Court Opinion

ID: 2969639
Source: CourtListenerOpinion
Date Created: 2015-09-22 15:53:45.942044+00
Date Added: 2024-06-11T11:40:11.331841
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

67(9(1 9$1&(0LQRUE\           ;
DQGWKURXJKKLVPRWKHU            
'HERUDK9DQFH$/0$                
                                     1R
0&*2:(10LQRUE\DQG            
WKURXJKKHUPRWKHU%DUEDUD         !
                                   
(UIXUWK                           
           3ODLQWLIIV$SSHOOHHV 
                                   
            Y                     
                                   
                                   
63(1&(5 &2817< 38%/,&              
6&+22/ ',675,&763(1&(5           
&2817< %2$5' 2)                    
('8&$7,21                         
        'HIHQGDQWV$SSHOODQWV 
                                   
                                  1
       $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
    IRUWKH:HVWHUQ'LVWULFWRI.HQWXFN\DW/RXLVYLOOH
   1RVn7KRPDV%5XVVHOO'LVWULFWsXGJH
                $UJXHGsXQH
         'HFLGHGDQG)LOHG1RYHPEHU
%HIRUH.(,7+'$8*+75(<DQG*,/0$1&LUFXLW
                    sXGJHV

                            
       9DQFHHWDOY6SHQFHU                         1R
        &RXQW\3XEOLF6FKRROHWDO

                        BBBBBBBBBBBBBBBBB
                              &2816(/
$5*8('  5REHUW / &KHQRZHWK &+(12:(7+ /$:
2)),&( )UDQNIRUW .HQWXFN\ IRU $SSHOODQWV  2OLYHU +
%DUEHUsU%$5%(5%$1$6=<16.,	$662&,$7(6
/RXLVYLOOH.HQWXFN\IRU$SSHOOHHV21%5,()5REHUW/
&KHQRZHWK 3DWULFLD 7RGG %DXVFK &+(12:(7+ /$:
2)),&( )UDQNIRUW .HQWXFN\ IRU $SSHOODQWV  sHIIHU\ 6
0LOOHU %$5%(5 %$1$6=<16., 	 $662&,$7(6
/RXLVYLOOH.HQWXFN\IRU$SSHOOHHV
  .(,7+ s GHOLYHUHG WKH RSLQLRQ RI WKH FRXUW LQ ZKLFK
'$8*+75(< s MRLQHG  *,/0$1 s SS 
GHOLYHUHGDVHSDUDWHFRQFXUULQJRSLQLRQ
                        BBBBBBBBBBBBBBBBB
                            23,1,21
                        BBBBBBBBBBBBBBBBB
  .(,7+ &LUFXLW sXGJH  7KLV DSSHDO SUHVHQWV TXHVWLRQV
FRQFHUQLQJWKHQDWXUHDQGH[WHQWRIFLUFXPVWDQWLDOHYLGHQFH
QHHGHG WR SHUPLW D UHDVRQDEOH LQIHUHQFH RI JHQGHU
GLVFULPLQDWLRQE\VFKRRORIILFLDOVLQWKHVWXGHQWRQVWXGHQW
VH[XDO KDUDVVPHQW FRQWH[W   7KH 6SHQFHU &RXQW\ 6FKRRO
'LVWULFWm6SHQFHUlDSSHDOVIURPWKHGLVWULFWFRXUWjVGHQLDO
RILWVSRVWWULDOPRWLRQIRUMXGJPHQWDVDPDWWHURIODZ$
MXU\ IRXQG WKDW 6SHQFHU YLRODWHG ERWK 7LWOH ,; RI WKH
(GXFDWLRQ$PHQGPHQWVRI86&

    
      7KH GLVWULFW FRXUW EHORZ JUDQWHG D GLUHFWHG YHUGLFW DV WR QDPHG
3ODLQWLII 6WHYHQ 9DQFHjV FODLPV 0U 9DQFH KDV QRW DSSHDOHG KLV FODLPV
DQG LV QRW D SDUW\ WR WKLV DSSHDO

    
      7KH 6SHQFHU &RXQW\ 3XEOLF 6FKRRO 'LVWULFW LV QRW D OHJDO HQWLW\ %\
FRQVHQW WKH UHDO 'HIHQGDQW$SSHOODQW LQ WKLV DFWLRQ ZDV GHHPHG WR EH
%RDUG RI (GXFDWLRQ RI 6SHQFHU &RXQW\
1R                     9DQFHHWDOY6SHQFHU         
                             &RXQW\3XEOLF6FKRROHWDO

DQG  86&  G E\ GLVFULPLQDWLQJ DJDLQVW 3ODLQWLII
$OPD 0F*RZHQ D VWXGHQW DW RQH RI LWV VFKRROV  )RU WKH
UHDVRQVWKDWIROORZWKLV&RXUW$)),506
                                ,
   ,Q1RYHPEHU$OPD0F*RZHQHQUROOHGLQ6SHQFHUDV
D VL[WK JUDGHU  2Q WKH VHFRQG GD\ RI VFKRRO VRPH ILUVW
JUDGHUV\HOOHGWRKHUm2KWKHUHjVWKDW*HUPDQJD\JLUOWKDW
QHZ JLUO WKDW MXVW PRYHG KHUHl  $OPD FRPSODLQHG WR WKH
6SHQFHU 6FKRRO &RXQVHORU .DWK\ :KLWHKHDG  :KLWHKHDG
VSRNHWRWKHFKLOGUHQ$OPDLGHQWLILHGDQGJDYHSUHVHQWDWLRQV
RQDFFHSWLQJSHRSOH
  'XULQJ$OPDjVVL[WKJUDGH\HDUZKLOHULGLQJWKHEXVDKLJK
VFKRRO VWXGHQW DVNHG $OPD WR GHVFULEH RUDO VH[  $OPD
UHSRUWHG WKH LQFLGHQW WR ERWK KHU PRWKHU DQG :KLWHKHDG
:KLWHKHDG FRQWDFWHG WKH KLJK VFKRRO SULQFLSDO 0XUUHO
/DZVRQ/DZVRQH[SHOOHGWKHVWXGHQWIURPWKHEXVIRUDIHZ
GD\V:KHQWKHVWXGHQWUHWXUQHGKHFRQWLQXHGWRFXUVHDW
$OPDDQGZDVHYHQPRUHYXOJDUWKDQEHIRUH
  'XULQJ WKH  VFKRRO \HDU $OPD DWWHQGHG WKH
6SHQFHU&RXQW\+LJK6FKRROm6SHQFHU+LJKl:KLOHWKHUH
DQRWKHU VWXGHQW ZKR ZDV WKH VFKRRO SULQFLSDOjV QHSKHZ
FRQIURQWHG $OPD LQ WKH SUHVHQFH RI RWKHU VWXGHQWV DQG
GHPDQGHG WR NQRZ LI VKH ZDV JD\  :KHQ $OPD VSRNH WR
'DYLG6KHOEXUQHWKHDVVLVWDQWSULQFLSDODWWKHKLJKVFKRROKH
VDLGWKDWWKHER\VFRQVLGHUHGKHUFXWHDQGWKH\ZHUHIOLUWLQJ
ZLWKKHUVRVKHVKRXOGMXVWmEHIULHQGO\l
  'XULQJKHUVHYHQWKJUDGH\HDUVWXGHQWVUHJXODUO\VKRYHG
$OPD LQWR ZDOOV JUDEEHG KHU ERRN EDJ DQG VWROH DQG
GHVWUR\HGKHUKRPHZRUN$OPDUHSRUWHGWKHVHLQFLGHQWVWR
3K\OOLVsHQNLQVWKHDFDGHPLFFRXQVHORUZKRUHIHUUHGKHUWR
)DWKHU5\DQWKH\RXWKDGYRFDWH,QUHVSRQVH)DWKHU5\DQ
WROGKHUKHZRXOGVHHZKDWKHFRXOGGR
  ,QWKHIDOORIWKHVFKRRO\HDUDPDOHVWXGHQWLQ
KHU J\P FODVV FDOOHG $OPD DQG RWKHU IHPDOH VWXGHQWV
     9DQFHHWDOY6SHQFHU                        1R       1R                      9DQFHHWDOY6SHQFHU          
      &RXQW\3XEOLF6FKRROHWDO                                                                    &RXQW\3XEOLF6FKRROHWDO

mZKRUHVlDQGmPRWKHUIXFNHUVlKLWWKHPVQDSSHGWKHLUEUDV             86DW7KHRQO\GLIIHUHQFHEHWZHHQWKHODQJXDJHLQ
DQGJUDEEHGWKHLUEXWWV+HDOVRZHQWLQWR$OPDjVEDJDQG              'DYLVDQGWKHMXU\LQVWUXFWLRQVDWLVVXHZDVLQWKHGHILQLWLRQ
EHJDQWRWDNHWKLQJVIURPLW:KHQ$OPDWULHGWRJHWKHUSHQ           RIWKHWHUPmGHOLEHUDWHLQGLIIHUHQFHl
EDFNIURPKLPWKHER\VWDEEHGKHULQWKHKDQGZLWKWKHSHQ
$OPDUHSRUWHGWKHLQFLGHQWWRKHUJ\PWHDFKHUZKRVHQWKHU                'HOLEHUDWH LQGLIIHUHQFH ZDV HVVHQWLDOO\ GHILQHG E\ WKH
WRWKHSULQFLSDOjVRIILFH7KHRIILFHVHFUHWDU\WUHDWHG$OPDjV         GLVWULFWFRXUWDVDQDZDUHQHVVRQWKHSDUWRIWKH%RDUGWKDWLWV
LQMXU\7KHSULQFLSDOZDVLQIRUPHGEXWGLGQRWJHWLQYROYHG           DFWLRQRULQDFWLRQEDVHGRQLWVNQRZOHGJHRIWKHKDUDVVPHQW
DWWKDWWLPH$IHZGD\VODWHUWKHVWXGHQWWROG$OPDWKDWKH          ZRXOGZLWKVXEVWDQWLDOFHUWDLQW\VXEMHFWWKHVWXGHQWWRPRUH
KDGEHHQWDONHGWREXWWKDWKHGLGQRWJHWLQWRDQ\WURXEOH            KDUP7KXVWKHLQVWUXFWLRQVFRUUHFWO\FRQFHQWUDWHGRQWKH
EHFDXVHKHZDVDVFKRROERDUGPHPEHUjVVRQ                             DFWLRQV RI 6SHQFHU DQG QRW RQ WKH DFWLRQV RI WKH KDUDVVLQJ
                                                                        VWXGHQW,QGHHGWKHVHLQVWUXFWLRQVZRXOGKDYHSHUPLWWHGD
  'XULQJ WKH 6SULQJ VHPHVWHU RI KHU VHYHQWK JUDGH \HDU         ILQGLQJRIQROLDELOLW\HYHQLIWKHKDUDVVPHQWKDGFRQWLQXHG
$OPDjV PRWKHU ZURWH WZR OHWWHUV FRQFHUQLQJ KHU GDXJKWHU         VRORQJDV6SHQFHUGLGQRWDFWZLWKGHOLEHUDWHLQGLIIHUHQFH
7KH ILUVW OHWWHU FRQFHUQHG DQ LQFLGHQW LQ KHU VFLHQFH FODVV   7KLVLVQRWVXEVWDQWLDOO\GLIIHUHQWIURPWKH'DYLVIRUPXODWLRQ
6RPH VWXGHQWV DSSURDFKHG $OPD GXULQJ D EDWKURRP EUHDN            WKDW D ILQGLQJ RI GHOLEHUDWH LQGLIIHUHQFH LV MXVWLILHG mRQO\
ZKLOHWKHWHDFKHUZDVQRWLQWKHURRP6HYHUDORIWKHVWXGHQWV         ZKHUH WKH UHFLSLHQWjV UHVSRQVH WR WKH KDUDVVPHQW RU ODFN
FDOOHG$OPDFUXGHQDPHVDQGEDFNHGKHUXSDJDLQVWDZDOO               WKHUHRI LV FOHDUO\ XQUHDVRQDEOH LQ OLJKW RI WKH NQRZQ
7ZRER\VKHOGKHUKDQGVZKLOHRWKHUVWXGHQWVJUDEEHGKHU               FLUFXPVWDQFHVl'DYLV86DW
KDLUDQGVWDUWHG\DQNLQJRIIKHUVKLUW:KHQDER\VWDWHGKH
ZDVJRLQJWRKDYHVH[ZLWKKHUDQGEHJDQWRWDNHKLVSDQWV                 7KHGLVWULFWFRXUWjVVXPPDWLRQRIWKHVWDQGDUGRIOLDELOLW\
RIIDQRWKHUER\LQWHUYHQHGDQGDVVLVWHG$OPD$OPDGLGQRW            WKHUHIRUHZDVDWOHDVWVXEVWDQWLDOO\DFFXUDWH6HH&ODUNVYLOOH
UHSRUWWKHLQFLGHQWWRKHUWHDFKHU$OPDZHQWKRPHDQGWROG            0RQWJRPHU\&RXQW\6FK6\VY8QLWHG6WDWHV*\SVXP&R
KHUPRWKHUDERXWWKHLQFLGHQW$OPDjVPRWKHUZURWHDOHWWHU            )GWK&LUm$MXU\LQVWUXFWLRQZKLFK
WR WKH SULQFLSDO ZKLFK $OPD KDQGGHOLYHUHG WR WKH IURQW        VWDWHVWKHODZZLWKVXEVWDQWLDODFFXUDF\DQGIDLUO\VXEPLWVWKH
RIILFHWKHIROORZLQJGD\                                               LVVXHV WR WKH MXU\ ZLOO QRW SURYLGH JURXQGV IRU UHYHUVDOl
                                                                        %HFDXVHWKHLQVWUXFWLRQVVKRZHGmQRWHQGHQF\WRFRQIXVHRU
   ,QUHVSRQVHWRWKHOHWWHUWKHFODVVURRPWHDFKHUVSRNHZLWK          PLVOHDGWKHMXU\ZLWKUHVSHFWWRWKHDSSOLFDEOHSULQFLSOHVRI
$OPD DQG ILYH RI WKH ER\V LQYROYHG LQ WKH LQFLGHQW  :LWK    ODZl LG , FRQFOXGH WKDW DQ\ HUURU LQ WKH GLVWULFW FRXUWjV
$OPDVHDWHGEHWZHHQWZRRIWKHER\VWKHWHDFKHUWROG$OPD              GHILQLWLRQ RI GHOLEHUDWH LQGLIIHUHQFH ZDV KDUPOHVV  , WKXV
WRWHOOWKHER\VZKDWVKHWKRXJKWWKH\KDGGRQH$OPDGLGQRW          FRQFXULQWKHRSLQLRQRIP\FROOHDJXHV
NQRZLIDQ\WKLQJZDVGRQHWRSXQLVKWKHER\V
  'XULQJWKHIDOORI$OPDjVHLJKWKJUDGH\HDUD
IHPDOH VSHFLDO HGXFDWLRQ VWXGHQW VWUXFN $OPD  3ULQFLSDO
/DZVRQ VSRNH WR WKH JLUO  'XULQJ WKDW VDPH SHULRG $OPD
VSRNH ZLWK .LUE\ 6PLWK WKH \RXWK DGYRFDWH ZKR UHSODFHG
)DWKHU5\DQDERXWRWKHUVWXGHQWVKDUDVVLQJKHU6PLWKDVNHG
$OPD IRU D OLVW RI WKH VWXGHQWV LQ RUGHU WR DGGUHVV WKH
    9DQFHHWDOY6SHQFHU                          1R        1R                    9DQFHHWDOY6SHQFHU        
      &RXQW\3XEOLF6FKRROHWDO                                                                     &RXQW\3XEOLF6FKRROHWDO

                       BBBBBBBBBBBBBBBBB                                   VLWXDWLRQ6PLWKVSRNHZLWKWKHER\VZKRZHUHRQWKHOLVWWKDW
                                                                           $OPDJDYHKLP
                        &21&855(1&(
                       BBBBBBBBBBBBBBBBB                                     /DWHURQHRIWKHER\VWROG$OPDLQIURQWRIDFODVVWKDWKH
                                                                           WROG6PLWKWKDWKHKDGDFUXVKRQKHUDQGWKDWKHFRXOGWRXFK
  521$/' /(( *,/0$1 &LUFXLW sXGJH FRQFXUULQJ  ,                  $OPD LQ DQ\ ZD\ KH ZDQWHG DQG QR RQH ZDV JRLQJ WR GR
FRQFXU LQ WKH UHVXOW UHDFKHG E\ WKH FRXUW DV ZHOO DV LQ LWV   DQ\WKLQJDERXWLW$IWHUZDUGWKHER\GLGLQGHHGWRXFK$OPD
FRQFOXVLRQVUHJDUGLQJWKHKDUDVVPHQWRI$OPD0F*RZHQDQG                   RQKHUFKHVWDQGEXWW+HDOVRUHTXHVWHGVH[XDOIDYRUVVHYHUDO
WKHNQRZOHGJHRIWKH6SHQFHU&RXQW\3XEOLF6FKRRO'LVWULFW                WLPHVZKLOHWKHWHDFKHUZDVLQWKHURRP$OPDWHVWLILHGWKDW
1HYHUWKHOHVV,ZULWHVHSDUDWHO\EHFDXVHWKHFRXUWGRHVQRW                QRWKLQJZDVGRQHDERXWWKHVHLQFLGHQWV
GLUHFWO\ DGGUHVV ZKDW , SHUFHLYH WR EH 6SHQFHUjV PDLQ
FRPSODLQWZLWKUHVSHFWWRWKHMXU\LQVWUXFWLRQV                             ,Q'HFHPEHU$OPDVSRNHZLWK$VVLVWDQW3ULQFLSDO
                                                                           6KHOEXUQHDQGLQGLFDWHGWKDWWKHER\ZKRZDVDSDUWRIWKH
  $FFRUGLQJWR6SHQFHUWKHMXU\LQVWUXFWLRQVUHJDUGLQJWKH                SUREOHPLQKHUVFLHQFHFODVVZDVVWLOOKDUDVVLQJKHU$IHZ
%RDUGjVOLDELOLW\XQGHU7LWOH,;GLGQRWFRQIRUPWRWKHODZDV             GD\V ODWHU WKH ER\ WROG $OPD WKDW DOWKRXJK KH KDG EHHQ
VHWIRUWKLQ'DYLVY0RQURH&RXQW\%G2I(GXF86                 VSRNHQWRKHGLGQRWmJLYHDGDPQDERXWLWDQGKHZRXOGGR
6SHQFHUDUJXHVWKDWWKHMXU\ZDVOHGWREHOLHYH               ZKDWHYHUKHZDQWHGWRl
WKDWWKH%RDUGLVVWULFWO\OLDEOHIRUVWXGHQWRQVWXGHQWVH[XDO
KDUDVVPHQWUHJDUGOHVVRI6SHQFHUjVUHPHGLDODFWLRQVLIWKH                 $OPDWHVWLILHGWKDWWKHKDUDVVPHQWLQFUHDVHGWRWKHSRLQW
KDUDVVPHQWGLGQRWLQIDFWVWRS,GLVDJUHH                               WKDW VKH ZDV SURSRVLWLRQHG RU WRXFKHG LQDSSURSULDWHO\ LQ
                                                                           YLUWXDOO\HYHU\FODVV$OPDDOVRWHVWLILHGWKDWWKHPRUHVKH
   7REHIDLUWRWKHGLVWULFWFRXUWWKHVWDQGDUGRIOLDELOLW\IRU         FRPSODLQHGWRWKHSULQFLSDOVHYHQWKRXJKWKH\VSRNHWRWKH
VWXGHQWRQVWXGHQWVH[XDOKDUDVVPHQWZDVQRWDUWLFXODWHGE\                VWXGHQWVWKHKDUDVVPHQWVHHPHGWRLQFUHDVHDQGVKHLQGLFDWHG
WKH6XSUHPH&RXUWLQ'DYLVXQWLODIWHUMXGJPHQWKDG EHHQ                  VKHJUHZOHHU\RIWDONLQJWRDQ\RQH
HQWHUHGLQWKHLQVWDQWFDVH1HYHUWKHOHVVWKHGLVWULFWFRXUWjV
MXU\ LQVWUXFWLRQV DQWLFLSDWHG 'DYLV E\ DGRSWLQJ WKH SURSHU             ,Q0D\SXUVXDQWWRWKH6SHQFHU+DUDVVPHQW3ROLF\
VWDQGDUG IRU OLDELOLW\ DV GHVFULEHG LQ *HEVHU Y /DJR 9LVWD       $OPDILOHGDFRPSODLQWDOOHJLQJYLRODWLRQVRI7LWOH,;7KH
,QGHSHQGHQW 6FKRRO 'LVW  86                  FRPSODLQW OLVWHG GHWDLOHG LQVWDQFHV RI VH[XDOO\ KDUDVVLQJ
UHTXLULQJWKDWDVWXGHQWZKRLVVH[XDOO\KDUDVVHGE\DWHDFKHU            FRQGXFW  6SHQFHU WRRN QR DFWLRQ WR DGGUHVV WKH VSHFLILF
SURYHERWKDFWXDOQRWLFHWRDQGGHOLEHUDWHLQGLIIHUHQFHE\D               KDUDVVPHQWDOOHJDWLRQVEHIRUHVFKRROVWDUWHGLQ$XJXVW
VFKRROGLVWULFWIRUVXFKDQHQWLW\WREHKHOGOLDEOHIRUGDPDJHV           ,QVWHDGWKH7LWOH,;&RRUGLQDWRUDOORZHG$OPDWRFRPSOHWH
XQGHU7LWOH,;                                                          WKHUHPDLQLQJIHZZHHNVDWKRPH$OPDjVFRPSODLQWZDVQRW
                                                                           SUHVHQWHGWRWKH6SHQFHUjVQHZ6XSHULQWHQGHQWZKREHJDQLQ
  7KHLQVWUXFWLRQVUHTXLUHGDILQGLQJWKDW0F*RZDQZDV                 sXO\$GGLWLRQDOO\6SHQFHUWRRNWKHSRVLWLRQWKDWLWGLG
EHLQJVXEMHFWHGWRDKRVWLOHVH[XDOHQYLURQPHQWWLPHO\                QRWKDYHHQRXJKLQIRUPDWLRQWRLQYHVWLJDWH$OPDjVVSHFLILF
QRWLILFDWLRQ ZDV JLYHQ WR D 6SHQFHU RIILFLDO RI WKLV KRVWLOH      DOOHJDWLRQV
HQYLURQPHQW DQG  6SHQFHU H[KLELWHG GHOLEHUDWH
LQGLIIHUHQFHWRZDUGUHPHG\LQJWKHKRVWLOHVH[XDOHQYLURQPHQW                 $WWKHEHJLQQLQJRIWKHVFKRRO\HDU6SHQFHU
GHVSLWH LWV DFWXDO NQRZOHGJH  7KHVH DUH LQ IDFW WKH SURSHU      GLVFXVVHGLWVQHZVH[XDOKDUDVVPHQWSROLF\DWWKHKLJKVFKRRO
HOHPHQWVWRHVWDEOLVKOLDELOLW\DFFRUGLQJWR'DYLV6HH'DYLV            )URP $XJXVW  WKURXJK $XJXVW   $OPD DWWHQGHG
     9DQFHHWDOY6SHQFHU                     1R      1R                     9DQFHHWDOY6SHQFHU        
      &RXQW\3XEOLF6FKRROHWDO                                                               &RXQW\3XEOLF6FKRROHWDO

VFKRRO6KHWHVWLILHGWKDWJURXSVRIVWXGHQWVFRQWLQXHGWRDVN     KDUDVVPHQWEDVHGXSRQVH[$OWKRXJKWKH6XSUHPH&RXUWGLG
IRU VH[XDO IDYRUV WRXFK KHU LQ ZD\V WKDW PDGH KHU         QRWKROGWKDWWKHKDUDVVPHQWKDGWRKDYHEHHQRIDmVH[XDO
XQFRPIRUWDEOHDQGKLWKHUZLWKERRNV'XULQJWKLVVDPHWLPH       QDWXUHl WKH mVH[XDO QDWXUHl UHTXLUHPHQW GLG QRW SUHMXGLFH
SHULRG $OPD DWWHQGHG VFKRRO VH[XDO KDUDVVPHQW                 'HIHQGDQW
SUHVHQWDWLRQV6SHQFHUDOVRSURYLGHGVH[XDOKDUDVVPHQWDQG
GLVFULPLQDWLRQWUDLQLQJWRDOOLWVHPSOR\HHV                         6HFRQGWKHMXU\KHDUGWKHIROORZLQJHYLGHQFHLQWKHIDOO
                                                                    RImLQYLUWXDOO\HYHU\FODVV>$OPD@ZDVDVNHGIRUDEORZ
  $OPDZDVGLDJQRVHGZLWKGHSUHVVLRQ2QKHUODVWGD\DW           MREDVNHGIRUVH[XDOIDYRUVZDVWRXFKHGLQXQFRPIRUWDEOH
WKHKLJKVFKRRODER\WROGKHUKHZDVSDUWRIWKH...DV          ZD\Vl $OPD ZDV UHSHDWHGO\ KLW ZLWK ERRNV E\ JURXSV RI
ZHUHKLVIDPLO\PHPEHUVDQGWKH\ZHUHJRLQJWRJRWRKHU           VWXGHQWV KHU PRWKHU FDPH WR VFKRRO WR JHW KHU RQ WKUHH
KRPHDQGEXUQLWGRZQEHFDXVHDOO*HUPDQVVKRXOGEHEXUQHG          GLIIHUHQWRFFDVLRQVZKHUHVKHKDGDKLJKIHYHUEHFDXVHVKH
DQGVHQWWRKHOO                                                   FRXOGQRWWROHUDWHWKHDEXVHDQ\ORQJHUDQGWKDW$OPDZDV
                                                                    GLDJQRVHGZLWKGHSUHVVLRQDQGZLWKGUHZIURPVFKRRO7KXV
  2Q$XJXVW$OPDZLWKGUHZ,QWKHIDOORI          WKH MXU\ HQWHUWDLQHG HYLGHQFH HYLQFLQJ D EDU WR $OPDjV
WKH 6SHQFHU %RDUG RI (GXFDWLRQ WKH m%RDUGl UHFHLYHG        HGXFDWLRQ
$OPDjVFRPSODLQWV7KH%RDUGLQYLWHGKHUDQGKHUPRWKHUWR
PHHWZLWKWKHP8SRQDGYLFHRIFRXQVHOQHLWKHU$OPDQRU             )LQDOO\ERWK$OPDDQGKHUPRWKHUKDGDOHUWHG6SHQFHURQ
KHUPRWKHUPHWZLWKWKH%RDUG                                      QXPHURXVRFFDVLRQVFRQFHUQLQJKLJKO\LQDSSURSULDWHFRQGXFW
                                                                    LQFOXGLQJSK\VLFDODVVDXOW+RZHYHUWKHMXU\KHDUGWHVWLPRQ\
  2QsXO\$OPDE\DQGWKURXJKKHUPRWKHUILOHG           WKDWLQUHVSRQVHWRWKHVH LQFLGHQWV6SHQFHUmVSRNHlWRWKH
KHU FRPSODLQW  6KH DOOHJHG WKDW 6SHQFHU DV D IXQGLQJ     RIIHQGHUV  2Q DW OHDVW WKUHH VHSDUDWH RFFDVLRQV LQYROYLQJ
UHFLSLHQW KDG VXEMHFWHG KHU WR LQWHQWLRQDO VH[XDO            DVVDXOWLYHEHKDYLRU6SHQFHUjVUHVSRQVHDOWKRXJKLQHIIHFWLYH
GLVFULPLQDWLRQDVDUHVXOWRISHHUFRQGXFWLQYLRODWLRQRI7LWOH    UHPDLQHGH[DFWO\WKHVDPH7KXVWKHMXU\KHDUGHYLGHQFH
,;RIWKH(GXFDWLRQ$PHQGPHQWVRI6WDWDV            FRQILUPLQJ 6SHQFHUjV ZLOOLQJQHVV WR UHSHDW LQHIIHFWLYH
DPHQGHG86&HWVHTDQGWKH.HQWXFN\&LYLO           PHDVXUHVWLPHDQGWLPHDJDLQ+DYLQJKHDUGWKLVHYLGHQFH
5LJKW $FW  $OPD DOVR DOOHJHG WKDW 6SHQFHU GLVFULPLQDWHG    WKH MXU\ FRXOG KDYH UHDVRQDEOH DVVXPHG WKDW 6SHQFHU
DJDLQVWKHURQWKHEDVLVRIKHUQDWLRQDORULJLQE\IDLOLQJWR      XQGHUVWRRGWKDWRQHLQHIIHFWLYHUHVSRQVHFRXOGOHDGWRDWOHDVW
WDNHDSSURSULDWHDFWLRQIRUWKHDOOHJHGKRVWLOHHQYLURQPHQW         WZRRWKHUV
FDXVHGE\KHUSHHUVZKRDOOHJHGO\KDUDVVHGKHUDWVFKRROLQ
YLRODWLRQRI86&G                                                                     9
  2Q 6HSWHPEHU   D MXU\ WULDO FRPPHQFHG  $W WKH    7KH GLVWULFW FRXUWjV RUGHU WR GHQ\ 'HIHQGDQWjV 5XOH 
FORVHRI3ODLQWLIIjVSURRIDQGDJDLQDWWKHFRQFOXVLRQRIDOORI    PRWLRQLVDIILUPHG
WKHHYLGHQFHWKH%RDUGPRYHGIRUVXPPDU\MXGJPHQWDVD
PDWWHURIODZSXUVXDQWWR)HGHUDO5XOHRI&LYLO3URFHGXUH
7KHWULDOFRXUWGHQLHGERWKPRWLRQVDQGVXEPLWWHGWKHFDVHWR
WKHMXU\7KHMXU\UHWXUQHGLWVYHUGLFWLQIDYRURI$OPDRQDOO
FRXQWVDQGDZDUGHGKHU
    9DQFHHWDOY6SHQFHU                       1R       1R                        9DQFHHWDOY6SHQFHU            
      &RXQW\3XEOLF6FKRROHWDO                                                                     &RXQW\3XEOLF6FKRROHWDO

  FUHDWH DQG LQWLPLGDWLQJ KRVWLOH RU RIIHQVLYH                    6SHQFHU DSSHDOV WKH ORZHU FRXUWjV GHQLDO RI LWV 5XOH 
  HQYLURQPHQW"                                                         PRWLRQ
  :DVDQDSSURSULDWHSHUVRQLQIRUPHGRIWKHKRVWLOH                                                  ,,
  HQYLURQPHQW"
                                                                          ,QUHYLHZLQJDPRWLRQIRUDMXGJPHQWDVDPDWWHURIODZ
  'LGWKH'HIHQGDQW6FKRRO'LVWULFWWUHDWWKHUHSRUWLQJ           XQGHU)HGHUDO5XOHRI&LYLO3URFHGXUHWKLV&RXUWDSSOLHV
  RIWKHKRVWLOHHQYLURQPHQWZLWKGHOLEHUDWHLQGLIIHUHQFH"             WKH VDPH VWDQGDUG WKDW WKH GLVWULFW FRXUW XVHV  6HH +XUW Y
                                                                       &R\QH&\OLQGHU&R)GWK&LU
   ,QH[SODLQLQJmGHOLEHUDWHLQGLIIHUHQFHlWKHMXU\LQVWUXFWLRQ       7KH &RXUW ZLOO WKHUHIRUH FRQVLGHU mWKH HYLGHQFH LQ D OLJKW
VWDWHG                                                                PRVWIDYRUDEOHWRWKHSDUW\DJDLQVWZKRPWKHPRWLRQLVPDGH
                                                                       JLYLQJ WKDW SDUW\ WKH EHQHILW RI DOO UHDVRQDEOH LQIHUHQFHV
     m'HOLEHUDWH ,QGLIIHUHQFHl PHDQV PRUH WKDQ PHUH               7XFNY+&$+HDOWK6HUYV,QF)GWK&LU
  mUHFNOHVVQHVVl RQ WKH SDUW RI WKH DSSURSULDWH SHUVRQ           $FFRUGLQJO\ MXGJPHQW DV D PDWWHU RI ODZ ZLOO EH
  m5HFNOHVVQHVVl UHTXLUHV RQO\ SURRI WKDW D UHDVRQDEOH           SURSHUZKHUHWKHUHLVQROHJDOO\VXIILFLHQWHYLGHQWLDU\EDVLV
  SHUVRQZRXOGKDYHDSSUHFLDWHGWKHJUHDWGHJUHHRIULVNRI            IRUDUHDVRQDEOHMXU\WRILQGIRUWKHQRQPRYLQJSDUW\RQWKDW
  KDUP WR WKH SODLQWLII  ,Q RUGHU IRU DQ DFW WR EH         LVVXH RU ZKHUH D FODLP RU GHIHQVH FDQQRW XQGHU WKH
  mGHOLEHUDWHlWKHSDUWLFXODUDSSURSULDWHSHUVRQPXVWKDYH            FRQWUROOLQJODZEHPDLQWDLQHGRUGHIHDWHGZLWKRXWDIDYRUDEOH
  EHHQ VKRZQ WR KDYH EHHQ DZDUH WKDW DGYHUVH                    ILQGLQJRQWKDWLVVXH6HH)HG5&LY3Dm7KHFRXUW
  FRQVHTXHQFHV IURP KLV RU KHU DFWLRQ ZHUH FHUWDLQ RU          VKRXOG QRW ZHLJK WKH HYLGHQFH HYDOXDWH WKH FUHGLELOLW\ RI
  VXEVWDQWLDOO\FHUWDLQWRFDXVHWKHKDUP%HIRUH\RXFDQ             ZLWQHVVHV RU VXEVWLWXWH LWV MXGJPHQW IRU WKDW RI WKH MXU\
  ILQG WKDW DQ\ DSSURSULDWH SHUVRQ ZDV GHOLEHUDWHO\              UDWKHULWPXVWYLHZWKHHYLGHQFHLQWKHOLJKWPRVWIDYRUDEOH
  LQGLIIHUHQWWKHSODLQWLIIPXVWSURYHWKDWWKHDSSURSULDWH           WRWKHSDUW\DJDLQVWZKRPWKHPRWLRQLVPDGHDQGJLYHWKDW
  SHUVRQZDVDZDUHWKDWDSDUWLFXODUDFWRULQDFWLRQ ZDV              SDUW\ WKH EHQHILW RI DOO UHDVRQDEOH LQIHUHQFHVl  %ODFN Y
  FHUWDLQRUVXEVWDQWLDOO\FHUWDLQWRFDXVHWKH3ODLQWLIIKDUP         5\GHU3,( 1DWLRQZLGH ,QF  )G   WK &LU
  DQGWKDWWKHDSSURSULDWHSHUVRQGHFLGHGWRDFWRUQRWWR              FLWLQJ $JULVWRU /HDVLQJ Y $2 6PLWK +DUYHVWRUH
  DFWLQVSLWHRIWKDWNQRZOHGJH                                      3URGV,QF)GWK&LU
   ,QWKHLQVWDQWFDVHWKHTXHVWLRQVWKHMXU\DGGUHVVHGGLIIHU
IURPWKHVWDQGDUGWKH6XSUHPH&RXUWDQQRXQFHGLQ'DYLVLQ
WKH IROORZLQJ ZD\V   WKH &RXUW GLG QRW VWDWH WKDW WKH
FRQGXFWPXVWEHRIDmVH[XDOQDWXUHlDQGWKH&RXUWVWDWHG
WKDWWKHFRQGXFWPXVWmHIIHFWLYHO\EDU>@WKHYLFWLPjVDFFHVVWR            
                                                                            ,Q WKH EULHIV EHIRUH WKLV &RXUW RQ DSSHDO QHLWKHU 3ODLQWLII QRU
DQHGXFDWLRQDORSSRUWXQLW\RUEHQHILWl'DYLV86DW            'HIHQGDQW KDYH DGGUHVVHG 3ODLQWLIIjV QDWLRQDO RULJLQ FODLP  86&
  :H ILQG WKDW WKH VOLJKW QXDQFHV EHWZHHQ WKH 'DYLV        G RU KHU .HQWXFN\ &LYLO 5LJKWV $FW FODLP %HFDXVH WKH SDUWLHV
VWDQGDUG DQG WKH MXU\ LQVWUXFWLRQV ZHUH QHLWKHU FRQIXVLQJ      KDYH RQO\ DGGUHVVHG 3ODLQWLIIjV 7LWOH ,; FODLP RQ DSSHDO WKLV &RXUW ZLOO
PLVOHDGLQJQRUSUHMXGLFLDO                                          RQO\ DGGUHVV WKDW FODLP 6HH $KOHUV Y 6FKHELO  )G   WK
                                                                       &LU  KROGLQJ FODLPV WKDW DSSHOODQW IDLOHG WR DGGUHVV LQ EULHI RQ
                                                                       DSSHDO IURP DGYHUVH VXPPDU\ MXGJPHQW ZHUH ZDLYHG FLWLQJ 7KDGGHXV;
  )LUVW LQ 'DYLV WKH 6XSUHPH &RXUW DGGUHVVHG mJHQGHU         Y %ODWWHU  )G   Q  WK &LU  0F0XUSK\ Y &LW\ RI
RULHQWHG FRQGXFWl  ,G DW   +HUH WKH MXU\ DGGUHVVHG    )OXVKLQJ  )G   WK &LU 
      9DQFHHWDOY6SHQFHU                       1R       1R                     9DQFHHWDOY6SHQFHU         
       &RXQW\3XEOLF6FKRROHWDO                                                                  &RXQW\3XEOLF6FKRROHWDO

                                 ,,,                                    WKH DOOHJDWLRQV DQG LQLWLDWHG WHUPLQDWLRQ SURFHHGLQJV RQFH
                                                                        WKH\REWDLQHGFRQFOXVLYHSURRIRIWKHUHODWLRQVKLS6HHLG
  $OPDEULQJVKHU7LWOH,;FODLPEDVHGRQVWXGHQWRQVWXGHQW
VH[XDOKDUDVVPHQW7LWOH,;SURYLGHVLQUHOHYDQWSDUW                   +HUH WKH RQO\ HYLGHQFH EHIRUH WKLV &RXUW UHIOHFWLQJ WKH
                                                                        'HIHQGDQWjVUHVSRQVHVWRWKHVWDEELQJLQFLGHQWVFLHQFHURRP
    1RSHUVRQLQWKH8QLWHG6WDWHVVKDOORQWKHEDVLVRIVH[          LQFLGHQWDQG7LWOH,;FRPSODLQWLQYROYHVWDONLQJWRVWXGHQWV
    EHH[FOXGHGIURPSDUWLFLSDWLRQLQEHGHQLHGWKHEHQHILWV           $WQRWLPHGLG6SHQFHUHYHUUHVSRQGWRWKHGHJUHHDQGNLQG
    RI RU EH VXEMHFWHG WR GLVFULPLQDWLRQ XQGHU DQ\              DV WKRVH DXWKRULWLHV LQ 6RSHU  $OWKRXJK 7LWOH ,; GRHV QRW
    HGXFDWLRQDO SURJUDP RU DFWLYLW\ UHFHLYLQJ )HGHUDO              UHTXLUHFHUWDLQVSHFLILFUHVSRQVHVLWGRHVUHTXLUHDUHDVRQDEOH
    ILQDQFLDODVVLVWDQFH                                         UHVSRQVHZKLFK6SHQFHUIDLOHGWRSURYLGH
86&                                                                                       ,9
   :KLOHWKLVDFWLRQZDVSHQGLQJDSSHDOWKH6XSUHPH&RXUW                 ,QLWVEULHIRQDSSHDO'HIHQGDQWDUJXHVWKDWWKLVFDVHZDV
GHFLGHGWKDWUHFLSLHQWVRIIHGHUDOIXQGVOLNH6SHQFHUPD\EH          WULHGDQGVXEPLWWHGWRWKHMXU\ZLWKDQLQDSSURSULDWHVWDQGDUG
OLDEOH IRU GDPDJHV XQGHU 7LWOH ,; IRU VWXGHQWRQVWXGHQW         RIOLDELOLW\)RUWKHUHDVRQVWKDWIROORZZHUHMHFW'HIHQGDQWjV
VH[XDO KDUDVVPHQW  6HH 'DYLV Y 0RQURH &RXQW\ %G RI          DUJXPHQW
(GXF86VHHDOVR6RSHUY+REHQ
)GWK&LUDSSO\LQJ'DYLVDQDO\VLVWR              m7KHVWDQGDUGRIUHYLHZIRUMXU\LQVWUXFWLRQVLVWKDWWKH\DUH
IDFWVRFFXUULQJLQDQGDIWHURUDODUJXPHQWVLQWKHFDVH          µUHYLHZHGDVDZKROHWRGHWHUPLQHZKHWKHUWKH\DGHTXDWHO\
FHUW GHQLHG  6&W    ,Q WKH LQVWDQW DFWLRQ   LQIRUPWKHMXU\RIUHOHYDQWFRQVLGHUDWLRQVDQGSURYLGHDEDVLV
WKHUHLVQRGLVSXWHWKDW6SHQFHUUHFHLYHVIHGHUDOIXQGLQJDQG           LQODZIRUWKHMXU\WRUHDFKLWVGHFLVLRQjl,QQHVY+RZHOO
LV WKHUHIRUH OLDEOH IRU 7LWOH ,; VWXGHQWRQVWXGHQW VH[XDO       &RUS)GWK&LUTXRWLQJ%HDUG
KDUDVVPHQW7KHLVVXHEHIRUHWKLV&RXUWLVZKHWKHU3ODLQWLII           Y 1RUZHJLDQ &DULEEHDQ /LQHV  )G   WK &LU
KDVVDWLVILHGWKHSULPDIDFLHHOHPHQWVIRUKHUFODLP                     m7KH GLVWULFW FRXUW mPD\ EH UHYHUVHG RQO\ LI WKH
                                                                        LQVWUXFWLRQVYLHZHGDVDZKROHZHUHFRQIXVLQJPLVOHDGLQJ
  ,Q'DYLVWKH6XSUHPH&RXUWHVWDEOLVKHGWKDW7LWOH,;PD\             RUSUHMXGLFLDOl,QQHV)GDWTXRWLQJ%HDUG
VXSSRUW D FODLP IRU VWXGHQWRQVWXGHQW VH[XDO KDUDVVPHQW          )GDW
ZKHQWKHSODLQWLIIFDQGHPRQVWUDWHWKHIROORZLQJHOHPHQWV
                                                                          $FFRUGLQJWRWKH9HUGLFW)RUPWKHMXU\UHVSRQGHGWRWKH
    WKHVH[XDOKDUDVVPHQWZDVVRVHYHUHSHUYDVLYHDQG             IROORZLQJHOHPHQWVLQWKHDIILUPDWLYH
    REMHFWLYHO\RIIHQVLYHWKDWLWFRXOGEHVDLGWRGHSULYHWKH
    SODLQWLII RI DFFHVV WR WKH HGXFDWLRQDO RSSRUWXQLWLHV RU          :DV 3ODLQWLII $OPD 0F*RZHQ VXEMHFWHG WR DQ
    EHQHILWVSURYLGHGE\WKHVFKRRO                                     XQZHOFRPH KRVWLOH VH[XDO KDUDVVPHQW LQ WKH IRUP RI
                                                                          VH[XDO DGYDQFHV UHTXHVWV IRU VH[XDO IDYRUV RU RWKHU
     WKH IXQGLQJ UHFLSLHQW KDG DFWXDO NQRZOHGJH RI WKH         YHUEDORUSK\VLFDOFRQGXFWRIDVH[XDOQDWXUHDQGZDV
    VH[XDOKDUDVVPHQWDQG                                               WKHKDUDVVPHQWFRPSODLQHGRIEDVHGXSRQVH[DQGGLG
                                                                          WKH DOOHJHG VH[XDO KDUDVVPHQW KDYH WKH HIIHFW RI
    WKHIXQGLQJUHFLSLHQWZDVGHOLEHUDWHO\LQGLIIHUHQWWR             XQUHDVRQDEO\LQWHUIHULQJZLWK3ODLQWLIIjVHGXFDWLRQDQG
    WKHKDUDVVPHQW
    9DQFHHWDOY6SHQFHU                          1R       1R                        9DQFHHWDOY6SHQFHU              
      &RXQW\3XEOLF6FKRROHWDO                                                                        &RXQW\3XEOLF6FKRROHWDO

  ,QWKHLQVWDQWFDVH6SHQFHUUHVSRQGHGWRVHYHUDORI$OPDjV             6RSHU Y +REHQ)GWK&LUFLWLQJ
FRPSODLQWV E\ mWDONLQJl WR WKH RIIHQGHUV  +RZHYHU WKH           'DYLV86DW
KDUDVVLQJFRQGXFWQRWRQO\FRQWLQXHGEXWDOVRLQFUHDVHGDVD
UHVXOW,QIDFWVRPHRI$OPDjVRIIHQGHUVFRQIURQWHGKHUDIWHU             $V H[SODLQHG EHORZ $OPD KDV SUHVHQWHG HYLGHQFH WKDW
WKH\KDGEHHQmWDONHGlWRLQRUGHUWRKDUDVV$OPDDJDLQ$V              VDWLVILHVHDFKRIWKHVHWKUHHHOHPHQWV
LQ&DQW\RQFH6SHQFHUKDGNQRZOHGJHWKDWLWVUHVSRQVHZDV
LQDGHTXDWHLWZDVUHTXLUHGWRWDNHIXUWKHUUHDVRQDEOHDFWLRQ                                                 $
LQOLJKWRIWKHFLUFXPVWDQFHVWRDYRLGQHZOLDELOLW\
                                                                             $OPDKDVSURYLGHGHYLGHQFHHYLQFLQJVH[XDOKDUDVVPHQW
   %HFDXVHRI6SHQFHUjVGHOLEHUDWHLQGLIIHUHQFHLWLVUHDGLO\            FRQVLVWHQW ZLWK WKH 'DYLV VHYHULW\ DQG SHUYDVLYHQHVV
GLVWLQJXLVKDEOHIURP6RSHUY+REHQ)GWK               UHTXLUHPHQW  ,Q 'DYLV D PDOH VWXGHQW IRQGOHG D IHPDOH
&LU,Q6RSHUDPDOHVSHFLDOHGXFDWLRQVWXGHQWNLVVHG            VWXGHQWjVEUHDVWVVSRNHLQYXOJDUODQJXDJHWRKHUHQJDJHGLQ
SODLQWLIIDOVRDVSHFLDOHGXFDWLRQVWXGHQWZKLOHRIIVFKRRO             VH[XDOO\VXJJHVWLYHEHKDYLRUWRZDUGKHUWROGKHUm,ZDQWWR
JURXQGV3ODLQWLIIjVPRWKHUFRPSODLQHGWRSODLQWLIIjVWHDFKHU           JHWLQWREHGZLWK\RXlDQGm,ZDQWWRIHHO\RXUERREVlDQG
ZKRDVVXUHGKHUWKDWVKHZRXOGZDWFKWKHPDOHVWXGHQW6HH               SODFHG D GRRU VWRS LQ KLV SDQWV DQG DFWHG LQ D VXJJHVWLYH
LGDW/DWHUDIWHUSODLQWLIIWUDQVIHUUHGWRDQRWKHUVFKRRO        PDQQHUWRZDUGKHU86DW$WWKHHQGRIWKH
VKHWROGKHUPRWKHUWKDWWKHVDPHPDOHVWXGHQWKDGUDSHGKHU              VWULQJ RI LQFLGHQWV WKH PDOH VWXGHQW SOHG JXLOW\ WR VH[XDO
DWVFKRRODQGWZRRWKHUPDOHVWXGHQWVKDGIRQGOHGKHULQWKH             EDWWHU\6HHLGDW$VDUHVXOWRIWKHKDUDVVPHQWSODLQWLII
EDFNRIWKHFODVVURRPZKLOHWKHWHDFKHUZDVRXWVLGHLQWKH                DOOHJHG WKDW KHU JUDGHV KDG GURSSHG DQG VKH KDG ZULWWHQ D
KDOOZD\  6HH LG  $IWHU SODLQWLIIjV PRWKHU UHSRUWHG WKHVH       VXLFLGHQRWH6HHLG7KH6XSUHPH&RXUWIRXQGWKDWWKHVH
LQFLGHQWVVFKRRODXWKRULWLHVLPPHGLDWHO\FRQWDFWHGWKHSURSHU            DFWLRQV DPRXQWHG WR VHYHUH SHUYDVLYH DQG REMHFWLYHO\
DXWKRULWLHV LQYHVWLJDWHG WKH LQFLGHQWV WKHPVHOYHV LQVWDOOHG        RIIHQVLYHFRQGXFWSDUWLFXODUO\JLYHQWKHRIIHQVLYHWRXFKLQJ
ZLQGRZV LQ WKH GRRUV RI WKH VSHFLDO HGXFDWLRQ FODVVURRP          6HHLGDW
SODFHG DQ DLGH LQ SODLQWLIIjV FODVVURRP RIIHUHG SODLQWLII
LQFUHDVHGVXSHUYLVLRQDQGDQHVFRUWDQGFUHDWHGFRXQVHOLQJ                 ,Q WKH LQVWDQW FDVH DV LQ 'DYLV $OPD KDV VXEPLWWHG
VHVVLRQVRQKRZWRIXQFWLRQVRFLDOO\ZLWKWKHRSSRVLWHVH[               DEXQGDQW HYLGHQFH RI ERWK YHUEDO DQG SK\VLFDO VH[XDO
6HH LG DW   ,Q UHMHFWLQJ SODLQWLIIjV 7LWOH ,; FODLP IRU   KDUDVVPHQW$OWKRXJKRQHLQFLGHQWFDQVDWLVI\DFODLP $OPD
VH[XDO KDUDVVPHQW WKLV &RXUW VWDWHG mWKH SURPSW DQG               KDVSUHVHQWHGVHYHUDOLQVWDQFHVWKDWUHIOHFWQRWRQO\VHYHULW\
WKRURXJK UHVSRQVH E\ VFKRRO RIILFLDOV WR WKH >SODLQWLIIjV@         DQG SHUYDVLYHQHVV EXW DOVR FLUFXPVWDQFHV WKDW HIIHFWLYHO\
FRPSODLQWZDVQRWµFOHDUO\XQUHDVRQDEOHLQOLJKWRIWKHNQRZQ             GHQLHGKHUHGXFDWLRQ2QRQHRFFDVLRQ$OPDZDVVWDEEHGLQ
FLUFXPVWDQFHVjl,GTXRWLQJ'DYLV86DW                   WKHKDQG2QDQRWKHUWZRPDOHVWXGHQWVKHOG$OPDZKLOH
                                                                          RWKHUV\DQNHGRIIKHUVKLUWSXOOHGKHUKDLUDQGDWWHPSWHGWR
  $ VLPLODUO\ GLVWLQJXLVKDEOH FDVH LV .LQPDQ Y 2PDKD
3XEOLF6FKRRO'LVWULFW)GWK&LU
7KHUHWKH(LJKWK&LUFXLWUHMHFWHGSODLQWLIIjV7LWOH,;FODLP                
                                                                                m:LWKLQ WKH FRQWH[W RI 7LWOH ,; D VWXGHQWjV FODLP RI KRVWLOH
XQGHUWKHGHOLEHUDWHLQGLIIHUHQFHVWDQGDUGEHFDXVHRQFHWKH              HQYLURQPHQW FDQ DULVH IURP D VLQJOH LQFLGHQWl     'RH Y 6FKRRO $GPLQ
VFKRROGLVWULFWKDGDFWXDONQRZOHGJHRIDVH[XDOUHODWLRQVKLS             'LVW 1R    ) 6XSS G   ' 0H  FLWLQJ  %URZQ Y +RW
EHWZHHQSODLQWLIIDQGDWHDFKHULWmGLGQRWµWXUQDEOLQGH\H            6H[\ 	 6DIHU 3URGXFWLRQV     )G   Q  VW &LU  QRWLQJ
DQGGRQRWKLQJjl,GDW5DWKHUWKHGLVWULFWLQYHVWLJDWHG         WKDW m>Z@H GR QRW KROG WKDW D RQHWLPH HSLVRGH LV QRWSHU VH    LQFDSDEOH RI
                                                                          VXVWDLQLQJ D KRVWLOH HQYLURQPHQW FODLPl
    9DQFHHWDOY6SHQFHU                       1R       1R                     9DQFHHWDOY6SHQFHU        
      &RXQW\3XEOLF6FKRROHWDO                                                                  &RXQW\3XEOLF6FKRROHWDO

GLVUREH7KHVHSK\VLFDODWWDFNVPHUHO\OD\HUWKHWHVWLPRQ\               ,QWKHLQVWDQWFDVH6SHQFHUIDLOHGWRUHVSRQGLQOLJKWRIWKH
UHJDUGLQJ YHUEDO SURSRVLWLRQLQJ DQG QDPH FDOOLQJ  ,Q           NQRZQFLUFXPVWDQFHV2QRQHRFFDVLRQDVWXGHQWjVKDUDVVLQJ
DGGLWLRQ $OPDjV7LWOH,;FRPSODLQWILOHGZLWK6SHQFHULQ            FRQGXFWFXOPLQDWHGLQVWDEELQJ$OPDLQWKHKDQG:LWKWKH
0D\FXULRXVO\ZDUUDQWHGKHUFRPSOHWLQJKHUVWXGLHVDW            H[FHSWLRQ RI WDONLQJ WR WKH VWXGHQW WKHUH ZDV QR HYLGHQFH
KRPH EXW QRW DQ LQYHVWLJDWLRQ  *LYHQ WKH IUHTXHQF\ DQG      EHIRUH WKH MXU\ RU WKLV &RXUW WKDW 6SHQFHU WRRN DQ\ RWKHU
VHYHULW\ RI ERWK WKH YHUEDO DQG SK\VLFDO DWWDFNV LW LV QR   DFWLRQZKDWVRHYHU2QDQRWKHURFFDVLRQWZRPDOHVWXGHQWV
ZRQGHUWKDW$OPDZDVGLDJQRVHGZLWKGHSUHVVLRQ*LYHQWKLV            KHOG$OPDZKLOHDQRWKHUWRRNRIIKLVSDQWVDQGRWKHUVSXOOHG
HYLGHQFH$OPDKDVVDWLVILHGWKHVHYHULW\DQGSHUYDVLYHQHVV            KHUKDLUDQGDWWHPSWHGWRULSRIIKHUFORWKHV:LWKUHVSHFWWR
UHTXLUHPHQW                                                           WKDW LQFLGHQW WKH RQO\ HYLGHQFH EHIRUH WKH MXU\ HYLQFLQJ
                                                                       6SHQFHUjVUHVSRQVHLVWKDWDFODVVURRPWHDFKHUVSRNHWRWKH
                                 %                                     ER\VDQG$OPD7KHUHLVQRHYLGHQFHEHIRUHWKLV&RXUWWKDW
                                                                       6SHQFHUHYHUGLVFLSOLQHGWKHRIIHQGLQJVWXGHQWVQRULQIRUPHG
   $OPDKDVVDWLVILHGWKH'DYLVQRWLFHUHTXLUHPHQW,Q'DYLV         ODZHQIRUFHPHQWDVDUHVXOWRIDQ\RIWKHVHLQFLGHQWV2Q\HW
WKH6XSUHPH&RXUWVXJJHVWHGWKDWERWKWKHSDUHQWDQGVWXGHQW           DQRWKHURFFDVLRQ$OPDjVPRWKHUILOHGDGHWDLOHGFRPSODLQW
KDGVDWLVILHGWKHDFWXDOQRWLFHVWDQGDUGZKHUHWKH\KDGPDGH           ZLWK 6SHQFHUjV 7LWOH ,; FRRUGLQDWRU  $Q  LQYHVWLJDWLRQ
UHSHDWHGKDUDVVPHQWFRPSODLQWVWRWKHWHDFKHUDQGSULQFLSDO           KRZHYHUQHYHUUHVXOWHG7KHVHWKUHHLQFLGHQWVDORQHUHIOHFW
86DWVHHDOVR*HEVHUY/DJR9LVWD,QGHS6FK             DGHOLEHUDWHLQGLIIHUHQFHLQOLJKWRIWKHNQRZQFLUFXPVWDQFHV
'LVW86VWDWLQJWKDWWKHFRPSODLQWGLG
QRWVWDWHDYDOLGFODLPXQGHUWKH7LWOH,;EHFDXVHQRWLFHRI              )XUWKHUPRUHLQQXPHURXVLQVWDQFHV6SHQFHUFRQWLQXHGWR
LQDSSURSULDWH FRPPHQWV E\ D WHDFKHU GXULQJ FODVV ZDV            XVHWKHVDPHLQHIIHFWLYHPHWKRGVWRQRDFNQRZOHGJHGDYDLO
mSODLQO\LQVXIILFLHQWWRDOHUWWKHSULQFLSDO WRWKHSRVVLELOLW\       $OWKRXJK mWDONLQJ WR WKH RIIHQGHUVl SURGXFHG QR UHVXOWV
WKDW>WKHWHDFKHU@ZDVLQYROYHGLQDVH[XDOUHODWLRQVKLSZLWK          6SHQFHUFRQWLQXHGWRHPSOR\WKLVLQHIIHFWLYHPHWKRG6XFK
DVWXGHQWl                                                           FRQWLQXHGLQHIIHFWLYHQHVVPDNHVWKLVFDVHDQDORJRXVWR&DQW\
                                                                       Y2OG5RFKHVWHU5HJLRQDO6FKRRO'LVWULFW)6XSSG
   ,Q WKLV FDVH LW LV XQGLVSXWHG WKDW 6SHQFHU KDG DFWXDO     '0DVV7KHUHDFRDFKLQWKHGHIHQGDQWVFKRRO
NQRZOHGJH%RWK$OPDDQGKHUPRWKHUPDGHUHSHDWHGUHSRUWV             GLVWULFWUDSHGSODLQWLIIDVWXGHQWRQVFKRROSURSHUW\6HHLG
WR6SHQFHU$OPDLQIRUPHGERWKKHUWHDFKHUVDQGSULQFLSDOV           DW,QUHVSRQVHGHIHQGDQWVFKRROGLVWULFWLVVXHGWKHFRDFK
$OPDjVPRWKHUPDGHUHSHDWHGUHSRUWVYHUEDOO\DQGLQZULWLQJ           DUHSULPDQGOHWWHU6HHLG/DWHUWKHVFKRROGLVWULFWLVVXHG
QRWWRPHQWLRQKHU7LWOH,;FRPSODLQWILOHGZLWKWKHVFKRRO           WZR PRUH UHSULPDQG OHWWHUV LQ UHVSRQVH WR IXUWKHU
7KXV$OPDKDVVDWLVILHGKHUEXUGHQRIHVWDEOLVKLQJ6SHQFHUjV          LQDSSURSULDWHFRQWDFWEHWZHHQWKHVWXGHQWDQGWKHFRDFK6HH
DFWXDONQRZOHGJH                                                      LGDW7KHFRXUWKHOGWKDWLWZDVGLVLQJHQXRXVIRUWKH
                                                                       GHIHQGDQW GLVWULFW WR FRQFOXGH WKDW ZULWWHQ UHSULPDQGV DQG
                                &                                      UHVWULFWLQJWKHFRDFKIURPFRQWDFWZLWKSODLQWLIIZHUHmµWLPHO\
                                                                       DQGUHDVRQDEOHPHDVXUHVWRHQGWKHKDUDVVPHQWjl,GDW
   7KHSLYRWDOLVVXHEHIRUHXVLVZKDWLVUHTXLUHGRIIHGHUDO          TXRWLQJ:LOOV)GDW7KHFRXUWIXUWKHUUHDVRQHG
DVVLVWDQFH UHFLSLHQWV XQGHU WKH mGHOLEHUDWH LQGLIIHUHQFH          WKDW RQFH WKH GHIHQGDQW GLVWULFW KDG NQRZOHGJH WKDW WKH
VWDQGDUGl7KHUHFLSLHQWLVOLDEOHIRUGDPDJHVRQO\ZKHUHWKH         UHSULPDQGOHWWHUVZHUHmLQDGHTXDWHlWKHGLVWULFWZDVUHTXLUHG
UHFLSLHQWLWVHOILQWHQWLRQDOO\DFWHGLQFOHDUYLRODWLRQRI7LWOH,;    WRmWDNHIXUWKHUVWHSVWRDYRLGQHZOLDELOLW\l,GDW
E\ UHPDLQLQJ GHOLEHUDWHO\ LQGLIIHUHQW WR NQRZQ DFWV RI
KDUDVVPHQW6HH'DYLV86DWGLVFXVVLQJ*HEVHU
    9DQFHHWDOY6SHQFHU                        1R      1R                      9DQFHHWDOY6SHQFHU         
      &RXQW\3XEOLF6FKRROHWDO                                                                   &RXQW\3XEOLF6FKRROHWDO

  ,Q0XUUHOOY6FKRRO'LVWULFW1R)G             Y /DJR 9LVWD 6FKRRO 'LVW VWDWLQJ OLDELOLW\ DURVH IURP
WK&LUDPDOHVWXGHQWVH[XDOO\DVVDXOWHGSODLQWLII         UHFLSLHQWjV RIILFLDO GHFLVLRQ QRW WR UHPHG\ WKH YLRODWLRQ
DSK\VLFDOO\LPSDLUHGVSHFLDOHGXFDWLRQVWXGHQWRQVHYHUDO            m>7@KH GHOLEHUDWH LQGLIIHUHQFH PXVW DW D PLQLPXP µFDXVH
RFFDVLRQV  2Q RQH RFFDVLRQ XSRQ GLVFRYHULQJ WKH WZR          >VWXGHQWV@ WR XQGHUJRj KDUDVVPHQW RU µPDNH WKHP OLDEOH RU
VWXGHQWVDMDQLWRUWROGWKHPWRFOHDQXSDQGUHWXUQHGWKHPWR         YXOQHUDEOHjWRLWl'DYLV86DW
FODVV$OWKRXJKWKHWHDFKHUVDOOHJHGO\NQHZDERXWWKHDVVDXOW
WKH\GLGQRWLQIRUPSODLQWLIIjVSDUHQW6HHLGDW$IWHU          ,QGHVFULELQJWKHSURRIQHFHVVDU\WRVDWLVI\WKHVWDQGDUGWKH
DQRWKHUVH[XDODVVDXOWSODLQWLIIjVWHDFKHUVDOOHJHGO\WROGKHU        6XSUHPH &RXUW VWDWHG WKDW D SODLQWLII PD\ GHPRQVWUDWH
QRWWRWHOOKHUPRWKHUDERXWWKHLQFLGHQWDQGWRIRUJHWWKDWLW        GHIHQGDQWjV GHOLEHUDWH LQGLIIHUHQFH WR GLVFULPLQDWLRQ mRQO\
KDSSHQHG6HHLG$WQRWLPHGLGWKHVFKRROHYHULQIRUPODZ          ZKHUH WKH UHFLSLHQWjV UHVSRQVH WR WKH KDUDVVPHQW RU ODFN
HQIRUFHPHQWLQYHVWLJDWHQRUGLVFLSOLQHWKHRIIHQGLQJVWXGHQW        WKHUHRI LV FOHDUO\ XQUHDVRQDEOH LQ OLJKW RI WKH NQRZQ
6HHLG,QXSKROGLQJSODLQWLIIjVFODLPWKH7HQWK&LUFXLWIRXQG       FLUFXPVWDQFHVl,GDW&I)DUPHUY%UHQQDQ86
GHIHQGDQWVFKRROGLVWULFWGHOLEHUDWHO\LQGLIIHUHQWXQGHU7LWOH         KROGLQJWKDWDSULVRQRIILFLDOPD\EHOLDEOH
,;6HHLGDW                                                  XQGHUWKH(LJKWK$PHQGPHQWEDVHGRQGHOLEHUDWHLQGLIIHUHQFH
                                                                       WR WKH VDIHW\ RI SULVRQHUV LI KH NQRZV RI DQG UHVSRQGV
  ,Q :LOOV Y %URZQ 8QLYHUVLW\ WKH )LUVW &LUFXLW IXUWKHU      XQUHDVRQDEO\WRmDVXEVWDQWLDOULVNRIVHULRXVKDUPl*DQWY
HODERUDWHGWKHGHOLEHUDWHLQGLIIHUHQFHVWDQGDUG                       :DOOLQJIRUG%GRI(GXF)GG&LUVWDWLQJ
                                                                       WKDW XQGHU   D VWXGHQWRQVWXGHQW UDFLDO KDUDVVPHQW
  ,IWKHLQVWLWXWLRQWDNHVWLPHO\DQGUHDVRQDEOHPHDVXUHVWR           FODLP GRHV QRW UHTXLUH SURRI WKDW mWKH GHIHQGDQW IXOO\
  HQG WKH KDUDVVPHQW LW LV QRW OLDEOH XQGHU 7LWOH ,; IRU    DSSUHFLDWHGWKHKDUPIXOFRQVHTXHQFHVRIWKDWGLVFULPLQDWLRQ
  SULRUKDUDVVPHQW2IFRXUVHLILWOHDUQVWKDWLWVPHDVXUHV         EHFDXVHGHOLEHUDWHLQGLIIHUHQFHLVQRWWKHVDPHDVDFWLRQRU
  KDYH SURYHG LQDGHTXDWH LW PD\ EH UHTXLUHG WR WDNH           LQDFWLRQ WDNHQ µPDOLFLRXVO\ RU VDGLVWLFDOO\ IRU WKH YHU\
  IXUWKHUVWHSVWRDYRLGQHZOLDELOLW\                                SXUSRVHRIFDXVLQJKDUPjlTXRWLQJ)DUPHU86DW
                                                                       LQWHUQDOTXRWDWLRQPDUNVRPLWWHG
)GVW&LULQWHUQDOFLWDWLRQVRPLWWHG
                                                                          7KHUHFLSLHQWLVQRWUHTXLUHGWRmUHPHG\lVH[XDOKDUDVVPHQW
  ,Q'RHY6FKRRO$GPLQ'LVW1R)6XSSG             QRU HQVXUH WKDW VWXGHQWV FRQIRUP WKHLU FRQGXFW WR FHUWDLQ
'0HWKHFRXUWKHOGWKDWDMXU\FRXOGILQGWKDW         UXOHVEXWUDWKHUmWKHUHFLSLHQWPXVWPHUHO\UHVSRQGWRNQRZQ
WKHIROORZLQJDPRXQWHGWRXQUHDVRQDEOHUHVSRQVHVLQOLJKWRI           SHHUKDUDVVPHQWLQDPDQQHUWKDWLVQRWFOHDUO\XQUHDVRQDEOHl
NQRZQ FLUFXPVWDQFHV   DIWHU YDULRXV VFKRRO SHUVRQQHO        'DYLV  86 DW   7KH GHOLEHUDWH LQGLIIHUHQFH
FRPSODLQHGWRWKHSULQFLSDOWKDWDIHPDOHWHDFKHUZDVKDYLQJ           VWDQGDUG mGRHV QRW PHDQ WKDW UHFLSLHQWV FDQ DYRLG OLDELOLW\
VH[ZLWKPDOHVWXGHQWVWKHSULQFLSDOGLGQRWLQYHVWLJDWHQRU          RQO\E\SXUJLQJWKHLUVFKRROVRIDFWLRQDEOHSHHUKDUDVVPHQW
FRQIURQWWKHIHPDOHWHDFKHUZLWKWKHVSHFLILFDOOHJDWLRQV         RUWKDWDGPLQLVWUDWRUVPXVWHQJDJHLQSDUWLFXODUGLVFLSOLQDU\
WKH SULQFLSDO ZDUQHG D VXEVWLWXWH WHDFKHU WKDW VKH FRXOG EH   DFWLRQl  ,G DW   7KH VWDQGDUG GRHV QRW PHDQ WKDW
VXHGIRUVODQGHUIRUWHOOLQJKLPWKDWWKHIHPDOHWHDFKHUZDV           UHFLSLHQWVPXVWH[SHOHYHU\VWXGHQWDFFXVHGRIPLVFRQGXFW
KDYLQJ VH[ ZLWK D PDOH VWXGHQW DQG PDGH QR HIIRUW WR         6HH LG  9LFWLPV GR QRW KDYH D ULJKW WR SDUWLFXODU UHPHGLDO
LQYHVWLJDWHWKHPDWWHUDQGUDWKHUWKDQDQLQYHVWLJDWLRQWKH      GHPDQGV  6HH LG  )XUWKHUPRUH FRXUWV VKRXOG QRW VHFRQG
VXSHULQWHQGHQWWROGWKHSULQFLSDOWRTXHVWLRQVRPHRIWKHPDOH         JXHVV WKH GLVFLSOLQDU\ GHFLVLRQV WKDW VFKRRO DGPLQLVWUDWRUV
VWXGHQWVDERXWWKHDOOHJDWLRQV                                        PDNH6HHLG
       9DQFHHWDOY6SHQFHU                         1R        1R                       9DQFHHWDOY6SHQFHU            
         &RXQW\3XEOLF6FKRROHWDO                                                                       &RXQW\3XEOLF6FKRROHWDO

   m7KH6XSUHPH&RXUWKDVSRLQWHGO\UHPLQGHGXVKRZHYHU                    GLVWULFWKDVNQRZOHGJHWKDWLWVUHPHGLDODFWLRQLVLQDGHTXDWH
WKDW WKLV LV µQRW D PHUH mUHDVRQDEOHQHVVl VWDQGDUGj WKDW             DQGLQHIIHFWLYHLWLVUHTXLUHGWRWDNHUHDVRQDEOHDFWLRQLQOLJKW
WUDQVIRUPV HYHU\ VFKRRO GLVFLSOLQDU\ GHFLVLRQ LQWR D MXU\             RIWKRVHFLUFXPVWDQFHVWRHOLPLQDWHWKHEHKDYLRU:KHUHD
TXHVWLRQl*DQW)GDWTXRWLQJ'DYLV86DW                VFKRRO GLVWULFW KDV DFWXDO NQRZOHGJH WKDW LWV HIIRUWV WR
,QDQDSSURSULDWHFDVHWKHUHLVQRUHDVRQZK\FRXUWVRQ              UHPHGLDWHDUHLQHIIHFWLYHDQGLWFRQWLQXHVWRXVHWKRVHVDPH
PRWLRQIRUDGLUHFWHGYHUGLFWFRXOGQRWLGHQWLI\DUHVSRQVHDV               PHWKRGVWRQRDYDLOVXFKGLVWULFWKDVIDLOHGWRDFWUHDVRQDEO\
QRWmFOHDUO\XQUHDVRQDEOHlDVDPDWWHURIODZ6HH*DQW                LQOLJKWRIWKHNQRZQFLUFXPVWDQFHV
)GDW
                                                                               $V H[DPSOHV RI FRQGXFW VDWLVI\LQJ WKH GHOLEHUDWH
   $VDQLQLWLDOPDWWHU6SHQFHUDOOHJHVWKDWWKHLQWHQWVWDQGDUG            LQGLIIHUHQFHVWDQGDUGFRQVLGHUWKHIROORZLQJFDVHV
JRYHUQV 7LWOH ,; VWXGHQWRQVWXGHQW FODLPV  (VVHQWLDOO\
DFFRUGLQJ WR 'HIHQGDQW DV ORQJ DV D VFKRRO GLVWULFW GRHV              ,Q'DYLVDPDOHVWXGHQWIRQGOHGDIHPDOHVWXGHQWjVEUHDVWV
VRPHWKLQJ LQ UHVSRQVH WR KDUDVVPHQW LW KDV VDWLVILHG WKH            VSRNH LQ YXOJDU ODQJXDJH WR KHU HQJDJHG LQ VH[XDOO\
VWDQGDUG)XUWKHUPRUHDFFRUGLQJWR'HIHQGDQW6SHQFHUGLG                  VXJJHVWLYHEHKDYLRUWRZDUGKHUWROGKHUm,ZDQWWRJHWLQWR
VRPHWKLQJLQUHVSRQVHWR$OPDjVDOOHJDWLRQV$IWHUUHYLHZLQJ                EHGZLWK\RXlDQGm,ZDQWWRIHHO\RXUERREVlDQGSODFHGD
WKHUHFRUGWKHEULHIVRIERWKSDUWLHVDQGWKHDSSOLFDEOHODZ              GRRU VWRS LQ KLV SDQWV DQG DFWHG LQ D VXJJHVWLYH PDQQHU
DQG KDYLQJ KDG WKH EHQHILW RI RUDO DUJXPHQW ZH UHMHFW              WRZDUGKHU86DW,QDGGLWLRQRWKHUJLUOV
'HIHQGDQWjV XQGHUVWDQGLQJ RI WKH GHOLEHUDWH LQGLIIHUHQFH                ZKRWKHPDOHVWXGHQWKDUDVVHGVRXJKWDQDXGLHQFHZLWKWKH
VWDQGDUG                                                                    SULQFLSDOZKLFKDWHDFKHUGHQLHG:KHQSODLQWLIIjVPRWKHU
                                                                             DVNHGWKHSULQFLSDOZKDWGLVFLSOLQDU\DFWLRQKHSODQQHGWRWDNH
   7KHVWDQGDUGDQQRXQFHGE\WKH6XSUHPH&RXUWLVDmFOHDUO\                 DJDLQVWWKHVWXGHQWKHUHVSRQGHGm,JXHVV,jOOKDYHWRWKUHDWHQ
XQUHDVRQDEOHUHVSRQVHLQOLJKWRIWKHNQRZQFLUFXPVWDQFHVl                  KLPDOLWWOHELWKDUGHUl,GDW$OWKRXJKERWKSODLQWLII
'DYLV86DW,IWKLV&RXUWZHUHWRDFFHSW6SHQFHUjV              DQG KHU PRWKHU LQIRUPHG SODLQWLIIjV WHDFKHU DERXW WKH
DUJXPHQWDVFKRROGLVWULFWFRXOGVDWLVI\LWVREOLJDWLRQZKHUH               LQFLGHQWV WKH VFKRRO WRRN QRQH RI WKH IROORZLQJ DFWLRQ
D VWXGHQW KDV EHHQ UDSHG E\ PHUHO\ LQYHVWLJDWLQJ DQG                 GLVFLSOLQLQJWKHVWXGHQWVHSDUDWLQJSODLQWLIIIURPWKHVWXGHQW
DEVROXWHO\ QRWKLQJ PRUH  6XFK PLQLPDOLVW UHVSRQVH LV QRW            RUHVWDEOLVKLQJDVH[XDOKDUDVVPHQWSROLF\RUSURFHGXUH,G
ZLWKLQWKHFRQWHPSODWLRQRIDUHDVRQDEOHUHVSRQVH$OWKRXJK                 DW   7KH 6XSUHPH &RXUW VWDWHG WKDW WKLV ODFN RI
QRSDUWLFXODUUHVSRQVHLVUHTXLUHGDQGDOWKRXJKWKHVFKRRO                  UHVSRQVHFRXOGVXJJHVWmGHOLEHUDWHLQGLIIHUHQFHRQWKHSDUWRI
GLVWULFWLVQRWUHTXLUHGWRHUDGLFDWHDOOVH[XDOKDUDVVPHQWWKH             WKH %RDUG ZKLFK PDGH QR HIIRUW ZKDWVRHYHU HLWKHU WR
VFKRRO GLVWULFW PXVW UHVSRQG DQG PXVW GR VR UHDVRQDEO\ LQ           LQYHVWLJDWHRUWRSXWDQHQGWRWKHKDUDVVPHQWl,GDW
OLJKW RI WKH NQRZQ FLUFXPVWDQFHV  7KXV ZKHUH D VFKRRO

     
     ,Q   'DYLV    WKH 6XSUHPH &RXUW FLWHG WKH 'HSDUWPHQW RI (GXFDWLRQ         >,@W VKRXOG WDNH LPPHGLDWH DQG DSSURSULDWH VWHSV WR LQYHVWLJDWH
2IILFH RI &LYLO 5LJKWV 6H[XDO +DUDVVPHQW *XLGDQFH       +DUDVVPHQW RI          RU RWKHUZLVH GHWHUPLQH ZKDW RFFXUUHG DQG WDNH VWHSV UHDVRQDEO\
6WXGHQWV E\ 6FKRRO (PSOR\HHV 2WKHU 6WXGHQWV RU 7KLUG 3DUWLHV  )HG          FDOFXODWHG WR HQG DQ\ KDUDVVPHQW HOLPLQDWH D KRVWLOH
5HJ    2&5 7LWOH ,; *XLGHOLQHV     'DYLV          HQYLURQPHQW LI RQH KDV EHHQ FUHDWHG DQG SUHYHQW KDUDVVPHQW
86 DW  ,Q GHVFULELQJ D VFKRRO GLVWULFWjV DSSURSULDWH UHVSRQVH WR       IURP RFFXUULQJ DJDLQ
NQRZQ VH[XDO KDUDVVPHQW WKH 2&5 7LWOH ,; *XLGHOLQHV VWDWH
                                                                             2&5 7LWOH ,; *XLGHOLQHV  )HG5HJ DW 