03a0023p.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
81,7(' 67$7(6 2) $0(5,&$
3ODLQWLII$SSHOOHH
Y
-())5(< */(11 *$//2:$<
'HIHQGDQW$SSHOODQW
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH(DVWHUQ'LVWULFWRI.HQWXFN\DW&RYLQJWRQ
1R²-RVHSK0+RRG'LVWULFW-XGJH
6XEPLWWHG2FWREHU
'HFLGHGDQG)LOHG-DQXDU\
%HIRUH%2**668+5+(,15,&+DQG&/$<&LUFXLW
-XGJHV
BBBBBBBBBBBBBBBBB
&2816(/
21%5,()5R\*5RPR+RXVWRQ7H[DVIRU$SSHOODQW
&KDUOHV 3 :LVGRP -U $66,67$17 81,7(' 67$7(6
$77251(< /H[LQJWRQ .HQWXFN\ 'DYLG / %XQQLQJ
$66,67$1781,7('67$7(6$77251(<&RYLQJWRQ
.HQWXFN\IRU$SSHOOHH

-- 1 of 14 --

8QLWHG6WDWHVY*DOORZD\ 1R
(FVWDF\ LV WKH PRVW FRPPRQ VWUHHW QDPH IRU WKH FKHPLFDO
FRPSRVLWLRQ PHWK\OHQHGLR[\DPSKHWDPLQH ³0'0$´
*DOORZD\ DOWHUQDWLYHO\ FODLPV WKDW KLV FRXQVHO ZDV LQHIIHFWLYH LI KH
IDLOHG WR SUHVHUYH *DOORZD\¶V 0LUDQGD FODLP IRU DSSHOODWH UHYLHZ :H
ILQG WKLV FODLP PRRW LQ OLJKW RI RXU DQDO\VLV RI *DOORZD\¶V 0LUDQGD FODLP
RQ WKH PHULWV
68+5+(,15,&+-GHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQ
ZKLFK%2**6-MRLQHG&/$<- SS GHOLYHUHG
DVHSDUDWHGLVVHQWLQJRSLQLRQ
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
68+5+(,15,&+ &LUFXLW -XGJH 'HIHQGDQW$SSHOODQW
-HIIUH\*OHQQ*DOORZD\DSSHDOVIURPWKHMXGJPHQWHQWHUHGRQ
)HEUXDU\LQWKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH
(DVWHUQ 'LVWULFW RI .HQWXFN\ RI FRQYLFWLRQ E\ MXU\ DQG
VHQWHQFH LPSRVHG RQ WKUHH FRXQWV DULVLQJ RXW RI KLV
LPSRUWDWLRQ DQG SRVVHVVLRQ RI HFVWDF\ LQ YLRODWLRQ RI
86&††DQGDQG86&†
*DOORZD\UDLVHVWKUHHLVVXHVRQDSSHDO)LUVWKHFODLPVWKH
GLVWULFWFRXUWHUUHGZKHQLWDGPLWWHGLQWRHYLGHQFHVWDWHPHQWV
PDGHE\*DOORZD\WRD8QLWHG6WDWHV&XVWRPV,QVSHFWRULQ
YLRODWLRQRI*DOORZD\¶V)LIWKDQG6L[WK$PHQGPHQWULJKWV
XQGHU 0LUDQGD Y $UL]RQD 86 6HFRQG
*DOORZD\ FODLPV KH LV HQWLWOHG WR D QHZ WULDO EHFDXVH WKH
SURVHFXWRU PDGH LPSURSHU UHPDUNV GXULQJ ILQDO DUJXPHQW
7KLUG*DOORZD\FODLPVKLVFRXQVHOZDVLQHIIHFWLYHEHFDXVH
KLVFRXQVHOHOLFLWHGWHVWLPRQ\IURP*DOORZD\¶VFRFRQVSLUDWRU
ZKLFKWHQGHGWRLQFXOSDWH*DOORZD\VLQFHLWVKRZHGWKDWKH
JHQHUDOO\SURPRWHVGUXJXVH
:HGHQ\*DOORZD\¶VFODLPDQGDIILUPRQDOOLVVXHV)LUVW
DQGIRUHPRVWZHKROGWKDW0LUDQGDLVLQDSSOLFDEOHEHFDXVH
D VHFRQGDU\ FXVWRPV LQVSHFWLRQ LV D URXWLQH QRQFXVWRGLDO
1R 8QLWHG6WDWHVY*DOORZD\
UHPDUNV PD\ KDYH KDG´ ,G DW 6LQFH WKH SXWDWLYH
³DGPRQLWLRQ´LQ*DOORZD\¶VWULDOQHYHULGHQWLILHGZKDWWKH
FRXUWIRXQG REMHFWLRQDEOHLWFRXOGQRWSRVVLEO\KDYHEHHQ
³ZHOO GHVLJQHG WR FXUH >WKH@ SUHMXGLFLDO LPSDFW´ RI WKH
SURVHFXWRU¶VUHPDUNV,G
)LQDOO\UHFDOODJDLQWKHODQJXDJHLQ)UDQFLVZKLFKUHTXLUHV
WKDW WKH FRXUW ³DGPRQLVK WKH MXU\´ )G DW
HPSKDVLVDGGHG 7KHFRXUW¶VUHEXNHZDVREYLRXVO\DLPHG
DW WKH SURVHFXWRU QRW WKH MXU\ 7KH FRXUW RUGHUHG WKH
SURVHFXWRUQRWWKHMXU\WR³PRYHRQ´7KHMXU\XQGRXEWHGO\
KHDUGWKHFRXUWVXVWDLQWKHGHIHQVHREMHFWLRQEXWQRRQHFDQ
SODXVLEO\FODLPWKDWWKHFRXUWGLUHFWHGLWVUHPDUNWRMXURUV
ZKLFKLVZKDW)UDQFLVUHTXLUHV6HHLG
, ZRXOG UHYHUVH WKH FRQYLFWLRQ 6LQFH WKHUH ZDV QR
DGPRQLVKPHQW IROORZLQJ WKH GHIHQVH REMHFWLRQ DQG WKH
JRYHUQPHQW GLG QRW SUHVHQW DQ RYHUZKHOPLQJ FDVH ,
UHVSHFWIXOO\GLVVHQW6HHLG

-- 2 of 14 --

8QLWHG6WDWHVY*DOORZD\ 1R
7KH PDMRULW\ FODLPV WKDW WKLV &RXUW¶V RSLQLRQ LQ 8QLWHG 6WDWHV Y
6ROLYDQ )G WK &LU ³LQGLFDW>HV@ WKDW WKH WLPLQJ
RI DQ DGPRQLWLRQ LV PRUH LPSRUWDQW WKDQ WKH ILUPQHVV´ 6ROLYDQ GRHV
H[SODLQ WKDW ³>E@RWK WKH WLPLQJ DQG WKH ILUPQHVV RI WKH WULDO FRXUW V
DGPRQLWLRQ DUH UHOHYDQW LQ HYDOXDWLQJ ZKHWKHU DQ DGPRQLWLRQ KDV EHHQ
VXIILFLHQW WR PLWLJDWH SUHMXGLFLDO HUURU´ ,G 6ROLYDQ KRZHYHU QHYHU
VXJJHVWV DV WKH PDMRULW\ GRHV WKDW WLPLQJ LV DOZD\V PRUH LPSRUWDQW WKDQ
ILUPQHVV RU WKDW WLPLQJ DQG ILUPQHVV DUH WKH RQO\ UHOHYDQW FRQVLGHUDWLRQV
6HH LG
,Q IDFW WKH ³ILUPQHVV´ RI DQ DGPRQLVKPHQW LV GLIILFXOW WR HYDOXDWH RQ
DSSHDO EHFDXVH WKH IRUFHIXOQHVV RI RUDO ODQJXDJH GHSHQGV KHDYLO\ RQ
YROXPH WRQH FDGHQFH IDFLDO H[SUHVVLRQ DQG VR IRUWK 7LPLQJ LV
³UHOHYDQW´ DV 6ROLYDQ VD\V VHH LG EXW QRW GLVSRVLWLYH ,Q IDFW WLPLQJ
PDWWHUV JUHDWO\ EXW QR DGPRQLVKPHQW QR PDWWHU KRZ UDSLGO\ GHOLYHUHG
VXIILFHV LI WKH LQVWUXFWLRQ ODFNV WKH FRQWHQW QHFHVVDU\ WR DSSURSULDWHO\
JXLGH WKH MXU\¶V GHOLEHUDWLRQ
7KH PDMRULW\ DOVR FLWHV 6ROLYDQ IRU WKH QRWLRQ WKDW D FXUDWLYH
LQVWUXFWLRQ LV RQO\ DGHTXDWH LI LW LV VZLIW DQG SURSRUWLRQDO WR WKH SRWHQWLDO
KDUP 6HH LG $V WKH PDMRULW\ ULJKWO\ FRQFHGHV WKH SURVHFXWRU¶V
VWDWHPHQW ZDV FOHDUO\ LPSURSHU DQG SUHMXGLFLDO ZKLFK PDNHV LW KDUG WR
DFFHSW WKDW D ILYHZRUG VQLSSHW GHYRLG RI FRQWHQW ZDV SURSRUWLRQDO WR WKH
SRWHQWLDO KDUP
SURYLGHVQRJXLGDQFHZKDWVRHYHU&I/DNHVY)RUG
)G WK &LU ILQGLQJ FXUDWLYH
LQVWUXFWLRQLQDGHTXDWHZKHQLWRQO\FRQWUDGLFWHGDPDQGDWRU\
SUHVXPSWLRQ UDWKHU WKDQ H[SODLQLQJ LWV LPSRUWDQFH DQG
DSSOLFDELOLW\
:KDWWKHPDMRULW\WHUPVDQDGPRQLVKPHQWZDVQRWRQO\
XQDFFHSWDEO\ WHUVH LW ZDV KRSHOHVVO\ DPELJXRXV 7KH
SURVHFXWRU¶VREMHFWLRQDEOHVWDWHPHQWZDVRQHVHQWHQFHORQJ
ILIW\IRXU ZRUGV DQG RFFXUUHG LQ WKH PLGVW RI D OHQJWK\
FORVLQJDUJXPHQW:LWKRXWJUHDWHUVSHFLILFLW\IURPWKHFRXUW
WKHMXU\PD\QRWKDYHXQGHUVWRRGSUHFLVHO\ZKDWZDUUDQWHG
WKHREMHFWLRQ(YHQDVVXPLQJWKHMXU\NQHZWKDWWKHFRXUW¶V
VWDWHPHQW³6XVWDLQHG1RHYLGHQFH0RYHRQ´PHDQWWKDW
WKH\VKRXOGLJQRUHVRPHWKLQJWKHSURVHFXWRUVDLGWKHMXU\
ZRXOGQRWNQRZZKDWWRLJQRUH,Q6LQJHUY8QLWHG6WDWHV
86 WKH6XSUHPH&RXUWIRXQGWKHWULDOFRXUW¶V
OLPLWLQJ LQVWUXFWLRQ VXIILFLHQW EHFDXVH WKH ³FRXUW¶V
DGPRQLWLRQVWRWKHMXU\VHHPWRKDYHEHHQZHOOGHVLJQHGWR
FXUH ZKDWHYHU SUHMXGLFLDO LPSDFW VRPH RI WKH SURVHFXWRU¶V
1R 8QLWHG6WDWHVY*DOORZD\
6HFWLRQ SURYLGHV ³>$@OO SHUVRQV FRPLQJ LQWR WKH 8QLWHG 6WDWHV
IURP IRUHLJQ FRXQWULHV VKDOO EH OLDEOH WR GHWHQWLRQ DQG VHDUFK E\
DXWKRUL]HG RIILFHUV RU DJHQWV RI WKH *RYHUQPHQW XQGHU >7UHDVXU\@
UHJXODWLRQV´ 86& †
GHWHQWLRQ 6HFRQG WKH SURVHFXWRU¶V VWDWHPHQWV DOWKRXJK
LPSURSHUGRQRWZDUUDQWDQHZWULDOLQWKHIDFHRIWKHRWKHU
RYHUZKHOPLQJ HYLGHQFH )LQDOO\ LQHIIHFWLYH DVVLVWDQFH RI
FRXQVHOFODLPVDUHJHQHUDOO\QRWKHDUGRQGLUHFWDSSHDODQG
WKHUHFRUGKHUHLVLQVXIILFLHQWWRSHUPLWXVWRKHDUWKHFODLP
,)DFWV
2Q-DQXDU\DQDUFRWLFVFDQLQHDOHUWHGRQDEDJDW
WKH *UHDWHU &LQFLQQDWL 1RUWKHUQ .HQWXFN\ ,QWHUQDWLRQDO
$LUSRUWLQ&RYLQJWRQEHORQJLQJWR*DOORZD\¶VFRGHIHQGDQW
.ULVWLH.LUVFKZKRKDGDUULYHGZLWK*DOORZD\RQDIOLJKW
IURP %UXVVHOV %HOJLXP 2QFH .LUVFK LGHQWLILHG WKH EDJ
FXVWRPVLQVSHFWRUVUHPRYHGERWKKHUDQG*DOORZD\
&XVWRPV LQVSHFWRU-HIIUH\9DXJKQWRRN'HIHQGDQWVWRD
VHFRQGDU\ LQVSHFWLRQ DUHD SXUVXDQW WR WKH 86 &XVWRPV
6HUYLFH¶V DXWKRULW\ WR VHDUFK WUDYHOHUV XQGHU 86&
† 9DXJKQ EHJDQ KLV LQVSHFWLRQ E\ LQIRUPLQJ
'HIHQGDQWVWKDWDFDQLQHKDGDOHUWHGRQ.LUVFK¶VEDJ$WWKLV
WLPH9DXJKQQHLWKHUSODFHG'HIHQGDQWVXQGHUDUUHVWQRUUHDG
WKHPWKHLU0LUDQGDULJKWV
9DXJKQEHJDQKLVTXHVWLRQLQJE\DVNLQJ.LUVFKZK\VKH
WKRXJKWWKHFDQLQHKDGKLWRQKHUEDJ6KHUHVSRQGHGWKDWLW
ZDV EHFDXVH RI ³WKRVH FDIHV´ LQGLFDWLQJ ³GRSH VPRNLQJ
FDIHV´ PRUH FRPPRQO\ UHIHUUHG WR DV KDVK EDUV $V KH
VHDUFKHG'HIHQGDQWV¶EDJV9DXJKQWXUQHGKLVTXHVWLRQLQJWR
*DOORZD\DQGDVNHGKLPDVHULHVRITXHVWLRQVHDFKUHYROYLQJ
DURXQG WKH SODFHV KH KDG EHHQ LQ (XURSH 6SHFLILFDOO\
9DXJKQZDVWU\LQJWRDVFHUWDLQZKHWKHU*DOORZD\DQG.LUVFK
KDGEHHQWR$PVWHUGDPWKH1HWKHUODQGV,QUHVSRQVHWRWKHVH
TXHVWLRQV*DOORZD\PDGHVHYHUDOVWDWHPHQWVGHQ\LQJKHKDG
EHHQWR$PVWHUGDP

-- 3 of 14 --

8QLWHG6WDWHVY*DOORZD\ 1R
.LUVFK ZDV DOORZHG WR SOHDG JXLOW\ WR IHZHU RI WKH FKDUJHV DQG
UHFHLYHG D UHGXFHG VHQWHQFH
.LUVFK WHVWLILHG WKDW VKH PHW *DOORZD\ ZKLOH VKH ZDV ZRUNLQJ DV D
ZDLWUHVV DW D WRSOHVV EDU FDOOHG 7UHDVXUHV LQ +RXVWRQ 6KH IXUWKHU
WHVWLILHG WKDW DIWHU VKH ORVW KHU MRE *DOORZD\ ZDV DZDUH WKDW VKH QHHGHG
PRQH\ DQG DSSURDFKHG KHU DERXW VHUYLQJ DV D PXOH 6KH DJUHHG DQG
*DOORZD\ SDLG IRU DOO KHU H[SHQVHV LQFOXGLQJ SD\LQJ IRU KHU SDVVSRUW DQG
EX\LQJ KHU DLUIDUH KHU KRWHO DQG WKH FRDW LQ ZKLFK VKH ZDV FDUU\LQJ WKH
HFVWDF\ 0RUHRYHU VKH FRXQWHUHG *DOORZD\¶V DVVHUWLRQ WKDW VKH ZDV KLV
JLUOIULHQG E\ LQVLVWLQJ VKH ZDV D OHVELDQ
$IWHU FRQFOXGLQJ KLV TXHVWLRQLQJ RI *DOORZD\ 9DXJKQ
DVNHG.LUVFKIRUKHUFRDWZKLFKKHWHVWLILHGIHOWUDWKHUKHDY\
ZKHQKHSLFNHGLWXS+HUHPRYHGWKHOLQLQJDQGIRXQGD
QXPEHU RI SLOOV ODWHU LGHQWLILHG WR EH WKH GUXJ HFVWDF\
9DXJKQFHDVHGKLVTXHVWLRQLQJDQGSODFHG'HIHQGDQWVXQGHU
DUUHVWIRULPSRUWDWLRQDQGSRVVHVVLRQRIDQLOOHJDOVXEVWDQFH
2Q0D\*DOORZD\ILOHGDPRWLRQWRVXSSUHVVWKH
VWDWHPHQWVKHKDGPDGHWR9DXJKQDWVHFRQGDU\LQVSHFWLRQ
EHFDXVH WKH\ ZHUH REWDLQHG ZLWKRXW SURSHU 0LUDQGD
ZDUQLQJV%DVLFDOO\WKHVWDWHPHQWVDPRXQWHGWR*DOORZD\
GHQ\LQJKHKDGHYHUEHHQWRWKH1HWKHUODQGVHYHQZKHQIDFHG
ZLWKHYLGHQFHWRWKHFRQWUDU\IRXQGLQKLVEDJVXFKDV'XWFK
PRQH\PHUFKDQGLVHEHDULQJDQ$PVWHUGDPORJRDQGWUDLQ
WLFNHWVIURP%UXVVHOVWR$PVWHUGDP
7KH GLVWULFW FRXUW GHQLHG WKH PRWLRQ RQ 6HSWHPEHU
ILQGLQJWKDW0LUDQGDZDUQLQJVZHUHQRWUHTXLUHG7KH
MXGJHUHDVRQHGWKDWWKHVHFRQGDU\LQVSHFWLRQZDVDURXWLQH
FXVWRPV LQTXLU\ DQG DV VXFK QRW HQWLWOHG WR 0LUDQGD
SURWHFWLRQVXQGHU8QLWHG6WDWHVY2]XQD)G WK
&LU
*DOORZD\SURFHHGHGWRMXU\WULDOZKHUH*DOORZD\¶VIDOVH
GHQLDORIWUDYHOLQJWR$PVWHUGDPZDVLQWURGXFHGDVHYLGHQFH
RI KLV JXLOW .LUVFK WHVWLILHG DJDLQVW KLP LQ H[FKDQJH IRU
FRQFHVVLRQV IURP WKH *RYHUQPHQW 6SHFLILFDOO\ .LUVFK
WHVWLILHGWKDW*DOORZD\KDGKLUHGKHUDVDPXOHWRFDUU\WKH
HFVWDF\ IURP $PVWHUGDP *DOORZD\¶V UHVSRQVH ZDV WKDW
1R 8QLWHG6WDWHVY*DOORZD\
GUXJV WUDYHOV ZLWK WKH LQGLYLGXDO
FDUU\LQJWKHGUXJV
'HIHQVH&RXQVHO ,ZRXOGOLNHWRREMHFW
&RXUW 6XVWDLQHG1RHYLGHQFH0RYHRQ
-$ DW 7KH FRXUW KDG DQ REOLJDWLRQ WR SURSHUO\
³DGPRQLVKWKHMXU\´)UDQFLV)GDW7KHFRXUW
VDLG RQO\ ³6XVWDLQHG 1R HYLGHQFH 0RYH RQ´ ,G
/LPLWLQJLQVWUXFWLRQVDQGVXVWDLQHGREMHFWLRQVDUHGLIIHUHQW
7KHFRXUW¶VUHPDUNGRHVQRWDSSHDUWREHDQDGPRQLVKPHQWRU
OLPLWLQJLQVWUXFWLRQDWDOO
5HWXUQLQJWRWKHGLFWLRQDU\RQFHPRUHDQDGPRQLWLRQLV
³DQ\DXWKRULWDWLYHRUDOFRPPXQLFDWLRQRUVWDWHPHQWE\ZD\RI
DGYLFHRUFDXWLRQE\WKHFRXUWWRWKHMXU\UHVSHFWLQJWKHLUGXW\
RUFRQGXFWDVMXURUVWKHDGPLVVLELOLW\RUQRQDGPLVVLELOLW\RI
HYLGHQFH RU WKH SXUSRVH IRU ZKLFK DQ\ HYLGHQFH DGPLWWHG
PD\EHFRQVLGHUHGE\WKHP´%/$&.¶6 /$: ',&7,21$5<
WK HG VHH DOVR :(%67(5¶6 7+,5' 1(:
,17(51$7,21$/ ',&7,21$5< GHILQLQJ ³WR
DGPRQLVK´ DV ³WR LQGLFDWH GXWLHV REOLJDWLRQV RU UHTXLVLWH
DFWLRQ WR D SHUVRQ ´ 7KXV DQ ³DGPRQLWLRQ´ PXVW KDYH
FRQWHQW,WQHHGVWRH[SODLQ WRWKHMXU\KRZWRKDQGOHWKH
LPSURSHUVWDWHPHQWLQDPDQQHUFRQVLVWHQWZLWKWKHODZ,QD
VOLJKWO\GLIIHUHQWFRQWH[WWKH6XSUHPH&RXUWH[SODLQHG
2EYLRXVO\ D OLPLWLQJ LQVWUXFWLRQ FDQ EH XVHG WR JLYH
FRQWHQWWRDVWDWXWRU\IDFWRUWKDW³LVLWVHOIWRRYDJXHWR
SURYLGH DQ\ JXLGDQFH WR WKH VHQWHQFHU´ RQO\ LI WKH
OLPLWLQJ LQVWUXFWLRQ¶V RZQ ³GHILQLWLRQV DUH
FRQVWLWXWLRQDOO\VXIILFLHQW´WKDWLVRQO\LIWKHOLPLWLQJ
LQVWUXFWLRQ LWVHOI ³SURYLGH>V@ VRPH JXLGDQFH WR WKH
VHQWHQFHU´
6KHOOY0LVVLVVLSSL86 TXRWLQJ:DOWRQY
$UL]RQD 86 HPSKDVLV LQ RULJLQDO
7KLVPDNHVH[WUHPHO\FOHDUWKDWDOLPLWLQJLQVWUXFWLRQPXVW
SURYLGH JXLGDQFH \HW WKH WULDO FRXUW¶V ODFRQLF UHVSRQVH

-- 4 of 14 --

8QLWHG6WDWHVY*DOORZD\ 1R
HJ8QLWHG6WDWHVY6ROLYDQ)G WK&LU

-XULHVKDYHJUHDWFRQILGHQFHLQZKDWSURVHFXWRUVVD\6LQFH
MXULHVKDYHFRQILGHQFHLQWKHWUXVWZRUWKLQHVVRISURVHFXWRUV
VHH %HUJHU ,, 86 DW ³LPSURSHU >SURVHFXWRULDO@
VXJJHVWLRQV LQVLQXDWLRQV DQG HVSHFLDOO\ DVVHUWLRQV RI
SHUVRQDONQRZOHGJHDUHDSWWRFDUU\PXFKZHLJKWDJDLQVWWKH
DFFXVHGZKHQWKH\VKRXOGSURSHUO\FDUU\QRQH´,GVHHDOVR
%HVV)GDW WK&LU ³$Q$VVLVWDQW8QLWHG
6WDWHV$WWRUQH\SXUSRUWVWRUHSUHVHQWWKH3HRSOHRIWKH8QLWHG
6WDWHV DQG WKXV FDUULHV D VSHFLDO DXUD RI OHJLWLPDF\ DERXW
KLP´ 5HO\LQJ RQ KLV RZQ H[SHULHQFH WKH SURVHFXWRU
H[SODLQHGWKDWPXOHVGRLQIDFWVRPHWLPHVWUDYHOZLWKWKHLU
ERVVHV ,I WKH MXU\ EHOLHYHG KLP²ZKLFK LV QRW DQ
XQUHDVRQDEOHDVVXPSWLRQ²WKHQLWFDQQRWVDIHO\EHVDLGWKDW
WKHFRPPHQW³GLGQRWFRQWULEXWH´WR*DOORZD\¶VFRQYLFWLRQ
6ROLYDQ)GDW:KHWKHUORRNLQJDWWKHGLFWLRQDU\
GHILQLWLRQRI³RYHUZKHOPLQJ´WKHFDVHODZRUEDFNJURXQG
OHJDO SULQFLSOHV WKH FDVH DJDLQVW *DOORZD\ LV VXIILFLHQW WR
VXSSRUWDFRQYLFWLRQEXWQRWRYHUZKHOPLQJ
7KHPDMRULW\FRXOGFRQFHGHWKLVSRLQWKRZHYHU\HWVWLOO
MXVWLI\WKHGHFLVLRQWRDIILUPEHFDXVHWKH)UDQFLVWHVWRQO\
UHTXLUHVUHYHUVDO HYHQZLWKRXWRYHUZKHOPLQJHYLGHQFH LIWKH
FRXUWIDLOHGWRFXUHWKHLPSURSULHW\E\IDLOLQJWRDGPRQLVKWKH
MXU\´)GDW7KHPDMRULW\DUJXHVWKDWWKHWULDO
FRXUW³VDWLVILH>G@WKHFXUDWLYHLQVWUXFWLRQUHTXLUHPHQW´7KH
IROORZLQJ LV WKH HQWLUH UHOHYDQW H[FKDQJH LQFOXGLQJ WKH
FRXUW¶VUHVSRQVHDIWHUWKHGHIHQVHREMHFWHGWRWKHLPSURSHU
SURVHFXWRULDOFRPPHQW
3URVHFXWRU , KDYH WULHG VHYHUDO FDVHV P\VHOI
ZKHUHZHVHHWKHPXOHWHUPDQGZH
KDYHDGHIHQGDQWZKRFODLPVKHRU
VKHLVDPXOHDQG,KDYHKDGVHYHUDO
FDVHV ZKHUH NLQG RI OLNH WKH
ERG\JXDUG VFHQDULR ZKHUH WKH
LQGLYLGXDOZKRLVUHVSRQVLEOHIRUWKH
1R 8QLWHG6WDWHVY*DOORZD\
.LUVFKZDVKLVJLUOIULHQGDQGWKDWKHKDGQRNQRZOHGJHRIWKH
GUXJVVKHZDVFDUU\LQJ7KHMXU\FRQYLFWHG*DOORZD\RQDOO
WKUHHFRXQWVDQGKHZDVVHQWHQFHGWRQLQHW\VHYHQPRQWKV
*DOORZD\ILOHGDWLPHO\QRWLFHRIDSSHDORQ)HEUXDU\
WKH VDPH GD\ WKH MXGJPHQW ZDV LPSRVHG DQG WKLV
PDWWHULVSURSHUO\EHIRUHWKLV&RXUW
,,*DOORZD\¶V0LUDQGD5LJKWV
:HUHYLHZDGLVWULFWFRXUW¶VUXOLQJRQDPRWLRQWRVXSSUHVV
WKURXJK D PL[HG VWDQGDUG RI UHYLHZ )LQGLQJV RI IDFW
VXSSRUWLQJWKHFRXUW VGHFLVLRQDUHUHYHUVHGRQO\LIWKH\DUH
FOHDUO\HUURQHRXV7KHFRXUW VILQDOGHWHUPLQDWLRQDVWRWKH
UHDVRQDEOHQHVVRIWKHVHDUFKLVDTXHVWLRQRIODZUHYLHZHGGH
QRYR8QLWHG6WDWHVY+DUULV)G WK&LU
FHUWGHQLHG²86²6&W .QR[&RXQW\
(GXF$VV¶QY.QR[&RXQW\%GRI(GXF)G
WK &LU :KHQ WKH GLVWULFW FRXUW KDV GHQLHG WKH
PRWLRQWRVXSSUHVVZHUHYLHZDOOHYLGHQFHLQDOLJKWPRVW
IDYRUDEOHWRWKH*RYHUQPHQW8QLWHG6WDWHVY*DU]D)G
WK&LU
*DOORZD\ FODLPV WKDW DQ\ VWDWHPHQWV PDGH E\ KLP WR
9DXJKQVKRXOGEHVXSSUHVVHGEHFDXVHWKH\ZHUHREWDLQHGLQ
YLRODWLRQRI0LUDQGD0LUDQGDZDUQLQJVDUHQHFHVVDU\RQO\
LIWKHGHIHQGDQWLVVXEMHFWHGWRD³FXVWRGLDOLQWHUURJDWLRQ´
0LUDQGD86DW$FFRUGLQJO\*DOORZD\DUJXHVWKDW
KH ZDV ³LQ FXVWRG\´ ZKHQ 9DXJKQ ZDV SHUIRUPLQJ WKH
VHFRQGDU\LQVSHFWLRQ
:KHWKHUDSHUVRQLVLQFXVWRG\IRU0LUDQGDSXUSRVHVLV
GHWHUPLQHGE\QHLWKHUWKHSHUFHSWLRQRIWKHGHIHQGDQWQRURI
WKHSROLFH,WLVGHWHUPLQHGE\WKHREMHFWLYHSHUFHSWLRQRID
UHDVRQDEOH PDQ LQ WKH GHIHQGDQW¶V VKRHV 6WDQVEXU\ Y
&DOLIRUQLD 86 7KH VWDQGDUG LV
SHUKDSVEHVWVWDWHGDQRWKHUZD\³7KHWHVWPXVWEHQRWZKDW
WKHGHIHQGDQWKLPVHOIDVDSRVVHVVRURIGUXJVDWWKHWLPHRI
KLVGHWHQWLRQWKRXJKWEXWZKDWDUHDVRQDEOHPDQLQQRFHQW
RI DQ\ FULPH ZRXOG KDYH WKRXJKW KDG KH EHHQ LQ WKH
GHIHQGDQW¶V VKRHV´ 8QLWHG 6WDWHV Y 0F.HDWKDQ )

-- 5 of 14 --

8QLWHG6WDWHVY*DOORZD\ 1R
6XSS 'LVW'& HPSKDVLVDGGHG VHHDOVR
&RDWHVY8QLWHG6WDWHV)G '&&LU
8QLWHG6WDWHVY&ROHPDQ)6XSS ('0LFK
:HEHOLHYHWKHVWDQGDUGLVPRUHDFFXUDWHO\VWDWHGWKLV
ZD\EHFDXVHDUHDVRQDEOHJXLOW\SHUVRQZLOODOZD\VSHUFHLYH
KLVVLWXDWLRQDVFRHUFLYH
)LUVWLWLVQHFHVVDU\WRH[SODLQWKHFXVWRPVSURFHGXUHVWR
ZKLFK*DOORZD\ZDVVXEMHFW$FFRUGLQJWRWKH86&XVWRPV
6HUYLFHHYHU\SDVVHQJHUZKRDUULYHVLQWKH8QLWHG6WDWHVRQ
DQLQWHUQDWLRQDOIOLJKWZKHWKHUKHLVD8QLWHG6WDWHVFLWL]HQ
DOLHQ RU IRUHLJQ QDWLRQDO LV VXEMHFW WR FXUVRU\ VFUHHQLQJ
SULPDU\ LQVSHFWLRQ 7KH SDVVHQJHU LV XVXDOO\ DVNHG
TXHVWLRQVUHJDUGLQJKLVWULSLQFOXGLQJWKHFRXQWULHVKHKDV
YLVLWHGDQ\PHUFKDQGLVHKHKDVEURXJKWEDFNDQGWKHYDOXH
RIVXFKPHUFKDQGLVH+LVDQVZHUVDUHFKHFNHGDJDLQVWKLV
FXVWRPVGHFODUDWLRQIRUPDQGXVXDOO\KHLVVHQWRQKLVZD\
+RZHYHUDSRUWLRQRIWUDYHOHUVDUHKHOGRYHUIRUVHFRQGDU\
LQVSHFWLRQ $Q LQVSHFWRU ZLOO UHFRPPHQG D WUDYHOHU IRU
VHFRQGDU\LQVSHFWLRQIRUVHYHUDOUHDVRQV²IRULQVWDQFHLIWKH
WUDYHOHU LV VXVSHFWHG RI FDUU\LQJ QDUFRWLFV 0RUHRYHU D
VHFRQGDU\LQVSHFWLRQPD\EHRUGHUHGLIWKHLQVSHFWRUVXVSHFWV
D WUDYHOHU RZHV FXVWRPV GXWLHV RU KDV XQGHFODUHG
FRPPHUFLDO RU SURKLELWHG PHUFKDQGLVH )XUWKHUPRUH WKH
86 &XVWRPV 6HUYLFH KDV GHYHORSHG D SURJUDP FDOOHG
&RPSOLDQFH([DPLQDWLRQ &203(; LQZKLFKLWUDQGRPO\
VHOHFWVDGGLWLRQDOWUDYHOHUVIRUVHFRQGDU\LQVSHFWLRQEDVHGRQ
QRVXVSLFLRQZKDWVRHYHU'XULQJVHFRQGDU\LQVSHFWLRQWKH
SDVVHQJHULVDVNHGPRUHGHWDLOHGTXHVWLRQVDERXWKLVWULSDQG
PD\KDYHKLVEDJDQGERG\VHDUFKHG7KHSURFHGXUHODVWVD
IHZPLQXWHVDQGLIQRWKLQJLVIRXQGWKHWUDYHOHULVIUHH
WRJR6HH8 6 &867206 6(59,&(:+< 86 &867206
& 2 1 ' 8 & 7 6 ( ; $ 0 , 1 $ 7 , 2 1 6 D W
KWWSZZZFXVWRPVXVWUHDVJRYWUDYHOH[DPLQDWLRQVKWP
>KHUHLQDIWHU&XVWRPV:HEVLWH@
8QGHU86&†WKH86&XVWRPV6HUYLFHKDVWKH
DXWKRULW\WRVXEMHFWHYHU\LQWHUQDWLRQDOWUDYHOHUWRDVHFRQGDU\
LQVSHFWLRQEXWLWGRHVQRWGRVREHFDXVHUHVRXUFHVDUHOLPLWHG
6HH&XVWRPV:HEVLWH$VRSSRVHGWRMDLOKRXVHLQWHUURJDWLRQV
1R 8QLWHG6WDWHVY*DOORZD\
PXOH EHFDXVH KH WUDYHOHG ZLWK KHU 3XW UKHWRULFDOO\ ZK\
ZRXOG*DOORZD\SD\DPXOHWRLPSRUWGUXJVIURP(XURSHDQG
ULVN DUUHVW XSRQ UHHQWU\ DQG WKHQ DFFRPSDQ\ WKH PXOH
WKHUHE\H[SRVLQJKLPVHOIWRWKHYHU\ULVNKHSDLGWRDYRLG",Q
KLVFORVLQJDUJXPHQWWKHSURVHFXWRUDQVZHUHGWKHTXHVWLRQ
KLPVHOI
,KDYHWULHGVHYHUDOFDVHVP\VHOIZKHUHZHVHHWKHPXOH
WHUPDQGZHKDYHDGHIHQGDQWZKRFODLPVKHRUVKHLVD
PXOHDQG,KDYHKDGVHYHUDOFDVHVZKHUHNLQGRIOLNHWKH
ERG\JXDUG VFHQDULR ZKHUH WKH LQGLYLGXDO ZKR LV
UHVSRQVLEOH IRU WKH GUXJV WUDYHOV ZLWK WKH LQGLYLGXDO
FDUU\LQJWKHGUXJV
-$ DW 7KH JRYHUQPHQW LQWURGXFHG QR HYLGHQFH
HVWDEOLVKLQJ WKH SURSHQVLW\ RI PXOHV WR WUDYHO ZLWK WKHLU
ERVVHV,QVWHDGWKHSURVHFXWRUXVHGKLVSHUVRQDOH[SHULHQFH
WR DQQLKLODWH WKH FUX[ RI WKH GHIHQVH :LWKRXW WKH
SURVHFXWRU¶VWHVWLPRQ\DUHDVRQDEOHMXU\FRXOGKDYHDFFHSWHG
*DOORZD\¶VWKHRU\
6HFRQG GXH SURFHVV FRQFHUQV LQIOXHQFH KRZ ZHGHILQH
³RYHUZKHOPLQJ´ $V WKH 6XSUHPH &RXUW H[SODLQHG LQ D
KDEHDV FRQWH[W³>W@KH UHOHYDQW TXHVWLRQ LV ZKHWKHU WKH
SURVHFXWRUV FRPPHQWVμVRLQIHFWHGWKHWULDOZLWKXQIDLUQHVV
DVWRPDNHWKHUHVXOWLQJFRQYLFWLRQDGHQLDORIGXHSURFHVV¶´
'DUGHQY:DLQZULJKW86 TXRWLQJ
'RQQHOO\Y'H&KULVWRIRUR86 7R
PDNHRXUWHVWFRQVLVWHQWZLWK'DUGHQWKHJRYHUQPHQW¶VFDVH
FDQ RQO\ EH ³RYHUZKHOPLQJ´ DQG WKXV SUHFOXGLQJ UHWULDO
ZKHQWKHGHIHQGDQW¶VGXHSURFHVVULJKWVZHUHQRWGLVWXUEHG
GHVSLWH WKH LPSURSHU VWDWHPHQW 7KXV ³>W@KH TXHVWLRQ LV
ZKHWKHU WKHUH LV D UHDVRQDEOH SRVVLELOLW\ WKDW WKH
>LQDGPLVVLEOH@ HYLGHQFH FRPSODLQHG RI PLJKW KDYH
FRQWULEXWHGWRWKHFRQYLFWLRQ´)DK\Y&RQQHFWLFXW86
$SSO\LQJWKLVORJLFWKLV&RXUWKDVUHYHUVHG
FRQYLFWLRQVZKHQZHZHUHXQDEOHWR³FRQFOXGHWKDWWKHUHLV
QR UHDVRQDEOH SRVVLELOLW\ WKDW WKH >LPSURSHU SURVHFXWRULDO@
FRPPHQWVGLGQRWFRQWULEXWHWRGHIHQGDQW¶VFRQYLFWLRQ´6HH

-- 6 of 14 --

8QLWHG6WDWHVY*DOORZD\ 1R
$UPVWURQJ VH[FXVHVIRUWKHODUJHFDVKGHSRVLWVZHUHQRW
FUHGLEOHHJWKDWGUXJGHDOHUVSDLGKHUIRUOHWWLQJWKHP
XVHKHUGULYHZD\WRVHOOGUXJV
%OXH &URVV V\VWHPDWLFDOO\ DQG HOHFWURQLFDOO\ LQFOXGHG
YRXFKHUV GHVFULELQJ WKH VXEVFULEHU DQG WKH SURYLGHU
ZLWKLWVFKHFNVZKLFKFRQWUDGLFWV7RQH\ VWHVWLPRQ\WKDW
QRYRXFKHUVZHUHDWWDFKHGWRDQ\RIKHUFKHFNV
7RQH\DGPLWWHGQHYHUKDYLQJFRPSOHWHGDQ\SDSHUZRUN
IRUWKHDOOHJHGUHLPEXUVHPHQWDQGQHYHUKDYLQJSURYLGHG
$UPVWURQJZLWKDQ\GHWDLOVUHJDUGLQJWKHQDWXUHRIWKH
FDUHVKHSURYLGHGHJWKHGDLO\KRXUVVSHQWFDULQJIRU
KHUIDWKHURUWKHWUDYHOGLVWDQFHVWRWKHKRVSLWDO
,GDW:HIRXQGWKLVFDVH³RYHUZKHOPLQJ´DQGWKXV
D QHZ WULDO XQZDUUDQWHG ,G DW 7RQH\ LV DQ
³RYHUZKHOPLQJ´ FDVH &DUUROO LV QRW DQG WKH FDVH DJDLQVW
*DOORZD\LVZHDNHUWKDQWKHFDVHDJDLQVW&DUUROORUDWOHDVW
HTXDOO\WKLQ7KHFDVHODZVXJJHVWVWKHUHIRUHWKDWWKHFDVH
DJDLQVW*DOORZD\LVQRW³RYHUZKHOPLQJ´
7ZR RWKHU DUJXPHQWV GHVHUYH PHQWLRQ )LUVW ORJLFDOO\
³RYHUZKHOPLQJ´PXVWPHDQVRPHWKLQJPRUHWKDQFHUWDLQW\
³EH\RQGDUHDVRQDEOHGRXEW´2WKHUZLVHWKHILUVWSRUWLRQRI
WKH WHVW ZKHWKHU ³SURRI RI WKH GHIHQGDQW V JXLOW LV QRW
RYHUZKHOPLQJ´ )UDQFLV )G DW ZRXOG EH
VXSHUIOXRXV2QHFDQFRQFHLYHRIDVSHFWUXPRIVXVWDLQDEOH
JXLOW\YHUGLFWVUXQQLQJIURPHYLGHQFHSURYLQJJXLOW³EH\RQG
DUHDVRQDEOHGRXEW´RQRQHHQGWR³RYHUZKHOPLQJ´HYLGHQFH
RIJXLOWRQWKHRWKHU$SSHOODWHFRXUWVGRQRWGLVWXUEDJXLOW\
YHUGLFWLIDQ\³UDWLRQDOWULHURIIDFWFRXOGKDYHIRXQGSURRIRI
JXLOWEH\RQGDUHDVRQDEOHGRXEW´-DFNVRQY9LUJLQLD
86 7R NHHS ³RYHUZKHOPLQJ´ HYLGHQFH
DQDO\WLFDOO\ GLVWLQFW IURP HYLGHQFH RI JXLOW ³EH\RQG D
UHDVRQDEOHGRXEW´ DWWKHRWKHUHQGRIWKHVSHFWUXP LWPDNHV
VHQVH WKDW DQ ³RYHUZKHOPLQJ´ FDVH LV RQH LQ ZKLFK QR
UHDVRQDEOHMXU\FRXOGDFTXLW
7KLVLVFHUWDLQO\QRWWUXHLQ*DOORZD\¶VFDVH*DOORZD\
DUJXHG WKDW .LUVFK FRXOG QRW SRVVLEO\ KDYH ZRUNHG DV KLV
1R 8QLWHG6WDWHVY*DOORZD\
DQG RWKHU VLWXDWLRQV ZH KDYH KHOG FXVWRGLDO WKHUH LV QR
SUREDEOHFDXVHUHTXLUHGIRUWKH&XVWRPV6HUYLFHWRGHWDLQD
WUDYHOHUIRUDVHFRQGDU\LQVSHFWLRQ6HH86&†FI
0LUDQGD86 LQYROYLQJGHIHQGDQWVDOUHDG\SODFHG
XQGHU DUUHVW ,WV SRZHU WR VHDUFK LV YHVWHG LQ WKH
YROXQWDULQHVVRIWKHWUDYHOHU¶VDWWHPSWWRUHHQWHUWKHFRXQWU\
8QLWHG6WDWHVY5DPVH\86 VHHDOVR
8QLWHG 6WDWHV Y 6FKHHU )G G &LU
³>(@YHQWVZKLFKPLJKWEHHQRXJKWRVLJQDOμFXVWRG\¶DZD\
IURPWKHERUGHUZLOOQRWEHHQRXJKWRHVWDEOLVKμFXVWRG\¶LQ
WKHFRQWH[WRIHQWU\LQWRWKHFRXQWU\´8QLWHG6WDWHVY0R\D
)G WK&LU
:H KDYH KHOG WKDW URXWLQH FXVWRPV LQVSHFWLRQV DUH QRQ
FXVWRGLDODQGGRQRWUHTXLUHWKHUHDGLQJRI0LUDQGDULJKWV,Q
8QLWHG6WDWHVY2]XQD)G WK&LU DWD
URXWLQH&DQDGLDQERUGHUVWRSLQVSHFWRUVDVNHGWKHGHIHQGDQW
TXHVWLRQVLQDQDWWHPSWWRGHWHUPLQHKLVLGHQWLW\2]XQDOLHG
DQG SUHVHQWHG D IDOVH LGHQWLW\ $ VHDUFK RI WKH GHIHQGDQW
XOWLPDWHO\SURGXFHGVRPHGUXJVDQGWKHVWDWHPHQWV2]XQD
KDG PDGH ZHUH LQWURGXFHG DJDLQVW KLP :H KHOG WKH
VWDWHPHQWVDGPLVVLEOHEHFDXVHDSULPDU\FXVWRPVLQVSHFWLRQ
LV QRW FXVWRGLDO VLQFH DOO WUDYHOHUV DUH VXEMHFW WR WKH VDPH
WUHDWPHQW DQG WKH UHDVRQDEOH PDQ YLHZV LW DV D FXUVRU\
UHTXLUHPHQWRIUHHQWHULQJWKHFRXQWU\,GDW
7KH GLVWULFW FRXUW IRXQG WKDW 2]XQD FRQWUROV KHUH
+RZHYHU *DOORZD\ DUJXHV WKDW 2]XQD DSSOLHV RQO\ WR
SULPDU\ FXVWRPV LQVSHFWLRQV DQG GRHV QRW VSHDN WR PRUH
SDUWLFXODUL]HG VHFRQGDU\ LQVSHFWLRQV OLNH WKH RQH WR ZKLFK
*DOORZD\ ZDV VXEMHFWHG *DOORZD\ DUJXHV WKDW WKH
DFFXVDWRULDO DQG IRFXVHG QDWXUH RI D VHFRQGDU\ LQVSHFWLRQ
JRHVZHOOEH\RQGZKDWWKHUHDVRQDEOHWUDYHOHUZRXOGFRQVLGHU
URXWLQH RU QRQFXVWRGLDO +RZHYHU WKH IDFW WKDW DQ
LQWHUURJDWLRQ LV QRW UDQGRP EXW IRFXVHG RQ D SDUWLFXODU
GHIHQGDQW GRHV QRW DXWRPDWLFDOO\ UHQGHU LW FXVWRGLDO 6HH
0DWKLDVRQY2UHJRQ86 SHUFXULDP
VWDWLQJ³>Q@RULVWKHUHTXLUHPHQWRIZDUQLQJVWREHLPSRVHG
VLPSO\EHFDXVHWKHTXHVWLRQHGSHUVRQLVRQHZKRPWKH
SROLFHVXVSHFW´ %HFNZLWKY8QLWHG6WDWHV86

-- 7 of 14 --

8QLWHG6WDWHVY*DOORZD\ 1R
VWDWLQJ LW ³ZDV WKH FRPSXOVLYH DVSHFW RI
FXVWRGLDOLQWHUURJDWLRQDQGQRWWKHVWUHQJWKRUFRQWHQWRIWKH
JRYHUQPHQW¶V VXVSLFLRQV DW WKH WLPH WKH TXHVWLRQLQJ ZDV
FRQGXFWHG ZKLFK OHG WKH &RXUW WR LPSRVH WKH 0LUDQGD
UHTXLUHPHQWV ZLWK UHJDUG WR FXVWRGLDO TXHVWLRQLQJ´ 7KH
WRWDOLW\RIWKHFLUFXPVWDQFHVPXVWEHH[DPLQHGWRGHWHUPLQH
ZKHWKHUWKHUHZDVD³IRUPDODUUHVWRUUHVWUDLQWRQIUHHGRPRI
PRYHPHQW RI WKH GHJUHH DVVRFLDWHG ZLWK D IRUPDO DUUHVW´
7KRPSVRQY.HRKDQH86
:H ILQG QR GLVWLQFWLRQ EHWZHHQ SULPDU\ DQG VHFRQGDU\
LQVSHFWLRQV DQ\ZKHUH LQ WKH FXVWRPV VWDWXWHV RU WKHLU
UHJXODWLRQV7KLVGLVWLQFWLRQLVPHUHO\DIXQFWLRQDODVSHFWRI
WKH SDUWLFXODU QRPHQFODWXUH XVHG E\ WKH 86 &XVWRPV
6HUYLFH $V HYLGHQFHG E\ WKH &XVWRPV 6HUYLFH¶V RZQ
EXVLQHVVSUDFWLFHVWKHVHFRQGDU\LQVSHFWLRQLVQROHVVDPDWWHU
RI FRXUVH DQG QR OHVV URXWLQH WKDQ WKH SULPDU\ LQVSHFWLRQ
$FFRUGLQJO\ZHVHHQRUHDVRQQRWWRH[WHQGWKHUXOHLQ2]XQD
WRDSSO\WRDOOFXVWRPDU\ERUGHUVWRSVSULPDU\RUVHFRQGDU\
5HJDUGOHVV*DOORZD\DUJXHVWKDWVHFRQGDU\LQVSHFWLRQDV
LWLVDSSOLHGLVFRHUFLYHEHFDXVHWKHWUDYHOHULVQRWIUHHWR
OHDYH+RZHYHUDOWKRXJKZHKDGRQFHVWDWHGWKH0LUDQGD
VWDQGDUGDVEHLQJZKHWKHUDGHIHQGDQWIHHOVKHLVIUHHWRJR
VHH8QLWHG6WDWHVY6DOYR)G WK&LU
2]XQDGHPRQVWUDWHVWKDWWKLVVWDQGDUGLVQRWFRUUHFW7KHUH
ZHKHOGWKDWSULPDU\LQVSHFWLRQVDUHQRWFXVWRGLDODOWKRXJK
WKHWUDYHOHULVQRWIUHHWRJR2]XQD)GDW
(YHQLIDVHFRQGDU\LQVSHFWLRQLQJHQHUDOLVQRWFXVWRGLDO
*DOORZD\FODLPVWKDWKLVSDUWLFXODUGHWHQWLRQZDVEHFDXVHWKH
FLUFXPVWDQFHVVXUURXQGLQJKLVLQVSHFWLRQPDGHLWDNLQWRDQ
DUUHVW+RZHYHUWKHTXHVWLRQV9DXJKQDVNHG*DOORZD\ZHUH
LQGLFDWLYH RI D URXWLQH FXVWRPV LQTXLU\ QR GLIIHUHQW WKDQ
WKRVH WKDW ZRXOG KDYH EHHQ DVNHG DW SULPDU\ LQVSHFWLRQ
9DXJKQDVNHGLQRUGHU
7RZKLFKFRXQWULHVGLG\RXWUDYHO"
'LG\RXJRWR*HUPDQ\$PVWHUGDPRU+ROODQG"
1R 8QLWHG6WDWHVY*DOORZD\
$WWULDO$UPVWURQJWHVWLILHGRQ7RQH\¶VEHKDOI,GDW
$UPVWURQJ DGPLWWHG KHU RZQ FXOSDELOLW\ EXW GHQLHG DQ\
NQRZOHGJHRI7RQH\¶VLQYROYHPHQW,G3URVHFXWRUVDWWDFNHG
$UPVWURQJ¶VFUHGLELOLW\E\TXHVWLRQLQJKHUDERXWLQFRQVLVWHQW
RUDOVWDWHPHQWVVKHDOOHJHGO\PDGHWRWKH)%,DWWKHWLPHRI
KHUDUUHVW,G6SHFLILFDOO\$UPVWURQJZDVDVNHGZKHWKHUVKH
KDGSUHYLRXVO\WROGWKHJRYHUQPHQWWKDW7RQH\SDUWLFLSDWHGLQ
WKHIUDXG,G$UPVWURQJGHQLHGPDNLQJVXFKVWDWHPHQWVDQG
WKHJRYHUQPHQWQHYHUSUHVHQWHGDQ\HYLGHQFHRWKHUZLVH,G
1HYHUWKHOHVVLQLWVFORVLQJDUJXPHQWWKHJRYHUQPHQWPDGH
WKUHHUHIHUHQFHVWR$UPVWURQJ¶VDOOHJHGSULRUVWDWHPHQWV,G
DW7KH7RQH\RSLQLRQVXPPDUL]HVWKHHYLGHQFHDFWXDOO\
SUHVHQWHGDJDLQVWWKHGHIHQGDQW
RIWKHIUDXGXOHQW%OXH&URVVFKHFNVZHUHPDLOHGWR
7RQH\DQGZHUHSD\DEOHWRKHU
RWKHU FKHFNV SD\DEOH WR %DNHU ZHUH DOVR PDLOHG WR
7RQH\ VKRPHZLWK$UPVWURQJXOWLPDWHO\UHFHLYLQJDQG
FDVKLQJWKHP
7RQH\HQGRUVHGDQGFDVKHGRIWKHFKHFNV
7RQH\FDVKHGWKHFKHFNVDWHLWKHUWKH9LFHUR\0DUNHW
ZKHUH VKH LQFXUUHG D IHH RU DW YDULRXV EUDQFKHV RI
0LFKLJDQ1DWLRQDO%DQNUDWKHUWKDQGHSRVLWLQJWKHPLQ
KHURZQFKHFNLQJDFFRXQW
7KHFKHFNV7RQH\FDVKHGWRWDOHGDQGWKH
IRXU VKH IDLOHG WR QHJRWLDWH WRWDOHG WKH
FRPELQDWLRQ EHLQJ D YHU\ ODUJH VXP RI PRQH\ IRU
XQGRFXPHQWHGFDUHVKHSURYLGHGKHUIDWKHURYHUDQHLJKW
PRQWKSHULRGRIWLPH WRVD\QRWKLQJRIWKHLPSUREDELOLW\
WKDWKHUIDWKHU VLQVXUDQFHZRXOGHYHQFRYHUVXFKFDUH
3HWW\DQG5HDUGRQNQHZWKHVFKHPHZDVIUDXGXOHQWDQG
VSOLWWKHSURFHHGVZLWK$UPVWURQJ'XULQJWKHWLPHIUDPH
RI WKH VFKHPH D QXPEHU RI ODUJH FDVK GHSRVLWV ZHUH
PDGHLQWR$UPVWURQJ VDFFRXQWIRUZKLFKWKHUHZDVQR
DSSDUHQWVRXUFHRWKHUWKDQWKH%OXH&URVVFKHFNVSD\DEOH
WR7RQH\

-- 8 of 14 --

8QLWHG6WDWHVY*DOORZD\ 1R
MHRSDUGL]HWKHPVHOYHVZLWKWKLVDJUHHPHQWWRGRDQ\WKLQJ
EXWWHOOWKHWUXWK
,G DW Q 'HIHQVH FRXQVHO GLG QRW REMHFW ,Q WKH
JRYHUQPHQW¶VFORVLQJWKHSURVHFXWRUUHLWHUDWHGWKLVDUJXPHQW
ZLWK UHVSHFW WR ERWK ZLWQHVVHV ,G DW 7KLV WLPH
GHIHQVHFRXQVHOREMHFWHGEXWZDVRYHUUXOHG,G$OWKRXJK
WKH&DUUROO&RXUWIRXQGWKDWWKHLPSURSHUVWDWHPHQWZDVQRW
³IODJUDQW´LWRUGHUHGDQHZWULDODQ\ZD\EHFDXVHWKHHYLGHQFH
RI WKH GHIHQGDQW¶V JXLOW ZDV QRW ³RYHUZKHOPLQJ´ GHIHQVH
FRXQVHOREMHFWHGWRWKHRQHRIWKHSURVHFXWRU¶VVWDWHPHQWV
DQGWKHFRXUWGLGQRWFXUHWKHHUURU,GDW
7KH JRYHUQPHQW RIIHUHG RQO\ RQH DFFRPSOLFH DJDLQVW
*DOORZD\ZKHUHDVSURVHFXWRUVRIIHUHGWZRLQ&DUUROO:LWK
DQH[WUDZLWQHVVRQHFRXOGDUJXHWKDWWKH&DUUROOSURVHFXWRUV
KDGWKHLUFRQYLFWLRQUHYHUVHGGHVSLWHDVWURQJHUFDVHWKDQWKH
RQH DJDLQVW *DOORZD\ SDUWLFXODUO\ VLQFH WKH &DUUROO
SURVHFXWRUV DOVR KDG ZLWQHVVHV ZKR LGHQWLILHG WKH FRFDLQH
VROGE\WKHGHIHQGDQWWRWKH3DWULFNV
&RQWUDVW&DUUROOZLWKDQRWKHUFDVH8QLWHG6WDWHVY7RQH\
)G WK &LU LQ ZKLFK ZH IRXQG WKDW DQ
LPSURSHUSURVHFXWRULDOUHPDUNZDVQRQIODJUDQWDQGGHFOLQHG
WR RUGHU D QHZ WULDO EHFDXVH D SURSHU FXUDWLYH LQVWUXFWLRQ
IROORZHG D GHIHQVH REMHFWLRQ DQG WKH HYLGHQFH ZDV
³RYHUZKHOPLQJ´,GDW7RQH\ZDVSURVHFXWHGIRU
SDUWLFLSDWLQJLQDVFKHPHWRGHIUDXGDQLQVXUDQFHSURYLGHU
%OXH&URVVE\FDVKLQJIDOVLILHGEHQHILWFKHFNV,GDW
7KHJRYHUQPHQWDOOHJHG7RQH\DFWHGLQFDKRRWVZLWKWKUHHRI
KHUQHLJKERUV.ULVWHQ$UPVWURQJ<YHWWH3HWW\DQG%ULGJHW
5HDUGRQ,GDW$OORIWKHFRQVSLUDWRUVSDUWLFLSDWHGLQ
UHFHLYLQJ RU FDVKLQJ IUDXGXOHQW EHQHILW FKHFNV DORQJ ZLWK
DQRWKHUQHLJKERU'HERUDK%DNHU,GDW%OXH&URVV
LVVXHGVRPHRIWKHEHQHILWFKHFNVWR7RQH\IRUIXOOWLPHFDUH
VKHFODLPHGWRKDYHSURYLGHGKHUWHUPLQDOO\LOOIDWKHU,GDW
$ MXU\ FRQYLFWHG 7RQH\ RI PXOWLSOH FRXQWV RI PDLO
IUDXG,GDW
1R 8QLWHG6WDWHVY*DOORZD\
7KH JXLOGHU ZDV WKH EDVLF XQLW RI FXUUHQF\ RI WKH 1HWKHUODQGV DW WKH
WLPH *DOORZD\ ZDV WKHUH 7KH HXUR KDV UHSODFHG WKH JXLOGHU DV WKH EDVLF
XQLW RI FXUUHQF\ LQ WKH 1HWKHUODQGV DV RI -DQXDU\
,I \RX KDYHQ¶W EHHQ WR +ROODQG ZK\ GR \RX KDYH
JXLOGHUV"
:KDWGLG\RXSXUFKDVHRQ\RXUWULS"
,VWKLVVZHDWVKLUWZLWK³$PVWHUGDP´ZULWWHQDFURVV
WKHIURQWWKHRQH\RXSXUFKDVHG"
,I\RXZHUHQRWLQ+ROODQGWKHQZK\DUHWKHUHWUDLQ
WLFNHWVIURP%UXVVHOVWR$PVWHUGDPLQ\RXUEDJ"
:H ILQG QRWKLQJ FRHUFLYH DERXW WKLV OLQH RI TXHVWLRQLQJ
0RUHRYHU*DOORZD\ZDVVWDQGLQJWKHHQWLUHWLPHDQGLQSODLQ
YLHZRIRWKHUWUDYHOHUVDQGQRWWDNHQWRDURRPRUDQRWKHU
SDUWRIWKHDLUSRUW
:HIXUWKHUILQGQRSUREOHPZLWKWKHOHQJWKRI*DOORZD\¶V
GHWHQWLRQ)LUVWWKHGHWHQWLRQZDVRQO\VHYHQWRWHQPLQXWHV
LQ GXUDWLRQ 7KLV VHYHQ WR WHQ PLQXWHV LQFOXGHG QRW RQO\
9DXJKQ¶V TXHVWLRQLQJ RI *DOORZD\ EXW RI .LUVFK DV ZHOO
5HJDUGOHVVHYHQLIWKHGHWHQWLRQKDGEHHQORQJHUZHKHOGLQ
2]XQDWKDWDGHIHQGDQWORVHVKLVH[SHFWDWLRQRIEUHYLW\ZKHQ
KHSURORQJVKLVQRQFXVWRGLDOGHWHQWLRQE\O\LQJ2]XQD
)G DW 2]XQD OLHG WR FXVWRPV LQVSHFWRUV DERXW KLV
LGHQWLW\WKHUHE\H[WHQGLQJWKHGXUDWLRQRIKLVGHWHQWLRQZKLOH
WKH\ DVFHUWDLQHG KLV LGHQWLW\ /LNHZLVH *DOORZD\ OLHG WR
9DXJKQDERXWWKHFRXQWULHVKHKDGYLVLWHGWKHUHE\H[SRVLQJ
KLPVHOI WR WKH SRVVLELOLW\ RI D ORQJHU GHWHQWLRQ ZKLOH
LQVSHFWRUVVHDUFKHGIRUWKHWUXWK
*DOORZD\ODVWO\DUJXHVWKDWKLVSDUWLFXODULQVSHFWLRQZDV
FXVWRGLDOEHFDXVHLWZDVLQLWLDWHGE\DFDQLQHDOHUW7KH1LQWK
&LUFXLWKDVDGGUHVVHGWKLVLVVXHDQGIRXQGWKDWWKHH[LVWHQFH
RI SUREDEOH FDXVH LV WKH GHWHUPLQLQJ IDFWRU DV WR ZKHQ
0LUDQGDULJKWVDUHQHHGHGDWDVHFRQGDU\FXVWRPVLQVSHFWLRQ
:HKROGWKDWWKHZDUQLQJUHTXLUHGLQ0LUDQGDQHHGQRW
EHJLYHQWRRQHZKRLVHQWHULQJWKH8QLWHG6WDWHVXQOHVV
DQGXQWLOWKHTXHVWLRQLQJDJHQWVKDYHSUREDEOHFDXVHWR

-- 9 of 14 --

8QLWHG6WDWHVY*DOORZD\ 1R
EHOLHYH WKDW WKH SHUVRQ TXHVWLRQHG KDV FRPPLWWHG DQ
RIIHQVH RU WKH SHUVRQ TXHVWLRQHG KDV EHHQ DUUHVWHG
ZKHWKHU ZLWK RU ZLWKRXW SUREDEOH FDXVH ,W LV DW WKDW
SRLQW LQ ERUGHU FDVHV WKDW WKH LQYHVWLJDWLRQ KDV
³IRFXVHG´LQWKH0LUDQGDVHQVH
&KDYH]0DUWLQH]Y8QLWHG6WDWHV)G WK&LU
:HDOVREHOLHYHWKLVWREHWKHSURSHUVWDQGDUG$
FDQLQHDOHUWKRZHYHUGRHVQRWFRQVWLWXWHSUREDEOHFDXVHLQ
DFRPSOHWHO\UDQGRPVHWWLQJVXFKDVDQDLUSRUWEHFDXVHRILWV
TXHVWLRQDEOHDFFXUDF\8QLWHG6WDWHVY&RRN1R
:/DW WK&LU0D\ SHUFXULDP
FLWLQJ8QLWHG6WDWHVY)HUQDQGH])GQ
WK&LU VWDWLQJWKDW³WKHPHUHIDFWWKDWDGRJKDV KLW
RQDSLHFHRIEDJJDJHRUFDUJRGRHVQRWLQWKHDEVHQFHRIDQ\
IDFWRUVVXSSRUWLQJLWVUHOLDELOLW\HVWDEOLVKSUREDEOHFDXVH
&XVWRPVRIILFLDOVFRXOGQRWKDYHDUUHVWHG*DOORZD\VROHO\RQ
WKH EDVLV RI WKH FDQLQH DOHUW DEVHQW D ILQGLQJ RI GUXJV
9DXJKQGLVFRQWLQXHGWKHTXHVWLRQLQJZKHQKHIRXQGHFVWDF\
LQ.LUVFK¶VFRDW:HEHOLHYHWKDWWKLVLVZKHQSUREDEOHFDXVH
H[LVWHGIRUDQDUUHVW7KH'HIHQGDQWVZHUHWKHQDUUHVWHGDQG
SURSHUO\UHDGWKHLU0LUDQGDULJKWV
$FFRUGLQJO\HYHQWKRXJK*DOORZD\PD\KDYHSHUVRQDOO\
EHHQDQ[LRXVDERXWKLVVHFRQGDU\LQVSHFWLRQLQOLJKWRIWKH
IDFWWKDWKHZDVVPXJJOLQJVRPHSLOOVRIHFVWDF\ZH
ILQGWKDWDUHDVRQDEOHPDQZRXOGKDYHFRQVLGHUHGLWUDWKHU
URXWLQHDLUSRUWVHFXULW\SURFHGXUHVQRWDWDOODNLQWRDQDUUHVW
,IZHZHUHWRUHTXLUH0LUDQGDZDUQLQJVEHIRUHWKHH[LVWHQFH
RI SUREDEOH FDXVH ZH ZRXOG EH UHTXLULQJ HYHU\ FXVWRPV
LQVSHFWRUWRUHDG0LUDQGDULJKWVWRHDFKRIWKHWKRXVDQGVRI
WUDYHOHUVVXEMHFWHGWRSULPDU\RUVHFRQGDU\LQVSHFWLRQHYHQ
WKRXJKWKHGHWHQWLRQLVRIWHQLQLWLDWHGE\QRWKLQJPRUHWKDQ
WKHRULJLQRIWKHWUDYHOHU¶VIOLJKWLIQRWWRWDOO\DWUDQGRP
,QVXPZHILQGWKDWWKHQDWXUHRIWKHVHFRQGDU\FXVWRPV
LQVSHFWLRQLVXQFRHUFLYHDQGQRQFXVWRGLDODQGUHPDLQVVXFK
XQOHVVDQGXQWLOSUREDEOHFDXVHH[LVWV7KHYDVWPDMRULW\RI
LQVSHFWLRQVOHDGWRQRWKLQJHYHQZKHQLQLWLDWHGE\DFDQLQH
DOHUW7KHLQVSHFWRUDVNVURXWLQHTXHVWLRQVSHUIRUPVDURXWLQH
1R 8QLWHG6WDWHVY*DOORZD\
VHFRQG VHULHV RI TXHVWLRQV ZKHWKHU WKH HYLGHQFH ZDV RYHUZKHOPLQJ
ZKHWKHU WKHUH ZDV DQ REMHFWLRQ DQG ZKHWKHU WKHUH ZDV D OLPLWLQJ
LQVWUXFWLRQ LI WKH UHPDUN ZDV QRW IODJUDQW ,G 7KH FRPPHQWV LQ %HUJHU
PD\ KDYH TXDOLILHG DV IODJUDQW XQOLNH WKH VWDWHPHQW KHUH EXW WKLV
GLVWLQFWLRQ GRHV QRW DGGUHVV WKH VWUHQJWK RI WKH HYLGHQFH LQ WKH UHVSHFWLYH
FDVHV
RYHUZKHOPLQJ PHDQV ³RYHUSRZHULQJ´ 6HH :(%67(5¶6
7+,5' 1(: ,17(51$7,21$/ ',&7,21$5< 7KH
PDMRULW\ KDV WR FRQWHQG WKDW WKH GLIIHUHQFH EHWZHHQ
*DOORZD\¶VFDVHDQG%HUJHULVWKHGLIIHUHQFHEHWZHHQZHDN
HYLGHQFHDQGRYHUSRZHULQJHYLGHQFHZKLFKLVKDUGWRDFFHSW
$ ORRN DW WKLV &RXUW¶V SULRU KDQGOLQJ RI D VLPLODU
SURVHFXWRULDO PLVFRQGXFW FDVHV LV DOVR LOOXPLQDWLQJ 2XU
RSLQLRQLQ8QLWHG6WDWHVY&DUUROO)G WK&LU
LQYROYHV YHU\ VLPLODU OHJDO LVVXHV WR WKH FDVH QRZ
EHIRUH WKH &RXUW ,Q &DUUROO WKH 8QLWHG 6WDWHV WULHG WKH
GHIHQGDQW IRU YDULRXV GUXJUHODWHG RIIHQVHV ,G DW
5RELQ 3DWULFN DQG KHU KXVEDQG 'DYLG 3DWULFN ZHUH WKH
FUXFLDO ZLWQHVVHV ,G 7KH JRYHUQPHQW¶V FDVH FRQVLVWHG
PRVWO\ RI WKHLU H\HZLWQHVV WHVWLPRQ\ DOWKRXJK RWKHU
ZLWQHVVHVLGHQWLILHGWKHFRFDLQHWKDWWKHGHIHQGDQWDOOHJHGO\
VROGWRWKH3DWULFNV,G7KHSURVHFXWRU¶VFORVLQJVWDWHPHQW
LQFOXGHGWKHIROORZLQJDUJXPHQW
5RELQ3DWULFNKDVDOUHDG\SOHGJXLOW\6KHKDVQRWEHHQ
VHQWHQFHG 6KH¶V IDFLQJ WHQ WR ILIWHHQ \HDUV LQ WKH
SHQLWHQWLDU\,IVKHFRPHVLQKHUHDQGVKHWHOOVWKHWUXWK
FRRSHUDWHV IXOO\ WKH JRYHUQPHQW PD\ PHDQLQJ PH
PDNHD.PRWLRQZKLFKDOORZVWKHMXGJHWRVHQWHQFH
KHUEHORZWKHWHQWRILIWHHQ\HDUV

,IVKHFRPHVLQKHUHDQGOLHVWKDWDJUHHPHQWLVYRLG,I
VKHFRPHVLQKHUHDQGJHWVRQWKLVZLWQHVVVWDQGDQGWKH
MXGJHEHOLHYHVVKHOLHGVKH¶VMHRSDUGL]LQJKHUVHOIIXUWKHU


, VXEPLW WR \RX WKDW 5RELQ DQG 5LWFKLH 3DWULFN DUH
FUHGLEOHZLWQHVVHV,VXEPLWWR\RXWKDWQRSHUVRQZRXOG

-- 10 of 14 --

8QLWHG6WDWHVY*DOORZD\ 1R
%HUJHU LV DOVR GLVWLQJXLVKDEOH EHFDXVH WKH SURVHFXWRU PDGH VHYHUDO
LPSURSHU VWDWHPHQWV DOWKRXJK WKH &RXUW IRFXVHG RQ WKH PRVW LPSRUWDQW
RQH 7KH LQVWDQW FDVH LQYROYHV WKH DQDO\VLV RI D QRQIODJUDQW SURVHFXWRULDO
UHPDUN 7R GHWHUPLQH IODJUDQF\ WKLV &RXUW FRQVLGHUV ZKHWKHU WKH
VWDWHPHQW PLVOHG WKH MXU\ RU SUHMXGLFHG WKH GHIHQGDQW ZKHWKHU WKH
UHPDUN ZDV LVRODWHG RU SDUW RI D VHULHV RI LPSURSHU VWDWHPHQWV ZKHWKHU
WKH UHPDUN ZDV GHOLEHUDWH DQG WKH WRWDO VWUHQJWK RI WKH HYLGHQFH
DJDLQVW WKH DFFXVHG )UDQFLV )G DW :H RQO\ UHDFK WKH
ORRNHGDWKLPDQGZDVDIUDLGWRJRRYHUWKHUHDQGZKHQ
,ZDYHGP\DUPHYHU\ERG\VWDUWHGWRKROOHU³'RQ WSRLQW
DWKLP´<RXNQRZWKHUXOHVRIODZ:HOOLWLVWKHPRVW
FRPSOLFDWHG JDPH LQ WKH ZRUOG , ZDV H[DPLQLQJ D
ZRPDQWKDW,NQHZNQHZ%HUJHUDQGFRXOGLGHQWLI\KLP
VKHZDVVWDQGLQJULJKWKHUHORRNLQJDWKLPDQG,FRXOGQ W
VD\³,VQ WWKDWWKHPDQ"´1RZLPDJLQHWKDW%XWWKDWLV
WKHUXOHVRIWKHJDPHDQG,KDYHWRSOD\ZLWKLQWKRVH
UXOHV
,G DW HPSKDVLV LQ RULJLQDO 7KXV WKH SURVHFXWRU
LPSHUPLVVLEO\FODLPHGWRNQRZWKDW*ROGVWHLQFRXOGLGHQWLI\
%HUJHU$OWKRXJKWKH&RXUWIRXQGWKDWWKLVUHPDUNLQOLJKWRI
WKH SURVHFXWRU¶V RWKHU LQDSSURSULDWH FRPPHQWV ZDUUDQWHG
UHYHUVDOWKH&RXUWQRWHGWKDW³>L@IWKHFDVHDJDLQVW%HUJHUKDG
EHHQVWURQJRUDVVRPHFRXUWVKDYHVDLGWKHHYLGHQFH RI
JXLOW μRYHUZKHOPLQJ¶ D GLIIHUHQW FRQFOXVLRQ PLJKW EH
UHDFKHG´,GDW
%HUJHUGRHVQRWH[SUHVVO\GHILQH³RYHUZKHOPLQJ´DQGWKH
DERYHTXRWHG VHQWHQFH LV UHDOO\ GLFWD ,W LV VLJQLILFDQW
KRZHYHUWKDWWKHJRYHUQPHQW¶VFDVH³GHSHQG>HG@XSRQ
WKHWHVWLPRQ\RI.DW]DQDFFRPSOLFHZLWKDORQJFULPLQDO
UHFRUG´,GDW7KH&RXUWFKDUDFWHUL]HGWKHJRYHUQPHQW¶V
FDVHDV³ZHDN´,G
7KH SUHVHQFH RI FRUURERUDWLQJ HYLGHQFH PDNHV WKH FDVH
DJDLQVW *DOORZD\ VRPHZKDW VWURQJHU WKDQ WKH FDVH DJDLQVW
%HUJHUEXW%HUJHUQHYHUWKHOHVVVKRZVWKHVWUDLQWKHPDMRULW\
SODFHVRQWKHZRUG³RYHUZKHOPLQJ´EHFDXVHERWKWKHFDVH
DJDLQVW*DOORZD\DQGWKHFDVHDJDLQVW%HUJHUGHSHQGKHDYLO\
RQ TXHVWLRQDEOH DFFRPSOLFH WHVWLPRQ\ /LWHUDOO\
1R 8QLWHG6WDWHVY*DOORZD\
EDJ DQG ERG\ VHDUFK DQG XVXDOO\ VHQGV WKH WUDYHOHU RQ KLV
ZD\$FFRUGLQJO\ZHDIILUPWKHGHFLVLRQRIWKHGLVWULFWFRXUW
DQGILQGWKHUHZDVQR0LUDQGDYLRODWLRQ
,,,3URVHFXWRULDO0LVFRQGXFW
1H[W*DOORZD\FODLPVKHLVHQWLWOHGWRDQHZWULDOEHFDXVH
WKHSURVHFXWRUPDGHLPSURSHUVWDWHPHQWVGXULQJKLVFORVLQJ
DUJXPHQW*DOORZD\¶VSULQFLSDOGHIHQVHWKURXJKRXWKLVWULDO
ZDVWKDW.LUVFKDFWHGDORQHLQFDUU\LQJWKHHFVWDF\LQWRWKH
8QLWHG6WDWHVDQGWKDWVKHZDVQRWPHUHO\*DOORZD\¶VPXOH
DVVKHKDGWHVWLILHG*DOORZD\DWWHPSWHGWRUHIXWH.LUVFK¶V
DVVHUWLRQWKDWVKHZDVDPXOHE\LQWLPDWLQJWKURXJKFURVV
H[DPLQDWLRQRI*RYHUQPHQWZLWQHVVHVWKDWKDG.LUVFKEHHQ
DPXOHKHZRXOGQRWKDYHDFFRPSDQLHGKHURQWKHIOLJKWDQG
WKURXJKFXVWRPV,QVWHDGKHZRXOGKDYHVHQWKHUDORQHRU
ZDWFKHG IURP D GLVWDQFH ,Q LWV FORVLQJ DUJXPHQW
*RYHUQPHQWFRXQVHODWWHPSWHGWRUHIXWHWKLVGHIHQVHVWDWLQJ
,KDYHWULHGVHYHUDOFDVHVP\VHOIZKHUHZHVHHWKHPXOH
WHUPDQGZHKDYHDGHIHQGDQWZKRFODLPVKHRUVKHLVD
PXOHDQG,KDYHKDGVHYHUDOFDVHVZKHUHNLQGRIOLNHWKH
ERG\JXDUG VFHQDULR ZKHUH WKH LQGLYLGXDO ZKR LV
UHVSRQVLEOH IRU WKH GUXJV WUDYHOV ZLWK WKH LQGLYLGXDO
FDUU\LQJWKHGUXJV
7ULDO 1RY DW 7U *DOORZD\ FODLPV WKLV
VWDWHPHQW LV LPSURSHU EHFDXVH WKH SURVHFXWRU LQMHFWHG KLV
RZQSHUVRQDONQRZOHGJHLQWRWKHFDVHDQGKHWKHUHIRUHLV
HQWLWOHGWRDQHZWULDO
:KHQUHYLHZLQJDFODLPRISURVHFXWRULDOPLVFRQGXFWEDVHG
RQLPSURSHUVWDWHPHQWVZHHPSOR\DWZRSDUWWHVW8QLWHG
6WDWHVY&DUUROO)G WK&LU 7KH
ILUVWSDUWRIWKHWHVWLVWRGHWHUPLQHZKHWKHUWKHUHPDUNVZHUH
LQGHHGLPSURSHU6HH8QLWHG6WDWHVY)UDQFLV)G
WK&LU 8QLWHG6WDWHVY.UHEV)G
WK &LU ,I WKH\ ZHUH LPSURSHU ZH PXVW
GHWHUPLQHLIWKHUHPDUNVZHUHIODJUDQWDQGZDUUDQWUHYHUVDO
)UDQFLV)GDW FLWLQJ&DUUROO)GDW
7KHUH DUH IRXU IDFWRUV WKDW ZH XWLOL]H WR GHWHUPLQH LI DQ

-- 11 of 14 --

8QLWHG6WDWHVY*DOORZD\ 1R
LPSURSHUVWDWHPHQWZDVIODJUDQW ZKHWKHUWKHVWDWHPHQWV
WHQGHG WR PLVOHDG WKH MXU\ DQG SUHMXGLFH WKH GHIHQGDQW
ZKHWKHU WKH VWDWHPHQWV ZHUH LVRODWHG RU SHUYDVLYH
ZKHWKHUWKHVWDWHPHQWVZHUHGHOLEHUDWHO\SODFHGEHIRUHWKH
MXU\ DQG ZKHWKHU WKH HYLGHQFH DJDLQVW WKH DFFXVHG LV
RWKHUZLVHVWURQJ6HH)UDQFLV)GDW&DUUROO
)GDW FLWLQJ8QLWHG6WDWHVY/HRQ)G
WK&LU 1RQHRIWKHVHIDFWRUVLVGLVSRVLWLYHEXW
HYHQLIZHGRILQGWKHLPSURSHUVWDWHPHQWZDVQRWIODJUDQW
ZHZLOOQRQHWKHOHVVUHYHUVHDFRQYLFWLRQXSRQDGHWHUPLQDWLRQ
WKDW WKH SURRI RI WKH GHIHQGDQW¶V JXLOW LV QRW
RYHUZKHOPLQJ WKHGHIHQVHREMHFWHGWRWKHVWDWHPHQWVDQG
WKH WULDO MXGJH GLG QRW FXUH WKH LPSURSULHW\ WKURXJK DQ
DGPRQLVKPHQWWRWKHMXU\)UDQFLV)GDW&DUUROO
)GDW FLWLQJ8QLWHG6WDWHVY%HVV)G
WK&LU
7KH RQO\ DOOHJDWLRQ RI PLVFRQGXFW EHIRUH XV LV WKH
*RYHUQPHQW¶VVWDWHPHQWGXULQJFORVLQJDUJXPHQWV6LQFHD
SURVHFXWRUFDQQRWH[SUHVVKLVSHUVRQDORSLQLRQVEHIRUHWKH
MXU\ KLV VWDWHPHQW WHQGLQJ WR JLYH FUHGHQFH WR .LUVFK¶V
UHFLWDWLRQZDVQHFHVVDULO\LPSURSHU6HHHJ*DOOY3DUNHU
)G WK&LU FHUWGHQLHG86

8SRQ ILQGLQJ WKDW WKH VWDWHPHQW ZDV LPSURSHU ZH PXVW
GHWHUPLQHZKHWKHUWKHVWDWHPHQWZDVIODJUDQW,QXWLOL]LQJWKH
/HRQEDODQFLQJWHVWZHILQGWKHSURVHFXWRU¶VVWDWHPHQWZDV
LVRODWHG LQ QDWXUH *DOORZD\ UDLVHV RQO\ RQH LVVXH RI
SURVHFXWRULDOPLVFRQGXFWDQGGRHVQRWDOOHJHWKDWWKHWULDO
ZDVULGGOHGZLWKLPSURSHUVWDWHPHQWV&I*DOO)GDW
VWDWLQJKRZSURVHFXWRULDOPLVFRQGXFWZDVSHUYDVLYHDW
DOOVWDJHVRIWULDO 0RUHRYHUZHILQGQRHYLGHQFHWKDWWKH
VWDWHPHQWZDVGHOLEHUDWHDQGZHILQGWKDWLWZDVQRWPDGH
ZLWKLQWHQWWRSUHMXGLFHWKHGHIHQGDQW6HH&DUUROO)G
DW VWDWLQJWKDWUHPDUNZDVQRWGHOLEHUDWHZKHQQR
HYLGHQFHH[LVWHGWRLQGLFDWHRWKHUZLVH $FFRUGLQJO\ZHILQG
WKHLPSURSHUUHPDUNZDVQRWIODJUDQW
1R 8QLWHG6WDWHVY*DOORZD\
8QLWHG6WDWHV %HUJHU,, 86 RYHUUXOHGLQ
SDUWRQRWKHUJURXQGV6WLURQHY8QLWHG6WDWHV86
KDV WKH 6XSUHPH &RXUW VXJJHVWHG WKDW DQ
³RYHUZKHOPLQJ´FDVHPLJKWPLWLJDWHWKHSUREOHPVFDXVHGE\
DQLPSURSHUSURVHFXWRULDOFRPPHQW,GDW%HUJHUWKXV
SURYLGHV PHDQLQJIXO JXLGDQFH LQ RXU DWWHPSW WR GHWHUPLQH
ZKHWKHUWKHFDVHDJDLQVW*DOORZD\ZDV³RYHUZKHOPLQJ´
,Q%HUJHUWKHLQGLFWPHQWFKDUJHGWKHGHIHQGDQW%HUJHU
ZLWKKDYLQJFRQVSLUHGZLWKVHYHQRWKHUVWRXWWHUFRXQWHUIHLW
IHGHUDO UHVHUYH QRWHV ,G DW 7KH LQGLFWPHQW DOVR
FRQWDLQHGHLJKWDGGLWLRQDOVXEVWDQWLYHFRXQWVDQGQDPHGRWKHU
GHIHQGDQWVLQFOXGLQJ.DW]5LFHDQG-RQHV,GDW.DW]
DFFHSWHGDJXLOW\SOHDRQWKHFRQVSLUDF\FRXQWDQGWHVWLILHGIRU
WKHJRYHUQPHQWDWWKHWULDOLQH[FKDQJHIRUDQROOHSURVHTXLRQ
WKH VXEVWDQWLYH FRXQWV ,G %HUJHU ZDV FRQYLFWHG RQO\ RI
FRQVSLUDF\ZKLOHKLVFRFRQVSLUDWRUVZHUHFRQYLFWHGRIWKH
VXEVWDQWLYHRIIHQVHV,GDW
$FFRUGLQJWRWKH&RXUWWKHHYLGHQFH³WHQGHGWRHVWDEOLVK
QRWDVLQJOHFRQVSLUDF\DVFKDUJHGEXWWZRFRQVSLUDFLHV²RQH
EHWZHHQ5LFHDQG.DW]DQGDQRWKHUEHWZHHQ%HUJHU-RQHV
DQG.DW]´,G7KHRQO\OLQNEHWZHHQWKHWZRJURXSVZDV
WKDWHDFKZDVFRQQHFWHGZLWKWKHVDPHIUDXGXOHQWQRWHV,G
7KHUHZDVQRHYLGHQFHWKDW%HUJHUFRQVSLUHGZLWK5LFHDQG
.DW],GDW
.DW]ZDVWKHRQO\ZLWQHVVZKRWHVWLILHGWR%HUJHU¶VDOOHJHG
UROHLQWKH%HUJHU-RQHV.DW]FRQVSLUDF\6HH8QLWHG6WDWHV
Y %HUJHU %HUJHU , )G G &LU /
+DQG - H[SODLQLQJ WKH IDFWV LQ JUHDWHU GHWDLO UHY¶G E\
8QLWHG 6WDWHV Y %HUJHU %HUJHU ,, 86 7KH
SURVHFXWLRQDOVRLQWURGXFHGDZRPDQ*ROGLH*ROGVWHLQWR
LGHQWLI\ %HUJHU DV D PHPEHU RI WKH %HUJHU-RQHV.DW]
VFKHPHEXWZKHQRQWKHVWDQGVKHKDGGLIILFXOW\GRLQJVR
%HUJHU,,86DW5HIOHFWLQJDSDWWHUQRI³XQGLJQLILHG
DQGLQWHPSHUDWH´EHKDYLRUWKHSURVHFXWRUDUJXHG
0UV *ROGLH *ROGVWHLQ WDNHV WKH VWDQG 6KH VD\V VKH
NQRZV-RQHVDQG\RXFDQEHW\RXUERWWRPGROODUVKH
NQHZ %HUJHU 6KH VWRRG ULJKW ZKHUH , DP QRZ DQG

-- 12 of 14 --

8QLWHG6WDWHVY*DOORZD\ 1R
8QVXUSULVLQJO\ WKH PDMRULW\ QHJOHFWV WR GHILQH ³RYHUZKHOPLQJ´
ZKLFK LV WKH SLYRWDO WHUP /HDYLQJ ³RYHUZKHOPLQJ´ DPELJXRXV PDNHV
GLVSDUDWH DSSOLFDWLRQ RI )UDQFLV LQHYLWDEOH EHFDXVH FRXUWV FDQ HPSOR\ WKH
ODQJXDJH ZKHQHYHU QHFHVVDU\ WR UHDFK WKH RXWFRPH WKH\ GHVLUH
ZRUNHGDV*DOORZD\¶V³PXOH´PHDQLQJWKDW.LUVFKFDUULHG
WKHGUXJV DQGDVVXPHGWKHULVNRIDUUHVW IRU*DOORZD\$
UHDVRQDEOHSHUVRQPLJKWUHDFKWKHLQWXLWLYHFRQFOXVLRQWKDWLW
ZRXOGGHIHDWWKHSXUSRVHRIWKHPXOHERVVUHODWLRQVKLSLIWKH
ERVV DOOHJHGO\*DOORZD\ WUDYHOHGZLWKWKHPXOH DOOHJHGO\
.LUVFK
$V TXRWHG DERYH WKH PDMRULW\ OLVWV IRXU RWKHU SLHFHV RI
HYLGHQFHQRQHRIZKLFKFRQFOXVLYHO\HVWDEOLVKHV*DOORZD\¶V
JXLOW )LUVW *DOORZD\ SDLG IRU .LUVFK¶V WLFNHWV DQG
WUDQVSRUWDWLRQ*DOORZD\KRZHYHUFODLPHGWKDW.LUVFKZDV
KLVJLUOIULHQGZKLFKFRXOGH[SODLQKLVJHQHURVLW\6HFRQG
*DOORZD\ KDG .LUVFK¶V SDVVSRUW EDJJDJH FODLP VWXE DQG
WLFNHWVEXWLWLVVLPLODUO\UHDVRQDEOHWKDWVRPHRQHPLJKWFDUU\
YDULRXV SDSHUV IRU KLV JLUOIULHQG 7KLUG KH SDLG FDVK IRU
HYHU\WKLQJDQGWROGWKHWUDYHODJHQWWRLQGLFDWHWKDWKHSDLGE\
FKHFN 7KLV LV JHQXLQHO\ VXVSLFLRXV EHKDYLRU )LQDOO\
*DOORZD\ OLHG WR WKH FXVWRPV RIILFLDOV DERXW KLV WULS WR
$PVWHUGDP3HUKDSVKHGHQLHGYLVLWLQJ$PVWHUGDPEHFDXVH
KHKDGXVHGGUXJVZKLOHWKHUHDQGEHFDPHIULJKWHQHGZKHQ
DLUSRUW GUXJ GRJV DOHUWHG WR KLV OXJJDJH 5HJDUGOHVV KLV
DWWHPSW WR PLVOHDG WKH FXVWRPV RIILFLDOV LV DOVR FOHDUO\
VXVSLFLRXV EHKDYLRU 7DNHQ DV D ZKROH WKHUHIRUH WKH
JRYHUQPHQW¶V FDVH FRQVLVWV RI .LUVFK¶V KLJKO\ PRWLYDWHG
WHVWLPRQ\ FRUURERUDWHG E\ VHYHUDO LQVWDQFHV RI VXVSLFLRXV
EHKDYLRU8QGHU)UDQFLVZHPXVWLQLWLDOO\DVNZKHWKHUWKLV
LV³RYHUZKHOPLQJ´HYLGHQFHDJDLQVW*DOORZD\)GDW

7R GR VR ZH PXVW ILUVW GHFLGH ZKDW FRQVWLWXWHV DQ
³RYHUZKHOPLQJ´FDVH1HLWKHUWKH6XSUHPH&RXUWQRUDQ\
ORZHUFRXUWKDVH[SODLQHGSUHFLVHO\ZKDWTXDQWXPRIHYLGHQFH
LV³RYHUZKHOPLQJ´HQRXJKWRPDNHSURVHFXWRULDOPLVFRQGXFW
HIIHFWLYHO\KDUPOHVVHUURUDWOHDVWZKHQFRPELQHGZLWKDQ
REMHFWLRQDQGFXUDWLYHLQVWUXFWLRQ2QO\RQFHLQ%HUJHUY
1R 8QLWHG6WDWHVY*DOORZD\
8QGHU%HVVZHZLOOUHYHUVHWKHFRQYLFWLRQRQO\LI WKH
RWKHUHYLGHQFHLVQRWRYHUZKHOPLQJ *DOORZD\REMHFWHGDW
WULDO DQG WKHUH ZDV QR FXUDWLYH DGPRQLVKPHQW E\ WKH
MXGJH 6HH %HVV )G DW *DOORZD\ REMHFWHG
LPPHGLDWHO\DIWHUWKHSURVHFXWRU¶VVWDWHPHQWDQGWKHMXGJH
VXVWDLQHG WKH REMHFWLRQ VWDWLQJ ³6XVWDLQHG 1R HYLGHQFH
0RYHRQ´*DOORZD\GLGQRWDVNIRUIXUWKHULQVWUXFWLRQ:H
KDYHKHOGWKDWIRUDFXUDWLYHDGPRQLVKPHQWWREHVXIILFLHQW
LWPXVWEHVZLIWDQGLQSURSRUWLRQWRWKHSRWHQWLDOKDUP6HH
8QLWHG6WDWHVY6ROLYDQ)G WK&LU
LQGLFDWLQJ WKDW WKH WLPLQJ RI WKH DGPRQLWLRQ LV PRUH
LPSRUWDQWWKDQWKHILUPQHVV VHHDOVR%HVV)GDW
+HUH WKH MXGJH H[SUHVVHG GLVDSSURYDO RI WKH SURVHFXWRU¶V
VWDWHPHQWLPPHGLDWHO\XSRQWKHREMHFWLRQ&I6ROLYDQ
)GDW KROGLQJWKDWDQDGPRQLWLRQWKDWFDPHDIWHUD
WZHQW\ PLQXWH EUHDN ZDV QRW VZLIW HQRXJK IRU FXUDWLYH
LQVWUXFWLRQWREHVXIILFLHQWEHFDXVHLPSURSHUVWDWHPHQWKDG
EHHQ³HWFKHGLQJUDQLWH´LQWKHMXURUV¶PLQGV 0RUHRYHUZH
ILQGKLVDGPRQLWLRQZDVVXIILFLHQWO\ILUPWRDPHOLRUDWHWKH
QRQIODJUDQW FRQGXFW &I LG $FFRUGLQJO\ ZH KROG WKLV
DGPRQLWLRQDOWKRXJKEULHIVDWLVILHVWKHFXUDWLYHLQVWUXFWLRQ
UHTXLUHPHQWXQGHU%HVV
0RUHRYHUHYHQZLWKRXWDFXUDWLYHLQVWUXFWLRQZHILQGWKH
UHTXLUHPHQWVRI%HVVDUHVDWLVILHGEHFDXVHWKHRWKHUHYLGHQFH
DJDLQVW*DOORZD\ZDVRYHUZKHOPLQJ*DOORZD\SDLGFDVKIRU
HYHU\WKLQJ²WKHDLUIDUHWKHKRWHODQGWKHWUDLQ²IRUERWK
KLPVHOIDQG.LUVFK)XUWKHUPRUHKHXVHGWZRWUDYHODJHQWV
LQSODQQLQJWKHWULSSD\LQJIRUDOODUUDQJHPHQWVLQFDVK\HW
DVNLQJHDFKWUDYHODJHQWWRLQGLFDWHWKDWKHKDGSDLGE\FKHFN
$OVRKHKDGSRVVHVVLRQRI.LUVFK¶VSDVVSRUWEDJJDJHFODLP
VWXE DQG WLFNHWV XSRQ WKHLU DUULYDO LQ &LQFLQQDWL /DVWO\
*DOORZD\UHSHDWHGO\OLHGDERXWWKHIDFWWKDWKHKDGEHHQWR
$PVWHUGDP ,Q WRWDO WKH HYLGHQFH DJDLQVW *DOORZD\
QRWZLWKVWDQGLQJWKHSURVHFXWRU¶VLPSURSHUVWDWHPHQWLVYDVW
$FFRUGLQJO\ ZH ILQG WKDW WKH SURVHFXWRU¶V VWDWHPHQW
WKRXJK LPSURSHU GRHV QRW ZDUUDQW D UHYHUVDO RI WKH
FRQYLFWLRQDQGDQHZWULDO

-- 13 of 14 --

8QLWHG6WDWHVY*DOORZD\ 1R
*DOORZD\¶V WDWWRR FRQWDLQV WKH FRQFHDOHG LQVFULSWLRQ ³/6'´ LQ DQ
HODERUDWH SDWWHUQ RQ KLV EDFN *DOORZD\¶V FRXQVHO DVNHG DERXW DQG
.LUVFK WHVWLILHG WR LWV H[LVWHQFH 6HH DOVR VXSUD QRWH
,9,QHIIHFWLYH$VVLVWDQFHRI&RXQVHO
1H[W *DOORZD\ FODLPV KLV FRXQVHO ZDV LQHIIHFWLYH +H
DVVHUWV WKDW KLV FRXQVHO FDXVHG KLP SUHMXGLFH ZKHQ KH
TXHVWLRQHG.LUVFKDERXW*DOORZD\¶VWDWWRREHFDXVHLWWHQGHG
WRLQGLFDWHWKDW*DOORZD\DGYRFDWHVWKHXVHRIGUXJV
:HKDYHKHOGWKDWLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPV
DUHJHQHUDOO\QRWKHDUGRQGLUHFWUHYLHZ6HH8QLWHG6WDWHVY
6KDED]])G 8QLWHG6WDWHVY-DFNVRQ
)G WK&LU 6XFKLVVXHVDUHXVXDOO\
KHDUG RQO\ RQ KDEHDV SHWLWLRQV XQGHU 86& †
8QLWHG6WDWHVY/RQJ)G WK&LU :H
JHQHUDOO\GRQRWKHDUVXFKFODLPVRQGLUHFWUHYLHZEHFDXVH
IRUWKHPRVWSDUWWKHUHFRUGEHIRUHXVZLOOEHLQVXIILFLHQWWR
HQDEOHXVWRHQWHUWDLQWKHFODLPEHFDXVHDVXFFHVVIXOFODLP
QHFHVVDULO\UHTXLUHVDVKRZLQJRISUHMXGLFHDVHQXQFLDWHGLQ
6WULFNODQGY:DVKLQJWRQ86 8QLWHG6WDWHV
Y$JXZD)G WK&LU :HILQGWKH
UHFRUGLQWKLVFDVHQRGLIIHUHQW
$FFRUGLQJO\ZHGHFOLQHWRDGGUHVVWKHLVVXHRILQHIIHFWLYH
DVVLVWDQFHRIFRXQVHO
9&RQFOXVLRQ
)RUWKHIRUHJRLQJUHDVRQVZHXSKROGWKHGHFLVLRQRIWKH
8QLWHG 6WDWHV 'LVWULFW &RXUW IRU WKH (DVWHUQ 'LVWULFW RI
.HQWXFN\DQG$)),50*DOORZD\¶VFRQYLFWLRQDQGVHQWHQFH
1R 8QLWHG6WDWHVY*DOORZD\
BBBBBBBBBBBBBBB
',66(17
BBBBBBBBBBBBBBB
&/$<&LUFXLW-XGJHGLVVHQWLQJ:HH[SODLQHGLQ8QLWHG
6WDWHVY)UDQFLVWKDW³>W@RUHYHUVHDFRQYLFWLRQEHFDXVHRIDQ
LPSURSHU QRQIODJUDQW VWDWHPHQW D UHYLHZLQJ FRXUW PXVW
GHWHUPLQH WKDW WKH SURRI RI WKH GHIHQGDQW V JXLOW LV QRW
RYHUZKHOPLQJ WKHGHIHQVHFRXQVHOREMHFWHGDQG WKH
WULDO FRXUW IDLOHG WR FXUH WKH LPSURSULHW\ E\ IDLOLQJ WR
DGPRQLVKWKHMXU\´)G WK&LU VHH
DOVR8QLWHG6WDWHVY%HVV)G WK&LU
DUWLFXODWLQJ WKLV WHVW 6LQFH WKH JRYHUQPHQW ODFNHG DQ
³RYHUZKHOPLQJ´ FDVH DQG WKH WULDO FRXUW GLG QRW RIIHU D
FXUDWLYHLQVWUXFWLRQ,UHVSHFWIXOO\GLVVHQW
7KHPDMRULW\DPSO\VXPPDUL]HVWKHFDVHDJDLQVW*DOORZD\
ZKLFKWKH\FODLPLV³YDVW´$VWKHPDMRULW\H[SODLQV
*DOORZD\SDLGFDVKIRUHYHU\WKLQJ²WKHDLUIDUHWKHKRWHO
DQGWKHWUDLQ²IRUERWKKHDQG.LUVFK)XUWKHUPRUHKH
XVHGWZRWUDYHODJHQWVLQSODQQLQJWKHWULSSD\LQJIRUDOO
DUUDQJHPHQWV LQ FDVK \HW DVNLQJ HDFK WUDYHO DJHQW WR
LQGLFDWH WKDW KH KDG SDLG E\ FKHFN $OVR KH KDG
SRVVHVVLRQRI.LUVFK¶VSDVVSRUWEDJJDJHFODLPVWXEDQG
WLFNHWVXSRQWKHLUDUULYDOLQ&LQFLQQDWL/DVWO\*DOORZD\
UHSHDWHGO\ OLHG DERXW WKH IDFW WKDW KH KDG EHHQ WR
$PVWHUGDP
,QDGGLWLRQWRWKLVHYLGHQFHWKHSURVHFXWLRQDOVRRIIHUHGWKH
WHVWLPRQ\ RI .LUVFK WKH ZRPDQ FDXJKW ZLWK WKH GUXJV
.LUVFKWROGWKHMXU\WKDWVKHZRUNHGDV*DOORZD\¶V³PXOH´RU
KLVVXERUGLQDWHUHVSRQVLEOHIRUSK\VLFDOO\FDUU\LQJQDUFRWLFV
WKDWDFWXDOO\EHORQJHGWR*DOORZD\
7KHFDVHKDVVRPHZHDNQHVVHV.LUVFKWKHJRYHUQPHQW¶V
RQO\ZLWQHVVKDGDQREYLRXVPRWLYHWROLH²VKHH[FKDQJHG
KHUWHVWLPRQ\IRUDVXEVWDQWLDOO\UHGXFHGVHQWHQFH&XVWRPV
DJHQWV IRXQG WKH GUXJV RQ .LUVFK QRW *DOORZD\
)XUWKHUPRUH WKH SURVHFXWRUV K\SRWKHVL]HG WKDW .LUVFK

-- 14 of 14 --