The AI workspace for legal professionals
- Legal research with access to more than 1 million sources
- Document automation
- Matter management
- Hosted in the EU and Switzerland
Try it free for 14 days (10 questions/day during trial)
The AI workspace for legal professionals
Try it free for 14 days (10 questions/day during trial)
00-6136•02a0084p.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
3$8/ *5(*25< +286(
3HWLWLRQHU$SSHOODQW
Y
5,&.< %(//:DUGHQ
5HVSRQGHQW$SSHOOHH
;!
1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH(DVWHUQ'LVWULFWRI7HQQHVVHHDW.QR[YLOOH
1R²-DPHV+-DUYLV'LVWULFW-XGJH
$UJXHG2FWREHU
'HFLGHGDQG)LOHG0DUFK
%HIRUH0(55,771255,6DQG6,/(5&LUFXLW-XGJHV
BBBBBBBBBBBBBBBBB
&2816(/
$5*8('6WHSKHQ0.LVVLQJHU)('(5$/'()(1'(5
6(59,&(6.QR[YLOOH7HQQHVVHHIRU$SSHOODQW*OHQQ5
3UXGHQ 2)),&( 2) 7+( $77251(< *(1(5$/
&5,0,1$/-867,&(',9,6,211DVKYLOOH7HQQHVVHHIRU
$SSHOOHH21%5,()6WHSKHQ0.LVVLQJHU)('(5$/
'()(1'(5 6(59,&(6 .QR[YLOOH 7HQQHVVHH IRU
$SSHOODQW*OHQQ53UXGHQ$OLFH%/XVWUH2)),&(2)
7+( $77251(< *(1(5$/ &5,0,1$/ -867,&(
-- 1 of 18 --
+RXVHY%HOO 1R
',9,6,211DVKYLOOH7HQQHVVHH0LFKDHO(0RRUH3DXO*
6XPPHUV 7(11(66(( $77251(< *(1(5$/¶6
2)),&( &,9,/ /,7,*$7,21 67$7( 6(59,&(6
',9,6,211DVKYLOOH7HQQHVVHHIRU$SSHOOHH
1255,6-GHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQZKLFK
6,/(5 - MRLQHG 0(55,77 - SS GHOLYHUHG D
VHSDUDWHGLVVHQWLQJRSLQLRQ
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
$/$1(1255,6&LUFXLW-XGJH3HWLWLRQHU3DXO+RXVH
DSSHDOVIURPWKHGLVWULFWFRXUW¶VGHQLDORIDZULWRIKDEHDV
FRUSXV86&$7HQQHVVHHMXU\IRXQGSHWLWLRQHU
JXLOW\ RI WKH PXUGHU RI D QHLJKERU &DURO\Q 0XQFH\ DQG
VHQWHQFHGKLPWRGHDWK
7KLV FRXUW JUDQWHG D FHUWLILFDWH RI DSSHDODELOLW\ DV WR DOO
LVVXHV +RZHYHU SHWLWLRQHU KDV OLPLWHG KLV EULHI WR D
GLVFXVVLRQRIWKHIROORZLQJ :KHWKHUWKHPDQQHULQZKLFK
WKH7HQQHVVHHFRXUWVDSSOLHGWKHGRFWULQHRIZDLYHUGXULQJ
SHWLWLRQHU¶V SRVWFRQYLFWLRQ SURFHHGLQJV FRQVWLWXWHV DQ
DGHTXDWH DQG LQGHSHQGHQW VWDWH SURFHGXUDO EDU WR KLV
LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLP :KHWKHUSHWLWLRQHU
HVWDEOLVKHGKLVDFWXDOLQQRFHQFH
)RUWKHUHDVRQVWKDWIROORZZHDIILUPWKHGHQLDORIWKHZULW
,
7KLVFRXUWUHYLHZVDGLVWULFWFRXUW¶VOHJDOFRQFOXVLRQVLQD
KDEHDVSURFHHGLQJGHQRYRDQGLWVIDFWXDOILQGLQJVIRUFOHDU
HUURU6HH/XFDVY2 'HD)G WK&LU
3HWLWLRQHULQLWLDWHGWKLVKDEHDVDFWLRQRQ6HSWHPEHU
WKH SHWLWLRQ ZDV DPHQGHG RQ 6HSWHPEHU
&RQVHTXHQWO\WKLVFRXUW¶VUHYLHZRIWKHVWDWHFRXUW¶VGHFLVLRQ
LVJRYHUQHGE\WKHVWDQGDUGVVHWIRUWKLQWKH$QWLWHUURULVPDQG
(IIHFWLYH'HDWK3HQDOW\$FWRI3XE/1R
-- 2 of 18 --
1R +RXVHY%HOO
6WDW $('3$ 6HH/LQGKY0XUSK\
86 +DUSVWHUY2KLR)G
WK&LU
%HFDXVHIDFWXDOGHWHUPLQDWLRQVE\VWDWHFRXUWVDUHHQWLWOHG
WRDSUHVXPSWLRQRIFRUUHFWQHVV86& H ZH
ZLOOEHJLQE\TXRWLQJIURPWKH7HQQHVVHH6XSUHPH&RXUW¶V
RSLQLRQGHQ\LQJSHWLWLRQHUUHOLHILQKLVGLUHFWDSSHDO
7KHYLFWLPRIWKHKRPLFLGHZDV0UV&DURO\Q0XQFH\
ZKROLYHGZLWKKHUKXVEDQGDQGWZR\RXQJFKLOGUHQRQ
5LGJHFUHVW5RDGLQUXUDO8QLRQ&RXQW\7HQQHVVHH0UV
0XQFH\ZDVLQKHUODWHWZHQWLHVDQGKHUFKLOGUHQZHUH
DERXWHLJKWDQGWHQ\HDUVROGDWWKHWLPHRIKHUGHDWKRQ
-XO\
,Q 0DUFK DSSHOODQW 3DXO *UHJRU\ +RXVH ZDV
UHOHDVHG IURP SULVRQ LQ 8WDK DQG PRYHG WR WKH UXUDO
FRPPXQLW\LQZKLFKWKH0XQFH\IDPLO\OLYHG7KHUHKH
UHVLGHG ZLWK KLV PRWKHU DQG VWHSIDWKHU IRU VHYHUDO
ZHHNVEXWLQ-XQHKHPRYHGLQWRDWUDLOHURFFXSLHGE\
KLVJLUOIULHQG'RQQD7XUQHUZKLFKZDVORFDWHGDERXW
WZRPLOHVIURPWKH0XQFH\KRPH$SSHOODQWGLGQRW
RZQDQDXWRPRELOHEXWKHZDVSHUPLWWHGWRGULYHKLV
PRWKHU VFDUIURPWLPHWRWLPHDQGKHDOVRGURYH0V
7XUQHU VFDURQVRPHRFFDVLRQV
2WKHU WKDQ GRLQJ RFFDVLRQDO IDUP ZRUN IRU KLV
VWHSIDWKHU DSSHOODQW GRHV QRW DSSHDU WR KDYH EHHQ
UHJXODUO\HPSOR\HG+HGLGQRWWHVWLI\DWWULDODWHLWKHU
WKHJXLOWSKDVHRUWKHVHQWHQFLQJKHDULQJ+HZDVVKRZQ
WRKDYHKDGRQHSULRUFRQYLFWLRQIRUDJJUDYDWHGVH[XDO
DVVDXOWDFKDUJHWRZKLFKKHSOHGJXLOW\RQ0DUFK
LQ 6DOW /DNH &RXQW\ 8WDK $SSDUHQWO\ KH ZDV
SODFHG RQ SDUROH LQ WKDW VWDWH DQG VXSHUYLVLRQ RI KLV
SDUROHZDVWUDQVIHUUHGWR7HQQHVVHHZKHQKHUHWXUQHGWR
WKLVVWDWH+HZDVDSSUR[LPDWHO\WZHQW\WKUHH\HDUVROG
DWWKHWLPHRIWKHKRPLFLGHLQWKLVFDVH
0UV0XQFH\GLVDSSHDUHGIURPKHUKRPHLQWKHODWH
HYHQLQJRI6DWXUGD\-XO\+HUEDGO\EHDWHQ
-- 3 of 18 --
+RXVHY%HOO 1R
ERG\ZDVIRXQGRQWKHIROORZLQJDIWHUQRRQDWDERXW
SPO\LQJSDUWLDOO\FRQFHDOHGLQDEUXVKSLOHDERXW
\DUGVIURPKHUKRPH
$SSDUHQWO\WKHKXVEDQGRIWKHYLFWLPZDVQRWDWKRPH
GXULQJ WKH HDUO\ SDUW RI WKH HYHQLQJ RI -XO\ 0UV
0XQFH\DQGKHUFKLOGUHQYLVLWHGDQHLJKERUDQGOHIWDW
DERXWSPWRUHWXUQWRWKHLUKRPH/DWHUWKHROGHU
FKLOG/DXUDDZRNH6KHWHVWLILHGWKDWVKHKHDUGDYRLFH
ZKLFKVRXQGHGOLNHKHUJUDQGIDWKHUPDNLQJLQTXLU\DERXW
KHUIDWKHU6KHDOVRKHDUGVRPHRQHWHOOKHUPRWKHUWKDW
KHUIDWKHUKDGEHHQLQDZUHFNQHDUWKHFUHHN6KHKHDUG
KHUPRWKHUVREELQJRUFU\LQJDVVKHOHIWWKHKRXVH:KHQ
KHUPRWKHUGLGQRWUHWXUQWKHWZRFKLOGUHQZHQWWRORRN
IRU KHU DW QHLJKERULQJ KRPHV 1RW ILQGLQJ KHU WKH\
UHWXUQHG KRPH DQG ZDLWHG XQWLO WKHLU IDWKHU DUULYHG
'LVFRYHULQJ WKDW KLV ZLIH ZDV PLVVLQJ KH WRRN WKH
FKLOGUHQEDFNWRWKHKRPHRIWKHQHLJKERUZKHUHWKH\KDG
YLVLWHGHDUOLHULQWKHHYHQLQJDQGWKHQFDOOHGIRUPHPEHUV
RIKLVIDPLO\WRORRNIRUKLVZLIH
:KHQWKHERG\RI0UV0XQFH\ZDVGLVFRYHUHGWKH
QH[W DIWHUQRRQ VKH ZDV GUHVVHG LQ KHU QLJKWJRZQ
KRXVHFRDW DQG XQGHUFORWKLQJ +HU ERG\ ZDV EDGO\
EUXLVHGDQGWKHUHZHUHDEUDVLRQVDQGEORRGJLYLQJHYHU\
HYLGHQFH WKDW VKH KDG EHHQ LQ D ILHUFH VWUXJJOH
$SSDUHQWO\DVHYHUHEORZWRKHUOHIWIRUHKHDGKDGFDXVHG
KHUGHDWK,WDSSHDUHGKRZHYHUWKDWVKHKDGDOVREHHQ
SDUWLDOO\VWUDQJOHG$SDWKRORJLVWWHVWLILHGWKDWWKHEORZ
WRKHUOHIWIRUHKHDGFDXVHGDFRQFXVVLRQDQGKHPRUUKDJH
WR WKH ULJKW VLGH RI WKH EUDLQ IURP ZKLFK VKH GLHG
SUREDEO\RQHWRWZRKRXUVDIWHUEHLQJVWUXFN+HWHVWLILHG
WKDW VKH SUREDEO\ ZRXOG KDYH EHHQ XQFRQVFLRXV DIWHU
KDYLQJEHHQVWUXFN+HHVWLPDWHGWKHWLPHRIKHUGHDWK
DWEHWZHHQSPWRSPRQ6DWXUGD\-XO\EXW
HPSKDVL]HGWKDWWKLVZDVDWEHVWDURXJKHVWLPDWH
$SSHOODQWQHYHUFRQIHVVHGWRDQ\SDUWLQWKHKRPLFLGH
DQGWKHWHVWLPRQ\OLQNLQJKLPWRLWZDVFLUFXPVWDQWLDO
7KHUHZDVHYLGHQFHVKRZLQJWKDWKHNQHZ0UDQG0UV
1R +RXVHY%HOO
SHUIRUPLQJ KLV WHVWV 7KH SKRWRJUDSK RI WKH VW\URIRDP
FRQWDLQHUFOHDUO\VKRZVWKDWEORRGVSLOOHGLQWKHFRQWDLQHU
7KHWDSHRQWKHFRQWDLQHUZDVP\VWHULRXVO\FXWDQGUHWDSHG
FRQWUDU\WRVWDQGDUGSURFHGXUH7KHODEHORQWKHFRQWDLQHU
VDLGLWFRQWDLQHGWKHVHPHQDQGWKHEORRGHYLGHQFHEXWWKH
VHPHQHYLGHQFHZDVVKLSSHGVHSDUDWHO\$OVRWKHORFDWLRQRI
WKHEORRGRQWKHMHDQVLVRGG7KHILYHVSRWVZHUHIRXQGRQ
WKHRXWVLGHOHIWOHJRQWKHLQVLGHOHIWWKLJKRQWKHLQVLGHULJKW
SRFNHW RXWVLGH WKH ULJKW SRFNHW DQG RQ WKH ULJKW FXII
UHVSHFWLYHO\
7KHWHVWLPRQ\RI3DXOLQH6XWWRQDOVRUDLVHVTXHVWLRQVDVWR
ZKHWKHUWKHMHDQVZHUHWDPSHUHGZLWK6KHQRWHGWKDWVRPH
RI WKH EORRG VWDLQV ZHUH PL[HG ZLWK PXG 7KH 1DWLRQDO
:HDWKHU6HUYLFHUHFRUGVVKRZWKDWLWKDGQRWUDLQHGIRUWKUHH
GD\VSULRUWRWKHPXUGHUDQGSKRWRJUDSKVRIWKHFULPHVFHQH
VKRZHGQRPXGSUHVHQW/DVWO\WKHUHZDVQRPXGRQWKH
YLFWLP¶V QLJKWJRZQ $OO RI WKLV HYLGHQFH UDLVHV VHULRXV
TXHVWLRQVDVWRKRZWKHPXGJRWRQWKHMHDQV7KHGLVWULFW
FRXUWUHOLHVRQ7%,$JHQW&KDUOHV6FRWW¶VWHVWLPRQ\WKDWWKH
MHDQVKDG³UHGGLVKEURZQ´VWDLQVZKHQKHWRRNWKHPIURPWKH
FORWKHV KDPSHU 0U 6FRWW KRZHYHU DGPLWWHGO\ GLG QRW
WKRURXJKO\ H[DPLQH WKH MHDQV %HFDXVH KH FRXOG KDYH
WDPSHUHGZLWKWKHMHDQVDQGEHFDXVHWKHIRUHQVLFHYLGHQFH
GRHVQRWVXSSRUWKLVWHVWLPRQ\DQHZWULDOLVZDUUDQWHGLQ
OLJKWRIDOOWKHSUREOHPVLQWKLVGHDWKFDVH
,Q VXP , EHOLHYH WKH QHZ HYLGHQFH RI WKH VHPHQ WKH
FRQIHVVLRQV DQG WKH HQ]\PDWLF GHJUDGDWLRQ PDNH LW PRUH
OLNHO\WKDQQRWWKDWDUHDVRQDEOHGRXEWZRXOGEHUDLVHGLQWKH
PLQGRIDQ\UHDVRQDEOHMXURU$FFRUGLQJO\,ZRXOGJUDQWWKH
ZULWRIKDEHDVFRUSXV
-- 4 of 18 --
+RXVHY%HOO 1R
HQ]\PHVFDPHIURPWKHVDPHVDPSOHWKDWLVWKHEORRGRQWKH
GHIHQGDQW¶V MHDQV FDPH IURP WKH VDPSOH WDNHQ IURP WKH
YLFWLPQRWWKHYLFWLPKHUVHOI
,QKLVUHSRUW'U&OHODQG%ODNH$VVLVWDQW&KLHI0HGLFDO
([DPLQHUIRUWKH6WDWHUHDFKHGWKHFRQFOXVLRQWKDWWKHEORRG
RQ +RXVH¶V MHDQV FDPH IURP WKH VDPSOHV WDNHQ IURP WKH
YLFWLP¶V ERG\ SUHVXPDEO\ EDVHG RQ WKHRU\ RI HQ]PDWLF
GHJUDGDWLRQH[SODLQHGDERYH+HGLGQRWKRZHYHUH[SODLQ
KRZKHUHDFKHGKLVFRQFOXVLRQVLQKLVUHSRUW5HFRJQL]LQJ
WKH VLJQLILFDQFH RI %ODNH¶V FRQFOXVLRQ WR WKH TXHVWLRQ RI
+RXVH¶V LQQRFHQFH WKH GLVWULFW FRXUW LQTXLUHG DERXW WKH
HQ]\PDWLFGHJUDGDWLRQRIWKHEORRGVWDLQVEXWGLGQRWUHFHLYH
DVDWLVIDFWRU\H[SODQDWLRQIURP'U%ODNH%HFDXVH'U%ODNH
QHJOHFWHGWRH[SODLQLQOD\PDQ¶VWHUPVWKHPHWKRGE\ZKLFK
KH UHDFKHG KLV FRQFOXVLRQ WKH GLVWULFW FRXUW UHOLHG RQ WKH
WHVWLPRQ\RI$JHQW%LJEHHZKRRSLQHGWKDW%ODNH¶VWKHRU\
ZDVLQFRUUHFW,EHOLHYHWKDWRQWKHVXUIDFH%ODNH¶VILQGLQJV
DUHFRPSHOOLQJDQGUHTXLUHIXUWKHUH[SORUDWLRQ%HFDXVHRI
WKHSDUDPRXQWVLJQLILFDQFHRIWKHVHILQGLQJVWRWKHTXHVWLRQ
RI +RXVH¶V LQQRFHQFH DQ LQGHSHQGHQW DQDO\VLV E\ D EORRG
H[SHUWRI%ODNH¶VWKHRU\RIHQ]\PDWLFGHJUDGDWLRQLVQHHGHG
WRGHWHUPLQHZKHWKHUWKHEORRGRQ+RXVH¶VMHDQVFDPHIURP
WKH YLFWLP KHUVHOI RU IURP D IRUHQVLF EORRG VDPSOH ,Q
DGGLWLRQ,ZRXOGWRWKHH[WHQWSRVVLEOHKDYHWKHXQWHVWHG
ILQJHUQDLO VFUDSLQJV RI WKH YLFWLP H[DPLQHG WR GHWHUPLQH
ZKHWKHUWKHUHLVDQ\'1$HYLGHQFH
6WDQGLQJ DORQH RQH PLJKW DUJXH WKDW WKH VLPLODULW\ LQ
HQ]\PDWLFDFWLYLW\ZDVPHUHO\FRLQFLGHQWDO+RZHYHUWKHUH
LVDGGLWLRQDOHYLGHQFHVXJJHVWLQJWKDWWKHVDPSOHLQWKHYLDOV
RIEORRGPD\KDYHEHHQWDPSHUHGZLWK$V'U%ODNHQRWHG
WKHUHZDVQRXQEURNHQFKDLQRIFXVWRG\/DUU\-RKQVRQDQ
H[SHUWLQFULPHVFHQHLQYHVWLJDWLRQVLPLODUO\VWDWHGWKDW³WKH
SDFNDJLQJ RI WKH PDWHULDOV LQ WKH FDVH GLG QRW PHHW
SURIHVVLRQDOVWDQGDUGV´
)XUWKHUPRUHWKHUHLVEORRGPLVVLQJIURPWKHVDPSOHWDNHQ
±RQHRIWKHIRXUYLDOVLVHPSW\DQGDQRWKHULVRQO\KDOIIXOO
± EXW $JHQW %LJEHH XVHG RQO\ RQHIRXUWK RI D YLDO LQ
1R +RXVHY%HOO
0XQFH\ DQG KDG EHHQ ZLWK WKHP VRFLDOO\ RQ D IHZ
RFFDVLRQV7KURXJKGHIHQVHSURRIWKHUHZDVWHVWLPRQ\
WKDW 0UV 0XQFH\ DQG KHU KXVEDQG KDG EHHQ KDYLQJ
PDULWDOGLIILFXOWLHVDQGWKDWVKHKDGEHHQFRQWHPSODWLQJ
OHDYLQJKLP7KHUHZDVQRHYLGHQFHWRLQGLFDWHWKDWWKH
DSSHOODQWZDVDZDUHRIWKDWVLWXDWLRQKRZHYHURUWKDW
WKHUH KDG EHHQ DQ\ SUHYLRXV URPDQWLF RU VH[XDO
UHODWLRQVKLSEHWZHHQKLPDQGWKHYLFWLP
2Q WKH DIWHUQRRQ RI 6XQGD\ -XO\ WZR
ZLWQHVVHVVDZWKHDSSHOODQWHPHUJHIURPDFUHHNEDQNDW
WKH VLGH RI 5LGJHFUHVW 5RDG DW WKH VLWH ZKHUH 0UV
0XQFH\ V ERG\ ZDV ODWHU IRXQG FRQFHDOHG LQ WKH
XQGHUEUXVK+HZDVZLSLQJKLVKDQGVZLWKDGDUNFORWK
DQGZDVZDONLQJWRZDUGDZKLWH3O\PRXWKDXWRPRELOH
SDUNHGRQWKHRSSRVLWHVLGHRIWKHURDGEHORQJLQJWRKLV
JLUO IULHQG 'RQQD 7XUQHU 7KH WZR ZLWQHVVHV VSRNH
EULHIO\WRDSSHOODQWDOORIWKHPGLVFXVVLQJWKHIDFWWKDW
0UV0XQFH\KDGGLVDSSHDUHG/DWHUWKHWZRZLWQHVVHV
EHFDPH VXVSLFLRXV RI ZKDW WKH\ KDG REVHUYHG DQG
UHWXUQHG WR WKH SRLQW ZKHUH WKH\ KDG VHHQ DSSHOODQW
HPHUJHIURPWKHHPEDQNPHQW/RRNLQJGRZQWKHEDQN
WKH\IRXQGWKHSDUWLDOO\FRQFHDOHGERG\RI0UV0XQFH\
7KH\SURPSWO\QRWLILHGWKHVKHULII
$SSHOODQWODWHUDGPLWWHGWKDWKHKDGEHHQLQWKHDUHD
EXWGHQLHGWKDWKHKDGVHHQWKHERG\RI0UV0XQFH\RU
KDGDQ\NQRZOHGJHRILWVSUHVHQFH7KHGDUNUDJZKLFK
KHKDGEHHQXVLQJZKHQILUVWVHHQZDVQHYHUSURGXFHG
,WZDVWKHWKHRU\RIWKH6WDWHKRZHYHUWKDWWKLVZDVD
GDUNWDQNWRSRUMHUVH\ZKLFKDSSHOODQWZDVVKRZQWR
KDYHEHHQZHDULQJRQWKHSUHYLRXVHYHQLQJ-XO\
$SSHOODQWJDYHWZRVWDWHPHQWVWRLQYHVWLJDWLQJRIILFHUV
LQZKLFKKHGHQLHGEHLQJLQYROYHGLQWKHKRPLFLGH,Q
ERWKRIWKHVHVWDWHPHQWVKHVWDWHGWKDWKHKDGEHHQDW0V
7XUQHU VWUDLOHUWKHHQWLUHHYHQLQJRI-XO\DQGWKDWKH
KDGQRWOHIWXQWLOWKHQH[WDIWHUQRRQZKHQKHZHQWWRORRN
IRU+XEHUW0XQFH\DIWHUOHDUQLQJRIWKHGLVDSSHDUDQFHRI
WKHODWWHU VZLIH
-- 5 of 18 --
+RXVHY%HOO 1R
2Q6XQGD\DIWHUQRRQYDULRXVZLWQHVVHVREVHUYHGWKDW
DSSHOODQW KDG QXPHURXV VFUDWFKHV DQG EUXLVHV RQ KLV
DUPV KDQGV DQG ERG\ WKHUH EHLQJ DQ HVSHFLDOO\
VLJQLILFDQWEUXLVHRQWKHNQXFNOHRIKLVULJKWULQJILQJHU
$SSHOODQW H[SODLQHG WKDW WKHVH LQMXULHV KDG EHHQ
VXVWDLQHGLQQRFHQWO\HDUOLHUGXULQJWKHZHHNEXWZKHQ
0V7XUQHUZDVFDOOHGDVDZLWQHVVVKHVDLGWKDWVKHKDG
QRW REVHUYHG WKHP SULRU WR WKH HYHQLQJ RI -XO\
$SSHOODQWDOVRWROGLQYHVWLJDWRUVWKDWKHZDVZHDULQJWKH
VDPHFORWKHVRQ6XQGD\-XO\DVKHKDGEHHQZHDULQJ
WKHSUHYLRXVHYHQLQJ,WZDVODWHUGLVFRYHUHGKRZHYHU
WKDWDSDLURIEOXHMHDQVZKLFKKHKDGEHHQZHDULQJRQ
WKHQLJKWRIWKHPXUGHUZDVFRQFHDOHGLQWKHERWWRPRI
WKHFORWKHVKDPSHUDW0V7XUQHU VWUDLOHU7KHVHWURXVHUV
ZHUHEORRGVWDLQHGDQGVFLHQWLILFHYLGHQFHUHYHDOHGWKDW
WKH VWDLQV ZHUH KXPDQ EORRG KDYLQJ FKDUDFWHULVWLFV
FRQVLVWHQW ZLWK WKH EORRG RI 0UV 0XQFH\ DQG
LQFRQVLVWHQWZLWKDSSHOODQW VRZQEORRG6FLHQWLILFWHVWV
DOVR VKRZHG WKDW ILEHUV IURP WKHVH WURXVHUV ZHUH
FRQVLVWHQWZLWKILEHUVIRXQGRQWKHFORWKLQJRIWKHYLFWLP
7KHUH ZHUH DOVR IRXQG RQ KHU QLJKWJRZQ DQG
XQGHUFORWKLQJ VRPH VSRWV RI VHPHQ VWDLQ IURP D PDOH
VHFUHWRURIWKHVDPHJHQHUDOW\SHDVDSSHOODQW
6RPHRIWKHPRVWGDPDJLQJHYLGHQFHDJDLQVWDSSHOODQW
ZDVJLYHQE\KLVJLUOIULHQG0V7XUQHU6KHDWILUVWWROG
LQYHVWLJDWRUVWKDWKHKDGQRWOHIWWKHWUDLOHUGXULQJWKH
FRXUVHRIWKHHYHQLQJRI-XO\/DWHUKRZHYHUVKH
PRGLILHGWKLVWHVWLPRQ\WRVWDWHWKDWKHKDGEHHQLQWKH
WUDLOHUXQWLODERXWSPDWZKLFKWLPHKHOHIWWRWDNH
DZDON6KHVWDWHGWKDWKHGLGQRWWDNHKHUDXWRPRELOH
:KHQKHUHWXUQHGDQKRXURUVRODWHUKHZDVSDQWLQJKRW
DQGH[KDXVWHG+HZDVQRORQJHUZHDULQJHLWKHUKLVEOXH
MHUVH\RUKLVWHQQLVVKRHV7KHVKRHVZHUHODWHUIRXQGLQ
DQDUHDGLIIHUHQWIURPWKHSODFHZKHUHDSSHOODQWWROGKHU
KHKDGORVWWKHP
$SSHOODQWWROG0V7XUQHUWKDWKHKDGWKURZQDZD\WKH
QDY\EOXHWDQNWRSEHFDXVHLWKDGEHHQWRUQZKHQKHZDV
DVVDXOWHGE\VRPHSHUVRQVZKRWULHGWRNLOOKLP,WZDV
1R +RXVHY%HOO
GHFLGHWKLVTXHVWLRQRULQGXOJHLQDSUHVXPSWLRQWKDWVKHKDV
DQLQIDOOLEOHPHPRU\RIHYHQWVWKDWKDSSHQHGLQWKHPLGGOHRI
WKH QLJKW ZKHQ VKH ZDV WHQ \HDUV ROG $V D UHVXOW RI WKH
XQGHUO\LQJIDFWV,ILQGWKDWWKHGLVWULFWFRXUWFRPPLWWHGFOHDU
HUURU E\ GLVFRXQWLQJ WKH FUHGLELOLW\ RI WZR LQGHSHQGHQW
XQELDVHGLQGLYLGXDOVZLWKRXWDQ\UDWLRQDOHRWKHUWKDQWKHWLPH
EHWZHHQWKHFRQIHVVLRQDQGWKHWHVWLPRQ\EHIRUHWKHGLVWULFW
FRXUW7KHVWDWHWULDOFRXUWVKRXOGZHLJKWKLVHYLGHQFHDWD
QHZWLPH
7KH%ORRG(YLGHQFH&UHDWHVD6HULRXV'RXEW
7KLUGDQDO\VLVRIWKHEORRGRQ+RXVH¶VMHDQVUDLVHVVHULRXV
GRXEWVDVWRZKHWKHUWKHEORRGFDPHGLUHFWO\IURPWKHYLFWLP
RUVSLOOHGRQWKHMHDQVIURPYLDOVRIEORRGRIWKHYLFWLPVHQW
ZLWKWKHMHDQVWRWKHODE$JHQW%LJEHHWHVWHGWKHEORRGIURP
0V0XQFH\¶V ERG\DQGWKHEORRGIRXQGRQ3DXO+RXVH¶V
MHDQV7KHUHZDVDFOHDUPDWFKUHYHDOLQJWKDWWKHEORRGRQ
KLVMHDQVEHORQJHGWRWKHYLFWLP$FORVHUH[DPLQDWLRQRIWKH
IRUHQVLFHYLGHQFHKRZHYHUVXJJHVWVWKDWWKHEORRGRQWKH
MHDQVPD\KDYHFRPHIURPWKHIRUHQVLFVDPSOHWDNHQIURP
0V0XQFH\¶VERG\QRWIURPKHUERG\DVVKHZDVPXUGHUHG
7KHPRVWVLJQLILFDQWSLHFHRIIRUHQVLFHYLGHQFHVXJJHVWLQJ
WKLV FRQFOXVLRQ LV WKH FRQVLVWHQF\ LQ HQ]\PH GHJUDGDWLRQ
EHWZHHQWKHVDPSOHIURP0V0XQFH\¶VERG\DQGWKHILYH
VDPSOHVIURPWKHMHDQV(Q]\PHVDUHSURWHLQVZKLFKKDYHD
FRPSOH[PROHFXODUVWUXFWXUH7KHLUIUDJLOHVWUXFWXUHLVRQO\
PDLQWDLQHGE\WKHSURSHUHQYLURQPHQWSURYLGHGLQWKHKXPDQ
ERG\2YHUWLPHHQ]\PHVGHJUDGHWKDWLVWKH\ORVHWKHLU
VWUXFWXUH DQG VKDSH DQG EHFRPH LQDFWLYH 7KH EORRG WHVWV
SHUIRUPHGE\$JHQW%LJEHHRQWKHYLFWLP¶VEORRGDQGWKHILYH
VDPSOHVIURPWKHGHIHQGDQW¶VMHDQVORRNHGIRUWKHSUHVHQFHRI
YDULRXVHQ]\PHV WRVHHZKHWKHUWKH\KDGGHQDWXUHGRUQRW LQ
WKH EORRG 2I WKH WHQ HQ]\PHV WHVWHG VL[ KDG FRQFOXVLYH
UHVXOWV$OOVL[HQ]\PHVPDWFKHG7KXVLWLVUHDVRQDEOHWR
LQIHUWKDWWKHHQ]\PHVLQWKHEORRGRQWKHMHDQVGHJUDGHGDW
WKH VDPH UDWH DV WKH EORRG LQ WKH VDPSOH WDNHQ IURP WKH
YLFWLP¶V ERG\ %HFDXVH WKH\ GHJUDGHG DW WKH VDPH UDWH
GHVSLWH EHLQJ LQ WZR GLIIHUHQW PHGLD LW DSSHDUV WKDW WKH
-- 6 of 18 --
+RXVHY%HOO 1R
WKDWKHWKHKXVEDQGFRPPLWWHGWKHFULPH%RWK.DWK\
3DUNHU DQG 3HQQ\ /HWQHU SURYLGHG FRQVLVWHQW DFFRXQWV RI
0XQFH\¶VDGPLVVLRQRIJXLOW7KHUHZDVQRHYLGHQFHLQWKH
UHFRUGWKDWFKDOOHQJHGWKHUHOLDELOLW\RIWKHVHVWDWHPHQWVRU
VXJJHVWHGDQ\ELDVRUPRWLYHIRUHLWKHUWREHXQWUXWKIXO$OVR
WKH FRQIHVVLRQV DUH VXSSRUWHG E\ WKH ZHOO GRFXPHQWHG
GRPHVWLFDEXVHRIWKHYLFWLPE\0XQFH\DQGKLVDFWLRQVWKH
IROORZLQJPRUQLQJZKHQKHDVNHGDQHLJKERU$UWLH/DZVRQ
WROLHIRUKLPDQGSURYLGHDQDOLELE\WHVWLI\LQJWKDWKHZDVDW
WKHGDQFHIRUWKHHQWLUHHYHQLQJ
7KH GLVWULFW FRXUW KRZHYHU GLVFRXQWHG WKH FRQIHVVLRQV
EHFDXVHERWKZLWQHVVHVKDGZDLWHGRYHUWHQ\HDUVWRFRPH
IRUZDUG ,Q DGGLWLRQ WKH GLVWULFW FRXUW IRXQG WKDW WKH
WHVWLPRQ\RI/DUD0XQFH\7KDUSFRQWUDGLFWHGWKHWHVWLPRQ\
RI/HWQHUDQG3DUNHUEHFDXVH7KDUSGLGQRWKHDUDQ\VWUXJJOH
DQGQRQHRIWKHIXUQLWXUHZDVRXWRISODFHLQWKHKRXVH7KLV
LQWHUSUHWDWLRQLVHUURQHRXVEHFDXVHQHLWKHU/HWQHURU3DUNHU
DVVHUWHGWKDW0XQFH\¶VSXUSRUWHGILJKWZLWKKLVZLIHRFFXUUHG
LQVLGHWKHKRXVH7KH\ERWKWHVWLILHGWKDWKHZHQWKRPHIURP
WKHGDQFHDQGJRWLQWRWKH ILJKWZLWKKLVZLIHEXWGLGQRW
GHVFULEHZKHUHWKHILJKWRFFXUUHG0XQFH\FRXOGKDYHDVNHG
KLVZLIHWRFRPHRXWVLGHRIWKHKRXVHLQRUGHUWRQRWGLVWXUE
WKHLU FKLOGUHQ 7KDUS¶V WHVWLPRQ\ WKDW KHU IDWKHU ZDV QRW
DEXVLYHWRZDUGKHUPRWKHUGHVSLWHWKHFRPPRQNQRZOHGJH
LQ WKH FRPPXQLW\ WKDW KH SK\VLFDOO\ DEXVHG KHU IXUWKHU
VXSSRUWVWKHLGHDWKDW0XQFH\PLJKWDVNKLVZLIHWROHDYHWKH
KRXVHLQRUGHUWRH[SUHVVKLVGLVSOHDVXUHZLWKKHU
,QDGGLWLRQZKLOH7KDUSPD\DSSHDUDVDFUHGLEOHZLWQHVV
QRZWKDWVKHLVLQKHUWZHQWLHV7KDUSZDVRQO\WHQ\HDUVROG
DW WKH WLPH RI WKH LQFLGHQW UDLVLQJ D TXHVWLRQ DV WR KRZ
DFFXUDWHRUVSHFLILFKHUPHPRU\PD\EH)RULQVWDQFHDWWKH
LQLWLDOWULDO7KDUSGHVFULEHGDFDUDUULYLQJDWWKHKRXVHSULRU
WR KHU KHDULQJ WKH ORZ YRLFH WKDW WROG KHU PRWKHU WKDW KHU
IDWKHU KDG EHHQ LQ D ZUHFN $W WKH GLVWULFW FRXUW KHDULQJ
KRZHYHU7KDUSGHQLHGKHDULQJDFDUWKDWQLJKW,WVKRXOGEH
IRUDVWDWHWULDOMXU\WRZHLJKWKHFUHGLELOLW\RIDGDXJKWHURID
SRWHQWLDOVXVSHFWZLWKERWKHPRWLRQDODQGSHUVRQDOLQFHQWLYH
WRSURWHFWKHUIDWKHU,WLVQRWIRUXVRUWKH'LVWULFW&RXUWWR
1R +RXVHY%HOO
$IWHU UHWXUQLQJ IURP KLV ZDON DSSHOODQW VXJJHVWHG PDUULDJH WR
0V 7XUQHU IRU WKH ILUVW WLPH LQ WKHLU UHODWLRQVKLS ,W ZDV DW OHDVW DUJXDEOH
WKDW KH WKRXJKW E\ WKLV PHDQV KHU WHVWLPRQ\ FRXOG EH UHQGHUHG
LQDGPLVVLEOH E\ WKH KXVEDQGZLIH SULYLOHJH
DIWHUWKHDSSHOODQW VUHWXUQWRWKHWUDLOHUWKDW0V7XUQHU
ILUVW QRWLFHG WKH EUXLVHV DQG DEUDVLRQV RQ KLV KDQGV
UHIHUUHGWRSUHYLRXVO\
$SSHOODQW VPRWKHUWHVWLILHGWKDWKHKDGQRWXVHGKHU
DXWRPRELOH RQ 6DWXUGD\ HYHQLQJ 6KH WHVWLILHG WKDW
GXULQJ6DWXUGD\DQG6XQGD\VKHKDGEHHQSODQQLQJWR
VHSDUDWH IURP DSSHOODQW V VWHSIDWKHU DQG WKDW DSSHOODQW
KDGEHHQDVVLVWLQJKHULQKHUSUHSDUDWLRQVIRUPRYLQJ
$WWKHVHQWHQFLQJKHDULQJWKH6WDWHSURYHGDSSHOODQW V
SULRU FRQYLFWLRQ IRU DJJUDYDWHG VH[XDO DVVDXOW
$SSHOODQW VSDUHQWVWHVWLILHGWKDWKHFDPHIURPDEURNHQ
KRPHDQGKDGEHHQVXEMHFWHGWRVWUHVVDVDUHVXOWRIWKDW
H[SHULHQFH$SSHOODQW VPRWKHUDOVRWHVWLILHGWKDWLQWKH
LQWHUYDOEHWZHHQWKHJXLOWWULDODQGWKHVHQWHQFLQJKHDULQJ
DSSHOODQWKDGDWWHPSWHGVXLFLGH6KHUHDGLQWRHYLGHQFH
D OHWWHU ZKLFK KH KDG ZULWWHQ WR KHU GHQ\LQJ KLV
LQYROYHPHQWLQWKHKRPLFLGH$SSDUHQWO\KHKDGFXWKLV
ZULVWVZKLOHLQWKHMDLODZDLWLQJWKHVHQWHQFLQJKHDULQJ
EXWWKHGHJUHHDQGH[WHQWRIWKHLQMXULHVZHUHQRWGHWDLOHG
LQHYLGHQFH7KH\GRQRWDSSHDUWRKDYHEHHQVHULRXV
DQGGLGQRWSUHYHQWKLVDWWHQGLQJWKHVHQWHQFLQJKHDULQJ
$OWKRXJK WKH HYLGHQFH DJDLQVW DSSHOODQW ZDV
FLUFXPVWDQWLDO LW ZDV TXLWH VWURQJ 3DUWLFXODUO\
LQFULPLQDWLQJ ZDV WKH WHVWLPRQ\ WKDW KH KDG HPHUJHG
IURPDQHPEDQNPHQWZKHUHWKHERG\ZDVIRXQGZLSLQJ
KLVKDQGVRQDGDUNFORWKZLWKRXWGLVFORVLQJWRDQ\RQH
WKH SUHVHQFH RI WKH ERG\ 'DPDJLQJ DOVR ZHUH WKH
GLVFRYHU\RIKLVEORRGVWDLQHGWURXVHUVDQGWKHWHVWLPRQ\
RI0V7XUQHU ZKLFK DWULHURIIDFWFRXOGKDYHIRXQG
VXIILFLHQWWRGHPROLVKKLVDOLELDQGWRGHPRQVWUDWHWKDWKH
KDG EHHQ LQ D KHDY\ VWUXJJOH QHDU WKH WLPH ZKHQ WKH
KRPLFLGH PXVW KDYH RFFXUUHG $ FODVVLF FDVH IRU
-- 7 of 18 --
+RXVHY%HOO 1R
GHWHUPLQDWLRQE\DMXU\ZDVSUHVHQWHGDQGWKHHYLGHQFH
FOHDUO\LVVXIILFLHQWWRVXSSRUWWKHFRQYLFWLRQ
)ROORZLQJWKHVHQWHQFLQJKHDULQJWKHMXU\LPSRVHGWKH
GHDWKSHQDOW\,QWKHLUYHUGLFWWKH\IRXQGWKDWWKH6WDWH
KDGHVWDEOLVKHGWKUHHDJJUDYDWLQJFLUFXPVWDQFHVWKHVH
EHLQJ DSSHOODQWKDGSUHYLRXVO\EHHQFRQYLFWHGRID
IHORQ\ LQYROYLQJ WKH XVH RU WKUHDW RI YLROHQFH WR WKH
SHUVRQ WKH KRPLFLGH ZDV HVSHFLDOO\ KHLQRXV
DWURFLRXV RU FUXHO DQG LW ZDV FRPPLWWHG ZKLOH
DSSHOODQW ZDV FRPPLWWLQJ RU DWWHPSWLQJ WR FRPPLW RU
IOHHLQJ IURP WKH FRPPLVVLRQ RI UDSH RU NLGQDSSLQJ
7&$ L DQG
7KHUH ZDV DPSOH HYLGHQFH WR VXSSRUW DOO RI WKHVH
ILQGLQJVDQGWRVXSSRUWWKHFRQFOXVLRQRIWKHMXU\WKDWQR
PLWLJDWLQJ FLUFXPVWDQFHV KDG EHHQ HVWDEOLVKHG ZKLFK
ZRXOG RXWZHLJK WKH DJJUDYDWLQJ FLUFXPVWDQFHV
&HUWDLQO\WKHVHQWHQFHRIGHDWKZDVQRWGLVSURSRUWLRQDWH
WRWKDWLPSRVHGLQRWKHUFDVHVLQYLHZRIWKHYLROHQWDQG
EUXWDOQDWXUHRIWKHKRPLFLGHVKRZQLQWKLVUHFRUG
6WDWH Y +RXVH 6:G 7HQQ
IRRWQRWHRULJLQDO
$IWHU SHWLWLRQHU¶V FRQYLFWLRQ DQG VHQWHQFH ZDV KDQGHG
GRZQ LQ )HEUXDU\ KH WRRN D GLUHFW DSSHDO WR WKH
7HQQHVVHH6XSUHPH&RXUW7KH7HQQHVVHH6XSUHPH&RXUW
DIILUPHGLQWKHRSLQLRQMXVWFLWHG3HWLWLRQHUIDLOHGWRVHHND
ZULWRIFHUWLRUDULLQDWLPHO\PDQQHU
3RVWFRQYLFWLRQSURFHHGLQJVEHJDQLQ)HEUXDU\ZLWK
WKHILOLQJRIDSURVHSHWLWLRQIRUSRVWFRQYLFWLRQUHOLHILQWKH
WULDO FRXUW 7KLV SHWLWLRQ DPHQGHG DIWHU DSSRLQWPHQW RI
FRXQVHOZDVGHQLHGE\WKHWULDOFRXUWRQ1RYHPEHU
$OWKRXJKFODLPVRILQHIIHFWLYHDVVLVWDQFHRIWULDOFRXQVHOZHUH
VXEPLWWHGWRWKHFRXUWWKH\ZHUHQRWDUJXHGQRUZDVWULDO
FRXQVHOFDOOHGDVDZLWQHVVDWWKHKHDULQJ2QO\DVLQJOHLVVXH
ZDV WDNHQ WR WKH 7HQQHVVHH &RXUW RI &ULPLQDO $SSHDOV
ZKHWKHU D MXU\ LQVWUXFWLRQ LPSURSHUO\ PLVOHG MXURUV LQWR
EHOLHYLQJ WKDW WKH\ PXVW XQDQLPRXVO\ ILQG PLWLJDWLQJ
1R +RXVHY%HOO
VXEMHFWLQJWKHODG\WRVRPHNLQGRILQGLJQLW\ZK\ZRXOG
\RXJHWDODG\RXWRIKHUKRXVHODWHDWQLJKWLQKHUQLJKW
FORWKHVXQGHUWKHWULFNWKDWKHUKXVEDQGKDVKDGDZUHFN
GRZQE\WKHFUHHN":K\LVLWWKDW\RXZDQWWRJHWKHU
GRZQE\WKHFUHHN">,@WLVHLWKHUWRNHHSKHUIURP
WHOOLQJZKDW\RXKDYHGRQHWRKHURULWLVWKDW\RXDUH
WU\LQJWRJHWKHUWRGRVRPHWKLQJWKDWVKHQRUDQ\PRWKHU
RQWKDWURDGZRXOGZDQWWRGRZLWK0U+RXVHDQG
\RXNLOOKHUEHFDXVHRIKHUUHVLVWDQFH
7U 7UDQV 9RO ,; S %HFDXVH WKH RQO\ PRWLYH
SUHVHQWHGE\WKH6WDWHDWWULDOZDVEDVHGRQ HYLGHQFHQRZ
FRPSOHWHO\GLVFUHGLWHG,ZRXOGLVVXHWKHZULWUHTXLULQJDQHZ
WULDO 7KLV QHZ HYLGHQFH REYLRXVO\ DOVR PDQGDWHV D QHZ
VHQWHQFLQJKHDULQJEHFDXVHUDSHZDVWKHXQGHUO\LQJEDVLVIRU
RQH RI WKH WKUHH DJJUDYDWLQJ IDFWRUV SUHVHQWHG DW WULDO
&RXSOHG ZLWK WKH SULRU FRQYLFWLRQ IRU VH[XDO DVVDXOW WKH
6WDWH¶V DVVHUWLRQ WKDW WKH MXU\ LQIHU UDSH DGGHG D OHYHO RI
HJUHJLRXVQHVV WR WKH FULPH WKDW ZRXOG QRW RWKHUZLVH KDYH
EHHQSUHVHQWDQGDVDUHVXOWZDVSDUWLFXODUO\SUHMXGLFLDOWRWKH
MXU\¶V GHWHUPLQDWLRQ RI DJJUDYDWLQJ DQG PLWLJDWLQJ
FLUFXPVWDQFHVDWWKHVHQWHQFLQJSKDVH
%RWK WKH PDMRULW\ KHUH DQG WKH ORZHU FRXUW DVVHUW WKDW
EHFDXVHWKHDJJUDYDWLQJFLUFXPVWDQFHDWLVVXHLVUDSHDQGRU
NLGQDSSLQJ GLVSURYLQJ WKH UDSH LV QRW HQRXJK WR FUHDWH
UHYHUVLEOH HUURU ,W LV FOHDU KRZHYHU EDVHG RQ WKH
LQIRUPDWLRQEHIRUHWKHMXU\WKDWUDSHQRWNLGQDSSLQJZDVWKH
DFWLRQUHVXOWLQJLQWKHILQGLQJRIDQDJJUDYDWLQJFLUFXPVWDQFH
%HFDXVHWKHQHZHYLGHQFHFRQWUDGLFWVWKHMXU\¶VLQIHUHQFHWKDW
+RXVHUDSHGWKHYLFWLP,ILQGWKDWWKLVHUURULVRQHWKDWPLJKW
UHDVRQDEO\EHWKRXJKWWRKDYHKDG³VXEVWDQWLDODQGLQMXULRXV
HIIHFW RU LQIOXHQFH´ RQ ERWK WKH MXU\ YHUGLFW DQG GHDWK
VHQWHQFH .RWWHDNRV Y 8QLWHG 6WDWHV 86
7KH+XVEDQG¶V&RQIHVVLRQ7HQGVWR'LVSURYH
WKH&ULPH
6HFRQG , DP WURXEOHG E\ WKH FXUVRU\ WUHDWPHQW RI WZR
LQGHSHQGHQW DFFRXQWVRIWKHFRQIHVVLRQRI+XEHUW0XQFH\
-- 8 of 18 --
+RXVHY%HOO 1R
BBBBBBBBBBBBBBB
',66(17
BBBBBBBBBBBBBBB
0(55,77&LUFXLW-XGJHGLVVHQWLQJ,GLVVHQWIURPWKH
PDMRULW\ RSLQLRQ DIILUPLQJ WKH GHQLDO RI 3HWLWLRQHU 3DXO
+RXVH¶VSHWLWLRQIRUKDEHDVFRUSXVXQGHU86&
$VZLWKPDQ\RWKHU7HQQHVVHHGHDWKSHQDOW\FDVHVWKLVFDVH
KDGVHYHUDOHUURUVLQWKHWULDOSKDVHZKLFKQHFHVVLWDWHDQHZ
WULDO,KDYHDVHULRXVTXHVWLRQDERXWZKHWKHU+RXVHLVJXLOW\
RIWKHFULPHIRUZKLFKKHZDVFRQYLFWHG
7KH 1HZ 6HPHQ (YLGHQFH 'LVSURYHV 5DSH DV WKH
0RWLYH
)LUVWWKHQHZHYLGHQFHSHUWDLQLQJWRWKHVHPHQIRXQGRQ
WKHYLFWLP¶VXQGHUZHDUDQGQLJKWJRZQXQGHUPLQHVWKH6WDWH¶V
SURIIHUHG PRWLYH RI UDSH DW WULDO DQG WKXV UDLVHV D VHULRXV
TXHVWLRQDVWRZKHWKHUDMXU\ZRXOGKDYHIRXQG0U+RXVH
JXLOW\ DQG ZRXOG KDYH XVHG WKH LQIHUHQFH RI UDSH DV DQ
DJJUDYDWLQJIDFWRULQVHQWHQFLQJKLPWRGHDWK$WWKHGLVWULFW
FRXUW KDEHDV KHDULQJ +RXVH RIIHUHG XQGLVSXWHG WHVWLPRQ\
IURP'1$H[SHUW/LVD&DODQGURWKDWHOLPLQDWHG+RXVHDVD
SRWHQWLDOGRQRURIWKHVHPHQ0V&DODQGURFRQFOXGHGWKDW
WKHYLFWLP¶VKXVEDQGZDVWKHGRQRURIWKHVHPHQ,QDGGLWLRQ
WKHUH LV QR RWKHU SK\VLFDO HYLGHQFH VXSSRUWLQJ UDSH RU
DWWHPSWHG UDSH RI WKH YLFWLP 7KHUH ZDV QR HYLGHQFH RI
SHQHWUDWLRQWKHYLFWLP¶VFORWKLQJZDVQRWULSSHGRUUHPRYHG
DQG WKHUH ZHUH QR EUXLVHV RQ WKH YLFWLP LQGLFDWLQJ DQ
DWWHPSWHGUDSH7KH6WDWHVHHPVQRZWRFRQFHGHWKHVHIDFWV
<HWDWWULDOWKH6WDWHDUJXHGLQLWVFORVLQJUHEXWWDOWKDWWKH
3HWLWLRQHU¶VPRWLYHLQKLVSXUSRUWHGNLOOLQJRIWKHYLFWLPZDV
UDSHEDVHGRQWKHLQIHUHQFHWKDWWKHVHPHQRQWKHYLFWLP¶V
FORWKLQJ ZDV KLV 7KH 6WDWH SUHVHQWHG WKH IROORZLQJ
DUJXPHQW
1RZ\RXPD\KDYHDQLGHDZK\KHGLGLW7KHHYLGHQFH
DW WKH VFHQH ZKLFK VHHPHG WR VXJJHVW WKDW KH ZDV
1R +RXVHY%HOO
FLUFXPVWDQFHV7KH&RXUWRI&ULPLQDO$SSHDOVDIILUPHGWKH
FRQYLFWLRQRQ'HFHPEHU7KH7HQQHVVHH6XSUHPH
&RXUWGHQLHGOHDYHWRDSSHDODQGWKH8QLWHG6WDWHV6XSUHPH
&RXUWGHQLHGFHUWLRUDUL
$VHFRQGSHWLWLRQIRUSRVWFRQYLFWLRQUHOLHIZDVILOHGRQ
'HFHPEHU$IWHUFRQGXFWLQJKHDULQJVWKHWULDOFRXUW
GHQLHGUHOLHIRQWKHJURXQGXUJHGE\WKH6WDWHWKDWDOOWKH
LVVXHVSUHVHQWHGKDGHLWKHUEHHQSUHYLRXVO\GHWHUPLQHGLQWKH
ILUVWSHWLWLRQRULIQRWKDGEHHQZDLYHG
7KH&RXUWRI&ULPLQDO$SSHDOVDIILUPHGWKHWULDOFRXUWRQ
6HSWHPEHU+RZHYHUWKH7HQQHVVHH6XSUHPH&RXUW
UHPDQGHGIRUUHFRQVLGHUDWLRQLQOLJKWRIDUHFHQWRSLQLRQWKDW
WKH&RXUWODWHUZLWKGUHZ7KH&RXUW RI&ULPLQDO$SSHDOV
UHPDQGHGWKHPDWWHUWRWKHWULDOFRXUWIRUIXUWKHUFRQVLGHUDWLRQ
RIWKHZDLYHULVVXH7KLVUHPDQGZDVDYHUWHGKRZHYHUZKHQ
WKH 7HQQHVVHH 6XSUHPH &RXUW UHLQVWDWHG WKH WULDO FRXUW¶V
LQLWLDO GLVPLVVDO RI WKH VHFRQG SHWLWLRQ IRU SRVWFRQYLFWLRQ
UHOLHI+RXVHY6WDWH6:G 7HQQ
&ULWLFDO IRU WKLV KDEHDV DFWLRQ LV WKH &RXUW¶V KROGLQJ
FRQFHUQLQJZDLYHU
:HFRQFOXGHWKDWDIXOODQGIDLUKHDULQJVXIILFLHQWWR
VXSSRUWDILQGLQJRISUHYLRXVGHWHUPLQDWLRQRFFXUVLID
SHWLWLRQHULVJLYHQWKHRSSRUWXQLW\WRSUHVHQWSURRIDQG
DUJXPHQWRQWKHSHWLWLRQIRUSRVWFRQYLFWLRQUHOLHI:H
IXUWKHU FRQFOXGH WKDW WKH UHEXWWDEOH SUHVXPSWLRQ RI
ZDLYHU LV QRW RYHUFRPH E\ DQ DOOHJDWLRQ WKDW WKH
SHWLWLRQHUGLGQRWSHUVRQDOO\DQGWKHUHIRUHNQRZLQJO\
DQGXQGHUVWDQGLQJO\ZDLYHDJURXQGIRUUHOLHI,QVWHDG
ZDLYHULVWREHGHWHUPLQHGE\DQREMHFWLYHVWDQGDUGXQGHU
ZKLFKDSHWLWLRQHULVERXQGE\WKHDFWLRQRULQDFWLRQRI
KLVDWWRUQH\)LQDOO\ZHFRQFOXGHWKDWWKHUHLVQRULJKW
WR HIIHFWLYH DVVLVWDQFH RI FRXQVHO LQ SRVWFRQYLFWLRQ
SURFHHGLQJVDQGWKHUHIRUHDQDOOHJDWLRQRILQHIIHFWLYH
DVVLVWDQFH RI SULRU SRVWFRQYLFWLRQ FRXQVHO GRHV QRW
SUHFOXGH DSSOLFDWLRQ RI WKH GHIHQVHV RI ZDLYHU DQG
SUHYLRXVGHWHUPLQDWLRQ
-- 9 of 18 --
+RXVHY%HOO 1R
,GDW%HFDXVHRILWVKROGLQJWKH&RXUWUHLQVWDWHGWKH
WULDOFRXUW¶VRULJLQDOGHQLDORIUHOLHI
3HWLWLRQHUILOHGDSURVHKDEHDVSHWLWLRQRQ6HSWHPEHU
ZKLFKZDVHYHQWXDOO\DPHQGHGDIWHUWKHGLVWULFWFRXUW
JUDQWHGLQIRUPDSDXSHULVVWDWXVDQGDSSRLQWHGFRXQVHO7KH
GLVWULFW FRXUW JUDQWHG WKH 6WDWH¶V PRWLRQ IRU VXPPDU\
MXGJPHQWRQWKHPDMRULW\RIFODLPVLQDQRUGHUHQWHUHG-XQH
,WFRQGXFWHGDQHYLGHQWLDU\KHDULQJRQSHWLWLRQHU¶V
DFWXDOLQQRFHQFHFODLPLQ)HEUXDU\$IWHUFRQVLGHULQJ
SRVWKHDULQJEULHIVRIFRXQVHOWKHGLVWULFWFRXUWGHQLHGKDEHDV
UHOLHI,WDOVRGHQLHGDFHUWLILFDWHRIDSSHDODELOLW\ZKLFKZDV
ODWHUVXSHUVHGHGE\WKLVFRXUW¶VJUDQWRIDFHUWLILFDWHDVWRDOO
LVVXHV
,,
7KHILUVWLVVXHUDLVHGE\SHWLWLRQHURQDSSHDOLQYROYHVKLV
FRQWHQWLRQ WKDW ERWK WKH 7HQQHVVHH FRXUWV DQG WKH GLVWULFW
FRXUW HUUHG ZKHQ WKH\ FRQFOXGHG WKDW KLV LQHIIHFWLYH
DVVLVWDQFHRIFRXQVHOFODLPVZHUHSURFHGXUDOO\EDUUHG
,QLWLDOO\ WKH GLVWULFW FRXUW GHIHUUHG JUDQWLQJ VXPPDU\
MXGJPHQWWRWKH6WDWHRQWKHFODLPVRILQHIIHFWLYHDVVLVWDQFH
RI FRXQVHO EHFDXVH ³WKHVH FODLPV DUH LQWHUWZLQHG ZLWK
SHWLWLRQHU¶V FODLP RI DFWXDO LQQRFHQFH´ 0HPRUDQGXP
2SLQLRQ -XQH DW ,W ZHQW RQ WR SURYLGH WKH
IROORZLQJUDWLRQDOH
>7@KH FRXUW ZLOO EH XQDEOH WR GHWHUPLQH ZKHWKHU WKH
FODLPV VKRXOG EH EDUUHG RQ WKH JURXQG RI SURFHGXUDO
GHIDXOWXQWLOWKHFRQFOXVLRQRIWKHHYLGHQWLDU\KHDULQJ
%RXVOH\Y8QLWHG6WDWHV6&W
³:KHUHDGHIHQGDQWKDVSURFHGXUDOO\GHIDXOWHGDFODLP
E\IDLOLQJWRUDLVHLWRQGLUHFWUHYLHZWKHFODLPPD\EH
UDLVHG LQ KDEHDV RQO\ LI WKH GHIHQGDQW FDQ ILUVW
GHPRQVWUDWHHLWKHUμFDXVH¶DQGDFWXDOμSUHMXGLFH¶RUWKDW
KHLVμDFWXDOO\LQQRFHQW¶´$FFRUGLQJO\LQDGGLWLRQWR
SHWLWLRQHU¶V FODLP RI DFWXDO LQQRFHQFH WKH FRXUW ZLOO
FRQVLGHU>WKHLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPV@
1R +RXVHY%HOO
:LWK UHVSHFW WR SHWLWLRQHU¶V WKHRU\ WKDW 0U 0XQFH\
FRPPLWWHGWKHPXUGHUZHGHIHUWRWKHILQGLQJRIWKHGLVWULFW
FRXUWWKDW0V/HWQHUDQG0V3DUNHUZKRDOOHJHGO\KHDUG
0U0XQFH\¶VFRQIHVVLRQZHUHQRWFUHGLEOH)XUWKHUPRUH
WKH FRQWHQW RI 0V /HWQHU¶V WHVWLPRQ\ ± WKDW 0U 0XQFH\
NLOOHGKLVZLIHGXULQJDQDUJXPHQWLQWKHLUWUDLOHU±LVEHOLHG
E\WKHSUHVHQFHRIWKHFKLOGUHQLQWKHWUDLOHUZKRKHDUGQR
VXFKFRQIURQWDWLRQDQGWKHODFNRIDQ\VLJQVRIDVWUXJJOH
3HWLWLRQHU KDV VXFFHHGHG LQ VKRZLQJ WKDW WKH VHPHQ
DWWULEXWHGWRKLPGXULQJWKHWULDOZDVWKDWRI0U0XQFH\DQG
WKDWDWVRPHSRLQWWKHEORRGHYLGHQFHDSSHDUVWRKDYHEHHQ
PLVKDQGOHG+RZHYHUWKHGLVWULFWFRXUWFRQFOXGHGWKDW³WKH
VSLOODJHRFFXUUHGDIWHUWKH)%,FULPHODERUDWRU\UHFHLYHGDQG
WHVWHGWKHHYLGHQFH´DIDFWXDOFRQFOXVLRQWKDWLVQRWFOHDUO\
HUURQHRXV
'HVSLWHKLVEHVWHIIRUWVWKHFDVHDJDLQVWSHWLWLRQHUUHPDLQV
RYHUZKHOPLQJ:HWKHUHIRUHFRQFOXGHWKDWKHKDVIDOOHQVKRUW
RIVKRZLQJDVKHPXVWWKDWLWLVPRUHOLNHO\WKDQQRWWKDWQR
UHDVRQDEOHMXURUZRXOGKDYHFRQYLFWHGKLPLQOLJKWRIQHZ
HYLGHQFH
,9
7KHMXGJPHQWRIWKHGLVWULFWFRXUWLVDIILUPHG
-- 10 of 18 --
+RXVHY%HOO 1R
$FFRUGLQJWR0V7KDUSKHUSDUHQWVJRWDORQJILQH
7KH\DUJXHGEXWVKHGLGQRWUHFDOODQ\SK\VLFDOSXVKLQJ
RUKLWWLQJ,IWKH\DUJXHGVKHFRXOGKHDUWKHPLIVKHZDV
LQKHUEHGURRP7KHIDPLO\GLGQRWKDYHDLUFRQGLWLRQLQJ
LQWKHKRPH6KHGLGQRWKHDUDQ\DUJXPHQWVWKDWQLJKW
7KHFRXUWIRXQG0V7KDUSDYHU\FUHGLEOHZLWQHVV
6KH KDG QR UHDVRQ WR OLH +HU WHVWLPRQ\ GXULQJ WKH
HYLGHQWLDU\ KHDULQJ ZDV FRQVLVWHQW ZLWK KHU WULDO
WHVWLPRQ\
0HPRUDQGXP2SLQLRQ)HEUXDU\DW
$V WKH SUHFHGLQJ UHFLWDWLRQ PDNHV FOHDU SHWLWLRQHU KDV
PRXQWHG D FRQFHUWHG DWWDFN RQ KLV FRQYLFWLRQ 7R SUHYDLO
KRZHYHU KH PXVW GR PRUH WKDQ UDLVH TXHVWLRQV DERXW WKH
UHOLDELOLW\ RI SRUWLRQV RI WULDO WHVWLPRQ\ RU WKH PDQQHU LQ
ZKLFKSK\VLFDOHYLGHQFHZDVKDQGOHGRUDQDO\]HGKHPXVW
VKRZ³WKDWLWLVPRUHOLNHO\WKDQQRWWKDWQRUHDVRQDEOHMXURU
ZRXOGKDYHFRQYLFWHGKLPLQWKHOLJKWRIWKHQHZHYLGHQFH´
6FKOXS 86 DW 0RUHRYHU LQ ZHLJKLQJ WKH QHZ
HYLGHQFHZHUHYLHZWKHIDFWXDOILQGLQJVRIWKHGLVWULFWFRXUW
IRUFOHDUHUURU&DPSEHOOY&R\OH)G WK
&LU
7KHIROORZLQJIDFWVWKDWLPSOLFDWHSHWLWLRQHUDUHXQGLVSXWHG
KHOLHGWRLQYHVWLJDWRUVDERXWKLVZKHUHDERXWVRQWKHQLJKWRI
WKHPXUGHUKHJDYHLQFRQVLVWHQWYHUVLRQVRIWKHRULJLQVRIWKH
VFUDWFKHVDQGEUXLVHVRQKLVKDQGVDQGDUPVKHZDVVHHQQHDU
ZKHUHWKHERG\ZDVGLVFRYHUHGRQWKHGD\DIWHUWKHPXUGHU
KHOLHGDERXWZKDWKHZDVZHDULQJRQWKHQLJKWRIWKHPXUGHU
EORRGDQGPXGVSODWWHUHGEOXHMHDQVEHORQJLQJWRSHWLWLRQHU
ZHUHIRXQGDWWKHERWWRPRI0V7XUQHU¶VODXQGU\KDPSHU
SHWLWLRQHUKDVDGHHSYRLFHDQG/DUD0XQFH\WHVWLILHGWKDWWKH
PDQZKRFDPHWRWKHWUDLOHURQWKHQLJKWRIWKHPXUGHUKDGD
GHHSYRLFHDQGDFFRUGLQJWR'U6XWWRQWKHEORRGDQGPXG
IRXQG RQ SHWLWLRQHU¶V EOXH MHDQV KDG EHHQ PL[HG WRJHWKHU
ZKLFK³FHUWDLQO\HOLPLQDWHVWKHSRVVLELOLW\RIDQ\VWDLQVEHLQJ
FUHDWHGE\FRQWDPLQDWLRQLQDQHYLGHQFHFRQWDLQHU´
1R +RXVHY%HOO
,G DW +RZHYHU DIWHU FRQGXFWLQJ DQ HYLGHQWLDU\
KHDULQJDQGGHWHUPLQLQJWKDWSHWLWLRQHUKDGIDLOHGWRHVWDEOLVK
DFWXDO LQQRFHQFH WKH GLVWULFW FRXUW KHOG WKDW SHWLWLRQHU¶V
LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPVZHUH³EDUUHGRQWKH
JURXQG RI SURFHGXUDO GHIDXOW´ 0HPRUDQGXP 2SLQLRQ
)HEUXDU\DW
3HWLWLRQHUFRQFHGHVWKDWDQDGHTXDWHDQGLQGHSHQGHQWVWDWH
ODZJURXQGFDQSURFHGXUDOO\EDUVXEVHTXHQWKDEHDVFODLPV
7KLVFLUFXLWKDVGHYHORSHGDIRXUSDUWDQDO\VLVWRGHWHUPLQH
ZKHWKHUDFODLPLVEDUUHG
8QGHU0DXSLQY6PLWK)G WK&LU
WKLVFLUFXLWXWLOL]HVWKHIROORZLQJIRXUSDUWDQDO\VLV
ZKHQ WKH VWDWH DUJXHV WKDW D IHGHUDO KDEHDV FODLP KDV
EHHQSURFHGXUDOO\GHIDXOWHGLQVWDWHFRXUW ZKHWKHU
WKHUH LV D SURFHGXUDO UXOH WKDW LV DSSOLFDEOH WR WKH
SHWLWLRQHU V FODLP DQG ZKHWKHU WKH SHWLWLRQHU IDLOHG WR
IROORZ WKLV UXOH ZKHWKHU WKH VWDWH FRXUWV DFWXDOO\
HQIRUFHGWKHVWDWHSURFHGXUDOUXOH ZKHWKHUWKHVWDWH
SURFHGXUDO UXOH LV DQ DGHTXDWH DQG LQGHSHQGHQW VWDWH
JURXQGWRIRUHFORVHIHGHUDOUHOLHIDQGLIVR ZKHWKHU
WKH SHWLWLRQHU KDV HVWDEOLVKHG FDXVH IRU KLV IDLOXUH WR
IROORZWKHUXOHDQGSUHMXGLFHE\WKHDOOHJHGFRQVWLWXWLRQDO
HUURU
:KLWHY6FKRWWHQ)G WK&LU
3HWLWLRQHUSRLQWVWRWKHWRUWXUHGSDWKWKDWKLVFDVHWRRNLQ
WKHFRXUWVRI7HQQHVVHHDQGDUJXHVWKDWQRKDUGDQGIDVWUXOH
H[LVWHGWRSURFHGXUDOO\EDUKLVSURVHLQHIIHFWLYHDVVLVWDQFHRI
FRXQVHO FODLPV 6SHFLILFDOO\ KH SRLQWV WR WKH IROORZLQJ
SDUDJUDSKRIWKHRSLQLRQRIWKH7HQQHVVHH6XSUHPH&RXUW
2XUUHVHDUFKKDVUHYHDOHGQRUHSRUWHG7HQQHVVHHFDVH
GHDOLQJ GLUHFWO\ ZLWK WKH LVVXH RI WKH DSSURSULDWH
VWDQGDUGWRDSSO\ZKHQGHWHUPLQLQJZKHWKHUDQLVVXH
KDV EHHQ ZDLYHG &RXUWV LQ RWKHU VWDWHV KDYH VSOLW RQ
ZKHWKHUWRDSSO\DVXEMHFWLYHRUREMHFWLYHVWDQGDUGDQG
SURYLGHXVOLWWOHDVVLVWDQFHEHFDXVHWKHLUGHFLVLRQVZHUH
EDVHGODUJHO\RQWKHSDUWLFXODUVWDWHVWDWXWRU\SURFHGXUH
-- 11 of 18 --
+RXVHY%HOO 1R
+RZHYHU 7HQQHVVHH FDVHV GHDOLQJ JHQHUDOO\ ZLWK WKH
FRQFHSWRIZDLYHULQWKHSRVWFRQYLFWLRQFRQWH[WDSSO\DQ
REMHFWLYHVWDQGDUGDQGLPSXWHWKHFRQGXFWRIFRXQVHOWR
WKHLUFOLHQWV6HHHJ&DUXWKHUVY6WDWH6:G
7HQQ&ULP$SS 6WDWHY%LVKRS6:G
7HQQ&ULP$SS
+RXVH 6:G DW HPSKDVLV DGGHG IRRWQRWHV
RPLWWHG ,QSHWLWLRQHU¶VYLHZWKLVRSLQLRQLOOXVWUDWHVWKDWQR
UXOHKDGEHHQFOHDUO\HVWDEOLVKHG
:HGRQRWZULWHRQDFOHDQVODWHZLWKUHVSHFWWRWKLVLVVXH
6HH&RQHY%HOO)G WK&LU VHHDOVR&RH
Y%HOO)G WK&LU ,Q&RQHWKLVFRXUW
PDGHFOHDUWKDWWKH+RXVHRSLQLRQUHOLHGXSRQE\SHWLWLRQHU
PHUHO\H[SODLQHGH[LVWLQJVWDWHODZ3HWLWLRQHULQWKDWFDVH
FRQWHQGHGWKDWKHKDGQRWSHUVRQDOO\ZDLYHGDFKDOOHQJHWRD
MXU\LQVWUXFWLRQ,QUHMHFWLQJKLVFODLPZHH[SODLQHG
)LUVWZHDUHDZDUHRIWZRFDVHVLQZKLFKFRXUWVKDYH
FRQVLGHUHGZKHWKHUDSHWLWLRQHULVERXQGE\KLVDWWRUQH\ V
ZDLYHURIDFRQVWLWXWLRQDOFODLP&RH)GDQG
+RXVHY6WDWH6:G 7HQQ 7KH+RXVH
FRXUWVWDWHGWKDW>Z@DLYHULQWKHSRVWFRQYLFWLRQFRQWH[W
LVWREHGHWHUPLQHGE\DQREMHFWLYHVWDQGDUGXQGHUZKLFK
D SHWLWLRQHU LV ERXQG E\ WKH DFWLRQ RU LQDFWLRQ RI KLV
DWWRUQH\+RXVH6:GDW+RXVHGRHVQRW
DSSHDUWRDQQRXQFHDQHZVWDQGDUGDV&RQHVXJJHVWV
5DWKHULWVHHPVPHUHO\WRDIILUP7HQQHVVHH VVWDQGDUGRI
ZDLYHU
,Q&RHDVZHH[SODLQHGHDUOLHUWKLVFRXUWKHOGWKDWWKH
SHWLWLRQHUKDGSURFHGXUDOO\GHIDXOWHGKLVVWDWHFODLPWKDW
WKHWULDOFRXUWIDLOHGWRJLYHDFRUUHFWPDOLFHLQVWUXFWLRQ
+HSUHVHQWHGWKHFODLPIRUWKHILUVWWLPHLQKLVVHFRQG
SHWLWLRQ IRU SRVWFRQYLFWLRQ UHOLHI UDWKHU WKDQ KLV ILUVW
SHWLWLRQDVDFRQVHTXHQFHRIZKLFKWKH7HQQHVVHH&RXUW
RI &ULPLQDO $SSHDOV IRXQG LW KDG EHHQ SURFHGXUDOO\
ZDLYHG&RH)GDW7KLVFRXUWFLWHG+RXVH
ZKHQGHWHUPLQLQJWKDW&RHKDGGHIDXOWHGKLVFODLPXQGHU
DQREMHFWLYHVWDQGDUGRIZDLYHU+RZHYHUWKHSHWLWLRQ
1R +RXVHY%HOO
'HQQLV :DOODFH ZDV WKH &KLHI RI 3ROLFH RI /XWWUHOO WKH QHDUHVW
WRZQ
FKHFNHGKHIRXQGWKDWKHKDGNLOOHGKHU+HWRRNKHU
ERG\GRZQE\DFUHHNUXQQLQJQHDUWKHLUKRPHDQGKLGLW
ZLWKVRPHEUXVKDQGEUDQFKHV
:KHWKHU0U0XQFH\HYHUZHQWEDFNWRWKHGDQFHLV
XQFHUWDLQ &RQVWDEOH :DOODFH ZKR ZDV SURYLGLQJ
VHFXULW\ DW WKH GDQFH WHVWLILHG WKDW KH QHYHU VDZ 0U
0XQFH\ UHWXUQ DIWHU KH OHIW DURXQG SP 0U
0XQFH\FODLPHGGXULQJWKHKHDULQJWKDWKHQHYHUOHIWWKH
GDQFHXQWLOLWEURNHXSVRPHWZRRUPRUHKRXUVODWHU
3HWLWLRQHU¶V EULHI DW 3HWLWLRQHU DOVR SRLQWV RXW WKDW
'HQQLV:DOODFHGLGQRWWKLQNWKDW0U0XQFH\VHHPHGXSVHW
ZKHQKHUHSRUWHGKLVZLIH¶VGLVDSSHDUDQFHRUZKHQWKHERG\
ZDVUHFRYHUHG$OVR0U0XQFH\DVNHGDQHLJKERU$UWLH
/DZVRQWKHQH[WPRUQLQJWRWHOOSHRSOHWKDWKHZDVDWWKH
GDQFH6LQFHVKHKDGQRWDWWHQGHGLWKHUVHOIVKHGHFOLQHG
+HUGDXJKWHU0DU\$WNLQVKRZHYHUWHVWLILHGWKDWVKHQRW
RQO\VDZ/LWWOH+XEHDWWKHGDQFHEXWWKDWVKHVDZKLPKLWKLV
ZLIH
7KHGLVWULFWFRXUWGLVFRXQWHGWKHWHVWLPRQ\RI/HWQHUDQG
3DUNHU³7KHFRXUWLVQRWLPSUHVVHGZLWKWKHDOOHJDWLRQVRI
LQGLYLGXDOVZKRZDLWRYHUWHQ\HDUVWRFRPHIRUZDUGZLWK
WKHLUHYLGHQFH´0HPRUDQGXP2SLQLRQ)HEUXDU\
DW ,QVWHDG WKH FRXUW FUHGLWHG WKH WHVWLPRQ\ RI /RUD
0XQFH\7KDUSWKHGDXJKWHUZKRWHVWLILHGDWERWKWKHWULDODQG
HYLGHQWLDU\KHDULQJ
:KLOHLQEHGVKHKHDUGDGHHSYRLFHVD\LQJKHUGDGKDG
EHHQLQYROYHGLQDZUHFNQH[WWRWKHFUHHN6RPHWLPH
ODWHU VKH DQG KHU EURWKHU JRW XS DQG ZHQW ORRNLQJ IRU
WKHLUPRWKHU7KH\ZHQWWRWKHQHLJKERUVDQGORRNHGXS
DQGGRZQWKHGULYHZD\6KHGLGQRWVHHDQ\WKLQJRXWRI
WKHRUGLQDU\LQWKHKRXVHQRWKLQJZDVRXWRISODFHDQG
WKHUHZDVQRVLJQRIDVWUXJJOH
-- 12 of 18 --
+RXVHY%HOO 1R
VLWWLQJDURXQGGULQNLQJZKHQ0U0XQFH\³VWDUWHGFU\LQJDQG
JRLQJRQDQGUDPEOLQJ RII´$FFRUGLQJWR3DUNHUKHZDV
³>W@DONLQJ DERXW ZKDW KDSSHQHG WR KLV ZLIH DQG KRZ LW
KDSSHQHG DQG KH GLGQ¶W PHDQ WR GR LW EXW , GRQ¶W NQRZ
H[DFWO\ZKDWDOOZDVVDLG´6KHZHQWRQ³>+@HVDLGWKH\KDG
EHHQLQWRDQDUJXPHQWDQGKHVODSSHGKHUDQGVKHIHOODQGKLW
KHU KHDG DQG LW NLOOHG KHU DQG KH GLGQ¶W PHDQ IRU LW WR
KDSSHQ´+HZDVGUXQNZKHQKHPDGHWKLVFRQIHVVLRQ$IWHU
KHDULQJLW3DUNHUFODLPHG³,IUHDNHGRXWDQGUDQKLPRII´
7KHQH[WGD\KHUPRWKHUWRRNKHUWRWKHFRXUWKRXVHWRWHOO
VRPHRQHDERXWLW+RZHYHU³,QHYHUGLGUHDOO\JHWWRWDONWR
DQ\ERG\´ :KHQ WKH GLVWULFW FRXUW DVNHG KHU DERXW WKH
PRWLYDWLRQEHKLQGKHUWHVWLPRQ\VKHUHSOLHG³$QLQQRFHQW
PDQLVLQMDLO´
2QFURVVH[DPLQDWLRQ3DUNHUWHVWLILHGWKDWVKHKDGWULHGWR
FRPHIRUZDUGEXWQRRQHVHHPHGLQWHUHVWHG6KHKDGKDG
VHYHQRUHLJKWEHHUVRQWKHQLJKWRIWKHFRQIHVVLRQ
3DUNHU¶V VLVWHU 3HQQ\ /HWQHU DOVR KHDUG WKH FRQIHVVLRQ
IURP /LWWOH +XEH 2QFH DJDLQ VKH UHFDOOHG WKDW KH ZDV
³SUHWW\ZHOOEOLVWHUHG´$FFRUGLQJWR/HWQHU
+HVDLGKHGLGQ¶WPHDQWRGRLW7KDWVKHZDV³ELWFKLQJ
KLPRXW´EHFDXVHKHGLGQ¶WWDNHKHUILVKLQJWKDWQLJKW
WKDWKHZHQWWRWKHGDQFHLQVWHDG+HVDLGZKHQKHFRPH
KRPHWKDWVKHZDVVWLOORQKLPSUHWW\KHDYLO\³ELWFKLQJ
KLPRXW´DJDLQDQGWKDWKHVPDFNHGKHUDQGWKDWVKHIHOO
DQGKLWKHUKHDG+HVDLGKHGLGQ¶WPHDQWRGRLWEXW,
KDGWRJHWULGRIKHUEHFDXVH,GLGQ¶WZDQWWREHFKDUJHG
ZLWKPXUGHU
/HWQHUKDGQRWEHHQGULQNLQJ6KHZDVIULJKWHQHGE\WKHWDON
DQG OHIW WKHSDUW\$VD\RXQJPRWKHURIVKHZDVWRR
VFDUHGWRUHSRUWWKHFRQIHVVLRQ
%DVHGXSRQWKHVWDWHPHQWVRI/HWQHUDQG3DUNHUSHWLWLRQHU
SRVLWVWKHIROORZLQJVFHQDULR
:KHQ0U0XQFH\JRWKRPHKHDQGKLVZLIHUHVXPHG
WKHLUILJKW+HKLWKHUDWOHDVWRQFHDQGVKHIHOO:KHQKH
1R +RXVHY%HOO
XSRQZKLFKWKHFRXUWUHOLHGLQILQGLQJWKHGHIDXOWZDV
ILOHG EHIRUH +RXVH ZDV GHFLGHG 7KXV FRQFHUQLQJ
GHIDXOWV WKDW RFFXUUHG EHIRUH +RXVH ZDV GHFLGHG WKH
7HQQHVVHHFRXUWVKDYHVWULFWO\DQGUHJXODUO\DSSOLHGWKH
WUDGLWLRQDO VWDQGDUG RI ZDLYHU ZKHWKHU WKH ZDLYHU LV
PDGHE\FRXQVHORUWKHSHWLWLRQHUSHUVRQDOO\
/DVWZHDUHQRWSHUVXDGHGWKDW&RQHLVFRUUHFWLQKLV
FODLPWKDW7HQQHVVHHODZZDVLQDVWDWHRIFRQIXVLRQRQ
ZKHWKHUDQREMHFWLYHRUVXEMHFWLYHVWDQGDUGRIZDLYHU
LVDSSURSULDWH,WLVQRWFOHDUIURPWKH7HQQHVVHHFDVHV
WKDWSURFHGXUDOGHIDXOWPD\QRWEHFKDUJHGWRDSHWLWLRQHU
ZKRKDVQRWKLPVHOINQRZLQJO\DQGXQGHUVWDQGLQJO\
ZDLYHGWLPHO\DVVHUWLRQRIDIHGHUDOFRQVWLWXWLRQDOFODLP
ZKHQ KLV DWWRUQH\ KDV GRQH VR :H DUH VDWLVILHG WKDW
7HQQHVVHHIROORZVWKHWUDGLWLRQDOUXOHWKDWDSHWLWLRQHULV
FKDUJHDEOHZLWKKLVDWWRUQH\ VIDLOXUHWRWLPHO\DVVHUWD
FODLPDQGZLWKWKHFRQVHTXHQFHVRIIDLOLQJWRGRVR
,GDW:HILQGWKLVUHDVRQLQJGLVSRVLWLYHRIWKHLVVXH
EHIRUHXVDQGDFFRUGLQJO\FRQFOXGHWKDWWKHGLVWULFWFRXUWZDV
FRUUHFW ZKHQ LW GHWHUPLQHG WKDW SHWLWLRQHU¶V LQHIIHFWLYH
DVVLVWDQFHRIFRXQVHOFODLPVKDGEHHQSURFHGXUDOO\GHIDXOWHG
,,,
:HWXUQQH[WWRSHWLWLRQHU¶VFODLPRIDFWXDOLQQRFHQFH,Q
6FKOXSY'HOR86 WKH&RXUWKHOGWKDWD
SHWLWLRQHU PXVW VKRZ HLWKHU FDXVH DQG SUHMXGLFH RU D
PLVFDUULDJHRIMXVWLFHLQRUGHUWRREWDLQKDEHDVUHYLHZRIDQ
RWKHUZLVH SURFHGXUDOO\ GHIDXOWHG FODLP :LWK UHVSHFW WR D
PLVFDUULDJHRIMXVWLFHWKHSHWLWLRQHUPXVWGHPRQVWUDWHWKDW³D
FRQVWLWXWLRQDO YLRODWLRQ KDV SUREDEO\ UHVXOWHG LQ WKH
FRQYLFWLRQRIRQHZKRLVDFWXDOO\LQQRFHQW´6FKOXS86
DW7KLVH[FHSWLRQLVUDUHDQGVKRXOGEHDSSOLHGRQO\LQ
WKHH[WUDRUGLQDU\FDVH
&ODLPV RI DFWXDO LQQRFHQFH SRVH OHVV RI D WKUHDW WR
VFDUFHMXGLFLDOUHVRXUFHVDQGWRSULQFLSOHVRIILQDOLW\DQG
-- 13 of 18 --
+RXVHY%HOO 1R
FRPLW\WKDQGRFODLPVWKDWIRFXVVROHO\RQWKHHUURQHRXV
LPSRVLWLRQRIWKHGHDWKSHQDOW\7KRXJKFKDOOHQJHVWR
WKH SURSULHW\ RI LPSRVLQJ D VHQWHQFH RI GHDWK DUH
URXWLQHO\DVVHUWHGLQFDSLWDOFDVHVH[SHULHQFHKDVWDXJKW
XVWKDWDVXEVWDQWLDOFODLPWKDWFRQVWLWXWLRQDOHUURUKDV
FDXVHGWKHFRQYLFWLRQRIDQLQQRFHQWSHUVRQLVH[WUHPHO\
UDUH6HHVXSUDDW7REHFUHGLEOHVXFKDFODLP
UHTXLUHV SHWLWLRQHU WR VXSSRUW KLV DOOHJDWLRQV RI
FRQVWLWXWLRQDOHUURUZLWKQHZUHOLDEOHHYLGHQFHZKHWKHU
LW EH H[FXOSDWRU\ VFLHQWLILF HYLGHQFH WUXVWZRUWK\
H\HZLWQHVVDFFRXQWVRUFULWLFDOSK\VLFDOHYLGHQFHWKDW
ZDV QRW SUHVHQWHG DW WULDO %HFDXVH VXFK HYLGHQFH LV
REYLRXVO\ XQDYDLODEOH LQ WKH YDVW PDMRULW\ RI FDVHV
FODLPVRIDFWXDOLQQRFHQFHDUHUDUHO\VXFFHVVIXO(YHQ
XQGHUWKHSUH6DZ\HUUHJLPHLQYLUWXDOO\HYHU\FDVHWKH
DOOHJDWLRQ RI DFWXDO LQQRFHQFH KDV EHHQ VXPPDULO\
UHMHFWHG7KHWKUHDWWRMXGLFLDOUHVRXUFHVILQDOLW\DQG
FRPLW\ SRVHG E\ FODLPV RI DFWXDO LQQRFHQFH LV WKXV
VLJQLILFDQWO\OHVVWKDQWKDWSRVHGE\FODLPVUHODWLQJRQO\
WRVHQWHQFLQJ
2I JUHDWHU LPSRUWDQFH WKH LQGLYLGXDO LQWHUHVW LQ
DYRLGLQJLQMXVWLFHLVPRVWFRPSHOOLQJLQWKHFRQWH[WRI
DFWXDO LQQRFHQFH 7KH TXLQWHVVHQWLDO PLVFDUULDJH RI
MXVWLFH LV WKH H[HFXWLRQ RI D SHUVRQ ZKR LV HQWLUHO\
LQQRFHQW
86DW IRRWQRWHVRPLWWHG 7KXV³>W@RHVWDEOLVK
WKHUHTXLVLWHSUREDELOLW\>WKDWSHWLWLRQHULVDFWXDOO\LQQRFHQW@
WKHSHWLWLRQHUPXVWVKRZWKDWLWLVPRUHOLNHO\WKDQQRWWKDWQR
UHDVRQDEOHMXURUZRXOGKDYHFRQYLFWHGKLPLQWKHOLJKWRIWKH
QHZHYLGHQFH´86DW
%HFDXVHWKHGLVWULFWFRXUWFRQGXFWHGDQHYLGHQWLDU\KHDULQJ
RQWKHLVVXHWKHUHLVWHVWLPRQ\DERXWHYHQWVEH\RQGZKDWZDV
SUHVHQWHGGXULQJWKHRULJLQDOWULDO3HWLWLRQHUFRQWHQGVWKDW
WKLV QHZ HYLGHQFH LV VXIILFLHQW WR HVWDEOLVK KLV DFWXDO
LQQRFHQFH:HZLOOVXPPDUL]HLWEHIRUHH[SODLQLQJZK\LQ
RXUYLHZSHWLWLRQHUKDVIDLOHGWRVKRZWKDWLWLVPRUHOLNHO\
WKDQQRWWKDWQRUHDVRQDEOHMXURUZRXOGKDYHFRQYLFWHGKLP
1R +RXVHY%HOO
:LWKRXWTXHVWLRQRQHRUPRUHWXEHVRI0UV0XQFH\¶V
EORRG VSLOOHG DW VRPH WLPH ,W LV OLNHO\ WKH VSLOODJH
RFFXUUHG SULRU WR WKH UHFHLSW RI WKH HYLGHQFH E\ >WKH@
ODERUDWRU\KLUHGE\0U+RXVH¶VWULDODWWRUQH\%DVHG
XSRQ WKH HYLGHQFH LQWURGXFHG GXULQJ WKH HYLGHQWLDU\
KHDULQJKRZHYHUWKHFRXUWFRQFOXGHVWKDWWKHVSLOODJH
RFFXUUHG DIWHU WKH )%, FULPH ODERUDWRU\ UHFHLYHG DQG
WHVWHGWKHHYLGHQFH
>7@KHHQ]\PHGHWHULRUDWLRQDVZHOODV0U0XQFH\¶V
DOOHJHG FRQIHVVLRQ DQG WKH EORRG VSLOODJH GRHV QRW
QHJDWHWKHIDFWWKDW$JHQW6FRWWVDZZKDWDSSHDUHGWREH
EORRGVWDLQVRQ0U+RXVH¶VEOXHMHDQVZKHQWKHMHDQV
ZHUHUHPRYHGIURPWKHODXQGU\KDPSHUDW0V7XUQHU¶V
WUDLOHUDQGWKDWWKHEORRGZDVLQIDFWIURP0UV0XQFH\
0HPRUDQGXP2SLQLRQ)HEUXDU\DW
3HWLWLRQHUQRWRQO\SUHVHQWHGHYLGHQFHWRWKHGLVWULFWFRXUW
WKDW XQGHUPLQHG WKH FDVH DJDLQVW KLP KH DOVR RIIHUHG DQ
DOWHUQDWLYHWKHRU\RIWKHFULPHWKDW0U0XQFH\NLOOHGKLV
ZLIH
$WWKHHYLGHQWLDU\KHDULQJSHWLWLRQHUSURGXFHGZLWQHVVHV
ZKRWHVWLILHGDERXW0U0XQFH\¶VDOFRKROLVPDQGDOVRKLV
SK\VLFDODEXVHRIKLVZLIH2QHDFTXDLQWDQFH.DWK\3DUNHU
WHVWLILHG³>0UV0XQFH\@ZDVFRQVWDQWO\ZLWKEODFNH\HVDQG
EXVWHG PRXWK´ $ IULHQG +D]HO 0LOOHU WHVWLILHG WKDW 0U
0XQFH\WROGKHUWKDWZDVJRLQJWRJHWULGRIKLVZLIHDIHZ
PRQWKVEHIRUHKHUGHDWK,QWKHGLVWULFWFRXUW0U0XQFH\
DFNQRZOHGJHGWKDWKH³VPDFNHG´KLVZLIHDWOHDVWRQFH
$VIRUWKHGD\RIWKHPXUGHU0U0XQFH\ZDVVXSSRVHGWR
KHOSGLJDJUDYH+HZHQWRYHUWRKLVIDWKHU¶VSODFHKHOSHGWR
ZRUNRQVRPHFDUVWKHQGXJWKHJUDYH+RZHYHUUDWKHUWKDQ
JR KRPH KH ZHQW WR WKH ZHHNO\ GDQFH DW WKH & &
5HFUHDWLRQ&HQWHUZKHUHKHWHVWLILHGWKDWKHVWD\HGXQWLODERXW
PLGQLJKW+HWKHQDUULYHGKRPHWRILQGKLVZLIHPLVVLQJ
.DWK\3DUNHUWROGWKHGLVWULFWFRXUWWKDW0U0XQFH\YLVLWHG
KHURQD)ULGD\QLJKWLQDIWHUWKHPXUGHU)ULHQGVZHUH
-- 14 of 18 --
+RXVHY%HOO 1R
'U %ODNH WHVWLILHG WKDW WKHUH ZDV QR WRWDO FKDLQ RI
FXVWRG\$OVRDFFRUGLQJWR'U%ODNH'U&DUDELD>WKH
FRURQHU@IDLOHGWRUHIULJHUDWHDQGSUHVHUYHWKHEORRGLQ
WKHWXEHVIDLOHGWRVHDOWKHWXEHVRIEORRGZKLFKFRXOG
UHVXOW LQ VSLOODJH DQG IDLOHG WR SDFNDJH WKH LWHPV
LQGLYLGXDOO\
'U%ODNH¶VWHVWLPRQ\ZDVEDVHGXSRQKLVUHYLHZRI
SKRWRJUDSKVRIWKHSK\VLFDOHYLGHQFHDQGZDVUHOHYDQW
WR'U%ODNH¶VRSLQLRQWKDWWKHEORRGRQSHWLWLRQHU¶VEOXH
MHDQVUHVXOWHGIURPVSLOODJHRI0UV0XQFH\¶VEORRGLQ
WKHODERUDWRU\WXEHV
'U%ODNHWHVWLILHGWKDWLIIUHVKEORRGKDGVSLOOHGRQWKH
EOXHMHDQVZKLOH0UV0XQFH\ZDVDOLYHDQGWKHQGULHG
WKHHQ]\PHVRQWKHMHDQVZRXOGQRWKDYHGHWHULRUDWHGWR
WKHVDPHH[WHQWDVWKHHQ]\PHVLQWKHEORRGWDNHQIURP
0UV0XQFH\)URPWKLV'U%ODNHFRQFOXGHGWKHEORRG
ZDV QRW VSLOOHG RQ WKH MHDQV ZKLOH 0UV 0XQFH\ ZDV
DOLYHEXWUDWKHUFDPHIURPWKHVSLOODJHRIWKHWHVWWXEHV
'U%ODNHDOVRWHVWLILHGZLWKUHVSHFWWRWKHDJHRI0U
+RXVH¶VEUXLVHVEDVHGXSRQSKRWRJUDSKVWDNHQIURPWKH
VWDWHFRXUWUHFRUG'U%ODNHHVWLPDWHGVRPHEUXLVHVDW
RQHWRWZRGD\VROGRWKHUVDWILYHWRVL[GD\VROG$OVR
LQ'U%ODNH¶VRSLQLRQWKHEUXLVLQJRQ0U+RXVH¶VULJKW
ULQJILQJHUZDVDQLQMXU\IURPEHLQJPDVKHGLWZDVQRW
FRQVLVWHQWZLWKVWULNLQJVRPHRQH
0HPRUDQGXP2SLQLRQ)HEUXDU\DW
7KHGLVWULFWFRXUWDOVRUHFDSSHGWKHWHVWLPRQ\RIWKHEORRG
VSDWWHU H[SHUW 0V 6XWWRQ ZKR FRQFOXGHG WKDW ³WKH EORRG
VWDLQVFRXOGQRWKDYHUHVXOWHGIURPVSLOODJHEHFDXVHWKHEORRG
DQGPXGZRXOGKDYHKDGWRKDYHVSLOOHGDWWKHVDPHWLPH´
0HPRUDQGXP2SLQLRQ)HEUXDU\DW
:LWKUHVSHFWWRWKHEORRGWKHFRXUWGHWHUPLQHG
1R +RXVHY%HOO
3HWLWLRQHU WHVWLILHG IRU WKH ILUVW WLPH DW WKH HYLGHQWLDU\
KHDULQJ+HRIIHUHGWKLVYHUVLRQRIWKHQLJKWRIWKHPXUGHU
³,ZHQWIRUDZDON,JRWMXPSHGUDQDURXQGFDPHEDFN´+H
ZHQWRQWRH[SODLQWKDWWKHWHUUDLQZDVKLOO\DQGLWZDVGDUN
,KDGRQO\EHHQZDONLQJDERXWPD\EHPLQXWHVDWWKH
PRVWLWVHHPVOLNH$WUXFNSXOOHGXSEHKLQGPHZLWK,
UHPHPEHULWDVEHLQJOLNHZKHHOGULYH,WVDWXSKLJK
\RXNQRZ+HDGOLJKWVZHUHRQ,WKDGOLJKWVDFURVVWKH
URRIRIWKHFDEDQGWKH\ZHUHRQ,FRXOGQ¶WVHHDQ\WKLQJ
RWKHUWKDQWKDWDERXWWKHWUXFN,WXUQHGDURXQGDQG
,NHSWZDONLQJ,EHOLHYHWKHUHZHUHDWOHDVWWZRJX\VLQ
WKHWUXFN,NQRZWKHGULYHUJRWRXWRQKLVVLGHRQHJX\
JRWRXWRQWKHSDVVHQJHUVLGH,FRXOGQ¶WUHDOO\GLVFHUQLW
EXW,WKLQNWKHUHZDVRQHRWKHUJX\LQWKHFDE7KHGULYHU
FDPHXS,FDQUHPHPEHUKHVDLGVRPHWKLQJEXW,GRQ¶W
HYHQ NQRZ LI , KHDUG KLP FRUUHFWO\ DW WKH WLPH +H
JUDEEHGPHE\WKHDUP+HVWDUWHGWRMHUNPHDURXQG,
WXUQHGDURXQGWXUQHGDQGWKUHZEDFNZLWKP\OHIWKDQG
,KLWKLP+HOHWJR,VWDUWHGUXQQLQJ,UDQNLQGRI
GLDJRQDOO\ DFURVV WKH URDG LQWR VRPH WUHHV EXVKHV
ZKDWHYHULWZDV,KHDUGDVKRWDWOHDVWRQH7KHUHPLJKW
KDYHEHHQWZR,DPQRWVXUH,UDQDURXQGWKURXJKWKRVH
ZRRGV IRU D ZKLOH , GRQ¶W NQRZ KRZ ORQJ :KHQ ,
FDPHEDFNRXW±,EHOLHYHDWRQHSRLQW,UDQWRWKHULJKW
RQFH,JRWLQWRWKHZRRGVDQGVWDUWHGKHDGLQJEDFN
,ZHQWEDFNDFURVVWKHURDGXSWR'RQQD¶VKRXVH:KHQ
,JRW,VWHSSHGRQVRPHWKLQJDVKDUSURFNRUVRPHWKLQJ
,NQHZ,VWHSSHGRQLW:KHQ,ORRNHGGRZQ,RQO\KDG
RQHVKRH,ORVWRQHRIWKHPZKLOH,ZDVUXQQLQJ,WRRN
WKHRWKHURQHRIIDQGWKUHZLWDFURVVWKHURDG
,GLGQ¶WHYHQQRWLFHP\VKLUWZDVJRQHXQWLO,JRWXSWR
WKHWUDLOHU
$V WKH IDFWXDO VXPPDU\ RI WKH 7HQQHVVHH 6XSUHPH &RXUW
DWWHVWVWKLVYHUVLRQRIHYHQWVGRHVQRWGLIIHUPDUNHGO\IURP
WKHRQHSUHVHQWHGE\'RQQD7XUQHUGXULQJWULDO:KHQDVNHG
ZK\KHLQLWLDOO\OLHGWRLQYHVWLJDWRUVE\WHOOLQJWKHPWKDWKH
-- 15 of 18 --
+RXVHY%HOO 1R
³/LWWOH +XEH´ LV WKH QLFNQDPH RI WKH YLFWLP¶V KXVEDQG +XEHUW
0XQFH\
KDGQRWOHIWWKHWUDLOHUDWDOOSHWLWLRQHUUHVSRQGHG³,ZDVRQ
SDUROH,GLGQ¶WZDQWWRGUDZDWWHQWLRQWRP\VHOI´
,QVKRUWSHWLWLRQHU¶VWHVWLPRQ\PHUHO\UHVWDWHVDVFHQDULR
SUHVHQWHG WR WKH MXU\ WKDW FRQYLFWHG KLP 0RUHRYHU WKH
GLVWULFWFRXUWZKLFKKDGWKHRSSRUWXQLW\WRDVVHVVSHWLWLRQHU¶V
GHPHDQRUIRXQGKLVWHVWLPRQ\WREHOHVVWKDQFUHGLEOH
'XULQJ WKH HYLGHQWLDU\ KHDULQJ SHWLWLRQHU GHYRWHG
FRQVLGHUDEOHWLPHWRWKHWULDOWHVWLPRQ\RI%LOO\5D\+HQVOH\
WKH LQGLYLGXDO ZKR VDZ SHWLWLRQHU QHDU WKH VSRW ZKHUH WKH
ERG\ ZDV GLVFRYHUHG 6SHFLILFDOO\ SHWLWLRQHU LQWURGXFHG
PDSVDQGSKRWRJUDSKVLQRUGHUWRVKRZWKDW+HQVOH\FRXOG
QRWKDYHVHHQZKDWKHSXUSRUWHGWRVHH
$WWULDO+HQVOH\WHVWLILHGWKDWKLVZLIHUHFHLYHGDFDOODW
DERXWSPRQ-XO\WKDW0UV0XQFH\ZDVPLVVLQJ+H
GURYHWRWKH0XQFH\WUDLOHUDQGWDONHGWRVRPHRIWKHIDPLO\
PHPEHUV+HWKHQ³ZHQWWRFKHFNRQP\WREDFFR´$IWHU
YLVLWLQJKLVILHOGVKHHQGHGXSRQ%HDU+ROORZ5RDGZKLFK
LVQHDUZKHUHWKH0XQFH\¶VOLYH
+H WKHQ KDG DQ HQFRXQWHU ZLWK SHWLWLRQHU ZKLFK KH
GHVFULEHGLQWKHVHWHUPV
>-@XVWEHIRUH,URXQGHGWKHFXUYHRQ5LGJHFUHVWZKDWHYHU
WKHQDPHRIWKDWURDGLV,VDZ0U+RXVHFRPHRXWIURP
XQGHUDEDQNZLSLQJKLVKDQGVRQDEODFNUDJ$QG,
ZHQWRQGRZQWR/LWWOH+XEH¶VGULYHZD\,SXOOHGXSLQ
WKHGULYHZD\ZKHUH,FRXOGVHHXSWRZDUG/LWWOH+XEH¶V
KRXVHDQG,VHHQ/LWWOH+XEH¶VFDUZDVQ¶WWKHUHDQG,
EDFNHGRXWLQWKHURDGDQGFRPHEDFNWRZDUGVWRWKH
'XPS5RDGWKDWLVZKDW,FDOOLW$QGWKDWLVZKHQ0U
+RXVHIODJJHGPHGRZQ
1R +RXVHY%HOO
REWDLQHGDFRQVHQWWRVHDUFKIURP0V7XUQHU+HZHQW
WR 0V 7XUQHU¶V KRPH DQG VHL]HG D SDLU RI EOXH MHDQV
IURPWKHFORWKHVKDPSHULQWKHEDWKURRP7KHMHDQVKDG
³UHGGLVKEURZQ´VWDLQVWKDWKHVXVSHFWHGZDV>VLF@EORRG
RQWKHXSSHUSDUWRIWKHMHDQVDQGQHDUWKHFXIIWKHUHZDV
DOVRVRPHOLJKWFRORUHGPXGWKDWZDVQRWFRPSOHWHO\GU\
0U6FRWWGLGQRWWKRURXJKO\H[DPLQHWKHMHDQVDWWKDW
WLPHEXWUDWKHUIROGHGWKHPDQGSXWWKHPLQDSDSHUEDJ
0U6FRWWGLGQRWUHFDOOHYHUVHHLQJWKHMHDQVLQDSODVWLF
EDJ
0HPRUDQGXP2SLQLRQ)HEUXDU\DW
7KHFRXUWWKHQVXPPDUL]HGWKHWHVWLPRQ\RISHWLWLRQHU¶V
H[SHUW ZLWQHVVHV /DUU\ -RKQVRQ WHVWLILHG DV DQ H[SHUW LQ
FULPHVFHQHLQYHVWLJDWLRQDQGRSLQHGWKDW³WKHSDFNDJLQJRI
PDWHULDOV LQ WKH FDVH GLG QRW PHHW SURIHVVLRQDO VWDQGDUGV´
EHFDXVHLWHPVZHUHQRWZUDSSHGVHSDUDWHO\'1$H[SHUW/LVD
&DODQGUR HOLPLQDWHG SHWLWLRQHU DV WKH GRQRU RI WKH VHPHQ
IRXQGRQ0UV0XQFH\¶VXQGHUZHDUDQGQLJKWJRZQ
+RZDUG%UDJGRQPDQDJHURIODERUDWRU\RSHUDWLRQVIRU'&,
/DERUDWRU\LQ1DVKYLOOHWHVWLILHGIRUSHWLWLRQHUDVZHOO7KLV
ODERUDWRU\KDGSHUIRUPHGWKHEORRGDQDO\VLVIRUSHWLWLRQHUDW
WULDO%UDJGRQQRWHGWKDWKHWRRNSRVVHVVLRQRIWKHEOXHMHDQV
WKHYLFWLP¶VFORWKHVDQGILQJHUQDLOVFUDSLQJVDVZHOODVEORRG
IURP ERWK WKH YLFWLP DQG SHWLWLRQHU RQ 2FWREHU
7KHQH[WGD\DIWHUWUDQVSRUWLQJWKHPWR1DVKYLOOHKHWRRN
SLFWXUHVWKDWVKRZHGGULHGEORRGDURXQGWKHXSSHUOHIWFRUQHU
RIWKHER[LQZKLFKWKHLWHPVKDGEHHQFRQWDLQHG$FFRUGLQJ
WRWKHGLVWULFWFRXUW³0U%UDJGRQDGPLWWHGWKDWLWZDVKLV
FXVWRPWRLQVSHFWWKHFRQGLWLRQRIVHURORJLFDOHYLGHQFHZKHQ
KH WRRN SRVVHVVLRQ DQG WKDW WKHUH ZDV QR QRWDWLRQ RQ WKH
UHFHLSWRIVSLOODJH0U%UDJGRQDOVRDGPLWWHGWKDWKHKDGQR
ZD\RINQRZLQJWKHFRQGLWLRQRIWKHEORRGVDPSOHVDWWKH
WLPH RI WKH )%,¶V VHURORJLFDO WHVWLQJ´ 0HPRUDQGXP
2SLQLRQ)HEUXDU\DW
7KHFRXUWFKDUDFWHUL]HG'U%ODNH¶VWHVWLPRQ\DVIROORZV
-- 16 of 18 --
+RXVHY%HOO 1R
GHJUHHRIHQ]\PDWLFGHJUDGDWLRQWKDWWKHEORRGRQWKHEOXH
MHDQVFDPHIURPNQRZQVDPSOHVVXFKDVWKHEORRGFRQWDLQHG
LQ WKH YLDOV DQG QRW IURP 0UV 0XQFH\¶V ERG\ :KHQ
FRQIURQWHGZLWKWKLVFRQFOXVLRQ$JHQW%LJEHHZDVGRXEWIXO
QRWLQJ WKDW PXFK GHSHQGHG XSRQ KDQGOLQJ DQG LQGLYLGXDO
FLUFXPVWDQFHV
$QH[SHUWRQEORRGVSODWWHUDQDO\VLV3DXOHWWH6XWWRQDOVR
WHVWLILHGDWWKHHYLGHQWLDU\KHDULQJ6KHQRWHGWKDWVRPHRI
WKHEORRGVWDLQVRQWKHMHDQVZHUHPL[HGZLWKPXG<HWWKH
SKRWRJUDSKV RI WKH FULPH VFHQH VKRZHG QR PXG SUHVHQW
)XUWKHUPRUH1DWLRQDO:HDWKHU6HUYLFHUHFRUGVVKRZWKDWLW
KDGQRWUDLQHGIRUWKUHHGD\VSULRUWRWKHPXUGHU)LQDOO\
WKHUHZDVQRPXGRQWKHYLFWLP¶VQLJKWJRZQ
)LQDOO\SHWLWLRQHUQRWHV WKDWQREORRGZDVIRXQGRQWKH
WHQQLV VKRHV KH ZDV ZHDULQJ RQ WKH QLJKW RI WKH PXUGHU
&KDUOHV%XUNVSHWLWLRQHU¶VWULDODWWRUQH\DOVRWHVWLILHGDWWKH
HYLGHQWLDU\ KHDULQJ 7KH GLVWULFW FRXUW VXPPDUL]HG KLV
WHVWLPRQ\RQWKHLVVXHRIWKHWHQQLVVKRHVDVIROORZV
'XULQJWKHHYLGHQWLDU\KHDULQJ0U%XUNVUHYLHZHGD
UHSRUWIURPWKH)RUHQVLF6HUYLFHV'HSDUWPHQWRIWKH7%,
ZKLFKUHIHUUHGWR0U+RXVH¶VWHQQLVVKRHVDQGLQGLFDWHG
WKHDEVHQFHRIEORRGRQWKHWHQQLVVKRHV0U%XUNVGLG
QRWUHFDOOKDYLQJVHHQWKDWUHSRUWEHIRUH 7KDWZRXOG
KDYHEHHQUHOHYDQWWR0U%XUNVEHFDXVHDOWKRXJKWKHUH
ZDVEORRGRQ0U+RXVH¶VMHDQVQHDUWKHFXIIWKHUHZDV
QREORRGRQWKHVKRHVKHZDVZHDULQJDWWKHWLPHRIWKH
RIIHQVH7KHVKRHVZHUHIRXQGLQWKHJHQHUDODUHDRI0V
7XUQHU¶VWUDLOHUORQJDIWHUWKHPXUGHU
0HPRUDQGXP2SLQLRQ)HEUXDU\DW
7KHFRXUWUHFRXQWHGWKHGLVFRYHU\RIWKHEOXHMHDQVLQWKHVH
WHUPV
7%, $JHQW &KDUOHV 6FRWW WHVWLILHG WKDW KH EHFDPH
LQYROYHGLQWKHLQYHVWLJDWLRQRI0UV0XQFH\¶VPXUGHU
DWWKHUHTXHVWRIDQRWKHUDJHQWRQWKHVHFRQGGD\RIWKH
LQYHVWLJDWLRQ+HWRRNDVWDWHPHQWIURP0U+RXVHDQG
1R +RXVHY%HOO
7KHWZRPHQKDGDVKRUWFRQYHUVDWLRQDERXWWKHIDFWWKDW0UV
0XQFH\ZDVPLVVLQJ3HWLWLRQHUZDVGULYLQJKLVJLUOIULHQG¶V
ZKLWH3O\PRXWK
$IWHUOHDYLQJ+HQVOH\EHFDPHVXVSLFLRXVDQGDORQJZLWK
KLV IULHQG -DFNLH $GNLQV UHWXUQHG WR WKH VSRW ZKHUH KH
WKRXJKWSHWLWLRQHUKDGHPHUJHG³,VDLG±ULJKWDORQJKHUHLV
ZKHUH , VDZ WKH ER\ >SHWLWLRQHU@ DQG , JRW RXW DQG ZDV
ORRNLQJRIIWKHEDQN DQGKH>$GNLQV@JRWRXWDQGZDONHG
DURXQGWKHFDUDQGKHVDLG±RKP\*RG´
2QFURVVH[DPLQDWLRQ+HQVOH\FRQFHGHGWKDWKHFRXOGQRW
KDYHVHHQSHWLWLRQHUDFWXDOO\³GRZQLQWKHHPEDQNPHQW´+H
ZRXOGKDYHILUVWVHHQKLPDWWKHWRSRIWKHEDQN'HIHQVH
FRXQVHO DOVR WULHG WR EULQJ RXW VRPH LQFRQVLVWHQFLHV LQ
+HQVOH\¶VVWDWHPHQWVFRQFHUQLQJSUHFLVHO\ZKHQDQGZKHUHKH
ILUVWVDZSHWLWLRQHU2QUHGLUHFWWKHSURVHFXWLRQDWWHPSWHG
WRKDYH+HQVOH\FODULI\
4 /HWPHDVN\RXLIWKLVLVDWUXHVWDWHPHQW±³,
WUDYHOOHG DERXW IHHW RQ 5LGJHFUHVW 5RDG
ZKHQ,VDZDμRUμZKLWH3O\PRXWKVLWWLQJ
RQ WKH OHIWKDQG VLGH RI 5LGJHFUHVW 5RDG´ LV
WKDWWUXH"
$ 7KDW¶VWUXH
4 ,VWKDWZKHUH\RXVDZWKHFDU"
$ <HVVLU
4 ,VWKLVWUXH"³,VDZDPDQODWHULGHQWLILHGWRPH
DV3DXO*+RXVHHQWHUWKHURDGZD\IURPWKH
ULJKWKDQGVLGHRIWKHURDG´"
$ +HZDVZDONLQJWRZDUGWKHURDG\HV
4 $OO ULJKW ³$QG KH ZDV FRPLQJ XS RYHU WKH
EDQNDQGKHKDGDEODFNUDJLQKLVKDQGDQGKH
ZDVZLSLQJKLVKDQGV´LVWKDWWUXH"
-- 17 of 18 --
+RXVHY%HOO 1R
$ 7KDW¶VWUXH
4 7KHHVWLPDWLRQ>RIWKHGLVWDQFHRQWKHURDG@WKDW
\RXKDYHJLYHQWKDW\RXZHUHSUHVVHGIRULV
WKDW DQ DFFXUDWH PHDVXUHPHQW RU LV WKDW DQ
HVWLPDWHRQ\RXUSDUW"
$ 7KDWLVMXVWDQHVWLPDWH
7KHH[KLELWVLQWURGXFHGE\SHWLWLRQHUGXULQJWKHHYLGHQWLDU\
KHDULQJZHUHGHVLJQHGWRVKRZWKDW+HQVOH\FRXOGQRWKDYH
VHHQSHWLWLRQHUFRPLQJXSWKHHPEDQNPHQW+RZHYHUHYHQ
LIZHDFFHSWSHWLWLRQHU¶VFRQWHQWLRQWKDW+HQVOH\FRXOGQRW
KDYHVHHQKLPXQWLOKHHPHUJHGRQWRWKHURDGLWLVXQGLVSXWHG
WKDWSHWLWLRQHUZDVVHHQLQWKHJHQHUDOYLFLQLW\RIWKHERG\
FDUU\LQJ D EODFN UDJ 0RUHRYHU WULDO FRXQVHO HIIHFWLYHO\
FURVVH[DPLQHG+HQVOH\UHJDUGLQJKLVLQFRQVLVWHQWVWDWHPHQWV
DERXWZKHQDQGZKHUHKHVDZSHWLWLRQHU7KXVLQRXUYLHZ
SHWLWLRQHU¶VDWWDFNRQ+HQOH\¶VWHVWLPRQ\DGYDQFHVKLVFDXVH
OLWWOHLIDWDOO
,QDGGLWLRQWRSUHVHQWLQJKLVRZQYHUVLRQRIHYHQWVZKLOH
DWWHPSWLQJ WR FDVW GRXEW RQ WKH DFFXUDF\ RI +HQVOH\¶V
WHVWLPRQ\SHWLWLRQHUWDNHVDLPDWWKHSK\VLFDOHYLGHQFHWKDW
OLQNHGKLPWRWKHFULPH
'U$OH[&DUDELDSHUIRUPHGWKHDXWRSV\+HWHVWLILHGDW
WULDOWKDWGHDWKZDVFDXVHGE\DEORZWRWKHOHIWVLGHRIKHU
KHDG7KHYLFWLPGLHGDERXWDQKRXUDQGDKDOIDIWHUVKHZDV
KLW
$W WULDO SKRWRJUDSKV RI WKH EUXLVHV RQ SHWLWLRQHU¶V ERG\
ZHUHHQWHUHGLQWRHYLGHQFHDQGWKUHHZLWQHVVHVWHVWLILHGDERXW
KLVSK\VLFDOFRQGLWLRQ3ULRUWRKLVDUUHVWSHWLWLRQHUSURYLGHG
YDULRXVDFFRXQWVRIWKHLURULJLQWKHP\VWHULRXVILJKWRQWKH
QLJKWRIWKHPXUGHUWHDULQJGRZQDVKHGDIHZGD\VHDUOLHU
'XULQJFORVLQJDUJXPHQWWKHSURVHFXWLRQHPSKDVL]HGWKHVH
LQFRQVLVWHQWVWDWHPHQWV
1R +RXVHY%HOO
$W WULDO )%, $JHQW 3DXO %LJEHH WHVWLILHG WKDW WKH EORRG
VDPSOHVWDNHQIURPWKHYLFWLPZHUHGHJUDGHG1RQHWKHOHVV
WKHEORRGIRXQGRQWKHMHDQVZDVFRQVLVWHQWZLWKWKDWRIWKH
YLFWLPDQGQRWZLWKWKDWRISHWLWLRQHU
$WWKHHYLGHQWLDU\KHDULQJSHWLWLRQHUPRXQWHGDFRQFHUWHG
FKDOOHQJHWRWKLVHYLGHQFH
)RXUYLDOVRIEORRGZHUHWDNHQIURPWKHYLFWLPGXULQJWKH
DXWRSV\7KHVHZHUHSODFHGLQDVW\URIRDPFRQWDLQHUZKLFK
ZDVVHQWIURPWKH7HQQHVVHH%XUHDXRI,QYHVWLJDWLRQ 7%, WR
WKH)%,7KHSHWLWLRQHUUHIHUUHGWRWZRGHPRQVWUDWLYHH[KLELWV
LQWKHGLVWULFWFRXUWSKRWRJUDSKVRIWKHVW\URIRDPFRQWDLQHU
YLHZHGIURPDERYHDQGIURPWKHVLGH,WZDVVHDOHGE\WKH
7%,LQERWKGLUHFWLRQVIRUVKLSSLQJ7KHSKRWRJUDSKRIWKH
VLGHYLHZVKRZVWKDWRQHRIWKHVHDOVZDVEURNHQDQGWKHQ
UHVHDOHGE\DVHFRQGOD\HURIWDSH)%,$JHQW%LJEHHSODFHG
KLVODEQXPEHURQWKHVHFRQGOD\HU7KHILUVWOD\HURIWDSHLV
LQFRPSOHWH LW RQO\ FRYHUV WKH OLG RI WKH FRQWDLQHU $JHQW
%LJEHHFRQFHGHGWKDWLWZDVSRVVLEOHWKDWWKHILUVWVHDOKDG
EHHQFXWEHIRUHWKHVHFRQGVHDOKDGEHHQSODFHGRYHULW7R
VXSSRUWWKHWKHRU\WKDWWKHFRQWDLQHUZDVRSHQHGEHWZHHQWKH
WLPHLWOHIWWKH7%,DQGDUULYHGDWWKH)%,SHWLWLRQHUSRLQWVWR
WKHIDFWWKDWWKHODEHORQWKHFRQWDLQHULQGLFDWHGWKDWLWKHOG
ERWK EORRG DQG YDJLQDO VHFUHWLRQV <HW $JHQW %LJEHH
UHFHLYHGWKHVHFUHWLRQVLQDPDQLOODHQYHORSH
$VPHQWLRQHGDERYHIRXUYLDOVRIEORRGZHUHVHQWWRWKH
)%,$FFRUGLQJWR$JHQW%LJEHHKHZRXOGKDYHXVHGRQH
IRXUWKRIDYLDOLQWHVWLQJ3HWLWLRQHU¶VWULDOVHURORJ\H[SHUW
+RZDUG%UDJGRQWRRNDSKRWRJUDSKZKHQKHUHFHLYHGWKH
VW\URIRDPFRQWDLQHUIURPWKH)%,,QSHWLWLRQHU¶VYLHZWKH
SKRWRJUDSKVKRZVRQHRIWKHWXEHVZDVRQO\RQHKDOIIXOODQG
DQRWKHU QHDUO\ HPSW\ )XUWKHUPRUH $JHQW %LJEHH¶V
WHVWLPRQ\ WR WKH FRQWUDU\ LW DSSHDUV WKDW VRPH EORRG KDG
VSLOOHG
,Q WKH GLVWULFW FRXUW 'U &OHODQG %ODNH $VVLVWDQW &KLHI
0HGLFDO([DPLQHUIRUWKH6WDWHH[DPLQHGWKHUHVXOWVRIWKH
)%,WHVWVRIWKHEORRGIRXQGRQWKHEOXHMHDQVDQGDOVRWKH
EORRGWDNHQIURP0UV0XQFH\+HWKHRUL]HGEDVHGXSRQWKH
-- 18 of 18 --
Connect Omnilex to search the legal corpus from your AI assistant.