           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    
                                  
                                     1R
            Y                    
                                   !
                                  
 *$5< '(:$<1( 3,1621             
          'HIHQGDQW$SSHOODQW 
                                 1
       $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
    IRUWKH0LGGOH'LVWULFWRI7HQQHVVHHDW1DVKYLOOH
  1Rn5REHUW/(FKROV&KLHI'LVWULFWsXGJH
                    $UJXHG)HEUXDU\
             'HFLGHGDQG)LOHG)HEUXDU\
        %HIRUH*,/0$1DQG*,%%216&LUFXLWsXGJHV
                   32/67(5'LVWULFWsXGJH
                       BBBBBBBBBBBBBBBBB
                             &2816(/
$5*8('  6XPWHU / &DPS )('(5$/ 38%/,&
'()(1'(5j62)),&(1DVKYLOOH7HQQHVVHHIRU$SSHOODQW
$QQD sRKQVRQ &UDPHU $66,67$17 81,7(' 67$7(6

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



                                    
     8QLWHG6WDWHVY3LQVRQ                        1R

$77251(< 1DVKYLOOH 7HQQHVVHH IRU $SSHOOHH
21 %5,()  6XPWHU / &DPS )('(5$/ 38%/,&
'()(1'(5j62)),&(1DVKYLOOH7HQQHVVHHIRU$SSHOODQW
'HEUD 7HXIHO 3KLOOLSV $66,67$17 81,7(' 67$7(6
$77251(<1DVKYLOOH7HQQHVVHHIRU$SSHOOHH
  32/67(5 ' s GHOLYHUHG WKH RSLQLRQ RI WKH FRXUW LQ
ZKLFK *,%%216 s MRLQHG  *,/0$1 s SS 
GHOLYHUHGDVHSDUDWHFRQFXUULQJRSLQLRQ
                     BBBBBBBBBBBBBBBBB
                         23,1,21
                     BBBBBBBBBBBBBBBBB
  '$1 $$521 32/67(5 'LVWULFW sXGJH  'HIHQGDQW
$SSHOODQW*DU\'H:D\QH3LQVRQSOHGJXLOW\WRYLRODWLRQVRI
 86&  J >IHORQ LQ SRVVHVVLRQ RI D ILUHDUP@
 86&   >SRVVHVVLRQ ZLWK LQWHQW WR VHOO FRFDLQH LQ
H[FHVVRIJUDPVDQGFRFDLQHEDVHLQH[FHVVRIJUDPV@
DQG86&F>FDUU\LQJRUXVLQJDILUHDUPGXULQJ
DGUXJWUDIILFNLQJFULPH@3LQVRQUHVHUYHGKLVULJKWWRDSSHDO
WKH GLVWULFW FRXUWjV RUGHU GHQ\LQJ KLV PRWLRQ WR VXSSUHVV
HYLGHQFH RQ WKH EDVLV WKDW WKH VHDUFK ZDUUDQW ZDV QRW
VXSSRUWHGE\SUREDEOHFDXVHDQGHYHQLILWZDVWKHRIILFHUV
YLRODWHG WKH NQRFNDQGDQQRXQFH SURYLVLRQV RI WKH )RXUWK
$PHQGPHQW WR WKH 8QLWHG 6WDWHV &RQVWLWXWLRQ  )RU WKH
UHDVRQV VHW IRUWK EHORZ ZH $)),50 WKH GLVWULFW FRXUWjV
RUGHUGHQ\LQJ3LQVRQjVPRWLRQWRVXSSUHVVWKHHYLGHQFH
                     ,%$&.*5281'
$)DFWXDOEDFNJURXQG
  2Q $XJXVW   1DVKYLOOH 3ROLFH 2IILFHU :LOOLDP
0DFNDOO DSSHDUHG EHIRUH D 'DYLGVRQ &RXQW\ *HQHUDO
6HVVLRQVPDJLVWUDWHMXGJHWRDSSO\IRUWKHLVVXDQFHRIDVHDUFK
ZDUUDQW WR DOORZ KLP WR VHDUFK  7RUEHWW 6WUHHW LQ
1DVKYLOOH 7HQQHVVHH  2IILFHU 0DFNDOO SURYLGHG WKH
PDJLVWUDWHMXGJHZLWKDQDIILGDYLWLQVXSSRUWRIKLVDSSOLFDWLRQ
    8QLWHG6WDWHVY3LQVRQ                       1R       1R                        8QLWHG6WDWHVY3LQVRQ         

VXSSUHVVLRQ RI HYLGHQFH DQG WKH GHPLVH RI D SURVHFXWLRQl     IRUWKHVHDUFKZDUUDQW7KHDIILGDYLWLQVXSSRUWRIWKHVHDUFK
/HDG 2S DW   6HH :HDYHU  )G DW  m,Q         ZDUUDQWUHDGDVIROORZV
GHWHUPLQLQJ ZKHWKHU DQ DIILGDYLW LV µEDUH ERQHVj WKH
UHYLHZLQJFRXUWLVFRQFHUQHGH[FOXVLYHO\ZLWKWKHVWDWHPHQWV              7KLVDIILGDYLWLVPDGHE\2IILFHU:LOOLDP0DFNDOO
FRQWDLQHGZLWKLQWKHDIILGDYLWLWVHOIl,SHUVRQDOO\EHOLHYH           ZKRKDV\HDUVRIODZHQIRUFHPHQWH[SHULHQFHDVD
WKDW WKH DIILGDYLW LQ WKH SUHVHQW FDVH ZDV LQVXIILFLHQW WR       VZRUQ SROLFH RIILFHU DQG  \HDUV DV D QDUFRWLFV
HVWDEOLVKSUREDEOHFDXVHEXWUHFRJQL]HWKDWWKHPDMRULW\LQ              LQYHVWLJDWRU QRZ WHVWLILHV KHUHLQ ZKLFK LV EDVHG
$OOHQIRXQGWRWKHFRQWUDU\EDVHGXSRQDVXEVWDQWLDOO\VLPLODU            XSRQ LQIRUPDWLRQ UHFHLYHG IURP RWKHU ODZ
DIILGDYLW7KHUHIRUH,UHOXFWDQWO\FRQFXURQWKLVLVVXH                HQIRUFHPHQWRIILFHUVXQOHVVRWKHUZLVHVWDWHGZKLFK
                                                                          \RXUDIILDQWEHOLHYHVWREHWUXHDQGLVDVIROORZV
   $VWRWKHNQRFNDQGDQQRXQFHLVVXH,PXVWVD\WKDWWKLV               :LWKLQ WKH ODVW  KRXUV \RXU DIILDQW VHDUFKHG D
FDVHLVDVmFORVHWRWKHOLQHlDVDQ\,KDYHVHHQ7KHOHDG              UHOLDEOHFRQILGHQWLDOLQIRUPDQWKHUHDIWHUUHIHUUHGWR
RSLQLRQTXLWHSURSHUO\HPSKDVL]HVWKDWm>Z@HQHHGQRWGHFLGH              DVm&,lDQGIRXQGQRLOOHJDOFRQWUDEDQGDQGGLUHFWHG
ZKHWKHU D ZDLW RI ILYH WR WHQ VHFRQGV VWDQGLQJ DORQH LV       VDLG &, WR JR WR VWDWHG DGGUHVV DQG SXUFKDVH D
DGHTXDWHXQGHUWKHNQRFNDQGDQQRXQFHUXOHl/HDG2SDW                  TXDQWLW\RIFRFDLQHZKLFKVDLG&,GLG<RXUDIILDQW
 DQG WKDW m>P@RUH LPSRUWDQWO\ D QXPEHU RI HYHQWV            JDYHVDLG&,VRPHSUHSKRWRFRSLHGEX\PRQH\DQG
RFFXUUHGSULRUWRWKHILUVWNQRFNWKDWVKRXOGKDYHDOHUWHGWKH            REVHUYHG VDLG &, HQWHU WKURXJK WKH IURQW GRRU RI
RFFXSDQWV RI  7RUEHWW 6WUHHW WKDW WKH SROLFH ZRXOG EH        VWDWHGDGGUHVVDQGPRPHQWDULO\UHWXUQHGWKURXJKWKH
VHHNLQJ HQWU\ WR WKH SUHPLVHVl /HDG 2S DW   :LWKRXW       VDPHGRRU6DLG&,WKHQZDONHGGLUHFWO\EDFNWRP\
WKHVHSULRUHYHQWV,ZRXOGKDYHIRXQGWKDWWKHSROLFHRIILFHUV           YHKLFOHWXUQLQJRYHUDODUJH\HOORZLVKURFNWKDWODWHU
KDG YLRODWHG WKH NQRFNDQGDQQRXQFH UXOH  7KLV FDVH              ILHOG WHVWHG SRVLWLYH IRU FRFDLQH EDVH  6DLG &, LV
WKHUHIRUHVKRXOGQRWEHFLWHGIRUWKHJHQHUDOSURSRVLWLRQWKDW           IDPLOLDU ZLWK VDLG GUXJ IURP SDVW H[SHULHQFH DQG
ILYHVHFRQGVLVDVXIILFLHQWWLPHIRUSROLFHRIILFHUV WR ZDLW           H[SRVXUH  <RXU DIILDQW NQRZV VDLG &, LV UHOLDEOH
EHIRUHIRUFLQJWKHLUZD\LQWRDUHVLGHQFH                                IURP SDVW LQIRUPDWLRQ UHFHLYHG IURP VDLG &,
                                                                          UHVXOWLQJLQWKHODZIXOUHFRYHU\RIQDUFRWLFV<RXU
                                                                          DIILDQWZLOORQO\ JLYHVDLG&,jVQDPHWRWKHMXGJH
                                                                          VLJQLQJ WKLV ZDUUDQW  7KH &, ZLVKHV WR UHPDLQ
                                                                          DQRQ\PRXVIRUIHDURIUHSULVDO<RXUDIILDQWZLVKHV
                                                                          WR VHDUFK HDFK SHUVRQV RQ WKH DERYH SUHPLVHV>@
                                                                          )URP\RXU$IILDQWjVH[SHULHQFHDQGWUDLQLQJKHKDV
                                                                          OHDUQHGWKDWPRVWSHUVRQVSUHVHQWDWSUHPLVHVZKHUH
                                                                          FRQWUROOHGVXEVWDQFHVDUHERXJKWVROGDQGRUXVHG
                                                                          KDYHFRQWUROOHGVXEVWDQFHVSDUDSKHUQDOLDZHDSRQV
                                                                          RURWKHU HYLGHQFHRIFULPLQDOFRQGXFWVHFUHWHGRQ
                                                                          WKHLUSHUVRQ
                                                                        ,QH[HFXWLQJWKHZDUUDQW2IILFHU0DFNDOODQGRWKHUSROLFH
                                                                      RIILFHUVSXOOHGXSLQIURQWRIWKHUHVLGHQFHLQDQXQPDUNHG
                                                                      YDQDQGJRWRXWRIWKHYHKLFOH2IILFHU0DFNDOOEHOLHYHGWKHUH
                                                                      ZDVDOVRDPDUNHGSROLFHFDU SUHVHQW)URPWKHVLGHZDON
     8QLWHG6WDWHVY3LQVRQ                         1R       1R                       8QLWHG6WDWHVY3LQVRQ      

ZKHUHWKHRIILFHUVJRWRXWRIWKHYDQWRWKHIURQWSRUFKLVWHQ                            BBBBBBBBBBBBBBBBBB
WR ILIWHHQ IHHW  $V WKH\ DSSURDFKHG WKH IURQW GRRU RI WKH
UHVLGHQFH WKH\ QRWLFHG D ZRPDQ RQ WKH IURQW SRUFK  7KH\                           &21&855(1&(
\HOOHG m*HW RQ WKH JURXQG JHW RQ WKH JURXQG JHW RQ WKH                        BBBBBBBBBBBBBBBBBB
JURXQGlWKHZRPDQFRPSOLHGDQGZDVKDQGFXIIHG
                                                                           521$/' /(( *,/0$1 &LUFXLW sXGJH FRQFXUULQJ  ,
   2QFHDWWKHIURQWGRRUWKHRIILFHUVNQRFNHGRQWKHGRRUDQG         FRQFXULQWKHZHOOZULWWHQOHDGRSLQLRQERWKDVWRWKHYDOLGLW\
DQQRXQFHG m3ROLFH VHDUFK ZDUUDQWl  7KH FRQILGHQWLDO             RIWKHVHDUFKZDUUDQWDQGWKHRIILFHUVjFRPSOLDQFHZLWKWKH
LQIRUPDQWKDGWROG2IILFHU0DFNDOOWKDWLQRUGHUWRSXUFKDVH            NQRFNDQGDQQRXQFH UXOH  0\ FRQFXUUHQFH RQ WKH VHDUFK
GUXJV DW WKH UHVLGHQFH RQH QHHGHG WR FDOO EHIRUH DUULYLQJ     ZDUUDQWLVVXHKRZHYHULVDUHOXFWDQWRQHFRPSHOOHGE\WKLV
EHFDXVHWKHUHVLGHQWVZRXOGQRWUHVSRQGWRDNQRFNRQWKH               FRXUWjVFRQWUROOLQJSUHFHGHQWLQ8QLWHG6WDWHVY$OOHQ
GRRU7KHRIILFHUVZDLWHGILYHWRWHQVHFRQGVEHIRUHEDWWHULQJ         )GWK&LUHQEDQF%XWIRU$OOHQ,ZRXOG
GRZQWKHIURQWPHWDOVHFXULW\GRRUZLWKDUDP7KHRIILFHUV           KROGWKDW2IILFHU0DFNDOOjVDIILGDYLWZDVOHJDOO\LQVXIILFLHQW
DOVREDWWHUHGGRZQDQLQQHUGRRU8SRQHQWHULQJWKHOLYLQJ             WRVXSSRUWWKHPDJLVWUDWHMXGJHjVFRQFOXVLRQWKDWWKHUHZDV
URRPRIWKHKRXVHWKHRIILFHUVGLVFRYHUHGWZRZRPHQE\D               SUREDEOHFDXVHWREHOLHYHWKDWHYLGHQFHRIDFULPHZRXOGEH
FRXFK3LQVRQZDVVWDQGLQJWRWKHULJKWRIWKHRIILFHUVLQWKH         IRXQGDW3LQVRQjVUHVLGHQFH7KHDIILGDYLWVLPSO\GRFXPHQWV
GRRUZD\RIDEHGURRP7KHVHDUFKRIWKHKRXVH\LHOGHGD                WKDW WKH FRQILGHQWLDO LQIRUPDQW SXUFKDVHG D VLQJOH URFN RI
ODUJH TXDQWLW\ RI FUDFN DQG SRZGHU FRFDLQH 'LODXGLG DQG        FUDFNFRFDLQHZKLOHDW7RUEHWW6WUHHW,WOHDYHVRXWWKH
9DOLXPSLOOVPDULMXDQDVFDOHVDQGVHYHUDOJXQV                     NH\ SLHFH RI LQIRUPDWLRQ WKDW WKH LQIRUPDQW KDG REVHUYHG
                                                                        ODUJHTXDQWLWLHVRIGUXJVPRQH\DQGZHDSRQVZKHQKHZDV
%3URFHGXUDOEDFNJURXQG                                               LQWKHUHVLGHQFH:LWKRXWWKLVDGGLWLRQDOLQIRUPDWLRQ,GRQRW
                                                                        EHOLHYHWKDW WKHPDJLVWUDWHMXGJHKDGDUHDVRQDEOHEDVLVWR
   2Q$XJXVW3LQVRQZDVLQGLFWHGDQGFKDUJHGZLWK            FRQFOXGH WKDW WKH SROLFH ZRXOG ILQG FRQWUDEDQG LQ WKH
IHORQ\SRVVHVVLRQRIILUHDUPVLQYLRODWLRQRI86&             UHVLGHQFHWKUHHGD\VDIWHUWKHVLQJOHURFNRIFUDFNFRFDLQHKDG
 J DQG D  SRVVHVVLRQ ZLWK LQWHQW WR          EHHQSXUFKDVHGE\WKHLQIRUPDQW6HH$OOHQ)GDW
GLVWULEXWH VFKHGXOH ,, FRQWUROOHG VXEVWDQFHV LQ YLRODWLRQ RI     *LOPDQsFRQFXUULQJVHHDOVR8QLWHG6WDWHVY:HDYHU
86&DDQG86&SRVVHVVLRQRI              )GWK&LUKROGLQJWKDWWKHDIILGDYLW
ILUHDUPVLQIXUWKHUDQFHRIDGUXJWUDIILFNLQJFULPHLQYLRODWLRQ        VXEPLWWHG IRU D ZDUUDQW GLG QRW VXSSRUW WKH PDJLVWUDWHjV
6RI  86&   DQG F  SRVVHVVLRQ RI D         GHWHUPLQDWLRQ RI SUREDEOH FDXVH ZKHUH mWKH RQO\ FODLP RI
GHVWUXFWLYHGHYLFHLQIXUWKHUDQFHRIDGUXJWUDIILFNLQJFULPH           SRVVLEOHZURQJGRLQJLVWKHDYHUPHQWWKDWZLWKLQWKUHHGD\V
LQYLRODWLRQRI86&DQGFDQGNQRZLQJ           SULRUWRWKHDIILGDYLWGDWHWKHLQIRUPDQWZDVRQWKHVXVSHFW
UHFHLSWDQGSRVVHVVLRQRIDGHVWUXFWLYHGHYLFHZKLFKZDVQRW            SUHPLVHVDQGZKLOHWKHUHKHVDZVRPHTXDQWLW\RIPDULMXDQD
UHJLVWHUHGWRKLPLQYLRODWLRQRI86&G                 µH[SUHVVO\IRUWKHSXUSRVHRIXQODZIXOGLVWULEXWLRQjl
   ,Q D PRWLRQ ILOHG RQ 0DUFK   3LQVRQ PRYHG WR         7KH IDFW WKDW 2IILFHU 0DFNDOO KDG WKLV DGGLWLRQDO
VXSSUHVV WKH HYLGHQFH DV LOOHJDOO\ VHL]HG DOOHJLQJ WKDW WKH    LQIRUPDWLRQGRHVQRWVDYHWKHGHILFLHQWDIILGDYLW$VZHOOSXW
VHDUFKZDUUDQWZDVQRWEDVHGRQSUREDEOHFDXVHDQGHYHQLI             E\WKHOHDGRSLQLRQmDSUREDEOHFDXVHGHWHUPLQDWLRQFDQEH
LW ZDV WKH DJHQWV DQG RIILFHUV YLRODWHG WKH mNQRFN DQG        EDVHGRQO\XSRQWKHLQIRUPDWLRQWKHODZHQIRUFHPHQWRIILFHU
DQQRXQFHlUXOHRIWKH)RXUWK$PHQGPHQWWRWKH8QLWHG6WDWHV             FRPPXQLFDWHVWRWKHPDJLVWUDWHMXGJHDQGWKHRPLVVLRQ
&RQVWLWXWLRQ ZKHQ HIIHFWXDWLQJ WKH ZDUUDQW  2Q $SULO        RIUHOHYDQWLQIRUPDWLRQIURPDQDIILGDYLWFRXOGOHDGWRWKH
DQHYLGHQWLDU\KHDULQJZDVKHOG$WWKHFORVHRIWKH
    8QLWHG6WDWHVY3LQVRQ                        1R       1R                       8QLWHG6WDWHVY3LQVRQ        

2IILFHU0DFNDOOWHVWLILHGWKDWZKHQWKHRIILFHUVHQWHUHGWKH           KHDULQJ 3LQVRQ VRXJKW DQG REWDLQHG SHUPLVVLRQ IURP WKH
IURQWGRRUWZRIHPDOHVXEMHFWVZHUHRYHUE\WKHOLYLQJURRP            FRXUWWRILOHDVXSSOHPHQWDOPHPRUDQGXPLQVXSSRUWRIKLV
FRXFKDQG3LQVRQZDVVWDQGLQJULJKWLQWKHGRRUZD\RIWKH              0RWLRQ WR 6XSSUHVV  2Q 0D\   3LQVRQ ILOHG WKH
EHGURRP DQG WKH OLYLQJ URRP ZKHUH WKH RIILFHUV FRXOG          PHPRUDQGXPDQGWKHJRYHUQPHQWUHVSRQGHGRQWKHIROORZLQJ
OLWHUDOO\UHDFKRXWDQGWRXFKKLP7KHGLVWULFWFRXUWFRUUHFWO\       GD\7KHGLVWULFWFRXUWHQWHUHGDQRUGHUDQGPHPRUDQGXP
QRWHGWKDWWKHFKDQFHLVVOLPWKDWWKRVHLQVLGHKDGQRWKHDUG          GHQ\LQJWKHPRWLRQ
DQGKDGDQRSSRUWXQLW\WRUHVSRQGWRWKHRIILFHUVjUHTXHVWVIRU
HQWU\                                                                   2Q0D\3LQVRQHQWHUHGSOHDVRIJXLOW\WR&RXQWV
                                                                       2QH7ZRDQG7KUHHRIWKHLQGLFWPHQWUHVHUYLQJIRUDSSHDO
   7KH )RXUWK $PHQGPHQW TXHVWLRQV RQO\ ZKHWKHU WKH               WKHLVVXHVUDLVHGLQWKHVXSSUHVVLRQPRWLRQ2Q$XJXVW
RIILFHUVjRYHUDOODFWLRQVZHUHUHDVRQDEOHQRWKRZPXFKWLPH           3LQVRQZDVVHQWHQFHGWRDWRWDOVHQWHQFHRQWKHWKUHH
RIILFHUV PXVW ZDLW WR LQIHU D FRQVWUXFWLYH UHIXVDO RI          FRXQWV RI RQH KXQGUHG DQG HLJKW\RQH  PRQWKVj
DGPLWWDQFH8QLWHG6WDWHVYsRQHV)GWK            LPSULVRQPHQW WKH MXGJPHQW ZDV HQWHUHG RQ 6HSWHPEHU 
&LU*LYHQWKHWHVWLPRQ\RIWKHRIILFHUVIRXQGFUHGLEOH        2Q6HSWHPEHU3LQVRQjVQRWLFHRIDSSHDOZDV
E\ WKH GLVWULFW FRXUW WKH  WLPH RI GD\ ZKHQ WKH RIILFHUV   WLPHO\ILOHG
H[HFXWHGWKHZDUUDQWWKHFRPPRWLRQRQWKHSRUFKDQGWKH
NQRZOHGJHWKDWWKHUHVLGHQWVZRXOGQRWUHVSRQGWRDNQRFNRQ                                  ,,$1$/<6,6
WKH GRRU XQOHVV WKH\ UHFHLYHG D WHOHSKRQH FDOO ILUVW ZH
FRQFOXGH WKDW WKH WLPH ZKLFK HODSVHG EHWZHHQ WKH                $6WDQGDUGRIUHYLHZ
DQQRXQFHPHQW DQG HQWU\ ZDV VXIILFLHQW XQGHU WKH
FLUFXPVWDQFHVWRVDWLVI\WKHUHDVRQDEOHQHVVUHTXLUHPHQWRIWKH            ,QUHYLHZLQJDPRWLRQWRVXSSUHVVZHPXVWUHYLHZIDFWXDO
)RXUWK$PHQGPHQW                                                      ILQGLQJVIRUFOHDUHUURUDQG UHYLHZOHJDOGHWHUPLQDWLRQVGH
                                                                       QRYR8QLWHG6WDWHVY:LOOLDPV)GWK&LU
                     ,,,&21&/86,21                                 FHUWGHQLHG:LOOLDPVY8QLWHG6WDWHV86
                                                                       8QLWHG6WDWHVY:LOOLDPV)GWK
  )RUWKHIRUJRLQJUHDVRQVZH$)),50WKHGLVWULFWFRXUWjV             &LU   7KH GLVWULFW FRXUWjV IDFWXDO ILQGLQJV ZLOO EH
GHQLDORIWKHPRWLRQWRVXSSUHVV                                      RYHUWXUQHGRQO\LIWKHUHYLHZLQJFRXUWKDVWKHmGHILQLWHDQG
                                                                       ILUPFRQYLFWLRQWKDWDPLVWDNHKDVEHHQFRPPLWWHGl8QLWHG
                                                                       6WDWHVY:RUOH\)GWK&LU
                                                                       %6HDUFKDQG6HL]XUH
                                                                         7KH)RXUWK$PHQGPHQWRIWKH8QLWHG6WDWHV&RQVWLWXWLRQ
                                                                       SURWHFWV FLWL]HQV IURP XQUHDVRQDEOH VHDUFKHV DQG VHL]XUHV
                                                                       7KH)RXUWK$PHQGPHQWSURYLGHV
                                                                            7KHULJKWRIWKHSHRSOHWREHVHFXUHLQWKHLUSHUVRQV
                                                                            KRXVHV SDSHUV DQG HIIHFWV DJDLQVW XQUHDVRQDEOH
                                                                            VHDUFKHVDQGVHL]XUHVVKDOOQRWEHYLRODWHGDQGQR
                                                                            :DUUDQWV VKDOO LVVXH EXW XSRQ SUREDEOH FDXVH
                                                                            VXSSRUWHGE\2DWKRUDIILUPDWLRQDQGSDUWLFXODUO\
     8QLWHG6WDWHVY3LQVRQ                        1R       1R                        8QLWHG6WDWHVY3LQVRQ       

     GHVFULELQJWKHSODFHWREHVHDUFKHGDQGWKHSHUVRQV                   PRVW SHRSOH DUH LQ EHG DQG PDQ\ DUH DVOHHSj
     RUWKLQJVWREHVHL]HG                                                &RUUHVSRQGLQJO\ZKHQRIILFHUVH[HFXWHDZDUUDQWLQ
                                                                            WKHPLGGOHRIWKHGD\RUKDYHUHTXHVWHGDGPLWWDQFH
86&2167DPHQG,9                                                      IURPWKHRFFXSDQWIDFHWRIDFHWKHOHQJWKRIWLPH
                                                                            WKH RIILFHUV PXVW WDUU\ RXWVLGH GLPLQLVKHV 6HH
   7KH ZDUUDQW UHTXLUHPHQW H[LVWV WR PHDVXUH WKH SUREDEOH            8QLWHG 6WDWHV Y .HPS  )G  '& &LU
FDXVH DVVHUWHG DQG WR HQVXUH WKDW mWKRVH VHDUFKHV GHHPHG            
QHFHVVDU\VKRXOGEHDVOLPLWHGDVSRVVLEOHl&RROLGJHY1HZ
+DPSVKLUH86$PDJLVWUDWHMXGJHjV             6SLNHV)GDW,QWKHLQVWDQWFDVHZKHQRIILFHUV
GHWHUPLQDWLRQRISUREDEOHFDXVHLVJLYHQJUHDWGHIHUHQFHE\            H[HFXWHGWKHZDUUDQWDWSPLWZDVUHDVRQDEOHWRDVVXPH
DUHYLHZLQJFRXUW8QLWHG6WDWHVY$OOHQ)G          WKDWVRPHRQHZRXOGKDYHEHHQDZDNHDQGUHVSRQVLYH2IILFHU
WK&LUHQEDQFFHUWGHQLHG$OOHQY8QLWHG6WDWHV         0DFNDOOFRUURERUDWHGWKLVDVVXPSWLRQZKHQKHWHVWLILHGWKDW
86    $IILGDYLWV PXVW EH MXGJHG EDVHG RQ WKH     ZKHQWKHRIILFHUVHQWHUHGWKHIURQWGRRUWZRIHPDOHVXEMHFWV
mWRWDOLW\ RI WKH FLUFXPVWDQFHVl DQG DQVZHU mWKH                  ZHUHRQWKHOLYLQJURRPFRXFKDQG3LQVRQZDVVWDQGLQJULJKW
FRPPRQVHQVH SUDFWLFDO TXHVWLRQ >RI@ ZKHWKHU WKHUH LV            LQWKHGRRUZD\ZKHUHWKHRIILFHUFRXOGUHDFKRXWDQGWRXFK
µSUREDEOH FDXVHj WR EHOLHYH WKDW FRQWUDEDQG RU HYLGHQFH LV     KLP
ORFDWHGLQDSDUWLFXODUSODFHl,OOLQRLVY*DWHV86
   ,Q 8QLWHG 6WDWHV Y /HRQ  86         0RUHLPSRUWDQWO\DQXPEHURIHYHQWVRFFXUUHGSULRUWRWKH
LQWHUQDOFLWDWLRQVRPLWWHGWKH6XSUHPH&RXUWVDLG           ILUVW NQRFN WKDW VKRXOG KDYH DOHUWHG WKH RFFXSDQWV RI 
                                                                       7RUEHWW6WUHHWWKDWWKHSROLFHZRXOGEHVHHNLQJHQWU\WRWKH
     (YHQ LI WKH ZDUUDQW DSSOLFDWLRQ ZDV VXSSRUWHG E\           SUHPLVHV6SLNHV)GDW7KHXQGLVSXWHGWHVWLPRQ\
     PRUHWKDQDµEDUHERQHVjDIILGDYLWDUHYLHZLQJFRXUW             LVWKDWLQWKHPLGGOHRIWKHGD\VRPHRIWKHRIILFHUVDUULYHGLQ
     PD\ SURSHUO\ FRQFOXGH WKDW QRWZLWKVWDQGLQJ WKH              DQXQPDUNHGYDQZKLOHRWKHUVDUULYHGLQDPDUNHGSDWUROFDU
     GHIHUHQFHWKDWPDJLVWUDWHVGHVHUYHWKHZDUUDQWZDV               ZLWK LWV EOXH OLJKWV RQ   $V WKH RIILFHUV DSSURDFKHG WKH
     LQYDOLG EHFDXVH WKH PDJLVWUDWHjV SUREDEOHFDXVH               UHVLGHQFHWKHUHZDVDIHPDOHRQWKHIURQWSRUFKWKHRIILFHUV
     GHWHUPLQDWLRQUHIOHFWHGDQLPSURSHUDQDO\VLVRIWKH               \HOOHG m*HW RQ WKH JURXQG JHW RQ WKH JURXQG JHW RQ WKH
     WRWDOLW\RIWKHFLUFXPVWDQFHVRUEHFDXVHWKHIRUPRI             JURXQGl$WWKHWLPHWKHRIILFHUV\HOOHGWRWKHIHPDOHWKH\
     WKHZDUUDQWZDVLPSURSHULQVRPHUHVSHFW                         ZHUHEHWZHHQWHQWRILIWHHQIHHWDZD\IURPWKHSRUFK$IWHU
                                                                       WKH RIILFHUV VHFXUHG WKH IHPDOH WKH\ DSSURDFKHG WKH IURQW
7KLV FRXUW H[SODLQHG WKDW m>W@KH DIILGDYLW LV MXGJHG RQ WKH   VHFXULW\ GRRU  2IILFHU 0DFNDOO KDG EHHQ WROG E\ WKH
DGHTXDF\RIZKDWLWGRHVFRQWDLQQRWRQZKDWLWODFNVRURQ          FRQILGHQWLDOLQIRUPDQWWKDWLQRUGHUWRSXUFKDVHGUXJVDWWKH
ZKDWDFULWLFPLJKWVD\VKRXOGKDYHEHHQDGGHGl$OOHQ           UHVLGHQFH RQH QHHGHG WR FDOO EHIRUH DUULYLQJ EHFDXVH WKH
)G DW   ,Q RUGHU WR EH DGHTXDWH 2IILFHU 0DFNDOOjV     UHVLGHQWVZRXOGQRWUHVSRQGWRDNQRFNRQWKHGRRU$WWKH
DIILGDYLWKDGWRFRQWDLQKLVDWWHVWDWLRQLQVRPHGHWDLORIWKH       IURQW ZURXJKW LURQ VHFXULW\ GRRU WKH RIILFHUV NQRFNHG DQG
UHOLDELOLW\ RI WKH FRQILGHQWLDO LQIRUPDQW DQG HYLGHQFH           DQQRXQFHGm3ROLFHVHDUFKZDUUDQWl:KHQQRRQHFDPHWR
VXIILFLHQW WR SURYLGH D EDVLV IRU WKH PDJLVWUDWH MXGJHjV       WKHGRRUWKHRIILFHUVZDLWHGEHWZHHQILYHDQGWHQVHFRQGV
FRQFOXVLRQ WKDW LW ZDV SUREDEOH WKDW HYLGHQFH RI D FULPH      EHIRUHEUHDFKLQJWKHRXWHUVHFXULW\GRRUZLWKDUDP'XULQJ
ZRXOGEHIRXQGDW7RUEHWW6WUHHW                                 WKLV WLPH WKHUH ZHUH DW OHDVW IRXU RIILFHUV WKDW FRQWLQXHG
                                                                       \HOOLQJm3ROLFHVHDUFKZDUUDQWGRQRWUHVLVWl7KHRIILFHUV
 3LQVRQ FRQWHQGV WKDW WKH DIILGDYLW XQGHUO\LQJ WKH VHDUFK       DJDLQXVHGWKHUDPWRVPDVKDQLQQHUGRRURIWKHUHVLGHQFH
ZDUUDQWIDLOHGWRVKRZSUREDEOHFDXVH6SHFLILFDOO\3LQVRQ
    8QLWHG6WDWHVY3LQVRQ                        1R       1R                         8QLWHG6WDWHVY3LQVRQ         

TXDQWLWLHVRIGUXJVPLJKWEHGLVSRVHGRI%DWHV)GDW          DUJXHVWKDWWKHDIILGDYLWZDVDmEDUHERQHVlDIILGDYLWODFNLQJ
mRIILFHUVPXVWKDYHPRUHWKDQDPHUHKXQFKRUVXVSLFLRQ           LQIRUPDWLRQ DERXW WKH FRQILGHQWLDO LQIRUPDQW DQG KLV
EHIRUHDQH[LJHQF\FDQH[FXVHWKHQHFHVVLW\IRUNQRFNLQJDQG           UHOLDELOLW\ ODFNLQJ LQIRUPDWLRQ RQ WKH mEX\l E\ WKH
DQQRXQFLQJl8QLWHG6WDWHVYsRKQVRQ)G              FRQILGHQWLDO LQIRUPDQW DQG ODFNLQJ HYLGHQFH WKDW RQJRLQJ
WK&LUmERLOHUSODWHODQJXDJHFRQFHUQLQJWKHSRVVLEOH         GUXJWUDIILFNLQJZDVWDNLQJSODFHLQWKHUHVLGHQFH
GHVWUXFWLRQRIHYLGHQFHZRXOGQRWEHVXIILFLHQWl
                                                                          $VVXSSRUWIRUKLVLQVXIILFLHQF\DUJXPHQW3LQVRQFLWHVWKH
  .QRZOHGJHE\ODZHQIRUFHPHQWRIILFHUVWKDWWKHRFFXSDQWV             HQEDQFGHFLVLRQLQ8QLWHG6WDWHVY$OOHQ)GWK
RIWKHSUHPLVHVDUHDUPHGDQGGDQJHURXVFDQEHDQLPSRUWDQW            &LUDQG8QLWHG6WDWHVY:HDYHU)GWK
IDFWRU7KLVFRXUWKDVH[SODLQHGm7KHSUHVHQFHRIDZHDSRQ           &LU3LQVRQDUJXHVWKDWWKH$OOHQDIILGDYLWFRQWDLQHG
FUHDWHVDQH[LJHQWFLUFXPVWDQFHSURYLGHGWKHJRYHUQPHQWLV            PRUHLQIRUPDWLRQDERXWWKHLQIRUPDQWWKDQWKHDIILGDYLWLQ
DEOHWRSURYHWKH\SRVVHVVHGLQIRUPDWLRQWKDWWKHVXVSHFWZDV          WKLV FDVH  7R WKH FRQWUDU\ WKHUH LV D VWURQJHU VKRZLQJ RI
DUPHG DQG OLNHO\ WR XVH D ZHDSRQ RU EHFRPH YLROHQW      UHOLDELOLW\IRUWKHFRQILGHQWLDOLQIRUPDQWLQWKHLQVWDQWFDVH
>H@YLGHQFHWKDWILUHDUPVDUHZLWKLQDUHVLGHQFHE\LWVHOILVQRW     WKDQWKHUHZDVLQ$OOHQ,QERWKFDVHVWKHRIILFHUVSHUVRQDOO\
VXIILFLHQWWRFUHDWHDQH[LJHQF\WRRIILFHUVZKHQH[HFXWLQJD          NQHZ WKH FRQILGHQWLDO LQIRUPDQW QDPHG WKH FRQILGHQWLDO
ZDUUDQWl%DWHV)GDWLQWHUQDOFLWDWLRQVRPLWWHG         LQIRUPDQWRQO\WRWKHPDJLVWUDWHMXGJHDQGFKDUDFWHUL]HGWKH
3LQVRQFRUUHFWO\DUJXHVWKDWWKHUHLVQRHYLGHQFHLQWKHUHFRUG        LQIRUPDQW DV UHOLDEOH  7KH $OOHQ DIILGDYLW UHFLWHG WKDW WKH
WKDWWKHRIILFHUVDQWLFLSDWHGWKDWDQ\GHIHQVLYHPHDVXUHVKDG          RIILFHUNQHZWKHLQIRUPDQWIRUILYH\HDUV+HUHZKLOH2IILFHU
EHHQWDNHQE\3LQVRQRURWKHUVLQWKHUHVLGHQFH1RUGRHV             0DFNDOOGLGQRWVWDWHQRZORQJKHKDVNQRZQWKHFRQILGHQWLDO
2IILFHU0DFNDOOVD\WKDW3LQVRQKDGDKLVWRU\IRUYLROHQFHRU          LQIRUPDQWKHGLGVWDWHWKDWKHmNQRZVVDLG&,LVUHOLDEOHIURP
WKDWKHKDGEHHQLQIRUPHGWKDW3LQVRQZRXOGXVHDQ\ZHDSRQV            SDVWLQIRUPDWLRQUHFHLYHGIURPVDLG&,l8QOLNH$OOHQZKHUH
WRGHIHQGWKHUHVLGHQFH6HH6SLNHV)GDW%DWHV          WKHPDJLVWUDWHMXGJHKDGQRZD\RIGHWHUPLQLQJWKHW\SHRI
)GDW                                                        FULPLQDODFWLYLW\ZLWKZKLFKWKHLQIRUPDQWZDVIDPLOLDUWKH
                                                                       PDJLVWUDWHMXGJHLQWKLVFDVHNQHZH[DFWO\WKHW\SHRIFULPLQDO
  +RZHYHU ZKHQ DQDO\]LQJ ZKHWKHU WKH RIILFHUVj RYHUDOO          DFWLYLW\ WKH FRQILGHQWLDO LQIRUPDQW KDG H[SHULHQFHG  7KH
DFWLRQVZHUHUHDVRQDEOHWKLVFRXUWKDVHPSKDVL]HGWKDWWKH            DIILGDYLWVWDWHGWKDWWKHFRQILGHQWLDOLQIRUPDQWZDVIDPLOLDU
WLPH RI GD\ ZKHQ H[HFXWLQJ D VHDUFK ZDUUDQW LV FULWLFDO LQ   ZLWKFRFDLQHIURPmSDVWH[SHULHQFHDQGH[SRVXUHlDQGWKDWKH
HVWDEOLVKLQJUHDVRQDEOHQHVV7KLVFRXUWH[SODLQHG                   KDG SURYLGHG LQIRUPDWLRQ WR WKH SROLFH LQ WKH SDVW ZKLFK
                                                                       UHVXOWHGmLQWKHODZIXOUHFRYHU\RIQDUFRWLFVl)XUWKHUPRUH
     7KH DPRXQW RI WLPH RIILFHUV QHHG WR ZDLW EHIRUH           WKH FRQILGHQWLDO LQIRUPDQWjV EDVLV RI NQRZOHGJH RI WKH
     HQWHULQJDKRPHQHFHVVDULO\GHSHQGVRQKRZPXFK                 FULPLQDO DFWLYLW\ ZDV WKDW KH KDG SHUVRQDOO\ SXUFKDVHG
     WLPHLWZRXOGWDNHIRUDSHUVRQLQWKHKRXVHWRRSHQ              FRFDLQHDW7RUEHWW6WUHHW8QOLNH$OOHQZKHUHWKHUHZDV
     WKHGRRU:KHQWKHSROLFHH[HFXWHDZDUUDQWLQWKH                QR FRUURERUDWLRQ RI WKH LQIRUPDQWjV SXUFKDVH RI GUXJV WKH
     GHDGRIQLJKWRUKDYHVRPHRWKHUUHDVRQWREHOLHYH                DIILGDYLW LQ WKLV FDVH FRQWDLQHG 2IILFHU 0DFNDOOjV SHUVRQDO
     WKDWDSURPSWUHVSRQVHIURPWKHKRPHRZQHUZRXOG                   REVHUYDWLRQKLVSDWGRZQRIWKHLQIRUPDQWEHIRUHDQGDIWHU
     EHXQOLNHO\WKHOHQJWKRIWLPHWKHRIILFHUVVKRXOG               WKH SXUFKDVH RI WKH QDUFRWLFV DQG WKH IDFW WKDW WKH GUXJV
     ZDLW LQFUHDVHV 6HH *ULIILQ Y 8QLWHG 6WDWHV           SXUFKDVHG E\ WKH FRQILGHQWLDO LQIRUPDQW ZHUH ODWHU WHVWHG
     $G'&$SSHQWHULQJDSHUVRQjV                 SRVLWLYHIRUFRFDLQHEDVH$OORIWKLVLQIRUPDWLRQZDVFOHDUO\
     KRPHDIWHUDWKLUW\VHFRQGZDLWDWDPZDVKHOG             VWDWHGLQWKHDIILGDYLWDQGWKHDIILGDYLWPHHWVWKH$OOHQWHVW
     WR EH XQUHDVRQDEOH EHFDXVH µDW WKDW WLPH RI QLJKW        ,Q$OOHQWKLVFRXUWKHOGm>Z@KHUHDNQRZQSHUVRQQDPHGWR
       8QLWHG6WDWHVY3LQVRQ                            1R        1R                        8QLWHG6WDWHVY3LQVRQ       

WKH PDJLVWUDWH WR ZKRVH UHOLDELOLW\ DQ RIILFHU DWWHVWV ZLWK          RUZKHWKHUWKHSROLFHUDQJWKHGRRUEHOOmEXWUDWKHURQKRZ
VRPH GHWDLO VWDWHV WKDW KH KDV VHHQ D SDUWLFXODU FULPH DQG         WKHVHZRUGVDQGRWKHUDFWLRQVRIWKHSROLFHZLOOEHSHUFHLYHG
SDUWLFXODUHYLGHQFHLQWKHUHFHQWSDVWDQHXWUDODQGGHWDFKHG               E\WKHRFFXSDQWl,GDWFLWDWLRQRPLWWHGm7KHSURSHU
PDJLVWUDWH PD\ EHOLHYH WKDW HYLGHQFH RI D FULPH ZLOO EH              WULJJHUSRLQWWKHUHIRUHLVZKHQWKRVHLQVLGHVKRXOGKDYHEHHQ
IRXQGl)GDW7KLVFRXUWFRQWLQXHGm7KHUHLVRI               DOHUWHGWKDWWKHSROLFHZDQWHGHQWU\WRH[HFXWHDZDUUDQWl,G
FRXUVHQRJXDUDQWHHWKDWWKHHYLGHQFHZLOOVWLOOEHWKHUHEXW               7KH IDFWVSHFLILF LQTXLU\ QHHGHG WR GHWHUPLQH WKH
WKHPDJLVWUDWHPD\GHWHUPLQHWKDWVXFKDSUREDELOLW\H[LVWV                  UHDVRQDEOHQHVV RI WKH LQWHULP EHWZHHQ DQQRXQFHPHQW DQG
7KLVKROGLQJUHTXLUHVHYLGHQFHVXIILFLHQWWRSURYLGHDEDVLV                  HQWU\ PDQGDWHV FRQVLGHUDWLRQ RI D QXPEHU RI IDFWRUV
IRUWKDWMXGJPHQWl,G+RZHYHUFHUWDLQW\LVQRWUHTXLUHG                  LQFOXGLQJ WKH REMHFW RI WKH VHDUFK SRVVLEOH GHIHQVLYH
DQGDPDJLVWUDWHMXGJHjVGHWHUPLQDWLRQRISUREDEOHFDXVHLV                   PHDVXUHVWDNHQE\UHVLGHQWVRIWKHGZHOOLQJWREHVHDUFKHG
JLYHQJUHDWGHIHUHQFHE\DUHYLHZLQJFRXUW,GDW                 WLPHRIGD\DQGPHWKRGRIDQQRXQFHPHQW,GDW
   3LQVRQQH[WDUJXHVWKDWWKHUHZDVQRVXEVWDQWLDOEDVLVLQWKH                 :KLOHWKHFRXUWVKDYHQRWHVWDEOLVKHGDPLQLPXPWLPHWKDW
DIILGDYLWWRFRQFOXGHWKDWHYLGHQFHRIWKHFULPHZDVOLQNHGWR                RIILFHUV PXVW ZDLW WKHUH LV VXEVWDQWLDO SUHFHGHQW IRU WKH
WKHSUHPLVHVWREHVHDUFKHG+RZHYHU3LQVRQjVUHOLDQFHRQ                   SURSRVLWLRQ WKDW D ZDLW RI QR PRUH WKDQ ILIWHHQ VHFRQGV
8QLWHG6WDWHVY6DYRFD)GWK&LU                   EHWZHHQDQQRXQFHPHQWDQGHQWU\PD\EHVXIILFLHQWZKHQD
UHVXOWYDFDWHG)GWK&LU8QLWHG6WDWHV                  GUXJVHDUFKZDUUDQWLVH[HFXWHGJLYHQWKHHDVHZLWKZKLFK
Y/RFNHWW)GWK&LU8QLWHG6WDWHVY                   QDUFRWLFVHYLGHQFHFDQEHGHVWUR\HG6SLNHV)GDW
*UDPOLFK)GWK&LUFHUWGHQLHG86                    KROGLQJILIWHHQWRWKLUW\VHFRQGVVXIILFLHQW8QLWHG6WDWHV
DQG8QLWHG6WDWHVY)ODQDJDQ)G                  Y*DWHZRRG)GWK&LUFHUWGHQLHG
WK&LULVPLVSODFHG                                                86 WHQWRWZHQW\VHFRQGVVXIILFLHQW$VD
                                                                              EDVLVIRULWVDUJXPHQWWKDWWKLVFRXUWXSKHOGDZDLWRIRQO\ILYH
  ,Q8QLWHG6WDWHVY/RFNHWWWKHFRXUWKHOGWKDWWKHDIILGDYLW              VHFRQGVWKHJRYHUQPHQWFLWHV8QLWHG6WDWHVYsRKQVRQ1R
GLGQRWVXSSRUWDVKRZLQJRISUREDEOHFDXVHEHFDXVHWKHUH                       :/  WK &LU 0D\  
ZDVDPLVVLQJOLQNLHWKDWWKHG\QDPLWHZDVEHLQJVWRUHGDW                XQSXEOLVKHG RSLQLRQ  7KLV FRXUW LQ sRKQVRQ KHOG WKDW D
/RFNHWWjVUHVLGHQFH)GDW/LNHZLVHLQ8QLWHG                 VHDUFKZDVYDOLGHYHQWKRXJKWKHUHZDVRQO\DILYHVHFRQG
6WDWHVY)ODQDJDQWKHFRXUWIRXQGWKDWWKHUHZDVQRWKLQJLQ                 ZDLWEHWZHHQNQRFNLQJDQGHQWHULQJZKHQWKHRIILFHUNQHZ
WKHDIILGDYLWWRFRQQHFWWKHLWHPVEXUJODUL]HGLQ+RXVWRQWR                  WKDWGUXJVZHUHSUHVHQWDVWKHUHVXOWRIDFRQWUROOHGGHOLYHU\
)ODQDJDQjV )RUW :RUWK UHVLGHQFH   )G DW   ,Q           :/DW7KHGUXJVZHUHSUHSDFNDJHGLQ
8QLWHG6WDWHVY*UDPOLFKWKHFRXUWFRQFOXGHGWKDWWKHUHZDV                 VPDOOTXDQWLWLHVWKHUHIRUHWKHFRXUWUHDVRQHGWKDWWKHRIILFHUV
QRSUREDEOHFDXVHEHFDXVHWKHDIILGDYLWGLGQRWPHQWLRQDQ\                  mFDQ UHDVRQDEO\ DVVXPH SHUVRQV ZLWK DFFHVV WR ZRUNLQJ
DFWLYLW\ WKDW FRQQHFWHG WKH GHIHQGDQWjV UHVLGHQFH WR WKH               SOXPELQJIDFLOLWLHVZLOOWU\WRGHVWUR\WKLVHYLGHQFHl,GDW
VPXJJOLQJRIFRQWUDEDQGWKDWRFFXUUHGILIW\PLOHVDZD\                  FLWLQJ 6SLNHV  )G DW   ,Q WKH LQVWDQW FDVH D
                                                                              FRQILGHQWLDOLQIRUPDQWKDGPDGHDFRQWUROOHGEX\RIFRFDLQH
                                                                              DQGKDGREVHUYHGmODUJHTXDQWLWLHVRIGUXJVl*HQHUDOO\WKH
                                                                             SUHVHQFHRIGUXJVOHVVHQVWKHWLPHRIILFHUVPXVWZDLWEHIRUH
     7KLV   FRXUW JUDQWHG WKH JRYHUQPHQWjV SHWLWLRQ IRU UHKHDULQJ WR
                                                                              HQWHULQJDUHVLGHQFHDIWHUDQQRXQFLQJWKHLUSUHVHQFH6SLNHV
FRQVLGHU WKH DSSOLFDWLRQ RI 8QLWHG 6WDWHV Y /HRQ  86  
WR WKH IDFWV RI WKDW FDVH :KLOH WKH DSSOLFDWLRQ RI /HRQ FKDQJHG WKH
                                                                              )GDW+RZHYHU3LQVRQFRUUHFWO\DUJXHVWKHUHLV
RXWFRPH RI WKH FDVH E\ UHYHUVLQJ WKH SDQHOjV RULJLQDO GHFLVLRQ WR JUDQW WKH   QRWHVWLPRQ\LQWKLVFDVHFRQFHUQLQJWKHRIILFHUVjEHOLHIDVWR
PRWLRQ WR VXSSUHVV LW GLG QRW FKDQJH WKH SDQHOjV RULJLQDO FRQFOXVLRQ WKDW    WKH HDVH ZLWK ZKLFK WKH REMHFW RI WKHLU VHDUFK WKH ODUJH
WKH VHDUFK ZDUUDQW DIILGDYLW IDLOHG WR HVWDEOLVK SUREDEOH FDXVH
       8QLWHG6WDWHVY3LQVRQ                     1R       1R                         8QLWHG6WDWHVY3LQVRQ         

  7KH NQRFN DQG DQQRXQFH UXOH  UHGXFHV WKH          )GDW,Q8QLWHG6WDWHVY6DYRFDWKLVFRXUWKHOGWKDW
SRWHQWLDO IRU YLROHQFH WR ERWK WKH SROLFH RIILFHUV DQG WKH    WKHDIILGDYLWGLGQRWHVWDEOLVKSUREDEOHFDXVHWREHOLHYHWKDW
RFFXSDQWVRIWKHKRXVHLQWRZKLFKHQWU\LVVRXJKWFXUEV            DPRWHOURRPORFDWHGPLOHVDZD\IURPDEDQNUREEHU\
WKHQHHGOHVVGHVWUXFWLRQRISULYDWHSURSHUW\DQGSURWHFWV          ZRXOGFRQFHDOmIUXLWVDQGLQVWUXPHQWDOLWLHVlRIWKHUREEHU\
WKH LQGLYLGXDOjV ULJKW WR SULYDF\ LQ KLV RU KHU RZQ KRXVH   )GDW,QWKHFDVHDWEDUWKHDIILGDYLWGHVFULEHV
8QLWHG6WDWHVY%DWHV)GWK&LU7KH         KRZ ZLWKLQ WKH SDVW  KRXUV 2IILFHU 0DFNDOO VHQW WKH
NQRFNDQGDQQRXQFHUXOHmIRUPVDSDUWRIWKHUHDVRQDEOHQHVV            FRQILGHQWLDO LQIRUPDQW ZLWK SUHSKRWRFRSLHG EX\ PRQH\
LQTXLU\XQGHUWKH)RXUWK$PHQGPHQWl:LOVRQY$UNDQVDV              REVHUYHG WKH FRQILGHQWLDO LQIRUPDQW HQWHU DQG H[LW 
 86    7KLV FRXUW KDV HPSKDVL]HG WKDW      7RUEHWW6WUHHWDQGUHFRYHUHGWKHGUXJVWKDWWKHFRQILGHQWLDO
SROLFH PXVW ZDLW D UHDVRQDEOH SHULRG RI WLPH EHIRUH            LQIRUPDQWSXUFKDVHGLQWKHUHVLGHQFH2EYLRXVO\WKLVIDFWXDO
mSK\VLFDOO\IRUFLQJWKHLUZD\LQWRDUHVLGHQFHl8QLWHG6WDWHV        HYLGHQFH OLQNV WKH VDOH RI LOOHJDO GUXJV WR WKH VHDUFKHG
Y 'LFH  )G   WK &LU  FLWLQJ 8QLWHG    SUHPLVHVDW7RUEHWW6WUHHW
6WDWHVY)LQFK)GWK&LU)DLOXUH
WRNQRFNDQGDQQRXQFHSULRUWRIRUFLEO\HQWHULQJDORFDWLRQWR            3LQVRQ DUJXHV WKDW WKH DIILGDYLW ODFNV WKH QDPH RU D
H[HFXWH D VHDUFK ZDUUDQW DEVHQW H[LJHQW FLUFXPVWDQFHV LV      GHVFULSWLRQ RI WKH SHUVRQ IURP ZKRP WKH FRQILGHQWLDO
XQUHDVRQDEOHXQGHUWKH)RXUWK$PHQGPHQW'LFH)G               LQIRUPDQWSXUFKDVHGWKHGUXJV$VDEDVLVIRUWKLVDUJXPHQW
DW7RGHWHUPLQHZKHWKHURIILFHUVKDGFRPSOLHGZLWKWKH           3LQVRQ FLWHV 8QLWHG 6WDWHV Y $OOHQ GLVFXVVHG VXSUD DQG
NQRFN DQG DQQRXQFH UXOH UHTXLUHV WKH FRXUW WR DQDO\]H WKH     8QLWHG6WDWHVY&DPSEHOO)GWK&LU,Q
IDFWVDQGFLUFXPVWDQFHVRQDFDVHE\FDVHEDVLV5LFKDUGVY          $OOHQWKHDIILGDYLWUHFLWHGWKDWWKHLQIRUPDQWREVHUYHGWKDW
:LVFRQVLQ86                                  msRKQ'RHDOLDV5HG'RJlUHVLGLQJDW1RUWK0DUNHW
                                                                       6WUHHW ZDV LQ SRVVHVVLRQ RI FRFDLQH   )G DW   ,Q
  ,Q WKH LQVWDQW FDVH 2IILFHU 0DFNDOO WHVWLILHG WKDW WKH      &DPSEHOOWKHDIILGDYLWLQGLFDWHGWKDWZLWKLQWKHSDVWKRXUV
RIILFHUVZKRH[HFXWHGWKHVHDUFKZDUUDQWZDLWHGDERXWILYH           DFRQWUROOHGSXUFKDVHRIDFDOLEHUKDQGJXQKDGEHHQPDGH
WRWHQVHFRQGVEHWZHHQDQQRXQFLQJWKHLUHQWU\DQGIRUFLQJ              IURPWKHVXVSHFWRIWKHVHDUFKDWWKHVSHFLILHGDGGUHVV
HQWU\3LQVRQDGPLWVWKDWWKHRIILFHUVNQRFNHGDQGDQQRXQFHG          )GDW1HLWKHUFDVHKRZHYHUVXJJHVWVWKDWWKHQDPH
WKHLUSUHVHQFHDQGDXWKRULW\EXWKHDUJXHVWKDWWKH\GLGQRW          RUDGHVFULSWLRQRIDSHUVRQLVUHTXLUHGWRHVWDEOLVKSUREDEOH
ZDLWDUHDVRQDEOHOHQJWKRIWLPHEHIRUHHQWHULQJ                     FDXVH IRU D VHDUFK ZDUUDQW  3LQVRQ DOVR FRQWHQGV WKDW WKH
                                                                       DIILGDYLWODFNVLQIRUPDWLRQRQWKHRZQHURIWKHSURSHUW\7KH
   :HQHHGQRWGHFLGHZKHWKHUDZDLWRIILYHWRWHQVHFRQGV           6XSUHPH &RXUW KDV VWDWHG WKDW m>W@KH FULWLFDO HOHPHQW LQ D
VWDQGLQJ DORQH LV DGHTXDWH XQGHU WKH NQRFN DQG DQQRXQFH       UHDVRQDEOH VHDUFK LV QRW WKDW WKH RZQHU RI WKH SURSHUW\ LV
UXOHEHFDXVHWKH)RXUWK$PHQGPHQWGLFWDWHVRQO\WKDWWKH              VXVSHFWHG RI FULPH EXW WKDW WKHUH LV UHDVRQDEOH FDXVH WR
RIILFHUVjRYHUDOODFWLRQVEHUHDVRQDEOHQRWWKDWWKH\ZDLWD          EHOLHYHWKDWWKHVSHFLILFµWKLQJVjWREHVHDUFKHGIRUDQGVHL]HG
SUHVFULEHGOHQJWKRIWLPHEHIRUHIRUFLEOHHQWU\6SLNHV          DUHORFDWHGRQWKHSURSHUW\WRZKLFKHQWU\LVVRXJKWl=XUFKHU
)GDW7KHIRFXVRIWKHmNQRFNDQGDQQRXQFHlUXOH            Y6WDQIRUG'DLO\86
mLVSURSHUO\QRWRQZKDWµPDJLFZRUGVjDUHVSRNHQE\SROLFHl
                                                                            >:@KLOH SUREDEOH FDXVH IRU DUUHVW UHTXLUHV
                                                                            LQIRUPDWLRQ MXVWLI\LQJ D UHDVRQDEOH EHOLHI WKDW D
     
     6LQFH WKLV FDVH LQYROYHV D VWDWH ZDUUDQW H[HFXWHG E\ VWDWH ODZ
                                                                            FULPH KDV EHHQ FRPPLWWHG DQG WKDW D SDUWLFXODU
HQIRUFHPHQW ZH QHHG QRW FRQVLGHU WKH FRGLILFDWLRQ RI WKH NQRFN DQG         SHUVRQFRPPLWWHGLWDVHDUFKZDUUDQWPD\EHLVVXHG
DQQRXQFH UXOH LQ  86&   6HH 8QLWHG 6WDWHV Y *DWHZRRG         RQ D FRPSODLQW ZKLFK GRHV QRW LGHQWLI\ DQ\
)G   WK &LU 
    8QLWHG6WDWHVY3LQVRQ                           1R       1R                       8QLWHG6WDWHVY3LQVRQ       

     SDUWLFXODUSHUVRQDVWKHOLNHO\RIIHQGHU%HFDXVHWKH                WKHZDUUDQWZDVLVVXHGDQG H[HFXWHG,WLVUHDVRQDEOHWKDW
     FRPSODLQWIRUDVHDUFKZDUUDQWLVQRWµILOHGDVWKH                  WKUHH GD\V DIWHU WKH GUXJ SXUFKDVH WKDW SROLFH ZRXOG ILQG
     EDVLVRIDFULPLQDOSURVHFXWLRQjLWQHHGQRWLGHQWLI\               QDUFRWLFVUHODWHGSDUDSKHUQDOLDDQGRUWKHPDUNHGPRQH\LQ
     WKH SHUVRQ LQ FKDUJH RI WKH SUHPLVHV RU QDPH WKH            WKHUHVLGHQFH7KHUHIRUHWKHZDUUDQWZDVQRWVWDOH
     SHUVRQ LQ SRVVHVVLRQ RU DQ\ RWKHU SHUVRQ DV WKH
     RIIHQGHU                                                              ,QWKHLQVWDQWFDVH2IILFHU0DFNDOOVRXJKWDXWKRUL]DWLRQWR
                                                                          VHDUFK IRU HYLGHQFH RI VXVSHFWHG GUXJ WUDIILFNLQJ  2IILFHU
,GFLWDWLRQRPLWWHG7KHUHIRUHDQDIILGDYLWLQVXSSRUWRID          0DFNDOO WHVWLILHG DW WKH VXSSUHVVLRQ KHDULQJ WKDW WKH
VHDUFKZDUUDQWGRHVQRWQHHGWRQDPHRUGHVFULEHWKHSHUVRQ               FRQILGHQWLDOLQIRUPDQWREVHUYHGODUJHTXDQWLWLHVRIGUXJVDQG
ZKRVROGWKHGUXJVRUQDPHWKHRZQHURIWKHSURSHUW\$VWKH             PRQH\DQGZHDSRQVLQWKHUHVLGHQFH+HGLGQRWLQFOXGHWKLV
6XSUHPH&RXUWKDVVWDWHGm>V@HDUFKZDUUDQWVDUHQRWGLUHFWHG             LQIRUPDWLRQLQKLVDIILGDYLWHYHQWKRXJKLWZRXOGKDYHEHHQ
DW SHUVRQV WKH\ DXWKRUL]H WKH VHDUFK RI µSODFH>V@j DQG WKH      KLJKO\UHOHYDQWWRWKHPDJLVWUDWHMXGJHLQPDNLQJDSUREDEOH
VHL]XUHRIµWKLQJVjDQGDVDFRQVWLWXWLRQDOPDWWHUWKH\QHHG             FDXVHGHWHUPLQDWLRQ:HHPSKDVL]HWKDWDSUREDEOHFDXVH
QRW HYHQ QDPH WKH SHUVRQ IURP ZKRP WKH WKLQJV ZLOO EH           GHWHUPLQDWLRQFDQEHEDVHGRQO\XSRQWKHLQIRUPDWLRQWKHODZ
VHL]HGl,GDW                                                  HQIRUFHPHQWRIILFHUFRPPXQLFDWHVWRWKHPDJLVWUDWHMXGJH
                                                                          DQG WKDW WKH RPLVVLRQ RI UHOHYDQW LQIRUPDWLRQ IURP DQ
   3LQVRQQH[WFRQWHQGVWKDWWKHZDUUDQWZDVVWDOHDWWKHWLPH            DIILGDYLWFRXOGOHDGWRWKHVXSSUHVVLRQRIHYLGHQFHDQGWKH
LWZDVREWDLQHG7KLVFRXUWVWDWHGWKDWLQGHWHUPLQLQJZKHWKHU           GHPLVH RI D SURVHFXWLRQ  :KLOH ZH FRQFOXGH WKDW WKLV
HYLGHQFHLVVWDOHmWKHOHQJWKRIWLPHEHWZHHQWKHHYHQWVOLVWHG          DIILGDYLW SDVVHV FRQVWLWXWLRQDO PXVWHU WKH GHFLVLRQ ZRXOG
LQ WKH DIILGDYLW DQG WKH DSSOLFDWLRQ RI WKH ZDUUDQW ZKLOH       KDYHEHHQVLPSOHUKDGWKHRIILFHULQFOXGHGWKHFRQILGHQWLDO
FOHDUO\VDOLHQWLVQRWFRQWUROOLQJl8QLWHG6WDWHVY6SLNHV           LQIRUPDQWjVREVHUYDWLRQVLQKLVDIILGDYLW
 )G   WK &LU  FHUW GHQLHG  86
   ,Q6SLNHV WKLV FRXUW KHOG WKDW WKH WULDO FRXUW      7KHGLVWULFWFRXUWFRUUHFWO\GHWHUPLQHGXQGHUWKHVWDQGDUG
SURSHUO\GHQLHGWKHPRWLRQWRVXSSUHVVHYHQWKRXJKVRPHRI                DUWLFXODWHGLQWKHHQEDQF$OOHQGHFLVLRQWKDWWKHDIILGDYLWLQ
WKHHYHQWVLQFOXGHGLQWKHDIILGDYLWRFFXUUHGIRXU\HDUVEHIRUH           WKLVFDVHSURYLGHGVXIILFLHQWIDFWVIRUWKHPDJLVWUDWHMXGJHWR
DQGWKHRIILFHUKDGQRWDSSOLHGIRUWKHZDUUDQWXQWLOWHQGD\V            ILQGEDVHGXSRQWKHWRWDOLW\RIWKHFLUFXPVWDQFHVWKDWWKHUH
DIWHUGLVFRYHU\RIGUXJWUDIILFNLQJSDUDSKHUQDOLDLQWKHWUDVK           ZDVSUREDEOHFDXVHIRUWKHVHDUFK%HFDXVHZHILQGWKDWWKH
)GDW,Q8QLWHG6WDWHVY:RUGWKHFRXUWIRXQG               ZDUUDQWZDVLVVXHGXSRQSUREDEOHFDXVHZHQHHGQRWGHFLGH
WKDW SUREDEOH FDXVH IRU D VHDUFK ZDUUDQW H[LVWHG GHVSLWH          ZKHWKHUWKHJRRGIDLWKH[FHSWLRQDUWLFXODWHGLQ8QLWHG6WDWHV
SDVVDJHRIIRXUPRQWKVVLQFHWKHODVWGRFXPHQWHGGUXJVDOH               Y/HRQ86DSSOLHV
)GWK&LU,Q8QLWHG6WDWHVY)LQFK
WKLVFRXUWKHOGWKDWDVHDUFKZDUUDQWDIILGDYLWZDVVXIILFLHQWWR         &.QRFNDQG$QQRXQFH5XOH
HVWDEOLVKSUREDEOHFDXVHHYHQWKRXJKLWZDVILYHGD\VEHIRUH
WKH LVVXDQFH RI WKH ZDUUDQW WKDW WKH LQIRUPDQW KDG VHHQ             /DZHQIRUFHPHQWRIILFHUVPXVWNQRFNDQGDQQRXQFHWKHLU
FRFDLQHEHLQJVWRUHGDQGVROG)GWK&LU               SUHVHQFHDQGDXWKRULW\EHIRUHHQWHULQJDUHVLGHQFHWRH[HFXWH
  (YHQ LI D VLJQLILFDQW SHULRG RI WLPH HODSVHG LW LV    D ZDUUDQW  0LOOHU Y 8QLWHG 6WDWHV  86  
SRVVLEOHWKHPDJLVWUDWHMXGJHPD\LQIHUWKDWmDVHDUFKZRXOG              8QLWHG 6WDWHV Y 1DERUV  )G   WK &LU
XQFRYHUHYLGHQFHRIZURQJGRLQJl6SLNHV)GDW
+HUHWKHFRQWUROOHGSXUFKDVHE\WKHFRQILGHQWLDOLQIRUPDQW
WRRNSODFHRQRUDERXW$XJXVW2Q$XJXVW
