQW LQWURGXFWLRQ DW WULDO´
8QLWHG6WDWHVY:LONHUVRQ)G WK&LU
SHUFXULDP ³,WLVFOHDUKRZHYHUWKDWWKHXVHRIDQDOLDVLQ
DQLQGLFWPHQWDQGLQHYLGHQFHLVSHUPLVVLEOHLILWLVQHFHVVDU\
WR FRQQHFW WKH GHIHQGDQWV ZLWK WKH DFWV FKDUJHG´ 8QLWHG
6WDWHV Y +LQHV )G WK &LU
TXRWDWLRQRPLWWHG 6HHDOVR8QLWHG6WDWHVY0R\D*RPH]
)G WK&LU 8QLWHG6WDWHVY&ODUN
)G WK&LU SHUFXULDP
:HWKLQNWKDWWKHGLVWULFWFRXUWGLGQRWDEXVHLWVGLVFUHWLRQ
E\GHQ\LQJ'HIHQGDQW¶VPRWLRQWRVWULNH%HIRUHWKHGLVWULFW
FRXUW DQG RQ DSSHDO WKH JRYHUQPHQW KDV HUURQHRXVO\
PDLQWDLQHG WKDW WKH HYLGHQFH RI UHFRUG LGHQWLILHV WKH
'HIHQGDQWDV³&KXFN´)RUH[DPSOHWKHJRYHUQPHQWVWDWHV
WKDWWKHLQGH[FDUGIRXQGRQ3OD\HUXSRQKLVDUUHVWOLVWHGWKH
QDPH ³&KXFN´ ZKHQ LQ IDFW WKH QDPH RQ WKH FDUG ZDV
³&KXFNV´ $OWKRXJK WKH JRYHUQPHQW KDV LQFRUUHFWO\
FKDUDFWHUL]HGWKHHYLGHQFHZLWKUHVSHFWWRWKHQDPHVE\ZKLFK
'HIHQGDQW LV NQRZQ WKH UHFRUG HYLQFHV FRQVLGHUDEOH
XQFHUWDLQW\UHJDUGLQJ'HIHQGDQW¶VLGHQWLW\,QWKHWUDQVFULSW
RI WKH UHFRUGHG FRQYHUVDWLRQ EHWZHHQ 3OD\HU DQG -HII
(PXHJEXQHP WKH FRQVSLUDWRUV UHIHU WR ³&KXFN´ QRW
³&KXFNV´RU³&KXNV´DQGWKHKRWHOUHJLVWU\OLVWVWKHRFFXSDQW
RI5RRPDV³(&KXFNV´6LJQLILFDQWO\DWWULDO3OD\HU
UHIHUUHGWRKLVVXSSOLHUDV³&KXFN´DQGWHVWLILHGWKDWKHNQHZ
WKH 'HIHQGDQW E\ WKH QDPH ³&KXFN´ $FFRUGLQJO\ WKH
LQFOXVLRQRIWKHDOLDV³&KXFN´LQWKHLQGLFWPHQWVHUYHGWKH
SURSHUSXUSRVHRILGHQWLI\LQJWKH'HIHQGDQW:LONHUVRQ
)GDW
(PXHJEXQHP¶VDUJXPHQWWKDWWKHPLVVSHOOLQJRIKLVQDPH
YLWLDWHVWKHLQGLFWPHQWLVOLNHZLVHXQDYDLOLQJ³$QDPHQHHG
QRWEHFRUUHFWO\VSHOOHGLQDQLQGLFWPHQWLIVXEVWDQWLDOO\WKH
VDPHVRXQGLVSUHVHUYHG´)DXVWY8QLWHG6WDWHV86
6HHDOVR7KLERGHDXY8QLWHG6WDWHV
)G WK&LU SHUFXULDP &R[Y6WDWH
6:G 7H[&ULP$SS ³,IWKHQDPHVPD\
EHVRXQGHGDOLNHZLWKRXWGRLQJYLROHQFHWRWKHSRZHURIWKH
OHWWHUV IRXQG LQ WKH YDULDQW RUWKRJUDSK\ RU LI WKH QDPH DV

-- 19 of 20 --

8QLWHG6WDWHVY(PXHJEXQDP 1R
VWDWHGEHLGHPVRQDQVZLWKWKHWUXHQDPHWKHYDULDQFHDQG
PLVVSHOOLQJLVLPPDWHULDO´ TXRWDWLRQRPLWWHG %HFDXVHWKH
LQGLFWPHQWRI³&KXFNV(PXHJEXQDP´VXEVWDQWLDOO\SUHVHUYHV
WKH VDPH VRXQG DV 'HIHQGDQW¶V WUXH QDPH &KXNV
(PXHJEXQHP)DXVWGLVSRVHVRIWKLVDUJXPHQW
,9$GPLVVLELOLW\RI7HVWLPRQ\XQGHUWKH&R
&RQVSLUDWRU([FHSWLRQWRWKH+HDUVD\5XOH
5XOH G ( RIWKH)HGHUDO5XOHVRI(YLGHQFHGHILQHV
VWDWHPHQWVPDGHE\DFRFRQVSLUDWRUDV³QRWKHDUVD\´ZKHQ
PDGHGXULQJWKHFRXUVHDQGLQIXUWKHUDQFHRIWKHFRQVSLUDF\
7RDGPLWDFRFRQVSLUDWRUVWDWHPHQWXQGHU5XOH G (
WKHJRYHUQPHQWPXVWILUVWHVWDEOLVKE\DSUHSRQGHUDQFHRIWKH
HYLGHQFHWKDW WKHFRQVSLUDF\H[LVWHG WKHGHIHQGDQWZDV
D PHPEHU RI WKH FRQVSLUDF\ DQG WKH FRFRQVSLUDWRU¶V
VWDWHPHQWV ZHUH PDGH LQ IXUWKHUDQFH RI WKH FRQVSLUDF\
8QLWHG6WDWHVY5LRV)G WK&LU SHU
FXULDP FLWDWLRQVRPLWWHG ³7KHGLVWULFWFRXUWLVUHTXLUHGWR
PDNHDILQGLQJWKDWWKHJRYHUQPHQWKDVPHWLWVEXUGHQEXW
PD\DGPLWWKHVWDWHPHQWVLQTXHVWLRQVXEMHFWWRDODWHUUXOLQJ
WKDWWKLVEXUGHQZDVPHW´8QLWHG6WDWHVY0RVV)G
WK&LU FLWLQJ8QLWHG6WDWHVY9LQVRQ)G
WK &LU 7KLV ILQGLQJ LV D IDFWXDO
GHWHUPLQDWLRQVXEMHFWWRUHYLHZXQGHUWKHFOHDUO\HUURQHRXV
VWDQGDUG8QLWHG6WDWHVY*HVVD)G WK
&LU HQEDQF FLWLQJ0DKRQH\Y8QLWHG6WDWHV
)G WK&LU &RFRQVSLUDWRUVWDWHPHQWV
WKHPVHOYHV³VKDOOEHFRQVLGHUHGEXWDUHQRWDORQHVXIILFLHQWWR
HVWDEOLVK´ WKH H[LVWHQFH RI D FRQVSLUDF\ RU D GHIHQGDQW¶V
SDUWLFLSDWLRQ LQ LW )(' 5 (9,' G ( 6HH DOVR
%RXUMDLO\ Y 8QLWHG 6WDWHV 86
8QLWHG6WDWHVY7RFFR)G WK&LU
9LQVRQ)GDW$GPLVVLRQRIVWDWHPHQWVDV³QRW
KHDUVD\´XQGHU5XOH G ( EDVHGRQWKHVHWKUHVKROG
GHWHUPLQDWLRQVSUHVHQWVDTXHVWLRQRIODZWKDWZHUHYLHZGH
QRYR*HVVD)GDW FLWDWLRQVRPLWWHG
:KHQWKHJRYHUQPHQWVRXJKWWRLQWURGXFHWKHWDSHUHFRUGHG
FRQYHUVDWLRQ EHWZHHQ 3OD\HU DQG -HII (PXHJEXQHP DW WKH
1R 8QLWHG6WDWHVY(PXHJEXQDP
'HWURLW 0HWURSROLWDQ DLUSRUW 'HIHQGDQW REMHFWHG RQ WKH
JURXQGVWKDWKHZDVQRWWKH³&KXFN´ZKRP3OD\HUDQGKLV
EURWKHUGLVFXVVHG3OD\HUKDGFHDVHGWREHDFRFRQVSLUDWRU
RQFH KH ZDV DUUHVWHG DQG EHJDQ FRRSHUDWLQJ ZLWK IHGHUDO
DJHQWVDQGWKHVWDWHPHQWVLQWKHFRQYHUVDWLRQGLGQRWIXUWKHU
WKHFRQVSLUDF\,QRYHUUXOLQJWKHREMHFWLRQWKHGLVWULFWFRXUW
FRQFOXGHGWKDWWKHSURVHFXWLRQKDGPHWLWVEXUGHQRIVKRZLQJ
WKDWDFRQVSLUDF\H[LVWHGRIZKLFK'HIHQGDQWZDVDPHPEHU
DQGWKDWWKHSURIIHUHGVWDWHPHQWVIXUWKHUHG WKHFRQVSLUDF\
7KHFRXUWIRXQGDFRQVSLUDF\EDVHGRQ3OD\HU¶VWHVWLPRQ\
WKHLQGH[FDUGIRXQGRQ3OD\HU¶VSHUVRQXSRQKLVDUUHVWDQG
WKHFRQWHQWRIWKHUHFRUGHGFRQYHUVDWLRQLWVHOI,QDGGLWLRQWR
3OD\HU¶VWHVWLPRQ\WKHFRXUWUHOLHGRQWKHKRWHOUHFRUGVWR
HVWDEOLVK WKDW 'HIHQGDQW ZDV D PHPEHU RI WKH FRQVSLUDF\
%HFDXVHWKHSURIIHUHGFRQYHUVDWLRQFRQFHUQHGSD\PHQWIRU
WKHKHURLQDOUHDG\DFTXLUHGLQ&DQDGDWKHFRXUWYLHZHGWKH
VWDWHPHQWVDVPDGHLQIXUWKHUDQFHRIWKHFRQVSLUDF\
7KH UHFRUG VXSSRUWV HDFK RI WKHVH SUHOLPLQDU\
GHWHUPLQDWLRQVPDGHE\WKHGLVWULFWFRXUWDQGQRQHRIWKHP
LVFOHDUO\HUURQHRXV)XUWKHUDVWKHGLVWULFWFRXUWFRQFOXGHG
WKHFRQVSLUDF\FRQWLQXHGXQWLO3OD\HU¶VVXSSOLHUVUHFHLYHGIXOO
SD\PHQWIRUWKHKHURLQ3OD\HU¶VDUUHVWDQGFRRSHUDWLRQZLWK
DXWKRULWLHVLQQRZD\DOWHUWKLVFRQFOXVLRQ³>:@KHUHDVKHUH
WKHXQDUUHVWHGFRFRQVSLUDWRUVDUHVWLOOFDSDEOHRISHUSHWXDWLQJ
WKHRQJRLQJFRQVSLUDF\WKHVWDWHPHQWVPDGHE\WKHPWRWKH
DUUHVWHG FRQVSLUDWRU DUH DGPLVVLEOH IRU 5XOH G (
SXUSRVHV HYHQ ZKHQ WKH DUUHVWHG FRQVSLUDWRU ZDV DFWLQJ
μXQGHUWKHGLUHFWLRQDQGVXUYHLOODQFHRIJRYHUQPHQWDJHQWVWR
REWDLQHYLGHQFHDJDLQVWWKHFRFRQVSLUDWRUV¶´8QLWHG6WDWHVY
5DPRV)G WK&LU TXRWLQJ8QLWHG
6WDWHVY+DPLOWRQ)G WK&LU )RU
WKHVHUHDVRQVZHKROGWKDWWKHGLVWULFWFRXUWSURSHUO\DGPLWWHG
WKHHYLGHQFHSXUVXDQWWR5XOH G (
90RWLRQIRU-XGJPHQWRI$FTXLWWDO
2Q6HSWHPEHUWKHMXU\UHWXUQHGDYHUGLFWRIJXLOW\
DJDLQVW(PXHJEXQHP7KDWGD\(PXHJEXQHPLQIRUPHGWKH
GLVWULFWFRXUWWKDWKHLQWHQGHGWRILOHDPRWLRQIRUDQHZWULDO

-- 20 of 20 --

Continue your research in ChatGPT or Claude

Connect Omnilex to search the legal corpus from your AI assistant.