5(&200(1'(' )25 )8//7(;7 38%/,&$7,21  5XIILQ6WHLQEDFNHWDOYGH3DVVHHWDO 1R 3XUVXDQW WR 6L[WK &LUFXLW 5XOH  (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU VWDWHWKDWWKHPLQLVHULHVLVVLPLODULQQDWXUHDQGWKHUHIRUHQRW )LOH 1DPH DS RXWUDJHRXV 'HIHQGDQWVDOVRDUJXHWKDW(DUOLQH5XIILQIDLOHGWRDOOHJHLQ 81,7('67$7(6&28572)$33($/6 KHUFRPSODLQWWKDWVKHVXIIHUHGHPRWLRQDOGLVWUHVVEHFDXVHRI KHU SRUWUD\DO DV D SURVWLWXWH DQG WKHUHIRUH KHU FODLP ZDV )257+(6,;7+&,5&8,7 SURSHUO\ GLVPLVVHG  (YHQ VR WKH GLVWULFW FRXUW FRQVLGHUHG BBBBBBBBBBBBBBBBB (DUOLQH5XIILQjVFODLPXQGHUWKLVWKHRU\DQGGHWHUPLQHGWKDW GHIHQGDQWVjFRQGXFWZDVQHLWKHUH[WUHPHQRURXWUDJHRXV &+(5 @lWKH KDYLQJ EXVLQHVV UHODWLRQVKLSV ZLWK WKH 7HPSWDWLRQV  2QO\ GLVWULFWFRXUWGHWHUPLQHGWKDWWKHODZRI0LVVLVVLSSLZKHUH :LOOLDPV ZDV FRPSHQVDWHG IRU WKH PLQLVHULHV DQG WKH (DUOLQH5XIILQZDVGRPLFLOHGZDVDSSOLFDEOHWRKHUFODLP SODLQWLIIVDOOHJHWKDWDQ\XVHRIWKHLUOLNHQHVVHVWKURXJKDFWRU 6HHs$GLVWULFWFRXUWjVRSLQLRQDQGRUGHURI)HEUXDU\ SRUWUD\DOVZDVZLWKRXWWKHLUSHUPLVVLRQ7KHDLULQJZDVVR  S   0LVVLVVLSSL ODZ DV RXWOLQHG LQ &DWFKLQJV Y VXFFHVVIXO WKDW YLGHR FDVVHWWHV RI WKH PLQLVHULHV ZHUH +DUWPDQ6R0LVVGRHVQRWSHUPLWWKLVW\SH DYDLODEOHIRUSXUFKDVHRUUHQWDO RIFDXVHRIDFWLRQWRVXUYLYHDSODLQWLIIjVGHDWKHYHQLIWKH FDVH ZDV ILOHG SULRU WR WKH GHDWK RI WKH SODLQWLII  %HFDXVH 3ODLQWLIIV ILOHG WKUHH FRPSODLQWV LQ 0LFKLJDQ VWDWH FRXUW (DUOLQH5XIILQSDVVHGDZD\RQ$XJXVWWKHGLVWULFW DQGWKHDFWLRQZDVUHPRYHGE\GHIHQGDQWVWRIHGHUDOFRXUW FRXUW JUDQWHG GHIHQGDQWVj PRWLRQ WR GLVPLVV KHU FODLP RI 7KH5XIILQVj FRPSODLQWREMHFWHGWRWKHGHSLFWLRQRI'DYLG GHIDPDWLRQ 5XIILQjVILQDOPRPHQWVLQWKHPLQLVHULHVLQZKLFKKLVEHDWHQ ERG\ ZDV WKURZQ IURP D PRYLQJ FDU LQ IURQW RI D KRVSLWDO 7KH 5XIILQ SODLQWLIIV DUJXH WKDW (DUOLQH 5XIILQjV GHDWK ZKHUH KH GLHV  $FFRUGLQJ WR WKH PLQLVHULHV KLV ERG\ FHUWLILFDWHLQGLFDWHVVKHGLHGLQ$ODEDPDDQGWKDWVKHZDVD UHPDLQHGXQFODLPHGLQDPRUJXHIRUDZHHNDIWHUKLVGHDWK IRUPHUUHVLGHQWRI0LVVLVVLSSL6HHs$(DUOLQH5XIILQjV 3ODLQWLIIVVWDWHWKDWKHZDVWDNHQWRWKHKRVSLWDOE\DOLPRXVLQH GHDWKFHUWLILFDWH7KHUHIRUHLWLVDVVHUWHGWKDW$ODEDPDODZ DQG ZDV HVFRUWHG WR WKH ZDLWLQJ DUHD E\ KLV GULYHU ZKR LVDSSOLFDEOHWRKHUFDVH LQIRUPHGWKHDWWHQGDQWVRIKLVLGHQWLW\7KH5XIILQFKLOGUHQ IXUWKHUVWDWHWKDWKLVERG\ZDVFODLPHGE\RQHRIWKHPZLWKLQ .OD[RQ&RY6WHQWRU(OHF0IJ&R,QF86 DIHZGD\VDIWHUKLVGHDWK7KHFKLOGUHQDOVRREMHFWWRWKH KROGVWKDWLQGLYHUVLW\FDVHVWKHFKRLFHRIODZ SRUWUD\DO RI 'DYLG 5XIILQ LQ WKH PLQLVHULHV DV VLQJOH DQG UXOHVDSSOLHGE\WKHIHGHUDOFRXUWPXVWFRQIRUPWRWKRVHRIWKH FKLOGOHVVZKLOHDOOWKHRWKHUPHPEHUVRIWKH7HPSWDWLRQVZHUH VWDWHLQZKLFKLWVLWV0LFKLJDQjVFKRLFHRIODZUXOHDVQRWHG VKRZQZLWKZLYHVDQGFKLOGUHQ(DUOLQH5XIILQDOOHJHVVKH E\ GHIHQGDQWV SURYLGHV WKDW WKHUH LV D SUHVXPSWLRQ WKDW ZDVIDOVHO\SRUWUD\HGDVDSURVWLWXWHEHFDXVH'DYLG5XIILQjV  ,Q WKH GLVWULFW FRXUW WKH 5XIILQ SODLQWLIIV DUJXHG WKDW WKH PRUH IDYRUDEOH 0LFKLJDQ ODZ DSSOLHG EHFDXVH VHYHUDO RI (DUOLQH 5XIILQjV SURVSHFWLYH KHLUV ZHUH UHVLGHQWV RI 0LFKLJDQ 7KH GLVWULFW FRXUW KHOG WKDW m>V@XFK DQ LQWHUHVW LV WRR UHPRWH WR RXWZHLJK 0LVVLVVLSSLjV WUDGLWLRQDO  LQWHUHVW LQ KDYLQJ LWV ODZ DSSOLHG WR GHIDPDWLRQ UHJDUGLQJ LWV UHVLGHQWVl sRVHSKLQH 0LOHV DQG 5RVH )UDQNOLQ HDFK ILOHG VHSDUDWH FRPSODLQWV s$  GLVWULFW FRXUWjV RSLQLRQ DQG RUGHU RI )HEUXDU\   S  ZKLOH WKH 5XIILQV ILOHG D MRLQW FRPSODLQW 7KLV DUJXPHQW LV QRW UHYLYHG RQ DSSHDO  5XIILQ6WHLQEDFNHWDOYGH3DVVHHWDO 1R 1R 5XIILQ6WHLQEDFNHWDOYGH3DVVHHWDO  SXUSRVHV ZKLFK LV GLVWLQJXLVKHG IURP D SXEOLF LQWHUHVW FKDUDFWHULQGLFDWHGWKDWKHZDVJLYHQWRDSLPSE\KLVPRWKHU SXEOLFDWLRQ6HH3DOODVY&URZOH\0LOQHU &R1:G WRVHWWOHDGHEW 0LFKUHFRJQL]LQJmDIXQGDPHQWDOGLIIHUHQFH EHWZHHQWKHXVHRIDSHUVRQjVSKRWRJUDSKLFOLNHQHVVlIRUD 5RVH)UDQNOLQGLVSXWHVWKHPDQQHULQZKLFKWKHPLQLVHULHV QHZVZRUWK\ SXUSRVH DQG D FRPPHUFLDO XVH VXFK DV DQ GHSLFWHGWKHILQDOGD\VRIKHUVRQ0HOYLQ6KHVWDWHVWKDW DGYHUWLVHPHQW7KHUHIRUHGHIHQGDQWVVWDWHWKDWFRQVHQWRU UDWKHUWKDQEHLQJFRQILQHGWRDZKHHOFKDLUDQGG\LQJLQKHU SHUPLVVLRQ IURP SODLQWLIIV ZDV QRW UHTXLUHG DQG SODLQWLIIV KRPHKHUVRQGLHGLQKLVVOHHSDWKLVKRPHLQ&DOLIRUQLD KDYHFLWHGQROHJDODXWKRULW\WRVXSSRUWWKHLUFODLPV sRVHSKLQH 0LOHV GLVDJUHHV ZLWK WKH ZD\ WKH PLQLVHULHV 7KHUHLVUHODWLYHO\QRFDVHODZFLWHGE\SODLQWLIIVWRVXSSRUW SRUWUD\HGKHUH[KXVEDQG2WLV:LOOLDPVDVDEHWWHUIDWKHUDQG WKHLUFODLPVDQGWKHLUDUJXPHQWXQGHUWKLVWRUWLVYHU\ZHDN KXVEDQGWKDQKHZDV6KHIHHOVWKLVJLYHVKHUOHVVFUHGLWIRU 7KHPDMRULW\RIFDVHVZKLFKGLVFXVV WKHULJKWRISXEOLFLW\ WKHUDLVLQJRIWKHLUVRQ6KHDOVRREMHFWVWRWKHLPSOLFDWLRQ LQFOXGLQJ &DUVRQ IURP WKLV FLUFXLW IRFXV RQ WKH SHFXQLDU\ WKDWVKHZDVLQYROYHGZLWKDQRWKHUPDQGXULQJKHUPDUULDJH LQWHUHVW LQ RQHjV LGHQWLW\  :H FRQFOXGH WKDW WKH XVH RI WR:LOOLDPV SODLQWLIIVjILFWLRQDOL]HGOLNHQHVVHVLQDZRUNSURWHFWHGE\WKH )LUVW$PHQGPHQWDQGWKHDGYHUWL]LQJLQFLGHQWDOWRVXFKXVHV 'HIHQGDQWV ILOHG PRWLRQV WR GLVPLVV WKH FRPSODLQWV GLG QRW JLYH ULVH WR D FODLP IRU UHOLHI XQGHU WKH SODLQWLIIVj SXUVXDQWWR)HG5&LY3EZKLFKZHUHIROORZHGE\ ULJKWVRISXEOLFLW\IRUWKHUHDVRQVVWDWHGE\WKHGLVWULFWFRXUW VHYHUDOKHDULQJVZKHUHLQWKHSDUWLHVVXEPLWWHGGRFXPHQWDU\ HYLGHQFH LQ VXSSRUW RI WKHLU SRVLWLRQV  7KH GLVWULFW FRXUW %8QMXVWHQULFKPHQW FRQVLGHUHG WKLV HYLGHQWLDU\ PDWHULDO LQ UXOLQJ RQ VRPH RI SODLQWLIIVFODLPVUHVXOWLQJLQGLVPLVVDORIWKHLUFODLPVXQGHU %DVHGRQWKHDYHUPHQWVLQWKHFRPSODLQWVWKHGLVWULFWFRXUW )HG 5 &LY 3 E DQG )HG 5 &LY 3 F WKH IRXQGSODLQWLIIVjFODLPVRIXQMXVWHQULFKPHQWWREHGXSOLFDWLYH VXPPDU\MXGJPHQWVWDQGDUG RUGHULYDWLYHRIWKHLUULJKWRISXEOLFLW\FODLPVDQGGLVPLVVHG WKHPUHIHUHQFLQJWKHUHDVRQVJLYHQIRUGLVPLVVDORIWKHULJKW ,967$1'$5'62)5(9,(: RISXEOLFLW\FODLPV3ODLQWLIIVGHFOLQHWRRIIHUDGLVWLQFWLRQ EHWZHHQ WKH FODLPV DQG LQVWHDG UHIHU WR WKHLU DUJXPHQWV 7KLV FRXUW UHYLHZV GH QRYR D GLVWULFW FRXUWjV GLVPLVVDO VXSSRUWLQJWKHLUULJKWRISXEOLFLW\FODLPVDVWRZK\WKHGLVWULFW XQGHU)HG5&LY3E6HH9DUOMHQY&OHYHODQG*HDU FRXUWHUUHGLQJUDQWLQJGHIHQGDQWVjPRWLRQVWRGLVPLVV &R,QF)GWK&LU7KHFRXUWPXVW mFRQVLGHU DV WUXH WKH ZHOOSOHDGHG DOOHJDWLRQV RI WKH $UHYLHZRIWKHFRPSODLQWVLQWKLVFDVHLQGLFDWHVWKDWWKH FRPSODLQWDQGFRQVWUXH>@WKHPLQWKHOLJKWPRVWIDYRUDEOHWR DOOHJDWLRQVXQGHUWKHULJKWRISXEOLFLW\FODLPVDQGWKHXQMXVW WKHSODLQWLII>V@l,G HQULFKPHQW FODLPV DUH GXSOLFDWLYH  7KH 5XIILQ SODLQWLIIVj FRPSODLQW HYHQ XVHV WKH SKUDVH mHQULFK WKHPVHOYHV $JUDQWRIVXPPDU\MXGJPHQWE\WKHGLVWULFWFRXUWLVDOVR XQMXVWLILDEO\l LQ GLVFXVVLQJ WKHLU ULJKW RI SXEOLFLW\ FODLPV UHYLHZHG GH QRYR %URG\ Y &LW\ RI 0DVRQ  )G  s$5XIILQVjFRPSODLQWSˆ)LQGLQJQRHUURULQ WK&LUZLWKDOOHYLGHQFHYLHZHGmLQWKHOLJKW WKH GLVWULFW FRXUWjV UHVROXWLRQ RI WKH SODLQWLIIVj ULJKW RI PRVWIDYRUDEOHWRWKHSDUW\RSSRVLQJVXPPDU\MXGJPHQW>@l SXEOLFLW\ FODLPV ZH OLNHZLVH ILQG QR HUURU LQ WKH GLVWULFW FRXUWjV WUHDWPHQW RI WKH SODLQWLIIVj FODLPV RI XQMXVW HQULFKPHQW  (DUOLQH 5XIILQ ZDV D PLQLVWHUjV ZLIH DQG VFKRRO WHDFKHU IRU IRUW\ \HDUV 6KH UDLVHG 'DYLG 5XIILQ EXW ZDV QRW KLV ELRORJLFDO PRWKHU  5XIILQ6WHLQEDFNHWDOYGH3DVVHHWDO 1R 1R 5XIILQ6WHLQEDFNHWDOYGH3DVVHHWDO  :KLWHjV/DQGLQJ)LVKHULHV,QFY%XFKKRO]HU)G 7KHGLVWULFWFRXUWDOVRIRFXVHGRQ0DWWKHZVY:R]HQFUDIW WK&LU6XPPDU\MXGJPHQWLVDSSURSULDWHRQO\ )GWK&LULQZKLFKDQH[KXVEDQGDOOHJHG ZKHUHWKHUHDUHmQRLVVXHVRIPDWHULDOIDFWSUHVHQWDQGWKH PLVDSSURSULDWLRQRIKLVQDPHDQGOLNHQHVVE\KLVH[ZLIHDQG PRYLQJSDUW\LVHQWLWOHGWRMXGJPHQWDVDPDWWHURIODZl,G D PRYLH VWXGLR ZKHQ HYHQWV RI KLV OLIH DV D SROLFH RIILFHU DW VRPHRIZKLFKZHUHILFWLRQDOL]HGZHUHVROGDVPRYLHULJKWV +LVFODLPIRUYLRODWLRQRIKLVULJKWRISXEOLFLW\ZDVGHQLHGE\ 9',6&866,21 WKH)LIWK&LUFXLWZKLFKKHOGWKDWWKHWHUPmµOLNHQHVVjGRHVQRW LQFOXGHJHQHUDOLQFLGHQWVIURPDSHUVRQjVOLIHHVSHFLDOO\ZKHQ %HFDXVHWKLVLVDGLYHUVLW\DFWLRQUHPRYHGIURP0LFKLJDQ ILFWLRQDOL]HG7KHQDUUDWLYHRIDQLQGLYLGXDOjVOLIHVWDQGLQJ VWDWHFRXUWWKHGLVWULFWFRXUWDSSOLHG0LFKLJDQODZWRDOORI DORQH ODFNV WKH YDOXH RI D QDPH RU OLNHQHVV WKDW WKH SODLQWLIIVjFODLPVH[FHSWIRUWKHGHIDPDWLRQFODLPDVVHUWHGE\ PLVDSSURSULDWLRQWRUWSURMHFWVl,GDW$VLPLODUFODLP (DUOLQH5XIILQ EURXJKWE\DIRUPHU%ODFN3DQWKHUDJDLQVWWKHSURGXFHUVRID ILOP GHSLFWLQJ D ILFWLRQDOL]HG DFFRXQW RI KLV OLIH VWRU\ ZDV $5LJKWRISXEOLFLW\ UHMHFWHGLQ6HDOHY*UDPHUF\3LFWXUHV)6XSS(' 3D 7KH ULJKW RI SXEOLFLW\ LV GHILQHG DV mDQ DSSURSULDWLRQ RI RQHjV QDPH RU OLNHQHVV IRU WKH GHIHQGDQWjV DGYDQWDJHl 3ODLQWLIIV DUJXH WKDW WKH GLVWULFW FRXUW PLVLQWHUSUHWV WKHLU &DUVRQY+HUHjVsRKQQ\3RUWDEOH7RLOHWV,QF)G SRVLWLRQDQGKDVUHGXFHGWKHLUFODLPVWRWKHQDUURZQRWLRQ WK&LU7KHSXUSRVHRIWKLVULJKWLVmWRSURWHFW WKDW WKH GHIHQGDQWV RQO\ GHSLFWHG WKHLU OLIH VWRULHV ZLWKRXW WKHFRPPHUFLDOLQWHUHVWRIFHOHEULWLHVLQWKHLULGHQWLWLHV>@lLG WKHLUFRQVHQW7KH\DOOHJHWKDWWKHLUOLIHVWRULHVZHUHQRWWROG DWDVm>W@KHIDPRXVKDYHDQH[FOXVLYHOHJDOULJKWGXULQJ LQWKHPLQLVHULHVEXWLQVWHDGWKHLULGHQWLWLHV ZHUHXVHGDV OLIH WR FRQWURO DQG SURILW IURP WKH FRPPHUFLDO XVH RI WKHLU FRORUIXO SURSV WR PDNH 2WLV :LOOLDPVjV OLIH VWRU\ PRUH QDPHDQGSHUVRQDOLW\>@lLGTXRWLQJ0HPSKLV'HY)RXQG HQWHUWDLQLQJDQGDSSHDOLQJ3ODLQWLIIVVWDWHWKDWWKLVFRXUWjV Y)DFWRUV(WF,QF)GWK&LU KROGLQJ LQ &DUVRQ Y +HUHjV sRKQQ\ 3RUWDEOH 7RLOHWV ,QF SURYLGHVWKHPZLWKUHOLHIDQGWKDWWKHGLVWULFWFRXUWHUUHGE\ 7KHGLVWULFWFRXUWUHMHFWHGSODLQWLIIVjFODLPVRIYLRODWLRQRI GLVPLVVLQJWKHLUFODLPVIRUIDLOXUHWRVWDWHDFDXVHRIDFWLRQ WKHLUULJKWVRISXEOLFLW\RQWKHEDVLVWKDWGHSLFWLQJRQHjVOLIH VWRU\ ZLWKRXW KLV RU KHU SHUPLVVLRQ GLG QRW FRQVWLWXWH D 'HIHQGDQWV DVVHUW WKDW WKH )LUVW $PHQGPHQW GHIHDWV YLRODWLRQRIWKHULJKWRISXEOLFLW\XQGHU0LFKLJDQODZ6HH SODLQWLIIVjULJKWRISXEOLFLW\FODLPVEHFDXVHWKHPLQLVHULHVLV s$  GLVWULFW FRXUWjV RSLQLRQ DQG RUGHU RI )HEUXDU\  D PRYLH FRQFHUQLQJ D PXVLFDO JURXS ZKHUH WKHUH LV SXEOLF S$WWKHWLPHRIWKLVUXOLQJWKH0LFKLJDQ6XSUHPH LQWHUHVWDQGLVQRWDFRPPHUFLDODGYHUWLVHPHQWIRUWKHVDOHRI &RXUW KDG QRW DGGUHVVHG WKLV WRUW DQG WKH ORZHU 0LFKLJDQ JRRGV  'HIHQGDQWV DUJXH WKDW WKH )LUVW $PHQGPHQW EDUV FRXUWVKDGRQO\QRWHGWKDWLWZDVDPRQJWKHW\SHVRImLQYDVLRQ FODLPVIRUULJKWRISXEOLFLW\ZKHUHWKHSXEOLFDWLRQLVDPDWWHU RI SULYDF\l ULJKWV UHFRJQL]HG XQGHU 0LFKLJDQ ODZ  ,Q RI SXEOLF LQWHUHVW DQG WKDW LW KDV ORQJ EHHQ VHWWOHG WKDW GUDZLQJWKLVFRQFOXVLRQWKHGLVWULFWFRXUWUHOLHGLQSDUWRQWKH mPRWLRQSLFWXUHVDUHDIRUPRIH[SUHVVLRQSURWHFWHGE\WKH 5HVWDWHPHQW7KLUGRI8QIDLU&RPSHWLWLRQZKLFKQRWHGLQ )LUVW$PHQGPHQWl5RJHUVY*ULPDOGL )6XSS †WKDWXVHRILGHQWLW\mIRUWKHSXUSRVHVRIWUDGHGRHVQRW 6'1< RUGLQDULO\ LQFOXGH WKH XVH RI D SHUVRQjV LGHQWLW\ LQ QHZV UHSRUWLQJ FRPPHQWDU\ HQWHUWDLQPHQW ZRUNV RI ILFWLRQ RU 'HIHQGDQWV QRWH WKDW ERWK WKH 5HVWDWHPHQW 7KLUG DQG QRQILFWLRQRULQDGYHUWLVLQJWKDWLVLQFLGHQWDOWRVXFKXVHVl &DUVRQ IRFXV RQ LGHQWLW\ DSSURSULDWLRQ IRU FRPPHUFLDO