           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 DS




81,7('67$7(6&28572)$33($/6
                   )257+(6,;7+&,5&8,7
                     BBBBBBBBBBBBBBBBB


 81,7(' 67$7(6 2) $0(5,&$        ;
          3ODLQWLII$SSHOOHH      
                                   
                                     1RV
           Y                      
                                    !
                                   
7+20$6 5 +$55,6              
$$521 / 7$</25             
                         
       'HIHQGDQWV$SSHOODQWV 
                                   
                                  1
       $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
  IRUWKH(DVWHUQ'LVWULFWRI7HQQHVVHHDW&KDWWDQRRJD
1RVn5$OODQ(GJDU&KLHI'LVWULFW
                           sXGJH
                    $UJXHGsDQXDU\
               'HFLGHGDQG)LOHGsXQH
   %HIRUH%$7&+(/'(5DQG&/$<&LUFXLWsXGJHV
               32/67(5'LVWULFWsXGJH




    
     7KH +RQRUDEOH 'DQ $DURQ 3ROVWHU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU
WKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ



                                    
     8QLWHG6WDWHVY+DUULVHWDO       1RV

                    BBBBBBBBBBBBBBBBB
                         &2816(/
$5*8('  5LWD & /D/XPLD )('(5$/ '()(1'(5
6(59,&(6 &KDWWDQRRJD 7HQQHVVHH sRKQ ( (EHUO\
(%(5/< /$: ),50 &KDWWDQRRJD 7HQQHVVHH IRU
$SSHOODQWV3HUU\+3LSHU$66,67$1781,7('67$7(6
$77251(< &KDWWDQRRJD 7HQQHVVHH IRU $SSHOOHH
21 %5,()  'DYLG ) 1HVV )('(5$/ '()(1'(5
6(59,&(6 &KDWWDQRRJD 7HQQHVVHH sRKQ ( (EHUO\
(%(5/< /$: ),50 &KDWWDQRRJD 7HQQHVVHH IRU
$SSHOODQWV3HUU\+3LSHU$66,67$1781,7('67$7(6
$77251(<&KDWWDQRRJD7HQQHVVHHIRU$SSHOOHH
  32/67(5 ' s GHOLYHUHG WKH RSLQLRQ RI WKH FRXUW LQ
ZKLFK %$7&+(/'(5 s MRLQHG  &/$< s SS 
GHOLYHUHGDVHSDUDWHRSLQLRQFRQFXUULQJLQSDUWGLVVHQWLQJLQ
SDUW
                    BBBBBBBBBBBBBBBBB
                        23,1,21
                    BBBBBBBBBBBBBBBBB
  32/67(5'LVWULFWsXGJH'HIHQGDQWV7KRPDV5+DUULV
DQG$DURQ7D\ORUDSSHDOIURPWKHLUFRQYLFWLRQVRQFKDUJHVRI
SRVVHVVLRQZLWKLQWHQWWRGLVWULEXWHFUDFNFRFDLQHLQYLRODWLRQ
RI86&DFODLPLQJWKDWWKHGLVWULFWFRXUWHUUHG
LQ GHQ\LQJ WKHLU PRWLRQV WR VXSSUHVV HYLGHQFH  )RU WKH
UHDVRQV WKDW IROORZ ZH $)),50 WKH MXGJPHQWV RI
FRQYLFWLRQ
                     ,%$&.*5281'
   'XULQJWKHVXPPHURI'HWHFWLYH6WHSKHQ+RSHRIWKH
&KDWWDQRRJD 3ROLFH 'HSDUWPHQW m&KDWWDQRRJD 3ROLFHl
OHDUQHGIURPDFRQILGHQWLDOLQIRUPDQWWKDWDSHUVRQNQRZQDV
m)DW%R\lKDGEHHQVHOOLQJFUDFNFRFDLQHIURPDKRPHORFDWHG
DW  3RSODU 6WUHHW LQ &KDWWDQRRJD 7HQQHVVHH mWKH
UHVLGHQFHl2Q$XJXVW'HWHFWLYH+RSHVHQWWKH
1RV          8QLWHG6WDWHVY+DUULVHWDO        

FRQILGHQWLDOLQIRUPDQWWRWKHUHVLGHQFHWRPDNHDFRQWUROOHG
SXUFKDVH7KHFRQILGHQWLDOLQIRUPDQWSXUFKDVHGRQHmURFNl
RIFUDFNFRFDLQHIURPm)DW%R\lRQWKDWGD\2Q2FWREHU
WKHFRQILGHQWLDOLQIRUPDQWUHWXUQHGWRWKHUHVLGHQFHDQG
SXUFKDVHGDQRWKHUmURFNlRIFUDFNFRFDLQH
   2Q2FWREHU'HWHFWLYH+RSHSUHSDUHGDQDIILGDYLW
FRQWDLQLQJ WKH IROORZLQJ LQIRUPDWLRQ DQG SUHVHQWHG LW WR D
VWDWHFRXUWMXGJH
  ,6WHSKHQ/+RSHKHUHE\DSSO\IRUDVHDUFKZDUUDQWDQG
  PDNHRDWKDVIROORZV
     ,DPDVZRUQ&KDWWDQRRJD3ROLFH2IILFHUZLWKWKH
       1DUFRWLFV'LYLVLRQZKHUH,KDYHEHHQDVVLJQHGWR
       WKH1DUFRWLFV'LYLVLRQVLQFH
     7KDW RQ WKH >VLF@  , UHFHLYHG UHOLDEOH
       LQIRUPDWLRQIURPDQLQIRUPDQW,KDYHNQRZQIRUWKH
       ODVWILYHPRQWKV
     7KHVDLGLQIRUPDQWKDVSURYHQWREHUHOLDEOHDIWHU
       WKH LQIRUPDWLRQ VDLG LQIRUPDQW SURYLGHG ZDV
       LQGHSHQGHQWO\FRUURERUDWHGE\'HWHFWLYH+RSH
     7KHVDLGLQIRUPDQWKDVSURYLGHGLQIRUPDWLRQLQWKH
       SDVWWKDWKDVOHDG>VLF@WRWKHDUUHVWDQGFRQYLFWLRQRI
       LQGLYLGXDOVLQYLRODWLRQRIQDUFRWLFODZV
     7KH VDLG LQIRUPDQW KDV SURYLGHG LQIRUPDWLRQ WR
       RWKHUODZHQIRUFHPHQWRIILFHUVLQWKHSDVWWKDWKDV
       SURYHQWREHWUXHDQGFRUUHFWZKHQLQGHSHQGHQWO\
       FRUURERUDWHG E\ WKRVH RWKHU ODZ HQIRUFHPHQW
       RIILFHUV
     7KH VDLG LQIRUPDQW KDV PDGH VHYHUDO FRQWUROOHG
       QDUFRWLFEX\VIRUPHLQWKHODVWILYHPRQWKV
     7KDWVDLGLQIRUPDQWDGYLVHGPHWKDWZLWKLQWKHODVW
       KRXUVVDLGLQIRUPDQWZDVRQWKHSUHPLVHVRIVDLG
       sRKQ'RHDOLDVZKRUHVLGHVLQRURFFXSLHVDQGLV
      8QLWHG6WDWHVY+DUULVHWDO        1RV        1RV              8QLWHG6WDWHVY+DUULVHWDO            

        LQSRVVHVVLRQRIWKHIROORZLQJGHVFULEHGSUHPLVHVWR          PDJLVWUDWHRIWKHLQIRUPDQWjVQDPHDQGWKHWZRVXFFHVVIXO
        ZLW  3RSODU 6WUHHW &RXUW &KDWWDQRRJD               FRQWUROOHGEX\VLQWKHSDVW8QGHU7HQQHVVHHODZLVVXLQJ
        +DPLOWRQ&RXQW\7HQQHVVHH>VLF@:KLOHWKHUHVDLG            PDJLVWUDWHV PD\ QRW FRQVLGHU HYLGHQFH RXWVLGH WKH IRXU
        LQIRUPDQW VDZ OHJHQG DQGRU QDUFRWLF GUXJV                FRUQHUV RI WKH DIILGDYLW LQ PDNLQJ D SUREDEOH FDXVH
        LQFOXGLQJ &UDFN &RFDLQH WKH VDPH EHLQJ RQ VDLG         GHWHUPLQDWLRQ  6HH 6WDWH Y 0RRQ  6:G  
        SUHPLVHV LQ WKH SRVVHVVLRQ RI DQG FRQWURO RI VDLG      7HQQ&ULP$SSm>,@Q7HQQHVVHHSUREDEOHFDXVHWR
        sRKQ'RHDOLDV                                              VXSSRUW WKH LVVXDQFH RI WKH ZDUUDQW PXVW DSSHDU LQ WKH
                                                                       DIILGDYLW DQG MXGLFLDO UHYLHZ RI WKH H[LVWHQFH RI SUREDEOH
    :KHUHIRUHDVVXFKRIILFHUDFWLQJLQSHUIRUPDQFHRIP\             FDXVHZLOOQRWLQFOXGHORRNLQJWRRWKHUHYLGHQFHSURYLGHGWR
    GXW\LQWKHSUHPLVHV,SUD\WKDWWKH&RXUWLVVXHDZDUUDQW         RU NQRZQ E\ WKH LVVXLQJ PDJLVWUDWH RU SRVVHVVHG E\ WKH
    DXWKRUL]LQJWKHVHDUFKRIWKHVDLGsRKQ'RHDOLDVDQG            DIILDQWl  $ UHDVRQDEO\ ZHOOWUDLQHG 7HQQHVVHH ODZ
    WKH SUHPLVHV KHUHLQ GHVFULEHG IRU VDLG OHJHQG DQGRU        HQIRUFHPHQWRIILFHUVKRXOGEHH[SHFWHGWRNQRZWKLVPXFK
    QDUFRWLF GUXJV LQFOXGLQJ &UDFN &RFDLQH DQG WKDW VXFK        $OWKRXJKWKLV&RXUWPD\VWLOOFRQVLGHURUDOVWDWHPHQWVHYHQLI
    VHDUFKEHPDGHHLWKHUE\GD\RUQLJKW                             VWDWH FRXUWV DUH SUHFOXGHG IURP GRLQJ VR WKH IDFW WKDW
                                                                       7HQQHVVHH ODZ SUHFOXGHG WKH LVVXLQJ PDJLVWUDWH IURP
,Q DGGLWLRQ WR ILOLQJ WKH DIILGDYLW 'HWHFWLYH +RSH RUDOO\     FRQVLGHULQJWKHGHWHFWLYHjVRUDOVWDWHPHQWVZRXOGPDNHDQ\
DGYLVHGWKHVWDWHFRXUWMXGJHRIWKHQDPHDQGLGHQWLW\RIWKH          UHOLDQFH RQ WKH PDJLVWUDWHjV NQRZOHGJH RI VXFK VWDWHPHQWV
FRQILGHQWLDO LQIRUPDQW DQG RI WKH IDFW WKDW WKH FRQILGHQWLDO   REMHFWLYHO\XQUHDVRQDEOH
LQIRUPDQW KDG PDGH WZR FRQWUROOHG EX\V DW WKH UHVLGHQFH
7KHVWDWHFRXUWMXGJHLVVXHGWKHVHDUFKZDUUDQWEDVHGXSRQWKH           )RUWKHVHUHDVRQVWKHJRRGIDLWKH[FHSWLRQZRXOGQRWDSSO\
LQIRUPDWLRQSUHVHQWHGWRKLP/DWHUWKHVDPHGD\2FWREHU          WRVDYHWKHIUXLWVRIZKDW,EHOLHYHWREHDQLOOHJDOVHDUFK,
'HWHFWLYH+RSHVHQWWKHFRQILGHQWLDOLQIRUPDQWEDFNWR           WKHUHIRUHUHVSHFWIXOO\GLVVHQW
WKH UHVLGHQFH WR DWWHPSW DQRWKHU FRQWUROOHG EX\  7KH
FRQILGHQWLDOLQIRUPDQWIRXQGm)DW%R\lDWWKHUHVLGHQFHEXW
ZDV QRW VXFFHVVIXO LQ SXUFKDVLQJ FUDFN FRFDLQH  7KH
&KDWWDQRRJD3ROLFHZDLWHGXQWLOWKHQH[WZHHNWRH[HFXWHWKH
VHDUFK ZDUUDQW EHFDXVH WKH FRQILGHQWLDO LQIRUPDQW WROG
'HWHFWLYH+RSH WKDW GUXJVPLJKWQRWEHIRXQGDWWKH
3RSODU6WUHHWDGGUHVVRYHUWKHZHHNHQG
  2Q2FWREHUWKH&KDWWDQRRJD3ROLFHH[HFXWHGWKH
VHDUFKZDUUDQWWKDWKDGEHHQLVVXHGIRXUGD\VHDUOLHU:KHQ               
WKH\DUULYHGDWWKHUHVLGHQFHWKHSROLFHRIILFHUVNQRFNHGRQ               6HH (ONLQV Y 8QLWHG 6WDWHV  86   8QLWHG 6WDWHV Y
                                                                       :ULJKW    )G   WK &LU 
WKHIURQWGRRUDQGDQQRXQFHGWKHLUSUHVHQFH$IWHUUHFHLYLQJ
QR UHVSRQVH WKH RIILFHUV HQWHUHG WKH UHVLGHQFH  2IILFHUV         >,@Q IHGHUDO FRXUW >WKH H[FOXVLRQDU\@ UXOH RQO\ UHTXLUHV WKH FRXUW
FDXJKW 'HIHQGDQW 7D\ORU DWWHPSWLQJ WR IOHH WKH UHVLGHQFH            WR H[FOXGH HYLGHQFH VHL]HG LQ YLRODWLRQ RI WKH )HGHUDO
ZKLOHFDUU\LQJFUDFNFRFDLQHRQKLVSHUVRQ$GHWHFWLYHIRXQG             &RQVWLWXWLRQ $ VWDWH PD\ LPSRVH D UXOH IRU VHDUFKHV DQG

'HIHQGDQW +DUULV LQ D VHFRQGIORRU EDWKURRP VHDWHG RQ D           VHL]XUHV WKDW LV PRUH UHVWULFWLYH WKDQ WKH )RXUWK $PHQGPHQW WKDW
                                                                           LV WKH VWDWH PD\ H[FOXGH HYLGHQFH LQ VWDWH WULDOV WKDW ZRXOG QRW
WRLOHWZLWKDSLOHRIFUDFNFRFDLQHORFDWHGQH[WWRKLP7KH              EH H[FOXGHG E\ DSSOLFDWLRQ RI WKH )RXUWK $PHQGPHQW DORQH
GHWHFWLYHGLGQRWNQRFNEHIRUHHQWHULQJWKHEDWKURRPEXWKDG              +RZHYHU WKH VWDWH UXOH GRHV QRW KDYH WR EH DSSOLHG LQ IHGHUDO
                                                                           FRXUW
    8QLWHG6WDWHVY+DUULVHWDO         1RV        1RV           8QLWHG6WDWHVY+DUULVHWDO        

  ,QDVPXFKDVmWKHH[LVWHQFHRISUREDEOHFDXVHLVDIXQFWLRQ           VKRXWHGm3ROLFHZDUUDQWlDVKHSURFHHGHGXSWKHVWDLUVWR
RIWKHLQKHUHQWQDWXUHRIWKHFULPHl8QLWHG6WDWHVY&DQDQ          WKHVHFRQGIORRU
)GWK&LUTXRWDWLRQVRPLWWHGWKHIDFW
WKDWWKHVXVSHFWZDVDFFXVHGRIVHOOLQJURFNVRIHDVLO\SRUWDEOH         %RWK GHIHQGDQWV ILOHG PRWLRQV WR VXSSUHVV HYLGHQFH
DQGGHVWUXFWLEOHFRFDLQHEDVHRQDVSRUDGLFEDVLVPDNHVWKH            REWDLQHG E\ SROLFH GXULQJ WKH VHDUFK  7D\ORUjV PRWLRQ WR
H[LVWHQFH RI SUREDEOH FDXVH DOO WKH PRUH LPSODXVLEOH  $V     VXSSUHVV DUJXHG WKDW WKH DIILGDYLW LQ VXSSRUW RI WKH VHDUFK
PHQWLRQHG HDUOLHU QRWKLQJ DERXW WKH DIILGDYLW RU WKH           ZDUUDQWGLGQRWHVWDEOLVKSUREDEOHFDXVHDQGWKDWWKHJRRG
GHWHFWLYHjV WHVWLPRQ\ EHIRUH WKH PDJLVWUDWH LQGLFDWHG WKDW       IDLWK H[FHSWLRQ WR WKH H[FOXVLRQDU\ UXOH VKRXOG QRW DSSO\
WKHUHZHUHRQJRLQJGUXJVDOHVRQWKHSUHPLVHVVRDVWRIRUJLYH         EHFDXVHWKHRIILFHUNQHZRUVKRXOGKDYHNQRZQWKDWKHGLG
WKHGHWHFWLYHjVNQRZOHGJHWKDWGUXJVZHUHQRORQJHURQWKH             QRWKDYHSUREDEOHFDXVH+DUULVjPRWLRQWRVXSSUHVVDUJXHG
SUHPLVHV&RQWUD8QLWHG6WDWHVY:RUG)G             WKDWWKHHYLGHQFHIRXQGLQWKHEDWKURRPVKRXOGEHVXSSUHVVHG
WK &LU  KROGLQJ WKDW DQ DIILGDYLW FRQWDLQLQJ VWDOH    EHFDXVHWKHGHWHFWLYHYLRODWHG+DUULVjOHJLWLPDWHH[SHFWDWLRQ
LQIRUPDWLRQHVWDEOLVKHGSUREDEOHFDXVHLQOLJKWRIHYLGHQFH            RISULYDF\E\HQWHULQJWKHEDWKURRPZKLOHKHZDVVHDWHGRQ
WKDWWKHFULPHZDVmRIDFRQWLQXLQJQDWXUHl                          WKH WRLOHW ZLWKRXW ILUVW NQRFNLQJ RQ WKH FORVHG GRRU DQG
                                                                       DQQRXQFLQJWKHSXUSRVHRIHQWU\$OWKRXJK+DUULVGLGQRW
  7KLV &RXUW KDV KHOG WKDW m>Z@KHUH UHFHQW LQIRUPDWLRQ          UDLVHODFNRISUREDEOHFDXVHIRUWKHVHDUFKLQKLVPRWLRQWR
FRUURERUDWHVRWKHUZLVHVWDOHLQIRUPDWLRQSUREDEOHFDXVHPD\           VXSSUHVV KH VXEVHTXHQWO\ MRLQHG LQ WKH PRWLRQ ILOHG E\
EHIRXQGl8QLWHG6WDWHVY+HQVRQ)G            7D\ORU
WK&LUTXRWLQJ(PHU\Y+ROPHV)G
VW &LU  LQWHUQDO TXRWDWLRQV RPLWWHG  %XW LQ WKH     )ROORZLQJDMRLQWHYLGHQWLDU\KHDULQJWKHWULDOFRXUWGHQLHG
LQVWDQW FDVH QR DGGLWLRQDO LQIRUPDWLRQ FRUURERUDWHG WKH         7D\ORUjVPRWLRQWRVXSSUHVV$OWKRXJKWKHFRXUWIRXQGWKDW
LQIRUPDQWjVWLS,QVWHDGWKHPRVWUHFHQWLQIRUPDWLRQDFWXDOO\        WKHGHWHFWLYHjVDIILGDYLWmI>HOO@DOLWWOHVKRUWRIHVWDEOLVKLQJ
HYLVFHUDWHGDQ\SRWHQWLDOIRUSUREDEOHFDXVH&RQWUD6SLNHV          SUREDEOHFDXVHXQGHUWKH)RXUWK$PHQGPHQWlLWFRQFOXGHG
 )G DW  ILQGLQJ WKDW SUREDEOH FDXVH VWLOO H[LVWHG    WKDW WKH VHDUFK IHOO ZLWKLQ WKH JRRG IDLWK H[FHSWLRQ WR WKH
EHFDXVHUHFHQWHYHQWVLQGLFDWLQJDQLQFUHDVHGOHYHORIFULPLQDO        H[FOXVLRQDU\UXOHVHWIRUWKLQ8QLWHG6WDWHVY/HRQ86
DFWLYLW\UHIUHVKHGWKHRWKHUZLVHVWDOHLQIRUPDWLRQ                   7KHFRXUWDOVRGHQLHG+DUULVjPRWLRQWRVXSSUHVV
                                                                       7KHFRXUWjVGHQLDORIWKDWPRWLRQUHVWHGXSRQLWVILQGLQJWKDW
  7KHODZHQIRUFHPHQWRIILFHUVWKHUHIRUHKDGQREDVLVIRUD            +DUULVSRVVHVVHGQROHJLWLPDWHH[SHFWDWLRQRISULYDF\LQWKH
JRRGIDLWKEHOLHIWKDWGUXJVZHUHRQWKHSUHPLVHVDWWKHWLPH          EDWKURRPEHFDXVHKHZDVPHUHO\DWHPSRUDU\YLVLWRUSUHVHQW
WKH\ H[HFXWHGWKHZDUUDQW:KHQRUZKHWKHUGUXJVZRXOG               LQWKHKRXVHIRUWKHSXUSRVHRISXUFKDVLQJRUWUDIILFNLQJLQ
DJDLQ EH RQ WKH SUHPLVHV ZDV LQ WKH DEVHQFH RI VRPH         FUDFNFRFDLQH
DGGLWLRQDO LQIRUPDWLRQ D PDWWHU RI SXUH FRQMHFWXUH  $
UHDVRQDEO\ ZHOOWUDLQHG RIILFHU ZRXOG QRW UHO\ RQ VXFK            2Q$XJXVW7D\ORUDQG+DUULVHQWHUHGFRQGLWLRQDO
VSHFXODWLYH JXHVVZRUN HVSHFLDOO\ ZKHQ FRQWHPSODWLQJ               JXLOW\SOHDVDGPLWWLQJWKHIDFWXDOEDVLVIRUWKHLUFRQYLFWLRQV
HQWHULQJDUHVLGHQFHWKHSODFHLQZKLFKFLWL]HQVKDYHWKHPRVW        EXWUHVHUYLQJWKHULJKWWRFKDOOHQJHWKHGLVWULFWFRXUWjVGHQLDO
ZLGHO\UHFRJQL]HGH[SHFWDWLRQRISULYDF\                              RI WKHLU PRWLRQV WR VXSSUHVV  2Q DSSHDO ERWK GHIHQGDQWV
                                                                       FRQWHQGWKDWWKHGLVWULFWFRXUWHUUHGLQILQGLQJWKDWWKH/HRQ
  5HJDUGOHVV RI ZKDW WKH GHWHFWLYH FRQVLGHUHG WR EH KLV        H[FHSWLRQDSSOLHG+DUULVIXUWKHUFRQWHQGVWKDWWKHWULDOFRXUW
LQVWLQFWLYHIHHOLQJKHFRXOGQRWKDYHLQJRRGIDLWKEHOLHYHG          HUUHG LQ ILQGLQJ WKDW KH KDG QR OHJLWLPDWH H[SHFWDWLRQ RI
WKDWSUREDEOHFDXVHH[LVWHGVLPSO\EHFDXVHKHLQIRUPHGWKH             SULYDF\ZKLOHXVLQJDWRLOHWLQWKHEDWKURRPRIWKHUHVLGHQFH
      8QLWHG6WDWHVY+DUULVHWDO        1RV        1RV               8QLWHG6WDWHVY+DUULVHWDO            

                       ,,',6&866,21                                    7KHDIILGDYLWLQVXSSRUWRIWKHZDUUDQWZDVmVRODFNLQJLQ
                                                                       LQGLFLD RI SUREDEOH FDXVH DV WR UHQGHU RIILFLDO EHOLHI LQ LWV
    $ 6WDQGDUGRI5HYLHZ                                            H[LVWHQFH REMHFWLYHO\ XQUHDVRQDEOHl  ,G DW   $IWHU
                                                                       REWDLQLQJ WKH ZDUUDQW WKH GHWHFWLYH ZDV WROG E\ KLV RZQ
  $GLVWULFWFRXUWjVUXOLQJRQDPRWLRQWRVXSSUHVVLVVXEMHFW         LQIRUPDQW WKDW WKHUH ZHUH QR GUXJV RQ WKH SUHPLVHV LQ
WR D PL[HG VWDQGDUG RI UHYLHZ  7KH IDFWXDO ILQGLQJV          TXHVWLRQDQGZDVDGYLVHGWRZDLWDIHZGD\VEHIRUHH[HFXWLQJ
VXSSRUWLQJWKHFRXUWjVGHFLVLRQPXVWEHDFFHSWHGXQOHVVWKH\           WKHZDUUDQWLQWKHKRSHWKDWGUXJVPLJKWEHEURXJKWEDFNRQWR
DUHFOHDUO\HUURQHRXV8QLWHG6WDWHVY.LQJ)G           WKHSUHPLVHVm%HFDXVHSUREDEOHFDXVHWRVHDUFKLVFRQFHUQHG
WK&LU7KHFRXUWjVILQDOGHWHUPLQDWLRQDVWRWKH        ZLWKIDFWVUHODWLQJWRDSUHVHQWO\H[LVWLQJFRQGLWLRQWKHUH
UHDVRQDEOHQHVVRIWKHVHDUFKLVKRZHYHUDTXHVWLRQRIODZ            DULVHV WKH XQLTXH SUREOHP RI ZKHWKHU WKH SUREDEOH FDXVH
WKDW PXVW EH UHYLHZHG GH QRYR  .QR[ &RXQW\ (GXFDWLRQ         ZKLFKRQFHH[LVWHGKDVJURZQVWDOHl8QLWHG6WDWHVY6SLNHV
$VVjQY.QR[&RXQW\%RDUGRI(GXFDWLRQ)G              )G   WK &LU  FLWDWLRQV DQG LQWHUQDO
WK&LU:KHQUHYLHZLQJWKHGLVWULFWFRXUWjVGHQLDORI        TXRWDWLRQVRPLWWHG,Q6JURY8QLWHG6WDWHV86
DPRWLRQWRVXSSUHVVZHFRQVLGHUWKHHYLGHQFHLQWKHOLJKW             WKH 6XSUHPH &RXUW KHOG WKDW ZKHWKHU LQIRUPDWLRQ
PRVWIDYRUDEOHWRWKHJRYHUQPHQW8QLWHG6WDWHVY*DU]D          FRQWDLQHGLQDQDIILGDYLWLVVWDOHmPXVWEHGHWHUPLQHGE\WKH
)GWK&LU                                       FLUFXPVWDQFHVRIHDFKFDVHl,GDW%DVHGXSRQWKH
                                                                       IDFWV RI WKH LQVWDQW FDVH WKH LQIRUPDWLRQ FRQWDLQHG LQ WKH
    % 7KH6HDUFK:DUUDQW                                              DIILGDYLW DQG LQ WKH GHWHFWLYHjV RUDO VWDWHPHQWV WR WKH
                                                                       PDJLVWUDWHSDUWLFXODUO\FRQFHUQLQJWKHLQIRUPDWLRQUHJDUGLQJ
   7KH)RXUWK$PHQGPHQWSURYLGHVWKDWmQR:DUUDQWVVKDOO               WZRVXFFHVVIXOFRQWUROOHGEX\VDQGWKHSUHVHQFHRIGUXJVZDV
LVVXH EXW XSRQ SUREDEOH FDXVH VXSSRUWHG E\ 2DWK RU            XQGRXEWHGO\VWDOH
DIILUPDWLRQl86&RQVW$PHQG,97KLV&RXUWKDV
GHILQHG SUREDEOH FDXVH DV mUHDVRQDEOH JURXQGV IRU EHOLHI
VXSSRUWHGE\OHVVWKDQSULPDIDFLHSURRIEXWPRUHWKDQPHUH
VXVSLFLRQl8QLWHG6WDWHVY%HQQHWW)GWK
&LU$ILQGLQJRISUREDEOHFDXVHGRHVQRWUHTXLUHDQ               
DFWXDOVKRZLQJRIFULPLQDODFWLYLW\EXWUDWKHUmUHTXLUHVµRQO\            $OWKRXJK WKH VWDOHQHVV GRFWULQH LV XVXDOO\ GLVFXVVHG LQ WKH WHPSRUDO

DSUREDELOLW\RUVXEVWDQWLDOFKDQFHRIFULPLQDODFWLYLW\jl      VHQVH WLPH LV QRW WKH RQO\ IDFWRU WKDW FDQ OHDG WR VWDOHQHVV RI LQIRUPDWLRQ
                                                                       7KLV &RXUW KDV SUHYLRXVO\ KHOG WKDW LQ GHWHUPLQLQJ ZKHWKHU LQIRUPDWLRQ
8QLWHG6WDWHVY6PLWK)GTXRWLQJ,OOLQRLVY         FRQWDLQHG LQ DQ DIILGDYLW IRU D VHDUFK ZDUUDQW LV VWDOH WKH OHQJWK RI WLPH
*DWHV86Q                                EHWZHHQ WKH HYHQWV OLVWHG LQ WKH DIILGDYLW DQG WKH DSSOLFDWLRQ IRU WKH
                                                                       ZDUUDQW ZKLOH UHOHYDQW LV QRW GLVSRVLWLYH
  ,Q WKLV FDVH WKH GLVWULFW FRXUW KHOG WKDW WKH DIILGDYLW
SURYLGHGE\'HWHFWLYH+RSHWRWKHVWDWHFRXUWMXGJHGLGQRW                ,QVWHDG RI PHDVXULQJ VWDOHQHVV VROHO\ E\ FRXQWLQJ WKH GD\V RQ D

SURYLGHDVXIILFLHQWEDVLVIRUHVWDEOLVKLQJSUREDEOHFDXVHIRU             FDOHQGDU FRXUWV PXVW DOVR FRQFHUQ WKHPVHOYHV ZLWK WKH IROORZLQJ
                                                                           YDULDEOHV WKH FKDUDFWHU RI WKH FULPH FKDQFH HQFRXQWHU LQ WKH
WKH VHDUFK  ,W UHDFKHG WKLV FRQFOXVLRQ DIWHU UHYLHZLQJ WKH       QLJKW RU UHJHQHUDWLQJ FRQVSLUDF\" WKH FULPLQDO QRPDGLF RU
GHFLVLRQ LQ 8QLWHG 6WDWHV Y $OOHQ  )G  WK &LU       HQWUHQFKHG" WKH WKLQJ WR EH VHL]HG SHULVKDEOH DQG HDVLO\
 ZKLFK FRQFHUQHG WKH LVVXDQFH RI D VHDUFK ZDUUDQW            WUDQVIHUDEOH RU RI HQGXULQJ XWLOLW\ WR LWV KROGHU" WKH SODFH WR EH
EDVHGXSRQDQDIILGDYLWTXLWHVLPLODUWRWKHRQHLQWKLVFDVH             VHDUFKHG PHUH FULPLQDO IRUXP RI FRQYHQLHQFH RU VHFXUH
7KHDIILGDYLWLQ$OOHQSUHSDUHGE\DQRIILFHUIURPWKHVDPH               RSHUDWLRQDO EDVH"    

SROLFHGHSDUWPHQWDV'HWHFWLYH+RSHVWDWHGWKDWWKHRIILFHU           6SLNHV    )G DW  FLWDWLRQ DQG LQWHUQDO TXRWDWLRQV RPLWWHG
KDGOHDUQHGIURPDFRQILGHQWLDOVRXUFHWKDWDSHUVRQUHVLGLQJ
       8QLWHG6WDWHVY+DUULVHWDO          1RV           1RV          8QLWHG6WDWHVY+DUULVHWDO      

WKHVHDUFKZRXOGQRWKDYHIRXQGSUREDEOHFDXVHWRLVVXHD                    DWDFHUWDLQKRXVHZDVLQSRVVHVVLRQRIFRFDLQH,GDW
VHDUFKZDUUDQW                                                              7KH RIILFHU QRWHG LQ WKH DIILGDYLW WKDW WKH LQIRUPDQW KDG
                                                                              SUHYLRXVO\ SURYLGHG KLP ZLWK UHOLDEOH LQIRUPDWLRQ DERXW
   $VWKHPDMRULW\SRLQWVRXWWKHFRQILGHQWLDOLQIRUPDQWLQWKH              LQGLYLGXDOV HQJDJHG LQ FULPLQDO DFWLYLWLHV DQG WKDW KH KDG
FDVHDWEDUGLGQRWWHOOWKHGHWHFWLYHWKDWm)DW%R\lQRORQJHU               NQRZQWKHLQIRUPDQWIRUILYH\HDUV,G'XULQJDKHDULQJRQ
OLYHGDWWKHSUHPLVHV%XWLWLVHTXDOO\FOHDUWKDWWKHUHZDVQR             WKHZDUUDQWWKHRIILFHUGLVFORVHGWKHQDPHRIWKHLQIRUPDQWWR
EDVLVWREHOLHYHWKDWGUXJVZRXOGEHRQWKHSUHPLVHVDWWKH                   WKHPDJLVWUDWH,GDW7KHSDQHOLQ$OOHQGHWHUPLQHGWKDW
WLPHRIWKHVXEVHTXHQWVHDUFK,QVWHDGWKHRIILFHUVKDGWR                  WKHZDUUDQWIDLOHGWRHVWDEOLVKSUREDEOHFDXVH
JXHVVWKDWGUXJVZRXOGEHSUHVHQW:HVKRXOGEHORDWKHWR
DOORZODZHQIRUFHPHQWRIILFHUVWRUHO\XSRQDZDUUDQWEDVHG                     'XULQJWKHSHQGHQF\RIWKLVDSSHDOWKLV&RXUWVLWWLQJHQ
RQRXWGDWHGLQIRUPDWLRQLQWKHIDFHRILUUHIXWDEOHHYLGHQFH                  EDQFUHYHUVHGWKHSDQHOGHFLVLRQLQ$OOHQUHOLHGXSRQE\WKH
FDOOLQJLQWRTXHVWLRQWKHHQWLUHEDVLVIRUWKHLVVXDQFHRIWKH                GLVWULFWFRXUW)GWK&LUFHUWGHQLHG6&W
ZDUUDQW                                                                      ,QWKHHQEDQFGHFLVLRQZHKHOGWKDWmZKHUHD
                                                                              NQRZQSHUVRQQDPHGWRWKHPDJLVWUDWHWRZKRVHUHOLDELOLW\
                                   ,,,                                       DQRIILFHUDWWHVWVZLWKVRPHGHWDLOVWDWHVWKDWKHKDVVHHQD
                                                                              SDUWLFXODUFULPHDQGSDUWLFXODUHYLGHQFHLQWKHUHFHQWSDVWD
   )RUWKHVDPHUHDVRQVDUWLFXODWHGDERYH,EHOLHYHWKDWWKH                 QHXWUDODQGGHWDFKHGPDJLVWUDWHPD\EHOLHYHWKDWHYLGHQFHRI
JRRGIDLWKH[FHSWLRQUHFRJQL]HGLQ8QLWHG6WDWHVY/HRQ                 DFULPHZLOOEHIRXQGl,GDW
86ZRXOGQRWVDYHWKHIUXLWVRIWKLVRWKHUZLVH
LOOHJDO VHDUFK  7KH OHJDOLW\ RI WKH VHDUFK FRXOG QRW EH               ,QWKHFDVHDWKDQG'HWHFWLYH+RSHSURYLGHGWKHVWDWHFRXUW
VXVWDLQHGE\WKHGHWHFWLYHjVJRRGIDLWKEHOLHIWKDWWKHVHDUFK                MXGJH ZLWK DQ DIILGDYLW VWDWLQJ WKDW KH KDG NQRZQ WKH
ZDVSURSHUEHFDXVHDWWKHWLPHWKHZDUUDQWZDVH[HFXWHGWKH                  FRQILGHQWLDO LQIRUPDQW IRU ILYH PRQWKV WKH LQIRUPDQW KDG
GHWHFWLYHKDGEHHQDGYLVHGDQGKDGHYHU\UHDVRQWREHOLHYH                  PDGHVHYHUDOFRQWUROOHGQDUFRWLFVEX\VIRUKLPGXULQJWKDW
WKDWWKHUHZHUHQRLOOHJDOGUXJVRQWKHSUHPLVHV                             WLPHDQGWKDWWKHLQIRUPDQWKDGSURYLGHGUHOLDEOHLQIRUPDWLRQ
                                                                              LQWKHSDVWWRKLPDQGRWKHUVLQWKHGHSDUWPHQW7KHDIILGDYLW
                                                                              IXUWKHUUHFLWHGWKDWWKHLQIRUPDQWKDGSURYLGHGLQIRUPDWLRQ
                                                                              WKDWOHGWRWKHSURVHFXWLRQDQGFRQYLFWLRQRILQGLYLGXDOVIRU
     
      7KH PDMRULW\ DOVR FLWHV D GLVWULFW FRXUW FDVH IURP DQRWKHU FLUFXLW
                                                                              YLRODWLRQRIQDUFRWLFVODZV$FFRUGLQJO\WKHDIILGDYLWLQWKLV
8QLWHG 6WDWHV Y 6XJDU  ) 6XSS  6'1<  WR VXSSRUW LWV     FDVHSURYLGHGPRUHGHWDLOHYLGHQFLQJSUREDEOHFDXVHWKDQWKH
KROGLQJ 1HHGOHVV WR VD\ ZH DUH QRW ERXQG E\ WKH GHFLVLRQ RI WKDW FRXUW     $OOHQ DIILGDYLW ZKLFK UHFLWHG WKH LQIRUPDQWjV YDOXH LQ
0RUHRYHU WKDW FDVH LV HDVLO\ GLVWLQJXLVKDEOH ,Q 6XJDU WKH GLVWULFW FRXUW   SURVHFXWLQJ LQGLYLGXDOV FKDUJHG LQ mFULPLQDO DFWLYLW\l DQG
KHOG WKDW WKH DIILDQWjV IDLOXUH WR LQIRUP WKH LVVXLQJ PDJLVWUDWH RI DQ
                                                                              ZKLFK GLG QRW UHFLWH WKDW WKH LQIRUPDQW KDG PDGH UHFHQW
XQVXFFHVVIXO DWWHPSW WR REWDLQ GUXJV IURP WKH VXVSHFWV GLG QRW GHWUDFW
IURP WKH DOOHJDWLRQV RI FULPLQDO DFWLYLW\ %XW SUREDEOH FDXVH ZDV QRW
                                                                              XQGHUFRYHUGUXJSXUFKDVHV
YLWLDWHG E\ WKH RPLVVLRQ LQ WKDW FDVH EHFDXVH WKH RWKHU LQIRUPDWLRQ
DYDLODEOH WR WKH PDJLVWUDWH HVWDEOLVKHG D SUDFWLFH RI VRPH \HDUV               :KHQKHDSSHDUHGEHIRUHWKHVWDWHFRXUWMXGJH'HWHFWLYH
FRQWLQXLQJ LQ QDWXUH RI YLRODWLQJ ODZV UHJXODWLQJ WKH GLVWULEXWLRQ RI        +RSHUHYHDOHGWKHFRQILGHQWLDOLQIRUPDQWjVLGHQWLW\DQGRUDOO\
FRQWUROOHG VXEVWDQFHV RXWVLGH WKH VFRSH RI PHGLFDO SUDFWLFH ,G DW      DGYLVHGWKHMXGJHWKDWWKHLQIRUPDQWKDGPDGHWZRFRQWUROOHG
+RZHYHU LQ WKH FDVH DW EDU ZH DUH QRW FRQIURQWHG ZLWK DOOHJDWLRQV WKDW
UHJXODUO\ UHFXUULQJ FULPLQDO DFWLYLW\ KDG EHHQ RQJRLQJ IRU VHYHUDO \HDUV
QRU DUH ZH IDFHG ZLWK D VLWXDWLRQ ZKHUH WKH FRQWUROOHG VXEVWDQFHV ZHUH
OHJDOO\ SRVVHVVHG LQ D SODFH RI EXVLQHVV DQG H[SHFWHG WR EH RQ WKH
SUHPLVHV DW DQ\ JLYHQ WLPH
        8QLWHG6WDWHVY+DUULVHWDO      1RV         1RV          8QLWHG6WDWHVY+DUULVHWDO      

SXUFKDVHVRIFUDFNFRFDLQHIURPWKHUHVLGHQFH8QGHUWKH                )LUVWWKHUHZDVDKLJKGHJUHHRILQGHSHQGHQWFRUURERUDWLRQ
VWDQGDUG DUWLFXODWHG LQ WKH HQ EDQF $OOHQ GHFLVLRQ WKH         LQ&KDUOHVDVHYLGHQFHGE\DQXQGHUFRYHUEX\PDGHDWWKH
DIILGDYLW LQ WKLV FDVH FRXSOHG ZLWK WKH GHWHFWLYHjV VZRUQ       GHIHQGDQWjVUHVLGHQFHE\DNQRZQLQIRUPDQWDFFRPSDQLHGE\
WHVWLPRQ\SURYLGHGDVXIILFLHQWEDVLVIRUWKHVWDWHFRXUWMXGJH         DQXQGHUFRYHUODZHQIRUFHPHQWRIILFHU,GDW'XULQJ
WRILQGEDVHGXSRQWKHWRWDOLW\RIWKHFLUFXPVWDQFHVWKDWWKHUH       WKLVXQGHUFRYHUEX\WKHGHIHQGDQWVKRZHGWKHRIILFHUDQGWKH
ZDV SUREDEOH FDXVH IRU WKH VHDUFK  $FFRUGLQJO\ WKH            LQIRUPDQW D FHUWDLQ DPRXQW RI FRFDLQH EDVH ZKLFK WKH\
GHIHQGDQWVj PRWLRQV WR VXSSUHVV ZHUH SURSHUO\ GHQLHG             QHJRWLDWHGWRSXUFKDVH%XWWKHRIILFHUODWHUUHDOL]HGWKDWWKH
8QLWHG6WDWHVY*DU]D)GWK&LU              GHIHQGDQWKDGRQO\JLYHQWKHPKDOIRIWKHDPRXQWRIGUXJV
m$GLVWULFWFRXUWjVµGHQLDORIDPRWLRQWRVXSSUHVVZLOOEH            WKDW WKH\ ZHUH VKRZQ  ,Q DGGLWLRQ WKH LQIRUPDQW KDG
DIILUPHGRQDSSHDOLISURSHUIRUDQ\UHDVRQ>@jHYHQRQHQRW            LQGLFDWHG WKDW WKH GHIHQGDQW ZDV D EXON FRFDLQH GHDOHU
UHOLHGXSRQE\WKHFRXUWlTXRWLQJ8QLWHG6WDWHVY%DUUHWW          WKHUHE\UDLVLQJWKHLQIHUHQFHWKDWWKHUHZHUHVWLOOVRPHGUXJV
)GWK&LUVXSHUVHGHGE\VWDWXWH            RQ WKH SUHPLVHV  :KLOH PDNLQJ WKH XQGHUFRYHU EX\ WKH
                                                                        RIILFHUVDZWKUHHILUHDUPVRQWKHSUHPLVHVDVZHOODVWKHVDPH
   0RUHRYHU HYHQ LI WKHUH ZDV QRW SUREDEOH FDXVH IRU WKH      FXVWRPL]HG %XLFN VWDWLRQ ZDJRQ WKDW WKH LQIRUPDQW KDG
LVVXDQFHRIWKHZDUUDQWWKHIUXLWVRIWKHVHDUFKZRXOGKDYH            SUHYLRXVO\LQGLFDWHGWKHVXVSHFWGURYH2YHUWKHQH[WIHZ
EHHQDGPLVVLEOHXQGHU8QLWHG6WDWHVY/HRQ86               ZHHNV WKH RIILFHU PDGH VHYHUDO XQVXFFHVVIXO DWWHPSWV WR
,Q/HRQWKH8QLWHG6WDWHV6XSUHPH&RXUWKHOGWKDW             SXUFKDVH GUXJV IURP WKH GHIHQGDQW  +RZHYHU WKH &RXUW
WKH)RXUWK$PHQGPHQWH[FOXVLRQDU\UXOHVKRXOGQRWEHXVHG               IRXQG WKDW WKHVH DWWHPSWV ZHUH XQVXFFHVVIXO EHFDXVH WKH
WR EDU WKH XVH RI HYLGHQFH REWDLQHG E\ RIILFHUV DFWLQJ LQ     RIILFHUZDVFRQFHUQHGIRUKLVVDIHW\0RUHRYHUWKHRIILFHU
UHDVRQDEOHUHOLDQFHRQDVHDUFKZDUUDQWLVVXHGE\DQHXWUDO             FODLPHGWKDWGXULQJRQHRIWKRVHXQVXFFHVVIXODWWHPSWVWKH
DQGGHWDFKHGPDJLVWUDWHWKDWLVODWHUIRXQGWREHLQYDOLG,G         GHIHQGDQWDFWXDOO\DGPLWWHGWRSRVVHVVLQJFRFDLQH
7KH 6XSUHPH &RXUW SURYLGHG WKH IROORZLQJ JXLGHOLQH IRU
GHWHUPLQLQJ ZKHWKHU HYLGHQFH VHL]HG WKURXJK DQ LQYDOLG                'XHWRWKLVDQGRWKHUFRUURERUDWLYHHYLGHQFHWKH&RXUWKHOG
ZDUUDQWVKRXOGEHH[FOXGHG                                             WKDW m>D@OWKRXJK XQGHU VRPH FLUFXPVWDQFHV D PDWHULDO
                                                                        RPLVVLRQPD\LQYDOLGDWHDQRWKHUZLVHYDOLGVHDUFKZDUUDQW
    ,Q WKH DEVHQFH RI DQ DOOHJDWLRQ WKDW WKH PDJLVWUDWH         >WKHRIILFHUjVRPLVVLRQRIWKHXQVXFFHVVIXOFRQWUROOHGEX\
    DEDQGRQHGKLVGHWDFKHGDQGQHXWUDOUROHVXSSUHVVLRQLV             DWWHPSWV@ZDVQRWPDWHULDOLQWKLVFDVHl,GDWFLWLQJ
    DSSURSULDWHRQO\LIWKHRIILFHUVZHUHGLVKRQHVWRUUHFNOHVV         8QLWHG 6WDWHV Y %RQGV  )G   WK &LU 
    LQSUHSDULQJWKHLUDIILGDYLWRUFRXOGQRWKDYHKDUERUHGDQ          +RZHYHULQWKHFDVHDWEDUWKHGHWHFWLYHjVIDLOXUHWRLQIRUP
    REMHFWLYHO\UHDVRQDEOHEHOLHILQWKHH[LVWHQFHRISUREDEOH          WKHPDJLVWUDWHRIWKHFKDQJHLQFLUFXPVWDQFHVZDVPDWHULDOWR
    FDXVH                                                              WKH TXHVWLRQ RI ZKHWKHU WKHUH ZRXOG EH DQ\ GUXJV RQ WKH
                                                                        SUHPLVHVDWDOO7KHUHZDVYLUWXDOO\QRFRUURERUDWLRQDWWKH
,GDW                                                           WLPH WKH ZDUUDQW ZDV LVVXHG PXFK OHVV DQ\ DGGLWLRQDO
                                                                        FRUURERUDWLRQRQFHWKHGHWHFWLYHOHDUQHGWKDWGUXJVPLJKWQRW
  ,QWKLVFDVHWKHUHLVQRHYLGHQFHWKDWWKHVWDWHFRXUWMXGJH         EHIRXQGRQWKHSUHPLVHV$EVHQWWKHW\SHRIIDFWVDWSOD\LQ
DEDQGRQHGKLVGHWDFKHGRUQHXWUDOUROHRUWKDW'HWHFWLYH+RSH           &KDUOHV WKHUH ZDV QR UHDVRQ WR EHOLHYH WKDW HYLGHQFH RI
                                                                        ZURQJGRLQJ ZRXOG EH IRXQG RQ WKH SUHPLVHV GXULQJ D
                                                                        VXEVHTXHQWVHDUFK,WKHUHIRUHEHOLHYHWKDWDZHOOLQIRUPHG
                                                                       PDJLVWUDWHJLYHQDOORIWKHIDFWVNQRZQLPPHGLDWHO\SULRUWR
     'HWHFWLYH +RSH WHVWLILHG DW WKH VXSSUHVVLRQ KHDULQJ WKDW ZKHQ KH
DSSHDUHG EHIRUH WKH VWDWH MXGJH RQ 2FWREHU   WR DSSO\ IRU WKH
VHDUFK ZDUUDQW WKH VWDWH MXGJH SXW +RSH XQGHU RDWK
       8QLWHG6WDWHVY+DUULVHWDO            1RV           1RV           8QLWHG6WDWHVY+DUULVHWDO        

NQRZQWRWKHGHWHFWLYHSULRUWRWKHVHDUFK7KHGHWHFWLYHZDV                 ZDVGLVKRQHVWRUUHFNOHVVLQSUHSDULQJWKHDIILGDYLW1RULV
QRWLILHGE\KLVRZQFRQILGHQWLDOLQIRUPDQWWKDWQRGUXJVZHUH                   WKHUHUHDVRQWREHOLHYHWKDWDUHDVRQDEO\ZHOOWUDLQHGSROLFH
SUHVHQWDWWKHWLPHRIWKHWKLUGDWWHPSWHGEX\,QDGGLWLRQWKH               RIILFHUZRXOGQRWKDYHEHOLHYHGWKDWWKHUHZDVSUREDEOHFDXVH
FRQILGHQWLDOLQIRUPDQWWROGWKHGHWHFWLYHWKDWWKHVXVSHFWm)DW                WR VHDUFK WKH KRPH  'HWHFWLYH +RSH UHFHLYHG LQIRUPDWLRQ
%R\l ZRXOG EH OHDYLQJ LQ D IHZ PLQXWHV DQG IXUWKHU WKDW              DERXW GUXJUHODWHG DFWLYLWLHV DW  3RSODU 6WUHHW IURP D
GUXJVPLJKWQRWEHIRXQGRQWKHSUHPLVHVRYHUWKHZHHNHQG                      FRQILGHQWLDOLQIRUPDQWKHKDGNQRZQIRUILYHPRQWKVDQGZKR
7KHLQIRUPDQWSURYLGHGQRLQGLFDWLRQDVWRZKHQm)DW%R\l                       KDG SURYLGHG UHOLDEOH LQIRUPDWLRQ LQ WKH SDVW  8QOLNH WKH
ZRXOG UHWXUQ WR WKH SUHPLVHV  7KHUH ZDV WKHUHIRUH QR                  RIILFHULQ$OOHQ'HWHFWLYH+RSHFRUURERUDWHGWKHLQIRUPDQWjV
HYLGHQFHWKDWGUXJVZRXOGEHEURXJKWEDFNRQWRWKHSUHPLVHV                    WLSSULRUWRVHHNLQJDZDUUDQWE\DUUDQJLQJIRUWZRFRQWUROOHG
)DFHGZLWKDQXQVXFFHVVIXOEX\LQIRUPDWLRQWKDWQRGUXJV                       SXUFKDVHVIURPWKHDGGUHVV'HWHFWLYH+RSHLQFOXGHGPRVWRI
ZHUH SUHVHQWDQGWKHIDFWWKDWWKHVXVSHFWZDVOHDYLQJWKH                    WKLVLQIRUPDWLRQLQKLVDIILGDYLWDQGSURYLGHGDGGLWLRQDOVZRUQ
SUHPLVHVWKHGHWHFWLYHFDOOHGRIIWKHSODQQHGVHDUFK7KH                     WHVWLPRQ\ DW WKH KHDULQJ RQ WKH ZDUUDQW  8QGHU WKHVH
GHWHFWLYH DQG WKH RWKHU RIILFHUV ZHUH WKHUHIRUH OHIW WR                 FLUFXPVWDQFHVDUHDVRQDEOHSROLFHRIILFHUHYHQRQHZKRZDV
VSHFXODWHDVWR ZKHWKHUDQGZKHQGUXJVZRXOGDFWXDOO\EH                       RSHUDWLQJXQGHUWKHVLQFHYDFDWHG$OOHQGHFLVLRQZRXOGKDYH
EURXJKW EDFN RQWR WKH SUHPLVHV  $W WKLV FULWLFDO MXQFWXUH            FRQFOXGHG WKDW WKHUH ZDV SUREDEOH FDXVH WR VHDUFK WKH
ZKDWHYHU SUREDEOH FDXVH DUJXDEO\ H[LVWHG KDG VLPSO\                       UHVLGHQFH
HYLVFHUDWHG  <HW IRXU GD\V ODWHU WKH RIILFHUV H[HFXWHG WKH
WKHQRXWGDWHG ZDUUDQW ZLWKRXW DWWHPSWLQJ WR UHHVWDEOLVK                       2Q DSSHDO 'HIHQGDQW 7D\ORU DUJXHV WKDW D UHDVRQDEOH
SUREDEOHFDXVHE\SHUVRQDOO\VXUYHLOOLQJWKHUHVLGHQFHKDYLQJ                  RIILFHUZRXOGQRORQJHUKDYHEHOLHYHGWKDWWKHUHZDVSUREDEOH
WKHLQIRUPDQWZDWFKWKHUHVLGHQFHRUWDNLQJRWKHUPHDVXUHV                     FDXVHIRUWKHVHDUFKEHFDXVHWKHFRQILGHQWLDOLQIRUPDQWIDLOHG
WRGHWHUPLQHZKHWKHUWKHUHZDVVRPHRQJRLQJRUUHFXUULQJ                        WRSXUFKDVHGUXJVDWWKHUHVLGHQFHRQWKHGD\WKHZDUUDQWZDV
FULPLQDODFWLYLW\                                                              LVVXHG DQG RIILFHUV ZDLWHG IRXU GD\V EHIRUH H[HFXWLQJ WKH
                                                                                ZDUUDQW7KLVDUJXPHQWZDVQRWUDLVHGEHORZDQGLVWKHUHIRUH
   7KHPDMRULW\FRQWHQGVWKDWWKHIDLOHGFRQWUROOHGEX\DWWHPSW                 ZDLYHG6HHHJs&:\FRII	$VVRFLDWHV,QFY6WDQGDUG
KDGQREHDULQJRQWKHH[LVWHQFHRISUREDEOHFDXVHDWWKHWLPH                   )LUH,QV&R)GWK&LUm,VVXHV
WKH ZDUUDQW ZDV H[HFXWHG  ,Q VXSSRUW RI LWV KROGLQJ WKH             QRWSUHVHQWHGWRWKHGLVWULFWFRXUWEXWUDLVHGIRUWKHILUVWWLPH
PDMRULW\ FLWHV WKLV &RXUWjV GHFLVLRQ LQ 8QLWHG 6WDWHV Y                RQDSSHDODUHQRWSURSHUO\EHIRUHWKHFRXUWl,QDQ\HYHQW
&KDUOHV  )G  WK &LU  LQ ZKLFK ZH                     WKH LQDELOLW\ RI WKH FRQILGHQWLDO LQIRUPDQW WR PDNH D WKLUG
FRQVLGHUHGZKHWKHUDQRIILFHUPDGHGHOLEHUDWHO\RUUHFNOHVVO\                   FRQWUROOHGSXUFKDVHRIFUDFNFRFDLQHDQGWKHIRXUGD\GHOD\
IDOVHVWDWHPHQWVE\RPLWWLQJFHUWDLQIDFWVIURPDQDIILGDYLW                   LQWKHH[HFXWLRQRIWKHZDUUDQWDUHRIOLWWOHFRQVHTXHQFHJLYHQ
:HHYHQWXDOO\XSKHOGWKHVHDUFKZDUUDQWGHFOLQLQJWRHYHQ                      WKH SULRU FRQWUROOHG GUXJ SXUFKDVHV DQG WKH FRQWLQXLQJ
FRQVLGHUZKHWKHUDEVHQWWKRVHHUURUVWKHZDUUDQWZRXOGKDYH                     SUHVHQFH RI m)DW %R\l DW WKH UHVLGHQFH  6HH HJ 8QLWHG
VWLOOSURYLGHGSUREDEOHFDXVH%XWWKDWFDVHLVGLVWLQJXLVKDEOH                6WDWHVY:RUG)GWK&LUSUREDEOH
RQVHYHUDOJURXQGVIRUZHDUHSUHVHQWHGKHUHZLWKDFDVHWKDW                  FDXVHIRUVHDUFKH[LVWHGGHVSLWHSDVVDJHRIIRXUPRQWKVVLQFH
LVYLUWXDOO\WKHIDFWXDODQWRQ\PRI&KDUOHV                                    ODVWGRFXPHQWHGGUXJVDOHDQGWZHQW\QLQHGD\JDSEHWZHHQ
                                                                                ODVWVXVSLFLRXVHYHQWUHFRXQWHGLQDIILGDYLWDQGH[HFXWLRQRI
                                                                                VHDUFKZDUUDQW8QLWHG6WDWHVY6SLNHV)G
                                                                                WK&LUFHUWGHQLHG86WULDOFRXUW
                                                                               SURSHUO\GHQLHGPRWLRQWRVXSSUHVVHYHQWKRXJKVRPHRIWKH
      $OWKRXJK WKH PDMRULW\ FODLPV WKDW WKLV LVVXH ZDV ZDLYHG , GR QRW
EHOLHYH WKLV WR EH WKH FDVH ,QVWHDG WKH LVVXH DGGUHVVHG LQ WKLV VHFWLRQ ZDV   HYHQWVLQFOXGHGLQWKHDIILGDYLWRFFXUUHGIRXU\HDUVDJRDQG
QHFHVVDULO\ LQYROYHG LQ WKH FKDOOHQJH WR WKH LVVXDQFH RI WKH ZDUUDQW
    8QLWHG6WDWHVY+DUULVHWDO         1RV         1RV          8QLWHG6WDWHVY+DUULVHWDO      

RIILFHUGLGQRWDSSO\IRUZDUUDQWXQWLOWHQGD\VDIWHUGLVFRYHU\        SUHPLVHV:KLOHDWOHDVWWZRFRQWUROOHGEX\VDWWKHUHVLGHQFH
RIGUXJWUDIILFNLQJSDUDSKHUQDOLDLQWUDVKRIUHVLGHQFH8QLWHG        UHVXOWHG LQ WKH SXUFKDVH RI FRQWUROOHG VXEVWDQFHV WKHVH
6WDWHV Y )LVKHU  )G   WK &LU           WUDQVDFWLRQV WRRN SODFH DSSUR[LPDWHO\ WZR PRQWKV DSDUW
m>(@YLGHQFHRIDFULPLQDOEXVLQHVVRSHUDWLQJDWDSDUWLFXODU           7KHUHLVQRLQGLFDWLRQWKDWWKHGHWHFWLYHjVWHVWLPRQ\EHIRUH
ORFDWLRQLQWKHQRWVRGLVWDQWSDVWPD\UHDVRQDEO\JLYHULVHWR         WKHPDJLVWUDWHGLVFXVVHGWKHXQH[SODLQHGWLPHJDSEHWZHHQ
D EHOLHI WKDW D VHDUFK RI WKH ORFDWLRQ ZRXOG \LHOG IXUWKHU    WKHVHWZRSXUFKDVHV,QVWHDGRILQGLFDWLQJRQJRLQJGUXJVDOHV
HYLGHQFHl                                                          WKHVHWZRWUDQVDFWLRQVVHHPWRLQGLFDWHVSRUDGLFGUXJDFWLYLW\
                                                                        WKDW FRXOG MXVW DV HDVLO\ KDYH WDNHQ SODFH RXWVLGH RI WKH
   7KLV FDVH LV QR GLIIHUHQW WKDQ LW ZRXOG KDYH EHHQ KDG      UHVLGHQFHHVSHFLDOO\DEVHQWVRPHDOOHJDWLRQRUHYLGHQFHWKDW
2IILFHU+RSHVHQWWKHLQIRUPDQWLQWRWKHUHVLGHQFHDW              GUXJVZHUHEHLQJKHOGDWWKHSUHPLVHVIRUVDOH(YHQPRUH
3RSODU 6WUHHW RQ WKUHH RFFDVLRQV SULRU WR DSSO\LQJ IRU WKH     WURXEOLQJ LV WKH GHWHFWLYHjV VXEVHTXHQW WHVWLPRQ\ WKDW WKH
VHDUFK ZDUUDQW DQG WKH LQIRUPDQW KDG EHHQ VXFFHVVIXO LQ         FRQWUROOHGEX\VZHUHQRWPRQLWRUHGE\WKHSROLFHLQDQ\ZD\
SXUFKDVLQJ GUXJV RQ RQO\ WZR RI WKH RFFDVLRQV  3UREDEOH       7KH GHWHFWLYH DGPLWWHG WKDW KH KDG QRW LQIRUPHG WKH
FDXVHLVQRWGHIHDWHGVLPSO\EHFDXVHDQLQIRUPDQWZDVXQDEOH            PDJLVWUDWH RI WKLV IDFW HLWKHU LQ WKH DIILGDYLW RU WKURXJK
WRSXUFKDVHGUXJVRQRQHRFFDVLRQSULRUWRWKHH[HFXWLRQRI             WHVWLPRQ\,QIDFWWKHGHWHFWLYHHYHQDGPLWWHGWKDWKHZDV
WKHVHDUFKZDUUDQW6HHHJ8QLWHG6WDWHVY&KDUOHV           QRW DEOH WR YHULI\ ZKHWKHU WKH FRQILGHQWLDO LQIRUPDQW KDG
)GWK&LURPLVVLRQIURPVHDUFKZDUUDQW             DFWXDOO\HQWHUHGWKHSUHPLVHVIRUZKLFK WKHVHDUFKZDUUDQW
DIILGDYLW WKDW ODZ HQIRUFHPHQW RIILFHU PDGH VHYHUDO               ZDV ODWHU REWDLQHG  7KHVH IDFWV IDOO ZRHIXOO\ VKRUW RI
XQVXFFHVVIXODWWHPSWVWRSXUFKDVHGUXJVIURPVXEMHFWGRHVQRW           HVWDEOLVKLQJDQ\OHJLWLPDWHFRUURERUDWLYHHIIRUW
PDNH WKH DIILGDYLW IDOVH RU GHIHDW SUREDEOH FDXVH 8QLWHG
6WDWHVY6XJDU)6XSS6'1<                $IILGDYLWV PXVW EH MXGJHG EDVHG RQ WKH WRWDOLW\ RI mWKH
SUREDEOH FDXVHQRWYLWLDWHGE\IDLOXUHRIRIILFHUWRLQIRUP           FLUFXPVWDQFHVl DQG DQVZHU mWKH FRPPRQVHQVH SUDFWLFDO
PDJLVWUDWH WKDW XQGHUFRYHU DJHQW KDG EHHQ XQVXFFHVVIXO LQ        TXHVWLRQ>RI@ZKHWKHUWKHUHLVµSUREDEOHFDXVHjWREHOLHYHWKDW
DWWHPSWWRREWDLQGUXJIURPGHIHQGDQWV,WLVQRWDVLIWKH           FRQWUDEDQG RU HYLGHQFH LV ORFDWHG LQ D SDUWLFXODU SODFHl
LQIRUPDQWUHSRUWHGWR2IILFHU+RSHWKDWm)DW%R\lQRORQJHU             ,OOLQRLVY*DWHV86m$VSUHVHQWHG
OLYHG DW  3RSODU 6WUHHW RU WKDW WKH GUXJ RSHUDWLRQ KDG   WKH FRPELQHG ERLOHUSODWH ODQJXDJH DQG >RUDO WHVWLPRQ\@
FHDVHG7KHLQIRUPDQWVLPSO\WROG2IILFHU+RSHWKDWGUXJV              SURYLGHIHZLIDQ\SDUWLFXODUL]HGIDFWVRIDQLQFULPLQDWLQJ
PLJKWQRWEHIRXQGRYHUWKHZHHNHQG                                   QDWXUHDQGOLWWOHPRUHWKDQFRQFOXVRU\VWDWHPHQWVRIDIILDQWjV
                                                                        EHOLHIWKDWSUREDEOHFDXVHH[LVWHGUHJDUGLQJFULPLQDODFWLYLW\l
  )RU WKH DERYH UHDVRQV ZH KROG WKDW WKHUH ZDV SUREDEOH       :HDYHU)GDW,WKHUHIRUHEHOLHYHDSURSHUDQDO\VLV
FDXVHIRUWKHLVVXDQFHRIWKHVHDUFKZDUUDQWDQGIXUWKHUWKDW         ZRXOGQRWOHDGWRDILQGLQJRISUREDEOHFDXVH
WKHGLVWULFWFRXUWGLGQRWHUULQILQGLQJWKDWWKH/HRQH[FHSWLRQ
ZRXOG DSSO\ HYHQ LQ WKH DEVHQFH RI D ZDUUDQW IRXQGHG RQ                                       ,,
SUREDEOHFDXVH
                                                                          $OWKRXJK WKH DIILGDYLW DQG VXSSRUWLQJ WHVWLPRQ\ IDLO WR
  & ([SHFWDWLRQRI3ULYDF\LQ%DWKURRP                                 HVWDEOLVKSUREDEOHFDXVHHYHQXQGHU$OOHQ,EHOLHYHWKDWDQ\
                                                                        SUREDEOHFDXVHWKDWPD\KDYHH[LVWHGDWWKHWLPHWKHZDUUDQW
  'HIHQGDQW+DUULVKDVFRQFHGHGWKDWKHZDVPHUHO\DFDVXDO             ZDVLVVXHGZDVVXEVHTXHQWO\YLWLDWHGE\WKHWKLUGFRQWUROOHG
QRQRYHUQLJKWYLVLWRUDW3RSODU6WUHHWZKHQWKHVHDUFK           EX\WKDW\LHOGHGQRFRQWUDEDQGDQGWKHDGGLWLRQDOHYLGHQFH
ZDVH[HFXWHG$FFRUGLQJO\KLVRQO\EDVLVIRUVXSSUHVVLQJWKH
IUXLWV RI WKH VHDUFK LV KLV FODLP WKDW KH KDG D OHJLWLPDWH
    8QLWHG6WDWHVY+DUULVHWDO           1RV          1RV            8QLWHG6WDWHVY+DUULVHWDO        

LQIRUPDQWLQWKDWFDVHSURYLGHGDWLSEDVHGRQKHDUVD\DQG                 H[SHFWDWLRQRISULYDF\ZKLOHXVLQJWKHEDWKURRPGXULQJWKH
ZDV VHQW LQWR WKH GHIHQGDQWjV KRPH ZLWK  WR PDNH D           VHDUFKDFRQWHQWLRQUHMHFWHGE\WKHGLVWULFWFRXUW
FRQWUROOHGEX\7KHLQIRUPDQWPDGHDVXFFHVVIXOEX\RID
KDOIRXQFHRIPDULMXDQDIURPWKHGHIHQGDQW7KHLQIRUPDQW                    $ SHUVRQ ZKR FODLPV WKDW KLV )RXUWK $PHQGPHQW ULJKWV
WKHQWROGWKHSROLFHZLWKRXWIRXQGDWLRQWKDWKHEHOLHYHGWKH             ZHUHYLRODWHGE\DQXQUHDVRQDEOHVHDUFKPXVWHVWDEOLVKWKDW
GHIHQGDQWZDVJURZLQJPDULMXDQDDWKLVKRPH7KHRIILFHUV                 KH RU VKH KDG D VXEMHFWLYH H[SHFWDWLRQ RI SULYDF\ LQ WKH
SUHSDUHGDQDIILGDYLWLQGLFDWLQJWKDWWKHLQIRUPDQWZDVNQRZQ              SUHPLVHVVHDUFKHGDQGWKDWVRFLHW\ZRXOGUHFRJQL]HKLVRUKHU
WR EH UHOLDEOH EHFDXVH KH SURYLGHG LQIRUPDWLRQ DERXW GUXJ          H[SHFWDWLRQDVOHJLWLPDWH0LQQHVRWDY&DUWHU6&W
DFWLYLW\ LQ WKH SDVW DQG KDG REVHUYHG PDULMXDQD LQ WKH            ,QGHWHUPLQLQJZKHWKHUDQLQGLYLGXDOKDVD
GHIHQGDQWjV KRPH  7KH LQIRUPDQW ZDV XQQDPHG LQ WKH                OHJLWLPDWHH[SHFWDWLRQRISULYDF\ZHORRNWRWKHQDWXUHRIWKH
DIILGDYLW EXW KLV LGHQWLW\ ZDV UHYHDOHG WR WKH PDJLVWUDWH         LQGLYLGXDOjV WLHV WR WKH SURSHUW\  ,G DW   $OWKRXJK DQ
WKURXJKVZRUQWHVWLPRQ\,QILQGLQJWKDWQRSUREDEOHFDXVH                RYHUQLJKW JXHVW PD\ SRVVHVV D OHJLWLPDWH H[SHFWDWLRQ RI
H[LVWHGWRLVVXHWKHZDUUDQWWKH&RXUWQRWHGWKDWWKHUHZDVQR            SULYDF\LQDUHVLGHQFHEHLQJVHDUFKHGDWHPSRUDU\YLVLWRUWR
UHDVRQWREHOLHYHWKDWDQ\RIWKHGUXJVSUHYLRXVO\REVHUYHGE\             D UHVLGHQFH PD\ FODLP QR VXFK SURWHFWLRQ  ,G  7KLV LV
WKH LQIRUPDQW ZRXOG EH RQ WKH SUHPLVHV DW WKH WLPH RI D         SDUWLFXODUO\ WUXH ZKHUH DV KHUH WKH SHUVRQ VHHNLQJ WKH
VHDUFK&UXFLDOWRWKLVSRLQWZDVWKHIDFWWKDWWKHDIILGDYLW             SURWHFWLRQVRIWKH)RXUWK$PHQGPHQWZDVRQWKHSUHPLVHVIRU
IDLOHGWRPHQWLRQWKHTXDQWLW\RIGUXJVREVHUYHGRUWKDWWKH               WKH VROH SXUSRVH RI HQJDJLQJ LQ GUXJUHODWHG EXVLQHVV
GUXJVZHUHSUHVHQWIRUSXUSRVHVRIGLVWULEXWLRQ,GDW             WUDQVDFWLRQV,G
,Q DGGLWLRQ WKHUH ZDV QR PHQWLRQ LQ WKH DIILGDYLW RI WKH
FRQWUROOHGEX\PDNLQJLPSRVVLEOHDQLQIHUHQFHRIRQJRLQJRU                  +DUULV DWWHPSWV WR FLUFXPYHQW WKH GLIILFXOWLHV RI
FRQWLQXLQJGUXJVDOHV                                                     HVWDEOLVKLQJWKDWKHKDGDOHJLWLPDWHH[SHFWDWLRQRISULYDF\LQ
                                                                           WKH UHVLGHQFH E\ IRFXVLQJ RQ WKH IDFW WKDW KH ZDV XVLQJ D
   6LPLODUO\LQWKHFDVHDWEDUWKHLVVXLQJPDJLVWUDWHKDGQR             EDWKURRP DW WKH WLPH RI WKH UDLG  &LWLQJ 8QLWHG 6WDWHV Y
UHDVRQWRSUHVXPHWKDWHYLGHQFHRIZURQJGRLQJZRXOGEHRQ                  'HODQH\)GWK&LUDQG.URHKOHUY6FRWW
WKHSUHPLVHVDWWKHWLPHRIWKHH[HFXWLRQRIDVHDUFKZDUUDQW             )6XSS('3D+DUULVFRQWHQGVWKDWKH
7KHLQIRUPDQWPHUHO\VWDWHGWKDWKHKDGVHHQGUXJVLQFOXGLQJ              SRVVHVVHGDQREMHFWLYHO\UHDVRQDEOHH[SHFWDWLRQRISULYDF\
FUDFNFRFDLQHRQWKHSUHPLVHVZLWKLQWKHSDVWKRXUV7KH              EHFDXVHKHZDVXVLQJWKHEDWKURRPRIWKHUHVLGHQFHDQGWKDW
DIILGDYLWFRQWDLQHGQRPHQWLRQSUHFLVHRURWKHUZLVHRIWKH               DVDUHVXOWSROLFHVKRXOGKDYHNQRFNHGRQWKH GRRURIWKH
TXDQWLW\RIGUXJVREVHUYHG,QIDFWWKHDIILGDYLWGLGQRWHYHQ          EDWKURRPEHIRUHHQWHULQJ7KH FDVHVFLWHGE\+DUULVRIIHU
DOOHJHWKDWWKHUHZDVDTXDQWLW\RIGUXJVVWLOORQWKHSUHPLVHV            OLWWOHVXSSRUWIRUKLVSRVLWLRQ
RU WKDW WKH\ ZHUH EHLQJ KHOG WKHUH IRU VDOH  $V IDU DV WKH
PDJLVWUDWH NQHZ WKH GUXJV REVHUYHG ZHUH WKH VDPH GUXJV               ,Q'HODQH\WKH(LJKWK&LUFXLW&RXUWRI$SSHDOVUHFRJQL]HG
SXUFKDVHG E\ WKH LQIRUPDQW  ,Q DGGLWLRQ WKH FRQILGHQWLDO         WKDWDQRFFXSDQWRIDVWDOOLQDSXEOLFUHVWURRPPD\KDYHD
LQIRUPDQWIDLOHGWRVWDWHZK\KHEHOLHYHGWKLVVXVSHFWUHVLGHG             UHDVRQDEOHH[SHFWDWLRQRISULYDF\DJDLQVWFODQGHVWLQHSROLFH
DWRUZDVLQFRQWURORIWKHSUHPLVHVLQTXHVWLRQ                         VXUYHLOODQFH EXW UHMHFWHG WKH SULYDF\ FODLP RI D GHIHQGDQW
                                                                           ZKRSROLFHREVHUYHGLQDUHVWURRPVWDOOGXULQJWKHFRXUVHRI
  (YHQZKHQVXSSOHPHQWHGE\WKHGHWHFWLYHjVRUDOWHVWLPRQ\                 mD ODZIXO LQYHVWLJDWLYH VWRSl   )G DW   .URHKOHU
EHIRUHWKHLVVXLQJPDJLVWUDWHUHJDUGLQJWKHFRQWUROOHGEX\V               VWDQGVIRUHVVHQWLDOO\WKHVDPHSURSRVLWLRQUHFRJQL]HGE\WKH
WKHDIILGDYLWVWLOOIDLOVWRHVWDEOLVKSUREDEOHFDXVHWREHOLHYH           FRXUW LQ 'HODQH\ n DQ LQGLYLGXDO ZKR LV XVLQJ D SXEOLF
WKDW HYLGHQFH RI ZURQJGRLQJ ZRXOG EH GLVFRYHUHG RQ WKH            UHVWURRP KDV D SULYDF\ LQWHUHVW LQ EHLQJ IUHH RI SROLFH
   8QLWHG6WDWHVY+DUULVHWDO       1RV       1RV            8QLWHG6WDWHVY+DUULVHWDO       

VXUYHLOODQFHFRQGXFWHGZLWKRXWDZDUUDQWRUSUREDEOHFDXVH           BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
WKDWZRXOGMXVWLI\DZDUUDQW)GDW1HLWKHUFDVH
HYHQ UHPRWHO\ VXJJHVWV WKDW RIILFHUV H[HFXWLQJ D VHDUFK       &21&855,1*,13$57',66(17,1*,13$57
ZDUUDQW VKRXOG NQRFN DQG DQQRXQFH WKHLU SUHVHQFH EHIRUH       BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
RSHQLQJ DQ LQWHULRU GRRU EHKLQG ZKLFK WKHUH PD\ EH D
EDWKURRP                                                           &/$<&LUFXLWsXGJHFRQFXUULQJLQSDUWDQGGLVVHQWLQJLQ
                                                                   SDUW  $OWKRXJK , FRQFXU LQ WKH PDMRULW\jV KROGLQJ WKDW
  ,Q WKLV FDVH SROLFH ZHUH QRW HQJDJLQJ LQ FODQGHVWLQH    'HIHQGDQW +DUULV ODFNV VWDQGLQJ WR DVVHUW D )RXUWK
VXUYHLOODQFHRIDSXEOLFUHVWURRPEXWLQVWHDGZHUHH[HFXWLQJ      $PHQGPHQW FKDOOHQJH WKHUH DUH WZR EDVHV XSRQ ZKLFK ,
DVHDUFKZDUUDQWDWDSULYDWHUHVLGHQFHNQRZQDVDFHQWHURI       EHOLHYH WKH HYLGHQFH VKRXOG KDYH EHHQ VXSSUHVVHG ZLWK
GUXJ WUDIILFNLQJ DFWLYLW\  ([WHQGLQJ WKH mNQRFN DQG        UHVSHFWWR'HIHQGDQW7D\ORU)LUVWWKHDIILGDYLWLQVXSSRUWRI
DQQRXQFHl UXOH WR DQ\ LQWHULRU GRRU WKDW PLJKW KDYH D     WKH VHDUFK ZDUUDQW ZDV LQVXIILFLHQW EHFDXVH LW ZDV D EDUH
EDWKURRPEHKLQGLWZRXOGIDUH[FHHGWKHUHTXLUHPHQWVRIWKH        ERQHVDIILGDYLWWKDWGLGQRWVKRZSUREDEOHFDXVH6HFRQGDQ\
)RXUWK $PHQGPHQW DQG ZRXOG VXEVWDQWLDOO\ KLQGHU ODZ          SUREDEOH FDXVH WKDW FRXOG KDYH H[LVWHG DW WKH RXWVHW ZDV
HQIRUFHPHQWHIIRUWV6HHHJ8QLWHG6WDWHVY6SLNHV      YLWLDWHG E\ WKH SROLFH RIILFHUjV NQRZOHGJH RI LUUHIXWDEOH
)GWK&LURIILFHUVZKRHQWHUHGKRPH        HYLGHQFHWKDWWKHUHZHUHQRORQJHUDQ\GUXJVRQWKHSUHPLVHV
WRVHFRQGVDIWHUNQRFNLQJDQGDQQRXQFLQJWKHLUSUHVHQFH         ,WKHUHIRUHUHVSHFWIXOO\GLVVHQW
GLG QRW YLRODWH )RXUWK $PHQGPHQW ZKHUH DGGLWLRQDO GHOD\
PD\KDYHHQDEOHGGUXJWUDIILFNHUVWRGHVWUR\HYLGHQFHDQG                                            ,
WDNHDGGLWLRQDOVWHSVWRGHIHQGWKHPVHOYHVDQGWKHLUGUXJV
7KHEDWKURRPLVWKHREYLRXVSODFHWRUHWUHDWLQRUGHUWRIOXVK        $OWKRXJK WKH PDMRULW\ ILQGV WKDW SUREDEOH FDXVH H[LVWHG
GUXJVRURWKHUFRQWUDEDQGGRZQWKHWRLOHWDQGLWZRXOGEH         XQGHUWKLV&RXUWjVZHDNHQHGSUREDEOHFDXVHUHTXLUHPHQWVRI
DEVXUG WR UHTXLUH ODZ HQIRUFHPHQW RIILFHUV VHDUFKLQJ D      LWVHQEDQFRSLQLRQLQ8QLWHG6WDWHVY$OOHQ)G
UHVLGHQFHIRUGUXJVWRGHOD\VHDUFKLQJDEDWKURRPWKDWWKH\        WK &LU FHUW GHQLHG  6 &W   , DP
FRXOG WHOO ZDV RFFXSLHG  $FFRUGLQJO\ ZH KROG WKDW WKH   XQSHUVXDGHG7KHDIILGDYLWLQVXSSRUWRIWKHZDUUDQWLQWKLV
GLVWULFWFRXUWGLGQRWHUULQFRQFOXGLQJWKDW+DUULVSRVVHVVHG     FDVH UHVWDWHG LQ LWV HQWLUHW\ LQ WKH PDMRULW\ RSLQLRQ LV D
QROHJLWLPDWHH[SHFWDWLRQRISULYDF\LQWKHEDWKURRPRIWKH        FODVVLF H[DPSOH RI DQ LQDGHTXDWH DIILGDYLW  7KH DIILDQW LQ
UHVLGHQFH                                                         $OOHQDWOHDVWZDVDEOHWRLGHQWLI\WKHVXVSHFWZKRZDVNQRZQ
                                                                   E\KLVQLFNQDPHRUDOLDVm5HG'RJl,QWKHLQVWDQWFDVHWKH
                    ,,,&21&/86,21                               DIILGDYLWGLGQRWSURYLGHDQ\LQIRUPDWLRQWRWKHPDJLVWUDWH
                                                                   UHJDUGLQJWKHLGHQWLW\RIWKHVXVSHFWNQRZQDVm)DW%R\lDQG
  )RU WKH UHDVRQV VWDWHG DERYH ZH $)),50 WKH GLVWULFW     PHUHO\UHIHUUHGWRKLPDVmsRKQ'RHl7KHUHZDVQRRWKHU
FRXUWjVGHQLDORIWKHGHIHQGDQWVjPRWLRQVWRVXSSUHVV             LQIRUPDWLRQFRQWDLQHGLQWKHDIILGDYLWVXIILFLHQWWRSURYLGHWKH
                                                                   PDJLVWUDWH LVVXLQJ WKH ZDUUDQW HYHQ D PLQLPDO GHJUHH RI
                                                                   SDUWLFXODULW\
                                                                      ,Q 8QLWHG 6WDWHV Y :HDYHU  )G   ZH
                                                                   UHYHUVHGWKHGLVWULFWFRXUWjVGHQLDORIDPRWLRQWRVXSSUHVV
                                                                   ILQGLQJWKDWWKHDIILGDYLWXVHGWRREWDLQDZDUUDQWWRVHDUFKWKH
                                                                   GHIHQGDQWjVUHVLGHQFHIRUPDULMXDQDEHOLHYHGWREHKHOGWKHUH
                                                                   LQDTXDQWLW\VXLWDEOHIRUGLVWULEXWLRQZDVLQVXIILFLHQW7KH
