United States v. Maney

Summarize
Check Treatment

Related Cases

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    1R Y  !  s(55< /(( 0$1(<  'HIHQGDQW$SSHOODQW  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH:HVWHUQ'LVWULFWRI.HQWXFN\DW%RZOLQJ*UHHQ 1Rn7KRPDV%5XVVHOO'LVWULFWsXGJH 6XEPLWWHGsXO\ 'HFLGHGDQG)LOHG6HSWHPEHU %HIRUH*8<DQG0225(&LUFXLWsXGJHV'2:' 'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ 21 %5,()  6FRWW 7 :HQGHOVGRUI :(67(51 .(178&.< )('(5$/6 2)),&( )('(5$/ &20081,7<'()(1'(5,1&/RXLVYLOOH.HQWXFN\IRU 7KH +RQRUDEOH 'DYLG ' 'RZG sU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ   8QLWHG6WDWHVY0DQH\ 1R $SSHOODQW  /DUU\ ( )HQWUHVV 7HUU\ 0 &XVKLQJ $66,67$1781,7('67$7(6$77251(<6/RXLVYLOOH .HQWXFN\IRU$SSHOOHH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB .$5(1 1(/621 0225( &LUFXLW sXGJH  sHUU\ /HH 0DQH\ ZDV FRQYLFWHG RI DWWHPSW WR HVFDSH IURP IHGHUDO FXVWRG\DQGIRUFLEOHDVVDXOWE\XVHRIDGDQJHURXVZHDSRQ 2QDSSHDOKHDUJXHV  WKDWWKH,QGLFWPHQWIDLOHGWRDOOHJH WKHHVVHQWLDOHOHPHQWVRIWKHHVFDSHFRXQWDQG  WKDWWKH GLVWULFWFRXUWDEXVHGLWVGLVFUHWLRQLQQRWLPSRVLQJ0DQH\jV VHQWHQFHRILPSULVRQPHQWWRUXQSDUWLDOO\FRQFXUUHQWO\ZLWK KLV XQGLVFKDUJHG WHUP RI LPSULVRQPHQW IRU KLV SUHYLRXV FRQYLFWLRQVIRUEDQNUREEHU\DQGEHLQJDIHORQLQSRVVHVVLRQ RI D ILUHDUP ZKHQ WKH GLVWULFW FRXUW LQ FDOFXODWLQJ WKDW VHQWHQFH KDG LPSRVHG D WZROHYHO HQKDQFHPHQW IRU REVWUXFWLRQRIMXVWLFHDQGKDGGHQLHGDWKUHHOHYHOUHGXFWLRQ IRUDFFHSWDQFHRIUHVSRQVLELOLW\EDVHGRQKLVVDPHFRQGXFWLQ WKHLQVWDQWHVFDSHRIIHQVH%DVHGRQWKHIROORZLQJUHDVRQV ZH$)),50WKHGLVWULFWFRXUWjVMXGJPHQW ,)$&76$1'352&('85( 2QsXQHsHUU\/HH0DQH\SOHDGHGJXLOW\WRIRXU FRXQWVRIEDQNUREEHU\LQYLRODWLRQRI86&† D DQGWRRQHFRXQWRIEHLQJDIHORQLQSRVVHVVLRQRIDILUHDUPLQ YLRODWLRQRI86&†† J  DQG D  LQWKH86 'LVWULFW&RXUWIRUWKH0LGGOH'LVWULFWRI7HQQHVVHH8QGHU WKHSOHDDJUHHPHQWWKHJRYHUQPHQWVWDWHGWKDWLWFRXOGILOHD PRWLRQ XQGHU 866* † . UHTXHVWLQJ D GRZQZDUG GHSDUWXUH LI 0DQH\ SURYLGHG VXEVWDQWLDO DVVLVWDQFH LQ WKH LQYHVWLJDWLRQRUSURVHFXWLRQRIRWKHULQGLYLGXDOV ZKRKDYH FRPPLWWHGIHGHUDOFULPHV0DQH\ZDVDOUHDG\LQFXVWRG\DW WKLVWLPH+HZDVDUUHVWHGLQFRQQHFWLRQZLWKWKHVHRIIHQVHV RQ0DUFKDQGZDVRUGHUHGLQWRWKHFXVWRG\RIWKH 860DUVKDOV6HUYLFHSHQGLQJWULDODIWHUZDLYLQJKLVULJKWWR DGHWHQWLRQKHDULQJRQ0DUFK2QsXO\WKH  8QLWHG6WDWHVY0DQH\ 1R 1R 8QLWHG6WDWHVY0DQH\  SRVVHVVLRQRIDILUHDUP$VGLVFXVVHGDERYHWKHGLVWULFWFRXUW 86 0DUVKDOV 6HUYLFH WUDQVIHUUHG 0DQH\ WR WKH :DUUHQ FRUUHFWO\FRQVLGHUHGWKHIDFWRUVVHWRXWLQ86&† D &RXQW\5HJLRQDOsDLOLQWKH:HVWHUQ'LVWULFWRI.HQWXFN\ DQG LQ WKH 6HQWHQFLQJ *XLGHOLQHV LQ PDNLQJ WKLV GHWHUPLQDWLRQ,QDGGLWLRQDOWKRXJKWKHGLVWULFWFRXUWGLGQRW 2Q2FWREHU0DQH\DWWHPSWHGWRHVFDSHIURPWKH H[SUHVVO\PDNHWKLVILQGLQJLQLWVRUDOUXOLQJZHQRWHWKDWLQ :DUUHQ&RXQW\5HJLRQDOsDLO0DQH\JUDEEHG'HSXW\sDLOHU VHQWHQFLQJ0DQH\IRUKLVFRQYLFWLRQVIRUEDQNUREEHU\DQG &DWK\sR)ORUDSXWDUD]RUEODGHWRKHUWKURDWDQGWKUHDWHQHG EHLQJ D IHORQ LQ SRVVHVVLRQ RI D ILUHDUP WKH 86 'LVWULFW WR VOLW KHU WKURDW LI KH ZDV QRW DOORZHG DFFHVV WR WKH PDLQ &RXUWIRUWKH0LGGOH'LVWULFWRI7HQQHVVHHVHQWHQFHG0DQH\ FRQWURO URRP ZKHUH WKH GRRUV WR WKH MDLO ZHUH FRQWUROOHG WRDWHUPRILPSULVRQPHQWPRQWKVWKDWIDOOVZLWKLQWKH )ORUDWROG0DQH\WKDWVKHZDVDERXWWRIDLQWDQGDVVKHIHOO UDQJHRILPSULVRQPHQWRIWRPRQWKVWKDWZRXOGKDYH GRZQ 0DQH\ ORVW KLV EDODQFH DQG ZDV VXEGXHG E\ RWKHU EHHQ DSSOLFDEOH LI 0DQH\jV HVFDSH DWWHPSWV KDG QRW EHHQ JXDUGV)ORUDVXVWDLQHGFXWVDQGEUXLVHVWRKHUWKURDWDQGKDV FRQVLGHUHGDQG0DQH\KDGUHFHLYHGWKHWKUHHOHYHOUHGXFWLRQ VXIIHUHGIURPHPRWLRQDOSUREOHPVDVDUHVXOWRIWKHLQFLGHQW IRUDFFHSWDQFHRIUHVSRQVLELOLW\DQGKDGQRWUHFHLYHGWKHWZR OHYHO HQKDQFHPHQW IRU REVWUXFWLRQ RI MXVWLFH  %HFDXVH 2Q 'HFHPEHU   0DQH\ ZDV VHQWHQFHG WR  FRQVLGHUDWLRQ RI 0DQH\j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†&EDVHGRQWKUHHVHSDUDWHHVFDSHDWWHPSWVE\0DQH\ FRQVHFXWLYH VHQWHQFH IRU 0DQH\jV HVFDSH FRQYLFWLRQ ,QDGGLWLRQWRWKH2FWREHUHVFDSHDWWHPSWGHVFULEHG $FFRUGLQJO\ZHFRQFOXGHWKDWWKHGLVWULFWFRXUWGLGQRWDEXVH DERYH 0DQH\ DWWHPSWHG WR HVFDSH IURP WKH FXVWRG\ RI LWVGLVFUHWLRQLQLPSRVLQJDFRQVHFXWLYHVHQWHQFHWR0DQH\jV 'DYLGVRQ&RXQW\FRUUHFWLRQDOSHUVRQQHORQ0DUFK XQGLVFKDUJHGVHQWHQFHIRUKLVFRQYLFWLRQVIRUEDQNUREEHU\ DQG WKHQ DWWHPSWHG WR HVFDSH IURP WKH :DUUHQ &RXQW\ DQGEHLQJDIHORQLQSRVVHVVLRQRIDILUHDUP 5HJLRQDOsDLORQ2FWREHU$FFRUGLQJO\WKHGLVWULFW FRXUWDOVRGHQLHG0DQH\jVUHTXHVWIRUDWKUHHOHYHOUHGXFWLRQ ,,,&21&/86,21 IRU DFFHSWDQFH RI UHVSRQVLELOLW\ XQGHU 866* † ( ZKLFKWKHJRYHUQPHQWKDGQRWRSSRVHG %DVHGRQWKHIRUHJRLQJZH$)),50WKHGLVWULFWFRXUWjV MXGJPHQW 2Q sXQH   DQ LQGLFWPHQW ZDV LVVXHG LQ WKH 86 'LVWULFW&RXUWIRUWKH:HVWHUQ'LVWULFWRI.HQWXFN\FKDUJLQJ 0DQH\ ZLWK DWWHPSW WR HVFDSH IURP IHGHUDO FXVWRG\ LQ YLRODWLRQ RI  86& †  D  LQ &RXQW 2QH DQG ZLWK IRUFLEOHDVVDXOWE\XVHRIDGDQJHURXVZHDSRQRQDSHUVRQ DVVLVWLQJDIHGHUDORIILFHULQWKHSHUIRUPDQFHRIRIILFLDOGXWLHV LQYLRODWLRQRI86&† D DQG E LQ&RXQW7ZRLQ FRQQHFWLRQZLWKKLVDFWLRQVDWWKH:DUUHQ&RXQW\5HJLRQDO sDLO RQ 2FWREHU    7KH FDVH SURFHHGHG WR WULDO RQ 1RYHPEHU    $IWHU WKH JRYHUQPHQWjV RSHQLQJ VWDWHPHQW 0DQH\ PRYHG WR GLVPLVV &RXQW 2QH RI WKH  8QLWHG6WDWHVY0DQH\ 1R 1R 8QLWHG6WDWHVY0DQH\  ,QGLFWPHQW RQ WKHJURXQGVWKDWLWIDLOHGWRVWDWHDQRIIHQVH YLRODWH SULQFLSOHV RI GRXEOH MHRSDUG\ ZKHQ LW LPSRVHG D DJDLQVW WKH 8QLWHG 6WDWHV EHFDXVH LW RPLWWHG D QHFHVVDU\ FRQVHFXWLYHVHQWHQFHIRUKLVFRQYLFWLRQIRUIDLOXUHWRDSSHDU HOHPHQWRIWKHRIIHQVH7KHFRXUWGHQLHG0DQH\jVPRWLRQ ZKHUH WKLV FRQGXFW ZDV XVHG WR HQKDQFH KLV VHQWHQFH IRU 0DQH\UHQHZHGWKLVREMHFWLRQLQPRWLRQVIRUDMXGJPHQWRI REVWUXFWLRQRIMXVWLFHXQGHU866*†&ZLWKUHVSHFWWR DFTXLWWDO ZKLFK DOVR ZHUH GHQLHG  7KH MXU\ IRXQG 0DQH\ D VHSDUDWH FRXQWHUIHLWLQJ DQG FRQVSLUDF\ FRQYLFWLRQ  FHUW JXLOW\RIERWK&RXQWV2QHDQG7ZRRIWKH,QGLFWPHQW GHQLHG86   2Q $SULO   WKH GLVWULFW FRXUW KHOG D VHQWHQFLQJ ,QWKLVFDVHLQVHQWHQFLQJ0DQH\IRUKLVFRQYLFWLRQVIRU KHDULQJ0DQH\ILOHGDPRWLRQUHTXHVWLQJWKHFRXUWSXUVXDQW EDQNUREEHU\DQGEHLQJDIHORQLQSRVVHVVLRQRIDILUHDUPWKH WR 866* † * WR UXQ KLV VHQWHQFH FRQFXUUHQWO\ RU 86 'LVWULFW &RXUW IRU WKH 0LGGOH 'LVWULFW RI 7HQQHVVHH SDUWLDOO\ FRQFXUUHQWO\ ZLWK KLV XQGLVFKDUJHG WHUP RI FRQVLGHUHG 0DQH\jV XQFKDUJHG DWWHPSWV WR HVFDSH IURP LPSULVRQPHQWIRUKLVFRQYLFWLRQVIRUEDQNUREEHU\DQGEHLQJ FXVWRG\ ZKHQ LW DSSOLHG D WZROHYHO HQKDQFHPHQW IRU DIHORQLQSRVVHVVLRQRIDILUHDUPEHFDXVHWKH86'LVWULFW REVWUXFWLRQRIMXVWLFHDQGGHQLHG0DQH\jVUHTXHVWIRUDWKUHH &RXUW IRU WKH 0LGGOH 'LVWULFW RI 7HQQHVVHH DOUHDG\ KDG OHYHO UHGXFWLRQ IRU DFFHSWDQFH RI UHVSRQVLELOLW\  $OWKRXJK LQFUHDVHGKLVVHQWHQFHIRUWKRVHFRQYLFWLRQVE\DSSO\LQJWKH WKLVUHVXOWHGLQDKLJKHUJXLGHOLQHUDQJHWKDQLIWKLVFRQGXFW REVWUXFWLRQ RI MXVWLFH HQKDQFHPHQW DQG GHQ\LQJ WKH KDG QRW EHHQ FRQVLGHUHG WKH GLVWULFW FRXUW RQO\ VHQWHQFHG DFFHSWDQFH RI UHVSRQVLELOLW\ UHGXFWLRQ EDVHG RQ KLV HVFDSH 0DQH\WRWKHVWDWXWRU\PD[LPXPDOORZHGIRUKLVFRQYLFWLRQV DWWHPSWV  7KH GLVWULFW FRXUW UHMHFWHG WKLV DUJXPHQW DQG 7KHUHIRUHLQDFFRUGDQFHZLWKWKH6XSUHPH&RXUWj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mWREHLQIRUPHGRIWKHQDWXUH $OWKRXJKWKH86'LVWULFW&RXUWIRUWKH:HVWHUQ'LVWULFWRI DQGFDXVHRIWKHDFFXVDWLRQlDJDLQVWKLP86 &2167DPHQG .HQWXFN\ZDVQRWIDFHGZLWKDGRXEOHMHRSDUG\SUREOHPLQ 9,  ,Q DGGLWLRQ WKH ,QGLFWPHQW &ODXVH RI WKH )LIWK WKLVFDVHZHQRWHWKDWLWVWLOOKDGWRFRQVLGHUWKHIDFWRUVVHW $PHQGPHQWUHTXLUHVWKDWDGHIHQGDQWEHFKDUJHGZLWKRQO\ IRUWKLQ86&† D LQGHFLGLQJZKHWKHUWRLPSRVHD WKRVH FKDUJHV EURXJKW EHIRUH WKH JUDQG MXU\  86 &2167 FRQFXUUHQWRUFRQVHFXWLYHWHUPRILPSULVRQPHQWRQ0DQH\ DPHQG 9  7KH 6XSUHPH &RXUW KDV LQVWUXFWHG WKDW DQ ,WPD\EHDSSURSULDWHLQVRPHFDVHVFRQVLGHULQJWKHUHOHYDQW LQGLFWPHQWVDWLVILHVWKHVHFRQVWLWXWLRQDOUHTXLUHPHQWVmLILW IDFWRUV WR LPSRVH D FRQFXUUHQW VHQWHQFH IRU DQ RIIHQVH ILUVWFRQWDLQVWKHHOHPHQWVRIWKHRIIHQVHFKDUJHGDQGIDLUO\ LQYROYLQJFRQGXFWWKDWVHUYHGDVDVHQWHQFHHQKDQFHPHQWIRU LQIRUPV D GHIHQGDQW RI WKH FKDUJH DJDLQVW ZKLFK KH PXVW DVHSDUDWHFRQYLFWLRQDQGVHQWHQFH,QWKLVFDVHKRZHYHUWKH GHIHQG DQG VHFRQG HQDEOHV KLP WR SOHDG DQ DFTXLWWDO RU GLVWULFWFRXUWFKRVHWRUXQ0DQH\jVVHQWHQFHIRUKLVHVFDSH FRQYLFWLRQLQEDURIIXWXUHSURVHFXWLRQVIRUWKHVDPHRIIHQVHl FRQYLFWLRQFRQVHFXWLYHWR0DQH\jVXQGLVFKDUJHGVHQWHQFHIRU +DPOLQJ Y 8QLWHG 6WDWHV  86     VHH KLV FRQYLFWLRQV IRU EDQN UREEHU\ DQG EHLQJ D IHORQ LQ 5XVVHOOY8QLWHG6WDWHV86  8QLWHG  8QLWHG6WDWHVY0DQH\ 1R 1R 8QLWHG6WDWHVY0DQH\  7KH&RXUWKHOGWKDWmZKHUHWKHOHJLVODWXUHKDVDXWKRUL]HG 6WDWHVY6WXUPDQ)G WK&LU  DSDUWLFXODUSXQLVKPHQWUDQJHIRUDJLYHQFULPHWKHUHVXOWLQJ FHUWGHQLHG86  :HKDYHVWDWHGWKDWm>W@R VHQWHQFHZLWKLQWKDWUDQJHFRQVWLWXWHVSXQLVKPHQWRQO\IRUWKH EHOHJDOO\VXIILFLHQWWKHLQGLFWPHQWPXVWDVVHUWIDFWVZKLFKLQ RIIHQVH RI FRQYLFWLRQ IRU SXUSRVHV RI WKH GRXEOH MHRSDUG\ ODZ FRQVWLWXWH DQ RIIHQVH DQG ZKLFK LI SURYHG ZRXOG LQTXLU\l  ,G DW   %HFDXVH WKH GLVWULFW FRXUWjV HVWDEOLVK SULPD IDFLH WKH GHIHQGDQWjV FRPPLVVLRQ RI WKDW FRQVLGHUDWLRQ RI WKH GHIHQGDQWjV FRQGXFW LQ GLVWULEXWLQJ FULPHl8QLWHG6WDWHVY6XSHULRU*URZHUV6XSSO\,QF FRFDLQHZDVXVHGWRHQKDQFHKLVVHQWHQFHZLWKLQWKHUDQJH )G   WK &LU    m&RXUWV XWLOL]H D FRPPRQ DXWKRUL]HG IRU WKH PDULMXDQD FKDUJH LW GLG QRW FRQVWLWXWH VHQVH FRQVWUXFWLRQ LQ GHWHUPLQLQJ ZKHWKHU DQ LQGLFWPHQW SXQLVKPHQW IRU WKH FRFDLQH RIIHQVHV  7KHUHIRUH WKH VXIILFLHQWO\ LQIRUPV D GHIHQGDQW RI DQ RIIHQVHl  $OOHQ Y JRYHUQPHQWjVVXEVHTXHQWSURVHFXWLRQDQGSXQLVKPHQWRIWKH 8QLWHG6WDWHV)G WK&LU :HUHYLHZ GHIHQGDQW IRU WKH FRFDLQH RIIHQVHV ZDV QRW EDUUHG E\ GH QRYR D GLVWULFW FRXUWjV GHWHUPLQDWLRQ WKDW DQ LQGLFWPHQW SULQFLSOHVRIGRXEOHMHRSDUG\6HHLG DGHTXDWHO\DOOHJHVWKHHOHPHQWVRIWKHRIIHQVHFKDUJHG6HH 6XSHULRU*URZHUV6XSSO\)GDW 6HYHUDORWKHUFRXUWVRIDSSHDOVKDYHDSSOLHGWKH6XSUHPH &RXUWjV KROGLQJ LQ :LWWH LQ FDVHV LQ ZKLFK D GHIHQGDQW ,QRUGHUWRVWDWHDIHORQ\HVFDSHFKDUJHXQGHU86& UHFHLYHGDVHQWHQFHHQKDQFHPHQWIRUREVWUXFWLRQRIMXVWLFH † D DQLQGLFWPHQWPXVWDOOHJHWKHIROORZLQJHOHPHQWV XQGHU 866* † & DQG WKHQ ODWHU ZDV SURVHFXWHG   WKDW WKH GHIHQGDQW HVFDSHG RU DWWHPSWHG WR HVFDSH  FRQYLFWHGDQGRUVHQWHQFHGIRUWKHREVWUXFWLYHFRQGXFW6HH IURP WKH FXVWRG\ RI WKH $WWRUQH\ *HQHUDO RU KLV RU KHU 8QLWHG6WDWHVY5RKGH)G WK&LU DSSRLQWHG DJHQW IURP D IDFLOLW\ RU LQVWLWXWLRQ ZKHUH WKH KROGLQJ WKDW D GLVWULFW FRXUWjV WZROHYHO HQKDQFHPHQW RI D GHIHQGDQW ZDV FRQILQHG DW WKH GLUHFWLRQ RI WKH $WWRUQH\ GHIHQGDQWjVVHQWHQFHXQGHU866*†&IRUSHUMXU\GLG *HQHUDOIURPFXVWRG\E\YLUWXHRIDQ\SURFHVVLVVXHGXQGHU QRWFRQVWLWXWHSXQLVKPHQWIRUWKDWFRQGXFWWREDUVXEVHTXHQW WKH ODZV RI WKH 8QLWHG 6WDWHV E\ DQ\ FRXUW MXGJH RU SURVHFXWLRQIRUSHUMXU\ 8QLWHG6WDWHVY*ULVDQWL)G FRPPLVVLRQHURUIURPWKHFXVWRG\RIDQRIILFHURUHPSOR\HH  G&LU  FRQFOXGLQJWKDWWKHHQKDQFHPHQW RIWKH8QLWHG6WDWHVSXUVXDQW WRODZIXODUUHVWDQG  WKDW RI GHIHQGDQWjV VHQWHQFH IRU REVWUXFWLRQ RI MXVWLFH XQGHU FXVWRG\ ZDV EDVHG RQ DQ DUUHVW RQ D IHORQ\ FKDUJH RU 866* † & ZDV QRW SXQLVKPHQW IRU WKH REVWUXFWLRQ FRQYLFWLRQRIDQ\RIIHQVH6HH8QLWHG6WDWHVY9DQRYHU FRQGXFWDQGWKHUHIRUHSURVHFXWLRQDQGSXQLVKPHQWIRUWKDW )G WK&LU FHUWGHQLHG86 FRQGXFWLVQRWEDUUHGE\GRXEOHMHRSDUG\ 8QLWHG6WDWHVY   5RVV)G WK&LU  KROGLQJWKDWWKH REVWUXFWLRQ RI MXVWLFH HQKDQFHPHQW GRHV QRW FRQVWLWXWH SXQLVKPHQWRIWKHREVWUXFWLYHFRQGXFWWREDUFKDUJLQJDQG SXQLVKLQJ D GHIHQGDQW IRU WKH REVWUXFWLYH FRQGXFW LQ D   86& †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†&LQ SURFHVV LVVXHG XQGHU WKH ODZV RI WKH 8QLWHG 6WDWHV E\ DQ\ FRXUW MXGJH RU FRPPLVVLRQHU RU IURP WKH FXVWRG\ RI DQ RIILFHU RU WKHVHQWHQFLQJIRUDSUHYLRXVFRQYLFWLRQ FHUWGHQLHG HPSOR\HH RI WKH 8QLWHG 6WDWHV SXUVXDQW WR ODZIXO DUUHVW VKDOO LI 86   8QLWHG6WDWHVYsHUQLJDQ)G WKH FXVWRG\ RU FRQILQHPHQW LV E\ YLUWXH RI DQ DUUHVW RQ D FKDUJH  WK&LU  FRQFOXGLQJWKDWWKHGLVWULFWFRXUWGLGQRW RI IHORQ\ RU FRQYLFWLRQ RI DQ\ RIIHQVH EH ILQHG XQGHU WKLV WLWOH RU LPSULVRQHG QRW PRUH WKDQ ILYH \HDUV RU ERWK  8QLWHG6WDWHVY0DQH\ 1R 1R 8QLWHG6WDWHVY0DQH\  &RXQW2QHRIWKH,QGLFWPHQWFKDUJHV0DQH\DVIROORZV ,Q VXSSRUW RI WKLV DUJXPHQW 0DQH\ SRLQWV WR 866* † * E  ZKLFK UHTXLUHV D GLVWULFW FRXUW WR LPSRVH D 2Q RU DERXW WKH UG GD\ RI 2FWREHU  LQ WKH VHQWHQFH FRQFXUUHQWO\ ZLWK DQ XQGLVFKDUJHG WHUP RI :HVWHUQ'LVWULFWRI.HQWXFN\:DUUHQ&RXQW\.HQWXFN\ LPSULVRQPHQWWKDWUHVXOWHGIURPRIIHQVHVWKDWKDYHEHHQIXOO\ s(55</((0$1(<GHIHQGDQWKHUHLQGLGDWWHPSWWR WDNHQLQWRDFFRXQWLQWKHGHWHUPLQDWLRQRIWKHRIIHQVHOHYHO HVFDSHIURPWKH:DUUHQ&RXQW\5HJLRQDOsDLODIDFLOLW\ IRU WKH LQVWDQW RIIHQVH  0DQH\ FRQFHGHV WKDW KLV VLWXDWLRQ LQZKLFKKHZDVEHLQJKHOGLQFXVWRG\SXUVXDQWWRWKH GRHVQRWIDOOXQGHUWKLVSURYLVLRQEXWKHDVVHUWVWKDWLWVKRZV ODZVRIWKH8QLWHG6WDWHVZKLOHDZDLWLQJVHQWHQFLQJRQ WKDW WKH 6HQWHQFLQJ *XLGHOLQHV GR QRW VXSSRUW GRXEOH IHGHUDOIHORQ\FKDUJHV,QYLRODWLRQRI7LWOH8QLWHG SXQLVKPHQWIRUWKHVDPHFRQGXFWDQGWKHUHIRUHmDUHDVRQDEOH 6WDWHV&RGH6HFWLRQ D  SXQLVKPHQWl XQGHU 866* † * F  IRU KLV DWWHPSWHG HVFDSHDQGDVVDXOWFRQYLFWLRQVZRXOGEHWRUXQPRQWKVRI s$DW ,QGLFWPHQW  KLVWHUPRILPSULVRQPHQWFRQFXUUHQWO\ZLWKKLVXQGLVFKDUJHG VHQWHQFH 0DQH\DVVHUWVWKDWWKH,QGLFWPHQWGRHVQRWVHWIRUWKIDFWV VXIILFLHQW WRHVWDEOLVKWKHVHFRQGHOHPHQWRIFXVWRG\7KH 7KH6XSUHPH&RXUWDGGUHVVHG0DQH\jVDUJXPHQWLQ:LWWH JRYHUQPHQW UHVSRQGV WKDW WKH ,QGLFWPHQWjV VWDWHPHQW WKDW Y8QLWHG6WDWHV86  LQZKLFKDGHIHQGDQW 0DQH\mZDVEHLQJKHOGLQFXVWRG\SXUVXDQWWRWKHODZVRIWKH FODLPHGWKDWXQGHUWKH'RXEOHsHRSDUG\&ODXVHRIWKH)LIWK 8QLWHG 6WDWHV ZKLOH DZDLWLQJ VHQWHQFLQJ RQ IHGHUDO IHORQ\ $PHQGPHQWKHFRXOGQRWEHFRQYLFWHGDQGVHQWHQFHGIRUD FKDUJHVl DOOHJHV WKDW KH ZDV LQ FXVWRG\ mE\ YLUWXH RI DQ\ FULPHZKHQWKHFRQGXFWXQGHUO\LQJWKDWRIIHQVHZDVWDNHQ SURFHVV LVVXHG XQGHU WKH ODZV RI WKH 8QLWHG 6WDWHV E\ DQ\ LQWR DFFRXQW LQ GHWHUPLQLQJ KLV VHQWHQFH IRU D VHSDUDWH FRXUWMXGJHRUFRPPLVVLRQHUlWRHVWDEOLVKFXVWRG\XQGHU SUHYLRXV FRQYLFWLRQ  7KH GHIHQGDQW LQ WKDW FDVH SOHDGHG 86& †  D   :H DJUHH ZLWK WKH JRYHUQPHQW WKDW WKH JXLOW\ WR D PDULMXDQD FKDUJH DQG DW VHQWHQFLQJ WKH GLVWULFW ,QGLFWPHQWjVDOOHJDWLRQLVVXIILFLHQWWRHVWDEOLVKWKHHOHPHQW FRXUW FRQVLGHUHG WKH GHIHQGDQWjV XQFKDUJHG FRQGXFW LQ RIIHGHUDOFXVWRG\IRUDYLRODWLRQRI† D  GLVWULEXWLQJ FRFDLQH DV UHOHYDQW FRQGXFW XQGHU 866* †%WRHQKDQFHKLVVHQWHQFHRQWKHPDULMXDQDFKDUJH6HH $WWKHWLPHRI0DQH\jVDWWHPSWHGHVFDSHKHKDGSOHDGHG LGDW7KHJRYHUQPHQWVXEVHTXHQWO\SURVHFXWHGWKH JXLOW\ WR FKDUJHV RI EDQN UREEHU\ DQG EHLQJ D IHORQ LQ GHIHQGDQW IRU WKH FRFDLQH YLRODWLRQV  7KH GHIHQGDQW SRVVHVVLRQ RI D ILUHDUP DQG ZDV EHLQJ GHWDLQHG SHQGLQJ FKDOOHQJHG WKLV SURVHFXWLRQ RQ GRXEOH MHRSDUG\ JURXQGV VHQWHQFLQJSXUVXDQWWR86&† E ZKLFKSURYLGHV DVVHUWLQJWKDWKHDOUHDG\KDGEHHQSXQLVKHGIRUWKLVFRQGXFW WKDWm>D@MXGLFLDORIILFHURIDFRXUWRIRULJLQDOMXULVGLFWLRQRYHU ZKHQKLVVHQWHQFHIRUKLVPDULMXDQDFRQYLFWLRQZDVHQKDQFHG DQ RIIHQVH    VKDOO RUGHU WKDW SHQGLQJ LPSRVLWLRQ RU EDVHGRQWKLVVDPHFRQGXFW6HHLGDW H[HFXWLRQRIVHQWHQFHDSHUVRQEHUHOHDVHGRUGHWDLQHG XQGHUWKLVFKDSWHUlDQGXQGHU86&† D ZKLFK 7KH6XSUHPH&RXUWQRWHGWKDWWKH'RXEOHsHRSDUG\&ODXVH UHTXLUHVWKDWDSHUVRQZKRKDVEHHQIRXQGJXLOW\RIDQRIIHQVH mVHUYHV WKH IXQFWLRQ RI SUHYHQWLQJ ERWK VXFFHVVLYH EHGHWDLQHGSHQGLQJWKHH[HFXWLRQRULPSRVLWLRQRIVHQWHQFH SXQLVKPHQW DQG VXFFHVVLYH SURVHFXWLRQl DQG mSURKLELWV XQOHVVWKHFRXUWILQGVE\FOHDUDQGFRQYLQFLQJHYLGHQFHWKDW PHUHO\SXQLVKLQJWZLFHRUDWWHPSWLQJDVHFRQGWLPHWRSXQLVK WKHSHUVRQLVQRWOLNHO\WRIOHHRUWRSRVHDGDQJHUWRWKHVDIHW\ FULPLQDOO\IRUWKHVDPHRIIHQVHl,GDW TXRWDWLRQV RI WKH FRPPXQLW\  ,Q FKDUJLQJ 0DQH\ ZLWK YLRODWLQJ  RPLWWHG 7KH&RXUWWKHQGHWHUPLQHGWKDWWKHIDFWWKDWFHUWDLQ 86&† D WKH,QGLFWPHQWFRXOGKDYHXVHGWKHSUHFLVH FRQGXFWZDVFRQVLGHUHGLQFDOFXODWLQJDGHIHQGDQWjVVHQWHQFH ODQJXDJHRIWKHVWDWXWHE\VWDWLQJWKDW0DQH\ZDVGHWDLQHGLQ GRHVQRWQHFHVVDULO\FRQVWLWXWHSXQLVKPHQWIRUVXFKFRQGXFW IHGHUDOFXVWRG\E\YLUWXHRISURFHVVLVVXHGXQGHU86&  8QLWHG6WDWHVY0DQH\ 1R 1R 8QLWHG6WDWHVY0DQH\  RIDILUHDUP7KHGLVWULFWFRXUWILUVWGHWHUPLQHGWKDW0DQH\ †† E DQG D E\WKHGLVWULFWFRXUW+RZHYHUZH KDGQRWDOUHDG\EHHQSXQLVKHGIRUKLVFRQGXFWLQWKHLQVWDQW PXVW XVH D FRPPRQ VHQVH DSSURDFK WR UHYLHZLQJ WKH HVFDSHRIIHQVHLQKLVXQGLVFKDUJHGVHQWHQFH7KHFRXUWWKHQ VXIILFLHQF\RIWKH,QGLFWPHQW7KH,QGLFWPHQWWUDFNVFORVHO\ UHDVRQHGWKDW0DQH\jVHVFDSHRIIHQVHZDVVHULRXVLQYROYHG WKHODQJXDJHRI† D E\VWDWLQJWKDW0DQH\ZDVLQFXVWRG\ D GHDGO\ ZHDSRQ DQG UHVXOWHG LQ REYLRXV SK\VLFDO DQG SXUVXDQW WR WKH ODZV RI WKH 8QLWHG 6WDWHV ZKLOH DZDLWLQJ HPRWLRQDOLQMXULHVWRLQQRFHQWYLFWLP'HSXW\sDLOHU)ORUDZKR VHQWHQFLQJ RQ IHGHUDO IHORQ\ FKDUJHV  7KLV VWDWHPHQW ZDVVLPSO\GRLQJKHUMREDQGKDGWUHDWHG0DQH\ZHOOGXULQJ DGHTXDWHO\LQIRUPHG0DQH\WKDWWKHJRYHUQPHQWDOOHJHGKH KLVLQFDUFHUDWLRQ7KHFRXUWDOVRFRQVLGHUHG0DQH\jVRWKHU ZDV LQ IHGHUDO FXVWRG\ DW WKH WLPH RI KLV DWWHPSWHG HVFDSH HVFDSH DWWHPSWV WKH QHHG IRU GHWHUUHQFH DQG WKH QHHG WR EHFDXVHKHZDVRUGHUHGGHWDLQHGSHQGLQJVHQWHQFLQJRQKLV SURWHFW WKH SXEOLF LQ GHFLGLQJ WR UXQ 0DQH\jV VHQWHQFH IHGHUDO IHORQ\ FKDUJHV  0DQH\ WKXV KDG QRWLFH RI WKH FRQVHFXWLYHWRWKHXQGLVFKDUJHGWHUPIRUKLVFRQYLFWLRQVIRU JRYHUQPHQWjV EDVLV IRU HVWDEOLVKLQJ WKDW KH ZDV LQ IHGHUDO EDQNUREEHU\DQGEHLQJDIHORQLQSRVVHVVLRQRIDILUHDUP FXVWRG\XQGHU86&† D DQGKHFRXOGSUHSDUHKLV GHIHQVHDFFRUGLQJO\ 0DQH\KRZHYHUFODLPVWKDWWKHGLVWULFWFRXUWVKRXOGKDYH LPSRVHGKLVVHQWHQFHWRUXQSDUWLDOO\FRQFXUUHQWO\ZLWKKLV :HKROGWKDWWKH,QGLFWPHQWIXOO\DQGFOHDUO\VHWVIRUWKDOO XQGLVFKDUJHG VHQWHQFH EHFDXVH KLV FRQGXFW LQ WKH LQVWDQW RI WKH HOHPHQWV RI HVFDSH IURP IHGHUDO FXVWRG\ XQGHU RIIHQVH DWWHPSWHG HVFDSH DOUHDG\ ZDV FRQVLGHUHG LQ KLV †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† & DQG GHQLHG 0DQH\jV UHTXHVW IRU D WKUHHOHYHO FXVWRG\SXUVXDQWWRIHGHUDOODZZKLOHDZDLWLQJVHQWHQFLQJRQ UHGXFWLRQ IRU DFFHSWDQFH RI UHVSRQVLELOLW\ XQGHU 866* IHGHUDOIHORQ\FKDUJHVVRWKDW0DQH\ZDVLQIRUPHGRIWKH †(HYHQWKRXJKWKHJRYHUQPHQWGLGQRWRSSRVHLWEDVHG VSHFLILF HVFDSH FKDUJH EURXJKW DJDLQVW KLP DQG WKH RQ KLV WKUHH VHSDUDWH HVFDSH DWWHPSWV  7KLV UHVXOWHG LQ DQ JRYHUQPHQWjVEDVLVIRUEULQJLQJVXFKDFKDUJHDJDLQVWKLP RIIHQVH OHYHO RI  DQG D JXLGHOLQH UDQJH RI  WR  7KHVHDOOHJDWLRQVDUHVXIILFLHQWWRHVWDEOLVKLISURYHQWUXH PRQWKV7KHGLVWULFWFRXUWVHQWHQFHG0DQH\WRWKHVWDWXWRU\ WKDW0DQH\YLRODWHG†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† D  FRQGXFWLQWKHLQVWDQWRIIHQVH7RDYRLGGRXEOHSXQLVKPHQW RIWKLVFRQGXFW0DQH\DVVHUWVWKDWWKHGLVWULFWFRXUWLQWKLV % ,PSRVLWLRQ RI &RQVHFXWLYH 6HQWHQFH'RXEOH FDVH VKRXOG KDYH UXQ  PRQWKV RI KLV VHQWHQFH RI 3XQLVKPHQW LPSULVRQPHQW IRU WKH LQVWDQW RIIHQVH FRQFXUUHQWO\ ZLWK KLV XQGLVFKDUJHGVHQWHQFHIRUKLVFRQYLFWLRQVIRUEDQNUREEHU\ 0DQH\DOVRFKDOOHQJHVWKHGLVWULFWFRXUWjVGHFLVLRQWRUXQ DQGEHLQJDIHORQLQSRVVHVVLRQRIDILUHDUP KLV VHQWHQFH RI LPSULVRQPHQW FRQVHFXWLYH WR UDWKHU WKDQ  8QLWHG6WDWHVY0DQH\ 1R 1R 8QLWHG6WDWHVY0DQH\  FRQFXUUHQW ZLWK KLV VHQWHQFH RI LPSULVRQPHQW IRU KLV E ,IWKHXQGLVFKDUJHGWHUPRILPSULVRQPHQWUHVXOWHG FRQYLFWLRQVIRUEDQNUREEHU\DQGEHLQJDIHORQLQSRVVHVVLRQ IURPRIIHQVH V WKDWKDYHEHHQIXOO\WDNHQLQWRDFFRXQWLQ RI D ILUHDUP  $ GLVWULFW FRXUW KDV GLVFUHWLRQ WR LPSRVH D WKH GHWHUPLQDWLRQ RI WKH RIIHQVH OHYHO IRU WKH LQVWDQW FRQFXUUHQW RU FRQVHFXWLYH WHUP RI LPSULVRQPHQW RQ D RIIHQVH WKH VHQWHQFH IRU WKH LQVWDQW RIIHQVH VKDOO EH GHIHQGDQWZKRLVDOUHDG\VXEMHFWWRDQXQGLVFKDUJHGWHUPRI LPSRVHGWRUXQFRQFXUUHQWO\WRWKHXQGLVFKDUJHGWHUPRI LPSULVRQPHQW86&† D 8QLWHG6WDWHVY&RYHUW LPSULVRQPHQW  )G   WK &LU  FHUW GHQLHG  86   ,QPDNLQJWKLVGHWHUPLQDWLRQDGLVWULFWFRXUWPXVW F  3ROLF\6WDWHPHQW ,QDQ\RWKHUFDVHWKHVHQWHQFHIRU FRQVLGHUWKHIDFWRUVVHWIRUWKLQ86&† D DQGDQ\ WKHLQVWDQWRIIHQVHPD\EHLPSRVHGWRUXQFRQFXUUHQWO\ DSSOLFDEOH JXLGHOLQHV RU SROLF\ VWDWHPHQWV LVVXHG E\ WKH SDUWLDOO\ FRQFXUUHQWO\ RU FRQVHFXWLYHO\ WR WKH SULRU 6HQWHQFLQJ&RPPLVVLRQ6HH&RYHUW)GDW XQGLVFKDUJHG WHUP RI LPSULVRQPHQW WR DFKLHYH D 86& †  E  866* † * FRPPHQWDU\ UHDVRQDEOHSXQLVKPHQWIRUWKHLQVWDQWRIIHQVH EDFNJURXQG 866*†* 7KH6HQWHQFLQJ*XLGHOLQHVSURYLGHLQUHOHYDQWSDUWWKDW &RPPHQWDU\WRWKLVSURYLVLRQVWDWHVWKDWLQRUGHUWRDFKLHYH DmUHDVRQDEOHSXQLVKPHQWlDGLVWULFWFRXUWVKRXOGFRQVLGHUWKH IDFWRUVVHWIRUWKLQ86&† D DQGEHDZDUHRI  D WKHW\SH HJGHWHUPLQDWHLQGHWHUPLQDWHSDURODEOH  86& †  D LQFOXGHV WKH IROORZLQJ IDFWRUV  WKH QDWXUH DQG FLUFXPVWDQFHV RI WKH RIIHQVH DQG WKH KLVWRU\ DQGOHQJWKRIWKHSULRUXQGLVFKDUJHGVHQWHQFH DQG FKDUDFWHULVWLFV RI WKH GHIHQGDQW E WKHWLPHVHUYHGRQWKHXQGLVFKDUJHGVHQWHQFHDQGWKH  WKH QHHG IRU WKH VHQWHQFH LPSRVHG o $ WR UHIOHFW WKH VHULRXVQHVV RI WKH RIIHQVH WR SURPRWH UHVSHFW WLPHOLNHO\WREHVHUYHGEHIRUHUHOHDVH IRU WKH ODZ DQG WR SURYLGH MXVW SXQLVKPHQW IRU WKH RIIHQVH F WKHIDFWWKDWWKHSULRUXQGLVFKDUJHGVHQWHQFHPD\KDYH % WR DIIRUG DGHTXDWH GHWHUUHQFH WR FULPLQDO FRQGXFW EHHQLPSRVHGLQVWDWHFRXUWUDWKHUWKDQIHGHUDOFRXUWRU & WR SURWHFW WKH SXEOLF IURP IXUWKHU FULPHV RI WKH GHIHQGDQW DWDGLIIHUHQWWLPHEHIRUHWKHVDPHRUGLIIHUHQWIHGHUDO DQG FRXUWDQG ' WR SURYLGH WKH GHIHQGDQW ZLWK QHHGHG HGXFDWLRQDO RU G DQ\RWKHUFLUFXPVWDQFHUHOHYDQWWRWKHGHWHUPLQDWLRQ YRFDWLRQDO WUDLQLQJ PHGLFDO FDUH RU RWKHU FRUUHFWLRQDO WUHDWPHQW LQ WKH PRVW HIIHFWLYH PDQQHU RIDQDSSURSULDWHVHQWHQFHIRUWKHLQVWDQWRIIHQVH  WKH NLQGV RI VHQWHQFHV DYDLODEOH  WKH NLQGV RI VHQWHQFH DQG WKH VHQWHQFLQJ UDQJH HVWDEOLVKHG 866*†*FRPPHQWDU\DSSOLFQRWH IRU o $ WKH DSSOLFDEOH FDWHJRU\ RI RIIHQVH FRPPLWWHG E\ WKH :H UHYLHZ D GLVWULFW FRXUWjV GHFLVLRQ WR LPSRVH D DSSOLFDEOH FDWHJRU\ RI GHIHQGDQW DV VHW IRUWK LQ WKH JXLGHOLQHV LVVXHG E\ WKH 6HQWHQFLQJ &RPPLVVLRQ SXUVXDQW WR VHFWLRQ FRQFXUUHQWRUFRQVHFXWLYHVHQWHQFHIRUDEXVHRIGLVFUHWLRQ  D  RI WLWOH  8QLWHG 6WDWHV &RGH DQG WKDW DUH LQ HIIHFW 6HH&RYHUW)GDW RQ WKH GDWH WKH GHIHQGDQW LV VHQWHQFHG     DQ\ SHUWLQHQW SROLF\ VWDWHPHQW LVVXHG E\ WKH 6HQWHQFLQJ ,Q WKLV FDVH WKH GLVWULFW FRXUW SURSHUO\ FRQVLGHUHG WKH &RPPLVVLRQ SXUVXDQW WR  86& †  D  WKDW LV LQ HIIHFW IDFWRUV VHW IRUWK LQ  86& †  D  DQG LQ WKH RQ WKH GDWH WKH GHIHQGDQW LV VHQWHQFHG FRPPHQWDU\WR866*†*LQGHFLGLQJWRUXQ0DQH\jV  WKH QHHG WR DYRLG XQZDUUDQWHG VHQWHQFH GLVSDULWLHV DPRQJ GHIHQGDQWV ZLWK VLPLODU UHFRUGV ZKR KDYH EHHQ IRXQG JXLOW\ RI VHQWHQFH FRQVHFXWLYH WR KLV XQGLVFKDUJHG VHQWHQFH IRU KLV VLPLODU FRQGXFW FRQYLFWLRQVIRUEDQNUREEHU\DQGEHLQJDIHORQLQSRVVHVVLRQ