7KH +RQRUDEOH -RVHSK 0 +RRG 8QLWHG 6WDWHV 'LVWULFW -XGJH IRU WKH
(DVWHUQ 'LVWULFW RI .HQWXFN\ VLWWLQJ E\ GHVLJQDWLRQ
5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
3XUVXDQW WR 6L[WK &LUFXLW 5XOH
(/(&7521,& &,7$7,21 )(' $SS $ WK &LU
)LOH 1DPH DD
81,7('67$7(6&28572)$33($/6
)257+(6,;7+&,5&8,7
BBBBBBBBBBBBBBBBB
81,7(' 67$7(6 2) $0(5,&$
3ODLQWLII$SSHOOHH
Y
0$5/21 5(('
'HIHQGDQW$SSHOODQW
;!
1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&LQFLQQDWL
1R²+HUPDQ-:HEHU'LVWULFW-XGJH
$UJXHG$SULO
'HFLGHGDQG)LOHG-XQH
%HIRUH1255,6DQG*,/0$1&LUFXLW-XGJHV+22'
'LVWULFW-XGJH
BBBBBBBBBBBBBBBBB
&2816(/
$5*8('5LFKDUG:6PLWK0RQDKDQ2)),&(2)7+(
)('(5$/ 38%/,& '()(1'(5 &LQFLQQDWL 2KLR IRU
$SSHOODQW 7LPRWK\ ' 2DNOH\ $66,67$17 81,7('
-- 1 of 10 --
8QLWHG6WDWHVY5HHG 1R
67$7(6 $77251(< &LQFLQQDWL 2KLR IRU $SSHOOHH
21%5,()5LFKDUG:6PLWK0RQDKDQ2)),&(2)7+(
)('(5$/ 38%/,& '()(1'(5 &LQFLQQDWL 2KLR IRU
$SSHOODQW 7LPRWK\ ' 2DNOH\ $66,67$17 81,7('
67$7(6$77251(<&LQFLQQDWL2KLRIRU$SSHOOHH
+22''-GHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQZKLFK
1255,6 - MRLQHG *,/0$1 - SS GHOLYHUHG D
VHSDUDWHGLVVHQWLQJRSLQLRQ
BBBBBBBBBBBBBBBBBBBBB
$0(1'('23,1,21
BBBBBBBBBBBBBBBBBBBBB
-26(3+ 0 +22' 'LVWULFW -XGJH 2Q 'HFHPEHU
0DUORQ5HHGHQWHUHGDFRQGLWLRQDOJXLOW\SOHDWRRQH
FRXQWRISRVVHVVLRQZLWKWKHLQWHQWWRGLVWULEXWHFUDFNFRFDLQH
SXUVXDQWWR86& D $VDUHVXOWRIKLVSOHDWKH
GLVWULFW FRXUW VHQWHQFHG 5HHG WR QLQHW\WZR PRQWKV
LQFDUFHUDWLRQZLWKDWKUHH\HDUSHULRGRIVXSHUYLVHGUHOHDVH
DQG D ILQH RI ZLWK D VSHFLDO DVVHVVPHQW RI
+DYLQJ UHVHUYHG KLV ULJKW WR DSSHDO WKH VHDUFK DQG VHL]XUH
LVVXHLQKLVFDVH5HHGILOHGDWLPHO\DSSHDORIWKHGLVWULFW
FRXUW¶VGHFLVLRQWRGHQ\KLVPRWLRQWRVXSSUHVVWKHQLQHWHHQ
LQGLYLGXDOO\ZUDSSHGFUDFNFRFDLQHURFNVIRXQGLQD)ULWR/D\
EDJRQ5HHG¶VSHUVRQ7KLVDSSHDOVSHFLILFDOO\FKDOOHQJHVWKH
GLVWULFW FRXUW¶V ILQGLQJ WKDW SUREDEOH FDXVH IRU KLV DUUHVW
H[LVWHG
,)DFWXDO%DFNJURXQG
7KH HYHQWV OHDGLQJ XS WR 5HHG¶V DUUHVW DUH DV IROORZV
2IILFHUV-RH\7KRPSVRQDQG5REHUW+RUWRQREVHUYHG5HHG
RQWKHVLGHZDONSUHPLVHVRIDKRXVLQJGHYHORSPHQWNQRZQDV
WKH %XWOHU 0HWURSROLWDQ +RXVLQJ $XWKRULW\ KHUHLQDIWHU
³%0+$´ 7KH RIILFHUV NQHZ 5HHG E\ VLJKW IURP SULRU
FRQWDFWZLWKKLP2IILFHU7KRPSVRQKDGSHUVRQDOO\ZDUQHG
5HHGWRVWD\DZD\IURPWKH%0+$SURSHUW\RQDSUHYLRXV
RFFDVLRQ DV 5HHG ZDV QRW D UHVLGHQW RI WKH KRXVLQJ
GHYHORSPHQW6LQFH%0+$¶VSUHPLVHVFRQWDLQHGWZHQW\VL[
-- 2 of 10 --
1R 8QLWHG6WDWHVY5HHG
³1R7UHVSDVVLQJ´VLJQVWKHRIILFHUVDSSURDFKHG5HHGIRUWKH
SXUSRVHRIDUUHVWLQJKLPIRUFULPLQDOWUHVSDVVSXUVXDQWWRD
+DPLOWRQ2KLRRUGLQDQFH
:KHQ5HHGDWWHPSWHGWRTXLFNO\ZDONDZD\WKHRIILFHUV
VXEGXHGKLP2IILFHU7KRPSVRQWKHQEHJDQD³SDWGRZQ´RI
5HHGZKRVWDUWHGWRWXUQKLVERG\DZD\5HHGWKHQUHPRYHG
WKH)ULWR/D\EDJFRQWDLQLQJWKHFUDFNFRFDLQHDQGDWWHPSWHG
WR WRVV LW WRZDUG D IULHQG VWDQGLQJ QHDUE\ ZKLOH
VLPXOWDQHRXVO\ VWDWLQJ WKDW KH GLG QRW ZDQW WR JLYH XS KLV
³ZHHG´ $ IHPDOH SLFNHG XS WKH EDJ ZKHUHXSRQ 2IILFHU
7KRPSVRQLPPHGLDWHO\UHWULHYHGLWIURPKHU5HHGZDVWKHQ
WDNHQWRWKH+DPLOWRQ3ROLFH'HSDUWPHQWIRUERRNLQJ
3ULRU WR WULDO 5HHG ILOHG D PRWLRQ WR VXSSUHVV WKH FUDFN
FRFDLQH7KHGLVWULFWFRXUWGHWHUPLQHGWKDWSUREDEOHFDXVH
H[LVWHGLQ5HHG¶VDUUHVWDQGGHQLHGVDLGPRWLRQRQWKHEDVLV
WKDWWKHHYLGHQFHZDVVXEVHTXHQWO\REWDLQHGE\WKHRIILFHUV
LQFLGHQWDO WR WKH DUUHVW ,Q KLV DSSHDO 5HHG DUJXHV WKDW
SUREDEOH FDXVH ZDV ODFNLQJ WKHUHE\ UHQGHULQJ KLV DUUHVW
XQODZIXO5HHGIXUWKHUDUJXHVWKDWDOOHYLGHQFHREWDLQHGDVD
UHVXOWRIWKLVXQODZIXODUUHVWVKRXOGKDYHEHHQVXSSUHVVHGE\
WKHGLVWULFWFRXUW
,,$QDO\VLV
³,Q UHYLHZLQJ D GLVWULFW FRXUW¶V GHWHUPLQDWLRQV RQ
VXSSUHVVLRQTXHVWLRQVDGLVWULFWFRXUW¶VIDFWXDOILQGLQJVDUH
DFFHSWHG XQOHVV WKH\ DUH FOHDUO\ HUURQHRXV KRZHYHU WKH
GLVWULFW FRXUW¶V DSSOLFDWLRQ RI ODZ WR WKH IDFWV VXFK DV D
ILQGLQJ RI SUREDEOH FDXVH LV UHYLHZHG GH QRYR´ 8QLWHG
6WDWHVY7KRPDV)G WK&LU
7KHWKUHVKROGIRUSUREDEOHFDXVHLVEDVHGXSRQ³μIDFWXDO
DQG SUDFWLFDO FRQVLGHUDWLRQV RI HYHU\ GD\ OLIH¶ >WKDW@ FRXOG
OHDGDUHDVRQDEOHSHUVRQWREHOLHYHWKDWWKHUHLVDSUREDELOLW\
WKDWDQLOOHJDODFWKDVRFFXUUHGRULVDERXWWRRFFXU´8QLWHG
6WDWHVY6WULFNODQG)G WK&LU FLWLQJ
,OOLQRLVY*DWHV86 2IILFHUVDUHQRW
UHTXLUHGWRUXOHRXWHYHU\SRVVLEOHH[SODQDWLRQRWKHUWKDQD
VXVSHFW¶V LOOHJDO FRQGXFW EHIRUH PDNLQJ DQ DUUHVW 6HH
-- 3 of 10 --
8QLWHG6WDWHVY5HHG 1R
6WULFNODQG)GDW+RZHYHUDQDUUHVWLQJRIILFHU
PXVWEHDEOHWRDUWLFXODWH³FRQFUHWH IDFWV´IURPZKLFKWKH
³WRWDOLW\ RI WKH FLUFXPVWDQFHV´ LQGLFDWHV WKDW DQ DUUHVW LV
ZDUUDQWHG,GDW*DWHV86DW 7KHGHQLDO
RI 5HHG¶V VXSSUHVVLRQ PRWLRQ ZDV EDVHG RQ WKH GLVWULFW
FRXUW¶V ILQGLQJ RI SUREDEOH FDXVH LQ 5HHG¶V DUUHVW 5HHG
DUJXHVWKDWSUREDEOHFDXVHIRUFULPLQDOWUHVSDVVZDVODFNLQJ
XQGHU +DPLOWRQ FLW\ RUGLQDQFH 6DLG RUGLQDQFH
SURYLGHVLQSHUWLQHQWSDUW
D 1RSHUVRQZLWKRXWSULYLOHJHWRGRVRVKDOOGRDQ\RI
WKHIROORZLQJ
.QRZLQJO\HQWHURUUHPDLQRQWKHODQGRUSUHPLVHVRI
DQRWKHU
.QRZLQJO\HQWHURUUHPDLQRQWKHODQGRUSUHPLVHVRI
DQRWKHUWKHXVHRIZKLFKLVODZIXOO\UHVWULFWHGWRFHUWDLQ
SHUVRQVSXUSRVHVPRGHVRUKRXUVZKHQWKHRIIHQGHU
NQRZV KH LV LQ YLRODWLRQ RI DQ\ VXFK UHVWULFWLRQ RU LV
UHFNOHVVLQWKDWUHJDUG
5HFNOHVVO\HQWHURUUHPDLQRQWKHODQGRUSUHPLVHVRI
DQRWKHUDVWRZKLFKQRWLFHDJDLQVWXQDXWKRUL]HGDFFHVV
RU SUHVHQFH LV JLYHQ E\ DFWXDO FRPPXQLFDWLRQ WR WKH
RIIHQGHURULQDPDQQHUSUHVFULEHGE\ODZRUE\SRVWLQJ
LQ D PDQQHU UHDVRQDEO\ FDOFXODWHG WR FRPH WR WKH
DWWHQWLRQ RI SRWHQWLDO LQWUXGHUV RU E\ IHQFLQJ RU RWKHU
HQFORVXUHPDQLIHVWO\GHVLJQHGWRUHVWULFWDFFHVV
%HLQJRQWKHODQGRUSUHPLVHVRIDQRWKHUQHJOLJHQWO\
IDLORUUHIXVHWROHDYHXSRQEHLQJQRWLILHGWRGRVRE\WKH
RZQHURURFFXSDQWRUWKHDJHQWRUVHUYDQWRIHLWKHU
G :KRHYHUYLRODWHGWKLVVHFWLRQLVJXLOW\RIFULPLQDO
WUHVSDVVDPLVGHPHDQRURIWKHIRXUWKGHJUHH
7KHRIILFHUVEDVHGWKHLUILQGLQJRISUREDEOHFDXVHWRDUUHVW
5HHGIRUFULPLQDOWUHVSDVVRQWKHIROORZLQJIDFWRUV 5HHG
ZDV JLYHQ SULRU ZDUQLQJ QRW WR HQWHU %0+$ SURSHUW\ E\
2IILFHU 7KRPSVRQ 5HHG ZDV REVHUYHG RQ %0+$
SURSHUW\ 5HHGZDVQRWDUHVLGHQWRIWKH%0+$KRXVLQJ
SURMHFW WKHUH ZHUH WZHQW\VL[ ³1R 7UHVSDVVLQJ´ VLJQV
SRVWHGWKURXJKRXWWKH%0+$SURSHUW\SURYLGLQJDGHTXDWH
1R 8QLWHG6WDWHVY5HHG
SUREDEOHFDXVH&RQVHTXHQWO\WKHRIILFHUVKDGWKHULJKWWR
VWRS5HHGXQGHU7HUU\DQGDVNKLPZKHWKHUKHOLYHGRQWKH
SURSHUW\RUZDVYLVLWLQJDUHVLGHQW%XWWKHRIILFHUVKDGQR
ULJKWWRLPPHGLDWHO\DUUHVWKLPIRUFULPLQDOWUHVSDVV
, ZRXOG WKHUHIRUH VXSSUHVV WKH HYLGHQFH RI WKH FUDFN
FRFDLQHDQGUHYHUVHWKHMXGJPHQWRIWKHGLVWULFWFRXUW
-- 4 of 10 --
8QLWHG6WDWHVY5HHG 1R
0RUHRYHU , EHOLHYH WKDW P\ YLHZ LV FRQVLVWHQW ZLWK WKH
VSLULWRIWKH6XSUHPH&RXUW¶VUHFHQWXQDQLPRXVKROGLQJLQ
)ORULGDY-/BB86BB6&W ,Q-/
DQDQRQ\PRXVFDOOHUWHOHSKRQHGWKHSROLFHWRLQIRUPWKHP
WKDWWKH\VKRXOGZDWFKIRUDEODFN\RXWKLQDSODLGVKLUWDWD
SDUWLFXODU EXV VWRS EHFDXVH KH ZDV FDUU\LQJ D JXQ 6L[
PLQXWHVODWHURIILFHUVZHQWWRWKDWSDUWLFXODUEXVVWRS DQG
IRXQGD\RXWKPHHWLQJWKHFDOOHU¶VGHVFULSWLRQ7KHRIILFHUV
VWRSSHG DQG IULVNHG WKH VXVSHFW XQFRYHULQJ D ILUHDUP ,Q
FRQFOXGLQJ WKDW WKH RIILFHUV GLG QRW KDYH D UHDVRQDEOH
VXVSLFLRQWRVWRSWKH\RXWKDQGWKDWHYLGHQFHRIWKHILUHDUP
VKRXOG EH VXSSUHVVHG WKH 6XSUHPH &RXUW FRPPHQWHG WKDW
³WKH )RXUWK $PHQGPHQW LV QRW VR HDVLO\ VDWLVILHG´ ,G DW
,IWKHRIILFHUVLQ-/GLGQRWKDYHDUHDVRQDEOHEDVLVWR
FRQGXFWHYHQD7HUU\VWRSXQGHUWKHFLUFXPVWDQFHVRIWKDW
FDVHWKHQ,FDQQRWIDWKRPKRZWKHRIILFHUVLQWKHSUHVHQWFDVH
KDYHVDWLVILHGWKH)RXUWK$PHQGPHQW¶VKLJKHUSUREDEOHFDXVH
VWDQGDUGLQDUUHVWLQJ5HHG
)LQDOO\,QRWHWKHJRYHUQPHQW¶VDOWHUQDWLYHDUJXPHQWVWKDW
WKHFUDFNFRFDLQHVKRXOGQRWEHVXSSUHVVHGHLWKHUEHFDXVH
LWZDVLQSODLQYLHZRU LWZDVDEDQGRQHGE\5HHG7KHVH
DUJXPHQWVKDYHOLWWOHPHULW%DVHGRQP\YLHZWKDWWKHDUUHVW
RI 5HHG ZDV LOOHJDO DQG EHFDXVH WKH LOOHJDO DUUHVW FDXVHG
5HHGWRUHPRYHWKH)ULWR/D\EDJIURPKLVSRFNHWDQGWKURZ
LWWRZDUGDIULHQGVWDQGLQJQHDUE\WKHHYLGHQFHIURPWKHEDJ
LV LQDGPLVVLEOH XQGHU WKH ³IUXLWV RI WKH SRLVRQRXV WUHH´
GRFWULQH 6HH :RQJ 6XQ Y 8QLWHG 6WDWHV 86
H[SODLQLQJWKHGRFWULQH 8QLWHG6WDWHVY6LPSVRQ
) 6XSS 6' ,QG KROGLQJ WKDW LI
WKHUHLVDFDXVDOQH[XVEHWZHHQWKHSROLFH¶VPLVFRQGXFWDQG
WKH³DEDQGRQPHQW´WKHQWKHHYLGHQFHPXVWEHVXSSUHVVHG
8QLWHG6WDWHVY)RVWHU)6XSS ''&
³>$@Q DEDQGRQPHQW WKDW LV WKH SURGXFW RI SROLFH
PLVFRQGXFWLVQRWYROXQWDU\DQGFDQQRWWKHUHIRUHYLWLDWHWKH
WDLQWRIDQLOOHJDOGHWHQWLRQ´
,QVXPPDU\WKHFLUFXPVWDQFHVSUHVHQWHGE\WKLVFDVHJDYH
WKH RIILFHUV QRWKLQJ PRUH WKDQ D UHDVRQDEOH VXVSLFLRQ WR
EHOLHYH WKDW 5HHG ZDV WUHVSDVVLQJ 7KLV LV IDU VKRUW RI
1R 8QLWHG6WDWHVY5HHG
$FFRUGLQJ WR WKH GLVVHQW ³WKH IDFW WKDW 5HHG VWDUWHG WR ZDON DZD\
ZKHQ WKH RIILFHUV DSSURDFKHG PD\ UDLVH D VXVSLFLRQ WKDW KH ZDV HQJDJHG
LQ DQ\ RQH RI D PXOWLWXGH RI LPSURSHU DFWLYLWLHV´ :KLOH WKDW PD\ EH WKH
RIILFHUV ZHUH HQWLWOHG WR LQIHU WKDW KH ZDV ZDONLQJ DZD\ EHFDXVH KH NQHZ
KH ZDV QRW SULYLOHJHG WR EH WKHUH 7KH\ ZHUH QRW UHTXLUHG WR HOLPLQDWH DOO
RWKHU UHDVRQDEOH LQIHUHQFHV 6HH 6WULFNODQG )G WK &LU
VWDWLQJ ³>W@R ILQG SUREDEOH FDXVH WKH ODZ GRHV QRW UHTXLUH WKDW ZH
UXOH RXW HYHU\ FRQFHLYDEOH H[SODQDWLRQ RWKHU WKDQ D VXVSHFW¶V LOOHJDO
FRQGXFW´
QRWLFH 5HHGZDONHGDZD\XSRQWKHODZIXODSSURDFKRIWKH
RIILFHUV7KHVHIDFWRUVPXVWEHPHDVXUHGXSWRWKHWLPHDW
ZKLFK5HHGWKRXJKWKHZDVQRWUHDVRQDEO\³IUHHWROHDYH´
8QLWHG6WDWHVY0HQGHQKDOO86 7KH
IDFWRUVGRQRWKDYHWRHVWDEOLVKDSULPDIDFLHFDVHIRUFULPLQDO
WUHVSDVVKRZHYHUVDLGIDFWRUVPXVWEHVXIILFLHQWWRLQGLFDWH
WR D UHDVRQDEOHSHUVRQWKDWDQLOOHJDOLW\KDVRFFXUUHGRU LV
DERXWWRRFFXU6HH6WULFNODQG)GDW
:KHUH SUREDEOH FDXVH H[LVWV ³>D@ SROLFH RIILFHU LV
SHUPLWWHG WR PDNH DQ DUUHVW ZLWKRXW D ZDUUDQW IRU D
PLVGHPHDQRUFRPPLWWHGLQKLVSUHVHQFH´8QLWHG6WDWHVY
6PLWK)G WK&LU 7KH&RXUWILQGV
WKDW WKHVH ILYH IDFWRUV FRQVWLWXWH WKH OHYHO RI HYLGHQFH
QHFHVVDU\WRHVWDEOLVKSUREDEOHFDXVHIRU5HHG¶VDUUHVW$OO
ILYHIDFWRUVH[LVWHGGXULQJWKHWLPHLQZKLFK5HHGZDVIUHHWR
OHDYH $ UHDVRQDEOH RIILFHU LQ WKH SRVLWLRQ RI HLWKHU
7KRPSVRQRU+RUWRQFRXOGFRQFOXGHIURPWKHWRWDOLW\RIWKH
FLUFXPVWDQFHVWKDWSUREDEOHFDXVHGH[LVWHGWRDUUHVW5HHGIRU
FULPLQDOWUHVSDVV$OWKRXJK5HHGKDVVHWIRUWKQRFRQWUROOLQJ
DXWKRULW\LQGLFDWLQJWKDWWKHRIILFHUVPXVWFRQFOXGHSULRUWR
WKHDUUHVWZKHWKHU5HHGHQMR\HGWKHSULYLOHJHRIHQWHULQJRU
UHPDLQLQJ RQ %0+$ SURSHUW\ ZH DUH PLQGIXO RI WKH
GLVFXVVLRQGXULQJRUDODUJXPHQWWKDW:DVKLQJWRQY%ODLU
3G :DVK&W$SS ILQGVSUREDEOHFDXVHWREH
ODFNLQJ LQ FLUFXPVWDQFHV LQ ZKLFK DQ RIILFHU KDG QR
NQRZOHGJHRIWKHH[LVWHQFHRISULYLOHJHSULRUWRDQDUUHVWIRU
FULPLQDOWUHVSDVV+RZHYHUZHEHOLHYHWKH:DVKLQJWRQVWDWH
FRXUW GHFLVLRQ ZDV EDVHG XSRQ D UHTXLUHPHQW QHJDWLQJ WKH
DIILUPDWLYHGHIHQVHRISULYLOHJHSULRUWRDUUHVWLQJDSHUVRQIRU
-- 5 of 10 --
8QLWHG6WDWHVY5HHG 1R
WUHVSDVV7KLV&LUFXLWGRHVQRWUHTXLUHVXFKDQDGGHGLQTXLU\
WRWKHSUREDEOHFDXVHGHWHUPLQDWLRQ
,WLVDUJXHGWKDWWKH6XSUHPH&RXUW¶VGHFLVLRQRI)ORULGDY
-/BB86BB6&W ZKLFKKHOGWKDWDQ
DQRQ\PRXVWLSZLWKRXWPRUHLVLQVXIILFLHQWWRMXVWLI\DVWRS
DQGIULVNE\DQRIILFHUZDUUDQWVUHYHUVDORIWKHGLVWULFWFRXUW¶V
GHQLDORIWKHPRWLRQWRVXSSUHVV:HGLVDJUHH
7KHRIILFHUV¶GHFLVLRQWRVWRSWKHGHIHQGDQWLQ-/DQGIULVN
KLPIRUDFRQFHDOHGZHDSRQZDVEDVHG³VROHO\RQDFDOOPDGH
IURP DQ XQNQRZQ ORFDWLRQ E\ DQ XQNQRZQ FDOOHU´ ,G DW
+RZHYHU WKH GHFLVLRQ E\ 2IILFHUV 7KRPSVRQ DQG
+RUWRQWRVWRS5HHGIRUWUHVSDVVLQJZDVEDVHGRQWKHILYH
IDFWRUV LGHQWLILHG DERYH 7KHVH ILYH IDFWRUV XQOLNH DQ
DQRQ\PRXVWLSODFNLQJDQ\LQGLFLDRIUHOLDELOLW\SURYLGHGWKH
RIILFHUVZLWKSUREDEOHFDXVHWRVWRSDQGSDWGRZQ5HHG)RU
WKHVHUHDVRQV)ORULGDY-/LVGLVWLQJXLVKDEOHIURPWKHIDFWV
RIWKHFDVHVXEMXGLFH
,,,&RQFOXVLRQ
7KHUHLVQRLQGLFDWLRQWKDWWKHGLVWULFWFRXUW¶VILQGLQJVRI
IDFW DUH HUURQHRXV $ UHYLHZ RI WKH ODZ DSSOLHG WR VDLG
ILQGLQJVRIIDFWOHDGVWRDGHWHUPLQDWLRQWKDWWKHGLVWULFWFRXUW
GLGQRWHUULQUHIXVLQJWRVXSSUHVVWKHFUDFNFRFDLQHSRVVHVVHG
E\ 5HHG RQ WKH QLJKW RI KLV DUUHVW 6DLG HYLGHQFH ZDV
VXEVHTXHQWO\ REWDLQHG E\ 2IILFHUV 7KRPSVRQ DQG +RUWRQ
LQFLGHQWDO WR 5HHG¶V DUUHVW $FFRUGLQJO\ ZH $)),50
5HHG¶VFRQYLFWLRQDQGVHQWHQFH
1R 8QLWHG6WDWHVY5HHG
4 $OOULJKW6R\RXKDGDSSURDFKHGDORQJZLWK2IILFHU
7KRPSVRQWRSDWGRZQVRPHLQGLYLGXDOVWKDW\RX
VDZVWDQGLQJRQ%0+$SURSHUW\LVWKDWFRUUHFW"
$ ,JUDEEHGP\SDUW\WRSDWKLPGRZQ
4 $QG QRZKRZPDQ\SHRSOHDOWRJHWKHUZHUHWKHUH
ZKHQ\RXDSSURDFKHGWKDWVFHQH"
$ ,QLWLDOO\ WKHUH ZHUH DSSUR[LPDWHO\ IRXU , EHOLHYH
IRXURWKHUSDUWLHV
4 $QGZKHQ\RXDSSURDFKHGWKDWVFHQHZDVLW\RXU
LQWHQWLRQWRVHDUFKDOOIRXURIWKRVHSHRSOH"
$ :H ZHUH JRLQJ WR SLFN XS 0U 5HHG IRU VXUH ,
FRXOGQRWVWDWHZKDWZHZHUHJRLQJWRGRZLWKWKH
RWKHUV 7KH\ VWDUWHG WR ZDON DZD\ DV ZH
DSSURDFKHG
4 6RLIWKH\KDGQ¶WZDONHGDZD\\RXZRXOGKDYHZHQW
DKHDGDQGGRQHDSDWGRZQRQWKRVHSHRSOHDOVRLV
WKDWULJKW"
$ 3UREDEO\DIWHUZHJRW0U5HHGLQWRFXVWRG\\HV
4 $QG WKDW¶V HYHQ WKRXJK \RX KDG QR LGHD ZKHWKHU
WKRVHRWKHUWZRSHRSOHZHUHDFWXDOO\WUHVSDVVLQJRU
QRWLVWKDWULJKW"
$ ,GLGQ¶WJHWWRVHHZKRWKH\ZHUHVR,¶PQRWVXUH
4 6R\RXKDGQRLGHDZKHWKHUWKH\ZRXOGKDYHEHHQ
WUHVSDVVLQJRUQRWLVWKDWULJKW±
$ 7KHWZRSHRSOH
4 ±EHFDXVHWKH\FRXOGKDYHEHHQUHVLGHQWV"
$ 7KDW¶VIDLUWRVD\
7KH DERYH WHVWLPRQ\ IURP WKH DUUHVWLQJ RIILFHUV FOHDUO\
GHPRQVWUDWHVWKDWWKH\WKRXJKWLWLUUHOHYDQWZKHWKHURUQRW
5HHGZDVSULYLOHJHGWREHRQWKHSURSHUW\,QRWKHUZRUGV
WKHRIILFHUVDGPLWWKDWDWWKHWLPHRIWKHDUUHVWWKH\GLGQRW
NQRZ ZKHWKHU 5HHG KDG UHFHQWO\ PRYHG LQWR WKH %0+$
SURSHUW\RUKDGEHHQLQYLWHGWKHUHE\RWKHUV7KH\GHFLGHGWR
DUUHVWKLPIRUFULPLQDOWUHVSDVVDVVRRQDVWKH\VSRWWHGKLP
QRTXHVWLRQVDVNHG8QGHUWKHVHFLUFXPVWDQFHVWKHZLVGRP
RI %ODLU -RQHV DQG -DVRQ $OOHQ ' FULHV RXW IRU D UHVXOW
FRQWUDU\WRWKDWUHDFKHGE\WKHPDMRULW\
-- 6 of 10 --
8QLWHG6WDWHVY5HHG 1R
DGPLWWHGWKDWHYHQEHIRUHWKH\VDZ5HHGVWDUWWRZDONDZD\
WKH\KDGDOUHDG\GHFLGHGWRDUUHVWKLPIRUFULPLQDOWUHVSDVV
(YHQLIDOOILYHIDFWRUVDUHFRQVLGHUHGFROOHFWLYHO\WKH\DW
PRVWJDYHWKHRIILFHUVDUHDVRQDEOHVXVSLFLRQWKDW5HHGKDG
QR OHJLWLPDWH SXUSRVH IRU EHLQJ WKHUH 7KLV ZRXOG KDYH
MXVWLILHGVWRSSLQJ5HHGWRLQTXLUHDVWRZKHWKHUKHOLYHGRQ
%0+$¶VSURSHUW\RUZDVWKHUHE\LQYLWDWLRQ6HH7HUU\Y
2KLR86 :DVKLQJWRQY%ODLU3G
:DVK&W$SS 7KHRIILFHUVKRZHYHUPDGHQR
VXFKLQTXLU\
$W WKH VXSSUHVVLRQ KHDULQJ 2IILFHU 7KRPSVRQ JDYH WKH
IROORZLQJUHVSRQVHWRWKHJRYHUQPHQW¶VTXHVWLRQ
4 $QGGR\RXKDYHLQIRUPDWLRQDVWRZKHWKHURUQRW
0U 5HHG KDG SHUPLVVLRQ IURP WKH +RXVLQJ
$XWKRULW\WREHRQWKDWSURSHUW\"
$ 1R,GLGQRW
7KRPSVRQ DOVR PDGH WKH IROORZLQJ VWDWHPHQWV RQ FURVV
H[DPLQDWLRQ
4 'LG \RX ILQG RXW GXULQJ WKH FRXUVH RI \RXU
LQYHVWLJDWLRQWKRXJKWKDWKHGLGKDYHDJLUOIULHQG
WKHUHZKRKDG±KHKDGDFKLOGE\"
$ ,GRQ¶WUHFDOO,PHDQ,GRQ¶WUHPHPEHUKLPVD\LQJ
WKDW EXW LW¶V SRVVLEOH EXW LW ZRXOG KDYH EHHQ
LUUHOHYDQW
4 ,¶PVRUU\"
$ ,WZRXOGKDYHEHHQLUUHOHYDQWZKHWKHUKHZDV±KDG
DJLUOIULHQGRQWKHSURSHUW\
4 1RZ\RXZRXOGKDYHVWRSSHGKLPDQ\ZD\LVWKDW
ULJKW"
$ 7KDW¶VFRUUHFW+HZDVQ¶WZLWKKHUDWWKHWLPH
,QDGGLWLRQ2IILFHU+RUWRQWHVWLILHGDVIROORZVLQUHVSRQVH
WRTXHVWLRQVIURPWKHJRYHUQPHQW¶VDWWRUQH\
1R 8QLWHG6WDWHVY5HHG
BBBBBBBBBBBBBBBBB
',66(17
BBBBBBBBBBBBBBBBB
521$/'/((*,/0$1&LUFXLW -XGJHGLVVHQWLQJ,Q
DIILUPLQJ WKH GLVWULFW FRXUW¶V GHQLDO RI 5HHG¶V PRWLRQ WR
VXSSUHVVWKHPDMRULW\KROGVWKDWKHZDVOHJDOO\DUUHVWHGIRU
FULPLQDO WUHVSDVV HYHQ WKRXJK WKH SROLFH IDLOHG WR ILUVW
DVFHUWDLQZKHWKHU5HHGKDGDOHJLWLPDWHUHDVRQIRUEHLQJRQ
WKHSURSHUW\,UHVSHFWIXOO\GLVVHQWEHFDXVHLQP\YLHZWKH
SROLFHRIILFHUVDUUHVWHG5HHGZLWKRXWKDYLQJSUREDEOHFDXVH
WRGRVR
$OWKRXJKQRWFLWHGE\5HHG,KDYHIRXQGWKUHHFDVHVZLWK
IDFWVYHU\VLPLODUWRWKRVHEHIRUHXVWKDWDGGUHVVWKHLVVXHRI
SUREDEOHFDXVHLQUHODWLRQWRFULPLQDOWUHVSDVV,QHDFKFDVH
WKHFRXUWFRQFOXGHGWKDWWKHRIILFHUVPXVWKDYHSUREDEOHFDXVH
WR EHOLHYH WKDW WKH GHIHQGDQW ZDV RQ WKH SURSHUW\ ZLWKRXW
SULYLOHJHEHIRUHPDNLQJDQDUUHVW
7KH HDUOLHVW FDVH LV :DVKLQJWRQ Y %ODLU 3G
:DVK&W$SS )DFHGZLWKDQDOPRVWLGHQWLFDOIDFW
SDWWHUQWKH:DVKLQJWRQ&RXUWRI$SSHDOVKHOGDVIROORZV
2IILFHU:LOOLDPVVLPSO\GURYHXSWR%ODLUDQGRUGHUHG
KLPLQWRWKHSROLFHFUXLVHUZKHUHKHDUUHVWHGKLP+DG
2IILFHU:LOOLDPVWDNHQDPRPHQWWRDVN%ODLUZKHUHKH
ZDV JRLQJ DQG IRU ZKDW SXUSRVH KH FRXOG KDYH
GHWHUPLQHGZKHWKHU%ODLUZDVLQIDFWYLVLWLQJDIULHQGRU
ZDVWUHVSDVVLQJ%HFDXVHKHNQHZ%ODLUGLGQRWOLYHLQ
5R[EXU\9LOODJHKDGDGPRQLVKHG%ODLUQRWWRUHWXUQDQG
KDGDUUHVWHGKLPQHDUE\IRUDGUXJWUDQVDFWLRQ2IILFHU
:LOOLDPVKDGDQDUWLFXODEOHVXVSLFLRQWKDW%ODLUPLJKWEH
WUHVSDVVLQJRQ6HSWHPEHU%DVHGRQWKLVLQIRUPDWLRQ
2IILFHU:LOOLDPVFRXOGSURSHUO\VWRS%ODLUDVNKLPZK\
KH ZDV RQ WKH SUHPLVHV DQG LQYHVWLJDWH WR VHH LI KLV
SXUSRVHIRUEHLQJWKHUHZDVLQIDFWOHJLWLPDWH+RZHYHU
WKHIDFWWKDWWKHRIILFHUKDGWROG%ODLUQRWWRUHWXUQWRWKH
SUHPLVHV GRHV QRW LQ LWVHOI FUHDWH SUREDEOH FDXVH IRU
DUUHVWLQJKLPRQWKHFKDUJHRIFULPLQDOWUHVSDVV
-- 7 of 10 --
8QLWHG6WDWHVY5HHG 1R
,GDW FLWDWLRQRPLWWHG
7KHPDMRULW\DWWHPSWVWRGLVWLQJXLVK%ODLURQWKHIROORZLQJ
EDVLV
%ODLU ILQGV SUREDEOH FDXVH WR EH ODFNLQJ LQ
FLUFXPVWDQFHVLQZKLFKDQRIILFHUKDVQRNQRZOHGJHRI
WKHH[LVWHQFHRISULYLOHJHSULRUWRDQDUUHVWIRUFULPLQDO
WUHVSDVV +RZHYHU ZH EHOLHYH WKH :DVKLQJWRQ VWDWH
FRXUWGHFLVLRQZDVEDVHGXSRQDUHTXLUHPHQWQHJDWLQJ
WKHDIILUPDWLYHGHIHQVHRISULYLOHJHSULRUWRDUUHVWLQJD
SHUVRQIRUWUHVSDVV7KLV&LUFXLWGRHVQRWUHTXLUHVXFKDQ
DGGHGLQTXLU\WRWKHSUREDEOHFDXVHGHWHUPLQDWLRQ
, GR QRW EHOLHYH KRZHYHU WKDW %ODLU FDQ EH VR HDVLO\
GLVWLQJXLVKHG7KHRUGLQDQFHLQ%ODLUPDGHLWLOOHJDOIRUD
SHUVRQZKRLVQRWOLFHQVHGLQYLWHGRURWKHUZLVHSULYLOHJHGWR
HQWHURUUHPDLQRQSULYDWHSURSHUW\6HH%ODLU3GDW
'HFLGLQJ LI 2IILFHU :LOOLDPV KDG SUREDEOH FDXVH WR
EHOLHYHWKDW%ODLUZDVFRPPLWWLQJDFULPHWKXVGHSHQGHG³RQ
ZKHWKHUWKHFLUFXPVWDQFHVNQRZQWRWKHRIILFHULQGLFDWHGWKDW
%ODLUZDVQRWRQWKHSURSHUW\IRUOHJLWLPDWHSXUSRVHV´,GDW
$OWKRXJKWKH6WDWHRI:DVKLQJWRQSURYLGHVDQDIILUPDWLYH
GHIHQVHWRFULPLQDOWUHVSDVVLI³>W@KHDFWRUUHDVRQDEO\EHOLHYHG
WKDWWKHRZQHURIWKHSUHPLVHVZRXOGKDYHOLFHQVHGKLP
RUKHUWRHQWHURUUHPDLQ´VHH%ODLU3GDWWKDWZDV
QRWWKHIRFXVRIWKH%ODLUFRXUW¶VLQTXLU\,QVWHDGWKHFRXUW
IRFXVHGRQWKHRIILFHU¶VUHDVRQDEOHEHOLHIVQRWWKHDFWRU¶V
&RQWUDU\WRWKHPDMRULW\¶VDQDO\VLVWKH%ODLUFRXUWGLGQRW
UHTXLUHWKHVWDWHWRQHJDWHDQDIILUPDWLYHGHIHQVH:KDWLWGLG
UHTXLUHZDVDVKRZLQJWKDWWKHRIILFHUKDGSUREDEOHFDXVHWR
EHOLHYH WKDW WKH GHIHQGDQW ZDV RQ WKH SURSHUW\ ZLWKRXW D
OHJLWLPDWHSXUSRVHDWWKHWLPHRIKLVDUUHVW
7KHQH[WFDVHZLWKIDFWVYHU\VLPLODUWRWKRVHEHIRUHXVLV
-RQHVY&RPPRQZHDOWK6(G 9D&W$SS
,Q-RQHVDQRZQHURIDQDSDUWPHQWFRPSOH[ZKRKDGSRVWHG
³1R 7UHVSDVVLQJ´ VLJQV FRPSODLQHG WR WKH &LW\ RI
5LFKPRQG¶VSROLFHGHSDUWPHQWWKDWKHZDVKDYLQJSUREOHPV
1R 8QLWHG6WDWHVY5HHG
)LUVWRIDOOWKHIDFWWKDWRQRQHSULRURFFDVLRQ5HHGKDG
EHHQRUGHUHGRIIRI%0+$¶VSURSHUW\E\2IILFHU7KRPSVRQ
LQGLFDWHVDWPRVWWKDW5HHGPD\QRWKDYHEHHQRQWKHSURSHUW\
E\LQYLWDWLRQRQWKDWSDUWLFXODURFFDVLRQ2QWKHRWKHUKDQG
EHFDXVH 2IILFHU 7KRPSVRQ FRXOG QRW UHFDOO ZKHWKHU KLV
SUHYLRXVHQFRXQWHUZLWK5HHGZDVZHHNVRUPRQWKVHDUOLHU
5HHGFRXOGKDYHEHFDPHDUHVLGHQWLQWKHLQWHULP0RUHRYHU
7KRPSVRQ¶VSDVWHQFRXQWHUZLWK5HHGSURYLGHVQRDQVZHUWR
WKHTXHVWLRQRIZKHWKHU5HHGKDGEHHQLQYLWHGRQWR%0+$¶V
SURSHUW\RQWKHGD\KHZDVDUUHVWHG
6HFRQGWKHPDMRULW\FLWHVWKHXQFRQWHVWHGIDFWWKDW5HHG
ZDVRQ%0+$¶VSURSHUW\7KLVKRZHYHUKDVQREHDULQJRQ
WKHLVVXHRIZKHWKHUWKHRIILFHUVKDGSUREDEOHFDXVHWREHOLHYH
WKDW5HHGZDVRQWKHSURSHUW\ZLWKRXWSULYLOHJH7KHFDVH
ZRXOGEHGLIIHUHQWLIWKHDSDUWPHQWPDQDJHUKDGFRPSODLQHG
DERXW 5HHG RU KDG UHTXHVWHG WKH RIILFHUV WR UHPRYH KLP
EHFDXVHWKHQWKHRIILFHUVZRXOGKDYHKDGSUREDEOHFDXVHWR
EHOLHYHWKDWKHZDVQRWSULYLOHJHGWREHWKHUH
7KLUGWKHUHLVQRLQGLFDWLRQLQWKHUHFRUGWKDWDWWKHWLPHRI
5HHG¶VDUUHVWWKHRIILFHUVNQHZWKDW5HHGZDVQRWDUHVLGHQW
,QIDFWWKHGLVWULFWFRXUWGLGQRWHYHQPDNHVXFKDILQGLQJ
7KHWHVWLPRQ\DWWKHVXSSUHVVLRQKHDULQJLQGLFDWHVWKDWWKH
EDVLVIRU2IILFHUV7KRPSVRQDQG+RUWRQEHOLHYLQJWKDW5HHG
ZDV QRW D UHVLGHQW RI WKH %0+$ SURSHUW\ ZDV VROHO\
7KRPSVRQ¶V SDVW HQFRXQWHU ZLWK 5HHG , WKXV ILQG WKH
PDMRULW\¶VUHOLDQFHRQWKLVIDFWRUWREHPLVSODFHG
)RXUWK WKH IDFW WKDW WKHUH ZHUH WZHQW\VL[ ³1R
7UHVSDVVLQJ´VLJQVSRVWHGRQ%0+$¶VSURSHUW\LVVLPLODUO\
LUUHOHYDQW DVWRZKHWKHUWKHRIILFHUVKDGSUREDEOHFDXVHWR
EHOLHYH WKDW 5HHG ZDV QRW D UHVLGHQW RU GLG QRW KDYH DQ
LQYLWDWLRQWREHRQWKHSURSHUW\7KHJRYHUQPHQWFRQFHGHG
WKLVSRLQWDWRUDODUJXPHQW
)LIWK WKH IDFW WKDW 5HHG VWDUWHG WR ZDON DZD\ ZKHQ WKH
RIILFHUV DSSURDFKHG PD\ UDLVH D VXVSLFLRQ WKDW KH ZDV
HQJDJHGLQDQ\RQHRIDPXOWLWXGHRILPSURSHUDFWLYLWLHVEXW
LV QRW SDUWLFXODUO\ SUREDWLYH DV WR ZKHWKHU 5HHG ZDV
SULYLOHJHGWREHRQWKHSURSHUW\,QDQ\HYHQWERWKRIILFHUV
-- 8 of 10 --
8QLWHG6WDWHVY5HHG 1R
WKHRYHUZKHOPLQJHYLGHQFHLQ6WULFNODQGWKHGHWHFWLYHVKDG
SUREDEOHFDXVHWREHOLHYHWKDW6WULFNODQGKDGHQJDJHGLQD
GUXJWUDQVDFWLRQ%HFDXVHRIWKDWWKH\GLGQRWQHHGWRGLVSHO
DOOLQQRFHQWH[SODQDWLRQVIRUWKHPHHWLQJEHWZHHQ6WULFNODQG
DQG+DJJDUGEHIRUHDUUHVWLQJ6WULFNODQG7KHRIILFHUVLQWKH
FDVH DW KDQG KRZHYHU QHYHU KDG SUREDEOH FDXVH WR DUUHVW
5HHGIRUFULPLQDOWUHVSDVVLQWKHILUVWSODFH
7RH[SODLQWKHGLIIHUHQFHDQRWKHUZD\OHWXVDVVXPHWKDW
%0+$¶VDSDUWPHQWPDQDJHUKDGLQIRUPHGWKHRIILFHUVWKDW
5HHG ZDV WUHVSDVVLQJ 7KH RIILFHUV ZRXOG WKHQ KDYH KDG
SUREDEOHFDXVHWRDUUHVW5HHGIRUFULPLQDOWUHVSDVV,IDIWHU
DUUHVW 5HHG KDG DUJXHG WKDW WKH RIILFHUV ODFNHG SUREDEOH
FDXVHWRDUUHVWEHFDXVHWKH\IDLOHGWRLQTXLUHDVWRZKHWKHUKH
ZDVLQYLWHGRQWRWKHSURSHUW\E\DWHQDQWKLVDUJXPHQWZRXOG
IDLO$WWKDWSRLQWOLNHLQ6WULFNODQGWKHRIILFHUVZRXOGKDYH
KDGSUREDEOHFDXVHWRDUUHVWDQGZRXOGQRWKDYHKDGWRGLVSHO
HYHU\LQQRFHQWH[SODQDWLRQ7KRVHKRZHYHUDUHQRWWKHIDFWV
RIWKHSUHVHQWFDVH
7KHWUHVSDVVRUGLQDQFHLQWKHFDVHEHIRUHXVOLNHWKHRQHV
LQ%ODLU-RQHVDQG,QUH-DVRQ$OOHQ'SURYLGHV WKDWD
SHUVRQPXVWHQWHURUUHPDLQRQDQRWKHU¶VSURSHUW\ZLWKRXW
SULYLOHJH6HH2KLRY&OHOODQG1(G 2KLR
&W$SS ³7KHFRQFHSWRISULYLOHJHKDVEHHQEURDGO\
FRQVWUXHGDQGWKHVWDWHKDVEHHQUHTXLUHGWRSURYHODFNRI
SULYLOHJH´ 7KHPDMRULW\FRQFOXGHVWKDWWKHIROORZLQJIDFWV
HVWDEOLVK SUREDEOH FDXVH IRU 5HHG¶V DUUHVW IRU FULPLQDO
WUHVSDVV 5HHGKDGEHHQJLYHQDSULRUZDUQLQJQRWWR
HQWHUWKH%0+$SURSHUW\E\2IILFHU7KRPSVRQ 5HHGZDV
REVHUYHGRQWKH%0+$SURSHUW\ 5HHGZDVQRWDUHVLGHQW
RIWKH%0+$KRXVLQJSURMHFW WKHUHZHUHWZHQW\VL[³1R
7UHVSDVVLQJ´VLJQVSRVWHGWKURXJKRXWWKH%0+$SURSHUW\
DQG 5HHGZDONHGDZD\ZKHQWKHRIILFHUVDSSURDFKHG)RU
WKHUHDVRQVVHWIRUWKEHORZ,GRQRWEHOLHYHWKDWDQ\RIWKH
ILYHIDFWRUVWKDWWKHPDMRULW\UHOLHVXSRQMXVWLI\WKHFRQFOXVLRQ
WKDWWKHRIILFHUVKDGSUREDEOHFDXVHWREHOLHYHWKDW5HHGZDV
RQ %0+$¶V SURSHUW\ ZLWKRXW SULYLOHJH DW WKH WLPH RI KLV
DUUHVW
1R 8QLWHG6WDWHVY5HHG
ZLWK WUHVSDVVHUV DQG GUXJ GHDOHUV LQ WKH SDUNLQJ DUHD +H
DVNHGIRUSROLFHDVVLVWDQFH6KRUWO\WKHUHDIWHUDPDQQDPHG
-RQHV ZDV VHHQ ³KDQJLQJ RXW´ LQ WKH SDUNLQJ ORW DQG ZDV
DUUHVWHGE\WKH5LFKPRQGSROLFHIRUFULPLQDOWUHVSDVV7KH
VHDUFKLQFLGHQWWRWKHDUUHVWXQFRYHUHGKHURLQ,QRUGHULQJWKH
KHURLQ VXSSUHVVHG WKH 9LUJLQLD &RXUW RI $SSHDOV KHOG DV
IROORZV
-RQHV¶VPHUHSUHVHQFHZLWKDQRWKHUPDQRQWKHSUHPLVHV
DW IRXU R¶FORFN LQ WKH DIWHUQRRQ QHDU DQ DXWRPRELOH
SDUNHG RQ D VWUHHW E\ DQ DSDUWPHQW FRPSOH[ ZDV
LQVXIILFLHQWWRHVWDEOLVKSUREDEOHFDXVHWREHOLHYHWKDW
-RQHVZDVQHLWKHUDUHVLGHQWRIWKHDSDUWPHQWFRPSOH[
QRUOHJLWLPDWHO\XSRQWKHSUHPLVHVDWWKHLQYLWDWLRQRID
UHVLGHQW7KHRIILFHU¶VREVHUYDWLRQSHUPLWWHGRQO\DEDUH
VXVSLFLRQ,QGHHGWKHRIILFHU¶VDVVHUWLRQWKDW-RQHVDQG
WKHRWKHUPDQZHUH³KDQJLQJRXW´GLGQRWDGGVXIILFLHQW
LQIRUPDWLRQ WR UDLVH KLV VXVSLFLRQ RI WUHVSDVVLQJ WR
SUREDEOHFDXVH
,GDW
)LQDOO\ LQ D FDVH ZKHUH WKH IDFWV ZHUH PXFK PRUH
FRPSHOOLQJIRUWKHVWDWHWKDQWKHRQHVDWEDUWKH0DU\ODQG
&RXUW RI 6SHFLDO $SSHDOV UHYHUVHG WKH DSSHOODQW¶V WUHVSDVV
FRQYLFWLRQKROGLQJDVIROORZV
2IILFHU&XVWHDG¶VPHUHREVHUYDWLRQRI-DVRQ³KDQJLQJ
RXW´RQWKHVLGHZDONDWWKHKRXVLQJSURMHFWWZRKRXUV
DIWHUDQHDUOLHUDQGDUJXDEO\LQYDOLGDUUHVWIRUWUHVSDVVLQJ
ZDVLQVXIILFLHQWWRHVWDEOLVKSUREDEOHFDXVHWKDW-DVRQ
ZDV D FULPLQDO WUHVSDVVHU :H UHLWHUDWH WKDW LQ
HYDOXDWLQJ SUREDEOH FDXVH ZH PXVW UHODWH ZKDW WKH
RIILFHUNQHZDERXWWKHFLUFXPVWDQFHVRIWKHDUUHVWWRWKH
HOHPHQWV RI WKH RIIHQVH WKDW WKH RIILFHU EHOLHYHG ZDV
EHLQJ RU KDG EHHQ FRPPLWWHG +HUH DSSHOODQW ZDV
DUUHVWHGIRUWUHVSDVVLQJQRWIRUORLWHULQJ7KXVWKHIDFW
WKDW DSSHOODQW ZDV ³KDQJLQJ RXW´ RQ WKH SURSHUW\
SURYLGHV YHU\ OLWWOH JXLGDQFH DV WR ZKHWKHU 2IILFHU
&XVWHDGKDGSUREDEOHFDXVHWREHOLHYHDSSHOODQWZDVD
WUHVSDVVHU)RUWKHSXUSRVHRIDQDO\]LQJSUREDEOH
-- 9 of 10 --
8QLWHG6WDWHVY5HHG 1R
FDXVHZHUHYLHZZKDW2IILFHU&XVWHDGNQHZZKHQKH
VRXJKWWRDUUHVW-DVRQIRUWUHVSDVVLQJ -DVRQZDVRQ
6DJQHUSURSHUW\ -DVRQZDVQRWDUHVLGHQW -DVRQ
KDGUHFHLYHGDQRWUHVSDVVLQJQRWLFH -DVRQKDGEHHQ
DUUHVWHG OHVV WKDQ WZR KRXUV HDUOLHU IRU WUHVSDVVLQJ DW
6DJQHUDOWKRXJK-DVRQZDVQRWRQ6DJQHUSURSHUW\ZKHQ
WKH ILUVW DUUHVW RFFXUUHG <HW 2IILFHU &XVWHDG¶V RZQ
NQRZOHGJHDERXWWKHTXHVWLRQDEOHYDOLGLW\RIWKHHDUOLHU
DUUHVWGLIIXVHVWKHLPSRUWRI-DVRQ¶VODWHUUHDSSHDUDQFHRQ
WKHSURSHUW\)XUWKHUDOWKRXJKWKHRIILFHUVDZDSSHOODQW
ZLWK D JURXS RI SHRSOH KH FRQFHGHG WKDW KH KDG QR
LQIRUPDWLRQ DERXW -DVRQ¶V UHODWLRQVKLS WR WKH SHUVRQV
ZKRZHUHZLWKKLPQRNQRZOHGJHDVWRZKHWKHUDQ\RI
WKH SHUVRQV ZLWK -DVRQ UHVLGHG DW 6DJQHU QRU GLG WKH
RIILFHU LQTXLUH RI -DVRQ RU WKH RWKHUV DERXW -DVRQ¶V
SUHVHQFH DW 6DJQHU $V LQ %ODLU DQG -RQHV 2IILFHU
&XVWHDG LJQRUHG WKH SRVVLELOLW\ WKDW DSSHOODQW ZDV DW
6DJQHUDWWKHLQYLWDWLRQRIDQDXWKRUL]HGUHVLGHQW/LNH
%ODLUDQG-RQHVZHFRQFOXGHWKDWRQWKHVHIDFWV2IILFHU
&XVWHDGGLGQRWKDYHSUREDEOHFDXVHWRPDNHDQDUUHVW
,QUH-DVRQ$OOHQ'$G 0G&W6SHF
$SS FLWDWLRQVDQGLQWHUQDOTXRWDWLRQPDUNVRPLWWHG
HPSKDVLVDGGHG
$OOWKUHHRIWKHDERYHFDVHVUHTXLUH WKDWDQRIILFHUKDYH
SUREDEOHFDXVHWREHOLHYHWKDWDSHUVRQLVRQSULYDWHSURSHUW\
ZLWKRXW SULYLOHJH EHIRUH PDNLQJ DQ DUUHVW IRU FULPLQDO
WUHVSDVV7KLVLVDQDSSURSULDWHUHTXLUHPHQWEHFDXVHWKHUHDUH
RQO\WZRHOHPHQWVWRFULPLQDOWUHVSDVV DSHUVRQKDVWREH
RQSULYDWHSURSHUW\DQG KHRUVKHKDVWREHWKHUHZLWKRXW
SULYLOHJH6HH&LW\RI+DPLOWRQ2KLR2UGLQDQFH
,ISROLFHRIILFHUVGRQRWQHHGSUREDEOHFDXVHWREHOLHYHWKDWD
VXVSHFWODFNVDOHJLWLPDWHUHDVRQIRUEHLQJRQSULYDWHSURSHUW\
EHIRUHPDNLQJDQDUUHVWIRUFULPLQDOWUHVSDVVWKHQWKH\FRXOG
OHJDOO\DUUHVWDQGVHDUFKDQ\RQHWKH\VHHRQSULYDWHSURSHUW\
6XFKLVFOHDUO\QRWWKHODZ
,QVWHDGRIDGGUHVVLQJRUDWWHPSWLQJWRGLVWLQJXLVK-RQHVDQG
,QUH-DVRQ$OOHQ'ZKLFKGHDOVSHFLILFDOO\ZLWKWKHLVVXHDW
1R 8QLWHG6WDWHVY5HHG
KDQG WKH PDMRULW\ FLWHV DQG UHOLHV KHDYLO\ XSRQ JHQHUDO
ODQJXDJHIURP8QLWHG6WDWHVY6WULFNODQG)G WK
&LU ,Q 6WULFNODQG WKH SROLFH XVHG D PDQ QDPHG
+DJJDUGDQLQGLFWHGGUXJRIIHQGHUZKRZDVZRUNLQJDVD
SROLFHLQIRUPDQWWRVHWXSDGUXJWUDQVDFWLRQZLWKDVXVSHFWHG
GHDOHUQDPHG6WULFNODQG+DJJDUGWHOHSKRQHG6WULFNODQGLQ
WKH SUHVHQFH RI SROLFH GHWHFWLYHV 7KH GHWHFWLYHV KHDUG
+DJJDUGDJUHHWRDPHHWLQJZLWK6WULFNODQGDWSPWKDW
HYHQLQJ DW D FRQYHQLHQFH VWRUH FDOOHG WKH &RUQHU 0DUNHW
8SRQILQLVKLQJKLVFDOOZLWK6WULFNODQG+DJJDUGLQIRUPHGWKH
GHWHFWLYHV WKDW KH KDG DUUDQJHG WR SXUFKDVH FRFDLQH IURP
6WULFNODQGIRU+DJJDUGDOVRH[SODLQHGWKDWKHDQG
6WULFNODQGKDGDFRXUVHRIGHDOLQJZKHUHWKH\ZRXOGPHHW
LQVLGH DQ DXWRPRELOH WDON IRU D IHZ PRPHQWV DQG WKHQ
H[FKDQJHPRQH\IRUGUXJV2QHRIWKHGHWHFWLYHVWKHQJDYH
+DJJDUG LQ PDUNHG ELOOV 6KRUWO\ WKHUHDIWHU WKH
GHWHFWLYHVZKRKDGWKH&RUQHU0DUNHWXQGHUVXUYHLOODQFH
REVHUYHG +DJJDUG PHHWLQJ 6WULFNODQG DW SP DW WKH
&RUQHU0DUNHW6WULFNODQGJHWWLQJLQWR+DJJDUG¶VFDUWKHWZR
PHQFKDWWLQJDQG6WULFNODQGOHDYLQJ+DJJDUG¶VYHKLFOHDIHZ
PLQXWHV ODWHU 6WULFNODQG ZDV WKHQ DUUHVWHG DQG VHDUFKHG
XQFRYHULQJWKHRIPDUNHGELOOV
&ODLPLQJ D ODFN RI SUREDEOH FDXVH 6WULFNODQG ILOHG D
PRWLRQWRVXSSUHVVWKHHYLGHQFH7KHLVVXHEHIRUHWKLVFRXUW
ZDVZKHWKHUWKHSROLFHKDGSUREDEOHFDXVHWRDUUHVW6WULFNODQG
IRUSRVVHVVLRQRIFRFDLQHZLWKWKHLQWHQWWRGLVWULEXWHZKHQ
WKH\KDGQRWDFWXDOO\VHHQWKHWUDQVDFWLRQWDNHSODFHLQWKHFDU
,QRWKHUZRUGV6WULFNODQGDUJXHGWKDWWKHGHWHFWLYHVGLGQRW
³NQRZ´ WKDW KH KDG VROG GUXJV WR +DJJDUG DQG WKDW WKHUH
FRXOGEHRWKHULQQRFHQWH[SODQDWLRQVIRUKLVPHHWLQJ+DJJDUG
DWWKH&RUQHU0DUNHW%DVHGRQWKHFRPSHOOLQJFLUFXPVWDQWLDO
HYLGHQFH VXPPDUL]HG DERYH WKLV FRXUW KHOG WKDW WKH
GHWHFWLYHVKDGSUREDEOHFDXVHWREHOLHYHWKDW6WULFNODQGKDG
VROG FRFDLQH WR +DJJDUG GHVSLWH WKH SRVVLELOLW\ WKDW WKHUH
FRXOG KDYH EHHQ DQ LQQRFHQW H[SODQDWLRQ IRU WKH PHHWLQJ
EHWZHHQWKHP
,IXOO\DJUHHZLWKWKHUHVXOWLQ6WULFNODQGEXWILQGLWVIDFW
VLWXDWLRQDZRUOGDSDUWIURPWKDWLQWKHSUHVHQWFDVH%DVHGRQ
-- 10 of 10 --