United States v. Degan

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 
!

&+$5/(6 52< '(*$1 
'HIHQGDQW$SSHOODQW 
1
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH:HVWHUQ'LVWULFWRI7HQQHVVHHDW0HPSKLV
1Rn%HUQLFH%'RQDOG'LVWULFWsXGJH
$UJXHG6HSWHPEHU
'HFLGHGDQG)LOHG2FWREHU
%HIRUH0(55,77.(11('<DQG*,/0$1&LUFXLW
sXGJHV
BBBBBBBBBBBBBBBBB
&2816(/
$5*8('5REHUW0)ULHGPDQ)5,('0$16,660$1
+($7210HPSKLV7HQQHVVHHIRU$SSHOODQW7LPRWK\
5'L6FHQ]D$66,67$1781,7('67$7(6$77251(<
0HPSKLV7HQQHVVHHIRU$SSHOOHH21%5,()5REHUW0
)ULHGPDQ:LOOLDP&+DUULVRQ)5,('0$16,660$1
+($7210HPSKLV7HQQHVVHHIRU$SSHOODQW7LPRWK\5


 8QLWHG6WDWHVY'HJDQ 1R

'L6FHQ]D $66,67$17 81,7(' 67$7(6 $77251(<
0HPSKLV7HQQHVVHHIRU$SSHOOHH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
521$/' /(( *,/0$1 &LUFXLW sXGJH  &KDUOHV 5R\
'HJDQ ZDV FRQYLFWHG XQGHU WKH IHGHUDO PXUGHUIRUKLUH
VWDWXWH86&†DIRUFDXVLQJDQRWKHULQGLYLGXDOWR
WUDYHO LQ LQWHUVWDWH FRPPHUFH ZLWK WKH LQWHQW WR PXUGHU
'HJDQjVH[ZLIHLQH[FKDQJHIRUPRQH\+HZDVVHQWHQFHG
WRVHYHQW\PRQWKVRILPSULVRQPHQW'HJDQDSSHDOVFODLPLQJ
WKDWWKHJRYHUQPHQWIDLOHGWRHVWDEOLVKWKHmMXULVGLFWLRQDOl
SURQJ RI WKH FKDUJH  WKH GLVWULFW FRXUW LPSURSHUO\
LQVWUXFWHGWKHMXU\DQGWKHJRYHUQPHQWIDLOHGWRSURYHWKDW
'HJDQ SURPLVHG WR SD\ DQ\WKLQJ WR KDYH WKH PXUGHU
FRPPLWWHG)RUWKHUHDVRQVVHWIRUWKEHORZZH$)),50
'HJDQjVFRQYLFWLRQ
,%$&.*5281'
$W WKH HQG RI  'HJDQ D UHVLGHQW RI 0HPSKLV
7HQQHVVHHPHWDQLQGLYLGXDOQDPHGsDPHV/HH1RHODOVRD
UHVLGHQWRI0HPSKLVWKURXJKDPXWXDOIULHQG$IWHUNQRZLQJ
1RHO IRU RQO\ WKUHH ZHHNV 'HJDQ DVNHG 1RHO WR FRQVLGHU
NLOOLQJ'HJDQjVH[ZLIHLQH[FKDQJHIRU,QUHVSRQVH
WR'HJDQjVUHTXHVW1RHOWHVWLILHGWKDWKHODXJKHGDQGGLGQRW
SD\DQ\DWWHQWLRQWRWKHSURSRVDO
7KHUHDIWHU1RHOHQFRXQWHUHGILQDQFLDOSUREOHPVZLWKWKH
EXVLQHVVKHZDVUXQQLQJLQ0HPSKLVDQGHYHQWXDOO\PRYHG
WR3LFD\XQH0LVVLVVLSSL2QsXQH1RHOWHOHSKRQHG
'HJDQ LQ DQ DWWHPSW WR ORFDWH WKH PXWXDO IULHQG ZKR KDG
LQWURGXFHGWKHP'XULQJWKHFRQYHUVDWLRQ'HJDQDVNHG1RHO
ZKHWKHUKHZRXOGFRPHWR0HPSKLVWRGLVFXVVWKHSRVVLELOLW\
RINLOOLQJ'HJDQjVH[ZLIHLQH[FKDQJHIRU'HJDQ
DOVRRIIHUHGWRVHQG1RHOWRDVVLVWKLPZLWKKLVWUDYHO
H[SHQVHV  $IWHU UHFHLYLQJ WKH  1RHO WHVWLILHG WKDW KH
FDPHWR0HPSKLVRQsXQHERWKEHFDXVHRI'HJDQjV
1R 8QLWHG6WDWHVY'HJDQ 

UHTXHVWDQGEHFDXVH1RHOKDGDVFKHGXOHGFRXUWSURFHHGLQJ
UHODWLQJWRKLVRZQGLYRUFH
$IWHU DUULYLQJ LQ 0HPSKLV 1RHO FRQWDFWHG WKH )HGHUDO
%XUHDXRI,QYHVWLJDWLRQEHFDXVHRIKLVEHOLHIWKDW'HJDQZDV
VHULRXVDERXWKDYLQJKLPFRPPLWDPXUGHU7KH)%,ILWWHG
1RHO ZLWK D UHFRUGLQJ GHYLFH  :KLOH ZHDULQJ WKH GHYLFH
1RHOPHWZLWK'HJDQ,QGLVFXVVLQJWKHSURSRVHGPXUGHU
'HJDQFRQILUPHGWKDWKHLQWHQGHGWRSD\1RHOIRUKLV
VHUYLFHV'HJDQJDYH1RHOGLUHFWLRQVWRKLVH[ZLIHjVKRXVH
LQ )ORULGD DQG GHVFULEHG WKH UHVLGHQFH DQG FDU WR KLP  ,Q
DGGLWLRQ'HJDQLQVWUXFWHG1RHOKRZWRXVHDVKRWJXQLQVXFK
D ZD\ WKDW WKH EDOOLVWLFV DQG SRZGHU EXUQV ZRXOG EH
XQWUDFHDEOHDQGGLUHFWHG1RHOWRWDNHDVSDUHOLFHQVHSODWHIRU
FRQFHDOPHQWSXUSRVHV7KH\DJUHHGWRPHHWDJDLQRQsXQH
WKHGDWH1RHOKDGSUHVHOHFWHGIRUKLVSXUSRUWHGWULS
WRWKHKRXVHRI'HJDQjVH[ZLIHWRDFFRPSOLVKWKHPXUGHU
2Q sXQH  LQ FRQIRUPLW\ ZLWK WKHLU DJUHHPHQW 1RHO
DUULYHGLQ0HPSKLVWRPHHWZLWK'HJDQ$WWKLVWLPH1RHO
WROG 'HJDQ WKDW KH KDG SXUFKDVHG D JXQ  'HJDQ DJDLQ
GHVFULEHGWR1RHOWKHURXWHWRWKHKRXVHRI'HJDQjVH[ZLIH
LQ)ORULGDGLUHFWHG1RHOQRWWRVSHHGJDYHKLPWRIXUWKHU
DVVLVWZLWKKLVWUDYHOH[SHQVHVDQGWROG1RHOWRPDNHVXUH
WKDWWKHNLOOLQJGLGQRWRFFXUDURXQGWKHFKLOGUHQ  6KRUWO\
DIWHUWKLVVHFRQGPHHWLQJ'HJDQZDVDUUHVWHGE\WKH)%,+H
ZDV VXEVHTXHQWO\ LQGLFWHG DQG FRQYLFWHG RI YLRODWLQJ 
86&†D
,,$1$/<6,6
$ 7KH HYLGHQFH ZDV VXIILFLHQW WR HVWDEOLVKWKDW
'HJDQ FDXVHG 1RHO WR WUDYHO LQ LQWHUVWDWH
FRPPHUFHIRUWKHSXUSRVHRINLOOLQJ'HJDQjVH[
ZLIH
'HJDQ ILUVW DUJXHV WKDW WKH GLVWULFW FRXUW ODFNHG VXEMHFW
PDWWHU MXULVGLFWLRQ RYHU WKH FDVH EHFDXVH WKH JRYHUQPHQW
IDLOHGWRVKRZDQH[XVEHWZHHQLQWHUVWDWHFRPPHUFHDQGWKH
FULPHFKDUJHG7KLVDUJXPHQWODFNVPHULW:KHWKHURUQRW
WKHJRYHUQPHQWPDNHVRXWWKHLQWHUVWDWHFRPPHUFHHOHPHQWRI
 8QLWHG6WDWHVY'HJDQ 1R 1R 8QLWHG6WDWHVY'HJDQ 

DQRIIHQVHKDVQRHIIHFWRQWKHGLVWULFWFRXUWjVVXEMHFWPDWWHU SOD\HG EHIRUH WKH MXU\  &RQVHTXHQWO\ 'HJDQjV DUJXPHQW
MXULVGLFWLRQ6HH:LOOLDPVRQY8QLWHG6WDWHV1R ODFNVPHULW
:/DW
WK&LU)HEXQSXEOLVKHG
WDEOHGHFLVLRQm>7@KHGHIHQGDQWLVQRWUHDOO\FKDOOHQJLQJWKH ,,,&21&/86,21
FRXUWjVVXEMHFWPDWWHUMXULVGLFWLRQ,QVWHDGKHLVFKDOOHQJLQJ
WKHVXIILFLHQF\RIWKHHYLGHQFHDVWRWKHµMXULVGLFWLRQDOjSURQJ )RU DOO RI WKH UHDVRQV VHW IRUWK DERYH ZH $)),50
RI WKH FDUMDFNLQJ VWDWXWHl  &RQVHTXHQWO\ 'HJDQjV UHDO 'HJDQjVFRQYLFWLRQ
DUJXPHQW LV WKDW WKH HYLGHQFH SUHVHQWHG DW WULDO ZDV
LQVXIILFLHQWIRUDUDWLRQDOWULHURIIDFWWRFRQFOXGHEH\RQGD
UHDVRQDEOH GRXEW WKDW 'HJDQ FDXVHG 1RHO WR WUDYHO LQ
LQWHUVWDWHFRPPHUFHIRUWKHSXUSRVHRINLOOLQJ'HJDQjVH[
ZLIH
7KH VWDQGDUG RI UHYLHZ IRU D FODLP EDVHG RQ WKH
LQVXIILFLHQF\RIWKHHYLGHQFHLVZKHWKHUDIWHUUHYLHZLQJWKH
HYLGHQFHLQWKHOLJKWPRVWIDYRUDEOHWRWKHJRYHUQPHQWDQ\
UDWLRQDOWULHURIIDFWFRXOGKDYHIRXQGWKHHVVHQWLDOHOHPHQWV
RIWKHFULPHFKDUJHGEH\RQGDUHDVRQDEOHGRXEW6HHsDFNVRQ
Y9LUJLQLD86,QFRQVLGHULQJWKH
LQIHUHQFHVWKDWDMXU\PD\GUDZIURPWKHHYLGHQFHZHQHHG
QRW H[FOXGH HYHU\ ORJLFDO K\SRWKHVLV RWKHU WKDQ JXLOW  6HH
8QLWHG6WDWHVYsRKQVRQ)GWK&LU
'HJDQ ZDV FRQYLFWHG RI YLRODWLQJ  86& † D
ZKLFKSURYLGHVDVIROORZV
:KRHYHU WUDYHOV LQ RU FDXVHV DQRWKHU LQFOXGLQJ WKH
LQWHQGHG YLFWLP WR WUDYHO LQ LQWHUVWDWH RU IRUHLJQ
FRPPHUFH RU XVHV RU FDXVHV DQRWKHU LQFOXGLQJ WKH
LQWHQGHG YLFWLP WR XVH WKH PDLO RU DQ\ IDFLOLW\ LQ
LQWHUVWDWHRUIRUHLJQFRPPHUFHZLWKLQWHQWWKDWDPXUGHU
EHFRPPLWWHGLQYLRODWLRQRIWKHODZVRIDQ\6WDWHRUWKH
8QLWHG6WDWHVDVFRQVLGHUDWLRQIRUWKHUHFHLSWRIRUDV
FRQVLGHUDWLRQ IRU D SURPLVH RU DJUHHPHQW WR SD\
DQ\WKLQJRISHFXQLDU\YDOXHVKDOOEHILQHGXQGHUWKLV
WLWOHRULPSULVRQHGIRUQRWPRUHWKDQWHQ\HDUVRUERWK
DQGLISHUVRQDOLQMXU\UHVXOWVVKDOOEHILQHGXQGHUWKLV
WLWOH RU LPSULVRQHG IRU QRW PRUH WKDQ WZHQW\ \HDUV RU
ERWKDQGLIGHDWKUHVXOWVVKDOOEHSXQLVKHGE\GHDWKRU
 8QLWHG6WDWHVY'HJDQ 1R 1R 8QLWHG6WDWHVY'HJDQ 

GLUHFWO\DQVZHUWKHMXU\jVTXHVWLRQEXWLQVWHDGWROGWKHMXU\ OLIH LPSULVRQPHQW RU VKDOO EH ILQHG QRW PRUH WKDQ
WKDW LW PXVW ILQG WKDW 'HJDQ FDXVHG 1RHO WR WUDYHO IURP RUERWK
0LVVLVVLSSLWR7HQQHVVHHZLWKWKHLQWHQWWRKDYH1RHONLOOKLV
H[ZLIH  'HJDQ GLG QRW REMHFW WR WKLV FKDUJH DW WULDO  2Q ,QOLJKWRIWKHVWDWXWHWKHGLVWULFWFRXUWFKDUJHGWKHMXU\WKDW
DSSHDO 'HJDQ FODLPV WKDW EDVHG RQ WKH GLVWULFW FRXUWjV WKHJRYHUQPHQWPXVWSURYHEH\RQGDUHDVRQDEOHGRXEWWKDW
FKDUJHWKHMXU\PLJKWKDYHHUURQHRXVO\IRXQGWKHLQWHUVWDWH
HOHPHQWEDVHGRQ1RHOjVsXQHWULS%\WKDWWLPH'HJDQ $ 'HJDQFDXVHGsLPP\1RHOWRWUDYHOLQLQWHUVWDWH
FRQWHQGV1RHOZDVDJRYHUQPHQWDJHQWDOOHJHGO\LQFDSDEOH FRPPHUFHIURP0LVVLVVLSSLWR7HQQHVVHH
RIHVWDEOLVKLQJWKHMXULVGLFWLRQDOHOHPHQW
% 'HJDQFDXVHGVXFKWUDYHOZLWKWKHLQWHQWLRQWKDW
:KHQ D GHIHQGDQW IDLOV WR REMHFW WR D MXU\ LQVWUXFWLRQ DW DPXUGHUEHFRPPLWWHGLQYLRODWLRQRIWKHODZV
WULDOWKHLQVWUXFWLRQLVUHYLHZHGIRUSODLQHUURU6HH8QLWHG RIDQ\VWDWHRURIWKH8QLWHG6WDWHVDQG
6WDWHV Y 6DQGHUVRQ  )G   WK &LU 
m5HYHUVDORIDFULPLQDOFRQYLFWLRQRQWKHEDVLVRISODLQHUURU & $VFRQVLGHUDWLRQIRUWKLVPXUGHUWKHUHZRXOGEH
LV DQ H[FHSWLRQDO UHPHG\ ZKLFK ZH LQYRNH RQO\ ZKHQ LW WKHUHFHLSWRIRUDSURPLVHWRSD\DQ\WKLQJRI
DSSHDUV QHFHVVDU\ WR SUHYHQW D PLVFDUULDJH RI MXVWLFH RU WR SHFXQLDU\YDOXH
SUHVHUYHWKHLQWHJULW\DQGUHSXWDWLRQRIWKHMXGLFLDOSURFHVVl
8QLWHG 6WDWHV Y %XVWLOOR  )G   WK &LU 7KHHVVHQFHRI'HJDQjVDUJXPHQWLVWKDW1RHOWUDYHOHGIURP
 3LFD\XQH 0LVVLVVLSSL WR 0HPSKLV 7HQQHVVHH RQ sXQH 
WRDWWHQGDFRXUWSURFHHGLQJQRWWRPHHWZLWK'HJDQ
,QWKLVFDVHWKHGLVWULFWFRXUWGLGQRWKLQJPRUHWKDQUHVWDWH DERXWNLOOLQJKLVH[ZLIH,QVXSSRUWRIWKLVSURSRVLWLRQKH
WKDWWKHJRYHUQPHQWPXVWSURYHHYHU\HOHPHQWRIWKHRIIHQVH FLWHV8QLWHG6WDWHVY0\HUVRQ)GG&LU
FKDUJHG LQFOXGLQJ WKH HOHPHQW WKDW 'HJDQ FDXVHG 1RHO WR ZKHUH WKH 6HFRQG &LUFXLW DIILUPHG WKH GLVWULFW FRXUWjV
WUDYHO IURP 0LVVLVVLSSL WR 7HQQHVVHH ZLWK WKH LQWHQW WR GLVPLVVDO RI WZR WUDYHO IUDXG FRXQWV DJDLQVW WKH GHIHQGDQW
FRPPLWDPXUGHU$VGLVFXVVHGDERYHWKHMXU\ZDVSURSHUO\ EHFDXVHWKHYLFWLPjVLQWHUVWDWHWUDYHOKDGmQRWKLQJGLUHFWO\RU
DOORZHG WR FRQVLGHU 1RHOjV sXQH  WULS LQ GHWHUPLQLQJ UHPRWHO\WRGRZLWKWKHIXUWKHUDQFHRIWKHIUDXGl,GDW
ZKHWKHUWKHJRYHUQPHQWKDGPHWLWVEXUGHQZLWKUHVSHFWWR LQWHUQDOTXRWDWLRQPDUNVRPLWWHG
WKHLQWHUVWDWHHOHPHQW,QDQ\HYHQW'HJDQKDVIDLOHGWRVKRZ
DIXQGDPHQWDOPLVFDUULDJHRIMXVWLFHDVDUHVXOWRIWKHGLVWULFW 'HJDQjVDUJXPHQWLVXQDYDLOLQJKRZHYHUEHFDXVHm>W@KH
FRXUWjVFKDUJHWRWKHMXU\ IDFWWKDWWUDYHOLVPRWLYDWHGE\WZRRUPRUHSXUSRVHVVRPHRI
ZKLFK OLH RXWVLGH WKH DPELW RI WKH 7UDYHO $FW ZLOO QRW
& 7KHUHLVVXIILFLHQWHYLGHQFHLQWKHUHFRUGWKDW'HJDQ SUHFOXGHFRQYLFWLRQXQGHUWKH$FWLIWKHUHTXLVLWHLQWHQWLV
SURPLVHGWRSD\1RHOWRPXUGHUKLVH[ZLIH DOVRSUHVHQWl8QLWHG6WDWHVY*RRGLQJ)G
WK&LU,QFRQWUDVWWR0\HUVRQWKHUHLVVXIILFLHQW
)LQDOO\'HJDQDUJXHVWKDWWKHJRYHUQPHQWGLGQRWSUHVHQW HYLGHQFH LQ WKH UHFRUG WR HVWDEOLVK WKDW DW OHDVW RQH RI WKH
DQ\HYLGHQFHWKDWKHSURPLVHGWRSD\DQ\WKLQJRIYDOXHWR UHDVRQVWKDW1RHOFDPHWR0HPSKLVRQsXQHZDVWR
1RHOIRUDJUHHLQJWRPXUGHUKLVH[ZLIH  7R WKH FRQWUDU\ PHHWZLWK'HJDQ1RHOWHVWLILHGWKDWRQsXQH'HJDQ
1RHOWHVWLILHGWKDW'HJDQKDGSURPLVHGWRSD\1RHOLI DVNHGKLPWRWUDYHOWR0HPSKLVWRGLVFXVVPXUGHULQJ'HJDQjV
KH ZRXOG FRPPLW WKH PXUGHU  1RHOjV WHVWLPRQ\ ZDV H[ZLIHDQGWKDWKHFDPHWR0HPSKLVILYHGD\VODWHUIRUWKDW
FRQILUPHG E\ 'HJDQ LQ WKH WDSHG FRQYHUVDWLRQV WKDW ZHUH SXUSRVH$WWKHWLPHRIWKDWFRQYHUVDWLRQ'HJDQNQHZWKDW
1RHO ZDV OLYLQJ LQ 0LVVLVVLSSL  ,Q IDFW  'HJDQ VHQW 1RHO
 8QLWHG6WDWHVY'HJDQ 1R 1R 8QLWHG6WDWHVY'HJDQ 

VRWKDW1RHOZRXOGEHDEOHWRPDNHWKHWULSRQsXQH % 7KH GLVWULFW FRXUW GLG QRW HUU UHJDUGLQJ LWV
&RQVHTXHQWO\ D UDWLRQDO MXU\ FRXOG KDYH FRQFOXGHG WKDW LQVWUXFWLRQVWRWKHMXU\
'HJDQFDXVHG1RHOWRFRPHWR0HPSKLVRQsXQHIRU
WKHSXUSRVHRISODQQLQJDPXUGHUIRUKLUH7KHIDFWWKDWWKH ,QDUHODWHGDUJXPHQW'HJDQFODLPVWKDWWKHGLVWULFWFRXUW
WLPLQJRIWKHWULSZDVPRWLYDWHGE\WZRSXUSRVHVGRHVQRW FRPPLWWHG UHYHUVLEOH HUURU ZKHQ LW UHIXVHG WR LVVXH WKH
DOWHUWKLVDQDO\VLV6HH*RRGLQJ)GDW IROORZLQJSURSRVHGMXU\LQVWUXFWLRQ
'HJDQDOVRFODLPVWKDW1RHOEHFDPHDSDLGIHGHUDODJHQW 7KH FRXUW LQVWUXFWV WKH MXU\ WKDW RQH FDQQRW mFDXVHl D
DIWHU1RHOPHWZLWKWKH)%,+HWKXVDUJXHVWKDWKHFRXOGQRW JRYHUQPHQWDJHQWWRFRPPLWDQLOOHJDODFW6LQFH0U
KDYHFDXVHG1RHOWRWUDYHOIURP0LVVLVVLSSLWR7HQQHVVHHRQ 1RHO ZDV DFWLQJ DV D JRYHUQPHQW DJHQW KH FRXOG QRW
sXQHIRUDQLOOHJDOSXUSRVHEHFDXVHWKLVZRXOGEH KDYH ODZIXOO\ EHHQ mFDXVHGl WR FRPPLW DQ LOOHJDO DFW
WDQWDPRXQW WR DOORZLQJ WKH JRYHUQPHQW WR FUHDWH IHGHUDO 7KHUHIRUH\RXDUHWRUHWXUQDYHUGLFWRImQRWJXLOW\l
MXULVGLFWLRQ'HJDQFLWHV8QLWHG6WDWHVY$UFKHU)G
 G &LU  IRU WKH SURSRVLWLRQ WKDW IHGHUDO $ GLVWULFW FRXUWjV GHQLDO RI D SURSRVHG MXU\ LQVWUXFWLRQ mLV
MXULVGLFWLRQFDQQRWEHPDQXIDFWXUHGE\WKHJRYHUQPHQW+H UHYHUVLEOHRQO\LIWKDWLQVWUXFWLRQLVDFRUUHFWVWDWHPHQWRI
WKHQFLWHVVHYHUDOFDVHVWKDWVWDQGIRUWKHSURSRVLWLRQWKDWRQH WKHODZQRWVXEVWDQWLDOO\FRYHUHGE\WKHFKDUJHDFWXDOO\
FDQQRW FRQVSLUH LQ YLRODWLRQ RI IHGHUDO ODZ LI WKH RQO\ GHOLYHUHGWRWKHMXU\DQGFRQFHUQVDSRLQWVRLPSRUWDQWLQ
FRFRQVSLUDWRULVWKHJRYHUQPHQWRULWVDJHQW WKH WULDO WKDW WKH IDLOXUH WR JLYH LW VXEVWDQWLDOO\ LPSDLUV WKH
GHIHQGDQWjVGHIHQVHl8QLWHG6WDWHVY)URVW)G
,QDGGUHVVLQJ'HJDQjVDUJXPHQWLWVKRXOGILUVWEHSRLQWHG WK&LUTXRWLQJ8QLWHG6WDWHVY:LOOLDPV
RXWWKDWKHZDVQRWFKDUJHGZLWKFRQVSLUDF\EXWUDWKHUZLWK )GWK&LU
DVXEVWDQWLYHFKDUJHXQGHU86&†0RUHRYHU1RHO
WHVWLILHGWKDWSULRUWRKLVDUULYDOLQ0HPSKLVRQsXQH 'HJDQjVDUJXPHQWODFNVPHULWEHFDXVHKLVSURSRVHGMXU\
'HJDQKDGDVNHGKLPWRFRPPLWWKHPXUGHU%HFDXVH'HJDQ LQVWUXFWLRQ GLG QRW DFFXUDWHO\ VWDWH WKH ODZ  7KH IHGHUDO
ZDVWKHRQHZKRLQLWLDWHGWKHFRQYHUVDWLRQDERXWPXUGHULQJ PXUGHUIRUKLUHVWDWXWHFULPLQDOL]HVWKRVHZKRLQGXFHRWKHUV
KLV H[ZLIH DQG DVNHG 1RHO WR GR WKH NLOOLQJ ZLWK WKH WRWUDYHOLQLQWHUVWDWHFRPPHUFHWRFRPPLWPXUGHUUDWKHUWKDQ
NQRZOHGJHWKDW1RHOOLYHGLQ0LVVLVVLSSLLWLVLUUHOHYDQWWKDW DFWXDOO\mFDXVHlRWKHUVWRFRPPLWDQLOOHJDODFWDV'HJDQjV
1RHOZDVDJRYHUQPHQWDJHQWDWWKHWLPHRIWKHsXQHWULS LQVWUXFWLRQ VWDWHV  ,Q DGGLWLRQ WKH LQVWUXFWLRQ SUHVXPHV
6HH8QLWHG6WDWHVY6PLWK)GWK&LU ZLWKRXW TXDOLILFDWLRQ WKDW 1RHO ZDV D JRYHUQPHQW DJHQW
KROGLQJWKDWEHFDXVHWKHJRYHUQPHQWDJHQWWUDYHOHGLQ ZKHUHDVKHZDVFOHDUO\QRWDJRYHUQPHQWDJHQWZKHQKHILUVW
LQWHUVWDWHFRPPHUFHDWWKHGHIHQGDQWjVEHKHVWWKHJRYHUQPHQW FURVVHG WKH VWDWH OLQH RQ sXQH    )LQDOO\ WKH
GLGQRWLPSURSHUO\PDQXIDFWXUHIHGHUDOMXULVGLFWLRQ)LQDOO\ LQVWUXFWLRQjV FRQFOXVLRQ PDQGDWLQJ WKDW WKH MXU\ UHWXUQ D
LWLVXQGLVSXWHGWKDWZKHQ1RHOOHIW'HJDQjVSUHVHQFHRQsXQH YHUGLFW RI mQRW JXLOW\l ZDV REYLRXVO\ SUHMXGLFLDO WR WKH
'HJDQWKRXJKWWKDW1RHOKDGOHIWWRJRNLOOKLVH[ZLIH JRYHUQPHQW  %HFDXVH RI WKHVH HUURUV WKH GLVWULFW FRXUW
%DVHGRQWKLVHYLGHQFHDUDWLRQDOMXU\FRXOGFRQFOXGHWKDW SURSHUO\UHMHFWHG'HJDQjVSURSRVHGMXU\LQVWUXFWLRQ
'HJDQ KDG FDXVHG 1RHO WR WUDYHO IURP 0LVVLVVLSSL WR
7HQQHVVHHRQsXQHLQRUGHUWRFRPPLWDPXUGHU &RQWLQXLQJKLVmMXULVGLFWLRQDOlDWWDFN'HJDQDUJXHVWKDW
WKHGLVWULFWFRXUWJDYHWKHMXU\DQLPSURSHUFKDUJHLQUHVSRQVH
WRWKHMXU\jVTXHVWLRQUHJDUGLQJZKHWKHUWKHJRYHUQPHQWPXVW
SURYHWKDW'HJDQFDXVHGERWKWULSVsXQHDQGsXQHWREH
PDGHE\1RHORURQO\RQHRIWKHP7KHGLVWULFWFRXUWGLGQRW