United States v. Mackey

Opinion

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

81,7(' 67$7(6 2) $0(5,&$ ; 3ODLQWLII$SSHOOHH    1R Y  !  3,(55( 6 0$&.(<  'HIHQGDQW$SSHOODQW  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH:HVWHUQ'LVWULFWRI7HQQHVVHHDWsDFNVRQ 1RnsDPHV'7RGG&KLHI'LVWULFWsXGJH $UJXHGsXQH 'HFLGHGDQG)LOHG6HSWHPEHU %HIRUH0$57,1&KLHIsXGJH1255,6&LUFXLWsXGJH 48,67'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8('  6WHSKHQ % 6KDQNPDQ 2)),&( 2) 7+( )('(5$/38%/,&'()(1'(50HPSKLV7HQQHVVHHIRU $SSHOODQW5LFKDUG/HLJK*ULQDOGV$66,67$1781,7('

7KH +RQRUDEOH *RUGRQ s 4XLVW 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH :HVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ

  8QLWHG6WDWHVY0DFNH\ 1R

67$7(6 $77251(< sDFNVRQ 7HQQHVVHH IRU $SSHOOHH 21 %5,()  6WHSKHQ % 6KDQNPDQ 2)),&( 2) 7+( )('(5$/38%/,&'()(1'(50HPSKLV7HQQHVVHHIRU $SSHOODQW5LFKDUG/HLJK*ULQDOGV$66,67$1781,7(' 67$7(6$77251(<sDFNVRQ7HQQHVVHHIRU$SSHOOHH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB $/$1(1255,6&LUFXLWsXGJH3LHUUH0DFNH\DSSHDOV KLVFRQYLFWLRQIRUSRVVHVVLRQRIDFRQWUROOHGVXEVWDQFHZLWK LQWHQWWRGLVWULEXWHLQYLRODWLRQRI86&†D DQG SRVVHVVLRQ RI D ILUHDUP LQ IXUWKHUDQFH RI D GUXJ IHORQ\ LQ YLRODWLRQRI86&†F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

WKHFRFDLQH'HIHQGDQWFODLPVWKDWWKHJRYHUQPHQWSURGXFHG FORWKHV  7KH IURQW GRRU ZDV EDUULFDGHG DV LV W\SLFDO LQ D OLWWOH HYLGHQFH RI KLV LQWHQW WR GLVWULEXWH VR WKH SRWHQWLDO FUDFNKRXVHDFFRUGLQJWRWHVWLPRQ\ LPSOLFDWLRQWKDWKHKDGVROGFRFDLQHWKHGD\EHIRUHZDVQRW KDUPOHVVHUURUnWKHFRQYLFWLRQRISRVVHVVLRQZLWKLQWHQWWR $IWHUDMXU\WULDOGHIHQGDQWZDVFRQYLFWHGRISRVVHVVLRQRI GLVWULEXWHUHVWHGXSRQWKLVLPSOLFDWLRQ:HGLVDJUHH7KHUH FRFDLQH EDVH ZLWK LQWHQW WR GLVWULEXWH LQ YLRODWLRQ RI  ZDVQRFOHDUDEXVHRIGLVFUHWLRQLQILQGLQJWKDWWKHSUREDWLYH 86&†D SRVVHVVLRQRIDILUHDUPLQIXUWKHUDQFHRI YDOXHRIWKHVWLSXODWLRQRXWZHLJKHGWKHSRWHQWLDOSUHMXGLFH D GUXJ FULPH LQ YLRODWLRQ RI  86& † F EHLQJ D 0RUHRYHUHYHQLIWKHUHZDVDQHUURULWZDVKDUPOHVVLQOLJKW FRQYLFWHGIHORQLQSRVVHVVLRQRIDILUHDUPLQYLRODWLRQRI RIWKHRWKHUHYLGHQFH7KHXQFKDOOHQJHGWHVWLPRQ\DERXWD 86&†JSRVVHVVLRQRIDQXQUHJLVWHUHGVKRUWEDUUHOHG FRQWUROOHGEX\KHOSHGHVWDEOLVKWKHKRXVHDVDFUDFNKRXVH VKRWJXQLQYLRODWLRQRI86&††DQGGDQG DQGDUHDVRQDEOHMXURUFRXOGFRQFOXGHWKDWGHIHQGDQWjV DLGLQJ DQG DEHWWLQJ LQ WKH GUXJ DQG ILUHDUPV RIIHQVHV LQ JUDPVRIFUDFNZHUHIRUUHVDOHDQGQRWIRUSHUVRQDOXVH7KH YLRODWLRQRI86&†7KHMXU\DFTXLWWHGGHIHQGDQWDQG VWLSXODWLRQWKHUHIRUHGLGQRWPDWHULDOO\DIIHFWWKHYHUGLFW DFRGHIHQGDQWQDPHG'ZLJKW&KDPSLRQRIFRQVSLUDF\WR GLVWULEXWHDFRQWUROOHGVXEVWDQFHLQYLRODWLRQRI86& ,,, †   'HIHQGDQW DSSHDOV WKH VXIILFLHQF\ RI WKH HYLGHQFH VXSSRUWLQJKLVFRQYLFWLRQVIRUSRVVHVVLRQRIFRFDLQHEDVHZLWK )RU WKH IRUHJRLQJ UHDVRQV ZH DIILUP GHIHQGDQWjV LQWHQWWRGLVWULEXWHDQGSRVVHVVLRQRIDILUHDUPLQIXUWKHUDQFH FRQYLFWLRQ RIDGUXJWUDIILFNLQJFULPH+HDOVRDUJXHVWKDWWKHGLVWULFW FRXUWHUUHGLQDOORZLQJDVWLSXODWLRQE\WKHJRYHUQPHQW ,, $ 6XIILFLHQF\RIWKH(YLGHQFH6XSSRUWLQJWKH86& †&RQYLFWLRQ 'HIHQGDQWDUJXHVWKDWKHSRVVHVVHGWKHFRFDLQHIRUSHUVRQDO XVH DQG WKHUH ZDV LQVXIILFLHQW HYLGHQFH RI KLV LQWHQW WR GLVWULEXWH  :H UHYLHZ FODLPV RI LQVXIILFLHQW HYLGHQFH WR GHWHUPLQHmZKHWKHUDIWHUYLHZLQJWKHHYLGHQFHLQWKHOLJKW PRVWIDYRUDEOHWRWKHSURVHFXWLRQDQ\UDWLRQDOWULHURIIDFW FRXOGKDYHIRXQGWKHHVVHQWLDOHOHPHQWVRIWKHFULPHEH\RQG DUHDVRQDEOHGRXEWlsDFNVRQY9LUJLQLD86  6HFWLRQD SURYLGHVWKDWLWLVXQODZIXOIRUDQ\SHUVRQ NQRZLQJO\ RU LQWHQWLRQDOO\ WR mPDQXIDFWXUH GLVWULEXWH RU GLVSHQVHRUSRVVHVVZLWKLQWHQWWRPDQXIDFWXUHGLVWULEXWHRU GLVSHQVHDFRQWUROOHGVXEVWDQFHl86&†D 7R HVWDEOLVK D YLRODWLRQ RI † D  WKH JRYHUQPHQW PXVW SURYHWKHIROORZLQJHOHPHQWVmNQRZLQJSRVVHVVLRQRI DFRQWUROOHGVXEVWDQFHZLWKLQWHQWWRGLVWULEXWHl8QLWHG  8QLWHG6WDWHVY0DFNH\ 1R 1R 8QLWHG6WDWHVY0DFNH\ 

6WDWHV Y &KULVWLDQ  )G   WK &LU  &$GPLVVLRQRI6WLSXODWLRQ FLWDWLRQ RPLWWHG  &LUFXPVWDQWLDO HYLGHQFH DORQH FDQ EH VXIILFLHQWWRVXVWDLQDFRQYLFWLRQ8QLWHG6WDWHVY&ODUN 'HIHQGDQW FRQWHVWV WKH WULDO FRXUWjV DGPLVVLRQ RI D )GWK&LU VWLSXODWLRQ E\ WKH JRYHUQPHQW  :H ZLOO QRW GLVWXUE D WULDO FRXUWjVGHWHUPLQDWLRQRQWKHDGPLVVLELOLW\DQGUHOHYDQF\RI 7KH JRYHUQPHQW LQWURGXFHG HYLGHQFH WKDW GHIHQGDQW HYLGHQFHDEVHQWDFOHDUDEXVHRIGLVFUHWLRQ8QLWHG6WDWHVY SRVVHVVHGJUDPVRIFUDFNFRFDLQHDWDKRXVHWKDWKHKDG 6HDJR)GWK&LU:HKDYHKHOGWKDW UHQWHGIRUFDVKWZRZHHNVSULRUWRWKHVHDUFKDQGPRUH DQHUURUZLWKUHVSHFWWRWKHDGPLVVLRQRIHYLGHQFHLVVXEMHFW JUDPV ZHUH RQ WKH JURXQG RXWVLGH WKH KRXVH  7KHUH ZDV WRKDUPOHVVHUURUDQDO\VLV8QLWHG6WDWHVY'DQLHO)G WHVWLPRQ\WKDWJUDPVZRXOGQRWOLNHO\EHDSHUVRQDOXVH WK&LUDQGLWLVZHOOVHWWOHGWKDWDQHUURU DPRXQWDZLWQHVVVWDWHGWKDWGHDOHUVXVXDOO\VHOODmURFNlRI WKDWLVQRWRIFRQVWLWXWLRQDOGLPHQVLRQLVKDUPOHVVmXQOHVVLW DERXWJUDPVWRXVHUV&LUFXPVWDQWLDOHYLGHQFHLQFOXGLQJ LVPRUHSUREDEOHWKDQQRWWKDWWKHHUURUPDWHULDOO\DIIHFWHGWKH UD]RUEODGHVVFDOHVDVFDQQHUDVDZHGRIIVKRWJXQDQGD YHUGLFWl8QLWHG6WDWHVY0DUWLQ)GWK EDUULFDGHGGRRULQGLFDWHGWKDWWKHKRXVHZDVQRWDUHVLGHQFH &LUFLWDWLRQRPLWWHG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jV LGHQWLW\ DQG DYRLG FDOOLQJ KLP WR WHVWLI\ WKH †F&RQYLFWLRQ JRYHUQPHQW DJUHHG WR VWLSXODWH WKDW WKH LQIRUPDQW GLG QRW SXUFKDVH WKH FRFDLQH IURP &KDPSLRQ  'HIHQGDQW GLG QRW 'HIHQGDQW FKDOOHQJHV WKH VXIILFLHQF\ RI WKH HYLGHQFH REMHFWWRWKHJHQHUDOWHVWLPRQ\DERXWWKHFRQWUROOHGEX\EXW VXSSRUWLQJ KLV FRQYLFWLRQ IRU SRVVHVVLQJ D ILUHDUP LQ KHREMHFWHG WR WKHVWLSXODWLRQEHFDXVHKHFODLPHGLWZRXOG IXUWKHUDQFHRIDGUXJWUDIILFNLQJFULPH7RWKHH[WHQWWKDWWKH LPSO\ WKDW WKH LQIRUPDQW SXUFKDVHG WKH FRFDLQH IURP KLP TXHVWLRQWXUQVRQVWDWXWRU\LQWHUSUHWDWLRQUDWKHUWKDQRQWKH 7KHFRXUWRYHUUXOHGWKHREMHFWLRQ VXIILFLHQF\ RI WKH HYLGHQFH ZH UHYLHZ WKH LVVXH GH QRYR 8QLWHG6WDWHVY&KRLFH)GWK&LU 8QGHU)HGHUDO5XOHRI(YLGHQFHm>D@OWKRXJKUHOHYDQW 6HFWLRQFSURYLGHVLQUHOHYDQWSDUW HYLGHQFH PD\ EH H[FOXGHG LI LWV SUREDWLYH YDOXH LV VXEVWDQWLDOO\RXWZHLJKHGE\WKHGDQJHURIXQIDLUSUHMXGLFH DQ\SHUVRQZKRGXULQJDQGLQUHODWLRQWRDQ\FULPHRI FRQIXVLRQ RI WKH LVVXHV RU PLVOHDGLQJ WKH MXU\ RU E\ YLROHQFHRUGUXJWUDIILFNLQJFULPHXVHVRUFDUULHVD FRQVLGHUDWLRQV RI XQGXH GHOD\ ZDVWH RI WLPH RU QHHGOHVV ILUHDUP RU ZKR LQ IXUWKHUDQFH RI DQ\ VXFK FULPH SUHVHQWDWLRQ RI FXPXODWLYH HYLGHQFHl  )(' 5 (9,'  SRVVHVVHVDILUHDUPVKDOOLQDGGLWLRQWRWKHSXQLVKPHQW 7KH JRYHUQPHQW DVVHUWV WKDW EHFDXVH WKHUH ZDV WHVWLPRQ\ SURYLGHGIRUVXFKFULPHRIYLROHQFHRUGUXJWUDIILFNLQJ DERXWRWKHUVSUHVHQWLQWKHKRXVHZKHQWKHVHDUFKZDUUDQWZDV FULPHn H[HFXWHGWKHVWLSXODWLRQGLGQRWSUHMXGLFHGHIHQGDQWEHFDXVH WKHLPSOLFDWLRQZDVQRWQHFHVVDULO\WKDWGHIHQGDQWKDGVROG  8QLWHG6WDWHVY0DFNH\ 1R 1R 8QLWHG6WDWHVY0DFNH\ 

+5 5(3 12:/DW ,QOLJKWRI LEHVHQWHQFHGWRDWHUPRILPSULVRQPHQWRIQRW &RQJUHVVjLQWHQWWKDWmLQIXUWKHUDQFHRIlEHDPRUHVWULQJHQW OHVVWKDQ\HDUV>@ UHTXLUHPHQWWKDQmGXULQJDQGLQUHODWLRQWRlZHHPSKDVL]H WKDWWKHSRVVHVVLRQRIDILUHDUPRQWKHVDPHSUHPLVHVDVD 86&†F GUXJ WUDQVDFWLRQ ZRXOG QRW ZLWKRXW D VKRZLQJ RI D FRQQHFWLRQEHWZHHQWKHWZRVXVWDLQD†FFRQYLFWLRQ,Q ,QWKLVFDVHGHIHQGDQWFRQWHQGVWKDWWKHJRYHUQPHQWIDLOHG RUGHUIRUWKHSRVVHVVLRQWREHLQIXUWKHUDQFHRIDGUXJFULPH WRSURYHWKHXQGHUO\LQJGUXJRIIHQVHVRKHFRXOGQRWKDYH WKHILUHDUPPXVWEHVWUDWHJLFDOO\ORFDWHGVRWKDWLWLVTXLFNO\ SRVVHVVHGWKHJXQLQIXUWKHUDQFHRIWKDWRIIHQVH%HFDXVHDV DQG HDVLO\ DYDLODEOH IRU XVH  6HH 8QLWHG 6WDWHV Y GLVFXVVHGDERYHZHFRQFOXGHWKDWWKHHYLGHQFHLVVXIILFLHQW )HOL]&RUGHUR)GG&LUVWDWLQJWKDW WR VXSSRUW GHIHQGDQWjV †  FRQYLFWLRQ WKLV DUJXPHQW LV DJXQLQDGUHVVHUGUDZHUZLWKGUXJVLQWKHEHGURRPGLGQRW ZLWKRXWPHULW FRQVWLWXWH mXVHl XQGHU †  EHFDXVH WKH HYLGHQFH ZDV LQVXIILFLHQWWRVKRZWKHJXQZDVmVWUDWHJLFDOO\ORFDWHGVRDV 'HIHQGDQWFRQFHGHVWKDWKHFRQVWUXFWLYHO\ SRVVHVVHGWKH WR EH TXLFNO\ DQG HDVLO\ DYDLODEOH IRU XVH GXULQJ VXFK D JXQ EXW KH FODLPV WKDW WKHUH ZDV QR HYLGHQFH WKDW WKH WUDQVDFWLRQl RYHUUXOHG E\ %DLOH\  86   2WKHU SRVVHVVLRQZDVmLQIXUWKHUDQFHRIlWKHGUXJFULPH:HDUH IDFWRUVWKDWPD\EHUHOHYDQWWRDGHWHUPLQDWLRQRIZKHWKHUWKH FRQIURQWHG ZLWK WKH TXHVWLRQ RI ZKDW mLQ IXUWKHUDQFH RIl ZHDSRQ ZDV SRVVHVVHG LQ IXUWKHUDQFH RI WKH FULPH LQFOXGH PHDQV LQ WKH VWDWXWH  7KH WHUP mIXUWKHUDQFHl VKRXOG EH ZKHWKHUWKHJXQZDVORDGHGWKHW\SHRIZHDSRQWKHOHJDOLW\ XQGHUVWRRG LQ LWV RUGLQDU\ RU QDWXUDO PHDQLQJ ZKLFK RILWVSRVVHVVLRQWKHW\SHRIGUXJDFWLYLW\FRQGXFWHGDQGWKH DFFRUGLQJ WR WKH GLFWLRQDU\ LV mD KHOSLQJ IRUZDUG WLPHDQGFLUFXPVWDQFHVXQGHUZKLFKWKHILUHDUPZDVIRXQG DGYDQFHPHQW SURPRWLRQl  :(%67(5j6 7+,5' 1(: 6HH8QLWHG6WDWHVY&HEDOORV7RUUHV)G ,17(51$7,21$/ ',&7,21$5<   ,Q RWKHU ZRUGV WKH WK&LUVXJJHVWLQJFRQVLGHUDWLRQRIWKHVHIDFWRUVWR ZHDSRQPXVWSURPRWHRUIDFLOLWDWHWKHFULPH GHWHUPLQHSRVVHVVLRQLQIXUWKHUDQFHRIDGUXJFULPH7KHOLVW RI IDFWRUV LV QRW H[FOXVLYH EXW LW KHOSV WR GLVWLQJXLVK 7KHDPHQGPHQWKLVWRU\RI†FmFDVWVIXUWKHUOLJKWRQ SRVVHVVLRQLQIXUWKHUDQFHRIDFULPHIURPLQQRFHQWSRVVHVVLRQ &RQJUHVVjLQWHQGHGPHDQLQJl%DLOH\Y8QLWHG6WDWHV RIDZDOOPRXQWHGDQWLTXHRUDQXQORDGHGKXQWLQJULIOHORFNHG 86     7KH SURYLVLRQ RI † F WKDW LQDFXSERDUG FULPLQDOL]HVmSRVVHVVLRQlRIDJXQmLQIXUWKHUDQFHRIlFHUWDLQ FULPHV ZDV DGGHG E\ &RQJUHVV LQ  LQ UHVSRQVH WR WKH ,QWKHLQVWDQWFDVHWKHUHZDVDQLOOHJDOO\SRVVHVVHGORDGHG 6XSUHPH&RXUWjVGHFLVLRQLQ%DLOH\7KDWFDVHFRQFHUQHGWKH VKRUWEDUUHOHGVKRWJXQLQWKHOLYLQJURRPRIWKHFUDFNKRXVH SULRUYHUVLRQRIWKHVWDWXWHZKLFKGLGQRWPHQWLRQSRVVHVVLRQ HDVLO\DFFHVVLEOHWRWKHGHIHQGDQWDQGORFDWHGQHDUWKHVFDOHV EXWFULPLQDOL]HGXVLQJDQGFDUU\LQJDILUHDUPmGXULQJDQGLQ DQGUD]RUEODGHV'HIHQGDQWVWRSSHGE\SROLFHQHDUWKHJXQ UHODWLRQWRlFULPHVRIYLROHQFHRUGUXJRIIHQVHV86& SRVVHVVHG FRFDLQH DQG D ODUJH VXP RI FDVK  )URP WKH †F 7KH&RXUWRI$SSHDOVIRUWKH'LVWULFWRI HYLGHQFH SUHVHQWHG D UHDVRQDEOH MXU\ FRXOG LQIHU WKDW WKH &ROXPELD&LUFXLWKDGDIILUPHGDFRQYLFWLRQIRUmXVHl RID SXUSRVHRIWKHILUHDUPZDVWRSURYLGHGHIHQVHRUGHWHUUHQFH ZHDSRQmGXULQJDQGLQUHODWLRQWRlDGUXJFULPHEDVHGRQD LQIXUWKHUDQFHRIWKHGUXJWUDIILFNLQJIRUZKLFKGHIHQGDQWZDV JXQORFNHGLQWKHWUXQNRIGHIHQGDQWjVFDUDWWKHWLPHRIKLV DUUHVWHG DUUHVW8QLWHG6WDWHVY%DLOH\)G'&&LU 7KH6XSUHPH&RXUWUHMHFWHGVXFKDEURDGLQWHUSUHWDWLRQRI mXVHlDQGKHOGWKDWmXVHlUHTXLUHGVRPHDFWLYHHPSOR\PHQW %DLOH\86DW  8QLWHG6WDWHVY0DFNH\ 1R 1R 8QLWHG6WDWHVY0DFNH\ 

7KH OHJLVODWLYH KLVWRU\ RI &RQJUHVVj UHVSRQVH WR WKLV VXFKILUHDUPVDUHXVHGmGXULQJDQGLQUHODWLRQWRlDGUXJ GHFLVLRQLQGLFDWHVWKDW&RQJUHVVLQWHQGHGWKHmLQIXUWKHUDQFH WUDIILFNLQJFULPH RIl OLPLWDWLRQ WR EH D KLJKHU VWDQGDUG WKDQ mGXULQJ DQG LQ UHODWLRQ WRl ZKLFK FRQWLQXHV WR PRGLI\ WKH XVH DQG FDUU\ 8QLWHG 6WDWHVY+HQU\)GWK&LU SURQJV RI WKH VWDWXWH  $V WKH sXGLFLDU\ &RPPLWWHH DIILUPLQJ D † F FRQYLFWLRQ XQGHU WKH IRUWUHVV WKHRU\ DFNQRZOHGJHG WKRXJK WKH GLIIHUHQFH EHWZHHQ WKH WZR ZKHQSROLFHIRXQGDSLVWROQHDUFDVKLQDIDUPKRXVHDORDGHG VWDQGDUGVLVVRPHZKDWHOXVLYH ULIOHQHDUGULHGPDULMXDQDDPDULMXDQDFURSRXWVLGHWKHKRXVH DQGDQLQWHUFRPV\VWHPIRUPRQLWRULQJWKHPDULMXDQDFURS 7KH&RPPLWWHHUHFRJQL]HVWKDWWKHGLVWLQFWLRQEHWZHHQ DUHDRYHUUXOHGE\%DLOH\860DQ\RIWKHmXVHl mLQIXUWKHUDQFHRIlDQGmGXULQJDQGLQUHODWLRQWRlLVD FRQYLFWLRQV XQGHU WKH IRUWUHVV WKHRU\ ZRXOG TXDOLI\ DV VXEWOH RQH DQG PD\ LQLWLDOO\ SURYH WURXEOHVRPH IRU SRVVHVVLRQXQGHUWKHFXUUHQWVWDWXWH7KHQHZDPHQGPHQW SURVHFXWRUV1HYHUWKHOHVVWKH&RPPLWWHHEHOLHYHVWKDW GRHV QRW KRZHYHU FRYHU DOO LQVWDQFHV RI SRVVHVVLRQ RI D mLQ IXUWKHUDQFH RIl LV D VOLJKWO\ KLJKHU VWDQGDUG DQG ILUHDUPE\DGUXJWUDIILFNHU%\UHTXLULQJWKDWWKHSRVVHVVLRQ HQFRPSDVVHVWKHmGXULQJDQGLQUHODWLRQWRlODQJXDJH EHmLQIXUWKHUDQFHRIlWKHFULPH&RQJUHVVLQWHQGHGDVSHFLILF QH[XVEHWZHHQWKHJXQDQGWKHFULPHFKDUJHG6HH8QLWHG 7KHJRYHUQPHQWPXVWFOHDUO\VKRZWKDWDILUHDUP 6WDWHV Y )LQOH\  )G   G &LU  mWKH ZDVSRVVHVVHGWRDGYDQFHRUSURPRWHWKHFRPPLVVLRQRI UHTXLUHPHQW LQ † F  WKDW WKH JXQ EH SRVVHVVHG LQ WKHXQGHUO\LQJRIIHQVH7KHPHUHSUHVHQFHRIDILUHDUPLQ IXUWKHUDQFHRIDGUXJFULPHPD\EHVDWLVILHGE\DVKRZLQJRI DQDUHDZKHUH D FULPLQDODFWRFFXUVLVQRWDVXIILFLHQW VRPH QH[XV EHWZHHQ WKH ILUHDUP DQG WKH GUXJ VHOOLQJ EDVLV IRU LPSRVLQJ WKLV SDUWLFXODU PDQGDWRU\ VHQWHQFH RSHUDWLRQlFLWDWLRQRPLWWHG  5DWKHUWKHJRYHUQPHQWPXVWLOOXVWUDWHWKURXJKVSHFLILF IDFWV ZKLFK WLH WKH GHIHQGDQW WR WKH ILUHDUP WKDW WKH 7KHsXGLFLDU\&RPPLWWHH5HSRUWSURYLGHVDQLOOXVWUDWLRQRI ILUHDUP ZDV SRVVHVVHG WR DGYDQFH RU SURPRWH WKH DQLQVXIILFLHQWQH[XVE\UHIHUULQJWRWKH%DLOH\FDVH FULPLQDODFWLYLW\ 7KHIDFWVRIWKH%DLOH\GHFLVLRQSURYLGHDJRRG +5 5(3 12:/DW  H[DPSOH 7KH &RPPLWWHH EHOLHYHV WKDW WKH HYLGHQFH IRRWQRWHV RPLWWHG  6HH DOVR 8QLWHG 6WDWHV Y ,LODQG  SUHVHQWHGE\WKHJRYHUQPHQWLQWKDWFDVHPD\QRWKDYH )G   WK &LU  H[SODLQLQJ WKDW mLQ EHHQVXIILFLHQWWRVXVWDLQDFRQYLFWLRQIRUSRVVHVVLRQRI IXUWKHUDQFH RIl LV D KLJKHU VWDQGDUG WKDQ mGXULQJ DQG LQ DILUHDUPmLQIXUWKHUDQFHRIlWKHFRPPLVVLRQRIDGUXJ UHODWLRQWRl WUDIILFNLQJ RIIHQVH ,Q WKDW FDVH D SURVHFXWLRQ H[SHUW WHVWLILHGDW0U%DLOH\jVWULDOWKDWGUXJGHDOHUVIUHTXHQWO\ ,QLQWHUSUHWLQJWKHPHDQLQJRImSRVVHVVLRQlRIDZHDSRQmLQ FDUU\ D ILUHDUP WR SURWHFW WKHPVHOYHV DV ZHOO DV WKHLU IXUWKHUDQFHRIlFHUWDLQFULPHVZHPD\GUDZJXLGDQFHIURP GUXJV DQG PRQH\  6WDQGLQJ RQ LWV RZQ WKLV HYLGHQFH RXUSUHYLRXVFDVHVLQWHUSUHWLQJWKHmXVHlRIDILUHDUPmGXULQJ PD\EHLQVXIILFLHQWWRPHHWWKHmLQIXUWKHUDQFHRIlWHVW DQGLQUHODWLRQWRlWKHFULPHV3ULRUWR%DLOH\ZHDGKHUHGWR 7KH JRYHUQPHQW ZRXOG KDYH WR VKRZ WKDW WKH ILUHDUP DmIRUWUHVVWKHRU\lRIXVHDFFRUGLQJWRZKLFK ORFDWHGLQWKHWUXQNRIWKHFDUDGYDQFHGRUSURPRWHG0U %DLOH\jVGUXJGHDOLQJDFWLYLW\7KH&RPPLWWHHEHOLHYHV LILWUHDVRQDEO\DSSHDUVWKDWWKHILUHDUPVIRXQGRQWKH WKDWRQHZD\WRFOHDUO\VDWLVI\WKHmLQIXUWKHUDQFHRIlWHVW SUHPLVHVFRQWUROOHGRURZQHGE\DGHIHQGDQWDQGLQKLV ZRXOGEHDGGLWLRQDOZLWQHVVWHVWLPRQ\FRQQHFWLQJ0U DFWXDORUFRQVWUXFWLYHSRVVHVVLRQDUHWREHXVHGWRSURWHFW %DLOH\PRUHVSHFLILFDOO\ZLWKWKHILUHDUP WKHGUXJVRURWKHUZLVHIDFLOLWDWHDGUXJWUDQVDFWLRQWKHQ