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jVSHWLWLRQ 1$785$/,=$7,21 6(59,&( IRUUHYLHZ 5HVSRQGHQW 1 2Q3HWLWLRQIRU5HYLHZRIDQ2UGHURIWKH%RDUGRI ,PPLJUDWLRQ$SSHDOV 1R$ 6XEPLWWHGsXQH 'HFLGHGDQG)LOHG$XJXVW %HIRUH0$57,1&KLHIsXGJH1255,6&LUFXLWsXGJH 48,67'LVWULFWsXGJH 7KH +RQRUDEOH *RUGRQ s 4XLVW 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH :HVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ .ROLDGDY,16 1R 1R .ROLDGDY,16 BBBBBBBBBBBBBBBBB WROLYHSHDFHIXOO\LQWKH8NUDLQHDQGWKDWKLVZLIHFRQWLQXHV WREHDSXEOLFVFKRROWHDFKHULQWKDWFRXQWU\7KHLUIHDURI &2816(/ FULPH LQWKH8NUDLQHDQG.ROLDGDjVIHDUVRIHFRQRPLFDQG HQYLURQPHQWDOSUREOHPVDUHOHJLWLPDWHEXWDUHQRWUHOHYDQWWR 21%5,()&KDUOHV+.XFN/,77/(50(1'(/621 KLVIHDURIIXWXUHSROLWLFDOSHUVHFXWLRQ $WODQWD *HRUJLD IRU 3HWLWLRQHU .ULVWHQ $ *LXIIUHGD 81,7(' 67$7(6 '(3$570(17 2) s867,&( ,QRUGHUWRUHYHUVHWKHLPPLJUDWLRQMXGJHjVGHWHUPLQDWLRQ ,00,*5$7,21 /,7,*$7,21 &,9,/ ',9,6,21 RQWKLVLVVXHZKLFKWKH%RDUGDGRSWHGZHPXVWGHFLGHWKDW :DVKLQJWRQ '& $QK7KX 3 0DL 81,7(' 67$7(6 WKH HYLGHQFH ZRXOG FRPSHO D UHDVRQDEOH IDFWILQGHU WR '(3$570(172)s867,&(2)),&(2)/,7,*$7,21 FRQFOXGH WKDW WKHUH LV D UHDVRQDEOH FKDQFH RI .ROLDGD &,9,/',9,6,21:DVKLQJWRQ'&IRU5HVSRQGHQW VXIIHULQJ IXWXUH SHUVHFXWLRQ LI KH ZHUH WR UHWXUQ WR WKH 8NUDLQH &)5 E 6HH DOVR BBBBBBBBBBBBBBBBB 0LNKDLOHYLWFK)GDWDIILUPLQJWKH%RDUGj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lIRULQIRUPDWLRQLQSROLWLFDOFRQGLWLRQVLQ PLOLWLDLQWHUURJDWHGKLVIDPLO\DERXWKLVIDWKHUjVDFWLYLWLHVDQG IRUHLJQFRXQWULHV VHDUFKHG IRU DQWLFRPPXQLVW OLWHUDWXUH LQ KLV KRPH +LV IDWKHUZKRGLGQRWSDUWLFLSDWHLQELDQQXDOPDQGDWRU\UDOOLHV %XW WKHVH SURILOHV DQG UHSRUWV KDYH EHHQ DWWDFNHG IRUWKHFRPPXQLVWSDUW\ZDVDUUHVWHGDQGH[LOHGWR6LEHULD VRPHWLPHVHYHQE\WKHVDPHRSLQLRQVWKDWKDYHSUDLVHGWKHP IRUWZR\HDUVEHJLQQLQJLQ 6HH *RQDKDVD )G DW m,W LV WUXH WKDW 6WDWH 'HSDUWPHQWUHSRUWVPD\EHIODZHGDQGWKDWSULYDWHJURXSVRU .ROLDGDH[SHULHQFHGSHUVRQDOLQWLPLGDWLRQE\JRYHUQPHQW QHZVRUJDQL]DWLRQVRIWHQYRLFHFRQIOLFWLQJYLHZVl*DLOLXV DXWKRULWLHVDVZHOO,QKHZDVVLQJOHGRXWE\PLOLWLD )GDWQRWLQJWKDWWKH6WDWH'HSDUWPHQWjVDGYLFHLV PHPEHUVIRUDWWHQGLQJ(DVWHUFKXUFKVHUYLFHVDQGWROGWKDW QRWELQGLQJ*UDPDWLNRYY,16)GWK&LU GRLQJVRMHRSDUGL]HGKLVFKDQFHVRIJRLQJWRFROOHJH.ROLDGD m7KHUH LV SHUHQQLDO FRQFHUQ WKDW WKH 'HSDUWPHQW ZDVDOVRWKUHDWHQHGZLWKH[SXOVLRQIURPFROOHJHLQIRU VRIWSHGDOVKXPDQULJKWVYLRODWLRQVE\RWKHUFRXQWULHVWKDWWKH IDLOLQJWRDWWHQGDFRPPXQLVWUDOO\:KLOHVHUYLQJDWKUHH 8QLWHG6WDWHVZDQWVWRKDYHJRRGUHODWLRQVZLWKl$OVRWKH PRQWK VWLQW LQ WKH 6RYLHW $UP\ WKDW ZDV D SUHUHTXLVLWH WR 6WDWH'HSDUWPHQWjV2IILFHRI$V\OXP$IIDLUVSURGXFHGWKH JUDGXDWLRQ KH WULHG WR NHHS KLV FRPPDQGLQJ RIILFHU IURP SURILOH LQ WKLV FDVH VSHFLILFDOO\ IRU WKH 6HUYLFH QRW IRU WKH EHDWLQJ D IULHQG LQ KLV XQLW 7KH FRPPDQGHU VHQW KLP WR 6WDWH 'HSDUWPHQWjV RZQ GLSORPDWLF EXVLQHVV ,W VWDQGV WR PLOLWDU\SULVRQIRUVHYHQGD\VRIODERU$IWHUFRPSOHWLQJKLV UHDVRQWKDWDUHSRUWSURGXFHGE\RQHH[HFXWLYHGHSDUWPHQWWR HGXFDWLRQLQKHEHJDQZRUNLQJDVDQHQJLQHHUZLWKD DLGWKHOLWLJDWLRQRIDQRWKHUH[HFXWLYHGHSDUWPHQWZRXOGRIWHQ JRYHUQPHQWEXVLQHVVLQ3ROWDYD6RRQDIWHUWKH.*%EHJDQ VXSSRUWWKHVHFRQGGHSDUWPHQWjVSRLQWRIYLHZ5HJDUGOHVV FKHFNLQJ XS RQ .ROLDGD DQG TXHVWLRQLQJ KLV IULHQGV ZKR WKH VWDQGDUG RI UHYLHZ GLFWDWHV PXFK RI WKH LQTXLU\ KHUH ZHUH UHQRZQHG DQWLFRPPXQLVWV 6RYLHW DXWKRULWLHV KDG ZKLFKLVWRGHFLGHZKHWKHUVXEVWDQWLDOHYLGHQFHVXSSRUWVWKH SHUVHFXWHGWZRRIKLVIULHQGVIRUWKHLUSROLWLFDOEHOLHIV %RDUGjVGHFLVLRQ $OWKRXJKKHZDVQHYHULPSULVRQHGWKHFRPPXQLVWPLOLWLD 7KHLPPLJUDWLRQMXGJHIRXQGLWVLJQLILFDQWWKDWWKHSROLWLFDO WRRNKLPLQWRFXVWRG\VHYHUDOWLPHVEHFDXVHRIKLVSROLWLFDO JURXS .ROLDGD VXSSRUWHG LQ LV QRZ LQ FKDUJH RI WKH YLHZV ,Q WKH PLOLWLD SXW KLP XQGHU KRXVH DUUHVW IRU JRYHUQPHQW LQ WKH 8NUDLQH ,Q 3UHVLGHQW /HRQLG WKUHHPRQWKVZLWKRUGHUVQRWWROHDYHKLVKRXVHIURP .XFKPD ZDV HOHFWHG E\ SRSXODU YRWH LQ ZKDW WKH 6WDWH SPXQWLODP1RH[SODQDWLRQDFFRPSDQLHGWKHRUGHU 'HSDUWPHQWEHOLHYHVZDVDIDLUHOHFWLRQ7KHSURILOHQRWHG 7KHPLOLWLDGLVFRQQHFWHG.ROLDGDjVWHOHSKRQHDWWKLVSRLQWDV WKDW WKH 8NUDLQH KDV mVHHQ WKH HPHUJHQFH RI D PXOWLSDUW\ ZHOO V\VWHPUHIOHFWLQJDEURDGUDQJHRISROLWLFDOYLHZSRLQWVlLQWKH SRVWLQGHSHQGHQFHSHULRG$OWKRXJKWKH6HFXULW\6HUYLFHRI ,Q.ROLDGDMRLQHGWKH8NUDLQLDQ6RFLDO*URXSLQD 8NUDLQH WKH UHLQFDUQDWLRQ RI WKH .*% LQ WKDW FRXQWU\ KXQJHUVWULNHWRSURWHVWSROLWLFDOO\PRWLYDWHGDUUHVWVRIVRPH SUREDEO\KDUERUVVRPHLQGLYLGXDOVZKRZRXOGQRWWROHUDWH JURXSPHPEHUV7KHPLOLWLDDUUHVWHG.ROLDGDDQGVHDUFKHG SROLWLFDOGLVVHQWWKH6WDWH'HSDUWPHQWSURILOHVXJJHVWVWKDW KLVKRXVHRQs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jV SDLGILQHV FRXQWU\mKDYHFKDQJHGWRVXFKDQH[WHQWWKDWWKHDSSOLFDQWQR ORQJHUKDVDZHOOIRXQGHGIHDURIEHLQJSHUVHFXWHGZHUHKHWR 7KH 8NUDLQLDQ SDUOLDPHQW SDVVHG D GHFODUDWLRQ RI UHWXUQl,G VRYHUHLJQW\ LQ sXO\ DQG LQ $XJXVW GHFODUHG 8NUDLQH LQGHSHQGHQW RI WKH 6RYLHW 8QLRQ 7KH 8NUDLQH EHFDPH D 7KHLPPLJUDWLRQMXGJHDFFHSWHGWKH6HUYLFHjVVWLSXODWLRQ FKDUWHUPHPEHURIWKH&RPPRQZHDOWKRI,QGHSHQGHQW6WDWHV WKDW .ROLDGD KDG VXIIHUHG SDVW SHUVHFXWLRQ LQ WKH 8NUDLQH ZLWK WKH UDWLILFDWLRQ RI WKH %HORY]KVNRH $JUHHPHQW LQ .ROLDGDFRQWHQGVWKDWWKHSXQLVKPHQWUHFHLYHGDWWKHKDQGVRI 'HFHPEHU/HRQLG.UDYFKXNDIRUPHU&RPPXQLVWWXUQHG WKH8NUDLQLDQPLOLWLDFRPSHOVDFRQFOXVLRQWKDWKHZRXOGEH QDWLRQDOLVW EHFDPH 8NUDLQHjV ILUVW SUHVLGHQW .ROLDGD SHUVHFXWHG XSRQ UHWXUQLQJ WR WKDW FRXQWU\ +RZHYHU WKH FRQWLQXHGKLVDQWLFRPPXQLVWDFWLYLWLHV MXGJH IRXQG DQG WKH %RDUG DJUHHG WKDW WKH 6HUYLFH KDG FDUULHG LWV EXUGHQ RI HVWDEOLVKLQJ WKDW FRQGLWLRQV LQ WKH 7ZRPLOLWLDRIILFHUVWRRN.ROLDGDWRDORFDOPLOLWLDVWDWLRQ 8NUDLQH KDG FKDQJHG HQRXJK WKDW .ROLDGDjV UHWXUQ ZRXOG LQ 0DUFK DQG WROG KLP WKDW LI KH FRQWLQXHG ZLWK KLV FDXVHKLPQRZHOOIRXQGHGIHDURISHUVHFXWLRQ SROLWLFDODFWLYLWLHVKLVIDPLO\ZRXOGEHNLOOHG7KHVHRIILFHUV WROG.ROLDGDWKDWDOWKRXJKWKHJRYHUQPHQWRIILFLDOVjWLWOHVKDG ,Q PDNLQJ WKLV GHWHUPLQDWLRQ WKH MXGJH FRQVLGHUHG WKH FKDQJHG WKH\ ZHUH WKH VDPH SHRSOH DV EHIRUH DQG ZRXOG VWDWHPHQWV.ROLDGDVHWIRUWKLQKLVDSSOLFDWLRQKLVWHVWLPRQ\ HQIRUFHVLPLODUSROLFLHV7KHRIILFHUVWKHQSXQFKHGKLPLQWKH DWWKHKHDULQJDQGWKH6WDWH'HSDUWPHQWjV8NUDLQH3URILOH IDFHDQGUHOHDVHGKLP DPRQJRWKHUSLHFHVRIHYLGHQFH2WKHUFLUFXLWVKDYHKHOGWKDW 6WDWH 'HSDUWPHQW UHSRUWV RQ RWKHU FRXQWULHV DUH HQWLWOHG WR ,Q)HEUXDU\DIULHQGJDYH.ROLDGDVRPHGRFXPHQWV VLJQLILFDQWGHIHUHQFHZKHQDVVHVVLQJFRQGLWLRQVWKHUH6HH LQGLFDWLQJSURRIRIJRYHUQPHQWRZQHGEXVLQHVVHVjSD\PHQWV *RQDKDVD Y ,16 )G WK &LU WRRUJDQL]HGFULPLQDOV2Q0DUFKPLOLWLDRIILFHUVDUUHVWHG GHVFULELQJWKHVHUHSRUWVDVmKLJKO\SUREDWLYHHYLGHQFHLQD KLP DQG LQWHUURJDWHG KLP DERXW WKHVH GRFXPHQWV :KHQ ZHOOIRXQGHGIHDUFDVH0DUFXY,16)G .ROLDGDGHQLHGNQRZOHGJHRIWKHSDSHUVRQHRIWKHRIILFHUV WK&LUQRWLQJWKDWUHOLDQFHRQWKHVHUHSRUWVmPDNHV SXQFKHG KLP LQ WKH DEGRPHQ XQWLO KH ORVW FRQVFLRXVQHVV VHQVHEHFDXVHWKLVLQTXLU\LVGLUHFWO\ZLWKLQWKHH[SHUWLVHRI :KHQKHUHWXUQHGWRKLVDSDUWPHQWKHIRXQGWKDWLWKDGEHHQ WKH'HSDUWPHQWRI6WDWHl*DLOLXVY,16)G UDQVDFNHGDQGWKHGRFXPHQWVZHUHPLVVLQJ VW &LU QRWLQJ WKDW 6WDWH 'HSDUWPHQW RSLQLRQV mUHFHLYHFRQVLGHUDEOHZHLJKWLQWKHFRXUWVEHFDXVHRIWKH 7ZR \HDUV DIWHU WKLV ILQDO HQFRXQWHU ZLWK WKH 8NUDLQLDQ 'HSDUWPHQWjVH[SHUWLVHl5RMDVY,16)GQ PLOLWLDDSHQSDOLQYLWHGKLPWRYLVLW&OHYHODQG7HQQHVVHH WK &LU FDOOLQJ WKH 6WDWH 'HSDUWPHQW D mUHODWLYHO\ .ROLDGDHQWHUHGWKH8QLWHG6WDWHVRQ0DUFKDVD QRQLPPLJUDQW YLVLWRU ZLWK DXWKRUL]DWLRQ WR UHPDLQ XQWLO 0DUFK $Q DSSOLFDQW PD\ DOVR HVWDEOLVK D ZHOOIRXQGHG IHDU RI SHUVHFXWLRQ ZLWKRXW UHIHUHQFH WR SDVW SHUVHFXWLRQ E\ GHPRQVWUDWLQJ WKH HOHPHQWV RXWOLQHGLQ &)5 EL WKRXJK WKLV PHWKRG GRHV QRW EHDU RQ .ROLDGDjV FDVH .ROLDGDY,16 1R 1R .ROLDGDY,16 FRQVLGHUHG DV D ZKROHjl ,16 Y (OLDV=DFDULDV 86 %2WKHU7HVWLPRQ\ TXRWLQJ86&DD8QGHUWKLV GHIHUHQWLDO VWDQGDUG ZH PD\ QRW UHYHUVH WKH %RDUGjV sLPP\:LOOLDPV%XUQVDPXVLFSURIHVVRUDW/HH&ROOHJHLQ GHWHUPLQDWLRQ VLPSO\ EHFDXVH ZH ZRXOG KDYH GHFLGHG WKH &OHYHODQG 7HQQHVVHH WHVWLILHG RQ .ROLDGDjV EHKDOI DW KLV PDWWHUGLIIHUHQWO\0LNKDLOHYLWFKY,16)G KHDULQJ EDVHG RQ %XUQVjV YLVLWV WR WKH 8NUDLQH DQG KLV WK&LU.ODZLWWHUY,16)GWK FRQWLQXHG FRQWDFW ZLWK WHDFKHUV DW D VFKRRO LQ 3ROWDYD &LU ,Q RUGHU WR UHYHUVH WKH %RDUGjV IDFWXDO 8NUDLQH +H VWDWHG WKDW D WHDFKHUDQG VWXGHQWH[FKDQJH GHWHUPLQDWLRQV ZH PXVW ILQG WKDW WKH HYLGHQFH mQRW RQO\ SURJUDPKDGDOORZHGKLPWRYLVLWDQGZRUNLQWKH8NUDLQHIRU VXSSRUWV D FRQWUDU\ FRQFOXVLRQ EXW LQGHHG FRPSHOV LWl VL[ZHHNVLQDQGDJDLQLQ%XUQVDOVRWHVWLILHGWKDW .ODZLWWHU)GDW7KH6XSUHPH&RXUWKDVH[SODLQHG KH EHOLHYHG .ROLDGD PLJKW EH VXEMHFW WR LQWLPLGDWLRQ LI KH WKDWWKHDSSURSULDWHLQTXLU\LVZKHWKHUWKHHYLGHQFHmZDVVXFK ZHUH WR UHWXUQ WR 3ROWDYD SHUKDSV PRUH VR WKDQ LQ PRUH WKDWDUHDVRQDEOHIDFWILQGHUZRXOGKDYHWRFRQFOXGHWKDWWKH FRVPRSROLWDQFLWLHVVXFKDV2GHVVDRU.LHY UHTXLVLWHIHDURISHUVHFXWLRQH[LVWHGl(OLDV=DFDULDV 86DW &7KH6WDWH'HSDUWPHQWjV$VVHVVPHQWRIWKH8NUDLQH '$V\OXP 7KH LPPLJUDWLRQ MXGJH DGPLWWHG WKH 86 6WDWH 'HSDUWPHQWjVsXQH8NUDLQH3URILOHRI$V\OXP&ODLPV 7KH$WWRUQH\*HQHUDOKDVGLVFUHWLRQXQGHUWKH,PPLJUDWLRQ DQG&RXQWU\&RQGLWLRQVLQWRHYLGHQFH7KH8NUDLQHSURILOH DQG1DWLRQDOLW\$FWWRJUDQWDV\OXPWRDmUHIXJHHl86& LQGLFDWHVLQLWVRYHUYLHZWKDWWKH8NUDLQHFRQWLQXHGWRPDNH D7KH$FWGHILQHVDUHIXJHHDVDQDOLHQZKRLV SURJUHVV LQ WKH REVHUYDWLRQ RI KXPDQ ULJKWV m5HSRUWV RI XQDEOHRUXQZLOOLQJWRUHWXUQWRKLVKRPHFRXQWU\mEHFDXVHRI KXPDQ ULJKWV YLRODWLRQV DOUHDG\ ORZ GHFUHDVHG >EHWZHHQ SHUVHFXWLRQRUDZHOOIRXQGHGIHDURISHUVHFXWLRQRQDFFRXQW DQG@lWKHSURILOHUHDGVm*RYHUQPHQWUHVWULFWLRQV RIUDFHUHOLJLRQQDWLRQDOLW\PHPEHUVKLSLQDSDUWLFXODUVRFLDO RQ IUHHGRP RI UHOLJLRQ DQG FXOWXUDO H[SUHVVLRQ KDYH EHHQ JURXS RU SROLWLFDO RSLQLRQl 86& D$ ODUJHO\OLIWHGDQGWKH&RPPXQLVW3DUW\ZKRVHKHDY\KDQG 'LVSRVLWLRQRIDQDSSOLFDWLRQIRUDV\OXPUHTXLUHVD DQGWRWDOLWDULDQLGHRORJ\ZHUHSHUYDVLYHLQ8NUDLQLDQOLIHQR WZRVWHSLQTXLU\DVNLQJZKHWKHUWKHDSSOLFDQWTXDOLILHV ORQJHUUXOHVWKHFRXQWU\l7KHSURILOHQRWHVKRZHYHUWKDW DV D mUHIXJHHl DV GHILQHG LQ 6HFWLRQ D$ DQG SUREOHPV UHPDLQ LQFOXGLQJ EHDWLQJV E\ SROLFH DQG SULVRQ ZKHWKHU WKH DSSOLFDQW mPHULWV D IDYRUDEOH H[HUFLVH RI RIILFLDOVXQUHIRUPHGOHJDODQGSULVRQV\VWHPVGLVFULPLQDWLRQ GLVFUHWLRQE\WKH$WWRUQH\*HQHUDOl0LNKDLOHYLWFK)G DJDLQVWZRPHQVRFLHWDODQWL6HPLWLVPDQGHWKQLFWHQVLRQV DWTXRWLQJ3HUNRYLFY,16)GWK&LU EHWZHHQ 5XVVLDQV DQG 7DWDUV LQ WKH &ULPHD 7KH 6WDWH 'HSDUWPHQWSURILOHDOVRUHFRJQL]HVWKDWWKHSHUVRQQHORIWKH IRUPHU .*% QRZ QDWLRQDOL]HG DQG UHQDPHG WKH 6HFXULW\ $QDSSOLFDQWIRUDV\OXPEHDUVWKHEXUGHQRIHVWDEOLVKLQJ 6HUYLFHRI8NUDLQHKDVFKDQJHGOLWWOHVLQFHDQGPD\ WKDWKHTXDOLILHVDVDUHIXJHHmHLWKHUEHFDXVHKHKDVVXIIHUHG VWLOOQRWWROHUDWHSROLWLFDOGLVVHQW6WLOOWKHSURILOHVD\VWKHVH DFWXDOSDVWSHUVHFXWLRQRUEHFDXVHKHKDVDZHOOIRXQGHGIHDU LQGLYLGXDOV SUHVHQW QR UHDO WKUHDW RI PLVWUHDWPHQW WR WKRVH RIIXWXUHSHUVHFXWLRQl&)5DE7KH ZKRVXSSRUWHG8NUDLQLDQLQGHSHQGHQFHDWVRPHWLPHLQWKH DSSOLFDQWjV WHVWLPRQ\ LI FUHGLEOH mPD\ EH VXIILFLHQW WR SDVW VXVWDLQWKHEXUGHQRISURRIZLWKRXWFRUURERUDWLRQl&)5 D$QDSSOLFDQWZKRVDWLVILHVKLVEXUGHQRI 7KH 6WDWH 'HSDUWPHQW QRWHG WKDW DV 8NUDLQLDQ OHDGHUV HVWDEOLVKLQJ SDVW SHUVHFXWLRQ LV SUHVXPHG WR KDYH D ZHOO UHOXFWDQWO\ DFFHSWHG HOHPHQWV RI 0LNKDLO *RUEDFKHYjV OLEHUDOL]DWLRQRIWKH6RYLHW8QLRQLQWKHODWHVVRPHZKR .ROLDGDY,16 1R 1R .ROLDGDY,16 ZHUH GHWHUPLQHG WR UHVLVW FKDQJH EHFDPH PRUH IRUFHIXO LQ 7KH HIIHFWLYH GDWH IRU WKH QHZ MXULVGLFWLRQDO WKHLUGHWHUPLQDWLRQWRSUHVHUYHWKHVWDWXVTXR6WLOOm>W@KH SURYLVLRQVRIWKH5HIRUP$FWZDVmWKHILUVWGD\RIWKHILUVW SRVWLQGHSHQGHQFHSHULRGKDVVHHQWKHHPHUJHQFHRIDPXOWL PRQWKEHJLQQLQJPRUHWKDQGD\VlDIWHUWKH5HIRUP$FWjV SDUW\V\VWHPUHIOHFWLQJDEURDGUDQJHRISROLWLFDOYLHZSRLQWVl HQDFWPHQW ZKLFK KDSSHQHG RQ 6HSWHPEHU 3DUOLDPHQWDU\HOHFWLRQVLQZHUHDSSDUHQWO\FRQGXFWHG 7KHUHIRUH WKH HIIHFWLYH GDWH IRU WKH UHOHYDQW 5HIRUP $FW IDLUO\DQGm>W@KHUHLVQRHYLGHQFHWKDWUDQNDQGILOHPHPEHUV SURYLVLRQVZDV$SULO >RIGLIIHUHQWSROLWLFDOSDUWLHV@DUHEHLQJWDUJHWHGEHFDXVHRI WKHLUSROLWLFDOYLHZVl7KH6WDWH'HSDUWPHQWDWWULEXWHVWKH $GHSRUWDWLRQRUGHUEHFRPHVILQDOmXSRQGLVPLVVDORIDQ KLJK UDWH RI PLJUDWLRQ IURP WKH 8NUDLQH WR D GHSUHVVHG DSSHDOE\WKH%RDUGRI,PPLJUDWLRQ$SSHDOVlDPRQJRWKHU HFRQRP\DQGGDPDJHGHFRORJ\UDWKHUWKDQWRSROLWLFV ZD\V&)5$VWRFDVHVLQZKLFKDILQDO GHSRUWDWLRQRUGHUZDVILOHGDIWHU2FWREHUDQGZKLFK '3URFHGXUH ZHUH SHQGLQJ EHIRUH $SULO WKH 5HIRUP $FWjV WUDQVLWLRQDO UXOHV DSSO\ 7KH 5HIRUP $FWjV SHUPDQHQW .ROLDGDjVSHUPLVVLRQWRUHPDLQLQWKH8QLWHG6WDWHVH[SLUHG SURYLVLRQV SHUWDLQ WR UHPRYDO SURFHHGLQJV LQLWLDWHG E\ WKH RQ 0DUFK DQG RQ $SULO WKH ,PPLJUDWLRQ DQG 6HUYLFHRQRUDIWHU$SULO.DODZY,16)G 1DWXUDOL]DWLRQ 6HUYLFH RUGHUHG KLP WR VKRZ FDXVH ZK\ KH WK&LU VKRXOGQRWEHGHSRUWHG.ROLDGDWKHQILOHGDQDSSOLFDWLRQIRU DV\OXPDQGZLWKKROGLQJRIGHSRUWDWLRQDQGLQWKHDOWHUQDWLYH 7KH%RDUGLVVXHGDmILQDORUGHUlLQWKLVFDVHE\GLVPLVVLQJ YROXQWDU\ GHSDUWXUH ZKLFK WKH 6HUYLFH UHFHLYHG RQ .ROLDGDjV DSSHDO RQ 0DUFK ZHOO RXWVLGH WKH 1RYHPEHU2Q)HEUXDU\DIWHUDKHDULQJRQWKH WUDQVLWLRQZLQGRZEHWZHHQ2FWREHUDQG$SULO PHULWV RI KLV DSSOLFDWLRQ WKH LPPLJUDWLRQ MXGJH GHQLHG 7KHUHIRUHZHKDYHMXULVGLFWLRQRYHU.ROLDGDjVDSSHDO .ROLDGDjV DSSOLFDWLRQ IRU DV\OXP DQG ZLWKKROGLQJ RI IURPWKH%RDUGjVGHFLVLRQXQGHUWKH5HIRUP$FWjVSHUPDQHQW GHSRUWDWLRQ7KHMXGJHGLGQRWRUGHULPPHGLDWHGHSRUWDWLRQ MXULVGLFWLRQDOSURYLVLRQV6HH86&D6XSS EXW JUDQWHG .ROLDGDjV PRWLRQ IRU YROXQWDU\ GHSDUWXUH WR UHIHUULQJWR86& RFFXUQRODWHUWKDQ$XJXVW.ROLDGDDSSHDOHGWKHGHQLDORI KLVDSSOLFDWLRQIRUDV\OXPDQGZLWKKROGLQJRIGHSRUWDWLRQWR %7KH%RDUGjV'HFLVLRQ WKH %RDUG RI ,PPLJUDWLRQ $SSHDOV ZKLFK DIILUPHG WKH LPPLJUDWLRQMXGJHRQ0DUFK.ROLDGDILOHGDWLPHO\ ,QDIILUPLQJWKHLPPLJUDWLRQMXGJHjVGHQLDORI.ROLDGDjV SHWLWLRQIRUUHYLHZE\WKLV&RXUWRQ$SULO DSSOLFDWLRQWKH%RDUGKHOGWKDWWKHMXGJHmFRUUHFWO\IRXQGWKH UHVSRQGHQWIDLOHGWRHVWDEOLVKHLWKHUDZHOOIRXQGHGIHDURI ,, SHUVHFXWLRQRUDFOHDUSUREDELOLW\RISHUVHFXWLRQDQGWKDWD UHDVRQDEOHSHUVRQLQWKHUHVSRQGHQWjVFLUFXPVWDQFHVZRXOG $sXULVGLFWLRQ QRWIHDUSHUVHFXWLRQl 7KH%RDUGRI,PPLJUDWLRQ$SSHDOVKDGMXULVGLFWLRQRYHU &6WDQGDUGRI5HYLHZ .ROLDGDjV DSSHDO IURP WKH LPPLJUDWLRQ MXGJHjV GHFLVLRQ SXUVXDQWWR&)5E3ULRUWRSDVVDJHRI :HPXVWGHFLGHZKHWKHUWKH%RDUGFRUUHFWO\GHWHUPLQHG WKH,PPLJUDWLRQ5HIRUPDQG,PPLJUDQW5HVSRQVLELOLW\$FW WKDW .ROLDGD IDLOHG WR VXVWDLQ KLV EXUGHQ RI HVWDEOLVKLQJ WKH5HIRUP$FWWKRVHZKRZLVKHGWRDSSHDODQ\GHFLVLRQRI HOLJLELOLW\IRUDV\OXPDQGZLWKKROGLQJRIGHSRUWDWLRQ7KH WKH %RDUG ZRXOG ILOH D SHWLWLRQ IRU UHYLHZ LQ WKH &RXUW RI %RDUGjV GHWHUPLQDWLRQ mPXVW EH XSKHOG LI µVXSSRUWHG E\ $SSHDOVIRUWKH DSSURSULDWHFLUFXLW6HH86&D UHDVRQDEOHVXEVWDQWLDODQGSUREDWLYHHYLGHQFHRQWKHUHFRUG