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
67(9(1 9$1&(0LQRUE\
DQGWKURXJKKLVPRWKHU
'HERUDK9DQFH$/0$
0&*2:(10LQRUE\DQG
WKURXJKKHUPRWKHU%DUEDUD
(UIXUWK
3ODLQWLIIV$SSHOOHHV
Y
63(1&(5 &2817< 38%/,&
6&+22/ ',675,&763(1&(5
&2817< %2$5' 2)
('8&$7,21
'HIHQGDQWV$SSHOODQWV
;!
1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH:HVWHUQ'LVWULFWRI.HQWXFN\DW/RXLVYLOOH
1RV²7KRPDV%5XVVHOO'LVWULFW-XGJH
$UJXHG-XQH
'HFLGHGDQG)LOHG1RYHPEHU
%HIRUH.(,7+'$8*+75(<DQG*,/0$1&LUFXLW
-XGJHV
-- 1 of 12 --
9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
1R
7KH GLVWULFW FRXUW EHORZ JUDQWHG D GLUHFWHG YHUGLFW DV WR QDPHG
3ODLQWLII 6WHYHQ 9DQFH¶V FODLPV 0U 9DQFH KDV QRW DSSHDOHG KLV FODLPV
DQG LV QRW D SDUW\ WR WKLV DSSHDO
7KH 6SHQFHU &RXQW\ 3XEOLF 6FKRRO 'LVWULFW LV QRW D OHJDO HQWLW\ %\
FRQVHQW WKH UHDO 'HIHQGDQW$SSHOODQW LQ WKLV DFWLRQ ZDV GHHPHG WR EH
%RDUG RI (GXFDWLRQ RI 6SHQFHU &RXQW\
BBBBBBBBBBBBBBBBB
&2816(/
$5*8(' 5REHUW / &KHQRZHWK &+(12:(7+ /$:
2)),&( )UDQNIRUW .HQWXFN\ IRU $SSHOODQWV 2OLYHU +
%DUEHU-U%$5%(5%$1$6=<16., $662&,$7(6
/RXLVYLOOH.HQWXFN\IRU$SSHOOHHV21%5,()5REHUW/
&KHQRZHWK 3DWULFLD 7RGG %DXVFK &+(12:(7+ /$:
2)),&( )UDQNIRUW .HQWXFN\ IRU $SSHOODQWV -HIIHU\ 6
0LOOHU %$5%(5 %$1$6=<16., $662&,$7(6
/RXLVYLOOH.HQWXFN\IRU$SSHOOHHV
.(,7+ - GHOLYHUHG WKH RSLQLRQ RI WKH FRXUW LQ ZKLFK
'$8*+75(< - MRLQHG *,/0$1 - SS
GHOLYHUHGDVHSDUDWHFRQFXUULQJRSLQLRQ
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
.(,7+ &LUFXLW -XGJH 7KLV DSSHDO SUHVHQWV TXHVWLRQV
FRQFHUQLQJWKHQDWXUHDQGH[WHQWRIFLUFXPVWDQWLDOHYLGHQFH
QHHGHG WR SHUPLW D UHDVRQDEOH LQIHUHQFH RI JHQGHU
GLVFULPLQDWLRQE\VFKRRORIILFLDOVLQWKHVWXGHQWRQVWXGHQW
VH[XDO KDUDVVPHQW FRQWH[W 7KH 6SHQFHU &RXQW\ 6FKRRO
'LVWULFW ³6SHQFHU´ DSSHDOVIURPWKHGLVWULFWFRXUW¶VGHQLDO
RILWVSRVWWULDOPRWLRQIRUMXGJPHQWDVDPDWWHURIODZ$
MXU\ IRXQG WKDW 6SHQFHU YLRODWHG ERWK 7LWOH ,; RI WKH
(GXFDWLRQ$PHQGPHQWVRI86&
-- 2 of 12 --
1R 9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
DQG 86& G E\ GLVFULPLQDWLQJ DJDLQVW 3ODLQWLII
$OPD 0F*RZHQ D VWXGHQW DW RQH RI LWV VFKRROV )RU WKH
UHDVRQVWKDWIROORZWKLV&RXUW$)),506
,
,Q1RYHPEHU$OPD0F*RZHQHQUROOHGLQ6SHQFHUDV
D VL[WK JUDGHU 2Q WKH VHFRQG GD\ RI VFKRRO VRPH ILUVW
JUDGHUV\HOOHGWRKHU³2KWKHUH¶VWKDW*HUPDQJD\JLUOWKDW
QHZ JLUO WKDW MXVW PRYHG KHUH´ $OPD FRPSODLQHG WR WKH
6SHQFHU 6FKRRO &RXQVHORU .DWK\ :KLWHKHDG :KLWHKHDG
VSRNHWRWKHFKLOGUHQ$OPDLGHQWLILHGDQGJDYHSUHVHQWDWLRQV
RQDFFHSWLQJSHRSOH
'XULQJ$OPD¶VVL[WKJUDGH\HDUZKLOHULGLQJWKHEXVDKLJK
VFKRRO VWXGHQW DVNHG $OPD WR GHVFULEH RUDO VH[ $OPD
UHSRUWHG WKH LQFLGHQW WR ERWK KHU PRWKHU DQG :KLWHKHDG
:KLWHKHDG FRQWDFWHG WKH KLJK VFKRRO SULQFLSDO 0XUUHO
/DZVRQ/DZVRQH[SHOOHGWKHVWXGHQWIURPWKHEXVIRUDIHZ
GD\V:KHQWKHVWXGHQWUHWXUQHGKHFRQWLQXHGWRFXUVHDW
$OPDDQGZDVHYHQPRUHYXOJDUWKDQEHIRUH
'XULQJ WKH VFKRRO \HDU $OPD DWWHQGHG WKH
6SHQFHU&RXQW\+LJK6FKRRO ³6SHQFHU+LJK´ :KLOHWKHUH
DQRWKHU VWXGHQW ZKR ZDV WKH VFKRRO SULQFLSDO¶V QHSKHZ
FRQIURQWHG $OPD LQ WKH SUHVHQFH RI RWKHU VWXGHQWV DQG
GHPDQGHG WR NQRZ LI VKH ZDV JD\ :KHQ $OPD VSRNH WR
'DYLG6KHOEXUQHWKHDVVLVWDQWSULQFLSDODWWKHKLJKVFKRROKH
VDLGWKDWWKHER\VFRQVLGHUHGKHUFXWHDQGWKH\ZHUHIOLUWLQJ
ZLWKKHUVRVKHVKRXOGMXVW³EHIULHQGO\´
'XULQJKHUVHYHQWKJUDGH\HDUVWXGHQWVUHJXODUO\VKRYHG
$OPD LQWR ZDOOV JUDEEHG KHU ERRN EDJ DQG VWROH DQG
GHVWUR\HGKHUKRPHZRUN$OPDUHSRUWHGWKHVHLQFLGHQWVWR
3K\OOLV-HQNLQVWKHDFDGHPLFFRXQVHORUZKRUHIHUUHGKHUWR
)DWKHU5\DQWKH\RXWKDGYRFDWH,QUHVSRQVH)DWKHU5\DQ
WROGKHUKHZRXOGVHHZKDWKHFRXOGGR
,QWKHIDOORIWKHVFKRRO\HDUDPDOHVWXGHQWLQ
KHU J\P FODVV FDOOHG $OPD DQG RWKHU IHPDOH VWXGHQWV
-- 3 of 12 --
9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
1R
³ZKRUHV´DQG³PRWKHUIXFNHUV´KLWWKHPVQDSSHGWKHLUEUDV
DQGJUDEEHGWKHLUEXWWV+HDOVRZHQWLQWR$OPD¶VEDJDQG
EHJDQWRWDNHWKLQJVIURPLW:KHQ$OPDWULHGWRJHWKHUSHQ
EDFNIURPKLPWKHER\VWDEEHGKHULQWKHKDQGZLWKWKHSHQ
$OPDUHSRUWHGWKHLQFLGHQWWRKHUJ\PWHDFKHUZKRVHQWKHU
WRWKHSULQFLSDO¶VRIILFH7KHRIILFHVHFUHWDU\WUHDWHG$OPD¶V
LQMXU\7KHSULQFLSDOZDVLQIRUPHGEXWGLGQRWJHWLQYROYHG
DWWKDWWLPH$IHZGD\VODWHUWKHVWXGHQWWROG$OPDWKDWKH
KDGEHHQWDONHGWREXWWKDWKHGLGQRWJHWLQWRDQ\WURXEOH
EHFDXVHKHZDVDVFKRROERDUGPHPEHU¶VVRQ
'XULQJ WKH 6SULQJ VHPHVWHU RI KHU VHYHQWK JUDGH \HDU
$OPD¶V PRWKHU ZURWH WZR OHWWHUV FRQFHUQLQJ KHU GDXJKWHU
7KH ILUVW OHWWHU FRQFHUQHG DQ LQFLGHQW LQ KHU VFLHQFH FODVV
6RPH VWXGHQWV DSSURDFKHG $OPD GXULQJ D EDWKURRP EUHDN
ZKLOHWKHWHDFKHUZDVQRWLQWKHURRP6HYHUDORIWKHVWXGHQWV
FDOOHG$OPDFUXGHQDPHVDQGEDFNHGKHUXSDJDLQVWDZDOO
7ZRER\VKHOGKHUKDQGVZKLOHRWKHUVWXGHQWVJUDEEHGKHU
KDLUDQGVWDUWHG\DQNLQJRIIKHUVKLUW:KHQDER\VWDWHGKH
ZDVJRLQJWRKDYHVH[ZLWKKHUDQGEHJDQWRWDNHKLVSDQWV
RIIDQRWKHUER\LQWHUYHQHGDQGDVVLVWHG$OPD$OPDGLGQRW
UHSRUWWKHLQFLGHQWWRKHUWHDFKHU$OPDZHQWKRPHDQGWROG
KHUPRWKHUDERXWWKHLQFLGHQW$OPD¶VPRWKHUZURWHDOHWWHU
WR WKH SULQFLSDO ZKLFK $OPD KDQGGHOLYHUHG WR WKH IURQW
RIILFHWKHIROORZLQJGD\
,QUHVSRQVHWRWKHOHWWHUWKHFODVVURRPWHDFKHUVSRNHZLWK
$OPD DQGILYHRIWKHER\VLQYROYHGLQWKHLQFLGHQW:LWK
$OPDVHDWHGEHWZHHQWZRRIWKHER\VWKHWHDFKHUWROG$OPD
WRWHOOWKHER\VZKDWVKHWKRXJKWWKH\KDGGRQH$OPDGLGQRW
NQRZLIDQ\WKLQJZDVGRQHWRSXQLVKWKHER\V
'XULQJWKHIDOORI$OPD¶VHLJKWKJUDGH\HDUD
IHPDOH VSHFLDO HGXFDWLRQ VWXGHQW VWUXFN $OPD 3ULQFLSDO
/DZVRQVSRNHWR WKHJLUO'XULQJWKDWVDPHSHULRG$OPD
VSRNHZLWK.LUE\6PLWKWKH\RXWKDGYRFDWHZKRUHSODFHG
)DWKHU5\DQDERXWRWKHUVWXGHQWVKDUDVVLQJKHU6PLWKDVNHG
$OPD IRU D OLVW RI WKH VWXGHQWV LQ RUGHU WR DGGUHVV WKH
1R 9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
86DW7KHRQO\GLIIHUHQFHEHWZHHQWKHODQJXDJHLQ
'DYLVDQGWKHMXU\LQVWUXFWLRQVDWLVVXHZDVLQWKHGHILQLWLRQ
RIWKHWHUP³GHOLEHUDWHLQGLIIHUHQFH´
'HOLEHUDWH LQGLIIHUHQFH ZDV HVVHQWLDOO\ GHILQHG E\ WKH
GLVWULFWFRXUWDVDQDZDUHQHVVRQWKHSDUWRIWKH%RDUGWKDWLWV
DFWLRQRULQDFWLRQEDVHGRQLWVNQRZOHGJHRIWKHKDUDVVPHQW
ZRXOGZLWKVXEVWDQWLDOFHUWDLQW\VXEMHFWWKHVWXGHQWWRPRUH
KDUP7KXVWKHLQVWUXFWLRQVFRUUHFWO\FRQFHQWUDWHGRQWKH
DFWLRQVRI6SHQFHUDQGQRWRQWKHDFWLRQV RIWKHKDUDVVLQJ
VWXGHQW,QGHHGWKHVHLQVWUXFWLRQVZRXOGKDYHSHUPLWWHGD
ILQGLQJRIQROLDELOLW\HYHQLIWKHKDUDVVPHQWKDGFRQWLQXHG
VRORQJDV6SHQFHUGLGQRWDFWZLWKGHOLEHUDWHLQGLIIHUHQFH
7KLVLVQRWVXEVWDQWLDOO\GLIIHUHQWIURPWKH'DYLVIRUPXODWLRQ
WKDW D ILQGLQJ RI GHOLEHUDWH LQGLIIHUHQFH LV MXVWLILHG ³RQO\
ZKHUH WKH UHFLSLHQW¶V UHVSRQVH WR WKH KDUDVVPHQW RU ODFN
WKHUHRI LV FOHDUO\ XQUHDVRQDEOH LQ OLJKW RI WKH NQRZQ
FLUFXPVWDQFHV´'DYLV86DW
7KHGLVWULFWFRXUW¶VVXPPDWLRQRIWKHVWDQGDUGRIOLDELOLW\
WKHUHIRUHZDVDWOHDVWVXEVWDQWLDOO\DFFXUDWH6HH&ODUNVYLOOH
0RQWJRPHU\&RXQW\6FK6\VY8QLWHG6WDWHV*\SVXP&R
)G WK&LU ³$MXU\LQVWUXFWLRQZKLFK
VWDWHVWKHODZZLWKVXEVWDQWLDODFFXUDF\DQGIDLUO\VXEPLWVWKH
LVVXHV WR WKH MXU\ ZLOO QRW SURYLGH JURXQGV IRU UHYHUVDO´
%HFDXVHWKHLQVWUXFWLRQVVKRZHG³QRWHQGHQF\WRFRQIXVHRU
PLVOHDGWKHMXU\ZLWKUHVSHFWWRWKHDSSOLFDEOHSULQFLSOHVRI
ODZ´ LG , FRQFOXGH WKDW DQ\ HUURU LQ WKH GLVWULFW FRXUW¶V
GHILQLWLRQ RI GHOLEHUDWH LQGLIIHUHQFH ZDV KDUPOHVV , WKXV
FRQFXULQWKHRSLQLRQRIP\FROOHDJXHV
-- 4 of 12 --
9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
1R
BBBBBBBBBBBBBBBBB
&21&855(1&(
BBBBBBBBBBBBBBBBB
521$/' /(( *,/0$1 &LUFXLW -XGJH FRQFXUULQJ ,
FRQFXU LQ WKH UHVXOW UHDFKHG E\ WKH FRXUW DV ZHOO DV LQ LWV
FRQFOXVLRQVUHJDUGLQJWKHKDUDVVPHQWRI$OPD0F*RZHQDQG
WKHNQRZOHGJHRIWKH6SHQFHU&RXQW\3XEOLF6FKRRO'LVWULFW
1HYHUWKHOHVV,ZULWHVHSDUDWHO\EHFDXVHWKHFRXUWGRHVQRW
GLUHFWO\ DGGUHVV ZKDW , SHUFHLYH WR EH 6SHQFHU¶V PDLQ
FRPSODLQWZLWKUHVSHFWWRWKHMXU\LQVWUXFWLRQV
$FFRUGLQJWR6SHQFHUWKHMXU\LQVWUXFWLRQVUHJDUGLQJWKH
%RDUG¶VOLDELOLW\XQGHU7LWOH,;GLGQRWFRQIRUPWRWKHODZDV
VHWIRUWKLQ'DYLVY0RQURH&RXQW\%G2I(GXF86
6SHQFHUDUJXHVWKDWWKHMXU\ZDVOHGWREHOLHYH
WKDWWKH%RDUGLVVWULFWO\OLDEOHIRUVWXGHQWRQVWXGHQWVH[XDO
KDUDVVPHQWUHJDUGOHVVRI6SHQFHU¶VUHPHGLDODFWLRQVLIWKH
KDUDVVPHQWGLGQRWLQIDFWVWRS,GLVDJUHH
7REHIDLUWRWKHGLVWULFWFRXUWWKHVWDQGDUGRIOLDELOLW\IRU
VWXGHQWRQVWXGHQWVH[XDOKDUDVVPHQWZDVQRWDUWLFXODWHGE\
WKH6XSUHPH&RXUWLQ'DYLVXQWLODIWHUMXGJPHQWKDGEHHQ
HQWHUHGLQWKHLQVWDQWFDVH1HYHUWKHOHVVWKHGLVWULFWFRXUW¶V
MXU\ LQVWUXFWLRQV DQWLFLSDWHG 'DYLV E\ DGRSWLQJ WKH SURSHU
VWDQGDUG IRU OLDELOLW\ DV GHVFULEHG LQ *HEVHU Y /DJR 9LVWD
,QGHSHQGHQW 6FKRRO 'LVW 86
UHTXLULQJWKDWDVWXGHQWZKRLVVH[XDOO\KDUDVVHGE\DWHDFKHU
SURYHERWKDFWXDOQRWLFHWRDQGGHOLEHUDWHLQGLIIHUHQFHE\D
VFKRROGLVWULFWIRUVXFKDQHQWLW\WREHKHOGOLDEOHIRUGDPDJHV
XQGHU7LWOH,;
7KHLQVWUXFWLRQVUHTXLUHGDILQGLQJWKDW 0F*RZDQZDV
EHLQJVXEMHFWHGWRDKRVWLOHVH[XDOHQYLURQPHQW WLPHO\
QRWLILFDWLRQ ZDV JLYHQ WR D 6SHQFHU RIILFLDO RI WKLV KRVWLOH
HQYLURQPHQW DQG 6SHQFHU H[KLELWHG GHOLEHUDWH
LQGLIIHUHQFHWRZDUGUHPHG\LQJWKHKRVWLOHVH[XDOHQYLURQPHQW
GHVSLWHLWVDFWXDO NQRZOHGJH7KHVHDUHLQIDFWWKHSURSHU
HOHPHQWVWRHVWDEOLVKOLDELOLW\DFFRUGLQJWR'DYLV6HH'DYLV
1R 9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
VLWXDWLRQ6PLWKVSRNHZLWKWKHER\VZKRZHUHRQWKHOLVWWKDW
$OPDJDYHKLP
/DWHURQHRIWKHER\VWROG$OPDLQIURQWRIDFODVVWKDWKH
WROG6PLWKWKDWKHKDGDFUXVKRQKHUDQGWKDWKHFRXOGWRXFK
$OPD LQ DQ\ ZD\ KH ZDQWHG DQG QR RQH ZDV JRLQJ WR GR
DQ\WKLQJDERXWLW$IWHUZDUGWKHER\GLGLQGHHGWRXFK$OPD
RQKHUFKHVWDQGEXWW+HDOVRUHTXHVWHGVH[XDOIDYRUVVHYHUDO
WLPHVZKLOHWKHWHDFKHUZDVLQWKHURRP$OPDWHVWLILHGWKDW
QRWKLQJZDVGRQHDERXWWKHVHLQFLGHQWV
,Q'HFHPEHU$OPDVSRNHZLWK$VVLVWDQW3ULQFLSDO
6KHOEXUQHDQGLQGLFDWHGWKDWWKHER\ZKRZDVDSDUWRIWKH
SUREOHPLQKHUVFLHQFHFODVVZDVVWLOOKDUDVVLQJKHU$IHZ
GD\V ODWHU WKH ER\ WROG $OPD WKDW DOWKRXJK KH KDG EHHQ
VSRNHQWRKHGLGQRW³JLYHDGDPQDERXWLWDQGKHZRXOGGR
ZKDWHYHUKHZDQWHGWR´
$OPDWHVWLILHGWKDWWKHKDUDVVPHQWLQFUHDVHGWRWKHSRLQW
WKDW VKH ZDV SURSRVLWLRQHG RU WRXFKHG LQDSSURSULDWHO\ LQ
YLUWXDOO\HYHU\FODVV$OPDDOVRWHVWLILHGWKDWWKHPRUHVKH
FRPSODLQHGWRWKHSULQFLSDOVHYHQWKRXJKWKH\VSRNHWRWKH
VWXGHQWVWKHKDUDVVPHQWVHHPHGWRLQFUHDVHDQGVKHLQGLFDWHG
VKHJUHZOHHU\RIWDONLQJWRDQ\RQH
,Q0D\SXUVXDQWWRWKH6SHQFHU+DUDVVPHQW3ROLF\
$OPDILOHGDFRPSODLQWDOOHJLQJYLRODWLRQVRI7LWOH,;7KH
FRPSODLQW OLVWHG GHWDLOHG LQVWDQFHV RI VH[XDOO\ KDUDVVLQJ
FRQGXFW 6SHQFHU WRRN QR DFWLRQ WR DGGUHVV WKH VSHFLILF
KDUDVVPHQWDOOHJDWLRQVEHIRUHVFKRROVWDUWHGLQ$XJXVW
,QVWHDGWKH7LWOH,;&RRUGLQDWRUDOORZHG$OPDWRFRPSOHWH
WKHUHPDLQLQJIHZZHHNVDWKRPH$OPD¶VFRPSODLQWZDVQRW
SUHVHQWHGWRWKH6SHQFHU¶VQHZ6XSHULQWHQGHQWZKREHJDQLQ
-XO\$GGLWLRQDOO\6SHQFHUWRRNWKHSRVLWLRQWKDWLWGLG
QRWKDYHHQRXJKLQIRUPDWLRQWRLQYHVWLJDWH$OPD¶VVSHFLILF
DOOHJDWLRQV
$WWKHEHJLQQLQJRIWKHVFKRRO\HDU6SHQFHU
GLVFXVVHGLWVQHZVH[XDOKDUDVVPHQWSROLF\DWWKHKLJKVFKRRO
)URP $XJXVW WKURXJK $XJXVW $OPD DWWHQGHG
-- 5 of 12 --
9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
1R
VFKRRO6KHWHVWLILHGWKDWJURXSVRIVWXGHQWVFRQWLQXHGWRDVN
IRU VH[XDO IDYRUV WRXFK KHU LQ ZD\V WKDW PDGH KHU
XQFRPIRUWDEOHDQGKLWKHUZLWKERRNV'XULQJWKLVVDPHWLPH
SHULRG $OPD DWWHQGHG VFKRRO VH[XDO KDUDVVPHQW
SUHVHQWDWLRQV6SHQFHUDOVRSURYLGHGVH[XDOKDUDVVPHQWDQG
GLVFULPLQDWLRQWUDLQLQJWRDOOLWVHPSOR\HHV
$OPDZDVGLDJQRVHGZLWKGHSUHVVLRQ2QKHUODVWGD\DW
WKHKLJKVFKRRODER\WROGKHUKHZDVSDUWRIWKH...DV
ZHUHKLVIDPLO\PHPEHUVDQGWKH\ZHUHJRLQJWRJRWRKHU
KRPHDQGEXUQLWGRZQEHFDXVHDOO*HUPDQVVKRXOGEHEXUQHG
DQGVHQWWRKHOO
2Q$XJXVW$OPDZLWKGUHZ,QWKHIDOORI
WKH 6SHQFHU %RDUG RI (GXFDWLRQ WKH ³%RDUG´ UHFHLYHG
$OPD¶VFRPSODLQWV7KH%RDUGLQYLWHGKHUDQGKHUPRWKHUWR
PHHWZLWKWKHP8SRQDGYLFHRIFRXQVHOQHLWKHU$OPDQRU
KHUPRWKHUPHWZLWKWKH%RDUG
2Q-XO\$OPDE\DQGWKURXJKKHUPRWKHUILOHG
KHU FRPSODLQW 6KH DOOHJHG WKDW 6SHQFHU DV D IXQGLQJ
UHFLSLHQW KDG VXEMHFWHG KHU WR LQWHQWLRQDO VH[XDO
GLVFULPLQDWLRQDVDUHVXOWRISHHUFRQGXFWLQYLRODWLRQRI7LWOH
,;RIWKH(GXFDWLRQ$PHQGPHQWVRI6WDWDV
DPHQGHG86&HWVHTDQGWKH.HQWXFN\&LYLO
5LJKW $FW $OPD DOVR DOOHJHG WKDW 6SHQFHU GLVFULPLQDWHG
DJDLQVWKHURQWKHEDVLVRIKHUQDWLRQDORULJLQE\IDLOLQJWR
WDNHDSSURSULDWHDFWLRQIRUWKHDOOHJHGKRVWLOHHQYLURQPHQW
FDXVHGE\KHUSHHUVZKRDOOHJHGO\KDUDVVHGKHUDWVFKRROLQ
YLRODWLRQRI86&G
2Q 6HSWHPEHU D MXU\ WULDO FRPPHQFHG $W WKH
FORVHRI3ODLQWLII¶VSURRIDQGDJDLQDWWKHFRQFOXVLRQRIDOORI
WKHHYLGHQFHWKH%RDUGPRYHGIRUVXPPDU\MXGJPHQWDVD
PDWWHURIODZSXUVXDQWWR)HGHUDO5XOHRI&LYLO3URFHGXUH
7KHWULDOFRXUWGHQLHGERWKPRWLRQVDQGVXEPLWWHGWKHFDVHWR
WKHMXU\7KHMXU\UHWXUQHGLWVYHUGLFWLQIDYRURI$OPDRQDOO
FRXQWVDQGDZDUGHGKHU
1R 9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
KDUDVVPHQWEDVHGXSRQVH[$OWKRXJKWKH6XSUHPH&RXUWGLG
QRWKROGWKDWWKHKDUDVVPHQWKDGWRKDYHEHHQRID³VH[XDO
QDWXUH´ WKH ³VH[XDO QDWXUH´ UHTXLUHPHQW GLG QRW SUHMXGLFH
'HIHQGDQW
6HFRQGWKHMXU\KHDUGWKHIROORZLQJHYLGHQFHLQWKHIDOO
RI³LQYLUWXDOO\HYHU\FODVV>$OPD@ZDVDVNHGIRUDEORZ
MREDVNHGIRUVH[XDOIDYRUVZDVWRXFKHGLQXQFRPIRUWDEOH
ZD\V´ $OPD ZDV UHSHDWHGO\ KLW ZLWK ERRNV E\ JURXSV RI
VWXGHQWV KHU PRWKHU FDPH WR VFKRRO WR JHW KHU RQ WKUHH
GLIIHUHQWRFFDVLRQVZKHUHVKHKDGDKLJKIHYHUEHFDXVHVKH
FRXOGQRWWROHUDWHWKHDEXVHDQ\ORQJHUDQGWKDW$OPDZDV
GLDJQRVHGZLWKGHSUHVVLRQDQGZLWKGUHZIURPVFKRRO7KXV
WKH MXU\ HQWHUWDLQHG HYLGHQFH HYLQFLQJ D EDU WR $OPD¶V
HGXFDWLRQ
)LQDOO\ERWK$OPDDQGKHUPRWKHUKDGDOHUWHG6SHQFHURQ
QXPHURXVRFFDVLRQVFRQFHUQLQJKLJKO\LQDSSURSULDWHFRQGXFW
LQFOXGLQJSK\VLFDODVVDXOW+RZHYHUWKHMXU\KHDUGWHVWLPRQ\
WKDWLQUHVSRQVHWRWKHVHLQFLGHQWV6SHQFHU³VSRNH´WRWKH
RIIHQGHUV 2Q DW OHDVW WKUHH VHSDUDWH RFFDVLRQV LQYROYLQJ
DVVDXOWLYHEHKDYLRU6SHQFHU¶VUHVSRQVHDOWKRXJKLQHIIHFWLYH
UHPDLQHGH[DFWO\WKHVDPH7KXVWKHMXU\KHDUGHYLGHQFH
FRQILUPLQJ 6SHQFHU¶V ZLOOLQJQHVV WR UHSHDW LQHIIHFWLYH
PHDVXUHVWLPHDQGWLPHDJDLQ+DYLQJKHDUGWKLVHYLGHQFH
WKH MXU\ FRXOG KDYH UHDVRQDEOH DVVXPHG WKDW 6SHQFHU
XQGHUVWRRGWKDWRQHLQHIIHFWLYHUHVSRQVHFRXOGOHDGWRDWOHDVW
WZRRWKHUV
9
7KH GLVWULFW FRXUW¶V RUGHU WR GHQ\ 'HIHQGDQW¶V 5XOH
PRWLRQLVDIILUPHG
-- 6 of 12 --
9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
1R
FUHDWH DQG LQWLPLGDWLQJ KRVWLOH RU RIIHQVLYH
HQYLURQPHQW"
:DVDQDSSURSULDWHSHUVRQLQIRUPHGRIWKHKRVWLOH
HQYLURQPHQW"
'LGWKH'HIHQGDQW6FKRRO'LVWULFWWUHDWWKHUHSRUWLQJ
RIWKHKRVWLOHHQYLURQPHQWZLWKGHOLEHUDWHLQGLIIHUHQFH"
,QH[SODLQLQJ³GHOLEHUDWHLQGLIIHUHQFH´WKHMXU\LQVWUXFWLRQ
VWDWHG
³'HOLEHUDWH ,QGLIIHUHQFH´ PHDQV PRUH WKDQ PHUH
³UHFNOHVVQHVV´ RQ WKH SDUW RI WKH DSSURSULDWH SHUVRQ
³5HFNOHVVQHVV´ UHTXLUHV RQO\ SURRI WKDW D UHDVRQDEOH
SHUVRQZRXOGKDYHDSSUHFLDWHGWKHJUHDWGHJUHHRIULVNRI
KDUP WR WKH SODLQWLII ,Q RUGHU IRU DQ DFW WR EH
³GHOLEHUDWH´WKHSDUWLFXODUDSSURSULDWHSHUVRQPXVWKDYH
EHHQ VKRZQ WR KDYH EHHQ DZDUH WKDW DGYHUVH
FRQVHTXHQFHV IURP KLV RU KHU DFWLRQ ZHUH FHUWDLQ RU
VXEVWDQWLDOO\FHUWDLQWRFDXVHWKHKDUP%HIRUH\RXFDQ
ILQG WKDW DQ\ DSSURSULDWH SHUVRQ ZDV GHOLEHUDWHO\
LQGLIIHUHQWWKHSODLQWLIIPXVWSURYHWKDWWKHDSSURSULDWH
SHUVRQZDVDZDUHWKDWDSDUWLFXODUDFWRULQDFWLRQZDV
FHUWDLQRUVXEVWDQWLDOO\FHUWDLQWRFDXVHWKH3ODLQWLIIKDUP
DQGWKDWWKHDSSURSULDWHSHUVRQGHFLGHGWRDFWRUQRWWR
DFWLQVSLWHRIWKDWNQRZOHGJH
,QWKHLQVWDQWFDVHWKHTXHVWLRQVWKHMXU\DGGUHVVHGGLIIHU
IURPWKHVWDQGDUGWKH6XSUHPH&RXUWDQQRXQFHGLQ'DYLVLQ
WKH IROORZLQJ ZD\V WKH &RXUW GLG QRW VWDWH WKDW WKH
FRQGXFWPXVWEHRID³VH[XDOQDWXUH´DQG WKH&RXUWVWDWHG
WKDWWKHFRQGXFWPXVW³HIIHFWLYHO\EDU>@WKHYLFWLP¶VDFFHVVWR
DQHGXFDWLRQDORSSRUWXQLW\RUEHQHILW´'DYLV86DW
:H ILQG WKDW WKH VOLJKW QXDQFHV EHWZHHQ WKH 'DYLV
VWDQGDUG DQG WKH MXU\ LQVWUXFWLRQV ZHUH QHLWKHU FRQIXVLQJ
PLVOHDGLQJQRUSUHMXGLFLDO
)LUVW LQ 'DYLV WKH 6XSUHPH &RXUW DGGUHVVHG ³JHQGHU
RULHQWHG FRQGXFW´ ,G DW +HUH WKH MXU\ DGGUHVVHG
1R 9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
,Q WKH EULHIV EHIRUH WKLV &RXUW RQ DSSHDO QHLWKHU 3ODLQWLII QRU
'HIHQGDQW KDYH DGGUHVVHG 3ODLQWLII¶V QDWLRQDO RULJLQ FODLP 86&
G RU KHU .HQWXFN\ &LYLO 5LJKWV $FW FODLP %HFDXVH WKH SDUWLHV
KDYH RQO\ DGGUHVVHG 3ODLQWLII¶V 7LWOH ,; FODLP RQ DSSHDO WKLV &RXUW ZLOO
RQO\ DGGUHVV WKDW FODLP 6HH $KOHUV Y 6FKHELO )G WK
&LU KROGLQJ FODLPV WKDW DSSHOODQW IDLOHG WR DGGUHVV LQ EULHI RQ
DSSHDO IURP DGYHUVH VXPPDU\ MXGJPHQW ZHUH ZDLYHG FLWLQJ 7KDGGHXV;
Y %ODWWHU )G Q WK &LU 0F0XUSK\ Y &LW\ RI
)OXVKLQJ )G WK &LU
6SHQFHU DSSHDOV WKH ORZHU FRXUW¶V GHQLDO RI LWV 5XOH
PRWLRQ
,,
,QUHYLHZLQJDPRWLRQIRUDMXGJPHQWDVDPDWWHURIODZ
XQGHU)HGHUDO5XOHRI&LYLO3URFHGXUHWKLV&RXUWDSSOLHV
WKHVDPHVWDQGDUGWKDWWKHGLVWULFWFRXUWXVHV6HH+XUWY
&R\QH&\OLQGHU&R)G WK&LU
7KH &RXUW ZLOO WKHUHIRUH FRQVLGHU ³WKH HYLGHQFH LQ D OLJKW
PRVWIDYRUDEOHWRWKHSDUW\DJDLQVWZKRPWKHPRWLRQLVPDGH
JLYLQJ WKDW SDUW\ WKH EHQHILW RI DOO UHDVRQDEOH LQIHUHQFHV
7XFNY+&$+HDOWK6HUYV,QF)G WK&LU
$FFRUGLQJO\ MXGJPHQW DV D PDWWHU RI ODZ ZLOO EH
SURSHUZKHUHWKHUHLVQROHJDOO\VXIILFLHQWHYLGHQWLDU\EDVLV
IRUDUHDVRQDEOHMXU\WRILQGIRUWKHQRQPRYLQJSDUW\RQWKDW
LVVXH RU ZKHUH D FODLP RU GHIHQVH FDQQRW XQGHU WKH
FRQWUROOLQJODZEHPDLQWDLQHGRUGHIHDWHGZLWKRXWDIDYRUDEOH
ILQGLQJRQWKDWLVVXH6HH)HG5&LY3 D ³7KHFRXUW
VKRXOG QRW ZHLJK WKH HYLGHQFH HYDOXDWH WKH FUHGLELOLW\ RI
ZLWQHVVHV RU VXEVWLWXWH LWV MXGJPHQW IRU WKDW RI WKH MXU\
UDWKHULWPXVWYLHZWKHHYLGHQFHLQWKHOLJKWPRVWIDYRUDEOH
WRWKHSDUW\DJDLQVWZKRPWKHPRWLRQLVPDGHDQGJLYHWKDW
SDUW\ WKH EHQHILW RI DOO UHDVRQDEOH LQIHUHQFHV´ %ODFN Y
5\GHU3,( 1DWLRQZLGH ,QF )G WK &LU
FLWLQJ $JULVWRU /HDVLQJ Y $2 6PLWK +DUYHVWRUH
3URGV,QF)G WK&LU
-- 7 of 12 --
9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
1R
,,,
$OPDEULQJVKHU7LWOH,;FODLPEDVHGRQVWXGHQWRQVWXGHQW
VH[XDOKDUDVVPHQW7LWOH,;SURYLGHVLQUHOHYDQWSDUW
1RSHUVRQLQWKH8QLWHG6WDWHVVKDOORQWKHEDVLVRIVH[
EHH[FOXGHGIURPSDUWLFLSDWLRQLQEHGHQLHGWKHEHQHILWV
RI RU EH VXEMHFWHG WR GLVFULPLQDWLRQ XQGHU DQ\
HGXFDWLRQDO SURJUDP RU DFWLYLW\ UHFHLYLQJ )HGHUDO
ILQDQFLDODVVLVWDQFH
86&
:KLOHWKLVDFWLRQZDVSHQGLQJDSSHDOWKH6XSUHPH&RXUW
GHFLGHGWKDWUHFLSLHQWVRIIHGHUDOIXQGVOLNH6SHQFHUPD\EH
OLDEOH IRU GDPDJHV XQGHU 7LWOH ,; IRU VWXGHQWRQVWXGHQW
VH[XDO KDUDVVPHQW 6HH 'DYLV Y 0RQURH &RXQW\ %G RI
(GXF86 VHHDOVR6RSHUY+REHQ
)G WK&LU DSSO\LQJ'DYLVDQDO\VLVWR
IDFWVRFFXUULQJLQDQGDIWHURUDODUJXPHQWVLQWKHFDVH
FHUW GHQLHG 6&W ,Q WKH LQVWDQW DFWLRQ
WKHUHLVQRGLVSXWHWKDW6SHQFHUUHFHLYHVIHGHUDOIXQGLQJDQG
LV WKHUHIRUH OLDEOH IRU 7LWOH ,; VWXGHQWRQVWXGHQW VH[XDO
KDUDVVPHQW7KHLVVXHEHIRUHWKLV&RXUWLVZKHWKHU3ODLQWLII
KDVVDWLVILHGWKHSULPDIDFLHHOHPHQWVIRUKHUFODLP
,Q'DYLVWKH6XSUHPH&RXUWHVWDEOLVKHGWKDW7LWOH,;PD\
VXSSRUW D FODLP IRU VWXGHQWRQVWXGHQW VH[XDO KDUDVVPHQW
ZKHQWKHSODLQWLIIFDQGHPRQVWUDWHWKHIROORZLQJHOHPHQWV
WKHVH[XDOKDUDVVPHQWZDVVRVHYHUHSHUYDVLYHDQG
REMHFWLYHO\RIIHQVLYHWKDWLWFRXOGEHVDLGWRGHSULYHWKH
SODLQWLII RI DFFHVV WR WKH HGXFDWLRQDO RSSRUWXQLWLHV RU
EHQHILWVSURYLGHGE\WKHVFKRRO
WKH IXQGLQJ UHFLSLHQW KDG DFWXDO NQRZOHGJH RI WKH
VH[XDOKDUDVVPHQWDQG
WKHIXQGLQJUHFLSLHQWZDVGHOLEHUDWHO\LQGLIIHUHQWWR
WKHKDUDVVPHQW
1R 9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
WKH DOOHJDWLRQV DQG LQLWLDWHG WHUPLQDWLRQ SURFHHGLQJV RQFH
WKH\REWDLQHGFRQFOXVLYHSURRIRIWKHUHODWLRQVKLS6HHLG
+HUH WKH RQO\ HYLGHQFH EHIRUH WKLV &RXUW UHIOHFWLQJ WKH
'HIHQGDQW¶VUHVSRQVHVWRWKHVWDEELQJLQFLGHQWVFLHQFHURRP
LQFLGHQWDQG7LWOH,;FRPSODLQWLQYROYHVWDONLQJWRVWXGHQWV
$WQRWLPHGLG6SHQFHUHYHUUHVSRQGWRWKHGHJUHHDQGNLQG
DV WKRVH DXWKRULWLHV LQ 6RSHU $OWKRXJK 7LWOH ,; GRHV QRW
UHTXLUHFHUWDLQVSHFLILFUHVSRQVHVLWGRHVUHTXLUHDUHDVRQDEOH
UHVSRQVHZKLFK6SHQFHUIDLOHGWRSURYLGH
,9
,QLWVEULHIRQDSSHDO'HIHQGDQWDUJXHVWKDWWKLVFDVHZDV
WULHGDQGVXEPLWWHGWRWKHMXU\ZLWKDQLQDSSURSULDWHVWDQGDUG
RIOLDELOLW\)RUWKHUHDVRQVWKDWIROORZZHUHMHFW'HIHQGDQW¶V
DUJXPHQW
³7KHVWDQGDUGRIUHYLHZIRUMXU\LQVWUXFWLRQVLVWKDWWKH\DUH
μUHYLHZHGDVDZKROHWRGHWHUPLQHZKHWKHUWKH\DGHTXDWHO\
LQIRUPWKHMXU\RIUHOHYDQWFRQVLGHUDWLRQVDQGSURYLGHDEDVLV
LQODZIRUWKHMXU\WRUHDFKLWVGHFLVLRQ¶´,QQHVY+RZHOO
&RUS)G WK&LU TXRWLQJ%HDUG
Y 1RUZHJLDQ &DULEEHDQ /LQHV )G WK &LU
³7KH GLVWULFW FRXUW ³PD\ EH UHYHUVHG RQO\ LI WKH
LQVWUXFWLRQVYLHZHGDVDZKROHZHUHFRQIXVLQJPLVOHDGLQJ
RUSUHMXGLFLDO´,QQHV)GDW TXRWLQJ%HDUG
)GDW
$FFRUGLQJWRWKH9HUGLFW)RUPWKHMXU\UHVSRQGHGWRWKH
IROORZLQJHOHPHQWVLQWKHDIILUPDWLYH
:DV 3ODLQWLII $OPD 0F*RZHQ VXEMHFWHG WR DQ
XQZHOFRPH KRVWLOH VH[XDO KDUDVVPHQW LQ WKH IRUP RI
VH[XDO DGYDQFHV UHTXHVWV IRU VH[XDO IDYRUV RU RWKHU
YHUEDORUSK\VLFDOFRQGXFWRIDVH[XDOQDWXUHDQGZDV
WKHKDUDVVPHQWFRPSODLQHGRIEDVHGXSRQVH[DQGGLG
WKH DOOHJHG VH[XDO KDUDVVPHQW KDYH WKH HIIHFW RI
XQUHDVRQDEO\LQWHUIHULQJZLWK3ODLQWLII¶VHGXFDWLRQDQG
-- 8 of 12 --
9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
1R
,QWKHLQVWDQWFDVH6SHQFHUUHVSRQGHGWRVHYHUDORI$OPD¶V
FRPSODLQWV E\ ³WDONLQJ´ WR WKH RIIHQGHUV +RZHYHU WKH
KDUDVVLQJFRQGXFWQRWRQO\FRQWLQXHGEXWDOVRLQFUHDVHGDVD
UHVXOW,QIDFWVRPHRI$OPD¶VRIIHQGHUVFRQIURQWHGKHUDIWHU
WKH\KDGEHHQ³WDONHG´WRLQRUGHUWRKDUDVV$OPDDJDLQ$V
LQ&DQW\RQFH6SHQFHUKDGNQRZOHGJHWKDWLWVUHVSRQVHZDV
LQDGHTXDWHLWZDVUHTXLUHGWRWDNHIXUWKHUUHDVRQDEOHDFWLRQ
LQOLJKWRIWKHFLUFXPVWDQFHVWRDYRLGQHZOLDELOLW\
%HFDXVHRI6SHQFHU¶VGHOLEHUDWHLQGLIIHUHQFHLWLVUHDGLO\
GLVWLQJXLVKDEOHIURP6RSHUY+REHQ)G WK
&LU ,Q6RSHUDPDOHVSHFLDOHGXFDWLRQVWXGHQWNLVVHG
SODLQWLIIDOVRDVSHFLDOHGXFDWLRQVWXGHQWZKLOHRIIVFKRRO
JURXQGV3ODLQWLII¶VPRWKHUFRPSODLQHGWRSODLQWLII¶VWHDFKHU
ZKRDVVXUHGKHUWKDWVKHZRXOGZDWFKWKHPDOHVWXGHQW6HH
LGDW/DWHUDIWHUSODLQWLIIWUDQVIHUUHGWRDQRWKHUVFKRRO
VKHWROGKHUPRWKHUWKDWWKHVDPHPDOHVWXGHQWKDGUDSHGKHU
DWVFKRRODQGWZRRWKHUPDOHVWXGHQWVKDGIRQGOHGKHULQWKH
EDFNRIWKHFODVVURRPZKLOHWKHWHDFKHUZDVRXWVLGHLQWKH
KDOOZD\ 6HH LG $IWHU SODLQWLII¶V PRWKHU UHSRUWHG WKHVH
LQFLGHQWVVFKRRODXWKRULWLHVLPPHGLDWHO\FRQWDFWHGWKHSURSHU
DXWKRULWLHV LQYHVWLJDWHG WKH LQFLGHQWV WKHPVHOYHV LQVWDOOHG
ZLQGRZV LQ WKH GRRUV RI WKH VSHFLDO HGXFDWLRQ FODVVURRP
SODFHG DQ DLGH LQ SODLQWLII¶V FODVVURRP RIIHUHG SODLQWLII
LQFUHDVHGVXSHUYLVLRQDQGDQHVFRUWDQGFUHDWHGFRXQVHOLQJ
VHVVLRQVRQKRZWRIXQFWLRQVRFLDOO\ZLWKWKHRSSRVLWHVH[
6HH LG DW ,Q UHMHFWLQJ SODLQWLII¶V 7LWOH ,; FODLP IRU
VH[XDO KDUDVVPHQW WKLV &RXUW VWDWHG ³WKH SURPSW DQG
WKRURXJK UHVSRQVH E\ VFKRRO RIILFLDOV WR WKH >SODLQWLII¶V@
FRPSODLQWZDVQRWμFOHDUO\XQUHDVRQDEOHLQOLJKWRIWKHNQRZQ
FLUFXPVWDQFHV¶´,G TXRWLQJ'DYLV86DW
$ VLPLODUO\ GLVWLQJXLVKDEOH FDVH LV .LQPDQ Y 2PDKD
3XEOLF6FKRRO'LVWULFW)G WK&LU
7KHUHWKH(LJKWK&LUFXLWUHMHFWHGSODLQWLII¶V7LWOH,;FODLP
XQGHUWKHGHOLEHUDWHLQGLIIHUHQFHVWDQGDUGEHFDXVHRQFHWKH
VFKRROGLVWULFWKDGDFWXDONQRZOHGJHRIDVH[XDOUHODWLRQVKLS
EHWZHHQSODLQWLIIDQGDWHDFKHULW³GLGQRWμWXUQDEOLQGH\H
DQGGRQRWKLQJ¶´,GDW5DWKHUWKHGLVWULFWLQYHVWLJDWHG
1R 9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
³:LWKLQ WKH FRQWH[W RI 7LWOH ,; D VWXGHQW¶V FODLP RI KRVWLOH
HQYLURQPHQW FDQ DULVH IURP D VLQJOH LQFLGHQW´ 'RH Y 6FKRRO $GPLQ
'LVW 1R ) 6XSS G ' 0H FLWLQJ %URZQ Y +RW
6H[\ 6DIHU 3URGXFWLRQV )G Q VW &LU QRWLQJ
WKDW ³>Z@H GR QRW KROG WKDW D RQHWLPH HSLVRGH LV QRW SHU VH LQFDSDEOH RI
VXVWDLQLQJ D KRVWLOH HQYLURQPHQW FODLP´
6RSHUY+REHQ)G WK&LU FLWLQJ
'DYLV86DW
$V H[SODLQHG EHORZ $OPD KDV SUHVHQWHG HYLGHQFH WKDW
VDWLVILHVHDFKRIWKHVHWKUHHHOHPHQWV
$
$OPDKDVSURYLGHGHYLGHQFHHYLQFLQJVH[XDOKDUDVVPHQW
FRQVLVWHQW ZLWK WKH 'DYLV VHYHULW\ DQG SHUYDVLYHQHVV
UHTXLUHPHQW ,Q 'DYLV D PDOH VWXGHQW IRQGOHG D IHPDOH
VWXGHQW¶VEUHDVWVVSRNHLQYXOJDUODQJXDJHWRKHUHQJDJHGLQ
VH[XDOO\VXJJHVWLYHEHKDYLRUWRZDUGKHUWROGKHU³,ZDQWWR
JHWLQWREHGZLWK\RX´DQG³,ZDQWWRIHHO\RXUERREV´DQG
SODFHG D GRRU VWRS LQ KLV SDQWV DQG DFWHG LQ D VXJJHVWLYH
PDQQHUWRZDUGKHU86DW$WWKHHQGRIWKH
VWULQJ RI LQFLGHQWV WKH PDOH VWXGHQW SOHG JXLOW\ WR VH[XDO
EDWWHU\6HHLGDW$VDUHVXOWRIWKHKDUDVVPHQWSODLQWLII
DOOHJHGWKDWKHUJUDGHV KDG GURSSHGDQGVKHKDGZULWWHQD
VXLFLGHQRWH6HHLG7KH6XSUHPH&RXUWIRXQGWKDWWKHVH
DFWLRQV DPRXQWHG WR VHYHUH SHUYDVLYH DQG REMHFWLYHO\
RIIHQVLYHFRQGXFWSDUWLFXODUO\JLYHQWKHRIIHQVLYHWRXFKLQJ
6HHLGDW
,Q WKH LQVWDQW FDVH DV LQ 'DYLV $OPD KDV VXEPLWWHG
DEXQGDQW HYLGHQFH RI ERWK YHUEDO DQG SK\VLFDO VH[XDO
KDUDVVPHQW$OWKRXJKRQHLQFLGHQWFDQVDWLVI\DFODLP$OPD
KDVSUHVHQWHGVHYHUDOLQVWDQFHVWKDWUHIOHFWQRWRQO\VHYHULW\
DQG SHUYDVLYHQHVV EXW DOVR FLUFXPVWDQFHV WKDW HIIHFWLYHO\
GHQLHGKHUHGXFDWLRQ2QRQHRFFDVLRQ$OPDZDVVWDEEHGLQ
WKHKDQG2QDQRWKHUWZRPDOHVWXGHQWVKHOG$OPDZKLOH
RWKHUV\DQNHGRIIKHUVKLUWSXOOHGKHUKDLUDQGDWWHPSWHGWR
-- 9 of 12 --
9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
1R
GLVUREH7KHVHSK\VLFDODWWDFNVPHUHO\OD\HUWKHWHVWLPRQ\
UHJDUGLQJ YHUEDO SURSRVLWLRQLQJ DQG QDPH FDOOLQJ ,Q
DGGLWLRQ$OPD¶V7LWOH,;FRPSODLQWILOHGZLWK6SHQFHULQ
0D\FXULRXVO\ZDUUDQWHGKHUFRPSOHWLQJKHUVWXGLHVDW
KRPH EXW QRW DQ LQYHVWLJDWLRQ *LYHQ WKH IUHTXHQF\ DQG
VHYHULW\ RI ERWK WKH YHUEDO DQG SK\VLFDO DWWDFNV LW LV QR
ZRQGHUWKDW$OPDZDVGLDJQRVHGZLWKGHSUHVVLRQ*LYHQWKLV
HYLGHQFH$OPDKDVVDWLVILHGWKHVHYHULW\DQGSHUYDVLYHQHVV
UHTXLUHPHQW
%
$OPDKDVVDWLVILHGWKH'DYLVQRWLFHUHTXLUHPHQW,Q'DYLV
WKH6XSUHPH&RXUWVXJJHVWHGWKDWERWKWKHSDUHQWDQGVWXGHQW
KDGVDWLVILHGWKHDFWXDOQRWLFHVWDQGDUGZKHUHWKH\KDGPDGH
UHSHDWHGKDUDVVPHQWFRPSODLQWVWRWKHWHDFKHUDQGSULQFLSDO
86DWVHHDOVR*HEVHUY/DJR9LVWD,QGHS6FK
'LVW86 VWDWLQJWKDWWKHFRPSODLQWGLG
QRWVWDWHDYDOLGFODLPXQGHUWKH7LWOH,;EHFDXVHQRWLFHRI
LQDSSURSULDWH FRPPHQWV E\ D WHDFKHU GXULQJ FODVV ZDV
³SODLQO\LQVXIILFLHQWWRDOHUWWKHSULQFLSDOWRWKHSRVVLELOLW\
WKDW>WKHWHDFKHU@ZDVLQYROYHGLQDVH[XDOUHODWLRQVKLSZLWK
DVWXGHQW´
,Q WKLV FDVH LW LV XQGLVSXWHG WKDW 6SHQFHU KDG DFWXDO
NQRZOHGJH%RWK$OPDDQGKHUPRWKHUPDGHUHSHDWHGUHSRUWV
WR6SHQFHU$OPDLQIRUPHGERWKKHUWHDFKHUVDQGSULQFLSDOV
$OPD¶VPRWKHUPDGHUHSHDWHGUHSRUWVYHUEDOO\DQGLQZULWLQJ
QRWWRPHQWLRQKHU7LWOH,;FRPSODLQWILOHGZLWKWKHVFKRRO
7KXV$OPDKDVVDWLVILHGKHUEXUGHQRIHVWDEOLVKLQJ6SHQFHU¶V
DFWXDONQRZOHGJH
&
7KHSLYRWDOLVVXHEHIRUHXVLVZKDWLVUHTXLUHGRIIHGHUDO
DVVLVWDQFH UHFLSLHQWV XQGHU WKH ³GHOLEHUDWH LQGLIIHUHQFH
VWDQGDUG´7KHUHFLSLHQWLVOLDEOHIRUGDPDJHVRQO\ZKHUHWKH
UHFLSLHQWLWVHOILQWHQWLRQDOO\DFWHGLQFOHDUYLRODWLRQRI7LWOH,;
E\ UHPDLQLQJ GHOLEHUDWHO\ LQGLIIHUHQW WR NQRZQ DFWV RI
KDUDVVPHQW6HH'DYLV86DW GLVFXVVLQJ*HEVHU
1R 9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
,QWKHLQVWDQWFDVH6SHQFHUIDLOHGWRUHVSRQGLQOLJKWRIWKH
NQRZQFLUFXPVWDQFHV2QRQHRFFDVLRQDVWXGHQW¶VKDUDVVLQJ
FRQGXFWFXOPLQDWHGLQVWDEELQJ$OPDLQWKHKDQG:LWKWKH
H[FHSWLRQ RI WDONLQJ WR WKH VWXGHQW WKHUH ZDV QR HYLGHQFH
EHIRUH WKH MXU\ RU WKLV &RXUW WKDW 6SHQFHU WRRN DQ\ RWKHU
DFWLRQZKDWVRHYHU2QDQRWKHURFFDVLRQWZRPDOHVWXGHQWV
KHOG$OPDZKLOHDQRWKHUWRRNRIIKLVSDQWVDQGRWKHUVSXOOHG
KHUKDLUDQGDWWHPSWHGWRULSRIIKHUFORWKHV:LWKUHVSHFWWR
WKDW LQFLGHQW WKH RQO\ HYLGHQFH EHIRUH WKH MXU\ HYLQFLQJ
6SHQFHU¶VUHVSRQVHLVWKDWDFODVVURRPWHDFKHUVSRNHWRWKH
ER\VDQG$OPD7KHUHLVQRHYLGHQFHEHIRUHWKLV&RXUWWKDW
6SHQFHUHYHUGLVFLSOLQHGWKHRIIHQGLQJVWXGHQWVQRULQIRUPHG
ODZHQIRUFHPHQWDVDUHVXOWRIDQ\RIWKHVHLQFLGHQWV2Q\HW
DQRWKHURFFDVLRQ$OPD¶VPRWKHUILOHGDGHWDLOHGFRPSODLQW
ZLWK 6SHQFHU¶V 7LWOH ,; FRRUGLQDWRU $Q LQYHVWLJDWLRQ
KRZHYHUQHYHUUHVXOWHG7KHVHWKUHHLQFLGHQWVDORQHUHIOHFW
DGHOLEHUDWHLQGLIIHUHQFHLQOLJKWRIWKHNQRZQFLUFXPVWDQFHV
)XUWKHUPRUHLQQXPHURXVLQVWDQFHV6SHQFHUFRQWLQXHGWR
XVHWKHVDPHLQHIIHFWLYHPHWKRGVWRQRDFNQRZOHGJHGDYDLO
$OWKRXJK ³WDONLQJ WR WKH RIIHQGHUV´ SURGXFHG QR UHVXOWV
6SHQFHUFRQWLQXHGWRHPSOR\WKLVLQHIIHFWLYHPHWKRG6XFK
FRQWLQXHGLQHIIHFWLYHQHVVPDNHVWKLVFDVHDQDORJRXVWR&DQW\
Y2OG5RFKHVWHU5HJLRQDO6FKRRO'LVWULFW)6XSSG
'0DVV 7KHUHDFRDFKLQWKHGHIHQGDQWVFKRRO
GLVWULFWUDSHGSODLQWLIIDVWXGHQWRQVFKRROSURSHUW\6HHLG
DW,QUHVSRQVHGHIHQGDQWVFKRROGLVWULFWLVVXHGWKHFRDFK
DUHSULPDQGOHWWHU6HHLG/DWHUWKHVFKRROGLVWULFWLVVXHG
WZR PRUH UHSULPDQG OHWWHUV LQ UHVSRQVH WR IXUWKHU
LQDSSURSULDWHFRQWDFWEHWZHHQWKHVWXGHQWDQGWKHFRDFK6HH
LGDW7KHFRXUWKHOGWKDWLWZDVGLVLQJHQXRXVIRUWKH
GHIHQGDQW GLVWULFW WR FRQFOXGH WKDW ZULWWHQ UHSULPDQGV DQG
UHVWULFWLQJWKHFRDFKIURPFRQWDFWZLWKSODLQWLIIZHUH³μWLPHO\
DQGUHDVRQDEOHPHDVXUHVWRHQGWKHKDUDVVPHQW¶´,GDW
TXRWLQJ:LOOV)GDW 7KHFRXUWIXUWKHUUHDVRQHG
WKDW RQFH WKH GHIHQGDQW GLVWULFW KDG NQRZOHGJH WKDW WKH
UHSULPDQGOHWWHUVZHUH³LQDGHTXDWH´WKHGLVWULFWZDVUHTXLUHG
WR³WDNHIXUWKHUVWHSVWRDYRLGQHZOLDELOLW\´,GDW
-- 10 of 12 --
9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
1R
,Q0XUUHOOY6FKRRO'LVWULFW1R)G
WK&LU DPDOHVWXGHQWVH[XDOO\DVVDXOWHGSODLQWLII
DSK\VLFDOO\LPSDLUHGVSHFLDOHGXFDWLRQVWXGHQWRQVHYHUDO
RFFDVLRQV 2Q RQH RFFDVLRQ XSRQ GLVFRYHULQJ WKH WZR
VWXGHQWVDMDQLWRUWROGWKHPWRFOHDQXSDQGUHWXUQHGWKHPWR
FODVV$OWKRXJKWKHWHDFKHUVDOOHJHGO\NQHZDERXWWKHDVVDXOW
WKH\GLGQRWLQIRUPSODLQWLII¶VSDUHQW6HHLGDW$IWHU
DQRWKHUVH[XDODVVDXOWSODLQWLII¶VWHDFKHUVDOOHJHGO\WROGKHU
QRWWRWHOOKHUPRWKHUDERXWWKHLQFLGHQWDQGWRIRUJHWWKDWLW
KDSSHQHG6HHLG$WQRWLPHGLGWKHVFKRROHYHULQIRUPODZ
HQIRUFHPHQWLQYHVWLJDWHQRUGLVFLSOLQHWKHRIIHQGLQJVWXGHQW
6HHLG,QXSKROGLQJSODLQWLII¶VFODLPWKH7HQWK&LUFXLWIRXQG
GHIHQGDQWVFKRROGLVWULFWGHOLEHUDWHO\LQGLIIHUHQWXQGHU7LWOH
,;6HHLGDW
,Q :LOOV Y %URZQ 8QLYHUVLW\ WKH )LUVW &LUFXLW IXUWKHU
HODERUDWHGWKHGHOLEHUDWHLQGLIIHUHQFHVWDQGDUG
,IWKHLQVWLWXWLRQWDNHVWLPHO\DQGUHDVRQDEOHPHDVXUHVWR
HQG WKH KDUDVVPHQW LW LV QRW OLDEOH XQGHU 7LWOH ,; IRU
SULRUKDUDVVPHQW2IFRXUVHLILWOHDUQVWKDWLWVPHDVXUHV
KDYH SURYHG LQDGHTXDWH LW PD\ EH UHTXLUHG WR WDNH
IXUWKHUVWHSVWRDYRLGQHZOLDELOLW\
)G VW&LU LQWHUQDOFLWDWLRQVRPLWWHG
,Q'RHY6FKRRO$GPLQ'LVW1R)6XSSG
'0H WKHFRXUWKHOGWKDWDMXU\FRXOGILQGWKDW
WKHIROORZLQJDPRXQWHGWRXQUHDVRQDEOHUHVSRQVHVLQOLJKWRI
NQRZQ FLUFXPVWDQFHV DIWHU YDULRXV VFKRRO SHUVRQQHO
FRPSODLQHGWRWKHSULQFLSDOWKDWDIHPDOHWHDFKHUZDVKDYLQJ
VH[ZLWKPDOHVWXGHQWVWKHSULQFLSDOGLGQRWLQYHVWLJDWHQRU
FRQIURQWWKHIHPDOHWHDFKHUZLWKWKHVSHFLILFDOOHJDWLRQV
WKHSULQFLSDOZDUQHGDVXEVWLWXWHWHDFKHUWKDWVKHFRXOGEH
VXHGIRUVODQGHUIRUWHOOLQJKLPWKDWWKHIHPDOHWHDFKHUZDV
KDYLQJ VH[ ZLWK D PDOH VWXGHQW DQG PDGH QR HIIRUW WR
LQYHVWLJDWHWKHPDWWHUDQG UDWKHUWKDQDQLQYHVWLJDWLRQWKH
VXSHULQWHQGHQWWROGWKHSULQFLSDOWRTXHVWLRQVRPHRIWKHPDOH
VWXGHQWVDERXWWKHDOOHJDWLRQV
1R 9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
Y /DJR 9LVWD 6FKRRO 'LVW VWDWLQJ OLDELOLW\ DURVH IURP
UHFLSLHQW¶V RIILFLDO GHFLVLRQ QRW WR UHPHG\ WKH YLRODWLRQ
³>7@KH GHOLEHUDWH LQGLIIHUHQFH PXVW DW D PLQLPXP μFDXVH
>VWXGHQWV@WRXQGHUJR¶KDUDVVPHQWRUμPDNHWKHPOLDEOHRU
YXOQHUDEOH¶WRLW´'DYLV86DW
,QGHVFULELQJWKHSURRIQHFHVVDU\WRVDWLVI\WKHVWDQGDUGWKH
6XSUHPH &RXUW VWDWHG WKDW D SODLQWLII PD\ GHPRQVWUDWH
GHIHQGDQW¶V GHOLEHUDWH LQGLIIHUHQFH WR GLVFULPLQDWLRQ ³RQO\
ZKHUH WKH UHFLSLHQW¶V UHVSRQVH WR WKH KDUDVVPHQW RU ODFN
WKHUHRI LV FOHDUO\ XQUHDVRQDEOH LQ OLJKW RI WKH NQRZQ
FLUFXPVWDQFHV´,GDW&I)DUPHUY%UHQQDQ86
KROGLQJWKDWDSULVRQRIILFLDOPD\EHOLDEOH
XQGHUWKH(LJKWK$PHQGPHQWEDVHGRQGHOLEHUDWHLQGLIIHUHQFH
WR WKH VDIHW\ RI SULVRQHUV LI KH NQRZV RI DQG UHVSRQGV
XQUHDVRQDEO\WR³DVXEVWDQWLDOULVNRIVHULRXVKDUP´ *DQWY
:DOOLQJIRUG%GRI(GXF)G G&LU VWDWLQJ
WKDW XQGHU D VWXGHQWRQVWXGHQW UDFLDO KDUDVVPHQW
FODLP GRHV QRW UHTXLUH SURRI WKDW ³WKH GHIHQGDQW IXOO\
DSSUHFLDWHGWKHKDUPIXOFRQVHTXHQFHVRIWKDWGLVFULPLQDWLRQ
EHFDXVHGHOLEHUDWHLQGLIIHUHQFHLVQRWWKHVDPHDVDFWLRQ RU
LQDFWLRQ WDNHQ μPDOLFLRXVO\ RU VDGLVWLFDOO\ IRU WKH YHU\
SXUSRVHRIFDXVLQJKDUP¶´ TXRWLQJ)DUPHU86DW
LQWHUQDOTXRWDWLRQPDUNVRPLWWHG
7KHUHFLSLHQWLVQRWUHTXLUHGWR³UHPHG\´VH[XDOKDUDVVPHQW
QRU HQVXUH WKDW VWXGHQWV FRQIRUP WKHLU FRQGXFW WR FHUWDLQ
UXOHVEXWUDWKHU³WKHUHFLSLHQWPXVWPHUHO\UHVSRQGWRNQRZQ
SHHUKDUDVVPHQWLQDPDQQHUWKDWLVQRWFOHDUO\XQUHDVRQDEOH´
'DYLV 86 DW 7KH GHOLEHUDWH LQGLIIHUHQFH
VWDQGDUG³GRHVQRWPHDQWKDWUHFLSLHQWVFDQDYRLGOLDELOLW\
RQO\E\SXUJLQJWKHLUVFKRROVRIDFWLRQDEOHSHHUKDUDVVPHQW
RUWKDWDGPLQLVWUDWRUVPXVWHQJDJHLQSDUWLFXODUGLVFLSOLQDU\
DFWLRQ´ ,G DW 7KH VWDQGDUG GRHV QRW PHDQ WKDW
UHFLSLHQWVPXVWH[SHOHYHU\VWXGHQWDFFXVHGRIPLVFRQGXFW
6HHLG9LFWLPVGRQRWKDYHDULJKWWRSDUWLFXODUUHPHGLDO
GHPDQGV 6HH LG )XUWKHUPRUH FRXUWV VKRXOG QRW VHFRQG
JXHVV WKH GLVFLSOLQDU\ GHFLVLRQV WKDW VFKRRO DGPLQLVWUDWRUV
PDNH6HHLG
-- 11 of 12 --
9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
1R
,Q 'DYLV WKH 6XSUHPH &RXUW FLWHG WKH 'HSDUWPHQW RI (GXFDWLRQ
2IILFH RI &LYLO 5LJKWV 6H[XDO +DUDVVPHQW *XLGDQFH +DUDVVPHQW RI
6WXGHQWV E\ 6FKRRO (PSOR\HHV 2WKHU 6WXGHQWV RU 7KLUG 3DUWLHV )HG
5HJ 2&5 7LWOH ,; *XLGHOLQHV 'DYLV
86 DW ,Q GHVFULELQJ D VFKRRO GLVWULFW¶V DSSURSULDWH UHVSRQVH WR
NQRZQ VH[XDO KDUDVVPHQW WKH 2&5 7LWOH ,; *XLGHOLQHV VWDWH
³7KH6XSUHPH&RXUWKDVSRLQWHGO\UHPLQGHGXVKRZHYHU
WKDW WKLV LV μQRW D PHUH ³UHDVRQDEOHQHVV´ VWDQGDUG¶ WKDW
WUDQVIRUPV HYHU\ VFKRRO GLVFLSOLQDU\ GHFLVLRQ LQWR D MXU\
TXHVWLRQ´*DQW)GDW TXRWLQJ'DYLV86DW
,QDQDSSURSULDWHFDVHWKHUHLVQRUHDVRQZK\FRXUWVRQ
PRWLRQIRUDGLUHFWHGYHUGLFWFRXOGQRWLGHQWLI\DUHVSRQVHDV
QRW³FOHDUO\XQUHDVRQDEOH´DVDPDWWHURIODZ6HH*DQW
)GDW
$VDQLQLWLDOPDWWHU6SHQFHUDOOHJHVWKDWWKHLQWHQWVWDQGDUG
JRYHUQV 7LWOH ,; VWXGHQWRQVWXGHQW FODLPV (VVHQWLDOO\
DFFRUGLQJ WR 'HIHQGDQW DV ORQJ DV D VFKRRO GLVWULFW GRHV
VRPHWKLQJ LQ UHVSRQVH WR KDUDVVPHQW LW KDV VDWLVILHG WKH
VWDQGDUG)XUWKHUPRUHDFFRUGLQJWR'HIHQGDQW6SHQFHUGLG
VRPHWKLQJLQUHVSRQVHWR$OPD¶VDOOHJDWLRQV$IWHUUHYLHZLQJ
WKHUHFRUGWKHEULHIVRIERWKSDUWLHVDQGWKHDSSOLFDEOHODZ
DQG KDYLQJ KDG WKH EHQHILW RI RUDO DUJXPHQW ZH UHMHFW
'HIHQGDQW¶V XQGHUVWDQGLQJ RI WKH GHOLEHUDWH LQGLIIHUHQFH
VWDQGDUG
7KHVWDQGDUGDQQRXQFHGE\WKH6XSUHPH&RXUWLVD³FOHDUO\
XQUHDVRQDEOHUHVSRQVHLQOLJKWRIWKHNQRZQFLUFXPVWDQFHV´
'DYLV86DW,IWKLV&RXUWZHUHWRDFFHSW6SHQFHU¶V
DUJXPHQWDVFKRROGLVWULFWFRXOGVDWLVI\LWVREOLJDWLRQZKHUH
D VWXGHQW KDV EHHQ UDSHG E\ PHUHO\ LQYHVWLJDWLQJ DQG
DEVROXWHO\QRWKLQJPRUH6XFKPLQLPDOLVWUHVSRQVHLVQRW
ZLWKLQWKHFRQWHPSODWLRQRIDUHDVRQDEOHUHVSRQVH$OWKRXJK
QRSDUWLFXODUUHVSRQVHLVUHTXLUHGDQGDOWKRXJKWKHVFKRRO
GLVWULFWLVQRWUHTXLUHGWRHUDGLFDWHDOOVH[XDOKDUDVVPHQWWKH
VFKRROGLVWULFWPXVWUHVSRQGDQGPXVWGRVRUHDVRQDEO\LQ
OLJKW RI WKH NQRZQ FLUFXPVWDQFHV 7KXV ZKHUH D VFKRRO
1R 9DQFHHWDOY6SHQFHU
&RXQW\3XEOLF6FKRROHWDO
>,@W VKRXOG WDNH LPPHGLDWH DQG DSSURSULDWH VWHSV WR LQYHVWLJDWH
RU RWKHUZLVH GHWHUPLQH ZKDW RFFXUUHG DQG WDNH VWHSV UHDVRQDEO\
FDOFXODWHG WR HQG DQ\ KDUDVVPHQW HOLPLQDWH D KRVWLOH
HQYLURQPHQW LI RQH KDV EHHQ FUHDWHG DQG SUHYHQW KDUDVVPHQW
IURP RFFXUULQJ DJDLQ
2&5 7LWOH ,; *XLGHOLQHV )HG5HJ DW
GLVWULFWKDVNQRZOHGJHWKDWLWVUHPHGLDODFWLRQLVLQDGHTXDWH
DQGLQHIIHFWLYHLWLVUHTXLUHGWRWDNHUHDVRQDEOHDFWLRQLQOLJKW
RIWKRVHFLUFXPVWDQFHVWRHOLPLQDWHWKHEHKDYLRU:KHUHD
VFKRRO GLVWULFW KDV DFWXDO NQRZOHGJH WKDW LWV HIIRUWV WR
UHPHGLDWHDUHLQHIIHFWLYHDQGLWFRQWLQXHVWRXVHWKRVHVDPH
PHWKRGVWRQRDYDLOVXFKGLVWULFWKDVIDLOHGWRDFWUHDVRQDEO\
LQOLJKWRIWKHNQRZQFLUFXPVWDQFHV
$V H[DPSOHV RI FRQGXFW VDWLVI\LQJ WKH GHOLEHUDWH
LQGLIIHUHQFHVWDQGDUGFRQVLGHUWKHIROORZLQJFDVHV
,Q'DYLVDPDOHVWXGHQWIRQGOHGDIHPDOHVWXGHQW¶VEUHDVWV
VSRNH LQ YXOJDU ODQJXDJH WR KHU HQJDJHG LQ VH[XDOO\
VXJJHVWLYHEHKDYLRUWRZDUGKHUWROGKHU³,ZDQWWRJHWLQWR
EHGZLWK\RX´DQG³,ZDQWWRIHHO\RXUERREV´DQGSODFHGD
GRRU VWRS LQ KLV SDQWV DQG DFWHG LQ D VXJJHVWLYH PDQQHU
WRZDUGKHU86DW,QDGGLWLRQRWKHUJLUOV
ZKRWKHPDOHVWXGHQWKDUDVVHGVRXJKWDQDXGLHQFHZLWKWKH
SULQFLSDOZKLFKDWHDFKHUGHQLHG:KHQSODLQWLII¶VPRWKHU
DVNHGWKHSULQFLSDOZKDWGLVFLSOLQDU\DFWLRQKHSODQQHGWRWDNH
DJDLQVWWKHVWXGHQWKHUHVSRQGHG³,JXHVV,¶OOKDYHWRWKUHDWHQ
KLPDOLWWOHELWKDUGHU´,GDW$OWKRXJKERWKSODLQWLII
DQG KHU PRWKHU LQIRUPHG SODLQWLII¶V WHDFKHU DERXW WKH
LQFLGHQWV WKH VFKRRO WRRN QRQH RI WKH IROORZLQJ DFWLRQ
GLVFLSOLQLQJWKHVWXGHQWVHSDUDWLQJSODLQWLIIIURPWKHVWXGHQW
RUHVWDEOLVKLQJDVH[XDOKDUDVVPHQWSROLF\RUSURFHGXUH,G
DW 7KH 6XSUHPH &RXUW VWDWHG WKDW WKLV ODFN RI
UHVSRQVHFRXOGVXJJHVW³GHOLEHUDWHLQGLIIHUHQFHRQWKHSDUWRI
WKH %RDUG ZKLFK PDGH QR HIIRUW ZKDWVRHYHU HLWKHU WR
LQYHVWLJDWHRUWRSXWDQHQGWRWKHKDUDVVPHQW´,GDW
-- 12 of 12 --