United States v. Helton

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$SSHOOHH    1R Y  !  *(50$,1( +(/721  'HIHQGDQW$SSHOODQW  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW%D\&LW\ 1Rn9LFWRULD$5REHUWV'LVWULFWsXGJH $UJXHGsXO\ 'HFLGHGDQG)LOHGsDQXDU\ %HIRUH6,/(5&2/(DQG&/$<&LUFXLWsXGJHV BBBBBBBBBBBBBBBBB &2816(/ $5*8('  :LOOLDP 7 6WUHHW ./,0$6=(:6., 675((7 6DJLQDZ 0LFKLJDQ IRU $SSHOODQW  0LFKDHO +OXFKDQLXN$66,67$1781,7('67$7(6$77251(< %D\&LW\0LFKLJDQIRU$SSHOOHH21%5,():LOOLDP7 6WUHHW./,0$6=(:6., 675((76DJLQDZ0LFKLJDQ IRU$SSHOODQW0LFKDHO+OXFKDQLXN$66,67$1781,7(' 67$7(6$77251(<%D\&LW\0LFKLJDQIRU$SSHOOHH   8QLWHG6WDWHVY+HOWRQ 1R &2/( s GHOLYHUHG WKH RSLQLRQ RI WKH FRXUW LQ ZKLFK &/$<sMRLQHG6,/(5s SS GHOLYHUHGDVHSDUDWH GLVVHQWLQJRSLQLRQ BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 5*8<&2/(s5&LUFXLWsXGJH'HIHQGDQW$SSHOODQW *HUPDLQH +HOWRQ SOHDGHG JXLOW\ XQGHU D FRQGLWLRQDO SOHD DJUHHPHQWWRRQHFRXQWRISRVVHVVLRQRIFUDFNFRFDLQHZLWK WKHLQWHQWWRGLVWULEXWHLQYLRODWLRQRI86&† D  DQGRQHFRXQWRISRVVHVVLRQRIILUHDUPVLQIXUWKHUDQFHRID GUXJ WUDIILFNLQJ FULPH LQ YLRODWLRQ RI  86& †  F  +HOWRQ QRZ H[HUFLVHV D ULJKW KH UHVHUYHG XQGHU WKH FRQGLWLRQDOSOHDDJUHHPHQWE\DSSHDOLQJWKHGLVWULFWFRXUWj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jV GHQLDO RI +HOWRQjV VXSSUHVVLRQ PRWLRQ DQG 5(0$1' WKLV FDVH IRU SURFHHGLQJV FRQVLVWHQW ZLWK WKLV RSLQLRQ , 2Q 'HFHPEHU   D PDJLVWUDWH MXGJH DXWKRUL]HG D ZDUUDQW IRU WKH VHDUFK RI VHYHUDO UHVLGHQFHV LQ 6DJLQDZ 0LFKLJDQ VXVSHFWHG RI KDYLQJ HYLGHQFH RI LOOHJDO GUXJ DFWLYLW\7KHJRDORIWKHVHDUFKZDVWRJDWKHU HYLGHQFHWR  8QLWHG6WDWHVY+HOWRQ 1R 1R 8QLWHG6WDWHVY+HOWRQ  DIILGDYLWLVMXGJHGRQWKHDGHTXDF\RIZKDWLWGRHVFRQWDLQ H[WLUSDWHWKHGUXJWUDIILFNLQJVFKHPHRUFKHVWUDWHGE\'HUULFN QRWZKDWLWODFNVRUZKDWDFULWLFPLJKWVD\VKRXOGKDYHEHHQ m'LQRl3HWHUVRQ9LFWRULD6ZDLQDQG5XE\m5XG\l/LGGHOO DGGHGl,GDW7KHUHIRUHDOWKRXJKZHFDQILQGLQVWDQFHV $V SDUW RI LWV FRPSUHKHQVLYHQHVV WKH ZDUUDQW DXWKRUL]HG ZLWKLQWKHDIILGDYLWLQWKLVFDVHZKHUHPRUHGHWDLOFRXOGKDYH VHDUFKRIWKHUHVLGHQFHDW1+DUULVRQ6WUHHWLQ6DJLQDZ EHHQVXSSOLHGZHVKRXOGORRNDWWKHDIILGDYLWDQGWKHZDUUDQW 0LFKLJDQ ZKHUH +HOWRQ OLYHG ZLWK KLV JLUOIULHQG sLPPLD LQDFFRUGDQFHZLWK/HRQ86DW *UHHQ,QD'HFHPEHUVHDUFKRIWKH1+DUULVRQ6WUHHW UHVLGHQFHRIILFHUVVHL]HGmLQFDVKVXVSHFWHGFUDFN 7KHGHIHQGDQWFODLPVWKDW/HRQLVQRWDSSOLFDEOHEHFDXVH FRFDLQHVXVSHFWHGFRFDLQHVXVSHFWHGPDULMXDQDZHDSRQV WKH EHOLHI E\ WKH RIILFHU WKDW SUREDEOH FDXVH H[LVWHG LV DPPXQLWLRQFHOOXODUSKRQHVFDVVHWWHWDSHVSKRWRJUDSKVD FRPSOHWHO\XQUHDVRQDEOH$VLQ/HRQWKHDSSOLFDWLRQIRUWKH WHOHSKRQH ELOO DQG D FKHFN SD\DEOH WR *HUPDLQH +HOWRQl ZDUUDQW KHUH ZDV VXSSRUWHG E\ PXFK PRUH WKDQ D mEDUH +HOWRQVRXJKWWRVXSSUHVVWKDWHYLGHQFHEXWWKHGLVWULFWFRXUW ERQHVlDIILGDYLW,WZDVFHUWDLQO\UHDVRQDEOHHQRXJKIRUWKH GHQLHGKLVUHTXHVW PDJLVWUDWHMXGJHWRILQGWKDWWKHUHZDVSUREDEOHFDXVHDQGLW ZDVUHDVRQDEOHHQRXJKIRUWKHGLVWULFWFRXUWWRILQGWKDWWKH 8VLQJ WKDW HYLGHQFH WKH JRYHUQPHQW LQGLFWHG +HOWRQ RQ RIILFHUV GLG QRW DFW XQUHDVRQDEO\ LQ UHO\LQJ XSRQ LW LQ WKLV IRXUFRXQWV  SRVVHVVLRQZLWKLQWHQWWRGLVWULEXWHFRFDLQH FDVH,Q8QLWHG6WDWHVY&]XSU\QVNL)G WK EDVHLQYLRODWLRQRI86&† D    SRVVHVVLRQRI &LU  HQ EDQF  ZH KHOG WKDW WKH /HRQ JRRGIDLWK PDULMXDQDLQYLRODWLRQRI86&† D   SRVVHVVLRQ H[FHSWLRQDSSOLHGWRXSKROGWKDWZDUUDQW$OWKRXJKWKHIDFWV RI ILUHDUPV LQ IXUWKHUDQFH RI D GUXJ WUDIILFNLQJ FULPH LQ LQ&]XSU\QVNLDUHQRWWKHVDPHDVWKRVHLQWKHSUHVHQWFDVH, YLRODWLRQ RI  86& †  F  DQG   SRVVHVVLRQ RI ZRXOG VWLOO ILQG WKDW WKHUH LV D JRRGIDLWK H[FHSWLRQ XQGHU ILUHDUPVDVDIHORQLQYLRODWLRQRI86&†† J   /HRQJLYHQWKHWRWDOLW\RIWKHFLUFXPVWDQFHVDQGDIILUPWKH  D  DQG H $VSDUWRIDSOHDDJUHHPHQW+HOWRQ GHFLVLRQRIWKHGLVWULFWFRXUW SOHDGHGJXLOW\WRFRXQWV  DQG  DQGWKHRWKHUWZRFRXQWV ZHUHGLVPLVVHG7KHSOHDDJUHHPHQWDOVRSUHVHUYHG+HOWRQjV , ZRXOG DOVR DIILUP WKH GHFLVLRQ RI WKH GLVWULFW FRXUW LQ ULJKWWRDSSHDOWKHGHQLDORIKLVVXSSUHVVLRQPRWLRQ+HOWRQ GHQ\LQJDKHDULQJXQGHU)UDQNVY'HODZDUH86 H[HUFLVHGWKDWULJKWWRDSSHDODQGZHQRZFRQVLGHUKLVDSSHDO    DV WKH GHIHQGDQW GLG QRW PDNH D VXIILFLHQW VKRZLQJIRUVXFKDKHDULQJ 7KH%DVLVIRUWKH6HDUFK:DUUDQW $WZHQW\VHYHQSDJHVL[W\IRXUSDUDJUDSKDIILGDYLWE\)%, 6SHFLDO $JHQW 5REHUW +RZDUG IRUPHG WKH EDVLV RI WKH 'HFHPEHUVHDUFKZDUUDQW+RZDUGjVDIILGDYLWUHOLHGKHDYLO\ RQLQIRUPDWLRQSURYLGHGGLUHFWO\E\DFRQILGHQWLDOLQIRUPDQW UHIHUUHG WR DV )%, ZKRVH WUDFN UHFRUG RI SURYLGLQJ LQIRUPDWLRQKDVSUHYLRXVO\UHVXOWHGLQDWOHDVWWKUHHVHDUFK ZDUUDQWVDQGVL[WHHQDUUHVWV+RZDUGjVDIILGDYLWDOVRUHOLHG RQ LQIRUPDWLRQ WKDW )%, UHFHLYHG IURP DQ DQRQ\PRXV WLSVWHU)%,$ZKRZHQWLQVLGHWKHKRXVHDW1+DUULVRQ 6WUHHWDQGVSRNHZLWKsLPPLD*UHHQ ,QDOOVL[DOOHJDWLRQVLQ+RZDUGjVDIILGDYLWVHUYHGDVWKH EDVLVIRUWKHVHDUFKZDUUDQW7KHILUVWILYHDOOHJDWLRQVUHODWH  8QLWHG6WDWHVY+HOWRQ 1R 1R 8QLWHG6WDWHVY+HOWRQ  WR *UHHQ DQGRU WKH UHVLGHQFH DW  1 +DUULVRQ 6WUHHW BBBBBBBBBBBBBB   EDVHG RQ +RZDUGjV LQYHVWLJDWLRQ WKLUW\RQH WHOHSKRQH FDOOV ZHUH PDGH IURP sDQXDU\ WR 2FWREHU  EHWZHHQ ',66(17 3HWHUVRQ 6ZDLQ DQG /LGGHOO DQG WKH WHOHSKRQH DW  1 BBBBBBBBBBBBBB +DUULVRQ6WUHHW  DFFRUGLQJWR)%,$WKHUHZHUHmVWDFNVl RI PRQH\ LQVLGH  1 +DUULVRQ 6WUHHW LQ 2FWREHU  6,/(5&LUFXLWs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sDQXDU\ $VUHFLWHGE\WKHPDMRULW\WKHDIILGDYLWILOHGE\)%,6SHFLDO DQG2FWREHU>@FDOOVZHUHPDGH $JHQW 5REHUW +RZDUG ZDV YHU\ H[WHQVLYH FRQVLVWLQJ RI IURPWHOHSKRQHVDVVRFLDWHGZLWK3HWHUVRQ6ZDLQDQG WZHQW\VHYHQSDJHVDQGVL[W\IRXUSDUDJUDSKV$GPLWWHGO\ 7KDWWHOHSKRQHLVORFDWHGDW1 VRPHRIWKHGHWDLOGLGQRWDGGPXFK+RZHYHUWKHUHZDVD +DUULVRQ 6DJLQDZ DQG LV OLVWHG WR sLPPLD *UHHQ VLJQLILFDQWDPRXQWRILQIRUPDWLRQDERXWWHOHSKRQHFDOOVDQG %HWZHHQ2FWREHUDQG1RYHPEHU>@ WKHLQIRUPDQWjVKDYLQJVHHQmVWDFNVlRIPRQH\LQWKHKRXVH  FDOOV ZHUH SODFHG WR WKH WHOHSKRQH DW  1 LQ2FWREHUWZRPRQWKVSULRUWRWKHVHDUFK7KDWLQIRUPDQW +DUULVRQ IURP WKH UHVLGHQFH WHOHSKRQH RI 5XG\ DOVRKDGEHHQWROGE\sLPPLD*UHHQWKDWWKHPRQH\EHORQJHG /LGGHOO WR'LQR3HWHUVRQDQGWKDW*UHHQZDVVWRULQJLWIRU3HWHUVRQ EHFDXVHVKHKDGQRFULPLQDOUHFRUG7KHPDMRULW\ILQGVIDXOW  ,Q HDUO\ 2FWREHU >@ )%, DGYLVHG PH WKDW ZLWK WKLV LQIRUPDWLRQ IURP WKH LQIRUPDQW OLVWHG DV )%,$ ZLWKLQ WKH SULRU IHZ GD\V )%, KDG WDONHG WR D EHFDXVHWKHUHZDVQREDFNJURXQGGDWDDERXWWKDWLQIRUPDQW SHUVRQ > )%,$@ ZKR ZDV SHUVRQDOO\ DFTXDLQWHG 7KHPDMRULW\DOVRILQGVIDXOWZLWKWKHLQIRUPDWLRQDERXWWKH ZLWKsLPPLD*UHHQ7KDWSHUVRQKDGWROG)%,WKDW mVWDFNVlRIPRQH\EHFDXVHWKHLQIRUPDQWGLGQRWVD\LQZKDW KHVKHKDGEHHQWR1+DUULVRQUHFHQWO\DQGKDG URRPVWKHVWDFNVZHUHORFDWHGQRUWKHDPRXQWRIVWDFNVQRU VHHQmVWDFNVlRIPRQH\LQWKHKRXVHsLPPLD*UHHQ ZKHWKHU WKH VWDFNV ZHUH RQ WKH IORRU RU LQ WKH FORVHW KDGWROGWKHSHUVRQ>)%,$@WKHPRQH\ZDV'LQR +RZHYHUIURP,OOLQRLVY*DWHV86  ZH 3HWHUVRQjVDQG*UHHQVDLG'LQRVWRUHGWKHPRQH\ NQRZ WKDW mOLQHE\OLQH VFUXWLQ\ >LV@   LQDSSURSULDWH LQ WKHUHEHFDXVHVKHKDGQRFULPLQDOUHFRUGDQGZRXOG UHYLHZLQJ>D@PDJLVWUDWHjVGHFLVLRQVl,GDWQ:H QRWEHVXVSHFWHGWREHLQYROYHGLQVXFKDFWLYLW\ DUHQRWWRKDYHDmJUXGJLQJRUQHJDWLYHDWWLWXGHWRZDUG ZDUUDQWVl  8QLWHG 6WDWHV Y  9HQWUHVFD  86   %DVHGRQWKHDERYH,VXEPLWWKDWWKHUHLVSUREDEOH  $VZHPRUHUHFHQWO\VWDWHGLQ8QLWHG6WDWHVY$OOHQ FDXVHWREHOLHYHWKDWsLPPLD*UHHQLVWUDIILFNLQJLQ  )G   WK &LU   HQ EDQF  m7KH &RXUW FRQWUROOHGVXEVWDQFHV,QP\H[SHULHQFH>@SHRSOH VWUHVVHGWKDWDK\SHUWHFKQLFDOFULWLTXHRIZDUUDQWVZRXOGRQO\ ZKR WUDIILF LQ LOOHJDO GUXJV QRUPDOO\ NHHS FHUWDLQ LQWKHHQGHQFRXUDJHZDUUDQWOHVVVHDUFKHVl7KXVm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jVGHQLDORI+HOWRQj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ml DUH FOHDUO\ PDUNHG RQ WKH IURQW RI WKH XQLW LQ EODFN QXPEHUV  7KHUHIRUH>@ , VXEPLW WKHUH LV SUREDEOH FDXVH WR EHOLHYH WKDW WKHUH LV FXUUHQWO\ ORFDWHG RQ WKH SUHPLVHVRI1+DUULVRQ6DJLQDZ0LFKLJDQ HYLGHQFH RI D YLRODWLRQ RI 7LWOH  8QLWHG 6WDWHV &RGHVHFWLRQV D  DQG 7KH VL[WK DOOHJDWLRQ UHODWHV WR 3HWHUVRQjV GUXJ GHDOLQJ RSHUDWLRQ$FFRUGLQJWR)%,ZKHQ3HWHUVRQGHDOWGUXJVLQ 6DJLQDZKHVWRUHGVRPHRIWKHGUXJWUDIILFNLQJSURFHHGVLQ 6DJLQDZZLWKKLVEURWKHUDQGKLVEURWKHUjVJLUOIULHQG  ,Q $XJXVW RI >@ )%, IXUWKHU DGYLVHG WKDW 3HWHUVRQFRPHVWRWKH6DJLQDZDUHDSHULRGLFDOO\DQG GLVWULEXWHVFRFDLQHWRYDULRXVLQGLYLGXDOV0RQH\  8QLWHG6WDWHVY+HOWRQ 1R 1R 8QLWHG6WDWHVY+HOWRQ  WKDW LV FROOHFWHG IURP WKH VDOHV RI WKDW FRFDLQH LV RQH RFFDVLRQ UHIXVHG WR DSSO\ WKH /HRQ UXOH ZKHUH mD JLYHQWR3HWHUVRQjVEURWKHU0LFKDHO3HWHUVRQZKR UHDVRQDEO\ SUXGHQW RIILFHU ZRXOG KDYH VRXJKW JUHDWHU VWRUHVWKHPRQH\DWWKHUHVLGHQFHRIRQHRI0LFKDHO FRUURERUDWLRQWRVKRZSUREDEOHFDXVHl:HDYHU)GDW 3HWHUVRQjVJLUOIULHQGV&RQQLH/RUNRZVNLZKROLYHV ,QVKRUWQRUHDVRQDEOHRIILFHUZRXOGKDYHDWWDFKHG DW  7UDGHZLQGV (VVH[YLOOH 0LFKLJDQ PXFKLIDQ\VLJQLILFDQFHWR)%,$jVVWDWHPHQWV 2FFDVLRQDOO\FRFDLQHLVDOVRVWRUHGDWWKH/RUNRZVNL UHVLGHQFH  /RUNRZVNL REWDLQV FRFDLQH IURP 0LNH 6HFRQGNQRZLQJWKDW)%,$jVVWDWHPHQWVVKRXOGEHKHDYLO\ 3HWHUVRQDQGWKHQVKHVHOOVWKHFRFDLQHDW+RRWHUV GLVFRXQWHG QR UHDVRQDEOH RIILFHU ZRXOG EHOLHYH WKDW WKH 5HVWDXUDQWLQ%D\&LW\ZKHUHVKHZRUNV/RUNRZVNL +RZDUGDIILGDYLWHVWDEOLVKHGSUREDEOHFDXVHWRVHDUFKWKH KLGHVFRFDLQHLQWKHWRLOHWWDQNDWKHUUHVLGHQFH 1+DUULVRQ6WUHHWUHVLGHQFH$VGLVFXVVHGDERYHZLWK)%, $jVVWDWHPHQWVUHFHLYLQJOLWWOHZHLJKWWKHRWKHUDOOHJDWLRQVLQ &RQVSLFXRXVO\DEVHQWIURPSDUDJUDSKLVDQ\PHQWLRQWKDW WKH +RZDUG DIILGDYLW GR QRW VXIILFH WR HVWDEOLVK SUREDEOH 3HWHUVRQVWRUHGPRQH\ZLWKSHUVRQVRWKHUWKDQKLVEURWKHURU FDXVH$UHDVRQDEOHRIILFHUNQRZVWKDWHYLGHQFHRIWKUHHFDOOV KLVEURWKHUjVJLUOIULHQGVXFKDV*UHHQRU+HOWRQ,QVKRUW DPRQWKWRNQRZQGUXJGHDOHUVIURPDKRXVHDGHVFULSWLRQRI EDVHG RQ WKRVH VL[ DOOHJDWLRQV DQG ZLWKRXW IXUWKHU WKDWKRXVHDQGDQDOOHJDWLRQWKDWDGUXJGHDOHUVWRUHVGUXJ FRUURERUDWLRQDPDJLVWUDWHMXGJHDXWKRUL]HGWKHVHDUFKRIWKH SURFHHGVZLWKKLVEURWKHUDQGKLVEURWKHUjVJLUOIULHQG QHLWKHU 1+DUULVRQ6WUHHWUHVLGHQFH RIZKRPOLYHDWRUDUHNQRZQWRYLVLWWKDWKRXVH IDOOVZHOO VKRUWRIHVWDEOLVKLQJSUREDEOHFDXVHWKDWWKHKRXVHFRQWDLQV 7KH'LVWULFW&RXUWjV7UHDWPHQWRI+HOWRQjV6XSSUHVVLRQ HYLGHQFHRIDFULPH0RUHRYHUEHFDXVH)%,$j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sLPPLD *UHHQ ZKLFK REWDLQHG IURP WKH VHDUFK RI WKH  1 +DUULVRQ 6WUHHW DWWDFNHGWKHYHUDFLW\RISDUDJUDSKRIWKH+RZDUGDIILGDYLW UHVLGHQFHVKRXOGKDYHEHHQVXSSUHVVHG ,QKHUDIILGDYLW*UHHQGHQLHGKDYLQJmVWDFNVlRIPRQH\DW  1 +DUULVRQ 6WUHHW EXW DGPLWWHG WR KDYLQJ D FULPLQDO ,9 UHFRUG%DVHGRQWKRVHDYHUPHQWVZKLFKFDOOHGSRUWLRQVRI SDUDJUDSKLQWRTXHVWLRQ+HOWRQVRXJKWD)UDQNVKHDULQJ ,Q KLV ILQDO DUJXPHQW +HOWRQ FRQWHQGV WKDW WKH VHDUFK WRVWULNHSRUWLRQVRIWKDWSDUDJUDSK7KLUGLQRUDODUJXPHQW ZDUUDQW DIILGDYLW FRQWDLQHG IDOVH VWDWHPHQWV PDGH ZLWK EHIRUHWKHPDJLVWUDWHMXGJH+HOWRQjVFRXQVHOUDLVHGVWDOHQHVV UHFNOHVVGLVUHJDUGIRUWKHWUXWKDQGDVDUHVXOWKHLVHQWLWOHG FRQFHUQV+HDUJXHGWKDWWKH+RZDUGDIILGDYLWjVDOOHJDWLRQV WRD)UDQNVKHDULQJWRGHWHUPLQHZKHWKHUDSUHSRQGHUDQFHRI WKHHYLGHQFHVXSSRUWVVWULNLQJWKRVHSRUWLRQVRIWKHDIILGDYLW 6HH)UDQNVY'HODZDUH86  8QLWHG  6WDWHVY*LDFDORQH)G WK&LU  +HOWRQj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mZKHWKHUDUHDVRQDEO\ZHOOWUDLQHGRIILFHUZRXOG ZHUHVWDOHEHFDXVHWKHUHIHUHQFHWRmVWDFNVlRIPRQH\ZDV KDYH NQRZQ WKDW WKH VHDUFK ZDV LOOHJDO GHVSLWH WKH EDVHGRQDQREVHUYDWLRQLQ2FWREHUDSSUR[LPDWHO\WZR PDJLVWUDWHjVGHFLVLRQl/HRQ86DWQVHHDOVR PRQWKVEHIRUHWKH+RZDUGDIILGDYLWZDVILOHG $OOHQ)G *LOPDQsFRQFXUULQJ  7KH JRYHUQPHQW FRXQWHUHG HDFK RI +HOWRQjV FKDOOHQJHV %6WDQGDUGRI5HYLHZ )LUVWWKHJRYHUQPHQWUHVSRQGHGWKDWWKHUHZDVSUREDEOHFDXVH WR VHDUFK  1 +DUULVRQ 6WUHHW  1H[W WKH JRYHUQPHQW 7KH/HRQGHWHUPLQDWLRQLVUHYLHZHGXQGHUWKHVDPHGXDO DUJXHG WKDW WKH /HRQ JRRGIDLWK UXOH FXUHG DQ\ DEVHQFH RI VWDQGDUGRI UHYLHZDVWKHSUREDEOHFDXVHGHWHUPLQDWLRQn SUREDEOH FDXVH EHFDXVH WKH RIILFHUV ZKR REWDLQHG DQG FOHDUHUURUUHYLHZIRUILQGLQJVRIIDFWDQGGHQRYRUHYLHZIRU H[HFXWHG WKH ZDUUDQW DFWHG REMHFWLYHO\ UHDVRQDEO\ DQG LQ OHJDO FRQFOXVLRQV  /HDNH  )G DW   $V D OHJDO JRRGIDLWK  7KH JRYHUQPHQW DOVR DUJXHG DJDLQVW D )UDQNV FRQFOXVLRQ WKH GLVWULFW FRXUWjV XOWLPDWH GHFLVLRQ RQ WKH KHDULQJEHFDXVH+RZDUGZDVQRWNQRZLQJO\RUGHOLEHUDWHO\ DSSOLFDWLRQRIWKH/HRQUXOHLVUHYLHZHGGHQRYR,G GLVUHJDUGLQJ WKH WUXWKIXOQHVV RI PDWWHUV LQ WKH DIILGDYLW )LQDOO\ DW RUDO DUJXPHQW EHIRUH WKH PDJLVWUDWH MXGJH WKH &$QDO\VLVRIWKH/HRQ5XOH JRYHUQPHQWUHVSRQGHGWRWKHVWDOHQHVVGHIHQVHE\FRQWHQGLQJ WKDWVWDOHQHVVZDVSDUWRIWKHSUREDEOHFDXVHGHWHUPLQDWLRQ 7KHDSSOLFDWLRQRIWKHWKLUG/HRQH[FHSWLRQLVJRYHUQHGE\ DQGWKDWSUREDEOHFDXVHVWLOOH[LVWHGRQWKHGDWHRIWKHVHDUFK ZKHWKHUWKHLQYHVWLJDWLQJRIILFHUVjFRQGXFWZDVREMHFWLYHO\ EHFDXVH*UHHQVWRUHGPRQH\IRU3HWHUVRQRYHUDQH[WHQGHG UHDVRQDEOH  +HUH ZKHUH WKH DIILGDYLW GLG QRW HVWDEOLVK SHULRGRIWLPH SUREDEOHFDXVHWKHWKLUG/HRQH[FHSWLRQWXUQVRQZKHWKHUD UHDVRQDEOH RIILFHU ZRXOG NQRZ WKDW WKH DIILGDYLW IDLOHG WR 7KH PDJLVWUDWH MXGJH HYDOXDWHG WKRVH DUJXPHQWV DQG HVWDEOLVK SUREDEOH FDXVH  ,Q OLJKW RI WKH SDUWLFXODU UHFRPPHQGHG GHQ\LQJ +HOWRQjV VXSSUHVVLRQ PRWLRQ  7KH GHILFLHQFLHVZLWKWKH+RZDUGDIILGDYLWZHPDNHWZRLQTXLUHV PDJLVWUDWHMXGJHGHWHUPLQHGWKDWSUREDEOHFDXVHH[LVWHGIRU KHUH  ZKHWKHUDUHDVRQDEOHRIILFHUZRXOGEHOLHYHWKDWWKH WKHVHDUFKRIWKH1+DUULVRQ6WUHHWUHVLGHQFH$VSDUW DQRQ\PRXVWLSVWHUjVVWDWHPHQWVZLWKRXWPRUHFRUURERUDWLRQ RIKLVDQDO\VLVKHFRQFOXGHGWKDWWKH+RZDUGDIILGDYLWZDV ZHUHWUXVWZRUWK\DQGUHOLDEOHDQG  ZKHWKHUDUHDVRQDEOH QRWVWDOH1H[WWKHPDJLVWUDWHMXGJHUHFRPPHQGHGDJDLQVW RIILFHUZRXOGEHOLHYHWKDWWKH+RZDUGDIILGDYLWHVWDEOLVKHG KROGLQJD)UDQNVKHDULQJEHFDXVHmLILPSURSULHW\WRRNSODFH SUREDEOHFDXVHWRVHDUFKWKH1+DUULVRQ6WUHHWUHVLGHQFH LWZDVPRUHLQWKHQDWXUHRIQHJOLJHQFHRULQQRFHQWPLVWDNH 8OWLPDWHO\ ZH FRQFOXGH WKDW QR UHDVRQDEOH RIILFHU ZRXOG UDWKHUWKDQUHFNOHVVQHVVRQWKHSDUWRIWKHDIILDQWl'HVSLWH EHOLHYHHLWKHULQTXLU\ KLVILQGLQJRISUREDEOHFDXVHWKHPDJLVWUDWHMXGJHDGGUHVVHG WKH/HRQJRRGIDLWKUXOH7KHUHKHUHFRPPHQGHGWKDWWKH )LUVWQRUHDVRQDEOHRIILFHUZRXOGDIIRUGPXFKZHLJKWWR /HRQ JRRGIDLWK UXOH FXUH DQ\ GHIHFW LQ SUREDEOH FDXVH WKHDQRQ\PRXVWLSVWHUjVVWDWHPHQWV$VGLVFXVVHGDERYH)%, EHFDXVH WKH ZDUUDQW ZDV QRW mVR ODFNLQJ LQ WKH LQGLFLD RI $jVVWDWHPHQWVRULJLQDWHGIURPDQXQNQRZQXQWHVWHGVRXUFH WKH\ZHUHWKHSURGXFWRIPXOWLSOHOD\HUVRIKHDUVD\WKH\ZHUH VSDUVHLQUHOHYDQWGHWDLODQGPRVWLPSRUWDQWO\WKH\ZHUHQRW FRUURERUDWHG LQ DQ\ PHDQLQJIXO PDQQHU  ,Q OLJKW RI WKRVH PDJLVWUDWH MXGJHjV UHFRPPHQGDWLRQ RQ WKDW SRLQW VKRUWFRPLQJVQRUHDVRQDEOHRIILFHUZRXOGSODFHPXFKLIDQ\  ZHLJKW LQ )%,$jV UHSRUW  0RUHRYHU DW D PLQLPXP D %HIRUH FRQVLGHULQJ WKH PHULWV RI WKH DUJXPHQWV WKH PDJLVWUDWH MXGJH 8:, 854390 UHDVRQDEOHRIILFHUZRXOGKDYHVRXJKWWRFRUURERUDWH)%,$jV LQTXLUHG LQWR ZKHWKHU KH VKRXOG UHFXVH KLPVHOI XQGHU  86& †  EHFDXVH KH KDG LVVXHG WKH VHDUFK ZDUUDQW 8OWLPDWHO\ KH VWDWHPHQWVIXUWKHUHVSHFLDOO\VLQFHWKLV&RXUWKDVRQDWOHDVW GHFOLQHG WR UHFXVH KLPVHOI  8QLWHG6WDWHVY+HOWRQ 1R 1R 8QLWHG6WDWHVY+HOWRQ  SUREDEOHFDXVHDVWRFOHDUO\LQGLFDWHWRSROLFHDXWKRULWLHVWKDW ,,, WKLVZDUUDQWVKRXOGQRWEHH[HFXWHGl (YHQZLWKRXWSUREDEOHFDXVHIUXLWVRIDVHDUFKPD\VWLOO 7KHGLVWULFWFRXUWLQLWLDOO\GHFOLQHGWRDFFHSWWKHPDJLVWUDWH VXUYLYHWKHH[FOXVLRQDU\UXOHXQGHUWKH/HRQJRRGIDLWKUXOH MXGJHj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mWKH DGLIIHUHQWUHVXOW)LUVWLWGHFOLQHGWRKROGD)UDQNVKHDULQJ PDUJLQDO RU QRQH[LVWHQW EHQHILWV SURGXFHG E\ VXSSUHVVLQJ EHFDXVH WKHUH ZDV mQR EDVLV WR EHOLHYH WKDW WKH DIILDQW HYLGHQFH REWDLQHG LQ REMHFWLYHO\ UHDVRQDEOH UHOLDQFH RQ D > +RZDUG@ DFWHG ZLWK UHFNOHVV LQGLIIHUHQFH WR WKH WUXWKl VXEVHTXHQWO\ LQYDOLGDWHG VHDUFK ZDUUDQW FDQQRW MXVWLI\ WKH 1H[W WKH GLVWULFW FRXUW UHMHFWHG WKH VWDOHQHVV DUJXPHQW VXEVWDQWLDOFRVWVRIH[FOXVLRQl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jV LVVXLQJ PDJLVWUDWH ODFNHG QHXWUDOLW\ DQG GHWDFKPHQW VXSSUHVVLRQPRWLRQ   WKH DIILGDYLW LV GHYRLG RI LQIRUPDWLRQ WKDW ZRXOG VXSSRUW D SUREDEOH FDXVH GHWHUPLQDWLRQ PDNLQJ DQ\ +HOWRQDSSHDOHGWKHGLVWULFWFRXUWjVUXOLQJ2QDSSHDOKH EHOLHI WKDW SUREDEOH FDXVH H[LVWV FRPSOHWHO\ UDLVHVWKUHHDUJXPHQWV)LUVWKHGLVSXWHVWKHDSSOLFDWLRQRI XQUHDVRQDEOHRU WKHZDUUDQWLVIDFLDOO\GHILFLHQW WKH /HRQ JRRGIDLWK UXOH KHUH  6HFRQG KH VHHNV D )UDQNV KHDULQJEDVHGRQ+RZDUGj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mQR UHDVRQDEOH JURXQGV IRU EHOLHYLQJWKDWWKHZDUUDQWZDVSURSHUO\LVVXHGl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nWKHSKRQHORJDQG3HWHUVRQjVVWRUDJHRIGUXJPRQH\ $/HJDO3ULQFLSOHV5HJDUGLQJ3UREDEOH&DXVH ZLWKRWKHUV&HUWDLQO\WKHIDFWWKDWDOOHJDWLRQV D DQG F GR QRWFRQWUDGLFWDOOHJDWLRQV G DQG H LQFUHDVHVWKHOLNHOLKRRG $EDVLFSULQFLSOHRIWKH)RXUWK$PHQGPHQWLVWKDWWKHUH WKDWDOOHJDWLRQV G DQG H DUHWUXH1HYHUWKHOHVVWKLVODFNRI PXVWEHSUREDEOHFDXVHIRUDVHDUFKZDUUDQWWRLVVXH86 LQFRQVLVWHQF\DGGVOLWWOHWRWKHRYHUDOOEHOLHYDELOLW\RI)%, & $% DPHQG ,9 m>1@R :DUUDQWV VKDOO LVVXH EXW XSRQ $jVUHSRUW SUREDEOH FDXVH VXSSRUWHG E\ 2DWK RU DIILUPDWLRQ DQG SDUWLFXODUO\ GHVFULELQJ WKH SODFH WR EH VHDUFKHG DQG WKH $OOHJDWLRQ I WKHDVVHUWLRQWKDW*UHHQVWRUHGGUXJPRQH\ SHUVRQVRUWKLQJVWREHVHL]HGl VHHDOVR 8QLWHG6WDWHVY IRU 3HWHUVRQ EHFDXVH VKH KDG QR FULPLQDO UHFRUG ZDV QRW $OOHQ)G WK&LU  HQEDQF  &OD\s FRUURERUDWHG  7KDW DOOHJDWLRQ ZDV DUJXDEO\ WKH HDVLHVW WR GLVVHQWLQJ  m>7@KHUHTXLUHPHQWWKDWDZDUUDQWEHVXSSRUWHG FRQILUPEXWWKHLQYHVWLJDWLQJRIILFHUVGRQRWUHSRUWPDNLQJ E\VSHFLILFHYLGHQFHRIFULPLQDODFWLYLW\EHIRUHEHLQJLVVXHG DQ\ HIIRUW WR YHULI\ *UHHQjV FULPLQDO UHFRUG  1RU GR WKH LVGHHSO\URRWHGLQRXUKLVWRU\l 8QLWHG6WDWHVY:HDYHU RIILFHUVUHSRUWH[DPLQLQJWKHFULPLQDOUHFRUGV RI WKHRWKHU )G   WK &LU   HODERUDWLQJ WKDW mWKH WZR SHRSOH ZLWK ZKRP 3HWHUVRQ DOOHJHGO\ VWRUHG GUXJ DIILGDYLW SUHVHQWHG PXVW FRQWDLQ DGHTXDWH VXSSRUWLQJ IDFWV SURFHHGVKLVEURWKHUDQGKLVEURWKHUjVJLUOIULHQGDVDPHDQV DERXW WKH XQGHUO\LQJ FLUFXPVWDQFHV WR VKRZ WKDW SUREDEOH RI FRUURERUDWLQJ WKDW 3HWHUVRQ XVHG WKH ODFN RI D FULPLQDO FDXVHH[LVWVIRUWKHLVVXDQFHRIWKHZDUUDQWl 7KLV&RXUWKDV UHFRUGDVDFULWHULRQIRUGHFLGLQJWKHSHUVRQVZLWKZKRPKH H[SODLQHGWKDWm>S@UREDEOHFDXVHH[LVWVZKHQWKHUHLVDµIDLU VWRUHGGUXJSURFHHGV7KXVZLWKRXWFRUURERUDWLRQZHGRQRW SUREDELOLW\j JLYHQ WKH WRWDOLW\ RI WKH FLUFXPVWDQFHV WKDW LQFUHDVHWKHZHLJKWDIIRUGHGWRDOOHJDWLRQ I  FRQWUDEDQG RU HYLGHQFH RI D FULPH ZLOO EH IRXQG LQ D SDUWLFXODUSODFHl8QLWHG6WDWHVY'DYLGVRQ)G ,Q VXP DOOHJDWLRQV G  WKURXJK I  KDYH QRW EHHQ  WK&LU  TXRWLQJ8QLWHG6WDWHVY/RJJLQV PHDQLQJIXOO\FRUURERUDWHG$VDUHVXOWWKHLULPSDFWGRHVQRW )G WK&LU  SHUFXULDP 0RUHRYHUZKHUH ULVHPXFKEH\RQGWKHLUPLQLPDOO\SHUVXDVLYHLQKHUHQWYDOXHV DQDIILGDYLWLVWKHEDVLVIRUDSUREDEOHFDXVHGHWHUPLQDWLRQ &RQVHTXHQWO\ WKH\ DGG OLWWOH WR WKH SUREDEOH FDXVH WKDWDIILGDYLWmPXVWSURYLGHWKHPDJLVWUDWHZLWKDVXEVWDQWLDO GHWHUPLQDWLRQ EDVLV IRU GHWHUPLQLQJ WKH H[LVWHQFH RI SUREDEOH FDXVHl ,OOLQRLVY*DWHV86   3UREDEOH&DXVHLQ/LJKWRIWKH7RWDOLW\RIWKH &LUFXPVWDQFHV ,QHYDOXDWLQJZKHWKHUSUREDEOHFDXVHH[LVWVIRULVVXLQJD VHDUFK ZDUUDQW D MXGLFLDO RIILFHU PD\ UHO\ RQ KHDUVD\ :HQRZFRQVLGHUZKHWKHUWKHWRWDOLW\RIDOOVL[DOOHJDWLRQV HYLGHQFH8QLWHG6WDWHVY6PLWK)G WK&LU VXIILFHV WR HVWDEOLVK SUREDEOH FDXVH  $V VWDWHG DERYH  :HDYHU)GDWVHHJHQHUDOO\sRQHVY8QLWHG DOOHJDWLRQV D  WKURXJK F  IDOO ZHOO VKRUW RI HVWDEOLVKLQJ 6WDWHV  86     m,Q WHVWLQJ WKH SUREDEOHFDXVHWRVHDUFKWKH1+DUULVRQ6WUHHWUHVLGHQFH VXIILFLHQF\ RI SUREDEOH FDXVH IRU DQ RIILFHUjV DFWLRQ HYHQ $OVRIURPDERYHDOOHJDWLRQV G WKURXJK I KDYHPLQLPDO ZLWKRXW D ZDUUDQW ZH KDYH KHOG WKDW KH PD\ UHO\ XSRQ SHUVXDVLYHYDOXH&RQVHTXHQWO\HYHQZKHQDOOVL[DOOHJDWLRQV LQIRUPDWLRQUHFHLYHGWKURXJKDQLQIRUPDQWUDWKHUWKDQXSRQ DUHFRQVLGHUHGLQWKHDJJUHJDWHWKH\IDLOWRHVWDEOLVKSUREDEOH KLVGLUHFWREVHUYDWLRQVVRORQJDVWKHLQIRUPDQWjVVWDWHPHQW FDXVHE\DVLJQLILFDQWPDUJLQ  8QLWHG6WDWHVY+HOWRQ 1R 1R 8QLWHG6WDWHVY+HOWRQ  LV UHDVRQDEO\ FRUURERUDWHG E\ RWKHU PDWWHUV ZLWKLQ WKH WLPH LV RI OHVV VLJQLILFDQFHjl  TXRWLQJ 8QLWHG 6WDWHV Y RIILFHUjVNQRZOHGJHl RYHUUXOHGRQRWKHUJURXQGVE\8QLWHG +HQVRQ)G WK&LU 1HYHUWKHOHVV 6WDWHVY6DOYXFFL86  :KHQFRQIURQWHGZLWK ZLWKHDFKGD\WKDWSDVVHGWKHOLNHOLKRRGWKDWWKHmVWDFNVlRI KHDUVD\ LQIRUPDWLRQ IURP D FRQILGHQWLDO LQIRUPDQW RU DQ PRQH\ UHPDLQHG DW  1 +DUULVRQ 6WUHHW GHFUHDVHG  ,Q DQRQ\PRXV WLSVWHU D FRXUW PXVW FRQVLGHU WKH YHUDFLW\ VKRUW UHOLDELOLW\ FRQFHUQV GHWUDFW DOEHLW OHVV VR WKDQ WKH UHOLDELOLW\DQGWKHEDVLVRINQRZOHGJHIRUWKDWLQIRUPDWLRQDV YHUDFLW\ FRQFHUQV IURP WKH SHUVXDVLYHQHVV RI )%,$jV SDUW RI WKH WRWDOLW\ RI WKH FLUFXPVWDQFHV IRU HYDOXDWLQJ WKH DQRQ\PRXVWLS LPSDFWRIWKDWLQIRUPDWLRQ )LQDOO\WKHUHLVOLWWOHUHDVRQIRUFRQFOXGLQJWKDW)%,$KDG 7KHWDVNRIWKHLVVXLQJPDJLVWUDWHLVVLPSO\WRPDNHD D VRXQG EDVLV IRU NQRZOHGJH IRU WKH WLS  7KH mEDVLV IRU SUDFWLFDOFRPPRQVHQVHGHFLVLRQZKHWKHUJLYHQDOOWKH NQRZOHGJHlIDFWRUXVHVWKHGHJUHHRIGHWDLOLQDWLSWRLQIHU FLUFXPVWDQFHV VHW IRUWK LQ WKH DIILGDYLW EHIRUH KLP ZKHWKHU WKH WLSVWHU mKDG D UHOLDEOH EDVLV IRU PDNLQJ KLV LQFOXGLQJ WKH mYHUDFLW\l DQG mEDVLV RI NQRZOHGJHl RI VWDWHPHQWVl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mVWDFNVl RI PRQH\ DQG QR IXUWKHU FULPLQDO 'D\WRQ)G WK&LU 8QLWHG6WDWHVY DFWLYLW\OHQGVVRPHFUHGLELOLW\WR)%,$jVUHSRUWEHFDXVHLW &DQDQ)G WK&LU  VXJJHVWV WKDW )%,$ GLG QRW H[DJJHUDWH KLV RU KHU DOOHJHG SHUFHSWLRQV,QLWVWRWDOLW\KRZHYHU)%,$jVDQRQ\PRXVWLS :LWKLQ WKDW IUDPHZRUN SUHFHGHQW SURYLGHV DGGLWLRQDO ZDVVSDUVHLQUHOHYDQWGHWDLODQGIRUWKDWUHDVRQLWDJDLQORVHV GLUHFWLRQIRUWKHWUHDWPHQWRIKHDUVD\LQIRUPDWLRQSURYLGHGE\ SHUVXDVLYHYDOXH6HH$OOHQ)GDW FRQILGHQWLDOLQIRUPDQWVDQGDQRQ\PRXVWLSVWHUV)RUKHDUVD\ HYLGHQFHIURPDFRQILGHQWLDOLQIRUPDQWWKLV&RXUWKDVKHOG 3XWWLQJ WKH YHUDFLW\ UHOLDELOLW\ DQG EDVLV RI NQRZOHGJH WKDW mLI WKH SULRU WUDFN UHFRUG RI DQ LQIRUPDQW DGHTXDWHO\ IDFWRUV WRJHWKHU ZH DIIRUG PLQLPDO ZHLJKW WR WKH LQKHUHQW VXEVWDQWLDWHVKLVFUHGLELOLW\RWKHULQGLFLDRIUHOLDELOLW\DUHQRW YDOXHRI)%,$jVVWDWHPHQWV'HVSLWHWKHPLQLPDOSUREDWLYH QHFHVVDULO\UHTXLUHGl6PLWK)GDW$QRQ\PRXV YDOXHRI)%,$jVWLSVWDQGLQJE\LWVHOIWKHWLSFRXOGWDNHRQ WLSV KRZHYHU GHPDQG PRUH VWULQJHQW VFUXWLQ\ RI WKHLU DQLQFUHDVHGOHYHORIVLJQLILFDQFHLILWZHUHFRUURERUDWHGHYHQ YHUDFLW\UHOLDELOLW\DQGEDVLVRINQRZOHGJHWKDQUHSRUWVIURP LQSDUWE\ODWHULQYHVWLJDWLRQ6HH/HDNH)GDW FRQILGHQWLDO LQIRUPDQWV  *UHHQH  )G DW   )RU XQGHUVFRULQJWKHLPSRUWDQFHRILQYHVWLJDWLQJDQDQRQ\PRXV LQVWDQFHLQ)ORULGDYs/WKH6XSUHPH&RXUWH[SODLQHGWKDW WLSEHIRUHDZDUUDQWLVUHTXHVWHG +HUHKRZHYHUWKHODZ LQWKHLQYHVWLJDWRU\VWRSFRQWH[WmµDQDQRQ\PRXVWLSDORQH HQIRUFHPHQWRIILFHUVGLGQRWFRUURERUDWH)%,$jVDOOHJDWLRQV VHOGRPGHPRQVWUDWHVWKHLQIRUPDQWjVEDVLVRINQRZOHGJHRU YHUDFLW\jl86   TXRWLQJ$ODEDPDY )RULQVWDQFHDOWKRXJKDOOHJDWLRQV G DQG H VXJJHVWWKDW :KLWH  86      &HQWUDO WR WKH &RXUWjV HYLGHQFHRIFULPLQDODFWLYLW\nVWRULQJVWDFNVRI3HWHUVRQjV KROGLQJZDVWKHQRWLRQWKDWDOWKRXJKWKHDQRQ\PRXVWLSVWHU GUXJ PRQH\ n H[LVWHG DW  1 +DUULVRQ 6WUHHW WKH SURYLGHG DFFXUDWH LQIRUPDWLRQ DERXW WKH ORFDWLRQ DQG LQYHVWLJDWLQJRIILFHUVGLGQRWPRQLWRUWKHVXVSLFLRXVUHVLGHQFH  8QLWHG6WDWHVY+HOWRQ 1R 1R 8QLWHG6WDWHVY+HOWRQ  )LUVW +RZDUGjV DIILGDYLW GRHV QRW SURYLGH D EDVLV IRU DSSHDUDQFHRIFRQFHDOHGFULPLQDODFWLYLW\ DMXYHQLOHZLWKD WUXVWLQJWKHYHUDFLW\RI)%,$jVDOOHJDWLRQV7KLV&RXUWKDV ILUHDUP  WKH WLS KDG WR mEH UHOLDEOH LQ LWV DVVHUWLRQ RI SUHYLRXVO\H[SODLQHGWKDWm>D@QDIILGDYLWPXVWFRQWDLQD LOOHJDOLW\QRWMXVWLQLWVWHQGHQF\WRLGHQWLI\DGHWHUPLQDWLYH VWDWHPHQW DERXW VRPH RI WKH XQGHUO\LQJ FLUFXPVWDQFHV SHUVRQl,GDW%DVHGRQWKDWSULQFLSOHWKH6XSUHPH LQGLFDWLQJWKHLQIRUPDQWZDVFUHGLEOHRUWKDWKLVLQIRUPDWLRQ &RXUWDIILUPHGWKHVXSSUHVVLRQRIHYLGHQFHREWDLQHGIURPDQ ZDVUHOLDEOHl6PLWK)GDWVHHDOVR*DWHV LQYHVWLJDWRU\VWRSZKHUHWKHFULPLQDODFWLYLW\FRPSRQHQWRI 86DW'HVSLWHWKDWH[KRUWDWLRQWKH+RZDUGDIILGDYLW WKH DQRQ\PRXV WLS ZDV QRW FRUURERUDWHG  ,G  7KLV &RXUW IDLOV WR SURYLGH DQ\ EDFNJURXQG LQIRUPDWLRQ DERXW )%,$ UHDFKHGDVLPLODUUHVXOWLQ8QLWHG6WDWHVY/HDNH)G 7KHDIILGDYLWOLNHZLVHIDLOVWRRIIHUDQ\EDVLVIRUEHOLHYLQJ  WK&LU ZKHUHLWFRQFOXGHGWKDWWKHSHUVXDVLYH WKDW)%,$ZRXOGEHWHOOLQJWKHWUXWK7KHVHRPLVVLRQVDUH YDOXH RI DQ DQRQ\PRXV WLS VSDUVH LQ UHOHYDQW GHWDLO DQG H[DFHUEDWHGEHFDXVH)%,$KDVQRWUDFNUHFRUGRISURYLGLQJ ZKROO\ XQFRUURERUDWHG ZDV WRR ORZ WR HVWDEOLVK SUREDEOH DFFXUDWHWLSV)RUWKRVHUHDVRQVZHPXVWXQGHU6PLWKSODFH FDXVH,GDWVHHDOVR$OOHQ)GDW DSSURYLQJ OLWWOHZHLJKWLQWKHYHUDFLW\RI)%,$jVUHSRUW RIWKH/HDNHKROGLQJ  )%,$jVDQRQ\PRXVWLSDOVRKDVUHOLDELOLW\SUREOHPV)RU %6WDQGDUGRI5HYLHZ VWDUWHUV WKH VWDWHPHQWV FDPH IURP SHUVRQV WZR DQG WKUHH GHJUHHV UHPRYHG IURP WKH DIILDQW VR WKH DFFXUDF\ RI WKH $QDSSHOODWHFRXUWUHYLHZVDGLVWULFWFRXUWjVGHWHUPLQDWLRQ WUDQVPLVVLRQ LV TXHVWLRQDEOH IURP WKH RXWVHW  ,Q DGGLWLRQ RI SUREDEOH FDXVH DW D VXSSUHVVLRQ KHDULQJ XQGHU WZR )%,$jV UHSRUW RI VHHLQJ WKH mVWDFNVl RI PRQH\ ZDV WZR mFRPSOHPHQWDU\lVWDQGDUGV/HDNH)GDW7KH PRQWKVROG*HQHUDOO\DFRXUWFRQVLGHUVWKHIROORZLQJIRXU IDFWXDOILQGLQJVDUHXSKHOGXQOHVVWKH\DUHFOHDUO\HUURQHRXV IDFWRUVLQGHWHUPLQLQJ ZKHWKHUDSUREDEOHFDXVHILQGLQJLV DQGWKHOHJDOFRQFOXVLRQVDUHUHYLHZHGGHQRYR6PLWK VWDOH mWKH GHIHQGDQWjV FRXUVH RI FRQGXFW WKH QDWXUH DQG )GDW/HDNH)GDW0RUHRYHUWKLV&RXUW GXUDWLRQRIWKHFULPHWKHQDWXUHRIWKHUHOHYDQWHYLGHQFHDQG DIIRUGVmJUHDWGHIHUHQFHlWRWKHLVVXLQJMXGJHjVILQGLQJVLQ DQ\FRUURERUDWLRQRIWKHROGHUDQGPRUHUHFHQWLQIRUPDWLRQl VXSSRUWRIDVHDUFKZDUUDQWDQGZLOOQRWVHWWKHPDVLGHXQOHVV 8QLWHG6WDWHVY&]XSU\QVNL)G WK&LU WKH\ZHUHDUELWUDU\*UHHQH)GDW$OOHQ)G HQEDQF %HFDXVHWKHHYLGHQFHRIFULPLQDODFWLYLW\KHUHLV DW  0D\V  )G DW  :HDYHU  )G DW  WKHVWRUDJHRIGUXJPRQH\WKHOLNHO\GXUDWLRQRIWKLVHYLGHQFH /HDNH)GDW LVUHODWLYHO\ORQJ6HH&DQDQ)GDW mµ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jV VWDOHQHVV GHIHQVH LV QRWKLQJ PRUH WKDQ D FKDOOHQJH /HRQ WR SUREDEOH FDXVH WKDW LV VXEMHFW WR WKH JRRGIDLWK UXOH6HH *UHHQH  WRJURXSWKHVL[DOOHJDWLRQVE\WKHLUVRXUFH2QHDOOHJDWLRQ  )G DW  ZDVLQGHSHQGHQWO\FRQILUPHGE\DIILDQW+RZDUG D WKLUW\  8QLWHG6WDWHVY+HOWRQ 1R 1R 8QLWHG6WDWHVY+HOWRQ  RQHWHOHSKRQHFDOOVZHUHPDGHIURPsDQXDU\WR2FWREHU VHH DOVR $OOHQ  )G DW  &OD\ s GLVVHQWLQJ EHWZHHQ3HWHUVRQ6ZDLQDQG/LGGHOODQGWKHWHOHSKRQHDW H[SODLQLQJZLWKGLVVDWLVIDFWLRQWKDWm>D@VDUHVXOWRIWRGD\jV  1 +DUULVRQ 6WUHHW  7ZR DOOHJDWLRQV FDPH WR +RZDUG KROGLQJDQ\WLSSURYLGHGE\DQLQIRUPDQWZKRKDVSURYLGHG IURPDFRQILGHQWLDOLQIRUPDQW)%, E WKH1+DUULVRQ UHOLDEOHLQIRUPDWLRQWRWKHSROLFHLQWKHSDVWLVVXIILFLHQWWR 6WUHHW KRXVH ZDV D \HOORZ GXSOH[ QHDU WKH LQWHUVHFWLRQ RI FRQVWLWXWHSUREDEOHFDXVHIRUWKHZDUUDQWWRLVVXHLUUHVSHFWLYH +DUULVRQ DQG 0LOOHU 6WUHHWV DQG F  3HWHUVRQ VWRUHG GUXJ RIWKHEDUHJHQHUDOL]HGQDWXUHRIWKHLQIRUPDWLRQSURYLGHG PRQH\ZLWKKLVEURWKHUDQGKLVEURWKHUjVJLUOIULHQG7KUHH DQGZLWKRXWDQ\FRUURERUDWLRQE\WKHSROLFHl *UHHQH DOOHJDWLRQVRULJLQDWHIURP)%,$DQDQRQ\PRXVWLSVWHUDQG )GDW m6L[WK&LUFXLWSUHFHGHQWFOHDUO\HVWDEOLVKHVWKDW ZHUH UHOD\HG WR DIILDQW +RZDUG E\ )%, G  WKHUH ZHUH WKHDIILDQWQHHGRQO\VSHFLI\WKDWWKHFRQILGHQWLDOLQIRUPDQW mVWDFNVlRIPRQH\LQVLGH1+DUULVRQ6WUHHWLQ2FWREHU KDV JLYHQ DFFXUDWH LQIRUPDWLRQ LQ WKH SDVW WR TXDOLI\ DV  H *UHHQDGPLWWHGWKDWVKHKHOGPRQH\IRU3HWHUVRQ UHOLDEOHl  DQG I *UHHQDGPLWWHGWKDWWKHUHDVRQ3HWHUVRQZDQWHGKHUWR VWRUHWKHPRQH\ZDVEHFDXVHVKHKDGQRFULPLQDOKLVWRU\:H 'HVSLWH WKH OLNHOLKRRG WKDW DOOHJDWLRQV E  DQG F  DUH QRZ HYDOXDWH ZKHWKHU WKHVH DOOHJDWLRQV HVWDEOLVK SUREDEOH DFFXUDWHWKH\DGGOLWWOHWRWKHSUREDEOHFDXVHGHWHUPLQDWLRQ FDXVH :LWKUHVSHFWWRDOOHJDWLRQ E WKHGHVFULSWLRQRIWKHKRXVHDW 1+DUULVRQ6WUHHWGRHVDOPRVWQRWKLQJWRLQFUHDVHWKH 7KH$IILDQWjV$OOHJDWLRQ OLNHOLKRRGWKDWWKHIUXLWVRIFULPLQDODFWLYLW\ZRXOGEHIRXQG WKHUH  6LPLODUO\ DOOHJDWLRQ F  WKH DVVHUWLRQ WKDW 3HWHUVRQ %\LWVHOIDOOHJDWLRQ D WKHUHFRUGRIWKLUW\RQHSKRQHFDOOV VWRUHV PRQH\ ZLWK KLV EURWKHU DQG KLV EURWKHUjV JLUOIULHQG EHWZHHQ1+DUULVRQDQG3HWHUVRQ6ZDLQDQG/LGGHOO VXJJHVWVDWPRVWWKDW3HWHUVRQVWRUHGGUXJSURFHHGVZLWKRWKHU GRHV QRW HVWDEOLVK SUREDEOH FDXVH  6XUHO\ WKH IDFW WKDW D SHUVRQV,WGRHVQRWOLQN3HWHUVRQj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nWKHSKRQHORJDQGWKHGHVFULSWLRQRIWKH  1 +DUULVRQ 6WUHHW UHVLGHQFH n KDUGO\ FUHDWHV D 7KH&RQILGHQWLDO,QIRUPDQWjV$OOHJDWLRQV SUREDELOLW\ WKDW WKH  1 +DUULVRQ 6WUHHW UHVLGHQFH FRQWDLQHGGUXJSURFHHGV (YHQ DIWHU WKH VWDWHPHQWV RI WKH FRQILGHQWLDO LQIRUPDQW )%,DUHDGGHGWRWKHPL[WKHUHLVVWLOOQRWSUREDEOHFDXVH 7KH$QRQ\PRXV7LSVWHUjV$OOHJDWLRQV IRUWKHVHDUFKRIWKH1+DUULVRQ6WUHHWUHVLGHQFH)%, V VWDWHPHQWVPD\EHWUHDWHGDVWUXVWZRUWK\DQGUHOLDEOHHYHQ $OOHJDWLRQV G WKURXJK I VXSSOLHGE\)%,$GRQRWPHULW ZLWKRXWIXUWKHUFRUURERUDWLRQEDVHGRQ)%, VWUDFNUHFRUG PXFKZHLJKWLQWKHSUREDEOHFDXVHGHWHUPLQDWLRQ$VPDGH %HFDXVH)%,KDGSUHYLRXVO\SURYLGHGLQIRUPDWLRQIRUWKUHH FOHDUE\)ORULGDYs/DQG,OOLQRLVY*DWHVWRUHFHLYHDKLJK VHDUFKHV DQG VL[WHHQ DUUHVWV FLUFXLW SUHFHGHQW DIIRUGV KLV OHYHORIFRQVLGHUDWLRQDOOHJDWLRQVIURPDQDQRQ\PRXVWLSVWHU VWDWHPHQWVDKLJKGHJUHHRIWUXVWZRUWKLQHVVDQGUHOLDELOLW\ PXVWGHPRQVWUDWHYHUDFLW\UHOLDELOLW\DQGDVRXQGEDVLVIRU 6HH 6PLWK  )G DW  H[SODLQLQJ WKDW mLQIRUPDWLRQ NQRZOHGJHs/86DW*DWHV86DW VXSSOLHG E\ DQ LQIRUPDQW RI SURYHQ UHOLDELOLW\ PD\ EH VXIILFLHQWVWDQGLQJDORQHWRGHPRQVWUDWHSUREDEOHFDXVHl