                                                                            5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
     8QLWHG6WDWHVY/HZLV                       1R                   3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

                                                                         (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU

  7KHPDMRULW\DVVHUWVWKDWZLWKRXWDUHDVRQDEOHEHOLHIWKDW                         )LOH 1DPH DS

WKHUHZHUHWKLUGSDUWLHVLQWKHKRXVHWKHFRQFOXVLRQWKDWWKH
HYLGHQFHZDVLQGDQJHURILPPLQHQWGHVWUXFWLRQLVXQIRXQGHG
+RZHYHU WKHUH ZDV QR WUHVSDVV ZKHQ RIILFHUV ZHUH LQ WKH   81,7('67$7(6&28572)$33($/6
IURQWURRPDV/HZLVGDVKHGXSWKHVWDLUV,ZRXOGILQGDWWKDW                    )257+(6,;7+&,5&8,7
SRLQWWKDWWKH\NQHZWKHUHZDVDWKLUGSDUW\LQWKHKRXVHZKR                        BBBBBBBBBBBBBBBBB
FRXOGGHVWUR\DQ\RWKHUQDUFRWLFVEHFDXVHWKH\NQHZ/HZLV
UHVLGHGWKHUHDQGWKH\KDGQRW\HWVHHQKLPLQVLGHRURXWVLGH
WKHKRXVH6HH8QLWHG6WDWHVY*DLWDQ$FHYHGR)G
WK&LU                                        81,7(' 67$7(6 2) $0(5,&$       ;
                                                                               3ODLQWLII$SSHOOHH    
                                                                                                      
                                                                                                        1R
                                                                              Y                      
                                                                                                       !
                                                                                                      
                                                                     :$/7(5 /(:,6                    
                                                                            'HIHQGDQW$SSHOODQW 
                                                                                                     1
                                                                         $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
                                                                        IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG
                                                                      1Rn3DXO50DWLD&KLHI'LVWULFWsXGJH
                                                                                    $UJXHG2FWREHU
                                                                              'HFLGHGDQG)LOHG1RYHPEHU
                                                                      %HIRUH0$57,1&KLHIsXGJH68+5+(,15,&+DQG
                                                                                    6,/(5&LUFXLWsXGJHV
                                                                                       BBBBBBBBBBBBBBBBB
                                                                                            &2816(/
                                                                    $5*8('  sDPHV 5 :LOOLV :,//,6 %/$&.:(// 	
                                                                    52*(56&OHYHODQG2KLRIRU$SSHOODQW&KULVWD'%UXQVW
                                                                    $66,67$17 86 $77251(< &OHYHODQG 2KLR IRU
                                                                    $SSHOOHH  21 %5,()  sDPHV 5 :LOOLV :,//,6
                                                                    %/$&.:(// 	 52*(56 &OHYHODQG 2KLR 0\URQ 3
                                                                    :DWVRQ&OHYHODQG2KLRIRU$SSHOODQW&KULVWD'%UXQVW


                                                                                                 
     8QLWHG6WDWHVY/HZLV                        1R       1R                         8QLWHG6WDWHVY/HZLV         

$66,67$17 86 $77251(< &OHYHODQG 2KLR IRU                                          BBBBBBBBBBBBBBBBB
$SSHOOHH
                                                                                                ',66(17
  0$57,1 & s GHOLYHUHG WKH RSLQLRQ RI WKH FRXUW LQ                            BBBBBBBBBBBBBBBBB
ZKLFK 68+5+(,15,&+ s MRLQHG  6,/(5 s SS 
GHOLYHUHGDVHSDUDWHGLVVHQWLQJRSLQLRQ                                6,/(5 &LUFXLW sXGJH GLVVHQWLQJ  , ZRXOG DIILUP WKH
                                                                      GHFLVLRQ RI WKH GLVWULFW FRXUW LQ GHQ\LQJ WKH PRWLRQ WR
                     BBBBBBBBBBBBBBBBB                                VXSSUHVV
                         23,1,21                                        $VUHODWHGE\WKHPDMRULW\WKHRIILFHUVKDGLQIRUPDWLRQWKDW
                     BBBBBBBBBBBBBBBBB                                :DOWHU/HZLVDQG(GZDUGsXOLDQVWRUHGDQGVROGQDUFRWLFVRXW
                                                                      RIWKHLUKRPHLQ&OHYHODQG7KHLQIRUPDQWIXUWKHUDGYLVHGWKH
  %2<&()0$57,1s5&KLHIsXGJH2Q)HEUXDU\                 RIILFHUVWKDWsXOLDQZRXOGEHPDNLQJDODUJHGUXJGHOLYHU\RQ
:DOWHU/HZLVZDVFRQYLFWHGRISRVVHVVLRQZLWKLQWHQW            'HFHPEHU7KLVZDVFRUURERUDWHGZKHQWKHRIILFHUVVDZ
WR GLVWULEXWH FUDFN FRFDLQH LQ YLRODWLRQ RI  86&         WKHsHHSSXOOLQWRWKHGULYHZD\RIWKHUHVLGHQFHDQGsXOLDQJRW
DDQGE$DQGLOOHJDOSRVVHVVLRQRIDILUHDUP         LQWRWKHsHHSDQGOHIWSURFHHGLQJGRZQWKHVWUHHWZKHUHKH
E\DFRQYLFWHGIHORQLQYLRODWLRQRI86&JDQG        HQJDJHG LQ WKH FUDFN WUDQVDFWLRQ ZLWK $QWRQLR &ODUN
+HZDVVHQWHQFHGWRPDQGDWRU\OLIHLPSULVRQPHQWDVD            7KHUHIRUH DW WKDW SRLQW RIILFHUV KDG SUREDEOH FDXVH RU DW
WKUHHWLPH FRQYLFWHG IHORQ  3ULRU WR WULDO /HZLV ILOHG D   OHDVWDUHDVRQDEOHVXVSLFLRQWKDWWKHUHZHUHPRUHGUXJVLQWKH
PRWLRQ WR VXSSUHVV ZKLFK WKH GLVWULFW FRXUW GHQLHG  +H      KRXVHDVWKHLQIRUPDQWKDGVDLGWKDWWKHQDUFRWLFVZHUHVWRUHG
DSSHDOVWKHGLVWULFWFRXUWjVGHQLDORIKLVPRWLRQWRVXSSUHVVDV      DQGVROGRXWRIWKHKRXVHDQGWKH\KDGQRWVHHQ/HZLVWKH
ZHOODVKLVOLIHVHQWHQFH:HUHYHUVH                               RWKHUVXVSHFW7KHUHIRUHWKH\KDGWKHULJKWWRDWOHDVWNQRFN
                                                                      RQWKHGRRURIWKHKRXVHWRVHHLIWKHUHZDVDQ\RQHHOVHLQ
  ,Q HDUO\ 'HFHPEHU  DQ LQIRUPDQW EHJDQ SURYLGLQJ        SDUWLFXODU/HZLVLQVLGH
RIILFHUVIURPWKH&OHYHODQG3ROLFH'HSDUWPHQW1DUFRWLFV8QLW
LQIRUPDWLRQWKDW:DOWHU/HZLVDQGKLVEURWKHU(GZDUGsXOLDQ            7KHPDMRULW\VXJJHVWVWKDWIURP8QLWHG6WDWHVY6DJLQHWR
VWRUHG DQG VROG QDUFRWLFV RXW RI WKHLU KRPH DW          0LUDQGD)GWK&LUWKHRIILFHUV
:HVWFKHVWHU $YHQXH &OHYHODQG 2KLR  2Q 6DWXUGD\              FRXOGQRWPDNHDZDUUDQWOHVVHQWU\XQOHVVWKH\EHOLHYHGWKDW
'HFHPEHUWKHLQIRUPDQWWROGWKHRIILFHUVWKDWDODUJHGUXJ        WKHUH ZHUH WKLUG SDUWLHV LQVLGH WKH GZHOOLQJ ZKR PLJKW EH
GHOLYHU\ZDVJRLQJWREHPDGHEHWZHHQDQGSP              LQYROYHGLQWKHGHVWUXFWLRQRIHYLGHQFH1HYHUWKHOHVVWKHUH
WKDWGD\7KHLQIRUPDQWWROGWKHSROLFHWKDW(GZDUGsXOLDQ           LVQRLOOHJDOVHDUFKZKHQDQRIILFHUNQRFNVRQWKHGRRURID
ZRXOG PDNH WKH GHOLYHU\ GRZQ WKH VWUHHW IURP WKH KRXVH       KRXVH7KHGRRUZDVRSHQHGE\DFKLOGZKRDOORZHGWKHPWR
GULYLQJDQHZEODFNsHHS&KHURNHHOLFHQVHQXPEHUBBB            FRPHLQWRWKHIURQWURRP8QOLNHWKHRIILFHUVLQ:RQJ6XQY
%DVHGRQWKLVLQIRUPDWLRQSROLFHHVWDEOLVKHGVXUYHLOODQFHRI         8QLWHG 6WDWHV  86    WKH SROLFH KHUH
WKHKRXVH                                                            LGHQWLILHGWKHPVHOYHVDWWKHGRRUDQGZHUHODZIXOO\DGPLWWHG
                                                                      :KHQWKH\LPPHGLDWHO\VDZ/HZLVUXVKXSWKHVWHSVWKH\KDG
  $W  SP D EODFN sHHS &KHURNHH OLFHQVH QXPEHU         SUREDEOH FDXVH DQG H[LJHQW FLUFXPVWDQFHV WR MXVWLI\ D
:0'SXOOHGLQWRWKHGULYHZD\RI:HVWFKHVWHU               ZDUUDQWOHVVVHDUFKDWOHDVWWRWKHH[WHQWRIIROORZLQJ/HZLV
$VWKH\GURYHE\WRYHULI\WKHOLFHQVHSODWHWKHSROLFHVDZ          XSWKHVWHSVEHIRUHWKH\IRXQGWKHFUDFNLQRSHQYLHZ
sXOLDQJHWLQWRWKHsHHSDQGOHDYHWKHGULYHZD\sXOLDQGURYH
DSSUR[LPDWHO\RQHEORFNGRZQWKHVWUHHWZKHUHKHVWRSSHG
     8QLWHG6WDWHVY/HZLV                        1R      1R                        8QLWHG6WDWHVY/HZLV        

  :LWKRXWDUHDVRQDEOHEHOLHIWKDWWKHUHZHUHWKLUGSDUWLHVLQ       DFURVVWKHVWUHHWIURPDEODFN&KHYUROHWDXWRPRELOHWKDWZDV
WKHKRXVHWKHEHOLHIWKDWDQ\HYLGHQFHSUHVXPHGWREHLQVLGH        SDUNHGLQIURQWRI:HVWFKHVWHU$QWRQLR&ODUNH[LWHG
WKH KRXVH ZDV LQ GDQJHU RI LPPLQHQW GHVWUXFWLRQ LV           WKH&KHYUROHWDQGHQWHUHGWKHIURQWSDVVHQJHUVHDWRIWKHsHHS
XQIRXQGHG  +DYLQJ IDLOHG WR HVWDEOLVK SUREDEOH FDXVH RU     7KHRIILFHUVVDZWKHWZRLQGLYLGXDOVH[FKDQJHVRPHWKLQJDQG
H[LJHQWFLUFXPVWDQFHVSULRUWRHQWHULQJ:HVWFKHVWHU           FRQFOXGHGWKDWDGUXJGHDOZDVLQSURJUHVV
WKH ZDUUDQWOHVV VHDUFK RI WKH KRXVH ZDV XQMXVWLILHG
)XUWKHUPRUHWKHJRYHUQPHQWFDQQRWUHO\RQWKHFRQVHQWIRUP            $VWKHRIILFHUVSXOOHGXSWRWKHsHHSWRLQYHVWLJDWHWKH\
VLJQHG E\ 0DUMRULH sXOLDQ DQG :DOWHU /HZLV WR MXVWLI\ WKH   REVHUYHGsXOLDQWRVVVHYHUDOODUJHURFNVRIFRFDLQHEDVHLQWR
VHDUFKDIWHUWKHIDFW7KHHYLGHQFHREWDLQHGIURPWKHVHDUFK        WKHEDFNVHDWRIWKHsHHSDQG&ODUNVKRYHVRPHWKLQJLQWRKLV
VKRXOGKDYHEHHQVXSSUHVVHG                                       SDQWV7KHRIILFHUVDSSURDFKHGWKHsHHSVDZWKHFRFDLQHEDVH
                                                                     LQWKHEDFNRIWKHsHHSDQGDUUHVWHGERWK&ODUNDQGsXOLDQ
  $FFRUGLQJO\ ZH 5(9(56( WKH GHFLVLRQ RI WKH GLVWULFW
FRXUWDQG5(0$1'WKHFDVHIRUDQHZWULDO                             2IILFHU7KRPDV6KRXOGHUVWKHQWROGRIILFHUVsLP.RRVHU
                                                                     DQG0DUN0D]XUWRUHWXUQWR:HVWFKHVWHUDQGmVHFXUHl
                                                                     WKHKRXVH7KHUHLVFRQIOLFWLQJWHVWLPRQ\DVWRZKDWKDSSHQHG
                                                                     QH[W$FFRUGLQJWRWKHWHVWLPRQ\RI0D]XUKHDQG.RRVHU
                                                                     NQRFNHG RQ WKH VLGH GRRU RI  :HVWFKHVWHU  $ FKLOG
                                                                     DQVZHUHGWKHGRRU7KHGHWHFWLYHVLGHQWLILHGWKHPVHOYHVDQG
                                                                     DVNHGLIWKHER\jVSDUHQWVRUDQ\RWKHUDGXOWZDVLQWKHKRXVH
                                                                     7KHER\VDLGWKDWKLVPRWKHUZDVRXWVKRSSLQJ7KHRIILFHUV
                                                                     DVNHGWKHER\LIWKH\FRXOGHQWHU+HUHVSRQGHGm&RPHRQ
                                                                     LQl
                                                                        7KH RIILFHUV WHVWLILHG WKDW RQFH LQVLGH WKH KRXVH WKH\
                                                                     LPPHGLDWHO\ REVHUYHG /HZLV UXQQLQJ XS WKH VWDLUV WR WKH
                                                                     VHFRQGIORRU)HDULQJWKDW/HZLVPLJKWEHDWWHPSWLQJWRJHW
                                                                     DZHDSRQRUGHVWUR\HYLGHQFHWKH\SXUVXHGKLPXSWKHVWDLUV
                                                                     /HZLVUDQLQWRDEHGURRPVODPPHGWKHGRRUDQGKHOGLWVKXW
                                                                     7KH RIILFHUV LGHQWLILHG WKHPVHOYHV DQG DVNHG WR HQWHU WKH
                                                                     URRP7KH\WKHQIRUFHGWKHLUZD\LQWRWKHURRPDQGREVHUYHG
                                                                     DODUJHTXDQWLW\RIFRFDLQHEDVHDQGDVFDOHLQWKHEHGURRP
                                                                     7KHRIILFHUVWKHQDUUHVWHG/HZLV
                                                                       7KHRZQHURIWKHKRXVH0DUMRULHsXOLDQZDVSDJHGDQG
                                                                     VKH UHWXUQHG KRPH  7KH RIILFHUV GHVFULEHG ZKDW KDG
                                                                     KDSSHQHG DQG H[SODLQHG WKH &RQVHQW WR 6HDUFK IRUP WKH\
                                                                     ZHUHDVNLQJKHUWRVLJQ6KHVLJQHGWKHIRUP0DUMRULHsXOLDQ
                                                                     WROGWKHSROLFHWKDWWKHEHGURRPEHORQJHGWR/HZLV$IWHUWKH
                                                                     RIILFHUVH[SODLQHGWKHFRQVHQWIRUPWR/HZLVKHDOVRVLJQHG
                                                                     WKHIRUP7KHRIILFHUVWKHQVHDUFKHGWKHEHGURRP/HZLV
                                                                     WKHQWROGWKHSROLFHWKDWDZHDSRQZDVORFDWHGRQDVKHOILQ
     8QLWHG6WDWHVY/HZLV                          1R       1R                         8QLWHG6WDWHVY/HZLV        

WKH URRP  7KH VHDUFK UHYHDOHG D  FDOLEHU UHYROYHU  ,Q      $OWKRXJKZDUUDQWOHVVHQWULHVLQWRDSHUVRQjVKRPHDUHSHU
DGGLWLRQ WR WKH ZHDSRQ DQG WKH FRFDLQH EDVH WKH RIILFHUV      VHXQUHDVRQDEOHXQGHUWKH)RXUWK$PHQGPHQWWKH6XSUHPH
VHL]HGDVFDOHSODVWLFEDJJLHVDUD]RUDQGSHUVRQDOSDSHUV           &RXUWKDVKHOGWKDWFHUWDLQH[LJHQWFLUFXPVWDQFHVPD\MXVWLI\
IURPWKHURRP                                                          DZDUUDQWOHVVHQWU\6HH8QLWHG6WDWHVY6WUDXJKWHU)G
                                                                        WK&LUFLWLQJ5RDGHQY.HQWXFN\
   7KH GHIHQVH SUHVHQWHG ILYH ZLWQHVVHV  &UDLJ $OIRUG            86   .DW] Y 8QLWHG 6WDWHV  86 
WHVWLILHGWKDWKHZHQWWRWKHsXOLDQKRXVHRQ'HFHPEHUWR              $ ZDUUDQWOHVV HQWU\ WR SUHYHQW WKH GHVWUXFWLRQ RI
WHOO WKH IDPLO\ PHPEHUV WKDW WKH SROLFH ZHUH mKDUDVVLQJl        HYLGHQFHPD\EHSHUPLVVLEOHLILWLVEDVHGRQSUREDEOHFDXVH
(GZDUG$FFRUGLQJWR$OIRUGWKHSROLFHEDUJHGLQWKHVLGH             DQGVXSSRUWHGE\H[LJHQWFLUFXPVWDQFHV6HH8QLWHG6WDWHVY
GRRUZLWKRXWNQRFNLQJWROGKLPWRVKXWXSDQGUDQLQWRWKH            'HOJX\G  )G   WK &LU :H KDYH
GLQLQJURRPDQGXSWKHVWDLUV0DUVKDOO/HZLVWKHQHSKHZRI           DGRSWHGDWZRSURQJHGWHVWWRGHWHUPLQHZKHQWKHSRVVLELOLW\
(GZDUGsXOLDQDQG:DOWHU/HZLVWHVWLILHGWKDW$OIRUGDUULYHG           RIGHVWUXFWLRQRIHYLGHQFHZLOOMXVWLI\DZDUUDQWOHVVHQWU\LQWR
DWWKHKRXVHRQWKDWGD\DQGWROGKLPWKDW(GZDUGsXOLDQKDG            DSHUVRQjVKRPH6HH8QLWHG6WDWHVY6DJLQHWR0LUDQGD
EHHQ DUUHVWHG RQ WKH VWUHHW  0DUVKDOO /HZLV WHVWLILHG WKDW   )G   WK &LU   $FFRUGLQJ WR 6DJLQHWR
VRRQWKHUHDIWHUILYHRUVL[RIILFHUVEXUVWLQWRWKHKRXVH+H         0LUDQGD D ZDUUDQWOHVV HQWU\ WR SUHYHQW WKH GHVWUXFWLRQ RI
WHVWLILHGWKDWKHDVNHGWKHPm:KDWWKH)\RXGRLQJLQP\               HYLGHQFHLVMXVWLILHGLIWKHJRYHUQPHQWGHPRQVWUDWHVmD
JUDQGPRWKHUjVKRXVH"l:DOWHU/HZLVWHVWLILHGWKDWKHZDV               UHDVRQDEOHEHOLHIWKDWWKLUGSDUWLHVDUHLQVLGHWKHGZHOOLQJDQG
DVOHHSLQKLVORFNHGEHGURRPZKHQWKHSROLFHNLFNHGWKHGRRU             D UHDVRQDEOH EHOLHI WKDW WKHVH WKLUG SDUWLHV PD\ VRRQ
LQ$VWKHSROLFHZHUHFRPLQJWKURXJKWKHGRRUKHWHVWLILHG           EHFRPH DZDUH WKH SROLFH DUH RQ WKHLU WUDLO VR WKDW WKH
WKDWKHMXPSHGXSWRmJRIRU>KLV@JXQl$FFRUGLQJWR/HZLV           GHVWUXFWLRQRIHYLGHQFHZRXOGEHLQRUGHUl,GDW
WKHSROLFHWKHQORFDWHGWKHGUXJVLQDVXLWFDVHXQGHUWKHEHG
                                                                           ,QWKLVFDVHWKHSROLFHRIILFHUVKDGQRUHDVRQWREHOLHYHWKDW
  .DUOHQH/HZLVVLVWHUWR(GZDUGsXOLDQDQG:DOWHU/HZLV              WKLUG SDUWLHV ZHUH LQVLGH WKH KRXVH DW WKH WLPH RI WKH
WHVWLILHGWKDWWKHRIILFHUVWKUHDWHQHGWRWHDUWKHKRXVHDSDUWLI       WUDQVDFWLRQ7KHLQIRUPDQWLQGLFDWHGWKDWWKHUHZRXOGEHD
0DUMRULHsXOLDQDQG:DOWHU/HZLVGLGQRWVLJQWKHFRQVHQW               GUXJWUDQVDFWLRQRXWVLGHWKHKRXVH$OWKRXJKWKLVLQIRUPDWLRQ
IRUP  0DUMRULH sXOLDQ DOVR WHVWLILHG WKDW VKH VLJQHG WKH      ZDV FRUURERUDWHG E\ WKH RIILFHUV VXUYHLOOLQJ WKH KRXVH WKH
FRQVHQWIRUPEHFDXVHWKHRIILFHUVWROGKHUWKDWLIVKHGLGQRW          LQIRUPDQW JDYH QR LQGLFDWLRQ WKDW DQ\RQH ZRXOG EH LQ WKH
VLJQWKH\ZRXOGJHWDVHDUFKZDUUDQWWHDUXSWKHKRXVHDQG           KRXVHDWWKHWLPHRIWKHWUDQVDFWLRQ7KHRIILFHUVVDZsXOLDQ
ERDUGXSWKHKRXVH:DOWHU/HZLVWHVWLILHGWKDWKHVLJQHGWKH          OHDYHWKHKRXVH7KH\GLGQRWVHHKLPRUDQ\RQHHOVHHQWHU
IRUP EHFDXVH WKH SROLFH WROG KLP WKDW WKH\ ZHUH JRLQJ WR      WKHKRXVH7KH\GLGQRWVHHDQ\RQHWKURXJKDZLQGRZRIWKH
ERDUGXSWKHKRXVHDQGKHGLGQRWZDQWWKHKRXVHWDNHQDZD\             KRXVH QRU GLG WKH\ KHDU DQ\WKLQJ WKDW ZRXOG LQGLFDWH WKH
IURPKLVPRWKHU                                                        SUHVHQFHRIDQ\RQHLQWKHKRXVH7KHRIILFHUVZKRHQWHUHG
                                                                        WKHKRXVHZHUHDZDUHWKDWsXOLDQKDGEHHQDUUHVWHGEXWWKH\
   :HUHYLHZDGLVWULFWFRXUWjVOHJDOFRQFOXVLRQVZLWKUHVSHFW          KDGQRNQRZOHGJHRI/HZLVjVZKHUHDERXWVDQGQRUHDVRQWR
WRDPRWLRQWRVXSSUHVVGHQRYR6HH8QLWHG6WDWHVY%DWHV           DVVXPH WKDW KH ZDV LQVLGH WKH KRXVH  7KH XQFRUURERUDWHG
 )G   WK &LU   +RZHYHU WKH GLVWULFW      LQIRUPDWLRQ WKDW /HZLV DQG sXOLDQ ZHUH SDUWQHUV LQ D GUXJ
FRXUWjV IDFWXDO ILQGLQJV ZLOO EH GLVWXUEHG RQO\ LI WKH\ DUH    EXVLQHVVRSHUDWLQJRXWRI:HVWFKHVWHUGRHVQRWVXSSRUW
FOHDUO\HUURQHRXV6HHLG7KHJRYHUQPHQWEHDUVWKHEXUGHQ            WKHUHDVRQDEOHEHOLHIWKDWDQ\RQHZDVKRPHDWWKHWLPHRIWKH
RISURYLQJH[LJHQWFLUFXPVWDQFHVH[LVWHG6HHLG                    WUDQVDFWLRQ
