United States v. Horton

Opinion

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21  8QLWHG6WDWHVY+RUWRQHWDO 1RV 3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

(/(&7521,& &,7$7,21  )(' $SS 3 WK &LU

YLRODWLYHRI&DUULJHUDQGWKHVXEVHTXHQWFRQVHQWWRVHDUFKWKH )LOH 1DPH DS

DSDUWPHQWUHQGHUHGE\+RUWRQGLGQRWmSXUJHWKHWDLQWlRIWKH LOOHJDOFRQGXFW$FFRUGLQJO\ZHUHYHUVHWKHGLVWULFWFRXUWjV GHQLDORIGHIHQGDQWVjPRWLRQVWRVXSSUHVVWKHHYLGHQFHVHL]HG 81,7('67$7(6&28572)$33($/6 LQ +RUWRQjV DSDUWPHQW DQG UHPDQG IRU IXUWKHU SURFHHGLQJV )257+(6,;7+&,5&8,7 FRQVLVWHQWZLWKRXUGHWHUPLQDWLRQV BBBBBBBBBBBBBBBBB

81,7(' 67$7(6 2) $0(5,&$ ; 3ODLQWLII$SSHOOHH    1RV Y  !  6+< +($7+DQG  &$50(1 +25721  'HIHQGDQWV$SSHOODQWV   1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH:HVWHUQ'LVWULFWRI.HQWXFN\DW/RXLVYLOOH 1Rn&KDUOHV56LPSVRQ,,, &KLHI'LVWULFWsXGJH 6XEPLWWHG0DUFK 'HFLGHGDQG)LOHG$XJXVW %HIRUH.(,7+6,/(5DQG&/$<&LUFXLWsXGJHV BBBBBBBBBBBBBBBBB &2816(/ 21%5,()6FRWW&&R[/RXLVYLOOH.HQWXFN\0DUN' &KDQGOHU /RXLVYLOOH .HQWXFN\ IRU $SSHOODQWV  7HUU\ 0 &XVKLQJ0RQLFD:KHDWOH\$66,67$1781,7('67$7(6 $77251(<6/RXLVYLOOH.HQWXFN\IRU$SSHOOHH

  8QLWHG6WDWHVY+RUWRQHWDO 1RV 1RV 8QLWHG6WDWHVY+RUWRQHWDO 

BBBBBBBBBBBBBBBBB EXLOGLQJl $SSHOOHHjV %U DW    +RZHYHU WKH PHUH SRVVHVVLRQRIDNH\ZLOOQRWWUDQVIRUPDQLOOHJDOHQWU\LQWRD 23,1,21 YDOLGRQH,WLVWKHDXWKRULW\WRHQWHUQRWWKHPDQQHURIHQWU\ BBBBBBBBBBBBBBBBB WKDWSURYLGHVWKHOHJDOLW\IRUWKHRIILFHUVjFRQGXFWWKHPRVW FDVXDOUHDGLQJRI&DUULJHUUHYHDOVWKDWDQ\HQWU\LQWRDORFNHG '$021s.(,7+&LUFXLWsXGJH'HIHQGDQWV$SSHOODQWV DSDUWPHQWEXLOGLQJZLWKRXWSHUPLVVLRQH[LJHQF\RUDZDUUDQW 6K\+HDWKDQG&DUPHQ+RUWRQm'HIHQGDQWVlSOHGJXLOW\WR LVSURKLELWHG FRQVSLUDF\ WR SRVVHVV ZLWK LQWHQW WR GLVWULEXWH FRFDLQH LQ YLRODWLRQRI86&†DQGSRVVHVVLRQZLWKLQWHQWWR $V QRWHG HDUOLHU WKH JRYHUQPHQW DUJXHV WKDW +RUWRQjV GLVWULEXWHFRFDLQHLQYLRODWLRQRI86&†D 7KH FRQVHQWWRWKHVHDUFKZDVDQmLQWHUYHQLQJDFWRIIUHHZLOOl GHIHQGDQWV HQWHUHG WKHLU UHVSHFWLYH SOHD DJUHHPHQWV ZKLFKmSXUJHG>WKHHQWU\@RILWVWDLQWl$SSHOOHHjV%UDW FRQWLQJHQW XSRQ WKHLU DELOLW\ WR DSSHDO WKH GLVWULFW FRXUWjV FLWLQJ:RQJ6XQY8QLWHG6WDWHV86  GHQLDO RI WKHLU PRWLRQV WR VXSSUHVV HYLGHQFH GLVFRYHUHG +RZHYHULWZDVWKHRIILFHUVjLOOHJDOHQWU\LQWRWKHFRPPRQ SXUVXDQWWRDZDUUDQWOHVVVWRSRI+HDWKDQGVXEVHTXHQWVHDUFK DUHDV RI WKH EXLOGLQJ WKDW OHG WKHP WR 0V +RUWRQjV GRRU RI +RUWRQjV DSDUWPHQW  )RU WKH UHDVRQV WKDW IROORZ  ZH &RQVHTXHQWO\ WKH FRQVHQW IRU WKH HQVXLQJ VHDUFK DQG WKH 5(9(56(WKHGLVWULFWFRXUWjVRUGHUGHQ\LQJWKHGHIHQGDQWVj LOOHJDOGUXJVPXVWEHVXSSUHVVHGEHFDXVHWKH\ZHUHmJDLQHG PRWLRQVWRVXSSUHVV DVDUHVXOWRI>WKHRIILFHUVj@SUHVHQFHLQWKHFRPPRQDUHDVRI WKHEXLOGLQJl&DUULJHU)GDW$FFRUGLQJO\ZH ,%$&.*5281' KROG WKDW WKH WDLQW RI WKH LOOHJDO DUUHVW DQG HQWU\ LQWR WKH DSDUWPHQWEXLOGLQJZDVQRWSXUJHGE\+RUWRQjVLQWHUYHQLQJ 2IILFHU 5RG 6HHO\H D QDUFRWLFV LQYHVWLJDWRU IRU WKH FRQVHQW WR WKH VHDUFK DQG WKXV WKH IUXLWV RI WKH FRQVHQW /RXLVYLOOH 3ROLFH 'HSDUWPHQW  LQLWLDOO\ REVHUYHG +HDWK LQ VKRXOGKDYHEHHQVXSSUHVVHGDVWRERWKGHIHQGDQWV HDUO\$SULORI2IILFHU6HHO\HWHVWLILHGWKDWKLVLQWHUHVW LQ+HDWKZDVSLTXHGEHFDXVHKHmPLVLGHQWLILHG>+HDWK@DQG ,,,&21&/86,21 WKRXJKWKHZDVDQRWKHUSHUVRQWKDW>KH@KDGEHHQORRNLQJDWl s$DW2IILFHU6HHO\HIROORZHG+HDWKDQGREVHUYHG %\FRQWLQXLQJWRGHWDLQ+HDWKDIWHUIDLOLQJWRFRQQHFWKLP KLP VWRSSLQJ DW D ORFDWLRQ WKDW ZDV UHSRUWHGO\ XQGHU ZLWKFULPLQDODFWLYLW\WKHRIILFHUVjDFWLRQVZHUHLQFRQVLVWHQW LQYHVWLJDWLRQIRUGUXJ DFWLYLW\7KHRIILFHUVWKHQIROORZHG ZLWK WKH OLPLWV RI D 7HUU\ VWRS DV VHW RXW LQ %HUNHPHU +HDWK XQWLO KH FDPH WR D UHVLGHQWLDO DSDUWPHQW EXLOGLQJ DW )XUWKHUWKHRIILFHUVjHQWU\LQWRWKHDSDUWPHQWEXLOGLQJZDV ZKLFK WLPH 2IILFHU 6HHO\H FODLPHG +HDWK EHJDQ WR GULYH VXVSLFLRXVO\LQWKDWKHmFLUFOHGWKHEORFNVHYHUDOWLPHV>DQG@ ORRN>HG@LQKLVUHDUYLHZPLUURUls$DW2IILFHU6HHO\H  WHVWLILHG WKDW KLV mH[SHULHQFH DQG WUDLQLQJl LQGLFDWHG WKDW :H QRWH WKDW WKLV DUJXPHQW DVVXPHV WKDW +HDWK FRXOG JLYH WKH

+HDWKZDVHQJDJHGLQEHKDYLRUmLQGLFDWLYHRIGUXJWUDIILFNLQJ RIILFHUV SHUPLVVLRQ WR XVH WKH NH\ 7KH JRYHUQPHQW DVVHUWV WKDW +HDWKjV UHOLQTXLVKPHQW RI WKH NH\V HQWLWOHG WKH JRYHUQPHQW WR XVH WKHP WR JDLQ DQGORRNLQJIRUDSROLFHWDLOls$DW7KHDSDUWPHQW HQWU\ WR WKH DSDUWPHQW +RZHYHU WKH JRYHUQPHQW FRQYHUVHO\ FRQWHQGV EXLOGLQJ WKDW +HDWK HQWHUHG ZDV mD EULFN WKUHHVWRU\ WKDW +HDWK ODFNV WKH UHTXLVLWH VWDQGLQJ WR RSSRVH WKH VHDUFK RI +RUWRQjV

DSDUWPHQW EXLOGLQJ ZLWK D SDUNLQJ ORW  7KH RQH FRPPRQ DSDUWPHQW DUJXLQJ WKDW mKDYLQJ D NH\ WR D SODFH GRHV QRW HVWDEOLVK

HQWUDQFH LQWR WKH EXLOGLQJ >UHPDLQV@ ORFNHG DQG UHTXLUHV D VWDQGLQJ WR FKDOOHQJH D VHDUFK RI WKH SODFHl $SSHOOHHjV %U DW  :KLOH

NH\ls$DW WKHVH VWDWHPHQWV DUH QRW HQWLUHO\ FRQWUDGLFWRU\ WKH\ FRQIOLFW LQDVPXFK DV WKH JRYHUQPHQW UHOLHV RQ +HDWKjV FRQVHQW ZKHQ MXVWLI\LQJ WKH RIILFHUjV UHWULHYDO DQG XVH RI WKH NH\V EXW WKHQ FRQWHVWV KLV VWDQGLQJ WR FKDOOHQJH WKH VHDUFK HIIHFWXDWHG WKURXJK WKH XVH RI WKHVH NH\V  8QLWHG6WDWHVY+RUWRQHWDO 1RV 1RV 8QLWHG6WDWHVY+RUWRQHWDO 

VKRSSLQJEDJWKHRIILFHUVDWWHPSWHGWRIROORZKLPDQGIRXQG 6XEVHTXHQWO\ WKURXJK YHKLFOH UHJLVWUDWLRQ DQG FULPLQDO WKDW WKH mHQWUDQFH GRRUV ZHUH ORFNHG DQG FRXOG RQO\ EH SKRWRUHFRUGV2IILFHU6HHO\HZDVDEOHWRLGHQWLI\WKHLQVWDQW RSHQHGE\DNH\RUE\VRPHRQHZLWKLQDFWLYDWLQJDEX]]HU GHIHQGDQWDV6K\+HDWK2IILFHU6HHO\HDOVRGHWHUPLQHGWKDW V\VWHPl  ,G  $IWHU DWWHPSWLQJ WR HQWHU WKH EXLOGLQJ ZKHQ +HDWK KDG WKUHH PLVGHPHDQRU FRQYLFWLRQV DQG RQH IHORQ\ %HDVOH\ZDVDGPLWWHGWKHRIILFHUVXUUHSWLWLRXVO\HQWHUHGWKH GUXJ FRQYLFWLRQ  $SSUR[LPDWHO\ RQH ZHHN ODWHU 2IILFHU DSDUWPHQW EXLOGLQJ DQG EHJDQ WR VHDUFK IRU %HDVOH\ 6HHO\HOHDUQHGIURPDIHOORZQDUFRWLFVRIILFHUWKDW+HDWKZDV 8OWLPDWHO\ WKH RIILFHU ZLWQHVVHG %HDVOH\ DQG &DUULJHU UHSRUWHGO\ WUDIILFNLQJ ODUJH TXDQWLWLHV RI FRFDLQH  2IILFHU HQJDJHGLQDFRQYHUVDWLRQDWWKHGRRURI&DUULJHUjVDSDUWPHQW 6HHO\HjVFRXQWHUSDUWREWDLQHGWKLVLQIRUPDWLRQIURPLQWKDW 8SRQ WKH GHIHQGDQWV GHSDUWXUH WKH RIILFHUV HQWHUHG WKH RIILFHUjVRSLQLRQDmUHOLDEOHlFRQILGHQWLDOLQIRUPDQWs$DW DSDUWPHQWDQGFRQGXFWHGDZDUUDQWOHVVVHDUFKWKDWOHDGWRWKH %DVHGXSRQWKLVLQIRUPDWLRQ2IILFHU6HHO\HGHFLGHGWR GLVFRYHU\RIKHURLQ&DUULJHUVXEVHTXHQWO\ILOHGKLVPRWLRQ mFRQWLQXH>KLV@VXUYHLOODQFHls$DW IRU VXSSUHVVLRQ RI WKH HYLGHQFH ZKLFK WKH GLVWULFW FRXUW GHQLHG 2IILFHU6HHO\HVXUYHLOOHG+HDWKRQWKUHHRWKHURFFDVLRQVLQ $SULO+HQRWHGWKDWm+HDWKDQGRWKHULQGLYLGXDOV>ZRXOG@ 2Q DSSHDO ZH IRXQG WKDW D WHQDQW LQ D ORFNHG EXLOGLQJ DUULYHDWWKH>DSDUWPHQW@DQGDFWVXVSLFLRXVO\ls$DW HQMR\VDmVXEMHFWLYHH[SHFWDWLRQRISULYDF\WKDWWKH)RXUWK 6SHFLILFDOO\ 2IILFHU 6HHO\H GHVFULEHG DQ RFFDVLRQ ZKHQ D $PHQGPHQWSURWHFWVl,GDW:HIXUWKHURSLQHGWKDWWKH mVXEMHFWlDUULYHGDWWKHDSDUWPHQWFRPSOH[LQDEURZQ/H[XV mSHDFHDEOHlQDWXUHRIDQRIILFHUjVHQWU\ZLOOQRWYLWLDWHWKH 6HHO\H IRXQG WKLV QRWDEOH EHFDXVH /H[XV LV DQ H[SHQVLYH GHJUHH RI LQIULQJHPHQW ZKHWKHU LW LV HIIHFWXDWHG mIRUFLEO\ YHKLFOHEUDQG+HDWKDUULYHGVRRQDIWHU+HVWDWHGWKDW+HDWK WKURXJKDZLQGRZRUE\JXLOHWKURXJKDQRUPDOO\ORFNHG FLUFOHGWKHDUHDLQKLVYHKLFOHDQGWKHQmORRN>HG@DURXQGWKH HQWUDQFHGRRUlDQ\HQWU\ZLWKRXWSHUPLVVLRQSUREDEOHFDXVH SDUNLQJORWlSULRUWRHQWHULQJWKHDSDUWPHQWFRPSOH[2IILFHU RUDZDUUDQWLVmDQLOOHJDOHQWU\l,GDWm>%@HFDXVH 6HHO\HWHVWLILHGWKDWDIWHUEHLQJLQVLGHIRUDmVKRUWWLPHlWKH WKHRIILFHUGLGQRWKDYHSUREDEOHFDXVHWRDUUHVWDSSHOODQWRU VXEMHFW H[LWHG WKH SUHPLVHV LQ ZKDW mVHHPHG OLNH D ELJJHU KLVDFFRPSOLFHEHIRUHKHLQYDGHGDQDUHDZKHUHDSSHOODQWKDG MDFNHW  ZDONLQJ DQG KH ZDVQjW PRYLQJ RQH RI KLV DUPVl DOHJLWLPDWHH[SHFWDWLRQRISULYDF\WKHVXEVHTXHQWDUUHVWDQG s$DW2IILFHU6HHO\HVSHFXODWHGWKDWWKHVXEMHFWjVODFN VHL]XUHRIQDUFRWLFVZHUHLQYDOLGl,GDW:HDWWULEXWHG RIH[WUHPLWDOPRYHPHQWZDVFRQVLVWHQWZLWKVRPHRQHZKR SDUWLFXODU VLJQLILFDQFH WR WKH IDFW WKDW WKH RIILFHUV ODFNHG ZDVmVRUWRIKROGLQJVRPHWKLQJls$DW+HIXUWKHU SUREDEOHFDXVHWRDUUHVWWKHGHIHQGDQWVSULRUWRHQWHULQJWKH WHVWLILHGWKDWWKHVXEMHFWGHSDUWHGLQ+HDWKjVYHKLFOHOHDYLQJ DSDUWPHQWEXLOGLQJ6HHLG WKHEURZQ/H[XVSDUNHGRXWVLGHWKHDSDUWPHQWFRPSOH[$V QRWHG DERYH 2IILFHU 6HHO\H FKDUDFWHUL]HG WKLV LQFLGHQW DV :HEHOLHYHWKDWWKHKROGLQJRI&DUULJHULVDSSOLFDEOHKHUH mVXVSLFLRXV>@l+HGHVFULEHGDQRWKHULQFLGHQWZKHUH+HDWK 7KHRIILFHUVLQWKHLQVWDQWPDWWHUHQWHUHGDORFNHGEXLOGLQJ HQJDJHG LQ FRXQWHUVXUYHLOODQFH LH ORRNLQJ DURXQG WKH ZLWKRXW XWLOL]LQJ WKH SURSHU SURFHGXUH DQG WKHUHIRUH WKH SDUNLQJ ORW DQG GULYLQJ DURXQG EHIRUH SDUNLQJ  2Q WKLV HQVXLQJ VHDUFK ZDV YLRODWLYH RI GHIHQGDQWVj VXEMHFWLYH RFFDVLRQ +HDWK SDUNHG KLV FDU DQG ORRNHG DURXQG EHIRUH H[SHFWDWLRQ RI SULYDF\  7KH JRYHUQPHQW FRQWHQGV WKDW UHPRYLQJDSLOORZFDVHZLWKVRPHWKLQJZHLJKLQJKHDYLO\LQ &DUULJHULVGLVWLQJXLVKDEOHDUJXLQJWKDWWKHSROLFHLQWKLV FDVH XVHG mD NH\ ODZIXOO\ VHL]HG IURP +HDWK WR HQWHU WKH  7KH UHFRUG EHIRUH WKLV &RXUW LV VLOHQW DV WR KRZ PDQ\ WLPHV WKH RIILFHUV DFWXDOO\ REVHUYHG +HDWK +RZHYHU ZKHQ 2IILFHU 6HHO\H WHVWLILHG UHJDUGLQJ WKH EHKDYLRU RI +HDWK KH RQO\ PHQWLRQHG WKUHH RFFDVLRQV RI mVXVSLFLRXV DFWLYLW\l LQFOXGLQJ WKH GD\ RI WKH GHIHQGDQWVj DUUHVWV  8QLWHG6WDWHVY+RUWRQHWDO 1RV 1RV 8QLWHG6WDWHVY+RUWRQHWDO 

WKHERWWRP+HDWKWKHQHQWHUHGWKHDSDUWPHQWFRPSOH[ZLWK RIWHQ DV KH IHOWjl DQG D NH\ HVWDEOLVKHG D OHJLWLPDWH WKHSLOORZFDVHDQGDIWHUVWD\LQJWKHUHIRUDSHULRGRIWLPHKH H[SHFWDWLRQRISULYDF\LQWKHDSDUWPHQW GHSDUWHGIRUKLVSHUPDQHQWIDPLOLDOUHVLGHQFH:KLOH+HDWK ZDVLQVLGHKLVIDPLO\jVUHVLGHQFH2IILFHU6HHO\HWHVWLILHGWKDW ,Q WKH LQVWDQW PDWWHU WKHUH DUH VHYHUDO LQGLFDWLRQV RI KHREVHUYHGmQXPHURXVVXEMHFWVFRPLQJDQGJRLQJls$DW mDFFHSWDQFHLQWRWKHKRXVHKROGl+HDWKmVOHSWRQWKHFRXFKl   3ULRU WR WKH GD\ RI +HDWKjV DUUHVW WKHVH WZR HYHQWV DVRIWHQDVRQFHDZHHNIRUDSSUR[LPDWHO\WZR\HDUVs$DW FRPSULVHWKHFRPSOHWHUHFRUGRIVXVSLFLRXVDFWLYLW\UHSRUWHG 6HHDOVR$SSHOOHHjV%UDW+HDOVRSRVVHVVHGDNH\ E\2IILFHU6HHO\H ZKLFK E\ WKH RIILFHUVj RZQ WHVWLPRQ\ DOORZHG +HDWK XQIHWWHUHGDFFHVVWRWKHDSDUWPHQWDQGWKHDELOLW\WRDGPLWDQG 2Q $SULO   WKH GDWH RI +HDWKjV DUUHVW 2IILFHU H[FOXGH RWKHUV  0RUHRYHU +HDWK DQG +RUWRQ DUH FRXVLQV 6HHO\H WHVWLILHG WKDW KH EHJDQ VXUYHLOOLQJ WKH DSDUWPHQW WKHLUIDPLOLDOWLHLVFOHDUO\DmUHODWLRQVKLSlZKLFKSUHGDWHVWKH FRPSOH[ DW DSSUR[LPDWHO\  SP  s$ DW   $IWHU DSDUWPHQWjV XVH IRU LOOHJDO FRQGXFW DV FRQWHPSODWHG E\ mVHYHUDOKRXUVl+HDWKDUULYHGLQDYHKLFOHWKDWZDVNQRZQWR &DUWHU86DW)URPWKHVHIDFWVLWLVFOHDUWKDW EHORQJWR0LFKDHO6SDXOGLQJs$DW6SDXOGLQJZDV +HDWK PDLQWDLQHG D OHJLWLPDWH H[SHFWDWLRQ RI SULYDF\ LQ DOOHJHGWRKDYHEHHQmDODUJHVFDOHGUXJWUDIILFNHU>ZLWK@ +RUWRQjV KRPH   :H WKHUHIRUH KROG WKDW WKH VHDUFK RI SULRUGUXJDUUHVWVls$DW$IWHUSDUNLQJWKHYHKLFOH +RUWRQjVDSDUWPHQWLPSOLFDWHG+HDWKjV)RXUWK$PHQGPHQW +HDWKmORRN>HG@DURXQGWKHORWUHWULHYHGDEURZQEDJIURP ULJKWV WKHYHKLFOHlDQGHQWHUHGWKHDSDUWPHQWEXLOGLQJs$DW +HDWKUHPDLQHGLQVLGHIRUDSSUR[LPDWHO\RQHKRXU:KHQKH 7KH(QWU\LQWRWKH&RPPRQ$UHDVRIWKH$SDUWPHQW%XLOGLQJ GHSDUWHGWKHEXLOGLQJ+HDWKZDVUHSRUWHGO\FDUU\LQJDmGDUNHU FRORUHGEDJls$DW%DVHGXSRQWKHDIRUHGHVFULEHG $VVXPLQJ DUJXHQGR WKDW WKHVH RIILFHUV FRXOG VRPHKRZ HYHQWV2IILFHU6HHO\HUHTXHVWHGDGGLWLRQDORIILFHUVWRUHSRUW DUULYHDWWKHRXWHUJDWHWR+RUWRQjVDSDUWPHQWEXLOGLQJZLWKRXW WRWKHDUHDDQGKHSURFHHGHGWRIROORZ+HDWK YLRODWLQJ+HDWKjV)RXUWK$PHQGPHQWULJKWVWKHLUHQWU\LQWR WKH EXLOGLQJ ZRXOG VWLOO EH EDUUHG  ,Q 8QLWHG 6WDWHV Y $FFRUGLQJ WR WKH WHVWLPRQ\ RI 2IILFHU 6HHO\H +HDWK &DUULJHU)GZHKHOGWKDWZKHQmDQ GHPRQVWUDWHGWKHEHKDYLRURIDSHUVRQmORRNLQJIRUDWDLOl RIILFHU HQWHUV D ORFNHG EXLOGLQJ ZLWKRXW DXWKRULW\ RU s$DW+HDWKEHJDQmPDNLQJDORWRIWXUQVGULY>LQJ@ LQYLWDWLRQWKHHYLGHQFHJDLQHGDVDUHVXOWRIKLVSUHVHQFHLQ IDVWHUWKDQWKHVSHHGOLPLWDQGWKHQKHZRXOGVORZGRZQ WKHFRPPRQDUHDVRIWKHEXLOGLQJPXVWEHVXSSUHVVHGl DQG GULYH VORZO\l  2IILFHU 6HHO\H DOVR WHVWLILHG WKDW KH WKRXJKW+HDWKmWXUQHGRQWRDGHDGHQGVWUHHWls$DW ,Q &DUULJHU  SROLFH RIILFHUV ZHUH HQJDJHG LQ WKH $IWHUIROORZLQJKLPIRUILIWHHQPLQXWHVWKHRIILFHUVGHFLGHG VXUYHLOODQFHRIGHIHQGDQW%HDVOH\DNQRZQGUXJGHDOHU,Q WRFRQGXFWDQmLQYHVWLJDWLYHVWRSlRI+HDWK+HDWKGURYHLQWR WKH PRQWKV SUHFHGLQJ WKH DUUHVW RI GHIHQGDQW &DUULJHU DIDVWIRRGUHVWDXUDQWSDUNLQJORWDWZKLFKSRLQWDVTXDGFDU %HDVOH\KDGXQZLWWLQJO\VROGQDUFRWLFVWRXQGHUFRYHURIILFHUV EORFNHGKLVSDVVDJHDQG2IILFHU6HHO\HVWRSSHGKLVFDUEHKLQG RQVHYHUDORFFDVLRQV7KHRIILFHUVDGPLWWHGWKDWWKHSXUSRVH +HDWKjVYHKLFOH7KHRIILFHUVDSSURDFKHG+HDWKjVFDUZLWK RIWKHLUHIIRUWVRQWKHGD\RI&DUULJHUjVDUUHVWmZDVWRRUGHUD WKHLUJXQVGUDZQ2IILFHU6HHO\HWHVWLILHGWKDWXSRQUHDFKLQJ µVXIILFLHQWO\ODUJHTXDQWLW\RIKHURLQIURPGHIHQGDQW%HDVOH\ WKH GULYHUjV VLGH GRRU RI +HDWKjV YHKLFOH KH mSXOOHG 0U WRIRUFHKLPWRJRXQGHUDJHQWVjVXUYHLOODQFHWRKLVVRXUFHRI +HDWKIURPWKHYHKLFOHDQGSXWKLPXSRQWKHVLGHls$DW VXSSO\jl,GDW7KHRIILFHUVIROORZHG%HDVOH\ WR DQ +HIXUWKHUWHVWLILHGWKDWKHZHGJHG+HDWKEHWZHHQWKH DSDUWPHQW EXLOGLQJ mZKLFK &DUULJHU RZQHG DQG ZKHUH KH FDUGRRUDQGWKHERG\RIWKHFDUHQDEOLQJKLPWRmFORVHWKH PDLQWDLQHG DQ DSDUWPHQWl  ,G DW   +DYLQJ REVHUYHG %HDVOH\ DV KH HQWHUHG WKH DSDUWPHQW EXLOGLQJ ZLWK D JUHHQ  8QLWHG6WDWHVY+RUWRQHWDO 1RV 1RV 8QLWHG6WDWHVY+RUWRQHWDO 

RIODZZHUHYLHZWKLVGHWHUPLQDWLRQGHQRYR6HH+LOO GRRU>@RQ>+HDWK@LI>KH@KDGWRls$DW'HVSLWHWKLV )GDW WDFWLF 2IILFHU 6HHO\H WHVWLILHG WKDW KH IHDUHG WKDW +HDWK mPLJKWZDQWWRUXQlWKXVKHKDQGFXIIHGKLPs$DW *HQHUDOO\m>D@SHUVRQZKRLVDJJULHYHGE\DQLOOHJDOVHDUFK +HIXUWKHUWHVWLILHGWKDWKHLQVWUXFWHG+HDWKWKDWKHZDVmQRW DQG VHL]XUH RQO\ WKURXJK WKH LQWURGXFWLRQ RI GDPDJLQJ XQGHUDUUHVWls$DW HYLGHQFHVHFXUHGE\DVHDUFKRIDWKLUGSHUVRQjVSUHPLVHVRU SURSHUW\ KDV QRW KDG DQ\ RI KLV )RXUWK $PHQGPHQW ULJKWV 2IILFHU6HHO\HLQIRUPHG+HDWKWKDWKHZDVFRQGXFWLQJD LQIULQJHGl5DNDVY,OOLQRLV86FLWLQJ QDUFRWLFV LQYHVWLJDWLRQ DQG  SURFHHGHG WR TXHVWLRQ +HDWK $OGHUPDQY8QLWHG6WDWHV86 7KH DERXW KLV ZKHUHDERXWV LPPHGLDWHO\ SUHFHGLQJ WKH LQVWDQW H[FOXVLRQDU\ UXOH DV LW LV FRPPRQO\ NQRZQ RQO\ DOORZV HQFRXQWHU  +HDWK LQGLFDWHG WKDW KH ZDV YLVLWLQJ 0LFKDHO mGHIHQGDQWV ZKRVH )RXUWK $PHQGPHQW ULJKWV KDYH EHHQ 6SDXOGLQJ2IILFHU6HHO\HWKHQDVNHG+HDWKLIKHKDGEHHQWR YLRODWHGWREHQHILWIURPWKHUXOHjVSURWHFWLRQVl,G+RZHYHU WKHDIRUHPHQWLRQHGDSDUWPHQWEXLOGLQJKHUHVSRQGHGWKDWmKH mDSHUVRQFDQKDYHDOHJDOO\VXIILFLHQWLQWHUHVWLQDSODFHRWKHU KDGQjWls$DW7KHRIILFHUVVHDUFKHG+HDWKDQGWKH WKDQKLVRZQKRPHVRWKDWWKH)RXUWK$PHQGPHQWSURWHFWV HQWLUHYHKLFOHQRWKLQJRIDQLOOHJDOQDWXUHZDVIRXQG2IILFHU KLP IURP XQUHDVRQDEOH JRYHUQPHQWDO LQWUXVLRQ LQWR WKDW 6HHO\HWHVWLILHGWKDWGXULQJWKHSDWGRZQVHDUFKKHmQRWLFHG SODFHl,GDW WKDW WKHUH ZHUH NH\V LQ >+HDWKjV@ SRFNHWl  s$ DW  2IILFHU 6HHO\H WKHQ DWWHPSWHG WR HOLFLW LQIRUPDWLRQ IURP ,QsRQHVY8QLWHG6WDWHV86WKH +HDWK UHJDUGLQJ WKH DSDUWPHQW WKDW WKH NH\V ZHUH XVHG WR &RXUW DOORZHG WKH GHIHQGDQW WR FKDOOHQJH WKH ILQGLQJ RI XQORFN,QUHVSRQVHWR+HDWKjVDVVHUWLRQWKDWWKHNH\VDQG SUREDEOH FDXVH IRU WKH VHDUFK RI mD IULHQG>µV@l DSDUWPHQW SDQWVEHORQJHGWRKLVEURWKHU2IILFHU6HHO\HDVNHGLI+HDWK ZKHQWKHGHIHQGDQWKDGDNH\DQGKDGVSHQWmPD\EHDQLJKWl ZRXOGmPLQGLI>KH@JRWWKHPVLQFHWKH\jUHQRW\RXUNH\Vl EXWKDGPLQLPDOEHORQJLQJVLQWKHDSDUWPHQWDQGFRQWULEXWHG s$ DW   +HDWK UHVSRQGHG mQRl DQG 2IILFHU 6HHO\H QRWKLQJWRZDUGVWKHOHDVH7KH6XSUHPH&RXUWUHDIILUPHG UHPRYHGWKHNH\VIURPKLVSRFNHW sRQHVLQ0LQQHVRWDY2OVRQ86KROGLQJ mWKDW DQ RYHUQLJKW JXHVW KDV D OHJLWLPDWH H[SHFWDWLRQ RI $WWKLVSRLQWWKHRIILFHUVGHFLGHGWRWDNHWKHNH\VDQGJDLQ SULYDF\LQKLVKRVWjVKRPHlWKDWLVQRWGLPLQLVKHGEHFDXVHKH HQWU\WRWKHDSDUWPHQWEXLOGLQJ+DYLQJDQWLFLSDWHGWKLVLVVXH GRHV QRW KDYH mFRPSOHWH GRPLQLRQ DQG FRQWURO RYHU WKH DULVLQJ 2IILFHU 6HHO\H DQG KLV VXSHUYLVRU WKHQ SDJHG D DSDUWPHQWl 7KH 6XSUHPH &RXUW KDV IXUWKHU FODULILHG WKDW SURVHFXWRUZKRKDGUHVHDUFKHGWKHLVVXHRIZKHWKHULWZRXOG ZKHQ GHWHUPLQLQJ ZKHWKHU D GHIHQGDQW LV HQWLWOHG WR WKH mEHWKHHTXLYDOHQWRIDVHDUFKLI>WKHRIILFHUVWRRNWKH@NH\ SURWHFWLRQV DIIRUGHG E\ 2OVRQ UHYLHZLQJ FRXUWV VKRXOG DQGWU>LHG@WRDVFHUWDLQZKLFKGRRUWKDWNH\JRHVWRls$ FRQVLGHUZKHWKHUWKHUHZDVDmSUHYLRXVUHODWLRQVKLSlZLWKWKH DSDUWPHQWOHVVHHRULIWKHUHLVDQ\LQGLFLDmRIDFFHSWDQFHLQWR WKHKRXVHKROGl0LQQHVRWDY&DUWHU86  6HHDOVR8QLWHG6WDWHVY6DQJLQHWR0LUDQGD)G 'XULQJ WKH RIILFHUVj VXUYHLOODQFH RI +HDWK WKH\ ZHUH XQDEOH WR

 WK &LU  ILQGLQJ WKDW GHIHQGDQW ZKR KDG IROORZ +HDWK LQWR WKH DSDUWPHQW EXLOGLQJ DQG FRQVHTXHQWO\ KDG IDLOHG DVFHUWDLQ KLV H[DFW ZKHUHDERXWV RQFH LQVLGH 2IILFHU 6HHO\H WHVWLILHG WKDW mXQUHVWULFWHGDFFHVV>@>ZDV@DOORZHGWRVWD\RYHUQLJKWµDV mLW >ZD@V LPSRVVLEOH WR DVFHUWDLQ ZKLFK DSDUWPHQW DQ\ERG\ JRHV LQWR RQFH WKH\ JR WKURXJK WKH FRPPRQ HQWUDQFHl s$ DW 

  %RWK WKH GLVWULFW FRXUW DQG WKH JRYHUQPHQW KDYH IDLOHG WR UHIHUHQFH :H QRWH WKDW 2IILFHU 6HHO\H ODWHU UHFDQWHG WKLV WHVWLPRQ\ DQG VWDWHG DQG FRQVHTXHQWO\ GLVWLQJXLVK WKH IDFWV RI WKH LQVWDQW PDWWHU IURP WKRVH WKDW WKH SURVHFXWRU KDG UHVHDUFKHG DQ LVVXH mVLPLODUl WR WKLV LQ DQRWKHU LQ sRQHV Y 8QLWHG 6WDWHV  86   DQG LWV SURJHQ\ FDVH s$ DW   8QLWHG6WDWHVY+RUWRQHWDO 1RV 1RV 8QLWHG6WDWHVY+RUWRQHWDO 

DW   2IILFHU 6HHO\H WHVWLILHG WKDW WKH\ ZDLWHG IRU WKH RIFRXUVHQRUHDVRQWRVXSSRVHWKDWLWOHJLWLPDWHGWKHRIILFHUVj SURVHFXWRUWRUHWXUQWKHLUSDJHDQGWKHQGLVFXVVHGWKHLUSODQ XVHRIWKHNH\VWRJDLQHQWU\WRWKHDSDUWPHQWEXLOGLQJ LHWRmWDNHWKHNH\DQGJREDFNWRWKHDSDUWPHQWDQGXVH WKHNH\WRWHVWWKHGRRUVls$DW8SRQUHFHLYLQJWKH F 7KH$SDUWPHQW%XLOGLQJ SURVHFXWRUjV FRQVHQW WKH RIILFHUV SODFHG +HDWK LQ D SROLFH YHKLFOH DQG SURFHHGHG WR WUDQVSRUW KLP WR WKH DSDUWPHQW 7KHJRYHUQPHQWDUJXHVWKDW+RUWRQjVFRQVHQWWRVHDUFKWKH EXLOGLQJ$WWKLVSRLQW2IILFHU6HHO\HHVWLPDWHVWKDW+HDWK DSDUWPHQW YLWLDWHG DQ\ LOOHJDO FRQGXFW WKDW PLJKW KDYH KDGEHHQGHWDLQHGIRUmWKLUW\WRIRUW\ILYHPLQXWHVls$DW SUHFHGHGWKHRIILFHUVjGLVFRYHU\RIWKHGUXJV$FFRUGLQJO\  ZHQRZWXUQRXUFRQVLGHUDWLRQWRWKHRIILFHUVjHQWU\LQWRWKH FRPPRQDUHDVRIWKHDSDUWPHQWEXLOGLQJDQGWKHVXEVHTXHQW 8SRQDUULYLQJDWWKHDSDUWPHQWEXLOGLQJWKHRIILFHUVXVHG VHDUFKRIWKHDSDUWPHQW RQHRIWKHWZRNH\VRQWKHNH\ULQJWRDFFHVVWKHHQWU\ZD\WR WKH FRPPRQ DUHDV RI WKH DSDUWPHQW EXLOGLQJ  7KH\ WKHQ +HDWKjV6WDQGLQJWR&RQWHVWWKH6HDUFKRIWKH$SDUWPHQW DWWHPSWHG WR XQORFN HDFK GRRU RQ WKH ILUVW IORRU ZLWK WKH UHPDLQLQJ NH\  $IWHU WKHLU HIIRUW RQ WKH ILUVW IORRU SURYHG :HPXVWILUVWDGGUHVVWKHGLVWULFWFRXUWjVILQGLQJWKDW+HDWK XQIUXLWIXOWKHRIILFHUVSURFHHGHGWRWKHVHFRQGIORRU$IWHU ODFNHGmVWDQGLQJWRFRQWHVWWKHFRQVWLWXWLRQDOLW\RIWKHVHDUFK DWWHPSWLQJ VHYHUDO GRRUV RQ WKH VHFRQG IORRU D IHPDOH RI+RUWRQjVDSDUWPHQWls$DW$VWKLVLVDFRQFOXVLRQ UHVLGHQWHQWHUHGWKHKDOOZD\DQGTXHULHGWKHRIILFHUVUHJDUGLQJ WKHLUDFWLRQV8SRQLGHQWLI\LQJWKHPVHOYHVWKHRIILFHUVDVNHG WKHUHVLGHQWmLIVKHNQHZ0U+HDWKlVKHUHVSRQGHGLQWKH  QHJDWLYHs$DW7KHRIILFHUVWKHQDVNHGWKHUHVLGHQW 7KH GLVWULFW FRXUW EDVHG LWV GHWHUPLQDWLRQ RQ RXU KROGLQJ LQ 8QLWHG 6WDWHV Y 0F1HDO  )G   7KH GLVWULFW FRXUW VWDWHG mLIVKHNQHZZKLFKIORRUWKHJX\VWKDWDOZD\VVKRZXSLQWKH QHZUHQWDOFDUVDQG([SHGLWLRQVUHDOQLFHYHKLFOHVZKDWIORRU 7KH 6L[WK &LUFXLW KDV GHWHUPLQHG WKDW D GHIHQGDQW ZLWK D NH\ WR GRWKH\JRWRls$DW7KHUHVLGHQWGLUHFWHGWKHPWR DQ DSDUWPHQW DQG OLWWOH RWKHU FRQQHFWLRQ KDV QR VWDQGLQJ WR WKHWKLUGIORRUZKHUHWKH\UHVXPHGWKHLUGRRUWRGRRUHIIRUW FKDOOHQJH D VHDUFK RI WKH DSDUWPHQW 8QLWHG 6WDWHV Y 0F1HDO

2IILFHU6HHO\HWHVWLILHGWKDWWKH\DWWHPSWHGPRUHWKDQKDOIRI  )G   WK &LU  7KH GHIHQGDQW LQ 0F1HDO KDG QR FORWKHV DW WKH DSDUWPHQW DQG WKH IDFWV GLG QRW VKRZ KLP WKHGRRUVRQWKHWKLUGIORRUEHIRUHILQGLQJWKHFRUUHVSRQGLQJ WR EH mPRUH WKDQ D FDVXDO WUDQVLHQW YLVLWRU RQ WKDW QLJKWl ,G ORFN  7KLV DSDUWPHQW ZDV OHDVHG WR &DUPHQ +RUWRQ 7KURXJKRXW WKHVH HYHQWV +HDWK UHPDLQHG JXDUGHG s$ DW  +RZHYHU WKH GLVWULFW FRXUWjV UHOLDQFH RQ 0F1HDO LQ WKH KDQGFXIIHGDQGGHWDLQHGLQDSROLFHYHKLFOH LQVWDQW PDWWHU LV PLVJXLGHG ,Q 0F1HDO WKH GHIHQGDQW DGPLWWHG WKDW KH ZDV D mFDVXDO WUDQVLHQW YLVLWRUl ,G DW  7KHUH WKH GLVWULFW FRXUW

$IWHU D EULHI GLVFXVVLRQ WR GHWHUPLQH KRZ WKH\ ZRXOG IXUWKHU UHFRJQL]HG WKDW mZKLOH WKH GHIHQGDQW GLG KDYH D NH\ WR WKH DSDUWPHQW KH DOVR KDG NH\V WR RWKHU DSDUWPHQWV LQ WKH FRPSOH[ LQ ZKLFK SURFHHGWKHRIILFHUVGHFLGHGmWRREWDLQDFRQVHQW>WRVHDUFK KH GLG QRW OLYHl ,G HPSKDVLV DGGHG 0RUHRYHU WKH OHVVHH RI WKH WKHDSDUWPHQW@IURP>WKH@RFFXSDQW>V@ls$DW7R DSDUWPHQW FRXOG QRW UHPHPEHU WKH GHIHQGDQWjV ODVW QDPH DW WKH WLPH WKH PLQLPL]H WKH DSSHDUDQFH RI LQWLPLGDWLRQ RQH RI WKH WKUHH RIILFHUV FRQGXFWHG WKH VHDUFK LQGLFDWLQJ WKDW WKHUH ZDV QR VLJQLILFDQW RIILFHUVGHSDUWHGOHDYLQJ2IILFHUV6HHO\HDQG7D\ORUWRNQRFN UHODWLRQVKLS EHWZHHQ WKHVH SDUWLHV ,G 7KXV WKHUH ZHUH QR UHOLDEOH RQ+RUWRQjVGRRU+RUWRQDQVZHUHGDQGWKHRIILFHUVZLWK LQGLFDWLRQV WKDW 0F1HDO KDG D UHDVRQDEOH H[SHFWDWLRQ RI SULYDF\ LQ WKH DSDUWPHQW $GGLWLRQDOO\ LQ ILQGLQJ WKDW WKH GLVWULFW FRXUWjV GHFLVLRQ ZDV WKHLU JXQV YLVLEOH LGHQWLILHG WKHPVHOYHV DV SROLFH RIILFHUV EH\RQG RXU UHYLHZ ZH QRWHG WKDW mWKH WULDO FRXUWjV GHFLVLRQ ZDV H[SUHVVO\ FRQGXFWLQJDQDUFRWLFVLQYHVWLJDWLRQDQGDVNHGLIWKH\FRXOG DQFKRUHG LQ FUHGLELOLW\ HYDOXDWLRQV RI ZLWQHVVHVl QRW FRQFOXVLRQV RI ODZ mFRPH LQVLGHl  s$ DW   8SRQ EHLQJ DGPLWWHG WKH ,G DW  &RQVHTXHQWO\ WKH IDFWV RI 0F1HDO DUH HQWLUHO\ GLVWLQJXLVKDEOH IURP WKRVH LQ WKH LQVWDQW PDWWHU  8QLWHG6WDWHVY+RUWRQHWDO 1RV 1RV 8QLWHG6WDWHVY+RUWRQHWDO 

FRQFOXVLRQ FRPSHOV XV WR ILQG WKDW WKLV GHWHUPLQDWLRQ ZDV RIILFHUV DVNHG LI VKH KDG DQ\ PDULMXDQD LQ WKH DSDUWPHQW UHDFKHG LQ HUURU  +HDWK PDGH WKH VWDWHPHQWV SULRU WR WKH H[SODLQLQJWKDWDGPLWWLQJWRWKHSRVVHVVLRQRImMXVWDOLWWOH RIILFHUVjVHDUFKRIWKHYHKLFOH$VQRWHGDERYHWKHVHDUFK ELWRIPDULMXDQDlZRXOGQjWEHmWKDWELJRIDGHDOls$DW SURGXFHG QRWKLQJ LOOHJDO DQG FRQVHTXHQWO\ +HDWKjV +RUWRQSURIIHUHGDVPDOODPRXQWRIPDULMXDQDIURP VWDWHPHQWV FDQQRW EH XVHG WR EUHDWKH OLIH LQWR D G\LQJ WZR ORFDWLRQV ZLWKLQ WKH DSDUWPHQW  6RRQ DIWHU +RUWRQ LQYHVWLJDWLRQ  0RUHRYHU WKH 6XSUHPH &RXUW KDV KHOG WKDW H[HFXWHGDVHDUFKFRQVHQWIRUPDQGWKHRIILFHUVVHDUFKHGWKH mXQOHVV WKH GHWDLQHHjV DQVZHUV SURYLGH WKH RIILFHU ZLWK DSDUWPHQW7KLVIRUPLQGLFDWHGWKDWWKHFRQVHQWIRUWKHVHDUFK SUREDEOHFDXVHWRDUUHVWKLPKHPXVWEHUHOHDVHGl%HUNHPHU ZDV REWDLQHG DW  SP  7KH HQVXLQJ VHDUFK SURGXFHG  86 DW    %HFDXVH +HDWKjV VWDWHPHQWV DQG WKH GLJLWDOVFDOHVWKUHHHPSW\NLORJUDPZUDSSHUVLQVLGHDmEURZQ VXEVHTXHQWVHDUFKRIWKHYHKLFOHGLGQRWSURYLGHWKHRIILFHUV SODVWLF EDJl DQG DSSUR[LPDWHO\ WKUHH NLORJUDPV RI FRFDLQH ZLWKVXIILFLHQWFDXVHWRDUUHVWKLPKLVGHWHQWLRQEH\RQGWKH VHSDUDWHGLQWRVHYHUDOVPDOOHUSDFNDJHV7KHEURZQSODVWLF FRPSOHWLRQRIWKHVHDUFKZDVLOOHJDO6HH%XWOHU)GDW EDJDSSHDUHGWREHWKHVDPHSODVWLFEDJWKDWWKHRIILFHUVKDG  KROGLQJ WKDW LI WKH VWRSV IDLOV WR mUHYHDO DQ\WKLQJ VHHQ+HDWKFDUU\LQJZKHQKHHQWHUHGWKHDSDUWPHQWEXLOGLQJ VXVSLFLRXVWKHRIILFHUVZHUHUHTXLUHGWRDOORZ'HIHQGDQW HDUOLHU WKDW GD\  3XUVXDQW WR WKH GLVFRYHU\ RI WKHVH LWHPV WRJRIUHHl +RUWRQDQG+HDWKZHUHWKHQUHDGWKHLU0LUDQGDZDUQLQJVDQG SODFHGXQGHUDUUHVW 7KHGHIHQGDQWVDOVRFRQWHVWWKHmWUDQVSRUWlRI+HDWKDQG WKHGXUDWLRQRIWKHVWRSDUJXLQJWKDWWKHVHPHDVXUHVZHUH 2Q0D\WKHJUDQGMXU\UHWXUQHGDQLQGLFWPHQW mWRRLQWUXVLYHXQGHUWKHFLUFXPVWDQFHVl$SSHOODQWjV%UDW DJDLQVW &DUPHQ +RUWRQ DQG 6K\ +HDWK  7KH GHIHQGDQWV +DYLQJIRXQGWKDWWKHRIILFHUVZHUHREOLJDWHGWRUHOHDVH VXEVHTXHQWO\ PRYHG WR VXSSUHVV WKH HYLGHQFH REWDLQHG +HDWK XSRQ WKH FRPSOHWLRQ RI WKH XQIUXLWIXO VHDUFK LW LV WKURXJK WKH VWRS DQG GHWHQWLRQ RI +HDWK DQG WKH VHDUFK RI D[LRPDWLFWKDWWKHWUDQVSRUWRI+HDWKDQGWKHOHQJWKRIWKH +RUWRQjVDSDUWPHQW7KHGLVWULFWFRXUWGHWHUPLQHGWKDWWKH VWRSZHUHYLRODWLYHRIKLV)RXUWK$PHQGPHQWULJKWWREHIUHH RIILFHUVKDGDUHDVRQDEOHVXVSLFLRQWKDW+HDWKZDVLQYROYHG IURPXQUHDVRQDEOHVHL]XUHV:HLWHUDWHWKDWZKLOHWKHSXUSRVH LQFULPLQDODFWLYLW\ZDUUDQWLQJWKHLQLWLDOVWRS7KHGLVWULFW RIDQLQYHVWLJDWLYHVWRSLVWRFRQILUPRUGLVSHOWKHRIILFHUjV FRXUWIXUWKHUFRQFOXGHGWKDWWKHVFRSHRI+HDWKjVGHWHQWLRQ VXVSLFLRQV WKHVH W\SHV RI GHWHQWLRQV DUH OLPLWHG LQ VFRSH ZDV MXVWLILHG UHDVRQLQJ WKDW WKH OHQJWK RI WLPH ZDV QRW DEVHQWWKHUHTXLVLWHSUREDEOHFDXVHDQLQYHVWLJDWLYHVWRSPXVW H[FHVVLYH DQG WKDW m+HDWKjV OLHV WR WKH SROLFHl UDLVHG WKH EHFRQILQHGWRWKHVLWHRIWKHLQLWLDOLQTXLU\ RIILFHUVj VXVSLFLRQV RI LOOHJDO DFWLYLW\  s$ DW 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j WKH VHFRQG NH\ WR ILQG WKH DSDUWPHQW RQFH LQVLGH ZDV FRQGXFW LQ WKLV UHJDUG HVSHFLDOO\ QRWHZRUWK\  7KH GLVWULFW DSSURSULDWH&RQVLVWHQWZLWKWKHVHILQGLQJVWKHGLVWULFWFRXUW FRXUWFRQFOXGHGWKDW+HDWKFRQVHQWHGWRWKHRIILFHUjVUHPRYDO GHQLHGWKHGHIHQGDQWVjPRWLRQVWRVXSSUHVVDQGFRQVHTXHQWO\ RIWKHNH\VIURPKLVSRFNHW+RZHYHUWKHUHLVDZLGHFKDVP HDFKHQWHUHGDSOHDRIJXLOW\UHVHUYLQJWKHULJKWWRDSSHDOWKH EHWZHHQUHPRYDODQGXVHZKLOH+HDWKjVFRQVHQWPD\KDYH OHJLWLPDWHGWKHUHPRYDORIWKHNH\VIURPKLVSRFNHWWKHUHLV  8QLWHG6WDWHVY+RUWRQHWDO 1RV 1RV 8QLWHG6WDWHVY+RUWRQHWDO 

GHQLDORIWKHPRWLRQVWRVXSSUHVV+HDWKDQG+RUWRQQRZ XQLIRUPO\IRXQGWKDWWKHXVHRIIRUFHPXVWEHQHFHVVDU\WR HDFKDSSHDOWKHLUFRQYLFWLRQV SURWHFWRIILFHUVIURPSRWHQWLDOO\GDQJHURXVVLWXDWLRQV ,,',6&866,21 sX[WDSRVHG DJDLQVW WKHVH FDVHV WKH IDFWV LQ WKH LQVWDQW PDWWHU VXJJHVW WKDW WKH RIILFHUV UHDVRQDEO\ EHOLHYHG WKDW 'HIHQGDQWVjDSSHOODWHFODLPVUHODWHWRWKHGHQLDORIWKHLU SURWHFWLYHPHDVXUHVZHUHQHFHVVDU\WRHIIHFWXDWHWKHVWRSRI PRWLRQVWRVXSSUHVVHYLGHQFH:KHQFRQVLGHULQJDGLVWULFW +HDWK  :H KDYH DOUHDG\ IRXQG WKDW +HDWK ZDV UHDVRQDEO\ FRXUWjVGHQLDORIDGHIHQGDQWjVPRWLRQWRVXSSUHVVHYLGHQFH VXVSHFWHG RI FDUU\LQJ GUXJVWKH DJHQWV ZHUH WKHUHIRUH ZH UHYLHZ LWV IDFWXDO ILQGLQJV IRU FOHDU HUURU DQG LWV OHJDO HQWLWOHGWRUHO\RQWKHLUH[SHULHQFHDQGWUDLQLQJLQFRQFOXGLQJ FRQFOXVLRQVGHQRYR6HH8QLWHG6WDWHVY+LOO)G WKDW ZHDSRQV DUH IUHTXHQWO\ XVHG LQ GUXJ WUDQVDFWLRQV DQG WK&LU8QLWHG6WDWHVY+DUULV)G WKXVWKHGHJUHHRIIRUFHXWLOL]HGZDVUHDVRQDEOH6HHHJ WK&LU:HUHYLHZWKHHYLGHQFHmLQWKHOLJKW 8QLWHG6WDWHVY%HOO)GWK&LU PRVWOLNHO\WRVXSSRUWWKHGLVWULFWFRXUWjVGHFLVLRQl8QLWHG 6WDWHV Y 1DYDUUR&DPDFKR  )G   WK &LU +RZHYHU RQFH WKHVH RIILFHUV XVHG DOO RI WKH DSSURSULDWH  PHDQVDYDLODEOHWRWKHPWRDOOD\WKHLUFRQFHUQVRIFULPLQDO DFWLYLW\WKH\ZHUHUHTXLUHGWRUHOHDVH+HDWK6HH%HUNHPHU 'HIHQGDQWV DUJXH WKDW WKH LQYHVWLJDWLYH VWRS RI +HDWK 86DWVHHDOVR8QLWHG6WDWHVY%XWOHU)G FRQVWLWXWHG DQ LOOHJDO VHL]XUH WKXV KLV )RXUWK $PHQGPHQW   WK &LU  m>2@QFH 'HIHQGDQW LGHQWLILHG ULJKWVZHUHYLRODWHG7KHGHIHQGDQWVDOVRFRQWHVWWKHHQWU\ KHUVHOIDQVZHUHGWKHRIILFHUjVTXHVWLRQVDQGFRQVHQWHGWRWKH DQGVHDUFKRI+RUWRQjVDSDUWPHQW SDWGRZQ ZKLFK GLG QRW UHYHDO DQ\WKLQJ VXVSLFLRXV WKH RIILFHUVZHUHUHTXLUHGXQGHUWKH)RXUWK$PHQGPHQWWRDOORZ ,QDQDO\]LQJWKHGHIHQGDQWVj)RXUWK$PHQGPHQWFODLPVZH 'HIHQGDQWWRJRIUHHl7KHRIILFHUVVWRSSHG+HDWKEDVHG KDYHGLYLGHGWKHHYHQWVUHVXOWLQJLQWKHGHIHQGDQWVjDUUHVWV XSRQWKHLUUHDVRQDEOHVXVSLFLRQWKDWKHZDVSUHVHQWO\HQJDJHG LQWR WKUHH GLVWLQFW HSLVRGHV   WKH LQLWLDO VWRS RI +HDWK LQFULPLQDODFWLYLW\6SHFLILFDOO\WKHRIILFHUVEHOLHYHGWKDWWKH SXUVXDQW WR WKH RIILFHUV DOOHJHG UHDVRQDEOH VXVSLFLRQ RI EDJWKDW+HDWKSODFHGLQWKHYHKLFOHFRQWDLQHGDODUJHTXDQWLW\ FULPLQDODFWLYLW\WKHGHWHQWLRQRI+HDWKZKLOHWKHRIILFHUV RILOOHJDOGUXJV+RZHYHUKDYLQJ VHDUFKHG+HDWKDQGKLV DWWHPSWHGWRDOOD\WKHLUVXVSLFLRQVRIFULPLQDODFWLYLW\DQG YHKLFOHDQGILQGLQJQRWKLQJLQKHUHQWO\FULPLQDOWKHRIILFHUV  WKH HQWU\ DQG VXEVHTXHQW VHDUFK RI +RUWRQjV DSDUWPHQW ZHUHREOLJDWHGLQGHHGPDQGDWHGWRHQGWKHLULQYHVWLJDWLYH :HUHYLHZHDFKRIWKHVHHSLVRGHVLQWXUQ VWRS DEVHQW D QHZO\ GLVFRYHUHG DUWLFXODEOH EDVLV IRU KLV GHWHQWLRQ6HH8QLWHG6WDWHVY0HVD)GWK D 7KH,QLWLDO6WRS &LUILQGLQJWKDWmWKHRIILFHUFRXOGQRWIXUWKHUGHWDLQ WKHYHKLFOHRULWVRFFXSDQWVXQOHVVVRPHWKLQJWKDWRFFXUUHG :KHQWKHSDWKVRISROLFHDQGFLWL]HQVFURVVWKHUHVXOWLQJ GXULQJ WKH WUDIILF VWRS JHQHUDWHG WKH QHFHVVDU\ UHDVRQDEOH HQFRXQWHUZLOOQRWDOZD\VFRQVWLWXWHDVHL]XUHDVFRQWHPSODWHG VXVSLFLRQWRMXVWLI\DIXUWKHUGHWHQWLRQl E\WKH)RXUWK$PHQGPHQW$VHL]XUHRQO\RFFXUVmZKHQWKH RIILFHUE\PHDQVRISK\VLFDOIRUFHRUVKRZRIDXWKRULW\KDV 7KHJRYHUQPHQWFRQWHQGVWKDWUHDVRQDEOHVXVSLFLRQDURVH LQ VRPH ZD\ UHVWUDLQHG WKH OLEHUW\ RI  D FLWL]HQl 7HUU\ Y IURP +HDWKjV IDOVH VWDWHPHQWV UHJDUGLQJ KLV ZKHUHDERXWV LPPHGLDWHO\ SUHFHGLQJ WKH LQYHVWLJDWLYH VWRS DQG WKH RZQHUVKLSRIWKHNH\V7KHGLVWULFWFRXUWDJUHHG6HHs$DW    +RZHYHU  RXU GH QRYR UHYLHZ RI WKH GLVWULFW FRXUWjV +HDWK UHFHLYHG D VHQWHQFH RI VHYHQW\WZR PRQWKV LPSULVRQPHQW DQG +RUWRQ UHFHLYHG WKLUW\VHYHQ PRQWKV LPSULVRQPHQW  8QLWHG6WDWHVY+RUWRQHWDO 1RV 1RV 8QLWHG6WDWHVY+RUWRQHWDO 

DQ\RXWVLGHWLPHOLPLWDWLRQIRUDSHUPLVVLEOH7HUU\VWRSlWKH 2KLR86Q6LQFH7HUU\FRXUWVKDYH 6XSUHPH&RXUWKDVKHOGWKDWWKHSDVVDJHRIWLPHFDQFDXVHDQ UHFRJQL]HG WKDW ZKHQ mD ODZ HQIRUFHPHQW RIILFHU ODFNV LQYHVWLJDWLYHGHWHQWLRQWRULSHQLQWRDGHIHFWLYHVHL]XUHWKDW SUREDEOH FDXVH EXW SRVVHVVHV D UHDVRQDEOH DQG DUWLFXODEOH PXVWEHEDVHGXSRQSUREDEOHFDXVH3ODFH86DW VXVSLFLRQWKDWDSHUVRQKDVEHHQLQYROYHGLQFULPLQDODFWLYLW\ 0RUHRYHUWKHGHJUHHRIIRUFHXWLOL]HGE\RIILFHUVGXULQJD KHPD\GHWDLQWKHVXVSHFWEULHIO\WRLQYHVWLJDWHWKHVXVSLFLRXV GHWHQWLRQPXVWEHmUHDVRQDEO\UHODWHGLQVFRSHWRWKHVLWXDWLRQ FLUFXPVWDQFHVl8QLWHG6WDWHVY+XUVW)G DW KDQGl DQG QRW mVR LQWUXVLYH DV WR FRQVWLWXWH DQ DUUHVWl TXRWLQJ8QLWHG6WDWHVY%HQWOH\)G 8QLWHG 6WDWHV Y +DUGQHWW  )G   WK &LU WK &LU    7KHVH VHL]XUHV KDYH EHFRPH FRPPRQO\  NQRZQDV7HUU\VWRSV+RZHYHUZHUHLWHUDWHWKDW +DYLQJ SUHYLRXVO\ IRXQG WKDW WKH RIILFHUV SRVVHVVHG WKH 7HUU\Y2KLRGLGQRWDGGUHVVWKHUHDVRQDEOHQHVVRIDQ UHTXLVLWHVXVSLFLRQWRZDUUDQWWKHVWRSRXULQTXLU\WXUQVWRWKH LQYHVWLJDWLYHGHWHQWLRQUDWKHULWVKROGLQJDGGUHVVHGWKH VHFRQGSURQJRIWKH:LQIUH\WHVW:KHWKHUWKHPHDQVDQG UHDVRQDEOHQHVVRIDSURWHFWLYHmIULVNlWKDWLVDVHDUFK PHDVXUHVXWLOL]HGE\WKHRIILFHUVLQWKHLQVWDQWPDWWHUZHUH WKDW LV QRW VXSSRUWHG E\ SUREDEOH FDXVH  ,Q FDVHV mUHDVRQDEOHXQGHUWKHFLUFXPVWDQFHVl:LQIUH\)GDW VXEVHTXHQWWR7HUU\WKH6XSUHPH&RXUWKDVKHOGWKDW   'HIHQGDQWV DVVHUW WKDW WKH RIILFHUV FRQGXFW LH XQGHUWKH)RXUWK$PHQGPHQWmDSROLFHPDQZKRODFNV EORFNLQJ +HDWKjV YHKLFOH HPHUJLQJ ZLWK ZHDSRQV GUDZQ SUREDEOH FDXVH EXW ZKRVH µREVHUYDWLRQV OHDG KLP SXOOLQJ+HDWKIURPKLVYHKLFOHIULVNLQJDQGKDQGFXIILQJKLP UHDVRQDEO\ WR VXVSHFWj WKDW D SDUWLFXODU SHUVRQ KDV mUHVXOWHGLQDGHIDFWRDUUHVWl$SSHOODQWjV%UDW FRPPLWWHGDFULPHPD\GHWDLQWKDWSHUVRQEULHIO\LQ RUGHU WR µLQYHVWLJDWH WKH FLUFXPVWDQFHV WKDW SURYRNH +DYLQJFRQVLGHUHGDOORIWKHPHDVXUHVXVHGE\WKHRIILFHUV VXVSLFLRQ7\SLFDOO\WKLVPHDQVWKDWWKHRIILFHUPD\ ZHILQGWKDWWKHRIILFHUVjFRQGXFWLQHIIHFWXDWLQJWKHVWRSRI DVN WKH GHWDLQHH D PRGHUDWH QXPEHU RI TXHVWLRQV WR +HDWKGLGQRWULVHWRWKHOHYHORIDQDUUHVW:KLOHWKHDPRXQW GHWHUPLQHKLVLGHQWLW\DQGWRWU\WRREWDLQLQIRUPDWLRQ RIIRUFHXVHGE\WKHVHRIILFHUVZDVKLJKO\LQWUXVLYHDQGXQGHU FRQILUPLQJRUGLVSHOOLQJWKHRIILFHUjVVXVSLFLRQVjl VRPH FLUFXPVWDQFHV FRXOG EH HTXDWHG ZLWK DQ DUUHVW WKH mPHUHXVHRIIRUFHLQPDNLQJDVWRSZLOOQRWQHFHVVDULO\ 8QLWHG6WDWHVY)RXQWDLQHWDO)GWK&LU FRQYHUW D VWRS LQWR DQ DUUHVW  >:KHQ WKH@ VXUURXQGLQJ  TXRWLQJ %HUNHPHU Y 0F&DUW\  86   FLUFXPVWDQFHV JLYH ULVH WR D MXVWLILDEOH IHDU IRU SHUVRQDO IRRWQRWHRPLWWHGTXRWLQJ8QLWHG6WDWHVY%ULJQRQL VDIHW\ D VHL]XUH HIIHFWXDWHG ZLWK ZHDSRQV GUDZQ PD\ 3RQFH  86    LQWHUQDO FLWDWLRQV SURSHUO\EHFRQVLGHUHGDQLQYHVWLJDWLYHVWRSl+DUGQHWW RPLWWHG 6HHDOVR)ORULGDY5R\HU86 )GDWFLWLQJ8QLWHG6WDWHVY*UHHQH)G DWHPSRUDU\7HUU\GHWHQWLRQLVZDUUDQWHGZKHQWKH WK&LU 7KLV&LUFXLWSHUPLWVWKHXVHRI SXEOLF LQWHUHVW LQYROYHG LV WKH GHWHUUHQFH RI LOOHJDO GUXJ IRUFHVXFKDVKDQGFXIIVDQGJXQVWRHIIHFWDVWRSZKHQVXFK WUDIILFNLQJ DVKRZRIIRUFHLVUHDVRQDEOHXQGHUWKHFLUFXPVWDQFHVRIWKH VWRS6HHHJ+RXVWRQY&ODUN&RXQW\6KHULII'HSXW\sRKQ ,QDQDO\]LQJWKHFLUFXPVWDQFHVUHOLHGXSRQE\WKHRIILFHUV 'RHV)GWK&LUILQGLQJWKDWWKH LQUHDFKLQJWKHUHTXLVLWHOHYHORImUHDVRQDEOHVXVSLFLRQlD XVHRIKDQGFXIIVGRHVQRWH[FHHGWKHERXQGVRID7HUU\VWRS EULHIUHFLWDORIWKHIDFWRUVZDUUDQWLQJWKHVWRSDVIRXQGE\WKH +DUGQHWW  )G DW   KROGLQJ WKDW DSSURDFKLQJ D GLVWULFWFRXUWLVQHFHVVDU\ GHIHQGDQWZLWKDILUHDUPGUDZQZDVUHDVRQDEOHDVWKHRIILFHU KDG UHDVRQ WR EHOLHYH WKH VXVSHFW ZDV DUPHG  :H KDYH D 'HW6HHO\HKDGREVHUYHG+HDWKDWDVXVSHFWHGGUXJ ORFDWLRQDIHZZHHNVSULRUWRWKHVWRS  8QLWHG6WDWHVY+RUWRQHWDO 1RV 1RV 8QLWHG6WDWHVY+RUWRQHWDO 

E 'HW6HHO\HNQHZWKDW+HDWKKDGSULRUFRQYLFWLRQV GHWHQWLRQ+DYLQJmYLHZ>HG@DOORIWKHFLUFXPVWDQFHVl LQFOXGLQJDSULRUGUXJWUDIILFNLQJFRQYLFWLRQ ZHGHHPWKHEHKDYLRUJOHDQHGIURPWKHVXUYHLOODQFHFRXSOHG ZLWKWKHLQIRUPDWLRQUHOD\HGE\WKHFRQILGHQWLDOLQIRUPDQW F 'HW6HHO\HNQHZIURPDUHOLDEOHVRXUFHWKDW+HDWK VXIILFLHQW WR JLYH WKH RIILFHUV D UHDVRQDEOH VXVSLFLRQ RI ZDV FXUUHQWO\ LQYROYHG LQ WUDIILFNLQJ LQ ODUJH RQJRLQJ FULPLQDO DFWLYLW\ .QR[  )G DW  TXRWLQJ TXDQWLWLHVRIFRFDLQH 0HQGHQKDOO  86 DW    $FFRUGLQJO\ WKH GLVWULFW FRXUWjV ILQGLQJ RI mUHDVRQDEOH VXVSLFLRQl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m>@WKHRIILFHUjVFRQGXFWLVVXSSRUWHGE\ +HDWKKDGXVHGWRGULYHWRWKHVFHQH DUWLFXODEOHVXVSLFLRQDQG>@WKHGHWHQWLRQDQGLQYHVWLJDWLYH PHWKRGV XVHG ZHUH UHDVRQDEOH XQGHU WKH FLUFXPVWDQFHVl I 'HW6HHO\HKDGIROORZHG+HDWKXSRQOHDYLQJWKH 8QLWHG6WDWHVY:LQIUH\)GWK&LU :HVW%URDGZD\DSDUWPHQWEXLOGLQJWRKLVKRPHRQ m$OWKRXJKDQRIILFHUPD\KDYHUHDVRQDEOHVXVSLFLRQWRGHWDLQ 'L[GDOH DQG KDG VHHQ SHRSOH EHJLQ FRPLQJ DQG D SHUVRQ RU KLV SRVVHVVLRQV IRU LQYHVWLJDWLRQ WKH RIILFHUjV JRLQJIURPWKH'L[GDOHUHVLGHQFH7KLVLVFRQVLVWHQW LQYHVWLJDWLYHGHWHQWLRQFDQPDWXUHLQWRDQDUUHVWRUVHL]XUHLI ZLWKGUXJWUDIILFNLQJ LW RFFXUV RYHU DQ XQUHDVRQDEOH SHULRG RI WLPH RU XQGHU XQUHDVRQDEOH FLUFXPVWDQFHVl  8QLWHG 6WDWHV Y $YHU\  J 2QWKHGD\RIWKHVWRS+HDWKZDVGULYLQJDYHKLFOH )G   WK &LU    :KLOH FRXUWV KDYH EHHQ UHJLVWHUHG WR 0LFKDHO 6SDXOGLQJ D NQRZQ GUXJ UHOXFWDQWWRVHWDWLPHOLPLWRQGHWHQWLRQVVHHHJ8QLWHG GHDOHU 6WDWHVY3ODFH86GHFOLQLQJmWRDGRSW K 'HW6HHO\HKDGVHHQ+HDWKRQWKHGD\RIWKHVWRS XVHFRXQWHUVXUYHLOODQFHWHFKQLTXHVLQKLVGULYLQJLQ  DQDWWHPSWWRORVHDQ\YHKLFOHIROORZLQJKLP :H DUH PLQGIXO WKDW WKH PDMRULW\ RI WKHVH IDFWRUV DUH DWWULEXWDEOH WR PDQ\ RUGLQDU\ ODZDELGLQJ FLWL]HQV ,W KDV EHFRPH FRPPRQSODFH IRU

s$DW FLWL]HQV WR HPSOR\ mFRXQWHUVXUYHLOODQFHl WDFWLFV ZKHQ H[LWLQJ D YHKLFOH RU HQWHULQJ D EXLOGLQJ HVSHFLDOO\ ZKHQ FDUU\LQJ SDFNDJHV 7KHVH WDFWLFV DUH

%DVHG XSRQ WKHVH IDFWV WKH GLVWULFW FRXUW IRXQG WKDW mWKH RIWHQ PDQGDWHG E\ WKH UHDOLWLHV RI D GDQJHURXV VRFLHW\ :H IXUWKHU QRWH

LQLWLDOVWRSZDVSODLQO\UHDVRQDEOHls$DW$OWKRXJK KRZHYHU WKDW RXU FRQVLGHUDWLRQV LQ WKLV FDVH HQFRPSDVV WKH mWRWDOLW\ RI WKH FLUFXPVWDQFHVl $00 8QLWHG 6WDWHV Y .QR[  )G   WK VXFKIDFWVZRXOGQRWVXSSRUWSUREDEOHFDXVHWRDUUHVW+HDWK &LU  mLQ YLHZ RI DOO RI WKH FLUFXPVWDQFHV VXUURXQGLQJ WKH LQFLGHQWl ZHILQGWKDWWKH\ZHUHVXIILFLHQWWRVDWLVI\WKHOHVVVWULQJHQW TXRWLQJ 8QLWHG 6WDWHV Y 0HQGHQKDOO  86     7KXV VWDQGDUGV RI 7HUU\ DQG %HUNHPHU IRU D EULHI LQYHVWLJDWLYH LW LV WKH FRPELQDWLRQ DQG ZHLJKW RI WKHVH IDFWRUV ZKHQ FRQVLGHUHG HQ PDVVH WKDW JLYHV ULVH WR RXU FRQFXUUHQFH LQ WKH GLVWULFW FRXUWjV ILQGLQJ RI UHDVRQDEOH VXVSLFLRQ