02a0050p.06

00-3357; 00-3359Court of Appeals for the Sixth Circuit7 de fev. de 2002

Abrir fonte

Texto completo

0DUWLQY0LWFKHOO 1RV
IRFXVHVRQWKHIDFWRUVZHRXWOLQHGLQ%\UGY&ROOLQV
)G WK&LU IRUDQDO\VLVRIVXFKFODLPV
7KLV&LUFXLWKDVH[SODLQHGWKDWZHZLOOQRWILQG³PDQLIHVW
LQWHQW´ ZKHUH VRPH RWKHU H[SODQDWLRQV IRU WKH
SURVHFXWRU V FRPPHQWV DUH HTXDOO\ SRVVLEOH 8QLWHG
6WDWHVY8UVHU\)G WK&LU ,Q
DGGLWLRQ ZH KDYH PDGH FOHDU WKDW WKH TXHVWLRQ LV QRW
ZKHWKHUWKHMXU\SRVVLEO\RUHYHQSUREDEO\ZRXOGYLHZ
WKHVWDWHPHQWVDVFRPPHQWVRQWKHGHIHQGDQW VIDLOXUHWR
WHVWLI\ ³EXW ZKHWKHU WKH MXU\ QHFHVVDULO\ ZRXOG KDYH
GRQHVR´,G
,GDW
0DUWLQ¶VDUJXPHQWLVZLWKRXWPHULW$VWKHGLVWULFWFRXUW
IRXQGWKHHQWLUHTXRWHVKRZVWKDW³VRPHRWKHUH[SODQDWLRQV
IRUWKHSURVHFXWRU¶VFRPPHQWVDUHHTXDOO\SRVVLEOH´,G7KH
FRPPHQW ZDV LVRODWHG DV WKLV LV WKH RQO\ FRPPHQW
FRPSODLQHG RI E\ 0DUWLQ (YLGHQFH RI JXLOW ZDV
RYHUZKHOPLQJ)LQDOO\WKHFRXUWLQVWUXFWHGWKHMXU\WRGUDZ
QRLQIHUHQFHDERXW0DUWLQ¶VGHFLVLRQQRWWRWHVWLI\
$)),50('

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
(51(67 0$57,1
3HWLWLRQHU$SSHOODQW
Y
%(77< 0,7&+(//:DUGHQ
5HVSRQGHQW$SSHOOHH
;!

1
1RV
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG
1R²'RQDOG&1XJHQW'LVWULFW-XGJH
$UJXHG$XJXVW
'HFLGHGDQG)LOHG)HEUXDU\
%HIRUH1255,66,/(5DQG'$8*+75(<&LUFXLW
-XGJHV
BBBBBBBBBBBBBBBBB
&2816(/
$5*8(' 7LPRWK\ 5 3D\QH 2+,2 38%/,&
'()(1'(5¶6 2)),&( &ROXPEXV 2KLR IRU $SSHOODQW
1RUPDQ(3ODWH2)),&(2)7+($77251(<*(1(5$/
2) 2+,2 &ROXPEXV 2KLR IRU $SSHOOHH 21 %5,()
7LPRWK\ 5 3D\QH .\OH ( 7LPNHQ 2+,2 38%/,&
'()(1'(5¶62)),&(&ROXPEXV2KLRIRU$SSHOODQW-RQ
:2HENHU2)),&(2)7+($77251(<*(1(5$/2)

-- 1 of 18 --

0DUWLQY0LWFKHOO 1RV
2+,2 &ROXPEXV 2KLR IRU $SSHOOHH (UQHVW 0DUWLQ
0DQVILHOG2KLRSURVH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
6,/(5&LUFXLW-XGJH3HWLWLRQHU(UQHVW0DUWLQDQ2KLR
GHDWKURZLQPDWHDSSHDOVWKHGLVWULFWFRXUW¶VGHQLDORIKLV
SHWLWLRQ IRU D ZULW RI KDEHDV FRUSXV ILOHG SXUVXDQW WR
86&† D 7KHUHVSRQGHQWZDUGHQZLOOEHUHIHUUHGWR
DVWKH³6WDWH´7KLVFRXUWJUDQWHG0DUWLQ¶VDSSOLFDWLRQIRUD
FHUWLILFDWHRIDSSHDODEOLW\ ³&2$´ DOORZLQJUHYLHZRIKLV
FODLPVRISURVHFXWRULDOPLVFRQGXFWLQHIIHFWLYHDVVLVWDQFHRI
FRXQVHODQGVXIILFLHQF\RIWKHHYLGHQFHVXESDUWVRIWKRVH
LVVXHVDQGWKHTXHVWLRQRISURFHGXUDOGHIDXOWDVLWUHODWHVWR
WKHVHLVVXHV)RUWKHUHDVRQVVWDWHGKHUHDIWHUZHDIILUP
%$&.*5281'
2QGLUHFWDSSHDOWKH2KLR6XSUHPH&RXUWVXPPDUL]HGWKH
UHOHYDQWIDFWVDVIROORZV
2Q'HFHPEHU(UQHO)RVWHUDVHFXULW\JXDUG
ZDVUREEHGRIKLVFDOLEHU6PLWK :HVVRQUHYROYHU
0RGHO6HULDO1R'E\DEODFNPDOHZKLOH
ZDLWLQJDWDEXVVWRSRQ(DVWUG6WUHHWDQG.LQVPDQ
$YHQXH)RVWHUWHVWLILHGWKDWKHFKDVHGWKHRIIHQGHUIRU
D EORFN DQG D KDOI DQG ZDV DEOH WR VHH KLV IDFH +H
IXUWKHUQRWHGWKDWWKHRIIHQGHU VKDLUZDVLQVPDOOEUDLGV
2Q)HEUXDU\)RVWHUZDVVXPPRQHGWRWKHSROLFH
VWDWLRQWRYLHZDOLQHXSFRPSRVHGRIVL[EODFNPDOHV
)RVWHU ZDV DEOH WR LGHQWLI\ WKH GHIHQGDQWDSSHOODQW
(UQHVW 0DUWLQ QRWLQJ WKDW KLV KDLU ZDV EUDLGHG LQ WKH
VDPH PDQQHU DV LW DSSHDUHG RQ 'HFHPEHU
/DWHU)RVWHULGHQWLILHGDSSHOODQWLQWKHFRXUWURRPDVWKH
PDQZKRKDGWDNHQKLVZHDSRQ
$SSHOODQW VJLUOIULHQG-RVHSKLQH3HGURWHVWLILHGWKDW
KHKDGWKUHDWHQHGKHUZLWKDJXQHDUOLHUWKDW\HDUWHOOLQJ
KHUWKDWKHKDGVWROHQWKHZHDSRQIURPDVHFXULW\JXDUG
1RV 0DUWLQY0LWFKHOO
7KH UHOHYDQW SDUW RI WKH SURVHFXWRU¶V VWDWHPHQW LV DSSDUHQWO\ QRW
LQFOXGHG LQ WKH MRLQW DSSHQGL[ LQ WKH IRUP RI WULDO WUDQVFULSW 7KH GLVWULFW
FRXUW TXRWHG WKH VWDWHPHQW DV IROORZV
>3URVHFXWRU@ 7KH GHWHFWLYHV LQYHVWLJDWHG WKLV FDVH DW OHQJWK ,
GDUH VD\ WKDW GHIHQVH FRXQVHO FDQQRW WHOO \RX D ZLWQHVV ZKR VDZ
VRPHWKLQJ RU GLG VRPHWKLQJ LQ WKLV FDVH WKDW WKH 6WDWH FRXOG QRW
SUHVHQW DV ZH KDYH KHUH
>'HIHQVH &RXQVHO@ 2EMHFWLRQ \RXU +RQRU WR WKDW VWDWHPHQW
&RXUW 2YHUUXOHG
>3URVHFXWRU@ (YHU\ERG\ DYDLODEOH WHVWLILHG (YHU\ERG\ FRXOG
WHVWLI\ WKH GHIHQGDQW DV WKH SHUSHWUDWRU RI WKH FULPH (YHU\ERG\
WHVWLILHG DQG WKHUH LV QRW LQGLFDWLRQV ZKHQ WKH SROLFH RIILFHU
WHVWLILHG WKDW DQ\RQH RWKHU WKDQ WKH GHIHQGDQW FRPPLWWHG WKH
FULPH 7KDW¶V ZK\ , DP VD\LQJ ZKHQ WKH GHIHQVH FRXQVHO DUJXHV
WR \RX , ZDQW \RX WR EH WKLQNLQJ LI \RX DJUHH WKDW WKLV LV
UHDVRQDEOH WKDW ZRXOG DQ\ FRXQVHO IURP P\ VWDQGSRLQW GHIHQVH
FRXQVHO VD\V ZH SUHVHQWHG HYLGHQFH LQ WKLV FDVH DVN PH LQ P\
PLQG¶V H\H RU WKHP ZKHUH LV WKH HYLGHQFH WKDW VXEVWDQWLDWHV WKH
SRVLWLRQ WKDW \RX DUH DVNLQJ XV WR WDNH
:KHUH LV WKH HYLGHQFH WKDW VXSSRUWV \RXU DUJXPHQW" $QG , DP
JRLQJ WR JR WKURXJK WKH HYLGHQFH QRZ DQG \RX ZLOO ILQG WKDW
WKHUH DUH IDFWV JLYHQ WR \RX E\ YDULRXV ZLWQHVVHV VRPH XQNQRZQ
WR RQH DQRWKHU DQG VR LQWHUUHODWHG DQG VR SRLQWLQJ DW 0U 0DUWLQ
WKDW WKHUH LV QRW GRXEW LQ WKLV FDVH
YLRODWLRQV³(YHU\ERG\DYDLODEOHWHVWLILHG(YHU\ERG\
FRXOGLGHQWLI\WKHGHIHQGDQWDVWKHSHUSHWUDWRURIWKHFULPH
(YHU\ERG\WHVWLILHGDQGWKHUHLVQRLQGLFDWLRQV>VLF@ZKHQWKH
SROLFHRIILFHUWHVWLILHGWKDWDQ\RQHRWKHUWKDQWKHGHIHQGDQW
FRPPLWWHGWKHFULPH´0DUWLQDUJXHVWKDWKHZDVWKHRQO\
SHUVRQWKDWFRXOGKDYHUHIXWHGWKHSURVHFXWRU¶VVWDWHPHQWDQG
WKDWWKHODFNRIHYLGHQFHRIKLVJXLOWPDNHVLWOLNHO\WKDWWKH
VWDWHPHQWFRQWULEXWHGWRKLVSURVHFXWLRQ
7KHJRYHUQPHQWUHLWHUDWHVWKHGLVWULFWFRXUW¶VFRQFOXVLRQ
WKDWZKHQUHDGLQFRQWH[WLWLVDSSDUHQWWKDWWKHSURVHFXWRU¶V
VWDWHPHQWVZHUHUHIHUULQJWRWKHWKRURXJKQDWXUHRIWKHSROLFH
LQYHVWLJDWLRQDQGWKHSUHVHQWDWLRQRIWKHHYLGHQFHJHQHUDWHG
WKHUHIURP7KHGLVWULFWFRXUWDOVRIRXQGWKDWWKHSURVHFXWRU
³ZDVQRWGHVFULELQJWKHHYLGHQFHDVXQFRQWUDGLFWHGE\ WKH
GHIHQVH´ (PSKDVLVLQRULJLQDO 7KH6WDWH¶VDUJXPHQWDOVR

-- 2 of 18 --

0DUWLQY0LWFKHOO 1RV
,,,6XIILFLHQF\RIWKH(YLGHQFH
,QKDEHDVFDVHVZHUHYLHZWKHVXIILFLHQF\RIWKHHYLGHQFH
VXSSRUWLQJ D MXU\ YHUGLFW WKURXJK WKH IUDPHZRUN RI
† G WRGHWHUPLQHZKHWKHUDIWHUYLHZLQJWKHHYLGHQFH
LQWKHOLJKWPRVWIDYRUDEOHWRWKHJRYHUQPHQWDQ\UDWLRQDO
WULHURIIDFWFRXOGKDYHIRXQGWKHHVVHQWLDOHOHPHQWVRIWKH
FULPHEH\RQGDUHDVRQDEOHGRXEW6HH-DFNVRQY9LUJLQLD
86
0DUWLQDUJXHVWKDWWKHHYLGHQFHVXSSRUWLQJKLVFRQYLFWLRQ
ZDVLQVXIILFLHQWEHFDXVH )RVWHU¶VLGHQWLILFDWLRQRIKLPDW
WKHOLQHXSZDVXQUHOLDEOHDQGWDLQWHGE\SROLFHFRPPHQWVWR
)RVWHU WKDW ³ZH >KDYH@ WKH JX\ WKDW UREEHG \RX´ WKH
JRYHUQPHQW SUHVHQWHG YHU\ OLWWOH SK\VLFDO HYLGHQFH
ZLWQHVVHV3HGURDQG+HQGHUVRQZHUHXQUHOLDEOHEHFDXVH
3HGURZDVQRWFKDUJHGIRUKHULQYROYHPHQWDQG+HQGHUVRQ
KDG D JUXGJH DJDLQVW KLP DQG WKH HYLGHQFH GLG QRW
VXSSRUW D ILQGLQJ WKDW KH KDG WKH VSHFLILF LQWHQW WR NLOO
5RELQVRQ
$V DQ LQLWLDO PDWWHU LW PXVW EH QRWHG WKDW ³DWWDFNV RQ
ZLWQHVVFUHGLELOLW\DUHVLPSO\FKDOOHQJHVWRWKHTXDOLW\RIWKH
JRYHUQPHQW V HYLGHQFH DQG QRW WR WKH VXIILFLHQF\ RI WKH
HYLGHQFH´8QLWHG6WDWHVY$GDPR)G WK
&LU 7KXV0DUWLQ¶VDUJXPHQWVZLWKUHJDUGWR3HGUR
DQG+HQGHUVRQDUHPLVSODFHG7KHGLVWULFWFRXUW¶VRSLQLRQ
FRQWDLQV DQ H[KDXVWLYH UHYLHZ RI WKH WULDO HYLGHQFH WKDW
SURYHG0DUWLQ¶VJXLOW7KLVUHFLWDWLRQLVFRQVLVWHQWZLWKWKH
UHFRUGDQGGHPRQVWUDWHVWKDWDUDWLRQDOMXURUFRXOGFRQFOXGH
WKDW0DUWLQFRPPLWWHGWKHFULPHVEH\RQGDUHDVRQDEOHGRXEW
FRQVLVWHQWZLWK-DFNVRQ7KXV0DUWLQ¶VDUJXPHQWLVZLWKRXW
PHULW
,93URVHFXWRULDO0LVFRQGXFW
0DUWLQDUJXHVWKDW³WKH6WDWH¶VFRPPHQWRQ0U0DUWLQ¶V
IDLOXUH WR WHVWLI\ YLRODWHG 0DUWLQ¶V ULJKWV XQGHU WKH )LIWK
6L[WK (LJKWK DQG )RXUWHHQWK $PHQGPHQWV WR WKH 8QLWHG
6WDWHV &RQVWLWXWLRQ´ 0DUWLQ FRPSODLQV WKDW WKH IROORZLQJ
VWDWHPHQW E\ SURVHFXWRU LQ FORVLQJ DUJXPHQW FDXVHG WKHVH
1RV 0DUWLQY0LWFKHOO
DW(DVWUGDQG.LQVPDQ3HGURZURWHGRZQWKHVHULDO
QXPEHURIWKHJXQRQWKHEDFNRIDQHQYHORSHER[7KH
QXPEHU ZDV LGHQWLFDO WR WKH VHULDO QXPEHU RI )RVWHU V
ZHDSRQ H[FHSW WKDW WKH OHWWHU ³'´ KDG EHHQ SXUSRVHO\
WUDQVIRUPHGLQWRD³´3HGURWHVWLILHGWKDWWKLVZDVGRQH
WR PDNH WKH QXPEHU VHTXHQFH ORRN OLNH D WHOHSKRQH
QXPEHULQRUGHUWRZDUGRIIDQ\VXVSLFLRQ
3HGUR IXUWKHU WHVWLILHG WKDW LQ WKH HDUO\ KRXUV RI
-DQXDU\ DSSHOODQW UHYHDOHG D SODQ WR URE
5RELQVRQ V'UXJ6WRUH6KHDWWHPSWHGWRGLVVXDGHKLP
EXWWKHDSSHOODQWWKUHDWHQHGKHULIVKHGLGQRWFRRSHUDWH
LQ WKH UREEHU\ $SSHOODQW WKHQ OHIW WKH DSDUWPHQW DQG
UHWXUQHGDSSUR[LPDWHO\WHQPLQXWHVODWHUZLWKWKHJXQKH
KDGWDNHQIURP)RVWHU
$SSHOODQWGHYLVHGDSODQZKHUHE\3HGURZDVWRJRWR
WKHVWRUHDQGDWWHPSWWREX\PHGLFLQHIRUDFROG:KHQ
5REHUW5RELQVRQRZQHURIWKHVWRUHXQORFNHGWKHGRRU
WRDOORZ3HGUR VHQWUDQFHDSSHOODQWSODQQHGWRIROORZKHU
LQDQGUREWKHSUHPLVHV7KHDSSHOODQWZRUHJUD\SDQWV
WHQQLVVKRHVDQGDZDLVWOHQJWKEODFNOHDWKHUMDFNHW+H
FRYHUHGKLVIDFHZLWKDEURZQNQLWFDSLQZKLFKKHFXW
KROHV IRU KLV H\HV WR DYRLG LGHQWLILFDWLRQ $W
DSSUR[LPDWHO\DP3HGURDUULYHGDWWKHVWRUHDQG
NQRFNHGRQWKHGRRU8SRQUHFRJQL]LQJ3HGUR5RELQVRQ
XQORFNHGWKHGRRUWROHWKHULQ+RZHYHUKHORFNHGWKH
GRRU DJDLQ EHIRUH WKH DSSHOODQW KDG D FKDQFH WR JDLQ
HQWUDQFH$V5RELQVRQVWRRGLQIURQWRIWKHGRRUDIWHU
ORFNLQJLWWZRVKRWVZHUHILUHGWKURXJKWKHGRRUIDWDOO\
ZRXQGLQJ KLP $IWHU ILULQJ WKH VKRWV WKH DSSHOODQW
DOOHJHGO\ZHQWWRWKHDSDUWPHQWWRFKDQJHKLVFORWKHVDQG
WKHQUHWXUQHGWRWKHVWRUHWRILQLVKWKHUREEHU\
0RQW\3DUNH\DQHPSOR\HHRI5RELQVRQZDVLQWKH
EDFNURRPDWWKHWLPHRIWKHVKRRWLQJ$IWHUKHDULQJWKH
VKRWV DQG VHHLQJ ZKDW KDG RFFXUUHG 3DUNH\ FDOOHG DQ
DPEXODQFHDQGWKHSROLFH+HWKHQLQVWUXFWHG3HGURWR
JR WR 5RELQVRQ V KRXVH WR JHW 0UV 5RELQVRQ 3HGUR
FRPSOLHG DQG XSRQ UHWXUQLQJ ZDV LQWHUYLHZHG E\ WKH
SROLFHFRQFHUQLQJWKHHYHQWV6KHJDYHWKHPKHUQDPH
DQG DGGUHVV DQG VWDWHG VKH NQHZ QRWKLQJ DERXW WKH
VKRRWLQJ7KHDSSHOODQWZDVDOVRSUHVHQWDWWKLVWLPHDQG

-- 3 of 18 --

0DUWLQY0LWFKHOO 1RV
WDONHG WR WKH SROLFH 8SRQ FRPSOHWLQJ KHU LQWHUYLHZ
3HGURUHWXUQHGWRKHUDSDUWPHQW
:KHQ 3HGUR UHDFKHG WKH DSDUWPHQW VKH FDOOHG KHU
QHLJKERU/DUU\.LGG$SSHOODQWUHWXUQHGDSSUR[LPDWHO\
WKLUW\ILYHPLQXWHVODWHU3HGURDVNHGDSSHOODQWZKHWKHU
WKHHYHQLQJ VHYHQWVKDGEHHQZRUWKLW+HVKRZHGKHUD
SLOHRIELOOVXQGHUDEODQNHWZKLFKKHWKHQWRRNLQWRWKH
EDWKURRPDQGH[SODLQHGWKDWKHKDGVWROHQEHWZHHQ
DQGIURPWKHVWRUH
$SSHOODQW WKHQ GURYH .LGG DQG 3HGUR WR DQ ³DIWHU
KRXUV´VSRWIRUGULQNV$IWHUWKH\VDWGRZQDWWKHWDEOH
DSSHOODQWWRRNWZRVSHQWFDUWULGJHVIURPKLVSRFNHWDQG
SODFHGWKHPRQWKHWDEOH.LGGUHPDUNHG³ >0@XVW
EHDQLJKWRIWKHGXFHV>VLF@\RXJRWDGXFH>VLF@DQGD
TXDUWHUDQG0U5RELQVRQJRWVKRWWZLFHDQG\RXJRW
WZR FDUWULGJHV´ $SSHOODQW GLG QRW UHVSRQG WR WKLV
FRPPHQW
6HYHUDO GD\V DIWHU WKH VKRRWLQJ WKH SROLFH DJDLQ
TXHVWLRQHG3HGURDQGDSSHOODQW%\WKLVWLPHWKHWZRKDG
SXWWRJHWKHUDVWRU\IRUWKHSROLFHWKDW3HGURKDGJRQHWR
WKHVWRUHWRJHWFRXJKPHGLFLQHZKHQWKHGHFHDVHGZDV
VKRWDQGWKDWDSSHOODQWRQO\FDPHWRWKHVWRUHDIWHUVKH
KDGEHHQJRQHIRUDQXQXVXDOO\ORQJWLPH2Q-DQXDU\
WKH SROLFH UHWXUQHG DQG DUUHVWHG 3HGUR DQG
DSSHOODQWIRUWKHPXUGHURI5RELQVRQ$IWHUVHYHUDOGD\V
LQMDLO3HGURWROGWKHSROLFHWKDWVKHKDGKHOSHGVHWXS
WKHUREEHU\E\JRLQJWRWKHVWRUHDQGWKDWWKHDSSHOODQW
KDG VKRW WKH GHFHDVHG 6RRQ DIWHUZDUGV DSSHOODQW V
IDWKHU FRQWDFWHG 3HGUR DVNLQJ KHU WR FKDQJH KHU
VWDWHPHQW :KLOH YLVLWLQJ DSSHOODQW LQ MDLO DSSHOODQW V
IDWKHUDJDLQDVNHG3HGURWRFKDQJHKHUVWRU\'XULQJWKH
WULDO WKH VWDWH LQWURGXFHG D OHWWHU GDWHG )HEUXDU\
ZKHUHLQDSSHOODQWDVNHG3HGURWR³WHOOWKHWUXWK´
DQG LPSOLFDWH D PDQ QDPHG ³6OLP´ IRU WKH
PXUGHUUREEHU\RI5RELQVRQ$QDGGLWLRQDOOHWWHUGDWHG
)HEUXDU\LQZKLFKDSSHOODQWDJDLQDVNHGKHUWR
LPSOLFDWH ³6OLP´ ZDV DOVR LQWURGXFHG LQWR HYLGHQFH
3HGURKDVFRQWLQXDOO\GHQLHGWKDW³6OLP´KDGDQ\WKLQJWR
GRZLWKWKHVHFULPHV
1RV 0DUWLQY0LWFKHOO
DVVLVWDQFHRIFRXQVHO7KH6WDWHSRLQWVRXWWKDWRQFHVXFKD
UHSRUWLVUHTXHVWHG2KLR5HY&RGH† ' UHTXLUHV
WKDWLWEHIXUQLVKHGWRWKHFRXUWWKHWULDOMXU\LIDSSOLFDEOHWKH
SURVHFXWRUDQGWKHRIIHQGHURUKLVFRXQVHO7KLVUHTXLUHPHQW
DOVRDSSOLHVWRWKHSV\FKLDWULFUHSRUW7KXVDUHTXHVWIRUWKH
UHSRUWVLQYROYHVWKHW\SHRIVWUDWHJLFGHFLVLRQWKDW6WULFNODQG
86 DW KROGV VKRXOG QRW EH VHFRQGJXHVVHG
0DUWLQ¶VFRXQVHOGLGQRWNQRZWKDW WKLVVSHFLILFVWDWHPHQW
ZRXOG EH LQ WKH SUHVHQWHQFH UHSRUW DQG WKHLU VWUDWHJLF
GHFLVLRQ WR UHTXHVW LW VKRXOG QRW EH VHFRQGJXHVVHG 7KH
VDPH UHDVRQLQJ LV DSSOLFDEOH WR WKH FRQFOXVLRQV RI WKH
SV\FKRORJLFDOUHSRUW%HFDXVHUDLVLQJWKHHIIHFWLYHQHVVRIKLV
WULDO FRXQVHO ZLWK UHJDUG WR WKHVH UHSRUWV RQ GLUHFW DSSHDO
ZRXOGKDYHEHHQIUXLWOHVVZHFDQQRWIDXOW0DUWLQ¶VDSSHOODWH
FRXQVHOIRUQRWGRLQJVR
&$SSHOODWH&RXQVHO
0DUWLQ DUJXHV WKDW KLV DSSHOODWH FRXQVHO UHQGHUHG
LQHIIHFWLYHDVVLVWDQFHE\IDLOLQJWRPDNHWKHWUDQVFULSWRIWKH
SURFHHGLQJVRQKLVPRWLRQIRUDQHZWULDOSDUWRIWKHUHFRUGRQ
KLV GLUHFW DSSHDO 9LHZLQJ WKLV FODLP LQ WKH IUDPHZRUN
RXWOLQHGLQ0DSHVTXRWHGDERYHLWODFNVPHULWEHFDXVHLWV
XQGHUO\LQJ SUHPLVHV WKDW FRXQVHO LQHIIHFWLYHO\ IDLOHG WR
SURFXUH5LHYHV%H\¶VWHVWLPRQ\DQGWKDWWKHWHVWLPRQ\ZRXOG
KDYHFKDQJHGWKHRXWFRPHRIWKHWULDOLVLQFRUUHFW
$VGLVFXVVHGSUHYLRXVO\ERWKSDUWLHVDWWHPSWHGWRORFDWH
5LHYHV%H\LQWLPHWRWHVWLI\DWWULDO+HJDYHLQFRQVLVWHQW
VWDWHPHQWVDQGWHVWLPRQ\DERXWWKHSK\VLFDOGHVFULSWLRQRIWKH
PDQKHVDZIOHHIURPWKHFULPHVFHQHVWDWHGWKDW0DUWLQZDV
QRWWKHIOHHLQJPDQDQGWKDWWKHSROLFHKDGWKHZURQJPDQ
KRZHYHUKLVRWKHUWHVWLPRQ\FRUURERUDWHG3HGUR¶VYHUVLRQ
DQGVHTXHQFHRIWKHHYHQWVZKLFKZDVKLJKO\LQFULPLQDWLQJ
$WEHVWKHZDVDSUREOHPDWLFZLWQHVVEHFDXVHRIKLVDGPLWWHG
GUXJ XVH DQG WKH HIIHFW KH DGPLWV LW KDG RQ KLV PHPRU\
0DUWLQFDQQRWVKRZSUHMXGLFHDV5LHYHV%H\¶VWHVWLPRQ\ZDV
LQFULPLQDWLQJ DQG ZRXOG QRW KDYH DLGHG KLV GHIHQVH
$FFRUGLQJO\WKLVFODLPLVZLWKRXWPHULW

-- 4 of 18 --

0DUWLQY0LWFKHOO 1RV
86DW6&W.RUGHQEURFN)GDW
$V0DSHVSRLQWVRXWWKLVLQVWUXFWLRQDFFXUDWHO\
GHVFULEHV2KLRODZ7KHUHLVQRHUURUZLWKUHJDUGWRWKLV
LQVWUXFWLRQ
,G7KLVKROGLQJDOVRUHIOHFWVWKHVWDWHRI2KLRODZDWWKHWLPH
RI0DUWLQ¶VVHQWHQFLQJDQGWKXVWKLVDUJXPHQWLVZLWKRXW
PHULW
3UHVHQWHQFHLQYHVWLJDWLRQDQGSV\FKLDWULFFOLQLFUHSRUW
,Q 0DUWLQ¶V ILQDO VXEFODLP LQYROYLQJ DOOHJDWLRQV RI
LQHIIHFWLYH DVVLVWDQFH RI WULDO FRXQVHO DW VHQWHQFLQJ KH
FRQWHQGV WKDW KLV FRXQVHO LQHIIHFWLYHO\ DJUHHG WR WKH
SURGXFWLRQ RI D SUHVHQWHQFH UHSRUW DQG SV\FKRORJLFDO
HYDOXDWLRQ7KHSUHVHQWHQFHLQYHVWLJDWLRQUHSRUWFRQWDLQHG
WKHIROORZLQJVWDWHPHQWFRQFHUQLQJWKHLPSDFWRIWKHFULPHRQ
WKHYLFWLP¶VZLIH³0UV5RELQVRQZDVYHU\DEUXSWLQKHU
FRPPHQWVDQGYHU\GUDPDWLFLQGLFDWLQJμ+HVKRWP\KXVEDQG
LQWKHEDFNKHLVDVNXQNDQGKHQHHGVWRJHWWKHHOHFWULF
FKDLU¶´0DUWLQDUJXHVWKDWWKLVVWDWHPHQWLVXQFRQVWLWXWLRQDO
XQGHU 3D\QH Y 7HQQ 86 ZKLFK
RYHUUXOHG%RRWKY0DU\ODQG86 EXWOHIW
LQWDFWLWVSURKLELWLRQDJDLQVWVXFKVWDWHPHQWV$OWKRXJK0UV
5RELQVRQ¶V VWDWHPHQW ZDV VRPHZKDW LQIODPPDWRU\ WKH
SUHVHQWDWLRQRIWKHUHSRUWVDOVRDOORZHG0DUWLQWRSUHVHQWKLV
GHIHQVH RI WKH FKDUJHV ZLWKRXW EHLQJ VXEMHFWHG WR FURVV
H[DPLQDWLRQ %RWK UHSRUWV UHODWH WKDW 0DUWLQ GHQLHG WKH
UREEHU\DQGWKHKRPLFLGH7KHSUHVHQWHQFHLQYHVWLJDWLRQDOVR
HODERUDWHGRQPRUHVSHFLILFSDUWVRIKLVGHIHQVHVXFKDVWKH
DSSHDUDQFHRI³6OLP´ZLWK3HGURQHDUWKHWLPHRIWKHFULPH
:HDUHFDUHIXOWRSRLQWRXWWKDW0DUWLQKDVDUJXHGWKLVLVVXH
LQ WHUPV RI ZKHWKHU KLV WULDO FRXQVHO UHQGHUHG LQHIIHFWLYH
DVVLVWDQFHE\UHTXHVWLQJWKHVHUHSRUWVDQGZKHWKHUDSSHOODWH
FRXQVHO UHQGHUHG LQHIIHFWLYH DVVLVWDQFH E\ QRW PDNLQJ DQ
LVVXHRIWKHUHTXHVWVIRUWKHUHSRUWVRQDSSHDO,QWKLVFRQWH[W
HYHQ LI ZH DVVXPHG WKDW WKH LQFOXVLRQ RI 0UV 5RELQVRQ¶V
VWDWHPHQWUDQDIRXORI3D\QHDQG%RRWKWKLVFODLPLVZLWKRXW
PHULW LQ WKH IRUP LQ ZKLFK LW LV SUHVHQWHG LQHIIHFWLYH
1RV 0DUWLQY0LWFKHOO
7KH VWDWH DOVR RIIHUHG DQRWKHU OHWWHU LQWR HYLGHQFH
ZKLFKKDGEHHQZULWWHQE\WKHDSSHOODQWWR3HGURZKHQ
KH ZDV LQ MDLO LQ )HEUXDU\ IRU DQRWKHU RIIHQVH
3HGURLGHQWLILHGWKHOHWWHUDQGUHDGLWLQWRWKHUHFRUG7KH
OHWWHUDVNHG3HGURWROLHIRUDSSHOODQWDQGWRLPSOLFDWH
VRPHRQH HOVH IRU WKH FRPPLVVLRQ RI WKH RIIHQVH IRU
ZKLFKWKHDSSHOODQWZDVFKDUJHG3HGURDGPLWWHGO\LQJ
IRUWKHDSSHOODQWSXUVXDQWWRWKHOHWWHULQWKHSUHYLRXV
WULDOIRUWKHRWKHURIIHQVH
)LQDOO\$QWRLQHWWH+HQGHUVRQWHVWLILHGWKDWVKHOLYHG
ZLWK3HGURIRUDERXWILYHRUVL[PRQWKVXQWLOWKHPLGGOH
RI 'HFHPEHU 'XULQJ 'HFHPEHU VKH KHDUG WKH
DSSHOODQW VD\ KH ZDV JRLQJ WR URE 5RELQVRQ V VWRUH
$SSHOODQWWKUHDWHQHGKHUZLWKDJXQZDUQLQJKHUWKDWVKH
KDGEHWWHUQRWWHOODQ\RQHRIKLVSODQ
'XULQJWKHWULDOWKHGHIHQVHSUHVHQWHGQRZLWQHVVHVEXW
VRXJKWWRLQWURGXFHLQWRHYLGHQFHZULWWHQVWDWHPHQWVRI
3HGUR DQG +HQGHUVRQ 7KH FRXUW GHQLHG WKLV UHTXHVW
ILQGLQJWKHZULWWHQVWDWHPHQWVZHUHQRWLQFRQVLVWHQWDV
DOOHJHGE\WKHGHIHQVH
7KHMXU\IRXQGWKHDSSHOODQWJXLOW\RIWKHDJJUDYDWHG
UREEHU\RI(UQHO)RVWHUDQGRIWKHDJJUDYDWHGUREEHU\
DQG DJJUDYDWHG PXUGHU RI 5REHUW 5RELQVRQ ZLWK WKH
VSHFLILFDWLRQ RI EHLQJ WKH SULQFLSDO RIIHQGHU RI WKH
DJJUDYDWHG PXUGHU ZKLOH FRPPLWWLQJ RU DWWHPSWLQJ WR
FRPPLWDJJUDYDWHGUREEHU\$IWHUWKHPLWLJDWLRQKHDULQJ
ZDV FRQGXFWHG WKH MXU\ UHFRPPHQGHG WKDW DSSHOODQW
UHFHLYHWKHGHDWKSHQDOW\2Q-XO\WKHWULDOFRXUW
VHQWHQFHGDSSHOODQWWRGHDWK2Q-XO\DSSHOODQW
ILOHG D PRWLRQ IRU D QHZ WULDO 2Q 0D\ WKH
PRWLRQZDVGHQLHG2Q0D\WKHFRXUWILOHGLWV
UHTXLUHGMXGJPHQWHQWU\DQGVHSDUDWHRSLQLRQSXUVXDQW
WR 5& ) ILQGLQJ WKDW WKH DJJUDYDWLQJ
FLUFXPVWDQFHVRXWZHLJKHGWKHPLWLJDWLQJIDFWRUV7KH
IROORZLQJ GD\ WKH WULDO FRXUW ILOHG LWV RSLQLRQ RQ WKH
PRWLRQIRUDQHZWULDO
2Q$XJXVWDSSHOODQWDSSHDOHGKLVFRQYLFWLRQ
WRWKHFRXUWRIDSSHDOV7KHFRXUWRIDSSHDOVDIILUPHGWKH
VHQWHQFHRIWKHWULDOFRXUWDQGLVVXHGDVHSDUDWHRSLQLRQ
DVUHTXLUHGE\5& $ RQ6HSWHPEHU

-- 5 of 18 --

0DUWLQY0LWFKHOO 1RV
6WDWHY0DUWLQ1(G 2KLR
(-5LHYHV%H\OLYHGDFURVVWKHVWUHHWIURPWKHYLFWLP¶V
VWRUHDQGZLWQHVVHGVRPHRQHUXQQLQJDZD\IURPWKHVFHQH
DIWHUKHDULQJVKRWVILUHG:LWKLQWZRZHHNVRIWKHNLOOLQJKH
JDYHDVWDWHPHQWWRWKH&OHYHODQGSROLFHGHVFULELQJWKHPDQ
KHVDZIOHHLQJDV DQGOEVURXJKO\PDWFKLQJ0DUWLQ
$SSUR[LPDWHO\ D PRQWK ODWHU KH WROG D FRXUWDSSRLQWHG
LQYHVWLJDWRUWKDWWKH PDQZDV³$ERXWVL[IRRWWZRPD\EH
WKUHH0D\EHDERXWSRXQGV´+HDOVRVWDWHG³,
NQRZ KH¶V WDOOHU WKDQ (UQHVW 0DUWLQ DQG (UQHVW 0DUWLQ LV
VPDOOHUZD\VPDOOHU´
7KH6WDWHVXESRHQDHG5LHYHV%H\WRWHVWLI\EXWKHDUULYHG
MXVWDVMXU\GHOLEHUDWLRQVEHJDQ7KH6WDWHVRXJKWWRUHRSHQ
LWVFDVHDQGSUHVHQWWKHWHVWLPRQ\RI5LHYHV%H\7KHGHIHQVH
VXFFHVVIXOO\REMHFWHGDQGGHOLEHUDWLRQVFRQWLQXHG
$WWKHKHDULQJRQ0DUWLQ¶VPRWLRQIRUDQHZWULDO5LHYHV
%H\ GHVFULEHG WKH PDQ KH VDZ IOHHLQJ IURP WKH VFHQH DV
³DERXWVL[IRRWSRXQGV´+HDOVRVWDWHGWKDWWKHPDQZDV
ZHDULQJ³DEODFNFRDWDQGDEURZQPDVNDQGVRUWRIDKDW´
+HWHVWLILHGWKDWVHYHUDOPLQXWHVDIWHUKHVDZWKHIOHHLQJPDQ
KHVDZ0DUWLQZDONLQJWRZDUGWKHFULPHVFHQHDQGWKDWKH
ZDV ZHDULQJ ³>D@ EURZQ ORQJ FRDW OLJKWHU D EURZQ FRDW´
7KLVGHVFULSWLRQFRUURERUDWHG3HGUR¶VWHVWLPRQ\WKDW0DUWLQ
ZRUHDEODFNOHDWKHUMDFNHWDQGEURZQPDVNZLWKKROHVFXWIRU
H\HVSULRUWRDQGGXULQJWKHFULPHDQGWKDWZKHQKHUHWXUQHG
WRWKHVWRUHDIWHUWKHVKRRWLQJKHZRUHD³ORQJJUH\FRDW´
5LHYHV%H\ JDYH D GHSRVLWLRQ IRU SXUSRVHV RI
0DUWLQ¶VKDEHDVDFWLRQ+HZDVLQFDUFHUDWHGDWWKHWLPH+H
LQVLVWHGWKDW0DUWLQ³ZDVQ¶WWKHPDQ´WKDWKHVDZIOHHLQJWKH
VFHQH'XULQJWKHGHSRVLWLRQKHDGPLWWHGWKDWKLVFRFDLQH
DGGLFWLRQ KDG LPSDLUHG KLV PHPRU\ DQG WKDW KH FRXOGQ¶W
UHPHPEHUJLYLQJWHVWLPRQ\LQDERXWWKHFDVH
7KH8QLWHG6WDWHV6XSUHPH&RXUWGHQLHG0DUWLQ¶VSHWLWLRQ
IRUDZULWRIFHUWLRUDULVHH0DUWLQY2KLR86
DQGODWHUKLVSHWLWLRQIRUUHKHDULQJ6HH0DUWLQY
2KLR 86 7KHUHDIWHU 0DUWLQ
1RV 0DUWLQY0LWFKHOO
)DLOXUHWRREMHFWWRMXU\LQVWUXFWLRQV
7KLVFODLPGRHVQRWLQYROYHHYLGHQFHGHKRUVWKHUHFRUG
ZDV QRW UDLVHG RQ 0DUWLQ¶V GLUHFW DSSHDO DQG WKXV LV
SURFHGXUDOO\GHIDXOWHG+RZHYHUZHZLOOUHYLHZWKHPHULWV
RIWKHVHLVVXHVIRUSXUSRVHVRIFDXVHDQGSUHMXGLFHDQDO\VLV
0DUWLQ DUJXHV WKDW KLV FRXQVHO UHQGHUHG LQHIIHFWLYH
DVVLVWDQFHE\IDLOLQJWRREMHFWWRMXU\LQVWUXFWLRQVZKLFKKH
FRQWHQGVZHUHFRQVWLWXWLRQDOO\LQILUPSXUVXDQWWR&DOGZHOOY
0LVVLVVLSSL 86 EHFDXVH WKH\ DOOHJHGO\
LPSURSHUO\ OHG WKH MXU\ WR EHOLHYH WKDW WKH XOWLPDWH
UHVSRQVLELOLW\IRUWKHLPSRVLWLRQRIGHDWKOD\HOVHZKHUHE\
VWDWLQJWKDWWKHMXU\RQO\UHFRPPHQGHGWKHGHDWKSHQDOW\WR
WKHMXGJH2XUFRXUWUHFHQWO\UHMHFWHGWKLVDUJXPHQWLQ6FRWW
Y0LWFKHOO)G WK&LU DVIROORZV
:HIXUWKHUFRQFOXGHKRZHYHUWKDWWKHGLVWULFWFRXUW
FRUUHFWO\ GHWHUPLQHG WKDW QHLWKHU RI WKHVH FODLPV KDG
PHULW 7KH WULDO MXGJH LQVWUXFWHG WKH MXU\ WKDW LWV
UHFRPPHQGDWLRQ RI GHDWK ZRXOG EH ³MXVW WKDWD
UHFRPPHQGDWLRQ´ ZKLOH D UHFRPPHQGDWLRQ RI OLIH
LPSULVRQPHQW ³LV ELQGLQJ XSRQ WKH &RXUW DQG , WKH
-XGJHPXVWLPSRVHWKHVSHFLILFOLIHVHQWHQFHZKLFK\RX
UHFRPPHQG´6FRWWFODLPVWKDWWKLVYLRODWHVWKHSULQFLSOH
HVWDEOLVKHGLQ&DOGZHOOY0LVVLVVLSSL86
6&W/(GG WKDWFRXUWVPXVWQRW
PLVOHDGWKHMXU\LQWREHOLHYLQJLWKDVOHVVUHVSRQVLELOLW\
WKDQLWDFWXDOO\GRHVIRUFKRRVLQJWKHGHDWKVHQWHQFH
:H UHFHQWO\ UHMHFWHG WKLV SUHFLVH FODLP LQ 0DSHV Y
&R\OH)G WK&LU 0RUHRYHU
DVWKHGLVWULFWFRXUWFRUUHFWO\KHOG&DOGZHOOLVOLPLWHGWR
VLWXDWLRQVLQZKLFKWKHMXU\LVPLVOHGDVWRLWVUROH³LQD
ZD\WKDWDOORZV>LW@WRIHHOOHVVUHVSRQVLEOHWKDQLWVKRXOG
IRUWKHVHQWHQFLQJGHFLVLRQ7KXVWRHVWDEOLVKD&DOGZHOO
YLRODWLRQ D GHIHQGDQW QHFHVVDULO\ PXVW VKRZ WKDW WKH
UHPDUNV WR WKH MXU\ LPSURSHUO\ GHVFULEHG WKH UROH
DVVLJQHGWRWKHMXU\E\ORFDOODZ´5RPDQRY2NODKRPD
86 6&W /(GG
FLWDWLRQVDQGDOWHUDWLRQVRPLWWHG VHHDOVR'XJJHU

-- 6 of 18 --

0DUWLQY0LWFKHOO 1RV
% WKHIDFWVXQGHUO\LQJWKHFODLPZRXOGEHVXIILFLHQW
WRHVWDEOLVKE\FOHDUDQGFRQYLQFLQJHYLGHQFHWKDWEXWIRU
FRQVWLWXWLRQDOHUURUQRUHDVRQDEOHIDFWILQGHUZRXOGKDYH
IRXQGWKHDSSOLFDQWJXLOW\RIWKHXQGHUO\LQJRIIHQVH
$V VWDWHG DERYH WKHVH LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO
FODLPVZHUHQRWUDLVHGGXULQJ0DUWLQ¶VGLUHFWDSSHDO7KH
2KLRFRXUWVGHFOLQHGWRUHYLHZWKHVHFODLPVIRUWKLVIDLOXUH
6HH3HUU\1(GDW&ROH1(GDW
0DUWLQ KDV ³IDLOHG WR GHYHORS WKH IDFWXDO EDVLV RI >WKHVH@
FODLP>V@LQ6WDWHFRXUWSURFHHGLQJV´† H DQGWKXV
DKHDULQJLVRQO\ZDUUDQWHGLIKHKDVVKRZQWKDWKLVFODLPVILW
WKHH[FHSWLRQVLQ† H $ RU %
6HFWLRQ V6XEVHFWLRQ H $ L LVQRWDSSOLFDEOHWR
WKLVFODLP7KHUHIRUHDKHDULQJZRXOGEHZDUUDQWHGRQO\LI
0DUWLQKDVSURYLGHGWKHUHTXLVLWHVKRZLQJWKDW³>WKLV@FODLP
UHOLHVRQ LL DIDFWXDOSUHGLFDWHWKDWFRXOGQRWKDYHEHHQ
SUHYLRXVO\GLVFRYHUHGWKURXJKWKHH[HUFLVHRIGXHGLOLJHQFH
DQG % WKHIDFWVXQGHUO\LQJWKHFODLPZRXOGEHVXIILFLHQWWR
HVWDEOLVK E\ FOHDU DQG FRQYLQFLQJ HYLGHQFH WKDW EXW IRU
FRQVWLWXWLRQDO HUURU QR UHDVRQDEOH IDFWILQGHU ZRXOG KDYH
IRXQGWKHDSSOLFDQWJXLOW\RIWKHXQGHUO\LQJRIIHQVH´
0DUWLQKDVQRWDWWHPSWHGWRVKRZWKDWWKHIDFWXDOSUHGLFDWH
WR KLV FODLP RI LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO DW WKH
PLWLJDWLRQSKDVHFRXOG³QRWKDYHEHHQSUHYLRXVO\GLVFRYHUHG
WKURXJKWKHH[HUFLVHRIGXHGLOLJHQFH´+LVEULHIDWWHPSWHGQR
VXFKVKRZLQJDQGDWRUDODUJXPHQWKLVFRXQVHOFRXOGQRW
H[SODLQZK\QHDUO\\HDUVKDGSDVVHGZLWKRXWDQDWWHPSWWR
GHSRVHLQWHUYLHZRURWKHUZLVHFRQWDFW0DUWLQ¶VWULDOFRXQVHO
/LNHZLVH0DUWLQ¶VIDLOXUHWRSRLQWWRPLWLJDWLQJHYLGHQFHWKDW
SUHVXPDEO\ VKRXOG KDYH EHHQ EXW ZDV QRW SUHVHQWHG DW
VHQWHQFLQJLHKLVIDLOXUHWRVKRZSUHMXGLFHPDNHVLWFOHDU
WKDWKHKDVQRWPHWWKHUHTXLUHPHQWRI† H % 7KXV
0DUWLQLVQRWHQWLWOHGWRDQHYLGHQWLDU\KHDULQJZLWKUHJDUGWR
WKLVFODLP
1RV 0DUWLQY0LWFKHOO
XQVXFFHVVIXOO\H[KDXVWHGKLVUHPDLQLQJSRVWFRQYLFWLRQVWDWH
FRXUWUHPHGLHVDQGDSSHDOV
,Q0DUWLQILOHGDPRWLRQIRUVWD\RIH[HFXWLRQDQG
DSSRLQWPHQWRITXDOLILHGIHGHUDOFRXQVHOLQWKHGLVWULFWFRXUW
,Q0DUWLQILOHGKLVSHWLWLRQIRUDZULWRIKDEHDVFRUSXV
LQWKHGLVWULFWFRXUW7KHGLVWULFWFRXUWGHQLHGKLVSHWLWLRQDQG
D FHUWLILFDWH RI DSSHDODELOLW\ RQ 1RYHPEHU ,Q
)HEUXDU\LWGHQLHGKLVPRWLRQIRUDPHQGHGMXGJPHQW
,Q 1RYHPEHU ZH JUDQWHG 0DUWLQ¶V DSSOLFDWLRQ IRU D
FHUWLILFDWH RI DSSHDODEOLW\ WR UHYLHZ KLV FODLPV RI
SURVHFXWRULDO PLVFRQGXFW LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO
DQGVXIILFLHQF\RIWKHHYLGHQFH
,QVXP0DUWLQPDNHVWKHIROORZLQJFODLPV $ LQHIIHFWLYH
DVVLVWDQFHRIWULDOFRXQVHO+HUEHUW$GULQHDQG-DPHV&DUQHV
IRUWKHLUIDLOXUHWR FKDOOHQJH0DUWLQ¶VZDUUDQWOHVVDUUHVW
LQYHVWLJDWHDQGRWKHUZLVHSUHSDUHIRUWULDO LQWHUYLHZ
ZLWQHVVHV VXESRHQD 5LHYHV%H\ HIIHFWLYHO\ FURVV
H[DPLQHZLWQHVVHV LQYHVWLJDWHDQGRWKHUZLVHSUHSDUHIRU
WKHPLWLJDWLRQSKDVH REMHFWWRMXU\LQVWUXFWLRQV REMHFW
WRWKHXVHRISUHVHQWHQFHLQYHVWLJDWLRQDQGSV\FKLDWULFFOLQLF
UHSRUWVDWPLWLJDWLRQ % LQHIIHFWLYHDVVLVWDQFHRIDSSHOODWH
FRXQVHOIRUIDLOLQJWRPDNHWKHWUDQVFULSWRIKLVKHDULQJRQKLV
PRWLRQIRUDQHZWULDOSDUWRIWKHUHFRUGRQKLVGLUHFWDSSHDO
& SURVHFXWRULDO PLVFRQGXFW DW WULDO E\ LPSURSHUO\
FRPPHQWLQJRQKLVIDLOXUHWRWHVWLI\DQG ' LQVXIILFLHQF\RI
WKHHYLGHQFHVXSSRUWLQJKLVFRQYLFWLRQ
67$1'$5'2)5(9,(:
%HFDXVH0DUWLQILOHGKLVKDEHDVSHWLWLRQRQ-XQH
RXUUHYLHZ LV JRYHUQHGE\WKH$QWLWHUURULVPDQG(IIHFWLYH
'HDWK3HQDOW\$FWRI3XE/1R6WDW
³$('3$´ 6HH/LQGKY0XUSK\86

$IHGHUDOFRXUWLVDXWKRUL]HGWRJUDQWDZULWRIKDEHDV
FRUSXVWRDSHUVRQLQFXVWRG\SXUVXDQWWRDVWDWHFRXUW
MXGJPHQWEXWRQO\LIWKHDGMXGLFDWLRQRIWKHFODLP

-- 7 of 18 --

0DUWLQY0LWFKHOO 1RV
UHVXOWHG LQ D GHFLVLRQ WKDW ZDV FRQWUDU\ WR RU
LQYROYHG DQ XQUHDVRQDEOH DSSOLFDWLRQ RI FOHDUO\
HVWDEOLVKHG )HGHUDO ODZ DV GHWHUPLQHG E\ WKH
6XSUHPH&RXUWRIWKH8QLWHG6WDWHVRU UHVXOWHG
LQ D GHFLVLRQ WKDW ZDV EDVHG RQ DQ XQUHDVRQDEOH
GHWHUPLQDWLRQRIWKHIDFWVLQOLJKWRIWKHHYLGHQFH
SUHVHQWHGLQWKH6WDWHFRXUWSURFHHGLQJ
86&† G
7KH6XSUHPH&RXUWKDVGHFODUHGWKDW³DIHGHUDOKDEHDV
FRXUW PDNLQJ WKH μXQUHDVRQDEOH DSSOLFDWLRQ¶ LQTXLU\
VKRXOGDVNZKHWKHUWKHVWDWHFRXUW VDSSOLFDWLRQRIFOHDUO\
HVWDEOLVKHGIHGHUDOODZZDVREMHFWLYHO\XQUHDVRQDEOH´
:LOOLDPV Y 7D\ORU 86 ,Q LWV
HODERUDWLRQ RQ WKH PHDQLQJ RI WKH WHUP ³REMHFWLYHO\
XQUHDVRQDEOH´ WKH &RXUW VWDWHG WKDW ³D IHGHUDO KDEHDV
FRXUWPD\QRWLVVXHWKHZULWVLPSO\EHFDXVHWKDWFRXUW
FRQFOXGHVLQLWVLQGHSHQGHQWMXGJPHQWWKDWWKHUHOHYDQW
VWDWHFRXUW GHFLVLRQ DSSOLHG FOHDUO\ HVWDEOLVKHG IHGHUDO
ODZHUURQHRXVO\RULQFRUUHFWO\5DWKHUWKDWDSSOLFDWLRQ
PXVW DOVR EH XQUHDVRQDEOH´ ,G DW )LQDOO\ D
GLVWULFWFRXUW VGHQLDORIWKHZULWLVVXEMHFWWRGHQRYR
UHYLHZ6HH5RJHUVY+RZHV )G WK
&LU
:LOVRQY0LWFKHOO)G WK&LU :H
UHYLHZWKHGLVWULFWFRXUW¶VILQGLQJVRIIDFWRQDGLVSRVLWLRQRI
DSHWLWLRQIRUDZULWRI KDEHDVFRUSXVIRUFOHDUHUURU6HH
&RQHY%HOO)G WK&LU
+DEHDVFRUSXVUHOLHILVDYDLODEOHRQO\LIWKHDSSOLFDQWILUVW
H[KDXVWV UHPHGLHV DYDLODEOH LQ VWDWH FRXUW 6HH 86&
† E $ ³,IWKHVWDWHFRXUWDGMXGLFDWHVDQGUHMHFWVD
FODLPRQDGHTXDWHDQGLQGHSHQGHQWVWDWHJURXQGVVXFKDVD
VWDWHSURFHGXUDOUXOHWKDWSUHFOXGHVDGMXGLFDWLQJWKHFODLPRQ
WKHPHULWVWKHSHWLWLRQHULVEDUUHGE\WKLVSURFHGXUDOGHIDXOW
IURPVHHNLQJIHGHUDOKDEHDVUHYLHZRIVXFKFODLPXQOHVVWKH
SHWLWLRQHUFDQVKRZμFDXVHDQGSUHMXGLFH¶IRUWKH GHIDXOW´
6HH&RQH)GDW FLWLQJ&ROHPDQY7KRPSVRQ
86 :DLQZULJKWY6\NHV86

1RV 0DUWLQY0LWFKHOO
³SV\FKRORJLFDOZRUNXS´LVDOVRLQFOXGHGLQWKHTXDQWXPRI
FRXQVHO¶VSUHSDUDWLRQIRUDQGSHUIRUPDQFHDWWKHPLWLJDWLRQ
SKDVH
7KH DIILGDYLWV RI 0DUWLQ¶V IDPLO\ PHPEHUV VWDWH WKHLU
ZLOOLQJQHVVWRWHVWLI\DWKLVVHQWHQFLQJEXWGRQRWVKRZZKDW
PLWLJDWLQJ HYLGHQFH ZRXOG KDYH EHHQ SUHVHQWHG KDG WKH\
WHVWLILHG $OWKRXJK 0DUWLQ KDV PDGH DQ DWWHPSW WR VKRZ
SUHMXGLFH ZLWK UHJDUG WR PLWLJDWLQJ HYLGHQFH DERXW KLV
EDFNJURXQG DQG SV\FKRORJLFDO PDNHXS HYLGHQFH RI KLV
EDFNJURXQG ZDV SUHVHQWHG DQG KH KDV QRW SRLQWHG WR
PLWLJDWLQJ SV\FKRORJLFDO HYLGHQFH WKDW VKRXOG KDYH EHHQ
SUHVHQWHG7KXVKHKDVQRWVKRZQSUHMXGLFHDQGKLVFODLPV
DUHZLWKRXWPHULW
0DUWLQ¶V EULHIV GLG QRW WDNH LVVXH ZLWK WKH ODFN RI DQ
HYLGHQWLDU\KHDULQJLQWKHGLVWULFWFRXUWZLWKUHJDUGWRWKHVH
VSHFLILFFODLPV,QKLV5XOH H PRWLRQIRUDQ DPHQGHG
MXGJPHQWKHFRPSODLQHGJHQHUDOO\DERXWWKHGLVWULFWFRXUW¶V
DSSOLFDWLRQ RI $('3$ WR KLV SHWLWLRQ DQG VWDWHG WKDW WKH
DSSOLFDWLRQRIWKHVWDQGDUGVIRUGHFLGLQJWKHQHFHVVLW\RIDQ
HYLGHQWLDU\KHDULQJLQ† H ³SUHVHQW>HG@WKHSRWHQWLDO
IRUUHWURDFWLYHHIIHFWV´$WRUDODUJXPHQW0DUWLQ¶VFRXQVHO
LQ D OLPLWHG ZD\ DUJXHG WKDW KH VKRXOG EH HQWLWOHG WR DQ
HYLGHQWLDU\KHDULQJZLWKUHJDUGWRKLVFODLPVRILQHIIHFWLYH
DVVLVWDQFHRIFRXQVHODWWKHPLWLJDWLRQSKDVH
7KHDSSOLFDEOHYHUVLRQRI† H SURYLGHV
,IWKHDSSOLFDQWKDVIDLOHGWRGHYHORSWKHIDFWXDOEDVLV
RIDFODLPLQ6WDWHFRXUWSURFHHGLQJVWKHFRXUWVKDOOQRW
KROG DQ HYLGHQWLDU\ KHDULQJ RQ WKH FODLP XQOHVV WKH
DSSOLFDQWVKRZVWKDW
$ WKHFODLPUHOLHVRQ
L DQHZUXOHRIFRQVWLWXWLRQDOODZPDGHUHWURDFWLYHWR
FDVHV RQ FROODWHUDO UHYLHZ E\ WKH 6XSUHPH &RXUW WKDW
ZDVSUHYLRXVO\XQDYDLODEOHRU
LL D IDFWXDO SUHGLFDWH WKDW FRXOG QRW KDYH EHHQ
SUHYLRXVO\ GLVFRYHUHG WKURXJK WKH H[HUFLVH RI GXH
GLOLJHQFHDQG

-- 8 of 18 --

0DUWLQY0LWFKHOO 1RV
SURYLGHV FRQVLGHUDEOH HYLGHQFH WRZDUG D ILQGLQJ RI D
SV\FKRORJLFDOGLVRUGHUWKDWIXOILOOVWKHFKDUDFWHULVWLFVRI
VWDWXWRU\PLWLJDWLQJIDFWRUVXQGHU5& % DQG
7KLVGLDJQRVLVZDVQRWGHYHORSHGLQWKHFXUVRU\DQG
LQFRPSOHWH SV\FKRORJLFDO ZRUNXS FRPSOHWHG E\ WKH
&OHYHODQG&RXUW&OLQLF
$VLVHYLGHQWIURPWKHVXPPDULHVDERYHWKHWHVWLPRQ\RI
0DUWLQ¶VPRWKHUDQGJUDQGPRWKHUGLGGLVFXVVPRVWLIQRWDOO
RIWKHIDFWRUVLQWKHDIILGDYLW*UDQWHGGHIHQVHFRXQVHOGLG
QRWSURGXFHH[SHUWWHVWLPRQ\WRGUDZFRQFOXVLRQVIURPWKH
IDFWVSUHVHQWHGE\WKHVHWZRZLWQHVVHVEXWWKHLUWHVWLPRQLHV
GLGUHFRXQWIDFWVDQGRFFXUUHQFHVVKRZLQJHYHU\WKLQJWKDW'U
6FKPLGWJRHVVOLQJFRQWHQGVZDVQRWEXWVKRXOGKDYHEHHQ
SUHVHQWHG 6RPH RI WKLV LQIRUPDWLRQ LV DOVR IRXQG LQ WKH
SUHVHQWHQFHLQYHVWLJDWLRQDQGWKHSV\FKRORJLFDOUHSRUWJLYHQ
WR WKH MXU\ 'U 6FKPLGWJRHVVOLQJ¶V DIILGDYLW DOVR IDLOV WR
VSHFLI\ WKH ³VHYHUH SV\FKRORJLFDO GLVRUGHU´ IURP ZKLFK
0DUWLQDOOHJHGO\VXIIHUV7KXVWKLV³GLDJQRVLV´LVQRPRUH
WKDQ D FRQFOXVRU\ VWDWHPHQW IURP D SV\FKRORJLVW ZKR KDV
QHYHU H[DPLQHG 0DUWLQ 7KLV SDUW RI WKH DIILGDYLW PDNHV
UHIHUHQFH WR WKH IDFW WKDW WKH ³&OHYHODQG &RXUW &OLQLF´
FRPSOHWHGDSV\FKRORJLFDOZRUNXSRI0DUWLQIRUSXUSRVHVRI
PLWLJDWLRQ 7KH UHSRUW JHQHUDWHG IURP WKLV ZRUNXS ZDV
DWWDFKHGWR0DUWLQ¶VPRWLRQWRVXSSOHPHQWWKHUHFRUG7KXV
DSV\FKRORJLFDOH[DPLQDWLRQRI0DUWLQZDVFRQGXFWHGDQGD
UHSRUWRIWKHH[DPLQDWLRQZDVSURYLGHGWRWKHMXGJHDQGMXU\
GXULQJWKHPLWLJDWLRQSKDVH0DUWLQDUJXHVWKDWWKHUHSRUW¶V
FRQFOXVLRQV ZHUH VHOIVHUYLQJ WR WKH 6WDWH DQG ODFNHG
FUHGLELOLW\ PHUHO\ EHFDXVH LW ZDV JHQHUDWHG E\ D 6WDWH
HPSOR\HGSVFK\RDQDO\VW:HKDYHQHYHUIRXQGFRXQVHOWREH
LQHIIHFWLYHVROHO\EHFDXVHWKHH[SHUWXVHGZDVRQWKH6WDWH
SD\UROO $IWHU DOO WKH H[SHUW 'U 6FKPLGWJRHVVOLQJ QRZ
EHLQJWRXWHGE\0DUWLQLVDSSDUHQWO\DJRYHUQPHQWHPSOR\HH
0DUWLQ DOVR DUJXHV WKDW KLV FRXQVHO ZDV LQHIIHFWLYH IRU
DJUHHLQJWRKDYHWKHUHSRUWSUHSDUHGDVGLVFXVVHGLQIUDEXW
LQWUXWKKLVDUJXPHQWUHVWVRQWKHIDFWWKDWKHGLGQRWOLNHWKH
FRQFOXVLRQVLWFRQYH\HG$VGLVFXVVHGEHORZRQFHWKHUHSRUW
ZDVUHTXHVWHG2KLRODZUHTXLUHGWKDWWKHVHQWHQFLQJMXGJH
WKHMXU\DQGERWKSDUWLHVREWDLQFRSLHVIRUUHYLHZ7KXVWKLV
1RV 0DUWLQY0LWFKHOO
+RZHYHU WKHUH DUH VHYHUDO SUHUHTXLVLWHV EHIRUH WKH
FDXVHDQGSUHMXGLFHWHVWLVDSSOLHGLQDIHGHUDOFRXUWWR
DQ\ NLQG RI VWDWH SURFHGXUDO GHIDXOW ³)LUVW WKH FRXUW
PXVWGHWHUPLQHWKDWWKHUHLVDVWDWHSURFHGXUDOUXOHWKDWLV
DSSOLFDEOHWRWKHSHWLWLRQHU VFODLPDQGWKDWWKHSHWLWLRQHU
IDLOHGWRFRPSO\ZLWKWKHUXOH´0DXSLQY6PLWK
)G WK&LU ³6HFRQGWKHFRXUWPXVW
GHFLGHZKHWKHUWKHVWDWHFRXUWVDFWXDOO\HQIRUFHGWKHVWDWH
SURFHGXUDOVDQFWLRQ´,G7KLUGWKHSURFHGXUDOGHIDXOW
PXVWEHDQ³LQGHSHQGHQWDQGDGHTXDWH´VWDWHJURXQGRQ
ZKLFKWKHVWDWHFDQUHO\WRIRUHFORVHUHYLHZRIDIHGHUDO
FRQVWLWXWLRQDO FODLP &RXQW\ &RXUW RI 8OVWHU &RXQW\
1HZ<RUNY$OOHQ86 ,IWKHVH
WKUHH SUHUHTXLVLWHV DUH PHW D IHGHUDO FRXUW PXVW
GHWHUPLQHZKHWKHUWKHSHWLWLRQHULVDEOHWRPHHWWKHFDXVH
DQGSUHMXGLFHWHVWWRH[FXVHWKHVWDWHSURFHGXUDOGHIDXOW
7KHFDXVHDQGSUHMXGLFHVWDQGDUGLVDWZRSDUWWHVWLQ
ZKLFK WKH SHWLWLRQHU PXVW SUHVHQW D VXEVWDQWLDO
UHDVRQWRH[FXVHWKHGHIDXOW&ROHPDQ86DW
DQG VKRZWKDWKHZDVDFWXDOO\SUHMXGLFHGDVDUHVXOW
RI WKH FODLPHG FRQVWLWXWLRQDO HUURU 8QLWHG 6WDWHV Y
)UDG\86
,IWKHFODLPVSUHVHQWHGLQWKHIHGHUDOFRXUWZHUHQHYHU
DFWXDOO\ SUHVHQWHG LQ WKH VWDWH FRXUWV EXW D VWDWH
SURFHGXUDO UXOH QRZ SURKLELWV WKH VWDWH FRXUW IURP
FRQVLGHULQJWKHPWKHFODLPVDUHFRQVLGHUHGH[KDXVWHG
EXW DUH SURFHGXUDOO\ EDUUHG &ROHPDQ 86 DW

,G,Q&ROHPDQY0LWFKHOO)G WK&LU ZH
H[SODLQHGWKHODVWUHVRUWIRUKDEHDVSHWLWLRQHUVZKRIDLO WR
VKRZFDXVHDQGSUHMXGLFHIRUSURFHGXUDOGHIDXOW
:KHQDKDEHDVSHWLWLRQHUKDVIDLOHGWRVKRZFDXVHIRU
QRW DVVHUWLQJ KLV LQHIIHFWLYH DVVLVWDQFH RI DSSHOODWH
FRXQVHOFODLPSURSHUO\LQWKH2KLRFRXUWVDIHGHUDOFRXUW
PD\QRWUHDFKWKHPHULWVRIWKHKDEHDVFODLPXQOHVVWKH
SHWLWLRQHU FDQ VKRZ WKDW UHIXVDO WR FRQVLGHU KLV FODLP
ZRXOGUHVXOWLQDIXQGDPHQWDOPLVFDUULDJHRIMXVWLFH7KH
IXQGDPHQWDOPLVFDUULDJHRIMXVWLFHH[FHSWLRQUHTXLUHVD

-- 9 of 18 --

0DUWLQY0LWFKHOO 1RV
VKRZLQJ WKDW ³LQ OLJKW RI WKH QHZ HYLGHQFH QR MXURU
DFWLQJUHDVRQDEO\ZRXOGKDYHYRWHGWRILQGKLPJXLOW\
EH\RQGDUHDVRQDEOHGRXEW´6FKOXSY'HOR86

,GDW
$VUHOHYDQWKHUHZHKDYHUHFRJQL]HGWKDW2KLRDSSOLHVUHV
MXGLFDWDWREDUWKHFRQVLGHUDWLRQRIFRQVWLWXWLRQDOLVVXHVWKDW
ZHUHQRWEXWFRXOGKDYHEHHQUDLVHGRQGLUHFWDSSHDO
,Q WKH 2KLR 6XSUHPH &RXUW KHOG WKDW
³>F@RQVWLWXWLRQDO LVVXHV FDQQRW EH FRQVLGHUHG LQ
SRVWFRQYLFWLRQ SURFHHGLQJV XQGHU 6HFWLRQ HW
VHT 5HYLVHG &RGH ZKHUH WKH\ KDYH DOUHDG\ EHHQ RU
FRXOG KDYH EHHQ IXOO\ OLWLJDWHG E\ WKH SULVRQHU ZKLOH
UHSUHVHQWHG E\ FRXQVHO HLWKHU EHIRUH KLV MXGJPHQW RI
FRQYLFWLRQRURQGLUHFWDSSHDOIURPWKDWMXGJPHQWDQG
WKXVKDYHEHHQDGMXGLFDWHGDJDLQVWKLP´6WDWHY3HUU\
1(G 2KLR V\OODEXVSDUD
,Q6WDWHY&ROH1(G 2KLR WKHVWDWH
VXSUHPHFRXUWDUWLFXODWHGKRZWKLVSURFHGXUDOUXOHZRXOG
DSSO\ ZLWK UHVSHFW WR LQHIIHFWLYH DVVLVWDQFH RI WULDO
FRXQVHOFODLPV7KHFRXUWH[SODLQHG³:KHUHGHIHQGDQW
UHSUHVHQWHGE\QHZFRXQVHOXSRQGLUHFWDSSHDOIDLOVWR
UDLVHWKHUHLQWKHLVVXHRIFRPSHWHQWWULDOFRXQVHODQGVDLG
LVVXHFRXOGIDLUO\KDYHEHHQGHWHUPLQHGZLWKRXWUHVRUWWR
HYLGHQFHGHKRUV>LHRXWVLGH@WKHUHFRUGUHVMXGLFDWDLV
D SURSHU EDVLV IRU GLVPLVVLQJ GHIHQGDQW V SHWLWLRQ IRU
SRVWFRQYLFWLRQUHOLHI´,GDW V\OODEXV
%\UGY&ROOLQV)G WK&LU HPSKDVLV
DGGHG
1RV 0DUWLQY0LWFKHOO
DQGIDPLO\PHPEHUVDQGKLVFRXQVHOUHTXHVWHGDSUHVHQWHQFH
UHSRUW ZKLFK GHWDLOHG KLV EDFNJURXQG DQG D SV\FKLDWULF
UHSRUW ZKLFK UHFRXQWHG KLV KLVWRU\ RI SV\FKRORJLFDO
HYDOXDWLRQV DQG LQFOXGHG D ³PHQWDO VWDWXV H[DPLQDWLRQ´
&RXQVHO HOLFLWHG WKH WHVWLPRQ\ RI 0DUWLQ¶V PRWKHU DQG
JUDQGPRWKHULQZKLFKWKH\SURYLGHGGHWDLOVRIKLVWURXEOHG
\RXWK:KLOHFHUWDLQO\QRWH[KDXVWLYHWKLVDFWLRQFRQVWLWXWHV
DQLQYHVWLJDWLRQ7KXV0DUWLQFDQQRWVKRZWKDWKHVXIIHUHG
FRQVWUXFWLYH GHQLDO RI FRXQVHO VR KH PXVW VKRZ KRZ KLV
FRXQVHO¶V GHILFLHQFLHV SUHMXGLFHG WKH RXWFRPH RI KLV
VHQWHQFLQJSURFHHGLQJ6HH6WULFNODQG86DW
0DUWLQ¶V LQLWLDO EULHI FRPSOHWHO\ IDLOV WR SRLQW WR ZKDW
PLWLJDWLQJHYLGHQFHIXUWKHUDFWLRQRQWKHSDUWRIKLVFRXQVHO
ZRXOG KDYH XQFRYHUHG 7KH DIILGDYLWV RI WKRVH KH FODLPV
VKRXOGKDYHEHHQZLWQHVVHVDWWKHKHDULQJGRQRWVWDWHZKDW
WKH\ZRXOGKDYHRIIHUHGRQKLVEHKDOI0DUWLQ¶VUHSO\EULHI
UHIHUHQFHVWKHDIILGDYLWRI'U1DQF\6FKPLGWJRHVVOLQJZKLFK
VWDWHV³WKHWUDQVFULSWPDWHULDOVXJJHVWVWKDWWKHGHIHQVHFRXOG
QRWKDYHSXWRQDZHOOWKRXJKWRXWZHOOGHYHORSHGPLWLJDWLRQ
DVWKH\ODFNHGWKHGDWDWRGRVR´7KHDIILGDYLWDOVRVWDWHV
$PRQJWKHVLJQLILFDQWIDFWRUVWKDWGHIHQVHFRXQVHOIDLOHG
WRSUHVHQWWRWKHMXU\LQPLWLJDWLRQRIWKHVHQWHQFHDUHWKH
IROORZLQJH[WUHPHO\VLJQLILFDQWSV\FKRORJLFDOGDWD
$ IDPLO\KLVWRU\RIDOFRKROLVP
% IDPLO\KLVWRU\RISK\VLFDODEXVH
& SDUHQWDOG\VIXQFWLRQDODQGFKDRVWKDWKDGDVLJQLILFDQW
LPSDFW RQ (UQHVW 0DUWLQ¶V DGXOW SV\FKRORJLFDO
IXQFWLRQLQJ
' WKHLPSDFWRI0DUWLQ¶VOHVVWKDQDYHUDJHLQWHOOHFWXDO
IXQFWLRQLQJ DVQRWHGLQVFKRROUHFRUGV LQKLVDGDSWDWLRQ
( WKH KLVWRU\ RI LQDSSURSULDWH EHKDYLRU DQG WURXEOHG
HPRWLRQDOVWDWXVWKDWZDVUHFRJQL]HGDQGHYHQDWWHPSWHG
WREHWUHDWHGGXULQJ0DUWLQ¶VFKLOGKRRG\HDUV

3HUKDSVPRVWVLJQLILFDQWO\KRZHYHUWKHWULDOGHIHQVH
IDLOHGLQDQ\ZD\WRGHYHORSWKHIDFWWKDW(UQHVW0DUWLQ
VXIIHUVDVHYHUHSV\FKRORJLFDOGLVRUGHUWKDWVXEVWDQWLDOO\
LPSDLUV KLV IXQFWLRQLQJ LQ VRFLHW\ 7KLV GLDJQRVLV

-- 10 of 18 --

0DUWLQY0LWFKHOO 1RV
LQZKLFKGHIHQVHFRXQVHOKDYHWRWDOO\IDLOHGWRFRQGXFW
VXFK DQ LQYHVWLJDWLRQ ,Q FRQWUDVW LI D KDEHDV FODLP
μGRHV QRW LQYROYH D IDLOXUH WR LQYHVWLJDWH EXW UDWKHU
SHWLWLRQHU¶V GLVVDWLVIDFWLRQ ZLWK WKH GHJUHH RI KLV
DWWRUQH\ V LQYHVWLJDWLRQ¶ WKH SUHVXPSWLRQ RI
UHDVRQDEOHQHVV LPSRVHG E\ 6WULFNODQG ZLOO EH KDUG WR
RYHUFRPH
,GDW FLWLQJ/HZLVY$OH[DQGHU)G WK
&LU HPSKDVLVDGGHG 7KHFRXUWWKHQUHMHFWHGWKH
SHWLWLRQHU¶V FODLPV RI LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO DW
VHQWHQFLQJZKLFKZHUHEDVHGXSRQWKHDOOHJHGIDLOXUHRIKLV
FRXQVHOWRGLVFRYHUWKDWKHVXIIHUHGIURPSRVWWUDXPDWLFVWUHVV
GLVRUGHU ³376'´ EHFDXVHWKHSHWLWLRQHUKDGQRWSRLQWHGWR
DQ\WKLQJLQWKHUHFRUGWKDWVKRZHGKHVXIIHUHGIURP376'RU
DQ\RWKHUSV\FKRORJLFDOGLVRUGHU,GDW7KHFRXUWVWDWHG
:HDOVRQRWHWKDWXQOLNHLQ6HLGHO>Y0HUNOH)G
WK &LU @ DQG *OHQQ >FLWHG VXSUD@
&DPSEHOOKDVQRWSRLQWHGWRDQ\WKLQJLQKLVFKLOGKRRG
PHGLFDOUHFRUGVLQGLFDWLQJWKDWKHKDVHLWKHU376'RU
VRPH IRUP RI EUDLQ GDPDJH +H KDV QHYHU EHHQ
GLDJQRVHG RU WUHDWHG IRU 376' ZKHUHDV WKH PHGLFDO
UHFRUGVLQ6HLGHOH[SOLFLWO\QRWHGWKHGHIHQGDQW VPHQWDO
DIIOLFWLRQV6HH6HLGHO)GDW $WPRVW
&DPSEHOO V FKLOGKRRG PHGLFDO UHFRUGV ZRXOG KDYH
SURYLGHG DQRWKHU OLVW RI SHRSOH WR LQWHUYLHZ 7KHVH
IRUPHU SK\VLFLDQV DQG KHDOWKFDUH ZRUNHUV &DPSEHOO
DUJXHV ZRXOG KDYH EHHQ DEOH WR H[SRVH KLV PHQWDO
FRQGLWLRQ
7KLV LV PXFK WRR WHQXRXV D FODLP WR VXSSRUW WKH
FRQFOXVLRQ WKDW &DPSEHOO ZDV SUHMXGLFHG E\ KLV
DWWRUQH\V IDLOXUH WR ORRN LQWR KLV FKLOGKRRG PHGLFDO
UHFRUGV
,G
+HUHWKHUHZDV³VRPHWKLQJ>@´&ROHPDQ)GDW
RI D PLWLJDWLQJ QDWXUH SUHVHQWHG DW WKH KHDULQJ E\ GHIHQVH
FRXQVHO7KHUHZDVOLPLWHGFRQWDFWEHWZHHQGHIHQVHFRXQVHO
1RV 0DUWLQY0LWFKHOO
',6&866,21
,3URFHGXUDO'HIDXOW
$6XIILFLHQF\RIWKH(YLGHQFH
0DUWLQ¶VVXIILFLHQF\RIWKHHYLGHQFHFODLPZDVUDLVHGLQKLV
GLUHFWDSSHDODQGWKXVSUHVHUYHGIRUIHGHUDOKDEHDVUHYLHZ
%,QHIIHFWLYH$VVLVWDQFHRI$SSHOODWH&RXQVHO
7KHGLVWULFWFRXUWIRXQGWKDW0DUWLQKDGQRWSURFHGXUDOO\
GHIDXOWHG KLV FODLP RI LQHIIHFWLYH DVVLVWDQFH RI DSSHOODWH
FRXQVHO7KLVFODLPWRRNLVVXHZLWKFRXQVHO¶VIDLOXUHWRPDNH
WKHWUDQVFULSWRIWKHKHDULQJRQ0DUWLQ¶VPRWLRQIRUDQHZWULDO
SDUWRIWKHUHFRUGIRUKLVGLUHFWDSSHDO7KLVDUJXPHQWDQG
RWKHU LQHIIHFWLYH DVVLVWDQFH RI DSSHOODWH FRXQVHO FODLPV DV
GLVFXVVHG LQIUD ZHUH UDLVHG LQ 0DUWLQ¶V SRVWFRQYLFWLRQ
DSSOLFDWLRQIRUGHOD\HGUHFRQVLGHUDWLRQDVDXWKRUL]HGE\6WDWH
Y 0XUQDKDQ 1( G 2KLR 7KH
DSSOLFDWLRQZDVGHQLHGE\WKH 2KLR&RXUWRI$SSHDOVLQD
RQHVHQWHQFHRSLQLRQWKDWGLGQRWVWDWHZKHWKHUWKHGHFLVLRQ
ZDVRQWKHPHULWVRUEDVHGXSRQSURFHGXUDOJURXQGV7KH
GLVWULFW FRXUW ZKLOH UHFRJQL]LQJ WKLV FRXUW¶V KROGLQJ LQ
6LPSVRQY6SDUNPDQ)G WK&LU ZKHQ
DVWDWHFRXUWRIDSSHDOVGHFLVLRQLVVLOHQWDVWRWKHJURXQGVIRU
GHQ\LQJDFODLPLWLVDVVXPHGWKDWWKHFRXUWREVHUYHGLWVRZQ
SURFHGXUDO EDU QRQHWKHOHVV UXOHG WKDW LW ZDV LPSURSHU WR
DVVXPHWKDWWKHFODLPZDVUHMHFWHGXSRQDSURFHGXUDOJURXQG
EHFDXVH0XUQDKDQKDGMXVWEHHQGHFLGHGDQGWKHEULHI&RXUW
RI $SSHDOV RSLQLRQ GLG QRW VWDWH WKH EDVLV RI LWV GHQLDO DV
UHTXLUHG E\ 0XUQDKDQ 7KH 6WDWH GRHV QRW FKDOOHQJH WKLV
ILQGLQJRURWKHUZLVHDUJXHWKDWWKLVFODLPZDVQRWSUHVHUYHG
IRUIHGHUDOKDEHDVUHYLHZ
& ,QHIIHFWLYH$VVLVWDQFHRI7ULDO&RXQVHO3URVHFXWRULDO
0LVFRQGXFW
0DUWLQUDLVHGKLVFODLPVRILQHIIHFWLYHDVVLVWDQFHRIWULDO
FRXQVHOLQSRVWFRQYLFWLRQSURFHHGLQJVUDWKHUWKDQE\GLUHFW
DSSHDO 7KXV WKHVH FODLPV ZHUH EDUUHG E\ UHV MXGLFDWD

-- 11 of 18 --

0DUWLQY0LWFKHOO 1RV
SXUVXDQWWR3HUU\6HH%\UG)GDW1RQHWKHOHVV
KH DUJXHV WKDW WKHVH FODLPV DUH QRW SURFHGXUDOO\ GHIDXOWHG
EHFDXVHWKHODVWVWDWHFRXUWUHQGHULQJMXGJPHQWRQWKHFDVHGLG
QRWFOHDUO\DQGH[SUHVVO\VWDWHWKDWLWVMXGJPHQWUHVWHGRQD
SURFHGXUDOEDU6HH+DUULVY5HHG86
7KLV FRQWHQWLRQ LV QRW DFFXUDWH :KHQ DGGUHVVLQJ WKHVH
FODLPVWKHFRXUWKHOG
:HILQGWKDWWKHVHZHUHDOOPDWWHUVWKDWFRXOGKDYHEHHQ
DGGUHVVHGRQGHIHQGDQW¶VGLUHFWDSSHDOVLQFHGHIHQGDQW
ZDV UHSUHVHQWHG E\ QHZ DSSHOODWH FRXQVHO DQG DUH
WKHUHIRUHEDUUHGE\WKHGRFWULQHRIUHVMXGLFDWDDVIRXQG
E\WKHWULDOFRXUW
6WDWH Y 0DUWLQ :/ 2KLR $SS
0DUWLQVLPSO\LJQRUHVWKLVRSLQLRQDQGIRFXVHVRQDORZHU
FRXUW RSLQLRQ WKDW ZDV QRW WKH ODVW VWDWH FRXUW UHQGHULQJ
MXGJPHQWRQWKHFDVH7KXVWKLVDUJXPHQWLVZLWKRXWPHULW
0DUWLQ DOVR DUJXHV WKDW WKH LQHIIHFWLYH DVVLVWDQFH RI KLV
DSSHOODWHFRXQVHOLVFDXVHDQGSUHMXGLFHIRUQRWUDLVLQJKLV
FODLPV RI LQHIIHFWLYH DVVLVWDQFH RI WULDO FRXQVHO RQ GLUHFW
DSSHDO,Q0DUWLQ¶VSRVWFRQYLFWLRQDSSOLFDWLRQIRUGHOD\HG
UHFRQVLGHUDWLRQKHUDLVHGFODLPVRILQHIIHFWLYHDVVLVWDQFHRI
DSSHOODWH FRXQVHO EDVHG XSRQ WKH IDLOXUH RI KLV DSSHOODWH
FRXQVHOWRUDLVHWKHLQHIIHFWLYHQHVVRIWULDOFRXQVHOIRUQRW
FKDOOHQJLQJ KLV ZDUUDQWOHVV DUUHVW REMHFWLQJ WR MXU\
LQVWUXFWLRQV REWDLQLQJ WKH DWWHQGDQFH RI 5LHYHV%H\ DQG
SHUIRUPLQJHIIHFWLYHO\DWWKHPLWLJDWLRQSKDVH,I0DUWLQFDQ
VKRZ WKDW KH UHFHLYHG LQHIIHFWLYH DVVLVWDQFH RI DSSHOODWH
FRXQVHO WKDW URVH WR WKH OHYHO RI D YLRODWLRQ RI KLV 6L[WK
$PHQGPHQWULJKWVLWZRXOGH[FXVHKLVSURFHGXUDOGHIDXOW
6HH6H\PRXUY:DONHU)G WK&LU
FLWLQJ 0XUUD\ Y &DUULHU 86 ,Q
0DSHVY&R\OH)G WK&LU ZHSURYLGHG
JXLGDQFHRQFRQVLGHUDWLRQVUHOHYDQWWRFODLPVRILQHIIHFWLYH
DVVLVWDQFHRIDSSHOODWHFRXQVHO
7KHFDVHVGHFLGHGE\WKLVFRXUWRQWKHLVVXHRILQHIIHFWLYH
DVVLVWDQFH RI DSSHOODWH FRXQVHO VXJJHVW WKH IROORZLQJ
FRQVLGHUDWLRQV WKDW RXJKW WR EH WDNHQ LQWR DFFRXQW LQ
1RV 0DUWLQY0LWFKHOO
REWDLQVDQGSUHVHQWVVRPHWKLQJLQPLWLJDWLRQPLQLPDO
VWDQGDUGVUHTXLUHVRPHLQYHVWLJDWLRQ´,G5HFHQWO\LQ
&DUWHU Y %HOO )G WK &LU DQG
6NDJJVY3DUNHU)G WK&LU
WKLV FRXUW KDV KHOG WKDW IDLOXUH WR LQYHVWLJDWH SRVVLEOH
PLWLJDWLQJ IDFWRUV DQG IDLOXUH WR SUHVHQW PLWLJDWLQJ
HYLGHQFH DW VHQWHQFLQJ FDQ FRQVWLWXWH LQHIIHFWLYH
DVVLVWDQFHRIFRXQVHOXQGHUWKH6L[WK$PHQGPHQW

:KLOH UHFHQW GHFLVLRQV IURP WKLV FRXUW KDYH
HPSKDVL]HGWKDWIDLOXUHWRSUHVHQWPLWLJDWLQJHYLGHQFHDW
VHQWHQFLQJ PD\ FRQVWLWXWH LQHIIHFWLYH DVVLVWDQFH RI
FRXQVHO XQGHU WKH 6L[WK $PHQGPHQW FRXQVHO PD\
QHYHUWKHOHVV PDNH D UHDVRQDEOH GHFLVLRQ WKDW
LQYHVWLJDWLRQLVQRWQHFHVVDU\6HH6WULFNODQG86
DW,QGHHGWKH6WULFNODQG&RXUWQRWHGWKDW³>W@KH
UHDVRQDEOHQHVVRIFRXQVHO VDFWLRQVPD\EHGHWHUPLQHGRU
VXEVWDQWLDOO\ LQIOXHQFHG E\ WKH GHIHQGDQW V RZQ
VWDWHPHQWV RU DFWLRQV &RXQVHO¶V DFWLRQV DUH XVXDOO\
EDVHGTXLWHSURSHUO\RQLQIRUPHGVWUDWHJLFFKRLFHVPDGH
E\ WKH GHIHQGDQW DQG RQ LQIRUPDWLRQ VXSSOLHG E\ WKH
GHIHQGDQW´,G
,G HPSKDVLVLQRULJLQDO :HWKHQUHMHFWHG&ROHPDQ¶VFODLP
WKDW WKH IDLOXUH RI KLV FRXQVHO WR LQYHVWLJDWH PLWLJDWLQJ
HYLGHQFHDPRXQWHGWRLQHIIHFWLYHDVVLVWDQFHEHFDXVH&ROHPDQ
KDG EHHQ XQFRRSHUDWLYH DQG KDG GLUHFWHG KLV FRXQVHO WR
SUHVHQWOLPLWHGHYLGHQFHDWWKHKHDULQJLQVWUXFWLQJKLP³QRW
WRLQYHVWLJDWHPLWLJDWLQJIDFWRUV´,GDW
&DPSEHOOY&R\OHBBB)GBBBB:/ WK
&LU DQRWKHUFDVHLQYROYLQJDKDEHDVSHWLWLRQILOHGE\
DQ2KLRGHDWKURZLQPDWHIXUWKHULOOXPLQDWHVWKHVWDQGDUGV
DSSOLFDEOH WR LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO DUJXPHQWV
UHODWHG WR FDSLWDO VHQWHQFLQJ SURFHHGLQJV 7KH &DPSEHOO
FRXUWVWDWHG
>:@HQRWHWKDWWKHFDVHVZKHUHWKLVFRXUWKDVJUDQWHGWKH
ZULW IRU IDLOXUH RI FRXQVHO WR LQYHVWLJDWH SRWHQWLDO
PLWLJDWLQJHYLGHQFHKDYHEHHQOLPLWHGWRWKRVHVLWXDWLRQV

-- 12 of 18 --

0DUWLQY0LWFKHOO 1RV
$PRQJRWKHUWKLQJVWULDOFRXQVHOIDLOHGWRSUHVHQWWKH
GHIHQGDQW V PLOLWDU\ UHFRUG UHOLJLRXV DQG YROXQWHHU
DFWLYLWLHVRUH[SHUWVZKRFRXOGWHVWLI\DERXWVRFLRORJLFDO
RU SV\FKRORJLFDO IDFWRUV 6HH LG 8QGHU WKHVH
FLUFXPVWDQFHVWKH&RXUWIRXQGWKHUHSUHVHQWDWLRQZDV
REMHFWLYHO\XQUHDVRQDEOH6HHLGDW
,Q$XVWLQY%HOO)G WK&LU WKLV
&RXUWKHOGWKDWWKHIDLOXUHRIWULDOFRXQVHO³WRLQYHVWLJDWH
DQG SUHVHQW DQ\ PLWLJDWLQJ HYLGHQFH GXULQJ WKH
VHQWHQFLQJSKDVHVRXQGHUPLQHGWKHDGYHUVDULDOSURFHVV
WKDW >GHIHQGDQW V@ GHDWK VHQWHQFH ZDV QRW UHOLDEOH´
5HO\LQJRQWKLV&RXUW VKROGLQJLQ*OHQQY7DWH)G
WK &LU WKDW FRXQVHO SURYLGHG
LQHIIHFWLYH DVVLVWDQFH ZKHUH LQIRUPDWLRQ ZDV QRW
SUHVHQWHGWRWKHMXU\DWVHQWHQFLQJEHFDXVHFRXQVHOPDGH
OLWWOH DWWHPSW WR SUHSDUH IRU WKH VHQWHQFLQJ SKDVH WKH
$XVWLQ FRXUW IRXQG WKDW ³JLYHQ WKDW VHYHUDO RI
>GHIHQGDQW V@UHODWLYHVIULHQGVGHDWKSHQDOW\H[SHUWVDQG
D PLQLVWHU ZHUH DYDLODEOH DQG ZLOOLQJ WR WHVWLI\ RQ KLV
EHKDOI´IDLOXUHWRSUHVHQWDQ\PLWLJDWLQJHYLGHQFH³GRHV
QRWUHIOHFWDVWUDWHJLFGHFLVLRQEXWUDWKHUDQDEGLFDWLRQRI
DGYRFDF\´$XVWLQ)GDW
,GDW,Q&ROHPDQY0LWFKHOO)G WK
&LU ZHFODULILHGWKHLPSRUWRIVRPHRIWKHVHUHFHQW
FDVHVDVIROORZV
:H UHFRJQL]HG LQ 0DSHV Y &R\OH )G WK
&LU FHUWGHQLHG86
8QGHUWKH 2KLRVWDWXWHDFDSLWDOGHIHQGDQWIRXQG
JXLOW\RIDGHDWKVSHFLILFDWLRQKDVWRSUHVHQWVRPH
PLWLJDWLQJ HYLGHQFH LQ RUGHU WR DYRLG WKH GHDWK
SHQDOW\,IDMXU\KDVQRWKLQJWRZHLJKDJDLQVWWKH
DJJUDYDWLQJFLUFXPVWDQFHLWDOPRVWFHUWDLQO\PXVW
ILQGWKDWWKHDJJUDYDWLQJFLUFXPVWDQFHRXWZHLJKVWKH
QRQH[LVWHQW PLWLJDWLQJ FLUFXPVWDQFHV DQG
UHFRPPHQGGHDWK
,GDW
$QGWKH0DSHVFRXUWDOVRVWDWHGWKDW³ZKHQDFOLHQW
IDFHVWKHSURVSHFWRIEHLQJSXWWRGHDWKXQOHVVFRXQVHO
1RV 0DUWLQY0LWFKHOO
GHWHUPLQLQJ ZKHWKHU DQ DWWRUQH\ RQ GLUHFW DSSHDO
SHUIRUPHGUHDVRQDEO\FRPSHWHQWO\
:HUHWKHRPLWWHGLVVXHVVLJQLILFDQWDQGREYLRXV"
:DVWKHUHDUJXDEO\FRQWUDU\DXWKRULW\RQWKHRPLWWHG
LVVXHV"
:HUHWKHRPLWWHGLVVXHVFOHDUO\VWURQJHUWKDQWKRVH
SUHVHQWHG"
:HUHWKHRPLWWHGLVVXHVREMHFWHGWRDWWULDO"
:HUHWKHWULDOFRXUW VUXOLQJVVXEMHFWWRGHIHUHQFHRQ
DSSHDO"
'LG DSSHOODWH FRXQVHO WHVWLI\ LQ D FROODWHUDO
SURFHHGLQJDVWRKLVDSSHDOVWUDWHJ\DQGLIVRZHUHWKH
MXVWLILFDWLRQVUHDVRQDEOH"
:KDWZDVDSSHOODWHFRXQVHO VOHYHORIH[SHULHQFHDQG
H[SHUWLVH"
'LGWKHSHWLWLRQHUDQGDSSHOODWHFRXQVHOPHHWDQGJR
RYHUSRVVLEOHLVVXHV"
,VWKHUHHYLGHQFHWKDWFRXQVHOUHYLHZHGDOOWKHIDFWV"
:HUH WKH RPLWWHG LVVXHV GHDOW ZLWK LQ RWKHU
DVVLJQPHQWVRIHUURU"
:DVWKHGHFLVLRQWRRPLWDQLVVXHDQXQUHDVRQDEOH
RQHZKLFKRQO\DQLQFRPSHWHQWDWWRUQH\ZRXOGDGRSW"
,GDW
7KHJRYHUQPHQWUHVSRQGVE\DUJXLQJWKDW0DUWLQZDLYHG
WKLV LVVXH E\ QRW DUJXLQJ FDXVH DQG SUHMXGLFH EHIRUH WKH
GLVWULFWFRXUW0DUWLQVXEPLWWHGSURSRVHGILQGLQJVRIIDFWDQG
FRQFOXVLRQVRIODZWRWKHGLVWULFWFRXUWZKLFKLQFOXGHGWKH
JHQHUDOVWDWHPHQW³,QWKLVFDVHWKHLQHIIHFWLYHUHSUHVHQWDWLRQ
UHFHLYHG E\ (UQHVW 0DUWLQ ERWK DW WULDO DQG LQ KLV GLUHFW
DSSHDOVUHVXOWHGLQDQ\SURFHGXUDOGHIDXOWIRXQGWRH[LVWDQG
ZDVVRHJUHJLRXVDVWRSURGXFHDPLVFDUULDJHRIMXVWLFHDQGWR
MXVWLI\ WKH H[HUFLVH RI WKLV &RXUW¶V HTXLWDEOH GLVFUHWLRQ WR
JUDQW KDEHDV UHYLHZ RI DQ\ DQG DOO FODLPV IRXQG WR EH
RWKHUZLVH GHIDXOWHG´ +RZHYHU KLV FODLPV RI LQHIIHFWLYH
DVVLVWDQFHRIDSSHOODWHFRXQVHORQKLVKDEHDVSHWLWLRQZHUH
OLPLWHG WR WKH IDLOXUH RI DSSHOODWH FRXQVHO WR KDYH WKH

-- 13 of 18 --

0DUWLQY0LWFKHOO 1RV
WUDQVFULSWRIWKHKHDULQJRQKLVQHZWULDOPRWLRQPDGHSDUWRI
WKHUHFRUGRQDSSHDO
([FXVLQJSURFHGXUDOGHIDXOWIRU³FDXVHDQGSUHMXGLFH´DQG
DJUDQWRIUHOLHIIRULQHIIHFWLYHDVVLVWDQFHRIFRXQVHOLQYROYHV
DQH[DPLQDWLRQRIZKHWKHUSUHMXGLFHRFFXUUHGVHH)UDG\
86DW6WULFNODQGY:DVKLQJWRQ86
7KXVLI0DUWLQ¶VXQGHUO\LQJLQHIIHFWLYHDVVLVWDQFHRI
WULDOFRXQVHODUJXPHQWVODFNPHULWKHFDQQRWVKRZ³FDXVHDQG
SUHMXGLFH´YLDLQHIIHFWLYHDVVLVWDQFHRIDSSHOODWHFRXQVHO2I
FRXUVH RXU SURFHGXUDO GHIDXOW DQDO\VLV LV XOWLPDWHO\
FRPSOLFDWHG E\ WKH IDFW WKDW DOWKRXJK 0DUWLQ DSSDUHQWO\
SUHVHUYHG LQHIIHFWLYH DVVLVWDQFH RI DSSHOODWH FRXQVHO
DUJXPHQWV IRU IHGHUDO UHYLHZ WKURXJK KLV 0XUQDKDQ
DSSOLFDWLRQ KH RQO\ SUHVHQWHG RQH VXFK DUJXPHQW ZLWK
VSHFLILFLW\RQKLVKDEHDVSHWLWLRQDQGWKDWDUJXPHQWGLGQRW
LQFOXGHKLVFODLPWKDWDSSHOODWHFRXQVHOVKRXOGKDYHUDLVHG
LQHIIHFWLYHDVVLVWDQFHRIWULDOFRXQVHOZLWKUHJDUGWRWKHPHULWV
KHDWWHPSWVWRSUHVHQWLQWKLVDFWLRQ
-XVWSULRUWRWKH0DSHVFRXUW¶VUHFLWDORIWKHFRQVLGHUDWLRQV
UHOHYDQW WR WKH FRQVWLWXWLRQDO HIIHFWLYHQHVV RI DSSHOODWH
FRXQVHOLWQRWHGWKDW0DSHV¶VFODLPRILQHIIHFWLYHDVVLVWDQFH
RI WULDO FRXQVHO DW WKH PLWLJDWLRQ VWDJH ZDV SURFHGXUDOO\
GHIDXOWHG EXW FRXOG EH DGGUHVVHG LQ FRQVLGHULQJ ZKHWKHU
DSSHOODWHFRXQVHOZDVLQHIIHFWLYHLQIDLOLQJWRUDLVHLWRQGLUHFW
DSSHDO0DSHV)GDW/LNH0DUWLQ0DSHVUDLVHG
LQHIIHFWLYH DVVLVWDQFH RI DSSHOODWH FRXQVHO ZLWK UHJDUG WR
PLWLJDWLRQ LQ D SRVWFRQYLFWLRQ SURFHHGLQJ LG DW
KRZHYHUXQOLNHKHUH0DSHV¶VKDEHDVSHWLWLRQDOVRVRXJKW
UHOLHIRQWKLVVSHFLILFJURXQG
$QRWKHUFRQFHUQLQWKLVUHJDUGLVWKHIDFWWKDWRXU&2$GLG
QRW JUDQW UHYLHZ RI WKH LQHIIHFWLYH DVVLVWDQFH RI DSSHOODWH
FRXQVHO FODLPV WKDW FKDUJHG LQHIIHFWLYH DVVLVWDQFH RI WULDO
FRXQVHO2IFRXUVHZHZRXOGKDYHQRUHDVRQWRGRVRVLQFH
WKHVHVSHFLILFLVVXHVZHUHQRWUDLVHGLQWKHKDEHDVSHWLWLRQRU
FRQVLGHUHGE\WKHGLVWULFWFRXUW7KH&2$GLGSURYLGHWKDW
WKHSDUWLHVFRXOGDGGUHVVWKHTXHVWLRQRISURFHGXUDOGHIDXOW
UHODWHGWRWKHPHULWLVVXHVXSRQZKLFKWKH&2$ZDVJUDQWHG
1RV 0DUWLQY0LWFKHOO
,Q VXSSRUW RI WKHVH SURSRVLWLRQV KH FLWHV VHYHUDO UHFHQW
FDVHVIURPWKLVFLUFXLWLQZKLFKKDEHDVUHOLHIKDVEHHQJUDQWHG
IRUWKHIDLOXUHRIFRXQVHOWRLQYHVWLJDWHDWPLWLJDWLRQ7KLV
FRXUW¶V RSLQLRQ LQ &DUWHU Y %HOO )G WK &LU
UHYLHZHGWKHVHFDVHVDQG:LOOLDPVY7D\ORU86
DVIROORZV
,Q:LOOLDPVWKH6XSUHPH&RXUWIRXQGWKDWWULDOFRXQVHO V
UHSUHVHQWDWLRQ RI WKH SHWLWLRQHU GXULQJ WKH VHQWHQFLQJ
SKDVHIHOOVKRUWRISURIHVVLRQDOVWDQGDUGV

,Q0DSHVY&R\OH)G WK&LU
WKLV&RXUWQRWHGWKDW³ZKHQDFOLHQWIDFHVWKHSURVSHFWRI
EHLQJSXWWRGHDWKXQOHVVFRXQVHOREWDLQVDQGSUHVHQWV
VRPHWKLQJLQPLWLJDWLRQPLQLPDOVWDQGDUGVUHTXLUHVRPH
LQYHVWLJDWLRQ´0RUHRYHULQ5LFNPDQ>Y%HOO)G
WK&LU @WKLV&RXUWIRXQGGHILFLHQFLHVVR
VHYHUH DV WR GLVSHQVH ZLWK WKH QHHG IRU D VKRZLQJ RI
SUHMXGLFHXQGHU6WULFNODQG)GDW7KH&RXUW
QRWHGWKDWWULDOFRXQVHO³GLGQRWLQWHUYLHZDQ\ZLWQHVVHV
FRQGXFW DQ\ OHJDO UHVHDUFK RU REWDLQ DQG UHYLHZ DQ\
UHFRUGV LQFOXGLQJ WKRVH UHJDUGLQJ >SHWLWLRQHU V@
HPSOR\PHQW HGXFDWLRQ PHQWDO KHDOWK VRFLDO VHUYLFHV
FRQWDFWV PLOLWDU\ VHUYLFH RU SULVRQ H[SHULHQFH´ ,G
)XUWKHUWULDOFRXQVHO VWULDOSUHSDUDWLRQ³FRQVLVWHGVROHO\
RI LQWHUYLHZV KH FRQGXFWHG ZLWK >WKH SHWLWLRQHU@´ ,G
$OWKRXJK ZH QRWH WKDW XQOLNH 5LFNPDQ WKHUH ZDV QR
KRVWLOLW\RQWKHSDUWRIWULDOFRXQVHOLQWKLVFDVHZHILQG
WKDW5LFNPDQVWDQGVIRUWKHUHOHYDQWSURSRVLWLRQWKDWWKH
FRPSOHWHIDLOXUHWRLQYHVWLJDWHOHWDORQHSUHVHQWH[LVWLQJ
PLWLJDWLQJ HYLGHQFH LV EHORZ DQ REMHFWLYH VWDQGDUG RI
UHDVRQDEOHUHSUHVHQWDWLRQDQGPD\LQIDFWEHVRVHYHUHDV
WRSHUPLWXVWRLQIHUSUHMXGLFH
,Q *URVHFORVH Y %HOO WKLV &RXUW FRQVLGHUHG D
7HQQHVVHHFDVHLQZKLFKWULDOFRXQVHO³DOPRVWHQWLUHO\
IDLOHG WR LQYHVWLJDWH WKH FDVH KH QHYHU IRU H[DPSOH
LQWHUYLHZHGWKHFULPHLQFLGHQWZLWQHVVHVRUDQ\IDPLO\
PHPEHUV´ )G WK &LU ,Q
*URVHFORVH WULDO FRXQVHO IDLOHG WR SUHVHQW PLWLJDWLQJ
HYLGHQFHGXULQJWKHVHQWHQFLQJVWDJHRIWKHSURFHHGLQJV

-- 14 of 18 --

0DUWLQY0LWFKHOO 1RV
VWDWHPHQWLQZKLFKKHDWWHPSWHGWRFRQYH\DPHWDSKRUZKLFK
DQDORJL]HG0DUWLQWRDNQRWW\³FRUGRIZRRG´WKDWVRFLHW\KDG
XQMXVWO\FDVWDVLGHDWDQHDUO\DJH+HFRQFOXGHGE\VWDWLQJ
,I(UQHVW0DUWLQLVJXLOW\RIWKLV,VD\OHW¶VLPSURYH
,IKHLVJRLQJWRD>VLF@LQVWLWXWLRQOHW¶VVHHLIZHFDQ¶WGR
VRPHWKLQJWRFKDQJHWKHRXWORRNRUWKHYLHZRUPD\EH
KLVOLNHWKDWFRUGRIZRRGDQGDOOKHLVZRUWKLVFDVWLQJ
DVLGHRUSXWWLQJLWLQDZRRGEXUQLQJVWRYH
,GRQ¶WNQRZEXWWKLVZLOOEH\RXUFKRLVH>W\SR@0\
%LEOHDOZD\VVD\VMXGJHDQGVD\VMXGJHWKHHQRW±ZH
KDYH WR EH FDUHIXO DV WR ZKHWKHU \RX ZDQW WKH VDPH
MXGJPHQW
7KDQN\RXDJDLQ
0DUWLQDUJXHVWKDWWKHFRXUVHRIWKHVHSURFHHGLQJVVKRZV
KLV FRXQVHO¶V FRPSOHWH IDLOXUH WR LQYHVWLJDWH PLWLJDWLQJ
HYLGHQFH DQG WKDW WKLV LQVXIILFLHQF\ ZDV VR VHYHUH WKDW ZH
VKRXOGLQIHUSUHMXGLFHSXUVXDQWWR8QLWHG6WDWHVY&URQLF
86
,QUHJDUGWRWKHFRRSHUDWLRQRI0DUWLQ&DUQHVVWDWHG³:H
IRXQGKLPWREH>D@YHU\GLIILFXOWXQFRRSHUDWLYHFOLHQW´&R
FRXQVHO $GULQH DGGHG ³$QG HYHQ KRVWLOH DW WLPHV´ ,G
0DUWLQDUJXHVWKDWWKLVVWDWHPHQWVKRZVWKDW³'HIHQVHFRXQVHO
ZDV>VLF@VDERWDJLQJWKHLURZQFOLHQW¶VFDVH´0DUWLQ¶VODFN
RI FRRSHUDWLRQ LV HYLGHQW IURP DQ H[FKDQJH EHWZHHQ KLV
FRXQVHO DQG WKH MXGJH LQ ZKLFK FRXQVHO VWDWHG WKDW 0DUWLQ
ZDQWHG WR JLYH DQ RUDO VWDWHPHQW QRW XQGHU RDWK DW
VHQWHQFLQJEXWWKDWKHZDVXQZLOOLQJWRWHOOFRXQVHOZKDWWKH
VWDWHPHQWZRXOGUHODWHHYHQWKRXJKWKH\KDGDGYLVHGKLPWKDW
KHVKRXOGGRVR
+H DOVR DUJXHV WKDW GHIHQVH FRXQVHO LPSHDFKHG KLV
FUHGLELOLW\ E\ WHOOLQJ WKH MXGJH MXVW DIWHU WKH H[FKDQJH
GHVFULEHGLPPHGLDWHO\DERYHWKDWKHKDGDGPLWWHGO\LQJWR
WKHP DERXW D OHWWHU ³UHODWLQJ WR D GLIIHUHQW PDWWHU´ 7KH\
DUJXHWKDWWKHVHWZRVWDWHPHQWVIXUWKHUSURYLGHHYLGHQFHRI
³FRXQVHO¶VDEDQGRQPHQWRI0U0DUWLQ´
1RV 0DUWLQY0LWFKHOO
,QDVPXFK DV WKH PHULWV RI WKH LQHIIHFWLYH DVVLVWDQFH RI
DSSHOODWHFRXQVHODUJXPHQWVDUHKRSHOHVVO\LQWHUWZLQHGZLWK
WKHSURFHGXUDOGHIDXOWDUJXPHQWVUHJDUGLQJWKHPHULWFODLPV
XSRQ ZKLFK ZH JUDQWHG UHYLHZ RXU JUDQW RI UHYLHZ RQ
SURFHGXUDOGHIDXOWHQFRPSDVVHVWKHVHFODLPV
$W RUDO DUJXPHQW WKH 6WDWH FRQFHGHG WKDW 0DUWLQ¶V
LQHIIHFWLYHDVVLVWDQFHRIFRXQVHODUJXPHQWVWKDWUHODWHWRWKH
SHUIRUPDQFHRIKLVFRXQVHODWWKHPLWLJDWLRQVWDJHUHTXLUHGDQ
H[DPLQDWLRQ RI HYLGHQFH GHKRUV WKH UHFRUG DQG WKDW WKHVH
FODLPVWKHUHIRUHZHUHQRWSURFHGXUDOO\GHIDXOWHG
0DUWLQ PDNHV HVVHQWLDOO\ WKH VDPH SURFHGXUDO GHIDXOW
DUJXPHQW ZLWK UHJDUG WR KLV FODLP RI SURVHFXWRULDO
PLVFRQGXFW,QFODLP2 F RIKLVSRVWFRQYLFWLRQDSSOLFDWLRQ
IRU GHOD\HG UHFRQVLGHUDWLRQ KH DUJXHG WKDW KH UHFHLYHG
LQHIIHFWLYHDVVLVWDQFHRIDSSHOODWHFRXQVHOEHFDXVHKLVFRXQVHO
KDGQRWDUJXHGWKDWWKHSURVHFXWRUKDGLPSURSHUO\FRPPHQWHG
RQKLVIDLOXUHWRWHVWLI\+HDUJXHVWKDWDSSHOODWHFRXQVHO¶V
LQHIIHFWLYHQHVVLQWKLVUHJDUGLVFDXVHDQGSUHMXGLFHDQGWKXV
H[FXVHVKLVIDLOXUHWRUDLVHWKHLVVXHRQGLUHFWDSSHDO+HGLG
QRWUDLVHWKLVDUJXPHQWEHIRUHWKHGLVWULFWFRXUW
0DUWLQ¶VIDLOXUHWRUDLVHLQHIIHFWLYHDVVLVWDQFHRIFRXQVHO
DQG SURVHFXWRULDO PLVFRQGXFW RQ GLUHFW DSSHDO UHVXOWHG LQ
SURFHGXUDOGHIDXOW+HUDLVHGWKHPHULWVRIWKHVHFODLPVLQKLV
LQHIIHFWLYHDVVLVWDQFHRIDSSHOODWHFRXQVHORQKLV0XUQDKDQ
DSSOLFDWLRQ EXW KH GLG QRW SHWLWLRQ WKH GLVWULFW FRXUW IRU
KDEHDV UHOLHI LQ WKLV UHJDUG 7KXV RXU GLVFXVVLRQ RI WKH
PHULWVRIWKHVHFODLPVVDYHWKHHIIHFWLYHQHVVRIKLVFRXQVHODW
PLWLJDWLRQLVOLPLWHGWRKLVFDXVHDQGSUHMXGLFHDUJXPHQWV
,,,QHIIHFWLYH$VVLVWDQFHRI&RXQVHO
³7KHEHQFKPDUNIRUMXGJLQJDQ\FODLPRILQHIIHFWLYHQHVV
PXVWEHZKHWKHUFRXQVHO VFRQGXFWVRXQGHUPLQHGWKHSURSHU
IXQFWLRQLQJRIWKHDGYHUVDULDOSURFHVVWKDWWKHWULDOFDQQRWEH
UHOLHG RQ DV KDYLQJ SURGXFHG D MXVW UHVXOW´ 6WULFNODQG Y
:DVKLQJWRQ86

-- 15 of 18 --

0DUWLQY0LWFKHOO 1RV
)LUVW WKH GHIHQGDQW PXVW VKRZ WKDW FRXQVHO V
SHUIRUPDQFHZDVGHILFLHQW7KLVUHTXLUHVVKRZLQJWKDW
FRXQVHO PDGH HUURUV VR VHULRXV WKDW FRXQVHO ZDV QRW
IXQFWLRQLQJDVWKH³FRXQVHO´JXDUDQWHHGWKHGHIHQGDQWE\
WKH6L[WK$PHQGPHQW6HFRQGWKHGHIHQGDQWPXVWVKRZ
WKDW WKH GHILFLHQW SHUIRUPDQFH SUHMXGLFHG WKH GHIHQVH
7KLV UHTXLUHV VKRZLQJ WKDW FRXQVHO V HUURUV ZHUH VR
VHULRXVDVWRGHSULYHWKHGHIHQGDQWRIDIDLUWULDODWULDO
ZKRVHUHVXOWLVUHOLDEOH
,GDW%RWKSURQJVRIWKHLQTXLU\DUHPL[HGTXHVWLRQVRI
ODZDQGIDFWUHYLHZHGGHQRYR6HHLGDW
$,QHIIHFWLYH$VVLVWDQFHRI7ULDO&RXQVHO
)DLOXUHWRFKDOOHQJH0DUWLQ¶VZDUUDQWOHVVDUUHVW
0DUWLQ DUJXHV WKDW KLV FRXQVHO VKRXOG KDYH PRYHG WR
VXSSUHVV HYLGHQFH WKDW KH FRQWHQGV ZDV WKH IUXLW RI KLV
-DQXDU\ZDUUDQWOHVVDUUHVWDWWKHDSDUWPHQWKHVKDUHG
ZLWK3HGUR7KHGLVWULFWFRXUWKHOGWKDWWKLVFKDOOHQJHIDLOHG
EHFDXVH WKH SROLFH KDG SUREDEOH FDXVH WR DUUHVW 0DUWLQ
0DUWLQSRLQWVRXWWKDWDEVHQWH[LJHQWFLUFXPVWDQFHVSROLFH
RIILFHUV DUH UHTXLUHG WR VHFXUH DQ DUUHVW ZDUUDQW SULRU WR
DUUHVWLQJDVXVSHFWLQKLVKRPH6HH3D\WRQY1HZ<RUN
86 7KH6WDWHUHVSRQGVE\DUJXLQJWKDW
1HZ<RUNY+DUULV86 GHPRQVWUDWHV
WKDW0DUWLQ¶VZDUUDQWOHVVDUUHVWZRXOGQRWKDYHHQWLWOHGKLP
WRKDYHWKHVXEVHTXHQWLGHQWLILFDWLRQE\)RVWHUDQG3HGUR¶V
VWDWHPHQWWRSROLFHVXSSUHVVHG
0DUWLQGRHVQRWDUJXHWKDWWKHSROLFHODFNHGSUREDEOHFDXVH
WRDUUHVWKLP7KXVDOWKRXJK0DUWLQ¶VDUUHVWFRXOGKDYHEHHQ
LOOHJDOKLVLGHQWLILFDWLRQE\)RVWHUDQG3HGUR¶VVWDWHPHQWWR
SROLFHZHUHQRWVXSSUHVVLEOHIUXLWVRIWKLVWDLQWHGDFWLRQ6HH
LG $V DQ\ PRWLRQ WR VXSSUHVV WKLV HYLGHQFH ZRXOG KDYH
IDLOHG 0DUWLQ FDQQRW VKRZ KRZ WKH IDLOXUH WR PDNH WKH
PRWLRQZDVDUHVXOWRIKLVFRXQVHO¶VGHILFLHQWSHUIRUPDQFHRU
WKDW WKH IDLOXUH UHVXOWHG LQ SUHMXGLFH WR KLV GHIHQVH
$FFRUGLQJO\0DUWLQFDQQRWVKRZWKDWKLVDSSHOODWHFRXQVHO
UHQGHUHGLQHIIHFWLYHDVVLVWDQFHE\IDLOLQJWRUDLVHWKLVLVVXHRQ
1RV 0DUWLQY0LWFKHOO
$IWHU0UV0DUWLQ¶VWHVWLPRQ\WKHGHIHQVHVWDWHGWKDWLWKDG
QRWKLQJIXUWKHUWRRIIHU7KHMXGJHWKHQEHJDQFDOOLQJLQWRWKH
DXGLHQFHLQTXLULQJDVWRZKHWKHURWKHUIDPLO\PHPEHUVZHUH
SUHVHQWDQGZLVKHGWRWHVWLI\7KLVFRQVWLWXWHVWKHRWKHUDFWLRQ
E\WKHMXGJHWKDW0DUWLQFRQWHQGVGHPRQVWUDWHVKLVFRXQVHO¶V
LQHIIHFWLYHQHVVDWWKHKHDULQJ:KHQWKHMXGJHDVNHG0DUWLQ¶V
IDWKHU³'RQ¶W\RXZDQWWRFRPHXSKHUHDQGVSHDNIRU\RXU
VRQ"´KHUHSOLHG³<RXPHDQFRPHQRZ"´'HIHQVHFRXQVHO
WKHQVWDWHGWKDW0DUWLQ¶VIDWKHUGLGQRWZDQWWRWHVWLI\DQGWKH
MXGJH DVNHG ³<RX IHHO WKDW ZRXOG QRW EH KHOSIXO WR WKH
GHIHQGDQW"´WRZKLFKFRXQVHOUHVSRQGHG³,WPLJKWQRWEHLQ
WKHEHVWLQWHUHVW´7KHMXGJHWKHQLQTXLUHGZKHWKHU0DUWLQ¶V
FRXQVHOZDQWHGWRWDONWRDODG\LQWKHFRXUWURRP&RXQVHO
UHVSRQGHG³,ZRXOGOLNHWKHUHFRUGWRVKRZ-XGJHWKDWWKLV
LV QRW WKH ILUVW WLPH ZH KDYH WDONHG WR 0U :LONLQV DERXW
WHVWLI\LQJ0U$GULQH>FRFRXQVHO@KDVEHHQLQFRQVWDQW
FRPPXQLFDWLRQZLWKKLP8SWRWKLVSRLQWWKH\ZHUHILQH
EXWQRZWKHUHVHHPVWREHVRPHLQWHUHVW´$GULQHWKHQ
LQWHUUXSWHG LQGLFDWLQJ WKDW 0DUWLQ¶V JUDQGPRWKHU ZRXOG
WHVWLI\7KHMXGJHWKHQVWDWHG³2ND\%ULQJLQWKHMXU\´
(DUOLHU LQ WKH SURFHHGLQJ $GULQH VWDWHG ³<HV ZH PLJKW
IXUWKHU VWDWH IRU WKH UHFRUG WKDW ZH KDYH EHHQ LQ FRQVWDQW
FRQWDFWZLWKWKHIDPLO\RXWVLGHLQVLGHGXULQJWKHFRXUVHRI
WKHKHDULQJDQGZHKDYHGLVFXVVHGWKHPDWWHUVIXOO\ZLWKERWK
PRWKHUDQGIDWKHUWKHEURWKHUVLVWHUDQGE\WHOHSKRQHZH
KDYHKDGVHYHUDOFRQYHUVDWLRQV´
0DUWLQ¶VJUDQGPRWKHU+DWWLH0DH-RKQVRQWKHQWHVWLILHG
DERXWWKHIROORZLQJIDFWVVKHWRRNFDUHRI0DUWLQZKHQKH
ZDVDEDE\DQGZKHQKHZDVILYHDQGVL[\HDUVROGKHZDQWHG
WRJRWRFKXUFKZLWKKHUDWWKDWDJHVKHFRRNHGIRU0DUWLQ
DQGKLVVLEOLQJVDQGWKHLUIUHTXHQWKXQJHUDVFKLOGUHQZDVGXH
WR D ODFN RI ILQDQFLDO VXSSRUW IURP WKHLU IDWKHU 0DUWLQ¶V
PRWKHUKDGDKDUGWLPHUDLVLQJKHUFKLOGUHQGXHWRKHUDVWKPD
DQGUHVXOWLQJLQDELOLW\WRZRUNVWHDGLO\DQG0DUWLQ¶VOLPLWHG
FRQWDFW ZLWK KLV IDWKHU DQG WKHLU UHODWLRQVKLS ZDV QRW D
W\SLFDOO\³WLJKW´RQHEHWZHHQIDWKHUDQGFKLOG
%RWKSDUWLHVWKHQLQGLFDWHGWKH\KDGQRWKLQJIXUWKHUDQG
FORVLQJVWDWHPHQWVIROORZHG'HIHQVHFRXQVHOJDYHDFORVLQJ

-- 16 of 18 --

0DUWLQY0LWFKHOO 1RV
PHQWDO KHDOWK HGXFDWLRQDO HPSOR\PHQW MXYHQLOH DQG
LQFDUFHUDWLRQKLVWRULHV,QKLVDUJXPHQWV0DUWLQSRLQWVWRWZR
LQVWDQFHVZKHUHWKHWULDOMXGJHWRRNDQH[FHSWLRQDOO\DFWLYH
UROH LQKLVYLHZWDNLQJWKHSODFHRIFRXQVHOXSRQUHDOL]LQJ
WKHLUGHILFLHQFLHV DWWKHPLWLJDWLRQKHDULQJ$VUHOHYDQWWR
WKLV DUJXPHQW KH SRLQWV WR WKH WULDO MXGJH¶V LQGHSHQGHQW
SURFXUHPHQWRIKLVUHFRUGVIURPWKH0DQVILHOG5HIRUPDWRU\
DQG WKH ³+XPDQ 6HUYLFHV $JHQF\´ $ GLVFXVVLRQ RI WKLV
LQIRUPDWLRQRFFXUUHGRXWVLGHRIWKHSUHVHQFHRIWKHMXU\7KH
MXGJH FDOOHG WKH UHIRUPDWRU\¶V ZDUGHQ ZKR LQIRUPHG WKH
MXGJHWKDWDSV\FKRORJLFDOSURILOHUHVXOWLQJIURPLQWHUYLHZV
DQGWHVWLQJUHYHDOHG³QRWKLQJH[WUDRUGLQDU\WKDWZRXOGWULJJHU
WKHLULQWHUHVWVLQKDYLQJIXUWKHUSV\FKLDWULFH[DPLQDWLRQVRI
WUHDWPHQWGRQHRI>VLF@WKHPDQ´7KHMXGJHODWHUSURYLGHG
GHIHQVH FRXQVHO ZLWK D OHWWHU IURP WKH ZDUGHQ WKDW ZDV
FRQVLVWHQWZLWKWKHLUSUHYLRXVFRQYHUVDWLRQDERXWWKHUHFRUGV
'HIHQVHFRXQVHOFRQFOXGHGWKDWWKHOHWWHUZDVRIQRYDOXHIRU
PLWLJDWLRQ EXW PDGH LW SDUW RI WKH UHFRUG IRU ³DSSHOODWH
SXUSRVHV´
0UV0DUWLQ¶VDIILGDYLWVWDWHVWKDWFRXQVHOGLGQRWSUHSDUH
KHUWRWHVWLI\DQGWKDWVKHGLGQRWNQRZWKDWVKHZRXOGWHVWLI\
XQWLOWKHGD\RIWKHKHDULQJ$UHYLHZRIKHUWHVWLPRQ\VKRZV
WKDW LW GHVFULEHG WKH IROORZLQJ 0DUWLQ¶V SUREOHPV ZLWK
MXYHQLOH FRXUW DQG VFKRRO KLV LQVWLWXWLRQDOL]DWLRQ DV D
MXYHQLOHKHUEHLQJRQZHOIDUHGXULQJKLV\RXWKWKHODFNRI
ILQDQFLDO VXSSRUW IURP 0DUWLQ¶V IDWKHU 0DUWLQ¶V DEQRUPDO
EHKDYLRU DW VFKRRO ZKLFK OHG WR KLV UHIHUUDO WR WKH &KLOG
*XLGDQFH&HQWHUKLVSV\FKLDWULFWHVWLQJDWVFKRROKLVDEXVH
DW WKH KDQGV RI KHU DOFRKROLF KXVEDQG KLV SK\VLFDO DQG
SV\FKRORJLFDOLQMXULHVWKDWUHVXOWHGIURPDJDVH[SORVLRQKLV
GURSSLQJ RXW RI VFKRRO WR ZRUN IRU PRQH\ WR SXUFKDVH
DGHTXDWH FORWKLQJ DQG RWKHU HPSOR\PHQW KLVWRU\ 7KLV
WHVWLPRQ\DQGWKHSUREDWLRQUHSRUWDSSDUHQWO\SURYLGHGWKH
IDFWXDOEDVLVIRUWKHRQHPLWLJDWLQJIDFWRUWKDWWKHWULDOMXGJH
IRXQG0DUWLQ¶VEDFNJURXQGDOWKRXJKWKHFRXUWFRQFOXGHG
WKDWLWZDVRXWZHLJKHGE\WKHDJJUDYDWLQJFLUFXPVWDQFHRIWKH
FULPH
1RV 0DUWLQY0LWFKHOO
:H JUDQWHG D PRWLRQ SHUPLWWLQJ 0DUWLQ WR ILOH WKHVH GRFXPHQWV
DOWKRXJK WKH\ ZHUH QRW EHIRUH WKH GLVWULFW FRXUW 7KHUH LV QR DVVHUWLRQ RI
KRZ PDQ\ KRXUV ZHUH VSHQW E\ FRFRXQVHO RU WKH LQYHVWLJDWRU
GLUHFW DSSHDO DQG WKHUHIRUH KH FDQQRW VKRZ FDXVH DQG
SUHMXGLFHIRUKLVSURFHGXUDOGHIDXOWLQWKLVUHJDUG
)DLOXUHWRLQYHVWLJDWHDQGSUHSDUHIRUWULDO
0DUWLQDUJXHVWKDWKLVWULDO³FRXQVHOIDLOHGWRDGHTXDWHO\
SUHSDUHWKHFDVHDQGIDLOHGWRFRQGXFWPLQLPDOLQYHVWLJDWLRQ´
6SHFLILFDOO\KHWDNHVLVVXHZLWKFRXQVHO¶VDOOHJHGIDLOXUHWR
UHWDLQWKHVHUYLFHVRIH[SHUWVVXFKDVDEDOOLVWLFVH[SHUWRU
D SV\FKRORJLVW IRU SXUSRVHV RI PLWLJDWLRQ DGHTXDWHO\
SUHSDUHIRUFURVVH[DPLQDWLRQRIWKH6WDWH¶VZLWQHVVHVWRZLW
D WRH[DPLQHWKHVWDWHPHQWWKDW$QWRLQHWWH+HQGHUVRQJDYH
WRSROLFHZKLFKSURYLGHGSUREDEOHFDXVHIRUKLVDUUHVWDQG
E WRFRQWDFWDQGRULQWHUYLHZ0DUWLQ¶VPRWKHUEURWKHUDQ\
RIWKH6WDWH¶VZLWQHVVHVDQG5LHYHV%H\0DUWLQGLGQRWUDLVH
WKLV LVVXH LQ KLV GLUHFW DSSHDO WKXV WKHVH LVVXHV DUH
SURFHGXUDOO\GHIDXOWHG+RZHYHUZHZLOOUHYLHZWKHPHULWV
RIWKHVHLVVXHVIRUSXUSRVHVRIFDXVHDQGSUHMXGLFHDQDO\VLV
$VHYLGHQFHRIKLVFRXQVHO¶VIDLOLQJV0DUWLQSRLQWVWRDIHH
DSSOLFDWLRQZKLFKVKRZVWKDWRQHRIWZRFRXQVHOVSHQW
KRXUVSUHSDULQJIRUWULDO:KDWKHGRHVQRWVKRZKRZHYHU
LV KRZ WKH UHWHQWLRQ RI H[SHUWV DQ H[DPLQDWLRQ RI
+HQGHUVRQ¶VVWDWHPHQWDQGFRQWDFWLQJDQGRULQWHUYLHZLQJ
KLV IDPLO\ PHPEHUV ZRXOG KDYH EHHQ EHQHILFLDO WR KLV
GHIHQVH7KXVKHKDVVKRZQQRSUHMXGLFHZLWKUHJDUGWRWKHVH
DOOHJHGIDLOLQJV
+HDUJXHVWKDW5LHYHV%H\¶VEHOLHIWKDW0DUWLQZDVQRWWKH
PDQKHVDZIOHHLQJIURPWKHVFHQHRIWKHFULPHVKRZVWKDWWKH
IDLOXUHWRVHFXUHWKLVWHVWLPRQ\SUHMXGLFHGKLVFDVH$VVWDWHG
DERYH 5LHYHV%H\¶V VWDWHPHQWV ZKLOH LQFRQVLVWHQW ZLWK
UHJDUGWRWKHGHVFULSWLRQRIWKHIOHHLQJPDQFRUURERUDWHGWKH
IDFWXDODFFRXQWRIHYHQWVWHVWLILHGWRE\3HGUR$OVR5LHYHV
%H\¶VUHOLDELOLW\DVDZLWQHVVLVTXHVWLRQDEOHDWEHVWJLYHQWKH
LQFRQVLVWHQFLHV LQ KLV VWDWHPHQWV DQG WHVWLPRQ\ DQG KLV

-- 17 of 18 --

0DUWLQY0LWFKHOO 1RV
DGPLVVLRQRIGUXJXVHDQGLWVHIIHFWRQKLVPHPRU\%RWKWKH
6WDWH DQG WKH GHIHQVH VRXJKW WR VHFXUH 5LHYHV%H\¶V
WHVWLPRQ\EXWKHFRXOGQRWEHORFDWHGLQWLPHWRDSSHDUDW
WULDO+LVWHVWLPRQ\ZRXOGKDYHEHHQGHWULPHQWDOWR0DUWLQ¶V
GHIHQVHDQGLWVDEVHQFHZLOOQRWVXSSRUWDILQGLQJWKDWKLVWULDO
FRXQVHO SHUIRUPHG LQHIIHFWLYHO\ WKDW KLV DSSHOODWH FRXQVHO
ZDVLQHIIHFWLYHIRUQRWUDLVLQJWKHLVVXHRQDSSHDORUWKDWKH
VXIIHUHGSUHMXGLFHE\WKHVHDOOHJHGIDLOLQJV
,QHIIHFWLYHFURVVH[DPLQDWLRQ
0DUWLQ DUJXHV WKDW KLV WULDO FRXQVHO UHQGHUHG LQHIIHFWLYH
DVVLVWDQFHE\IDLOLQJWR HIIHFWLYHO\FURVVH[DPLQH3HGUR
UHJDUGLQJ D WKHLQFRQVLVWHQF\EHWZHHQ3HGUR¶VDQG.LGG¶V
WHVWLPRQ\DQG3HGUR¶VSUHYLRXVVWDWHPHQWFRQFHUQLQJZKHWKHU
0DUWLQGURSSHGWKHWZRRIIRUZHQWLQVLGHZLWKWKHPDWDQ
DIWHUKRXUV HVWDEOLVKPHQW E 3HGUR¶V ³IDOOLQJ RXW´ ZLWK
+HQGHUVRQ DQG WKH TXHVWLRQ RI ZKHWKHU +HQGHUVRQ KHOG D
JUXGJHDJDLQVW3HGURDQG0DUWLQ F 3HGUR¶VUHQGLWLRQRIKRZ
VKHIRXQGPRQH\DW5RELQVRQ¶VVWRUH G 3HGUR¶VWHVWLPRQ\
WKDWVKHKDGDUJXHGZLWK0DUWLQRQWKHGD\RIWKHLUDUUHVWV
DQG HIIHFWLYHO\ FURVVH[DPLQH +HQGHUVRQ UHJDUGLQJ
D KHUJUXGJHDJDLQVW0DUWLQDQG E LQFRQVLVWHQF\EHWZHHQ
KHU WHVWLPRQ\ DQG 3HGUR¶V WHVWLPRQ\ DERXW RYHUKHDULQJ
GLVFXVVLRQVRIWKHSODQWRURE5RELQVRQ
0DUWLQ¶V DUJXPHQWV ZLWK UHJDUG WR HIIHFWLYH FURVV
H[DPLQDWLRQ RI 3HGUR DQG +HQGHUVRQ DUH ZLWKRXW PHULW
0DUWLQ SRLQWV RQO\ WR DWWHQXDWHG FROODWHUDO IDFWV DQG
QRQH[LVWHQWLQFRQVLVWHQFLHVLQPDNLQJWKLVDUJXPHQW:KHUH
DUJXDEO\PDWHULDOLQFRQVLVWHQFLHVH[LVWVXFKDV+HQGHUVRQ¶V
DQG3HGUR¶VUHFROOHFWLRQVRIZKHQWKHUREEHU\ZDVGLVFXVVHG
RWKHUHYLGHQFH )RVWHU¶VWHVWLPRQ\DERXWWKHWKHIWRIWKHJXQ
EDOOLVWLFV HYLGHQFH .LGG¶V WHVWLPRQ\ DERXW 0DUWLQ¶V
SRVVHVVLQJHPSW\VKHOOFDVLQJV FRUURERUDWHVRULQGHSHQGHQWO\
SURYHV WKH IDFWV WKDW 0DUWLQ FRQWHQGV HIIHFWLYH FURVV
H[DPLQDWLRQ ZRXOG KDYH TXHVWLRQHG ,Q VXP WKH
RYHUZKHOPLQJ QDWXUH RI WKH HYLGHQFH RI JXLOW SUHFOXGHV
0DUWLQ IURP VKRZLQJ SUHMXGLFH UHVXOWLQJ IURP DQ\ DOOHJHG
GHILFLHQF\LQKLVFRXQVHO¶VFURVVH[DPLQDWLRQ
1RV 0DUWLQY0LWFKHOO
%0LWLJDWLRQ
0DUWLQ PDNHV WKUHH LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO
DUJXPHQWV UHODWHG WR WKH PLWLJDWLRQ SKDVH RI KLV FDSLWDO
FRQYLFWLRQ IDLOXUHWRLQYHVWLJDWHRUSUHSDUHIRUPLWLJDWLRQ
IDLOXUHWRREMHFWWRDMXU\LQVWUXFWLRQRQWKHUROHRIWKHMXU\
ZLWK UHJDUG WR WKH LPSRVLWLRQ RI WKH GHDWK VHQWHQFH DQG
FRXQVHO¶VUHTXHVWIRUDQGWKHSUHSDUDWLRQDQGLQWURGXFWLRQ
RIDSUHVHQWHQFHLQYHVWLJDWLRQUHSRUWDQGDSV\FKLDWULFFOLQLF
UHSRUW
)DLOXUHWRLQYHVWLJDWHDQGRWKHUZLVHSUHSDUHIRUWKH
PLWLJDWLRQSKDVH
0DUWLQ DUJXHV WKDW KLV FRXQVHO¶V PRVW HJUHJLRXV IDLOLQJV
RFFXUUHGGXULQJWKHPLWLJDWLRQVWDJHRIWKHWULDO+HFRQWHQGV
WKDWDQH[DPLQDWLRQRIZKDWRFFXUUHG RUGLGQRWRFFXU SULRU
WRDQGDWWKHPLWLJDWLRQKHDULQJSURYHVWKDWKLVFRXQVHOIDLOHG
WRLQYHVWLJDWHRURWKHUZLVHSUHSDUHIRUVHQWHQFLQJ&RXQVHO
PDGHQRRSHQLQJDUJXPHQWDWPLWLJDWLRQ7KH\FDOOHGWKUHH
ZLWQHVVHVSUREDWLRQRIILFHU-RDQQD+DLUVWRQZKRWHVWLILHGWR
SODFHKHUSUHVHQWHQFHUHSRUWLQWRHYLGHQFH0DUWLQ¶VPRWKHU
DQG KLV JUDQGPRWKHU 0DUWLQ¶V UHSO\ EULHI DOVR SRLQWV WR
VWDWHPHQWVWKDWKLVFRXQVHOPDGHWRWKHMXGJHDVHYLGHQFHRI
SUHMXGLFHDQGRUWRWDODEDQGRQPHQW
0DUWLQ FODLPV WKDW KLV FRXQVHO IDLOHG WR SUHSDUH IRU WKH
PLWLJDWLRQKHDULQJE\IDLOLQJWRFRQGXFWDQLQYHVWLJDWLRQLQWR
KLVEDFNJURXQG+HSRLQWVWRWKHIDLOXUHRIFRXQVHOWRFRQWDFW
KLVLPPHGLDWHIDPLO\PHPEHUVVDYHFRXQVHO¶V³WDONLQJ´ZLWK
KLVIDWKHUDQGUHTXHVWLQJDZULWWHQVWDWHPHQWIURPKLVPRWKHU
+H GRHV QRWH WKH SRVVLELOLW\ RI ³OLPLWHG FRQWDFW >EHWZHHQ
FRXQVHODQG@RWKHUIDPLO\PHPEHUVDWWKHFRXUWKRXVHRQWKH
GD\RIWKHKHDULQJ´+HOLVWVHLJKWIDPLO\PHPEHUVWKDWKDYH
VWDWHGWKURXJKDIILGDYLWVWKDWWKH\ZHUHUHDG\DQGZLOOLQJWR
WHVWLI\ DW PLWLJDWLRQ EXW ZHUH QRW LQWHUYLHZHG E\ FRXQVHO
0DUWLQGRHVQRWVKRZZKDWWKH\ZRXOGKDYHWHVWLILHGWRRU
KRZVXFKWHVWLPRQ\FRXOGKDYHDLGHGKLPDWVHQWHQFLQJ
0DUWLQDOVRWDNHVLVVXHZLWKKLVFRXQVHO¶VIDLOXUHWRFROOHFW
UHFRUGVDQGGRFXPHQWDU\HYLGHQFHSHUWLQHQWWRKLVPHGLFDO

-- 18 of 18 --

Continue sua pesquisa no ChatGPT ou Claude

Conecte o Omnilex para pesquisar o corpus jurídico pelo seu assistente de IA.