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
$867,1 (8*(1( /,1(%$&.
'HIHQGDQW$SSHOODQW
;!
1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH:HVWHUQ'LVWULFWRI7HQQHVVHHDW0HPSKLV
1R²%HUQLFH%'RQDOG'LVWULFW-XGJH
$UJXHG$SULO
'HFLGHGDQG)LOHG0D\
%HIRUH6,/(5*,/0$1DQG*,%%216&LUFXLW-XGJHV
BBBBBBBBBBBBBBBBB
&2816(/
$5*8('%UXFH,*ULIIH\2)),&(2)%58&(,5:,1
*5,))(< 0HPSKLV 7HQQHVVHH IRU $SSHOODQW 'DQ /
1HZVRP $66,67$17 81,7(' 67$7(6 $77251(<
0HPSKLV7HQQHVVHHIRU$SSHOOHH21%5,()%UXFH,
*ULIIH\2)),&(2)%58&(,5:,1*5,))(<0HPSKLV
7HQQHVVHH IRU $SSHOODQW 'DQ / 1HZVRP $66,67$17
81,7('67$7(6$77251(<0HPSKLV7HQQHVVHHIRU
$SSHOOHH
8QLWHG6WDWHVY/LQHEDFN 1R
6,/(5 - GHOLYHUHG WKH RSLQLRQ RI WKH FRXUW LQ ZKLFK
*,%%216 - MRLQHG *,/0$1 - SS GHOLYHUHG D
VHSDUDWHFRQFXUULQJRSLQLRQ
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
6,/(5&LUFXLW-XGJH'HIHQGDQW$XVWLQ(XJHQH/LQHEDFN
DSSHDOVWKHGLVWULFWFRXUW VGHQLDORIKLVPRWLRQWRZLWKGUDZKLV
JXLOW\SOHD)RUWKHUHDVRQVVWDWHGEHORZZH$)),50
,
,Q)HEUXDU\/LQHEDFNZDVLQGLFWHGIRU SRVVHVVLRQ
RI PDWHULDOV VKLSSHG LQ LQWHUVWDWH FRPPHUFH WKDW FRQWDLQHG
YLVXDO GHSLFWLRQV RI PLQRUV HQJDJHG LQ VH[XDOO\ H[SOLFLW
FRQGXFWLQYLRODWLRQRI86& D % DQG
SHUVXDGLQJDPLQRUWRHQJDJHLQVH[XDOO\H[SOLFLWFRQGXFWIRU
WKHSXUSRVHRISURGXFLQJDYLVXDOGHSLFWLRQRIVXFKFRQGXFWLQ
YLRODWLRQ RI 86& D +H HQWHUHG LQWR D SOHD
DJUHHPHQWZLWKWKH*RYHUQPHQWWKURXJKKLVUHWDLQHGFRXQVHO
'HQQLV-RKQVRQRQ$XJXVW7KHFRXUWKHOGDFKDQJH
RISOHDKHDULQJDQGDFFHSWHG/LQHEDFN¶VJXLOW\SOHDRQWKDW
VDPHGD\
2Q 6HSWHPEHU /LQHEDFN PRYHG WR GLVPLVV
-RKQVRQ DV KLV DWWRUQH\ -RKQVRQ VXEVHTXHQWO\ PRYHG WR
ZLWKGUDZ IURP IXUWKHU UHSUHVHQWDWLRQ 7KH FRXUW DOORZHG
-RKQVRQ WR ZLWKGUDZ DQG DSSRLQWHG WKH )HGHUDO 3XEOLF
'HIHQGHU¶V2IILFHWRUHSUHVHQW/LQHEDFN,Q1RYHPEHU
/LQHEDFNPRYHGWRZLWKGUDZKLVJXLOW\SOHDRQWKHJURXQGV
WKDWKH ZDVGLVVDWLVILHGZLWKKLVUHWDLQHGFRXQVHO IHOW
SUHVVXUHG LQWR SOHDGLQJ JXLOW\ E\ FRXQVHO GLG QRW KDYH
DGHTXDWHWLPHWRIXOO\FRQVLGHUWKHFRQVHTXHQFHVRIKLVSOHD
DQG GHVLUHGWRSXUVXHKLVLQQRFHQFHDWWULDO7KHGLVWULFW
FRXUWGHQLHGKLVPRWLRQ/LQHEDFNZDVVXEVHTXHQWO\VHQWHQFHG
WRDWRWDORIPRQWKV¶LPSULVRQPHQWIROORZHGE\\HDUVRI
VXSHUYLVHGUHOHDVH
-- 1 of 5 --
1R 8QLWHG6WDWHVY/LQHEDFN
7KLV UXOH ZDV SUHYLRXVO\ )HG 5 &ULP 3 G DQG KDV VLQFH EHHQ
PRGLILHG DQG PRYHG WR )HG 5 &ULP 3 G
,,
7KLV FRXUW UHYLHZV WKH GHQLDO RI D PRWLRQ WR ZLWKGUDZ D
JXLOW\ SOHD XQGHU DQ ³DEXVH RI GLVFUHWLRQ´ VWDQGDUG 8QLWHG
6WDWHVY%D]]L)G WK&LU $GLVWULFW
FRXUWDEXVHVLWVGLVFUHWLRQ³ZKHQLWUHOLHVRQFOHDUO\HUURQHRXV
ILQGLQJVRIIDFWRUZKHQLWLPSURSHUO\DSSOLHVWKHODZRUXVHV
DQHUURQHRXVOHJDOVWDQGDUG´8QLWHG6WDWHVY6SLNHV)G
WK&LU FLWDWLRQRPLWWHG
$WDOOUHOHYDQWWLPHVLQWKLVFDVH)HGHUDO5XOHRI&ULPLQDO
3URFHGXUH H SURYLGHGWKDW³>L@IDPRWLRQWRZLWKGUDZD
SOHDRIJXLOW\LVPDGHEHIRUHWKHVHQWHQFHLVLPSRVHGWKH
FRXUWPD\SHUPLWWKHSOHDWREHZLWKGUDZQLIWKHGHIHQGDQW
VKRZVDQ\IDLUDQGMXVWUHDVRQ´)HG5&ULP3 H
³&RXUWVKDYHQRWHGWKDWWKHDLPRIWKHUXOHLVWRDOORZDKDVWLO\
HQWHUHGSOHDPDGHZLWKXQVXUHKHDUWDQGFRQIXVHGPLQGWREH
XQGRQHQRWWRDOORZDGHIHQGDQWWRPDNHDWDFWLFDOGHFLVLRQWR
HQWHUDSOHDZDLWVHYHUDOZHHNVDQGWKHQREWDLQDZLWKGUDZDO
LIKHEHOLHYHVKHPDGHDEDGFKRLFHLQSOHDGLQJJXLOW\´8QLWHG
6WDWHVY%DVKDUD)G WK&LU LQWHUQDO
TXRWDWLRQ PDUNV RPLWWHG VXSHUVHGHG RQ RWKHU JURXQGV E\
VWDWXWHDVVWDWHGLQ8QLWHG6WDWHVY&DVHVORUHQWH)G
WK&LU 7KH%DVKDUDFRXUWQRWHGWKDWWKH
IDFWRUV IRU D FRXUW WR FRQVLGHU LQ GHWHUPLQLQJ ZKHWKHU WKH
GHIHQGDQWKDVPHWWKLVEXUGHQLQFOXGH
WKHDPRXQWRIWLPHWKDWHODSVHGEHWZHHQWKHSOHDDQG
WKHPRWLRQWRZLWKGUDZLW
WKH SUHVHQFH RU DEVHQFH RI D YDOLG UHDVRQ IRU WKH
IDLOXUHWRPRYHIRUZLWKGUDZDOHDUOLHULQWKHSURFHHGLQJV
ZKHWKHUWKHGHIHQGDQWKDVDVVHUWHGRUPDLQWDLQHGKLV
LQQRFHQFH
WKHFLUFXPVWDQFHVXQGHUO\LQJWKHHQWU\RIWKHJXLOW\
SOHD
WKHGHIHQGDQW VQDWXUHDQGEDFNJURXQG
8QLWHG6WDWHVY/LQHEDFN 1R
WKH GHJUHH WR ZKLFK WKH GHIHQGDQW KDV KDG SULRU
H[SHULHQFHZLWKWKHFULPLQDOMXVWLFHV\VWHPDQG
SRWHQWLDOSUHMXGLFHWRWKHJRYHUQPHQWLIWKHPRWLRQWR
ZLWKGUDZLVJUDQWHG
,G
7KH GLVWULFW FRXUW LGHQWLILHG WKHVH VHYHQ IDFWRUV LQ LWV
DQDO\VLV,QGLVFXVVLQJWKHWKLUGIDFWRUWKHGLVWULFWFRXUWPDGH
D IDFWXDO ILQGLQJ WKDW /LQHEDFN KDG QRW PDLQWDLQHG KLV
LQQRFHQFH,QGLVFXVVLQJWKHVHYHQWKIDFWRUWKHGLVWULFWFRXUW
UHDVRQHGDVIROORZV
>7@KH GHIHQVH VD\V WKHUH LV QR SUHMXGLFH WR WKH
JRYHUQPHQWEXWREYLRXVO\WKHJRYHUQPHQWKDVUHOLHGRQ
WKH GHIHQGDQW V YROXQWDU\ QHJRWLDWLRQV ZKLFK >KDYH@
UHVXOWHG LQ D SOHD 7KH YLFWLPV LQ WKLV FDVH KDYH EHHQ
DGYLVHGWKDWWKLVPDWWHUKDVHQGHGLQDSOHD>2@QHRIWKH
YLFWLPVZDVDWWKHWLPH>RIWKHRIIHQVH@
$QG WKRVH YLFWLPV ZKR KDYH EHHQ WKH\ DQG WKHLU
IDPLOLHVZKRKDYHEHHQDVVXUHGWKDWWKLVPDWWHUKDVHQGHG
ZRXOGQRZXQGHUJRWKHDQ[LHW\DQGDOORIWKHHPRWLRQDO
XQGHUSLQQLQJVRINQRZLQJWKDWDPDWWHUWKDWWKH\WKRXJKW
ZDV UHVROYHG ZRXOG QRZ EH UHRSHQHG DQG WKH\ ZRXOG
KDYHWRFRPHWRWULDODQG±DQGWHVWLI\$QGZKLOHWKRVH
IDFWRUV GR QRW RXWZHLJK D GHIHQGDQW V ULJKWV WR D WULDO
>WKH\@DUHIDFWRUVWKDWKDYHWREHWDNHQWRWKHPL[
/LQHEDFNDUJXHVWKDWWKHGLVWULFWFRXUW VIDFWXDOILQGLQJWKDW
KHKDGIDLOHGWRPDLQWDLQKLVLQQRFHQFHZDVFOHDUO\HUURQHRXV
DQG WKDW LWV FRQVLGHUDWLRQ RI SUHMXGLFH WR WKH YLFWLPV ZDV D
PLVDSSOLFDWLRQRIWKHODZ
5HJDUGLQJ/LQHEDFN¶VFODLPRILQQRFHQFHKHFRQWHQGVWKDW
KHQHYHUGHQLHGWKDWKHKDGVH[XDOFRQWDFWZLWKWKHYLFWLPV
EXWUDWKHUVHHNVWRSXUVXHKLVOHJDOLQQRFHQFHDWWULDOEDVHGRQ
WKH ODFN RI D VXIILFLHQW QH[XV EHWZHHQ KLV FRQGXFW DQG
LQWHUVWDWH FRPPHUFH 7KH GLVWULFW FRXUW FRQFOXGHG WKDW
/LQHEDFNIDLOHGWRPDLQWDLQKLVLQQRFHQFHEHFDXVHKHDGPLWWHG
-- 2 of 5 --
1R 8QLWHG6WDWHVY/LQHEDFN
0RUULVRQ KDG SOHG JXLOW\ WR WKH OHVVHULQFOXGHG IHORQ\ RI DWWHPSWHG
VH[XDO DVVDXOW ,G DW
³WKDWKHGLGHQJDJHLQWKHFRQGXFWWKDWZDVVHWIRUWKLQWKH
JRYHUQPHQW¶VSOHDFROORTX\´7KHGLVWULFWFRXUWGLGQRWDEXVH
LWV GLVFUHWLRQ LQ ILQGLQJ WKDW WKLV IDFWRU ZHLJKHG DJDLQVW
/LQHEDFN
,Q8QLWHG6WDWHVY0RUULVRQ)G WK&LU
WKH(LJKWK&LUFXLWDGGUHVVHGWKHUHOHYDQFHRISUHMXGLFHWRD
YLFWLPLQGHWHUPLQLQJZKHWKHUDGHIHQGDQWVKRXOGEHDOORZHG
WRZLWKGUDZKLVJXLOW\SOHD,QWKDWFDVH0RUULVRQZDVLQGLFWHG
IRU DJJUDYDWHG VH[XDO DVVDXOW DIWHU DOOHJHGO\ UDSLQJ %HOOH
6WDUER\ KLV HVWUDQJHG FRPPRQODZ ZLIH ,G DW ,Q
DIILUPLQJWKHGLVWULFWFRXUW VGHQLDORI0RUULVRQ VPRWLRQWR
ZLWKGUDZKLVJXLOW\SOHDWKHFRXUWUHDVRQHGDVIROORZV
>7@KH GHIHQGDQW V IDLU DQG MXVW UHDVRQ PXVW DOZD\V EH
EDODQFHGDJDLQVWSUHMXGLFHWRWKHJRYHUQPHQW0RUULVRQ
KDGZDLWHGXQWLOWKHHYHRIWULDOEHIRUHSOHDGLQJJXLOW\
ZKHQLWZDVREYLRXVWKDW6WDUER\ZRXOGFDUU\WKURXJKRQ
KHU FULPLQDO FRPSODLQW 7KH SURVHFXWRU V DIILGDYLW LQ
RSSRVLWLRQWRWKHILUVWPRWLRQWRZLWKGUDZH[SODLQHGLQ
JUHDWGHWDLOWKHWUDXPDRISUHSDULQJIRUWULDOIRU6WDUER\
DQGKHUIDPLO\DQGWKHGLIILFXOW\RIJDWKHULQJZLWQHVVHV
IRU D WULDO RI WKLV VRUW :LWKGUDZDO RI WKH SOHD ZRXOG
REYLRXVO\ UHTXLUH WKH SURVHFXWLRQ DQG LWV ZLWQHVVHV WR
HQGXUHWKLVHPRWLRQDOSURFHVVDJDLQ:KHWKHUZHFODVVLI\
WKLVDVSUHMXGLFHWRWKHJRYHUQPHQWRUSUHMXGLFHWRWKH
FRPSODLQLQJ YLFWLP LW LV UHDO SUHMXGLFH FDXVHG E\ WKH
WLPLQJRI0RUULVRQ VJXLOW\SOHDDQGVXEVHTXHQWDWWHPSWV
WRZLWKGUDZ
,GDW
$W/LQHEDFN VFKDQJHRISOHDKHDULQJWKH*RYHUQPHQWQRWHG
WKDWLI/LQHEDFNFKRVHWRJRWRWULDOWKH*RYHUQPHQW VHYLGHQFH
ZRXOGLQFOXGHWHVWLPRQ\IURPWKHWZRPLQRUYLFWLPVLQWKLV
FDVH,QLWVRSSRVLWLRQWR/LQHEDFN VPRWLRQWRZLWKGUDZWKH
*RYHUQPHQWDJDLQQRWHGWKDWWKHYLFWLPV
8QLWHG6WDWHVY/LQHEDFN 1R
DUHPLQRUVZKRKDYHDOUHDG\EHHQWUDXPDWL]HGE\WKH
DFWLRQV RI WKH 'HIHQGDQW 7KH\ KDYH EHHQ WKURXJK
HQRUPRXV VWUHVV DQG PHQWDO DQJXLVK LQ DZDLWLQJ VRPH
ILQDOLW\WRWKHVHOHJDOSURFHHGLQJV7RUHYHUVHWKLVSURFHVV
DQGUHTXLUHWKHVHPLQRUVWRQRZWHVWLI\EHIRUHWKHSXEOLF
LQDMXU\WULDOZLOOEHGLIILFXOWDWEHVWDQGZLOOFHUWDLQO\
SUHMXGLFHWKH*RYHUQPHQWLQLWVHIIRUWWRREWDLQMXVWLFH
:HQHHGQRWPDNHDOHJDOGHWHUPLQDWLRQUHJDUGLQJZKHWKHU
D GLVWULFW FRXUW PD\ FRQVLGHU SUHMXGLFH WR WKH YLFWLP DV D
VHSDUDWH HLJKWK %DVKDUDIDFWRU,QVWHDGRXUWDVNLVWRUHYLHZ
WKH GLVWULFW FRXUW V IDFWXDO GHWHUPLQDWLRQ WKDW WKH SUHMXGLFH
VXIIHUHGE\WKHYLFWLPVKHUHZRXOGUHVXOWLQSUHMXGLFHWRWKH
*RYHUQPHQW %HFDXVH WKLV IDFWXDO ILQGLQJ ZDV QRW FOHDUO\
HUURQHRXVZHILQGQRDEXVHRIGLVFUHWLRQ
$)),50('
-- 3 of 5 --
1R 8QLWHG6WDWHVY/LQHEDFN
BBBBBBBBBBBBBBBBBBBBBB
&21&855(1&(
BBBBBBBBBBBBBBBBBBBBBB
521$/' /(( *,/0$1 &LUFXLW -XGJH FRQFXUULQJ $
UHYLHZRIWKHGLVWULFWFRXUW¶VDQDO\VLVPDNHVFOHDUWKDWWKHFRXUW
IRXQG WKDW /LQHEDFN KDG IDLOHG WR HVWDEOLVK D ³IDLU DQG MXVW
UHDVRQ´ IRU ZLWKGUDZLQJ KLV JXLOW\ SOHD XQGHU WKH ILUVW VL[
%DVKDUDIDFWRUV7KLVFRXUWKDVSUHYLRXVO\KHOGWKDWZKHUHD
GHIHQGDQW IDLOV WR VKRZ VXFK D UHDVRQ WKH FRXUW QHHG QRW
FRQVLGHUWKHVHYHQWK%DVKDUDIDFWRURIZKHWKHUWKHZLWKGUDZDO
ZRXOGSUHMXGLFHWKHJRYHUQPHQW8QLWHG6WDWHVY$OH[DQGHU
)G WK&LU
,QWKHSUHVHQWFDVHKRZHYHUWKHGLVWULFWFRXUWSURFHHGHGWR
FRPPHQWRQWKHSRWHQWLDOSUHMXGLFHWRERWKWKHJRYHUQPHQW
DQGWKHYLFWLPVLI/LQHEDFNZHUHSHUPLWWHGWRZLWKGUDZKLV
JXLOW\SOHD7KHVHFRPPHQWVLQP\RSLQLRQZHUHLUUHOHYDQW
WRWKHGHQLDORI/LQHEDFN¶VZLWKGUDZDOPRWLRQLQOLJKWRIWKH
GLVWULFWFRXUW¶VGHWHUPLQDWLRQWKDWKHKDGIDLOHGWRHVWDEOLVKD
IDLUDQGMXVWUHDVRQIRUZLWKGUDZDO%HFDXVH,DJUHHWKDWWKH
GLVWULFWFRXUWGLGQRWDEXVHLWVGLVFUHWLRQLQGHQ\LQJ/LQHEDFN¶V
PRWLRQ,FRQFXULQWKHUHVXOWUHDFKHGE\WKHOHDGRSLQLRQ
2Q WKH RWKHU KDQG , ILQG WURXEOLQJ WKH GLVWULFW FRXUW¶V
PHQWLRQRIWKHHPRWLRQDODQJXLVKWRWKHYLFWLPVDVDIDFWRUWR
EHFRQVLGHUHGLQGHQ\LQJ/LQHEDFN¶VPRWLRQWRZLWKGUDZKLV
JXLOW\SOHD,DOVRGLVDJUHHZLWKWKHGLVWULFWFRXUW¶VDVVHVVPHQW
WKDWWKH³SUHMXGLFHVXIIHUHGE\WKHYLFWLPVKHUHZRXOGUHVXOWLQ
SUHMXGLFH WR WKH *RYHUQPHQW´ /HDG 2S DW )RU WKHVH
UHDVRQV,ZULWHWKLVFRQFXUULQJRSLQLRQWRGLVFXVVWKHSURSULHW\
RI D GLVWULFW FRXUW¶V FRQVLGHUDWLRQ RI SUHMXGLFH WR WKH
JRYHUQPHQWLQWKHIRUPRISUHMXGLFHWRWKHYLFWLPV
*HQHUDOO\SUHMXGLFHWRWKHJRYHUQPHQWKDVEHHQIRXQGLQ
FDVHVZKHUHWKHHQWHULQJRIDJXLOW\SOHDDQGWKHQDVXEVHTXHQW
PRWLRQ WR ZLWKGUDZ KDV PDGH WKH JRYHUQPHQW¶V FDVH PRUH
GLIILFXOWWKDQLWZRXOGKDYHEHHQLIWKHJXLOW\SOHDKDGQHYHU
EHHQHQWHUHG(J8QLWHG6WDWHVY%U\DQW)G
8QLWHG6WDWHVY/LQHEDFN 1R
WK &LU ILQGLQJ SUHMXGLFH ZKHUH WKUHH WULDOV RI
FRGHIHQGDQWV KDG DOUHDG\ RFFXUUHG JLYLQJ WKH GHIHQGDQW D
SUHYLHZRIWKHJRYHUQPHQW¶VFDVH 8QLWHG6WDWHVY-HUU\
)G G&LU ILQGLQJSUHMXGLFHEHFDXVHSK\VLFDO
HYLGHQFH KDG EHHQ GLVFDUGHG 8QLWHG 6WDWHV Y 9DVTXH]
9HODVFR )G WK &LU ILQGLQJ SUHMXGLFH
EHFDXVHRIWKHGHDWKRIWKHFKLHIJRYHUQPHQWZLWQHVV 7KH
OHDGRSLQLRQKRZHYHUIROORZVWKHUHDVRQLQJRIDQRSLQLRQ
IURP WKH (LJKWK &LUFXLW DQG VXJJHVWV WKDW SUHMXGLFH WR WKH
YLFWLP LQ WKH IRUP RI HPRWLRQDO DQJXLVK FDQ UHVXOW LQ
SUHMXGLFHWRWKHJRYHUQPHQW8QLWHG6WDWHVY0RUULVRQ
)G WK&LU 7KLVLPSOLHVWKDWSUHMXGLFHZLOOEH
IRXQGLQIRUFLQJWKHJRYHUQPHQWDQGLWVZLWQHVVHVWRSUHSDUH
IRUWULDOLQDQHPRWLRQDOO\FKDUJHGFDVHWKDWWKH\WKRXJKWKDG
EHHQUHVROYHGE\WKHHQWU\RIDJXLOW\SOHD
8QOLNHP\FROOHDJXHV,GRQRWEHOLHYHWKDWWKHUHDVRQLQJRI
0RUULVRQDSSOLHVKHUH,Q0RUULVRQWKHFRXUWQRWHGWKDWWKH
JXLOW\SOHDZDVHQWHUHGRQWKHHYHRIWULDO7KHGHIHQGDQW¶V
VXEVHTXHQW DWWHPSW WR ZLWKGUDZ WKH SOHD ZDV IRXQG WR EH
SUHMXGLFLDOEHFDXVHLWZRXOGKDYHIRUFHGWKHJRYHUQPHQWWR
SUHSDUHDVHFRQGWLPHIRUWULDODQGFDXVHGWKHYLFWLPWRVXIIHU
WKH PHQWDO DQJXLVK RI D VHFRQG SUHSDUDWLRQ 2XU FDVH LV
GLVWLQJXLVKDEOH EHFDXVH WKHUH LV QRWKLQJ LQ WKH UHFRUG WR
VXJJHVW WKDW /LQHEDFN¶V SOHD ZDV PDGH DW D WLPH ZKHQ WKH
JRYHUQPHQW KDG DOUHDG\ SUHSDUHG IRU WULDO 5DWKHU WKH
JRYHUQPHQWKHUHZRXOGVLPSO\EHUHTXLUHGWRSUHSDUHDQGSXW
RQLWVSURRIDVWKRXJKWKHJXLOW\SOHDKDGQHYHUEHHQHQWHUHG
7KH JRYHUQPHQW KDV VXEPLWWHG QRWKLQJ WR LQGLFDWH WKDW
SUHSDUDWLRQZRXOGEHDQ\PRUHGLIILFXOWDWWKLVSRLQWWKDQLW
ZRXOGKDYHEHHQKDG/LQHEDFNQHYHUHQWHUHGDJXLOW\SOHD
,QP\RSLQLRQSUHMXGLFHPXVWPHDQVRPHWKLQJPRUHWKDQ
WKDWWKHJRYHUQPHQWZLOOEHIRUFHGWRSXWRQLWVSURRIRUWKDW
DZLWQHVVZLOOKDYHWRSUHSDUHIRUWULDODQGWHVWLI\LQWKHILUVW
LQVWDQFH8QLWHG6WDWHVY$OOHQ)6XSS
1' ,RZD LQWHUSUHWLQJ 0RUULVRQ DQG RWKHU (LJKWK
&LUFXLWFDVHVDVUHTXLULQJSUHMXGLFH³EH\RQGWKHQHFHVVLW\RI
WDNLQJDPDWWHUWRWULDOZKLFKPHUHO\UHTXLUHVWKHH[HUFLVHRI
-- 4 of 5 --
1R 8QLWHG6WDWHVY/LQHEDFN
WKH GHIHQGDQW V FRQVWLWXWLRQDO ULJKWV LQVWHDG RI μSOHDGLQJ LW
RXW¶´
7KH OHDG RSLQLRQ VHHPV WR FRPSDUH WKH SRVLWLRQ RIWKH
JRYHUQPHQW DQG YLFWLPV LPPHGLDWHO\ EHIRUH /LQHEDFN¶V
PRWLRQWRZLWKGUDZZDVILOHGZLWKZKDWWKHLUSRVLWLRQZRXOG
EHLIKLVJXLOW\SOHDLVDOORZHGWREHZLWKGUDZQDQGFRPHVWR
WKHFRQFOXVLRQWKDWWKHJRYHUQPHQWZLOOEHLQDOHVVIDYRUDEOH
SRVLWLRQDIWHUWKHZLWKGUDZDO7KLVLQP\RSLQLRQLVQRWWKH
FRUUHFWFRPSDULVRQWRGHWHUPLQHSUHMXGLFH,ILWZHUHWKHQ
WKHUHZRXOGDOZD\VEHDILQGLQJRISUHMXGLFHWRWKHJRYHUQPHQW
XSRQWKHZLWKGUDZDORIDJXLOW\SOHD,ZRXOGLQVWHDGFRPSDUH
WKHSRVLWLRQRIWKHJRYHUQPHQWDQGYLFWLPVEHIRUH/LQHEDFN
SOHG JXLOW\ ZLWK ZKDW WKHLU SRVLWLRQ ZRXOG EH LI WKH SOHD LV
DOORZHGWREHZLWKGUDZQ%DVHGXSRQWKHUHFRUGEHIRUHXV,
ZRXOGFRQFOXGHWKDWWKH\DUHVLPLODUO\VLWXDWHGLQDOOUHOHYDQW
DVSHFWVWKXVSUHFOXGLQJDQ\EDVLVWRILQGSUHMXGLFH
-- 5 of 5 --