01a0148p.06

6WURXVVY0LFKLJDQ'HSWRI
&RUUHFWLRQVHWDO
1R
$OWKRXJK ZH GR QRW UHDFK WKLV LVVXH 6WURXVV¶ DUJXPHQW WKDW KHU
RSSRVLWLRQ WR :DUGHOO %URZQ¶V KDUDVVPHQW LV D PDWWHU RI SXEOLF FRQFHUQ
KDV VRPH PHULW 7KH 6L[WK &LUFXLW LQ 3HUU\ Y 0F*LQQLV KHOG WKDW UDFLDO
GLVFULPLQDWLRQ LV LQKHUHQWO\ D PDWWHU RI SXEOLF FRQFHUQ 6HH )G
WK &LU %\ DQDORJ\ VH[XDO KDUDVVPHQW ZKLFK LV D VSHFLILF
IRUP RI JHQGHU GLVFULPLQDWLRQ OLNHZLVH LV PDWWHU RI SXEOLF FRQFHUQ
%URZQ¶VVH[XDOKDUDVVPHQWLVDPDWWHURISXEOLFFRQFHUQ
DQGWKDWKHULQWHUHVWLQFRPPHQWLQJXSRQPDWWHUVRISXEOLF
FRQFHUQ RXWZHLJK WKH LQWHUHVW RI WKH 6WDWH 6WURXVV KDV
QRQHWKHOHVV IDLOHG WR PDNH RXW D SULPD IDFLH FDVH RI
UHWDOLDWLRQLQOLJKWRIWKHODFNRIHYLGHQFHWKDWGHIHQGDQWV¶
GHFLVLRQWRWUDQVIHUKHULQZDVPRWLYDWHGE\DGHVLUHWR
UHWDOLDWHDJDLQVWKHUIRURSSRVLQJ:DUGHOO%URZQ¶VDOOHJHG
KDUDVVPHQW LQ 7KXV WKH GLVWULFW FRXUW SURSHUO\
GLVPLVVHG6WURXVV¶)LUVW$PHQGPHQWUHWDOLDWLRQFODLP
,9&21&/86,21
)RUWKHIRUHJRLQJUHDVRQVZH$)),50WKHGLVWULFWFRXUW¶V
GHFLVLRQ
7KH +RQRUDEOH 'RQDOG & 1XJHQW 8QLWHG 6WDWHV 'LVWULFW -XGJH IRU
WKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ

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
686$1 6752866
3ODLQWLII$SSHOODQW
Y
0,&+,*$1 '(3$570(17 2)
&255(&7,216DVWDWHDJHQF\
DQGERG\SROLWLF0$5,(
)/(7&+(5*(5$/' '(9266
LQWKHLULQGLYLGXDOFDSDFLWLHV
'HIHQGDQWV$SSHOOHHV
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW
1R²*HUDOG(5RVHQ'LVWULFW-XGJH
6XEPLWWHG-DQXDU\
'HFLGHGDQG)LOHG0D\
%HIRUH-21(6DQG&2/(&LUFXLW-XGJHV18*(17
'LVWULFW-XGJH

-- 1 of 8 --

6WURXVVY0LFKLJDQ'HSWRI
&RUUHFWLRQVHWDO
1R
BBBBBBBBBBBBBBBBB
&2816(/
21 %5,() &KULVWLQH $ *UHHQ *5((1 *5((1
$'$06 3$/0(5$QQ$UERU0LFKLJDQIRU$SSHOODQW
.DWKHULQH & *DOYLQ 2)),&( 2) 7+( $77251(<
*(1(5$//DQVLQJ0LFKLJDQIRU$SSHOOHHV
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
1$7+$1,(/ 5 -21(6 &LUFXLW -XGJH 3ODLQWLII
$SSHOODQW6XVDQ6WURXVV ³6WURXVV´ DSSHDOVIURPWKHGLVWULFW
FRXUW¶VJUDQWRIGHIHQGDQWV¶PRWLRQIRUVXPPDU\MXGJPHQW
7KHGLVWULFWFRXUWGLVPLVVHG6WURXVV¶7LWOH9,,FODLPDOOHJLQJ
FRQVWUXFWLYH GLVFKDUJH LQ UHWDOLDWLRQ IRU RSSRVLQJ VH[XDO
KDUDVVPHQW 7KH GLVWULFW FRXUW DOVR GLVPLVVHG 6WURXVV¶
6HFWLRQ FODLPV EURXJKW DJDLQVW WKH WZR LQGLYLGXDO
GHIHQGDQWVDOOHJLQJYLRODWLRQVRIKHUGXHSURFHVVDQG)LUVW
$PHQGPHQW ULJKWV )RU WKH UHDVRQV SURYLGHG EHORZ ZH
$)),50WKHGLVWULFWFRXUW¶VGHFLVLRQ
,%$&.*5281'
6XVDQ 6WURXVV LV D IRUPHU QXUVH IRU WKH GHIHQGDQW WKH
0LFKLJDQ'HSDUWPHQWRI&RUUHFWLRQV ³0'2&´ 6WURXVV
EHJDQZRUNLQJIRUWKH0'2&LQDVDVWDIIQXUVHRQWKH
(DVW8QLWRIWKH'XDQH:DWHUV+RVSLWDORQWKHSUHPLVHVRI
WKH6WDWH3ULVRQRI6RXWKHUQ0LFKLJDQ6KHZDVVXEVHTXHQWO\
SURPRWHG WR DQ 51 1XUVH0DQDJHU SRVLWLRQ :KLOH
ZRUNLQJRQ(DVW6WURXVVZRUNHGWKHILUVWVKLIW DP
SP
,QODWHRQHRI6WURXVV¶VXERUGLQDWHVFRPSODLQHGWR
KHU RI VH[XDO KDUDVVPHQW E\ :DUGHOO %URZQ ZKR ZDV
6WURXVV¶ LPPHGLDWH VXSHUYLVRU 6WURXVV FODLPV WKDW DIWHU
FRPSODLQLQJRI%URZQ¶VVH[XDOKDUDVVPHQW%URZQEHJDQWR
1R 6WURXVVY0LFKLJDQ'HSWRI
&RUUHFWLRQVHWDO

WLPHRQDSSHDO,QWKHFDVHDWEDUSODLQWLIIUDLVHGWKH)LUVW
$PHQGPHQW UHWDOLDWLRQ FODLP LQ KHU PRWLRQ RSSRVLQJ
VXPPDU\ MXGJPHQW 6KH GLG UDLVH WKH FODLP EHORZ
DFFRUGLQJO\ WKH )LUVW $PHQGPHQW FODLP LV SUHVHUYHG IRU
DSSHOODWHUHYLHZ6HH(YDQVY%H[OH\)G
Q WK&LU ³ ,QIHGHUDOSUDFWLFHDQ\TXHVWLRQZKLFK
KDV EHHQ SUHVHQWHG WR WKH WULDO FRXUW IRU D UXOLQJ DQG QRW
WKHUHDIWHU ZDLYHG RU ZLWKGUDZQ LV SUHVHUYHG IRU
UHYLHZ´ TXRWLQJ8QLWHG6WDWHVY+DUXH+D\DVKL)G
WK&LU
,QRUGHUWRVXFFHHGRQD)LUVW$PHQGPHQWUHWDOLDWLRQFODLP
DSODLQWLIIPXVWGHPRQVWUDWH WKDWVKHZDVHQJDJHGLQD
FRQVWLWXWLRQDOO\ SURWHFWHG DFWLYLW\ WKDW WKH GHIHQGDQW V
DGYHUVH DFWLRQ FDXVHG WKH SODLQWLII WR VXIIHU DQ LQMXU\ WKDW
ZRXOG OLNHO\ FKLOO D SHUVRQ RI RUGLQDU\ ILUPQHVV IURP
FRQWLQXLQJWRHQJDJHLQWKDWDFWLYLW\DQG WKDWWKHDGYHUVH
DFWLRQ ZDV PRWLYDWHG DW OHDVW LQ SDUW DV D UHVSRQVH WR WKH
H[HUFLVHRIWKHSODLQWLII VFRQVWLWXWLRQDOULJKWV6HH0DWWR[Y
&LW\RI)RUHVW3DUN)G WK&LU %ORFK
Y 5LEDU )G WK &LU :KHQ WKH
SODLQWLII LV D SXEOLF HPSOR\HH VKH PXVW PDNH DGGLWLRQDO
VKRZLQJV WR GHPRQVWUDWH WKDW KHU FRQGXFW ZDV SURWHFWHG
)LUVWWKHHPSOR\HHPXVWVKRZWKDWKHUVSHHFKWRXFKHGRQ
PDWWHUVRISXEOLFFRQFHUQ6HH&RQQLFNY0\HUV86
6HFRQG WKH HPSOR\HH V LQWHUHVW LQ
FRPPHQWLQJXSRQPDWWHUVRISXEOLFFRQFHUQPXVWEHIRXQG
WR RXWZHLJK WKH LQWHUHVW RI WKH 6WDWH DV DQ HPSOR\HU LQ
SURPRWLQJWKHHIILFLHQF\RIWKHSXEOLFVHUYLFHVLWSHUIRUPV
WKURXJKLWVHPSOR\HHV3LFNHULQJY%RDUGRI(GXF
86 VHH &RQQLFN 86 DW
%RJHUY:D\QH&RXQW\)G WK&LU
6WURXVV DVVHUWV WKDW GHIHQGDQWV YLRODWHG KHU )LUVW
$PHQGPHQW ULJKWV E\ UHWDOLDWLQJ DJDLQVW KHU IRU RSSRVLQJ
:DUGHOO %URZQ¶V VH[XDO KDUDVVPHQW $VVXPLQJ DUJXHQGR
WKDW6WURXVVLVDEOHWRHVWDEOLVKWKDWKHURSSRVLWLRQWR:DUGHOO

-- 2 of 8 --

6WURXVVY0LFKLJDQ'HSWRI
&RUUHFWLRQVHWDO
1R
ULJKWVRIZKLFKDUHDVRQDEOHSHUVRQZRXOGKDYHNQRZQ6HH
6XPPDU Y %HQQHWW )G WK &LU
$GDPVY0HWLYD)G WK&LU +HQU\Y
0HWURSROLWDQ 6HZHU 'LVWULFW )G WK &LU
7KH6XSUHPH&RXUWKDVH[SODLQHGWKDWWKHFRQWRXUVRI
WKHULJKWDOOHJHGO\YLRODWHG³PXVWEHVXIILFLHQWO\FOHDUWKDWD
UHDVRQDEOHRIILFLDOZRXOGXQGHUVWDQGWKDWZKDWKHLVGRLQJ
YLRODWHVWKDWULJKW´$QGHUVRQY&UHLJKWRQ86
+DUORZY)LW]JHUDOG86
2Q-XQHILYHGD\VDIWHU6WURXVV¶VXVSHQVLRQWKH
6XSUHPH&RXUWLQ*LOEHUWY+RPDUVWDWHGWKDW³ZHKDYHQRW
KDGRFFDVLRQWRGHFLGHZKHWKHUWKHSURWHFWLRQVRIWKH'XH
3URFHVV &ODXVH H[WHQG WR GLVFLSOLQH RI WHQXUHG SXEOLF
HPSOR\HHVVKRUWRIWHUPLQDWLRQ´86
7KXV DW WKH WLPH RI 6WURXVV¶ VXVSHQVLRQ EHLQJ VXVSHQGHG
ZLWKRXWSD\GLGQRWJLYHULVHWRWKHSURWHFWLRQVRIWKH'XH
3URFHVV&ODXVHDFFRUGLQJWR6XSUHPH&RXUWFDVHODZ1RU
ZDVWKDWULJKWHVWDEOLVKHGE\WKH6L[WK&LUFXLW,Q&DUWHUY
:HVWHUQ5HVHUYH3V\FKLDWULF+DELOLWDWLRQ&HQWHUWKH6L[WK
&LUFXLWKHOGWKDWDQHPSOR\HH¶VWZRGD\VXVSHQVLRQZLWKRXW
SD\ ZDV LQ WKH PDQQHU RI URXWLQH GLVFLSOLQH DQG ZDV QRW
GHVHUYLQJRIGXHSURFHVVFRQVLGHUDWLRQ)G
WK &LU ,Q OLJKW RI WKLV FDVHODZ WKH LQGLYLGXDO
GHIHQGDQWVGLGQRWYLRODWHDFOHDUO\HVWDEOLVKHGFRQVWLWXWLRQDO
ULJKWE\JLYLQJ6WURXVVDILYHGD\VXVSHQVLRQZLWKRXWSD\
6LQFH WKH GHIHQGDQWV DUH HQWLWOHG WR TXDOLILHG LPPXQLW\
6WURXVV¶ 6HFWLRQ GXH SURFHVV FODLP ZDV SURSHUO\
GLVPLVVHG
(6HFWLRQ)LUVW$PHQGPHQW&ODLP
7KHGLVWULFWFRXUWKHOGWKDWVLQFH6WURXVVGLGQRWUDLVHWKH
)LUVW $PHQGPHQW UHWDOLDWLRQ WKHRU\ LQ KHU FRPSODLQW VKH
FRXOGQRWUDLVHLWLQKHUPRWLRQRSSRVLQJVXPPDU\MXGJPHQW
FLWLQJ<DWYLQY0DGLVRQ0HWURSROLWDQ6FKRRO'LVW)G
WK &LU +RZHYHU LQ WKDW FDVH WKH
SODLQWLIIGLGQRWWHOOWKHGLVWULFWFRXUWVKHZDVPDNLQJD)LUVW
$PHQGPHQWUHWDOLDWLRQFODLPUDWKHUVKHUDLVHGLWIRUWKHILUVW
1R 6WURXVVY0LFKLJDQ'HSWRI
&RUUHFWLRQVHWDO

7KH FKDUJHV DURVH RXW RI WZR LQFLGHQWVRQH IRU YLRODWLQJ D GLUHFWLYH
WKDW VKH ZDV WR WDNH DQRWKHU QXUVH LQWR KHU URRP ZKHQHYHU DGPLQLVWHULQJ
WR RQH SDUWLFXODU SULVRQHU 7KH RWKHU ZDV IRU IDLOLQJ WR FDOO DQ H\H
VSHFLDOLVW UHJDUGLQJ D SUHVXUJLFDO PHGLFDWLRQ WKDW ZDV WR EH DGPLQLVWHUHG
WR DQRWKHU SULVRQHU
DFFXVHKHURIQRWGRLQJKHUZRUN6WURXVVILOHGWZR((2&
FKDUJHV LQ 0DUFK DQG $XJXVW UHODWLQJ WR KHU
FRPSODLQWV DERXW %URZQ¶V KDUDVVPHQW ,Q WKRVH ((2&
FKDUJHV6WURXVVDOOHJHGWKDWVKHZDVUHWDOLDWHGDJDLQVW³IRU
KDYLQJ EHHQ D ZLWQHVV LQ WKH LQYHVWLJDWLRQ RI WKH VH[
KDUDVVPHQWFKDUJH´ ((2&FKDUJH DQG³VXEMHFWHGWR
FRQWLQXRXV KDUDVVPHQW DQG GLIIHUHQW WHUPV FRQGLWLRQV DQG
SULYLOHJHVRIHPSOR\PHQWLQUHWDOLDWLRQIRUILOLQJDSUHYLRXV
FKDUJHRIGLVFULPLQDWLRQ´ ((2&FKDUJH -$
DW
(YHQWXDOO\LQ$SULO6WURXVVZDVWUDQVIHUUHGRXWRI
%URZQ¶V(DVWXQLWWRWKH:HVW &KURQLF&DUH 8QLWZKHUH
VKH UHPDLQHG XQWLO -XO\ 'XULQJ WKLV HQWLUH SHULRG
6WURXVVZRUNHGWKHILUVWVKLIWLHWKHVDPHVKLIWVKHZRUNHG
ZKLOHRQ(DVW2Q-XQH6WURXVVZDVFKDUJHGZLWK
YLRODWLRQRI'HSDUWPHQW:RUN5XOHV6WURXVVZDVQRWLILHG
RIWKHFKDUJHVDJDLQVWKHUE\'HIHQGDQWV*HUDOG'H9RVVDQG
0DULH)OHWFKHUDQGZDVVXVSHQGHGZLWKRXWSD\DVRI-XQH
SHQGLQJDQLQYHVWLJDWLRQLQWRWKHFKDUJHV6WURXVVZDV
IRXQGJXLOW\RIWKHUXOHVYLRODWLRQVDQGZDVJLYHQDILYHGD\
XQSDLGVXVSHQVLRQ
2Q-XO\ZKLOHWKHLQYHVWLJDWLRQLQWRWKHFKDUJHVRI
UXOHVYLRODWLRQVZDVVWLOOLQSURJUHVV6WURXVVZDVLQIRUPHG
WKDWVKHZDVEHLQJWUDQVIHUUHGWRWKH&HQWUDO&RPSOH[IDFLOLW\
HIIHFWLYH-XO\GXHWRRSHUDWLRQDOQHHGV$OWKRXJK
QRWHQWDLOLQJDQ\FKDQJHVLQVDODU\RUVWDWXVWKLVWUDQVIHUZDV
WR WKH VHFRQG VKLIW SP SP 6WURXVV
FRPSODLQHGWKDWWKHFKDQJHWRWKHVHFRQGVKLIWZRXOGFRQIOLFW
ZLWKKHUWDNLQJFODVVHVWKDWVKHQHHGHGWRFRPSOHWHKHUGHJUHH
DW)HUULV6WDWH8QLYHUVLW\6KHIXUWKHUFRPSODLQHGWKDWFHUWDLQ
SULVRQHUVKRXVHGLQWKH&HQWUDO&RPSOH[IDFLOLW\KDGPDGH

-- 3 of 8 --

6WURXVVY0LFKLJDQ'HSWRI
&RUUHFWLRQVHWDO
1R
WKUHDWV DJDLQVW KHU 6WURXVV WRRN KHU FRPSODLQWV WR -DFNLH
-DFNVRQ5HJLRQDO'LUHFWRURI1XUVLQJIRU2XWSDWLHQW&DUH
DOVRNQRZQDV³$PEXODWRU\&DUH´ ,QUHVSRQVHWR6WURXVV¶
FRQFHUQV-DFNVRQSODFHG6WURXVVRQWKHGD\VKLIWDVDVWDII
QXUVHLQ$PEXODWRU\&DUHDWWKH&RWWRQ)DFLOLW\ZLWKRXWDQ\
GHFUHDVHLQKHUSD\
-DFNLH-DFNVRQVWDWHGLQKHUGHSRVLWLRQWKDW6WURXVVZDVWROG
DWWKHWLPHRIKHUDVVLJQPHQWWRWKH&RWWRQ)DFLOLW\WKDWWKH
DVVLJQPHQW ZDV RQO\ WHPSRUDU\ DQG WKDW WKH\ ZHUH LQ WKH
SURFHVV RI LQWHUYLHZLQJ IRU SHUPDQHQW GD\ VKLIW SRVLWLRQV
6KH HQFRXUDJHG 6WURXVV WR LQWHUYLHZ IRU WKHVH SRVLWLRQV
EHFDXVHRQFHWKH\ZHUHILOOHG6WURXVVZRXOGKDYHWRUHWXUQWR
KHU 51 0DQDJHU SRVLWLRQ LQ WKH &HQWUDO &RPSOH[
6WURXVV RQ WKH RWKHU KDQG DOOHJHV WKDW VKH ZDV WROG E\
-DFNVRQWKDWKHUWUDQVIHUWRWKHGD\VKLIWLQ$PEXODWRU\&DUH
ZDVWREHSHUPDQHQW6KHGLGQRWKDYHWRLQWHUYLHZIRUWKH
SRVLWLRQV EXW UDWKHU RQO\ KDG WR JLYH -DFNVRQ KHU VRFLDO
VHFXULW\QXPEHUVRKHUQDPHFRXOGEHSODFHGRQWKH³UHJLVWHU´
IRU WKH RSHQ SRVLWLRQV 6WURXVV FODLPV WKDW VKH GLG JLYH
-DFNVRQKHUVRFLDOVHFXULW\QXPEHU:LWKUHVSHFWWR6WURXVV¶
FRQFHUQ DERXW SODFHPHQW LQ &HQWUDO &RPSOH[ EHFDXVH RI
WKUHDWVDOOHJHGO\PDGHE\SULVRQHUVZKRZHUHKRXVHGWKHUH
-DFNVRQWHVWLILHGWKDWVKHWROG6WURXVVWRJLYHKHUWKHQDPHV
DQGSULVRQHUQXPEHUVRIWKHVHDOOHJHGSULVRQHUHQHPLHVEXW
6WURXVV QHYHU GLG 6WURXVV FODLPV WKDW VKH JDYH WKLV
LQIRUPDWLRQWR-DFNVRQYHUEDOO\
2Q2FWREHU6WURXVVWROGKHULPPHGLDWHVXSHUYLVRU
1DQF\ /DQJH DERXW VRPH LQDSSURSULDWH VH[XDO FRPPHQWV
PDGHE\'U'RQRYDQ*LYHQVRQHRIKHUFRQWUDFWGRFWRUVDW
WKH &RWWRQ )DFLOLW\ 6WURXVV GLG QRW ZDQW WR ILOH D IRUPDO
FRPSODLQW RI VH[XDO KDUDVVPHQW DJDLQVW 'U*LYHQV
1RQHWKHOHVV1DQF\/DQJHUHSRUWHGWKHLQFLGHQWWRWKHVH[XDO
KDUDVVPHQW FRXQVHORU DW WKH IDFLOLW\ DQG DOVR LQIRUPHG 'U
*UHJRU\1D\ORU'U*LYHQ¶VVXSHUYLVRUDQG*HUDOG'H9RVV
WKH5HJLRQDO+HDOWK&DUH$GPLQLVWUDWRUDERXWWKHPDWWHU$
IHZGD\VODWHU'U*LYHQVZDVWUDQVIHUUHGRXWRI$PEXODWRU\
&DUH
1R 6WURXVVY0LFKLJDQ'HSWRI
&RUUHFWLRQVHWDO

86& † SURYLGHV WKDW ³>H@YHU\ SHUVRQ ZKR XQGHU FRORU RI
DQ\ VWDWXWH RUGLQDQFH UHJXODWLRQ FXVWRP RU XVDJH RI DQ\ 6WDWH
VXEMHFWV RU FDXVHV WR EH VXEMHFWHG DQ\ FLWL]HQ RI WKH 8QLWHG 6WDWHV RU
RWKHU SHUVRQ ZLWKLQ WKH MXULVGLFWLRQ WKHUHRI WR WKH GHSULYDWLRQ RI DQ\
ULJKWV SULYLOHJHV RU LPPXQLWLHV VHFXUHG E\ WKH &RQVWLWXWLRQ DQG ODZV
VKDOO EH OLDEOH WR WKH SDUW\ LQMXUHG LQ DQ DFWLRQ DW ODZ VXLW LQ HTXLW\ RU
RWKHU SURSHU SURFHHGLQJ IRU UHGUHVV´
)LQDOO\6WURXVVFRQWHQGVWKDWWKHWUDQVIHUZDVLPSOHPHQWHG
LQ UHWDOLDWLRQ IRU KHU RSSRVLQJ :DUGHOO¶V %URZQ¶V DOOHJHG
VH[XDOKDUDVVPHQWWKUHH\HDUVHDUOLHU6HYHUDOFRXUWVKDYH
KHOG WKDW D VLJQLILFDQW JDS LQ WLPH EHWZHHQ WKH SURWHFWHG
DFWLYLW\DQGWKHDGYHUVHDFWLRQFDQQRWJLYHULVHWRDQLQIHUHQFH
RIDUHWDOLDWRU\PRWLYH6HH&DQGHODULDY(* *(QHUJ\
0HDVXUHPHQWV )G WK &LU ³1R
VXFKLQIHUHQFH>RIDUHWDOLDWRU\PRWLYH@FDQEHPDGHZKHUH
WKHUHOHYDQWFKDUJHVSUHFHGHGWKHHPSOR\HU¶VDGYHUVHDFWLRQ
E\ DV PXFK DV WKUHH \HDUV´ 2OLYHU Y 'LJLWDO (TXLSPHQW
&RUSRUDWLRQ)G VW&LU KROGLQJ
WKDW GLVFKDUJH RYHU WZR DQG RQH KDOI \HDUV DIWHU HPSOR\HH
ILOHG((2&FRPSODLQWZDVLQVXIILFLHQWVKRZLQJRIUHWDOLDWLRQ
WRDYRLGVXPPDU\MXGJPHQWIRUHPSOR\HU
,Q VXP 6WURXVV KDV IDLOHG WR UDLVH D JHQXLQH LVVXH RI
PDWHULDO IDFW DV WR ZKHWKHU WKHUH LV D FDXVDO FRQQHFWLRQ
EHWZHHQKHUSURWHFWHGDFWLYLW\DQGKHUODWHUDOWUDQVIHUWRWKH
&HQWUDO &RPSOH[ IDFLOLW\ $FFRUGLQJO\ VKH KDV IDLOHG WR
HVWDEOLVKDSULPDIDFLHFDVHRIUHWDOLDWLRQ
'6HFWLRQ'XH3URFHVV&ODLP
6WURXVVDVVHUWVD6HFWLRQGXHSURFHVVFODLPDJDLQVWWKH
LQGLYLGXDOGHIHQGDQWV6WURXVVFODLPVWKDWRQ-XQH
GHIHQGDQWVVXVSHQGHGKHUZLWKRXWSD\SHQGLQJLQYHVWLJDWLRQ
DQGIDLOHGWRSURYLGHKHUFHUWDLQGXHSURFHVVSURWHFWLRQVVXFK
DVSULRUQRWLFHRUDQRSSRUWXQLW\WREHKHDUG7KHGRFWULQHRI
TXDOLILHG LPPXQLW\ DIIRUGV SURWHFWLRQ DJDLQVW LQGLYLGXDO
OLDELOLW\IRUFLYLOGDPDJHVWRRIILFLDOVLQVRIDUDVWKHLUFRQGXFW
GRHVQRWYLRODWHFOHDUO\HVWDEOLVKHGVWDWXWRU\RUFRQVWLWXWLRQDO

-- 4 of 8 --

6WURXVVY0LFKLJDQ'HSWRI
&RUUHFWLRQVHWDO
1R
RSSRUWXQLW\WRRULHQWWRDPEXODWRU\FDUHDQGWRLQWHUYLHZIRU
DQWLFLSDWHG DP WR SP 51 SRVLWLRQV KHUH LQ
-DFNVRQ7KHVHSRVLWLRQVKDYHEHHQILOOHG´-$
7KXVWKHOHWWHUE\-DFNLH-DFNVRQDQG6WURXVV¶RZQVZRUQ
WHVWLPRQ\HVWDEOLVKWKDWKHUDVVLJQPHQWWRWKH&RWWRQ)DFLOLW\
ZDVRQO\WHPSRUDU\,QVXP6WURXVVKDVIDLOHGWRSURGXFH
³HYLGHQFH RQ ZKLFK WKH MXU\ FRXOG UHDVRQDEO\ ILQG´ WKDW
-DFNLH-DFNVRQUHQHJHGRQDSURPLVHWRJLYHKHUDSHUPDQHQW
SRVLWLRQDWWKH&RWWRQ)DFLOLW\$QGHUVRQ86DW
6WURXVV VLPSO\ FDQQRW UHEXW WKH RQO\ UHDVRQDEOH
LQIHUHQFHWKDWWKHUHZDVQRFDXVDOFRQQHFWLRQEHWZHHQKHU
SURWHFWHG DFWLYLW\ DQG KHU WUDQVIHU WR WKH &HQWUDO &RPSOH[
IDFLOLW\ LQ OLJKW RI WKH XQFRQWURYHUWHG IDFW WKDW VKH NQHZ
DERXWWKHWUDQVIHUPRQWKVEHIRUHVKHFRPSODLQHGDERXWVH[XDO
KDUDVVPHQW
6WURXVVUHOLHVKHDYLO\RQWKHIDFWWKDWWKHODWHUDOWUDQVIHU
ZDVLPSOHPHQWHGDPHUHWZRZHHNVDIWHUVKHFRPSODLQHGRI
'U*LYHQ¶VVH[XDOFRPPHQWV+RZHYHUWKH6L[WK&LUFXLW
KDVKHOGWKDW³WHPSRUDOSUR[LPLW\DORQHZLOOQRWVXSSRUWDQ
LQIHUHQFH>RIDFDXVDOFRQQHFWLRQ@LQWKHIDFHRIFRPSHOOLQJ
HYLGHQFHWKDWWKHGHIHQGDQWFRPSDQ\HQFRXUDJHGFRPSODLQWV
DERXWWKHUHOHYDQWJULHYDQFH´)HQWRQ)GDW,Q
WKHFDVHDWEDUWKHUHLVFRPSHOOLQJHYLGHQFHWKDWGHIHQGDQW
HQFRXUDJHG FRPSODLQWV DERXW VH[XDO KDUDVVPHQW 6WURXVV
GRHVQRWGLVSXWHWKDWWKHVDPHGD\WKDWVKHFRPSODLQHGRI'U
*LYHQ¶VVH[XDOFRPPHQWV1DQF\/DQJHJDYHKHUDSDFNDJH
RXWOLQLQJSURFHGXUHVIRUILOLQJVH[XDOKDUDVVPHQWFRPSODLQWV
UHSRUWHGWKHLQFLGHQWWRWKHVH[XDOKDUDVVPHQWFRXQVHORUDWWKH
IDFLOLW\DQGLQIRUPHG'U*LYHQ¶VVXSHUYLVRU$IHZGD\V
ODWHU'U*LYHQVZDVWUDQVIHUUHGRXWRI6WURXVV¶GHSDUWPHQW
,Q OLJKW RI WKLV FRPSHOOLQJ DQG XQFRQWHVWHG HYLGHQFH RI
GHIHQGDQW¶V VZLIW UHVSRQVH WR 6WURXVV¶ VH[XDO KDUDVVPHQW
FRPSODLQWWHPSRUDOSUR[LPLW\DORQHLVQRWVXIILFLHQWWRUDLVH
DQLQIHUHQFHRIDFDXVDOFRQQHFWLRQEHWZHHQKHUFRPSODLQW
DQGWKHWUDQVIHU
1R 6WURXVVY0LFKLJDQ'HSWRI
&RUUHFWLRQVHWDO

2Q 2FWREHU 6WURXVV ZDV LQIRUPHG E\ -DFNLH
-DFNVRQWKDWVKHZDVEHLQJWUDQVIHUUHGEDFNWRWKH&HQWUDO
&RPSOH[ IDFLOLW\ WR ZRUN WKH VHFRQG VKLIW DV RULJLQDOO\
VFKHGXOHG 0V -DFNVRQ¶V 2FWREHU 0HPRUDQGXP WR
6WURXVVVWDWHG
(IIHFWLYH1RYHPEHULWZLOOEHQHFHVVDU\IRU
\RX WR UHSRUW WR 60,-0) &HQWUDO &RPSOH[ RQ WKH
DIWHUQRRQVKLIWSPWRSP
<RX KDYH H[SUHVVHG WR PH WKDW \RX KDYH FRQFHUQV
UHJDUGLQJFHUWDLQ³SULVRQHUV´ORFNLQJLQWKLVDUHD,IWKLV
LV VWLOO VR \RX PXVW VXSSO\ PH ZLWK WKH QDPHV DQG
QXPEHUVE\2FWREHU
$V PXWXDOO\ GLVFXVVHG DQG DJUHHG XSRQ \RX ZHUH
WHPSRUDULO\DVVLJQHGWR-&) &RWWRQ)DFLOLW\ RQWKHGD\
VKLIW WR DOORZ \RX WR RULHQW WR DPEXODWRU\ FDUH DQG WR
LQWHUYLHZIRUDQWLFLSDWHGDPWRSRVLWLRQVKHUH
LQ-DFNVRQ7KHVHSRVLWLRQVKDYHEHHQILOOHGDQGWKH-&)
&RWWRQ)DFLOLW\ VWDIILVXSWRFRPSOHPHQW
-$DW
6WURXVV FODLPV WKDW RQ 2FWREHU VKH DJDLQ JDYH
-DFNVRQ WKH QDPHV RI WKH SULVRQHUV KRXVHG LQ &HQWUDO
&RPSOH[ZKRKDGWKUHDWHQHGKHUDQGWKDW-DFNVRQVDLGVKH
ZRXOG³VHHZKDWVKHFRXOGGRDERXWLW´6WURXVVWHVWLILHGLQ
KHU GHSRVLWLRQ ³, KDG QR FKRLFH EXW WR UHVLJQ IURP WKH
GHSDUWPHQW 0\ MRE LVQ¶W ZRUWK P\ OLIH´ -$ DW
6WURXVVKDGWZRZHHNVRIVLFNOHDYHWLPHVRVKHWRRNWKHQH[W
WZRZHHNVRIIDQGRQ1RYHPEHUTXLWKHUMRE
2Q1RYHPEHU6WURXVVILOHGDQ((2&FRPSODLQW
FKDUJLQJ WKH 0LFKLJDQ 'HSDUWPHQW RI &RUUHFWLRQV ZLWK
UHWDOLDWLRQ8QOLNHKHUSUHYLRXVFKDUJHLQ$XJXVWRI
6WURXVVGLGQRWLQGLFDWHWKDWWKLVZDVD³FRQWLQXLQJDFWLRQ´
EXWUDWKHULQGLFDWHGRQO\WKDWWKHGDWHRQZKLFKWKHDOOHJHG
ZURQJIXOUHWDOLDWLRQWRRNSODFHZDV³´LHWKHGDWH
RQZKLFK6WURXVVZDVQRWLILHGWKDWVKHZDVEHLQJWUDQVIHUUHG

-- 5 of 8 --

6WURXVVY0LFKLJDQ'HSWRI
&RUUHFWLRQVHWDO
1R
IURP WKH &RWWRQ )DFLOLW\ WR WKH VHFRQG VKLIW LQ WKH &HQWUDO
&RPSOH[,QKHUFKDUJH6WURXVVRQO\PHQWLRQHGWKHDOOHJHG
KDUDVVPHQWE\'U*LYHQVDVDEDVLVIRUWKHFRPSODLQW2Q
0DUFK WKH ((2& LVVXHG LWV 1RWLILFDWLRQ RI WKH
5LJKW WR 6XH QRWLI\LQJ SODLQWLII WKDW VKH KDG GD\V IURP
UHFHLSW WKHUHRI WR LQVWLWXWH D MXGLFLDO DFWLRQ 2Q -XQH
6WURXVVLQLWLDWHGWKHLQVWDQWDFWLRQDJDLQVW0'2&DQG
LQGLYLGXDO'HIHQGDQWV0DULH)OHWFKHUDQG*HUDOG'H9RVV
,Q&RXQW,RIKHUWZRFRXQW&RPSODLQW6WURXVVDOOHJHVWKDW
GHIHQGDQWVEHJDQDFRXUVHRIUHWDOLDWLQJDJDLQVWKHULQ
EHFDXVHVKHRSSRVHGDQGFRPSODLQHGRIVH[XDOKDUDVVPHQWE\
:DUGHOO %URZQ DQG WKDW WKH FRXUVH RI FRQGXFW FRQWLQXHG
WKURXJKRXWKHU\HDUVRIHPSOR\PHQWZLWKWKH0'2&XQWLOWKH
GDWHVKHZDVIRUFHGWRUHVLJQ6WURXVVIXUWKHUVWDWHVWKDWWKH
SURSRVHGWUDQVIHURIKHULQWKH)DOORIWRWKH&HQWUDO
&RPSOH[VHFRQGVKLIWZDVDOVRLQUHWDOLDWLRQIRUKHUKDYLQJ
FRPSODLQHGRIVH[XDOKDUDVVPHQWE\:DUGHOO%URZQLQ
DQGLQUHWDOLDWLRQIRUKDYLQJFRPSODLQHGRIRIIHQVLYHVH[XDO
FRPPHQWVE\'U*LYHQVDWWKH&RWWRQ)DFLOLW\
,Q &RXQW ,, RI KHU FRPSODLQW 6WURXVV DOOHJHV WKDW LQ
UHWDOLDWLRQIRUFRPSODLQLQJRIVH[XDOKDUDVVPHQWE\:DUGHOO
%URZQDQGLQYLRODWLRQRIKHUULJKWWRGXHSURFHVVDQGHTXDO
SURWHFWLRQVKHZDVXQIDLUO\GLVFLSOLQHGLQ-XQHIRUQRW
IROORZLQJ WKURXJK ZLWK D GRFWRU¶V RUGHUV UHJDUGLQJ D
SULVRQHU¶VLPSHQGLQJVXUJHU\DQGRIHQWHULQJDSDWLHQW¶VURRP
DORQH6SHFLILFDOO\6WURXVVDOOHJHVWKDW'HIHQGDQWV)OHWFKHU
DQG'H9RVVLQVWLWXWHGGLVFLSOLQDU\SURFHHGLQJVDJDLQVWKHULQ
-XQHDQGDWWHPSWHGWRWUDQVIHUKHUWRWKHVHFRQGVKLIWLQ
&HQWUDO &RPSOH[ EHFDXVH VKH FRPSODLQHG RI VH[XDO
KDUDVVPHQW 7KLV VKH FRQWHQGV DPRXQWV WR GLIIHUHQW
VWDQGDUGV RI WUHDWPHQW IURP WKDW DIIRUGHG WR ³RWKHU
GHSDUWPHQWDO HPSOR\HHV ZKR GLG QRW FRPSODLQ RI VH[XDO
KDUDVVPHQW´-$DW

1R 6WURXVVY0LFKLJDQ'HSWRI
&RUUHFWLRQVHWDO

*HUDOG 'H9RVV ZURWH D OHWWHU WR 6WURXVV RQ -XO\ ZKLFK
VWDWHG WKDW ³>G@XH WR RSHUDWLRQDO QHHGV \RX DUH SHUPDQHQWO\ UHDVVLJQHG WR
$PEXODWRU\ +HDOWK &DUH DW 60, &HQWUDO &RPSOH[ ´ -$
&DXVDO&RQQHFWLRQ
6WURXVV FRQWHQGV WKDW VKH ZDV WUDQVIHUUHG WR WKH &HQWUDO
&RPSOH[IDFLOLW\EHFDXVHRIKHURSSRVLWLRQWR'U*LYHQ¶V
VH[XDOKDUDVVPHQW+RZHYHUWKHUHLVFOHDUDQGXQGLVSXWHG
HYLGHQFHWKDW6WURXVVZDVLQIRUPHGRIWKHGHFLVLRQWRWUDQVIHU
KHUWRWKH&HQWUDO&RPSOH[IDFLOLW\RQ-XO\VHYHUDO
PRQWKV EHIRUH VKH FRPSODLQHG RI 'U *LYHQ¶V VH[XDO
FRPPHQWV7KXVWKHUHLVQRJHQXLQHLVVXHRIPDWHULDOIDFW
DVWRZKHWKHUKHURSSRVLWLRQWR'U*LYHQ¶VVH[XDOFRPPHQWV
OHGWRWKHODWHUDOWUDQVIHUVKHGHHPVDFRQVWUXFWLYHGLVFKDUJH
6WURXVVDFNQRZOHGJHVWKDWVKHZDVLQIRUPHGRIWKHGHFLVLRQ
WRWUDQVIHUKHUWRWKH&HQWUDO&RPSOH[IDFLOLW\PRQWKVEHIRUH
KHURSSRVLWLRQWR'U*LYHQ¶VVH[XDOKDUDVVPHQW+RZHYHU
VKH DUJXHV WKDW -DFNLH -DFNVRQ RIIHUHG KHU D SHUPDQHQW
SRVLWLRQDWWKH&RWWRQ)DFLOLW\LQUHVSRQVHWRKHUREMHFWLRQVWR
EHLQJ WUDQVIHUUHGWRWKH&HQWUDO&RPSOH[IDFLOLW\6WURXVV
FRQWHQGV WKDW -DFNVRQ UHQHJHG RQ WKLV SURPLVH DIWHU VKH
FRPSODLQHGRI'U*LYHQ¶VVH[XDOKDUDVVPHQW6WURXVV¶FODLP
WKDWWKH&RWWRQ)DFLOLW\DVVLJQPHQWZDVSHUPDQHQWLVZLWKRXW
VXSSRUW LQ WKH UHFRUG LQGHHG KHU RZQ VZRUQ WHVWLPRQ\
XQGHUPLQHVKHUFODLP-DFNLH-DFNVRQWHVWLILHGWKDWVKHWROG
6WURXVVWKDWVKHZDVRQO\WHPSRUDULO\DVVLJQHGWRWKH&RWWRQ
)DFLOLW\ DQG WKDW VKH HQFRXUDJHG 6WURXVV WR LQWHUYLHZ IRU
SHUPDQHQWSRVLWLRQVDWWKDWIDFLOLW\EHIRUHWKHSRVLWLRQVZHUH
ILOOHG6WURXVVFRUURERUDWHG-DFNVRQ¶VWHVWLPRQ\E\VWDWLQJ
WKDW -DFNVRQ DFWLYHO\ UHFUXLWHG KHU WR VWD\ DW WKH &RWWRQ
)DFLOLW\ E\ WHOOLQJ KHU RI SRVLWLRQV IRU ZKLFK VKH FRXOG
LQWHUYLHZ7KXV6WURXVV¶RZQVZRUQWHVWLPRQ\LQGLFDWHVWKDW
WKH &RWWRQ )DFLOLW\ DVVLJQPHQW ZDV RQO\ WHPSRUDU\
&RQVLVWHQWZLWK6WURXVV¶WHVWLPRQ\LVWKH2FWREHU
OHWWHU WKDW -DFNLH -DFNVRQ ZURWH WR SODLQWLII ZKLFK VWDWHG
³>D@V PXWXDOO\ GLVFXVVHG DQG DJUHHG XSRQ \RX ZHUH
WHPSRUDULO\DVVLJQHGWR-&) &RWWRQ)DFLOLW\ WRDOORZ\RXWKH

-- 6 of 8 --

6WURXVVY0LFKLJDQ'HSWRI
&RUUHFWLRQVHWDO
1R
7KH GLVWULFW FRXUW KHOG WKDW VLQFH WKH ODWHUDO WUDQVIHU ZRXOG PDNH LW
LPSRVVLEOH IRU WKH SODLQWLII WR DWWHQG WKH VFKRRO RI KHU FKRLFH WKH WUDQVIHU
FRQVWLWXWHV DQ DGYHUVH HPSOR\PHQW DFWLRQ 7KH GLVWULFW FRXUW¶V SUHPLVH LV
KLJKO\ TXHVWLRQDEOH 7KH 6L[WK &LUFXLW KHOG LQ 'DUQHOO Y &DPSEHOO
&RXQW\ )LVFDO &RXUW WKDW SXUHO\ SHUVRQDO UHDVRQV IRU WXUQLQJ GRZQ D
WUDQVIHU DUH QRW VXIILFLHQW WR UHQGHU D WUDQVIHU DQ DGYHUVH HPSOR\PHQW
DFWLRQ 86 $SS /(;,6 DW FI 'LOHQQR Y *RRGZLOO
,QGXV )G G &LU REVHUYLQJ WKDW GHVLUH WR OLYH LQ
D FHUWDLQ FLW\ LV QRW D ³MREUHODWHG DWWULEXWH´ WR EH FRQVLGHUHG ZKHQ
GHWHUPLQLQJ ZKHWKHU ODWHUDO WUDQVIHU ZDV DGYHUVH HPSOR\PHQW DFWLRQ
$GYHUVH(PSOR\PHQW$FWLRQ
,QGLVSXWHLVZKHWKHU6WURXVV¶ODWHUDOWUDQVIHUFRQVWLWXWHVDQ
DGYHUVHHPSOR\PHQWDFWLRQ³$QHPSOR\HH¶VUHMHFWLRQRID
ODWHUDO WUDQVIHU LV DOZD\V DFWLRQDEOH DV DQ μDGYHUVH
HPSOR\PHQWDFWLRQ¶LIWKHFRQGLWLRQVRIWKHWUDQVIHUZRXOG
KDYH EHHQ REMHFWLYHO\ LQWROHUDEOH WR D UHDVRQDEOH SHUVRQ
WKHUHE\DPRXQWLQJWRDμFRQVWUXFWLYHGLVFKDUJH¶´'DUQHOOY
&DPSHOO&RXQW\)LVFDO&RXUW1R86$SS
/(;,6 DW WK &LU )HE XQSXEOLVKHG
6WURXVV DOOHJHV WKDW KHU WUDQVIHU WR WKH &HQWUDO &RPSOH[
IDFLOLW\ ZRXOG KDYH HQGDQJHUHG KHU OLIH GXH WR WKUHDWV WKDW
YDULRXVLQPDWHVKRXVHGLQWKDWIDFLOLW\PDGHDJDLQVWKHU7KH
GHIHQGDQWV FRQWHQG WKDW 6WURXVV¶ DOOHJDWLRQV RI WKUHDWV DUH
XQSHUVXDVLYHEHFDXVHVKHUHIXVHGWRJLYHWKHPWKHQDPHVRI
WKHDOOHJHG³SULVRQHUHQHPLHV´+RZHYHU6WURXVVWHVWLILHG
WKDW VKH YHUEDOO\ WROG KHU VXSHUYLVRUV WKH QDPHV RI WKHVH
SULVRQHUV 7KLV FRXUW PXVW FRQVWUXH WKH HYLGHQFH DQG DOO
LQIHUHQFHVWREHGUDZQIURPLWLQWKHOLJKWPRVWIDYRUDEOHWR
WKHQRQPRYLQJSDUW\6HH0DWVXVKLWD(OHF,QGXV&R
86DW ,QOLJKWRIWKLVGLUHFWLYHWKHUHLVDWOHDVW
DQLVVXHRIPDWHULDOIDFWDVWRZKHWKHUWKHFRQGLWLRQVRIWKH
WUDQVIHU ZKLFK PD\ KDYH SXW SODLQWLII LQWR FRQWDFW ZLWK
SULVRQHUVZKRKDGLVVXHGWKUHDWVDJDLQVWKHUZRXOGKDYHEHHQ
³REMHFWLYHO\ LQWROHUDEOH WR D UHDVRQDEOH SHUVRQ´ 'DUQHOO
86 $SS /(;,6 DW 7KXV 6WURXVV KDV
HVWDEOLVKHGWKHWKLUGHOHPHQWRIKHUUHWDOLDWLRQFODLP
1R 6WURXVVY0LFKLJDQ'HSWRI
&RUUHFWLRQVHWDO

,,',675,&7&2857¶623,1,21
7KH GLVWULFW FRXUW KHOG WKDW 6WURXVV¶ 7LWOH 9,, UHWDOLDWLRQ
FODLPLVOLPLWHGWRWKHVFRSHRIKHU1RYHPEHU((2&
FKDUJH7KHFRXUWIRXQGWKDW6WURXVV¶DOOHJDWLRQVRIEHLQJ
UHWDOLDWHGDJDLQVWE\KHUHPSOR\HUIRUKDYLQJRSSRVHGVH[XDO
KDUDVVPHQWE\:DUGHOO%URZQLQFDQQRWUHDVRQDEO\EH
H[SHFWHGWRJURZRXWRIWKH((2&FKDUJHRIUHWDOLDWLRQIRU
FRPSODLQLQJ DERXW ³XQZHOFRPH VH[XDO FRPPHQWV´ E\ D
GRFWRUZLWKZKRPVKHZDVZRUNLQJLQ,QDGGLWLRQWKH
GLVWULFWFRXUWKHOGWKDWVLQFHWKHSUHUHWDOLDWLRQFODLPV
DUHQRWZLWKLQWKHVFRSHRIWKH((2&FKDUJHWKH\DUH
WLPHEDUUHGEHFDXVH6WURXVVIDLOHGWRILOHDFLYLOVXLWRQWKRVH
FODLPVZLWKLQGD\VRI((2&¶VIDLOXUHWREULQJVXLWRU
ZLWKLQGD\VRI((2&¶VULJKWWRVXHQRWLILFDWLRQ
7KHGLVWULFWFRXUWDOVRIRXQGWKDW6WURXVVIDLOHGWRHVWDEOLVK
D SULPD IDFLH FDVH RI UHWDOLDWLRQ ZLWK UHVSHFW WR WKH RQO\
DGPLQLVWUDWLYHO\ H[KDXVWHG FODLP LH KHU FODLP RI EHLQJ
UHWDOLDWHGDJDLQVWIRUFRPSODLQLQJRIVH[XDOKDUDVVPHQWE\'U
*LYHQV RQ 2FWREHU :LWK UHVSHFW WR ZKHWKHU WKH
ODWHUDOWUDQVIHUZDVDQDGYHUVHHPSOR\PHQWDFWLRQWKHGLVWULFW
FRXUWKHOGWKDWWKHWUDQVIHUHQWDLOHGDFKDQJHLQ6WURXVV¶ZRUN
KRXUV ZKLFK LPSDFWHG XSRQ KHU DELOLW\ WR FRQWLQXH KHU
HGXFDWLRQ7KDWLPSDFWZDVVXIILFLHQWWRUHQGHUWKHWUDQVIHU
DQDGYHUVHHPSOR\PHQWDFWLRQ+RZHYHUWKHFRXUWIRXQGWKDW
6WURXVVIDLOHGWRSURGXFHVXIILFLHQWHYLGHQFHIURPZKLFKDQ
LQIHUHQFHFRXOGEHGUDZQWKDWWKHUHZDVDFDXVDOFRQQHFWLRQ
EHWZHHQWKHWUDQVIHUDQG6WUDXVV¶RSSRVLWLRQWR'U*LYHQ¶V
VH[XDOKDUDVVPHQW
7KH GLVWULFW FRXUW IRXQG WKDW 6WURXVV¶ 6HFWLRQ GXH
SURFHVVFODLPVKRXOGEHGLVPLVVHGEHFDXVHLWZDVQRWFOHDUO\
HVWDEOLVKHG WKDW EHLQJ VXVSHQGHG ZLWKRXW SD\ WULJJHUV GXH
SURFHVV SURWHFWLRQV 7KH GLVWULFW FRXUW DOVR IRXQG WKDW
6WURXVV¶6HFWLRQHTXDOSURWHFWLRQFODLPIDLOVEHFDXVH
WKHUH LV QR FOHDUO\ HVWDEOLVKHG ULJKW WR EH IURP UHWDOLDWLRQ
XQGHU WKH HTXDO SURWHFWLRQ FODXVH WKXV WKH GHIHQGDQWV DUH
HQWLWOHGWRTXDOLILHGLPPXQLW\RQWKDWFODLP7RWKHH[WHQW

-- 7 of 8 --

6WURXVVY0LFKLJDQ'HSWRI
&RUUHFWLRQVHWDO
1R
WKDW WKH SODLQWLII LV PDNLQJ D )LUVW $PHQGPHQW UHWDOLDWLRQ
FODLPWKHGLVWULFWFRXUWKHOGWKDWSODLQWLII¶VIDLOXUHWRUDLVH
WKDW FODLP LQ KHU FRPSODLQW SUHFOXGHV KHU IURP UDLVLQJ LW
EHIRUH WKH GLVWULFW FRXUW LQ D PRWLRQ RSSRVLQJ VXPPDU\
MXGJPHQW
,,,/(*$/$1$/<6,6
$6WDQGDUGRI5HYLHZ
7KLV &RXUW UHYLHZV D GLVWULFW FRXUW V RUGHU JUDQWLQJ
VXPPDU\MXGJPHQWGHQRYR6HH5LFKDUGVRQY7RZQVKLSRI
%UDG\ )G WK &LU 6XPPDU\
MXGJPHQWLVDSSURSULDWHLIDSDUW\ZKRKDVWKHEXUGHQRISURRI
DW WULDO IDLOV WR PDNH D VKRZLQJ VXIILFLHQW WR HVWDEOLVK WKH
H[LVWHQFHRIDQHOHPHQWWKDWLVHVVHQWLDOWRWKDWSDUW\ VFDVH
6HH&HORWH[&RUSY&DWUHWW86 2Q
DSSHDOZHPXVWFRQVWUXHWKHHYLGHQFHDQGDOOLQIHUHQFHVWREH
GUDZQIURPLWLQWKHOLJKWPRVWIDYRUDEOHWRWKHQRQPRYLQJ
SDUW\6HH0DWVXVKLWD(OHF,QGXV&RY=HQLWK5DGLR&RUS
86 7KHPHUHH[LVWHQFHRIDVFLQWLOOD
RI HYLGHQFH LQ VXSSRUW RI WKH SODLQWLII V SRVLWLRQ ZLOO EH
LQVXIILFLHQWWKHUHPXVWEHHYLGHQFHRQZKLFKWKHMXU\FRXOG
UHDVRQDEO\ILQGIRUWKHSODLQWLII$QGHUVRQY/LEHUW\/REE\
,QF86
%7LWOH9,,5HWDOLDWLRQ&ODLPV
,W LV ZHOO VHWWOHG WKDW IHGHUDO FRXUWV GR QRW KDYH VXEMHFW
PDWWHUMXULVGLFWLRQWRKHDU7LWOH9,,FODLPVXQOHVVWKHFODLPDQW
H[SOLFLWO\ILOHVWKHFODLPLQDQ((2&FKDUJHRUWKHFODLPFDQ
EHUHDVRQDEO\H[SHFWHGWRJURZRXWRIWKH((2&FKDUJH6HH
$EHLWDY7UDQVDPHULFD0DLOLQJV,QF)G WK
&LU *HQHUDOO\UHWDOLDWLRQFODLPVEDVHGRQFRQGXFW
WKDW RFFXUV DIWHU WKH ILOLQJ RI WKH ((2& FKDUJH FDQ EH
UHDVRQDEO\H[SHFWHGWRJURZRXWRIWKHFKDUJH6HH'XJJLQV
Y6WHDN 16KDNH,QF)G WK&LU
+RZHYHUUHWDOLDWLRQFODLPVEDVHGRQFRQGXFWWKDWRFFXUUHG
EHIRUHWKHILOLQJRIWKH((2&FKDUJHPXVWEHLQFOXGHGLQWKDW
FKDUJH6HH$QJY3URFWHU *DPEOH&R)G
1R 6WURXVVY0LFKLJDQ'HSWRI
&RUUHFWLRQVHWDO

WK&LU ³5HWDOLDWRU\FRQGXFWRFFXUULQJSULRUWRWKH
ILOLQJRIWKH((2&FRPSODLQWLVGLVWLQJXLVKDEOHIURPFRQGXFW
RFFXUULQJ DIWHUZDUGV DV QR XQQHFHVVDU\ GRXEOH ILOLQJ LV
UHTXLUHGE\GHPDQGLQJWKDWSODLQWLIIVDOOHJHUHWDOLDWLRQLQWKH
RULJLQDO FRPSODLQW´ +HUH 6WURXVV IDLOHG WR LQFOXGH WKH
FODLPVRIUHWDOLDWLRQLQKHU((2&FKDUJH6LQFH
WKRVHSUHFODLPVRIUHWDOLDWLRQFRXOGKDYHEHHQLQFOXGHG
LQKHU((2&FKDUJH6WURXVV¶IDLOXUHWRGRVRGHSULYHV
WKLV FRXUW RI VXEMHFW PDWWHU MXULVGLFWLRQ RYHU WKRVH FODLPV
$FFRUGLQJO\WKHGLVWULFWFRXUWSURSHUO\GLVPLVVHGWKHSUH
UHWDOLDWLRQFODLPV
)XUWKHUPRUHWKHGLVWULFWFRXUWFRUUHFWO\IRXQGWKDWWKHSUH
UHWDOLDWLRQ FODLPV DUH WLPHEDUUHG 6WURXVV ILOHG WZR
((2& FKDUJHV LQ 0DUFK DQG $XJXVW RI 86&
†H I SURYLGHV WKDW LI WKH FKDUJH ILOHG ZLWK WKH
&RPPLVVLRQ LV GLVPLVVHG RU LI ZLWKLQ GD\V IURP WKH
ILOLQJRIVXFKDFKDUJHWKH&RPPLVVLRQKDVQRWILOHGDFLYLO
DFWLRQWKH&RPPLVVLRQVKDOOVRQRWLI\WKHSHUVRQDJJULHYHG
DQG ZLWKLQ GD\V RI VXFK QRWLFH D FLYLO DFWLRQ PD\ EH
EURXJKW 6WURXVV GLG QRW ILOH D FLYLO VXLW UDLVLQJ WKH
UHWDOLDWLRQFODLPVXQWLO-XQHRIZHOORXWVLGHWKHWLPH
IUDPHSURYLGHGE\VWDWXWH$FFRUGLQJO\WKHUHWDOLDWLRQ
FODLPVDUHWLPHEDUUHG
&7LWOH9,,5HWDOLDWLRQ&ODLP
,Q RUGHU WR PDNH RXW D SULPD IDFLH FDVH RI UHWDOLDWLRQ
6WURXVVPXVWGHPRQVWUDWH WKDWVKHHQJDJHGLQDFWLYLW\
SURWHFWHGE\7LWOH9,, WKDWWKHGHIHQGDQW NQHZRIWKLV
H[HUFLVH RI KHU SURWHFWHG ULJKWV WKDW WKH GHIHQGDQW
FRQVHTXHQWO\WRRNDQHPSOR\PHQWDFWLRQDGYHUVHWRSODLQWLII
DQG WKDWWKHUHLVDFDXVDOFRQQHFWLRQEHWZHHQWKHSURWHFWHG
DFWLYLW\DQGWKHDGYHUVHHPSOR\PHQWDFWLRQ6HH)HQWRQY
+L6$1,QF)G WK&LU +DIIRUGY
6HLGQHU)G WK&LU %RWKSDUWLHVDJUHH
WKDW6WURXVVKDVPHWWKHILUVWWZRSURQJV

-- 8 of 8 --