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 :,//,$0 & 6&+$8% s5 ; 3HWLWLRQHU$SSHOOHH    1R Y  !  :(67 0,&+,*$1 3/80%,1*  +($7,1* ,1&  5HVSRQGHQW$SSHOODQW   1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH:HVWHUQ'LVWULFWRI0LFKLJDQDW*UDQG5DSLGV 1Rn5LFKDUG$(QVOHQ&KLHI'LVWULFWsXGJH $UJXHG1RYHPEHU 'HFLGHGDQG)LOHG)HEUXDU\ %HIRUH'$8*+75( @l  86& † D 6HFWLRQ  VWDWHV LQ UHOHYDQW SDUW WKDW m>H@PSOR\HHV VKDOO KDYH WKH ULJKW WR VHOIRUJDQL]DWLRQ WR IRUP MRLQ RU DVVLVW ODERU RUJDQL]DWLRQV WR EDUJDLQ FROOHFWLYHO\ WKURXJK UHSUHVHQWDWLYHV RI WKHLU RZQ FKRRVLQJ DQG WR HQJDJH LQ RWKHU FRQFHUWHG DFWLYLWLHV IRU WKH SXUSRVH RI FROOHFWLYH EDUJDLQLQJ RU RWKHU PXWXDO DLG RU SURWHFWLRQ    l  86& †  6HFWLRQ D VWDWHV LQ SDUW WKDW m>L@W VKDOO EH DQ XQIDLU ODERU SUDFWLFH IRU DQ HPSOR\HU    E\ GLVFULPLQDWLRQ LQ UHJDUG WR KLUH RU WHQXUH RI HPSOR\PHQW RU DQ\ WHUP RU FRQGLWLRQ RI HPSOR\PHQW WR HQFRXUDJH RU GLVFRXUDJH PHPEHUVKLS LQ DQ\ ODERU RUJDQL]DWLRQ    l  86& † D  6FKDXEY:HVW0LFKLJDQ 1R 1R 6FKDXEY:HVW0LFKLJDQ  3OXPELQJ +HDWLQJ 3OXPELQJ +HDWLQJ 6FKDXEjV SHWLWLRQ VRXJKW WR HQMRLQ :03 + IURP EHFDXVHWKHJRDORID†MLQMXQFWLRQLVWRDFKLHYHWKHVWDWXV GLVFULPLQDWLQJ DJDLQVW LWV HPSOR\HHV VR DV WR GLVFRXUDJH TXRDQGEHFDXVHWKHFKDOOHQJHGSURYLVLRQKDVEHHQLQSODFH MRLQLQJDXQLRQRUSXQLVKWKRVHHPSOR\HHVZKRKDYHMRLQHGD LQ :03 +jV HPSOR\HH KDQGERRN IRU DW OHDVW WKH ODVW WHQ XQLRQ WR UHLQVWDWH :DJQHU WR KLV IRUPHU SRVLWLRQ DV D \HDUVWKHGLVWULFWFRXUWVKRXOGQRWKDYHRUGHUHGWKHUHPRYDO SOXPELQJDSSUHQWLFHZRUNLQJDWMREVLWHVDQGWRVXVSHQGWKH RI WKH HPSOR\HH KDQGERRN SURYLVLRQ EHFDXVH LWV H[LVWHQFH FRPSDQ\jV XVH RI WKH DOOHJHGO\ DQWLXQLRQ SURYLVLRQ LQ LWV ZDVWKHVWDWXVTXR:03 +IDLOVWRXQGHUVWDQGKRZHYHU HPSOR\HHKDQGERRN mWKDWWKHVWDWXVTXRLVWKHVWDWHRIDIIDLUVH[LVWLQJEHIRUHWKH DOOHJHGXQIDLUODERUSUDFWLFHVWRRNSODFHl)U\H)GDW 0DQ\ RI WKH NH\ IDFWV LQ WKLV FDVH DUH GLVSXWHG  :KHQ 6FKDXEDUJXHVWKDWWKHHPSOR\HHKDQGERRNSURYLVLRQ GLVSXWHGHDFKSDUW\jVYHUVLRQRIWKHIDFWVZLOOEHGLVFXVVHG LWVHOI LV D YLRODWLRQ RI WKH 1/5$ LQ WKDW LW HQFRXUDJHV WKH sHURPH6FKDXHU:03 +jV9LFH3UHVLGHQW6XSHULQWHQGHQW UHSRUWLQJ RI DQ\ ZRUNHUV ZKR DWWHPSW WR VROLFLW RWKHU KLUHG0LNNHO:DJQHUDVDQDSSUHQWLFHSOXPEHURQ'HFHPEHU HPSOR\HHVWRMRLQDXQLRQDQGWKDWWRUHVWRUH:03 +WRLWV $IWHUDERXWQLQHW\GD\V:DJQHUUHFHLYHGDILIW\ VWDWXV EHIRUH WKH DOOHJHG XQIDLU ODERU SUDFWLFH WRRN SODFH FHQWUDLVHLQKLVKRXUO\ZDJH:DJQHUFODLPVDQG:03 + UHTXLUHVWKHUHPRYDORIWKHVXVSHFWSURYLVLRQ7KHGLVWULFW GRHVQRWGHQ\WKDWKHUHFHLYHGIDYRUDEOHFRPPHQWVRQKLV FRXUW ZKR VWDWHG WKDW WKH SURYLVLRQ mPD\ ZHOO YLRODWH WKH ZRUN SHUIRUPDQFH DQG WKDW KH ZDV DVVLJQHG DV HDUO\ DV VWDWXWH>@ls$DWGLGQRWDEXVHLWVGLVFUHWLRQLQRUGHULQJ )HEUXDU\WRFRQVWUXFWLRQSURMHFWVLQZKLFKKHZRUNHG WKHUHPRYDORIWKHVHQWHQFHLQTXHVWLRQ XQVXSHUYLVHG ,,,&21&/86,21 ,Q:DJQHUjVDIILGDYLWKHVWDWHVWKDWLQODWH0DUFKKH EHJDQWDONLQJZLWKRWKHUPHPEHUVRIKLVFUHZDERXWKLVUHFHQW )RU WKH IRUHJRLQJ UHDVRQV ZH DIILUP WKH GLVWULFW FRXUWjV DFFHSWDQFHWR/RFDO8QLRQ1RRIWKH8QLWHG$VVRFLDWLRQ GHFLVLRQ WKDW WKHUH ZDV UHDVRQDEOH FDXVH WR EHOLHYH WKDW RI sRXUQH\PHQ DQG $SSUHQWLFHV RI WKH 3OXPELQJ DQG 3LSH :03 + KDG FRPPLWWHG XQIDLU ODERU SUDFWLFHV DQG WKDW )LWWLQJ,QGXVWU\m8QLRQl:DJQHUFODLPVWKDWKHDQVZHUHG 6FKDXEjVSURSRVHGLQMXQFWLYHUHOLHIZDVMXVWDQGSURSHU:H FUHZPHPEHUVjTXHVWLRQVDQGSDVVHGRXW8QLRQOLWHUDWXUH2Q PRGLI\KRZHYHUWKHGLVWULFWFRXUWjVLQWHULPLQMXQFWLYHRUGHU RUDERXW0D\:DJQHUFODLPVWKDWKLVIRUHPDQ*UHJ VRWKDWRQO\WKHFKDOOHQJHGVHQWHQFHLQ:03 +jVHPSOR\HH *RROHDVNHGKLPDERXWWKH8QLRQjVSHQVLRQDQGKHDOWKFDUH KDQGERRN DQG QRW WKH HQWLUH VHFWLRQ RQ XQLRQV ZLOO EH EHQHILWV*RROHFODLPV:DJQHUQHYHUVSRNHZLWKKLPDERXW UHPRYHG:H$)),50WKHGLVWULFWFRXUWjVGHFLVLRQJUDQWLQJ WKHSRVVLELOLW\RIKDYLQJDXQLRQDW:03 +LQVWHDG*RROH D†MLQMXQFWLRQLQWKLVFDVH FODLPVWKDW:DJQHUWULHGRQVHYHUDORFFDVLRQVWRFRQYLQFH *RROH WR OHDYH :03 + WR ZRUN IRU D 8QLRQ FRQWUDFWRU :DJQHUFODLPVWKDWRQRUDERXW0D\WKHGD\DIWHU VSHDNLQJ ZLWK *RROH DERXW 8QLRQ EHQHILWV VRPH FUHZ PHPEHUV EHJDQ FDOOLQJ KLP mXQLRQ ER\l DQG YHUEDOO\ KDUDVVLQJKLPIRUKLVXQLRQVXSSRUWs$DW 2Q0D\DIWHUFDOOLQJLQVLFNWKHSUHYLRXVGD\ :DJQHUZDVWUDQVIHUUHGWR:03 +jVVKRSIURPZRUNLQJDW WKHILHOGVLWH7KHVKRSLVORFDWHGULJKWDFURVVWKHVWUHHWIURP  6FKDXEY:HVW0LFKLJDQ 1R 1R 6FKDXEY:HVW0LFKLJDQ  3OXPELQJ +HDWLQJ 3OXPELQJ +HDWLQJ GLVWULFWFRXUWKDGDFFHVVLWDSSHDUVWKDW:DJQHUZDVWKHRQO\ :03 +jVRIILFH$VLQVWUXFWHGE\6FKDXHU:DJQHUZDVWR HPSOR\HHDFWLQJDVDXQLRQRUJDQL]HUDW:03 +$VWKH SHUIRUPVROGHULQJZRUNDWWKHVKRSE\KLPVHOI1RRQHHOVH GLVWULFWFRXUWVWDWHG ZDVZRUNLQJDWWKHVKRSDWWKLVWLPH6FKDXHUVWDWHVWKDWKH WROG:DJQHUWKDWKLVWUDQVIHUZDVLQQRZD\DSXQLVKPHQWRU ,I:DJQHULVQRWUHLQVWDWHGWKHUHZRXOGEHQRRQHDWWKH GHPRWLRQmDQGWKDWWKHPRYHZDVSDUWRIWKHQRUPDOWUDLQLQJ FRPSDQ\ RUJDQL]LQJ IRU WKH XQLRQ XQWLO WKH 1/5% SURFHVVVLQFHDOODSSUHQWLFHVQHHGWROHDUQKRZWRVROGHUZLWK UHDFKHVDILQDOGHFLVLRQRQWKHPHULWVDWZKLFKWLPHWKH\ VXSHUYLVLRQl  s$ DW   5LFKDUG :KHHOHU WKH HPSOR\HH PD\ UHTXLUH UHLQVWDWHPHQW RI :DJQHU  $VVXPLQJ WKH ZKR KDG EHHQ ZRUNLQJ LQ WKH VKRS EHIRUH :DJQHU KDG XQLRQjVRUJDQL]DWLRQDOHIIRUWVZHUHGHYHORSLQJLQVRPH LQMXUHGKLVDUPZKLOHRQWKHMRE6FKDXHUFODLPVWKDW:DJQHU ZD\DQGWKDW:DJQHUZDVPDNLQJSURJUHVVRQEHKDOIRI ZDVWUDQVIHUUHGWRWKHMREEHFDXVHVRPHRQHKDGWRILOOLQIRU WKHXQLRQWKHDEVHQFHRIWKHRQO\XQLRQRUJDQL]HUDWWKH :KHHOHU DQG EHFDXVH ZRUNLQJ LQ WKH VKRS ZDV D JRRG FRPSDQ\IRUDQH[WHQGHGSHULRGRIWLPHFRXOGLUUHSDUDEO\ WUDLQLQJRSSRUWXQLW\IRUDSSUHQWLFHVWRZRUNRQWKHLUVROGHULQJ KDUPWKHXQLRQjVFKDQ>F@HVRIRUJDQL]LQJWKHHPSOR\HHV DQGZHOGLQJVNLOOVDQRSSRUWXQLW\WKDW:DJQHUKDGQRW\HW EHHQJLYHQ s$ DW   7KHVH FRQFOXVLRQV n WKDW UHLQVWDWHPHQW HIIHFWXDWHV WKH SROLFLHV RI WKH 1/5$ KHOSV WR DFKLHYH WKH 6FKDXHU DQG 0DUN 'REELQV WKH 3UHVLGHQW RI :03 + VWDWXV TXR DQG FRPEDWV WKH VXEVWDQWLDOO\ GLPLQLVKHG VWDWHWKDWVRPHWLPHDIWHUSPRQ0D\WKH\ SURVSHFWV RI XQLRQL]LQJ :03 + LI :DJQHU ZHUH QRW WR FRQGXFWHGDUHJXODUSHUIRUPDQFHUHYLHZRI*UHJ*RROH$W UHWXUQXQWLODIWHUWKH%RDUGUHDFKHGDILQDOUHVROXWLRQRIWKLV WKLVUHYLHZ*RROHWROGWKHPWKDW:DJQHUZDVGLVWXUELQJKLP FDVHnDUHVXSSRUWHGE\WKHHYLGHQFH DQGRWKHUPHPEHUVRIWKHFUHZE\WU\LQJWRmHQJDJHWKHPLQ QRQZRUNUHODWHGGLVFXVVLRQVSULQFLSDOO\DERXWXQLRQLVVXHVl  5HPRYDO RI WKH 6XVSHFW (PSOR\HH +DQGERRN s$DW%RWKPHQDOVRFODLPWKDW*RROHWROGWKHPWKDW 3URYLVLRQ :DJQHU KDG WULHG WR FRQYLQFH *RROH WR OHDYH :03 + WR ZRUNIRUD8QLRQFRQWUDFWRU6FKDXHUFODLPVWKDWSULRUWRWKLV ,QKLVSHWLWLRQIRUD†MLQMXQFWLRQ6FKDXEFKDOOHQJHG GLVFXVVLRQ ZLWK *RROH KH mKDG QR NQRZOHGJH WKDW 0U RQO\WKDWSURYLVLRQRI:03 +jVHPSOR\HHKDQGERRNZKLFK :DJQHUVXSSRUWHGDXQLRQRUZDVHQJDJLQJLQXQLRQDFWLYLW\l DUJXDEO\HQFRXUDJHGHPSOR\HHVWRUHSRUWWRPDQDJHPHQWDQ\ s$DW ZRUNHUVZKRZHUHVROLFLWLQJRWKHUHPSOR\HHVWRMRLQDXQLRQ 6HH VXSUD QRWH   1HYHUWKHOHVV ZKHQ JUDQWLQJ 6FKDXEjV 7KH QH[W GD\ :DJQHUjV VHFRQG GD\ LQ WKH VKRS KLV UHTXHVWIRUDQLQMXQFWLRQWKHGLVWULFWFRXUWRUGHUHG:03 + ZRUNVWDWLRQ ZDV PRYHG IURP WKH EDFN RI WKH VKRS WR WKH WR UHPRYH WKH HQWLUH VHFWLRQ RI LWV KDQGERRN LQ ZKLFK WKH JDUDJHDUHDLQWKHVDPHEXLOGLQJ)URPWKLVORFDWLRQ6FKDXHU FKDOOHQJHGSURYLVLRQZDVORFDWHG$WRUDODUJXPHQWFRXQVHO FRXOG REVHUYH :DJQHUjV ZRUN IURP KLV RIILFH DFURVV WKH IRU6FKDXEDJUHHGWKDWVKRXOGZHDIILUPWKHGLVWULFWFRXUWjV VWUHHW6FKDXHUFODLPVWKDW:DJQHUjVZRUNVWDWLRQZDVPRYHG GHFLVLRQWRUHPRYHWKHFKDOOHQJHGKDQGERRNSURYLVLRQWKH EHFDXVH:DJQHUKDGFRPSODLQHGDERXWWKHKHDWDQGOLJKWLQ GLVWULFWFRXUWjVGHFLVLRQWRUHPRYHDQHQWLUHVHFWLRQIURPWKH WKHEDFNRIWKHVKRSDQGEHFDXVHLQOLJKWRI:KHHOHUjVUHFHQW KDQGERRN FRXOG EH PRGLILHG VR WKDW RQO\ WKH FKDOOHQJHG LQMXU\ PRYLQJ WKH ZRUNVWDWLRQ ZRXOG DOORZ 6FKDXHU WR VHQWHQFHZRXOGEHUHPRYHG PRQLWRUIRULQMXULHVPRUHHDVLO\IURPKLVRIILFHZLQGRZ ,QUHVSRQVHWRWKHGLVWULFWFRXUWjVGHFLVLRQWRUHPRYHWKH FKDOOHQJHG KDQGERRN SURYLVLRQ :03 + DUJXHV WKDW  6FKDXEY:HVW0LFKLJDQ 1R 1R 6FKDXEY:HVW0LFKLJDQ  3OXPELQJ +HDWLQJ 3OXPELQJ +HDWLQJ 2Q 0D\   :DJQHUjV 8QLRQ ID[HG D QRWLFH WR  *HQHUDO2UGHU(QMRLQLQJ'LVFULPLQDWLRQ$JDLQVW 'REELQVLQIRUPLQJKLPWKDW:DJQHUZDVD8QLRQRUJDQL]HU (PSOR\HHV:KR(QJDJH,Q8QLRQ$FWLYLWLHV 7KHQH[WGD\6FKDXHUDSSURDFKHG:DJQHULQWKHVKRSDQG WROGKLPWKDWKHDQG'REELQVZDQWHGWRVSHDNZLWKKLPLQWKH 7KLV SRUWLRQ RI WKH GLVWULFW FRXUWjV LQMXQFWLRQ FDQQRW EH RIILFH:DJQHUFODLPVWKDWZKHQ6FKDXHUDSSURDFKHGKLPLQ FRQVLGHUHGDQDEXVHRIGLVFUHWLRQ7KHGLVWULFWFRXUWFLWLQJ WKHVKRSWKDWPRUQLQJ6FKDXHUZDVKROGLQJDSLHFHRISDSHU (LVHQEHUJY:HOOLQJWRQ+DOO1XUVLQJ+RPH,QF)G LQKLVKDQGWKDW:DJQHUUHFRJQL]HGKDGWKHOHWWHUKHDGRIKLV   G &LU  VWDWHG WKDW WKLV SRUWLRQ RI 8QLRQjV/RFDORQLW6FKDXHUFODLPVWKDWKHQHYHUVDZ 6FKDXEjVSURSRVHGUHOLHIZDVmMXVWDQGSURSHUEHFDXVHLWLV QRUSRVVHVVHGDFRS\RIWKHOHWWHUWKDWWKH8QLRQKDGID[HGWR EDVHG RQ WKH UHDVRQDEOH FRQFOXVLRQ WKDW WKH HIIHFWV RI WKH :03 + FRPSDQ\jV XQIDLU ODERU SUDFWLFHV ZLOO µOLQJHUj    ZLWKRXW VXFKDQRUGHUDQGWKDWHPSOR\HHV>j@DELOLW\WRH[HUFLVHWKHLU ,QWKHRIILFH:DJQHUFODLPVWKDW'REELQVWROG:DJQHUWKDW ULJKWVWRMRLQDXQLRQRUQRWZLOOEHFKLOOHGLIVXFKDQRUGHULV KH KDG GLVFRYHUHG WKDW :DJQHU ZDV DWWHPSWLQJ WR FRHUFH QRWLVVXHGls$DW7KLVDVSHFWRIWKHGLVWULFWFRXUWj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jTXHVWLRQVDERXWWKH HQVXUHV :03 +jV HPSOR\HHV WKDW WKH\ ZLOO QRW EH 8QLRQDQGWKDWKHKDGQRWEHHQRUJDQL]LQJ:DJQHUWKHQ GLVFULPLQDWHGDJDLQVWLIWKH\DWWHPSWWROHDUQPRUHDERXWWKH FODLPV WKDW 'REELQV DVNHG KLP ZKDW RWKHU HPSOR\HHV KDG SRVVLELOLW\ RI MRLQLQJ D XQLRQ RU HQJDJH LQ RWKHU XQLRQ EHHQ DVNLQJ TXHVWLRQV DERXW WKH 8QLRQ D SRLQW ZKLFK DFWLYLWLHV  $UJXDEO\ LI :03 +j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mWKH VWDWH RI DIIDLUV H[LVWLQJ EHIRUHWKHDOOHJHGXQIDLUODERUSUDFWLFHVWRRNSODFH>@l)U\HY 2Q sXQH   DQG sXO\   WKH 8QLRQ ILOHG DQ 6SHFLDOW\(QYHORSH,QF)GWK&LU XQIDLUODERUSUDFWLFHFKDUJHDQGDQDPHQGHGFKDUJHDOOHJLQJ DQGJUDQWLQJWKLVUHOLHIFDQQRWEHFRQVLGHUHGDQDEXVHRIWKH WKDW:03 +KDGGLVFULPLQDWRULO\WUDQVIHUUHGLQWHUURJDWHG GLVWULFWFRXUWjVGLVFUHWLRQ DQGGLVFKDUJHG:DJQHUEHFDXVHRIKLVXQLRQDFWLYLWLHV$Q XQIDLU ODERU SUDFWLFH SURFHHGLQJ ZDV KHOG EHIRUH DQ 7KH5HLQVWDWHPHQWRI:DJQHU DGPLQLVWUDWLYHODZMXGJHm$/slRQ2FWREHU7KH $/sKHOGWKDW:03 +jVHPSOR\HHKDQGERRNSURYLVLRQDV 7KH GLVWULFW FRXUWjV RUGHU KROGLQJ WKH UHLQVWDWHPHQW RI ZHOODVWKHFRPSDQ\jVUHDVVLJQLQJLVRODWLQJDQGGLVFKDUJLQJ :DJQHUWRKLVIRUPHUSRVLWLRQWREHMXVWDQGSURSHULVQRWDQ RI :DJQHU FRQVWLWXWHG XQIDLU ODERU SUDFWLFHV  :DJQHUjV DEXVH RI GLVFUHWLRQ  *LYHQ WKH OLPLWHG IDFWV WR ZKLFK WKH  6FKDXEY:HVW0LFKLJDQ 1R 1R 6FKDXEY:HVW0LFKLJDQ  3OXPELQJ +HDWLQJ 3OXPELQJ +HDWLQJ XQLRQDFWLYLW\WKHFRPSDQ\jVDUJXPHQWVLPSO\VKRZVWKDWWKH 8QLRQKDVILOHGH[FHSWLRQVWRWKH$/sjVGHFLVLRQ7KH$/sjV IDFWVFDQEHLQWHUSUHWHGLQGLIIHUHQWZD\V7KDWWKHHYLGHQFH GHFLVLRQ LV RQO\ D UHFRPPHQGDWLRQ ZKLFK UHTXLUHV WKH FDQ EH LQWHUSUHWHG GLIIHUHQWO\ GRHV QRW PDNH WKH GLVWULFW %RDUGjVUHVROXWLRQRIWKH8QLRQjVH[FHSWLRQVWRWKDWGHFLVLRQ FRXUWjVIDFWXDOILQGLQJVFOHDUO\HUURQHRXV6HHLG*RWWIULHG .REHOOY8QLWHG3DSHUZRUNHUV,QWjO8QLRQ)G )GDW WK&LU %,QMXQFWLYH5HOLHILVmsXVWDQG3URSHUl 2Q1RYHPEHUWKHGLVWULFWFRXUWKHDUGDUJXPHQWV RQ6FKDXEjV†MSHWLWLRQIRUWHPSRUDU\LQMXQFWLYHUHOLHI 7KHGLVWULFWFRXUWjVGHFLVLRQWKDWWKHUHTXHVWHGLQMXQFWLYH SHQGLQJ ILQDO UHVROXWLRQ RI WKH XQIDLU ODERU SUDFWLFH UHOLHIZDVMXVWDQGSURSHULQWKLVFDVHFDQRQO\EHRYHUWXUQHG SURFHHGLQJE\WKH%RDUG7KHGLVWULFWFRXUWUXOHGIURPWKH LIWKLVFRXUWILQGVWKDWGHFLVLRQWREHDQDEXVHRIGLVFUHWLRQ EHQFKWKDWWKHUHZDVmUHDVRQDEOHFDXVHlWREHOLHYHWKDWXQIDLU .REHOO)GDW7KLVFLUFXLWKDVH[SODLQHGWKDW ODERU SUDFWLFHV KDG RFFXUUHG DQG WKDW 6FKDXEjV SURSRVHG &RQJUHVVDOORZHGIRUm>†@MLQMXQFWLRQVEHFDXVHLQVRPH LQMXQFWLYHUHOLHIZDVmMXVWDQGSURSHUls$DW7KXV FDVHV WKH HQIRUFHPHQW RI D %RDUG RUGHU DIWHU WKH %RDUGjV WKHGLVWULFWFRXUWJUDQWHGWKHLQWHULPLQMXQFWLRQDQGRUGHUHG QRUPDOSURFHVVHVLVLQHIIHFWLYHWRXQGRWKHHIIHFWVRIXQIDLU LQWHUDOLDWKDW6FKDXEEHUHLQVWDWHGWRKLVIRUPHUSRVLWLRQDW ODERUSUDFWLFHVl)OHLVFKXW)GDW7KHGLVWULFWFRXUW :03 +:03 +DSSHDOHGWKHGLVWULFWFRXUWjVGHFLVLRQ PXVWGHWHUPLQHZKHWKHUmLWLVLQWKHSXEOLFLQWHUHVWWRJUDQW JUDQWLQJWKHLQMXQFWLRQWRWKLVFRXUW WKHLQMXQFWLRQVRDVWRHIIHFWXDWHWKHSROLFLHVRIWKH1DWLRQDO /DERU5HODWLRQV$FWRUWRIXOILOOWKHUHPHGLDOIXQFWLRQRIWKH ,,$1$/<6,6 %RDUGl,GTXRWLQJ(LVHQEHUJY/HQDSH3URGV,QF )G   G &LU   7KH JRDO RI D † M 3URFHHGLQJVSXUVXDQWWR†MDUHVXERUGLQDWHWRWKHXQIDLU LQMXQFWLRQLVWRSUHVHUYHWKHVWDWXVTXRSHQGLQJFRPSOHWLRQRI ODERU SUDFWLFH SURFHHGLQJV WR EH KHDUG EHIRUH WKH %RDUG WKH%RDUGjVXQIDLUODERUSUDFWLFHSURFHHGLQJV)OHLVFKXW )OHLVFKXWY1L[RQ'HWURLW'LHVHO,QF)GWK )GDW &LUm7KHGLVWULFWFRXUWVLQWKHLUDQDO\VLVXQGHUM DUHQRWWRDGMXGLFDWHWKHPHULWVRIWKHXQIDLUODERUSUDFWLFH 7KHGLVWULFWFRXUWjVJUDQWRILQMXQFWLYHUHOLHILQWKLVFDVHKDG FDVHl,G7RLVVXHD†MLQMXQFWLRQWKHGLVWULFWFRXUWILUVW WKUHH FRPSRQHQWV   D JHQHUDO RUGHU HQMRLQLQJ :03 + PXVW ILQG WKDW WKHUH LV mUHDVRQDEOH FDXVHl WR EHOLHYH WKDW IURP GLVFKDUJLQJ WUDQVIHUULQJ LQWHUURJDWLQJ RU :03 + KDV FRPPLWWHG XQIDLU ODERU SUDFWLFHV ,G DW  GLVFULPLQDWLQJ DJDLQVW HPSOR\HHV ZKR HQJDJH LQ XQLRQ 6HFRQGLIUHDVRQDEOHFDXVHH[LVWVWKHFRXUWPXVWGHWHUPLQH DFWLYLWLHVRUZKRH[SUHVVLQWHUHVWLQDQ\ODERURUJDQL]DWLRQ ZKHWKHU LQMXQFWLYH UHOLHI LV mMXVW DQG SURSHUl  ,G  $Q  DQ RUGHU UHTXLULQJ :03 + WR UHLQVWDWH WHPSRUDULO\ LQMXQFWLRQPD\EHJUDQWHGRQO\LIERWKRIWKHVHVWHSVDUHPHW :DJQHU WR KLV IRUPHU SRVLWLRQ DQG  DQ RUGHU UHTXLULQJ :03 +WRUHPRYHWKHVXVSHFWODQJXDJHIURPLWVHPSOR\HH $5HDVRQDEOH&DXVH KDQGERRN  (DFK SRUWLRQ RI WKH FRXUWjV LQWHULP LQMXQFWLYH UHOLHIZLOOEHDGGUHVVHGLQWXUQ 6FKDXEjV EXUGHQ RI HVWDEOLVKLQJ UHDVRQDEOH FDXVH LV mUHODWLYHO\ LQVXEVWDQWLDOl  ,G  6FKDXE QHHG QRW SURYH D YLRODWLRQRIWKH1/5$QRUHYHQFRQYLQFHWKHGLVWULFWFRXUWRI WKHYDOLGLW\RIWKH%RDUGjVWKHRU\RIOLDELOLW\LQVWHDGKHQHHG RQO\VKRZWKDWWKH%RDUGjVOHJDOmWKHRU\LVVXEVWDQWLDODQGQRW IULYRORXVl,GTXRWLQJ*RWWIULHGY)UDQNHO)G  6FKDXEY:HVW0LFKLJDQ 1R 1R 6FKDXEY:HVW0LFKLJDQ  3OXPELQJ +HDWLQJ 3OXPELQJ +HDWLQJ  WK &LU   :KHWKHU WKH %RDUGjV OHJDO WKHRU\ LV DFWLYLWLHV7KHIDFWVVKRZWKDWVRRQDIWHU:DJQHUVSRNHZLWK VXEVWDQWLDO LV D TXHVWLRQ RI ODZ WKDW ZH UHYLHZ GH QRYR HPSOR\HHV DERXW KLV LQYROYHPHQW ZLWK D XQLRQ KH ZDV .REHOO)GDW6FKDXEPXVWDOVRVKRZWKDWWKH YHUEDOO\KDUDVVHGDQGWUDQVIHUUHGIURPWKHMREVLWHZKHUHKH IDFWVRIWKLVFDVHDUHFRQVLVWHQWZLWKWKH%RDUGjVOHJDOWKHRU\ ZRUNHG ZLWK RWKHU FUHZ PHPEHUV WR D SRVLWLRQ LQ WKH )OHLVFKXW)GDW:KHWKHUWKHIDFWVDUHFRQVLVWHQW FRPSDQ\ VKRS ZKHUH KH ZRUNHG E\ KLPVHOI  7KH IDFWV ZLWKDQGVDWLVI\WKH%RDUGjVOHJDOWKHRU\LVDTXHVWLRQRIIDFW IXUWKHU VKRZ WKDW WKH GD\ DIWHU *RROH UHSRUWHG :DJQHUjV ZHUHYLHZRQO\IRUFOHDUHUURU.REHOO)GDW EHKDYLRUWR6FKDXHUDQG'REELQV:DJQHUjVZRUNVWDWLRQZDV PRYHGIURPWKHEDFNRIWKHVKRSWRWKHJDUDJHDUHDZKHUH $Q LPSRUWDQW SRLQW WR UHPHPEHU LQ UHYLHZLQJ D GLVWULFW 6FKDXHU FRXOG PRQLWRU :DJQHUjV DFWLYLWLHV IURP KLV RIILFH FRXUWjVGHWHUPLQDWLRQRIUHDVRQDEOHFDXVHLVWKDWWKHGLVWULFW ZLQGRZ7KHIDFWVDOVRVKRZWKDWWKHGD\DIWHU:DJQHUjV MXGJH QHHG QRW UHVROYH FRQIOLFWLQJ HYLGHQFH EHWZHHQ WKH 8QLRQ ID[HG D OHWWHU WR :03 + LQIRUPLQJ 'REELQV WKDW SDUWLHV  6HH )OHLVFKXW  )G DW  VWDWLQJ WKDW WKH :DJQHUZDVD8QLRQRUJDQL]HU:DJQHUZDVGLVFKDUJHG DSSHOODQWjV DSSHDO GLG QRW VHULRXVO\ FKDOOHQJH ZKHWKHU UHDVRQDEOH FDXVH H[LVWV LQVWHDG LW VLPSO\ VKRZHG WKDW D 7KH GLVWULFW FRXUW PD\ UHO\ XSRQ ERWK GLUHFW DQG FRQIOLFWLQWKHHYLGHQFHH[LVWV*RWWIULHG)GDW FLUFXPVWDQWLDO HYLGHQFH WR GHWHUPLQH WKH PRWLYH RI WKH VDPH5DWKHUVRORQJDVIDFWVH[LVWZKLFKFRXOGVXSSRUWWKH HPSOR\HUZLWKUHVSHFWWRWKHFKDOOHQJHGFRQGXFW1/5%Y %RDUGjVWKHRU\RIOLDELOLW\WKHGLVWULFWFRXUWjVILQGLQJVFDQQRW 9HPFR ,QF  )G   WK &LU   7KLV EHFOHDUO\HUURQHRXV)OHLVFKXW)GDW*RWWIULHG FLUFXLW KDV DOVR KHOG mWKDW WKH SUR[LPLW\ LQ WLPH EHWZHHQ )GDW UHFHQW SURWHFWHG DFWLYLW\ DQG PHDVXUHV WDNHQ DJDLQVW WKH HPSOR\HHHQJDJHGLQWKHDFWLYLW\OHQGVXSSRUWWRWKHLQIHUHQFH :03 +jV SRVLWLRQ LQ WKLV FDVH LV TXLWH VLPLODU WR WKH RIDQXQIDLUODERUSUDFWLFHlsLP&DXVOH\3RQWLDFY1/5% DSSHOODQWVjSRVLWLRQVLQERWK)OHLVFKXWDQG*RWWIULHG5DWKHU  )G   WK &LU   7KH IDFWV LQ WKLV FDVH WKDQDUJXLQJWKDW6FKDXEjVOHJDOWKHRU\LVLQVXEVWDQWLDORUWKDW FOHDUO\VXSSRUWWKHGLVWULFWFRXUWjVILQGLQJRIUHDVRQDEOHFDXVH WKHIDFWV:DJQHUDOOHJHGHYHQLIWUXHZHUHXQDEOHWRVXSSRUW 5HJDUGOHVV RI ZKHWKHU WKHUH LV VXEVWDQWLDO FLUFXPVWDQWLDO WKDWOHJDOWKHRU\:03 +VSHQGVPXFKRILWVEULHIIRFXVLQJ HYLGHQFHWKDW:03 +NQHZRI:DJQHUjVXQLRQDFWLYLWLHV RQ IDFWV WKDW DUH LQKHUHQWO\ GLVSXWHG LQ WKLV FDVH  PRVW EHIRUH KH ZDV WUDQVIHUUHG IURP WKH MRE VLWH WKH FORVH QRWDEO\ ZKHWKHU :DJQHU ZDV WUDQVIHUUHG WR DQ LVRODWHG SUR[LPLW\ LQ WLPH EHWZHHQ :DJQHUjV XQLRQRUJDQL]LQJ SRVLWLRQ DQG XOWLPDWHO\ GLVFKDUJHG EHFDXVH RI KLV XQLRQ DFWLYLW\DQG:03 +jVGHFLVLRQWRPRYHKLVZRUNVWDWLRQDQG DFWLYLWLHV  :03 + FODLPV WKDW WKHVH GHFLVLRQV ZHUH QRW XOWLPDWHO\ GLVFKDUJH KLP DUH VXIILFLHQW WR PHHW 6FKDXEjV PRWLYDWHGE\DQ\DQWLXQLRQDQLPXVDQGGHVFULEHVKRZWKH mUHODWLYHO\LQVXEVWDQWLDOlEXUGHQRIVKRZLQJUHDVRQDEOHFDXVH IDFWV VKRZ WKDW WKLV PLJKW EH WUXH  1HYHUWKHOHVV DQ LQWKLVFDVH)OHLVFKXW)GDW:KLOH:03 +KDV DOWHUQDWLYHLQWHUSUHWDWLRQRIWKHIDFWVDVGHVFULEHGE\:DJQHU RIIHUHG H[SODQDWLRQV IRU ZK\ :DJQHU ZDV WUDQVIHUUHG DQG GHPRQVWUDWHVWKDWWKH%RDUGjVWKHRU\RIOLDELOLW\LVVXEVWDQWLDO ODWHUILUHGLQVXFKFORVHSUR[LPLW\WRKLVHQJDJLQJLQSURWHFWHG DQGWKDWWKHIDFWVFDQVXSSRUWWKH%RDUGjVWKHRU\RIOLDELOLW\ 7KHIDFWVVKRZWKDW:03 +jVHPSOR\HHKDQGERRNZKLFK  LV SDVVHG RXW WR DOO HPSOR\HHV FRQWDLQV D SURYLVLRQ WKDW 7KH UHOHYDQW KDQGERRN SURYLVLRQ VWDWHV mLI DQ\ERG\ VKRXOG DW DQ\ WLPH FDXVH DQ\ RI RXU HPSOR\HHV DQ\ WURXEOH DW WKHLU ZRUN RU SXW WKHP DUJXDEO\ HQFRXUDJHV HPSOR\HHV WR UHSRUW XQLRQ RUJDQL]LQJ XQGHU DQ\ VRUW RI FRHUFLYH RU XQGXH KDUDVVPHQW SUHVVXUH WR MRLQ D XQLRQ RU VLJQ D FDUG RXU HPSOR\HHV VKRXOG OHW WKHLU VXSHUYLVRU NQRZ DERXW LW DQG ZH ZLOO VHH WKDW WKLV LV VWRSSHGl s$ DW