02a0335p.06

7KH +RQRUDEOH 'DYLG 0 /DZVRQ 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
6</9(67(5 72:16(1'DQG
'$9,' *5((1
'HIHQGDQWV$SSHOOHHV
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW'D\WRQ
1R²:DOWHU+5LFH&KLHI'LVWULFW-XGJH
$UJXHG$SULO
'HFLGHGDQG)LOHG6HSWHPEHU
%HIRUH.583$16.<DQG%2**6&LUFXLW-XGJHVDQG
/$:621'LVWULFW-XGJH

-- 1 of 8 --

8QLWHG6WDWHVY7RZQVHQGHWDO 1R
BBBBBBBBBBBBBBBBB
&2816(/
$5*8(' 'DYLG - +RUQH $66,67$17 81,7('
67$7(6$77251(<'D\WRQ2KLRIRU$SSHOODQW.HYLQ
06FKDG6&+$' &22.,QGLDQ6SULQJV2KLR6KDURQ
/2YLQJWRQ*5(*(5 29,1*721'D\WRQ2KLRIRU
$SSHOOHHV 21 %5,() 'DYLG - +RUQH $66,67$17
81,7(' 67$7(6 $77251(< 'D\WRQ 2KLR IRU
$SSHOODQW .HYLQ 0 6FKDG 6&+$' &22. ,QGLDQ
6SULQJV 2KLR /DZUHQFH - *UHJHU *5(*(5
29,1*721'D\WRQ2KLRIRU$SSHOOHHV
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
%2**6 &LUFXLW -XGJH 7KH 8QLWHG 6WDWHV DSSHDOV WKH
GLVWULFWFRXUW¶VRUGHUVXSSUHVVLQJHYLGHQFHDQGGLVPLVVLQJWKH
LQGLFWPHQWREWDLQHGDJDLQVW6\OYHVWHU7RZQVHQGDQG'DYLG
*UHHQ'XULQJDWUDIILFVWRS2KLRVWDWHSDWUROPHQFDOOHGIRU
DGUXJVQLIILQJGRJDQGWKHQVHDUFKHGWKHWUXQNRIWKHFDULQ
ZKLFKWKHGHIHQGDQWVZHUHWUDYHOLQJ7KHGLVWULFWFRXUWKHOG
WKDWZKLOHWKHWUDIILFVWRSZDVSHUPLVVLEOHWKHGHWHQWLRQRI
WKHDXWRPRELOHDQGWKHWZRGHIHQGDQWVXQWLOWKHFDQLQHXQLW
DUULYHGEXWEH\RQGWKHWLPHUHDVRQDEO\QHFHVVDU\WRLVVXHD
WUDIILF FLWDWLRQ ZDV ZLWKRXW UHDVRQDEOH VXVSLFLRQ DQG LQ
YLRODWLRQRIWKH)RXUWK$PHQGPHQW$FFRUGLQJWRWKHGLVWULFW
FRXUW WKH LQYDOLG GHWHQWLRQ WDLQWHG WKH VHDUFK DQG WKH
HYLGHQFH VHL]HG LQ WKH VHDUFK ZDV LQDGPLVVLEOH )RU WKH
IROORZLQJUHDVRQVZHDIILUPWKHGLVWULFWFRXUW¶VMXGJPHQW
,
,QWKHHDUO\PRUQLQJKRXUVRI-XQH2KLRKLJKZD\
SDWUROPHQ 'RXJODV (FN DQG -RKQ &KHVVHU VWRSSHG DQ
DXWRPRELOHWUDYHOLQJ(DVWERXQGRQ,QWHUVWDWHLQH[FHVVRI
WKHVSHHGOLPLW7KHRIILFHUVWHVWLILHGWKDWIURPWKHEHJLQQLQJ
RI WKH VWRS WKH\ IRXQG VHYHUDO WKLQJV XQXVXDO $V WKH\

-- 2 of 8 --

1R 8QLWHG6WDWHVY7RZQVHQGHWDO
DSSURDFKHGWKHYHKLFOH7RZQVHQGZKRKDGEHHQGULYLQJWKH
FDUSXWKLVKDQGVLQWKHDLUZLWKRXWSURPSWLQJ:KHQWROG
WKDW WKH UDGDU LQGLFDWHG WKDW WKH\ KDG EHHQ VSHHGLQJ DW
03+ 7RZQVHQG LPPHGLDWHO\ DGPLWWHG WKDW KH KDG EHHQ
WUDYHOLQJDW7RZQVHQGKDGKLVOLFHQVHUHJLVWUDWLRQDQG
SURRI RI LQVXUDQFH UHDG\ ZKHQ 2IILFHU (FN DUULYHG DW KLV
ZLQGRZ2IILFHU(FNWHVWLILHGWKDWKHIRXQGWKLV EHKDYLRU
UHIOHFWLYHRIDQXQXVXDOHDJHUQHVVWRHQGWKHVWRSTXLFNO\
2IILFHU (FN UHWXUQHG WR KLV SDWURO FDU ZKHUH DQRWKHU
RIILFHU -DPHV 0\HUV KDG DUULYHG $W WKH VXSSUHVVLRQ
KHDULQJWKHWKUHHRIILFHUVWHVWLILHGWKDWWKHGHIHQGDQWVDFWHG
QHUYRXVO\LQWKHFDUIUHTXHQWO\ORRNLQJEDFNDWWKHRIILFHUV
ZKLOH WKH\ ZHUH SURFHVVLQJ WKH SDSHUZRUN $OWKRXJK
7RZQVHQG¶VQDPHPDWFKHGWKHQDPHOLVWHGRQWKHSURRIRI
LQVXUDQFHIRUWKHFDUWKHUHJLVWHUHGRZQHUZDVGLIIHUHQW(FN
UHWXUQHGWRWKHFDUDQGDVNHG7RZQVHQGZKHWKHUWKHRZQHURI
WKHDXWRPRELOHZDVSUHVHQW7RZQVHQGVDLGQR$VLWWXUQV
RXW WKH FDU ZDV UHJLVWHUHG WR 7RZQVHQG¶V PRWKHU $W WKH
VXSSUHVVLRQKHDULQJ(FNWHVWLILHGWKDWKHIRXQGWKHDEVHQFH
RIWKHUHFRUGRZQHUVXVSLFLRXVDVGUXJFRXULHUVRIWHQGRQRW
RZQWKHFDUVWKDWWKH\DUHGULYLQJ
(FNWKHQTXHVWLRQHG7RZQVHQGDQG*UHHQUHJDUGLQJWKH
SXUSRVHRIWKHLUMRXUQH\7RZQVHQGFODLPHGWKDWWKH\ZHUH
WUDYHOLQJ IURP &KLFDJR WR YLVLW KLV VLVWHU LQ &ROXPEXV
7RZQVHQG VDLG WKDW KH FRXOG QRW UHPHPEHU KLV VLVWHU¶V
DGGUHVVLQ&ROXPEXVEXWFODLPHGWKDWKHKDGSODQQHGWRFDOO
KLV VLVWHU RQFH KH UHDFKHG WKH &ROXPEXV DUHD $W WKH
VXSSUHVVLRQKHDULQJ(FNWHVWLILHGWKDWKHEHOLHYHG7RZQVHQG
WREHO\LQJUHJDUGLQJWKHSXUSRVHRIKLVMRXUQH\DVKHIRXQG
LWRGGWKDW7RZQVHQGKDGSODQQHGWRFDOOKLVVLVWHULQWKHHDUO\
PRUQLQJKRXUV(FNDOVRWHVWLILHGWKDWKHEHOLHYHG&KLFDJRWR
EHDVRXUFHFLW\DQG&ROXPEXVDGHVWLQDWLRQFLW\IRUQDUFRWLFV
7KHGHIHQGDQWV¶WUDYHOLQJEHWZHHQWKRVHGHVWLQDWLRQVPDGH
(FNVXVSHFWWKDWWKHGHIHQGDQWVZHUHWUDQVSRUWLQJGUXJV(FN
WHVWLILHG
7KHRIILFHUVREVHUYHGWKUHHFHOOXODUWHOHSKRQHVDQGD%LEOH
LQWKHSDVVHQJHUFRPSDUWPHQW$FFRUGLQJWR(FNWKHODUJH

-- 3 of 8 --

8QLWHG6WDWHVY7RZQVHQGHWDO 1R
QXPEHURIFHOOXODUWHOHSKRQHVZHUHW\SLFDORIGUXJFRXULHUV
,QDGGLWLRQ(FNWHVWLILHGWKDWLQKLVH[SHULHQFHGUXJFRXULHUV
RIWHQSURPLQHQWO\GLVSOD\UHOLJLRXVV\PEROVLQWKHLUFDUVLQ
RUGHUWRGHIOHFWVXVSLFLRQRIGUXJVPXJJOLQJ
7KHRIILFHUVDVNHGWKHGHIHQGDQWVWRH[LWWKHLUYHKLFOHDQG
IULVNHGWKHGHIHQGDQWVIRUZHDSRQV7KHRIILFHUVIRXQGQR
ZHDSRQVRQWKHGHIHQGDQWV EXW GLGGHWHFWZKDWIHOWOLNHD
ODUJHUROORIFDVK$FFRUGLQJWR(FN¶VWHVWLPRQ\KHNQHZ
WKDWGUXJFRXULHUVHQJDJLQJLQDODUJHO\FDVKEDVHGEXVLQHVV
RIWHQFDUULHGODUJHDPRXQWVRIFXUUHQF\7KHRIILFHUVDOVR
VHDUFKHGWKHSDVVHQJHUFRPSDUWPHQWIRUZHDSRQVEXWIRXQG
QRQH
)LQGLQJQRFRQWUDEDQGLQWKHSDVVHQJHUDUHDRIWKHFDURURQ
WKH SHUVRQ RI WKH GHIHQGDQWV WKH RIILFHUV RUGHUHG WKH
GHIHQGDQWVWRVLWLQWKHEDFNRIWKHSDWUROFDUDQGFDOOHGIRUD
FDQLQHXQLW2YHUWKLUW\PLQXWHVODWHUDQRWKHURIILFHUDUULYHG
ZLWKDGUXJVQLIILQJGRJ7KHGRJDOHUWHGRQWKHWUXQNRIWKH
FDU%HFDXVHRIWKHGRJ¶VLQGLFDWLRQWKHRIILFHUVRSHQHGDQG
VHDUFKHGWKHWUXQN7KH\IRXQGQRWKLQJLQWKHPDLQOXJJDJH
FRPSDUWPHQW RI WKH WUXQN 7KH RIILFHUV DOVR GLVPDQWOHG D
FRPSDFWGLVFFKDQJHUPHFKDQLVPWKDWZDVLQWKHEDFNRIWKH
WUXQN /RGJHG LQVLGH WKH GHYLFH ZHUH WHQ DSSDUHQWO\
FRXQWHUIHLW RQHKXQGUHG GROODU ELOOV 7KH RIILFHUV QHYHU
IRXQGDQ\WUDFHRIQDUFRWLFVRIDQ\NLQGLQWKHWUXQN7KH
RIILFHUVDUUHVWHGWKHGHIHQGDQWVIRUSRVVHVVLRQRIFRXQWHUIHLW
FXUUHQF\
7KH8QLWHG6WDWHV$WWRUQH\REWDLQHGLQGLFWPHQWVDJDLQVW
WKH GHIHQGDQWV IRU SRVVHVVLRQ RI FRXQWHUIHLW FXUUHQF\ LQ
YLRODWLRQ RI 86& † 7KH GHIHQGDQWV PRYHG WR
VXSSUHVVWKHWHQFRXQWHUIHLWELOOVVHL]HGGXULQJWKHRIILFHUV¶
VHDUFKRIWKHWUXQNDUJXLQJWKDWWKHVHDUFKYLRODWHGWKH)RXUWK
$PHQGPHQW 7KH GLVWULFW FRXUW FRQGXFWHG DQ HYLGHQWLDU\
KHDULQJDQGJUDQWHGWKHGHIHQGDQWV¶PRWLRQ)RUWKHGLVWULFW
FRXUW WKH GHIHQGDQWV¶ PRWLRQ SUHVHQWHG WKUHH GLVWLQFW
TXHVWLRQV ZKHWKHU WKH RIILFHUV KDG SUREDEOH FDXVH WR
EHOLHYHDWUDIILFYLRODWLRQZDVRFFXUULQJWRPDNHWKHLQLWLDO
VWRS KDGUHDVRQDEOHVXVSLFLRQRIPRUHH[WHQVLYHFULPLQDO
1R 8QLWHG6WDWHVY7RZQVHQGHWDO
WKHRIILFHUVGUXJFRXULHUVRIWHQGULYHRWKHUSHRSOH¶VFDUVWR
DYRLGIRUIHLWXUHRIWKHLURZQSURSHUW\,QWKLVFDVHWKHFDU
ZDVQRWFRPSOHWHO\XQUHODWHGWRWKHGHIHQGDQWV7KHSURRIRI
LQVXUDQFHFDUGOLVWHG7RZQVHQGDVFRYHUHGRQWKHDXWRPRELOH
DQG WKH UHFRUG RZQHU RI WKH FDU ZDV 7RZQVHQG¶V PRWKHU
$JDLQ WKH VXVSLFLRXVQHVV RI WKLV SDUWLFXODU IHDWXUH LV
FRPSDUDWLYHO\ZHDNLQWKLVFDVH
,,,
$OWKRXJKWKHJRYHUQPHQWKDVSRLQWHGWRVHYHUDOIDFWRUV
SUHVHQW LQ WKLV FDVH ZKLFK ZH KDYH UHFRJQL]HG DV YDOLG
FRQVLGHUDWLRQVLQIRUPLQJUHDVRQDEOHVXVSLFLRQWKH\DUHDOO
UHODWLYHO\PLQRUDQGLQPDQ\FDVHVDUHVXEMHFWWRVLJQLILFDQW
TXDOLILFDWLRQ7KHIDFWRIWKHPDWWHULVWKDWWKLVFDVHODFNVDQ\
RI WKH VWURQJHU LQGLFDWRUV RI FULPLQDO FRQGXFW WKDW KDYH
DFFRPSDQLHGWKHVHPLQRUIDFWRUVLQRWKHUFDVHV:HKROGWKDW
WKH RIILFHUV ODFNHG UHDVRQDEOH VXVSLFLRQ WR GHWDLQ WKH
GHIHQGDQWV XQWLO WKH FDQLQH XQLW DUULYHG :H WKHUHIRUH
$)),50WKHGLVWULFWFRXUW¶VRUGHUVXSSUHVVLQJWKHFRXQWHUIHLW
ELOOVVHL]HGLQWKHRIILFHUV¶VHDUFKRIGHIHQGDQWV¶WUXQNDQG
GLVPLVVLQJWKHLQGLFWPHQW

-- 4 of 8 --

8QLWHG6WDWHVY7RZQVHQGHWDO 1R
RIWHQFDUU\ODUJHDPRXQWVRIFXUUHQF\DPRXQWVLQGLFDWLYHRI
FULPLQDODFWLYLW\ZRXOGOLNHO\EHPRUHWKDQRUELOOV
ZKLFKIRUDOOWKLVFRXUWNQRZVLVDOOWKDWWKHGHIHQGDQWVZHUH
FDUU\LQJ
6HYHQWK WKH RIILFHUV WHVWLILHG WKDW WKH\ OHDUQHG WKDW
7RZQVHQGKDGEHHQSUHYLRXVO\DUUHVWHGRQDZHDSRQVFKDUJH
7KHJRYHUQPHQWDUJXHVWKDWWKHRIILFHUVGXHWRWKHZHDSRQV
FKDUJHUHDVRQDEO\IHDUHGIRUWKHLUVDIHW\DQGZHUHHQWLWOHGWR
VHDUFK WKH SDVVHQJHU FRPSDUWPHQW DQG WKH GHIHQGDQWV IRU
ZHDSRQV:HDJUHHZLWKWKHJRYHUQPHQWFHUWDLQO\WKHSULRU
ZHDSRQVDUUHVWZRXOGFRQWULEXWHWRSUREDEOHFDXVHWRVHDUFK
WKHGHIHQGDQWVDQGWKHSDVVHQJHUFRPSDUWPHQW7KHRIILFHUV
LQWKLVFDVHGLGVRDQGIRXQGQRWKLQJ2QFHWKHRIILFHUVKDG
VDWLVILHGWKHPVHOYHVWKDWWKHUHZHUHQRDYDLODEOHZHDSRQVWKH
DUUHVW ZLWKRXW HYHQ D FRQYLFWLRQ ZRXOG FDUU\ YHU\ OLWWOH
ZHLJKWLQSURYLGLQJUHDVRQDEOHVXVSLFLRQRIPRUHH[WHQVLYH
FULPLQDODFWLYLW\DWWKHWLPHRIWKHVWRS
(LJKWKWKHRIILFHUVFODLPHGWKDWWKHGHIHQGDQWVDSSHDUHG
QHUYRXVUHSHDWHGO\ORRNLQJEDFNDWWKHSDWUROFDUZKLOHWKH
RIILFHUV ZHUH SURFHVVLQJ SDSHUZRUN IRU WKH FLWDWLRQ 7KH
GLVWULFW FRXUW IRXQG WKH RIILFHUV¶ DFFRXQWV UHJDUGLQJ WKH
GHIHQGDQWV¶GHPHDQRULQFRQVLVWHQWDQGQRWFUHGLEOH7KLVLV
D ILQGLQJ RI IDFW ZKLFK ZH PD\ RQO\ RYHUWXUQ LI FOHDUO\
HUURQHRXV7KHJRYHUQPHQWKDVSURYLGHGWKLVFRXUWZLWKQR
EDVLVWRRYHUWXUQWKHGLVWULFWFRXUW¶VILQGLQJ
1LQWK WKH RIILFHUV FRQWHQGHG WKDW WKH LQWHULRU RI WKH
DXWRPRELOHZDVFOXWWHUHGZLWKIRRGZUDSSHUVDQGFORWKLQJ
LQGLFDWLQJWKDWWKHGHIHQGDQWVKDGEHHQUHOXFWDQWWROHDYHWKH
FDUDQGWKHLUVXVSHFWHGORDGRIFRFDLQH7KHGLVWULFWFRXUWGLG
QRWDGGUHVVWKLVIDFWRUDWOHQJWK7KHRIILFHUVWHVWLILHGWKDW
WKHUHZHUHFORWKLQJDQGIRRGZUDSSHUVLQWKHFDU+RZHYHU
LWLVQRWDVLIWKHGHIHQGDQWVZRXOGKDYHKDGWROLYHLQWKHFDU
IRU GD\V WR GULYH IURP &KLFDJR WR &ROXPEXV *LYHQ WKH
FRQWH[W WKH XQNHPSW FRQGLWLRQ RI WKH FDU LV QRW WHUULEO\
VXVSLFLRXV
7HQWKWKHRIILFHUVQRWHGWKDWWKH\ZHUHFRQFHUQHGWKDWWKH
GULYHUZDVQRWWKHUHJLVWHUHGRZQHURIWKHFDU$FFRUGLQJWR
1R 8QLWHG6WDWHVY7RZQVHQGHWDO
DFWLYLW\ VXIILFLHQW WR MXVWLI\ WKH FRQWLQXHG GHWHQWLRQ RI WKH
GHIHQGDQWVEH\RQGWKHWLPHUHDVRQDEO\QHFHVVDU\WRLVVXHWKH
WUDIILFFLWDWLRQDQG KDGSUREDEOHFDXVHWRVHDUFKWKHWUXQN
$FFRUGLQJWRWKHFRXUWWKHRIILFHUVFOHDUO\KDGSUREDEOHFDXVH
WREHOLHYHWKDWWKHGHIHQGDQWVZHUHVSHHGLQJYDOLGDWLQJWKH
LQLWLDOVWRS7KHFRXUWKHOGKRZHYHUWKDWWKHRIILFHUVODFNHG
WKHUHDVRQDEOHVXVSLFLRQUHTXLUHGWRGHWDLQWKHGHIHQGDQWVDQG
WKHLUFDUEH\RQGWKHWLPHUHDVRQDEO\QHFHVVDU\WRLVVXHWKH
WUDIILFFLWDWLRQ7KLVLQYDOLGGHWHQWLRQDFFRUGLQJWRWKHFRXUW
SURYLGHGWKHRIILFHUVZLWKVXIILFLHQWWLPHIRUWKHFDQLQHXQLW
WR DUULYH :LWKRXW WKH GRJ¶V DOHUWLQJ RQ WKH WUXQN PDGH
SRVVLEOHE\WKHLQYDOLGGHWHQWLRQWKHRIILFHUVZRXOGQRWKDYH
KDG SUREDEOH FDXVH WR VHDUFK WKH WUXQN $FFRUGLQJO\
ZKDWHYHU WKH YDOLGLW\ RI WKH VHDUFK ZLWK WKH LQIRUPDWLRQ
SURYLGHGE\WKHGUXJVQLIILQJGRJWKHGLVWULFWFRXUWKHOGWKDW
WKH LQYDOLG GHWHQWLRQ WDLQWHG WKH VHDUFK DQG WKHUHIRUH
VXSSUHVVHGWKHFRXQWHUIHLWFXUUHQF\
7KH JRYHUQPHQW FRQFHGHG WKDW LW ODFNHG VXIILFLHQW
HYLGHQFH ZLWKRXW WKH FXUUHQF\ WR PDLQWDLQ WKH FKDUJHV
DJDLQVWWKHGHIHQGDQWVDQGWKHLQGLFWPHQWZDVGLVPLVVHGE\
WKHFRXUW7KHJRYHUQPHQWQRZDSSHDOVWKHGLVWULFWFRXUW¶V
RUGHU KROGLQJ WKH RIILFHUV¶ LQYHVWLJDWRU\ GHWHQWLRQ DQG
VXEVHTXHQWVHDUFKLQYDOLGXQGHUWKH)RXUWK$PHQGPHQWDQG
H[FOXGLQJ IURP HYLGHQFH WKH WHQ FRXQWHUIHLW ELOOV VHL]HG
GXULQJWKHVHDUFK
,,
$SROLFHRIILFHUPD\HIIHFWDWUDIILFVWRSRIDQ\PRWRULVWIRU
DQ\WUDIILFLQIUDFWLRQHYHQLIWKHRIILFHU¶VWUXHPRWLYHLVWR
GHWHFW PRUH H[WHQVLYH FULPLQDO FRQGXFW 8QLWHG 6WDWHV Y
0HVD )G WK &LU 7R GHWDLQ WKH
PRWRULVWDQ\ORQJHUWKDQLVUHDVRQDEO\QHFHVVDU\WRLVVXHWKH
WUDIILF FLWDWLRQ KRZHYHU WKH RIILFHU PXVW KDYH UHDVRQDEOH
VXVSLFLRQWKDWWKHLQGLYLGXDOKDVHQJDJHGLQPRUHH[WHQVLYH
FULPLQDOFRQGXFW7KDWLVZLWKRXWVXFKUHDVRQDEOHVXVSLFLRQ
DOOWKHRIILFHU¶VDFWLRQVPXVWEH³UHDVRQDEO\UHODWHGLQVFRSH
WRFLUFXPVWDQFHVMXVWLI\LQJWKHRULJLQDOLQWHUIHUHQFH´8QLWHG
6WDWHVY+LOO)G WK&LU

-- 5 of 8 --

8QLWHG6WDWHVY7RZQVHQGHWDO 1R
7KH UHDVRQDEOH VXVSLFLRQ UHTXLUHG IRU FRQWLQXHG
LQYHVWLJDWRU\ GHWHQWLRQ LV QRW DV GHPDQGLQJ D VWDQGDUG
KRZHYHU DV WKH SUREDEOH FDXVH UHTXLUHG IRU WKH XOWLPDWH
VHDUFK1RQHRIWKHSDUWLHVGLVSXWHVWKDWWKHRIILFHUVLQWKLV
FDVHYDOLGO\HIIHFWHGWKHLQLWLDOVWRSRUHYHQWKDWWKH\KDG
SUREDEOH FDXVH IRU WKH VHDUFK RI WKH WUXQN DIWHU WKH GUXJ
GHWHFWLQJGRJKDGDOHUWHGWRWKHWUXQN7KHVROHTXHVWLRQLQ
WKLVFDVHLVZKHWKHUWKHRIILFHUVKDGWKHUHDVRQDEOHVXVSLFLRQ
QHFHVVDU\ IRU WKH FRQWLQXHG LQYHVWLJDWRU\ GHWHQWLRQ RI WKH
GHIHQGDQWVDGHWHQWLRQWKDWSHUPLWWHGWKHFDQLQHXQLWWRDUULYH
DQG WKDW FUHDWHG WKH SUREDEOH FDXVH WKDW ZRXOG RWKHUZLVH
MXVWLI\WKHVHDUFK
7KHGLVWULFWFRXUWGHWHUPLQHGWKDWWKHRIILFHUVODFNHGVXFK
UHDVRQDEOHVXVSLFLRQ:LWKUHJDUGWRVRPHRIWKHRIILFHUV¶
FODLPHG UHDVRQV IRU VXVSHFWLQJ WKH GHIHQGDQWV RI FULPLQDO
DFWLYLW\WKHGLVWULFWFRXUWKHOGWKDWWKH\ZHUHQRWVXIILFLHQWO\
VLJQLILFDQW DV D PDWWHU RI ODZ :LWK UHJDUG WR RWKHUV WKH
GLVWULFWFRXUWVLPSO\GLGQRWEHOLHYHWKDWWKHRIILFHUVUHOLHGRQ
WKHIDFWRU7KHGLVWULFWFRXUW¶VUHDVRQLQJUHTXLUHVWKDWWKLV
FRXUWFDUHIXOO\H[DPLQHWKHDSSOLFDEOHVWDQGDUGRIUHYLHZ$V
ZLWK PRVW ORZHU FRXUW GHWHUPLQDWLRQV ILQGLQJV RI IDFW DUH
UHYLHZHGIRUFOHDUHUURUDQGSURSRVLWLRQVRIODZGHQRYR6HH
HJ 8QLWHG 6WDWHV Y 0\HUV )G WK &LU
UHFLWLQJWKLVIRUPXODLQWKHSUREDEOHFDXVHFRQWH[W
7KH ³UHDVRQDEOH VXVSLFLRQ´ GHWHUPLQDWLRQ LV XOWLPDWHO\ D
PL[HG TXHVWLRQ RI ODZ DQG IDFW RU LQ RWKHU ZRUGV DQ
DSSOLFDWLRQ RI ODZ WR IDFW E\ ZKLFK WKH FRXUW GHWHUPLQHV
ZKHWKHUWKHIDFWVVXUURXQGLQJWKHRIILFHU¶VGHWHUPLQDWLRQDUH
RI VXIILFLHQW OHJDO VLJQLILFDQFH WR FRQVWLWXWH UHDVRQDEOH
VXVSLFLRQ$FFRUGLQJO\WKHDSSOLFDWLRQRIWKHOHJDOSULQFLSOHV
VXUURXQGLQJWKHQDWXUHRIUHDVRQDEOHVXVSLFLRQWRWKHIDFWV
REVHUYHGE\DQRIILFHULVUHYLHZHGGHQRYRE\WKLVFRXUWDV
PL[HG TXHVWLRQV RI ODZ DQG IDFW W\SLFDOO\ DUH 2UQHODV Y
8QLWHG6WDWHV86 FODULI\LQJWKDWWKH
XOWLPDWHUHDVRQDEOHVXVSLFLRQGHWHUPLQDWLRQLVVXEMHFWWRGH
QRYRUDWKHUWKDQDEXVHRIGLVFUHWLRQUHYLHZ
,QGHWHUPLQLQJWKHHYHQWVOHDGLQJXSWRWKHDFWLRQUHTXLULQJ
UHDVRQDEOH VXVSLFLRQ FRXUWV ZLOO EH FDOOHG XSRQ WR PDNH
1R 8QLWHG6WDWHVY7RZQVHQGHWDO
%XW VHH 8QLWHG 6WDWHV Y +HUQDQGH]'RPLQJXH] )HG $SS[
WK &LU UHFRJQL]LQJ WKH GLPLQLVKHG SUREDWLYH YDOXH RI FHOO
SKRQHV
FRXUW KHOG WKDW FHOOXODU WHOHSKRQHV FDQQRW LQ DQ\ ZD\
FRQWULEXWHWRUHDVRQDEOHVXVSLFLRQ7KHJRYHUQPHQW¶VUHDGLQJ
RIWKHGLVWULFWFRXUW¶VRSLQLRQLVDJJUHVVLYH7KHGLVWULFWFRXUW
KHOGWKDWFHOOXODUWHOHSKRQHVDUHVRPXFKPRUHFRPPRQWRGD\
WKDQLQZKHQWKH\ZHUHFRQVLGHUHG³WRROVRIWKHGUXJ
WUDGH´ 8QLWHG 6WDWHV Y 6ODWHU )G WK
&LU WKDWWKH\DUHFRQVLGHUDEO\OHVVVXVSLFLRXV7KUHH
FHOOSKRQHVLQRQHFDUGRHVVHHPVOLJKWO\RGGDQGZHDUH
FHUWDLQO\QRWSUHSDUHGWRKROGWKDWWKHSUHVHQFHRIVHYHUDOFHOO
SKRQHVFDQQRWFRQWULEXWHWRUHDVRQDEOHVXVSLFLRQRIFULPLQDO
DFWLYLW\ 7KLV IDFWRU KRZHYHU LV ZHDN DQG LV QRW
DFFRPSDQLHG LQ WKLV FDVH E\ PRUH VXEVWDQWLDOO\ VXVSLFLRXV
IDFWRUV
)LIWKWKHRIILFHUVFODLPHGWKDWWKHSUHVHQFHRID%LEOHLQWKH
FDU ZDV VXVSLFLRXV EHFDXVH GUXJ FRXULHUV RIWHQ GLVSOD\
UHOLJLRXVV\PEROVWRGHIOHFWVXVSLFLRQRILOOHJDODFWLYLW\,Q
8QLWHG6WDWHVY5DPRQ)6XSSG :'7H[
WKHGHIHQGDQWVKDGGLVSOD\HGVHYHUDOUHOLJLRXVGHFDOV
RQWKHEDFNRIWKHFDUZKLFKRIILFHUVIHOWZDVDQDWWHPSWWR
DYRLGSROLFHDWWHQWLRQ7KHGLVWULFWFRXUWWKHUHGLGQRWKROG
WKDW UHOLDQFH RQ VXFK D IDFWRU ZDV FRPSOHWHO\ LQYDOLG
DOWKRXJKLWQRWHGWKDWLWZDVDYHU\ZHDNLQGLFDWRURIFULPLQDO
DFWLYLW\,ELG+HUHKDYLQJD%LEOHLQVLGHWKHFDUDSSHDUV
HYHQIXUWKHUIURPDGHOLEHUDWHSODQWRWKURZSROLFHRIIWKH
VFHQW:HDJUHHZLWKWKHGLVWULFWFRXUWWKDWWKH%LEOHLQWKLV
FDVHLVDYHU\ZHDNLQGLFDWRURIFULPLQDODFWLYLW\
6L[WKWKHRIILFHUVZKLOHIULVNLQJWKHGHIHQGDQWVIHOWZKDW
DSSHDUHG WR EH UROOV RI FXUUHQF\ LQ HDFK RI WKHLU SRFNHWV
7KHUHLVQRHYLGHQFHLQWKHUHFRUGDERXWKRZPXFKFXUUHQF\
WKH GHIHQGDQWV ZHUH FDUU\LQJ RU WKDW WKH RIILFHUV HYHU
DVFHUWDLQHGWKDWIDFW7KHGLVWULFWFRXUWGHWHUPLQHGWKDWWKH
UHFRUGZDVVLPSO\WRRWKLQRQWKHDPRXQWRIPRQH\WKDWZDV
RQWKHGHIHQGDQWV¶SHUVRQWRDVVHVVZKHWKHULWZDVSUREDWLYH
RIFULPLQDODFWLYLW\:HDJUHH$OWKRXJKGUXJGHDOHUVGR

-- 6 of 8 --

8QLWHG6WDWHVY7RZQVHQGHWDO 1R
$OWKRXJK WKLV W\SH RI H[ SRVW UHDVRQLQJ VKRXOG QRW EH WKH EDVLV IRU
GHFLVLRQ ZH QRWH WKDW WKHUH LV QR HYLGHQFH LQ WKH UHFRUG WKDW WKH
GHIHQGDQWV ZHUH QRW LQ IDFW WUDYHOLQJ WR YLVLW 7RZQVHQG¶V VLVWHU $W WKH
VXSSUHVVLRQ KHDULQJ 7RZQVHQG WHVWLILHG WKDW KH KDG DFWXDOO\ VDLG KH ZDV
JRLQJ WR YLVLW ³WKH VLVWHUV´ UDWKHU WKDQ ³KLV VLVWHU´ PDNLQJ KLV IDLOXUH WR
UHPHPEHU ³KLV VLVWHU¶V´ DGGUHVV OHVV RGG
RIILFHUKDGQRDUWLFXODEOHUHDVRQWRVXJJHVWWKDWSHRSOHGRQRW
JHQHUDOO\ XQGHUWDNH VXFK MRXUQH\V 7KH FORVHVW WKDW WKH
RIILFHUFRPHVLVVXJJHVWLQJWKDWWKHWULSZDVRFFXUULQJDWWKH
PLGGOHRIWKHQLJKW+RZHYHUZHKDYHQHYHUVXJJHVWHGWKDW
ODWHQLJKW WUDYHO LV LQKHUHQWO\ VXVSLFLRXV 7KH GHIHQGDQWV¶
VWRU\LQWKLVFDVHODFNVWKHLQGLFLDRIWKHXQWUXWKIXOQHVVWKDW
ZHKDYHKHOGSDUWLFXODUO\VXVSLFLRXVLQWKHSDVW
7KLUG WKH RIILFHUV FODLPHG WKDW WKH\ ZHUH FRQFHUQHG
EHFDXVHWKHGHIHQGDQWVZHUHWUDYHOLQJIURPDVRXUFHFLW\IRU
QDUFRWLFV &KLFDJR WR D GHVWLQDWLRQ FLW\ IRU QDUFRWLFV
&ROXPEXV7KHGLVWULFWFRXUWGHWHUPLQHGWKDWWKHRIILFHUV¶
DQDO\VLV ZDV PDNHZHLJKW 7KHUH ZHUH VLPSO\ WRR PDQ\
VRXUFHDQGGHVWLQDWLRQFLWLHVDFFRUGLQJWRWKHGLVWULFWFRXUW
WRPDNHWKHHQWLUHO\FRPPRQWULSIURP&KLFDJRWR&ROXPEXV
VXVSLFLRXV:HDJUHHWKDWD&KLFDJRWR&ROXPEXVWULSGRHV
QRWEHDUWKHVXVSLFLRQWKDWWKHRIILFHUVVHHNWRDWWDFK:HDUH
IDUIURPWKHVLWXDWLRQLQ8QLWHG6WDWHVY$UYL]X6&W
LQ ZKLFK WKH GHIHQGDQWV ZHUH WUDYHOLQJ RQ DQ
LQIUHTXHQWO\ XVHG URDG GLUHFWO\ IURP WKH 0H[LFDQ ERUGHU
ZKHQDSDYHGEXW PRUHSDWUROOHGKLJKZD\ZDVDYDLODEOH
7KRVH FLUFXPVWDQFHV ZLWK RWKHUV SURYLGHG UHDVRQDEOH
VXVSLFLRQIRULQYHVWLJDWLYHGHWHQWLRQ,GDW:KLOHLW
ZRXOGEHHUURQHRXVWRKROGWKDWWKHGHIHQGDQWV¶WUDYHOSODQV
DUHQRWVXVSLFLRXVVLPSO\EHFDXVHWKH\DUHOHVVRGGWKDQWKRVH
LQ$UYL]XVHH8QLWHG6WDWHVY.QLJKWV6&W
ZH VLPSO\ QRWH WKDW WUDYHOLQJ IURP &KLFDJR WR
&ROXPEXVWZRODUJHPXWXDOO\SUR[LPDWH0LGZHVWHUQFLWLHV
LVDPRUHFRPPRQRFFXUUHQFH
)RXUWK WKH RIILFHUV FODLPHG WKDW WKH SUHVHQFH RI WKUHH
FHOOXODUWHOHSKRQHVLQWKHSDVVHQJHUFRPSDUWPHQWZDVW\SLFDO
RI GUXJ FRXULHUV 7KH JRYHUQPHQW DUJXHV WKDW WKH GLVWULFW
1R 8QLWHG6WDWHVY7RZQVHQGHWDO
VHYHUDOILQGLQJVRIKLVWRULFDOIDFWZKLFKPXVWEHUHYLHZHG
RQO\ IRU FOHDU HUURU 6HH LG DW 2QH VXFK QHFHVVDU\
KLVWRULFDOIDFWLVH[WHQVLYHO\DWLVVXHLQWKLVFDVH7KHFRXUW
FDQQRWGHWHUPLQHWKDWDQRIILFHUKDGUHDVRQDEOHVXVSLFLRQRQ
WKHEDVLVRIDIDFWRURQZKLFKWKHRIILFHUGLGQRWDFWXDOO\UHO\
8QLWHG6WDWHVY/RWW)G VW&LU
:LWK UHJDUG WR VHYHUDO SURIHUUHG H[SODQDWLRQV IRU WKH
GHWHQWLRQ WKH GLVWULFW FRXUW GLG QRW EHOLHYH DQ RIILFHU¶V
VWDWHPHQWWKDWKHIRXQGDSDUWLFXODUIHDWXUHRIWKHVWRSRUWKH
GHIHQGDQWV VXVSLFLRXV DW WKH WLPH RU HYHQ WKDW D SDUWLFXODU
HYHQW KDG RFFXUUHG 7KHVH FUHGLELOLW\ DVVHVVPHQWV DUH
ILQGLQJV RI IDFW ZKLFK WKLV FRXUW FDQQRW RYHUWXUQ XQOHVV
FOHDUO\HUURQHRXV
0RUHJHQHUDOO\HYHQWKHDSSOLFDWLRQRIWKHOHJDOSULQFLSOHV
JRYHUQLQJUHDVRQDEOHVXVSLFLRQWRWKHIDFWVLVVXEMHFWWRVRPH
GHIHUHQFH$VZHKDYHUHSHDWHGO\UHFRJQL]HGWKHFRQFHSWVRI
³UHDVRQDEOHVXVSLFLRQ´DQG³SUREDEOHFDXVH´GRQRWSHUPLWRI
SUHFLVH MXGLFLDO GHILQLWLRQ DQG DUH GHSHQGHQW RQ
FLUFXPVWDQFHV2UQHODV86DW ³$UWLFXODWLQJ
SUHFLVHO\ZKDWμUHDVRQDEOHVXVSLFLRQ¶DQGμSUREDEOHFDXVH¶
PHDQLVQRWSRVVLEOH7KH\DUHFRPPRQVHQVHQRQWHFKQLFDO
FRQFHSWLRQV WKDW GHDO ZLWK μWKH IDFWXDO DQG SUDFWLFDO
FRQVLGHUDWLRQV RI HYHU\GD\ OLIH RQ ZKLFK UHDVRQDEOH DQG
SUXGHQW PHQ QRW OHJDO WHFKQLFLDQV DFW $V VXFK WKH
VWDQGDUGVDUHμQRWUHDGLO\RUHYHQXVHIXOO\UHGXFHGWRDQHDW
VHWRIOHJDOUXOHV¶´ $OWKRXJKWKHVWDQGDUGRIUHYLHZRQWKH
XOWLPDWHUHDVRQDEOHVXVSLFLRQLQTXLU\LVGHQRYRWKHGLVWULFW
FRXUW LV DW DQ LQVWLWXWLRQDO DGYDQWDJH KDYLQJ REVHUYHG WKH
WHVWLPRQ\ RI WKH ZLWQHVVHV DQG XQGHUVWDQGLQJ ORFDO
FRQGLWLRQVLQPDNLQJWKLVGHWHUPLQDWLRQ$FFRUGLQJO\³GXH
ZHLJKW´ VKRXOG EH JLYHQ WR WKH LQIHUHQFHV GUDZQ IURP WKH
IDFWVE\³UHVLGHQWMXGJHV´,GDW
$VDIRUPDOPDWWHUDWOHDVWLWDSSHDUVWKDWWKHGLVWULFWFRXUW
DSSURSULDWHO\HYDOXDWHGWKHWRWDOLW\RIWKHFLUFXPVWDQFHVLQ
PDNLQJLWVUHDVRQDEOHVXVSLFLRQGHWHUPLQDWLRQDQGGLGQRW
FRQWUDU\ WR WKH JRYHUQPHQW¶V VXJJHVWLRQ VLPSO\ KROG WKDW
HDFK RI WKH RIILFHUV¶ UHDVRQV VHULDWLP ZRXOG QRW SURYLGH
UHDVRQDEOHVXVSLFLRQ-$DW ³,QVXPWKH&RXUWFDQQRW

-- 7 of 8 --

8QLWHG6WDWHVY7RZQVHQGHWDO 1R
ILQG WKDW WKH IDFWRUV UHOLHG XSRQ E\ WKH *RYHUQPHQW
FRQVLGHUHG LQGLYLGXDOO\ RU WRJHWKHU HVWDEOLVKHG UHDVRQDEOH
VXVSLFLRQ´ 7KH8QLWHG6WDWHVHVVHQWLDOO\FRPPLWVWKH
VDPHIDOODF\IRUZKLFKLWFULWLFL]HVWKHGLVWULFWFRXUWE\FLWLQJ
WRXVFDVHDIWHUFDVHZKHUHHDFKRIWKHIDFWRUVRQZKLFKWKH
RIILFHUVLQWKLVFDVHFODLPHGWRUHO\KDVEHHQFRQVLGHUHGDV
SUREDWLYHRIWKHUHDVRQDEOHVXVSLFLRQEXWLQWKHFRQWH[WRI
RWKHUIDFWRUVQRWSUHVHQWLQWKLVFDVH7KH6XSUHPH&RXUWKDV
UHFRJQL]HG WKDW LQ WKH FRXUVH RI DGMXGLFDWLQJ ³UHDVRQDEOH
VXVSLFLRQ´ ³RQH GHWHUPLQDWLRQ ZLOO VHOGRP EH D XVHIXO
μSUHFHGHQW¶IRUDQRWKHU´,OOLQRLVY*DWHV86
Q :H DUH FKDUJHG WR GHWHUPLQH ZKHWKHU WKH
FRPELQDWLRQRIIDFWRUVFRQVLGHUHGE\WKHRIILFHULVVXIILFLHQW
IRUUHDVRQDEOHVXVSLFLRQ:HFRQVLGHUFKURQRORJLFDOO\WKH
IDFWRUVFLWHGE\WKHRIILFHUVEHORZ
)LUVWWKHRIILFHUVFODLPHGWKDWWKHGHIHQGDQW¶VEHKDYLRUDW
WKHFDUZDVXQXVXDO7RZQVHQGLPPHGLDWHO\UDLVHGKLVKDQGV
LQWKHDLUDVWKHRIILFHUVDSSURDFKHGWKHFDU<HWWKHGLVWULFW
FRXUWQRWHGWKDW2IILFHU(FNKDGRQO\WHVWLILHGWKDWKHIRXQG
WKHKDQGVUDLVHGLQWKHDLUXQXVXDODQGGLGQRWRIIHUWHVWLPRQ\
WKDW LQ KLV H[SHULHQFH VXFK DQ DFWLRQ LV OLQNHG WR PRUH
H[WHQVLYH FULPLQDO DFWLYLW\ 2XU UHYLHZ RI WKH UHFRUG
LQGLFDWHV WKDW WKH FRXUW ZDV FRUUHFW WR ILQG WKLV IDFWRU
XQUHYHDOLQJ RI UHDVRQDEOH VXVSLFLRQ LQ WKH DEVHQFH RI
WHVWLPRQ\DERXWWKHDFWLYLW\¶VOLQNDJHWRFULPLQDOFRQGXFW
7KH RIILFHUV DOVR FODLPHG WKDW 7RZQVHQG ZDV XQXVXDOO\
FRRSHUDWLYHZKHQWKHFDUZDVLQLWLDOO\VWRSSHG7RZQVHQG
KDG KLV OLFHQVH UHJLVWUDWLRQ DQG SURRI RI LQVXUDQFH UHDG\
ZKHQ (FN DSSURDFKHG WKH FDU 0RUHRYHU 7RZQVHQG
YROXQWHHUHGWKDWKHKDGEHHQWUDYHOLQJDW03+DIWHUWKH
RIILFHU VDLG WKDW KH KDG EHHQ FORFNHG DW 03+ (FN
WHVWLILHGWKDWGULYHUVW\SLFDOO\OLHDERXWWKHLUVSHHGRUDWOHDVW
GR QRW FRQIHVV WR D KLJKHU VSHHG DQG WKDW 7RZQVHQG¶V
FKDULWDEOHVWLSXODWLRQZDVUHIOHFWLYHRIVRPHRQHZKRZDQWHG
TXLFNO\ WR WHUPLQDWH KLV LQWHUDFWLRQ ZLWK WKH SROLFH 7KH
JRYHUQPHQWGRHVQRWDSSHDUHYHQWRUDLVHWKHVLJQLILFDQFHRI
WKLV IDFWRU LQ DUJXLQJ WKDW WKH GLVWULFW FRXUW HUUHG 7R WKH
H[WHQWWKDWIDFWRULVUDLVHGWKHGLVWULFWFRXUWGLGQRWILQG(FN¶V
1R 8QLWHG6WDWHVY7RZQVHQGHWDO
VWDWHPHQW UHJDUGLQJ WKH VLJQLILFDQFH RI WKH FRRSHUDWLRQ
FUHGLEOH 7KLV FUHGLELOLW\ ILQGLQJ E\ WKH GLVWULFW FRXUW LV
HQWLWOHG WR VXEVWDQWLDO GHIHUHQFH 7KH GLVWULFW FRXUW DOVR
VXJJHVWHGWKDWPDQ\GULYHUVVWRSSHGDW$0ZRXOGVHHN
TXLFNO\WRHQGWKHVWRSE\FRRSHUDWLQJ7KHGLVWULFWFRXUW¶V
EHKDYLRUDO SUHGLFWLRQ LV QRW HUURQHRXV 7RZQVHQG¶V
FRRSHUDWLRQ DSSHDUV D YHU\ ZHDN LQGLFDWRU RI FULPLQDO
FRQGXFWLQGHHG
6HFRQGWKHRIILFHUVFODLPHGWKDWWKHGHIHQGDQWVSURGXFHG
GXELRXVWUDYHOSODQV$FFRUGLQJWRWKHRIILFHUV7RZQVHQG
DQG*UHHQFODLPHGWKDWWKH\ZHUHWUDYHOLQJIURP&KLFDJRWR
&ROXPEXVWRYLVLW7RZQVHQG¶VVLVWHU$FFRUGLQJWR2IILFHU
(FNWKHWLPHRIWKHVWRSDQGWKHGHIHQGDQWV¶DSSUR[LPDWH
VSHHGZRXOGKDYHSXW7RZQVHQGLQ&ROXPEXVEHWZHHQ
DQG $0 7RZQVHQG DOVR GLG QRW NQRZ KLV VLVWHU¶V
DGGUHVVEXWFODLPHGWKDWKHKDGSODQQHGWRFDOOKHURQFHKH
UHDFKHG&ROXPEXV7RZQVHQG¶VSODQVZHUHVRLPSUREDEOHWR
EH OLNHO\ IDOVH DQG DWWHPSWV WR KLGH FULPLQDO SODQV (FN
WHVWLILHG
7KHJRYHUQPHQWDUJXHVWKDWZHKDYHUHSHDWHGO\UHFRJQL]HG
WKDWO\LQJDERXWWUDYHOSODQVFDQIRUPWKHEDVLVIRUUHDVRQDEOH
VXVSLFLRQ$QGWKHJRYHUQPHQWLVXQGRXEWHGO\FRUUHFW,Q
8QLWHG6WDWHVY+LOO)G WK&LU WKLVFRXUW
GHWHUPLQHGWKDWWKHGHIHQGDQWV¶IDUIHWFKHGVWRU\DERXWWKH
UHDVRQIRUWKHLUMRXUQH\ZDVJURXQGVIRUUHDVRQDEOHVXVSLFLRQ
7KHUH WKH GHIHQGDQWV FODLPHG WR KDYH EHHQ DVVLVWLQJ WKHLU
VLVWHUZKRKDGEHHQWUDQVIHUUHGE\WKHPLOLWDU\WRPRYHKHU
EHORQJLQJVLQWKH8+DXOWKDWWKH\ZHUHGULYLQJ,GDW
$VLWWXUQVRXWWKHWUXFNZDVIXOO RI FRFDLQH7KHRIILFHU
WHVWLILHG WKDW LW ZDV KLV XQGHUVWDQGLQJ WKDW WKH PLOLWDU\
W\SLFDOO\PRYHGLWVPHPEHUVLQWKHHYHQWRIDWUDQVIHU,ELG
0RUHLPSRUWDQWLQWKDWFDVHZDVWKDWWKHSDVVHQJHUVRIWKHFDU
WROG LQFRQVLVWHQW VWRULHV UHJDUGLQJ WKH SXUSRVH RI WKH WULS
,ELG6HHDOVR8QLWHG6WDWHVY-RKQVRQ)G
WK&LU ZKHUHGRXEWUHJDUGLQJH[SUHVVHGWUDYHOSODQV
ZDVEROVWHUHGE\SDVVHQJHUV¶LQFRQVLVWHQWVWDWHPHQWV ,QWKLV
FDVHERWKRIWKHGHIHQGDQWVFODLPHGWKDWWKH\ZHUHWUDYHOLQJ
WR &ROXPEXV WR YLVLW 7RZQVHQG¶V VLVWHU 0RUHRYHU WKH

-- 8 of 8 --