United States v. Sandlin

Summarize
Check Treatment

Related Cases

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21  8QLWHG6WDWHVY6DQGOLQ 1R 3XUVXDQW WR 6L[WK &LUFXLW 5XOH  (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU TXDQWLW\ PXVW EH FKDUJHG LQ WKH LQGLFWPHQW EHFDXVH GUXJ )LOH 1DPH DS TXDQWLW\ LV QRZ DQ HOHPHQW RI WKH RIIHQVH FKDUJHG  6HH 8QLWHG6WDWHVY6WUD\KRUQ)G WK&LU 81,7('67$7(6&28572)$33($/6  8QLWHG6WDWHVY5DPLUH])G WK &LU 8QLWHG6WDWHVY)ORZDO)G WK )257+(6,;7+&,5&8,7 &LU   +RZHYHU WKH LQGLFWPHQW FKDUJHG 6DQGOLQ ZLWK BBBBBBBBBBBBBBBBB PDQXIDFWXULQJRUDWWHPSWLQJWRPDQXIDFWXUHmLQH[FHVVRI JUDPV RI PHWKDPSKHWDPLQHl  7KXV 6DQGOLQjV LQGLFWPHQW 81,7(' 67$7(6 2) $0(5,&$ ; ZDV QRW FRQVWLWXWLRQDOO\ GHIHFWLYH HYHQ XQGHU WKH SRVW 3ODLQWLII$SSHOOHH  $SSUHQGLVWDQGDUGDQGWKHUHZDVQRSODLQHUURUE\WKHGLVWULFW  FRXUW  1R Y  8QGHUWKHVHIDFWV6DQGOLQIDLOVWRUDLVHDYDOLG$SSUHQGL ! FODLP DQG WKXV ZH FDQQRW ILQG WKDW WKH GLVWULFW FRXUW  7+20$6 & 6$1'/,1  FRPPLWWHGSODLQHUURUE\VHQWHQFLQJ6DQGOLQWRWKHPDQGDWRU\ 'HIHQGDQW$SSHOODQW  PLQLPXP VHQWHQFH  $FFRUGLQJO\ WKH GLVWULFW FRXUWjV VHQWHQFLQJZDVSURSHUDQGVKRXOGQRWEHGLVWXUEHG 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW ,9&21&/86,21 IRUWKH:HVWHUQ'LVWULFWRI7HQQHVVHHDWsDFNVRQ 1RnsDPHV'7RGG&KLHI'LVWULFWsXGJH )RU WKH DERYH UHDVRQV ZH $)),50 WKH GLVWULFW FRXUWjV MXGJPHQW $UJXHG2FWREHU 'HFLGHGDQG)LOHG$SULO %HIRUHs21(6 DQG0225(&LUFXLWsXGJHV+$<1(6 'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8('%UXFH,*ULIIH\2)),&(2)%58&(,5:,1 *5,))(<0HPSKLV7HQQHVVHHIRU$SSHOODQW7DPPL5 7KLV RSLQLRQ ZDV VXEPLWWHG WR WKH FRXUW SULRU WR sXGJH 1DWKDQLHO 5 sRQHVj GHSDUWXUH IURP WKH FRXUW HIIHFWLYH 0DUFK   7KH +RQRUDEOH :LOOLDP s +D\QHV sU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 0LGGOH 'LVWULFW RI 7HQQHVVHH VLWWLQJ E\ GHVLJQDWLRQ   8QLWHG6WDWHVY6DQGOLQ 1R 1R 8QLWHG6WDWHVY6DQGOLQ  6LPSVRQ $66,67$17 81,7(' 67$7(6 $77251(< SURFHGXUHIRUFRQWHVWLQJGUXJTXDQWLW\DVDVHQWHQFLQJIDFWRU s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sDFNVRQ7HQQHVVHHIRU$SSHOOHH YDFDWHGXQGHU$SSUHQGLEHFDXVHWKHGLVWULFWFRXUWGHWHUPLQHG E\DSUHSRQGHUDQFHRIWKHHYLGHQFHWKHTXDQWLW\RIGUXJVKH BBBBBBBBBBBBBBBBB ZDV UHVSRQVLEOH IRU PDQXIDFWXULQJ  +RZHYHU HYHQ LI LQ LPSRVLQJ WKH PDQGDWRU\ PLQLPXP WKH GLVWULFW MXGJH 23,1,21 HYDOXDWHG DQG UHOLHG RQ WKH HYLGHQFH SUHVHQWHG E\ WKH BBBBBBBBBBBBBBBBB JRYHUQPHQW DW WKH VHQWHQFLQJ KHDULQJ WKLV HYDOXDWLRQ DQG UHOLDQFHZDVXQQHFHVVDU\%DVHGXSRQ$SSUHQGLWKHGLVWULFW 1$7+$1,(/ 5 s21(6 &LUFXLW sXGJH  'HIHQGDQW MXGJHGLGQRWQHHGWRDGGUHVVGUXJTXDQWLW\DWWKHVHQWHQFLQJ 7KRPDV&6DQGOLQ m6DQGOLQl ZDVFKDUJHGLQDIRXUFRXQW KHDULQJEHFDXVH6DQGOLQKDGSOHDGHGJXLOW\WRWKHFKDUJHLQ LQGLFWPHQWLQWKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH:HVWHUQ WKHLQGLFWPHQWDQGVWLSXODWHGWRWKHGUXJTXDQWLW\VXEMHFWLQJ 'LVWULFWRI7HQQHVVHHZLWKPDQXIDFWXULQJDQGDWWHPSWLQJWR KLPWRWKHHQKDQFHGSHQDOW\6HH8QLWHG6WDWHVY5RSHU PDQXIDFWXUHLQH[FHVVRIJUDPVRIPHWKDPSKHWDPLQHLQ )G   WK &LU   KROGLQJ WKDW QR $SSUHQGL YLRODWLRQRI86&† D  SRVVHVVLRQZLWKLQWHQWWR SUREOHP LV SUHVHQW ZKHUH GHIHQGDQW mH[SUHVVO\ GLVWULEXWH LQ YLRODWLRQ RI  86& † D   DQG DFNQRZOHGJH>V@lWKHGUXJTXDQWLW\IRUZKLFKWKHJRYHUQPHQW PDQXIDFWXULQJ DQG DWWHPSWLQJ WR PDQXIDFWXUH D FRQWUROOHG VHHNVWRKROGKLPDFFRXQWDEOH 8QLWHG6WDWHVY6WDIIRUG VXEVWDQFHFUHDWLQJDVXEVWDQWLDOULVNRIKDUPWRKXPDQOLIHLQ )G   WK &LU   m'HIHQGDQWjV IDFWXDO YLRODWLRQRI86&†6DQGOLQSOHDGHGJXLOW\DQGZDV DGPLVVLRQVREYLDWHDQ\SRVVLEOHFRQFHUQVDERXWWKHSURSHU FRQYLFWHG RQ &RXQW , PDQXIDFWXULQJ DQG DWWHPSWLQJ WR VWDQGDUGRISURRIl LGDW m)RUDOOLQWHQWVDQGSXUSRVHV PDQXIDFWXUHLQH[FHVVRIILIW\JUDPVRIPHWKDPSKHWDPLQH >DQDGPLVVLRQRIWKHDPRXQWRIGUXJVLQYROYHG@HIIHFWLYHO\ 7KH UHPDLQLQJ FRXQWV ZHUH GLVPLVVHG SXUVXDQW WR WKH UHVROYHVDQ\GRXEWVDERXWGUXJTXDQWLW\l  JRYHUQPHQWjVPRWLRQ6DQGOLQQRZDSSHDOVKLVVHQWHQFH)RU WKHUHDVRQVVWDWHGEHORZZH$)),50GHIHQGDQWjVVHQWHQFH ,QDGGLWLRQ$SSUHQGLZDVQRWRIIHQGHGLQWKHLQVWDQWFDVH EHFDXVH 6DQGOLQjV VHQWHQFH ZDV QRW EH\RQG WKH VWDWXWRU\ ,)$&76 PD[LPXP RI WZHQW\ \HDUV DV PDQGDWHG E\  86& † E  $ 6DQGOLQZDVQRWSUHMXGLFHGE\WKHLPSRVLWLRQ 2Q 0D\   6DQGOLQ FRQIHVVHG WR RIILFHUV DW WKH RIWKHWHQ\HDUPDQGDWRU\PLQLPXPVHQWHQFHEHFDXVHKHZDV 6HOPHU 7HQQHVVHH 3ROLFH'HSDUWPHQWWKDWKHKDGEHHQLQ RQ QRWLFH RI WKH SHQDOW\ SURYLVLRQ RI   86& 0F1DLU\&RXQW\VLQFHDERXW0DUFKRIDQGWKDWKHKDG † E  $  PDQXIDFWXUHG PHWKDPSKHWDPLQH LQ 7HQQHVVHH IURP DERXW 0DUFKXQWLODERXW0DUFK+HDOVRVDLGWKDW )XUWKHUPRUH6DQGOLQjVDUJXPHQWWKDW$SSUHQGLUHTXLUHV KH KDG PDQXIDFWXUHG LQ H[FHVV RI  JUDPV RI DOOHJDWLRQVRIWKUHVKROGTXDQWLWLHVRIGUXJVLQDQLQGLFWPHQW PHWKDPSKHWDPLQHDQGWKDWKHZRXOGJLYHLWDZD\WRYDULRXV DVHVVHQWLDOHOHPHQWVRIWKHRIIHQVHFKDUJHGLVRIOLPLWHGDYDLO SHRSOH  +H DOVR WROG RIILFHUV LQ GHWDLO KRZ KH SURGXFHG WRKLV$SSUHQGLFODLP2XUUHFHQWKROGLQJVYHULI\WKDWGUXJ PHWKDPSKHWDPLQHPRUHWKDQRQFHRQ0DUFK  8QLWHG6WDWHVY6DQGOLQ 1R 1R 8QLWHG6WDWHVY6DQGOLQ  7KH FDVH LV DQDORJRXV WR WKH FRXUWjV UHFHQW GHFLVLRQ LQ 2Q6HSWHPEHUDIHGHUDOJUDQGMXU\UHWXUQHGDIRXU 8QLWHG6WDWHVY+DUSHU)G WK&LU /LNH FRXQWLQGLFWPHQWDJDLQVW6DQGOLQ7KHLQGLFWPHQWFKDUJHG 6DQGOLQ WKH GHIHQGDQW LQ +DUSHU SOHDGHG JXLOW\ WR D GUXJ 6DQGOLQZLWKPDQXIDFWXULQJDQGDWWHPSWLQJWRPDQXIDFWXUHLQ FKDUJHDQGVWLSXODWHGWRDGUXJTXDQWLW\VXEMHFWLQJKLPWRD H[FHVVRIJUDPVRIPHWKDPSKHWDPLQHLQYLRODWLRQRI PDQGDWRU\PLQLPXPVHQWHQFHRIWHQ\HDUV7KHGHIHQGDQWLQ 86& † D   SRVVHVVLRQ ZLWK LQWHQW WR GLVWULEXWH LQ +DUSHUOLNH6DQGOLQODWHUDWWHPSWHGWRFKDOOHQJHWKHHIIHFWV H[FHVVRIJUDPVRIPHWKDPSKHWDPLQHLQYLRODWLRQRI RIKLVJXLOW\SOHDRQDSSHDO 7KLVFRXUWDIILUPHG+DUSHUjV 86& † D   DQG PDQXIDFWXULQJ DQG DWWHPSWLQJ WR FRQYLFWLRQ DQG VHQWHQFH DQG LQ WKH SURFHVV RXWOLQHG WKH PDQXIDFWXUHDFRQWUROOHGVXEVWDQFHFUHDWLQJDVXEVWDQWLDOULVN FLUFXPVWDQFHVXQGHUZKLFK$SSUHQGLZRXOGEHLPSOLFDWHGE\ RIKDUPWRKXPDQOLIHLQYLRODWLRQRI86&† DJXLOW\SOHD 2Q0D\6DQGOLQHQWHUHGDJXLOW\SOHDWR&RXQW, +DUSHU V$SSUHQGLDUJXPHQWFOHDUO\ZRXOGKDYHPHULWLI PDQXIDFWXULQJDQGDWWHPSWLQJWRPDQXIDFWXUHLQH[FHVVRI WKHLQGLFWPHQWIDLOHGWRFKDUJHKLPZLWKFRQVSLUDF\WR JUDPV RI PHWKDPSKHWDPLQH LQ YLRODWLRQ RI  86& GLVWULEXWHDVSHFLILFTXDQWLW\RIGUXJVLIKHVXEVHTXHQWO\ † D  7KHSUREDWLRQRIILFHUVXEVHTXHQWO\SUHSDUHGD SOHDGHGJXLOW\ZLWKRXWVWLSXODWLQJHLWKHULQDSOHDRULQD 3UH6HQWHQFH5HSRUW m365l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mPHDVXUDEOH TXDQWLW\l RI PDULMXDQD 6HQWHQFLQJ *XLGHOLQHV m*XLGHOLQHVl  RI  PRQWKV FRQYLFWHG E\ D MXU\ IRU FRQVSLUDF\ WR GLVWULEXWH WKLV +RZHYHU WKH PDQGDWRU\ PLQLPXP VHQWHQFH RI  86& XQVSHFLILHGTXDQWLW\DQGWKHQVHQWHQFHGE\WKHGLVWULFW † E  $ YLLL ZDVWHQ\HDUV FRXUWXQGHUDSUHSRQGHUDQFHRIWKHHYLGHQFHVWDQGDUGLQ H[FHVVRIWKHGHIDXOWVWDWXWRU\PD[LPXP 2Q0D\6DQGOLQILOHGDSRVLWLRQSDSHULQZKLFK KHREMHFWHGWRWKHWHQ\HDUPDQGDWRU\PLQLPXPVHQWHQFH+H ,GDW1HLWKHURIWKHVHVLWXDWLRQVDSSOLHVLQWKHLQVWDQW DUJXHGWKDWWKHWHQ\HDUVHQWHQFHDSSOLHVRQO\LIWKHRIIHQVH FDVH  6DQGOLQ ZDV FKDUJHG LQ WKH LQGLFWPHQW ZLWK LQYROYHGWKHPDQXIDFWXUHRIILIW\JUDPVRUPRUHRImSXUHl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jVDXWKRULW\ ZRXOGEHPRQWKVRUWKHPDQGDWRU\PLQLPXPVHQWHQFH WR FKDUJH D GHIHQGDQW VHSDUDWHO\ IRU HDFK EDWFK RI RIPRQWKV PHWKDPSKHWDPLQHZDVVROHO\GLVFUHWLRQDU\QRWPDQGDWRU\ 7KHJRYHUQPHQWSUHVHQWHGWHVWLPRQ\RIDGUXJWDVNIRUFH 7KHGLVWULFWFRXUWGLGQRWFRPPLWSODLQHUURUE\VHQWHQFLQJ DJHQWZKRLQWHUYLHZHG6DQGOLQRQWKHGD\RIKLVFRQIHVVLRQ 6DQGOLQ WR WKH PDQGDWRU\ PLQLPXP IRU PDQXIDFWXULQJ LQ 7KHDJHQWWHVWLILHGWKDW6DQGOLQZDVFRKHUHQWDQGDSSHDUHGWR H[FHVVRIILIW\JUDPVRIPHWKDPSKHWDPLQHEHFDXVH6DQGOLQ XQGHUVWDQG WKH DJHQWjV TXHVWLRQV DQG WKXV 6DQGOLQj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jVVWDWHPHQWWRWKHDJHQWDQG WKHYLGHRWDSHRI6DQGOLQjVPHWKDPSKHWDPLQHUHFLSH%DVHG 6DQGOLQDUJXHVWKDWKHLVHQWLWOHGWRUHOLHIXQGHU$SSUHQGL XSRQWKHWHVWLPRQ\RIWKHFKHPLVWWKHGLVWULFWFRXUWIRXQGWKDW EDVHG RQ KLV DVVHUWLRQ WKDW KH GLG QRW SOHDG JXLOW\ WR DQ\ WKHDPRXQWRIPHWKDPSKHWDPLQHmHDVLO\UHDFKH>G@WKHDPRXQW VSHFLILFDPRXQWRIPHWKDPSKHWDPLQH+RZHYHUWKHIDFWXDO ZKLFKZRXOGJLYHXVDWHQ\HDUVWDWXWRU\PLQLPXPl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m>R@WKHUWKDQWKHIDFWRIDSULRUFRQYLFWLRQDQ\IDFW FDOFXODWHGWKHGUXJTXDQWLW\UXQVDIRXORI$SSUHQGLY1HZ WKDWLQFUHDVHVWKHSHQDOW\IRUDFULPHEH\RQGWKHSUHVFULEHG sHUVH\  86   6 &W   / (G G  VWDWXWRU\PLQLPXPPXVWEHVXEPLWWHGWRDMXU\DQGSURYHG  1HLWKHURIWKHVHFKDOOHQJHVZDVUDLVHGEHORZDQG EH\RQGDUHDVRQDEOHGRXEWl,GDW6DQGOLQFRQFHGHVWKDW WKXVRXUUHYLHZLVIRUSODLQHUURU8QLWHG6WDWHVY.RHEHUOHLQ EHFDXVHKHIDLOHGWRUDLVHKLV$SSUHQGLFODLPLQWKHGLVWULFW )G WK&LU  FRXUWKHPXVWVKRZSODLQHUURU7RVKRZSODLQHUURUXQGHU )HGHUDO 5XOH RI &ULPLQDO 3URFHGXUH  E  6DQGOLQ PXVW ,,67$1'$5'2)5(9,(: GHPRQVWUDWH m   µHUURUj   WKDW LV µSODLQj DQG   WKDW µDIIHFW>V@VXEVWDQWLDOULJKWVjlsRKQVRQY8QLWHG6WDWHV 6DQGOLQUDLVHVWZRFKDOOHQJHVWRWKHVHQWHQFHLPSRVHGE\ 866&W/(GG  WKHGLVWULFWFRXUWQHLWKHURIZKLFKZDVDGYDQFHGDVREMHFWLRQV TXRWLQJ2ODQR86DW  EHORZm:KHUHDFULPLQDOGHIHQGDQWKDVIDLOHGWRREMHFW EHORZKHRUVKHPXVWGHPRQVWUDWHWKDWWKHHUURUZDVSODLQDV  8QLWHG6WDWHVY6DQGOLQ 1R 1R 8QLWHG6WDWHVY6DQGOLQ  JRYHUQPHQWSUHVHQWHGHYLGHQFHWRVXSSRUWWKHGUXJTXDQWLW\ GHILQHGE\)(' 5 &5,0 3  E EHIRUHZHPD\H[HUFLVHRXU VSHFLILHGLQWKHFRXQWRIFRQYLFWLRQWKLVFDVHLVGLIIHUHQWIURP GLVFUHWLRQWRFRUUHFWWKHHUURUl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jV $2IIHQVHVDQGSHQDOWLHV VWDWHPHQW WR WKH DJHQW DQG 6DQGOLQjV mUHFLSHl 5RGULJXH] FRQFOXGHGWKDW6DQGOLQjVmUHFLSHlZRXOG\LHOGDSSUR[LPDWHO\ 6DQGOLQ FRQWHQGV WKDW WKH GLVWULFW FRXUW HUUHG LQ LWV VL[W\PLOOLJUDPVRISXUHPHWKDPSKHWDPLQHHDFKWLPHLWZDV GHWHUPLQDWLRQRIWKHPDQGDWRU\PLQLPXPVHQWHQFHUHJDUGLQJ XVHG0DWHULDOVUHFRYHUHGIURP6DQGOLQjVKRPHFRUURERUDWHG WKHTXDQWLW\RIGUXJVPDQXIDFWXUHGDQGWKHQXPEHURIKLVDFWV WKH LQIRUPDWLRQ JLYHQ E\ 6DQGOLQ DERXW KLV PHWKRG RI LQYROYHG LQ WKH GUXJ PDQXIDFWXULQJ  7KH GHIHQGDQW QRZ PDQXIDFWXULQJ5RGULJXH]FRQFOXGHGWKDWDVVXPLQJ6DQGOLQ DUJXHVWKDWKHQHYHUDFNQRZOHGJHGJXLOWIRUPDQXIDFWXULQJ XVHG WKH VDPH mUHFLSHl WKUHH WLPHV ZLWK WKH VDPH \LHOG DQ\ VSHFLILF TXDQWLW\ RI PHWKDPSKHWDPLQH DQG WKHUHIRUH 6DQGOLQZRXOGKDYHEHHQDEOHWRSURGXFHDSSUR[LPDWHO\ ZLWKRXWDVSHFLILFTXDQWLW\WKHFRXUWFRXOGQRWLPSRVHWKH JUDPV RI SXUH PHWKDPSKHWDPLQH  7KXV E\ YLUWXH RI PDQGDWRU\PLQLPXPVHQWHQFH0RUHRYHUKHDUJXHVWKDWWKH 6DQGOLQjVRZQZRUGVDQGWKHWHVWLPRQ\RIWKHJRYHUQPHQWj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†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†  D   ,Q KDGJURZQPRUHWKDQPDULMXDQDSODQWVDQGWKXVVHQWHQFHG UHDFKLQJWKLVFRQFOXVLRQZHORRNHGWRWKHOHJLVODWLYHKLVWRU\ KHUWRWKHPDQGDWRU\PLQLPXPIRUJURZLQJPRUHWKDQ RIWKHVWDWXWHDQGGHWHUPLQHGWKDW&RQJUHVVjLQWHQWLQXVLQJ SODQWV,G:HUHYHUVHGKROGLQJWKDWWKHFRXQWRIFRQYLFWLRQ WKHWHUPmDYLRODWLRQlLQ† E  $ ZDVWRWDUJHWPDMRU RQO\ FRYHUHG  DQG WKDW WKH UHFRUG GLG QRW GLVFORVH GUXJ GHDOHUV DQG PDQXIDFWXUHV DV RSSRVHG WR VPDOOWLPH HYLGHQFHmWKDW5HWWHOOHFXOWLYDWHGPDULMXDQDRQDFRQWLQXRXV GHDOHUVDQGXVHUV:LQVWRQ)GDWm,IZHZHUHWR EDVLVl ,G DW   m5DWKHU 5HWWHOOHjV  DQG  FRQVWUXH86&† E  $ DVDSSO\LQJWRDJJUHJDWH PDULMXDQDFURSVZHUHWKHSURGXFWVRIGLVWLQFWJURZLQJVHDVRQV DPRXQWVRIGUXJVKHOGRQYDULRXVVHSDUDWHRFFDVLRQVLWFRXOG VHSDUDWHGE\VHYHUDOPRQWKVLQZKLFK5HWWHOOHDSSDUHQWO\GLG EHXVHGDJDLQVWVPDOOWLPHGHDOHUVRUXVHUVZKRQHYHUSRVVHVV QRWJURZDQ\SODQWVl,G PRUHWKDQDIHZJUDPVDWDWLPHl,GDW ,QUHDFKLQJWKLVFRQFOXVLRQZHGLGQRWSURYLGHDQmH[DFW :LQVWRQKRZHYHULQYROYHGDSRVVHVVLRQFRQYLFWLRQUDWKHU GHILQLWLRQl RI WKH WHUP mD YLRODWLRQl LQ WKH PDQXIDFWXULQJ WKDQDPDQXIDFWXULQJFRQYLFWLRQDQGGLIIHUHQWFRQVLGHUDWLRQV FRQWH[WEXWLQGLFDWHGWKDWLQVRPHFDVHVPDQXIDFWXULQJZLOO DULVHLQWKHPDQXIDFWXULQJFRQWH[W3RVVHVVLRQLVDGLVFUHWH LQYROYH DQ RQJRLQJ RU mFRQWLQXLQJl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mPDMRUGHDOHUl † E  $ ,QWKHSUHVHQWFDVHWKHUHFRUGLQGLFDWHVWKDW TXDQWLWLHVWRWKHPDQGDWRU\PLQLPXPVLQWHQGHGIRUPDMRU 6DQGOLQ PDQXIDFWXUHG WKH PHWKDPSKHWDPLQH DW LVVXH LQ D GHDOHUV PDQXIDFWXULQJ SUHVHQWV D GLIIHUHQW VHW RI SROLF\ UHODWLYHO\VKRUWSHULRGRIWLPH6DQGOLQDFNQRZOHGJHGKDYLQJ FRQFHUQV$VLQWKHSUHVHQWFDVHVRPHRQHNQRZOHGJHDEOH PDGHPRUHWKDQRQHEDWFKRIPHWKDPSKHWDPLQHRQWKHGD\RI DERXWVXFKWKLQJVFDQSURGXFHDUHODWLYHO\ODUJHTXDQWLW\RI KLVFRQIHVVLRQs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