McCurdy v. Montgomery Cnty

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

s$0(6 ( 0&&85'< ;
3ODLQWLII$SSHOODQW 

 1R
Y 
!

0217*20(5< &2817< 
2+,2HWDO 
'HIHQGDQWV$SSHOOHHV 

1
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW'D\WRQ
1Rn0LFKDHO50HU]0DJLVWUDWHsXGJH
$UJXHG0D\
'HFLGHGDQG)LOHG)HEUXDU\
%HIRUH(1*(/s21(6DQG&2/(&LUFXLWsXGJHV
BBBBBBBBBBBBBBBBB
&2816(/
$5*8('=DFK=XQVKLQH&ROXPEXV2KLRIRU$SSHOODQW
0LFKDHO 5XVVHOO 2)),&( 2) 7+( 3526(&87,1*
$77251(< )25 7+( &2817< 2) 0217*20(5<
'D\WRQ2KLRIRU$SSHOOHHV21%5,()=DFK=XQVKLQH
&ROXPEXV2KLRIRU$SSHOODQW0LFKDHO5XVVHOO2)),&(
2) 7+( 3526(&87,1* $77251(< )25 7+(


 0F&XUG\Y0RQWJRPHU\ 1R
&RXQW\2KLRHWDO

&2817< 2) 0217*20(5< 'D\WRQ 2KLR IRU
$SSHOOHHV
s21(6 s GHOLYHUHG WKH RSLQLRQ RI WKH FRXUW LQ ZKLFK
&2/( s MRLQHG  (1*(/ s SS  GHOLYHUHG D
VHSDUDWHGLVVHQWLQJRSLQLRQ
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
1$7+$1,(/ 5 s21(6 &LUFXLW sXGJH  3ODLQWLII
$SSHOODQWsDPHV0F&XUG\EURXJKWWKLV†VXLWDJDLQVW
'HIHQGDQWV$SSHOOHHV2IILFHU'DYLG&ROHDQG0RQWJRPHU\
&RXQW\FODLPLQJWKDWWKH\YLRODWHGKLVULJKWWREHIUHHIURP
XQUHDVRQDEOH VHL]XUHV XQGHU WKH )RXUWK $PHQGPHQW DQG
UHWDOLDWHG DJDLQVW KLP IRU WKH DVVHUWLRQ RI KLV )LUVW
$PHQGPHQWULJKWV7KHGLVWULFWFRXUWGLVPLVVHG0F&XUG\jV
)LUVW $PHQGPHQW UHWDOLDWLRQ FODLP DIWHU JUDQWLQJ 2IILFHU
&ROHjVPRWLRQIRUTXDOLILHGLPPXQLW\DQGDMXU\UHWXUQHGD
YHUGLFW IRU 'HIHQGDQWV RQ 0F&XUG\jV )RXUWK $PHQGPHQW
FODLP0F&XUG\WKHQPRYHGIRUMXGJPHQWDVDPDWWHURIODZ
RUDQHZWULDOLQWKHDOWHUQDWLYHDQGWKHGLVWULFWFRXUWGHQLHG
WKHVHPRWLRQVLQWKHLUHQWLUHW\)RUWKHIROORZLQJUHDVRQVZH
5(9(56( ERWK WKH GLVWULFW FRXUWjV GHQLDO RI 0F&XUG\jV
PRWLRQ IRU MXGJPHQW DV D PDWWHU RI ODZ RQ KLV )RXUWK
$PHQGPHQW FODLP DQG LWV JUDQW RI TXDOLILHG LPPXQLW\ RQ
0F&XUG\jV)LUVW$PHQGPHQWUHWDOLDWLRQFODLP$FFRUGLQJO\
ZH5(0$1'IRUIXUWKHUSURFHHGLQJV
,
2QsXO\0F&XUG\KRVWHGDJUDGXDWLRQSDUW\IRUKLV
QHSKHZ'ZD\QH6PLWKZKRKDGMXVWJUDGXDWHGIURP:ULJKW
6WDWH8QLYHUVLW\7KHSDUW\ZDVKHOGDWWKHFOXEKRXVHLQWKH
DSDUWPHQW FRPSOH[ ZKHUH 0F&XUG\ WKHQ UHVLGHG LQ
&HQWHUYLOOH 2KLR  7KH SDUW\ HQGHG DURXQG PLGQLJKW DQG
ZKLOHPRVWRIWKHSDWURQVZHQWKRPHDWWKDWWLPH0F&XUG\
DQGVHYHUDORWKHUVLQFOXGLQJKLVEURWKHULQODZ5RJHU6PLWK
 0F&XUG\Y0RQWJRPHU\ 1R 1R 0F&XUG\Y0RQWJRPHU\ 
&RXQW\2KLRHWDO &RXQW\2KLRHWDO

FUHDWLQJ WKH TXDOLILHG LPPXQLW\ GRFWULQH LQWHQGHG WR VR DQG DFTXDLQWDQFH +HDWK *RROVE\ ZHQW WR 0F&XUG\jV
KREEOHDSROLFHRIILFHULQWKHFRXUVHRIKLVGXWLHV DSDUWPHQW WR SOD\ FDUGV  0F&XUG\ KDG FRQVXPHG DOFRKRO
ERWK DW WKH FOXEKRXVH SDUW\ DQG WKH FDUG JDPH LQ KLV
DSDUWPHQW$URXQGILYH LQWKHPRUQLQJ0F&XUG\DQGKLV
VRQsDPHV0F&XUG\sUDFFRPSDQLHG6PLWKDQG*RROVE\WR
WKHLUFDUVWRVHHWKHPRII7KHIRXUPHQZKRDUHDOO$IULFDQ
$PHULFDQFRQYHUVHGIRUDERXWILIWHHQPLQXWHVZKHQDSROLFH
FUXLVHUGURYHE\
2IILFHU &ROH ZKR ZDV RQ mURXWLQH SDWUROl DQG QRW
UHVSRQGLQJWRDQ\VSHFLILFFRPSODLQWVFRQFHUQLQJ0F&XUG\jV
DSDUWPHQWRUWKHVXUURXQGLQJDUHDGURYHSDVW0F&XUG\DQG
FRPSDQ\ YHU\ VORZO\  $IWHU WKLV LQLWLDO GULYHE\ 2IILFHU
&ROHZLWKRXWDQ\SURYRFDWLRQIURP0F&XUG\RUKLVJURXS
FLUFOHG EDFN WRZDUGV WKHP  $V 2IILFHU &ROH GURYH E\ WKH
JURXSIRUDVHFRQGWLPHKHLQKLVRZQZRUGVmVWRSSHGDQG
REVHUYHG WKHP IRU MXVW D IHZ VHFRQGV DQG >WR@ JDLQ WKHLU
DWWHQWLRQVDLGZKDWjVXSJHQWOHPHQ"ls$DW$WWKDW
SRLQW2IILFHU&ROHUHFDOOHG0F&XUG\DVNLQJHLWKHUmZKDWjV
WKHSUREOHP"lRUmFDQ,KHOS\RX"l,G2IILFHU&ROHZKR
KDGSDUNHGKLVFDUDVKRUWGLVWDQFHDZD\IURPWKHPHQFRXOG
QRWKHDU0F&XUG\DQGDVNHGKLPWRUHSHDWZKDWKHKDGVDLG
$FFRUGLQJWR2IILFHU&ROH0F&XUG\WKHQGHPDQGHGmZKDW
WKHIX
NGR\RXZDQW"l,G
2IILFH &ROH WKHQ H[LWHG KLV YHKLFOH DQG DSSURDFKHG
0F&XUG\  $FFRUGLQJ WR 2IILFHU &ROH KH WKHQ TXHVWLRQHG
0F&XUG\DVWRZK\KHXVHGSURIDQHODQJXDJHLQDGGUHVVLQJ
KLP$IWHU0F&XUG\UHLWHUDWHGKLVTXHULHVDVWRWKHUHDVRQIRU
2IILFHU&ROHjVDSSURDFKWKHRIILFHUDVVHUWHGWKDWLWZDVKLV
MREWRmVHHZKDWjVJRLQJRQlLImVRPHERG\jVVWDQGLQJRXWKHUH
DWLQWKHPRUQLQJls$DW$FFRUGLQJWR2IILFHU
&ROH0F&XUG\WKHQH[FODLPHGmZKDWWKHIX
NLV\RXUMRE"l
DQG2IILFHU&ROHDVNHGKLPDVZHOODV6PLWK*RROVE\DQG
0F&XUG\sUIRULGHQWLILFDWLRQ0F&XUG\UHVSRQGHGWKDWKH
ZDV VWDQGLQJ LQ IURQW RI KLV KRPH WKDW KH ZDV ZLWKRXW
LGHQWLILFDWLRQDQGWKDWQHLWKHUKHQRUKLVIULHQGVQHHGHGWR
GLVSOD\DQ\
 0F&XUG\Y0RQWJRPHU\ 1R 1R 0F&XUG\Y0RQWJRPHU\ 
&RXQW\2KLRHWDO &RXQW\2KLRHWDO

2IILFHU&ROHQH[WDVNHG0F&XUG\LIKHKDGEHHQGULQNLQJ LOOXVWUDWHVWKHXQFHUWDLQSRVWXUHRIWKHODZDWWKHWLPHRIWKH
WKDWQLJKW8SRQUHVSRQGLQJLQWKHDIILUPDWLYHWKHILIW\WKUHH HYHQWVLQYROYHGKHUH
\HDUROGZDVRUGHUHGWRJREDFNLQVLGHKLVKRXVHEHFDXVHKH
ODFNHG LGHQWLILFDWLRQ DQG ZDV LQ 2IILFHU &ROHjV YLHZ %HFDXVHWKHIHGHUDOFRXUWVDUHVWLOOGLVSXWLQJWKHLVVXHRI
mREYLRXVO\LQWR[LFDWHGl,GDW0F&XUG\UHMHFWHG UHWDOLDWLRQLQWKHFRQWH[WRIDQDUUHVWLWFDQKDUGO\EHVDLGWKDW
2IILFHU&ROHjVDGPRQLVKPHQWFODLPLQJWKDWKHGLGQRWKDYH LWVKRXOGKDYHEHHQDSSDUHQWWR2IILFHU&ROHLQWKDWKH
WR JR LQVLGH DQG WKDW IXUWKHUPRUH KH GLG QRW KDYH WR GR FRXOGQRWDUUHVWDQLQGLYLGXDOHYHQWKRXJKKHKDGSUREDEOH
mVK
WlWKDW2IILFHU&ROHRUGHUHG,GDW$IWHU0F&XUG\ FDXVHWRHIIHFWWKHDUUHVWLIWKHLQGLYLGXDO
VSURWHFWHGVSHHFK
UHLWHUDWHG KLV REMHFWLRQV WR 2IILFHUjV &ROH SXUSRUWHG DWWKHWLPHKDGDQ\LPSDFWRQWKHRIILFHU
VGHFLVLRQWRDUUHVW
KDUDVVPHQW2IILFHU&ROHZDUQHGWKDWLIKHGLGQRWUHWXUQWR
KLVKRPHLPPHGLDWHO\KHZRXOGEHDUUHVWHGDQGWDNHQWRMDLO 0W+HDOWK\FRXQVHOVDIILUPDQFHKHUHHYHQWKRXJK2IILFHU
0F&XUG\WKHQTXHVWLRQHGWKHJURXQGVRQZKLFKKHFRXOGEH &ROHPD\LQIDFWKDYHEHHQLQIOXHQFHGE\WKHIRXODQGDEXVLYH
DUUHVWHG7KHRIILFHUUHVSRQGHGE\VLPSO\UHSHDWLQJWKDWLIKH ODQJXDJHHPSOR\HGE\0U0F&XUG\3DUWLFXODUO\UHOHYDQWLV
GLG QRW JR LQVLGH KH ZRXOG EH DUUHVWHG  2QFH DJDLQ WKH 6XSUHPH &RXUWjV REVHUYDWLRQ WKDW VRPH LQFLGHQWV
0F&XUG\UHIXVHGWRUHWXUQWRKLVKRPHZKHUHXSRQ2IILFHU LQHYLWDEO\ UHPDLQ RQ WKH PLQGV RI WKRVH UHVSRQVLEOH IRU
&ROHWROGKLPWRVWHSWRWKHVLGHDQGSODFHKLVKDQGVRQWKH PDNLQJGHFLVLRQVm$UXOHRIFDXVDWLRQZKLFKIRFXVHVVROHO\
ZDOO  0F&XUG\ DJDLQ TXHVWLRQHG WKH JURXQGV IRU DUUHVW RQ ZKHWKHU SURWHFWHG FRQGXFW SOD\HG D SDUW VXEVWDQWLDO RU
:LWKRXWVSHFLI\LQJWKHOHJDOEDVLVIRUWKHDUUHVW2IILFHU&ROH RWKHUZLVHLQDGHFLVLRQQRWWRUHKLUHFRXOGSODFHDQHPSOR\HH
SURFHHGHG WR WDNH KLP LQWR FXVWRG\  2IILFHU &ROH LQ D EHWWHU SRVLWLRQ DV D UHVXOW RI WKH H[HUFLVH RI D
VXEVHTXHQWO\ EURXJKW 0F&XUG\ WR WKH SUHFLQFW VWDWLRQ DQG FRQVWLWXWLRQDOO\ SURWHFWHG FRQGXFW WKDQ KH ZRXOG KDYH
DUUHVWHGKLPIRU'LVRUGHUO\&RQGXFW3XEOLF,QWR[LFDWLRQDQG RFFXSLHGKDGKHGRQHQRWKLQJl0W+HDOWK\86DW
2EVWUXFWLQJ 2IILFLDO %XVLQHVV XQGHU 2KLR 5HY &RGH $SSO\LQJ WKDW SULQFLSOH WR WKH FDVH KHUH LW  LV HYHQ PRUH
††% UHVSHFWLYHO\ GLVWXUELQJWKDWDGUXQNXVLQJRIIHQVLYHDQGIRXOODQJXDJHLQ
WKHFRXUVHRID7HUU\VWRSFRXOGIRUWKDWUHDVRQDORQHXQGHU
0F&XUG\VXEVHTXHQWO\VXHG2IILFHU&ROHDQG0RQWJRPHU\ WKHSUHWHQVHRI)LUVW$PHQGPHQWSURWHFWHGVSHHFKLQWLPLGDWH
&RXQW\DVVHUWLQJLQWHUDOLDWKDWKHZDVDUUHVWHGLQYLRODWLRQ DQGJRDGDSROLFHRIILFHULQWREHOLHYLQJWKDWKHGDUHQRWGR
RI ERWK WKH )LUVW DQG )RXUWK $PHQGPHQWV  'XULQJ MXU\ ZKDWKHFRQFHLYHVWREHKLVGXW\OHVWVRPHKRZKHYLRODWHWKDW
SURFHHGLQJV 0F&XUG\ FRQWHQGHG WKDW WKH &RXQW\ LOOHJDOO\ GUXQNjV FRQVWLWXWLRQDO ULJKWV  $V sXVWLFH 5HKQTXLVW VWDWHG
H[HUFLVHG RQH RI LWV SHUHPSWRU\ FKDOOHQJHV RQ WKH EDVLV RI m7KHFRQVWLWXWLRQDOSULQFLSOHDWVWDNHLVVXIILFLHQWO\YLQGLFDWHG
UDFH2ULJLQDOO\WKHUHZHUHWKUHHEODFNPHPEHUVDPRQJWKH LIVXFKDQHPSOR\HHLVSODFHGLQQRZRUVHDSRVLWLRQWKDQLIKH
WZHQW\VL[ SHUVRQ YHQLUH  6HH s$ DW   2QH EODFN KDGQRWHQJDJHGLQWKDWFRQGXFWl0W+HDOWK\86DW
YHQLUHSHUVRQ ZDV H[FXVHG IRU FDXVH EHFDXVH KH ZDV   &HUWDLQO\ DQ LQGLYLGXDO VKRXOG QRW EH DUUHVWHG
FRQQHFWHG WR WKH &RXQW\ 6KHULIIjV RIILFH DQG WKUHH ZKLWH EHFDXVHRIFRQVWLWXWLRQDOO\SURWHFWHGRIIHQVLYHODQJXDJH%XW
PHPEHUVZHUHDOVRH[FXVHGIRUFDXVH:LWKWKHVHGLVPLVVDOV WKHVDPHLQGLYLGXDORXJKWQRWWREHDEOHE\XVLQJRIIHQVLYH
WZHQW\WZR SHUVRQV LQFOXGLQJ WZR $IULFDQ$PHULFDQV ODQJXDJH WR SUHYHQW D SROLFH RIILFHU IURP DVVHVVLQJ KLV
UHPDLQHGLQWKHYHQLUHIURPZKLFKDMXU\RIHLJKWQHHGHGWR FRQGXFW DQG UHDFKLQJ D GHFLVLRQ WR DUUHVW KLP VLPSO\
EHVHOHFWHG,QLWLDOO\DQHLJKWSHUVRQMXU\ZDVVHDWHGZLWKRXW EHFDXVHWKHRIIHQVLYHODQJXDJHPDNHVWKHSROLFHRIILFHUPRUH
DQ\EODFNPHPEHUV$IWHU0F&XUG\H[HUFLVHGWKHVHFRQGRI FHUWDLQRIWKHFRUUHFWQHVVRIKLVGHFLVLRQ6HH0W+HDOWK\
KLVWZRSHUHPSWRU\FKDOOHQJHVDQGDIWHUWKH&RXQW\SDVVHG 86DW,GRQRWEHOLHYHWKDWWKH6XSUHPH&RXUWLQ
 0F&XUG\Y0RQWJRPHU\ 1R 1R 0F&XUG\Y0RQWJRPHU\ 
&RXQW\2KLRHWDO &RXQW\2KLRHWDO

EH DSSDUHQW LQ WKH OLJKW RI SUHH[LVWLQJ ODZ  ,G FLWLQJ RQH[HUFLVLQJLWVILUVW$IULFDQ$PHULFDQ6\OYLD:LOOLDPVZDV
0LWFKHOO Y )RUV\WK  86    ,W LV QRW D VHDWHG RQ WKH MXU\  $W WKDW SRLQW WKH &RXQW\ XVHG LWV ODVW
PDWWHURIWU\LQJWRILJXUHRXWDWWKHVFHQHMXVWZKDW)ZRUGV SHUHPSWRU\WRH[FXVH:LOOLDPVDQG0F&XUG\REMHFWHGWKDW
RU RWKHU HSLWKHWV DPRXQW WR RU GR QRW DPRXQW WR mILJKWLQJ WKH VWULNH ZDV UDFLDOO\ PRWLYDWHG  :LWKRXW TXHVWLRQLQJ
ZRUGVlE\OHJDOSUHFHGHQWRUGHWHUPLQLQJLQDMXGLFLDOSRVW :LOOLDPVRUHQJDJLQJLQDFROORTX\ZLWKHLWKHU0F&XUG\jVRU
PRUWHPZKHWKHUWKH\VKRXOG WKH&RXQW\jVFRXQVHOWKHGLVWULFWFRXUWUHMHFWHG0F&XUG\jV
REMHFWLRQ FUHGLWLQJ WKH &RXQW\jV DVVHUWLRQV WKDW :LOOLDPVj
7KHUHOHYDQWSUHH[LVWLQJODZRQWKHLVVXHRIUHWDOLDWLRQLV GHPHDQRUVKRZHGWKDWVKHZDVGLVLQWHUHVWHGLQVHUYLQJRQWKH
IRXQGLQ0W+HDOWK\&LW\%RDUGRI(GXFY'R\OH86 MXU\
0W+HDOWK\LQYROYHGDVFKRROERDUG
VGHFLVLRQ
QRW WR UHKLUH D WHDFKHU LQ UHWDOLDWLRQ IRU KLV H[HUFLVH RI $IWHU WKH WULDO FRPPHQFHG WKH GLVWULFW FRXUW JUDQWHG
FRQVWLWXWLRQDOO\SURWHFWHGVSHHFK%HFDXVH0W+HDOWK\GLG TXDOLILHG LPPXQLW\ WR 2IILFHU &ROH RQ 0F&XUG\jV )LUVW
QRWLQYROYHDSROLFHRIILFHUjVGHFLVLRQWRDUUHVWDQREOLJDWLRQ $PHQGPHQWUHWDOLDWLRQFODLP  7KHFRXUWFRQFOXGHGWKDWLW
DWWKHFRUHRIWKHRIILFHUjVUHVSRQVLELOLWLHVDQGQHFHVVDULO\ ZDV QRW FOHDUO\ HVWDEOLVKHG WKDW WKH )LUVW $PHQGPHQW
PDGHRQWKHVSRWZLWKRXWWKHOX[XU\RILQYHVWLJDWLRQLWZDV SURKLELWHG DQ RIILFHU IURP HIIHFWXDWLQJ DQ RWKHUZLVH YDOLG
QRW DSSDUHQW WKDW 0W +HDOWK\ ZRXOG JRYHUQ WKH SROLFH DUUHVW LI WKDW RIILFHU ZDV SDUWLDOO\ PRWLYDWHG E\ D GHVLUH WR
RIILFHUjVFRQGXFW UHWDOLDWHDJDLQVWWKHDUUHVWHHjVDVVHUWLRQRI)LUVW$PHQGPHQW
ULJKWV6HHs$DW7KHWULDOSURFHHGHGRQ0F&XUG\jV
:KHWKHUDSODLQWLIIPD\UHFRYHUIRUDGHSULYDWLRQRI)LUVW UHPDLQLQJFODLPVDQGWKHMXU\UHWXUQHGDYHUGLFWLQIDYRURI
$PHQGPHQWULJKWVFDXVHGE\DQDOOHJHGO\UHWDOLDWRU\DUUHVW 'HIHQGDQWV  0F&XUG\ WKHQ PRYHG IRU MXGJPHQW
ZKLFK WKH RIILFHU KDG SUREDEOH FDXVH WR HIIHFW ZDV QRW D QRWZLWKVWDQGLQJWKHYHUGLFWRULQWKHDOWHUQDWLYHDQHZWULDO
PDWWHURIFOHDUO\HVWDEOLVKHGODZLQ,QGHHGLWLVVWLOODQ 0F&XUG\ FODLPHG WKDW 2IILFHU &ROH GLG QRW KDYH SUREDEOH
LVVXH WKDW LV VXEMHFW WR GHEDWH LQ WKH IHGHUDO FRXUWV  7KH FDXVHWRDUUHVWKLPDQGHVVHQWLDOO\UHQHZHGDFKDOOHQJHWRWKH
PDMRULW\FLWHVQR6XSUHPH&RXUWRUSXEOLVKHG6L[WK&LUFXLW GLVWULFWFRXUWjVTXDOLILHGLPPXQLW\MXGJPHQWE\UHDVVHUWLQJ
FDVHVGLVFXVVLQJUHWDOLDWLRQFODLPVLQWKHFRQWH[WRIDQDUUHVW KLV )LUVW $PHQGPHQW UHWDOLDWLRQ FODLP  0F&XUG\ DOVR UH
DQG,DPDZDUHRIQRQH7KHGHIHQGDQWVUDLVHGWKHDUJXPHQW DVVHUWHG KLV FODLP WKDW WKH &RXQW\ H[HUFLVHG RQH RI LWV
WKDW QR UHWDOLDWLRQ FODLP PD\ EH EURXJKW LI WKH DUUHVW LV SHUHPSWRULHVLQYLRODWLRQRIWKH(TXDO3URWHFWLRQ&ODXVH7KH
VXSSRUWHGE\SUREDEOHFDXVHLQ(VWDWHRI'LHWULFKY%XUURZV GLVWULFWFRXUWGHQLHG0F&XUG\jVPRWLRQLQLWVHQWLUHW\DQG
)GWK&LUEXWWKHYDOLGLW\RIWKLVSRVLWLRQ 0F&XUG\ILOHGWKLVWLPHO\DSSHDO
ZDVQRWUXOHGRQEHFDXVHWKHUHZDVDSUHYLRXVILQGLQJWKDW
WKHUHZDVQRSUREDEOHFDXVH,GDW:HGLGFRQVLGHU ,,
WKLVLVVXHLQDQXQSXEOLVKHGFDVH6DQGXOY/DULRQ)G
7DEOH:/WK&LU,Q6DQGXOZH $
VXJJHVWHGWKDWLIWKHRIILFHUVKDGSUREDEOHFDXVHWRVXSSRUWWKH
DUUHVWWKHLUDFWXDOPRWLYHVZHUHLUUHOHYDQW,GDW
TXRWLQJ 2QDSSHDO0F&XUG\ILUVWDVVHUWVWKDWWKHGLVWULFWFRXUWHUUHG
&ULVV Y &LW\ RI .HQW  )G  WK &LU  LQ GHQ\LQJ KLV PRWLRQ IRU MXGJPHQW QRWZLWKVWDQGLQJ WKH
5HFRJQL]LQJWKDW6DQGXOLVQRPRUHDXWKRULWDWLYHWKDQPDQ\ YHUGLFWRUQHZWULDOLQWKHDOWHUQDWLYH7KLVFRXUWUHYLHZVWKH
RI WKH FDVHV FLWHG E\ WKH PDMRULW\ LW QRQHWKHOHVV ZHOO GHQLDORIDPRWLRQIRUMXGJPHQWDVDPDWWHURIODZGHQRYR
VHH&RRNY$PHULFDQ6WHDPVKLS&R)GWK
 0F&XUG\Y0RQWJRPHU\ 1R 1R 0F&XUG\Y0RQWJRPHU\ 
&RXQW\2KLRHWDO &RXQW\2KLRHWDO

&LUDQGWKHGHQLDO RI DPRWLRQIRUQHZWULDOIRUDQ GHWDLOVRIUDSHLQUHWDOLDWLRQIRUWKHSODLQWLIIV
H[HUFLVHRIWKHLU
DEXVHRIGLVFUHWLRQ6HH%DUQHVY2ZHQV&RUQLQJ)LEHUJODV ILUVWDPHQGPHQWULJKWWRFULWLFL]HSXEOLFRIILFLDOV,GDW
&RUS)GWK&LU/LNHWKHGLVWULFW :HUHYHUVHGWKHGLVWULFWFRXUW
VJUDQWRITXDOLILHGLPPXQLW\WR
FRXUWZHPXVWDIILUPWKHMXU\jVYHUGLFWmXQOHVVWKLV&RXUWµLV WKH VKHULII  :H UHDVRQHG WKDW WKH ULJKW WR FULWLFL]H SXEOLF
OHIW ZLWK WKH GHILQLWH DQG ILUP FRQYLFWLRQ WKDW D PLVWDNH RIILFLDOVZDVFOHDUO\HVWDEOLVKHGDVZDVWKHSULQFLSOHWKDWD
UHVXOWLQJLQSODLQLQMXVWLFHKDVEHHQFRPPLWWHGjRUWKH SXEOLFRIILFLDO
VUHWDOLDWLRQDJDLQVWDQLQGLYLGXDOIRUH[HUFLVLQJ
YHUGLFW µLV FRQWUDU\ WR DOO UHDVRQjl  6FKRRQRYHU Y )LUVW$PHQGPHQWULJKWVLVDYLRODWLRQRI†,GDW
&RQVROLGDWHG)UHLJKWZD\V&RUS)GWK&LU
 FLWDWLRQ RPLWWHG  sXGJPHQW DV D PDWWHU RI ODZ mLV 7KHUH DUH WZR SUREOHPV ZLWK WKH PDMRULW\
V UHOLDQFH RQ
DSSURSULDWHRQO\ZKHQWKHUHLVDFRPSOHWHDEVHQFHRIIDFWWR %ORFK)LUVW%ORFKKDGQRWEHHQGHFLGHGDWWKHWLPH2IILFHU
VXSSRUWWKHYHUGLFWVRWKDWQRUHDVRQDEOHMXURUFRXOGKDYH &ROHDUUHVWHG0F&XUG\2IILFHU&ROH
VDUUHVW RI0F&XUG\
IRXQGIRUWKHQRQPRYLQJSDUW\l3RXLOORQY&LW\RI2ZRVVR RFFXUUHGLQ%ORFKZDVQRWGHFLGHGXQWLO8QGHU
)GWK&LU WKH GRFWULQH RI TXDOLILHG LPPXQLW\ mJRYHUQPHQW RIILFLDOV
SHUIRUPLQJ GLVFUHWLRQDU\ IXQFWLRQV JHQHUDOO\ DUH VKLHOGHG
$OWKRXJK0F&XUG\KDVQRWDVVHUWHGKLVDSSHOODWHFODLPVLQ IURPOLDELOLW\IRUFLYLOGDPDJHVLQVRIDUDVWKHLUFRQGXFWGRHV
WKHPRVWDUWIXOIDVKLRQKLVILUVWFODLPHVVHQWLDOO\FRQWHQGV QRWYLRODWHFOHDUO\HVWDEOLVKHGVWDWXWRU\RUFRQVWLWXWLRQDOULJKWV
WKDW2IILFHU&ROHGLGQRWKDYHSUREDEOHFDXVHWRDUUHVWKLP RIZKLFKDUHDVRQDEOHSHUVRQZRXOGKDYHNQRZQl+DUORZY
DQGWKDWKHWKHUHIRUHYLRODWHGKLV)RXUWK$PHQGPHQWULJKW )LW]JHUDOG867KLVPHDQVWKDWWKH
DJDLQVWXQUHDVRQDEOHVHDUFKHVDQGVHL]XUHV:KLOHWKH)RXUWK DSSOLFDEOHODZPXVWKDYHEHHQFOHDUO\HVWDEOLVKHGDWWKHWLPH
$PHQGPHQWDOORZVEULHILQYHVWLJDWRU\GHWHQWLRQVRUm7HUU\l WKH DFWLRQ RFFXUUHG  ,G  m,I WKH ODZ DW WKDW WLPH ZDV QRW
VWRSVWREHMXVWLILHGRQWKHEDVLVRIDmUHDVRQDEOHVXVSLFLRQl FOHDUO\ HVWDEOLVKHG DQ RIILFLDO FRXOG QRW UHDVRQDEO\ EH
VHH7HUU\Y2KLR86DIXOOIOHGJHG H[SHFWHG WR DQWLFLSDWH VXEVHTXHQW OHJDO GHYHORSPHQWV QRU
DUUHVWPXVWEHVXSSRUWHGE\SUREDEOHFDXVH6HH*DUGHQKLUH FRXOGKHIDLUO\EHVDLGWRµNQRZjWKDWWKHODZIRUEDGHFRQGXFW
Y6FKXEHUW)GWK&LU QRWSUHYLRXVO\LGHQWLILHGDVXQODZIXOl,G
3UREDEOH FDXVH UHTXLUHV WKDW SROLFH KDYH UHDVRQDEO\ 6HFRQG%ORFKLQYROYHGDVKHULII
VSUHVVUHOHDVH,WGLGQRW
WUXVWZRUWK\ LQIRUPDWLRQ VXIILFLHQW WR ZDUUDQW DQ RIILFHU RI LQYROYHDQDUUHVW(YHQLIZHDFFHSWHGWKDWWKHODZDUWLFXODWHG
UHDVRQDEOHFDXWLRQWREHOLHYHWKHDUUHVWHHFRPPLWWHGRULVLQ LQ%ORFKZDVFOHDUO\HVWDEOLVKHGLQWKHUHWDOLDWRU\DFWLRQ
WKHSURFHVVRIFRPPLWWLQJDQRIIHQVH6HH&HQWDQQLY(LJKW DOOHJHGLQ%ORFKGLGQRWDULVHLQWKHFRQWH[WRIDQDUUHVW
8QNQRZQ2IILFHUV)GWK&LUTXRWLQJ
%HFNY2KLR86(VWDWHRI'LHWULFKY $VQRWHGLQ$QGHUVRQY&UHLJKWRQ86
%XUURZV)GWK&LU3UREDEOH WKH RSHUDWLRQ RI WKH TXDOLILHG LPPXQLW\ VWDQGDUG GHSHQGV
FDXVH IXUWKHU UHTXLUHV WKDW RIILFHUV DUWLFXODWH FRQFUHWH DQG VXEVWDQWLDOO\XSRQWKHOHYHORIJHQHUDOLW\DWZKLFKWKHUHOHYDQW
REMHFWLYHIDFWVIURPZKLFKWKH\LQIHUFULPLQDOFRQGXFW6HH mOHJDOUXOHlLVWREHLGHQWLILHG,GDW7KHFRQWRXUVRIWKH
8QLWHG6WDWHVY6WULFNODQG)GWK&LU ULJKW WKH RIILFLDO LV DOOHJHG WR KDYH YLRODWHG PXVW EH
0RUHRYHUWKHREMHFWLYHUHDVRQDEOHQHVVRIWKHIDFWVUHOHYDQW VXIILFLHQWO\FOHDUWKDWDUHDVRQDEOHRIILFLDOZRXOGXQGHUVWDQG
WR D SUREDEOH FDXVH GHWHUPLQDWLRQ LV SDUDPRXQW DQG WKH WKDWZKDWKHLVGRLQJYLRODWHVWKDWULJKW,GDW4XDOLILHG
RIILFHUjVVXEMHFWLYHLQWHQWLRQVDUHLUUHOHYDQW6HH:KUHQY LPPXQLW\GRHVQRWWXUQRQZKHWKHUWKHYHU\DFWLRQLQTXHVWLRQ
8QLWHG 6WDWHV  86    m6XEMHFWLYH KDVSUHYLRXVO\EHHQKHOGXQODZIXOEXWWKHXQODZIXOQHVVPXVW
 0F&XUG\Y0RQWJRPHU\ 1R 1R 0F&XUG\Y0RQWJRPHU\ 
&RXQW\2KLRHWDO &RXQW\2KLRHWDO

:KHWKHUWRDUUHVWRUQRWLVDMXGJPHQWFDOOPDGHRQWKHVSRW LQWHQWLRQV SOD\ QR UROH LQ RUGLQDU\ SUREDEOHFDXVH )RXUWK
E\WKHRIILFHUDQGDFFRUGLQJO\WKHHYLGHQFHVXSSRUWLQJWKH $PHQGPHQWDQDO\VLVl2UQHODVY8QLWHG6WDWHV86
RIILFHU
VSUREDEOHFDXVHGHWHUPLQDWLRQGRHVQRWUHTXLUHWKH KROGLQJWKDWSUREDEOHFDXVHLVDVVHVVHGIURP
VDPH GHJUHH RI VSHFLILFLW\ DV WKH HYLGHQFH WR VXSSRUW D WKHSHUVSHFWLYHRIDQREMHFWLYHO\UHDVRQDEOHSROLFHRIILFHU
FRQYLFWLRQEH\RQGDUHDVRQDEOHGRXEW ,Q DVVHVVLQJ REMHFWLYH UHDVRQDEOHQHVV KRZHYHU ZH PXVW
DFFRXQWIRUWKHDELOLW\RIRIILFHUVWRGUDZLQIHUHQFHVEDVHGRQ
7KH MXU\ LQ WKLV FDVH ZDV SURSHUO\ LQVWUXFWHG RQ WKH WKHLUSURIHVVLRQDOH[SHULHQFHV6HHLG86DW
HOHPHQWVRIULVNRISK\VLFDOKDUPDQGWKHGHILQLWLRQRIULVNDV
DVLJQLILFDQWDVRSSRVHGWRDUHPRWHSRVVLELOLW\:KLOHWKH +HUH 2IILFHU &ROH DUUHVWHG 0F&XUG\ IRU 'LVRUGHUO\
HYLGHQFH RI GLVRUGHUO\ FRQGXFW PLJKW QRW KDYH EHHQ YHU\ &RQGXFWXQGHU2KLR5HY&RGH%7KHVWDWXWH
VWURQJWKHUHZDVVRPHHYLGHQFH%HFDXVHLWFDQQRWEHVDLG SURYLGHVWKDW
WKDWWKHUHZDVDFRPSOHWHDEVHQFHRIIDFWWRVXSSRUWWKHMXU\
V
YHUGLFWWKDWWKHDUUHVWZDVVXSSRUWHGE\SUREDEOHFDXVHWKLV 1R SHUVRQ ZKLOH YROXQWDULO\ LQWR[LFDWHG VKDOO   
&RXUWVKRXOGDIILUP6HH3RXLOORQY&LW\RI2ZRVVR >H@QJDJHLQFRQGXFWRUFUHDWHDFRQGLWLRQWKDWSUHVHQWVD
)GWK&LU ULVNRISK\VLFDOKDUPWRWKHRIIHQGHURUDQRWKHURUWRWKH
SURSHUW\RIDQRWKHU
,DOVRGLVDJUHHZLWKWKHPDMRULW\jVYLHZLQ3DUW%RIWKH
RSLQLRQWKDWWKHGLVWULFWFRXUWHUUHGLQJUDQWLQJ2IILFHU&ROHjV 25&†%7KHVWDWXWHWKHUHIRUHUHTXLUHVERWK
PRWLRQIRUTXDOLILHGLPPXQLW\RQWKH)LUVW$PHQGPHQWFODLP WKDW DQ LQGLYLGXDO LV mYROXQWDULO\ LQWR[LFDWHGl DQG WKDW WKH
,ILQGWKLVDPRUHGLIILFXOWTXHVWLRQEXWEHOLHYHLWLVPRRWHG LQGLYLGXDO mSUHVHQW>@ D ULVN RI SK\VLFDO KDUPl HLWKHU WR
RXWE\WKHVSHFLILFILQGLQJVRIWKHWULDOFRXUWDQGWKHMXU\LQDOO KLPVHOI DQRWKHU RU DQRWKHUjV SURSHUW\  ,G  7KLV VHFRQG
HYHQWV HOHPHQWUHTXLUHVVRPHDIILUPDWLYHVKRZLQJRIGDQJHURXVQHVV
DVWKHVROHIDFWWKDWDQLQGLYLGXDOLVLQWR[LFDWHGGRHVQRWJLYH
7KH PDMRULW\ KROGV WKDW WKH GLVWULFW FRXUW HUUHG LQ LWV ULVHWRD†%LQIUDFWLRQ6HH6WDWHY3HQQLQJWRQ
FRQFOXVLRQWKDWZKHQ2IILFHU&ROHDFWHGLWZDVQRWFOHDUO\ 1R&$:/DW

2KLR$SS
HVWDEOLVKHGWKDWWKH)LUVW$PHQGPHQWSURKLELWHGDQRIILFHU 1RY   QRW UHSRUWHG LQ 1(G FLWLQJ
IURPHIIHFWXDWLQJDQRWKHUZLVHYDOLGDUUHVWLIWKDWRIILFHUZDV † %jV OHJLVODWLYH KLVWRU\ DVVHUWLQJ WKDW WKH
PRWLYDWHGLQSDUWE\DGHVLUHWRUHWDOLDWHDJDLQVWWKHDUUHVWHH
V SURYLVLRQmLVDLPHGDWSDUWLFXODUFRQGXFWUDWKHUWKDQDWWKH
DVVHUWLRQRI)LUVW$PHQGPHQWULJKWV7KHPDMRULW\UHDVRQV FRQGLWLRQ>RILQWR[LFDWLRQ@l6WDWHYsHQNLQV1R/
WKDWEHFDXVHLWZDVZHOOHVWDEOLVKHGWKHQWKDW0F&XUG\KDGD  :/  DW
 2KLR $SS 0DU   QRW
FRQVWLWXWLRQDO ULJKW WR FKDOOHQJH YHUEDOO\ 2IILFHU &ROH
V UHSRUWHGLQ1(GKROGLQJWKDW†%UHTXLUHV
VXUYHLOODQFHWKHGLVWULFWFRXUWHUUHGLQJUDQWLQJ2IILFHU&ROH mVRPHDIILUPDWLYHFRQGXFWRQWKHSDUWRIWKHGHIHQGDQWDQG
TXDOLILHGLPPXQLW\RQWKHUHWDOLDWLRQFODLP >GRHVQRW@SURKLELWPHUHO\EHLQJLQWR[LFDWHGLQSXEOLFl
,QVXSSRUWRIWKLVSRVLWLRQWKHPDMRULW\UHOLHVRQ%ORFKY
5LEDU)GWK&LU,Q%ORFKDUDSHYLFWLP 
,Q GLVVHQW sXGJH (QJHO REVHUYHV WKDW WKH 3HQQLQJWRQ DQG sHQNLQV
DQG KHU KXVEDQG ILOHG D †  UHWDOLDWLRQ FODLP DJDLQVW D FDVHV ZKLFK ZH KDYH FLWHG DUH XQSXEOLVKHG RSLQLRQV WKDW ZHUH ILOHG WZR
VKHULII ZKR WKH\ DOOHJHG KDG YLRODWHG WKHLU FRQVWLWXWLRQDO \HDUV DIWHU 2IILFHU &ROH DUUHVWHG 0U 0F&XUG\ +H DUJXHV WKDW LW LV XQIDLU
ULJKWV E\ LVVXLQJ D SUHVV UHOHDVH GLVFXVVLQJ WKH VHQVLWLYH WR XWLOL]H WKHVH RSLQLRQV WR DQDO\]H 2IILFHU &ROHjV FXOSDELOLW\ EHFDXVH
VXFK DQ DQDO\VLV UHTXLUHV 2IILFHU &ROH WR KDYH DQWLFLSDWHG ZKDW WKH ODZ
 0F&XUG\Y0RQWJRPHU\ 1R 1R 0F&XUG\Y0RQWJRPHU\ 
&RXQW\2KLRHWDO &RXQW\2KLRHWDO

7KH VWDWXWH IXUWKHU SURYLGHV WKDW WKH GHWHUPLQDWLRQ DV WR KH ZDV DUUHVWHG XQGHU OLNH 2+,2 5' &  $
ZKHWKHUDQLQGLYLGXDOLVLQWR[LFDWHGLVGHWHUPLQHGIURPWKH †%WKHVWDWXWHDWLVVXHLQWKLVFDVHUHTXLUHG
SHUVSHFWLYHRIDQmRUGLQDU\REVHUYHUl25&†' mVRPH DIILUPDWLYH FRQGXFWl RQ WKH SDUW RI WKH GHIHQGDQW
$OWKRXJK †  GRHV QRW SURYLGH D GHILQLWLRQ RI EH\RQGPHUHO\EHLQJLQWR[LFDWHGLQSXEOLFsHQNLQV:/
LQWR[LFDWLRQXQGHU†%WKHGLVWULFWFRXUWSURYLGHG DW
7KHFRXUWVSHFLILFDOO\KHOGWKDWmWKHRIILFHUKDG
WKHMXU\ZLWKWKHIROORZLQJLQVWUXFWLRQ SUREDEOHFDXVHWRDUUHVWDQGVHDUFKDSSHOODQWIRUGLVRUGHUO\
FRQGXFWZKHUHDSSHOODQWSDUNHGKLVFDUWRREVWUXFWWUDIILFIORZ
$SHUVRQLVLQWR[LFDWHGZKRLVVRIDUXQGHUWKHLQIOXHQFH LQWRDFDUU\RXWVWRUH $SSHOODQWFUHDWHGDULVNRIKDUPWR
RILQWR[LFDWLQJOLTXRUZLQHRUEHHUWKDWKLVSK\VLFDODQG KLPVHOI DQG RWKHUV DV ZHOO DV WR DQ\ FDU ZKLFK PD\ KDYH
PHQWDOIDFXOWLHVDUHLPSDLUHGWRVXFKDQH[WHQWWKDWKH HQWHUHGWKDWGULYHZD\l,GDW
7KXVsHQNLQVjFRQYLFWLRQ
IDLOV WR XVH WKDW GHJUHH RI FDUH DQG DWWHQWLRQ LQ KLV ZDVDIILUPHGLQWKDWFDVHLQDOOHYHQWV
FRQGXFWZKLFKDUHDVRQDEOHSHUVRQZRXOGRWKHUZLVHXVH
,Q3HQQLQJWRQVXSUDWKHDSSHOODQWUHVLVWHGHIIRUWVRISROLFH
s$DW WR WDON WR KLP DIWHU WKH SROLFH UHVSRQGHG WR D FDOO ZKLFK
DVVHUWHG WKDW WKH DSSHOODQW ZDV mSRXQGLQJ RQ WKH GRRU DQG
0F&XUG\ DUJXHV WKDW WKHUH ZDV LQVXIILFLHQW HYLGHQFH WR UHIXVLQJ WR OHDYHl  :KHQ WKH\ FDOOHG RXW mVWRS SROLFHl
VXSSRUWDILQGLQJWKDWKHZDVLQWR[LFDWHGRUSUHVHQWHGmDULVN 3HQQLQJWRQFRQWLQXHGWRUXQXQWLOKHZDVFDXJKWDQGNQRFNHG
RISK\VLFDOKDUPWR>KLPVHOI@DQRWKHURUWRWKHSURSHUW\RI GRZQ DQG VXEGXHG DQG WKHUHDIWHU DUUHVWHG E\ RIILFHUV ZKR
DQRWKHUlDVUHTXLUHGXQGHU†%:LWKUHJDUGWR QRWHGWKDWKHmVPHOOHGRIDOFRKROVWDJJHUHGDQGKLVVSHHFK
WKHYROXQWDU\LQWR[LFDWLRQHOHPHQW2IILFHU&ROHWHVWLILHGWKDW ZDVVOXUUHGDQGKLVH\HVZHUHJODVV\l7KDWFRXUWIRXQGWKDW
KH VPHOOHG DOFRKRO RQ 0F&XUG\jV EUHDWK GXULQJ KLV WKHUHZDVQRHYLGHQFHWKDWDSSHOODQWmZDVSODFLQJKLPVHOIDW
FRQYHUVDWLRQ ZLWK KLP DQG WKDW KH EHOLHYHG 0F&XUG\ ZDV ULVN E\ UXQQLQJ RWKHU WKDQ KH ZDV UXQQLQJ LQ D EDG
LQWR[LFDWHGSDVWWKHOHYHOZKHUHKHFRXOGWDNHFDUHRIKLPVHOI QHLJKERUKRRG:HILQGVXFKHYLGHQFHLVOHJDOO\LQVXIILFLHQW
6HHs$DW&ROH7UDW$GGLWLRQDOO\2IILFHU WR VXVWDLQ D FRQYLFWLRQ XQGHU WKH VXEVHFWLRQ RI 25&
&ROHDVNHG0F&XUG\ZKHWKHUKHKDGEHHQGULQNLQJWKDWQLJKW †FKDUJHGLQWKHFDVHVXEMXGLFHl$OWKRXJKWKHUH
DQG0F&XUG\UHVSRQGHGLQWKHDIILUPDWLYH$OWKRXJK2IILFHU ZDV LQ WKH MXGJPHQW RI WKDW FRXUW LQVXIILFLHQW HYLGHQFH RI
GLVRUGHUO\ FRQGXFW WKH FRXUW RI DSSHDOV IRXQG QRQHWKHOHVV
WKDW 3HQQLQJWRQjV DUUHVW ZDV ODZIXO  mZKHQ DSSO\LQJ WKH
REMHFWLYHWHVWWRWKHIDFWVLQWKHLQVWDQWDSSHDOEDVHGXSRQ
ZRXOG EH LQ WKH IXWXUH , DJUHH WKDW LW LV JHQHUDOO\ QRW IDLU WR KROG DQ
LQGLYLGXDO WR D OHJDO VWDQGDUG WKDW HPHUJHV DIWHU WKH IDFW +RZHYHU
WKH QDWXUH RI WKH WURXEOH FDOO WKH WLPH RI WKH GD\ DQG WKH
2IILFHU &ROHjV FXOSDELOLW\ GRHV QRW WXUQ RQ WKH 3HQQLQJWRQ DQG sHQNLQV SHUVRQDOREVHUYDWLRQVRIWKHRIILFHUVDWWKHVFHQHZHILQGD
GHFLVLRQV DV WKH GLVVHQW VXJJHVWV 2IILFHU &ROHjV FXOSDELOLW\ LV EDVHG RQ UHDVRQDEOH SROLFH RIILFHU ZRXOG KDYH EHOLHYHG DSSHOODQWjV
WKH SODLQ ODQJXDJH RI WKH VWDWXWH WKDW KH UHOLHG XSRQ WR DIIHFW WKH DUUHVW RI FRQGXFWFRQVWLWXWHGDYLRODWLRQRI25&†$
0U 0F&XUG\ $V QRWHG DERYH † % GRHV QRW SURKLELW 'HVSLWH RXU GHFLVLRQ LQ , VXSUD WKHUH ZDV LQVXIILFLHQW
mYROXQWDULO\ LQWR[LFDWLRQl LQ DQG RI LWVHOI ,Q RUGHU WR YLRODWH WKLV VWDWXWH
DQ LQGLYLGXDO PXVW DOVR mSUHVHQW>@ D ULVN RI SK\VLFDO KDUPl HLWKHU WR
HYLGHQFHRIGLVRUGHUO\FRQGXFWE\LQWR[LFDWLRQDVFKDUJHGLQ
KLPVHOI DQRWKHU RU DQRWKHUjV SURSHUW\ 6HH † % 2IILFHU
WKHFRPSODLQWZHILQGWKHDSSHOODQWjVDUUHVWZDVQRQHWKHOHVV
&ROH GLG QRW KDYH SUREDEOH FDXVH WR EHOLHYH WKDW 0U 0F&XUG\ SUHVHQWHG ODZIXOl
mD ULVN RI SK\VLFDO KDUPl $FFRUGLQJO\ 2IILFHU &ROH LV JXLOW\ RI YLRODWLQJ
0U 0F&XUG\jV )RXUWK $PHQGPHQW ULJKWV 7KLV ZRXOG EH WUXH HYHQ LI WKH
3HQQLQJWRQ DQG sHQNLQV FDVHV KDG QHYHU EHHQ GHFLGHG
 0F&XUG\Y0RQWJRPHU\ 1R 1R 0F&XUG\Y0RQWJRPHU\ 
&RXQW\2KLRHWDO &RXQW\2KLRHWDO

,GDW &ROH GLG QRW DGPLQLVWHU DQ\ NLQG RI VREULHW\ RU FRKHUHQFH
WHVWVKLVWHVWLPRQ\WKDWKHVPHOOHGmDOFRKROUHDOVWURQJRQ
7KHPDMRULW\VWXGLRXVO\DYRLGVFRQVLGHUDWLRQRI0F&XUG\
V KLPls$DWFRXSOHGZLWK0F&XUG\jVDGPLVVLRQWKDWKH
DEXVLYH ODQJXDJH LQ WKHLU FRQVLGHUDWLRQ RI SUREDEOH FDXVH FRQVXPHG DOFRKRO ERWK GXULQJ KLV QHSKHZjV SDUW\ DQG WKH
XQGHUWKHVWDWXWH:@KHQ D SHUVRQ LV LQWR[LFDWHG WR WKDW OHYHO WR P\
1HYHUWKHOHVV 0F&XUG\jV DEXVLYH ODQJXDJH DQG PDNH QR WUDLQLQJ DQG H[SHULHQFH XQGHU ODZ WKH\ HVVHQWLDOO\
PLVWDNH DERXW LW LW ZDV DEXVLYH IURP WKH VWDUW HYHQ LI EHFRPHP\UHVSRQVLELOLW\RQFH,EHFRPHLQFRQWDFWZLWK
SURWHFWHGE\WKH)LUVW$PHQGPHQWJHQHUDOO\ZDVQRQHWKHOHVV WKHP  ,I , OHW WKDW SHUVRQ JR , FDQQRW WHOO \RX ZKDWjV
EHOOLJHUHQW  *LYHQ WKH RYHUDOO FLUFXPVWDQFHV LW FRXOG JRLQJ WR KDSSHQ WR WKHP  , FDQ RQO\ XQIRUWXQDWHO\
UHDVRQDEO\ KDYH LQGXFHG DQ RIILFHU LQ &ROHjV SRVLWLRQ WR VSHFXODWH ZKDW FRXOG KDSSHQ WR WKHP  7KDWjV ZK\ LW
FRQFOXGHXQGHU2KLRODZDVLWZDVWKHQNQRZQWKDWWKHUH EHFRPHV P\ UHVSRQVLELOLW\ WR PDNH VXUH WKDWRQH RI D
ZDVDULVNRIDFWXDOKDUP7KHREMHFWLYHO\UHDVRQDEOHSROLFH PLOOLRQWKLQJVGRHVQRWKDSSHQWRWKHP
RIILFHUZKLFKLVRXUPHDVXUHKHUHFHUWDLQO\KDGDULJKWWR
FRQVLGHUVXFKODQJXDJHQRWRQO\DVLQGLFDWLYHRI0F&XUG\jV s$ DW  &ROH 7U DW  HPSKDVLV DGGHG
LQWR[LFDWLRQEXWDOVRRIKLVIUDPHRIPLQG7KHUHDUHKDSS\ 0RUHRYHU 2IILFHU &ROH VWDWHG WKDW m>E@\ H[KLELWLQJ KLV
GUXQNV DQG WKHUH DUH PDG GUXQNV  2IILFHU &ROH FRXOG LQWR[LFDWHGQDWXUH>@WKHUHZDVQRZD\WKDW,FRXOGWHOODW
UHDVRQDEO\FRQFOXGHWKDW0F&XUG\LQKLVWKHQFRQGLWLRQDQG WKDWSRLQWWKDW>0F&XUG\@ZDVQRWWKHUHWRGRGDPDJHWRWKH
FRPEDWLYH IUDPH RI PLQG GLG LQ IDFW SUHVHQW WKH GDQJHU SURSHUW\RIDQRWKHUSHUVRQWKDWOLYHGLQWKHDUHD7KDWjVZK\
UHTXLVLWHXQGHUWKH2KLRVWDWXWH KHZDVDUUHVWHGls$DWHPSKDVLVDGGHG2IILFHU&ROH
DGGLWLRQDOO\ DVVHUWHG WKDW DIWHU KH DSSURDFKHG 0F&XUG\
(YHQDVVXPLQJWKDWWKHWZRXQSXEOLVKHGFDVHVFLWHGE\WKH 0F&XUG\jVDVVRFLDWHVFRPEDWLYHO\FKDOOHQJHGKLVDXWKRULW\
PDMRULW\ PLJKW VRPHKRZ DFFXUDWHO\ UHIOHFW 2KLRjV
LQWHUSUHWDWLRQRILWVVWDWXWHWKH\IDLOWRVXSSRUWWKHPDMRULW\
V %\2IILFHU&ROHjVRZQWHVWLPRQ\KHGLGQRWKDYHSUREDEOH
FRQVWUXFWLRQ LQ DQ\ HYHQW  ,Q sHQNLQV WKH GHIHQGDQW ZDV FDXVHWRDUUHVW0F&XUG\XQGHU25&†%DQG
IRXQGSDVVHGRXWDQGVOXPSHGRYHUWKHVWHHULQJZKHHORIDFDU WKH GLVWULFW FRXUW WKHUHIRUH HUUHG LQ GHQ\LQJ 0F&XUG\jV
ZKLFK ZDV VWROHQ DQG ZDV DUUHVWHG IRU GLVRUGHUO\ FRQGXFW PRWLRQIRUMXGJPHQWDVDPDWWHURIODZ*HQHURXVO\JUDQWLQJ
XQGHU70&E7KHFRXUWREVHUYHGWKDWWKHVWDWXWH 2IILFHU&ROHWKHEHQHILWRIDOOLQIHUHQFHVDQGGRXEWV2IILFHU
 0F&XUG\Y0RQWJRPHU\ 1R 1R 0F&XUG\Y0RQWJRPHU\ 
&RXQW\2KLRHWDO &RXQW\2KLRHWDO

&ROH DW EHVW SUHVXPHG WKDW 0F&XUG\ SUHVHQWHG D ULVN RI WKH\GLGSURSHUO\UHIOHFW2KLRODZWKH\GLGQRWGRVRDWWKH
KDUP HLWKHU WR KLPVHOI DQRWKHU RU WKH SURSHUW\ RI DQRWKHU WLPHRIWKHHYHQWKHUH,IWKHRIILFHUjVFXOSDELOLW\LVEDVHG
VROHO\EHFDXVHKHDSSHDUHGWREHLQWR[LFDWHG+RZHYHUDV XSRQKLVXQGHUVWDQGLQJRI2KLRODZDWWKHWLPHRIWKHRIIHQVH
QRWHGDERYHWKHODQJXDJHRIWKHVWDWXWHFOHDUO\SURYLGHVWKDW LWLVWRWDOO\XQIDLUWRFRQFOXGHWKDWKHRXJKWUHDVRQDEO\WRKDYH
LQWR[LFDWLRQ DORQH GRHV QRW JLYH ULVH WR D † % DQWLFLSDWHGWKLVZRXOGEHWKHODZZKLFKKHVKRXOGWKHQKDYH
YLRODWLRQ  6HH 3HQQLQJWRQ  :/  DW

 REH\HGWZR\HDUVEHIRUHLWVLVVXDQFHDQGZKLFKVKRXOGKDYH
sHQNLQV  :/  DW
  ,Q WKLV UHJDUG QHLWKHU SURPSWHGKLPQRWWRDFWDVKHGLG
2IILFHU &ROH QRU WKH &RXQW\ KDV FLWHG DQ\ REMHFWLYH DQG
DUWLFXODEOHIDFWVIURPZKLFK2IILFHU&ROHFRXOGUHDVRQDEO\ 7KHPDMRULW\PLJKWEHWWHUKDYHORRNHGWRSXEOLVKHG2KLR
LQIHUWKDW0F&XUG\SUHVHQWHGDULVNRISK\VLFDOKDUPXQGHU FDVHVIRUJXLGDQFHRQLQWHUSUHWDWLRQRIWKH2KLRGLVRUGHUO\
†% FRQGXFW ZKLOH LQWR[LFDWHG VWDWXWH  ,Q 6WDWH Y 3DUNV 
1(G2KLR$SSRYHUUXOHGRQRWKHUJURXQGV
,QGHHG2IILFHU&ROHWHVWLILHGHVVHQWLDOO\WKDWWKHUHZHUHQR 6WDWHYsHQNLQV1(G2KLR$SSWKHFRXUW
REMHFWLYH IDFWV WR WULJJHU SUREDEOH FDXVH DV KH FRXOG RQO\ KHOG WKDW WKH GHIHQGDQW
V DFW RI VLWWLQJ SHDFHDEO\ LQ WKH
mVSHFXODWHlRQWKHmRQHRIDPLOOLRQWKLQJVlWKDWPLJKWRFFXU SDVVHQJHUVHDWRIDFDUWKDWZDVSDUNHGLQDGULYHZD\LQDQ
LIKHGLGQRWDUUHVW0F&XUG\0RUHRYHU2IILFHU&ROHVWDWHG LQWR[LFDWHGVWDWHGLGQRWFUHDWHWKHNLQGRIULVNRISK\VLFDO
SODLQO\WKDWKHDUUHVWHG0F&XUG\EHFDXVHmWKHUHZDVQRZD\ KDUPWRKLPVHOIWKDWZDVLQWHQGHGWREHHQFRPSDVVHGE\5&
WKDW>KH@FRXOGWHOOWKDW>0F&XUG\@ZDVQRWWKHUHWRGR %7KHFRXUWUHMHFWHGWKHVWDWH
VDUJXPHQWWKDW
GDPDJH WR WKH SURSHUW\ RI DQRWKHU SHUVRQ WKDW OLYHG LQ WKH WKHGHIHQGDQW
VUHIXVDOWRJHWRXWRIWKHFDUSUHVHQWHGDULVNRI
DUHDl  s$ DW   :KHQ DQ RIILFHU OLWHUDOO\ KDV QR LGHD KDUPEHFDXVHKHPLJKWKDYHEHHQ LQMXUHGZKHQWKHSROLFH
ZKHWKHUDSUHVXPSWLYHO\ODZDELGLQJFLWL]HQKDVYLRODWHGWKH DVVLVWHGKLPRXWRIWKHFDU7KHFRXUWGHWHUPLQHGWKDWWKLV
ODZ WKH )RXUWK $PHQGPHQW FOHDUO\ FRPPDQGV WKDW HQWLUHO\ SDVVLYH FRQGXFW ZDV QRW WKH NLQG RI IRUHVHHDEOH
JRYHUQPHQWOHWWKHLQGLYLGXDOEH,QGHHGLIDQ\WKLQJLVFOHDU FRQVHTXHQFHHQYLVLRQHGE\WKHVWDWXWH3DUNV1(GDW
DERXW WKH )RXUWK $PHQGPHQW LW LV WKLV JRYHUQPHQW PD\ 
GHSULYHLWVFLWL]HQVRIOLEHUW\ZKHQDQGRQO\ZKHQLWKDVD
YLDEOHFODLPWKDWDQLQGLYLGXDOKDVFRPPLWWHGDFULPHDQG 8QGHUSXEOLVKHG2KLRODZWKHIRUHVHHDELOLW\RIWKHULVNRI
WKDW FODLP LV VXSSRUWHG HPSLULFDOO\ E\ FRQFUHWH DQG KDUP UHTXLUHV WKH H[HUFLVH RI SURIHVVLRQDO MXGJPHQW  ,Q
LGHQWLILDEOHIDFWV6HH0LQQHVRWDY'LFNHUVRQ86 .QDSS Y *XULVK  1(G  2KLR $SS  WKH
8QLWHG6WDWHVY5HHG1R:/ GHIHQGDQW SROLFH RIILFHU ZDV VXHG IRU IDLOLQJ WR DUUHVW DQ
DW
WK&LU0D\2IILFHU&ROHGLGQRW LQWR[LFDWHGSHUVRQXQGHUWKHVWDWXWH7KHFRXUWREVHUYHGWKDW
VDWLVI\WKHVHIXQGDPHQWDOLPSHUDWLYHVDQGDFFRUGLQJO\ZH WKH GXW\ WR DUUHVW D SHUVRQ IRU GLVRUGHUO\ FRQGXFW ZKLOH
UHYHUVHWKHGLVWULFWFRXUWjVGHQLDORI0F&XUG\jVPRWLRQIRU LQWR[LFDWHGLVQHFHVVDULO\GLVFUHWLRQDU\,GDW
MXGJPHQWQRWZLWKVWDQGLQJWKHYHUGLFWDVLWUHODWHVWR2IILFHU
&ROHLQKLVLQGLYLGXDOFDSDFLW\%HFDXVHWKHGLVWULFWFRXUWGLG 5&%UHTXLUHVWKDWDSROLFHRIILFHUDVVHVV
QRWDGGUHVVVSHFLILFDOO\ZKHWKHUD&RXQW\FXVWRPRUSROLF\ WKH FRQGLWLRQ RI WKH LQWR[LFDWHG SHUVRQ DQG GHWHUPLQH
JDYHULVHHLWKHUWR&RXQW\OLDELOLW\VHHHJ0RQHOOY1HZ ZKHWKHUKLVFRQGLWLRQSRVHVDULVNRIKDUPWRKLPVHOIRU
W@KHULJKW UHDVRQDEOHMXU\FRXOGFRQFOXGHWKDW2IILFH&ROHKDGSUREDEOH
RI DQ $PHULFDQ FLWL]HQ WR FULWLFL]H SXEOLF RIILFLDOV DQG FDXVHWREHOLHYHWKDW0F&XUG\SUHVHQWHGDULVNRISK\VLFDO
SROLFLHVLVµWKHFHQWUDOPHDQLQJRIWKH)LUVW$PHQGPHQWjl KDUPHLWKHUWRKLPVHOIRWKHUVRUWKHSURSHUW\RIRWKHUVlDQG
*ODVVRQ Y &LW\ RI /RXLVYLOOH  )G   WK &LU WKDW mJHQHURXVO\ JUDQWLQJ 2IILFHU &ROH WKH EHQHILW RI DOO
TXRWLQJ1HZ7@KH)LUVW$PHQGPHQWULJKWWRFULWLFL]H 7KH SURRIV EHIRUH WKH FRXUW FRQWDLQHG REMHFWLYH DQG
SXEOLFRIILFLDOVLVZHOOHVWDEOLVKHGDQGVXSSRUWHGE\DPSOH FUHGLEOHIDFWVIURPZKLFKDUHDVRQDEOHSROLFHRIILFHUFRXOG
FDVH ODZ  )XUWKHUPRUH LW LV ZHOOHVWDEOLVKHG WKDW D SXEOLF ILQGSUREDEOHFDXVHWREHOLHYHWKDW0F&XUG\SUHVHQWHGDULVN
RIILFLDOjVUHWDOLDWLRQDJDLQVWDQLQGLYLGXDOH[HUFLVLQJKLVRUKHU RI SK\VLFDO KDUP XQGHU WKH VWDWXWH FLWHG  2IILFHU &ROH
)LUVW$PHQGPHQWULJKWVLVDYLRODWLRQRI†l'XUDQY WHVWLILHGWKDWKHIRXQG0F&XUG\RXWVLGHDWDP+HDQG
&LW\ RI 'RXJODV  )G   WK &LU  KLVFRPSDQLRQVZHUHQRWRQO\LQWR[LFDWHGEXWDOVRDFWHGDVLI
m>*@RYHUQPHQW RIILFLDOV LQ JHQHUDO DQG SROLFH RIILFHUV LQ WKH\ZDQWHGWRILJKWWKHSROLFHRIILFHUDQGSHUKDSVHDFKRWKHU
SDUWLFXODU PD\ QRW H[HUFLVH WKHLU DXWKRULW\ IRU SHUVRQDO +HWHVWLILHGWKDW0F&XUG\XVHGSURIDQLW\ZKHQVSHDNLQJWR
PRWLYHVSDUWLFXODUO\LQUHVSRQVHWRUHDORUSHUFHLYHGVOLJKWV KLP  %DVHG 0F&XUG\
V LQWR[LFDWLRQ KLV XQSURYRNHG
WRWKHLUGLJQLW\6XUHO\DQ\RQHZKRWDNHVDQRDWKRIRIILFH GLVRUGHUO\PDQQHULVPWRZDUGWKHRIILFHUDQGWKHWLPHRIGD\
NQRZVoRUVKRXOGNQRZoWKDWPXFKl WKH RIILFHU FRQFOXGHG WKDW KH SUHVHQWHG D ULVN RI KDUP WR
KLPVHOI7KHMXU\DJUHHG
,W LV ZHOOHVWDEOLVKHG WKHQ WKDW 0F&XUG\ KDG D
FRQVWLWXWLRQDO ULJKW WR FKDOOHQJH YHUEDOO\ 2IILFHU &ROHjV 7KHPDMRULW\IRFXVHVRQ2IILFHU&ROHjVWHVWLPRQ\KHFRXOG
VXUYHLOODQFH DQG ZH WKHUHIRUH UHYHUVH WKH GLVWULFW FRXUWjV RQO\mVSHFXODWHlRQWKHmRQHRIDPLOOLRQWKLQJVlWKDWPLJKW
JUDQW RI TXDOLILHG LPPXQLW\ WR 2IILFHU &ROH  %HFDXVH WKH RFFXULIKHGLGQRWDUUHVW0F&XUG\%HDULQPLQGmRQHRID
GLVWULFWFRXUWGLGQRWDGGUHVVZKHWKHU0F&XUG\jVDUUHVWZDV PLOOLRQWKLQJVlLVQRWWKHVDPHDVmRQHLQDPLOOLRQlFKDQFH
DWOHDVWSDUWLDOO\PRWLYDWHGE\SURWHFWHGFRQGXFWZHUHPDQG WKDWKHPLJKWGRLQMXU\WRKLPVHOIDQGRWKHUV+RZFRXOGDQ\
IRUIXUWKHUSURFHHGLQJV SROLFHRIILFHUNQRZH[DFWO\ZKLFKSDUWLFXODULQMXU\DPDQDW
 0F&XUG\Y0RQWJRPHU\ 1R 1R 0F&XUG\Y0RQWJRPHU\ 
&RXQW\2KLRHWDO &RXQW\2KLRHWDO

2IILFHU &ROH RQ 0F&XUG\jV )LUVW $PHQGPHQW UHWDOLDWLRQ &
FODLPDVLWZDVFOHDUO\HVWDEOLVKHGDWWKHWLPH2IILFHU&ROH
DFWHGWKDWKHFRXOGQRWUHWDOLDWHDJDLQVW0F&XUG\IRUDVVHUWLQJ 0F&XUG\ILQDOO\DVVHUWVWKDWWKH&RXQW\LPSURSHUO\XVHGD
KLV )LUVW $PHQGPHQW ULJKWV :LWK WKHVH UXOLQJV ZH SHUHPSWRU\FKDOOHQJHWRH[FOXGHDEODFNMXURULQYLRODWLRQRI
5(0$1' WR WKH GLVWULFW FRXUW IRU IXUWKHU SURFHHGLQJV RQ WKH(TXDO3URWHFWLRQ&ODXVH0F&XUG\VSHFLILFDOO\REMHFWVWR
0F&XUG\jV)RXUWK$PHQGPHQWFODLPDJDLQVWWKH&RXQW\DQG WKH&RXQW\jVXVHRIDSHUHPSWRU\WRVWULNH$IULFDQ$PHULFDQ
KLV)LUVW$PHQGPHQWUHWDOLDWLRQFODLP 6\OYLD :LOOLDPV IURP WKH MXU\  ,Q UHVSRQVH WKH &RXQW\
FRQWHQGVWKDW:LOOLDPVjGHPHDQRUGXULQJYRLUGLUHVXJJHVWHG
WKDWVKHZDVGLVLQWHUHVWHGLQVHUYLQJDVDMXURU,QWKHGLVWULFW
FRXUWWKH&RXQW\jVDWWRUQH\VWDWHG
>,@Q P\ YLHZ LQ ZDWFKLQJ >:LOOLDPV@ WKHUH ZDV QR
UHVSRQVHWRDQ\RIWKHTXHVWLRQVQRQRGGLQJRIWKHKHDG
,MXVWWRRNLWWKDWVKHZDVQjWLQWHUHVWHGLQWKHFDVHDQG,
KDGKHUFURVVHGRIIIURPWKHEHJLQQLQJsXGJHDVIDUDV
QRWEHLQJUHVSRQVLYHDQGWKDWjVP\UHDVRQIRUH[HUFLVLQJ
WKHSHUHPSWRU\FKDOOHQJH
s$DW:LWKRXWTXHVWLRQLQJ:LOOLDPVRUHQJDJLQJLQD
FROORTX\ZLWKHLWKHU0F&XUG\jVRUWKH&RXQW\jVFRXQVHOWKH
GLVWULFWFRXUWRYHUUXOHG0F&XUG\jV%DWVRQREMHFWLRQ6HHs$
DW   ,Q 0F&XUG\jV QHZ WULDO PRWLRQ KH UHLWHUDWHG KLV
FKDOOHQJHWRWKHSHUHPSWRU\7KHGLVWULFWFRXUWUHMHFWHGKLV
UHQHZHG FKDOOHQJH FRQFOXGLQJ WKDW 0V :LOOLDPV ZDV
mSDVVLYHlLQWKHIDFHRIWKHSDUWLHVjTXHVWLRQLQJDQGWKDWWKH
&RXQW\WKHUHIRUHKDGDUWLFXODWHGDUDFHQHXWUDOMXVWLILFDWLRQ
IRULWVH[HUFLVHRIWKHSHUHPSWRU\
$ GLVWULFW FRXUWjV UXOLQJ RQ ZKHWKHU WKH H[HUFLVH RI D
SHUHPSWRU\FKDOOHQJHYLRODWHVHTXDOSURWHFWLRQLVHQWLWOHGWR
mJUHDWGHIHUHQFHlDQGZHPD\QRWGLVWXUELWVMXGJPHQWXQOHVV
LWLVFOHDUO\HUURQHRXV8QLWHG6WDWHVY%XFKDQDQ1R
:/DW
WK&LU0D\,WLV
VHWWOHGWKDWWKH&RQVWLWXWLRQjVJXDUDQWHHRIHTXDOSURWHFWLRQ
HQVXUHVWKDWDSDUW\PD\QRWH[HUFLVHDSHUHPSWRU\FKDOOHQJH
WRUHPRYHDQLQGLYLGXDORQDFFRXQWRIWKDWSHUVRQjVUDFH6HH
%DWVRQ Y .HQWXFN\  86   (GPRQVRQ Y
/HHVYLOOH &RQFUHWH &R ,QF  86   
H[WHQGLQJ%DWVRQUXOHWRFLYLOWULDOV7RHVWDEOLVKDHTXDO
 0F&XUG\Y0RQWJRPHU\ 1R 1R 0F&XUG\Y0RQWJRPHU\ 
&RXQW\2KLRHWDO &RXQW\2KLRHWDO

SURWHFWLRQ YLRODWLRQ XQGHU %DWVRQ WKH FODLPDQW PXVW ILUVW MXVWLILFDWLRQV6HH+HUQDQGH]Y1HZ3@DVVLYLW\ LQDWWHQWLYHQHVV RU LQDELOLW\ WR UHODWH WR RWKHU HQJDJHGLQWKHFRQVWLWXWLRQDOO\UHTXLUHGDQDO\VLVZHDIILUP
MXURUV >DUH@ YDOLG UDFHQHXWUDO H[SODQDWLRQV IRU H[FOXGLQJ WKHGLVWULFWFRXUWjVGHQLDORI0F&XUG\jV%DWVRQFODLP
MXURUVl GLVWULFW FRXUWV QHYHUWKHOHVV PXVW mH[SOLFLWO\
DGMXGLFDW>H@WKHFUHGLELOLW\RIWKHQRQPRYLQJRUFKDOOHQJLQJ ,,,
SDUW\jVUDFHQHXWUDOH[SODQDWLRQVlsRUGDQY/H)HYUH
)GG&LUVHH8QLWHG6WDWHVY3HUH] %HFDXVHQRUDWLRQDOMXU\FRXOGILQGWKDW2IILFHU&ROHKDG
)GVW&LUKROGLQJWKDWWKHWULDOFRXUWPXVW SUREDEOH FDXVH WR DUUHVW 0F&XUG\ XQGHU 25&
DVVHVVWKHFUHGLELOLW\RIWKHUDFHQHXWUDOH[SODQDWLRQ7KH †%ZH5(9(56(WKHGLVWULFWFRXUWjVGHQLDORI
QHHG IRU DQ H[SOLFLW RQWKHUHFRUG DQDO\VLV RI HDFK RI WKH 0F&XUG\jVPRWLRQIRUMXGJPHQWQRWZLWKVWDQGLQJWKHYHUGLFW
HOHPHQWVRID%DWVRQFKDOOHQJHLVHVSHFLDOO\LPSRUWDQWZKHQ DQGHQWHUMXGJPHQWIRU0F&XUG\RQKLV)RXUWK$PHQGPHQW
WKH SXUSRUWHG UDFHQHXWUDO MXVWLILFDWLRQ LV SUHGLFDWHG RQ FODLPDJDLQVW2IILFHU&ROHLQKLVLQGLYLGXDOFDSDFLW\:HDOVR
VXEMHFWLYHH[SODQDWLRQVOLNHERG\ODQJXDJHRUGHPHDQRU6HH 5(9(56(WKHGLVWULFWFRXUWjVJUDQWRITXDOLILHGLPPXQLW\WR
8QLWHG6WDWHVY/HGIRUG1R:/DW

WK&LU2FWXQSXEOLVKHGRSLQLRQQRWLQJWKDW
FUHGLWLQJVXEMHFWLYHH[SODQDWLRQVIRUSHUHPSWRU\VWULNHVFRXOG 
DOORZ DQ LPSURSHUO\ PRWLYDWHG DWWRUQH\ WR mFLUFXPYHQWl 7KH GLVWULFW FRXUW LWVHOI DSSHDUV WR KDYH UHFRJQL]HG WKDW LWV LQLWLDO
,9843
%DWVRQ  %HFDXVH WKH SULPDU\ GHIHQVH WR SUHWH[W EDVHG
GLVSRVLWLRQ RI 0F&XUG\jV FKDOOHQJH ZDV LQVXIILFLHQW ,Q
DGGUHVVLQJ 0F&XUG\jV SRVWYHUGLFW QHZ WULDO PRWLRQ WKH FRXUW H[SODLQHG
YLRODWLRQVRI%DWVRQLVWKHGLVWULFWFRXUWjVDELOLW\WRDVVHVVWKH WKDW LW GLG QRW PRUH SURELQJO\ DVVHVV WKH &RXQW\jV UDFHQHXWUDO
FUHGLELOLW\RIDQDWWRUQH\jVUHSUHVHQWDWLRQVLWLVFULWLFDOWKDW MXVWLILFDWLRQ EHFDXVH mQR RQH VXJJHVWHG >LW@ DW WKH WLPH DQG LW ZRXOG KDYH

WKH GLVWULFW FRXUW LQGHSHQGHQWO\ DVVHVV WKH SURIIHUHG EHHQ DQ LPSURSHU LQWUXVLRQ RQ >'HIHQGDQWjV FRXQVHOjV@ MXGJPHQWl s$
DW