           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


 &,1'< ' 35(%,/,&+             ;
 +2//$1'                         
           3ODLQWLII$SSHOODQW   
                                     1R
                                  
            Y                     !
                                  
                                  
 *$</25' (17(57$,10(17            
 &203$1<GED:605DGLR 
          'HIHQGDQW$SSHOOHH 
                                 1
      $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
    IRUWKH0LGGOH'LVWULFWRI7HQQHVVHHDW1DVKYLOOH
  1Rn:LOOLDPs+D\QHVsU'LVWULFWsXGJH
                 6XEPLWWHG'HFHPEHU
                'HFLGHGDQG)LOHGsXO\
    %HIRUH6,/(5DQG%$7&+(/'(5&LUFXLWsXGJHV
                  +22''LVWULFWsXGJH




    
     7KH +RQRUDEOH sRVHSK 0 +RRG 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH
(DVWHUQ 'LVWULFW RI .HQWXFN\ VLWWLQJ E\ GHVLJQDWLRQ



                                   
     3UHELOLFK+ROODQGY*D\ORUG                    1R
      (QWHUWDLQPHQW&R

                      BBBBBBBBBBBBBBBBB
                           &2816(/
21 %5,()  0DWKHZ 5 =HQQHU %/$&.%851 	
0F&81(1DVKYLOOH7HQQHVVHHIRU$SSHOODQW6WHSKHQ3
6SDQQs6FRWW+LFNPDQ6+(55$5'	52(1DVKYLOOH
7HQQHVVHHIRU$SSHOOHH
                      BBBBBBBBBBBBBBBBB
                          23,1,21
                      BBBBBBBBBBBBBBBBB
  $/,&(0%$7&+(/'(5&LUFXLWsXGJH3ODLQWLII&LQG\
3UHELOLFK+ROODQG m3UHELOLFKl DSSHDOV WKH GLVWULFW FRXUWjV
JUDQWRIWKHGHIHQGDQWjVPRWLRQIRUVXPPDU\MXGJPHQWLQWKLV
DFWLRQFODLPLQJDYLRODWLRQRI7LWOH9,,RIWKH&LYLO5LJKWV$FW
RI  DV DPHQGHG  86&  HN  6SHFLILFDOO\
3UHELOLFKFODLPHGWKDWKHUHPSOR\HU*D\ORUG(QWHUWDLQPHQW
&RPSDQ\m:60lGLVFULPLQDWHGDJDLQVWKHURQWKHEDVLVRI
VH[ZKHQLWWHUPLQDWHGKHUHPSOR\PHQWWZRGD\VDIWHUVKH
LQIRUPHGKHUVXSHUYLVRUWKDWVKHZDVSUHJQDQW7KHGLVWULFW
FRXUWIRXQGWKDW3UHELOLFKKDGHVWDEOLVKHGDSULPDIDFLHFDVH
RISUHJQDQF\GLVFULPLQDWLRQDVZHOODVSUHWH[WEXWJUDQWHG
VXPPDU\ MXGJPHQW WR :60 EHFDXVH :60 GLG QRW KDYH
NQRZOHGJHRIKHUSUHJQDQF\ZKHQLWGHFLGHGWRWHUPLQDWHKHU
HPSOR\PHQW  :H DJUHH ZLWK WKH MXGJPHQW EXW QRW WKH
UHDVRQLQJRIWKHGLVWULFWFRXUW$FFRUGLQJO\ZHZLOODIILUP
EXW IRU UHDVRQV GLIIHUHQW IURP WKRVH RIIHUHG E\ WKH GLVWULFW
FRXUW
                       %$&.*5281'
  &LQG\ 3UHELOLFK+ROODQG EHJDQ KHU HPSOR\PHQW ZLWK
*D\ORUG (QWHUWDLQPHQW &RPSDQ\ RQ 0DUFK   DQG
ZRUNHG DW WKH GHIHQGDQWjV :60 UDGLR VWDWLRQ XQWLO
1RYHPEHU2ULJLQDOO\3UHELOLFKZDVHPSOR\HGDV
1HZ %XVLQHVV $VVLVWDQW WR *LQQ\ 6SHDNV  2Q sDQXDU\ 
 ERWK VKH DQG 6SHDNV ZHUH SURPRWHG DQG 3UHELOLFK
   3UHELOLFK+ROODQGY*D\ORUG                 1R      1R                3UHELOLFK+ROODQGY*D\ORUG          
     (QWHUWDLQPHQW&R                                                                                   (QWHUWDLQPHQW&R

KDVWKHUHIRUHZKROO\IDLOHGWRSUHVHQWHYLGHQFHIURPZKLFK         DVVXPHG WKH SRVLWLRQ RI 1HZ %XVLQHVV 'HYHORSPHQW
WKHMXU\FRXOGLQIHUWKDW3DGJHWWKDGDQ\NQRZOHGJHRIKHU         &RRUGLQDWRU
SUHJQDQF\DWWKHWLPHKHGHFLGHGWRGLVFKDUJHKHU:LWKRXW
HYLGHQFH WR VXSSRUW HYHQ DQ LQIHUHQFH WKDW 3DGJHWW KDG       ,QsXO\6SHDNVUHVLJQHGKHUSRVLWLRQWRVWDUWKHURZQ
NQRZOHGJH RI WKH SUHJQDQF\ ZKHQ KH PDGH WKDW GHFLVLRQ     EXVLQHVVDQG3UHELOLFKGHFLGHGWRUHVLJQDWWKLVWLPHDVZHOO
3UHELOLFKFDQQRWHVWDEOLVKDQ\QH[XVEHWZHHQKHUSUHJQDQF\         8QWLOWKLVSRLQWLQKHUHPSOR\PHQWZLWK:603UHELOLFKKDG
DQGWKHDGYHUVHHPSOR\PHQWGHFLVLRQWKHIRXUWKSURQJRID         UHFHLYHGVDWLVIDFWRU\SHUIRUPDQFHHYDOXDWLRQVDQGQRQHRI
SULPDIDFLHFDVHRISUHJQDQF\GLVFULPLQDWLRQ                      KHUVXSHUYLVRUVKDGH[SUHVVHGDQ\FRQFHUQVDERXWKHUDELOLW\
                                                                   WRSHUIRUPKHUMRE
                      &21&/86,21
                                                                      %HFDXVH :60 VXSHUYLVRUV ZHUH FRQFHUQHG WKDW WKH
  )RUWKHIRUHJRLQJUHDVRQVZHFRQFOXGHWKDW3UHELOLFKKDV        FRQWHPSRUDQHRXVUHVLJQDWLRQVRI6SHDNVDQG3UHELOLFKZRXOG
IDLOHGWRSUHVHQWHYLGHQFHVXIILFLHQWWRHVWDEOLVKDSULPDIDFLH   GLVDGYDQWDJHWKHFOLHQWVZLWKZKRPWKH\ZRUNHG6XSHUYLVRU
FDVHRISUHJQDQF\GLVFULPLQDWLRQ$FFRUGLQJO\ZHDIILUPWKH      sRKQ3DGJHWWRIIHUHG3UHELOLFKVRPHLQFHQWLYHVWRUHPDLQ
MXGJPHQWRIWKHGLVWULFWFRXUWGLVPLVVLQJWKHFRPSODLQW           LQFOXGLQJ ZKDW KH ODEHOHG DV D  PRQWKO\ mRYHUULGHl
                                                                   DERYHKHUQRUPDOVDODU\LQH[FKDQJHIRUKHUDFFRPSOLVKLQJD
                                                                   OLVWRIILYHH[WUDJRDOVDQGDGGLWLRQDOSHUPRQWKRXWRI
                                                                   KLVSHUVRQDOIXQGV3DGJHWWVDLGWKDWWKLVDUUDQJHPHQWZRXOG
                                                                   EHUHHYDOXDWHGDIWHUDSSUR[LPDWHO\IRXUWRILYHPRQWKV
                                                                      3UHELOLFKDFFHSWHGWKHRIIHUDQGDOPRVWLPPHGLDWHO\:60
                                                                   EHJDQWRUHFHLYHFRPSODLQWVDERXWKHUSHUIRUPDQFH3DGJHWW
                                                                   OHDUQHGIRUH[DPSOHWKDW3UHELOLFKKDGVRFLDOL]HGUDWKHUWKDQ
                                                                   SHUIRUPLQJ KHU GXWLHV DW D :60VSRQVRUHG 9DQGHUELOW
                                                                   WDLOJDWHSDUW\KDGIDLOHGWRDSSHDUDWDFHOHEULW\UDFHWRRSHQ
                                                                   WKHJDWHIRUDFOLHQWJHQHUDOO\DUULYHGODWHWRPHHWLQJVPLVVHG
                                                                   GHDGOLQHVDQGWRRNH[FHVVLYHO\ORQJOXQFKEUHDNV3DGJHWW
                                                                   DOVRUHFHLYHGUHSRUWVWKDWFOLHQWVDQGVXSSRUWVWDIIUHIXVHGWR
                                                                   ZRUN ZLWK KHU  ,Q VSLWH RI WKHVH SHUIRUPDQFH SUREOHPV
                                                                   3UHELOLFKUHFHLYHGDOORIKHUPRQWKO\ERQXVHV
                                                                      $WDQXQVSHFLILHGWLPHLQODWH6HSWHPEHURUHDUO\2FWREHU
                                                                   3DGJHWWDQGDQRWKHUVXSHUYLVRU7RP/DIIH\PHWZLWK
                                                                   3UHELOLFKWRGLVFXVVKHUSHUIRUPDQFH7KHWKUHHPHWDJDLQLQ
                                                                   ODWH2FWREHURUHDUO\1RYHPEHUDW3UHELOLFKjVSURPSWLQJ$W
                                                                   WKDWPHHWLQJ3UHELOLFKDGPLWWHGWKDWVKHKDGmFKHFNHGRXWIRU
                                                                   D VKRUW SHULRG RI WLPHl DQG WKDW m>KHU@ KHDG ZDV QRW 
                                                                   SHUFHQWLQWKHJDPHlEXWWKDWVKHZRXOGWU\KDUGHU6KHDOVR
     3UHELOLFK+ROODQGY*D\ORUG                   1R       1R                 3UHELOLFK+ROODQGY*D\ORUG            
      (QWHUWDLQPHQW&R                                                                                       (QWHUWDLQPHQW&R

FRQFHGHGWKDWVKHKDGEHHQLQWHUYLHZLQJZLWKDQRWKHUUDGLR             QRWNQRZVKHZDVl0LOOHUY$P)DPLO\0XW,QV&R
VWDWLRQ                                                               )GWK&LULWDOLFVLQRULJLQDO
  :60jVQRUPDOGLVFLSOLQHSURFHGXUHLQYROYHVDIRXUVWHS                 2XUUHYLHZRIRXU+DPDQGHFLVLRQWKH$'$FDVHVDQGWKH
SURFHVV)LUVWWKHHPSOR\HHLVJLYHQDYHUEDOZDUQLQJWKH           ODZ RI RWKHU FLUFXLWV DGGUHVVLQJ  WKH LVVXH OHDGV XV WR WKH
QH[WRIIHQVHUHVXOWVLQDZULWWHQZDUQLQJIRUDWKLUGRIIHQVH        FRQFOXVLRQ WKDW LQ RUGHU WR HVWDEOLVK WKH IRXUWK SURQJ RI D
WKH HPSOR\HH UHFHLYHV D ILQDO ZULWWHQ QRWLFH  ,I WKHUH LV   SULPD IDFLH FDVH RI SUHJQDQF\ GLVFULPLQDWLRQ WKDW LV WKDW
DQRWKHU RIIHQVH WKH HPSOR\HH LV WHUPLQDWHG  3UHELOLFK         WKHUHLVDQH[XVEHWZHHQWKHHPSOR\HHjVSUHJQDQF\DQGWKH
UHFHLYHGDYHUEDOZDUQLQJEXW:60GLGQRWIROORZVWHSVWZR            DGYHUVHHPSOR\PHQWDFWLRQWKHHPSOR\HHEHDUVWKHEXUGHQRI
WKURXJK IRXU RI WKLV SURFHGXUH ZLWK KHU  5DWKHU ZKHQ        GHPRQVWUDWLQJWKDWWKHHPSOR\HUKDGDFWXDONQRZOHGJHRIKHU
3UHELOLFKjVSHUIRUPDQFHGLGQRWLPSURYHKHUVXSHUYLVRUVPHW           SUHJQDQF\DWWKHWLPHWKDWWKHDGYHUVHHPSOR\PHQWDFWLRQZDV
SULYDWHO\ WR GLVFXVV LQLWLDWLQJ WHUPLQDWLRQ SURFHGXUHV           WDNHQ
3UHELOLFKjV SHUVRQQHO ILOH UHYHDOV WKDW 3DGJHWW FDOOHG WKH
KXPDQUHVRXUFHVGHSDUWPHQWRQ1RYHPEHUWREHJLQ                   :KHWKHU :60 KDG NQRZOHGJH RI 3UHELOLFKjV
WKHWHUPLQDWLRQSURFHVV7KHVWDWHGUHDVRQIRUWHUPLQDWLRQ                   SUHJQDQF\
ZDVmZRUNTXDOLW\lDQGWKHGLVFKDUJHZDVVFKHGXOHGWRRFFXU
RQ1RYHPEHU3UHELOLFKDGPLWVWKDWVKHGRHVQRW                 3UHELOLFK KDV RIIHUHG QR HYLGHQFH ZKDWVRHYHU WKDW WKH
NQRZZKHQWKHGHFLVLRQWRWHUPLQDWHKHUZDVPDGH                      GHFLVLRQPDNHUV DW :60 KDG DFWXDO NQRZOHGJH RI KHU
                                                                       SUHJQDQF\DWWKHWLPHWKH\PDGHWKHGHFLVLRQWRGLVFKDUJHKHU
  6RPHWLPH GXULQJ WKH ZHHN SULRU WR WKH 7KDQNVJLYLQJ            3UHELOLFKFRQFHGHVWKDWVKHGRHVQRWNQRZZKHQWKDWGHFLVLRQ
KROLGD\ ZHHN URXJKO\ EHWZHHQ 1RYHPEHU  DQG                ZDV PDGH DQG 3DGJHWWjV WHVWLPRQ\ WKDW KH LQLWLDWHG WKH
3UHELOLFKOHDUQHGWKDWVKHZDVSUHJQDQW6KHVKDUHGWKLVQHZV         WHUPLQDWLRQSURFHVVRQ1RYHPEHUIRXUGD\VEHIRUH
ZLWKKHUFRZRUNHUV/LVD.D\DQGsLP.QRWWEXWVKHGRHVQRW           KH OHDUQHG RI 3UHELOLFKjV SUHJQDQF\ LV XQUHIXWHG  $QG
EHOLHYH WKDW WKH\ WROG 3DGJHWW RU /DIIH\ RU DQ\RQH HOVH DW   3UHELOLFKDGPLWVWKDWVKHKDVQRUHDVRQWREHOLHYHWKDW3DGJHWW
:60                                                                   NQHZ RI KHU SUHJQDQF\ SULRU WR 1RYHPEHU    6KH
                                                                       RIIHUHG QR HYLGHQFH WKDW KHU WZR FRZRUNHUV ZKR KDG
  2Q 0RQGD\ 1RYHPEHU   3UHELOLFK LQIRUPHG               NQRZOHGJHRIKHUSUHJQDQF\KDGVKDUHGWKDWLQIRUPDWLRQZLWK
3DGJHWW RI KHU SUHJQDQF\ DQG WROG KLP WKDW VKH ZRXOG EH      DQ\RQH LQ WKH RIILFH DQG LQ IDFW 3UHELOLFK DGPLWV WKDW VKH
QHHGLQJ WLPH RII IRU GRFWRUjV DSSRLQWPHQWV  3DGJHWW            GRHVQRWEHOLHYHWKDWWKH\GLG
GLVFKDUJHG KHU RQ 1RYHPEHU    ,Q D PHPR GDWHG
1RYHPEHU3DGJHWWVWDWHVWKDW3UHELOLFKZDVWHUPLQDWHGIRU            3UHELOLFKDUJXHVWKDWKHUGLVFKDUJHVRFORVHO\IROORZHGKHU
IDLOXUH WR LPSURYH KHU SHUIRUPDQFH IRU XQWLPHO\ ZRUN           DGYLVLQJ 3DGJHWW RI KHU SUHJQDQF\ WKDW WKH MXU\ ZRXOG EH
SURGXFWDQGIRUODFNRIDWWHQWLRQWRKHUSURMHFWV                    HQWLWOHGWRLQIHUWKDWWKHWZRZHUHFRQQHFWHG%XWWKDWLVQRW
                                                                       WKHLQIHUHQFHWKDWLVPDWHULDOKHUH7KHWHPSRUDOSUR[LPLW\
  $IWHUKHGLVFKDUJHG3UHELOLFK3DGJHWWSODFHGDWOHDVWWKUHH         EHWZHHQ3UHELOLFKjVUHYHODWLRQRIKHUSUHJQDQF\WR3DGJHWW
PHPRUDQGD LQ KHU ILOH  7KH ILUVW LV D WZRSDJH XQGDWHG     DQG3UHELOLFKjVEHLQJWROGRIKHUGLVFKDUJHGRHVQRWVXSSRUW
GRFXPHQWGHWDLOLQJVSHFLILFGDWHVDQGLQVWDQFHVRI3UHELOLFKjV         DQ LQIHUHQFH WKDW 3DGJHWW KDG NQRZOHGJH RI WKH SUHJQDQF\
LQVXERUGLQDWLRQ7KHVHFRQGLVGDWHG'HFHPEHUDQG            ZKHQnVHYHUDO GD\V EHIRUH 3UHELOLFK WROG KLP VKH ZDV
UHIOHFWVXQVROLFLWHGFRPPHQWVE\:60VDOHVSHRSOHZKRZHUH              SUHJQDQWnKHPDGHWKHGHFLVLRQWRGLVFKDUJHKHU3UHELOLFK
     3UHELOLFK+ROODQGY*D\ORUG                   1R       1R               3UHELOLFK+ROODQGY*D\ORUG        
      (QWHUWDLQPHQW&R                                                                                     (QWHUWDLQPHQW&R

GHPRQVWUDWLQJWKDWWKHLQGLYLGXDOZKRPDGHWKHGHFLVLRQWR             XQVDWLVILHGZLWK3UHELOLFKjVZRUNHWKLFDQGSURGXFW7KHWKLUG
GLVPLVVWKHHPSOR\HHLQIDFWNQHZRIWKHSUHJQDQF\+DPDQ             PHPRGDWHG'HFHPEHUGHWDLOVVL[W\VHYHQDFFRXQWV
Ys&3HQQH\&R1RV:/              RQZKLFK3UHELOLFKKDGIDLOHGWRFRPSOHWHZRUN3UHELOLFKjV
DWWK&LUsXQHXQSXEOLVKHG                          ILOHDOVRFRQWDLQVDPHPRGDWHG1RYHPEHUSURYLGHG
                                                                       E\DQRWKHUVXSHUYLVRUZKLFKOLVWVQLQHDUHDVRIFRQFHUQRYHU
   ,QWKHFRQWH[WRIDQDFWLRQXQGHUWKH$'$ZHKDYHKHOG             3UHELOLFKjVSHUIRUPDQFH
WKDW WR HVWDEOLVK D SULPD IDFLH FDVH RI GLVFULPLQDWLRQ WKH
HPSOR\HHPXVWSURYHWKDWWKHHPSOR\HUKDGNQRZOHGJHRIWKH               3UHELOLFKVXEVHTXHQWO\ILOHGDFODLPZLWKWKH((2&DQG
GLVDELOLW\)RUH[DPSOHLQ)LVKHUY7ULQRYD&RUS1R          EURXJKW VXLW LQ IHGHUDO GLVWULFW FRXUW DOOHJLQJ SUHJQDQF\
  :/  WK &LU 2FW                    GLVFULPLQDWLRQSXUVXDQWWR86&HN7KHGLVWULFW
XQSXEOLVKHGZHKHOGWKDWDQ+,9SRVLWLYHHPSOR\HHZKR               FRXUWIRXQGWKDWWKH SUR[LPLW\LQWLPHEHWZHHQ3UHELOLFKjV
IDLOHGWRGHPRQVWUDWHWKDWKLVHPSOR\HUKDGNQRZOHGJHRIKLV           GLVFORVXUHRIKHUSUHJQDQF\DQGKHUGLVFKDUJHFRXSOHGZLWK
+,9SRVLWLYH VWDWXV GLG QRW HVWDEOLVK D SULPD IDFLH FDVH RI   :60jVIDLOXUHWRIROORZLWVLQWHUQDOGLVFLSOLQHSURFHGXUHV
GLVFULPLQDWLRQ,GDW6LPLODUO\ZHKHOGWKDWDSROLFH        ZHUH VXIILFLHQWWRHVWDEOLVKDSULPDIDFLHFDVHDQGSUHWH[W
RIILFHUZKRVXIIHUHGIURPUHIOH[V\PSDWKHWLFG\VWURSK\KDG             +RZHYHUWKHGLVWULFWFRXUWKHOGWKDW3UHELOLFKjVFODLPZDV
IDLOHG WR HVWDEOLVK D SULPD IDFLH FDVH EHFDXVH KH GLG QRW    PHULWOHVVEHFDXVH:60DUWLFXODWHGXQGLVSXWHGIDFWVSURYLQJ
SUHVHQWHYLGHQFHWKDWDWWKHWLPHKLVHPSOR\HUILUHGKLPWKH          WKDW LWV GHFLVLRQ WR WHUPLQDWH 3UHELOLFKjV HPSOR\PHQW ZDV
HPSOR\HUNQHZRUEHOLHYHGWKDWKHZDVGLVDEOHGRUNQHZRI              PDGHEHIRUHDQ\VXSHUYLVRUVZHUHDZDUHRIWKHSUHJQDQF\
WKHRIILFHUjVV\PSWRPVZKLFKZHUHFDXVHGE\WKHGLVDELOLW\            7KH GLVWULFW FRXUW JUDQWHG VXPPDU\ MXGJPHQW LQ IDYRU RI
%XUQV Y &LW\ RI &ROXPEXV 'HSjW RI 3XE 6DIHW\ 'LY RI     :60DQG*D\ORUG(QWHUWDLQPHQW3UHELOLFKWLPHO\DSSHDOHG
3ROLFH)GWK&LUVHHDOVR0RQHWWHY
(OHF'DWD6\V&RUS)GWK&LU                                       $1$/<6,6
UHFRJQL]LQJWKHLPSRUWDQFHRIWKHHPSOR\HUjVNQRZOHGJHRI
WKHGLVDELOLW\                                                       $6WDQGDUGRI5HYLHZ

  2WKHU FLUFXLWV KDYH KHOG WKDW D SUHJQDQF\ GLVFULPLQDWLRQ         :HUHYLHZDGLVWULFWFRXUWjVJUDQWRIVXPPDU\MXGJPHQWGH
FODLP FDQQRW VXFFHHG LQ WKH DEVHQFH RI HYLGHQFH RI WKH        QRYRXVLQJWKHVDPHVWDQGDUGXQGHU5XOHFXVHGE\WKH
HPSOR\HUjVNQRZOHGJHRIWKHSUHJQDQF\,Q*HUDFLY0RRG\            GLVWULFWFRXUW:LOOLDPVY0HKUD)GWK&LU
7RWWUXS,QWjO ,QF)GUG&LUWKH7KLUG           HQ EDQF  6XPPDU\ MXGJPHQW LV SURSHU LI mWKH
&LUFXLWVWDWHGWKDWm>L@IWKHSUHJQDQF\LVQRWDSSDUHQWDQGWKH        SOHDGLQJV GHSRVLWLRQV DQVZHUV WR LQWHUURJDWRULHV DQG
HPSOR\HHKDVQRWGLVFORVHGLWWRKHUHPSOR\HUVKHPXVWDOOHJH         DGPLVVLRQVRQILOHWRJHWKHUZLWKWKHDIILGDYLWVLIDQ\VKRZ
NQRZOHGJH DQG SUHVHQW DV SDUW RI KHU SULPD IDFLH FDVH       WKDWWKHUHLVQRJHQXLQHLVVXHDVWRDQ\PDWHULDOIDFWDQGWKDW
HYLGHQFH IURP ZKLFK D UDWLRQDO MXU\ FRXOG LQIHU WKDW WKH      WKHPRYLQJSDUW\LVHQWLWOHGWRDMXGJPHQWDVDPDWWHURIODZl
HPSOR\HU NQHZ WKDW VKH ZDV SUHJQDQWl  ,G DW   7KH     )(' 5 &,9 3 F,QUHYLHZLQJDPRWLRQIRUVXPPDU\
6HYHQWK&LUFXLWUHFHQWO\KHOGnDOEHLWLQDFDVHLQZKLFKWKH            MXGJPHQWZHYLHZWKHHYLGHQFHDOOIDFWVDQGDQ\LQIHUHQFHV
SODLQWLII SURFHHGHG XQGHU WKH GLUHFW HYLGHQFH PHWKRG RI         WKDWPD\EHGUDZQIURPWKHIDFWVLQWKHOLJKWPRVWIDYRUDEOH
SURRInWKDWDFODLPRISUHJQDQF\GLVFULPLQDWLRQmFDQQRWEH              WRWKHQRQPRYLQJSDUW\0DWVXVKLWD(OHF,QGXV&RY=HQLWK
EDVHGRQ>DZRPDQjV@EHLQJSUHJQDQWLI>WKHHPSOR\HU@GLG              5DGLR &RUS  86     7R ZLWKVWDQG
                                                                       VXPPDU\ MXGJPHQW WKH QRQPRYDQW PXVW VKRZ VXIILFLHQW
      3UHELOLFK+ROODQGY*D\ORUG                  1R       1R                3UHELOLFK+ROODQGY*D\ORUG          
       (QWHUWDLQPHQW&R                                                                                     (QWHUWDLQPHQW&R

HYLGHQFHWRFUHDWHDJHQXLQHLVVXHRIPDWHULDOIDFW.OHSSHU          1(: ,17(51$7,21$/ ',&7,21$5<:HWKLQN
Y)LUVW$P%DQN)GWK&LU$PHUH          WKDWWKHWKUHVKROGTXHVWLRQEHIRUHXVLVZKHWKHULQRUGHUWR
VFLQWLOODRIHYLGHQFHLVLQVXIILFLHQWmWKHUHPXVWEHHYLGHQFH         HVWDEOLVKDFRQQHFWLRQRUQH[XVEHWZHHQWKHSUHJQDQF\DQG
RQ ZKLFK WKH MXU\ FRXOG UHDVRQDEO\ ILQG IRU WKH >QRQ         WKHGLVFKDUJH3UHELOLFKZDVUHTXLUHGWRSUHVHQWHYLGHQFHWKDW
PRYDQW@l$QGHUVRQY/LEHUW\/REE\,QF86              KHU HPSOR\HU KDG NQRZOHGJH RI KHU SUHJQDQF\ ZKHQ WKH
   (QWU\ RI VXPPDU\ MXGJPHQW LV DSSURSULDWH          GHFLVLRQ WR GLVFKDUJH KHU ZDV PDGH  3UHELOLFK DUJXHV WKDW
mDJDLQVW D SDUW\ ZKR IDLOV WR PDNH D VKRZLQJ VXIILFLHQW WR   EHFDXVH VKH ZDV GLVFKDUJHG RQO\ WZR GD\V DIWHU VKH WROG
HVWDEOLVKWKHH[LVWHQFHRIDQHOHPHQWHVVHQWLDOWRWKDWSDUW\jV        3DGJHWWVKHZDVSUHJQDQWDUHDVRQDEOHMXU\FRXOGLQIHUWKDW
FDVHDQGRQZKLFKWKDWSDUW\ZLOOEHDUWKHEXUGHQRISURRIDW         KHUSUHJQDQF\ZDVWKHUHDVRQIRUKHUGLVFKDUJH%XWWKHIDFWV
WULDOl&HORWH[&RUSY&DWUHWW86           KHUH GHPRQVWUDWH WKDW WKH GHFLVLRQ ZDV PDGH EHIRUHnQRW
                                                                       DIWHUnWKH HPSOR\HU OHDUQHG RI WKH SUHJQDQF\ DQG WKH
%&ODLPRI3UHJQDQF\'LVFULPLQDWLRQ                                  LQIHUHQFH XUJHG E\ 3UHELOLFK EHJV WKH TXHVWLRQ RI WKH
                                                                       HPSOR\HUjVNQRZOHGJHRIWKHSUHJQDQF\DWWKHWLPHPDWHULDO
    (OHPHQWVRIDSULPDIDFLHFDVH                                 WRWKLVLQTXLU\
  7LWOH9,,SURKLELWVDQHPSOR\HUIURPGLVFULPLQDWLQJDJDLQVW               7KH HPSOR\HUjV NQRZOHGJH DV DQ HOHPHQW RI WKH
DQHPSOR\HHmEHFDXVHRIVH[lZKLFKLQFOXGHVGLVFULPLQDWLRQ                   QH[XVUHTXLUHPHQW
RQWKHEDVLVRISUHJQDQF\86&HN/LNHDQ\
7LWOH9,,FDVHDSUHJQDQF\GLVFULPLQDWLRQFODLPLQZKLFKWKH             8QOLNHUDFHDQGJHQGHUHDUO\SUHJQDQF\LVQRWDQREYLRXV
SODLQWLII GRHV QRW FODLP WR KDYH GLUHFW HYLGHQFH RI WKH       FRQGLWLRQ5DWKHUDZRPDQLQWKHHDUO\VWDJHVRISUHJQDQF\
GLVFULPLQDWLRQ LV DQDO\]HG XQGHU WKH 0F'RQQHOO 'RXJODV           LV PRUH OLNH DQ HPSOR\HH ZKR VXIIHUV IURP D GLVDELOLW\ RU
HYLGHQWLDU\IUDPHZRUNZKLFKUHTXLUHVWKDWWKHSODLQWLIIILUVW         LOOQHVVWKDWKDVQRQRWLFHDEOHV\PSWRPV$QHPSOR\HHZKR
HVWDEOLVKDSULPDIDFLHFDVHRIGLVFULPLQDWLRQ0F'RQQHOO             LV +,9 SRVLWLYH IRU H[DPSOH PD\ H[KLELW QR RXWZDUG
'RXJODV&RUSY*UHHQ867R               PDQLIHVWDWLRQRIWKHLOOQHVVXQWLOLWUHDFKHVLWVODWHUVWDJHVDQG
HVWDEOLVKDSULPDIDFLHFDVHRISUHJQDQF\GLVFULPLQDWLRQWKH          LWLVHQWLUHO\SRVVLEOHIRUDQHPSOR\HUWRWHUPLQDWHVXFKDQ
SODLQWLIIPXVWVKRZWKDWmVKHZDVSUHJQDQWVKHZDV            HPSOR\HH ZLWKRXW KDYLQJ DQ\ NQRZOHGJH RI WKH GLVDELOLW\
TXDOLILHG IRU KHU MRE  VKH ZDV VXEMHFWHG WR DQ DGYHUVH   6LPLODUO\DQHPSOR\HUPD\ZHOOKDYHQRNQRZOHGJHRIWKH
HPSOR\PHQWGHFLVLRQDQGWKHUHLVDQH[XVEHWZHHQKHU              HDUO\VWDJHVRIDQHPSOR\HHjVSUHJQDQF\XQOHVVWKHHPSOR\HH
SUHJQDQF\DQGWKHDGYHUVHHPSOR\PHQWGHFLVLRQl&OLQHY              KDVPDGHKHUFLUFXPVWDQFHVNQRZQWRWKHHPSOR\HURUWKH
&DWKROLF 'LRFHVH RI 7ROHGR  )G   WK &LU       SUHJQDQF\GLUHFWO\DIIHFWVWKHHPSOR\HHjVDELOLW\WRSHUIRUP
                                                                 KHUMRE
   :HGRQRWGRXEWWKDW3UHELOLFKHVWDEOLVKHGWKHILUVWWKUHH            7KLV FLUFXLW KDV QRW H[SUHVVO\ DGGUHVVHG WKH TXHVWLRQ RI
SURQJVRIKHUSULPDIDFLHFDVH+RZHYHUZHDUHQRWVRTXLFN          ZKHWKHU DQ HPSOR\HU PXVW KDYH DFWXDO NQRZOHGJH RI DQ
WRFRQFOXGHWKDW3UHELOLFKKDVSUHVHQWHGHYLGHQFHVXSSRUWLQJ           HPSOR\HHjV SUHJQDQF\ WR EH OLDEOH IRU SUHJQDQF\
WKHIRXUWKSURQJRIWKHSULPDIDFLHFDVHWKDWLVHYLGHQFHIURP       GLVFULPLQDWLRQXQGHU7LWOH9,,:HKDYHKHOGKRZHYHULQDQ
ZKLFKDUHDVRQDEOHMXU\FRXOGLQIHUWKDWWKHUHZDVDQH[XV             XQSXEOLVKHGRSLQLRQWKDWDQHPSOR\HUjVGHIHQVHRIODFNRI
EHWZHHQ KHU SUHJQDQF\ DQG WKH GHFLVLRQ WR GLVFKDUJH KHU       NQRZOHGJHRIWKHSUHJQDQF\LQDSUHJQDQF\GLVFULPLQDWLRQ
m1H[XVlPHDQVmFRQQHFWLRQlRUmOLQNl:(%67(5j6 7+,5'                 FDVH IDLOHG EHFDXVH WKH UHFRUG FRQWDLQHG HYLGHQFH
