Filed: Jan. 22, 2002
Latest Update: Mar. 02, 2020
Summary: 5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 6LQJOHWRQY8QLWHG6WDWHV 1R 3XUVXDQW WR 6L[WK &LUFXLW 5XOH (/(&7521,& &,7$7,21 )(' $SS 3 WK &LU FRQFHGHV WKDW KH GLG QRW ILUVW SUHVHQW WKH FODLP WR WKH )LOH 1DPH DS DSSURSULDWH IHGHUDO DJHQF\ $SSHOODQWjV %U DW $V ZH KDYHKHOGWKDWWKHIDLOXUHWRILOHDWLPHO\DGPLQLVWUDWLYHFODLP XQGHUWKH)7&$EDUVIHGHUDOMXULVGLFWLRQ5RJHUVY8QLWHG 81,7('67$7(6&28572)$33($/6 6WDWHV)G
Summary: 5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 6LQJOHWRQY8QLWHG6WDWHV 1R 3XUVXDQW WR 6L[WK &LUFXLW 5XOH (/(&7521,& &,7$7,21 )(' $SS 3 WK &LU FRQFHGHV WKDW KH GLG QRW ILUVW SUHVHQW WKH FODLP WR WKH )LOH 1DPH DS DSSURSULDWH IHGHUDO DJHQF\ $SSHOODQWjV %U DW $V ZH KDYHKHOGWKDWWKHIDLOXUHWRILOHDWLPHO\DGPLQLVWUDWLYHFODLP XQGHUWKH)7&$EDUVIHGHUDOMXULVGLFWLRQ5RJHUVY8QLWHG 81,7('67$7(6&28572)$33($/6 6WDWHV)G..
More
5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 6LQJOHWRQY8QLWHG6WDWHV 1R 3XUVXDQW WR 6L[WK &LUFXLW 5XOH (/(&7521,& &,7$7,21 )(' $SS 3 WK &LU FRQFHGHV WKDW KH GLG QRW ILUVW SUHVHQW WKH FODLP WR WKH )LOH 1DPH DS DSSURSULDWH IHGHUDO DJHQF\ $SSHOODQWjV %U DW $V ZH KDYHKHOGWKDWWKHIDLOXUHWRILOHDWLPHO\DGPLQLVWUDWLYHFODLP XQGHUWKH)7&$EDUVIHGHUDOMXULVGLFWLRQ5RJHUVY8QLWHG 81,7('67$7(6&28572)$33($/6 6WDWHV)GWK&LUZHDOVRFRQFOXGH )257+(6,;7+&,5&8,7 WKDW WKH GLVWULFW FRXUW FRUUHFWO\ KHOG WKDW LW GLG QRW KDYH BBBBBBBBBBBBBBBBB MXULVGLFWLRQ RYHU 6LQJOHWRQjV LQWHQWLRQDO LQIOLFWLRQ RI HPRWLRQDOGLVWUHVVFODLP ,,,&21&/86,21 s$0(6 5 6,1*/(721 ; 3ODLQWLII$SSHOODQW )RU WKH DERYH UHDVRQV ZH $)),50 WKH GHFLVLRQ RI WKH GLVWULFWFRXUWJUDQWLQJWKHJRYHUQPHQWjVPRWLRQWRGLVPLVVIRU 1R ODFNRIVXEMHFWPDWWHUMXULVGLFWLRQSXUVXDQWWR)HG5&LY3 Y E ! 81,7(' 67$7(6 2) $0(5,&$ 'HIHQGDQW$SSHOOHH 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW'D\WRQ 1Rn:DOWHU+5LFH&KLHI'LVWULFWsXGJH $UJXHG2FWREHU 'HFLGHGDQG)LOHGsDQXDU\ %HIRUHs21(6DQG0225(&LUFXLWsXGJHV+$ W@KH8QLWHG6WDWHV LQIOLFWLRQ RI HPRWLRQDO GLVWUHVV DQG GHIDPDWLRQ $ 8QLWHG VKDOOEHOLDEOHUHVSHFWLQJWKHSURYLVLRQVRIWKLVWLWOHUHODWLQJ 6WDWHV $WWRUQH\ FHUWLILHG WKDW +LW]HPDQ ZDV DFWLQJ LQ WKH WRWRUWFODLPVLQWKHVDPHPDQQHUDQGWRWKHVDPHH[WHQWDV VFRSHRIKLVHPSOR\PHQWDWWKHWLPHRIWKHDOOHJHGWRUWLRXV D SULYDWH LQGLYLGXDO XQGHU OLNH FLUFXPVWDQFHVl 86& FRQGXFWDQGWKHJRYHUQPHQWUHPRYHGWKHFDVHWRWKH8QLWHG +RZHYHUWKH)7&$H[FHSWVFHUWDLQWRUWVIURPWKLV 6WDWHV 'LVWULFW &RXUW IRU WKH 6RXWKHUQ 'LVWULFW RI 2KLR ZDLYHURIVRYHUHLJQLPPXQLW\LQFOXGLQJOLEHODQGVODQGHU SXUVXDQWWRWKH:HVWIDOO$FW86&G7KH 86&K$QGWKH)7&$DOVRSURYLGHVWKDW JRYHUQPHQWWKHQPRYHGWRGLVPLVVSXUVXDQWWR)HG5&LY 3 E FODLPLQJ WKDW WKH GLVWULFW FRXUW GLG QRW KDYH $QDFWLRQVKDOOQRWEHLQVWLWXWHGXSRQDFODLPDJDLQVWWKH VXEMHFWPDWWHUMXULVGLFWLRQEHFDXVHWKH8QLWHG6WDWHVFRXOGQRW 8QLWHG6WDWHVIRUPRQH\GDPDJHVIRULQMXU\RUORVVRI EHVXHGIRUGHIDPDWLRQDQG6LQJOHWRQKDGQRWH[KDXVWHGKLV SURSHUW\ RU SHUVRQDO LQMXU\ RU GHDWK FDXVHG E\ WKH DGPLQLVWUDWLYHUHPHGLHVXQGHUWKH)HGHUDO7RUW&ODLPV$FW QHJOLJHQWRUZURQJIXODFWRURPLVVLRQRIDQ\HPSOR\HHRI IRULQWHQWLRQDOLQIOLFWLRQRIHPRWLRQDOGLVWUHVV,Q$XJXVWRI WKH *RYHUQPHQW ZKLOH DFWLQJ ZLWKLQ WKH VFRSH RI KLV WKHGLVWULFWFRXUWJUDQWHGWKHJRYHUQPHQWjVPRWLRQWR RIILFHRUHPSOR\PHQWXQOHVVWKHSODLQWLIIVKDOOKDYHILUVW GLVPLVV DQG 6LQJOHWRQ WLPHO\ DSSHDOV )RU WKH IROORZLQJ SUHVHQWHGWKHFODLPWRWKHDSSURSULDWH)HGHUDODJHQF\ UHDVRQVZH$)),50WKHGLVWULFWFRXUWjVJUDQWRIWKH8QLWHG 6WDWHVjPRWLRQWRGLVPLVV 86&D7KXVZHFRQFOXGHWKDWWKHGLVWULFWFRXUW FRUUHFWO\KHOGWKDWLWGLGQRWKDYHMXULVGLFWLRQRYHU6LQJOHWRQjV GHIDPDWLRQ FODLP $QG DOWKRXJK 6LQJOHWRQ FRXOG KDYH EURXJKWDQLQWHQWLRQDOLQIOLFWLRQRIHPRWLRQDOGLVWUHVVFODLP DJDLQVW D SULYDWH LQGLYLGXDO XQGHU 2KLR ODZ VHH R@Q VHYHUDO DQG HPSOR\PHQWDQGEHFDXVHKHGLGQRWSURYLGHDQ\H[SODQDWLRQ YDULRXV RFFDVLRQV RYHU WKH FRXUVH RI 3ODLQWLIIjV VDLG RIZKDWIDFWVKHH[SHFWHGWRHOLFLWIURPGHSRVLQJ+LW]HPDQ HPSOR\PHQW 'HIHQGDQW PDGH IDOVH DQG GHIDPDWRU\ ZHFRQFOXGHWKDWWKHGLVWULFWFRXUWGLGQRWDEXVHLWVGLVFUHWLRQ VWDWHPHQWV LQ UHJDUGV WR 3ODLQWLIIjV PLOLWDU\ VHUYLFH KLV LQGHQ\LQJ6LQJOHWRQjVPRWLRQWRFRPSHO+LW]HPDQWRDWWHQG SHUVRQDOLW\ KLV OLIHVW\OH KLV PHQWDO FRQGLWLRQ KLV MRE KLVGHSRVLWLRQ 6LQJOHWRQ SUHYLRXVO\ ILOHG D FRPSODLQW DJDLQVW WKH 8QLWHG 6WDWHV $LU 7KH JRYHUQPHQW UHPRYHG WKH FDVH WR WKH GLVWULFW FRXUW RQ 6HSWHPEHU )RUFH IRU GHQ\LQJ KLP D YDFDQW SRVLWLRQ DV D FLYLO EDVH HQJLQHHU XQGHU WKH DQG PRYHG WR GLVPLVV RQ 1RYHPEHU 7KH GLVWULFW FRXUW )HGHUDO *ULHYDQFH 3ODQ 7KH 8QLWHG 6WDWHV 'LVWULFW &RXUW IRU WKH GLG QRW JUDQW WKH JRYHUQPHQWjV PRWLRQ XQWLO $XJXVW ,Q DGGLWLRQ 6RXWKHUQ 'LVWULFW RI 2KLR GLVPLVVHG WKH FODLP IRU ODFN RI VXEMHFW PDWWHU WKH GLVWULFW FRXUW DOVR JUDQWHG WKUHH PRWLRQV E\ 6LQJOHWRQ WR H[WHQG ILOLQJ MXULVGLFWLRQ XQGHU )HG 5 &LY 3 E s$ DW DQG ZH GHDGOLQHV s$ DW 'RFNHW 6KHHW PRWLRQV RI 6HSWHPEHU DIILUPHG LQ DQ XQSXEOLVKHG RSLQLRQ 6LQJOHWRQ Y 86 $LU )RUFH 1R 1RYHPEHU DQG 'HFHPEHU :/ WK &LU sDQ 6LQJOHWRQY8QLWHG6WDWHV 1R 1R 6LQJOHWRQY8QLWHG6WDWHV SHUIRUPDQFH DQG RWKHU OLNH DUHDV RI FRQFHUQ DOO LQ WKH 6LQJOHWRQFRQWHQGVKRZHYHUWKDWKHDWWHPSWHGWRSURGXFH SUHVHQFHRIFHUWDLQRWKHUSHRSOHls$DW HYLGHQFHnEXWZDVWKZDUWHGE\+LW]HPDQjVUHIXVDOWRDWWHQG KLV GHSRVLWLRQ DQG WKH GLVWULFW FRXUWjV UHIXVDO WR FRPSHO 2Q6HSWHPEHUWKH8QLWHG6WDWHVVXEVWLWXWHGLWVHOI +LW]HPDQWRDWWHQGKLVGHSRVLWLRQ+RZHYHU6LQJOHWRQGLG IRU+LW]HPDQDVGHIHQGDQWDQGUHPRYHGWKHFDVHWRWKH8QLWHG QRW DOOHJH DQ\ IDFWV LQ KLV FRPSODLQW RU LQ DQ\ VXEVHTXHQW 6WDWHV'LVWULFW&RXUWIRUWKH6RXWKHUQ'LVWULFWRI2KLR8QGHU ILOLQJWKDWLIWUXHZRXOGGHPRQVWUDWHWKDW+LW]HPDQKDGEHHQ WKH )HGHUDO (PSOR\HHV /LDELOLW\ 5HIRUP DQG 7RUW DFWLQJ RXWVLGH WKH VFRSH RI KLV HPSOR\PHQW 7KH 7KLUG &RPSHQVDWLRQ$FWRIWKHm:HVWIDOO$FWlWKH8QLWHG &LUFXLW KDV VWDWHG WKDW m>S@HUPLWWLQJ DGGLWLRQDO GLVFRYHU\ 6WDWHVPD\VXEVWLWXWHLWVHOIDVSDUW\GHIHQGDQWLQFLYLOVXLWV ZKHQWKH$WWRUQH\*HQHUDOjVFHUWLILFDWLRQLVQRWEDVHGRQD DJDLQVW IHGHUDO HPSOR\HHV m>X@SRQ FHUWLILFDWLRQ E\ WKH GLIIHUHQW XQGHUVWDQGLQJ RI WKH IDFWV WKDQ >WKDW@ UHIOHFWHG LQ $WWRUQH\ *HQHUDO WKDW WKH GHIHQGDQW HPSOR\HH ZDV DFWLQJ >WKH@FRPSODLQWZRXOGXQGHUPLQHWKHLQWHQWRIWKH:HVWIDOO ZLWKLQWKHVFRSHRIKLVRIILFHRUHPSOR\PHQWDWWKHWLPHRI $FWWRSURWHFWIHGHUDOHPSOR\HHVIURPUHVSRQGLQJWRVWDWHODZ WKH LQFLGHQW RXW RI ZKLFK WKH FODLP DURVHl 86& WRUWFODLPVl%UXPILHOGY6DQGHUV)GUG G3XUVXDQWWRVXFKFHUWLILFDWLRQWKHJRYHUQPHQW &LUFHUWGHQLHG6&W$QGZHKDYH VKDOO UHPRYH WKH FDVH WR IHGHUDO GLVWULFW FRXUW 86& KHOGWKDWDOWKRXJKDGLVWULFWFRXUWPD\FRQGXFWDQHYLGHQWLDU\ G6KDURQs=HDOH\WKH8QLWHG6WDWHV$WWRUQH\ KHDULQJWRGHWHUPLQHZKHWKHUFHUWLILFDWLRQLVDSSURSULDWHLQD FHUWLILHG WKDW +LW]HPDQ ZDV DFWLQJ LQ WKH VFRSH RI KLV SDUWLFXODU FDVH QR KHDULQJ LV QHHGHG mZKHUH HYHQ LI WKH HPSOR\PHQWDWWKHWLPHRIWKHFRQGXFWDOOHJHGLQ6LQJOHWRQjV SODLQWLIIjV DVVHUWLRQV ZHUH WUXH WKH FRPSODLQW DOOHJDWLRQV FRPSODLQWDQGWKH8QLWHG6WDWHVSURSHUO\ILOHGDQRWLFHRI HVWDEOLVKWKDWWKHHPSOR\HHZDVDFWLQJZLWKLQWKHVFRSHRI UHPRYDO KLVKHUHPSOR\PHQWl50,)GDW 2Q1RYHPEHUWKH8QLWHG6WDWHVPRYHGWRGLVPLVV m8QGHU 2KLR ODZ DQ HPSOR\HH DFWV ZLWKLQ WKH VFRSH RI XQGHU )HG 5 &LY 3 E IRU ODFN RI VXEMHFW PDWWHU HPSOR\PHQWLIWKHHPSOR\HHDFWVZLWKLQKLVDXWKRULW\GXULQJ MXULVGLFWLRQDQGXQGHU)HG5&LY3EIRUIDLOXUHWR WKHFRXUVHRIHPSOR\PHQWHYHQWKRXJKDFWLQJLQWHQWLRQDOO\RU VWDWHDFODLP$WWKHVDPHWLPHWKHJRYHUQPHQWPRYHGWR PDOLFLRXVO\l 50, )G DW m7KH VFRSH RI VWD\DOOVFKHGXOLQJGDWHVXQWLOWKHGLVWULFWFRXUWUXOHGRQWKH HPSOR\PHQW LVVXH GRHV QRW IRFXV RQ WKH DOOHJHG ZURQJIXO PRWLRQWRGLVPLVV6LQJOHWRQPRYHGRQ)HEUXDU\IRU QDWXUH RI WKH HPSOR\HHjV DFWLRQV UDWKHU WKH LVVXH LV WKH OHDYH WR ILOH DQ DGGLWLRQDO UHVSRQVH mD FRPSUHKHQVLYH DFWLRQV FRPSODLQHG RI DQG ZKHWKHU WKRVH DFWLRQV DUH VR DIILGDYLW VHWWLQJ IRUWK LQIRUPDWLRQ LQ RSSRVLWLRQ WR GLYHUJHQWWKDW>WKHLU@YHU\FKDUDFWHUVHYHUVWKHUHODWLRQVKLSRI 'HIHQGDQWjV6FRSH&HUWLILFDWLRQls$DW3OjV0RWWR HPSOR\HU DQG HPSOR\HHl ,G DW FLWDWLRQV RPLWWHG )LOH$GGLWLRQDO5HVS7KHGLVWULFWFRXUWJUDQWHG6LQJOHWRQjV 2WKHUWKDQDJHQHUDOFRPSODLQWRImDFRQWLQXLQJSDWWHUQRI PRWLRQEXW6LQJOHWRQQHYHUILOHGVXFKDQDIILGDYLW6LQJOHWRQ ULGLFXOHKDUDVVPHQWDQGGLVFULPLQDWLRQlWKHWRUWLRXVFRQGXFW DOVRPRYHGRQ)HEUXDU\WRSRVWSRQHDUXOLQJRQWKH 6LQJOHWRQDOOHJHVLQKLVFRPSODLQWDSSHDUVWRKDYHRFFXUUHG PRWLRQ WR GLVPLVV SHQGLQJ 6LQJOHWRQjV GHSRVLWLRQ RI ZLWKLQ WKH VFRSH RI +LW]HPDQjV HPSOR\PHQW s$ DW +LW]HPDQ7KHGLVWULFWFRXUWRYHUUXOHGWKLVPRWLRQEXWWKH &RPSO6LQJOHWRQFODLPVWKDW+LW]HPDQDWWHPSWHGWRKDYH MXGJHQRWHGWKDWWKHPRWLRQZDVmVXEMHFWWRUHQHZDOLI>WKH@ 6LQJOHWRQ UHPRYHG IURP KLV MRE ILOHG IDOVH DQG GHJUDGLQJ 6LQJOHWRQ GRHV VWDWH LQ KLV FRPSODLQW WKDW +LW]HPDQjV FRQGXFW mIDOOV 8QGHU &)5 WKH $WWRUQH\ *HQHUDO KDV GHOHJDWHG WR WKH RXWVLGH WKH VFRSH RI KLV RIILFLDO GXWLHVl s$ DW &RPSO %XW WKLV 8QLWHG 6WDWHV $WWRUQH\ WKH DXWKRULW\ WR SURYLGH G FHUWLILFDWLRQ VWDWHPHQW LV PHUHO\ FRQFOXVRU\ 6LQJOHWRQY8QLWHG6WDWHV 1R 1R 6LQJOHWRQY8QLWHG6WDWHV '&&LUFHUWGHQLHG86:H FRXUWGHWHUPLQHVIDFWXDOLVVXHVSUHYHQWUXOLQJRQGHIHQGDQWjV UHYLHZGHQRYRERWKWKHGLVWULFWFRXUWjVFRQFOXVLRQVRIODZ PRWLRQWRGLVPLVVls$DW0DUJLQDO(QWU\RQ3OjV0RW &ROHPDQY8QLWHG6WDWHV)GWK&LU WR3RVWSRQH$IWHUDIDLOHGDWWHPSWWRGHSRVH+LW]HPDQLQ DQG WKH GLVWULFW FRXUWjV DSSOLFDWLRQ RI WKH ODZ WR WKH IDFWV sXQHRI6LQJOHWRQPRYHGLQsXO\RIWRH[WHQGWKH 50,)GDW:HUHYLHZGHFLVLRQVRIWKHGLVWULFW GLVFRYHU\ FXWRII GDWH IRU VDQFWLRQV DJDLQVW +LW]HPDQ IRU FRXUWUHJDUGLQJGLVFRYHU\IRUDEXVHRIGLVFUHWLRQ50, IDLOXUHWRDWWHQGKLVGHSRVLWLRQDQGWRFRPSHO+LW]HPDQWR )GDWm$QDEXVHRIGLVFUHWLRQLVGHILQHGDVDGHILQLWH DSSHDU IRU KLV GHSRVLWLRQ 7KH GLVWULFW FRXUW VFKHGXOHG D DQGILUPFRQYLFWLRQWKDWWKHWULDOFRXUWFRPPLWWHGDFOHDUHUURU FRQIHUHQFH FDOO IRU $XJXVW UHJDUGLQJ 6LQJOHWRQjV RI MXGJPHQWl 7UHSHO Y 5RDGZD\ ([SUHVV ,QF )G PRWLRQVWRH[WHQGWKHGLVFRYHU\FXWRIIGDWHDQGIRUVDQFWLRQV WK&LU$QGZHUHYLHZGHQRYRDGLVWULFW FRXUWjVJUDQWRIDPRWLRQWRGLVPLVVIRUODFNRIVXEMHFWPDWWHU 2Q$XJXVWWKHGLVWULFWFRXUWGHQLHGDVPRRWWKH MXULVGLFWLRQ&R\QHY$PHULFDQ7REDFFR&R)G JRYHUQPHQWjV PRWLRQ WR VWD\ DOO VFKHGXOLQJ GDWHV DQG RQ WK&LU $XJXVWWKHGLVWULFWFRXUWJUDQWHGWKHJRYHUQPHQWjV PRWLRQ WR GLVPLVV IRU ODFN RI VXEMHFW PDWWHU MXULVGLFWLRQ %&HUWLILFDWLRQDQG6XEVWLWXWLRQ SXUVXDQWWR)HG5&LY3E7KHFRXUWH[SODLQHGWKDW GHWHUPLQLQJZKHWKHU+LW]HPDQKDGDFWHGLQWKHVFRSHRIKLV :HKDYHKHOGWKDWm>W@KH$WWRUQH\*HQHUDOjVFHUWLILFDWLRQ HPSOR\PHQWZDVVXEMHFWWRUHYLHZE\WKHGLVWULFWFRXUWnWKH SURYLGHVSULPDIDFLHHYLGHQFHWKDWWKHHPSOR\HHZDVDFWLQJ JRYHUQPHQWjVFHUWLILFDWLRQZDVQRWFRQFOXVLYHHYLGHQFH%XW ZLWKLQ WKH VFRSH RI HPSOR\PHQWl 50, )G DW WKH GLVWULFW FRXUW DOVR H[SODLQHG WKDW WKH JRYHUQPHQWjV 7KXV WR FRQWHVW WKH SURSULHW\ RI VXEVWLWXWLRQ WKH SODLQWLII FHUWLILFDWLRQ ZDV SULPD IDFLH HYLGHQFH WKDW +LW]HPDQ ZDV PXVWSURGXFHHYLGHQFHWKDWGHPRQVWUDWHVWKDWWKHHPSOR\HH DFWLQJLQWKHVFRSHRIKLVHPSOR\PHQWDQGWKDW6LQJOHWRQKDG ZDVQRWDFWLQJLQWKHVFRSHRIHPSOR\PHQW,IWKHSODLQWLII SUHVHQWHG LQVXIILFLHQW HYLGHQFH WR UHEXW WKH JRYHUQPHQWjV SURGXFHVVXFKHYLGHQFHWKHJRYHUQPHQWPXVWWKHQSURGXFH SULPDIDFLHHYLGHQFH7KHFRXUWVWDWHGm3ODLQWLIIjVUHVSRQVH HYLGHQWLDU\VXSSRUWIRULWVFHUWLILFDWLRQ:HDJUHHZLWKWKH LVLQDGHTXDWHDVDPDWWHURIODZWRFKDOOHQJHWKH$WWRUQH\ GLVWULFWFRXUWWKDW6LQJOHWRQIDLOHGWRSURYLGHHYLGHQFHIURP *HQHUDOjV FHUWLILFDWLRQ DQG WKH VXEVWLWXWLRQ RI WKH 8QLWHG ZKLFK ZH FRXOG UHDVRQDEO\ ILQG WKDW +LW]HPDQ ZDV DFWLQJ 6WDWHVDVSDUW\GHIHQGDQW$FFRUGLQJO\WKH&RXUWFRQFOXGHV RXWVLGHWKHVFRSHRIKLVHPSOR\PHQWDWWKHWLPHRIWKHDOOHJHG WKDWWKHUHLVQRLVVXHRIPDWHULDOIDFWRQZKHWKHU+LW]HPDQ WRUWLRXVFRQGXFW DFWHG ZLWKLQ WKH VFRSH RI KLV HPSOR\PHQWl s$ DW 'HFLVLRQ DQG 2UGHU *UDQWLQJ 'HIjV 0RW WR 'LVPLVV +DYLQJ GHFLGHG WKDW WKH 8QLWHG 6WDWHV DSSURSULDWHO\ VXEVWLWXWHGLWVHOIIRU+LW]HPDQWKHGLVWULFWFRXUWFRQFOXGHG 7KH UDWLRQDOH EHKLQG SHUPLWWLQJ WKH GLVWULFW FRXUW WR UHVROYH GLVSXWHV RI IDFW QHFHVVDU\ WR WKH GHWHUPLQDWLRQ RI VFRSH RI HPSOR\PHQW LV WKDW m&RQJUHVV IDPLOLDU DV LW FOHDUO\ ZDV ZLWK VXPPDU\ MXGJPHQW SUDFWLFH 7KH JRYHUQPHQW UHIXVHG WR OHW +LW]HPDQ EH GHSRVHG E\ 6LQJOHWRQ ZRXOG QRW KDYH ZRUGHG G DV LW GLG LI LW LQWHQGHG WKDW ,Q D OHWWHU WR 6LQJOHWRQjV FRXQVHO RQ sXQH $VVLVWDQW 86 VXEVWLWXWLRQ ZRXOG EH XQDYDLODEOH LQ DOO FDVHV ZKHUH D VXPPDU\ MXGJPHQW $WWRUQH\ 3DPHOD 0 6WDQHN ZURWH m, FDQQRW DJUHH WR VHW XS WKH RQ JURXQGV RI LPPXQLW\ ZRXOG EH LQDSSURSULDWHl 0HOR )G DW GHSRVLWLRQ ZKHQ WKH ZKROH SRLQW RI WKH FDVH ODZ WKDW ZH KDYH FLWHG LQ RXU 86& G SURYLGHV WKDW m>L@Q WKH HYHQW WKDW WKH $WWRUQH\ 0RWLRQ WR 'LVPLVV LV WKDW WKH 8QLWHG 6WDWHV DQG LWV RIILFLDOV VKRXOG QRW EH *HQHUDO KDV UHIXVHG WR FHUWLI\ VFRSH RI RIILFH RU HPSOR\PHQW XQGHU WKLV UHTXLUHG WR H[SHQG WKH WLPH DQG WKH UHVRXUFHV QHFHVVDU\ WR GHIHQG WKLV VHFWLRQ WKH HPSOR\HH PD\ DW DQ\ WLPH EHIRUH WULDO SHWLWLRQ WKH FRXUW WR NLQG RI DFWLRQ ,I WKH sXGJH GRHV UXOH WKDW IDFWXDO LVVXHV QHHG WR EH ILQG DQG FHUWLI\ WKDW WKH HPSOR\HH ZDV DFWLQJ ZLWK WKH VFRSH RI KLV RIILFH UHVROYHG WKHQ , ZLOO EH DYDLODEOH IRU GHSRVLWLRQ LQ $XJXVW l s$ DW RU HPSOR\PHQWl 3OjV 0RW WR &RPSHO 'LVF ([ $ 6LQJOHWRQY8QLWHG6WDWHV 1R 1R 6LQJOHWRQY8QLWHG6WDWHV WKDW6LQJOHWRQjVFODLPVFRXOGQRWEHKHDUGLQDGLVWULFWFRXUW FRXUWHUUHGLQGLVPLVVLQJKLVFODLPVIRUZDQWRIHYLGHQFHWKDW XQGHU WKH )HGHUDO 7RUW &ODLPV $FW m)7&$l 7KH FRXUW +LW]HPDQZDVQRWDFWLQJLQWKHVFRSHRIKLVHPSOR\PHQW GLVPLVVHG 6LQJOHWRQjV GHIDPDWLRQ FODLP ZLWK SUHMXGLFH SXUVXDQW WR 86& K ZKLFK OLVWV OLEHO DQGRU ,,$1$/ VLF@ PRWLRQ WR GLVPLVVl DQG mGHWHUPLQLQJ VHH DOVR $UERXU Y sHQNLQV )G WK &LU $SSHOOHHjV PRWLRQ WR GLVPLVV SULRU WR WKH GHSRVLWLRQ RI :H KDYH VWDWHG WKDW m>Z@KHWKHU DQ HPSOR\HH ZDV +LW]HPDQl $SSHOODQWjV %U DW $FFRUGLQJ WR DFWLQJZLWKLQWKHVFRSHRIKLVHPSOR\PHQWLVDTXHVWLRQRI 6LQJOHWRQ WKH JRYHUQPHQWjV PRWLRQ WR GLVPLVV IRU ODFN RI ODZQRWIDFWPDGHLQDFFRUGDQFHZLWKWKHODZRIWKHVWDWH VXEMHFWPDWWHUMXULVGLFWLRQXQGHU)HG5&LY3EZDV ZKHUH WKH FRQGXFW RFFXUUHGl 50, 7LWDQLXP &R Y D IDFLDO DWWDFN RQ WKH GLVWULFW FRXUWjV VXEMHFW PDWWHU :HVWLQJKRXVH(OHFWULF&RUS)GWK&LU MXULVGLFWLRQ DQG WKXV KLV FRPSODLQW VKRXOG KDYH EHHQ +RZHYHU mZKHQ D GLVWULFW FRXUW LV UHYLHZLQJ D VXIILFLHQW HYLGHQFH WR GHIHDW WKH JRYHUQPHQWjV PRWLRQ WR FHUWLILFDWLRQTXHVWLRQXQGHUWKH:HVWIDOO$FWLWPXVWLGHQWLI\ GLVPLVV6LQJOHWRQIXUWKHUFODLPVWKDWKHGLGWU\WRSURYLGH DQGUHVROYHGLVSXWHGLVVXHVRIIDFWQHFHVVDU\WRLWVGHFLVLRQ DGGLWLRQDO HYLGHQFH WKURXJK D GHSRVLWLRQ RI +LW]HPDQ EHIRUHHQWHULQJLWVRUGHUl$UWKXUY8QLWHG6WDWHV)G %HFDXVH WKH GLVWULFW FRXUW GHQLHG KLV PRWLRQ WR SRVWSRQH WK&LUVHHDOVR+HXWRQY$QGHUVRQ UXOLQJ RQ WKH JRYHUQPHQWjV PRWLRQ WR GLVPLVV SHQGLQJ KLV )GWK&LU0HORY+DIHU)G GHSRVLWLRQRI+LW]HPDQDQGEHFDXVHWKHFRXUWGLGQRWUXOHRQ UG&LU.LPEURY9HOWHQ)G KLV PRWLRQV WR H[WHQG WKH GLVFRYHU\ FXWRII RU WR FRPSHO +LW]HPDQWRDWWHQGKLVGHSRVLWLRQ6LQJOHWRQDOOHJHVWKDWWKH $PRQJ PRWLRQV WR GLVPLVV IRU ODFN RI VXEMHFW PDWWHU MXULVGLFWLRQ ,Q RWKHU ZRUGV D SODLQWLII VXLQJ D IHGHUDO HPSOR\HH PD\ QRW SXUVXDQW WR )HG 5 &LY 3 E ZH KDYH GLVWLQJXLVKHG EHWZHHQ IDFLDO FKDOOHQJH WKH JRYHUQPHQWjV UHPRYDO RI WKH FDVH WR IHGHUDO FRXUW EXW RQFH DQG IDFWXDO DWWDFNV 6HH 2KLR 1DWjO /LIH ,QV &R Y 8QLWHG 6WDWHV LQ IHGHUDO FRXUW WKH SODLQWLII PD\ FKDOOHQJH WKH JRYHUQPHQWjV VXEVWLWXWLRQ )G WK &LU +RZHYHU DOWKRXJK KH FODLPV WR FKDOOHQJH RI LWVHOI DV GHIHQGDQW ,I WKH GLVWULFW FRXUW ILQGV WKDW WKH IHGHUDO HPSOR\HH WKH JRYHUQPHQWjV PRWLRQ WR GLVPLVV IRU ODFN RI VXEMHFW PDWWHU MXULVGLFWLRQ ZDV DFWLQJ LQ WKH VFRSH RI HPSOR\PHQW DQG WKHUHIRUH WKDW VXEVWLWXWLRQ RI 6LQJOHWRQ UHDOO\ FKDOOHQJHV WKH JRYHUQPHQWjV FHUWLILFDWLRQ DQG WKH 8QLWHG 6WDWHV DV GHIHQGDQW LV DSSURSULDWH LW PXVW DVVHVV WKH SODLQWLIIjV VXEVWLWXWLRQ $V GLVFXVVHG EHORZ 6LQJOHWRQ GRHV QRW FRQWHQG WKDW WKH FODLPV SXUVXDQW WR WKH )HGHUDO 7RUW &ODLPV $FW )7&$ ,I WKH GLVWULFW GLVWULFW FRXUW KDG MXULVGLFWLRQ RYHU WKH FDVH LI WKH JRYHUQPHQWjV VFRSHRI FRXUW ILQGV WKDW WKH IHGHUDO HPSOR\HH ZDV QRW DFWLQJ LQ WKH VFRSH RI HPSOR\PHQW FHUWLILFDWLRQ DQG VXEVWLWXWLRQ ZHUH SURSHU 6LQJOHWRQ LQVWHDG HPSOR\PHQW DQG WKHUHIRUH WKDW VXEVWLWXWLRQ LV LQDSSURSULDWH WKH GLVWULFW DUJXHV WKDW WKH JRYHUQPHQWjV VFRSHRIHPSOR\PHQW FHUWLILFDWLRQ DQG FRXUW UHWDLQV MXULVGLFWLRQ RYHU WKH FDVH DQG DVVHVVHV WKH FODLPV SXUVXDQW VXEVWLWXWLRQ ZHUH QRW SURSHU WR VWDWH WRUW ODZ*XWLHUUH] 86 DW SOXUDOLW\ RSLQLRQ