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$SSHOODQW 1R Y ! s26+8$ 3$8/ 2562/,1, 'HIHQGDQW$SSHOOHH 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH0LGGOH'LVWULFWRI7HQQHVVHHDW&RRNHYLOOH 1Rn:LOOLDPs+D\QHVsU'LVWULFWsXGJH $UJXHGsXO\ 'HFLGHGDQG)LOHG$XJXVW %HIRUH68+5+(,15,&+6,/(5DQG*,/0$1&LUFXLW sXGJHV BBBBBBBBBBBBBBBBB &2816(/ $5*8('sLPPLH/\QQ5DPVDXU$66,67$1781,7(' 67$7(6$77251(<1DVKYLOOH7HQQHVVHHIRU$SSHOODQW sDFN ' /RZHU\ sU /2:(5< /2:(5< /HPDQRQ 7HQQHVVHH IRU $SSHOOHH 21 %5,() sLPPLH /\QQ 5DPVDXU $66,67$17 81,7(' 67$7(6 $77251(< 1DVKYLOOH7HQQHVVHHIRU$SSHOODQW%)sDFN/RZHU\6U /2:(5< /2:(5</HPDQRQ7HQQHVVHHIRU$SSHOOHH 8QLWHG6WDWHVY2UVROLQL 1R BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 521$/'/((*,/0$1&LUFXLWsXGJH,QsXQHRI sRVKXD 3DXO 2UVROLQL ZDV SXOOHG RYHU IRU VSHHGLQJ E\ D 7HQQHVVHH+LJKZD\3DWURORIILFHU%DVHGXSRQWKHRIILFHUj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jV PRWLRQ LQ 0DUFK RI 7KLV LQWHUORFXWRU\DSSHDOZDVWKHQILOHGE\WKHJRYHUQPHQW)RU WKHUHDVRQVVHWIRUWKEHORZZH5(9(56(WKHMXGJPHQWRI WKH GLVWULFW FRXUW DQG 5(0$1' WKH FDVH IRU IXUWKHU SURFHHGLQJVFRQVLVWHQWZLWKWKLVRSLQLRQ ,%$&.*5281' $ )DFWXDOEDFNJURXQG 2QsXQH2UVROLQLDQGDIHPDOHSDVVHQJHUZHUH GULYLQJ HDVW RQ ,QWHUVWDWH LQ 6PLWK &RXQW\ 7HQQHVVHH 2UVROLQLZDVSXOOHGRYHUIRUVSHHGLQJE\7HQQHVVHH+LJKZD\ 3DWURO 2IILFHU %LOO\ 3LHUFH DW SP $FFRUGLQJ WR WKH UDGDUJXQPHDVXUHPHQW2UVROLQLjVFDUKDGEHHQWUDYHOLQJLQ H[FHVVRIPLOHVSHUKRXU7KHVSHHGOLPLWRQWKHLQWHUVWDWH ZDVPLOHVSHUKRXU 3LHUFH DSSURDFKHG WKH FDU DQG DVNHG 2UVROLQL IRU KLV GULYHUjVOLFHQVHDQGYHKLFOHUHJLVWUDWLRQ2UVROLQLJDYH3LHUFH DSKRWRFRS\RIDQLQWHULP&DOLIRUQLDGULYHUjVOLFHQVHDQGDELOO 8QLWHG6WDWHVY2UVROLQL 1R 1R 8QLWHG6WDWHVY2UVROLQL WROG2UVROLQLDQGKLVSDVVHQJHUWKDWWKH\ZHUHIUHHWROHDYHWKH RI VDOH 7KH GULYHUjV OLFHQVH ZDV LQ WKH QDPH RI 1LFKRODV VFHQHRIWKHWUDIILFVWRSDQGWKH\DFWXDOO\OHIWDWSPWR 3DQDWHOOL $FFRUGLQJ WR WKH ELOO RI VDOH WKH FDU KDG EHHQ WUDYHO ZLWK 2IILFHU )HUJXVRQ WR WKH QHDUHVW LQWHUVWDWH H[LW SXUFKDVHGE\m1LFRODVl3DQDWHOOLIRUFDVKLQ(O3DVR7H[DV $IWHUQRWLQJWKDWWKHRIILFHUVZRXOGQRWDOORZ2UVROLQLDQGKLV RQsXQH,QVWHDGRIDOLFHQVHSODWHWKHFDUFDUULHGD SDVVHQJHU WR ZDON RQ WKH LQWHUVWDWH WKH GLVWULFW FRXUW WHPSRUDU\WDJ FRQFOXGHGWKDWmDUHDVRQDEOHSHUVRQZRXOGQRWKDYHEHOLHYHG WKDWKHZDVIUHHWRJRl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j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j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j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mWKHQDWXUHRIWKHGHWHQWLRQZDVQRWXQUHDVRQDEOH WKHVHDUFK%XWDIWHU3LHUFHDVNHG2UVROLQLWRVWDQGDWWKHVLGH XQGHUWKHFLUFXPVWDQFHVl RI WKH URDG DQG WR UHPRYH KLV KDQGV IURP KLV SRFNHWV 2UVROLQLZLWKGUHZKLVFRQVHQW7KHRIILFHUVWKHQWROG2UVROLQL 7KH&RQVWLWXWLRQSURWHFWVLQGLYLGXDOVDQGWKHLUSRVVHVVLRQV DQGKLVSDVVHQJHUWKDWWKH\ZHUHIUHHWRJREXWWKDWWKHFDU IURPXQUHDVRQDEOHVHL]XUHV8QLWHG6WDWHVY$YHU\)G ZDVJRLQJWREHKHOGXQWLODFDQLQHXQLWDUULYHGRQWKHVFHQH WK&LUm$VHL]XUHZLWKLQWKHPHDQLQJRI WKHIRXUWKDPHQGPHQWRFFXUVRQO\ZKHQDUHDVRQDEOHSHUVRQ 3LHUFHFDOOHGIRUWKHFDQLQHXQLWDWSP$WWKDWWLPH LQYLHZRIWKHFLUFXPVWDQFHVVXUURXQGLQJWKHHQFRXQWHUZLWK 2UVROLQLDQGKLVSDVVHQJHUVWDWHGWKDWWKH\ZDQWHGWRJRWRWKH ODZHQIRUFHPHQWRIILFLDOVEHOLHYHVKHLVQRWIUHHWROHDYHl QH[WKLJKZD\H[LWWRXVHWKHUHVWURRPDQGJHWVRPHWKLQJWR 8QLWHG6WDWHVY:LQIUH\)GWK&LU GULQN7KHSDVVHQJHUVDLGWKDWVKHZRXOGZDONEXW%ULQNOH\ m$OWKRXJKDQRIILFHUPD\KDYHUHDVRQDEOHVXVSLFLRQWRGHWDLQ LQIRUPHG KHU WKDW SHGHVWULDQV ZHUH QRW DOORZHG RQ WKH D SHUVRQ RU KLV SRVVHVVLRQV IRU LQYHVWLJDWLRQ WKH RIILFHUjV LQWHUVWDWH+LJKZD\3DWURO2IILFHU)HUJXVRQZDVWKHQFDOOHG LQYHVWLJDWLYHGHWHQWLRQFDQPDWXUHLQWRDQDUUHVWRUVHL]XUHLI WR WKH VFHQH IRU WKH SXUSRVH RI GULYLQJ 2UVROLQL DQG KLV LW RFFXUV RYHU DQ XQUHDVRQDEOH SHULRG RI WLPH RU XQGHU SDVVHQJHUWRDVWRUHQHDUWKHQH[WKLJKZD\H[LW)HUJXVRQ XQUHDVRQDEOHFLUFXPVWDQFHVl$YHU\)GDWm>$@Q DUULYHGDWSPDQGGURYHWKHPWRWKHUHTXHVWHGORFDWLRQ LQYHVWLJDWLYHGHWHQWLRQPXVWEHWHPSRUDU\DQGODVWQRORQJHU +HODWHUVWRRGE\ZKLOHWKHWZRVXVSHFWVZDONHGGRZQWKH WKDQ LV QHFHVVDU\ WR HIIHFWXDWH WKH SXUSRVH RI WKH VWRSl URDGDZD\IURPWKHVWRUH )ORULGD Y 5R\HU 86 7KHUH LV KRZHYHU mQR ULJLG WLPH OLPLWDWLRQ RQ WKH ODZIXOQHVV RI D $WSP+LJKZD\3DWURO2IILFHU:LOOLDPVDUULYHGZLWK 7HUU\ VWRSl :LQIUH\ )G DW $ FRXUW VKRXOG DGUXJVQLIILQJGRJ$IWHUWKHGRJGHWHFWHGWKHSUHVHQFHRI LQVWHDG mH[DPLQH ZKHWKHU WKH SROLFH GLOLJHQWO\ SXUVXHG D GUXJVLQWKHFDUWKHRIILFHUVRSHQHGDGRRUDQGDOORZHGWKH PHDQVRILQYHVWLJDWLRQWKDWZDVOLNHO\WRFRQILUPRUGLVSHO GRJWRHQWHU7KHGRJjVDOHUWLQGLFDWHGWKDWWKHUHZHUHGUXJV WKHLUVXVSLFLRQVTXLFNO\GXULQJZKLFKWLPHLWZDVQHFHVVDU\ LQWKHWUXQN$WWKLVSRLQWWKHRIILFHUVRQWKHVFHQHUDGLRHG WRGHWDLQWKHGHIHQGDQWl8QLWHG6WDWHVY6KDUSH )HUJXVRQ DQG UHTXHVWHG WKDW KH EULQJ 2UVROLQL DQG WKH 86 SDVVHQJHU EDFN WR WKH FDU 7KH WZR ZHUH DUUHVWHG DIWHU PDULMXDQDZDVIRXQGLQWKHFDUjVWUXQN &RQWUDU\WRWKHGLVWULFWFRXUWj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mIUXLWlRIDQLOOHJDOVHDUFK$IWHUKROGLQJDQ 8QLWHG6WDWHVY2UVROLQL 1R 1R 8QLWHG6WDWHVY2UVROLQL 866&WKROGLQJWKDWWKH HYLGHQWLDU\ KHDULQJ WKH GLVWULFW FRXUW JUDQWHG 2UVROLQLj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nERWKTXDOLWDWLYHO\DQGTXDQWLWDWLYHO\nHYHQVWURQJHU EDVHVIRUWKHRIILFHUVjVXVSLFLRQWKDW2UVROLQLZDVLQYROYHGLQ VXSSRUW IRU D ILQGLQJ WKDW WKH RIILFHUV KDG mD UHDVRQDEOH FULPLQDODFWLYLW\ VXVSLFLRQRIFULPLQDODFWLYLW\l3DORPLQR)GDW WKH UHFHQW SXUFKDVH RI WKH YHKLFOH ZLWK FDVK LQ D %\IDLOLQJWRFRQVLGHUWKHWRWDOLW\RIWKHFLUFXPVWDQFHVWKH VRXUFHFLW\IRUGUXJV GLVWULFWFRXUWHUUHGLQKROGLQJWKDWWKHRIILFHUVjVXVSLFLRQZDV LQFRQVLVWHQWVWRULHVDERXWZKHUHDQGZK\2UVROLQLKDG XQUHDVRQDEOH EHHQLQ7H[DV & 5HDVRQDEOHGHWHQWLRQ LQFRQVLVWHQWVWRULHVIURP2UVROLQLDQG>KLV@SDVVHQJHU DERXWZKR>P@WKH\ZHUHJRLQJWRVHHLQ%RVWRQ 7KH GLVWULFW FRXUW DOVR FRQFOXGHG WKDW 2UVROLQL DQG KLV LQFRQVLVWHQWVWRULHVDVWRWKHQDWXUHRIWKHUHODWLRQVKLS SDVVHQJHUZHUHmGHWDLQHGIRUDQXQUHDVRQDEOHDPRXQWRIWLPH EHWZHHQ2UVROLQLDQGWKHSDVVHQJHU ZLWKRXWSUREDEOHFDXVHl7KLVFRQFOXVLRQZDVEDVHGLQSDUW >2UVROLQL@EHFDPHYLVLEO\QHUYRXVZKHQKHZDVDVNHG XSRQWKHIDFWWKDWWKHRIILFHUVZRXOGQRWDOORZ2UVROLQLDQG IRUFRQVHQWWRVHDUFKWKHYHKLFOHDQG KLVSDVVHQJHUWRZDONRQWKHLQWHUVWDWHKLJKZD\WRWKHQHDUHVW 2UVROLQLjVVXEVHTXHQWUHYRFDWLRQRIKLVFRQVHQW H[LW7KH\WKXVKDGWRHLWKHUZDONWKURXJKWKHZRRGVRUULGH LQDSDWUROFDU7KHGLVWULFWFRXUWFRQFOXGHGWKDWmXQGHUWKHVH $IWHUGHFLGLQJWKDWQRQHRIWKHVH LQGLYLGXDOFLUFXPVWDQFHV FLUFXPVWDQFHV >@ D UHDVRQDEOH SHUVRQ ZRXOG QRW KDYH FUHDWHG D UHDVRQDEOH EDVLV IRU WKH RIILFHUVj VXVSLFLRQ WKDW EHOLHYHG WKDW KH ZDV IUHH WR JR DQG WKDW 2UVROLQL ZDV 2UVROLQLZDVLQYROYHGLQFULPLQDODFWLYLW\WKHGLVWULFWFRXUW GHWDLQHGl$IWHUUHDFKLQJWKLVFRQFOXVLRQWKHGLVWULFWFRXUW FRQFOXGHG WKDW mLQ OLJKW RI WKH FLUFXPVWDQFHV WKH RIILFHUVj KHOGWKDWmWKHGHWHQWLRQRI>2UVROLQL@ZDVDQXQODZIXOVHL]XUH VXVSLFLRQZDVQHLWKHUUHDVRQDEOHQRUDUWLFXODEOHl DQGWKHFRQWUDEDQGGLVFRYHUHGGXULQJWKHHQVXLQJVHDUFKVKDOO EHH[FOXGHGl 2Q DSSHDO WKH JRYHUQPHQW FODLPV WKDW FRQWUDU\ WR HVWDEOLVKHG ODZ WKH GLVWULFW FRXUW FRQVLGHUHG HDFK RI WKH DERYHOLVWHGVXVSLFLRXVFLUFXPVWDQFHVLQGLYLGXDOO\UDWKHUWKDQ 8QLWHG6WDWHVY2UVROLQL 1R 1R 8QLWHG6WDWHVY2UVROLQL H[DPLQLQJWKHWRWDOLW\RIWKHFLUFXPVWDQFHV7KHJRYHUQPHQW 7KH GLVWULFW FRXUW RVWHQVLEO\ FRQVLGHUHG WKH FRPELQHG DOVRFRQWHQGVWKDWWKHGLVWULFWFRXUWIDLOHGWRFRQVLGHUVHYHUDO LPSDFWRIVHYHUDORIWKHDERYHFLUFXPVWDQFHVDWRQO\RQHSRLQW RWKHUUHOHYDQWFLUFXPVWDQFHVWKDWOHGWRWKHRIILFHUVjVXVSLFLRQ GXULQJLWVDQDO\VLV$IWHUQRWLQJWKDWWKLVFRXUWKDVKHOGWKDW WKDW2UVROLQLZDVLQYROYHGLQFULPLQDODFWLYLW\ mQHUYRXVQHVVLVJHQHUDOO\LQFOXGHGDVRQHRIVHYHUDOJURXQGV IRUILQGLQJUHDVRQDEOHVXVSLFLRQDQGQRWDJURXQGVXIILFLHQW m$ WUDIILF VWRS LV DQDORJRXV WR D µ7HUU\ VWRSj LQ WKDW LQDQGRILWVHOIl8QLWHG6WDWHVY0HVD)GWK IROORZLQJWKHLQLWLDOVWRSWKHVXEVHTXHQWGHWHQWLRQFDQQRWEH &LUWKHGLVWULFWFRXUWFRQFOXGHGWKDWmWKHQHUYRXVQHVV H[FHVVLYHO\LQWUXVLYHDQGPXVWEHUHDVRQDEO\UHODWHGLQWLPH RI 2UVROLQL DORQH DQG LQ FRQMXQFWLRQ ZLWK WKH RWKHU FLWHG WR WKH LQYHVWLJDWLRQl 8QLWHG 6WDWHV Y :HOOPDQ )G IDFWRUVFDQQRWVHUYHDVDEDVLVIRUDUHDVRQDEOHDUWLFXODEOH WK&LU,QDQDO\]LQJWKHUHDVRQDEOHQHVVRI VXVSLFLRQ RI FULPLQDO DFWLYLW\l (PSKDVLV DGGHG 7KH DQ\VXEVHTXHQWGHWHQWLRQDFRXUWPXVWFRQVLGHUmZKHWKHUWKH GLVWULFW FRXUW KRZHYHU WKHQ SURFHHGHG WR FRQVLGHU LQ RIILFHUjVDFWLRQZDVMXVWLILHGDWLWVLQFHSWLRQDQGZKHWKHULW LVRODWLRQWKHUHOHYDQFHRI2UVROLQLjVUHYRFDWLRQRIKLVFRQVHQW ZDVUHDVRQDEO\UHODWHGLQVFRSHWRWKHFLUFXPVWDQFHVZKLFK WRDVHDUFK*LYHQWKDWWKHGLVWULFWFRXUWDQDO\]HGWKHUHOHYDQW MXVWLILHGWKHLQWHUIHUHQFHLQWKHILUVWSODFHl7HUU\Y2KLR FLUFXPVWDQFHV LQGLYLGXDOO\ LWV FRQFOXVRU\ VWDWHPHQW WKDW LW 86$WHPSRUDU\GHWHQWLRQIRUTXHVWLRQLQJ FRQVLGHUHG2UVROLQLjVQHUYRXVQHVVmLQFRQMXQFWLRQZLWKWKH mLVMXVWLILHGE\VSHFLILFDQGDUWLFXODEOHIDFWVWKDWJLYHULVHWR RWKHUFLWHGIDFWRUVlLVLQVXIILFLHQWWRHVWDEOLVKWKDWLWSURSHUO\ DUHDVRQDEOHVXVSLFLRQRIFULPLQDODFWLYLW\l8QLWHG6WDWHVY FRQVLGHUHGWKHWRWDOLW\RIWKHFLUFXPVWDQFHVLQGHFLGLQJWKDW 3DORPLQR)GWK&LUFLWLQJ7HUU\ WKHRIILFHUVjVXVSLFLRQZDVQRWUHDVRQDEOH 86DW,QGHWHUPLQLQJZKHWKHUUHDVRQDEOHVXVSLFLRQ ZDV SUHVHQW D FRXUW PXVW FRQVLGHU WKH WRWDOLW\ RI WKH 7KHGLVWULFWFRXUWDOVRHUUHGE\QRWWDNLQJLQWRDFFRXQWDOO FLUFXPVWDQFHV ,G 7KLV FRXUW KDV KHOG WKDW mUHDVRQDEOH RIWKHUHOHYDQWFLUFXPVWDQFHV,QSDUWLFXODUWKHGLVWULFWFRXUW VXVSLFLRQFDQEHEDVHGRQDWRWDOLW\RIFLUFXPVWDQFHV>@QR IDLOHGWRFRQVLGHUWKUHHDGGLWLRQDOIDFWRUV2UVROLQLjVRQO\ RQH RI ZKLFK VWDQGLQJ DORQH ZRXOG FUHDWH D UHDVRQDEOH SURRI RI LGHQWLW\ ZDV D SKRWRFRS\ RI DQ LQWHULP GULYHUjV VXVSLFLRQl8QLWHG6WDWHVY$QGHUVRQ)G OLFHQVHLVVXHGE\WKHVWDWHRI&DOLIRUQLD2IILFHU3LHUFH WK&LU WKRXJKWLWVXVSLFLRXVWKDW2UVROLQLDQGKLVSDVVHQJHUKDGWKHLU OXJJDJHRQWKHEDFNVHDWRIWKHFDUDVRSSRVHGWRLQWKHWUXQN $VQRWHGDERYHWKHGLVWULFWFRXUWIRXQGWKDWWKHRIILFHUVj DQGEDVHGRQKLVREVHUYDWLRQRIDIRRGEDJDQGVHYHUDO VXVSLFLRQZDVSUHPLVHGRQWKHVL[FLUFXPVWDQFHVOLVWHGDERYH IRRGZUDSSHUVRQWKHIORRUERDUGRIWKHFDUDQGDODUJHSLOHRI %XW WKH GLVWULFW FRXUW HUUHG E\ DQDO\]LQJ HDFK RI WKHVH FORWKHVRQWKHEDFNVHDW3LHUFHLQIHUUHGWKDW2UVROLQLDQGKLV FLUFXPVWDQFHVLQGLYLGXDOO\UDWKHUWKDQEDVLQJLWVGHFLVLRQRQ SDVVHQJHU KDG EHHQ WUDYHOLQJ ZLWKRXW VWRSSLQJ WR HDW RU WKHLUWRWDOLW\)RUH[DPSOHWKHGLVWULFWFRXUWFRQFOXGHGWKDW FKDQJHFORWKHV m>W@KHUHFHQWFDVKSXUFKDVHRIDYHKLFOHGRHVQRW\LHOGWRDQ DVVXPSWLRQRIFULPLQDODFWLYLW\l7KHGLVWULFWFRXUWDOVRKHOG 1RQH RI WKHVH LQGLYLGXDO FLUFXPVWDQFHV LV VXIILFLHQW E\ WKDW WKH LQFRQVLVWHQFLHV LQ 2UVROLQLjV DQG KLV SDVVHQJHUjV LWVHOIWRFUHDWHDUHDVRQDEOHVXVSLFLRQRIFULPLQDODFWLYLW\EXW DFFRXQWVDVWRWKHQDWXUHRIWKHLUUHODWLRQVKLSZK\WKH\KDG ZKHQFRPELQHGZLWKWKHVL[IDFWRUVWKDWWKHGLVWULFWFRXUWGLG EHHQLQ7H[DVDQGZK\WKH\ZHUHJRLQJWR%RVWRQmIDLOWR FRQVLGHU ZH EHOLHYH WKDW WKH\ DUH VXIILFLHQW WR VXSSRUW D HVWDEOLVKDQDUWLFXODEOHDQGUHDVRQDEOHVXVSLFLRQRIFULPLQDO UHDVRQDEOH VXVSLFLRQ 7KH 6XSUHPH &RXUW KDV UHFHQWO\ DFWLYLW\l)LQDOO\WKHGLVWULFWFRXUWGHWHUPLQHGWKDW2UVROLQLjV UHLWHUDWHG WKDW mIDFWXDO LQIHUHQFHV GUDZQ E\ WKH ODZ UHYRFDWLRQRIKLVLQLWLDOFRQVHQWWRDVHDUFKRIKLVFDUZDVQRW HQIRUFHPHQWRIILFHUlPXVWEHJLYHQmGXHZHLJKWlLQDQDO\]LQJ DVXIILFLHQWEDVLVIRUDUHDVRQDEOHDUWLFXODEOHVXVSLFLRQ WKHWRWDOLW\RIWKHFLUFXPVWDQFHV8QLWHG6WDWHVY$UYL]X