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$SSHOOHH 1R Y ! 0,&+$(/ 60,7+ 'HIHQGDQW$SSHOODQW 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&LQFLQQDWL 1Rn6DQGUD6%HFNZLWK'LVWULFWsXGJH $UJXHG$XJXVW 'HFLGHGDQG)LOHG0DUFK %HIRUH0225(DQG&/$<&LUFXLWsXGJHV+22' 'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8('&5DQVRP+XGVRQ$66,67$17)('(5$/ 38%/,&'()(1'(5&LQFLQQDWL2KLRIRU$SSHOODQW7HUU\ /HKPDQQ $66,67$17 81,7(' 67$7(6 $77251(< 7KH +RQRUDEOH 'HQLVH 3DJH +RRG 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ 8QLWHG6WDWHVY6PLWK 1R &LQFLQQDWL 2KLR IRU $SSHOOHH 21 %5,() & 5DQVRP +XGVRQ $66,67$17 )('(5$/ 38%/,& '()(1'(5 &LQFLQQDWL 2KLR IRU $SSHOODQW 7LPRWK\ ' 2DNOH\ $66,67$1781,7('67$7(6$77251(<&LQFLQQDWL 2KLRIRU$SSHOOHH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB '(1,6(3$*(+22''LVWULFWsXGJH2QsDQXDU\ DIHGHUDOJUDQGMXU\VLWWLQJLQWKH6RXWKHUQ'LVWULFWRI 2KLR FKDUJHG 'HIHQGDQW 0LFKDHO 6PLWK DQG ILYH FR GHIHQGDQWV ZLWK GUXJUHODWHG RIIHQVHV LQ D WHQFRXQW LQGLFWPHQW'HIHQGDQW6PLWKZDVQDPHGLQ&RXQWV,,,DQG ;RIWKHLQGLFWPHQW'HIHQGDQW6PLWKDQGKLVFRGHIHQGDQWV SOHDGHG JXLOW\ WR &RXQW , RI WKH LQGLFWPHQW ZKLFK LV FRQVSLUDF\ WR SRVVHVV ZLWK WKH LQWHQW WR GLVWULEXWH FRFDLQH EDVH DQG FRFDLQH IURP 2FWREHU XQWLO sDQXDU\ LQ YLRODWLRQ RI 86& &RXQW ,, RI WKH LQGLFWPHQWFKDUJHGWKDW'HIHQGDQW6PLWKDQGsDPHV2JOHVE\ XQODZIXOO\GLVWULEXWHGFRFDLQHEDVHLQYLRODWLRQRI86& DE%LLLDQG86&RQ2FWREHU &RXQW;FKDUJHG'HIHQGDQW6PLWKDQG*HRUJH&DUWHU ZLWK XQODZIXOO\ GLVWULEXWLQJ FRFDLQH EDVH LQ DQ DPRXQW LQ H[FHVVRIILYHJUDPVRQ1RYHPEHULQYLRODWLRQRI 86&DE%LLLDQG86& 2QsDQXDU\'HIHQGDQW6PLWKZDVDUUHVWHGDQG KHOG ZLWKRXW ERQG XQWLO D KHDULQJ RQ sDQXDU\ 'HIHQGDQW6PLWKZDVDUUDLJQHGDQGHQWHUHGDQRWJXLOW\SOHD RQsDQXDU\7ULDOZDVVFKHGXOHGRQ0DUFK EXW ZDV SRVWSRQHG XQWLO $SULO DW D SUHWULDO FRQIHUHQFHZLWK'HIHQGDQW6PLWKjVDWWRUQH\2QWKHGD\RI WULDO'HIHQGDQW6PLWKFKDQJHGKLVSOHDDQGSOHDGHGJXLOW\WR &RXQW , RI WKH LQGLFWPHQW FRQVSLUDF\ WR SRVVHVV ZLWK WKH LQWHQW WR GLVWULEXWH FRFDLQH EDVH DQG FRFDLQH 7KH JRYHUQPHQWZDVLQIRUPHGRI'HIHQGDQW6PLWKjVGHFLVLRQWR SOHDGJXLOW\ODWHLQWKHGD\RQWKHHYHRIWULDO$W'HIHQGDQW 6PLWKjVVHQWHQFLQJKHDULQJRQsXQHKHREMHFWHGWR 1R 8QLWHG6WDWHVY6PLWK WKHLQFOXVLRQRIJUDPVRIFRFDLQHEDVHLQWKHFDOFXODWLRQ RIKLVEDVHRIIHQVHOHYHO'HIHQGDQW6PLWKjVREMHFWLRQZDVDV IROORZV 2EMHFWLRQ 1R 7KH GHIHQVH FRXQVHO REMHFWV WR SDUDJUDSKVDQGRIWKHSUHVHQWHQFHUHSRUW 6SHFLILFDOO\ WKH GHIHQVH REMHFWV WR 0U 6PLWK >VLF@ LQYROYHPHQWLQWKHVDOHRIJUDPVRIFUDFNFRFDLQH $FFRUGLQJ WR 0U 6PLWK WKHUH ZDV DQRWKHU LQGLYLGXDO LQYROYHGLQWKHVDOHRIWKHJUDPVRIFRFDLQHNQRZQDV mWKH)DWPDQlWKHUHIRUHKHIHHOVKHLVQRWUHVSRQVLEOHIRU WKLVWUDQVDFWLRQ ,WZDV'HIHQGDQW6PLWKjVFRQWHQWLRQWKDWLIWKHJUDPV RIFUDFNFRFDLQHKDGEHHQH[FOXGHGIURPWKHFDOFXODWLRQRI KLV EDVH RIIHQVH OHYHO WKH OHYHO ZRXOG KDYH EHHQ WKLUWHHQ LQVWHDG RI WZHQW\WKUHH $ EDVH RIIHQVH OHYHO RI WKLUWHHQ FRXSOHGZLWK'HIHQGDQW6PLWKjVFULPLQDOKLVWRU\FDWHJRU\RI 9 ZRXOG KDYH JLYHQ 'HIHQGDQW 6PLWK WR PRQWKVj LPSULVRQPHQWOHVVHQLQJWKHPRQWKVRILPSULVRQPHQW LPSRVHG 'HIHQGDQW 6PLWKjV REMHFWLRQ ZDV RYHUUXOHG DW WKH VHQWHQFLQJ 7KH GLVWULFW FRXUW GHWHUPLQHG WKDW 'HIHQGDQW 6PLWKZDVUHVSRQVLEOHIRUWKHDGGLWLRQDOJUDPVRIFUDFN FRFDLQH 7KH GLVWULFW FRXUW DOVR GHWHUPLQHG EDVHG XSRQ 'HIHQGDQW6PLWKjVXQWLPHO\DFFHSWDQFHRIUHVSRQVLELOLW\KH TXDOLILHGIRURQO\DWZRSRLQWUHGXFWLRQDQGQRWDWKUHHSRLQW UHGXFWLRQ7KHUHIRUH'HIHQGDQW6PLWKjVJXLGHOLQHUDQJHZDV PRQWKVKHZDVVHQWHQFHGWRDWHUPRIPRQWKVRI LPSULVRQPHQW 'HIHQGDQW 6PLWK ILOHG D WLPHO\ QRWLFH RI DSSHDO ,%$&.*5281' 7KH'UXJ(QIRUFHPHQW$JHQF\m'($lDQGWKH/RFNODQG 2KLR DQG /LQFROQ +HLJKWV 2KLR 3ROLFH 'HSDUWPHQWV FRQGXFWHG D MRLQW LQYHVWLJDWLRQ GXULQJ WKH ODWH VXPPHU RI 7KHVWDWHSROLFHGHSDUWPHQWVUHTXHVWHGDVVLVWDQFHIURP WKH'($LQKDQGOLQJWKHJURZLQJGUXJWUDIILFNLQJSUREOHPLQ WKHLUWRZQV$VSHFLDOL]HGLQYHVWLJDWLYHXQLWNQRZQDVWKH 8QLWHG6WDWHVY6PLWK 1R 1R 8QLWHG6WDWHVY6PLWK 0RELOH(QIRUFHPHQW7HDPm0(7lIURP'HWURLW0LFKLJDQ ,9&21&/86,21 ZDVVHQWWRDVVLVWLQWKHLQYHVWLJDWLRQLQ6HSWHPEHURI 7KH ORFDO SROLFH RIILFHUV KDG GLVFRYHUHG GXULQJ WKHLU )RU WKH UHDVRQV VHW IRUWK DERYH ZH $)),50 'HIHQGDQW SUHOLPLQDU\ LQYHVWLJDWLRQV WKDW WKH ELJJHVW VRXUFH RI GUXJ 6PLWKjVMXGJPHQWRIFRQYLFWLRQDQGVHQWHQFH WUDIILFNLQJ ZDV FHQWHUHG DURXQG :DOQXW 6WUHHW LQ /RFNODQG2KLR7KH:DOQXWDGGUHVVZDVDWZRIDPLO\WZR VWRU\UHVLGHQFHsRVHSK2JOHVE\DQGKLVIDPLO\OLYHGRQWKH ILUVWIORRURIWKHGZHOOLQJDQG'HIHQGDQW6PLWKOLYHGRQWKH VHFRQGIORRURIWKHGZHOOLQJ7KHORFDOSROLFHKDGUHFHLYHG QXPHURXV SULYDWH FRPSODLQWV RI GUXJ VDOHV E\ 'HIHQGDQW 6PLWK2JOHVE\DQG2JOHVE\jVVRQsRVHSK&DLQRXWRI :DOQXW3HUVRQVLQYROYHGLQWKHGUXJDFWLYLW\RIWHQORLWHUHG DURXQG WKH GZHOOLQJ DQG SXUFKDVHG GUXJV SULPDULO\ IURP 'HIHQGDQW6PLWK ,Q2FWREHURIWKH0(7EHJDQWDUJHWLQJLQGLYLGXDOV LQYROYHG LQ GUXJ WUDIILFNLQJ DW :DOQXW &RQILGHQWLDO LQIRUPDQWVZHUHVHQWWRPDNHmFRQWUROOHGSXUFKDVHVl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jVRSLQLRQ>ZDV@WKHLGHDWKDW DVVXPHG WKDW 0HDFKDP DQG %RWHOOR ZHUH WR EH KHOG WKHHQWU\RIWKHJXLOW\SOHDFRPSOHWHGWKHLQFULPLQDWLRQRIWKH DFFRXQWDEOH IRU DOO QDUFRWLFV FKDQQHOHG WKURXJK WKH GHIHQGDQWWKXVH[WLQJXLVKLQJWKHSULYLOHJHl,GDW7KH FRQVSLUDF\,QGRLQJVRWKHFRXUWHUUHG &RXUW VWDWHG m>Z@KHUH D VHQWHQFH KDV \HW WR EH LPSRVHG KRZHYHUWKLV&RXUWKDVDOUHDG\UHMHFWHGWKHSURSRVLWLRQWKDW ,G,WZDVWKHIDLOXUHRIWKHGLVWULFWFRXUWWRGLIIHUHQWLDWH µLQFULPLQDWLRQLVFRPSOHWHRQFHJXLOWKDVEHHQDGMXGLFDWHGjl EHWZHHQ FRFRQVSLUDWRUV QRW WKH UHOLDQFH XSRQ WKH ,GTXRWLQJ(VWHOOHY6PLWK86 8QLWHG6WDWHVY6PLWK 1R 1R 8QLWHG6WDWHVY6PLWK FRQFHGHDORQJZLWK0U+XGVRQWKDWQHLWKHUWKHYLGHR &DUWHU ULJKWIXOO\ LQYRNHG KLV )LIWK $PHQGPHQW ULJKW QRUWKHDXGLRWDSHVDUHDPRGHORIFODULW\+RZHYHU, DJDLQVW LQFULPLQDWLRQ HYHQ WKRXJK KH KDG DOUHDG\ EHHQ FHUWDLQO\FRXOGPDNHRXWWKHQDPHm0LFKDHOlIURP0U VHQWHQFHG:HKHOGLQ,Q%DQN2QHRI&OHYHODQG1$Y 2JOHVE\LQUHVSRQVHWRWKHTXHVWLRQmZKRLVXSWKHUHl $EEH WKDW m>D@OWKRXJK D GHIHQGDQW SOHDGLQJ JXLOW\ WR DQ IURPWKHFRQILGHQWLDOLQIRUPDQW RIIHQVHZDLYHVWKHFRQVWLWXWLRQDOSULYLOHJHZLWKUHJDUGWRWKH RIIHQVH DGPLWWHG KH GRHV QRW WKHUHE\ VXEPLW µD EODQNHW 7KHRIILFHUZKRWHVWLILHG$JHQW:DWWVLQGLFDWHGWKDW ZDLYHUDVWRRWKHURIIHQVHVWKDWPLJKWIRUPWKHEDVLVRIODWHU KH NQHZ 0LFKDHO 6PLWK NQHZ KLV YRLFH VDZ KLP FKDUJHVjlUHJDUGOHVVRIWKHGHIHQGDQWjVVHQWHQFLQJVWDWXV WKURXJK D SDLU RI ELQRFXODUV ZKLFK JDYH KLP D EHWWHU )GWK&LUFLWDWLRQRPLWWHGLQ$EEH YLHZ RI WKH SHUVRQ LQ WKH ZLQGRZ ZLWK WKH GLVWLQFWLYH TXRWLQJ8QLWHG6WDWHVY6HDYHU)GWK&LU \HOORZKDWDQGDOVRUHFRJQL]HGKLVYRLFH 7KLV&RXUWjVUHDVRQLQJZDVEDVHGXSRQWKHSRWHQWLDO IRUODWHUFKDUJHVQRWDQHQKDQFHGVHQWHQFH7KLV&RXUWGLG 7KHTXDOLW\RIWKHWDSHLVSRRUDQGWKHVSHHGYDULHVVR JR RQ WR FRQVLGHU WKH HIIHFW RI WKH GHIHQGDQWjV SRWHQWLDO WKDWDWWLPHVWKHYRLFHVRXQGVPRUHOLNH0LFNH\0RXVH WHVWLPRQ\RQKLVVHQWHQFLQJDQGMRLQHGWKHRWKHUFLUFXLWVLQ WKDQLWGRHVDQ\ERG\HOVHWKDQDQ\RIXVWKLQNNQRZLQ KROGLQJ WKDW )LIWK $PHQGPHQW VHOILQFULPLQDWLRQ ULJKWV UHDOOLIH%XW,VWLOOEHOLHYHWKDWWKHDJHQWjVWHVWLPRQ\ZDV mFRQWLQXHLQIRUFHXQWLOVHQWHQFLQJl,GDW FUHGLEOH LQ WKDW KH VDLG KH UHFRJQL]HG 0LFKDHO ERWK YLVXDOO\DQGRQWKHWDSH+HDOVRLQGLFDWHGWKDWKHGRHV 7KHGLVWULFWFRXUWGLGQRWHUULQDOORZLQJ&DUWHUWRDVVHUWKLV NQRZWKHVRFDOOHGmIDWPDQl&RUQHOLXV2JOHWUHHERWK )LIWK $PHQGPHQW SULYLOHJH DJDLQVW VHOILQFULPLQDWLRQ DW E\VLJKWDQGZRXOGUHFRJQL]HKLVYRLFHDQGWKDWKHGLG 'HIHQGDQW6PLWKjVVHQWHQFLQJ7KH'&&LUFXLWKHOGLQ QRWVHHKLPRUKHDUKLPLQWKHFRXUVHRIWKLVWUDQVDFWLRQ 3DUGRWKDWWKHSULYLOHJHDJDLQVWVHOILQFULPLQDWLRQLVORVWRQFH DZLWQHVVKDVEHHQFRQYLFWHGRIWKHRIIHQVHZLWKUHVSHFWWR $QG 0U 6PLWK KDV QRW DGGXFHG DQ\ WHVWLPRQ\ RU ZKLFK KH IHDUV LQFULPLQDWLRQ DV ZHOO DV ZKHQ D ZLWQHVV HYLGHQFH WR FRQWUDGLFW $JHQW :DWWV $QG ZKLOH 0U SOHDGV JXLOW\ WR WKH RIIHQVH LQ TXHVWLRQ UDWKHU WKDQ EHLQJ +XGVRQ>GHIHQVHDWWRUQH\@KDVPDGHDQKHURLFDWWHPSWWR FRQYLFWHGDWWULDO6HH3DUGR)GDW7KHSULYLOHJH DWWDFN $JHQW :DWWVjV FUHGLELOLW\ RU REVHUYDWLRQV DJDLQVWVHOILQFULPLQDWLRQLVDOVRORVWZKHUHFKDUJHVRUFRXQWV QHYHUWKHOHVV,WKLQNZLWKRXWVXFFHVV RIDQLQGLFWPHQWDUHGLVPLVVHGDVSDUWRIDSOHDDJUHHPHQW ,G 7KH FRXUW UHDVRQHG WKDW m>V@LQFH SURPLVHV WR GLVPLVV , DP VDWLVILHG DW OHDVW E\ D SUHSRQGHUDQFH RI WKH FKDUJHV DV SDUW RI D SOHD DJUHHPHQW DUH ELQGLQJ RQ WKH HYLGHQFHDQGDFWXDOO\SUREDEO\PRUHWKDQWKDWWKDW0U *RYHUQPHQWDZLWQHVVPD\QRWEHH[SRVHGWRSURVHFXWLRQRQ 6PLWKZDVLQYROYHGLQWKLVWUDQVDFWLRQ WKRVH FKDUJHV DQG WKH QHHG IRU WKH SULYLOHJH LV ORVWl ,G 7KHUHIRUH D FRGHIHQGDQW FRXOG QRW LQYRNH KLV )LIWK s$DW $PHQGPHQWULJKWUHJDUGLQJWKHHYHQWVZKLFKVXUURXQGHGD 2QDSSHDO'HIHQGDQW6PLWKDUJXHVWKDWWKHGLVWULFWFRXUW GUXJWUDQVDFWLRQEHFDXVHWKHFRGHIHQGDQWKDGDOUHDG\HQWHUHG VKRXOGQRWKDYHUHOLHGXSRQWKHDXGLRWDSH'HIHQGDQW6PLWK LQWR D SOHD DJUHHPHQW ZLWK WKH JRYHUQPHQW UHJDUGLQJ WKH FRQWHQGVWKDWEHFDXVHWKHTXDOLW\RIWKHDXGLRWDSHLVSRRUWKH WUDQVDFWLRQ,GDWm$WWKHVDPHWLPHLWLVHTXDOO\ QDPHm0LNHlRUm0LFKDHOlLVKDUGWRGLVFHUQIURPWKHWDSH WUXHWKDWDZLWQHVVGRHVQRWORVHKLV)LIWK$PHQGPHQWULJKWWR 'HIHQGDQW6PLWKDVVHUWVWKDWWKHUHLVQRWKLQJWRVKRZWKDW UHIXVHWRWHVWLI\FRQFHUQLQJRWKHUPDWWHUVRUWUDQVDFWLRQVQRW 'HIHQGDQW6PLWKLVWKHm0LNHlLQTXHVWLRQ,WLV'HIHQGDQW LQFOXGHG LQ KLV FRQYLFWLRQ RU SOHD DJUHHPHQWl ,G DW 6PLWKjVSRVLWLRQWKDWWKHZRUGmIDWlZKLFKFDQEHKHDUGRQ m3OHDGLQJJXLOW\WRDFULPHGRHVQRWZDLYHWKHSULYLOHJHQRW 8QLWHG6WDWHVY6PLWK 1R 1R 8QLWHG6WDWHVY6PLWK WRLQFULPLQDWHRQHVHOIDWRWKHUWLPHVLQRWKHUFULPHVDQ\PRUH IRU ZKLFK WKH GHIHQGDQW LV PRUH OLNHO\ WKDQ QRW DFWXDOO\ WKDQFRQYLFWLRQRIRQHFULPHHUDVHVWKHSULYLOHJHDVLWUHODWHV UHVSRQVLEOHl ,G FLWDWLRQV DQG LQWHUQDO TXRWDWLRQV PDUNV WRRWKHUVl RPLWWHG m7KH VHQWHQFLQJ FRXUWjV UHOHYDQW FRQGXFW DSSUR[LPDWLRQ PXVW EH EDVHG RQ UHOLDEOH LQIRUPDWLRQ DQG &DUWHUjV WHVWLPRQ\ UHJDUGLQJ WKH 1RYHPEHU VXSSRUWHGE\DSUHSRQGHUDQFHRIWKHHYLGHQFHl,GFLWLQJ LQFLGHQWWRZKLFKKHSOHDGHGJXLOW\SRWHQWLDOO\VXEMHFWHGKLP 866*$D WRRWKHUFKDUJHVVXFKDVSHUMXU\RUREVWUXFWLRQRIMXVWLFHLIWKH WHVWLPRQ\ZDVRIDVHOILQFULPLQDWLQJQDWXUHHVSHFLDOO\VLQFH 7KH GLVWULFW FRXUW IRXQG E\ D SUHSRQGHUDQFH RI WKH &DUWHUKDGSUHYLRXVO\UHSUHVHQWHGWKDW&RUQHOLXV2JOHWUHHQRW HYLGHQFHWKDWWKHJUDPVRIFRFDLQHUHFRYHUHGIURPWKH 'HIHQGDQW6PLWKZDVWKHRWKHUSHUVRQZKRSDUWLFLSDWHGLQ 1RYHPEHU GUXJ WUDQVDFWLRQ ZDV DWWULEXWDEOH WR WKH 1RYHPEHU WUDQVDFWLRQ (YHQ XQGHU 3DUGR 'HIHQGDQW6PLWK7KHFRXUWjVGHWHUPLQDWLRQZDVEDVHGXSRQ 'HIHQGDQW6PLWKjVDUJXPHQWRQWKLVLVVXHIDLOV WKHWHVWLPRQ\RI2IILFHU:DWWVDQRIILFHUZKRZRUNHGZLWK WKH 0(7 2IILFHU :DWWV WHVWLILHG WKDW KH ZDV SHUVRQDOO\ % 6PLWKjV5HVSRQVLELOLW\IRU$GGLWLRQDO*UDPVRI IDPLOLDU ZLWK 'HIHQGDQW 6PLWK DQG &RUQHOLXV 2JOHWUHH &UDFN&RFDLQH 2IILFHU:DWWVNQHZWKDW'HIHQGDQW6PLWKOLYHGDW:DOQXW 6WUHHW:DWWVKDGXVHGELQRFXODUVWRREVHUYHWKH1RYHPEHU m:KHQUHYLHZLQJDGLVWULFWFRXUWjVVHQWHQFLQJGHFLVLRQWKLV HQFRXQWHU ZLWK 'HIHQGDQW 6PLWK DW :DOQXW FRXUWZLOOGLVWXUEWKHXQGHUO\LQJIDFWXDOILQGLQJVRQO\LIWKH\ 2IILFHU:DWWVDOVRKHDUGWKHLQIRUPDQWDQG'HIHQGDQW6PLWK DUHFOHDUO\HUURQHRXVl8QLWHG6WDWHVY+LOO)G DUUDQJHWKHSXUFKDVHRIRQHKDOIRXQFHRIFUDFNFRFDLQHIRU WK &LU FLWLQJ 86& H 8QLWHG WKURXJKDQDXGLRUHFRUGLQJGHYLFH7KHLQIRUPDQWZDV 6WDWHVY+DPLOWRQ)GWK&LUVHH WROGWRUHWXUQWR:DOQXWLQDSSURSULDWHO\WKLUW\PLQXWHV 8QLWHG6WDWHVY0HDFKDP)GWK&LU KRZHYHU2IILFHU:DWWVZDVXQDEOHWRREVHUYHWKHLQWHUDFWLRQ UHYLHZLQJ D GLVWULFW FRXUWjV IDFWXDO ILQGLQJV UHJDUGLQJ WKH EHFDXVHKHZDVXQDEOHWRSRVLWLRQKLPVHOIDWWKHVXUYHLOODQFH DPRXQW RI QDUFRWLFV DWWULEXWDEOH WR D GHIHQGDQW IRU FOHDU SRLQW$OWKRXJKKHZDVXQDEOHWRVHHWKHWUDQVDFWLRQ2IILFHU HUURU $ ILQGLQJ RI IDFW LV FOHDUO\ HUURQHRXV ZKHQ :DWWV ZDV DEOH WR KHDU WKH FRQYHUVDWLRQ EHWZHHQ WKH mµDOWKRXJKWKHUHLVHYLGHQFHWRVXSSRUWLWWKHUHYLHZLQJFRXUW LQIRUPDQWDQG'HIHQGDQW6PLWKWKURXJKWKHDXGLRUHFRUGLQJ RQ WKH HQWLUH UHFRUG LV OHIW ZLWK WKH GHILQLWH DQG ILUP GHYLFH2IILFHU:DWWVWHVWLILHGWKDWKHKHDUGWKHYRLFHVRIWKH FRQYLFWLRQ WKDW D PLVWDNH KDV EHHQ FRPPLWWHGjl 8QLWHG LQIRUPDQW'HIHQGDQW6PLWKDQG&DUWHUDVWKH\DWWHPSWHGWR 6WDWHVY*RUW'L'RQDWR)GWK&LU ZHLJK WKH FRFDLQH 2IILFHU :DWWV DOVR KHDUG DQRWKHU FR TXRWLQJ 8QLWHG 6WDWHV Y 3HUH] )G WK &LU GHIHQGDQWs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m:KHUH WKH DPRXQW LV ,DPVDWLVILHGE\DSUHSRQGHUDQFHRIWKHHYLGHQFHWKDW XQFHUWDLQWKHFRXUWLVXUJHGWRHUURQWKHVLGHRIFDXWLRQDQG 0U 6PLWKZDVLQYROYHGLQWKLVWUDQVDFWLRQ,KDYHWR RQO\KROGWKHGHIHQGDQWUHVSRQVLEOHIRUWKHTXDQWLW\RIGUXJV