United States v. Murphy

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 
!

9(5121 / 0853+< 
'HIHQGDQW$SSHOODQW 
1
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH(DVWHUQ'LVWULFWRI7HQQHVVHHDW*UHHQHYLOOH
1Rn7KRPDV*+XOO'LVWULFWsXGJH
$UJXHG6HSWHPEHU
'HFLGHGDQG)LOHGsDQXDU\
%HIRUHs21(66,/(5DQG&/$<&LUFXLWsXGJHV
BBBBBBBBBBBBBBBBB
&2816(/
$5*8('  7LP 6 0RRUH 1HZSRUW 7HQQHVVHH IRU
$SSHOODQW'DQ56PLWK$66,67$1781,7('67$7(6
$77251(< sRKQVRQ &LW\ 7HQQHVVHH IRU $SSHOOHH
21 %5,()  7LP 6 0RRUH 1HZSRUW 7HQQHVVHH IRU
$SSHOODQW'DQ56PLWK$66,67$1781,7('67$7(6
$77251(<sRKQVRQ&LW\7HQQHVVHHIRU$SSHOOHH


 8QLWHG6WDWHVY0XUSK\ 1R 1R 8QLWHG6WDWHVY0XUSK\ 

BBBBBBBBBBBBBBBBB ZKHWKHU'HIHQGDQWVHUYHGDSRUWLRQRIWKHIRXUPRQWKWHUP
IRU HLWKHU RI KLV PLVGHPHDQRU FRQYLFWLRQV RU ZKHWKHU
23,1,21 'HIHQGDQW VHUYHG QR WLPH DW DOO IRU WKH WHUPV VHQWHQFHG
BBBBBBBBBBBBBBBBB 7KHUHIRUHZHUHPDQGWKLVFDVHVRWKDWWKHGLVWULFWFRXUWFDQ
FOHDUO\GHWHUPLQHZKHWKHU'HIHQGDQWVHUYHGDQ\WLPHRUQR
&/$< &LUFXLW sXGJH  'HIHQGDQW 9HUQRQ /HH 0XUSK\ WLPHIRUWKHPLVGHPHDQRUFRQYLFWLRQV,I'HIHQGDQWGLGQRW
DSSHDOVIURPKLVFRQYLFWLRQDQGVHQWHQFHIRUGLVWULEXWLRQRI VHUYHDVLQJOHGD\IRUKLVPLVGHPHDQRUFRQYLFWLRQVWKHQWKH
FRFDLQHEDVHFUDFNDQGSRVVHVVLRQRIFRFDLQHEDVHFUDFNZLWK GLVWULFWFRXUWFOHDUO\HUUHGE\DVVHVVLQJWZRSRLQWVIRUHDFK
LQWHQW WR GLVWULEXWH LQ YLRODWLRQ RI  86& † D FRQYLFWLRQDVPDQGDWHGE\VHFWLRQ$DQG'HIHQGDQWjV
'HIHQGDQW DOOHJHV WKDW WKH GLVWULFW FRXUW HUURQHRXVO\ FULPLQDO KLVWRU\ FDWHJRU\ ZRXOG EH UHGXFHG WR ,,,  ,I
 DGPLWWHG HYLGHQFH LQ YLRODWLRQ RI )HGHUDO 5XOH RI KRZHYHU'HIHQGDQWVHUYHGDWOHDVWRQHGD\RIWKHIRXUPRQWK
(YLGHQFHEGHQLHG'HIHQGDQWjVPRWLRQWRGLVPLVV LPSULVRQPHQWWHUPWKHQWKHGLVWULFWFRXUWGLGQRWHUU6HH
WKHLQGLFWPHQWSXUVXDQWWRWKH6SHHG\7ULDO$FW86& 8QLWHG6WDWHVY*OLGGHQ)GG&LUKROGLQJ
††   GHQLHG 'HIHQGDQWjV PRWLRQ WR VXSSUHVV WKDWWZRSRLQWDVVHVVPHQWZDVSURSHUZKHUHGHIHQGDQWZDV
HYLGHQFH DQG  FDOFXODWHG 'HIHQGDQWjV FULPLQDO KLVWRU\ JLYHQ VXVSHQGHG VHQWHQFH RI LPSULVRQPHQW DQG SODFHG RQ
FDWHJRU\SXUVXDQWWR866*†$)RUWKHUHDVRQVVWDWHG SUREDWLRQ EXW VXEVHTXHQWO\ KDG SUREDWLRQ UHYRNHG DQG
EHORZ WKLV &RXUW $)),506 'HIHQGDQWjV FRQYLFWLRQ EXW RUGHUHGWRVHUYHGD\VLQMDLO8QLWHG6WDWHVY/HZLV
5(9(56(6DQG5(0$1'6ZLWKUHVSHFWWR'HIHQGDQWjV )G   VW &LU  KROGLQJ WKDW WZR SRLQW
VHQWHQFLQJVRWKDWWKHGLVWULFWFRXUWPD\GHWHUPLQHZKHWKHU DVVHVVPHQWZDVSURSHUZKHUHGHIHQGDQWZDVVHQWHQFHGWRILYH
'HIHQGDQW VHUYHG DQ\ SRUWLRQ RI KLV VHQWHQFH IRU KLV SULRU PRQWKV LPSULVRQPHQW EXW RQO\ VHUYHG WKLUW\QLQH GD\V
PLVGHPHDQRUFRQYLFWLRQVDVUHTXLUHGE\866*†$ 8QLWHG6WDWHVY'H3ULHVW)GWK&LU
KROGLQJ WKDW WZR SRLQW DVVHVVPHQW ZDV SURSHU ZKHUH
%$&.*5281' GHIHQGDQWZDVRUGHUHGWRVHUYHVL[W\GD\VEXWRQO\VHUYHG
2Q 6HSWHPEHU   DJHQWV IURP WKH )LUVW sXGLFLDO &21&/86,21
'LVWULFW 'UXJ 7DVN )RUFH mWDVN IRUFH DJHQWVl SODFHG DQ
HOHFWURQLFWUDQVPLWWLQJGHYLFHRQDFRQILGHQWLDOLQIRUPDQWWR :HFRQFOXGHWKDWWKHGLVWULFWFRXUWGLGQRWHUULQDGPLWWLQJ
UHFRUGDGUXJWUDQVDFWLRQZLWK'HIHQGDQW7KHLQIRUPDQWZDV mRWKHUDFWVlHYLGHQFHXQGHU5XOHEGHQ\LQJ'HIHQGDQWjV
SURYLGHG ZLWK  LQ PDUNHG ELOOV DQG SODFHG XQGHU PRWLRQ WR VXSSUHVV DQG GHQ\LQJ 'HIHQGDQWjV PRWLRQ WR
VXUYHLOODQFH  2Q WKH VDPH GD\ WKH FRQILGHQWLDO LQIRUPDQW GLVPLVV KLV LQGLFWPHQW XQGHU WKH 6SHHG\ 7ULDO $FW
SDJHG'HIHQGDQWDQGLQTXLUHGDERXWSXUFKDVLQJZRUWK $FFRUGLQJO\ ZH $)),50 'HIHQGDQWjV FRQYLFWLRQ
RIFUDFNFRFDLQH$WWKHWLPH'HIHQGDQWZDVUHVLGLQJDWWKH +RZHYHUZH5(9(56(DQG5(0$1'IRUUHVHQWHQFLQJVR
6XSHU0RWHOLQsRKQVRQ&LW\7HQQHVVHH'HIHQGDQWWROG WKDW WKH GLVWULFW FRXUW PD\ SURSHUO\ FRQVLGHU ZKHWKHU
WKHLQIRUPDQWWRZDLWWKLUW\PLQXWHVDQGWKHQPHHWKLPDWWKH 'HIHQGDQWVKRXOGEHDVVHVVHGWZRFULPLQDOKLVWRU\SRLQWVIRU
SDUNLQJORWRIWKH+DUERU+RXVH5HVWDXUDQWORFDWHGQH[WWR HDFKRIKLVSULRUPLVGHPHDQRUFRQYLFWLRQV
WKH6XSHU0RWHO
7DVN IRUFH DJHQWV FRQGXFWLQJ VXUYHLOODQFH REVHUYHG
'HIHQGDQWOHDYHWKH6XSHU0RWHOVWRSEULHIO\DWKLVYHKLFOH
'HIHQGDQW 0XUSK\ 1R 6LU
ZKLFKZDVSDUNHGLQWKHPRWHOORWDQGSURFHHGWRZDONWRWKH 7KH &RXUW %XW \RX ZHUH VHQWHQFHG ZLWK WKHP   
SDUNLQJORWEHWZHHQWKH6XSHU0RWHODQGWKH+DUERU+RXVH s$ DW 
 8QLWHG6WDWHVY0XUSK\ 1R 1R 8QLWHG6WDWHVY0XUSK\ 

FDWHJRU\'HIHQGDQWFRQWHQGVWKDWEHFDXVHWKHGLVWULFWFRXUW 5HVWDXUDQW  $W DSSUR[LPDWHO\  SP WKH LQIRUPDQW
FRQFOXGHGWKDWKHGLGQRWVHUYHDQ\WHUPRILPSULVRQPHQWIRU ZDONHGWRWKH+DUERU+RXVH5HVWDXUDQWDQGPHW'HIHQGDQWLQ
HLWKHU FRQYLFWLRQ  KH VKRXOG QRW KDYH EHHQ DVVHVVHG WZR WKHUHVWDXUDQWSDUNLQJORW:KHQWKHLQIRUPDQWDQG'HIHQGDQW
SRLQWV IRU HDFK SULRU PLVGHPHDQRU FRQYLFWLRQ  7KH PHWWKHWDVNIRUFHDJHQWVKHDUGmKHUHjVILYHlE\ZD\RIWKH
JRYHUQPHQWFRQWHQGVWKDWWKHDVVHVVPHQWRIWZRDGGLWLRQDO WUDQVPLWWLQJ GHYLFH  7KH LQIRUPDQW EHJDQ WR FRXQW WKH
SRLQWV XQGHU † $ LV SURSHU HYHQ LI 'HIHQGDQW GLG QRW PRQH\  'HIHQGDQW DGYLVHG WKH LQIRUPDQW WKDW LW ZDV QRW
DFWXDOO\ VHUYH WKH WHUP RI LPSULVRQPHQW LQGLFDWHG RQ WKH QHFHVVDU\IRUWKHLQIRUPDQWWRFRXQWWKHPRQH\EHFDXVHKH
MXGJPHQWVRIFRQYLFWLRQ7KLV&RXUWEHOLHYHVWKDWWKHIRFXV WUXVWHGKLP'HIHQGDQWWKHQJDYHWKHLQIRUPDQWZRUWK
RIWKHLQTXLU\VKRXOGEHZKHWKHU'HIHQGDQWVHUYHGDQ\RIWKH RI FUDFN FRFDLQH  7DVN IRUFH DJHQWV REVHUYHG 'HIHQGDQW
WLPHWKDWKHZDVRUGHUHGWRVHUYH UHWXUQWRKLVPRWHOURRP7KHUHDIWHUWDVNIRUFHDJHQWVWRRN
SRVVHVVLRQRIDSSUR[LPDWHO\JUDPVRIFUDFNFRFDLQHIURP
'HIHQGDQWUHOLHVXSRQ8QLWHG6WDWHVY0F&UDU\)G WKHLQIRUPDQW
WK&LURYHUUXOHGRQRWKHUJURXQGVE\8QLWHG
6WDWHVY8QGHUZRRG)GWK&LUIRUWKH :KLOH VXUYHLOODQFH ZDV VWLOO XQGHUZD\ RQ 'HIHQGDQWjV
SURSRVLWLRQ WKDW D GHIHQGDQW PXVW KDYH DFWXDOO\ VHUYHG D PRWHODQGYHKLFOHWDVNIRUFHDJHQW/DUU\5REELQVREWDLQHGD
SHULRG RI LPSULVRQPHQW LQ RUGHU IRU WKH FRQYLFWLRQ WR EH VWDWHVHDUFKZDUUDQWIRU'HIHQGDQWjVPRWHOURRPDQGYHKLFOH
FRXQWHG XQGHU † $ IRU WZR SRLQWV  ,Q 0F&UDU\ WKH $W DSSUR[LPDWHO\  SP WKDW QLJKW WDVN IRUFH DJHQWV
GHIHQGDQWZDVVHQWHQFHGWRDWHUPRILPSULVRQPHQWKRZHYHU H[HFXWHGWKHVHDUFKZDUUDQWDW'HIHQGDQWjVPRWHOURRPDQG
WKHWHUPZDVVXVSHQGHG,GDW7KXVWKHFDVHDWKDQGLV VHL]HGDSSUR[LPDWHO\RIZKLFKZDVLGHQWLILHG
GLVWLQJXLVKDEOHIURP0F&UDU\LQDVPXFKDV'HIHQGDQWGRHV DVPDUNHGWDVNIRUFHELOOV7KHVHDUFKRI'HIHQGDQWjVYHKLFOH
QRWDUJXHWKDWKLVVHQWHQFHZDVVXVSHQGHGUDWKHUKHDUJXHV UHYHDOHGDQDGGLWLRQDOJUDPVRIFUDFNFRFDLQH
WKDW KH GLG QRW VHUYH WKH IXOO IRXU PRQWKV  +RZHYHU WKH
JXLGHOLQHVGRPDQGDWHWKDWDGHIHQGDQWPXVWKDYHVHUYHGDW 'HIHQGDQWZDVQRWSUHVHQWGXULQJWKHVHDUFK+HKDGWDNHQ
OHDVWVRPHWLPHLQRUGHUIRUKLVFRQYLFWLRQWREHFRQVLGHUHGD DFDEIURPWKH6XSHU0RWHO7DVNIRUFHDJHQWVFRQWDFWHG
mVHQWHQFH RI LPSULVRQPHQWl  866* † $ FPW Q  ,I WKH FDE FRPSDQ\ WR GHWHUPLQH ZKLFK FDE 'HIHQGDQW KDG
'HIHQGDQW KDV VHUYHG D SRUWLRQ RI WKH VHQWHQFH WKHQ IRU WDNHQ(QURXWHWKHsRKQVRQ&LW\3ROLFHVWRSSHGWKHFDELQ
SXUSRVHV RI FDOFXODWLQJ D GHIHQGDQWjV FULPLQDO KLVWRU\ ZKLFK'HIHQGDQWZDVULGLQJDQGDUUHVWHG'HIHQGDQW7DVN
FDWHJRU\WKHIRFXVLVWKHDFWXDOVHQWHQFHSURQRXQFHGQRWWKH IRUFHDJHQWVVHDUFKHGWKHFDEDQGIRXQGDGGLWLRQDOPDUNHG
OHQJWKRIWLPHDFWXDOO\VHUYHG6HHLG WDVNIRUFHELOOV'HIHQGDQWZDVVHDUFKHGLQFLGHQWWRKLVDUUHVW
DQGWDVNIRUFHDJHQWVIRXQGDGGLWLRQDOPDUNHGWDVNIRUFHELOOV
7KH SUREOHP KHUH LV WKDW LW LV XQFOHDU IURP WKH GLVWULFW RQKLVSHUVRQ
FRXUWjV XWWHUDQFH  m, JLYH \RX WKDWl LQ UHVSRQVH WR
'HIHQGDQWjV REMHFWLRQ WR WKH WZRSRLQW HQKDQFHPHQWV 2Q $SULO   D IHGHUDO JUDQG MXU\ UHWXUQHG D WZR
FRXQW LQGLFWPHQW FKDUJLQJ 'HIHQGDQW ZLWK GLVWULEXWLRQ RI
FRFDLQHEDVHFUDFNDQGSRVVHVVLRQRIFRFDLQHEDVHFUDFNZLWK
 LQWHQWWRGLVWULEXWHYLRODWLRQVRI86&†D2Q
7KH IROORZLQJ H[FKDQJH RFFXUUHG EHWZHHQ WKH GLVWULFW FRXUW DQG sXQH'HIHQGDQWPDGHKLVILUVWDSSHDUDQFHEHIRUHD
'HIHQGDQW
'HIHQGDQW 0XUSK\ , MXVW ZDQW LW WR EH NQRZQ WKDW , GLG QRW
MXGLFLDORIILFHU2QsXO\'HIHQGDQWILOHGDPRWLRQ
GR  PRQWKV LQ MDLO
UHTXHVWLQJDPHQWDOHYDOXDWLRQRI'HIHQGDQWSXUVXDQWWR
7KH &RXUW 2ND\ ,jOO JLYH \RX WKDW \RX GLGQjW GR  86&†7KHGLVWULFWFRXUWWRRN'HIHQGDQWjVPRWLRQ
PRQWKV LQ HLWKHU RQH RI WKHP
 8QLWHG6WDWHVY0XUSK\ 1R 1R 8QLWHG6WDWHVY0XUSK\ 

XQGHUDGYLVHPHQWDQGJUDQWHGWKHPRWLRQRQsXO\ OHQJWKRIWLPHEHWZHHQWKHHYHQWVOLVWHGLQWKHDIILGDYLWDQG
2Q sXO\   'HIHQGDQW ZDV WUDQVSRUWHG IURP WKH WKHDSSOLFDWLRQIRUWKHZDUUDQWZKLOHFOHDUO\VDOLHQWLVQRW
(DVWHUQ'LVWULFWRI7HQQHVVHHIRUDPHQWDOHYDOXDWLRQDQGZDV FRQWUROOLQJl,G
UHWXUQHGWRWKH(DVWHUQ'LVWULFWRI7HQQHVVHHRQ2FWREHU
2Q2FWREHUWKHGLVWULFWFRXUWFRQGXFWHGD +HUHDOWKRXJKWKHDIILGDYLWSURYLGHGIRUDILYHGD\WLPH
FRPSHWHQF\ KHDULQJ DQG FRQFOXGHG WKDW 'HIHQGDQW ZDV SHULRGERWKWKHLQIRUPDWLRQSURYLGHGE\WKHWDVNIRUFHDJHQW
FRPSHWHQWWRVWDQGWULDODQGWKDW'HIHQGDQWZDVOHJDOO\VDQH DQGWKHH[HFXWLRQRIWKHVHDUFKRFFXUUHGRQWKHVDPHGD\
DWWKHWLPHRIWKHRIIHQVH 7KXV FRQWUDU\ WR 'HIHQGDQWjV DWWHPSW WR DUJXH WKDW WKH
LQIRUPDWLRQZDVVWDOHWKHFLUFXPVWDQFHVRIWKLVFDVHLQGLFDWH
:KLOHWKHFRPSHWHQF\HYDOXDWLRQZDVSHQGLQJ'HIHQGDQW WKDWLWZDVQRW:HWKHUHIRUHFRQFOXGHWKDWWKHDIILGDYLWZDV
ILOHG D SUR VH PRWLRQ VHHNLQJ VXEVWLWXWLRQ RI FRXQVHO RQ VXIILFLHQWWRVXSSRUWDILQGLQJRISUREDEOHFDXVH
$XJXVW    2Q 2FWREHU   WKH GLVWULFW FRXUW
JUDQWHG'HIHQGDQWjVPRWLRQDQGDSSRLQWHGQHZFRXQVHO,Q ,9&DOFXODWLRQRI'HIHQGDQWjV&ULPLQDO+LVWRU\
DPRWLRQILOHGRQ'HFHPEHU'HIHQGDQWPRYHGWR &DWHJRU\
GLVPLVVWKHLQGLFWPHQWIRUDYLRODWLRQRIWKH6SHHG\7ULDO$FW
7KHGLVWULFWFRXUWGHQLHGWKHPRWLRQRQsDQXDU\ $6WDQGDUGRI5HYLHZ

'HIHQGDQWjVWULDOFRPPHQFHGRQsDQXDU\2QWKH :KHQUHYLHZLQJWKHFDOFXODWLRQRIVHQWHQFHVZHUHYLHZWKH
VDPHGD\WKHMXU\UHWXUQHGDJXLOW\YHUGLFWRQERWKFRXQWV GLVWULFWFRXUWjVIDFWXDOILQGLQJVIRUFOHDUHUURU6HH8QLWHG
2Q$SULOWKHGLVWULFWFRXUWVHQWHQFHG'HIHQGDQWWR 6WDWHV Y 'H)UDQFR  )G   WK &LU
 PRQWKV RI LPSULVRQPHQW WR UXQ FRQFXUUHQWO\ IRU ERWK 4XHVWLRQVLQYROYLQJWKHLQWHUSUHWDWLRQRIWKHJXLGHOLQHVDUH
FRXQWVDQGDWKUHH\HDUWHUPRIVXSHUYLVHGUHOHDVH$OWKRXJK OHJDOTXHVWLRQVWKDWWKLV&RXUWUHYLHZVGHQRYR6HH8QLWHG
WKH GLVWULFW FRXUW GLG QRW LPSRVH D ILQH WKH GLVWULFW FRXUW 6WDWHVY3DUWLQJWRQ)GWK&LU
RUGHUHG'HIHQGDQWWRSD\DVSHFLDODVVHVVPHQWIHH
'HIHQGDQWILOHGDWLPHO\QRWLFHRIDSSHDO %$QDO\VLV

',6&866,21 3XUVXDQWWR866*†$EWZRFULPLQDOKLVWRU\SRLQWV
DUHDGGHGWRDGHIHQGDQWjVWRWDORIIHQVHOHYHOIRUHDFKSULRU
,5XOHE(YLGHQFH VHQWHQFHRILPSULVRQPHQWWKDWFRQVLVWVRIDWOHDVWVL[W\GD\V
7KHFRPPHQWDU\WRVHFWLRQ$SURYLGHVWKDWm>W@RTXDOLI\
$6WDQGDUGRI5HYLHZ DV D VHQWHQFH RI LPSULVRQPHQW WKH GHIHQGDQW PXVW KDYH
DFWXDOO\ VHUYHG D SHULRG RI LPSULVRQPHQW RQ VXFK
:H HPSOR\ D WKUHHVWHS DQDO\VLV WR UHYLHZ WKH GLVWULFW VHQWHQFHl866*†$FPWQ+RZHYHUFULPLQDO
FRXUWjVUXOLQJRQWKHDGPLVVLELOLW\RIHYLGHQFHXQGHU)HGHUDO KLVWRU\SRLQWVDUHEDVHGRQWKHVHQWHQFHSURQRXQFHGQRWWKH
5XOHRI(YLGHQFHE6HH8QLWHG6WDWHVY0HUULZHDWKHU OHQJWKRIWLPHDFWXDOO\VHUYHG6HHLG
)GWK&LU:KHQUHYLHZLQJZKHWKHU
WKH GLVWULFW FRXUW SURSHUO\ DGPLWWHG RU H[FOXGHG  mRWKHU ,QWKHLQVWDQWFDVHWKHGLVWULFWFRXUWSODFHG'HIHQGDQWLQ
FULPHVZURQJVRUDFWVlXQGHU5XOHE FULPLQDO KLVWRU\ FDWHJRU\ ,9 EDVHG RQ WZR PLVGHPHDQRU
FRQYLFWLRQV IRU ZKLFK KH ZDV VHQWHQFHG WR IRXU PRQWKV RI
LPSULVRQPHQW7KHGLVWULFWFRXUWDGGHGWZRSRLQWVIRUHDFK

'HIHQGDQWjV DWWRUQH\ KDG EHHQ HOHFWHG WR D VWDWH MXGJHVKLS
FRQYLFWLRQ LQ FDOFXODWLQJ 'HIHQGDQWjV FULPLQDO KLVWRU\
 8QLWHG6WDWHVY0XUSK\ 1R 1R 8QLWHG6WDWHVY0XUSK\ 

,Q WKLV FDVH WKH DIILGDYLW VWDWHG WKDW WKH LQIRUPDQW KDG ZHILUVWUHYLHZIRUFOHDUHUURUWKHGLVWULFWFRXUWjVIDFWXDO
DOUHDG\EHHQZRUNLQJRQWKLVFDVHZLWKWKHDJHQWVDWWKHWLPH GHWHUPLQDWLRQWKDWWKHmRWKHUDFWVlRFFXUUHG6HFRQG
RIWKHUHTXHVWIRUWKHZDUUDQW7KHDIILGDYLWIXUWKHUSURYLGHG ZH H[DPLQH GH QRYR WKH GLVWULFW FRXUWjV OHJDO
WKDWWKHDJHQWVKDGSHUVRQDOO\REVHUYHG'HIHQGDQWOHDYHKLV GHWHUPLQDWLRQ WKDW WKH HYLGHQFH ZDV DGPLVVLEOH IRU D
PRWHO URRP DIWHU VSHDNLQJ ZLWK WKH LQIRUPDQW RQ WKH OHJLWLPDWH SXUSRVH  )LQDOO\ ZH UHYLHZ IRU DEXVH RI
WHOHSKRQH D FRQYHUVDWLRQ WKDW WKH DJHQWV RYHUKHDUG  7KH\ GLVFUHWLRQ WKH GLVWULFW FRXUWjV GHWHUPLQDWLRQ WKDW WKH
REVHUYHG'HIHQGDQWZDONWRKLVUHG0XVWDQJFRQYHUWLEOHLQ SUREDWLYH YDOXH RI WKH RWKHU DFWV HYLGHQFH LV QRW
WKHPRWHOSDUNLQJORWPHHWZLWKWKHLQIRUPDQWDPHHWLQJWKH\ VXEVWDQWLDOO\RXWZHLJKHGE\LWVXQIDLUO\SUHMXGLFLDOHIIHFW
NQHZLQYROYHGWKHVDOHE\'HIHQGDQWRIDTXDQWLW\RIFUDFN
FRFDLQH WR WKH LQIRUPDQW DQG UHWXUQ WR KLV KRWHO URRP ,GFLWLQJ8QLWHG6WDWHVYsRKQVRQ)GWK
9LHZLQJWKHWRWDOLW\RIWKHFLUFXPVWDQFHVWKHDIILGDYLWZDV &LU
VXIILFLHQW WR VXSSRUW D ILQGLQJ RI SUREDEOH FDXVH IRU WKH
ZDUUDQW WKDW ZDV LVVXHG  7KDW 'HIHQGDQW KDV SRLQWHG RXW %$QDO\VLV
VSHFLILFIDFWXDOGHWDLOVWKDWWKHWDVNIRUFHDJHQWVFRXOGKDYH
SURYLGHGLQWKHDIILGDYLWWRWKHPDJLVWUDWHGRHVQRWQHJDWHD )HGHUDO5XOHRI(YLGHQFHEUHDGVLQSHUWLQHQWSDUW
ILQGLQJ RI SUREDEOH FDXVH  WKLV &RXUW GRHV QRW UHYLHZ WKH
VXIILFLHQF\RIDQDIILGDYLWWKURXJKVXFKDOHQV6HH8QLWHG (YLGHQFH RI RWKHU FULPHV ZURQJV RU DFWV LV QRW
6WDWHVY.LQJ)GWK&LU DGPLVVLEOHWRSURYHWKHFKDUDFWHURIDSHUVRQLQRUGHUWR
VKRZDFWLRQLQFRQIRUPLW\WKHUHZLWK,WPD\KRZHYHUEH
$OWKRXJKSRLQWHGRXWDVRQHRIWKHIDFWXDOVKRUWFRPLQJVRI DGPLVVLEOHIRURWKHUSXUSRVHVVXFKDVSURRIRIPRWLYH
WKH DIILGDYLW 'HIHQGDQW DOVR FRQWHQGV WKDW WKH DIILGDYLWjV RSSRUWXQLW\ LQWHQW SUHSDUDWLRQ SODQ NQRZOHGJH
FRQWHQWLVLQVXIILFLHQWWRVXSSRUWSUREDEOHFDXVHEHFDXVHWKH LGHQWLW\RUDEVHQFHRIPLVWDNHRUDFFLGHQW
LQIRUPDWLRQZDVVWDOHWKXVUHPRYLQJWKHSUREDELOLW\WKDWWKH
HYLGHQFHZRXOGEHIRXQGLQ'HIHQGDQWjVPRWHOURRPWKHGDWH )(' 5 (9,'E
RQZKLFKLWZDVIRXQG6SHFLILFDOO\'HIHQGDQWSRLQWVWRWKH 2QDSSHDO'HIHQGDQWDUJXHVWKDWWKHGLVWULFWFRXUWHUUHGE\
ILYHGD\WLPHSHULRGVHWIRUWKLQWKHDIILGDYLW+RZHYHUWKLV DGPLWWLQJmRWKHUDFWVlHYLGHQFHLQYLRODWLRQRI5XOHE
&RXUW GRHV QRW ILQG WKDW WKH LQIRUPDWLRQ SURYLGHG LQ WKH )LUVW'HIHQGDQWDUJXHVWKDWWKHJRYHUQPHQWjVUHIHUHQFHLQLWV
DIILGDYLWZDVVWDOH RSHQLQJ VWDWHPHQW WR 'HIHQGDQW VHOOLQJ GUXJV WR VRPHRQH
,Q 8QLWHG 6WDWHV Y 6SLNHV  )G   WK &LU HOVHRQDSULRURFFDVLRQZDVLPSURSHU6HFRQG'HIHQGDQW
WKLV&RXUWUHFRJQL]HGWKDWWKHmIXQFWLRQRIDVWDOHQHVV FRQWHQGV WKDW WKH GLVWULFW FRXUW HUUHG E\ DOORZLQJ WKH
WHVWLQWKHVHDUFKZDUUDQWFRQWH[WLVQRWWRFUHDWHDQDUELWUDU\ JRYHUQPHQWWRFDOODUHEXWWDOZLWQHVVWRWHVWLI\LQVXPDQG
WLPH OLPLWDWLRQ ZLWKLQ ZKLFK GLVFRYHUHG IDFWV PXVW EH VXEVWDQFHWKDWKHKDGHQJDJHGLQDSULRUGUXJWUDQVDFWLRQZLWK
SUHVHQWHGWRDPDJLVWUDWH5DWKHUWKHTXHVWLRQRIVWDOHQHVV 'HIHQGDQW'HIHQGDQWjVFODLPVRIHUURUDUHZLWKRXWPHULW
GHSHQGV RQ WKH LQKHUHQW QDWXUH RI WKH FULPHl VXFK DV WKH 2SHQLQJ6WDWHPHQW
FKDUDFWHURIWKHFULPHWKHDOOHJHGFULPLQDOWKHWKLQJWREH
VHL]HGDQGWKHSODFHWREHVHDUFKHG4XRWDWLRQDQGFLWDWLRQ $OWKRXJK'HIHQGDQWREMHFWHGWRWKHJRYHUQPHQWjVUHIHUHQFH
RPLWWHG  ,Q GHWHUPLQLQJ ZKHWKHU WKH LQIRUPDWLRQ LQ WKH WR 'HIHQGDQWjV SULRU DOOHJHG GUXJ WUDQVDFWLRQ KH GLG QRW
DIILGDYLWLVVWDOHZHPXVWORRNDWWKHFLUFXPVWDQFHVRIHDFK VSHFLILFDOO\REMHFWRQWKHJURXQGZKLFKKHQRZDWWHPSWVWR
FDVH6HHLG,QMXGJLQJWKHFLUFXPVWDQFHVRIHDFKFDVHmWKH
 8QLWHG6WDWHVY0XUSK\ 1R 1R 8QLWHG6WDWHVY0XUSK\ 

DUJXHRQDSSHDO7RWKHH[WHQWWKDW'HIHQGDQWREMHFWHGRQ VXEMHFWZLWKLQWKHODVWILYHGD\VZKLOHZRUNLQJXQGHUWKH
DQ\ EDVLV KH REMHFWHG RQ WKH JURXQGV WKDW WKH VWDWHPHQW GLUHFWLRQRIWKHVWsXG'UXJ7DVN)RUFH3ULRUWRWKH
DVVXPHG IDFWV QRW LQ HYLGHQFH RU PLVVWDWHG WKH IDFWV WUDQVDFWLRQ DJHQWV REVHUYHG %P /HH OHDYH WKH PRWHO
+RZHYHU KH GLG QRW REMHFW EDVHG XSRQ 5XOH E DIWHUVSHDNLQJWRWKHLQIRUPDQWRQWKHSKRQHDQGZDONWR
7KHUHIRUH'HIHQGDQWKDVIRUIHLWHGWKLVDUJXPHQW6HH8QLWHG KLV YHKLFOH>@ D UHG 0XVWDQJ FRQYHUWLEOH ZKLFK ZDV
6WDWHVY%XFKDQRQ)GWK&LU SDUNHGRQWKHORWRIWKH6XSHU0RWHO>@DQGWKHQPHW
KROGLQJ WKDW GHIHQGDQW IRUIHLWHG DUJXPHQW RQ DSSHDO E\ ZLWKWKHLQIRUPDQWDQGVROGWKHLQIRUPDQWDTXDQWLW\RI
IDLOLQJWRUDLVHDUJXPHQWZLWKVSHFLILFLW\8QLWHG6WDWHVY FUDFNFRFDLQH7KH%P/HHZDVWKHQREVHUYHGHQWHULQJ
DQHYLGHQWLDU\GHWHUPLQDWLRQ@RQVSHFLILF FDXVHWKDWLOOHJDODFWLYLW\LVFRQWLQXLQJRQWKHSURSHUW\WKH
JURXQGVLQWKHWULDOFRXUWEXWRQDSSHDOWKHSDUW\DVVHUWVQHZ DIILGDYLWLVQRWVXSSRUWHG E\DQ\LQIRUPDWLRQVKRZLQJWKDW
JURXQGVFKDOOHQJLQJ>WKDWGHWHUPLQDWLRQ@jlTXRWLQJ8QLWHG 'HIHQGDQW SRVVHVVHG DGGLWLRQDO GUXJV DIWHU KLV VDOH WR WKH
6WDWHV Y (YDQV  )G   WK &LU  LQIRUPDQW  WKH ILYHGD\ SHULRG LV WRR ORQJ D SHULRG WR
DOWHUDWLRQV LQ RULJLQDO m3ODLQ HUURUV DUH OLPLWHG WR WKRVH VXSSRUWDVHDUFKRIWKHSUHPLVHVWKHDIILGDYLWIDLOVWRVWDWH
KDUPIXORQHVVRUDQNWKDWWKH\VKRXOGKDYHEHHQDSSDUHQWWR WKHTXDQWLW\RIGUXJVDOOHJHGO\SXUFKDVHGDQGWKHDIILGDYLW
WKHWULDOMXGJHZLWKRXWREMHFWLRQRUWKDWVWULNHDWIXQGDPHQWDO GRHV QRW VWDWH WKH URRP LQ ZKLFK WKH QDPHG SHUVRQ ZDV
IDLUQHVVKRQHVW\RUSXEOLFUHSXWDWLRQRIWKHWULDOl(YDQV DOOHJHGWRKDYHHQWHUHGRUWKHOLFHQVHSODWHQXPEHURIWKHFDU
)GDWFLWDWLRQDQGTXRWDWLRQVRPLWWHG:HILQGQR 'HIHQGDQWjVFRQWHQWLRQVDUHZLWKRXWPHULWHVSHFLDOO\DIWHUWKH
VXFKHUURULQWKHLQVWDQWFDVH GHFLVLRQKRZHYHULOODGYLVHGLQ8QLWHG6WDWHVY$OOHQ
)GWK&LUHQEDQF
$IWHU 'HIHQGDQWjV DWWRUQH\ REMHFWHG WKH FRXUW DVNHG WKH
JRYHUQPHQW DWWRUQH\ LI WKH VWDWHPHQW FRQFHUQLQJ WKH SULRU ,Q $OOHQ WKH GHIHQGDQW FKDOOHQJHG WKH VXIILFLHQF\ RI WKH
GUXJWUDQVDFWLRQZDVUHODWHGWRWKHFDVHDQGWKHQSURFHHGHGWR DIILGDYLW XQGHUO\LQJ D VHDUFK ZDUUDQW  7KH DIILGDYLW ZDV
JLYHWKHMXU\WKHIROORZLQJFDXWLRQDU\LQVWUXFWLRQ EDVHG XSRQ WKH SHUVRQDO REVHUYDWLRQ RI DOOHJHG FULPLQDO
DFWLYLW\E\DFRQILGHQWLDOLQIRUPDQWZKRKDGEHHQQDPHGWR
WKHPDJLVWUDWHDQGZKRKDGSURYLGHGUHOLDEOHLQIRUPDWLRQWR
WKHSROLFHLQWKHSDVWDERXWFULPLQDODFWLYLW\7KHDIILGDYLW
 KRZHYHUGLGQRWVSHFLI\WKHW\SHRIDFWLYLW\DERXWZKLFKWKH
'XULQJ KLV RSHQLQJ VWDWHPHQW WR WKH MXU\ WKH JRYHUQPHQW DWWRUQH\
LQIRUPDQWKDGSUHYLRXVO\JLYHQUHOLDEOHLQIRUPDWLRQ6HHLG
VWDWHV
:KDW WKH JRYHUQPHQW EHOLHYHV WKH HYLGHQFH ZLOO VKRZ LQ WKH WULDO
DW,Q$OOHQDQDIILGDYLWVXSSRUWHGE\VWDWHPHQWVRID
RI >'HIHQGDQW@ LV WKLV VRPHWLPH SULRU WR WKH WK RI 6HSWHPEHU FRQILGHQWLDO LQIRUPDQW ZKR KDG SUHYLRXVO\ JLYHQ UHOLDEOH
 FRQILGHQWLDO LQIRUPDQW FDPH WR 0U /DUU\ 5REELQV DQG LQIRUPDWLRQZLWKRXWUHJDUGWRW\SHRILQIRUPDWLRQSUHYLRXVO\
VDLG >'HIHQGDQW@ LV VHOOLQJ FUDFN FRFDLQH DQG , FDQ EX\ LW IURP JLYHQDQGZLWKRXWFRUURERUDWLRQRIWKHDOOHJDWLRQVXQGHUO\LQJ
KLP %DVHG XSRQ WKDW LQIRUPDWLRQ 0U 5REELQV ZLUHG XS WKH WKHDIILGDYLWZDVGHHPHGVXIILFLHQWWRVXSSRUWDILQGLQJRI
FRQILGHQWLDO LQIRUPDQW
s$ DW  $W WKDW SRLQW FRXQVHO IRU 'HIHQGDQW REMHFWHG RQ WKH JURXQG
SUREDEOHFDXVHLQWKLV&LUFXLW6HHLG
WKDW WKH JRYHUQPHQW ZDV mPDNLQJ D UHIHUHQFH WR VRPHWKLQJ WKDWjV QRW SDUW
RI WKLV FDVH DV IDU DV DQ\WKLQJ WKDW PD\ KDYH KDSSHQHG WKH LQIRUPDQW
FRPHV WR 5REELQVl ,G HPSKDVLV DGGHG
 8QLWHG6WDWHVY0XUSK\ 1R 1R 8QLWHG6WDWHVY0XUSK\ 

mPDJLVWUDWHSHUIRUPKLVµQHXWUDODQGGHWDFKHGjIXQFWLRQDQG +H >WKH JRYHUQPHQW DWWRUQH\@ VD\V LW LV ZHjOO KDYH WR
QRWVHUYHPHUHO\DVDUXEEHUVWDPSIRUSROLFHl$JXLODUY ZDLWDQGVHH,GRQjWNQRZ:HjOOKDYHWRZDLWDQGVHH
7H[DV86RYHUUXOHGRQRWKHUJURXQGV G@HIHUHQFHWRWKH>LVVXLQJ@PDJLVWUDWHLVQRWERXQGOHVVl QRW SURRI LWjV DOOHJDWLRQV  ,W GRHVQjW PHDQ DQ\WKLQJ
:HDYHU)GDWTXRWLQJ8QLWHG6WDWHVY/HRQ 7KH RQO\ ZD\ LWjV JRLQJ WR PHDQ DQ\WKLQJ LV RQ WKH
86     )LQDOO\ WKH JHQHUDO UHPHG\ IRU D ZLWQHVVVWDQGDQGWKHODZWKDW,WHOO\RXWKHZD\LWLV,jP
)RXUWK $PHQGPHQW YLRODWLRQ LV WKDW WKH HYLGHQFH REWDLQHG QRWEHOLWWOLQJWKHIDFWWKDWWKH\QHHGWRPDNHDQRSHQLQJ
GXHWRWKHXQFRQVWLWXWLRQDOVHDUFKRUVHL]XUHLVLQDGPLVVLEOH VWDWHPHQW,jPMXVWWHOOLQJ\RXWKDWVR\RXFDQWDNHLWDQG
LQFOXGLQJ ERWK HYLGHQFH REWDLQHG DV D GLUHFW UHVXOW RI WKH ZRUNIURPLW
XQFRQVWLWXWLRQDO VHDUFK DQG VHL]XUH DQG HYLGHQFH WKDW LV
FRQVLGHUHGIUXLWRIWKHSRLVRQRXVWUHH6HH8QLWHG6WDWHVY s$ DW  HPSKDVLV DGGHG  ,Q WKLV FDVH WKH GLVWULFW
'LFH)GWK&LU FRXUWjV FDXWLRQDU\ LQVWUXFWLRQ UHJDUGLQJ WKH RSHQLQJ
VWDWHPHQWV ZDV DGHTXDWH WR DSSULVH WKH MXU\ RI WKH OLPLWHG
%$QDO\VLV SXUSRVHIRUZKLFKWKHDOOHJDWLRQVRI'HIHQGDQWjVSULRUDFWZDV
WREHFRQVLGHUHG%HFDXVHLWLVSUHVXPHGWKDWWKHMXU\ZLOO
m>1@R :DUUDQWV VKDOO LVVXH EXW XSRQ SUREDEOH FDXVH IROORZWKHLQVWUXFWLRQFRUUHFWO\DVJLYHQVHH8QLWHG6WDWHVY
VXSSRUWHGE\RDWKRUDIILUPDWLRQl86 & $%DPHQG 7LQHV  )G   WK &LU  FLWLQJ =DILUR Y
,9m7KHWHVWIRUSUREDEOHFDXVHLVVLPSO\ZKHWKHUWKHUHLVD 8QLWHG6WDWHV86DQGDEVHQWDQ\
IDLUSUREDELOLW\WKDWFRQWUDEDQGRUHYLGHQFHRIDFULPHZLOOEH HYLGHQFHWRWKHFRQWUDU\WKHUHLVQRLQGLFDWLRQWKDWWKHMXU\
IRXQGLQDSDUWLFXODUSODFHl8QLWHG6WDWHVY6KDPDHL]DGHK LPSURSHUO\ FRQVLGHUHG WKH RSHQLQJ VWDWHPHQW  0RUHRYHU
)GWK&LU8QLWHG6WDWHVY)LQFK WKHUH ZDV QRWKLQJ DERXW WKDW VWDWHPHQW WKDW ZRXOG
)GWK&LU,Q,OOLQRLVY*DWHVWKH DXWRPDWLFDOO\DOHUWWKHMXGJHWKDWDQHUURUKDGEHHQPDGHQRU
6XSUHPH&RXUWHPEUDFHGDWRWDOLW\RIWKHFLUFXPVWDQFHVWHVW GLGWKHVWDWHPHQWVWULNHDWWKHIXQGDPHQWDOIDLUQHVVRUSXEOLF
WRGHWHUPLQHLISUREDEOHFDXVHH[LVWVUHTXLULQJWKHLVVXLQJ UHSXWDWLRQRIWKHWULDO7KXV'HIHQGDQWjVFODLPRIHUURUPXVW
PDJLVWUDWHWRmPDNHDSUDFWLFDOFRPPRQVHQVHGHFLVLRQ IDLO
JLYHQDOOWKHFLUFXPVWDQFHVVHWIRUWKLQWKHDIILGDYLWEHIRUH
KLP LQFOXGLQJ WKH µYHUDFLW\j DQG µEDVLV RI NQRZOHGJHj RI
SHUVRQVVXSSO\LQJKHDUVD\LQIRUPDWLRQl86DW
2QDSSHDO'HIHQGDQWFRQWHQGVWKDWWKHDIILGDYLWXQGHUO\LQJ
WKHZDUUDQWZDVLQVXIILFLHQWWRVXSSRUWDILQGLQJRISUREDEOH
FDXVH:HGLVDJUHH 
7KH JRYHUQPHQW FRQWHQGV WKDW WKH UHIHUHQFH WR WKH FRQILGHQWLDO

8QLWHG 6WDWHV Y
7KH DIILGDYLW LQ WKH FDVH DW KDQG SURYLGHG WKH IROORZLQJ
LQIRUPDQW ZDV SURSHU EDFNJURXQG LQIRUPDWLRQ FLWLQJ

$JXZD  )G   WK &LU  7KLV &RXUW DJUHHV 7KH

LQIRUPDWLRQ JRYHUQPHQW DOVR FRQWHQGV WKDW WKH UHIHUHQFH WR WKH FRQILGHQWLDO LQIRUPDQW

DQG 'HIHQGDQW ZDV QRW D UHIHUHQFH WR D SULRU EDG DFW 7KLV FRQWHQWLRQ

$FRQILGHQWLDODQGUHOLDEOHLQIRUPDQWZKRKDVLQWKHSDVW KRZHYHU LV QRW ZHOO WDNHQ 7KH UXOH RI HYLGHQFH FRQFHUQLQJ SULRU

JLYHQ DJHQWV RI WKH VW sXG 'UXJ 7DVN )RUFH UHOLDEOH PLVFRQGXFW RI WKH GHIHQGDQW UHODWHV QRW RQO\ WR SULRU FULPHV EXW WR DQ\

LQIRUPDWLRQ ZKLFK KDV UHVXOWHG LQ DUUHVWV ZLWK FRQGXFW RI WKH GHIHQGDQW ZKLFK PD\ EHDU DGYHUVHO\ RQ WKH MXU\
V MXGJPHQW

6HH 8QLWHG 6WDWHV Y &RRSHU
FRQYLFWLRQVKDVSXUFKDVHGFUDFNFRFDLQHIURPWKHOLVWHG
RI KLV FKDUDFWHU  )G  

WK &LU 
 8QLWHG6WDWHVY0XUSK\ 1R 1R 8QLWHG6WDWHVY0XUSK\ 

5HEXWWDO:LWQHVV $OWKRXJKLWZDVFHUWDLQO\FDSDEOHRIGRLQJVR&RQJUHVV
JDYH QR LQGLFDWLRQ WKDW  86& † E PRGLILHV
'HIHQGDQW DOVR FRQWHQGV WKDW WKH GLVWULFW FRXUW VHFWLRQK$0RUHRYHUWKHUHLVQRFRPSHOOLQJ
LPSHUPLVVLEO\ DOORZHG WKH WHVWLPRQ\ RI D UHEXWWDO ZLWQHVV UHDVRQ WKDW WKH WZR VWDWXWHV EH OLQNHG :H UHIXVH
RIIHUHG E\ WKH JRYHUQPHQW LQ YLRODWLRQ RI 5XOH E WKHUHIRUH WR ILQG D OLPLWDWLRQ ZKHUH &RQJUHVV GLG QRW
$OWKRXJK'HIHQGDQWREMHFWHGWRWKHDGPLVVLRQRImRWKHUDFWVl H[SUHVVO\FUHDWHRQH
HYLGHQFHGXULQJKLVFURVVH[DPLQDWLRQXQGHU5XOHELW
DSSHDUV WKDW RQ DSSHDO 'HIHQGDQW LV DUJXLQJ WKDW LW ZDV ,GDWFLWDWLRQVRPLWWHG7KHUHDVRQLQJRIWKH6HYHQWK
LPSURSHUWRDOORZWHVWLPRQ\RIDUHEXWWDOZLWQHVVFDOOHGWR DQG1LQWK&LUFXLWVLVSHUVXDVLYH:HWKHUHIRUHFRQFOXGHWKDW
UHIXWHDSRUWLRQRI'HIHQGDQWjVWHVWLPRQ\7RWKHH[WHQWWKDW †EGRHVQRWOLPLWWKHWLPHH[FOXGDEOHXQGHUWKH6SHHG\
KHDUJXHVLWZDVHUURUWRDOORZWKHUHEXWWDOZLWQHVVWRWHVWLI\ 7ULDO$FWIRUPHQWDOFRPSHWHQF\H[DPLQDWLRQV
'HIHQGDQWKDVIRUIHLWHGWKLVDUJXPHQWRQDSSHDOEHFDXVHKH
GLGQRWREMHFWWRWKHUHEXWWDOZLWQHVVjVWHVWLPRQ\DWWULDO6HH 5HTXHVWIRU1HZ&RXQVHO
GLVFXVVLRQVXSUD3DUW,%
'HIHQGDQW QH[W DUJXHV WKDW WKH WLPH WKDW ZDV QHHGHG WR
7XUQLQJWRWKHEREMHFWLRQWKHIROORZLQJH[FKDQJH REWDLQ QHZ FRXQVHO IRU KLP VKRXOG QRW EH H[FOXGHG IRU
RFFXUUHGGXULQJWKHFURVVH[DPLQDWLRQRI'HIHQGDQW SXUSRVHV RI WKH 6SHHG\ 7ULDO $FW  +RZHYHU  86&
† K) ZKLFK SURYLGHV IRU H[FOXGDEOH GHOD\
*RYHUQPHQWDWWRUQH\ 1RZ WKLV GUXJ WUDQVDFWLRQRQ mUHVXOWLQJ IURP DQ\ SUHWULDO PRWLRQ IURP WKH ILOLQJ RI WKH
WKH WK RI 6HSWHPEHU LVQjW PRWLRQ WKURXJK WKH FRQFOXVLRQ RI WKH KHDULQJ RQ RU RWKHU
\RXU ILUVW FUDFN FRFDLQH GUXJ SURPSWGLVSRVLWLRQRIVXFKPRWLRQlGLFWDWHVWKDWWKLVWLPHLV
WUDQVDFWLRQLVLW" H[FOXGHG6HH8QLWHG6WDWHVY7D\ORU)GWK
'HIHQGDQW ([FXVHPH &LUREVHUYLQJWKDWLWZDVSURSHUWRH[FOXGHWLPHIURP
*RYHUQPHQWDWWRUQH\ ,W LVQjW \RXU ILUVW GHDOLQJZLWK FDOFXODWLRQZKHUH'HIHQGDQWUHTXHVWHGQHZFRXQVHO
FUDFNFRFDLQHLVLW"
'HIHQGDQWjVDWWRUQH\ , REMHFW WR WKDW IRU UHDVRQV, ,,,6XSSUHVVLRQRI(YLGHQFH
SUHYLRXVO\VWDWHGWRWKH
FRXUW $6WDQGDUGRI5HYLHZ
7KH&RXUW :HOOKDVKHEHHQFRQYLFWHGRI
LWLVWKHTXHVWLRQLVQjWLW" :KHQ UHYLHZLQJ WKH GHQLDO RI D PRWLRQ WR VXSSUHVV ZH
*RYHUQPHQWDWWRUQH\ 1R\RXUKRQRU,jPDVNLQJKLP UHYLHZDGLVWULFWFRXUWjVIDFWXDOILQGLQJVIRUFOHDUHUURUZKLOH
LIKHKDVHQJDJHGLQRWKHUFUDFN FRQFOXVLRQVRIODZDUHUHYLHZHGGHQRYR6HH8QLWHG6WDWHV
FRFDLQHGHDOVSULRUWRWKHWK Y6PLWK)GWK&LU0RUHRYHUWKH
GD\RI6HSWHPEHU HYLGHQFHPXVWEHYLHZHGLQWKHOLJKWPRVWIDYRUDEOHWRWKH
7KH&RXUW 2ND\:K\GR\RXREMHFWWRLW" JRYHUQPHQW6HH8QLWHG6WDWHVY:DONHU)G
'HIHQGDQWjVDWWRUQH\ ,WjVQRWDGPLVVLEOHXQGHU5XOH WK &LU   :H JLYH JUHDW GHIHUHQFH WR WKH
E\RXUKRQRU GHWHUPLQDWLRQVRISUREDEOHFDXVHPDGHE\DPDJLVWUDWHMXGJH
*RYHUQPHQWDWWRUQH\ W@RSXWWKHWZR
VWDWXWHVWRJHWKHUERUURZLQJWKHDQGGD\OLPLWVIURPWKH 8SRQREMHFWLRQE\WKHGHIHQGDQWWKHSURSRQHQWRIWKH
FRPPLWPHQWVWDWXWHIRULQWHUSRODWLRQLQWRWKHOLPLWOHVVGHOD\ HYLGHQFHXVXDOO\WKHJRYHUQPHQWVKRXOGEHUHTXLUHGWR
SURYLVLRQRIWKH6SHHG\7ULDO$FWZRXOGEHDQDXGDFLRXVELW LGHQWLI\WKHVSHFLILFSXUSRVHRUSXUSRVHVIRUZKLFKWKH
RIMXGLFLDOFUHDWLYLW\DQGWRQRSXUSRVHWKDWZHFDQVHHl,G JRYHUQPHQWRIIHUVWKHHYLGHQFHRImRWKHUFULPHVZURQJV
DW RU DFWVl  %\ VR UHTXLULQJ ZH GR QRW PDQGDWH
K\SHUWHFKQLFDOLW\,WLVWUXHWKDWZKHWKHUEHYLGHQFH
,Q 0LUDQGD WKH GHIHQGDQW DUJXHG WKDW VHFWLRQ E LVDGPLVVLEOHIRUDSDUWLFXODUSXUSRVHZLOOVRPHWLPHVEH
OLPLWHG WKH WLPH WKDW FDQ EH H[FOXGHG IRU D FRPSHWHQF\ XQFOHDUXQWLOODWHLQWKHWULDOEHFDXVHZKHWKHUDIDFWLVmLQ
H[DPLQDWLRQXQGHUVHFWLRQK$RIWKH6SHHG\7ULDO LVVXHlRIWHQGHSHQGVRQWKHGHIHQGDQWjVWKHRU\DQGWKH
$FWWRIRUW\ILYHGD\V)GDW,QUHMHFWLQJWKH SURRIVDVWKH\GHYHORS1HYHUWKHOHVVWKHJRYHUQPHQWjV
GHIHQGDQWjVDUJXPHQWWKH1LQWK&LUFXLWVWDWHG SXUSRVHLQLQWURGXFLQJWKHHYLGHQFHPXVWEHWRSURYHD
IDFWWKDWWKHGHIHQGDQWKDVSODFHGRUFRQFHLYDEO\ZLOO
7KH SODLQ ODQJXDJH RI WKH 6SHHG\ 7ULDO $FW JLYHV QR SODFH LQ LVVXH RU D IDFW WKDW WKH VWDWXWRU\ HOHPHQWV
LQGLFDWLRQWKDWDQH[FOXVLRQIRUDFRPSHWHQF\HYDOXDWLRQ REOLJDWHWKHJRYHUQPHQWWRSURYH
PXVW EH VR OLPLWHG  7R WKH FRQWUDU\ VHFWLRQ
K$H[SUHVVO\H[FOXGHVmDQ\SHULRGRIGHOD\ $IWHU UHTXLULQJ WKH SURSRQHQW WR LGHQWLI\ WKH VSHFLILF
UHVXOWLQJ IURP RWKHU SURFHHGLQJV FRQFHUQLQJ WKH SXUSRVH IRU ZKLFK WKH HYLGHQFH LV RIIHUHG WKH GLVWULFW
GHIHQGDQWLQFOXGLQJEXWQRWOLPLWHGWRGHOD\UHVXOWLQJ FRXUW PXVW GHWHUPLQH ZKHWKHU WKH LGHQWLILHG SXUSRVH
IURP DQ\ SURFHHGLQJ LQFOXGLQJ DQ\ H[DPLQDWLRQV WR ZKHWKHUWRSURYHPRWLYHRULQWHQWRULGHQWLW\VRPHRWKHU
GHWHUPLQHWKHPHQWDOFRPSHWHQF\RUSK\VLFDOFDSDFLW\RI SXUSRVHLVmPDWHULDOlWKDWLVZKHWKHULWLVmLQLVVXHlLQ
WKHGHIHQGDQWl WKH FDVH  ,I WKH FRXUW ILQGV LW LV WKH FRXUW PXVW WKHQ
GHWHUPLQH EHIRUH DGPLWWLQJ WKH RWKHU DFWV HYLGHQFH
ZKHWKHU WKH SUREDWLYH YDOXH RI WKH HYLGHQFH LV
 8QLWHG6WDWHVY0XUSK\ 1R 1R 8QLWHG6WDWHVY0XUSK\ 

VXEVWDQWLDOO\ RXWZHLJKHG E\ WKH GDQJHU RI XQIDLU HYDOXDWLRQ XQOHVV DQ H[WHQVLRQ LV UHTXHVWHG  'HIHQGDQW
SUHMXGLFHXQGHU5XOH,IWKHHYLGHQFHVDWLVILHV5XOH DVVHUWV WKDW DQ H[WHQVLRQ ZDV QRW UHTXHVWHG LQ WKH FDVH DW
WKHQDIWHUUHFHLYLQJWKHHYLGHQFHWKHGLVWULFWFRXUW KDQG
PXVWmFOHDUO\VLPSO\DQGFRUUHFWO\lLQVWUXFWWKHMXU\DV
WRWKHVSHFLILFSXUSRVHIRUZKLFKWKH\PD\FRQVLGHUWKH :H QRWH WKDW 'HIHQGDQW IDLOV WR SRLQW WKLV &RXUW WR DQ\
HYLGHQFH HYLGHQFHLQWKHUHFRUGGHPRQVWUDWLQJWKHGDWHVXSRQZKLFKKH
ZDV WUDQVSRUWHG WR DQG IURP WKH IDFLOLW\ ZKHUH WKH
)GDW$VWKHUHFRUGHYLQFHVVXFKDQDQDO\VLV H[DPLQDWLRQZDVFRQGXFWHGRUWKHDFWXDOGDWHVWKDW'HIHQGDQW
GLG QRW RFFXU  7KXV LW DSSHDUV WKDW WKH GLVWULFW FRXUW ZDVDGPLWWHGRUUHOHDVHGIURPWKHIDFLOLW\:HDOVRFRQFOXGH
LPSURSHUO\IDLOHGWRDQDO\]HWKHmRWKHUDFWVlHYLGHQFHEHIRUH WKDW'HIHQGDQWjVFRQWHQWLRQLVZLWKRXWPHULW:HKDYHQRW
DOORZLQJWKHMXU\WRKHDUWKHHYLGHQFH DGGUHVVHGWKLVVSHFLILFLVVXHKRZHYHUHYHU\RWKHUFLUFXLWWKDW
KDVDGGUHVVHGWKHLVVXHKDVFRQFOXGHGWKDWWLPHDVVRFLDWHG
1HYHUWKHOHVV WKLV &RXUW ILQGV WKDW DQ\ HUURU LI DQ\ LQ ZLWKPHQWDOFRPSHWHQF\H[DPLQDWLRQVDUHH[FOXGHGIURPWKH
DGPLWWLQJHYLGHQFHRImRWKHUDFWVlLVKDUPOHVVLQOLJKWRIWKH 6SHHG\7ULDOFORFN6HH8QLWHG6WDWHVY1RRQH)G
RYHUZKHOPLQJ HYLGHQFH RI 'HIHQGDQWjV JXLOW  6HH 8QLWHG VW&LUKROGLQJWKDWH[FOXVLRQRIWLPHEHJLQV
6WDWHVY/D\QH)GWK&LUDSSO\LQJ ZKHQPRWLRQWRGHWHUPLQHFRPSHWHQF\LVILOHGDQGHQGVZKHQ
KDUPOHVV HUURU DQDO\VLV ZKHUH JRYHUQPHQW SUHVHQWHG RWKHU FRPSHWHQF\KHDULQJLVFRQFOXGHG8QLWHG6WDWHVY9DVTXH]
FRQYLQFLQJRURYHUZKHOPLQJHYLGHQFHDVLGHIURPmRWKHUDFWVl  )G   G &LU  KROGLQJ WKDW WHQ PRQWK
HYLGHQFH$QHUURULVKDUPOHVVXQOHVVRQHFDQVD\ZLWKIDLU GHOD\ EHWZHHQ PRWLRQ IRU SV\FKLDWULF H[DP DQG UHFHLSW RI
DVVXUDQFHWKDWWKHHUURUPDWHULDOO\DIIHFWHGWKHGHIHQGDQWjV
VXEVWDQWLDOULJKWVWKDWWKHMXGJPHQWZDVVXEVWDQWLDOO\VZD\HG
E\WKHHUURU6HH.RWWHDNRVY8QLWHG6WDWHV86 
  sRKQVRQ  )G DW  FRQFOXGLQJ WKDW
 86& † E SURYLGHV

HUURQHRXVDGPLVVLRQRIHYLGHQFHXQGHU)('5(9,' E
3V\FKLDWULF RU SV\FKRORJLFDO H[DPLQDWLRQ$ SV\FKLDWULF RU

SV\FKRORJLFDO H[DPLQDWLRQ RUGHUHG SXUVXDQW WR WKLV FKDSWHU VKDOO

ZDVKDUPOHVVHUURUVHHDOVR8QLWHG6WDWHVY.LPEDOO  EH FRQGXFWHG E\ D OLFHQVHG RU FHUWLILHG SV\FKLDWULVW RU

)GWK&LUUHDVRQLQJWKDWDOWKRXJKWKH SV\FKRORJLVW RU LI WKH FRXUW ILQGV LW DSSURSULDWH E\ PRUH WKDQ

WULDO FRXUW IDLOHG WR H[SOLFLWO\ HYDOXDWH WKH HYLGHQFH XQGHU RQH VXFK H[DPLQHU (DFK H[DPLQHU VKDOO EH GHVLJQDWHG E\ WKH

EWKHHUURULVKDUPOHVVLIWKHSXUSRVHIRUDGPLWWLQJWKH
FRXUW H[FHSW WKDW LI WKH H[DPLQDWLRQ LV RUGHUHG XQGHU VHFWLRQ

HYLGHQFHLVDSSDUHQWIURPWKHUHFRUGDQGWKHDGPLVVLRQZDV
 RU  XSRQ WKH UHTXHVW RI WKH GHIHQGDQW DQ DGGLWLRQDO

H[DPLQHU PD\ EH VHOHFWHG E\ WKH GHIHQGDQW )RU WKH SXUSRVHV RI

SURSHUm,QGHWHUPLQLQJZKHWKHUDQHUURULVKDUPOHVVZH DQ H[DPLQDWLRQ SXUVXDQW WR DQ RUGHU XQGHU VHFWLRQ  

PXVWWDNHDFFRXQWRIZKDWWKHHUURUPHDQWWR>WKHMXU\@QRW RU  WKH FRXUW PD\ FRPPLW WKH SHUVRQ WR EH H[DPLQHG IRU D

VLQJOHGRXWDQGVWDQGLQJDORQHEXWLQUHODWLRQWRDOOHOVHWKDW UHDVRQDEOH SHULRG EXW QRW WR H[FHHG WKLUW\ GD\V DQG XQGHU

KDSSHQHGl8QLWHG6WDWHVY&RZDUW)GWK VHFWLRQ   RU  IRU D UHDVRQDEOH SHULRG EXW QRW WR

&LUFLWDWLRQVDQGTXRWDWLRQVRPLWWHG
H[FHHG IRUW\ ILYH GD\V WR WKH FXVWRG\ RI WKH $WWRUQH\ *HQHUDO

IRU SODFHPHQW LQ D VXLWDEOH IDFLOLW\ 8QOHVV LPSUDFWLFDEOH WKH

SV\FKLDWULF RU SV\FKRORJLFDO H[DPLQDWLRQ VKDOO EH FRQGXFWHG LQ

+HUH WKH HYLGHQFH LV RYHUZKHOPLQJ  7KH UHFRUG FOHDUO\ WKH VXLWDEOH IDFLOLW\ FORVHVW WR WKH FRXUW 7KH GLUHFWRU RI WKH

VKRZVWKDW'HIHQGDQWZDVLGHQWLILHGDVWKHLQGLYLGXDOZKR IDFLOLW\ PD\ DSSO\ IRU D UHDVRQDEOH H[WHQVLRQ EXW QRW WR H[FHHG

VROG WKH GUXJV WR WKH LQIRUPDQW E\ WDVN IRUFH DJHQWV ZKR ILIWHHQ GD\V XQGHU VHFWLRQ   RU  DQG QRW WR

REVHUYHG'HIHQGDQWZDONWRKLVUHG0XVWDQJDQGPHHWZLWK H[FHHG WKLUW\ GD\V XQGHU VHFWLRQ   RU  XSRQ D

WKH LQIRUPDQW  0RUHRYHU WKRVH DJHQWV ZKR NQHZ WKH
VKRZLQJ RI JRRG FDXVH WKDW WKH DGGLWLRQDO WLPH LV QHFHVVDU\ WR

REVHUYH DQG HYDOXDWH WKH GHIHQGDQW

 86& † E
 8QLWHG6WDWHVY0XUSK\ 1R 1R 8QLWHG6WDWHVY0XUSK\ 

EHVXIIHULQJIURPDPHQWDOGLVHDVHRUGHIHFWWKDWUHQGHUVKLP SXUSRVH RI WKH PHHWLQJ ZDV WR FRQGXFW D GUXJ WUDQVDFWLRQ
PHQWDOO\LQFRPSHWHQWWRWKHH[WHQWWKDWKHLVXQDEOHWRDVVLVW REVHUYHG'HIHQGDQWUHWXUQWRKLVKRWHOURRP7KHDJHQWVODWHU
SURSHUO\LQKLVGHIHQVHls$DW7KHDQDO\VLVRIRXU VHL]HGPDUNHGPRQH\DQGFUDFNFRFDLQHIURP'HIHQGDQWDV
VLVWHU FLUFXLWjV GHFLVLRQ LQ $QWZLQH LV ORJLFDO DQG VRXQG ZHOODVPDUNHGPRQH\IURPKLVKRWHOURRP,QOLJKWRIWKH
WKHUHIRUH ZH FRQFOXGH WKDW 'HIHQGDQW FDQQRW UHO\ RQ DQ HYLGHQFH DJDLQVW 'HIHQGDQW DQG WKH VPDOO SRWHQWLDO IRU
DOOHJHGGLVDJUHHPHQWZLWKKLVDWWRUQH\UHJDUGLQJWKHHIILFDF\ SUHMXGLFHLQWKLVFDVHWKHDGPLVVLRQRIWKH HYLGHQFHRIDQ
RIDPHQWDOFRPSHWHQF\H[DPZKLFKLVXOWLPDWHO\FRQGXFWHG DOOHJHGSULRUWUDQVDFWLRQHYHQLIHUURQHRXVLVKDUPOHVV
LQKLVEHVWLQWHUHVWWRODWHUFKDOOHQJHKLVLQGLFWPHQWXQGHUWKH
6SHHG\ 7ULDO $FW RQ WKH EDVLV RI GHOD\V FDXVHG E\ WKH ,,6SHHG\7ULDO$FW9LRODWLRQ
FRPSHWHQF\H[DPLQDWLRQ7KLVLVHVSHFLDOO\VRFRQVLGHULQJ
WKHUHFRUGLQGLFDWHVWKDW'HIHQGDQWUDLVHGQRREMHFWLRQVWRWKH $6WDQGDUGRI5HYLHZ
H[DPLQDWLRQ SULRU WR KLV PRWLRQ WR GLVPLVV KLV LQGLFWPHQW
$FFRUGLQJO\ WKH WLPH DVVRFLDWHG ZLWK 'HIHQGDQWjV PHQWDO 7KLV&RXUWUHFRJQL]HVWKDWWKHVWDQGDUGRIUHYLHZLVQRWDW
FRPSHWHQF\ H[DPLQDWLRQ VKRXOG EH H[FOXGHG IURP WKH DOOFOHDUIRUFODLPVEURXJKWXQGHUWKH6SHHG\7ULDO$FW&I
FRPSXWDWLRQRIWKHVHYHQW\GD\SHULRGXQGHUWKH6SHHG\7ULDO 8QLWHG6WDWHVY5RELQVRQ)GWK&LU
$FW DSSO\LQJ GH QRYR VWDQGDUG RI UHYLHZ 8QLWHG 6WDWHV Y
0HQW])GWK&LUVDPH%XWFI
/HQJWKRI0HQWDO&RPSHWHQF\([DPLQDWLRQ 8QLWHG6WDWHVY5RELQVRQ)GWK&LU
DSSO\LQJ DEXVH RI GLVFUHWLRQ VWDQGDUG RI UHYLHZ 8QLWHG
'HIHQGDQW DOVR FRQWHQGV WKDW WKH 6SHHG\ 7ULDO $FW RQO\ 6WDWHVY0RQJHU)GWK&LUVDPH
DOORZV D PD[LPXP RI ILIW\ILYH GD\V IRU SXUSRVHV RI %HFDXVHWKHLVVXHVSUHVHQWHGLQWKLVFDVHDUHPRUHVLPLODUWR
FRPSOHWLQJ PHQWDO FRPSHWHQF\ H[DPLQDWLRQV  'HIHQGDQW WKHLVVXHVSUHVHQWHGLQ5RELQVRQ)GDWZHZLOO
UHDFKHV WKLV FRQFOXVLRQ E\ UHO\LQJ XSRQ WZR VWDWXWRU\ DSSO\WKHGHQRYRVWDQGDUGRIUHYLHZ
SURYLVLRQV  )LUVW 'HIHQGDQW FLWHV † K+ IRU WKH
SURSRVLWLRQWKDWDWRWDORIWHQGD\VFDQFRXQWDVH[FOXGDEOH %$QDO\VLV
WLPHIRUWUDQVSRUWDWLRQmWRDQGIURPlWKHSODFHRIH[DPLQDWLRQ
DQGWKDWDQ\RWKHUGHOD\LVmSUHVXPHGWREHXQUHDVRQDEOHl 7KH6SHHG\7ULDO$FW86&††UHTXLUHV
6HFRQG 'HIHQGDQW FLWHV  86& † E IRU WKH WKDWDGHIHQGDQWEHEURXJKWWRWULDOZLWKLQVHYHQW\GD\VIURP
SURSRVLWLRQWKDW WKHUHLVDIRUW\ILYHGD\OLPLWIRUDPHQWDO WKHGDWHRIDUUHVWWKHILOLQJRIWKHLQGLFWPHQWRULQIRUPDWLRQ
RUWKHILUVWDSSHDUDQFHEHIRUHWKHFRXUWZKLFKHYHULVODWHU
6HH86&†F)DLOXUHWREULQJDGHIHQGDQWWRWULDO
ZLWKLQWKHVHYHQW\GD\SHULRGUHVXOWVLQWKHGLVPLVVDORIWKH
LQGLFWPHQW ZLWK RU ZLWKRXW SUHMXGLFH  6HH  86&
†D+RZHYHUFHUWDLQGHOD\VWKDWDULVHEHIRUHWULDO

 86& † K+ SURYLGHV WKDW
DUHH[FOXGHGIURPWKHVHYHQW\GD\SHULRG6HH86&
GHOD\ UHVXOWLQJ IURP WUDQVSRUWDWLRQ RI DQ\ GHIHQGDQW IURP

DQRWKHU GLVWULFW RU WR DQG IURP SODFHV RI H[DPLQDWLRQ RU

KRVSLWDOL]DWLRQ H[FHSW WKDW DQ\ WLPH FRQVXPHG LQ H[FHVV RI WHQ

GD\V IURP WKH GDWH DQ RUGHU RI UHPRYDO RU DQ RUGHU GLUHFWLQJ VXFK 'HIHQGDQW KDV QRW WDNHQ D SRVLWLRQ DV WR WKH DSSURSULDWH VWDQGDUG RI

WUDQVSRUWDWLRQ DQG WKH GHIHQGDQW
V DUULYDO DW WKH GHVWLQDWLRQ VKDOO UHYLHZ 7KH JRYHUQPHQW KRZHYHU DFNQRZOHGJHV WKDW WKH LVVXHV

EH SUHVXPHG WR EH XQUHDVRQDEOH    SUHVHQWHG LQ WKLV FDVH VKRXOG EH UHYLHZHG /0 34;4 $00 $SSHOOHHjV %U DW


 86& †  
 8QLWHG6WDWHVY0XUSK\ 1R 1R 8QLWHG6WDWHVY0XUSK\ 

†K:KHQILOLQJDPRWLRQWRGLVPLVVWKHLQGLFWPHQW 'HIHQGDQWWKHUHIRUHDUJXHVWKDWKHZDVLQGLFWHGZHOORXWVLGH
EDVHGRQDYLRODWLRQRIWKH6SHHG\7ULDO$FWm>W@KHGHIHQGDQW WKHWKLUW\GD\SHULRGPDQGDWHGE\†EZKLFKUHTXLUHV
VKDOOKDYHWKHEXUGHQRISURRIl86&†D WKDWDGHIHQGDQWEHIRUPDOO\FKDUJHGZLWKLQWKLUW\GD\VRIKLV
DUUHVW'HIHQGDQWjVFRQWHQWLRQKDVDEVROXWHO\QREDVLVLQODZ
+HUH'HIHQGDQWFRQWHQGVWKDWWKHGLVWULFWFRXUWLPSURSHUO\ DQGLVZLWKRXWPHULW,WLVZHOOHVWDEOLVKHGLQWKLV&LUFXLWWKDW
FRQFOXGHGWKDWWKHUHZDVQR6SHHG\7ULDO$FWYLRODWLRQDQG WKHWKLUW\GD\WLPHOLPLWLVQRWWULJJHUHGXQWLOWKHUHLVDIHGHUDO
VKRXOGKDYHGLVPLVVHGKLVLQGLFWPHQW'HIHQGDQWFODLPVWKH mDUUHVWl6HH8QLWHG6WDWHVY%ODFNPRQ)G
IROORZLQJ6SHHG\7ULDO$FWYLRODWLRQVWKHJRYHUQPHQW WK&LUm$GHIHQGDQWLVQRWµDUUHVWHGjIRUSXUSRVHVRI
mNQRZLQJO\DQGLPSURSHUO\ZDLWHGlXQWLO$SULOWR WKH 6SHHG\ 7ULDO $FW XQWLO IRUPDO IHGHUDO FKDUJHV DUH
LQGLFWKLP'HIHQGDQWSHUVRQDOO\REMHFWHGWRKLVGHIHQVH SHQGLQJl 8QLWHG 6WDWHV Y &RSOH\  )G  WK
FRXQVHOILOLQJDSUHWULDOPRWLRQRQKLVEHKDOIUHTXHVWLQJD &LU7KHUHIRUHZHUHMHFW'HIHQGDQWjVFRQWHQWLRQRXWRI
PHQWDOFRPSHWHQF\H[DPWKHUHIRUHWLPHDVVRFLDWHGZLWKWKH KDQG
H[DP VKRXOG QRW EH H[FOXGHG IURP WKH FDOFXODWLRQ  WKH
SHULRG RI WLPH H[FOXGHG IRU WKH PHQWDO FRPSHWHQF\ 'HIHQGDQWjV2EMHFWLRQWR&RPSHWHQF\([DPLQDWLRQ
H[DPLQDWLRQ YLRODWHG WKH QXPEHU RI GD\V DYDLODEOH ZLWKLQ
ZKLFK WKH H[DPLQDWLRQ PXVW EH FRPSOHWHG DQG YLRODWHG 'HIHQGDQWQH[W FRQWHQGVWKDWEHFDXVHKHREMHFWHGWRKLV
VWDWXWRU\ UHVWULFWLRQV IRU WKH QXPEHU RI GD\V DYDLODEOH WR ODZ\HUjV PRWLRQ WKDW KH XQGHUJR D PHQWDO FRPSHWHQF\
WUDQVSRUW GHIHQGDQW WR DQG IURP WKH IDFLOLW\ DQG H[DPLQDWLRQDQ\WLPHDVVRFLDWHGZLWKWKHPHQWDOFRPSHWHQF\
'HIHQGDQWjVLQTXLU\UHJDUGLQJQHZFRXQVHOVKRXOGQRWEH H[DPLQDWLRQVKRXOGQRWEHH[FOXGHGIURPWKHFDOFXODWLRQRI
FRXQWHGDVDSURVHPRWLRQWKHWLPHIRUZKLFKLVH[FOXGHG WKHVHYHQW\GD\SHULRGIRUSXUSRVHVRIGHWHUPLQLQJZKHWKHU
IURP WKH VHYHQW\GD\ FDOFXODWLRQ :H  DGGUHVV HDFK RI D6SHHG\7ULDO$FWYLRODWLRQRFFXUUHG,Q8QLWHG6WDWHVY
'HIHQGDQWjVFRQWHQWLRQVLQWXUQ $QWZLQH)GQWK&LUWKHFRXUW
QRWHG WKDW D GHIHQGDQWjV GLVDJUHHPHQW ZLWK KLV GHIHQVH
'DWHRI,QGLFWPHQW FRXQVHOjV GHFLVLRQ WR ILOH D PRWLRQ IRU D FRPSHWHQF\
H[DPLQDWLRQGLGQRWDIIHFWFRPSXWDWLRQVFDOFXODWHGXQGHUWKH
'HIHQGDQWILUVWFRQWHQGVWKDWWKHJRYHUQPHQWLPSHUPLVVLEO\ 6SHHG\ 7ULDO $FW  7KH (LJKWK &LUFXLW DOVR QRWHG WKDW WKH
ZDLWHGWRLQGLFWKLP'HIHQGDQWDUJXHVWKDWEHFDXVHKHZDV GLVWULFW FRXUWjV GHFLVLRQ WR RUGHU D PHQWDO FRPSHWHQF\
LQGLFWHG LQ VWDWH FRXUW RQ 6HSWHPEHU   WKH 6SHHG\ H[DPLQDWLRQZDVEDVHGRQWKHSHUVRQDOREVHUYDWLRQVRIWKH
7ULDOFORFNVKRXOGKDYHEHJXQWRWLFNRQWKDWGDWHUDWKHUWKDQ GLVWULFWFRXUW,G0RUHRYHUDGHIHQGDQWPD\QRWFRPSODLQ
$SULO   ZKHQ KH ZDV LQGLFWHG RQ IHGHUDO FKDUJHV RIGHOD\VRFFDVLRQHGE\WKHWULDOFRXUWjVDWWHPSWWRSURWHFWKLV
LQWHUHVWV,GDW

'HIHQGDQW DOVR DOOHJHV WKDW KLV ULJKWV ZHUH YLRODWHG XQGHU WKH )LIWK
+HUHWKHGLVWULFWFRXUWKHOGDKHDULQJRQsXO\DW
DQG 6L[WK $PHQGPHQWV +RZHYHU 'HIHQGDQW IDLOV WR HYHQ DUJXH QRW WR
ZKLFKHYLGHQFHZDVSUHVHQWHGLQVXSSRUWRIWKHPRWLRQIRUD
PHQWLRQ FLWH DQ\ FDVH ODZ IRU KLV DOOHJHG )LIWK DQG 6L[WK $PHQGPHQW ULJKW PHQWDO FRPSHWHQF\ H[DPLQDWLRQ E\ GHIHQVH FRXQVHO DQG D
YLRODWLRQV 6HH %XVK Y 'LFWDSKRQH &RUS  )G   WK 'HSXW\8QLWHG6WDWHV0DUVKDO$GGLWLRQDOO\WKHPDJLVWUDWH
&LU QRWLQJ WKDW FODLPV QRW SXUVXHG RQ DSSHDO ZLOO W\SLFDOO\ EH MXGJH FRQGXFWHG D KHDULQJ ZLWK 'HIHQGDQW RXWVLGH WKH
FRQVLGHUHG DEDQGRQHG 7KHUHIRUH 'HIHQGDQW KDV IRUIHLWHG UHYLHZ RI KLV
FODLPV E\ WKLV &RXUW 6HH 5HHG  )G DW  KROGLQJ WKDW LVVXHV
SUHVHQFHRIFRXQVHOIRUWKHJRYHUQPHQW2QsXO\
UDLVHG E\ DQ DSSHOODQW LQ D SHUIXQFWRU\ PDQQHU XQDFFRPSDQLHG E\ VRPH
WKHPDJLVWUDWHMXGJHHQWHUHGDQRUGHUILQGLQJWKDWmWKHUHLV
HIIRUW DW GHYHORSHG DUJXPHQWDWLRQ DUH FRQVLGHUHG DEDQGRQHG 8QLWHG UHDVRQDEOHFDXVHWREHOLHYHWKDWWKHGHIHQGDQWPD\SUHVHQWO\
6WDWHV Y (OGHU  )G   WK &LU