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 s2( s 5,&+$5' ; 3ODLQWLII$SSHOODQW    1R Y  !  '5 (':$5' 5$< s5  6$0$5,7$1 +263,7$/DND  &2/80%,$ +263,7$/  /(;,1*721  'HIHQGDQWV$SSHOOHHV   1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH(DVWHUQ'LVWULFWRI.HQWXFN\DW/H[LQJWRQ 1Rn+HQU\5:LOKRLWsU'LVWULFWsXGJH 6XEPLWWHG$SULO 'HFLGHGDQG)LOHG0D\ %HIRUH'$8*+75(<DQG0225(&LUFXLWsXGJHV 6,03621'LVWULFWsXGJH 7KH +RQRUDEOH &KDUOHV 5 6LPSVRQ ,,, 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH :HVWHUQ 'LVWULFW RI .HQWXFN\ VLWWLQJ E\ GHVLJQDWLRQ   5LFKDUGY5D\HWDO 1R BBBBBBBBBBBBBBBBB &2816(/ 21 %5,()  &OD\WRQ / 5RELQVRQ /\QQ 5LNKRII .RORNRZVN\ s(1.,16 3,6$&$12 52%,1621 %$,/(< /H[LQJWRQ .HQWXFN\ %\URQ 1 0LOOHU 7+2036210,//(5 6,03621/RXLVYLOOH.HQWXFN\ IRU$SSHOOHHVsRHs5LFKDUG0HPSKLV7HQQHVVHHSURVH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 3(5 &85,$0  sRH s 5LFKDUG D IHGHUDO SULVRQHU SURFHHGLQJ SUR VH DSSHDOV D GLVWULFW FRXUW MXGJPHQW GLVPLVVLQJKLVGLYHUVLW\PHGLFDOPDOSUDFWLFHDFWLRQ6HH 86&†7KLVFDVHKDVEHHQUHIHUUHGWRDSDQHORIWKH FRXUWSXUVXDQWWR5XOHM5XOHVRIWKH6L[WK&LUFXLW 8SRQH[DPLQDWLRQWKLVSDQHOXQDQLPRXVO\DJUHHVWKDWRUDO DUJXPHQWLVQRWQHHGHG)HG5$SS3D 6HHNLQJ PRQHWDU\ UHOLHI 5LFKDUG ILOHG D FRPSODLQW RQ 0D\DJDLQVW(GZDUG5D\sU0'DQG6DPDULWDQ +RVSLWDO5LFKDUGDOOHJHGWKDWGXULQJKLVLQFDUFHUDWLRQDWWKH )HGHUDO &RUUHFWLRQDO ,QVWLWXWLRQ ORFDWHG LQ 0HPSKLV 7HQQHVVHHm)&,0HPSKLVl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jV LQVWUXFWLRQV  5LFKDUGY5D\HWDO 1R 1R 5LFKDUGY5D\HWDO  WKH FRXUW FOHUN SXUVXDQW WR WKH PDLOER[ UXOH VHW IRUWK LQ )ROORZLQJ WKH VXUJHU\ 5LFKDUG H[SHULHQFHG SDLQ LQ KLV +RXVWRQ EDFNDQGGLIILFXOW\XULQDWLQJ5LFKDUGDOOHJHGWKDWSXVIRUPHG DURXQGWKHFDWKHWHUKLVXULQHFRQWDLQHGEORRGDQGFORWVDQG $FFRUGLQJO\WKHUHTXHVWIRUMXGLFLDOQRWLFHLVGHQLHGWKH KHVXIIHUHGFODPP\ZHWVNLQFKLOOVmLWFKLQJUDVKDQGEOLVWHUV PRWLRQ IRU OHDYH WR FRUUHFW WKH UHFRUG LV JUDQWHG DQG WKH RQKLVEDFNl2Q$SULODQG0D\PHGLFDO GLVWULFWFRXUWjVMXGJPHQWLVYDFDWHGDQGWKLVFDVHLVUHPDQGHG VWDII DW )&,0HPSKLV LQVHUWHG FDWKHWHUV LQWR 5LFKDUGjV WRWKHGLVWULFWFRXUWIRUIXUWKHUSURFHHGLQJV5XOHM& EODGGHULQRUGHUWRGUDLQWKHEODGGHUDQGSURYLGHSDLQUHOLHI 5XOHVRIWKH6L[WK&LUFXLW IRU5LFKDUG$VXEVHTXHQWPHGLFDOH[DPLQDWLRQUHYHDOHGWKH SUHVHQFHRIDSRUWLRQRIDFDWKHWHUDSSUR[LPDWHO\WKUHHLQFKHV LQ OHQJWK LQ 5LFKDUGjV EODGGHU  2Q 0D\   'U :LOOLDP 6KDSSOH\ UHPRYHG WKH FDWKHWHU VHJPHQW IURP 5LFKDUGjVEODGGHUDWDKRVSLWDOLQ0HPSKLV5LFKDUGDOOHJHG WKDWERWKKLVUHFWDOLQMXU\DQGEODGGHULQMXU\UHVXOWLQJIURP WKHFDWKHWHUVHJPHQWORFDWHGLQKLVEODGGHUZHUHFDXVHGE\ WKH QHJOLJHQFH RI 5D\ DQG 6DPDULWDQ +RVSLWDO GXULQJ KLV SURVWDWHVXUJHU\LQ 7KH GHIHQGDQWV ILOHG PRWLRQV IRU VXPPDU\ MXGJPHQW WR ZKLFK 5LFKDUG UHVSRQGHG  7KH GLVWULFW FRXUW JUDQWHG WKH GHIHQGDQWVjPRWLRQVDQGGLVPLVVHG5LFKDUGjVFRPSODLQWDV WLPHEDUUHG5LFKDUGKDVILOHGDWLPHO\DSSHDO+HKDVDOVR ILOHGDUHTXHVWIRUMXGLFLDOQRWLFHDQGDPRWLRQWRJUDQWWKH GLVWULFW FRXUW OHDYH WR FRUUHFW WKH UHFRUG WR ZKLFK WKH GHIHQGDQWVKDYHUHVSRQGHG :HUHYLHZWKHGLVWULFWFRXUWjVJUDQWRIVXPPDU\MXGJPHQW GH QRYR  .LQFDLG Y *LEVRQ  )G   WK &LU 6XPPDU\MXGJPHQWLVDSSURSULDWHZKHQWKHHYLGHQFH SUHVHQWHG VKRZV mµWKDW WKHUH LV QR JHQXLQH LVVXH DV WR DQ\ PDWHULDO IDFW DQG WKDW WKH PRYLQJ SDUW\ LV HQWLWOHG WR D MXGJPHQWDVDPDWWHURIODZjl,GTXRWLQJ)HG5&LY3 F :KHQIHGHUDOFRXUWMXULVGLFWLRQLVEDVHGXSRQGLYHUVLW\RI FLWL]HQVKLSDVKHUHWKLVFRXUWPXVWDSSO\WKHODZRIWKHIRUXP VWDWH  6HH(ULH55Y7RPSNLQV86 6WDOERVN\ Y %HOHZ  )G   WK &LU  %HFDXVH 5LFKDUG DOOHJHG D VWDWH WRUW FODLP RI PHGLFDO PDOSUDFWLFHWKHDSSOLFDEOHVWDWHVWDWXWHRIOLPLWDWLRQVVKRXOG EHDSSOLHG6HH+RGJHY6HUY0DFK&R)G  5LFKDUGY5D\HWDO 1R 1R 5LFKDUGY5D\HWDO  WK&LU,Q.HQWXFN\DPHGLFDOPDOSUDFWLFHDFWLRQ HJRYHUQLQJWKHILOLQJRIFLYLOFRPSODLQWVLQIHGHUDOFRXUW PXVW EH EURXJKW ZLWKLQ RQH \HDU RI WKH GDWH RQ ZKLFK WKH LV FRPSDUDEOH WR WKH ODQJXDJH RI )HG 5 $SS 3 D FDXVHRIDFWLRQDFFUXHV.\5HY6WDW$QQ†H LQWHUSUHWHGLQ+RXVWRQY/DFN6HH/HZLV)GDW 0LFKLH$PHGLFDOPDOSUDFWLFHDFWLRQDFFUXHVmDWWKH VHH DOVR *DUYH\ Y 9DXJKQ  )G   WK &LU WLPH WKH LQMXU\ LV ILUVW GLVFRYHUHG RU LQ WKH H[HUFLVH RI KROGLQJWKDWWKHODQJXDJHRIERWKUXOHVLVmVRVLPLODU UHDVRQDEOHFDUHVKRXOGKDYHEHHQGLVFRYHUHGl.\5HY6WDW WKDW DQ LGHQWLFDO LQWHUSUHWDWLRQ LV ZDUUDQWHGl &RRSHU Y $QQ†0LFKLH %URRNVKLUH  )G   WK &LU  TXRWLQJ WKH VLPLODUODQJXDJHDQDO\VLVLQ/HZLVDQG*DUYH\ZLWKDSSURYDO ,WLVXQGLVSXWHGWKDW5LFKDUGEHFDPHDZDUHRIKLVEODGGHU %RWK UXOHV UHTXLUH WKDW LQ RUGHU WR LQLWLDWH DQ DFWLRQ WKH LQMXU\ ZKHQ 'U 6KDSSOH\ UHPRYHG WKH SRUWLRQ RI FDWKHWHU DSSURSULDWHOHJDOGRFXPHQWVPXVWEHmILOHGZLWKWKHFOHUNRI IURP KLV EODGGHU RQ 0D\    7KXV WKH VWDWXWH RI WKHGLVWULFWFRXUWl6HH)HG5&LY3H)HG5$SS3 OLPLWDWLRQVEHJDQWRUXQRQ0D\DQGH[SLUHGRQH D+RXVWRQY/DFN86DW6HFRQGDOORIWKH \HDUODWHU+RZHYHUVLQFH0D\IHOORQD6DWXUGD\ FRQFHUQV KLJKOLJKWHG E\ WKH 6XSUHPH &RXUW LQ +RXVWRQ Y 5LFKDUG KDG XQWLO 0D\   WR WLPHO\ ILOH WKH LQVWDQW /DFN DUH SUHVHQW ZKHQ D SUR VH SULVRQHU ILOHV D FLYLO FRPSODLQW6HH)HG5&LY3D5LFKDUGjVFRPSODLQWZDV FRPSODLQWm)XQGDPHQWDOO\WKHUXOHLQ+RXVWRQLVDUXOHRI VWDPSHGmILOHGlE\WKHFRXUWFOHUNRQ0D\ HTXDOWUHDWPHQWLWVHHNVWRHQVXUHWKDWLPSULVRQHGOLWLJDQWV DUHQRWGLVDGYDQWDJHGE\GHOD\VZKLFKRWKHUOLWLJDQWVPLJKW ,Q+RXVWRQY/DFN86WKH8QLWHG UHDGLO\RYHUFRPH,WVHWVIRUWKDEULJKWOLQHUXOHWKDWILOLQJ 6WDWHV6XSUHPH&RXUWKHOGWKDWDSURVHSHWLWLRQHUjVQRWLFHRI RFFXUV ZKHQ WKH SHWLWLRQHU GHOLYHUV KLV SOHDGLQJ WR SULVRQ DSSHDORQKDEHDVFRUSXVUHYLHZLVGHHPHGILOHGRQWKHGDWH DXWKRULWLHV IRU IRUZDUGLQJ WR WKH FRXUW FOHUNl  /HZLV  WKDWLWLVWXUQHGRYHUWRSULVRQRIILFLDOVIRUWUDQVPLWWDOWRWKH )GDW)LQDOO\PDQ\RIWKHFLUFXLWVH[WHQGLQJWKHILOLQJ FRXUW  %DVHG XSRQ DQ LQWHUSUHWDWLRQ RI WKH ODQJXDJH RI UXOHVRI+RXVWRQY/DFNWRFLYLOFRPSODLQWVKDYHWDNHQQRWH )HGHUDO5XOHVRI$SSHOODWH3URFHGXUHDDQGDZKLFK WKDW+RXVWRQJLYHVQRLQGLFDWLRQLQHLWKHUWH[WRUDQDO\WLFDO SURYLGH WKDW DQ DSSHDO LV FRPPHQFHG ZLWK WKH ILOLQJ RI D IUDPHZRUNWKDWLWVKRXOGEHOLPLWHGWRWKHKDEHDVFRQWH[W QRWLFHRIDSSHDOZLWKWKHGLVWULFWFOHUNWKH6XSUHPH&RXUW 6HH 'RU\ Y 5\DQ  )G   QG &LU  KHOG WKDW WKH ODQJXDJH RI WKH UXOHV ZDV VXIILFLHQW WR DOORZ &RRSHU)GDW/HZLV)GDW$FFRUGLQJO\ DFFRPPRGDWLRQ IRU WKH XQLTXH FLUFXPVWDQFHV RI DQ ZHKROGWKDW+RXVWRQY/DFNDSSOLHVWRFLYLOFRPSODLQWVILOHG LQFDUFHUDWHGSURVHSHWLWLRQHU,GDW,QUHDFKLQJWKLV E\SURVHSHWLWLRQHUVLQFDUFHUDWHGDWWKHWLPHRIILOLQJ KROGLQJWKH&RXUWLGHQWLILHGVHYHUDOFRQFHUQVSDUWLFXODUWRWKH LQFDUFHUDWHG SHWLWLRQHU ZLWKRXW FRXQVHO  WKH SHWLWLRQHUjV 8SRQ UHYLHZ ZH YDFDWH WKH GLVWULFW FRXUWjV MXGJPHQW LQDELOLW\ WR FRQWURO WKH QRWLFH RI DSSHDO DIWHU LW KDV EHHQ GLVPLVVLQJ5LFKDUGjVFRPSODLQWDVXQWLPHO\DQGUHPDQGIRU GHOLYHUHGWRSULVRQRIILFLDOVWKHSHWLWLRQHUjVODFNRIOHJDO IXUWKHU SURFHHGLQJV  5LFKDUG SUHVHQWHG HYLGHQFH WKDW KH FRXQVHO WR LQVWLWXWH DQG PRQLWRU WKH SURFHVV DQG  DQ\ VXEPLWWHGKLVFRPSODLQWWRSULVRQRIILFLDOVIRUPDLOLQJSULRU LQFHQWLYHRQWKHSDUWRISULVRQDXWKRULWLHVWRGHOD\DSURVH WRWKHH[SLUDWLRQRIWKHRQH\HDUVWDWXWHRIOLPLWDWLRQV7KH SULVRQHUjVILOLQJEH\RQGDQDSSOLFDEOHWLPHOLPLW,G GHIHQGDQWVGLGQRWRIIHUDQ\HYLGHQFHRUDUJXPHQWWRUHIXWH 5LFKDUGjV VWDWHPHQWV WKDW KLV FRPSODLQW ZDV SODFHG LQ WKH $OORIWKHMXVWLILFDWLRQVIRUDSSO\LQJWKHPDLOER[ UXOH LQ SULVRQ PDLO V\VWHP EHIRUH 0D\    7KHUHIRUH +RXVWRQY/DFNDUHSUHVHQWLQWKHLQVWDQWFDVH)LUVWDVQRWHG 5LFKDUGjVFRPSODLQWVKRXOGEHGHHPHGWLPHO\ILOHGDVRIWKH E\WKH)RXUWK&LUFXLWLQ/HZLVY5LFKPRQG&LW\3ROLFH'HSjW GDWHLWZDVVXEPLWWHGWRSULVRQDXWKRULWLHVIRUIRUZDUGLQJWR )GWK&LUWKHODQJXDJHRI)HG5&LY3