Court Opinion

ID: 2970211
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:07:23.180542+00
Date Added: 2024-06-11T11:37:36.048996
License: Public Domain

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 DS

81,7('67$7(6&28572)$33($/6
               )257+(6,;7+&,5&8,7
                 BBBBBBBBBBBBBBBBB

 3$8/ *5(*25< +286(               ;
          3HWLWLRQHU$SSHOODQW 
                                    
                                      1R
            Y                      
                                     !
                                    
 5,&.< %(//:DUGHQ                
          5HVSRQGHQW$SSHOOHH 
                                  1
       $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
    IRUWKH(DVWHUQ'LVWULFWRI7HQQHVVHHDW.QR[YLOOH
     1RnsDPHV+sDUYLV'LVWULFWsXGJH
                $UJXHG2FWREHU
           'HFLGHGDQG)LOHG0DUFK
%HIRUH0(55,771255,6DQG6,/(5&LUFXLWsXGJHV
                   BBBBBBBBBBBBBBBBB
                       &2816(/
$5*8('6WHSKHQ0.LVVLQJHU)('(5$/'()(1'(5
6(59,&(6.QR[YLOOH7HQQHVVHHIRU$SSHOODQW*OHQQ5
3UXGHQ 2)),&( 2) 7+( $77251(< *(1(5$/
&5,0,1$/s867,&(',9,6,211DVKYLOOH7HQQHVVHHIRU
$SSHOOHH21%5,()6WHSKHQ0.LVVLQJHU)('(5$/
'()(1'(5 6(59,&(6 .QR[YLOOH 7HQQHVVHH IRU
$SSHOODQW*OHQQ53UXGHQ$OLFH%/XVWUH2)),&(2)
7+( $77251(< *(1(5$/ &5,0,1$/ s867,&(

                             
      +RXVHY%HOO                                    1R

',9,6,211DVKYLOOH7HQQHVVHH0LFKDHO(0RRUH3DXO*
6XPPHUV 7(11(66(( $77251(< *(1(5$/j6
2)),&( &,9,/ /,7,*$7,21 	 67$7( 6(59,&(6
',9,6,211DVKYLOOH7HQQHVVHHIRU$SSHOOHH
  1255,6sGHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQZKLFK
6,/(5 s MRLQHG  0(55,77 s SS  GHOLYHUHG D
VHSDUDWHGLVVHQWLQJRSLQLRQ
                       BBBBBBBBBBBBBBBBB
                           23,1,21
                       BBBBBBBBBBBBBBBBB
  $/$1(1255,6&LUFXLWsXGJH3HWLWLRQHU3DXO+RXVH
DSSHDOVIURPWKHGLVWULFWFRXUWjVGHQLDORIDZULW RI KDEHDV
FRUSXV86&$7HQQHVVHHMXU\IRXQGSHWLWLRQHU
JXLOW\ RI WKH PXUGHU RI D QHLJKERU &DURO\Q 0XQFH\ DQG
VHQWHQFHGKLPWRGHDWK
   7KLV FRXUW JUDQWHG D FHUWLILFDWH RI DSSHDODELOLW\ DV WR DOO
LVVXHV  +RZHYHU SHWLWLRQHU KDV OLPLWHG KLV EULHI WR D
GLVFXVVLRQRIWKHIROORZLQJ:KHWKHUWKHPDQQHULQZKLFK
WKH7HQQHVVHHFRXUWVDSSOLHGWKHGRFWULQHRIZDLYHUGXULQJ
SHWLWLRQHUjV SRVWFRQYLFWLRQ SURFHHGLQJV FRQVWLWXWHV DQ
DGHTXDWH DQG LQGHSHQGHQW VWDWH SURFHGXUDO EDU WR KLV
LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLP:KHWKHUSHWLWLRQHU
HVWDEOLVKHGKLVDFWXDOLQQRFHQFH
    )RUWKHUHDVRQVWKDWIROORZZHDIILUPWKHGHQLDORIWKHZULW
                                  ,
   7KLVFRXUWUHYLHZVDGLVWULFWFRXUWjVOHJDOFRQFOXVLRQVLQD
KDEHDVSURFHHGLQJGHQRYRDQGLWVIDFWXDOILQGLQJVIRUFOHDU
HUURU6HH/XFDVY2
'HD)GWK&LU
3HWLWLRQHULQLWLDWHGWKLVKDEHDVDFWLRQRQ6HSWHPEHU
WKH SHWLWLRQ ZDV DPHQGHG RQ 6HSWHPEHU  
&RQVHTXHQWO\WKLVFRXUWjVUHYLHZRIWKHVWDWHFRXUWjVGHFLVLRQ
LVJRYHUQHGE\WKHVWDQGDUGVVHWIRUWKLQWKH$QWLWHUURULVPDQG
(IIHFWLYH'HDWK3HQDOW\$FWRI3XE/ 1R 
1R                                  +RXVHY%HOO          

6WDW$('3$6HH/LQGKY0XUSK\
86+DUSVWHUY2KLR)G
WK&LU
  %HFDXVHIDFWXDOGHWHUPLQDWLRQVE\VWDWHFRXUWVDUHHQWLWOHG
WRDSUHVXPSWLRQRIFRUUHFWQHVV86&HZH
ZLOOEHJLQE\TXRWLQJIURPWKH7HQQHVVHH6XSUHPH&RXUWjV
RSLQLRQGHQ\LQJSHWLWLRQHUUHOLHILQKLVGLUHFWDSSHDO
    7KHYLFWLPRIWKHKRPLFLGHZDV0UV&DURO\Q0XQFH\
  ZKROLYHGZLWKKHUKXVEDQGDQGWZR\RXQJFKLOGUHQRQ
  5LGJHFUHVW5RDGLQUXUDO8QLRQ&RXQW\7HQQHVVHH0UV
  0XQFH\ZDVLQKHUODWHWZHQWLHVDQGKHUFKLOGUHQZHUH
  DERXWHLJKWDQGWHQ\HDUVROGDWWKHWLPHRIKHUGHDWKRQ
  sXO\
    ,Q 0DUFK  DSSHOODQW 3DXO *UHJRU\ +RXVH ZDV
  UHOHDVHG IURP SULVRQ LQ 8WDK DQG PRYHG WR WKH UXUDO
  FRPPXQLW\LQZKLFKWKH0XQFH\IDPLO\OLYHG7KHUHKH
  UHVLGHG ZLWK KLV PRWKHU DQG VWHSIDWKHU IRU VHYHUDO
  ZHHNVEXWLQsXQHKHPRYHGLQWRDWUDLOHURFFXSLHGE\
  KLVJLUOIULHQG'RQQD7XUQHUZKLFKZDVORFDWHGDERXW
  WZR PLOHV IURP WKH 0XQFH\ KRPH  $SSHOODQW GLG QRW
  RZQ DQ DXWRPRELOH EXW KH ZDV SHUPLWWHG WR GULYH KLV
  PRWKHU
VFDUIURPWLPHWRWLPHDQGKHDOVRGURYH0V
  7XUQHU
VFDURQVRPHRFFDVLRQV
     2WKHU WKDQ GRLQJ RFFDVLRQDO IDUP ZRUN IRU KLV
  VWHSIDWKHU DSSHOODQW GRHV QRW DSSHDU WR KDYH EHHQ
  UHJXODUO\HPSOR\HG+HGLGQRWWHVWLI\DWWULDODWHLWKHU
  WKHJXLOWSKDVHRUWKHVHQWHQFLQJKHDULQJ+HZDVVKRZQ
  WRKDYHKDGRQHSULRUFRQYLFWLRQIRUDJJUDYDWHGVH[XDO
  DVVDXOWDFKDUJHWRZKLFKKHSOHGJXLOW\RQ0DUFK
   LQ 6DOW /DNH &RXQW\ 8WDK  $SSDUHQWO\ KH ZDV
  SODFHG RQ SDUROH LQ WKDW VWDWH DQG VXSHUYLVLRQ RI KLV
  SDUROHZDVWUDQVIHUUHGWR7HQQHVVHHZKHQKHUHWXUQHGWR
  WKLVVWDWH+HZDVDSSUR[LPDWHO\WZHQW\WKUHH\HDUVROG
  DWWKHWLPHRIWKHKRPLFLGHLQWKLVFDVH
    0UV0XQFH\GLVDSSHDUHGIURPKHUKRPHLQWKHODWH
  HYHQLQJRI6DWXUGD\sXO\+HUEDGO\EHDWHQ
      +RXVHY%HOO                                    1R     1R                                  +RXVHY%HOO      

    ERG\ZDVIRXQGRQWKHIROORZLQJDIWHUQRRQDWDERXW                SHUIRUPLQJ KLV WHVWV  7KH SKRWRJUDSK RI WKH VW\URIRDP
    SPO\LQJSDUWLDOO\FRQFHDOHGLQDEUXVKSLOHDERXW           FRQWDLQHUFOHDUO\VKRZVWKDWEORRGVSLOOHGLQWKHFRQWDLQHU
    \DUGVIURPKHUKRPH                                                7KHWDSHRQWKHFRQWDLQHUZDVP\VWHULRXVO\FXWDQGUHWDSHG
                                                                        FRQWUDU\WRVWDQGDUGSURFHGXUH7KHODEHORQWKHFRQWDLQHU
      $SSDUHQWO\WKHKXVEDQGRIWKHYLFWLPZDVQRWDWKRPH              VDLGLWFRQWDLQHGWKHVHPHQDQGWKHEORRGHYLGHQFHEXWWKH
    GXULQJ WKH HDUO\ SDUW RI WKH HYHQLQJ RI sXO\   0UV   VHPHQHYLGHQFHZDVVKLSSHGVHSDUDWHO\$OVRWKHORFDWLRQRI
    0XQFH\DQGKHUFKLOGUHQYLVLWHGDQHLJKERUDQGOHIWDW              WKHEORRGRQWKHMHDQVLVRGG7KHILYHVSRWVZHUHIRXQGRQ
    DERXWSPWRUHWXUQWRWKHLUKRPH/DWHUWKHROGHU           WKHRXWVLGHOHIWOHJRQWKHLQVLGHOHIWWKLJKRQWKHLQVLGHULJKW
    FKLOG/DXUDDZRNH6KHWHVWLILHGWKDWVKHKHDUGDYRLFH          SRFNHW RXWVLGH WKH ULJKW SRFNHW DQG RQ WKH ULJKW FXII
    ZKLFKVRXQGHGOLNHKHUJUDQGIDWKHUPDNLQJLQTXLU\DERXW             UHVSHFWLYHO\
    KHUIDWKHU6KHDOVRKHDUGVRPHRQHWHOOKHUPRWKHUWKDW
    KHUIDWKHUKDGEHHQLQDZUHFNQHDUWKHFUHHN6KHKHDUG              7KHWHVWLPRQ\RI3DXOLQH6XWWRQDOVRUDLVHVTXHVWLRQVDVWR
    KHUPRWKHUVREELQJRUFU\LQJDVVKHOHIWWKHKRXVH:KHQ           ZKHWKHUWKHMHDQVZHUHWDPSHUHGZLWK6KHQRWHGWKDWVRPH
    KHUPRWKHUGLGQRWUHWXUQWKHWZRFKLOGUHQZHQWWRORRN            RI WKH EORRG VWDLQV ZHUH PL[HG ZLWK PXG  7KH 1DWLRQDO
    IRU KHU DW QHLJKERULQJ KRPHV  1RW ILQGLQJ KHU WKH\       :HDWKHU6HUYLFHUHFRUGVVKRZWKDWLWKDGQRWUDLQHGIRUWKUHH
    UHWXUQHG KRPH DQG ZDLWHG XQWLO WKHLU IDWKHU DUULYHG         GD\VSULRUWRWKHPXUGHUDQGSKRWRJUDSKVRIWKHFULPHVFHQH
    'LVFRYHULQJ WKDW KLV ZLIH ZDV PLVVLQJ KH WRRN WKH          VKRZHGQRPXG SUHVHQW/DVWO\WKHUHZDVQRPXGRQWKH
    FKLOGUHQEDFNWRWKHKRPHRIWKHQHLJKERUZKHUHWKH\KDG            YLFWLPjV QLJKWJRZQ  $OO RI WKLV HYLGHQFH UDLVHV VHULRXV
    YLVLWHGHDUOLHULQWKHHYHQLQJDQGWKHQFDOOHGIRUPHPEHUV          TXHVWLRQVDVWRKRZWKHPXGJRWRQWKHMHDQV7KHGLVWULFW
    RIKLVIDPLO\WRORRNIRUKLVZLIH                                 FRXUWUHOLHVRQ7%,$JHQW&KDUOHV6FRWWjVWHVWLPRQ\WKDWWKH
                                                                        MHDQVKDGmUHGGLVKEURZQlVWDLQVZKHQKHWRRNWKHPIURPWKH
       :KHQWKHERG\RI0UV0XQFH\ZDVGLVFRYHUHGWKH                  FORWKHV KDPSHU  0U 6FRWW KRZHYHU DGPLWWHGO\ GLG QRW
    QH[W DIWHUQRRQ VKH ZDV GUHVVHG LQ KHU QLJKWJRZQ            WKRURXJKO\ H[DPLQH WKH MHDQV  %HFDXVH KH FRXOG KDYH
    KRXVHFRDW DQG XQGHUFORWKLQJ  +HU ERG\ ZDV EDGO\             WDPSHUHGZLWKWKHMHDQVDQGEHFDXVHWKHIRUHQVLFHYLGHQFH
    EUXLVHGDQGWKHUHZHUHDEUDVLRQVDQGEORRGJLYLQJHYHU\            GRHVQRWVXSSRUWKLVWHVWLPRQ\DQHZWULDOLVZDUUDQWHGLQ
    HYLGHQFH WKDW VKH KDG EHHQ LQ D ILHUFH VWUXJJOH            OLJKWRIDOOWKHSUREOHPVLQWKLVGHDWKFDVH
    $SSDUHQWO\DVHYHUHEORZWRKHUOHIWIRUHKHDGKDGFDXVHG
    KHUGHDWK,WDSSHDUHGKRZHYHUWKDWVKHKDGDOVREHHQ               ,Q VXP , EHOLHYH WKH QHZ HYLGHQFH RI WKH VHPHQ WKH
    SDUWLDOO\VWUDQJOHG$SDWKRORJLVWWHVWLILHGWKDWWKHEORZ         FRQIHVVLRQV DQG WKH HQ]\PDWLF GHJUDGDWLRQ PDNH LW PRUH
    WRKHUOHIWIRUHKHDGFDXVHGDFRQFXVVLRQDQGKHPRUUKDJH             OLNHO\WKDQQRWWKDWDUHDVRQDEOHGRXEWZRXOGEHUDLVHGLQWKH
    WR WKH ULJKW VLGH RI WKH EUDLQ IURP ZKLFK VKH GLHG       PLQGRIDQ\UHDVRQDEOHMXURU$FFRUGLQJO\,ZRXOGJUDQWWKH
    SUREDEO\RQHWRWZRKRXUVDIWHUEHLQJVWUXFN+HWHVWLILHG         ZULWRIKDEHDVFRUSXV
    WKDW VKH SUREDEO\ ZRXOG KDYH EHHQ XQFRQVFLRXV DIWHU
    KDYLQJEHHQVWUXFN+HHVWLPDWHGWKHWLPHRIKHUGHDWK
    DWEHWZHHQSPWRSPRQ6DWXUGD\sXO\EXW
    HPSKDVL]HGWKDWWKLVZDVDWEHVWDURXJKHVWLPDWH
      $SSHOODQWQHYHUFRQIHVVHGWRDQ\SDUWLQWKHKRPLFLGH
    DQGWKHWHVWLPRQ\OLQNLQJKLPWRLWZDVFLUFXPVWDQWLDO
    7KHUHZDVHYLGHQFHVKRZLQJWKDWKHNQHZ0UDQG0UV
    +RXVHY%HOO                                  1R       1R                               +RXVHY%HOO        

HQ]\PHVFDPHIURPWKHVDPHVDPSOHWKDWLVWKHEORRGRQWKH            0XQFH\ DQG KDG EHHQ ZLWK WKHP VRFLDOO\ RQ D IHZ
GHIHQGDQWjV MHDQV FDPH IURP WKH VDPSOH WDNHQ IURP WKH           RFFDVLRQV7KURXJKGHIHQVHSURRIWKHUHZDVWHVWLPRQ\
YLFWLPQRWWKHYLFWLPKHUVHOI                                        WKDW 0UV 0XQFH\ DQG KHU KXVEDQG KDG EHHQ KDYLQJ
                                                                        PDULWDOGLIILFXOWLHVDQGWKDWVKHKDGEHHQFRQWHPSODWLQJ
   ,QKLVUHSRUW'U&OHODQG%ODNH$VVLVWDQW&KLHI0HGLFDO            OHDYLQJKLP7KHUHZDVQRHYLGHQFHWRLQGLFDWHWKDWWKH
([DPLQHUIRUWKH6WDWHUHDFKHGWKHFRQFOXVLRQWKDWWKHEORRG           DSSHOODQWZDVDZDUHRIWKDWVLWXDWLRQKRZHYHURUWKDW
RQ +RXVHjV MHDQV FDPH IURP WKH VDPSOHV WDNHQ IURP WKH          WKHUH KDG EHHQ DQ\ SUHYLRXV URPDQWLF RU VH[XDO
YLFWLPjV ERG\ SUHVXPDEO\ EDVHG RQ WKHRU\ RI HQ]PDWLF            UHODWLRQVKLSEHWZHHQKLPDQGWKHYLFWLP
GHJUDGDWLRQH[SODLQHGDERYH+HGLGQRWKRZHYHUH[SODLQ
KRZKHUHDFKHGKLVFRQFOXVLRQVLQKLVUHSRUW5HFRJQL]LQJ                2Q WKH DIWHUQRRQ RI 6XQGD\ sXO\   WZR
WKH VLJQLILFDQFH RI %ODNHjV FRQFOXVLRQ WR WKH TXHVWLRQ RI       ZLWQHVVHVVDZWKHDSSHOODQWHPHUJHIURPDFUHHNEDQNDW
+RXVHjV LQQRFHQFH WKH GLVWULFW FRXUW LQTXLUHG DERXW WKH         WKH VLGH RI 5LGJHFUHVW 5RDG DW WKH VLWH ZKHUH 0UV
HQ]\PDWLFGHJUDGDWLRQRIWKHEORRGVWDLQVEXWGLGQRWUHFHLYH          0XQFH\
V ERG\ ZDV ODWHU IRXQG FRQFHDOHG LQ WKH
DVDWLVIDFWRU\H[SODQDWLRQIURP'U%ODNH%HFDXVH'U%ODNH           XQGHUEUXVK+HZDVZLSLQJKLVKDQGVZLWKDGDUNFORWK
QHJOHFWHGWRH[SODLQLQOD\PDQjVWHUPVWKHPHWKRGE\ZKLFK              DQGZDVZDONLQJWRZDUGDZKLWH3O\PRXWKDXWRPRELOH
KH UHDFKHG KLV FRQFOXVLRQ WKH GLVWULFW FRXUW UHOLHG RQ WKH    SDUNHGRQWKHRSSRVLWHVLGHRIWKHURDGEHORQJLQJWRKLV
WHVWLPRQ\RI$JHQW%LJEHHZKRRSLQHGWKDW%ODNHjVWKHRU\                JLUO IULHQG 'RQQD 7XUQHU  7KH WZR ZLWQHVVHV VSRNH
ZDVLQFRUUHFW,EHOLHYHWKDWRQWKHVXUIDFH%ODNHjVILQGLQJV         EULHIO\WRDSSHOODQWDOORIWKHPGLVFXVVLQJWKHIDFWWKDW
DUHFRPSHOOLQJDQGUHTXLUHIXUWKHUH[SORUDWLRQ%HFDXVHRI             0UV0XQFH\KDGGLVDSSHDUHG/DWHUWKHWZRZLWQHVVHV
WKHSDUDPRXQWVLJQLILFDQFHRIWKHVHILQGLQJVWRWKHTXHVWLRQ            EHFDPH VXVSLFLRXV RI ZKDW WKH\ KDG REVHUYHG DQG
RI +RXVHjV LQQRFHQFH DQ LQGHSHQGHQW DQDO\VLV E\ D EORRG        UHWXUQHG WR WKH SRLQW ZKHUH WKH\ KDG VHHQ DSSHOODQW
H[SHUWRI%ODNHjVWKHRU\RIHQ]\PDWLFGHJUDGDWLRQLVQHHGHG             HPHUJHIURPWKHHPEDQNPHQW/RRNLQJGRZQWKHEDQN
WRGHWHUPLQHZKHWKHUWKHEORRGRQ+RXVHjVMHDQVFDPHIURP               WKH\IRXQGWKHSDUWLDOO\FRQFHDOHGERG\RI0UV0XQFH\
WKH YLFWLP KHUVHOI RU IURP D IRUHQVLF EORRG VDPSOH   ,Q     7KH\SURPSWO\QRWLILHGWKHVKHULII
DGGLWLRQ,ZRXOGWRWKHH[WHQWSRVVLEOHKDYHWKHXQWHVWHG
ILQJHUQDLO VFUDSLQJV RI WKH YLFWLP H[DPLQHG WR GHWHUPLQH            $SSHOODQWODWHUDGPLWWHGWKDWKHKDGEHHQLQWKHDUHD
ZKHWKHUWKHUHLVDQ\'1$HYLGHQFH                                    EXWGHQLHGWKDWKHKDGVHHQWKHERG\RI0UV0XQFH\RU
                                                                        KDGDQ\NQRZOHGJHRILWVSUHVHQFH7KHGDUNUDJZKLFK
   6WDQGLQJ DORQH RQH PLJKW DUJXH WKDW WKH VLPLODULW\ LQ       KHKDGEHHQXVLQJZKHQILUVWVHHQZDVQHYHUSURGXFHG
HQ]\PDWLFDFWLYLW\ZDVPHUHO\FRLQFLGHQWDO+RZHYHUWKHUH             ,WZDVWKHWKHRU\RIWKH6WDWHKRZHYHUWKDWWKLVZDVD
LVDGGLWLRQDOHYLGHQFHVXJJHVWLQJWKDWWKHVDPSOHLQWKHYLDOV          GDUNWDQNWRSRUMHUVH\ZKLFKDSSHOODQWZDVVKRZQWR
RIEORRGPD\KDYHEHHQWDPSHUHGZLWK$V'U%ODNHQRWHG              KDYHEHHQZHDULQJRQWKHSUHYLRXVHYHQLQJsXO\
WKHUHZDVQRXQEURNHQFKDLQRIFXVWRG\/DUU\sRKQVRQDQ
H[SHUWLQFULPHVFHQHLQYHVWLJDWLRQVLPLODUO\VWDWHGWKDWmWKH           $SSHOODQWJDYHWZRVWDWHPHQWVWRLQYHVWLJDWLQJRIILFHUV
SDFNDJLQJ RI WKH PDWHULDOV LQ WKH FDVH GLG QRW PHHW            LQZKLFKKHGHQLHGEHLQJLQYROYHGLQWKHKRPLFLGH,Q
SURIHVVLRQDOVWDQGDUGVl                                              ERWKRIWKHVHVWDWHPHQWVKHVWDWHGWKDWKHKDGEHHQDW0V
                                                                        7XUQHU
VWUDLOHUWKHHQWLUHHYHQLQJRIsXO\DQGWKDWKH
  )XUWKHUPRUHWKHUHLVEORRGPLVVLQJIURPWKHVDPSOHWDNHQ             KDGQRWOHIWXQWLOWKHQH[WDIWHUQRRQZKHQKHZHQWWRORRN
oRQHRIWKHIRXUYLDOVLVHPSW\DQGDQRWKHULVRQO\KDOIIXOO          IRU+XEHUW0XQFH\DIWHUOHDUQLQJRIWKHGLVDSSHDUDQFHRI
o EXW $JHQW %LJEHH XVHG RQO\ RQHIRXUWK RI D YLDO LQ          WKHODWWHU
VZLIH
       +RXVHY%HOO                                    1R     1R                                    +RXVHY%HOO       

      2Q6XQGD\DIWHUQRRQYDULRXVZLWQHVVHVREVHUYHGWKDW                GHFLGHWKLVTXHVWLRQRULQGXOJHLQDSUHVXPSWLRQWKDWVKHKDV
    DSSHOODQW KDG QXPHURXV VFUDWFKHV DQG EUXLVHV RQ KLV           DQLQIDOOLEOHPHPRU\RIHYHQWVWKDWKDSSHQHGLQWKHPLGGOHRI
    DUPV KDQGV DQG ERG\ WKHUH EHLQJ DQ HVSHFLDOO\               WKH QLJKW ZKHQ VKH ZDV WHQ \HDUV ROG  $V D UHVXOW RI WKH
    VLJQLILFDQWEUXLVHRQWKHNQXFNOHRIKLVULJKWULQJILQJHU          XQGHUO\LQJIDFWV,ILQGWKDWWKHGLVWULFWFRXUWFRPPLWWHGFOHDU
    $SSHOODQW H[SODLQHG WKDW WKHVH LQMXULHV KDG EHHQ               HUURU E\ GLVFRXQWLQJ WKH FUHGLELOLW\ RI WZR LQGHSHQGHQW
    VXVWDLQHGLQQRFHQWO\HDUOLHUGXULQJWKHZHHNEXWZKHQ               XQELDVHGLQGLYLGXDOVZLWKRXWDQ\UDWLRQDOHRWKHUWKDQWKHWLPH
    0V7XUQHUZDVFDOOHGDVDZLWQHVVVKHVDLGWKDWVKHKDG            EHWZHHQWKHFRQIHVVLRQDQGWKHWHVWLPRQ\EHIRUHWKHGLVWULFW
    QRW REVHUYHG WKHP SULRU WR WKH HYHQLQJ RI sXO\           FRXUW7KHVWDWHWULDOFRXUWVKRXOGZHLJKWKLVHYLGHQFHDWD
    $SSHOODQWDOVRWROGLQYHVWLJDWRUVWKDWKHZDVZHDULQJWKH            QHZWLPH
    VDPHFORWKHVRQ6XQGD\sXO\DVKHKDGEHHQZHDULQJ
    WKHSUHYLRXVHYHQLQJ,WZDVODWHUGLVFRYHUHGKRZHYHU                  7KH%ORRG(YLGHQFH&UHDWHVD6HULRXV'RXEW
    WKDWDSDLURIEOXHMHDQVZKLFKKHKDGEHHQZHDULQJRQ
    WKHQLJKWRIWKHPXUGHUZDVFRQFHDOHGLQWKHERWWRPRI                 7KLUGDQDO\VLVRIWKHEORRGRQ+RXVHjVMHDQVUDLVHVVHULRXV
    WKHFORWKHVKDPSHUDW0V7XUQHU
VWUDLOHU7KHVHWURXVHUV          GRXEWVDVWRZKHWKHUWKHEORRGFDPHGLUHFWO\IURPWKHYLFWLP
    ZHUHEORRGVWDLQHGDQGVFLHQWLILFHYLGHQFHUHYHDOHGWKDW             RUVSLOOHGRQWKHMHDQVIURPYLDOVRIEORRGRIWKHYLFWLPVHQW
    WKH VWDLQV ZHUH KXPDQ EORRG KDYLQJ FKDUDFWHULVWLFV             ZLWKWKHMHDQVWRWKHODE$JHQW%LJEHHWHVWHGWKHEORRGIURP
    FRQVLVWHQW ZLWK WKH EORRG RI 0UV 0XQFH\ DQG                  0V 0XQFH\jV ERG\ DQG WKH EORRG IRXQG RQ 3DXO +RXVHjV
    LQFRQVLVWHQWZLWKDSSHOODQW
VRZQEORRG6FLHQWLILFWHVWV           MHDQV7KHUHZDVDFOHDUPDWFKUHYHDOLQJWKDWWKHEORRGRQ
    DOVR VKRZHG WKDW ILEHUV IURP WKHVH WURXVHUV ZHUH              KLVMHDQVEHORQJHGWRWKHYLFWLP$FORVHUH[DPLQDWLRQRIWKH
    FRQVLVWHQWZLWKILEHUVIRXQGRQWKHFORWKLQJRIWKHYLFWLP          IRUHQVLFHYLGHQFHKRZHYHUVXJJHVWVWKDWWKHEORRGRQWKH
    7KHUH ZHUH DOVR IRXQG RQ KHU QLJKWJRZQ DQG                    MHDQVPD\KDYHFRPHIURPWKHIRUHQVLFVDPSOHWDNHQIURP
    XQGHUFORWKLQJ VRPH VSRWV RI VHPHQ VWDLQ IURP D PDOH          0V0XQFH\jVERG\QRWIURPKHUERG\DVVKHZDVPXUGHUHG
    VHFUHWRURIWKHVDPHJHQHUDOW\SHDVDSSHOODQW
                                                                            7KHPRVWVLJQLILFDQWSLHFHRIIRUHQVLFHYLGHQFHVXJJHVWLQJ
       6RPHRIWKHPRVWGDPDJLQJHYLGHQFHDJDLQVWDSSHOODQW              WKLV FRQFOXVLRQ LV WKH FRQVLVWHQF\ LQ HQ]\PH GHJUDGDWLRQ
    ZDVJLYHQE\KLVJLUOIULHQG0V7XUQHU6KHDWILUVWWROG         EHWZHHQWKHVDPSOHIURP0V0XQFH\jVERG\DQGWKHILYH
    LQYHVWLJDWRUV WKDW KH KDG QRW OHIW WKH WUDLOHU GXULQJ WKH   VDPSOHVIURPWKHMHDQV(Q]\PHVDUHSURWHLQVZKLFKKDYHD
    FRXUVHRIWKHHYHQLQJRIsXO\/DWHUKRZHYHUVKH               FRPSOH[PROHFXODUVWUXFWXUH7KHLUIUDJLOHVWUXFWXUHLVRQO\
    PRGLILHGWKLVWHVWLPRQ\WRVWDWHWKDWKHKDGEHHQLQWKH             PDLQWDLQHGE\WKHSURSHUHQYLURQPHQWSURYLGHGLQWKHKXPDQ
    WUDLOHUXQWLODERXWSPDWZKLFKWLPHKHOHIWWRWDNH         ERG\2YHUWLPHHQ]\PHVGHJUDGHWKDWLVWKH\ORVHWKHLU
    DZDON6KHVWDWHGWKDWKHGLGQRWWDNHKHUDXWRPRELOH             VWUXFWXUH DQG VKDSH DQG EHFRPH LQDFWLYH  7KH EORRG WHVWV
    :KHQKHUHWXUQHGDQKRXURUVRODWHUKHZDVSDQWLQJKRW            SHUIRUPHGE\$JHQW%LJEHHRQWKHYLFWLPjVEORRGDQGWKHILYH
    DQGH[KDXVWHG+HZDVQRORQJHUZHDULQJHLWKHUKLVEOXH             VDPSOHVIURPWKHGHIHQGDQWjVMHDQVORRNHGIRUWKHSUHVHQFHRI
    MHUVH\RUKLVWHQQLVVKRHV7KHVKRHVZHUHODWHUIRXQGLQ           YDULRXVHQ]\PHVWRVHHZKHWKHUWKH\KDGGHQDWXUHGRUQRWLQ
    DQDUHDGLIIHUHQWIURPWKHSODFHZKHUHDSSHOODQWWROGKHU            WKH EORRG  2I WKH WHQ HQ]\PHV WHVWHG VL[ KDG FRQFOXVLYH
    KHKDGORVWWKHP                                                    UHVXOWV$OOVL[HQ]\PHVPDWFKHG7KXVLWLVUHDVRQDEOHWR
                                                                         LQIHUWKDWWKHHQ]\PHVLQWKHEORRGRQWKHMHDQVGHJUDGHGDW
      $SSHOODQWWROG0V7XUQHUWKDWKHKDGWKURZQDZD\WKH              WKH VDPH UDWH DV WKH EORRG LQ WKH VDPSOH WDNHQ IURP WKH
    QDY\EOXHWDQNWRSEHFDXVHLWKDGEHHQWRUQZKHQKHZDV              YLFWLPjV ERG\  %HFDXVH WKH\ GHJUDGHG DW WKH VDPH UDWH
    DVVDXOWHGE\VRPHSHUVRQVZKRWULHGWRNLOOKLP,WZDV             GHVSLWH EHLQJ LQ WZR GLIIHUHQW PHGLD LW DSSHDUV WKDW WKH
    +RXVHY%HOO                                    1R        1R                                         +RXVHY%HOO          

WKDWKHWKHKXVEDQGFRPPLWWHGWKHFULPH%RWK.DWK\                  DIWHUWKHDSSHOODQW
VUHWXUQWRWKHWUDLOHUWKDW0V7XUQHU
3DUNHU DQG 3HQQ\ /HWQHU SURYLGHG FRQVLVWHQW DFFRXQWV RI              ILUVW QRWLFHG WKH EUXLVHV DQG DEUDVLRQV RQ KLV KDQGV
0XQFH\jVDGPLVVLRQRIJXLOW7KHUHZDVQRHYLGHQFHLQWKH                  UHIHUUHGWRSUHYLRXVO\
UHFRUGWKDWFKDOOHQJHGWKHUHOLDELOLW\RIWKHVHVWDWHPHQWVRU
VXJJHVWHGDQ\ELDVRUPRWLYHIRUHLWKHUWREHXQWUXWKIXO$OVR              $SSHOODQW
VPRWKHUWHVWLILHGWKDWKHKDGQRWXVHGKHU
WKH FRQIHVVLRQV DUH VXSSRUWHG E\ WKH ZHOO GRFXPHQWHG                 DXWRPRELOH RQ 6DWXUGD\ HYHQLQJ  6KH WHVWLILHG WKDW
GRPHVWLFDEXVHRIWKHYLFWLPE\0XQFH\DQGKLVDFWLRQVWKH                  GXULQJ6DWXUGD\DQG6XQGD\ VKHKDGEHHQSODQQLQJWR
IROORZLQJPRUQLQJZKHQKHDVNHGDQHLJKERU$UWLH/DZVRQ                   VHSDUDWH IURP DSSHOODQW
V VWHSIDWKHU DQG WKDW DSSHOODQW
WROLHIRUKLPDQGSURYLGHDQDOLELE\WHVWLI\LQJWKDWKHZDVDW            KDGEHHQDVVLVWLQJKHULQKHUSUHSDUDWLRQVIRUPRYLQJ
WKHGDQFHIRUWKHHQWLUHHYHQLQJ
                                                                               $WWKHVHQWHQFLQJKHDULQJWKH6WDWHSURYHGDSSHOODQW
V
  7KH GLVWULFW FRXUW KRZHYHU GLVFRXQWHG WKH FRQIHVVLRQV             SULRU FRQYLFWLRQ IRU DJJUDYDWHG VH[XDO DVVDXOW
EHFDXVHERWKZLWQHVVHV KDGZDLWHGRYHUWHQ\HDUVWRFRPH                   $SSHOODQW
VSDUHQWVWHVWLILHGWKDWKHFDPHIURPDEURNHQ
IRUZDUG  ,Q DGGLWLRQ WKH GLVWULFW FRXUW IRXQG WKDW WKH           KRPHDQGKDGEHHQVXEMHFWHGWRVWUHVVDVDUHVXOWRIWKDW
WHVWLPRQ\RI/DUD0XQFH\7KDUSFRQWUDGLFWHGWKHWHVWLPRQ\                   H[SHULHQFH$SSHOODQW
VPRWKHUDOVRWHVWLILHGWKDWLQWKH
RI/HWQHUDQG3DUNHUEHFDXVH7KDUSGLGQRWKHDUDQ\VWUXJJOH                LQWHUYDOEHWZHHQWKHJXLOWWULDODQGWKHVHQWHQFLQJKHDULQJ
DQGQRQHRIWKHIXUQLWXUHZDVRXWRISODFHLQWKHKRXVH7KLV              DSSHOODQWKDGDWWHPSWHGVXLFLGH6KHUHDGLQWRHYLGHQFH
LQWHUSUHWDWLRQLVHUURQHRXVEHFDXVHQHLWKHU/HWQHURU3DUNHU                D OHWWHU ZKLFK KH KDG ZULWWHQ WR KHU GHQ\LQJ KLV
DVVHUWHGWKDW0XQFH\jVSXUSRUWHGILJKWZLWKKLVZLIHRFFXUUHG               LQYROYHPHQWLQWKHKRPLFLGH$SSDUHQWO\KHKDGFXWKLV
LQVLGHWKHKRXVH7KH\ERWKWHVWLILHGWKDWKHZHQWKRPHIURP               ZULVWVZKLOHLQWKHMDLODZDLWLQJWKHVHQWHQFLQJKHDULQJ
WKH GDQFH DQG JRW LQWR WKH ILJKW ZLWK KLV ZLIH EXW GLG QRW     EXWWKHGHJUHHDQGH[WHQWRIWKHLQMXULHVZHUHQRWGHWDLOHG
GHVFULEHZKHUHWKHILJKWRFFXUUHG0XQFH\FRXOGKDYHDVNHG                 LQHYLGHQFH7KH\GRQRWDSSHDUWRKDYHEHHQVHULRXV
KLVZLIHWRFRPHRXWVLGHRIWKHKRXVHLQRUGHUWRQRWGLVWXUE               DQGGLGQRWSUHYHQWKLVDWWHQGLQJWKHVHQWHQFLQJKHDULQJ
WKHLU FKLOGUHQ  7KDUSjV WHVWLPRQ\ WKDW KHU IDWKHU ZDV QRW
DEXVLYHWRZDUGKHUPRWKHUGHVSLWHWKHFRPPRQNQRZOHGJH                        $OWKRXJK WKH HYLGHQFH DJDLQVW DSSHOODQW ZDV
LQ WKH FRPPXQLW\ WKDW KH SK\VLFDOO\ DEXVHG KHU IXUWKHU             FLUFXPVWDQWLDO LW ZDV TXLWH VWURQJ  3DUWLFXODUO\
VXSSRUWVWKHLGHDWKDW0XQFH\PLJKWDVNKLVZLIHWROHDYHWKH               LQFULPLQDWLQJ ZDV WKH WHVWLPRQ\ WKDW KH KDG HPHUJHG
KRXVHLQRUGHUWRH[SUHVVKLVGLVSOHDVXUHZLWKKHU                        IURPDQHPEDQNPHQWZKHUHWKHERG\ZDVIRXQGZLSLQJ
                                                                            KLVKDQGVRQDGDUNFORWKZLWKRXWGLVFORVLQJWRDQ\RQH
   ,QDGGLWLRQZKLOH7KDUSPD\DSSHDUDVDFUHGLEOHZLWQHVV                WKH SUHVHQFH RI WKH ERG\  'DPDJLQJ DOVR ZHUH WKH
QRZWKDWVKHLVLQKHUWZHQWLHV7KDUSZDVRQO\WHQ\HDUVROG               GLVFRYHU\RIKLVEORRGVWDLQHGWURXVHUVDQGWKHWHVWLPRQ\
DW WKH WLPH RI WKH LQFLGHQW UDLVLQJ D TXHVWLRQ DV WR KRZ        RI 0V 7XUQHU ZKLFK D WULHU RI IDFW FRXOG KDYH IRXQG
DFFXUDWHRUVSHFLILFKHUPHPRU\PD\EH)RULQVWDQFHDWWKH               VXIILFLHQWWRGHPROLVKKLVDOLELDQGWRGHPRQVWUDWHWKDWKH
LQLWLDOWULDO7KDUSGHVFULEHGDFDUDUULYLQJDWWKHKRXVHSULRU            KDG EHHQ LQ D KHDY\ VWUXJJOH QHDU   WKH WLPH ZKHQ WKH
WR KHU KHDULQJ WKH ORZ YRLFH WKDW WROG KHU PRWKHU WKDW KHU       KRPLFLGH PXVW KDYH RFFXUUHG  $ FODVVLF FDVH IRU
IDWKHU KDG EHHQ LQ D ZUHFN  $W WKH GLVWULFW FRXUW KHDULQJ
KRZHYHU7KDUSGHQLHGKHDULQJDFDUWKDWQLJKW,WVKRXOGEH
IRUDVWDWHWULDOMXU\WRZHLJKWKHFUHGLELOLW\RIDGDXJKWHURID            
                                                                               $IWHU UHWXUQLQJ IURP KLV ZDON DSSHOODQW VXJJHVWHG PDUULDJH WR
SRWHQWLDOVXVSHFWZLWKERWKHPRWLRQDODQGSHUVRQDOLQFHQWLYH              0V 7XUQHU IRU WKH ILUVW WLPH LQ WKHLU UHODWLRQVKLS ,W ZDV DW OHDVW DUJXDEOH
WRSURWHFWKHUIDWKHU,WLVQRWIRUXVRUWKH'LVWULFW&RXUWWR         WKDW KH WKRXJKW E\ WKLV PHDQV KHU WHVWLPRQ\ FRXOG EH UHQGHUHG
                                                                          LQDGPLVVLEOH E\ WKH KXVEDQGZLIH SULYLOHJH
      +RXVHY%HOO                                  1R    1R                                    +RXVHY%HOO      

    GHWHUPLQDWLRQE\DMXU\ZDVSUHVHQWHGDQGWKHHYLGHQFH            VXEMHFWLQJWKHODG\WRVRPHNLQGRILQGLJQLW\ZK\ZRXOG
    FOHDUO\LVVXIILFLHQWWRVXSSRUWWKHFRQYLFWLRQ                   \RXJHWDODG\RXWRIKHUKRXVHODWHDWQLJKWLQKHUQLJKW
                                                                       FORWKHVXQGHUWKHWULFNWKDWKHUKXVEDQGKDVKDGDZUHFN
       )ROORZLQJWKHVHQWHQFLQJKHDULQJWKHMXU\LPSRVHGWKH          GRZQE\WKHFUHHN":K\LVLWWKDW\RXZDQWWRJHWKHU
    GHDWKSHQDOW\,QWKHLUYHUGLFWWKH\IRXQGWKDWWKH6WDWH         GRZQE\WKHFUHHN">,@WLVHLWKHUWRNHHSKHUIURP
    KDGHVWDEOLVKHGWKUHHDJJUDYDWLQJFLUFXPVWDQFHVWKHVH             WHOOLQJZKDW\RXKDYHGRQHWRKHURULWLVWKDW\RXDUH
    EHLQJDSSHOODQWKDGSUHYLRXVO\EHHQFRQYLFWHGRID            WU\LQJWRJHWKHUWRGRVRPHWKLQJWKDWVKHQRUDQ\PRWKHU
    IHORQ\ LQYROYLQJ WKH XVH RU WKUHDW RI YLROHQFH WR WKH     RQWKDWURDGZRXOGZDQWWRGRZLWK0U+RXVHDQG
    SHUVRQ  WKH KRPLFLGH ZDV HVSHFLDOO\ KHLQRXV             \RXNLOOKHUEHFDXVHRIKHUUHVLVWDQFH
    DWURFLRXV RU FUXHO DQG  LW ZDV FRPPLWWHG ZKLOH
    DSSHOODQW ZDV FRPPLWWLQJ RU DWWHPSWLQJ WR FRPPLW RU       7U 7UDQV 9RO ,; S   %HFDXVH WKH RQO\ PRWLYH
    IOHHLQJ IURP WKH FRPPLVVLRQ RI UDSH RU NLGQDSSLQJ        SUHVHQWHG E\ WKH 6WDWH DW WULDO ZDV EDVHG RQ HYLGHQFH QRZ
    7&$LDQG                          FRPSOHWHO\GLVFUHGLWHG,ZRXOGLVVXHWKHZULWUHTXLULQJDQHZ
                                                                     WULDO  7KLV QHZ HYLGHQFH REYLRXVO\ DOVR PDQGDWHV D QHZ
       7KHUH ZDV DPSOH HYLGHQFH WR VXSSRUW DOO RI WKHVH      VHQWHQFLQJKHDULQJEHFDXVHUDSHZDVWKHXQGHUO\LQJEDVLVIRU
    ILQGLQJVDQGWRVXSSRUWWKHFRQFOXVLRQRIWKHMXU\WKDWQR       RQH RI WKH WKUHH DJJUDYDWLQJ IDFWRUV SUHVHQWHG DW WULDO
    PLWLJDWLQJ FLUFXPVWDQFHV KDG EHHQ HVWDEOLVKHG ZKLFK         &RXSOHG ZLWK WKH SULRU FRQYLFWLRQ IRU VH[XDO DVVDXOW WKH
    ZRXOG RXWZHLJK WKH DJJUDYDWLQJ FLUFXPVWDQFHV                6WDWHjV DVVHUWLRQ WKDW WKH MXU\ LQIHU UDSH DGGHG D OHYHO RI
    &HUWDLQO\WKHVHQWHQFHRIGHDWKZDVQRWGLVSURSRUWLRQDWH         HJUHJLRXVQHVV WR WKH FULPH WKDW ZRXOG QRW RWKHUZLVH KDYH
    WRWKDWLPSRVHGLQRWKHUFDVHVLQYLHZRIWKHYLROHQWDQG        EHHQSUHVHQWDQGDVDUHVXOWZDVSDUWLFXODUO\SUHMXGLFLDOWRWKH
    EUXWDOQDWXUHRIWKHKRPLFLGHVKRZQLQWKLVUHFRUG              MXU\jV GHWHUPLQDWLRQ RI DJJUDYDWLQJ DQG PLWLJDWLQJ
                                                                     FLUFXPVWDQFHVDWWKHVHQWHQFLQJSKDVH
6WDWH Y +RXVH  6:G   7HQQ 
IRRWQRWHRULJLQDO                                                   %RWK WKH PDMRULW\ KHUH DQG WKH ORZHU FRXUW DVVHUW WKDW
                                                                     EHFDXVHWKHDJJUDYDWLQJFLUFXPVWDQFHDWLVVXHLVUDSHDQGRU
  $IWHU SHWLWLRQHUjV FRQYLFWLRQ DQG VHQWHQFH ZDV KDQGHG        NLGQDSSLQJ GLVSURYLQJ WKH UDSH LV QRW HQRXJK WR FUHDWH
GRZQ LQ )HEUXDU\  KH WRRN D GLUHFW DSSHDO WR WKH      UHYHUVLEOH HUURU  ,W LV FOHDU KRZHYHU EDVHG RQ WKH
7HQQHVVHH6XSUHPH&RXUW7KH7HQQHVVHH6XSUHPH&RXUW                LQIRUPDWLRQEHIRUHWKHMXU\WKDWUDSHQRWNLGQDSSLQJZDVWKH
DIILUPHGLQWKHRSLQLRQMXVWFLWHG3HWLWLRQHUIDLOHGWRVHHND     DFWLRQUHVXOWLQJLQWKHILQGLQJRIDQDJJUDYDWLQJFLUFXPVWDQFH
ZULWRIFHUWLRUDULLQDWLPHO\PDQQHU                               %HFDXVHWKHQHZHYLGHQFHFRQWUDGLFWVWKHMXU\jVLQIHUHQFHWKDW
                                                                     +RXVHUDSHGWKHYLFWLP,ILQGWKDWWKLVHUURULVRQHWKDWPLJKW
   3RVWFRQYLFWLRQSURFHHGLQJVEHJDQLQ)HEUXDU\ZLWK           UHDVRQDEO\EHWKRXJKWWRKDYHKDGmVXEVWDQWLDODQGLQMXULRXV
WKHILOLQJRIDSURVHSHWLWLRQIRUSRVWFRQYLFWLRQUHOLHILQWKH    HIIHFW RU LQIOXHQFHl RQ ERWK WKH MXU\ YHUGLFW DQG GHDWK
WULDO FRXUW  7KLV SHWLWLRQ DPHQGHG DIWHU DSSRLQWPHQW RI    VHQWHQFH   .RWWHDNRV Y 8QLWHG 6WDWHV  86  
FRXQVHOZDVGHQLHGE\WKHWULDOFRXUWRQ1RYHPEHU         
$OWKRXJKFODLPVRILQHIIHFWLYHDVVLVWDQFHRIWULDOFRXQVHOZHUH
VXEPLWWHG WRWKHFRXUWWKH\ZHUHQRWDUJXHGQRUZDVWULDO              7KH+XVEDQGjV&RQIHVVLRQ7HQGVWR'LVSURYH
FRXQVHOFDOOHGDVDZLWQHVVDWWKHKHDULQJ2QO\DVLQJOHLVVXH            WKH&ULPH
ZDV WDNHQ WR WKH 7HQQHVVHH &RXUW RI &ULPLQDO $SSHDOV
ZKHWKHU D MXU\ LQVWUXFWLRQ LPSURSHUO\ PLVOHG MXURUV LQWR        6HFRQG , DP WURXEOHG E\ WKH FXUVRU\ WUHDWPHQW RI WZR
EHOLHYLQJ WKDW WKH\ PXVW XQDQLPRXVO\ ILQG PLWLJDWLQJ           LQGHSHQGHQW DFFRXQWV RI WKH FRQIHVVLRQ RI +XEHUW 0XQFH\
     +RXVHY%HOO                                  1R       1R                                  +RXVHY%HOO       

                       BBBBBBBBBBBBBBB                                  FLUFXPVWDQFHV7KH&RXUWRI&ULPLQDO$SSHDOVDIILUPHGWKH
                                                                        FRQYLFWLRQRQ'HFHPEHU7KH7HQQHVVHH6XSUHPH
                          ',66(17                                       &RXUWGHQLHGOHDYHWRDSSHDODQGWKH8QLWHG6WDWHV6XSUHPH
                       BBBBBBBBBBBBBBB                                  &RXUWGHQLHGFHUWLRUDUL
                                                                           $VHFRQGSHWLWLRQIRUSRVWFRQYLFWLRQUHOLHIZDVILOHGRQ
   0(55,77&LUFXLWsXGJHGLVVHQWLQJ,GLVVHQWIURPWKH              'HFHPEHU$IWHUFRQGXFWLQJKHDULQJVWKHWULDOFRXUW
PDMRULW\ RSLQLRQ DIILUPLQJ WKH GHQLDO RI 3HWLWLRQHU 3DXO         GHQLHGUHOLHIRQWKHJURXQGXUJHGE\WKH6WDWHWKDWDOOWKH
+RXVHjVSHWLWLRQIRUKDEHDVFRUSXVXQGHU86&              LVVXHVSUHVHQWHGKDGHLWKHUEHHQSUHYLRXVO\GHWHUPLQHGLQWKH
$VZLWKPDQ\RWKHU7HQQHVVHHGHDWKSHQDOW\FDVHVWKLVFDVH             ILUVWSHWLWLRQRULIQRWKDGEHHQZDLYHG
KDGVHYHUDOHUURUVLQWKHWULDOSKDVHZKLFKQHFHVVLWDWHDQHZ
WULDO,KDYHDVHULRXVTXHVWLRQDERXWZKHWKHU+RXVHLVJXLOW\           7KH&RXUWRI&ULPLQDO$SSHDOVDIILUPHGWKHWULDOFRXUWRQ
RIWKHFULPHIRUZKLFKKHZDVFRQYLFWHG                                6HSWHPEHU+RZHYHUWKH7HQQHVVHH6XSUHPH&RXUW
                                                                        UHPDQGHGIRUUHFRQVLGHUDWLRQLQOLJKWRIDUHFHQWRSLQLRQWKDW
      7KH 1HZ 6HPHQ (YLGHQFH 'LVSURYHV 5DSH DV WKH             WKH &RXUW ODWHU ZLWKGUHZ  7KH &RXUW RI &ULPLQDO $SSHDOV
        0RWLYH                                                         UHPDQGHGWKHPDWWHUWRWKHWULDOFRXUWIRUIXUWKHUFRQVLGHUDWLRQ
                                                                        RIWKHZDLYHULVVXH7KLVUHPDQGZDVDYHUWHGKRZHYHUZKHQ
   )LUVWWKHQHZHYLGHQFHSHUWDLQLQJWRWKHVHPHQIRXQGRQ             WKH 7HQQHVVHH 6XSUHPH &RXUW UHLQVWDWHG WKH WULDO FRXUWjV
WKHYLFWLPjVXQGHUZHDUDQGQLJKWJRZQXQGHUPLQHVWKH6WDWHjV             LQLWLDO GLVPLVVDO RI WKH VHFRQG SHWLWLRQ IRU SRVWFRQYLFWLRQ
SURIIHUHG PRWLYH RI UDSH DW WULDO DQG WKXV UDLVHV D VHULRXV   UHOLHI+RXVHY6WDWH6:G7HQQ
TXHVWLRQDVWRZKHWKHUDMXU\ZRXOGKDYHIRXQG0U+RXVH                &ULWLFDO IRU WKLV KDEHDV DFWLRQ LV WKH &RXUWjV KROGLQJ
JXLOW\ DQG ZRXOG KDYH XVHG WKH LQIHUHQFH RI UDSH DV DQ       FRQFHUQLQJZDLYHU
DJJUDYDWLQJIDFWRULQVHQWHQFLQJKLPWRGHDWK$WWKHGLVWULFW
FRXUW KDEHDV KHDULQJ +RXVH RIIHUHG XQGLVSXWHG WHVWLPRQ\              :HFRQFOXGHWKDWDIXOODQGIDLUKHDULQJVXIILFLHQWWR
IURP'1$H[SHUW/LVD&DODQGURWKDWHOLPLQDWHG+RXVHDVD                  VXSSRUWDILQGLQJRISUHYLRXVGHWHUPLQDWLRQRFFXUVLID
SRWHQWLDOGRQRURIWKHVHPHQ0V&DODQGURFRQFOXGHGWKDW                SHWLWLRQHULVJLYHQWKHRSSRUWXQLW\WRSUHVHQWSURRIDQG
WKHYLFWLPjVKXVEDQGZDVWKHGRQRURIWKHVHPHQ,QDGGLWLRQ            DUJXPHQWRQWKHSHWLWLRQIRUSRVWFRQYLFWLRQUHOLHI:H
WKHUH LV QR RWKHU SK\VLFDO HYLGHQFH VXSSRUWLQJ UDSH RU            IXUWKHU FRQFOXGH WKDW WKH UHEXWWDEOH SUHVXPSWLRQ RI
DWWHPSWHG UDSH RI WKH YLFWLP  7KHUH ZDV QR HYLGHQFH RI         ZDLYHU LV QRW RYHUFRPH E\ DQ DOOHJDWLRQ WKDW WKH
SHQHWUDWLRQWKHYLFWLPjVFORWKLQJZDVQRWULSSHGRUUHPRYHG             SHWLWLRQHUGLGQRWSHUVRQDOO\DQGWKHUHIRUHNQRZLQJO\
DQG WKHUH ZHUH QR EUXLVHV RQ WKH YLFWLP LQGLFDWLQJ DQ            DQGXQGHUVWDQGLQJO\ZDLYHDJURXQGIRUUHOLHI,QVWHDG
DWWHPSWHGUDSH7KH6WDWHVHHPVQRZWRFRQFHGHWKHVHIDFWV              ZDLYHULVWREHGHWHUPLQHGE\DQREMHFWLYHVWDQGDUGXQGHU
                                                                          ZKLFKDSHWLWLRQHULVERXQGE\WKHDFWLRQRULQDFWLRQRI
  <HWDWWULDOWKH6WDWHDUJXHGLQLWVFORVLQJUHEXWWDOWKDWWKH        KLVDWWRUQH\)LQDOO\ZHFRQFOXGHWKDWWKHUHLVQRULJKW
3HWLWLRQHUjVPRWLYHLQKLVSXUSRUWHGNLOOLQJRIWKHYLFWLPZDV            WR HIIHFWLYH DVVLVWDQFH RI FRXQVHO LQ SRVWFRQYLFWLRQ
UDSHEDVHGRQWKHLQIHUHQFHWKDWWKHVHPHQRQWKHYLFWLPjV               SURFHHGLQJVDQGWKHUHIRUHDQDOOHJDWLRQRILQHIIHFWLYH
FORWKLQJ ZDV KLV  7KH 6WDWH SUHVHQWHG WKH IROORZLQJ              DVVLVWDQFH RI SULRU SRVWFRQYLFWLRQ FRXQVHO GRHV QRW
DUJXPHQW                                                                 SUHFOXGH DSSOLFDWLRQ RI WKH GHIHQVHV RI ZDLYHU DQG
                                                                          SUHYLRXVGHWHUPLQDWLRQ
  1RZ\RXPD\KDYHDQLGHDZK\KHGLGLW7KHHYLGHQFH
  DW WKH VFHQH ZKLFK VHHPHG WR VXJJHVW WKDW KH ZDV
    +RXVHY%HOO                                  1R       1R                                +RXVHY%HOO     

,GDW%HFDXVHRILWVKROGLQJWKH&RXUWUHLQVWDWHGWKH           :LWK UHVSHFW WR SHWLWLRQHUjV WKHRU\ WKDW 0U 0XQFH\
WULDOFRXUWjVRULJLQDOGHQLDORIUHOLHI                               FRPPLWWHGWKHPXUGHUZHGHIHUWRWKHILQGLQJRIWKHGLVWULFW
                                                                       FRXUWWKDW0V/HWQHUDQG0V3DUNHUZKRDOOHJHGO\KHDUG
   3HWLWLRQHUILOHGDSURVHKDEHDVSHWLWLRQRQ6HSWHPEHU          0U0XQFH\jVFRQIHVVLRQZHUHQRWFUHGLEOH)XUWKHUPRUH
ZKLFKZDVHYHQWXDOO\DPHQGHGDIWHUWKHGLVWULFWFRXUW            WKH FRQWHQW RI 0V /HWQHUjV WHVWLPRQ\ o WKDW 0U 0XQFH\
JUDQWHGLQIRUPDSDXSHULVVWDWXVDQGDSSRLQWHGFRXQVHO7KH           NLOOHGKLVZLIHGXULQJDQDUJXPHQWLQWKHLUWUDLOHUoLVEHOLHG
GLVWULFW FRXUW JUDQWHG WKH 6WDWHjV PRWLRQ IRU VXPPDU\           E\WKHSUHVHQFHRIWKHFKLOGUHQLQWKHWUDLOHUZKRKHDUGQR
MXGJPHQWRQWKHPDMRULW\RIFODLPVLQDQRUGHUHQWHUHGsXQH            VXFKFRQIURQWDWLRQDQGWKHODFNRIDQ\VLJQVRIDVWUXJJOH
,WFRQGXFWHGDQHYLGHQWLDU\KHDULQJRQSHWLWLRQHUjV
DFWXDOLQQRFHQFHFODLPLQ)HEUXDU\$IWHUFRQVLGHULQJ               3HWLWLRQHU KDV VXFFHHGHG LQ VKRZLQJ WKDW WKH VHPHQ
SRVWKHDULQJEULHIVRIFRXQVHOWKHGLVWULFWFRXUWGHQLHGKDEHDV       DWWULEXWHGWRKLPGXULQJWKHWULDOZDVWKDWRI0U0XQFH\DQG
UHOLHI,WDOVRGHQLHGDFHUWLILFDWHRIDSSHDODELOLW\ZKLFKZDV      WKDWDWVRPHSRLQWWKHEORRGHYLGHQFHDSSHDUVWRKDYHEHHQ
ODWHUVXSHUVHGHGE\WKLVFRXUWjVJUDQWRIDFHUWLILFDWHDVWRDOO      PLVKDQGOHG+RZHYHUWKHGLVWULFWFRXUWFRQFOXGHGWKDWmWKH
LVVXHV                                                                VSLOODJHRFFXUUHGDIWHUWKH)%,FULPHODERUDWRU\UHFHLYHGDQG
                                                                       WHVWHGWKHHYLGHQFHlDIDFWXDOFRQFOXVLRQWKDWLVQRWFOHDUO\
                                ,,                                    HUURQHRXV
  7KHILUVWLVVXHUDLVHGE\SHWLWLRQHURQDSSHDOLQYROYHVKLV            'HVSLWHKLVEHVWHIIRUWVWKHFDVHDJDLQVWSHWLWLRQHUUHPDLQV
FRQWHQWLRQ WKDW ERWK WKH 7HQQHVVHH FRXUWV DQG WKH GLVWULFW     RYHUZKHOPLQJ:HWKHUHIRUHFRQFOXGHWKDWKHKDVIDOOHQVKRUW
FRXUW HUUHG ZKHQ WKH\ FRQFOXGHG WKDW KLV LQHIIHFWLYH            RIVKRZLQJDVKHPXVWWKDWLWLVPRUHOLNHO\WKDQQRWWKDWQR
DVVLVWDQFHRIFRXQVHOFODLPVZHUHSURFHGXUDOO\EDUUHG                 UHDVRQDEOHMXURUZRXOGKDYHFRQYLFWHGKLPLQOLJKWRIQHZ
                                                                       HYLGHQFH
  ,QLWLDOO\ WKH GLVWULFW FRXUW GHIHUUHG JUDQWLQJ VXPPDU\
MXGJPHQWWRWKH6WDWHRQWKHFODLPVRILQHIIHFWLYHDVVLVWDQFH                                        ,9
RI FRXQVHO EHFDXVH mWKHVH FODLPV DUH LQWHUWZLQHG ZLWK
SHWLWLRQHUjV FODLP RI DFWXDO LQQRFHQFHl  0HPRUDQGXP               7KHMXGJPHQWRIWKHGLVWULFWFRXUWLVDIILUPHG
2SLQLRQ sXQH   DW   ,W ZHQW RQ WR SURYLGH WKH
IROORZLQJUDWLRQDOH
  >7@KH FRXUW ZLOO EH XQDEOH WR GHWHUPLQH ZKHWKHU WKH
  FODLPV VKRXOG EH EDUUHG RQ WKH JURXQG RI SURFHGXUDO
  GHIDXOWXQWLOWKHFRQFOXVLRQRIWKHHYLGHQWLDU\KHDULQJ
  %RXVOH\Y8QLWHG6WDWHV6&W
  m:KHUHDGHIHQGDQWKDVSURFHGXUDOO\GHIDXOWHGDFODLP
  E\IDLOLQJWRUDLVHLWRQGLUHFWUHYLHZWKHFODLPPD\EH
  UDLVHG LQ KDEHDV RQO\ LI WKH GHIHQGDQW FDQ ILUVW
  GHPRQVWUDWHHLWKHUµFDXVHjDQGDFWXDOµSUHMXGLFHjRUWKDW
  KHLVµDFWXDOO\LQQRFHQWjl$FFRUGLQJO\LQDGGLWLRQWR
  SHWLWLRQHUjV FODLP RI DFWXDO LQQRFHQFH WKH FRXUW ZLOO
  FRQVLGHU>WKHLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPV@
    +RXVHY%HOO                                  1R       1R                                  +RXVHY%HOO      

     $FFRUGLQJWR0V7KDUSKHUSDUHQWVJRWDORQJILQH               ,G DW   +RZHYHU DIWHU FRQGXFWLQJ DQ HYLGHQWLDU\
  7KH\DUJXHGEXWVKHGLGQRWUHFDOODQ\SK\VLFDOSXVKLQJ             KHDULQJDQGGHWHUPLQLQJWKDWSHWLWLRQHUKDGIDLOHGWRHVWDEOLVK
  RUKLWWLQJ,IWKH\DUJXHGVKHFRXOGKHDUWKHPLIVKHZDV          DFWXDO LQQRFHQFH WKH GLVWULFW FRXUW KHOG WKDW SHWLWLRQHUjV
  LQKHUEHGURRP7KHIDPLO\GLGQRWKDYHDLUFRQGLWLRQLQJ            LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPVZHUHmEDUUHGRQWKH
  LQWKHKRPH6KHGLGQRWKHDUDQ\DUJXPHQWVWKDWQLJKW             JURXQG RI SURFHGXUDO GHIDXOWl  0HPRUDQGXP 2SLQLRQ
                                                                       )HEUXDU\DW
    7KH FRXUW IRXQG 0V 7KDUS D YHU\ FUHGLEOH ZLWQHVV
  6KH KDG QR UHDVRQ WR OLH  +HU WHVWLPRQ\ GXULQJ WKH          3HWLWLRQHUFRQFHGHVWKDWDQDGHTXDWHDQGLQGHSHQGHQWVWDWH
  HYLGHQWLDU\ KHDULQJ ZDV FRQVLVWHQW ZLWK KHU WULDO              ODZJURXQGFDQSURFHGXUDOO\EDUVXEVHTXHQWKDEHDVFODLPV
  WHVWLPRQ\                                                           7KLVFLUFXLWKDVGHYHORSHGDIRXUSDUWDQDO\VLVWRGHWHUPLQH
                                                                       ZKHWKHUDFODLPLVEDUUHG
0HPRUDQGXP2SLQLRQ)HEUXDU\DW
                                                                           8QGHU0DXSLQY6PLWK)GWK&LU
  $V WKH SUHFHGLQJ UHFLWDWLRQ PDNHV FOHDU SHWLWLRQHU KDV         WKLVFLUFXLWXWLOL]HVWKHIROORZLQJIRXUSDUWDQDO\VLV
PRXQWHG D FRQFHUWHG DWWDFN RQ KLV FRQYLFWLRQ 7R SUHYDLO        ZKHQ WKH VWDWH DUJXHV WKDW D IHGHUDO KDEHDV FODLP KDV
KRZHYHU KH PXVW GR PRUH WKDQ UDLVH TXHVWLRQV DERXW WKH         EHHQSURFHGXUDOO\GHIDXOWHGLQVWDWHFRXUWZKHWKHU
UHOLDELOLW\ RI SRUWLRQV RI WULDO WHVWLPRQ\ RU WKH PDQQHU LQ     WKHUH LV D SURFHGXUDO UXOH WKDW LV DSSOLFDEOH WR WKH
ZKLFKSK\VLFDOHYLGHQFHZDVKDQGOHGRUDQDO\]HGKHPXVW                 SHWLWLRQHU
V FODLP DQG ZKHWKHU WKH SHWLWLRQHU IDLOHG WR
VKRZmWKDWLWLVPRUHOLNHO\WKDQQRWWKDWQRUHDVRQDEOHMXURU           IROORZ WKLV UXOH  ZKHWKHU WKH VWDWH FRXUWV DFWXDOO\
ZRXOGKDYHFRQYLFWHGKLPLQWKHOLJKWRIWKHQHZHYLGHQFHl              HQIRUFHGWKHVWDWHSURFHGXUDOUXOHZKHWKHUWKHVWDWH
6FKOXS  86 DW   0RUHRYHU LQ ZHLJKLQJ WKH QHZ        SURFHGXUDO UXOH LV DQ DGHTXDWH DQG LQGHSHQGHQW VWDWH
HYLGHQFHZHUHYLHZWKHIDFWXDOILQGLQJVRIWKHGLVWULFWFRXUW           JURXQGWRIRUHFORVHIHGHUDOUHOLHIDQGLIVRZKHWKHU
IRUFOHDUHUURU&DPSEHOOY&R\OH)GWK              WKH SHWLWLRQHU KDV HVWDEOLVKHG FDXVH IRU KLV IDLOXUH WR
&LU                                                            IROORZWKHUXOHDQGSUHMXGLFHE\WKHDOOHJHGFRQVWLWXWLRQDO
                                                                         HUURU
  7KHIROORZLQJIDFWVWKDWLPSOLFDWHSHWLWLRQHUDUHXQGLVSXWHG
KHOLHGWRLQYHVWLJDWRUVDERXWKLVZKHUHDERXWVRQWKHQLJKWRI         :KLWHY6FKRWWHQ)GWK&LU
WKHPXUGHUKHJDYHLQFRQVLVWHQWYHUVLRQVRIWKHRULJLQVRIWKH
VFUDWFKHVDQGEUXLVHVRQKLVKDQGVDQGDUPVKHZDVVHHQQHDU            3HWLWLRQHUSRLQWVWRWKHWRUWXUHGSDWKWKDWKLVFDVHWRRNLQ
ZKHUHWKHERG\ZDVGLVFRYHUHGRQWKHGD\DIWHUWKHPXUGHU             WKHFRXUWVRI7HQQHVVHHDQGDUJXHVWKDWQRKDUGDQGIDVWUXOH
KHOLHGDERXWZKDWKHZDVZHDULQJRQWKHQLJKWRIWKHPXUGHU          H[LVWHGWRSURFHGXUDOO\EDUKLVSURVHLQHIIHFWLYHDVVLVWDQFHRI
EORRGDQGPXGVSODWWHUHGEOXHMHDQVEHORQJLQJWRSHWLWLRQHU            FRXQVHO FODLPV  6SHFLILFDOO\ KH SRLQWV WR WKH IROORZLQJ
ZHUHIRXQGDWWKHERWWRPRI0V7XUQHUjVODXQGU\KDPSHU               SDUDJUDSKRIWKHRSLQLRQRIWKH7HQQHVVHH6XSUHPH&RXUW
SHWLWLRQHUKDVDGHHSYRLFHDQG/DUD0XQFH\WHVWLILHGWKDWWKH
PDQZKRFDPHWRWKHWUDLOHURQWKHQLJKWRIWKHPXUGHUKDGD               2XUUHVHDUFKKDVUHYHDOHGQRUHSRUWHG7HQQHVVHHFDVH
GHHSYRLFHDQGDFFRUGLQJWR'U6XWWRQWKHEORRGDQGPXG              GHDOLQJ GLUHFWO\ ZLWK WKH LVVXH RI WKH DSSURSULDWH
IRXQG RQ SHWLWLRQHUjV EOXH MHDQV KDG EHHQ PL[HG WRJHWKHU        VWDQGDUG WR DSSO\ ZKHQ GHWHUPLQLQJ ZKHWKHU DQ LVVXH
ZKLFKmFHUWDLQO\HOLPLQDWHVWKHSRVVLELOLW\RIDQ\VWDLQVEHLQJ          KDV EHHQ ZDLYHG &RXUWV LQ RWKHU VWDWHV KDYH VSOLW RQ
FUHDWHGE\FRQWDPLQDWLRQLQDQHYLGHQFHFRQWDLQHUl                      ZKHWKHUWRDSSO\DVXEMHFWLYHRUREMHFWLYHVWDQGDUGDQG
                                                                         SURYLGHXVOLWWOHDVVLVWDQFHEHFDXVHWKHLUGHFLVLRQVZHUH
                                                                         EDVHGODUJHO\RQWKHSDUWLFXODUVWDWHVWDWXWRU\SURFHGXUH
    +RXVHY%HOO                                   1R    1R                                      +RXVHY%HOO      

  +RZHYHU 7HQQHVVHH FDVHV GHDOLQJ JHQHUDOO\ ZLWK WKH            FKHFNHGKHIRXQGWKDWKHKDGNLOOHGKHU+HWRRNKHU
  FRQFHSWRIZDLYHULQWKHSRVWFRQYLFWLRQFRQWH[WDSSO\DQ            ERG\GRZQE\DFUHHNUXQQLQJQHDUWKHLUKRPHDQGKLGLW
  REMHFWLYHVWDQGDUGDQGLPSXWHWKHFRQGXFWRIFRXQVHOWR              ZLWKVRPHEUXVKDQGEUDQFKHV
  WKHLUFOLHQWV6HHHJ&DUXWKHUVY6WDWH6:G
  7HQQ&ULP$SS6WDWHY%LVKRS6:G                :KHWKHU0U0XQFH\HYHUZHQWEDFNWRWKHGDQFHLV
  7HQQ&ULP$SS                                         XQFHUWDLQ  &RQVWDEOH :DOODFH ZKR ZDV SURYLGLQJ
                                                                       VHFXULW\ DW WKH GDQFH WHVWLILHG WKDW KH QHYHU VDZ 0U
+RXVH  6:G DW  HPSKDVLV DGGHG IRRWQRWHV            0XQFH\ UHWXUQ DIWHU KH OHIW DURXQG  SP  0U
RPLWWHG,QSHWLWLRQHUjVYLHZWKLVRSLQLRQLOOXVWUDWHVWKDWQR      0XQFH\FODLPHGGXULQJWKHKHDULQJWKDWKHQHYHUOHIWWKH
UXOHKDGEHHQFOHDUO\HVWDEOLVKHG                                    GDQFHXQWLOLWEURNHXSVRPHWZRRUPRUHKRXUVODWHU
   :HGRQRWZULWHRQDFOHDQVODWHZLWKUHVSHFWWRWKLVLVVXH      3HWLWLRQHUjV EULHI DW   3HWLWLRQHU DOVR SRLQWV RXW WKDW
6HH&RQHY%HOO)GWK&LUVHHDOVR&RH         'HQQLV:DOODFHGLGQRWWKLQNWKDW0U0XQFH\VHHPHGXSVHW
Y%HOO)GWK&LU,Q&RQHWKLVFRXUW         ZKHQKHUHSRUWHGKLVZLIHjVGLVDSSHDUDQFHRUZKHQWKHERG\
PDGHFOHDUWKDWWKH+RXVHRSLQLRQUHOLHGXSRQE\SHWLWLRQHU          ZDVUHFRYHUHG$OVR0U0XQFH\DVNHGDQHLJKERU$UWLH
PHUHO\H[SODLQHGH[LVWLQJVWDWHODZ3HWLWLRQHULQWKDWFDVH        /DZVRQWKHQH[WPRUQLQJWRWHOOSHRSOHWKDWKHZDVDWWKH
FRQWHQGHGWKDWKHKDGQRWSHUVRQDOO\ZDLYHGDFKDOOHQJHWRD         GDQFH6LQFHVKHKDGQRWDWWHQGHGLWKHUVHOIVKHGHFOLQHG
MXU\LQVWUXFWLRQ,QUHMHFWLQJKLVFODLPZHH[SODLQHG             +HUGDXJKWHU0DU\$WNLQVKRZHYHUWHVWLILHGWKDWVKHQRW
                                                                     RQO\VDZ/LWWOH+XEHDWWKHGDQFHEXWWKDWVKHVDZKLPKLWKLV
     )LUVWZHDUHDZDUHRIWZRFDVHVLQZKLFKFRXUWVKDYH           ZLIH
  FRQVLGHUHGZKHWKHUDSHWLWLRQHULVERXQGE\KLVDWWRUQH\
V
  ZDLYHURIDFRQVWLWXWLRQDOFODLP&RH)GDQG              7KHGLVWULFWFRXUWGLVFRXQWHGWKHWHVWLPRQ\RI/HWQHUDQG
  +RXVHY6WDWH6:G7HQQ7KH+RXVH             3DUNHUm7KHFRXUWLVQRWLPSUHVVHGZLWKWKHDOOHJDWLRQVRI
  FRXUWVWDWHGWKDW>Z@DLYHULQWKHSRVWFRQYLFWLRQFRQWH[W         LQGLYLGXDOV ZKR ZDLW RYHU WHQ \HDUV WR FRPH IRUZDUG ZLWK
  LVWREHGHWHUPLQHGE\DQREMHFWLYHVWDQGDUGXQGHUZKLFK           WKHLUHYLGHQFHl0HPRUDQGXP2SLQLRQ)HEUXDU\
  D SHWLWLRQHU LV ERXQG E\ WKH DFWLRQ RU LQDFWLRQ RI KLV   DW   ,QVWHDG WKH FRXUW FUHGLWHG WKH WHVWLPRQ\ RI /RUD
  DWWRUQH\+RXVH6:GDW+RXVHGRHVQRW               0XQFH\7KDUSWKHGDXJKWHUZKRWHVWLILHGDWERWKWKHWULDODQG
  DSSHDUWRDQQRXQFHDQHZVWDQGDUGDV&RQHVXJJHVWV               HYLGHQWLDU\KHDULQJ
  5DWKHULWVHHPVPHUHO\WRDIILUP7HQQHVVHH
VVWDQGDUGRI
  ZDLYHU                                                              :KLOHLQEHGVKHKHDUGDGHHSYRLFHVD\LQJKHUGDGKDG
                                                                       EHHQLQYROYHGLQDZUHFNQH[WWRWKHFUHHN6RPHWLPH
    ,Q&RHDVZHH[SODLQHGHDUOLHUWKLVFRXUWKHOGWKDWWKH          ODWHU VKH DQG KHU EURWKHU JRW XS DQG ZHQW ORRNLQJ IRU
  SHWLWLRQHUKDGSURFHGXUDOO\GHIDXOWHGKLVVWDWHFODLPWKDW           WKHLUPRWKHU7KH\ZHQWWRWKHQHLJKERUVDQGORRNHGXS
  WKHWULDOFRXUWIDLOHGWRJLYHDFRUUHFWPDOLFHLQVWUXFWLRQ         DQGGRZQWKHGULYHZD\6KHGLGQRWVHHDQ\WKLQJRXWRI
  +HSUHVHQWHGWKHFODLPIRUWKHILUVWWLPHLQKLVVHFRQG              WKHRUGLQDU\LQWKHKRXVHQRWKLQJZDVRXWRISODFHDQG
  SHWLWLRQ IRU SRVWFRQYLFWLRQ UHOLHI UDWKHU WKDQ KLV ILUVW     WKHUHZDVQRVLJQRIDVWUXJJOH
  SHWLWLRQDVDFRQVHTXHQFHRIZKLFKWKH7HQQHVVHH&RXUW
  RI &ULPLQDO $SSHDOV IRXQG LW KDG EHHQ SURFHGXUDOO\
  ZDLYHG&RH)GDW7KLVFRXUWFLWHG+RXVH
  ZKHQGHWHUPLQLQJWKDW&RHKDGGHIDXOWHGKLVFODLPXQGHU                
                                                                             'HQQLV :DOODFH ZDV WKH &KLHI RI 3ROLFH RI /XWWUHOO WKH QHDUHVW
  DQREMHFWLYHVWDQGDUGRIZDLYHU+RZHYHUWKHSHWLWLRQ          WRZQ
    +RXVHY%HOO                                    1R       1R                                  +RXVHY%HOO      

VLWWLQJDURXQGGULQNLQJZKHQ0U0XQFH\mVWDUWHGFU\LQJDQG                XSRQZKLFKWKHFRXUWUHOLHGLQILQGLQJWKHGHIDXOWZDV
JRLQJ RQ DQG UDPEOLQJ RIIl  $FFRUGLQJ WR 3DUNHU KH ZDV         ILOHG EHIRUH +RXVH ZDV GHFLGHG  7KXV FRQFHUQLQJ
m>W@DONLQJ DERXW ZKDW KDSSHQHG WR KLV ZLIH DQG KRZ LW             GHIDXOWV WKDW RFFXUUHG EHIRUH +RXVH ZDV GHFLGHG WKH
KDSSHQHG DQG KH GLGQjW PHDQ WR GR LW EXW , GRQjW NQRZ          7HQQHVVHHFRXUWVKDYHVWULFWO\DQGUHJXODUO\DSSOLHGWKH
H[DFWO\ZKDWDOOZDVVDLGl6KHZHQWRQm>+@HVDLGWKH\KDG              WUDGLWLRQDO VWDQGDUG RI ZDLYHU ZKHWKHU WKH ZDLYHU LV
EHHQLQWRDQDUJXPHQWDQGKHVODSSHGKHUDQGVKHIHOODQGKLW              PDGHE\FRXQVHORUWKHSHWLWLRQHUSHUVRQDOO\
KHU KHDG DQG LW NLOOHG KHU DQG KH GLGQjW PHDQ IRU LW WR
KDSSHQl+HZDVGUXQNZKHQKHPDGHWKLVFRQIHVVLRQ$IWHU                     
KHDULQJLW3DUNHUFODLPHGm,IUHDNHGRXWDQGUDQKLPRIIl
7KHQH[WGD\KHUPRWKHUWRRNKHUWRWKHFRXUWKRXVHWRWHOO                    /DVWZHDUHQRWSHUVXDGHGWKDW&RQHLVFRUUHFWLQKLV
VRPHRQHDERXWLW+RZHYHUm,QHYHUGLGUHDOO\JHWWRWDONWR             FODLPWKDW7HQQHVVHHODZZDVLQDVWDWHRIFRQIXVLRQRQ
DQ\ERG\l  :KHQ WKH GLVWULFW FRXUW DVNHG KHU DERXW WKH            ZKHWKHUDQREMHFWLYHRUVXEMHFWLYHVWDQGDUGRIZDLYHU
PRWLYDWLRQEHKLQGKHUWHVWLPRQ\VKHUHSOLHGm$QLQQRFHQW                 LVDSSURSULDWH,WLVQRWFOHDUIURPWKH7HQQHVVHHFDVHV
PDQLVLQMDLOl                                                          WKDWSURFHGXUDOGHIDXOWPD\QRWEHFKDUJHGWRDSHWLWLRQHU
                                                                           ZKRKDVQRWKLPVHOINQRZLQJO\DQGXQGHUVWDQGLQJO\
  2QFURVVH[DPLQDWLRQ3DUNHUWHVWLILHGWKDWVKHKDGWULHGWR             ZDLYHGWLPHO\DVVHUWLRQRIDIHGHUDOFRQVWLWXWLRQDOFODLP
FRPHIRUZDUG EXW QRRQHVHHPHGLQWHUHVWHG6KHKDGKDG                  ZKHQ KLV DWWRUQH\ KDV GRQH VR  :H DUH VDWLVILHG WKDW
VHYHQRUHLJKWEHHUVRQWKHQLJKWRIWKHFRQIHVVLRQ                      7HQQHVVHHIROORZVWKHWUDGLWLRQDOUXOHWKDWDSHWLWLRQHULV
                                                                           FKDUJHDEOHZLWKKLVDWWRUQH\
VIDLOXUHWRWLPHO\DVVHUWD
  3DUNHUjV VLVWHU 3HQQ\ /HWQHU DOVR KHDUG WKH FRQIHVVLRQ          FODLPDQGZLWKWKHFRQVHTXHQFHVRIIDLOLQJWRGRVR
IURP /LWWOH +XEH  2QFH DJDLQ VKH UHFDOOHG WKDW KH ZDV
mSUHWW\ZHOOEOLVWHUHGl$FFRUGLQJWR/HWQHU                          ,GDW:HILQGWKLVUHDVRQLQJGLVSRVLWLYHRIWKHLVVXH
                                                                         EHIRUHXVDQGDFFRUGLQJO\FRQFOXGHWKDWWKHGLVWULFWFRXUWZDV
  +HVDLGKHGLGQjWPHDQWRGRLW7KDWVKHZDVmELWFKLQJ               FRUUHFW ZKHQ LW GHWHUPLQHG WKDW SHWLWLRQHUjV LQHIIHFWLYH
  KLPRXWlEHFDXVHKHGLGQjWWDNHKHUILVKLQJWKDWQLJKW                DVVLVWDQFHRIFRXQVHOFODLPVKDGEHHQSURFHGXUDOO\GHIDXOWHG
  WKDWKHZHQWWRWKHGDQFHLQVWHDG+HVDLGZKHQKHFRPH
  KRPHWKDWVKHZDVVWLOORQKLPSUHWW\KHDYLO\mELWFKLQJ                                               ,,,
  KLPRXWlDJDLQDQGWKDWKHVPDFNHGKHUDQGWKDWVKHIHOO
  DQGKLWKHUKHDG+HVDLGKHGLGQjWPHDQWRGRLWEXW,                 :HWXUQQH[WWRSHWLWLRQHUjVFODLPRIDFWXDOLQQRFHQFH,Q
  KDGWRJHWULGRIKHUEHFDXVH,GLGQjWZDQWWREHFKDUJHG             6FKOXSY'HOR86WKH&RXUWKHOGWKDWD
  ZLWKPXUGHU                                                           SHWLWLRQHU PXVW VKRZ HLWKHU FDXVH DQG SUHMXGLFH RU D
                                                                         PLVFDUULDJHRIMXVWLFHLQRUGHUWRREWDLQKDEHDVUHYLHZRIDQ
/HWQHUKDGQRWEHHQGULQNLQJ6KHZDVIULJKWHQHGE\WKHWDON            RWKHUZLVH SURFHGXUDOO\ GHIDXOWHG FODLP  :LWK UHVSHFW WR D
DQG OHIW WKH SDUW\  $V D \RXQJ PRWKHU RI  VKH ZDV WRR   PLVFDUULDJHRIMXVWLFHWKHSHWLWLRQHUPXVWGHPRQVWUDWHWKDWmD
VFDUHGWRUHSRUWWKHFRQIHVVLRQ                                        FRQVWLWXWLRQDO YLRODWLRQ KDV SUREDEO\ UHVXOWHG LQ WKH
                                                                         FRQYLFWLRQRIRQHZKRLVDFWXDOO\LQQRFHQWl6FKOXS86
  %DVHGXSRQWKHVWDWHPHQWVRI/HWQHUDQG3DUNHUSHWLWLRQHU             DW7KLVH[FHSWLRQLVUDUHDQGVKRXOGEHDSSOLHGRQO\LQ
SRVLWVWKHIROORZLQJVFHQDULR                                           WKHH[WUDRUGLQDU\FDVH
    :KHQ0U0XQFH\JRWKRPHKHDQGKLVZLIHUHVXPHG                        &ODLPV RI DFWXDO LQQRFHQFH SRVH OHVV RI D WKUHDW WR
  WKHLUILJKW+HKLWKHUDWOHDVWRQFHDQGVKHIHOO:KHQKH            VFDUFHMXGLFLDOUHVRXUFHVDQGWRSULQFLSOHVRIILQDOLW\DQG
    +RXVHY%HOO                                 1R     1R                                   +RXVHY%HOO      

  FRPLW\WKDQGRFODLPVWKDWIRFXVVROHO\RQWKHHUURQHRXV            :LWKRXWTXHVWLRQRQHRUPRUHWXEHVRI0UV0XQFH\jV
  LPSRVLWLRQRIWKHGHDWKSHQDOW\7KRXJKFKDOOHQJHVWR              EORRG VSLOOHG DW VRPH WLPH  ,W LV OLNHO\ WKH VSLOODJH
  WKH SURSULHW\ RI LPSRVLQJ D VHQWHQFH RI GHDWK DUH           RFFXUUHG SULRU WR WKH UHFHLSW RI WKH HYLGHQFH E\ >WKH@
  URXWLQHO\DVVHUWHGLQFDSLWDOFDVHVH[SHULHQFHKDVWDXJKW          ODERUDWRU\ KLUHG E\ 0U +RXVHjV WULDO DWWRUQH\  %DVHG
  XVWKDWDVXEVWDQWLDOFODLPWKDWFRQVWLWXWLRQDOHUURUKDV           XSRQ WKH HYLGHQFH LQWURGXFHG GXULQJ WKH HYLGHQWLDU\
  FDXVHGWKHFRQYLFWLRQRIDQLQQRFHQWSHUVRQLVH[WUHPHO\            KHDULQJKRZHYHUWKHFRXUWFRQFOXGHVWKDWWKHVSLOODJH
  UDUH6HHVXSUDDW7REHFUHGLEOHVXFKDFODLP             RFFXUUHG DIWHU WKH )%, FULPH ODERUDWRU\ UHFHLYHG DQG
  UHTXLUHV SHWLWLRQHU WR VXSSRUW KLV DOOHJDWLRQV RI             WHVWHGWKHHYLGHQFH
  FRQVWLWXWLRQDOHUURUZLWKQHZUHOLDEOHHYLGHQFHZKHWKHU
  LW EH H[FXOSDWRU\ VFLHQWLILF HYLGHQFH WUXVWZRUWK\             >7@KHHQ]\PHGHWHULRUDWLRQDVZHOODV0U0XQFH\jV
  H\HZLWQHVVDFFRXQWVRUFULWLFDOSK\VLFDOHYLGHQFHWKDW          DOOHJHG FRQIHVVLRQ DQG WKH EORRG VSLOODJH GRHV QRW
  ZDV QRW SUHVHQWHG DW WULDO  %HFDXVH VXFK HYLGHQFH LV      QHJDWHWKHIDFWWKDW$JHQW6FRWWVDZZKDWDSSHDUHGWREH
  REYLRXVO\ XQDYDLODEOH LQ WKH YDVW PDMRULW\ RI FDVHV         EORRGVWDLQVRQ0U+RXVHjVEOXHMHDQVZKHQWKHMHDQV
  FODLPVRIDFWXDOLQQRFHQFHDUHUDUHO\VXFFHVVIXO(YHQ             ZHUHUHPRYHGIURPWKHODXQGU\KDPSHUDW0V7XUQHUjV
  XQGHUWKHSUH6DZ\HUUHJLPHLQYLUWXDOO\HYHU\FDVHWKH          WUDLOHUDQGWKDWWKHEORRGZDVLQIDFWIURP0UV0XQFH\
  DOOHJDWLRQ RI DFWXDO LQQRFHQFH KDV EHHQ VXPPDULO\
  UHMHFWHG7KHWKUHDWWRMXGLFLDOUHVRXUFHVILQDOLW\DQG       0HPRUDQGXP2SLQLRQ)HEUXDU\DW
  FRPLW\ SRVHG E\ FODLPV RI DFWXDO LQQRFHQFH LV WKXV
  VLJQLILFDQWO\OHVVWKDQWKDWSRVHGE\FODLPVUHODWLQJRQO\           3HWLWLRQHUQRWRQO\SUHVHQWHGHYLGHQFHWRWKHGLVWULFWFRXUW
  WRVHQWHQFLQJ                                                    WKDW XQGHUPLQHG WKH FDVH DJDLQVW KLP KH DOVR RIIHUHG DQ
                                                                    DOWHUQDWLYHWKHRU\RIWKHFULPHWKDW0U0XQFH\NLOOHGKLV
    2I JUHDWHU LPSRUWDQFH WKH LQGLYLGXDO LQWHUHVW LQ         ZLIH
  DYRLGLQJLQMXVWLFHLVPRVWFRPSHOOLQJLQWKHFRQWH[WRI
  DFWXDO LQQRFHQFH 7KH TXLQWHVVHQWLDO PLVFDUULDJH RI            $WWKHHYLGHQWLDU\KHDULQJSHWLWLRQHUSURGXFHGZLWQHVVHV
  MXVWLFH LV WKH H[HFXWLRQ RI D SHUVRQ ZKR LV HQWLUHO\     ZKR WHVWLILHG DERXW 0U 0XQFH\jV DOFRKROLVP DQG DOVR KLV
  LQQRFHQW                                                         SK\VLFDODEXVHRIKLVZLIH2QHDFTXDLQWDQFH.DWK\3DUNHU
                                                                    WHVWLILHGm>0UV0XQFH\@ZDVFRQVWDQWO\ZLWKEODFNH\HVDQG
86DWIRRWQRWHVRPLWWHG7KXVm>W@RHVWDEOLVK      EXVWHG PRXWKl  $ IULHQG +D]HO 0LOOHU WHVWLILHG WKDW 0U
WKHUHTXLVLWHSUREDELOLW\>WKDWSHWLWLRQHULVDFWXDOO\LQQRFHQW@   0XQFH\WROGKHUWKDWZDVJRLQJWRJHWULGRIKLVZLIHDIHZ
WKHSHWLWLRQHUPXVWVKRZWKDWLWLVPRUHOLNHO\WKDQQRWWKDWQR    PRQWKVEHIRUHKHUGHDWK,QWKHGLVWULFWFRXUW0U0XQFH\
UHDVRQDEOHMXURUZRXOGKDYHFRQYLFWHGKLPLQWKHOLJKWRIWKH       DFNQRZOHGJHGWKDWKHmVPDFNHGlKLVZLIHDWOHDVWRQFH
QHZHYLGHQFHl86DW
                                                                      $VIRUWKHGD\RIWKHPXUGHU0U0XQFH\ZDVVXSSRVHGWR
  %HFDXVHWKHGLVWULFWFRXUWFRQGXFWHGDQHYLGHQWLDU\KHDULQJ       KHOSGLJDJUDYH+HZHQWRYHUWRKLVIDWKHUjVSODFHKHOSHGWR
RQWKHLVVXHWKHUHLVWHVWLPRQ\DERXWHYHQWVEH\RQGZKDWZDV       ZRUNRQVRPHFDUVWKHQGXJWKHJUDYH+RZHYHUUDWKHUWKDQ
SUHVHQWHGGXULQJWKHRULJLQDOWULDO3HWLWLRQHUFRQWHQGVWKDW      JR KRPH KH ZHQW WR WKH ZHHNO\ GDQFH DW WKH & 	 &
WKLV QHZ HYLGHQFH LV VXIILFLHQW WR HVWDEOLVK KLV DFWXDO     5HFUHDWLRQ&HQWHUZKHUHKHWHVWLILHGWKDWKHVWD\HGXQWLODERXW
LQQRFHQFH:HZLOOVXPPDUL]HLWEHIRUHH[SODLQLQJZK\LQ          PLGQLJKW+HWKHQDUULYHGKRPHWRILQGKLVZLIHPLVVLQJ
RXUYLHZSHWLWLRQHUKDVIDLOHGWRVKRZWKDWLWLVPRUHOLNHO\
WKDQQRWWKDWQRUHDVRQDEOHMXURUZRXOGKDYHFRQYLFWHGKLP           .DWK\3DUNHUWROGWKHGLVWULFWFRXUWWKDW0U0XQFH\YLVLWHG
                                                                    KHURQD)ULGD\QLJKWLQDIWHUWKHPXUGHU)ULHQGVZHUH
   +RXVHY%HOO                                 1R     1R                                    +RXVHY%HOO      

  'U %ODNH WHVWLILHG WKDW WKHUH ZDV QR WRWDO FKDLQ RI       3HWLWLRQHU WHVWLILHG IRU WKH ILUVW WLPH DW WKH HYLGHQWLDU\
  FXVWRG\$OVRDFFRUGLQJWR'U%ODNH'U&DUDELD>WKH         KHDULQJ+HRIIHUHGWKLVYHUVLRQRIWKHQLJKWRIWKHPXUGHU
  FRURQHU@IDLOHGWRUHIULJHUDWHDQGSUHVHUYHWKHEORRGLQ         m,ZHQWIRUDZDON,JRWMXPSHGUDQDURXQGFDPHEDFNl+H
  WKHWXEHVIDLOHGWRVHDOWKHWXEHVRIEORRGZKLFKFRXOG        ZHQWRQWRH[SODLQWKDWWKHWHUUDLQZDVKLOO\DQGLWZDVGDUN
  UHVXOW LQ VSLOODJH DQG IDLOHG WR SDFNDJH WKH LWHPV
  LQGLYLGXDOO\                                                      ,KDGRQO\EHHQZDONLQJDERXWPD\EHPLQXWHVDWWKH
                                                                     PRVWLWVHHPVOLNH$WUXFNSXOOHGXSEHKLQGPHZLWK,
     'U%ODNHjVWHVWLPRQ\ZDVEDVHGXSRQKLVUHYLHZRI              UHPHPEHULWDVEHLQJOLNHZKHHOGULYH,WVDWXSKLJK
  SKRWRJUDSKVRIWKHSK\VLFDOHYLGHQFHDQGZDVUHOHYDQW             \RXNQRZ+HDGOLJKWVZHUHRQ,WKDGOLJKWVDFURVVWKH
  WR'U%ODNHjVRSLQLRQWKDWWKHEORRGRQSHWLWLRQHUjVEOXH         URRIRIWKHFDEDQGWKH\ZHUHRQ,FRXOGQjWVHHDQ\WKLQJ
  MHDQVUHVXOWHGIURPVSLOODJHRI0UV0XQFH\jVEORRGLQ             RWKHUWKDQWKDWDERXWWKHWUXFN,WXUQHGDURXQGDQG
  WKHODERUDWRU\WXEHV                                         ,NHSWZDONLQJ,EHOLHYHWKHUHZHUHDWOHDVWWZRJX\VLQ
                                                                     WKHWUXFN,NQRZWKHGULYHUJRWRXWRQKLVVLGHRQHJX\
                                                              JRWRXWRQWKHSDVVHQJHUVLGH,FRXOGQjWUHDOO\GLVFHUQLW
                                                                     EXW,WKLQNWKHUHZDVRQHRWKHUJX\LQWKHFDE7KHGULYHU
     'U%ODNHWHVWLILHGWKDWLIIUHVKEORRGKDGVSLOOHGRQWKH      FDPHXS,FDQUHPHPEHUKHVDLGVRPHWKLQJEXW,GRQjW
  EOXHMHDQVZKLOH0UV0XQFH\ZDVDOLYHDQGWKHQGULHG            HYHQ NQRZ LI , KHDUG KLP FRUUHFWO\ DW WKH WLPH  +H
  WKHHQ]\PHVRQWKHMHDQVZRXOGQRWKDYHGHWHULRUDWHGWR            JUDEEHGPHE\WKHDUP+HVWDUWHGWRMHUNPHDURXQG,
  WKHVDPHH[WHQWDVWKHHQ]\PHVLQWKHEORRGWDNHQIURP             WXUQHGDURXQGWXUQHGDQGWKUHZEDFNZLWKP\OHIWKDQG
  0UV0XQFH\)URPWKLV'U%ODNHFRQFOXGHGWKHEORRG             , KLWKLP+HOHWJR,VWDUWHGUXQQLQJ,UDQNLQGRI
  ZDV QRW VSLOOHG RQ WKH MHDQV ZKLOH 0UV 0XQFH\ ZDV        GLDJRQDOO\ DFURVV WKH URDG LQWR VRPH WUHHV EXVKHV
  DOLYHEXWUDWKHUFDPHIURPWKHVSLOODJHRIWKHWHVWWXEHV         ZKDWHYHULWZDV,KHDUGDVKRWDWOHDVWRQH7KHUHPLJKW
                                                                     KDYHEHHQWZR,DPQRWVXUH,UDQDURXQGWKURXJKWKRVH
     'U%ODNHDOVRWHVWLILHGZLWKUHVSHFWWRWKHDJHRI0U         ZRRGV IRU D ZKLOH  , GRQjW NQRZ KRZ ORQJ  :KHQ ,
  +RXVHjVEUXLVHVEDVHGXSRQSKRWRJUDSKVWDNHQIURPWKH             FDPHEDFNRXWo,EHOLHYHDWRQHSRLQW,UDQWRWKHULJKW
  VWDWHFRXUWUHFRUG'U%ODNHHVWLPDWHGVRPHEUXLVHVDW           RQFH,JRWLQWRWKHZRRGVDQGVWDUWHGKHDGLQJEDFN
  RQHWRWZRGD\VROGRWKHUVDWILYHWRVL[GD\VROG$OVR        ,ZHQWEDFNDFURVVWKHURDGXSWR'RQQDjVKRXVH:KHQ
  LQ'U%ODNHjVRSLQLRQWKHEUXLVLQJRQ0U+RXVHjVULJKW          ,JRW,VWHSSHGRQVRPHWKLQJDVKDUSURFNRUVRPHWKLQJ
  ULQJILQJHUZDVDQLQMXU\IURPEHLQJPDVKHGLWZDVQRW            ,NQHZ,VWHSSHGRQLW:KHQ,ORRNHGGRZQ,RQO\KDG
  FRQVLVWHQWZLWKVWULNLQJVRPHRQH                                  RQHVKRH,ORVWRQHRIWKHPZKLOH,ZDVUXQQLQJ,WRRN
                                                                     WKHRWKHURQHRIIDQGWKUHZLWDFURVVWKHURDG
0HPRUDQGXP2SLQLRQ)HEUXDU\DW
                                                                          
   7KHGLVWULFWFRXUWDOVRUHFDSSHGWKHWHVWLPRQ\RIWKHEORRG
VSDWWHU H[SHUW 0V 6XWWRQ ZKR FRQFOXGHG WKDW mWKH EORRG       ,GLGQjWHYHQQRWLFHP\VKLUWZDVJRQHXQWLO,JRWXSWR
VWDLQVFRXOGQRWKDYHUHVXOWHGIURPVSLOODJHEHFDXVHWKHEORRG       WKHWUDLOHU
DQGPXGZRXOGKDYHKDGWRKDYHVSLOOHGDWWKHVDPHWLPHl
0HPRUDQGXP2SLQLRQ)HEUXDU\DW                       $V WKH IDFWXDO VXPPDU\ RI WKH 7HQQHVVHH 6XSUHPH &RXUW
                                                                   DWWHVWVWKLVYHUVLRQRIHYHQWVGRHVQRWGLIIHUPDUNHGO\IURP
  :LWKUHVSHFWWRWKHEORRGWKHFRXUWGHWHUPLQHG                 WKHRQHSUHVHQWHGE\'RQQD7XUQHUGXULQJWULDO:KHQDVNHG
                                                                   ZK\KHLQLWLDOO\OLHGWRLQYHVWLJDWRUVE\WHOOLQJWKHPWKDWKH
       +RXVHY%HOO                              1R      1R                                  +RXVHY%HOO      

KDGQRWOHIWWKHWUDLOHUDWDOOSHWLWLRQHUUHVSRQGHGm,ZDVRQ       REWDLQHGDFRQVHQWWRVHDUFKIURP0V7XUQHU+HZHQW
SDUROH,GLGQjWZDQWWRGUDZDWWHQWLRQWRP\VHOIl                 WR 0V 7XUQHUjV KRPH DQG VHL]HG D SDLU RI EOXH MHDQV
                                                                       IURPWKHFORWKHVKDPSHULQWKHEDWKURRP7KHMHDQVKDG
  ,QVKRUWSHWLWLRQHUjVWHVWLPRQ\PHUHO\UHVWDWHVDVFHQDULR          mUHGGLVKEURZQlVWDLQVWKDWKHVXVSHFWHGZDV>VLF@EORRG
SUHVHQWHG WR WKH MXU\ WKDW FRQYLFWHG KLP  0RUHRYHU WKH      RQWKHXSSHUSDUWRIWKHMHDQVDQGQHDUWKHFXIIWKHUHZDV
GLVWULFWFRXUWZKLFKKDGWKHRSSRUWXQLW\WRDVVHVVSHWLWLRQHUjV       DOVRVRPHOLJKWFRORUHGPXGWKDWZDVQRWFRPSOHWHO\GU\
GHPHDQRUIRXQGKLVWHVWLPRQ\WREHOHVVWKDQFUHGLEOH
                                                                         0U6FRWWGLGQRWWKRURXJKO\H[DPLQHWKHMHDQVDWWKDW
  'XULQJ WKH HYLGHQWLDU\ KHDULQJ SHWLWLRQHU GHYRWHG              WLPHEXWUDWKHUIROGHGWKHPDQGSXWWKHPLQDSDSHUEDJ
FRQVLGHUDEOHWLPHWRWKHWULDOWHVWLPRQ\RI%LOO\5D\+HQVOH\         0U6FRWWGLGQRWUHFDOOHYHUVHHLQJWKHMHDQVLQDSODVWLF
WKH LQGLYLGXDO ZKR VDZ SHWLWLRQHU QHDU WKH VSRW ZKHUH WKH     EDJ
ERG\ ZDV GLVFRYHUHG  6SHFLILFDOO\ SHWLWLRQHU LQWURGXFHG
PDSVDQGSKRWRJUDSKVLQRUGHUWRVKRZWKDW+HQVOH\FRXOG             0HPRUDQGXP2SLQLRQ)HEUXDU\DW
QRWKDYHVHHQZKDWKHSXUSRUWHGWRVHH
                                                                       7KHFRXUWWKHQVXPPDUL]HGWKHWHVWLPRQ\RISHWLWLRQHUjV
   $WWULDO+HQVOH\WHVWLILHGWKDWKLVZLIHUHFHLYHGDFDOODW      H[SHUW ZLWQHVVHV  /DUU\ sRKQVRQ WHVWLILHG DV DQ H[SHUW LQ
DERXWSPRQsXO\WKDW0UV0XQFH\ZDVPLVVLQJ+H            FULPHVFHQHLQYHVWLJDWLRQDQGRSLQHGWKDWmWKHSDFNDJLQJRI
GURYHWRWKH0XQFH\WUDLOHUDQGWDONHGWRVRPHRIWKHIDPLO\         PDWHULDOV LQ WKH FDVH GLG QRW PHHW SURIHVVLRQDO VWDQGDUGVl
PHPEHUV+HWKHQmZHQWWRFKHFNRQP\WREDFFRl$IWHU              EHFDXVHLWHPVZHUHQRWZUDSSHGVHSDUDWHO\'1$H[SHUW/LVD
YLVLWLQJKLVILHOGVKHHQGHGXSRQ%HDU+ROORZ5RDGZKLFK          &DODQGUR HOLPLQDWHG SHWLWLRQHU DV WKH GRQRU RI WKH VHPHQ
LVQHDUZKHUHWKH0XQFH\jVOLYH                                    IRXQGRQ0UV0XQFH\jVXQGHUZHDUDQGQLJKWJRZQ
  +H WKHQ KDG DQ HQFRXQWHU ZLWK SHWLWLRQHU ZKLFK KH            +RZDUG%UDJGRQPDQDJHURIODERUDWRU\RSHUDWLRQVIRU'&,
GHVFULEHGLQWKHVHWHUPV                                            /DERUDWRU\LQ1DVKYLOOHWHVWLILHGIRUSHWLWLRQHUDVZHOO7KLV
                                                                     ODERUDWRU\KDGSHUIRUPHGWKHEORRGDQDO\VLVIRUSHWLWLRQHUDW
  >s@XVWEHIRUH,URXQGHGWKHFXUYHRQ5LGJHFUHVWZKDWHYHU          WULDO%UDJGRQQRWHGWKDWKHWRRNSRVVHVVLRQRIWKHEOXHMHDQV
  WKHQDPHRIWKDWURDGLV,VDZ0U+RXVHFRPHRXWIURP            WKHYLFWLPjVFORWKHVDQGILQJHUQDLOVFUDSLQJVDVZHOODVEORRG
  XQGHUDEDQNZLSLQJKLVKDQGVRQDEODFNUDJ$QG,              IURP ERWK WKH YLFWLP DQG SHWLWLRQHU RQ 2FWREHU  
  ZHQWRQGRZQWR/LWWOH+XEHjVGULYHZD\,SXOOHGXSLQ           7KHQH[WGD\DIWHUWUDQVSRUWLQJWKHPWR1DVKYLOOHKHWRRN
  WKHGULYHZD\ZKHUH,FRXOGVHHXSWRZDUG/LWWOH+XEHjV             SLFWXUHVWKDWVKRZHGGULHGEORRGDURXQGWKHXSSHUOHIWFRUQHU
  KRXVHDQG,VHHQ/LWWOH+XEHjVFDUZDVQjWWKHUHDQG,             RIWKHER[LQZKLFKWKHLWHPVKDGEHHQFRQWDLQHG$FFRUGLQJ
  EDFNHGRXW LQWKHURDGDQGFRPHEDFNWRZDUGVWRWKH              WRWKHGLVWULFWFRXUWm0U%UDJGRQDGPLWWHGWKDWLWZDVKLV
  'XPS5RDGWKDWLVZKDW,FDOOLW$QGWKDWLVZKHQ0U           FXVWRPWRLQVSHFWWKHFRQGLWLRQRIVHURORJLFDOHYLGHQFHZKHQ
  +RXVHIODJJHGPHGRZQ                                      KH WRRN SRVVHVVLRQ DQG WKDW WKHUH ZDV QR QRWDWLRQ RQ WKH
                                                                     UHFHLSWRIVSLOODJH0U%UDJGRQDOVRDGPLWWHGWKDWKHKDGQR
                                                                     ZD\ RI NQRZLQJ WKH FRQGLWLRQ RI WKH EORRG VDPSOHV DW WKH
                                                                     WLPH RI WKH )%,jV VHURORJLFDO WHVWLQJl  0HPRUDQGXP
                                                                     2SLQLRQ)HEUXDU\DW
     
    m/LWWOH +XEHl LV WKH QLFNQDPH RI WKH YLFWLPjV KXVEDQG +XEHUW
                                                                       7KHFRXUWFKDUDFWHUL]HG'U%ODNHjVWHVWLPRQ\DVIROORZV
0XQFH\
    +RXVHY%HOO                                  1R      1R                                  +RXVHY%HOO     

GHJUHHRIHQ]\PDWLFGHJUDGDWLRQWKDWWKHEORRGRQWKHEOXH           7KHWZRPHQKDGDVKRUWFRQYHUVDWLRQDERXWWKHIDFWWKDW0UV
MHDQVFDPHIURPNQRZQVDPSOHVVXFKDVWKHEORRGFRQWDLQHG            0XQFH\ZDVPLVVLQJ3HWLWLRQHUZDVGULYLQJKLVJLUOIULHQGjV
LQ WKH YLDOV DQG QRW IURP 0UV 0XQFH\jV ERG\  :KHQ        ZKLWH3O\PRXWK
FRQIURQWHGZLWKWKLVFRQFOXVLRQ$JHQW%LJEHHZDVGRXEWIXO
QRWLQJ WKDW PXFK GHSHQGHG XSRQ KDQGOLQJ DQG LQGLYLGXDO           $IWHUOHDYLQJ+HQVOH\EHFDPHVXVSLFLRXVDQGDORQJZLWK
FLUFXPVWDQFHV                                                      KLV IULHQG sDFNLH $GNLQV  UHWXUQHG WR WKH VSRW ZKHUH KH
                                                                      WKRXJKWSHWLWLRQHUKDGHPHUJHGm,VDLGoULJKWDORQJKHUHLV
  $QH[SHUWRQEORRGVSODWWHUDQDO\VLV3DXOHWWH6XWWRQDOVR         ZKHUH , VDZ WKH ER\ >SHWLWLRQHU@ DQG , JRW RXW DQG ZDV
WHVWLILHGDWWKHHYLGHQWLDU\KHDULQJ6KHQRWHGWKDWVRPHRI         ORRNLQJ RII WKH EDQN DQG KH >$GNLQV@ JRW RXW DQG ZDONHG
WKHEORRGVWDLQVRQWKHMHDQVZHUHPL[HGZLWKPXG<HWWKH           DURXQGWKHFDUDQGKHVDLGoRKP\*RGl
SKRWRJUDSKV RI WKH FULPH VFHQH VKRZHG QR PXG SUHVHQW
)XUWKHUPRUH1DWLRQDO:HDWKHU6HUYLFHUHFRUGVVKRZWKDWLW               2QFURVVH[DPLQDWLRQ+HQVOH\FRQFHGHGWKDWKHFRXOGQRW
KDGQRWUDLQHGIRUWKUHHGD\VSULRUWRWKHPXUGHU)LQDOO\          KDYHVHHQSHWLWLRQHUDFWXDOO\mGRZQLQWKHHPEDQNPHQWl+H
WKHUHZDVQRPXGRQWKHYLFWLPjVQLJKWJRZQ                          ZRXOGKDYHILUVWVHHQKLPDWWKHWRSRIWKHEDQN'HIHQVH
                                                                      FRXQVHO DOVR WULHG WR EULQJ RXW VRPH LQFRQVLVWHQFLHV LQ
  )LQDOO\ SHWLWLRQHU QRWHV WKDW QR EORRG ZDV IRXQG RQ WKH   +HQVOH\jVVWDWHPHQWVFRQFHUQLQJSUHFLVHO\ZKHQDQGZKHUHKH
WHQQLV VKRHV KH ZDV ZHDULQJ RQ WKH QLJKW RI WKH PXUGHU     ILUVWVDZSHWLWLRQHU2QUHGLUHFWWKHSURVHFXWLRQDWWHPSWHG
&KDUOHV%XUNVSHWLWLRQHUjVWULDODWWRUQH\DOVRWHVWLILHGDWWKH     WRKDYH+HQVOH\FODULI\
HYLGHQWLDU\ KHDULQJ  7KH GLVWULFW FRXUW VXPPDUL]HG KLV
WHVWLPRQ\RQWKHLVVXHRIWKHWHQQLVVKRHVDVIROORZV                  4 /HWPHDVN\RXLIWKLVLVDWUXHVWDWHPHQWom,
                                                                           WUDYHOOHG DERXW  IHHW RQ 5LGJHFUHVW 5RDG
    'XULQJWKHHYLGHQWLDU\KHDULQJ0U%XUNVUHYLHZHGD                   ZKHQ,VDZDµRUµZKLWH3O\PRXWKVLWWLQJ
  UHSRUWIURPWKH)RUHQVLF6HUYLFHV'HSDUWPHQWRIWKH7%,                 RQ WKH OHIWKDQG VLGH RI 5LGJHFUHVW 5RDGl LV
  ZKLFKUHIHUUHGWR0U+RXVHjVWHQQLVVKRHVDQGLQGLFDWHG                 WKDWWUXH"
  WKHDEVHQFHRIEORRGRQWKHWHQQLVVKRHV0U%XUNVGLG
  QRW UHFDOO KDYLQJ VHHQ WKDW UHSRUW EHIRUH  7KDW ZRXOG       $ 7KDWjVWUXH
  KDYHEHHQUHOHYDQWWR0U%XUNVEHFDXVHDOWKRXJKWKHUH
  ZDVEORRGRQ0U+RXVHjVMHDQVQHDUWKHFXIIWKHUHZDV               4 ,VWKDWZKHUH\RXVDZWKHFDU"
  QREORRGRQWKHVKRHVKHZDVZHDULQJDWWKHWLPHRIWKH
  RIIHQVH7KHVKRHVZHUHIRXQGLQWKHJHQHUDODUHDRI0V             $ <HVVLU
  7XUQHUjVWUDLOHUORQJDIWHUWKHPXUGHU
                                                                        4 ,VWKLVWUXH"m,VDZDPDQODWHULGHQWLILHGWRPH
0HPRUDQGXP2SLQLRQ)HEUXDU\DW                               DV3DXO*+RXVHHQWHUWKHURDGZD\IURPWKH
                                                                           ULJKWKDQGVLGHRIWKHURDGl"
   7KHFRXUWUHFRXQWHGWKHGLVFRYHU\RIWKHEOXHMHDQVLQWKHVH
WHUPV                                                                  $ +HZDVZDONLQJWRZDUGWKHURDG\HV

     7%, $JHQW &KDUOHV 6FRWW WHVWLILHG WKDW KH EHFDPH            4 $OO ULJKW  m$QG KH ZDV FRPLQJ XS RYHU WKH
  LQYROYHGLQWKHLQYHVWLJDWLRQRI0UV0XQFH\jVPXUGHU                   EDQNDQGKHKDGDEODFNUDJLQKLVKDQGDQGKH
  DWWKHUHTXHVWRIDQRWKHUDJHQWRQWKHVHFRQGGD\RIWKH                ZDVZLSLQJKLVKDQGVlLVWKDWWUXH"
  LQYHVWLJDWLRQ+HWRRNDVWDWHPHQWIURP0U+RXVHDQG
    +RXVHY%HOO                                 1R       1R                                    +RXVHY%HOO      

  $ 7KDWjVWUXH                                                       $W WULDO )%, $JHQW 3DXO %LJEHH WHVWLILHG WKDW WKH EORRG
                                                                      VDPSOHVWDNHQIURPWKHYLFWLPZHUHGHJUDGHG1RQHWKHOHVV
                                                               WKHEORRGIRXQGRQWKHMHDQVZDVFRQVLVWHQWZLWKWKDWRIWKH
                                                                      YLFWLPDQGQRWZLWKWKDWRISHWLWLRQHU
  4 7KHHVWLPDWLRQ>RIWKHGLVWDQFHRQWKHURDG@WKDW
     \RX KDYH JLYHQ WKDW \RX ZHUH SUHVVHG IRU LV              $WWKHHYLGHQWLDU\KHDULQJSHWLWLRQHUPRXQWHGDFRQFHUWHG
     WKDW DQ DFFXUDWH PHDVXUHPHQW RU LV WKDW DQ                FKDOOHQJHWRWKLVHYLGHQFH
     HVWLPDWHRQ\RXUSDUW"
                                                                        )RXUYLDOVRIEORRGZHUHWDNHQIURPWKHYLFWLPGXULQJWKH
  $ 7KDWLVMXVWDQHVWLPDWH                                        DXWRSV\7KHVHZHUHSODFHGLQDVW\URIRDPFRQWDLQHUZKLFK
                                                                      ZDVVHQWIURPWKH7HQQHVVHH%XUHDXRI,QYHVWLJDWLRQ7%,WR
   7KHH[KLELWVLQWURGXFHGE\SHWLWLRQHUGXULQJWKHHYLGHQWLDU\       WKH)%,7KHSHWLWLRQHUUHIHUUHGWRWZRGHPRQVWUDWLYHH[KLELWV
KHDULQJZHUHGHVLJQHGWRVKRZWKDW+HQVOH\FRXOGQRWKDYH             LQWKHGLVWULFWFRXUWSKRWRJUDSKVRIWKHVW\URIRDPFRQWDLQHU
VHHQSHWLWLRQHUFRPLQJXSWKHHPEDQNPHQW+RZHYHUHYHQ              YLHZHGIURPDERYHDQGIURPWKHVLGH,WZDVVHDOHGE\WKH
LIZHDFFHSWSHWLWLRQHUjVFRQWHQWLRQWKDW+HQVOH\FRXOGQRW           7%,LQERWKGLUHFWLRQVIRUVKLSSLQJ7KHSKRWRJUDSKRIWKH
KDYHVHHQKLPXQWLOKHHPHUJHGRQWRWKHURDGLWLVXQGLVSXWHG        VLGHYLHZVKRZVWKDWRQHRIWKHVHDOVZDVEURNHQDQGWKHQ
WKDWSHWLWLRQHUZDVVHHQLQWKHJHQHUDOYLFLQLW\RIWKHERG\          UHVHDOHGE\DVHFRQGOD\HURIWDSH)%,$JHQW%LJEHHSODFHG
FDUU\LQJ D EODFN UDJ  0RUHRYHU WULDO FRXQVHO HIIHFWLYHO\    KLVODEQXPEHURQWKHVHFRQGOD\HU7KHILUVWOD\HURIWDSHLV
FURVVH[DPLQHG+HQVOH\UHJDUGLQJKLVLQFRQVLVWHQWVWDWHPHQWV          LQFRPSOHWH LW RQO\ FRYHUV WKH OLG RI WKH FRQWDLQHU  $JHQW
DERXWZKHQDQGZKHUHKHVDZSHWLWLRQHU7KXVLQRXUYLHZ           %LJEHHFRQFHGHGWKDWLWZDVSRVVLEOHWKDWWKHILUVWVHDOKDG
SHWLWLRQHUjVDWWDFNRQ+HQOH\jVWHVWLPRQ\DGYDQFHVKLVFDXVH          EHHQFXWEHIRUHWKHVHFRQGVHDOKDGEHHQSODFHGRYHULW7R
OLWWOHLIDWDOO                                                    VXSSRUWWKHWKHRU\WKDWWKHFRQWDLQHUZDVRSHQHGEHWZHHQWKH
                                                                      WLPHLWOHIWWKH7%,DQGDUULYHGDWWKH)%,SHWLWLRQHUSRLQWVWR
   ,QDGGLWLRQWRSUHVHQWLQJKLVRZQYHUVLRQRIHYHQWVZKLOH          WKHIDFWWKDWWKHODEHORQWKHFRQWDLQHULQGLFDWHGWKDWLWKHOG
DWWHPSWLQJ WR FDVW GRXEW RQ WKH DFFXUDF\ RI +HQVOH\jV         ERWK EORRG DQG YDJLQDO VHFUHWLRQV  <HW $JHQW %LJEHH
WHVWLPRQ\SHWLWLRQHUWDNHVDLPDWWKHSK\VLFDOHYLGHQFHWKDW         UHFHLYHGWKHVHFUHWLRQVLQDPDQLOODHQYHORSH
OLQNHGKLPWRWKHFULPH
                                                                        $VPHQWLRQHGDERYHIRXUYLDOVRIEORRGZHUHVHQWWRWKH
   'U$OH[&DUDELDSHUIRUPHGWKHDXWRSV\+HWHVWLILHGDW           )%,$FFRUGLQJWR$JHQW%LJEHHKHZRXOGKDYHXVHGRQH
WULDOWKDWGHDWKZDVFDXVHGE\DEORZWRWKHOHIWVLGHRIKHU         IRXUWKRIDYLDOLQWHVWLQJ3HWLWLRQHUjVWULDOVHURORJ\H[SHUW
KHDG7KHYLFWLPGLHGDERXWDQKRXUDQGDKDOIDIWHUVKHZDV         +RZDUG%UDJGRQWRRNDSKRWRJUDSKZKHQKHUHFHLYHGWKH
KLW                                                                  VW\URIRDPFRQWDLQHUIURPWKH)%,,QSHWLWLRQHUjVYLHZWKH
                                                                      SKRWRJUDSKVKRZVRQHRIWKHWXEHVZDVRQO\RQHKDOIIXOODQG
  $W WULDO SKRWRJUDSKV RI WKH EUXLVHV RQ SHWLWLRQHUjV ERG\   DQRWKHU QHDUO\ HPSW\  )XUWKHUPRUH $JHQW %LJEHHjV
ZHUHHQWHUHGLQWRHYLGHQFHDQGWKUHHZLWQHVVHVWHVWLILHGDERXW        WHVWLPRQ\ WR WKH FRQWUDU\ LW DSSHDUV WKDW VRPH EORRG KDG
KLVSK\VLFDOFRQGLWLRQ3ULRUWRKLVDUUHVWSHWLWLRQHUSURYLGHG     VSLOOHG
YDULRXVDFFRXQWVRIWKHLURULJLQWKHP\VWHULRXVILJKWRQWKH
QLJKWRIWKHPXUGHUWHDULQJGRZQDVKHGDIHZGD\VHDUOLHU            ,Q WKH GLVWULFW FRXUW 'U &OHODQG %ODNH $VVLVWDQW &KLHI
'XULQJFORVLQJDUJXPHQWWKHSURVHFXWLRQHPSKDVL]HGWKHVH             0HGLFDO([DPLQHUIRUWKH6WDWHH[DPLQHGWKHUHVXOWVRIWKH
LQFRQVLVWHQWVWDWHPHQWV                                            )%,WHVWVRIWKHEORRGIRXQGRQWKHEOXHMHDQVDQGDOVRWKH
                                                                      EORRGWDNHQIURP0UV0XQFH\+HWKHRUL]HGEDVHGXSRQWKH