02a0106p.06

7KLV RSLQLRQ ZDV VXEPLWWHG WR WKH FRXUW SULRU WR -XGJH 1DWKDQLHO 5
-RQHV¶ GHSDUWXUH IURP WKH FRXUW HIIHFWLYH 0DUFK

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
/8&$6 3(/$<2/$1'(52
'HIHQGDQW$SSHOODQW
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH(DVWHUQ'LVWULFWRI7HQQHVVHHDW*UHHQHYLOOH
1R²7KRPDV*+XOO'LVWULFW-XGJH
6XEPLWWHG1RYHPEHU
'HFLGHGDQG)LOHG$SULO
%HIRUH-21(6 1(/621DQG'$8*+75(<&LUFXLW
-XGJHV
BBBBBBBBBBBBBBBBB
&2816(/
21%5,()'RXJODV/3D\QH*UHHQHYLOOH7HQQHVVHHIRU
$SSHOODQW *X\ : %ODFNZHOO $66,67$17 81,7('
67$7(6$77251(<*UHHQHYLOOH7HQQHVVHHIRU$SSHOOHH

-- 1 of 8 --

8QLWHG6WDWHVY3HOD\R/DQGHUR 1R
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
1$7+$1,(/5-21(6&LUFXLW-XGJH'HIHQGDQW/XFDV
3HOD\R/DQGHUR ³/DQGHUR´ ZDV FKDUJHG LQ D WKUHH FRXQW
LQGLFWPHQWLQWKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH(DVWHUQ
'LVWULFW RI 7HQQHVVHH ZLWK SRVVHVVLRQ RI D ILUHDUP E\ D
SURKLELWHGSHUVRQLQYLRODWLRQRI86&†† J $
DQG D SRVVHVVLRQ RI WZR IRUJHG DOLHQ UHJLVWUDWLRQ
UHFHLSW FDUGV LQ YLRODWLRQ RI 86& † D DQG
SRVVHVVLRQRIDFRXQWHUIHLW6RFLDO6HFXULW\FDUGLQYLRODWLRQRI
86&† D /DQGHURHQWHUHGDFRQGLWLRQDOJXLOW\
SOHD RQ DOO WKUHH FRXQWV 2Q DSSHDO /DQGHUR FRQWHVWV WKH
GHQLDORIKLVPRWLRQWRVXSSUHVVHYLGHQFHVHL]HGGXULQJWKH
VHDUFK RI KLV UHVLGHQFH SXUVXDQW WR D VHDUFK ZDUUDQW
FKDOOHQJLQJ ERWK WKH VXIILFLHQF\ RI WKH ZDUUDQW DQG WKH
PDQQHU RI LWV H[HFXWLRQ )RU WKH IROORZLQJ UHDVRQV ZH
DIILUP
,%$&.*5281'
,Q WKH 7HQQHVVHH %XUHDX RI ,QYHVWLJDWLRQ ³7%,´
UHFHLYHGLQIRUPDWLRQWKDWDQ+LVSDQLFPDOHQDPHG³-HVVLH´
ZDV GHDOLQJ FRFDLQH LQ HDVW 7HQQHVVHH 'XULQJ DQ LQLWLDO
XQGHUFRYHU SKDVH 7%, $JHQW 0LNH +DQQRQ PDGH WKUHH
SXUFKDVHVRIVHYHUDORXQFHVRIFRFDLQHIURP-HVVLH7KHWKUHH
WUDQVDFWLRQVRFFXUUHGDW-LP¶V0DUNHWLQ+DPEOHQ&RXQW\
7HQQHVVHHDQGDW+DUORII)DUPVLQ&RFNH&RXQW\7HQQHVVHH
$OO ZHUH FRQGXFWHG LQ (QJOLVK 7KHUHDIWHU -HVVLH RIIHUHG
$JHQW+DQQRQDNLORJUDPRIFRFDLQHEXWGLVDSSHDUHGEHIRUH
WKHGHDOZDVFRPSOHWHG
,Q'HFHPEHUD7%,LQIRUPDQWUHSRUWHGWKDW-HVVLH
ZDVOLYLQJZLWKRWKHUVLQDPRELOHKRPHLQ+DPEOHQ&RXQW\
DQGVHOOLQJFRFDLQHDQGPDULMXDQD2Q-DQXDU\D7%,
LQIRUPDQWZHQWWRWKHPRELOHKRPHDQGSXUFKDVHGDTXDQWLW\
RI PDULMXDQD IURP -HVVLH ZKR DOVR RIIHUHG WR VHOO WKH
LQIRUPDQWFRFDLQHLQWKHIXWXUH7KHLQIRUPDQWZDVGLUHFWHG
DQGPRQLWRUHGE\WKH7%,DQGORFDOODZHQIRUFHPHQWRIILFLDOV

-- 2 of 8 --

1R 8QLWHG6WDWHVY3HOD\R/DQGHUR
$JHQW+DQQRQZDVDPHPEHURIWKHVXUYHLOODQFHWHDPZKR
ZHUHORFDWHGLQSODLQYLHZRIWKHPRELOHKRPH$IWHUWKH
GUXJSXUFKDVHWKHLQIRUPDQWGHVFULEHGWKHLQVLGHRIWKHWUDLOHU
WR $JHQW +DQQRQ DQG UHSRUWHG WKDW WKHUH ZDV DW OHDVW RQH
ILUHDUPSUHVHQW
2Q -DQXDU\ $JHQW +DQQRQ DSSOLHG IRU DQG
UHFHLYHGDVWDWHVHDUFKZDUUDQWIURPD*HQHUDO6HVVLRQV&RXUW
MXGJHLQ+DPEOHQ&RXQW\7KHZDUUDQWZDVVXSSRUWHGE\D
GHWDLOHG DIILGDYLW DQG VRXJKW PDULMXDQD PRQH\ DQG RWKHU
LWHPVGHULYHGIURPWKHVDOHRIFRQWUROOHGVXEVWDQFHV7KH
ZDUUDQWDOVRGHVFULEHGWKHPRELOHKRPHWREHVHDUFKHGE\
ORFDWLRQPDUNLQJVDQGFKDUDFWHULVWLFV7KHVHDUFKZDUUDQW
LGHQWLILHGWKHLWHPVWREHVHL]HGDVEHLQJORFDWHG
LQWKHUHVLGHQFHRFFXSLHGE\-HVVLH /HJDO1DPH
8QNQRZQ DOLDVORFDWHGLQ+DPEOHQ&RXQW\7HQQHVVHH
DQGIRXQGE\WKHIROORZLQJGLUHFWLRQV
6WDUWLQJDWWKHLQWHUVHFWLRQRI(DVW0RUULV%RXOHYDUGDQG
6RXWK &XPEHUODQG 6WUHHW 7UDYHO 6RXWK RQ 6
&XPEHUODQGDSSUR[LPDWHO\PLOHVWR3LQHEURRN5RDG
7XUQ ULJKW RQWR 3LQHEURRN 5RDG DQG WUDYHO :HVW
DSSUR[LPDWHO\PLOHVWR6XOSKXU6SULQJV5RDG7XUQ
ULJKW RQWR 6XOSKXU 6SULQJV 5RDG DQG WUDYHO QRUWK
DSSUR[LPDWHO\PLOHVWR0DH&ROOLQV5RDG7XUQULJKW
RQWR 0DH &ROOLQV 5RDG DQG WUDYHO DSSUR[LPDWHO\
PLOHVWRWKHIRXUWKPRELOHKRPHRQWKHOHIW7KHPRELOH
KRPHLVZKLWHZLWKSDOHJUHHQWULPZLWKDZRRGHQGHFN
RQ WKH IURQW 7KH QXPEHU LV GLVSOD\HG XQGHU D
ZLQGRZDLUFRQGLWLRQHURQWKHULJKWHQGRIWKHPRELOH
KRPHDVVHHQIURPWKHVWUHHW7KHDFWXDODGGUHVVRIWKH
PRELOHKRPHSDUNLV0DH&ROOLQV5RDG
$GGLWLRQDOO\ D SKRWR RI WKH WUDLOHU ZDV DWWDFKHG WR WKH
ZDUUDQW
2Q-DQXDU\WKHZDUUDQWZDVH[HFXWHGE\VWDWHDQG
ORFDOODZHQIRUFHPHQWRIILFHUV7KHVHDUFKWHDPFRQVLVWHGRI
$JHQW +DQQRQ DV WHDP OHDGHU DQG RWKHU 7%, DQG
0RUULVWRZQ 7HQQHVVHH 3ROLFH 'HSDUWPHQW 2IILFHUV 7KH

-- 3 of 8 --

8QLWHG6WDWHVY3HOD\R/DQGHUR 1R
RIILFHUVSDUNHGDVKRUWGLVWDQFHIURPWKHPRELOHKRPHDQGGLG
QRWXVHIODVKLQJOLJKWVRUVLUHQV7KHRIILFHUVZHUHDZDUHWKDW
D KRPLFLGH VXVSHFW QDPHG ³-RVH´ PLJKW EH LQ WKH PRELOH
KRPH$OORIWKHRIILFHUVZRUHFORWKLQJWKDWLGHQWLILHGWKHP
DVODZHQIRUFHPHQWRIILFLDOV$VWKHRIILFHUVDSSURDFKHGWKH
WUDLOHUWKH\KHDUGVHYHUDOSHRSOHWDONLQJDQGPRYLQJDURXQG
LQVLGH7KHUHZDVDVFUHHQGRRURQWKHPRELOHKRPHEXWWKH
IURQWGRRUZDVRSHQ7KHRIILFHUVFRXOGREVHUYHWKURXJKWKH
RSHQGRRULQGLYLGXDOVLQWKHOLYLQJURRPDUHDRIWKHWUDLOHU
7KHRIILFHUVNQRFNHGRQWKHGRRUDQGDQQRXQFHGLQ(QJOLVK
³3ROLFHVHDUFKZDUUDQW´7KH\ZDLWHGWKUHHWRIRXUVHFRQGV
DQGWKHQHQWHUHGWKHWUDLOHUWKURXJKWKHXQORFNHGVFUHHQGRRU
7KHRIILFHUVRUGHUHGHYHU\RQHWRJHWGRZQRQWKHIORRU7KH
LQGLYLGXDOV FRPSOLHG ZLWK WKH RIILFHUV¶ LQVWUXFWLRQV 7KH
RIILFHUV LGHQWLILHG -HVVLH ZKR LV -HVXV =DYDOD+HUQDQGH]
³+HUQDQGH]´ DOVRNQRZQDV³-HVXV=DYDOD2QWLYHURV´DQG
/DQGHURDOVRNQRZQDV³/XFDV/DQGHUR3HOD\R´-RVHZDV
DOVRSUHVHQWDORQJZLWKWZRZRPHQDQGFKLOGUHQ$OORIWKH
PDOHVXEMHFWVZHUHVHDUFKHG$ORDGHG/RULFLQPLOOLPHWHU
KDQGJXQZDVIRXQGRQ+HUQDQGH]DQGDORDGHG6PLWKDQG
:HVVRQ FDOLEHU UHYROYHU ZDV IRXQG LQ /DQGHUR¶V
SRVVHVVLRQ /DQGHUR DOVR KDG WZR FRXQWHUIHLW DOLHQ
UHJLVWUDWLRQ UHFHLSW FDUGV )RUP , DQG D FRXQWHUIHLW
8QLWHG 6WDWHV 6RFLDO 6HFXULW\ FDUG ZKLFK ZHUH VHL]HG $
TXDQWLW\RIPDULMXDQDZDVDOVRIRXQGLQ/DQGHUR¶VEHGURRP
DQGRQ+HUQDQGH]
7KHRIILFHUVVHL]HGWKHPDULMXDQDKDQGJXQVDQGDQ6.6
ULIOH IRXQG LQ +HUQDQGH]¶V EHGURRP 7KH RIILFHUV DUUHVWHG
+HUQDQGH]DQG/DQGHURRQVWDWHGUXJDQGZHDSRQVFKDUJHV
$IWHUWKHDUUHVWVWKHSROLFHGHWHUPLQHGWKDW+HUQDQGH]DQG
/DQGHURZHUHLQWKH8QLWHG6WDWHVLOOHJDOO\DQGVXEVHTXHQWO\
QRWLILHGWKH,PPLJUDWLRQDQG1DWXUDOL]DWLRQ6HUYLFH ³,16´
7KHPHQZHUHODWHULQWHUYLHZHGLQ6SDQLVKE\DQ,16DJHQW
DQGDIWHUZDLYLQJWKHLUFRQVWLWXWLRQDOULJKWVDGPLWWHGWKHLU
DOLHQVWDWXVDQGGUXJDQGILUHDUPVSRVVHVVLRQ
/DQGHURZDVFKDUJHGLQDWKUHHFRXQWLQGLFWPHQWLQWKH
8QLWHG 6WDWHV 'LVWULFW &RXUW IRU WKH (DVWHUQ 'LVWULFW RI
7HQQHVVHHZLWKSRVVHVVLRQRIDILUHDUPE\DSURKLELWHGSHUVRQ
1R 8QLWHG6WDWHVY3HOD\R/DQGHUR
ZHUHLGHQWLILHGDQGWKHSUHPLVHVZHUHVHFXUHGWKRVHSHUVRQV
DQGWKHULIOHLQVLGHWKHPRELOHKRPHSRVHGDOHJLWLPDWHWKUHDW
WRWKHRIILFHUV¶VDIHW\7KHUHZDVDOVRDUHDVRQDEOHOLNHOLKRRG
RI GHVWUXFWLRQ RI HYLGHQFH 7KH H[LVWHQFH RI H[LJHQW
FLUFXPVWDQFHV MXVWLILHG WKH WLPH EHWZHHQ WKH NQRFN DQG
DQQRXQFHPHQW DQG WKH RIILFHUV¶ HQWUDQFH LQWR WKH PRELOH
KRPH7KHUHIRUHWKHGLVWULFWFRXUWSURSHUO\GHWHUPLQHGWKDW
WKHRIILFHUVDFWHGUHDVRQDEO\LQWKHLUHQWU\RIWKHSUHPLVHV
,,,&21&/86,21
)RU WKH IRUHJRLQJ UHDVRQV ZH DIILUP WKH GLVWULFW FRXUW¶V
GHQLDORI/DQGHUR¶VPRWLRQWRVXSSUHVV

-- 4 of 8 --

8QLWHG6WDWHVY3HOD\R/DQGHUR 1R
DQQRXQFLQJ 7KH SROLFH GR QRW GHQ\ WKLV DVVHUWLRQ 7KH
SROLFH DUJXH KRZHYHU WKDW WKH H[LVWLQJ H[LJHQW
FLUFXPVWDQFHV H[FXVHG WKHLU IDLOXUH WR ZDLW D UHDVRQDEOH
DPRXQWRIWLPHEHIRUHHQWHULQJ
,QWKHLQVWDQWFDVHWKHIRUFLEOHHQWU\ZDVUHDVRQDEOH$OORI
WKHRIILFHUVZHUHGUHVVHGDVODZHQIRUFHPHQWRIILFLDOVDQGKDG
EDGJHVGLVSOD\HGRQWKHLUXQLIRUPV7KHRIILFHUVNQRFNHGRQ
WKHGRRUDQGDQQRXQFHGWKHLUSUHVHQFHDQGDXWKRULW\DVZHOO
DVWKHLUSXUSRVHWRH[HFXWHWKHVHDUFKZDUUDQW)ROORZLQJWKLV
DQQRXQFHPHQW WKH\ ZDLWHG WKUHH WR IRXU VHFRQGV EHIRUH
HQWHULQJWKHXQORFNHGVFUHHQGRRU7KHRIILFHUVZHUHMXVWLILHG
LQWKHLUDFWLRQVEHFDXVHWKH\NQHZWKDWDWOHDVWRQHILUHDUP
ZDVSUHVHQWLQWKHKRPHWKDWWKHUHZHUHGUXJVLQWKHKRPH
WKDWFRXOGKDYHHDVLO\EHHQGLVSRVHGRIDQGWKDWWKHUHPLJKW
KDYHEHHQDKRPLFLGHVXVSHFWLQWKHKRPH$FFRUGLQJO\WKH
HQWU\ZDVUHDVRQDEOHXQGHUWKHFLUFXPVWDQFHV
/DQGHURDOVRDVVHUWVWKDWWKHRIILFHUVZKRSDUWLFLSDWHGLQWKH
H[HFXWLRQRIWKHVHDUFKZDUUDQWYLRODWHG:LOVRQEHFDXVHWKH
ULIOHWKDWZDVVHL]HGIURPWKHUHVLGHQFHZDVQRWLQDSRVLWLRQ
WRHQGDQJHUWKHRIILFHUV7RVXSSRUWKLVDUJXPHQWKHFLWHV
8QLWHG 6WDWHV Y 'LFH )G WK &LU DQG
DUJXHV WKDW LW LV IDFWXDOO\ VLPLODU WR WKH LQVWDQW PDWWHU ,Q
'LFHWKHFRXUWKHOGWKDWWKHNQRFNDQGDQQRXQFHUHTXLUHPHQW
ZDVXQQHFHVVDU\RQO\ZKHUHWKHUHVLGHQFHRFFXSDQWVNQRZ
WKHRIILFHU¶VDXWKRULW\DQGSXUSRVHRURIILFHUVKDGMXVWLILHG
EHOLHIVWKDWWKHLUVDIHW\HYLGHQFHRUWKHOLNHOLKRRGRIHVFDSH
LVLQTXHVWLRQ,G DW /DQGHUR¶VUHOLDQFHRQ'LFH LV
PLVSODFHG KRZHYHU EHFDXVH WKHUH DUH VLJQLILFDQW IDFWXDO
GLIIHUHQFHVEHWZHHQ'LFHDQGWKHFDVHQRZEHIRUHXV:KLOH
WKHRIILFHUVKHUHZHUHUHDGLO\LGHQWLILDEOHDVODZHQIRUFHPHQW
RIILFLDOVWKHRIILFHUVLQ'LFHZHUHQRWLQXQLIRUP/LNHZLVH
LQWKHSUHVHQWFDVHWKHRFFXSDQWVRIWKHPRELOHKRPHDQGWKH
RIILFHUVFRXOGVHHHDFKRWKHUEXWWKHRFFXSDQWVDQGRIILFHUVLQ
'LFH FRXOG QRW VHH RQH DQRWKHU 7KXV WKH 'LFH UXOH LV
LQDSSOLFDEOHWRWKLVFDVH
+HUHWKHIRUFLEOHHQWU\GLGQRWYLRODWH/DQGHUR¶V)RXUWK
$PHQGPHQWULJKWV8QWLOWKHSHUVRQVLQVLGHWKHPRELOHKRPH
1R 8QLWHG6WDWHVY3HOD\R/DQGHUR
LQ YLRODWLRQ RI 86& †† J $ DQG D
SRVVHVVLRQRIWZRIRUJHGDOLHQUHJLVWUDWLRQUHFHLSWFDUGVLQ
YLRODWLRQ RI 86& † D DQG SRVVHVVLRQ RI D
FRXQWHUIHLW 6RFLDO 6HFXULW\ FDUG LQ YLRODWLRQ RI 86&
† D
/DQGHUR ILOHG D PRWLRQ WR VXSSUHVV WKH HYLGHQFH VHL]HG
ZKLFK ZDV XOWLPDWHO\ GHQLHG +H ODWHU SOHDGHG JXLOW\ DV
FKDUJHGLQWKHLQGLFWPHQWEXWDVSDUWRIKLVSOHDDJUHHPHQW
UHVHUYHG WKH ULJKW WR DSSHDO WKH GHQLDO RI KLV PRWLRQ WR
VXSSUHVV XQGHU )(' 5 &5,0 3 D /DQGHUR ZDV
VHQWHQFHG WR WKUHH FRQFXUUHQW HLJKWHHQPRQWK WHUPV WR EH
IROORZHGE\WKUHH\HDUVRIFRQGLWLRQDOVXSHUYLVHGUHOHDVH2Q
DSSHDOKHDUJXHVWKDWWKHGLVWULFWFRXUW¶VGHQLDORIKLVPRWLRQ
WRVXSSUHVVZDVHUURQHRXV)RUWKHIROORZLQJUHDVRQVZH
DIILUP
,,',6&866,21
,Q UHYLHZLQJ D PRWLRQ WR VXSSUHVV ZH UHYLHZ IDFWXDO
ILQGLQJVIRUFOHDUHUURUZHUHYLHZOHJDOGHWHUPLQDWLRQVGH
QRYR8QLWHG6WDWHVY:LOOLDPV)G WK
&LU 7KHGLVWULFWFRXUW¶VIDFWXDOILQGLQJVDUHRYHUWXUQHG
RQO\ LI WKH UHYLHZLQJ FRXUW KDV WKH ³GHILQLWH DQG ILUP
FRQYLFWLRQWKDWDPLVWDNHKDVEHHQFRPPLWWHG´8QLWHG6WDWHV
Y:RUOH\)G WK&LU
7KH VROH LVVXH RQ DSSHDO LV ZKHWKHU WKH VHDUFK ZDUUDQW
FRPSOLHG ZLWK WKH )RXUWK $PHQGPHQW DQG DGHTXDWHO\
GHVFULEHGWKHPRELOHKRPHWREHVHDUFKHG,QWKHLQVWDQWFDVH
WKHGHIHQGDQWFRQWHQGVWKDWWKHGLVWULFWFRXUWHUUHGLQGHQ\LQJ
KLVPRWLRQWRVXSSUHVVVHL]HGHYLGHQFH/DQGHURSXWVIRUWK
WZRUHDVRQVZK\WKHHYLGHQFHZDVREWDLQHGDVDUHVXOWRIDQ
XQODZIXO VHDUFK DQG VHL]XUH LQ YLRODWLRQ RI KLV )RXUWK
$PHQGPHQWULJKWV+HILUVWDUJXHVWKDWWKHVHDUFKZDUUDQW
ZDVFRQVWLWXWLRQDOO\GHIHFWLYHEHFDXVHLWIDLOHGWRGHVFULEHWKH
SUHPLVHVWREHVHDUFKHGZLWKVXIILFLHQWSDUWLFXODULW\/DQGHUR
DOVRFRQWHQGVWKDWWKHRIILFHU¶VHQWU\LQWRKLVUHVLGHQFHGXULQJ
VHUYLFH RI WKH VHDUFK ZDUUDQW ZDV D FOHDU YLRODWLRQ RI WKH
NQRFNDQGDQQRXQFHUXOH+LVDUJXPHQWVODFNPHULWRQERWK
LVVXHV

-- 5 of 8 --

8QLWHG6WDWHVY3HOD\R/DQGHUR 1R
$6XIILFLHQWGHVFULSWLRQRISUHPLVHVWREHVHDUFKHG
/DQGHURILUVWFRQWHQGVWKDWWKHZDUUDQWZDVGHILFLHQWXQGHU
WKH)RXUWK$PHQGPHQWEHFDXVHQHLWKHUWKHZDUUDQWQRUWKH
VXSSRUWLQJ DIILGDYLW DFFXUDWHO\ GHVFULEHG WKH SODFH WR EH
VHDUFKHG7KHZDUUDQWVSHFLILHGWKDWWKHSODFHWREHVHDUFKHG
ZDV0DH&ROOLQV5RDG/DQGHURDUJXHVWKDWWKHWUDLOHU
ZLWKWKHQXPEHUXQGHUWKHZLQGRZDLUFRQGLWLRQHUZDV
³LQDOOOLNHOLKRRG0DH&ROOLQV5RDG/RW´,QWKH
DOWHUQDWLYHKHDUJXHVWKDWWKHWUDLOHUWKDWZDVVHDUFKHGZDV
QRWHYHQRQ0DH&ROOLQV5RDG(LWKHUZD\/DQGHURFRQWHQGV
WKDWWKHZDUUDQWIDLOHGWRDGHTXDWHO\GHVFULEHGWKHSUHPLVHVWR
EHVHDUFKHGZLWKVXIILFLHQWSDUWLFXODULW\
,QGHQ\LQJWKHPRWLRQWRVXSSUHVVWKHGLVWULFWFRXUWKHOG
WKDWWKHVHDUFKZDVSURSHUEHFDXVH
$OO WKH WUDLOHUV DUH ZLWKLQ FOHDU YLHZ RI 0DH &ROOLQV
5RDGLQGHHGWKHVXEMHFWWUDLOHULVQRPRUHWKDQILIW\WR
VHYHQW\ILYH\DUGVIURP0DH&ROOLQV5RDG7KXVLWZDV
DFFXUDWH WR VWDWH WKDW WKH VXEMHFW WUDLOHU ZDV RQ 0DH
&ROOLQV 5RDG VLQFH 0DH &ROOLQV 5RDG ZDV WKH RQO\
SXEOLFURDGE\ZKLFKRQHFRXOGWUDYHOWRWKHWUDLOHU$
UHDVRQDEOHSHUVRQZRXOGFRQFOXGHWKDWWKLVWUDLOHUSDUN
ZDV ³RQ´ 0DH &ROOLQV 5RDG«>7@KH WUDLOHU ZDV
GHVFULEHGDVDZKLWHPRELOHKRPHZLWKSDOHJUHHQWULP
ZLWK D ZRRGHQ GHFN RQ WKH IURQW 7KH VXEMHFW WUDLOHU
PDWFKHGWKLVGHVFULSWLRQSHUIHFWO\6HFRQGWKHZDUUDQW
QRWHGWKDWWKHQXPEHUV³´DSSHDUHGRQWKHULJKWHQG
RI WKH WUDLOHU 7KRVH QXPEHUV ZHUH SUHVHQW DQG WKH
GHVFULSWLRQZDVDFFXUDWH«$Q\RQHJLYHQDFRS\RIWKLV
GHVFULSWLRQZRXOGKDYHIRXQGDQGLGHQWLILHGWKHVXEMHFW
WUDLOHUZLWKHDVH«7KHGHVFULSWLRQLQWKLVVHDUFKZDUUDQW
WKURXJKO\ VDWLVILHV WK>H SDUWLFXODULW\@ UHTXLUHPHQW«
>7@KHUH ZHUH RWKHU FLUFXPVWDQFHV DSDUW IURP WKH
GHVFULSWLRQLQWKHVHDUFKZDUUDQWLWVHOIWKDWFRPSOHWHO\
HOLPLQDWHGWKHSRVVLELOLW\WKDWWKHZURQJWUDLOHUZRXOGEH
VHDUFKHG6SHFLILFDOO\WKHVHRIILFHUVKDGREVHUYHGWKLV
WUDLOHU IRU GD\V DQG KDG VXUYHLOOHG DQG HOHFWURQLFDOO\
PRQLWRUHGDGUXJWUDQVDFWLRQWKDWRFFXUUHGZLWKLQ
1R 8QLWHG6WDWHVY3HOD\R/DQGHUR
DIWHU D NQRFN DQG DQQRXQFH EHIRUH SK\VLFDOO\ HQWHULQJ D
UHVLGHQFH8QLWHG6WDWHVY)LQFK)G WK&LU
:KDWLVUHDVRQDEOHGHSHQGVDQGPD\YDU\EDVHGXSRQ
WKH SDUWLFXODU FLUFXPVWDQFHV RI WKH VLWXDWLRQ LQ TXHVWLRQ
:LOVRQ86DW
7KLV FRXUW KDV ORQJ KHOG WKDW WKH NQRFN DQG DQQRXQFH
UHTXLUHPHQW LV VXIILFLHQWO\ FRPSOLHG ZLWK ZKHQ RIILFHUV
LPPHGLDWHO\ HQWHU WKH SUHPLVHV DIWHU NQRFNLQJ DQG
DQQRXQFLQJ8QLWHG6WDWHVY1DERUV)G
WK&LU )RUFLEOHHQWULHVZLWKRXWDQQRXQFHPHQWRI
SXUSRVH DQG D UHIXVDO RI DGPLWWDQFH KDYH EHHQ DSSURYHG
ZKHUH³ WKHUHZRXOGEHDGDQJHUWRWKHRIILFHU WKHUH
ZRXOGEHGDQJHURIIOLJKWRUGHVWUXFWLRQRIHYLGHQFH D
YLFWLPRUVRPHRWKHUSHUVRQLVLQSHULORU LWZRXOGEHD
XVHOHVVJHVWXUHVXFKDVZKHQWKHSHUVRQZLWKLQDOUHDG\NQHZ
WKHRIILFHU¶VDXWKRULW\DQGSXUSRVH ´8QLWHG6WDWHVY%DWHV
)G WK &LU FLWDWLRQV RPLWWHG ,Q
1DERUV WKH DJHQWV NQRFNHG RQ WKH GHIHQGDQW¶V DSDUWPHQW
GRRUDQQRXQFHGWKHLUSUHVHQFHDQGDXWKRULW\DQGHQWHUHGWKH
DSDUWPHQW)GDW7KHGHIHQGDQWILUHGWZRULIOH
VKRWVDWDQRIILFHUKLWWLQJKLPRQFHLQWKHULJKWFKHHNDVWKH
GHIHQGDQWIOHGWKHVHFRQGVWRU\DSDUWPHQWE\MXPSLQJRXWRI
DEDWKURRPZLQGRZ$VHDUFKRIWKHDSDUWPHQWSURGXFHGWKH
ULIOHWKHGHIHQGDQWILUHGDWWKHLQMXUHGRIILFHUDSLVWRODQG
DPPXQLWLRQDVFDOHORDGHGZLWKFUDFNFRFDLQHDQGFRFDLQH
GLVWULEXWLRQSDUDSKHUQDOLD7KHFRXUWIRXQGWKDWJLYHQWKH
IDFWVEHIRUHWKHRIILFHUVLQFOXGLQJWKHWKUHDWWRWKHLUVDIHW\
WKH VDIHW\ RI RWKHUV DQG WKH QHHG WR SUHVHUYH QDUFRWLFV
HYLGHQFHWKHRIILFHUVVXIILFLHQWO\FRPSOLHGZLWKWKHNQRFN
DQG DQQRXQFH UHTXLUHPHQW ,G DW 7KH FRXUW
GHWHUPLQHG WKDW D IRUFHG HQWU\ PRPHQWV DIWHU WKH
DQQRXQFHPHQW LV SHUPLVVLEOH EHFDXVH RI H[LJHQW
FLUFXPVWDQFHV ZKHUH WKH GHIHQGDQW ZDV VXVSHFWHG RI
WUDIILFNLQJLQGUXJVZKLFKFRXOGKDYHHDVLO\EHHQGLVSRVHGRI
ZDVNQRZQWRSRVVHVVDILUHDUP ZRUHDEXOOHWSURRI
YHVWDQG ZDVDSUHYLRXVO\FRQYLFWHGIHORQ,G
/DQGHURDVVHUWVWKDWWKHSROLFHGLGQRWZDLWDUHDVRQDEOH
DPRXQWRIWLPHEHIRUHHQWHULQJWKHWUDLOHUDIWHUNQRFNLQJDQG

-- 6 of 8 --

8QLWHG6WDWHVY3HOD\R/DQGHUR 1R
DFFXUDWH VXFK FRQMHFWXUH LV LPPDWHULDO WR WKH RIILFHUV
LGHQWLI\LQJWKHPRELOHKRPHZLWKUHDVRQDEOHHIIRUW
,QWKHSUHVHQWFDVHDVLQ'XUNDGGLWLRQDOFLUFXPVWDQFHV
LQGLFDWHWKDWWKHUHZRXOGQRWKDYHEHHQDPLVWDNHQVHDUFKRI
RWKHUSUHPLVHV$JHQW+DQQRQZDVWKHWHDPOHDGHUDWWKH
VHDUFK+HKDGSUHSDUHGWKHDIILGDYLWLQFRUSRUDWHGLQWRWKH
ZDUUDQWZKLFKVSHFLILHGWKDW-HVVLHZDVWKHRFFXSDQWRIWKH
WUDLOHU +H KDG DOVR SUHYLRXVO\ FRQGXFWHG XQGHUFRYHU
WUDQVDFWLRQVZLWK-HVVLHDQGKDGPRQLWRUHGWKHLQIRUPDQW¶V
UHFHQWPDULMXDQDSXUFKDVHIURP-HVVLHDWWKHORFDWLRQMXVWGD\V
EHIRUH WKH DSSOLFDWLRQ IRU WKH ZDUUDQW ,W DSSHDUV WKDW DOO
UHDVRQDEOHVWHSVZHUHWDNHQWRHQVXUHWKDWWKHUHFRXOGQRWEH
DPLVWDNHQVHDUFKRIRWKHUSUHPLVHVKHUH
7KH0DJLVWUDWHHYDOXDWHGWKHFUHGLELOLW\RIWKHZLWQHVVHV
DQGWKHIDFWVDWWKHVXSSUHVVLRQKHDULQJ7KHFRXUWIRXQGWKDW
WKHSRVWDODGGUHVVLILQFRUUHFWDQGWKHVSHFLILFDWLRQWKDWWKH
WUDLOHU ZDV WKH IRXUWK PRELOH KRPH RQ WKH OHIW ZHUH
LQFRQVHTXHQWLDOSDUWVRIWKHGHVFULSWLRQ5HO\LQJRQ'XUN
WKH 0DJLVWUDWH FRUUHFWO\ KHOG WKDW WKH GHVFULSWLRQ ZDV
VXIILFLHQWO\SDUWLFXODUDQGDFFXUDWHDQGWKDWWKHUHZDVYLUWXDOO\
QR FKDQFH WKDW WKH ZURQJ SUHPLVHV ZRXOG EH VHDUFKHG
SXUVXDQW WR WKLV VHDUFK ZDUUDQW $FFRUGLQJO\ WKH GLVWULFW
FRXUWSURSHUO\DGRSWHGWKHPDJLVWUDWH¶VFRQFOXVLRQEHFDXVH
WKHZDUUDQWLQFOXGHGDVXIILFLHQWGHVFULSWLRQRIWKHSUHPLVHV
WREHVHDUFKHG
%.QRFNDQG$QQRXQFH
$EVHQW H[LJHQW FLUFXPVWDQFHV WKH )RXUWK $PHQGPHQW
UHTXLUHV WKH SROLFH WR NQRFN DQG DQQRXQFH WKHLU SUHVHQFH
EHIRUH IRUFLEO\ HQWHULQJ D ORFDWLRQ WR H[HFXWH D VHDUFK
ZDUUDQW:LOVRQY$UNDQVDV86 $Q
RIILFHUVHUYLQJDVHDUFKZDUUDQWDWDKRXVHPXVWDQQRXQFHWKH
DXWKRULW\XQGHUZKLFKKHLVDFWLQJDQGWKHSXUSRVHRIKLVFDOO
86&†:KLOHWKHVWDWXWHGRHVQRWDSSO\WRVWDWH
DJHQWVVHUYLQJVWDWHVHDUFKZDUUDQWVWKHFRPPRQODZNQRFN
DQG DQQRXQFH UXOH LV JXLGHG E\ WKH )RXUWK $PHQGPHQW
UHDVRQDEOHQHVV LQTXLU\ :LOVRQ 86 DW
$FFRUGLQJO\RIILFHUVPXVWZDLWD³UHDVRQDEOHSHULRGRIWLPH´
1R 8QLWHG6WDWHVY3HOD\R/DQGHUR
:HDJUHHZLWKWKHGLVWULFWFRXUWWKDWWKH)RXUWK$PHQGPHQW
ZDVQRWYLRODWHGDQGWKHPRWLRQWRVXSSUHVVVKRXOGEHGHQLHG
7KH)RXUWK$PHQGPHQWSURWHFWV³>W@KHULJKWRIWKHSHRSOH
WR EH VHFXUH LQ WKHLU SHUVRQV KRXVHV SDSHUV DQG HIIHFWV
DJDLQVWXQUHDVRQDEOHVHDUFKHVDQGVHL]XUHV«>1@RZDUUDQWV
VKDOOLVVXHEXWXSRQSUREDEOHFDXVHVXSSRUWHGE\RDWKRU
DIILUPDWLRQ DQG SDUWLFXODUO\ GHVFULELQJ WKH SODFH WR EH
VHDUFKHGDQGWKHSHUVRQVRUWKLQJVWREHVHL]HG´86&2167
DPHQG,9Stanford v. Texas, 379 U.S. 476, 485-86 (1965).
7RGHWHUPLQHZKHWKHUVXFKDGHVFULSWLRQLVFRQVWLWXWLRQDOO\
YDOLGDMXGJHPXVWDVN³ZKHWKHUWKHSODFHWREHVHDUFKHGLV
GHVFULEHGZLWKVXIILFLHQWSDUWLFXODULW\WRHQDEOHWKHH[HFXWLQJ
RIILFHUWRORFDWHDQGLGHQWLI\WKHSUHPLVHVZLWK UHDVRQDEOH
HIIRUWDQGZKHWKHUWKHUHLVDQ\UHDVRQDEOHSUREDELOLW\WKDW
DQRWKHU SUHPLVH PLJKW EH PLVWDNHQO\ VHDUFKHG´ 8QLWHG
6WDWHVY'XUN)G WK&LU $QHUURU
LQGHVFULSWLRQGRHVQRWKRZHYHUDXWRPDWLFDOO\LQYDOLGDWHD
VHDUFKZDUUDQW6HH8QLWHG6WDWHVY3URXW)G
WK&LU VHHDOVR8QLWHG6WDWHVY%HGIRUG)G
G &LU VWDWLQJ WKDW WKH VWDQGDUG IRU
GHWHUPLQLQJVXIILFLHQWSDUWLFXODULW\RIDGHVFULSWLRQLQDVHDUFK
ZDUUDQW ³LV RQH RI SUDFWLFDO DFFXUDF\ UDWKHU WKDQ WHFKQLFDO
QLFHW\´ FLWDWLRQRPLWWHG 7KHWHVWIRUGHWHUPLQLQJZKHWKHU
DVHDUFKZDUUDQWGHVFULEHVWKHSUHPLVHVWREHVHDUFKHGZLWK
VXIILFLHQW SDUWLFXODULW\ ³LV QRW ZKHWKHU WKH GHVFULSWLRQ LV
WHFKQLFDOO\DFFXUDWHLQHYHU\GHWDLO´3URXW)GDW
EXWUDWKHUZKHWKHUWKHGHVFULSWLRQLVVXIILFLHQW³WRHQDEOH
WKHH[HFXWLQJRIILFHUWRORFDWHDQGLGHQWLI\WKHSUHPLVHVZLWK
UHDVRQDEOH HIIRUW DQG ZKHWKHU WKHUH LV DQ\ UHDVRQDEOH
SUREDELOLW\ WKDW DQRWKHU SUHPLVHV PLJKW EH PLVWDNHQO\
VHDUFKHG´8QLWHG6WDWHVY*DKDJDQ)G
WK&LU FHUWGHQLHG86 TXRWLQJ8QLWHG
6WDWHVY*LWFKR)G WK&LU VHHDOVR
8QLWHG 6WDWHV Y 'RUURXJK )G WK &LU
QRWLQJWKDWWKH³UHTXLVLWHVSHFLILFLW\RIWKHGHVFULSWLRQ
GHSHQGVKHDYLO\RQWKHIDFWVRIHDFKFDVH´
7KHSUHVHQWFDVHLVIDFWXDOO\VLPLODUWRWKHIDFWVEHIRUHWKLV
FRXUWLQ'XUN,Q'XUNWKHGHIHQGDQWZDVDWHQDQWERDUGLQJ

-- 7 of 8 --

8QLWHG6WDWHVY3HOD\R/DQGHUR 1R
LQ DQRWKHU SHUVRQ¶V KRPH ,Q WKDW FDVH D VHDUFK ZDUUDQW
VSHFLILHGWKDWWKHRIILFHUVZHUHWRVHDUFK³DVLQJOHIDPLO\UHG
EULFN UDQFK KRPH ORFDWHG DW )XOWRQ´ WKDW ZDV
³DSSUR[LPDWHO\KRXVHVWRWKHHDVWRI*UDQGYLHZ´'XUN
)GDW+RZHYHUXSRQH[HFXWLRQRIWKHZDUUDQWWKH
RIILFHUVVHDUFKHGWKHKRPHDW)XOWRQZKLFKZDVWKUHH
KRXVHVWRWKHZHVWRI*UDQGYLHZ'XULQJWKHLUVHDUFKRIWKH
GHIHQGDQW¶VEHGURRPWKHRIILFHUVVHL]HGSLSHERPEVERPE
PDNLQJPDWHULDOVFKHPLFDOVDVLOHQFHUDQGDSHQJXQ
%DVHGXSRQWKLVHYLGHQFHWKHGHIHQGDQWZDVLQGLFWHGIRU
SRVVHVVLRQRIXQUHJLVWHUHGILUHDUPV7KHGHIHQGDQWPRYHGWR
VXSSUHVVWKHHYLGHQFHVHL]HGLQWKHVHDUFKRQWKHJURXQGVWKDW
WKHZDUUDQWGLGQRWGHVFULEHZLWKSDUWLFXODULW\WKHSODFHWREH
VHDUFKHG 6SHFLILFDOO\ WKH GHIHQGDQW DUJXHG WKH WKDW WKH
KRXVHQXPEHUVKDGEHHQWUDQVSRVHGIURPWRDQG
WKDWWKHGHVFULSWLRQRIWKHKRXVHZDV³WKUHHKRXVHVWRWKHHDVW
RI*UDQGYLHZ´ZKHQLQIDFWWKHKRXVHZDV³WKUHHKRXVHVWR
WKHZHVWRI*UDQGYLHZ´,G7KHGHIHQGDQWDOVRDUJXHGWKDW
WKHJRRGIDLWKH[FHSWLRQRI8QLWHG6WDWHVY/HRQ86
GLG QRW DSSO\ EHFDXVH QR UHDVRQDEOH RIILFHU
ZRXOGEHOLHYHWKDWWKHGHVFULSWLRQLQWKHDIILGDYLWGHVFULEHG
)XOWRQ'XUN)GDW
7KH 'XUN FRXUW KHOG WKDW WKH ZDUUDQW ZDV YDOLG
6SHFLILFDOO\ WKH FRXUW IRXQG WKDW WKH ZDUUDQW SURYLGHG D
UHDVRQIRUDQGDOLPLWDWLRQRIWKHVHDUFK'XUN)GDW
7KHFRXUWGHWHUPLQHGWKDWWKHZDUUDQWGLGQRWUXQDIRXO
RIWKH)RXUWK$PHQGPHQWEHFDXVHLWVXIILFLHQWO\GHVFULEHGWKH
KRPHRZQHU¶VUHVLGHQFHGHVSLWHWKHWZRLQDFFXUDFLHV,G7KH
FRXUWIXUWKHUUHDVRQHG
7KHZDUUDQW FRUUHFWO\LGHQWLILHVWKHKRXVHDVDVLQJOH
IDPLO\UHGEULFNUDQFKKRPHRQWKHQRUWKVLGHRI)XOWRQ
VWUHHW $OWKRXJK EULFN UDQFK VW\OH KRPHV PD\ EH
FRPPRQ LQ 6KDZ V QHLJKERUKRRG WKH ZDUUDQW DOVR
GHVFULEHVDPRUHXQXVXDOIHDWXUHDWHQE\ILIWHHQIRRW
PHWDOVWRUDJHVKHGWKHHQWUDQFHRIZKLFKLVVHFXUHGE\
DSODVWLFWLH
1R 8QLWHG6WDWHVY3HOD\R/DQGHUR
,G)XUWKHUPRUHWKHFRXUWIRXQGWKDWWKHUHZHUHDGGLWLRQDO
FLUFXPVWDQFHV DYDLODEOH WR FODULI\ DQ\ LQDFFXUDFLHV LQ WKH
ZDUUDQW WKDW FRXOG QRW OHDG WR D PLVWDNHQ VHDUFK RI RWKHU
SUHPLVHV,G VHDUFKZDUUDQWZLWKZURQJDGGUHVVLVYDOLG
ZKHUH ZDUUDQW ODFNLQJ SK\VLFDO GHVFULSWLRQ RI SDUWLFXODU
DSDUWPHQWVSHFLILHVWKHQDPHRIWKHRFFXSDQWRIWKHDSDUWPHQW
DJDLQVWZKLFKLWLVGLUHFWHGthe same officer applies for and
executes the warrant, and DJHQWV H[HFXWLQJ WKH ZDUUDQW
SHUVRQDOO\ NQHZ ZKLFK SUHPLVHV ZHUH LQWHQGHG WR EH
VHDUFKHG 7KH 'XUN FRXUW DFNQRZOHGJHG WKDW FRXUWV
URXWLQHO\XSKROGZDUUDQWVOLNHWKHRQHDWLVVXHZKHUHRQHSDUW
RIWKHGHVFULSWLRQPLJKWEHLQDFFXUDWHEXWWKHGHVFULSWLRQKDV
RWKHUDFFXUDWHLQIRUPDWLRQWRLGHQWLI\WKHSODFHWREHVHDUFKHG
ZLWKSDUWLFXODULW\)GDW$GGLWLRQDOO\WKHFRXUW
IRXQGWKDWWKHDIILGDYLWLQFRUSRUDWHGLQWRWKHVHDUFKZDUUDQW
VSHFLILHGWKDWWKHGHIHQGDQWZDVDWHQDQWRIWKHKRPHRZQHU
7KHFRXUWDOVRQRWHGWKDWWKHH[HFXWLQJRIILFHUKDGMXVWFRPH
IURPWKHKRXVHDQGKHZDVDOVRWKHDIILDQWRQWKHZDUUDQW
%DVHGXSRQWKHVHILQGLQJVWKH&RXUWXSKHOGWKHZDUUDQW,G
8QGHU 'XUN WKH SDUWLFXODULW\ UHTXLUHPHQW HOLPLQDWHV WKH
DELOLW\ WR SURYLGH D JHQHUDO GHVFULSWLRQ RI WKH SUHPLVHV
0RUHRYHUWKHUHTXLUHPHQWQHFHVVLWDWHVDUHDVRQIRUWKHVHDUFK
DQGSODFHVOLPLWDWLRQVRQLW,G
,QWKHSUHVHQWFDVH/DQGHURGRHVQRWDUJXHWKDWWKHUHLVDQ
LQDFFXUDF\LQWKHGHVFULSWLRQRIWKHPRELOHKRPH5DWKHUKH
VXJJHVWVLWVDGGUHVV³LVLQDOOOLNHOLKRRG0DH&ROOLQV
5RDG /RW ´ +RZHYHU WKLV GHVFULSWLYH ODQJXDJH LV QRW
LQFOXGHG LQ WKH ZDUUDQW QRU LV LW QHFHVVDU\ +HUH WKH
SDUWLFXODULW\UHTXLUHPHQWLVPHWDVWKHGHVFULSWLRQLQFOXGHV
VSHFLILFGLUHFWLRQVIURPDQLGHQWLILDEOHSRLQWWRWKHPRELOH
KRPHSDUNDW0DH&ROOLQV5RDGLQ+DPEOHQ&RXQW\
7HQQHVVHH2QFHLQVLGHWKHSDUNWKHZDUUDQWGHVFULEHVWKH
SDUWLFXODUWUDLOHUE\FRORUE\DFHUWDLQH[WHULRUWULPDQGE\D
ZRRGHQGHFN,QDGGLWLRQWKHZDUUDQWLQFOXGHDQXQXVXDO
IHDWXUH RI WKH WUDLOHU WKH QXPEHU GLVSOD\HG XQGHU D
ZLQGRZ DLU FRQGLWLRQHU RQ WKH ULJKW HQG RI WKH WUDLOHU
0RUHRYHU$JHQW+DQQRQKDGDWWDFKHGDSKRWRJUDSKRIWKH
WUDLOHUWRWKHDIILGDYLWLQFRUSRUDWHGLQWRWKHVHDUFKZDUUDQW
7KXVHYHQLI/DQGHUR¶VVSHFXODWLRQRQWKHDFWXDODGGUHVVLV

-- 8 of 8 --