Filed: Sep. 14, 2000
Latest Update: Mar. 02, 2020
Summary: 5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH (/(&7521,& &,7$7,21 )(' $SS 3 WK &LU )LOH 1DPH DS 81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB '(19(5 52%(57621 ; 3HWLWLRQHU$SSHOODQW 1R Y ! s2+1 025*$1:DUGHQ 5HVSRQGHQW$SSHOOHH 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG 1RnsRKQ00DQRV'LVWULFWsXGJH $UJXHG$SULO 'H
Summary: 5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH (/(&7521,& &,7$7,21 )(' $SS 3 WK &LU )LOH 1DPH DS 81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB '(19(5 52%(57621 ; 3HWLWLRQHU$SSHOODQW 1R Y ! s2+1 025*$1:DUGHQ 5HVSRQGHQW$SSHOOHH 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG 1RnsRKQ00DQRV'LVWULFWsXGJH $UJXHG$SULO 'HF..
More
5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH (/(&7521,& &,7$7,21 )(' $SS 3 WK &LU )LOH 1DPH DS 81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB '(19(5 52%(57621 ; 3HWLWLRQHU$SSHOODQW 1R Y ! s2+1 025*$1:DUGHQ 5HVSRQGHQW$SSHOOHH 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG 1RnsRKQ00DQRV'LVWULFWsXGJH $UJXHG$SULO 'HFLGHGDQG)LOHG6HSWHPEHU %HIRUH*8 KH@ ZDV DPHQDEOH WR UHKDELOLWDWLRQ ZLWKLQ WKH MXYHQLOH MXYHQLOH FRXUW MXGJH RUGHUHG VHSDUDWH DQG LQFRPSDWLEOH V\VWHPl HVSHFLDOO\ VLQFH KH KDG QHYHU EHHQ WUHDWHG E\ WKH GLVSRVLWLRQVIRUDVHULHVRIUHODWHGDVVDXOWVFRPPLWWHGE\RQH MXYHQLOHV\VWHPSUHYLRXVO\)XUWKHU5REHUWVRQFRQWHQGVWKDW \RXWK2QDSSHDOWKHVWDWHDSSHOODWHFRXUWKHOGWKDWPXOWLSOH WKHIROORZLQJODQJXDJHLQGLFDWHVLQVXIILFLHQWVXSSRUWIRUWKH DFWVRIGHOLQTXHQF\RQO\mSHUPLWRQHGLVSRVLWLRQFRPPRQWR GHFLVLRQWRELQGKLPRYHUIRUDGXOWDGMXGLFDWLRQ DOOWKHFRPSODLQWVDQGILQGLQJVRIGHOLQTXHQF\l,GDW 7KHHDUOLHUGLVSRVLWLRQLQ5REHUWVRQjVFDVHZDVYDFDWHGVRQR 7KH FRXUW ILQGV DIWHU D IXOO LQYHVWLJDWLRQ LQFOXGLQJ D FRQIOLFWLQJGLVSRVLWLRQVDURVHIURPWKLVLQFLGHQW PHQWDODQGSK\VLFDOH[DPLQDWLRQRIVDLGFKLOGPDGHE\ DGXO\TXDOLILHGSHUVRQVDQGDIWHUIXOOFRQVLGHUDWLRQRI 6WLOO5REHUWVRQjVFODLPUDLVHVWKHTXHVWLRQZKHWKHURQFH WKHFKLOGjVSULRUMXYHQLOHUHFRUGHIIRUWVSUHYLRXVO\PDGH DGHOLQTXHQF\GHWHUPLQDWLRQKDVEHHQPDGHDMXYHQLOHPD\ WR WUHDW DQG UHKDELOLWDWH WKH FKLOG WKH FKLOGjV IDPLO\ EHODWHUGHHPHGDPHQDEOHIRUDGXOWDGMXGLFDWLRQIRUDVHSDUDWH HQYLURQPHQWWKHFKLOGjVVFKRROUHFRUGDQGRWKHUPDWWHUV RIIHQVH DULVLQJ IURP WKH VDPH LQFLGHQW :H KROG WKDW WKH RIHYLGHQFHWKDWWKHUHDUHUHDVRQDEOHJURXQGVWREHOLHYH 'RXEOH sHRSDUG\ &ODXVH GRHV QRW EDU VXFK D SURFHHGLQJ WKDW WKH FKLOG KHUHLQ LV QRW DPHQDEOH WR FDUH RU /HWWLQJWKHSURVHFXWLRQWU\WZLFHWKHLVVXHRIDPHQDELOLW\IRU UHKDELOLWDWLRQ LQ DQ\ IDFLOLW\ GHVLJQHG IRU WKH FDUH DGXOW SURVHFXWLRQ PLJKW DVVXPLQJ MHRSDUG\ DWWDFKHV WR VXSHUYLVLRQDQGUHKDELOLWDWLRQRIGHOLQTXHQWFKLOGUHQ DPHQDELOLW\ GHWHUPLQDWLRQV YLRODWH WKH 'RXEOH sHRSDUG\ &ODXVHjVSURKLELWLRQRQUHOLWLJDWLQJEXWWKDWLVQRWZKDWZH 7KHRQO\HYLGHQFHRQ5REHUWVRQjVMXYHQLOHUHFRUGLVWKDWWKLV KDYHKHUH1RUDVH[SODLQHGEHORZKDV5REHUWVRQEHHQWULHG ZDVKLVILUVWRIIHQVH7KHUHKDGWKXVEHHQQRSUHYLRXVHIIRUWV WZLFHIRUWKHVDPHRIIHQVH7KHUHIRUHWKHVHGRXEOHMHRSDUG\ WRUHKDELOLWDWHKLP7KHUHZDVDOVRVRPHSRVLWLYHHYLGHQFH FRQFHUQVGRQRWWDLQW5REHUWVRQjVFRQYLFWLRQ DERXW KLV IDPLO\ HQYLURQPHQW DQG VFKRRO UHFRUG 7KLV ODQJXDJHWKXVGRHVVHHPDELWIRUPXODLF,QDQDFFRPSOLFH 8QGHU2KLRODZDQDGXOWDGMXGLFDWLRQPD\IROORZMXYHQLOH PXUGHU FDVH ZKHUH WKH MXYHQLOH KDG D PRUH FKHFNHUHG SURFHHGLQJVIRUWKHVDPHRIIHQVHVRORQJDVWKHSULRUMXYHQLOH EDFNJURXQGWKDQ5REHUWVRQjVRQHFRXUWKDVJUDQWHGKDEHDV SURFHHGLQJV DUH OLPLWHG WR GHWHUPLQLQJ WKH MXYHQLOHjV UHOLHIEDVHGRQWKLVNLQGRIJHQHUDOL]HGILQGLQJ6HH3DWWRQY DPHQDELOLW\ WR WUDQVIHU IRU DGXOW DGMXGLFDWLRQ DQG GR QRW 7R\)6XSS'6&6WLOODVWKH6WDWH GHFLGHWKHMXYHQLOHjVJXLOW6HH/DVZHOOY)UH\)G RI2KLRREVHUYHV5REHUWVRQIDFHVDKHDY\EXUGHQLQUHEXWWLQJ WK&LUKROGLQJWKDWDMXYHQLOHDUUDLJQPHQWKHDULQJ WKHMXYHQLOHFRXUWMXGJHjVILQGLQJVRIIDFW7KHTXHVWLRQLV ZDVQRWDQDGMXGLFDWLRQWRZKLFKMHRSDUG\DWWDFKHGZKHUHWKH ZKHWKHUWDNLQJDVDFFXUDWHWKHIDFWVIRXQGWKH\ZHUHHQRXJK FRXUW GLVFXVVHG QHLWKHU WKH QDWXUH RI WKH RIIHQVH QRU WKH WRSURYLGHUHDVRQDEOHVXSSRUWIRUELQGLQJ5REHUWVRQRYHUIRU YROXQWDULQHVVRIWKHSOHD%HFDXVH5REHUWVRQZDVWULHGIRU DGXOW DGMXGLFDWLRQ :KLOH 5REHUWVRQjV UHFRUG GRHV QRW GLIIHUHQWRIIHQVHVDWWKHMXYHQLOHDQGDGXOWOHYHOVWKHFRQFHUQ FRPSHODGMXGLFDWLQJKLPDVDQDGXOWZHKROGWKDWWKHUH LV DGGUHVVHGLQ/DVZHOOLVQRWSUHVHQWHGKHUH 5REHUWVRQY0RUJDQ 1R 1R 5REHUWVRQY0RUJDQ 5REHUWVRQIXUWKHUDUJXHVWKDWDGMXGLFDWLQJDQLQGLYLGXDODV SURSHUW\ ZKLOH KH ZDV VWLOO LQ WKH KRVSLWDO LW FRXOG KDYH DQDGXOWRQFKDUJHVVWHPPLQJIURPDQLQFLGHQWIRUZKLFKWKH FRQILUPHGSULRUWR5REHUWVRQjV'HFHPEHUDGMXGLFDWLRQWKDWD LQGLYLGXDOKDVDOUHDG\EHHQDGMXGLFDWHGGHOLQTXHQWLQMXYHQLOH WKHIW KDG DOVR RFFXUUHG :KLOH WKHUH LV QR JXDUDQWHH WKDW FRXUWFRQVWLWXWHVGRXEOHMHRSDUG\HYHQLIRUGLQDULO\LWZRXOG SXUVXLQJWKDWLQIRUPDWLRQZRXOGKDYHOHGWRXVHIXOWHVWLPRQ\ EHSRVVLEOHWRWU\DGHIHQGDQWIRUVHSDUDWHRIIHQVHV)RUPHUO\ IURP5REHUWVRQjVDFFRPSOLFHVHDUOLHUWKHFRPSOHWHIDLOXUHWR 2KLRODZUHTXLUHGDILQGLQJRIGHOLQTXHQF\EDVHGRQDIXOO SXUVXHVXFKWHVWLPRQ\LVQRWWKHNLQGRIGXHGLOLJHQFHWKDW LQYHVWLJDWLRQ RI WKH IDFWV EHIRUH WUDQVIHUULQJ D MXYHQLOH IRU H[FXVHVVXEVHTXHQWSURVHFXWLRQ6HH6WDWHY7ROEHUW WULDODVDQDGXOW7KLVFRXUWVWUXFNGRZQWKDWSURFHGXUHIRU 1(G 2KLR 8QLWHG 6WDWHV Y :DONHU ) YLRODWLQJWKH'RXEOHsHRSDUG\&ODXVH6HH6LPVY(QJOH 6XSS'+DZDLLDIIjG)GWK&LU )GWK&LUKROGLQJWKDWLWZDVGRXEOHMHRSDUG\ 8QLWHG6WDWHVY%DUNHU)GWK WRDGMXGJHDMXYHQLOHDVGHOLQTXHQWRQDUPHGUREEHU\FKDUJHV &LU5DVKDGY%XUW)GWK&LU%XW ELQG KLP RYHU IRU DGXOW SURFHHGLQJV DQG FKDUJH KLP IRU VHH8QLWHG6WDWHVY'H&OXH)GWK&LU PXUGHUEHFDXVHWKHMXYHQLOHFRXUWDOUHDG\DFWHGDVDWULHURI KROGLQJWKDWWKHJRYHUQPHQWKDGXVHGGXHGLOLJHQFHLQ IDFWVHHDOVR6HOOHUVY0RUULV)GWK&LU VHHNLQJ D WD[ LQGLFWPHQW ZKHUH WKH GHIHQGDQWjV UHIXVDO WR UHPDQGLQJ WR GHWHUPLQH ZKHWKHU DQ HDUOLHU MXYHQLOH FRRSHUDWHKDPSHUHGWKHHDUOLHULQYHVWLJDWLRQ SURFHHGLQJZDVDQDPHQDELOLW\KHDULQJRUDQDGMXGLFDWLRQDV GHOLQTXHQW LPSO\LQJ WKDW WKH ODWWHU ZRXOG UDLVH D GRXEOH 9 MHRSDUG\ EDU WR IXUWKHU SURFHHGLQJV +HUH DOWKRXJK 5REHUWVRQKDGEHHQIRXQGGHOLQTXHQWRQRQHRIIHQVHWKHUH )LQDOO\5REHUWVRQFRPSODLQVRISURFHGXUDOIODZVLQ2KLRjV ZDVRQO\DQDPHQDELOLW\KHDULQJRQWKHVHFRQGRIIHQVHEHIRUH DPHQDELOLW\GHWHUPLQDWLRQSURFHGXUHWKDWKHFODLPVUHQGHULW KLVDGMXGLFDWLRQDVDQDGXOW7KXVWKH6LPVSUREOHPGLGQRW XQFRQVWLWXWLRQDO DQG KH FKDOOHQJHV WKH VXIILFLHQF\ RI WKH LQIHFW5REHUWVRQjVWULDO HYLGHQFHLQWKHUHFRUGWRVXSSRUWWU\LQJKLPDVDQDGXOW7KLV FRXUWKDVSUHYLRXVO\KHOG2KLRjVDPHQDELOLW\GHWHUPLQDWLRQ ,9 SURFHGXUHVWREHFRQVWLWXWLRQDO6HH'HHOYsDJR)G WK&LU$VIRUWKHVXIILFLHQF\RIWKH $V SUHYLRXV VWDWH FRXUWV LQ 2KLR KDYH IRXQG MHRSDUG\ HYLGHQFHWKHMXYHQLOHFRXUWMXGJHIRXQGWKDW5REHUWVRQGLG DWWDFKHV WR D MXYHQLOH SURFHHGLQJ WKDW SXWV DQ RIIHQGHUjV SRRUO\LQVFKRROZKLOHRQSUREDWLRQZDVDOPRVWZKHQWKH OLEHUW\DWULVNVRDVXEVHTXHQWDGMXGLFDWLRQEDVHGRQWKHVDPH DWWDFNRFFXUUHGDQGFRPPLWWHGDFULPHWKDWZDVYHU\YLROHQW FULPH LV EDUUHG E\ WKH FRQVWLWXWLRQDO SURKLELWLRQ DJDLQVW LQQDWXUH7KHMXGJHDOVRGHWHUPLQHGWKDWWKHVDIHW\RIWKH GRXEOHMHRSDUG\6HH6WDWHY3HQURG1(G FRPPXQLW\PLJKWUHTXLUH5REHUWVRQjVFRQILQHPHQWEH\RQG 2KLR&W$SSGLVPLVVLQJRQGRXEOHMHRSDUG\JURXQGV DJH7KHVHIDFWVOHQWVXSSRUWWRKLV0D\WUDQVIHU FKDUJHV DJDLQVW D MXYHQLOH DIWHU WUDQVIHUULQJ IRU DGXOW RUGHUHYHQWKRXJKWKHMXGJHVHHPHGWRLJQRUHWKHIDYRUDEOH DGMXGLFDWLRQZKHUHWKRVHFKDUJHVGXSOLFDWHGRQHVSUHYLRXVO\ WHVWLPRQ\RI5REHUWVRQjVSUREDWLRQRIILFHUDQGVRFLDOZRUNHU DGMXGLFDWHGLQMXYHQLOHFRXUW7KH3HQURGFRXUWUHDVRQHG 1RUGRWKHVHILQGLQJVFRQWUDGLFWWKRVHRIWKHMXYHQLOHFRXUW WKDWm>W@KHMXYHQLOHjVOLEHUW\ZDVSODFHGDWULVNZKHQWKH MXGJHZKRHDUOLHUSODFHG5REHUWVRQRQSUREDWLRQWKDWMXGJH FRXUW SURFHHGHG WR GHWHUPLQH LVVXHVl LQ WKH MXYHQLOH FRXUW VLPSO\IRFXVHGRQGLIIHUHQWIDFWV)RULQVWDQFHWKLVFULPH SURFHHGLQJ ,ELG VHH DOVR %UHHG Y sRQHV 86 ZDV5REHUWVRQjVILUVWRIIHQVH5REHUWVRQKDGEHHQDQKRQRU XSKROGLQJJUDQWRIZULWRIKDEHDVFRUSXVRQGRXEOH VWXGHQW LQ VFKRRO DQG KH FDPH IURP D VXSSRUWLYH KRPH MHRSDUG\ JURXQGV WR D MXYHQLOH ZKR ZDV DGMXGLFDWHG D HQYLURQPHQW$QGRIFRXUVHWKHMXYHQLOHFRXUWLQ'HFHPEHU GHOLQTXHQWRQDUREEHU\FKDUJHWUDQVIHUUHGWRDGXOWFRXUWDQG FRXOG QRW FRQVLGHU 5REHUWVRQjV VFKRRO UHFRUG ZKLOH RQ 5REHUWVRQY0RUJDQ 1R 1R 5REHUWVRQY0RUJDQ ZKHUH WKH VHFRQG SURVHFXWLRQ UHTXLUHV WKH UHOLWLJDWLRQ RI SURVHFXWHGWKHUHRQWKHVDPHFKDUJHEHFDXVHMHRSDUG\KDG IDFWXDOLVVXHVDOUHDG\UHVROYHGE\WKHILUVWl%URZQ86 DWWDFKHGDWWKHMXYHQLOHDGMXGLFDWLRQ6WDWHY5HGGLFN DWQ+RZHYHUWKHFLUFXPVWDQFHFRQWHPSODWHGLQ 1(G2KLR&W$SSLQWHUSUHWLQJ%UHHGYsRQHV %URZQXQGHUZKLFKVXFFHVVLYHSURVHFXWLRQZRXOGEHEDUUHG WRUHTXLUHWKDWDMXYHQLOHFRXUWPDNHDWUDQVIHUGHFLVLRQEHIRUH ZDVZKHQWKHUHKDGEHHQDQHDUOLHU FRQYLFWLRQIRUDOHVVHU FRQGXFWLQJDQDGMXGLFDWRU\KHDULQJEHFDXVHVXFKDKHDULQJ LQFOXGHG RIIHQVH $QG DV DOUHDG\ GLVFXVVHG WKDW GLG QRW SODFHV WKH MXYHQLOHjV OLEHUW\ DW ULVN DQG GRXEOH MHRSDUG\ KDSSHQKHUH SUHFOXGHVIXUWKHUDGMXGLFDWLRQ &7KH'XH'LOLJHQFH([FHSWLRQ $'RXEOHsHRSDUG\ (YHQ LI WKH IDFWV RI WKLV SURVHFXWLRQ ZRXOG RWKHUZLVH 5REHUWVRQ FRQWHQGV WKDW KLV GXDO SURFHHGLQJV UHVHPEOH HVWDEOLVK GRXEOH MHRSDUG\ WKH VWDWH DUJXHV DQG WKH ORZHU WKRVHFRQGHPQHGLQ3HQURG+HDUJXHVWKDWIHORQLRXVDVVDXOW FRXUWVDJUHHGWKDWLWLVVDYHGE\WKHGXHGLOLJHQFHH[FHSWLRQ LV D OHVVHU LQFOXGHG RIIHQVH RI DJJUDYDWHG UREEHU\ ,I WKLV 8QGHUWKDWGRFWULQHWKHUHLVDQH[FHSWLRQWRGRXEOHMHRSDUG\ ZHUH WUXH VHTXHQWLDO SURVHFXWLRQ RI WKH RIIHQVHV ZRXOG mZKHUH WKH 6WDWH LV XQDEOH WR SURFHHG RQ WKH PRUH VHULRXV YLRODWH)LIWK$PHQGPHQWGRXEOHMHRSDUG\SULQFLSOHV2KLR FKDUJHDWWKHRXWVHWEHFDXVHDGGLWLRQDOIDFWVKDYHQRWEHHQ VWDWHFRXUWVKDYHGHWHUPLQHGWKDWIHORQLRXVDVVDXOWLVQRWD GLVFRYHUHGGHVSLWHWKHH[HUFLVHRIGXHGLOLJHQFHl,GDW OHVVHULQFOXGHGRIIHQVHRIDJJUDYDWHGUREEHU\6HH6WDWHY Q 5REHUWVRQ FRQWHQGV WKDW WKH 6WDWH RI 2KLR ZDV QRW %XPSKXV1(G2KLR&W$SS7KHVWDWH GLOLJHQW KHUH VLQFH WKH SROLFH GHWHFWLYH DEDQGRQHG KLV FODLPV WKDW LWV FRXUWVj DQDO\VLV RI WKH UHODWLRQVKLS EHWZHHQ LQYHVWLJDWLRQRIWKHWKHIWRQWKHGLUHFWLRQRIWKHMXYHQLOHFRXUW UREEHU\DQGDVVDXOWELQGVWKLVFRXUW6HH)UDQNOLQY)UDQFLV SURVHFXWRUEHIRUH5REHUWVRQjVDGMXGLFDWLRQDVGHOLQTXHQW )G WK &LU KROGLQJ WKDW WKLV FRXUW PXVWGHIHUWRVWDWHVXSUHPHFRXUWXQOHVVLWKDVDSSOLHGIHGHUDO :HGRQRWUHDFKWKHGXHGLOLJHQFHLVVXHEHFDXVHQRGRXEOH ODZXQUHDVRQDEO\+RZHYHUWKHVWDWHPLVWDNHVWKHGHIHUHQFH MHRSDUG\ H[FHSWLRQ LV QHHGHG KHUH +RZHYHU ZH DUH QRW JLYHQWRVWDWHFRXUWLQWHUSUHWDWLRQVRIIHGHUDOVWDWXWHVZLWKWKDW LPSUHVVHG ZLWK WKH SXUSRUWHG GLOLJHQFH RQ WKH VWDWHjV SDUW JLYHQWRVWDWHFRXUWLQWHUSUHWDWLRQVRIIHGHUDOFRQVWLWXWLRQDO 7KHVWDWHFRQWHQGVWKDWWKHHYLGHQFHQHFHVVDU\WRSURYHWKHIW ODZ$VWDWHFRXUWjVGHWHUPLQDWLRQRIZKHWKHURIIHQVHVDUHWKH GLG QRW EHFRPH DYDLODEOH XQWLO DIWHU 5REHUWVRQjV IHORQLRXV VDPH IRU GRXEOH MHRSDUG\ SXUSRVHV LV QRW VXEMHFW WR D DVVDXOWDGMXGLFDWLRQEHFDXVHWKHYLFWLPGLGQRWFRQILUPWKH SUHVXPSWLRQRIFRUUHFWQHVVXQGHU86&H6HH DUWLFOHVKHORVWXQWLOOHDYLQJWKHKRVSLWDOLQ0DUFKDQG 3U\RUY5RVH)GWK&LU 5REHUWVRQjVDFFRPSOLFHVGLGQRWWHVWLI\WRVHHLQJKLPHPSW\ )LQOH\jV SRFNHWV DIWHU WKH DVVDXOW XQWLO 0DUFK 7KH 7R GHWHUPLQH ZKHWKHU RQH FKDUJH LV D OHVVHU LQFOXGHG GLVWULFWFRXUWDJUHHGWKDWm>W@KHIDFWVQHFHVVDU\WRSURVHFXWH RIIHQVH RI DQRWKHU WKLV FRXUW ORRNV WR mZKHWKHU HDFK 5REHUWVRQ ZHUH XQFRQILUPHG E\ WKH YLFWLP XQWLO 0DUFK RI SURYLVLRQUHTXLUHVSURRIRIDIDFWZKLFKWKHRWKHUGRHVQRWl l/LNHZLVHWKH2KLRVWDWHFRXUWIRXQGWKDWmWKHSROLFH %ORFNEXUJHUY8QLWHG6WDWHV86,Q KDGQRZLWQHVVHVZKRFRXOGVSHFLILFDOO\OLQN5REHUWVRQWRWKH SURVFULELQJIHORQLRXVDVVDXOW2KLR5HYLVHG&RGH WKHIW XQWLO 0DUFK ZKHQ 3HVWHU WROG SROLFH KH VDZ UHDGV m1R SHUVRQ VKDOO NQRZLQJO\ >F@DXVH VHULRXV 5REHUWVRQJRLQJWKURXJK)LQOH\jVSRFNHWVl SK\VLFDOKDUPWRDQRWKHUl,QSURVFULELQJDJJUDYDWHG UREEHU\2KLR5HYLVHG&RGHUHDGVm1RSHUVRQLQ +RZHYHUWUXHWKHVHIDFWVZHUHQRWXQGLVFRYHUDEOHEHIRUH DWWHPSWLQJ RU FRPPLWWLQJ D WKHIW RIIHQVH RU LQ IOHHLQJ 0DUFK+DGWKHSROLFHIROORZHGXSWKHOHDGVJLYHQE\ LPPHGLDWHO\DIWHUWKHDWWHPSWRURIIHQVHVKDOOGRDQ\RIWKH )LQOH\jVIDPLO\PHPEHUVRUWDONHGWR)LQOH\DERXWPLVVLQJ 5REHUWVRQY0RUJDQ 1R 1R 5REHUWVRQY0RUJDQ IROORZLQJ,QIOLFWRUDWWHPSWWRLQIOLFWVHULRXVSK\VLFDO WHVW6HH*UDG\Y&RUELQ86RYHUUXOHGE\ KDUP RQ DQRWKHUl %\ D GHIDXOW UXOH LQ VWDWH ODZ WKH 8QLWHG6WDWHVY'L[RQ86 mUHFNOHVVQHVVlVWDQGDUGRIFXOSDELOLW\DSSOLHVWRWKHmVHULRXV SK\VLFDOKDUPl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mDOOLHG RIIHQVHV RI VLPLODU MHRSDUG\ ZDV IRXQG WKH HOHPHQWV RI WKH FULPH ZHUH PRUH LPSRUWlXQGHUWKHVWDWHjVPXOWLSOHFKDUJHVVWDWXWH6WDWHY GLVWLQFWRUHOVHWKHUHZDVDVHSDUDWLRQLQWLPHEHWZHHQWKH $OOHQ 1(G 2KLR &W $SS RIIHQVHVFKDUJHGVRWKDWWKH\ZHUHFOHDUO\GLIIHUHQWFULPLQDO %HFDXVHWKHRIIHQVHVDUHVHSDUDWHO\SXQLVKDEOH5REHUWVRQj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n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