01a0406p.06

7KH +RQRUDEOH 9LFWRULD $ 5REHUWV 8QLWHG 6WDWHV 'LVWULFW -XGJH IRU
WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ

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$$5,
'HIHQGDQW$SSHOOHH
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH:HVWHUQ'LVWULFWRI7HQQHVVHHDW0HPSKLV
1R²-XOLD6*LEERQV'LVWULFW-XGJH
$UJXHG$SULO
'HFLGHGDQG)LOHG1RYHPEHU
%HIRUH%2**6DQG&/$<&LUFXLW-XGJHV52%(576
'LVWULFW-XGJH
BBBBBBBBBBBBBBBBB
&2816(/
$5*8(')UHGHULFN+*RGZLQ$66,67$1781,7('
67$7(6$77251(<0HPSKLV7HQQHVVHHIRU$SSHOODQW
0LFKDHO - 6WHQJHO 0HPSKLV 7HQQHVVHH IRU $SSHOOHH

-- 1 of 8 --

8QLWHG6WDWHVY6DDUL 1R
21 %5,() 7UDF\ / %HUU\ $66,67$17 81,7('
67$7(6$77251(<0HPSKLV7HQQHVVHHIRU$SSHOODQW
0LFKDHO-6WHQJHO0HPSKLV7HQQHVVHHIRU$SSHOOHH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
52%(576'LVWULFW-XGJH,Q3D\WRQY1HZ<RUN
866&W/(GG
WKH&RXUWVXPPDUL]HGLWVQRZIDPLOLDUKROGLQJDVIROORZV
,QWHUPVWKDWDSSO\HTXDOO\WRVHL]XUHVRISURSHUW\DQGWR
VHL]XUHVRISHUVRQVWKH)RXUWK$PHQGPHQWKDVGUDZQD
ILUP OLQH DW WKH HQWUDQFH WR WKH KRXVH $EVHQW H[LJHQW
FLUFXPVWDQFHV WKDW WKUHVKROG PD\ QRW UHDVRQDEO\ EH
FURVVHGZLWKRXWDZDUUDQW
$WLVVXHLQWKHLQVWDQWDSSHDOWDNHQE\WKH8QLWHG6WDWHVLV
ZKHWKHU WKH DFWLRQV RI WKH ODZ HQIRUFHPHQW RIILFHUV ZKR
DUUHVWHG'HIHQGDQW0LFKDHO6DDULFURVVHGWKDWILUPOLQH:H
KROGWKDWWKH\GLGDQGWKHUHIRUH$)),50WKHGLVWULFWFRXUW¶V
GHFLVLRQWRVXSSUHVVWKHWDLQWHGHYLGHQFH
, %DFNJURXQG
'HIHQGDQWZDVLQGLFWHGRQWKLUWHHQFRXQWVRISRVVHVVLRQRI
ILUHDUPVDQGDPPXQLWLRQDIWHUDSURWHFWLYHRUGHUZDVHQWHUHG
DJDLQVWKLPLQYLRODWLRQRI86&† J +LVFDVH
ZDVDVVLJQHGWR8QLWHG6WDWHV'LVWULFW-XGJH-XOLD6*LEERQV
ZKRUHIHUUHG'HIHQGDQW¶V0RWLRQWR6XSSUHVVWKHILUHDUPV
DQG DPPXQLWLRQ WR 0DJLVWUDWH -XGJH 'LDQH 9HVFRYR IRU D
UHSRUW DQG UHFRPPHQGDWLRQ $IWHU DQ 2FWREHU
HYLGHQWLDU\KHDULQJ0DJLVWUDWH-XGJH9HVFRYRUHFRPPHQGHG
WKDWWKH0RWLRQEHJUDQWHG7KH*RYHUQPHQWILOHGREMHFWLRQV
DQG-XGJH*LEERQVKHOGDQDGGLWLRQDOHYLGHQWLDU\KHDULQJRQ
'HFHPEHU6XEVHTXHQWO\-XGJH*LEERQVJUDQWHG
'HIHQGDQW¶V0RWLRQWR6XSSUHVV8QLWHG6WDWHVY6DDUL
)6XSSG :'7HQQ 7KLVDSSHDOIROORZHG
1R 8QLWHG6WDWHVY6DDUL
ZLWKRXW H[LJHQW FLUFXPVWDQFHV LQ YLRODWLRQ RI WKH )RXUWK
$PHQGPHQW&RQVHTXHQWO\WKH&RXUW$)),506WKHGLVWULFW
FRXUW¶VVXSSUHVVLRQRIWKHJXQVHL]HGLQFLGHQWWR'HIHQGDQW¶V
LOOHJDODUUHVW

-- 2 of 8 --

8QLWHG6WDWHVY6DDUL 1R
GLVSRVH RI WKH ZHDSRQU\ KH ZDV DFFXVHG RI SRVVHVVLQJ
)XUWKHUZLWKRIILFHUVVXUYHLOOLQJHYHU\SRUWDORI'HIHQGDQW¶V
DSDUWPHQWWKHUHZDVQRGDQJHUWKDWKHZRXOGHVFDSHEHIRUH
DZDUUDQWFRXOGEHVHFXUHG)LQDOO\EHFDXVHWKHUHZDVQR
LPPHGLDWHRUFRQWLQXRXVSXUVXLWRIWKH'HIHQGDQWIURPWKH
VFHQH RI D FULPH WKH RIILFHUV ZHUH QRW LQ KRW SXUVXLW RI D
IOHHLQJIHORQ:HOVKY:LVFRQVLQ86
6&W /(GG :LWKRXWWKHWKUHDWRI
LPPHGLDWH GDQJHU WKDW ZRXOG KDYH JLYHQ ULVH WR H[LJHQW
FLUFXPVWDQFHV WKH RIILFHUV¶ VDIHW\ GLG QRW UHTXLUH WKHP WR
VXPPRQ 'HIHQGDQW RXW RI KLV KRXVH DW JXQ SRLQW EHIRUH
REWDLQLQJDQDUUHVWZDUUDQW
$OWKRXJK WKH *RYHUQPHQW LQVLVWV WKDW WKH RIILFHUV KDG
SUREDEOHFDXVHLWDOVRHPSKDVL]HVWKDWWKHRIILFHUVZHUHQRW
DWWHPSWLQJ WR DUUHVW 'HIHQGDQW 5DWKHU WKH *RYHUQPHQW
DUJXHVWKHRIILFHUVRQO\ZDQWHGWRLQWHUYLHZ'HIHQGDQWDV
SDUWRIWKHLURQJRLQJLQYHVWLJDWLRQ,IWKHRIILFHUVRQO\ZDQWHG
WRWDONWR6DDULEXWZHUHFRQFHUQHGDERXWWKHLUVDIHW\LQVR
GRLQJWKHQWKH\ZHUHUHTXLUHGVLPSO\WRVXPPRQKLPLQD
QRQFRHUFLYHIDVKLRQXVLQJWKHLURZQMXGJPHQWDVWRKRZRU
LIWRZDUQKLPDERXWDQ\LPSHQGLQJGLVSOD\RIIRUFH%XW
WKHLUGHVLUHWRLQWHUYLHZ'HIHQGDQWGLGQRWMXVWLI\RUGHULQJ
KLP RXW RI KLV KRPH DW JXQSRLQW RU FRQVWLWXWH DQ H[LJHQW
FLUFXPVWDQFH WKDW H[FXVHG WKHLU ZDUUDQWOHVV HQWU\ LQWR
'HIHQGDQW¶VDSDUWPHQW
,QGHHG UHJDUGOHVV RI ZKHUH 'HIHQGDQW ZDV ORFDWHG
'HIHQGDQWKDGWKHULJKWWRUHPDLQVLOHQW86&RQVWDPHQG
90LUDQGDY$UL]RQD866&W
/(GG 'HIHQGDQW¶V ULJKW WR UHPDLQ VLOHQW
FRXSOHGZLWKKLVULJKWWRUHWUHDWLQWRKLVRZQKRPHDQGEHIUHH
IURPXQUHDVRQDEOHJRYHUQPHQWDOLQWUXVLRQ3D\WRQ86
DWOHDGVWREXWRQHFRQFOXVLRQWKHRIILFHUVKDGQRULJKW
WR IRUFH 'HIHQGDQW RXW KLV KRPH ZLWK WKHLU JXQV GUDZQ WR
FRQGXFWDQLQWHUYLHZ
,,, &RQFOXVLRQ
7KHWULDOFRXUWSURSHUO\KHOGWKDW'HIHQGDQW¶VZDUUDQWOHVV
DUUHVW ZDV DFFRPSOLVKHG ZKLOH KH ZDV LQ KLV KRPH DQG
1R 8QLWHG6WDWHVY6DDUL
$W RUDO DUJXPHQW KRZHYHU WKH *RYHUQPHQW WRRN H[FHSWLRQ WR RQH
QDUURZ IDFWXDO ILQGLQJ WKDW WKH &RXUW ZLOO GHVFULEH LQIUD
7KH IDFW WKDW WKH RIILFHUV OHDUQHG WKDW VKRWV KDG QRW DFWXDOO\ EHHQ
ILUHG LV QRW LQFOXGHG LQ WKH GLVWULFW FRXUW¶V ILQGLQJV RI IDFW +RZHYHU
2IILFHU %DWHPDQ WHVWLILHG WR WKDW HIIHFW GXULQJ WKH 'HFHPEHU
VXSSUHVVLRQ KHDULQJ :KLOH QRW VSHFLILFDOO\ UHIHUULQJ WR WKLV SRUWLRQ RI
2IILFHU %DWHPDQ¶V WHVWLPRQ\ WKH GLVWULFW FRXUW IRXQG KLV WHVWLPRQ\
FRQFHUQLQJ KLV FRQWDFWV ZLWK 0V 6DDUL WR EH FUHGLEOH
,QKHURSLQLRQ-XGJH*LEERQVDGRSWHG0DJLVWUDWH-XGJH
9HVFRYR¶V SURSRVHG ILQGLQJV RI IDFW ZLWK FHUWDLQ
PRGLILFDWLRQV 2Q EULHI WKH *RYHUQPHQW DJUHHG WKDW WKH
GLVWULFWFRXUW¶VILQGLQJVRIIDFWZHUHQRWFOHDUO\HUURQHRXV
7KXVWKHIROORZLQJIDFWXDOILQGLQJVDUHQRWLQGLVSXWH
2Q0DUFK0HPSKLV3ROLFH'HSDUWPHQW2IILFHUV
-DPHV &XUULQ 5REHUWV %ULGJHV *DOHRFUHGR %DWHPDQ DQG
:LOWRQ&OHYHODQGUHVSRQGHGWRDFDOOUHJDUGLQJ³VKRWVILUHG´
DWWKHUHVLGHQFHRI'HIHQGDQW¶VH[ZLIH$QQH6DDUL%HIRUH
SURFHHGLQJWR'HIHQGDQW¶VDSDUWPHQW2IILFHUV%DWHPDQDQG
%ULGJHVZHQWWRVSHDNWR0V6DDUL:KLOHWKHUH2IILFHUV
%DWHPDQDQG%ULGJHVOHDUQHGWKDWVKRWVKDGQRWDFWXDOO\EHHQ
ILUHG 5DWKHU 'HIHQGDQW ZDV REVHUYHG VWDQGLQJ LQ 0V
6DDUL¶V ZLQGRZ ZLWK ZKDW DSSHDUHG WR EH D SLVWRO LQ KLV
KDQG0V6DDULLQIRUPHGWKHRIILFHUVWKDW'HIHQGDQWZDV
DUPHGDWDOOWLPHV$GGLWLRQDOO\2IILFHU&XUULQWHVWLILHGWKDW
KH UHFHLYHG LQIRUPDWLRQ IURP DQ XQNQRZQ VRXUFH WKDW
'HIHQGDQWSRVVHVVHGH[SORVLYHV2IILFHU&OHYHODQGWHVWLILHG
WKDWKHZDVDGYLVHGE\DQ³XQNQRZQVRXUFH´WKDW'HIHQGDQW
EHORQJHGWRDPLOLWLDJURXSDQGZDVKHDYLO\DUPHG
(YHQWXDOO\ WKH IRXU RIILFHUV ZHQWWR'HIHQGDQW¶V
DSDUWPHQW ZKHUH WKH GLVWULFW FRXUW IRXQG WKH IROORZLQJ
WUDQVSLUHG
8SRQ DUULYLQJ DW GHIHQGDQW¶V DSDUWPHQW WKH IRXU
RIILFHUVGHFLGHGWRDSSURDFKWKHKRXVHDQGPDNHFRQWDFW
ZLWKGHIHQGDQW&OHYHODQGWHVWLILHGWKDW WKHIURQWGRRU
ZDVFORVHGDQGWKHVKDGHVZHUHGUDZQEXWKHVDZVRPH

-- 3 of 8 --

8QLWHG6WDWHVY6DDUL 1R
PRYHPHQW LQVLGH WKH DSDUWPHQW WKURXJK WKH GUDZQ
VKDGHV'HIHQGDQW¶VDSDUWPHQWZDVRQWKHVHFRQGIORRU
&OHYHODQGDQG&XUULQSRVLWLRQHGWKHPVHOYHVRQDODQGLQJ
DSSUR[LPDWHO\LQIURQWRIGHIHQGDQW VIURQWGRRU%ULGJHV
VWRRG DERXW IRXU VWHSV GRZQ IURP WKH ODQGLQJ DQG
%DWHPDQ ZDV SRVLWLRQHG DW WKH ERWWRP RI WKH VWHSV
&OHYHODQGKDGDJDXJHSXPSDFWLRQVKRWJXQGUDZQ
DQG LQ D μORZ UHDG\¶ SRVLWLRQ WKDW LV SRLQWHG DW
DSSUR[LPDWHO\IRUW\ILYHGHJUHHVWRZDUGWKHJURXQGLQ
IURQWRIWKHGRRU&XUULQKDGKLVVHUYLFHZHDSRQGUDZQ
%ULGJHVWHVWLILHGWKDWKHGUHZKLVVHUYLFHZHDSRQDIWHU
RIILFHUV &OHYHODQG DQG &XUULQ PDGH FRQWDFW ZLWK
GHIHQGDQWDQGWKHQLPPHGLDWHO\ZHQWWRWKHWRSRIWKH
VWDLUV%DWHPDQWHVWLILHGWKDWVKHZDLWHGRQWKHILUVWIORRU
ZLWKKHUJXQGUDZQXQWLOVKHKHDUGWKDWGHIHQGDQWKDG
EHHQ GLVDUPHG DW ZKLFK WLPH VKH ZHQW WR WKH VHFRQG
IORRU
&OHYHODQG DQG &XUULQ NQRFNHG IRUFHIXOO\ RQ
GHIHQGDQW¶VDSDUWPHQWGRRUDQGLGHQWLILHGWKHPVHOYHVDV
SROLFHDVGHIHQGDQWDQVZHUHGWKHGRRU7KHRIILFHUVZHUH
DSSUR[LPDWHO\IRXUIHHWDZD\IURPGHIHQGDQW&OHYHODQG
WHVWLILHG WKDW KH WKLQNV WKDW GHIHQGDQW¶V GRRU ZDV VWLOO
FORVHG ZKHQ WKH RIILFHUV DQQRXQFHG μSROLFH¶ 1HLWKHU
&XUULQ QRU &OHYHODQG ZDV DEOH WR UHFDOO ZKHWKHU
GHIHQGDQW ZDV RUGHUHG RXW RU ZKHWKHU KH FDPH RXW
+RZHYHU&OHYHODQGWHVWLILHGWKDWWKHRIILFHUVZRXOGQRW
KDYHSHUPLWWHGGHIHQGDQWWRVWD\LQVLGHKLVDSDUWPHQW
7UDW 'HIHQGDQWRQWKHRWKHUKDQGVSHFLILFDOO\
WHVWLILHGWKDWZKHQKHRSHQHGWKHGRRUKHZDVVWDQGLQJ
LQVLGH KLV DSDUWPHQW LQ WKH GRRUZD\ $FFRUGLQJ WR
GHIHQGDQWWKHRIILFHUVKDGWKHLUZHDSRQVSRLQWHGDWKLP
DQG LQVWUXFWHG KLP WR VWHS RXWVLGH 7KH FRXUW ILQGV
GHIHQGDQW¶V XQFRQWURYHUWHG WHVWLPRQ\ WKDW KH ZDV
RUGHUHGWRFRPHRXWRIWKHDSDUWPHQWWREHFUHGLEOHDQG
ILQGV DV D IDFW WKDW VXFK RUGHU ZDV JLYHQ 'HIHQGDQW
WHVWLILHGWKDWKHVWHSSHGRXWVLGHEHFDXVHKHZDVRUGHUHG
WRGRVRDQGKHZDVDIUDLGRIEHLQJVKRW+HVWHSSHGRXW
ZLWKKLVKDQGVDERYHKLVKHDG:KLOHWKHJXQVZHUHVWLOO
WUDLQHGRQWKHGHIHQGDQWRQHRIWKHRIILFHUVDVNHGKLPLI
1R 8QLWHG6WDWHVY6DDUL
'
&RQWUDU\ WR WKH *RYHUQPHQW¶V DUJXPHQW RWKHUZLVH WKLV
&RXUW¶V KROGLQJ ZLOO QRW SODFH SROLFH RIILFHUV LQ MHRSDUG\
7KH*RYHUQPHQWQRWHVWKDWRIILFHUVDUHSHUPLWWHGWRDSSURDFK
DVXVSHFW¶VKRPHIRUDQLQWHUYLHZ$OYDUH]Y0RQWJRPHU\
&RXQW\)G WK&LU 8QLWHG6WDWHVY
'DRXVW )G VW &LU ,W IXUWKHU
HPSKDVL]HVWKHQHHGIRURIILFHUVWRSURWHFWWKHPVHOYHVZKLOH
DSSURDFKLQJLQGLYLGXDOVWKDWWKH\KDYHUHDVRQWREHOLHYHPD\
EHDUPHGDQGGDQJHURXV+RZHYHUWKHRIILFHUVKHUHGLGPRUH
WKDQDSSURDFK'HIHQGDQW¶VDSDUWPHQWIRUDQLQWHUYLHZ7KH\
HIIHFWHG D FRQVWUXFWLYH DUUHVW RI 'HIHQGDQW LQVLGH KLV
DSDUWPHQW$QGWKHRIILFHUV¶VDIHW\FRQFHUQVGLGQRWUHTXLUH
WKHPWRDFWVRSUHFLSLWRXVO\
$VVXPLQJZLWKRXWGHFLGLQJWKDWWKH*RYHUQPHQWLVFRUUHFW
WKDWWKHRIILFHUVKDGSUREDEOHFDXVHWRDUUHVW'HIHQGDQWWKH
RIILFHUVKDGWLPHWRVHFXUHDQDUUHVWZDUUDQW$UPHGZLWKD
ZDUUDQW WKH RIILFHUV ZRXOG KDYH EHHQ SHUPLWWHG WR DUUHVW
'HIHQGDQWXVLQJDOOQHFHVVDU\SUHFDXWLRQV7KHRIILFHUVGLG
QRWDWWHPSWWRJHWDZDUUDQW
)XUWKHULIH[LJHQWFLUFXPVWDQFHVGLFWDWHG±LI'HIHQGDQW
KDGSRVHGDQLPPHGLDWHWKUHDWWRWKHVDIHW\RIWKHSXEOLFRUWR
WKHRIILFHUVLIWKHUHZDVDQLPPHGLDWHGDQJHUWKDW'HIHQGDQW
ZRXOGGHVWUR\HYLGHQFHLI'HIHQGDQWKDGSRVHGDWKUHDWRI
IOHHLQJEHIRUHWKHRIILFHUVFRXOGREWDLQDZDUUDQWRULIWKH
RIILFHUVZHUHLQKRWSXUVXLWRI'HIHQGDQWEHFDXVHKHZDVD
IOHHLQJIHORQ±WKHRIILFHUVZRXOGKDYHEHHQH[FXVHGIURPWKH
ZDUUDQWUHTXLUHPHQW6HH0LQQHVRWDY2OVRQ86
6&W /(GG +DG DQ\ RI
WKHVHH[LJHQWFLUFXPVWDQFHVEHHQSUHVHQWWKHRIILFHUVZRXOG
KDYHEHHQSHUPLWWHGWRHIIHFWDQLPPHGLDWHDUUHVWDQGWRWDNH
DOOQHFHVVDU\SUHFDXWLRQVLQWKHSURFHVV
+RZHYHUQRH[LJHQFLHVSHUPLWWHG'HIHQGDQW¶VLPPHGLDWH
DUUHVW $V SUHYLRXVO\ VWDWHG WKHUH ZDV QR HYLGHQFH WKDW
'HIHQGDQWSRVHGDQLPPHGLDWHWKUHDWWRWKHRIILFHUVRUWKH
SXEOLFDWWKHWLPHWKDWWKHRIILFHUVDUULYHGDWKLVDSDUWPHQW
1RUZDVWKHUHHYLGHQFHWKDW'HIHQGDQWZRXOGRUFRXOGUHDGLO\

-- 4 of 8 --

8QLWHG6WDWHVY6DDUL 1R
%HFDXVH *RUL LV GLVWLQJXLVKDEOH WKLV &RXUW LV QRW SUHVHQWHG ZLWK WKH
RFFDVLRQ WR DJUHH RU GLVDJUHH ZLWK WKH *RUL RSLQLRQ
$GGLWLRQDOO\ WKH *RUL FRXUW KHOG WKDW WKH RIILFHUV DFWHG
UHDVRQDEO\LQUHVSRQVHWRWKH³VZLIWO\GHYHORSLQJVLWXDWLRQ´
WKH\FRQIURQWHG,GDW
7KH HQFRXQWHU DW WKH GRRU RI $SDUWPHQW 0 ZDV
SUHFLSLWDWHGE\WKHDUULYDORIWKHIRRGGHOLYHU\RUGHUHGE\
WKHRFFXSDQWV7KHVLWXDWLRQUHDVRQDEO\FDOOHGIRUVRPH
LPPHGLDWH PHDVXUHV DQG ZH FRQFOXGH WKDW
DFFRPSDQ\LQJ WKH GHOLYHU\ ZRPDQ WR WKH GRRU ZDV D
UHDVRQDEOHFRXUVHRIDFWLRQLQWKHFLUFXPVWDQFHVLIQRW
WKHRQO\RUQHFHVVDU\RQH,IWKH\OHWWKHGHOLYHU\ZRPDQ
SURFHHGXQDFFRPSDQLHGDIWHUVHHLQJSROLFHLQWKHIR\HU
VKHPLJKWEHWUD\WKHLUSUHVHQFHLQWHQWLRQDOO\RUE\KHU
DODUP LI WKH\ WXUQHG KHU DZD\ WKH KXQJU\ RFFXSDQWV
PLJKW KDYH FDOOHG WKH WDNHRXW UHVWDXUDQW WR FRPSODLQ
DERXWWKHGHOD\DQGEHHQDOHUWHGWKDWZD\7KHSROLFH
FRXOGDVVXPHWKDWRQFHDOHUWHGWKHRFFXSDQWVPLJKWKDYH
GLVSRVHGRIWKHFRQWUDEDQGE\WKHZLQGRZRUWKHWRLOHW
RUPLJKWKDYHSUHFLSLWDWHGYLROHQFH
,GDW6HHDOVR8QLWHG6WDWHVY6RFH\)G '
& &LU ZDUUDQWOHVV HQWU\ DOORZHG ZKHUH RIILFHUV
UHDVRQDEO\ EHOLHYH WKDW RFFXSDQWV KDG EHHQ DOHUWHG WR
VXUYHLOODQFHDQGZRXOGGHVWUR\HYLGHQFH
7KH SUHVHQW FDVH LV ZKROO\ GLVWLQJXLVKDEOH IURP *RUL
+HUH 'HIHQGDQW GLG QRW YROXQWDULO\ H[SRVH KLPVHOI WR WKH
SXEOLFVRDVWRHOLPLQDWHWKH3D\WRQUHTXLUHPHQWVRIDZDUUDQW
RUH[LJHQWFLUFXPVWDQFHV'HIHQGDQWZDVVXPPRQHGRXWRI
KLV KRXVH DW WKH RIILFHUV¶ FRPPDQG )XUWKHUPRUH DV
SUHYLRXVO\ VWDWHG WKHUH ZHUH QR GHYHORSLQJ FLUFXPVWDQFHV
WKDWUHTXLUHGVZLIWDFWLRQE\WKHRIILFHUV&RQVHTXHQWO\WKH
*RYHUQPHQW¶VUHOLDQFHRQ*RULLVPLVSODFHG
1R 8QLWHG6WDWHVY6DDUL
KHKDGDQ\ZHDSRQV'HIHQGDQWLQIRUPHGWKHRIILFHUV
WKDW KH KDG D JXQ LQ WKH ZDLVWEDQG RI KLV SDQWV 7KH
RIILFHUV WKHQ UHPRYHG D KDQGJXQ IURP GHIHQGDQW¶V
ZDLVWEDQGDQGSODFHGKLPLQKDQGFXIIV%HFDXVHLWZDV
GDUNQHLWKHURIILFHUZDVDEOHWRVHHWKHZHDSRQEHIRUH
WKH\DVNHGGHIHQGDQWWRVWHSRXWVLGHDQGDVNHGKLPLIKH
KDGDZHDSRQ
6DDUL)6XSSGDW
7KH RIILFHUV FXIIHG 'HIHQGDQW DQG WKH\ HQWHUHG KLV
DSDUWPHQW:KLOHWKHRIILFHUVFODLPHGWKDW'HIHQGDQWZDV
DVNHGWRUHHQWHUKLVDSDUWPHQW'HIHQGDQWWHVWLILHGWKDWKH
ZDV LQVWUXFWHG WR GR VR 2IILFHU &XUULQ REVHUYHG VHYHUDO
YLGHRWDSHV D SDUDEROLF DQWHQQD DQG WZR JUHHQ PHWDO
DPPXQLWLRQ ER[HV LQ 'HIHQGDQW¶V OLYLQJ URRP 2YHU
'HIHQGDQW¶V YRFDO REMHFWLRQV WKH RWKHU RIILFHUV EHJDQ
VHDUFKLQJWKHDSDUWPHQW7KH\GLVFRYHUHGULIOHVLQDZDONLQ
FORVHWDQGLQDFORVHGEDJLQWKHEHGURRPDQGDSLVWRODQG
EORZGDUWJXQLQWKHEHGURRP7KHLWHPVZHUHQRWUHPRYHG
DWWKDWWLPHEXWSXUVXDQWWRDVHDUFKZDUUDQWZKLFKLVVXHG
WZRGD\VODWHUWKHRIILFHUVVHL]HGWKHLWHPV7KHDIILGDYLWLQ
VXSSRUW RI WKH VHDUFK ZDUUDQW ZDV EDVHG VROHO\ XSRQ
NQRZOHGJHWKDWWKHRIILFHUVDFTXLUHGZKHQWKH\KDGEHHQLQ
WKHDSDUWPHQWRQWKHGD\RI'HIHQGDQW¶VDUUHVW
,QKLV0RWLRQWR6XSSUHVV'HIHQGDQWDUJXHGWKDWWKHULIOHV
JXQVDQGDPPXQLWLRQWKHRIILFHUVIRXQGGXULQJWKHDUUHVWDQG
VHDUFKRIKLVDSDUWPHQWVKRXOGEHVXSSUHVVHG7KH0RWLRQ
ZDVJUDQWHGLQLWVHQWLUHW\,QWKLVDSSHDOWKH*RYHUQPHQW
DVNVWKLV&RXUWWR³GHQ\WKHGHIHQGDQW¶VPRWLRQWRVXSSUHVV
WKH ZHDSRQ VHL]HG IURP WKH ZDLVWEDQG RI KLV SDQWV´
$SSHOODQW¶V%ULHIS+HQFHWKHQDUURZLVVXHEHIRUHWKH
&RXUWLVZKHWKHUWKHGLVWULFWFRXUWHUUHGLQVXSSUHVVLQJWKH
JXQIRXQGLQ'HIHQGDQW¶VZDLVWEDQGDWWKHWLPHRIKLVDUUHVW

-- 5 of 8 --

8QLWHG6WDWHVY6DDUL 1R
,, 'LVFXVVLRQ
$
7KH*RYHUQPHQWDUJXHVWKDWLWZDVPHUHO\DWWHPSWLQJWR
LQWHUYLHZ'HIHQGDQWLQIXUWKHUDQFHRILWVLQYHVWLJDWLRQDQG
WKDWWKHRIILFHUVDFWHGUHDVRQDEO\LQSURWHFWLQJWKHPVHOYHVE\
KDYLQJ WKHLU JXQV GUDZQ EHIRUH LQLWLDWLQJ WKH LQWHUYLHZ
)XUWKHU WKH *RYHUQPHQW FRQWHQGV WKDW WKH 'HIHQGDQW
YROXQWDULO\H[SRVHGKLPVHOIWRWKHSXEOLFE\RSHQLQJKLVGRRU
WR WKH SROLFH &RQVHTXHQWO\ WKH 3D\WRQ SURVFULSWLRQ RQ
ZDUUDQWOHVVLQKRPHDUUHVWVGRHVQRWDSSO\7KHGLVWULFWFRXUW
GLVDJUHHGKROGLQJ³7KHUHFRUGLQGLFDWHVWKDWμDVDSUDFWLFDO
PDWWHU¶GHIHQGDQWZDVXQGHUDUUHVWIURPWKHLQFHSWLRQRIKLV
HQFRXQWHUZLWKWKHRIILFHUV´6DDUL)6XSSGDW
FLWLQJ8QLWHG6WDWHVY0RUJDQ)G WK
&LU 7KLV&RXUWDJUHHV
7KH VWDQGDUG IRU GHWHUPLQLQJ ZKHWKHU DQ DUUHVW KDV
RFFXUUHGZDVSURYLGHGLQ8QLWHG6WDWHVY0HQGHQKDOO
866&W/(GG
:HFRQFOXGHWKDWDSHUVRQKDVEHHQμVHL]HG¶ZLWKLQWKH
PHDQLQJRIWKH)RXUWK$PHQGPHQWRQO\LILQYLHZRIDOO
RI WKH FLUFXPVWDQFHV VXUURXQGLQJ WKH LQFLGHQW D
UHDVRQDEOHSHUVRQZRXOGKDYHEHOLHYHGWKDWKHZDVQRW
IUHH WR OHDYH ([DPSOHV RI FLUFXPVWDQFHV WKDW PLJKW
LQGLFDWHDVHL]XUHHYHQZKHUHWKHSHUVRQGLGQRWDWWHPSW
WROHDYHZRXOGEHWKHWKUHDWHQLQJSUHVHQFHRIVHYHUDO
RIILFHUV WKH GLVSOD\ RI D ZHDSRQ E\ DQ RIILFHU VRPH
SK\VLFDOWRXFKLQJRIWKHSHUVRQRIWKHFLWL]HQRUWKHXVH
RIODQJXDJHRUWRQHRIYRLFHLQGLFDWLQJWKDWFRPSOLDQFH
ZLWKWKHRIILFHU¶VUHTXHVWPLJKWEHFRPSHOOHG
+HUHWKHRIILFHUVSRVLWLRQHGWKHPVHOYHVLQIURQWRIWKHRQO\
H[LWIURP'HIHQGDQW¶VDSDUWPHQWZLWKWKHLUJXQVGUDZQ7KH\
NQRFNHGIRUFHIXOO\RQWKHGRRUDQGDQQRXQFHGWKDWWKH\ZHUH
WKHSROLFH8SRQRSHQLQJWKHGRRU'HIHQGDQWZDVLQVWUXFWHG
WRFRPHRXWVLGHZKLFKKHGLG8QGHUWKHVHFLUFXPVWDQFHVD
UHDVRQDEOHSHUVRQZRXOGKDYHEHOLHYHGWKDWKHZDVQRWIUHHWR
OHDYH 7HOOLQJO\ 2IILFHU &OHYHODQG DFNQRZOHGJHG WKDW
1R 8QLWHG6WDWHVY6DDUL
&
,Q DGGLWLRQ WR DWWHPSWLQJ WR GLVWLQJXLVK WKLV FDVH IURP
0RUJDQ WKH *RYHUQPHQW FLWHV 8QLWHG 6WDWHV Y *RUL
)G QG&LU DVVXSSRUWIRULWVDUJXPHQWWKDWWKH
RIILFHUV ZHUH SURSHUO\ FRQGXFWLQJ D 7HUU\ VWRS ZKHQ WKH\
VXPPRQHG 'HIHQGDQW RXW RI KLV KRXVH %XW *RUL LV
LQDSSRVLWH ,Q WKDW FDVH WKH RIILFHUV LQYROYHG KDG DQ
LQIRUPDQW DUUDQJH D GUXJ WUDQVDFWLRQ IURP *RUL
6XEVHTXHQWO\ ZKHQ *RUL HPHUJHG IURP DQ DSDUWPHQW WR
GHOLYHUWKHGUXJVKHZDVDUUHVWHGDQGVHDUFKHG&RFDLQHZDV
GLVFRYHUHGGXULQJWKHVHDUFK*RULLQIRUPHGWKHRIILFHUVWKDW
VRPHRQHLQWKHDSDUWPHQWKDGJLYHQKLPWKHGUXJVDQGWKH
RIILFHUVWKHUHIRUHVHWXSVXUYHLOODQFH$IWHUWZHQW\RUWKLUW\
PLQXWHVSDVVHGZLWKQRDFWLYLW\DZRPDQHQWHUHGWRGHOLYHU
IRRGWRWKHDSDUWPHQWLQTXHVWLRQ7KHRIILFHUVGHFLGHGWKDW
WKHLU EHVW FRXUVH RI DFWLRQ ZDV WR DFFRPSDQ\ WKH GHOLYHU\
ZRPDQWRWKHDSDUWPHQWGRRU:KHQWKHGRRUZDVRSHQHGWR
UHFHLYH WKH GHOLYHU\ WKH RIILFHUV RUGHUHG WKH DSDUWPHQW¶V
RFFXSDQWVWRVWHSRXWLQWRWKHKDOOZD\$WWKHVXSSUHVVLRQ
KHDULQJDVHUJHDQWWHVWLILHGWKDWWKHRFFXSDQWVZHUHQRWIUHH
WROHDYHDWWKDWSRLQW
7KHWULDOFRXUWLQ*RULJUDQWHGWKHGHIHQGDQWV¶PRWLRQVWR
VXSSUHVVEXWWKH6HFRQG&LUFXLWUHYHUVHG,WUHDVRQHGWKDWWKH
3D\WRQ UHTXLUHPHQWV GLG QRW DSSO\ WR WKH IDFWV DW KDQG
EHFDXVHWKHDSDUWPHQWGRRUKDGEHHQYROXQWDULO\RSHQHGLQ
UHVSRQVHWRWKHGHOLYHU\SHUVRQ¶VNQRFN
$VXVSHFWLQKHURSHQGRRUZD\EHFRPHVμDVH[SRVHGWR
SXEOLF YLHZ VSHHFK KHDULQJ DQG WRXFK DV LI VKH KDG
EHHQ VWDQGLQJ FRPSOHWHO\ RXWVLGH KHU KRXVH¶ >8QLWHG
6WDWHV Y 6DQWDQD866&W
/(GG @7KLVDQDORJ\LVDGDSWDEOHWR WKH
IDFWV KHUH EHFDXVH ZKHQ WKH GHIHQGDQWV YROXQWDULO\
RSHQHGWKHGRRURI$SDUWPHQW0LQUHVSRQVHWRDNQRFN
IURPWKHGHOLYHU\SHUVRQZKRPWKH\LQYLWHGWKH\FUHDWHG
DYLVWDIURPDSXEOLFSODFHRUFRPPRQDUHD
*RUL)GDW

-- 6 of 8 --

8QLWHG6WDWHVY6DDUL 1R
GHVFULEHG LQ WKLV FDVH FDQQRW EH FKDUDFWHUL]HG DV DQ
LQYHVWLJDWLYHVWRS7KH7HUU\FRXUWDXWKRUL]HGDGHSDUWXUH
IURP WKH XVXDO ZDUUDQW SURFHGXUHV ZKHQ XQOLNH WKH
FLUFXPVWDQFHVRIWKLVFDVHWKHSROLFHDUHUHVSRQGLQJWRWKHLU
RZQRQWKHVSRWREVHUYDWLRQV
:HGRQRWUHWUHDWIURPRXUKROGLQJVWKDWWKHSROLFHPXVW
ZKHQHYHUSUDFWLFDEOHREWDLQDGYDQFHMXGLFLDODSSURYDO
RIVHDUFKHVDQGVHL]XUHVWKURXJKWKHZDUUDQWSURFHGXUH
RU WKDW LQ PRVW LQVWDQFHV IDLOXUH WR FRPSO\ ZLWK WKH
ZDUUDQW UHTXLUHPHQW FDQ RQO\ EH H[FXVHG E\ H[LJHQW
FLUFXPVWDQFHV%XWZHGHDOKHUHZLWKDQHQWLUHUXEULFRI
SROLFHFRQGXFWQHFHVVDULO\VZLIWDFWLRQSUHGLFDWHGXSRQ
WKHRQWKHVSRWREVHUYDWLRQVRIWKHRIILFHURQWKHEHDW
ZKLFKKLVWRULFDOO\KDVQRWEHHQDQGDVDSUDFWLFDOPDWWHU
FRXOGQRWEHVXEMHFWHGWRWKHZDUUDQWSURFHGXUH
7HUU\86DW6&WDW FLWDWLRQVRPLWWHG
+HUHWKHSROLFHGLGQRWREVHUYH'HIHQGDQWGRLQJDQ\WKLQJ
VXVSLFLRXV8SRQWKHLUDUULYDOWKHRIILFHUVZHUHRQO\DEOHWR
REVHUYH'HIHQGDQW¶VPRYHPHQWWKURXJKGUDZQVKDGHV
1RUZHUHWKHRIILFHUVUHVSRQGLQJWRDVZLIWO\GHYHORSLQJ
VLWXDWLRQ DV WKH *RYHUQPHQW DUJXHV 7KH *RYHUQPHQW
FRQWHQGVWKDWWKHRIILFHUVLQWKLVFDVHZHUHUHVSRQGLQJWRDQ
HPHUJHQF\ZKHUHDVWKH0RUJDQGHIHQGDQWGLGQRWUHSUHVHQW
DQ LPPHGLDWH WKUHDW WR WKH RIILFHUV RU WR WKH SXEOLF 7KLV
DUJXPHQWLVEDVHOHVV7KHWULDOFRXUWQRWHGWKDW'HIHQGDQW
ZDVSHDFHDEO\RFFXS\LQJKLVKRPHZKHQWKHRIILFHUVDUULYHG
DQG WKHUH ZDV QR SURRI WKDW DQ\RQH ZDV EHLQJ WKUHDWHQHG
LQVLGH³7KHXQVXEVWDQWLDWHGLQIRUPDWLRQDERXWH[SORVLYHVE\
DQXQLGHQWLILHGSHUVRQZDVWRRYDJXHDQGJHQHUDOWRFRQVWLWXWH
DQ LPPHGLDWH WKUHDW WR WKH VDIHW\ RI WKH RIILFHUV DQG WKH
SXEOLF´6DDUL)6XSSGDW
7KH*RYHUQPHQWKDVWKXVIDLOHGWRGLVWLQJXLVKWKLVFDVH
IURP0RUJDQ,WVKROGLQJWKDWDFRQVWUXFWLYHLQKRPHDUUHVW
ZKHUHQHLWKHUDZDUUDQWLVREWDLQHGQRUH[LJHQWFLUFXPVWDQFHV
H[LVWVYLRODWHVWKH)RXUWK$PHQGPHQWLVDSSOLFDEOHWRWKH
LQVWDQWFDVH
1R 8QLWHG6WDWHVY6DDUL
$W RUDO DUJXPHQW WKH *RYHUQPHQW GLVDJUHHG ZLWK WKH GLVWULFW FRXUW¶V
ILQGLQJ WKDW 'HIHQGDQW ZDV LQVWUXFWHG WR H[LW KLV DSDUWPHQW ,W FLWHV WR
'HIHQGDQW¶V WHVWLPRQ\ GXULQJ WKH VXSSUHVVLRQ KHDULQJ WKDW KH ZDV WROG
³6WHS RXWVLGH SOHDVH :H QHHG WR WDON :H ZRXOG OLNH WR WDON WR \RX
6WHS RXWVLGH SOHDVH´ 1RWZLWKVWDQGLQJ WKH XVH RI WKH ZRUG ³SOHDVH´ WKH
GLVWULFW FRXUW¶V ILQGLQJ WKDW WKH TXRWHG ODQJXDJH DPRXQWHG WR DQ
LQVWUXFWLRQ ZDV QRW FOHDUO\ HUURQHRXV 0RUHRYHU LQ OLJKW RI 2IILFHU¶V
&OHYHODQG¶V WHVWLPRQ\ WKDW 'HIHQGDQW ZRXOG QRW KDYH EHHQ SHUPLWWHG WR
VWD\ LQ KLV DSDUWPHQW WKHUH LV QR JHQXLQH GLVSXWH WKDW 'HIHQGDQW ZDV
RUGHUHG WR H[LW
'HIHQGDQWZRXOGQRWKDYHEHHQSHUPLWWHGWRVWD\LQVLGHRIKLV
DSDUWPHQW
%
7KLVFDVHLVLQDOOUHOHYDQWUHVSHFWVLQGLVWLQJXLVKDEOHIURP
0RUJDQVXSUD,Q0RUJDQWKHGHIHQGDQWZDVDFFXVHGRI
VKRRWLQJ LQ D SXEOLF SDUN $IWHU WKH GHIHQGDQW¶V FDU ZDV
VSRWWHGDQGIROORZHGWRKLVPRWKHU¶VKRPHVHYHUDORIILFHUV
SURFHHGHGWKHUH8SRQWKHLUDUULYDOWKHRIILFHUVVXUURXQGHG
WKH KRXVH IORRGHG LW ZLWK VSRWOLJKWV DQG VXPPRQHG WKH
GHIHQGDQWZLWKDEXOOKRUQ7KHGHIHQGDQWUHVSRQGHGWRWKH
FRHUFLYHDFWLYLW\E\DSSHDULQJDWWKHIURQWGRRUZLWKDSLVWRO
LQKLVKDQG+HFRPSOLHGZLWKWKHRIILFHUV¶GHPDQGWKDWKH
SXWKLVJXQGRZQDQGZDVIRUPDOO\DUUHVWHGXSRQOHDYLQJWKH
KRXVH
$VDMXVWLILFDWLRQIRUWKHRIILFHUV¶DFWLRQWKH*RYHUQPHQW
DUJXHGWKDWWKHRIILFHUVKDGDWOHDVW³UHDVRQDEOHVXVSLFLRQ´WR
FRQGXFW WKH W\SH RI EULHI LQYHVWLJDWRU\ VWRS DXWKRUL]HG E\
7HUU\Y2KLR866&W/(GG
$FFRUGLQJWRWKH*RYHUQPHQWRQFHWKHGHIHQGDQW
DSSHDUHG DW WKH GRRU ZLWK KLV ZHDSRQ LQ SODLQ YLHZ WKH
RIILFHUV ZHUH MXVWLILHG LQ LPPHGLDWHO\ DUUHVWLQJ KLP DQG
VHL]LQJ KLV ZHDSRQ 7KH 0RUJDQ FRXUW UHMHFWHG WKDW
DUJXPHQWKROGLQJWKDWWKHRIILFHUV¶FRQGXFWRXWVLGHRIWKH
GHIHQGDQW¶V KRPH FRXOG QRW EH FKDUDFWHUL]HG DV D EULHI
LQYHVWLJDWRU\VWRSWKHGHIHQGDQWZDV³DVDSUDFWLFDOPDWWHU´
XQGHUDUUHVWDVVRRQDVWKHRIILFHUVVXUURXQGHGWKHKRXVH
0RUJDQDW TXRWLQJ)ORULGDY5R\HU86

-- 7 of 8 --

8QLWHG6WDWHVY6DDUL 1R
6&W/(GG)G

7R GHVFULEH WKH HQFRXQWHU EHWZHHQ WKH SROLFH DQG
0RUJDQDVDμEULHILQYHVWLJDWRU\VWRS¶LJQRUHVWKHIDFWVRI
WKLVFDVH1LQHSROLFHRIILFHUVDQGVHYHUDOSDWUROFDUV
DSSURDFKHGDQGVXUURXQGHGWKH0RUJDQUHVLGHQFHLQWKH
GDUN7KHRIILFHULQFKDUJHVWUDWHJLFDOO\SRVLWLRQHGKLV
FDULQWKHGULYHZD\LQIURQWRIWKH0RUJDQKRPHEORFNLQJ
DQ\ PRYHPHQW RI KLV FDU 7KH SROLFH WKHQ FDOOHG IRU
0RUJDQWRFRPHRXWRIWKHKRXVH7KHVHFLUFXPVWDQFHV
VXUHO\DPRXQWWRDVKRZRIRIILFLDODXWKRULW\VXFKWKDWD
UHDVRQDEOHSHUVRQZRXOGKDYHEHOLHYHGKHZDVQRWIUHH
WROHDYH9LHZHGREMHFWLYHO\0RUJDQZDVSODFHGXQGHU
DUUHVWZLWKRXWWKHLVVXDQFHRIDZDUUDQWDWWKHPRPHQW
WKHSROLFHHQFLUFOHGWKH0RUJDQUHVLGHQFH
,G FLWDWLRQVDQGLQWHUQDOTXRWDWLRQPDUNVRPLWWHG
,QUHVSRQVHWRWKH*RYHUQPHQW¶VDUJXPHQWWKDWWKHRIILFHUV
GLG QRW YLRODWH 3D\WRQ EHFDXVH WKH\ QHYHU FURVVHG WKH
WKUHVKROGRIWKHGHIHQGDQW¶VKRPHWKH0RUJDQFRXUWKHOGWKDW
WKH UHOHYDQW LQTXLU\ LV WKH ORFDWLRQ RI WKH SHUVRQ EHLQJ
DUUHVWHGQRWWKHDUUHVWLQJRIILFHU,GDW³$OWKRXJK
WKHUHZDVQRGLUHFWSROLFHHQWU\LQWRWKH0RUJDQKRPHSULRU
WR0RUJDQ¶VDUUHVWWKHFRQVWUXFWLYHHQWU\DFFRPSOLVKHGWKH
VDPHWKLQJQDPHO\WKHDUUHVWRI0RUJDQ´,G
$VLQ0RUJDQWKHRIILFHUVKHUHVXPPRQHG'HIHQGDQWWR
H[LWKLVKRPHDQGDFWHGZLWKVXFKDVKRZRIDXWKRULW\WKDW
'HIHQGDQW UHDVRQDEO\ EHOLHYHG KH KDG QR FKRLFH EXW WR
1R 8QLWHG6WDWHVY6DDUL
7KLV FDVH LV WKHUHIRUH GLVWLQJXLVKDEOH IURP 86 Y 9DQHDWRQ
)G WK &LU ZKLFK WKH *RYHUQPHQW UHOLHV XSRQ ,Q
WKDW FDVH WKH XQLIRUPHG RIILFHUV KDG WKHLU JXQV LQ WKHLU KROVWHUV DQG VDLG
QRWKLQJ XSRQ NQRFNLQJ RQ WKH GHIHQGDQW¶V KRWHO URRP GRRU 7KH
GHIHQGDQW RSHQHG WKH ZLQGRZ FXUWDLQV VDZ WKH RIILFHUV DQG RSHQHG WKH
GRRU 7KHUH ZDV QR WHVWLPRQ\ LQ 9DQHDWRQ LQGLFDWLQJ WKDW WKH GHIHQGDQW
ZDV IDFHG ZLWK D VKRZ RI IRUFH PDNLQJ LW FOHDU WKDW KH KDG QR FKRLFH EXW
WR SUHVHQW KLPVHOI IRU DUUHVW
FRPSO\+LVZDUUDQWOHVVDUUHVWZDVDFFRPSOLVKHGZKLOHKH
ZDVLQKLVKRPHLQYLRODWLRQRIWKH)RXUWK$PHQGPHQW
7KH *RYHUQPHQW¶V HIIRUWV WR GLVWLQJXLVK WKLV FDVH IURP
0RUJDQDUHXQDYDLOLQJ,WFRQWHQGVWKDWWKLVFDVHLVGLIIHUHQW
IURP 0RUJDQ EHFDXVH LQ WKDW FDVH WKH RIILFHUV ZHUH
H[HFXWLQJDSODQQHGDUUHVWZKLOHWKHRIILFHUVKHUHZHUHVLPSO\
FRQGXFWLQJDQLQYHVWLJDWLYHVWRS
$VDIDFWXDOPDWWHUWKLV&RXUWHFKRVWKH0RUJDQRSLQLRQ
DQGKROGVWKHRIILFHUV¶FRQGXFWRXWVLGHRI'HIHQGDQW¶VKRPH
FRQVWLWXWHGDFRQVWUXFWLYHHQWU\DQGLQKRPHDUUHVWUDWKHUWKDQ
DQLQYHVWLJDWRU\VWRS)XUWKHUPRUHOLNHDIXOOEORZQDUUHVW
DQLQYHVWLJDWRU\GHWHQWLRQLVDVHL]XUHWKDWLVVXEMHFWWR)RXUWK
$PHQGPHQWVFUXWLQ\7HUU\86DW6&W$W
0RUJDQ DW Q 7KXV 3D\WRQ¶V KROGLQJ WKDW
ZDUUDQWOHVV VHL]XUHV RI SHUVRQV LQ WKHLU KRPHV YLRODWH WKH
)RXUWK$PHQGPHQWDEVHQWH[LJHQWFLUFXPVWDQFHVDSSOLHVWR
WKLV FDVH UHJDUGOHVV RI ZKHWKHU WKH RIILFHUV DW LVVXH ZHUH
FRQGXFWLQJDQDUUHVWRUDQLQYHVWLJDWRU\GHWHQWLRQ
$GGLWLRQDOO\LIWKH&RXUWDFFHSWHGWKH*RYHUQPHQW¶VOHJDO
DUJXPHQW LW ZRXOG KDYH WKH HIIHFW RI SURYLGLQJ OHVVHU
SURWHFWLRQWRLQGLYLGXDOVLQWKHLUKRPHVZKHQWKHSROLFHGR
QRWKDYHSUREDEOHFDXVHWRDUUHVW,WZRXOGGHI\UHDVRQWR
KROGDVWKH*RYHUQPHQWVXJJHVWVWKDWDZDUUDQWOHVVLQKRPH
VHL]XUHLVDXWKRUL]HGWRIXUWKHUDQLQYHVWLJDWLRQEXWWKDWHLWKHU
D ZDUUDQW RU H[LJHQW FLUFXPVWDQFHV DUH QHFHVVDU\ ZKHQ
RIILFHUVKDYHWKHSUREDEOHFDXVHDQGLQWHQWWRDUUHVW
)XUWKHUPRUH FRQWUDU\ WR WKH *RYHUQPHQW¶V DUJXPHQW
VXPPRQLQJDSHUVRQRXWRIKLVRUKHUKRPHLQWKHPDQQHU

-- 8 of 8 --