        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                    
                                  !
                                 
 /$55< (8*(1( 7,/)25'           
         'HIHQGDQW$SSHOODQW 
                                1
      $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
   IRUWKH:HVWHUQ'LVWULFWRI7HQQHVVHHDW0HPSKLV
 1RnsRQ3KLSSV0F&DOOD'LVWULFW
                         sXGJH
                 $UJXHG0DUFK
            'HFLGHGDQG)LOHG$XJXVW
  %HIRUHs21(6%$7&+(/'(5DQG&/$<&LUFXLW
                      sXGJHV
                    BBBBBBBBBBBBBBBBB
                         &2816(/
$5*8('5REHUW&,UE\0HPSKLV7HQQHVVHH/DZUHQFH
: .HUQ 0HPSKLV 7HQQHVVHH IRU $SSHOODQW  &DUUROO /
$QGUH,,,$66,67$1781,7('67$7(6$77251(<
0HPSKLV7HQQHVVHHIRU$SSHOOHH21%5,()5REHUW&
,UE\ 0HPSKLV 7HQQHVVHH /DZUHQFH : .HUQ 0HPSKLV
7HQQHVVHHIRU$SSHOODQW&DUUROO/$QGUH,,,$66,67$17

                              
     8QLWHG6WDWHVY7LOIRUG                1RV

81,7('67$7(6$77251(<0HPSKLV7HQQHVVHHIRU
$SSHOOHH
                      BBBBBBBBBBBBBBBBB
                          23,1,21
                      BBBBBBBBBBBBBBBBB
   1$7+$1,(/5s21(6&LUFXLWsXGJH'HIHQGDQW/DUU\
(XJHQH7LOIRUGSOHDGHGJXLOW\WRWZRFRXQWVRIEDQNIUDXGLQ
YLRODWLRQRI86&DQGDLGLQJDQGDEHWWLQJLQWKH
ILOLQJRIDIDOVHFODLPLQYLRODWLRQRI86&DQG
$WVHQWHQFLQJWKHGLVWULFWFRXUWGHQLHG7LOIRUGUHGXFWLRQVLQ
KLV RIIHQVH OHYHO IRU DFFHSWDQFH RI UHVSRQVLELOLW\ XQGHU
866*(DQGIRUSOD\LQJDPLWLJDWLQJUROHDVHLWKHUD
PLQLPDORUPLQRUSDUWLFLSDQWXQGHU866*%7LOIRUG
QRZDSSHDOVDUJXLQJWKDWWKHFRXUWVKRXOGKDYHJUDQWHGWKH
UHGXFWLRQV:H$)),50WKHGLVWULFWFRXUWjVMXGJPHQWRQWKH
PLWLJDWLQJ UROH FODLP EXW 5(9(56( WKH GLVWULFW FRXUWjV
MXGJPHQW RQ WKH DFFHSWDQFH RI UHVSRQVLELOLW\ FODLP
$FFRUGLQJO\ ZH 9$&$7( 7LOIRUGjV VHQWHQFH DQG
5(0$1'WKHFDVHIRUUHVHQWHQFLQJ
                                 ,
   /DUU\7LOIRUGZDVDQDFFRXQWDQWZKRSUHSDUHGWD[UHWXUQV
2Q$XJXVWWKH&ULPLQDO,QYHVWLJDWLRQ'LYLVLRQRI
WKH,QWHUQDO5HYHQXH6HUYLFH,56FRQWDFWHGDQGLQWHUYLHZHG
7LOIRUGDERXWKLVVXVSHFWHGLQYROYHPHQWLQWKHILOLQJRIIDOVH
WD[ FODLPV  'XULQJ WKH LQWHUYLHZ 7LOIRUG ZDV DVNHG WR
FRRSHUDWHZLWKWKHLQYHVWLJDWLRQ7LOIRUGLQLWLDOO\DJUHHGEXW
FKDQJHGKLVPLQGDIWHUFRQVXOWLQJZLWKKLVDWWRUQH\GXULQJD
EUHDN LQ WKH LQWHUYLHZ  2YHU WKH QH[W WKUHH \HDUV 7LOIRUG
FRQWLQXHG WR HQJDJH LQ IUDXGXOHQW LQFRPH WD[ VFKHPHV E\
PDQXIDFWXULQJDQGSURYLGLQJIDOVHRUDOWHUHG:HDUQLQJV
VWDWHPHQWVE\FODLPLQJIDOVHGHSHQGHQWVILOLQJVWDWXVHVDQG
HDUQHGLQFRPHFUHGLWVDQGE\FUHDWLQJIDOVH6FKHGXOH&IRUPV
VKRZLQJ ORVVHV IURP ILFWLWLRXV EXVLQHVVHV  ,Q DGGLWLRQ
7LOIRUGDORQJZLWKDQDVVRFLDWHZRXOGFUHDWHILFWLWLRXV:
HDUQLQJVVWDWHPHQWVE\VHFXULQJWKHQDPHVDQGVRFLDOVHFXULW\
QXPEHUV RI ORZ LQFRPH KRXVLQJ UHVLGHQWV DQG LQGLYLGXDOV
1RV                   8QLWHG6WDWHVY7LOIRUG        

ZKRZHUHHLWKHUXQHPSOR\HGRUUHFHLYLQJSXEOLFDVVLVWDQFH
7KHDVVRFLDWHZRXOGWKHQKHOSWKHLQGLYLGXDOVILOHWKHLUWD[
UHWXUQV HOHFWURQLFDOO\ DQG DSSO\ IRU 5DSLG 5HIXQG
$QWLFLSDWLRQEDQNORDQV7LOIRUGSDLGWKHSKRQ\WD[SD\HUDQG
WKH DVVRFLDWH D SRUWLRQ RI WKH SURFHHGV DQG SRFNHWHG WKH
UHPDLQGHU
   'XULQJWKDWVDPHWKUHH\HDUSHULRG7LOIRUGZDVLQYROYHGLQ
D EDQN IUDXG VFKHPH ZLWK (GGLH sHWHU  7LOIRUG SUHSDUHG
DSSUR[LPDWHO\ WZHQW\ ILFWLWLRXV WD[ UHWXUQV IRU sHWHU ZKR
SUHVHQWHG  WKH WD[ UHWXUQV WR ORFDO EDQNV DV YHULILFDWLRQ RI
LQFRPH DQG HPSOR\PHQW GDWD VXEPLWWHG RQ IUDXGXOHQW
DSSOLFDWLRQVIRUDXWRORDQVsHWHUSDLG7LOIRUGDSSUR[LPDWHO\
VHYHQW\ILYHGROODUVIRUHDFKUHWXUQ2Q1RYHPEHU
7LOIRUG sHWHU DQG WKUHH RWKHUV ZHUH LQGLFWHG E\ WKH JUDQG
MXU\ 7LOIRUG ZDV FKDUJHG ZLWK FRQVSLUDF\ WR FRPPLW EDQN
IUDXG IUDXGXOHQW XVH RI 6RFLDO 6HFXULW\ QXPEHUV DQG
YLRODWLRQRIWKHIHGHUDOPRQH\ODXQGHULQJVWDWXWHDVZHOODV
VXEVWDQWLYHFRXQWVRIEDQNIUDXG
  2Q)HEUXDU\WKH8QLWHG6WDWHVILOHGDRQHFRXQW
,QIRUPDWLRQ DJDLQVW 7LOIRUG FKDUJLQJ KLP ZLWK DLGLQJ DQG
DEHWWLQJLQWKHILOLQJRIDIDOVHFODLPLQYLRODWLRQRI86&
  DQG   7KDW VDPH GD\ SXUVXDQW WR D ZULWWHQ
DJUHHPHQW7LOIRUGHQWHUHGJXLOW\SOHDVWRERWKWKHEDQNIUDXG
FKDUJHVRIWKHLQGLFWPHQWDQGWKHIDOVHFODLPVFKDUJHRIWKH
,QIRUPDWLRQ
  7LOIRUGjV VHQWHQFLQJ UDQJH ZDV FDOFXODWHG LQ WKH
3UHVHQWHQFH5HSRUWDWILIW\RQHWRVL[W\WKUHHPRQWKVEDVHGRQ
DFULPLQDOKLVWRU\FDWHJRU\RI,9DQGDWRWDORIIHQVHOHYHORI
 ZKLFK LQFOXGHG D IRXUOHYHO LQFUHDVH IRU EHLQJ DQ
RUJDQL]HURUOHDGHURIWKHWD[UHWXUQHQWHUSULVH7KHUHSRUWGLG
QRWUHFRPPHQGUHGXFWLRQVIRUDFFHSWDQFHRIUHVSRQVLELOLW\RU
PLWLJDWLQJUROHDQG7LOIRUGREMHFWHG
  7KHGLVWULFWFRXUWFRQVROLGDWHGWKHFDVHVIRUVHQWHQFLQJ$W
WKHsXQHVHQWHQFLQJKHDULQJWKHFRXUWGHFOLQHGWR
UHGXFH7LOIRUGjVRIIHQVHOHYHOIRUDFFHSWDQFHRIUHVSRQVLELOLW\
&LWLQJ8QLWHG6WDWHVY&KLOGHUV)GWK&LU
WKH FRXUW FRQFOXGHG WKDW D UHGXFWLRQ ZDV LQDSSURSULDWH
     8QLWHG6WDWHVY7LOIRUG                  1RV         1RV           8QLWHG6WDWHVY7LOIRUG   

EHFDXVHHYHQDIWHUDJHQWVKDGLQWHUYLHZHGKLPDQGPDGHKLP                9$&$7( 7LOIRUGjV VHQWHQFH DQG 5(0$1' WKH FDVH IRU
DZDUHWKDWKHZDVEHLQJLQYHVWLJDWHG7LOIRUGmFRQWLQXHGWR               UHVHQWHQFLQJLQDFFRUGDQFHZLWKWKLVRSLQLRQ
HQJDJH LQ FULPLQDO DFWLYLW\ FRQWLQXHG WR DVVRFLDWH ZLWK
LQGLYLGXDOVLQWKHFRQGXFWRIFULPLQDODFWLYLW\FRQWLQXHGWR
SURILWLQFULPLQDODFWLYLW\DQGZDVQRWGHWHUUHGLQDQ\ZD\E\
EHLQJ GHWHFWHG HYHQ WKRXJK KH KDG DFNQRZOHGJHG
UHVSRQVLELOLW\ls$DW7KHFRXUWDOVRFRQFOXGHGWKDW
7LOIRUGZDVQRWHQWLWOHGWRDUHGXFWLRQIRUEHLQJDPLQLPDORU
PLQRUSDUWLFLSDQWLQsHWHUjVEDQNIUDXGHQWHUSULVHREVHUYLQJ
WKDW7LOIRUGjVFRQGXFWFRQVLVWHGRImPDQ\UHSHDWHGDFWVRYHU
DVXEVWDQWLDOSHULRGRIWLPHls$DW7KHFRXUWQRWHG
WKDW 7LOIRUG HQJDJHG LQ mPXOWLSOH SUHSDUDWLRQ >RI@ UHWXUQV
ZKLFKZHUHWKHQVXSSOLHGWRLQGLYLGXDOVIRU0UsHWHULQWKDW
HQWHUSULVHl  ,G  7KH GLVWULFW FRXUW VHQWHQFHG 7LOIRUG WR D
VL[W\PRQWK WHUP RI LPSULVRQPHQW DQG ILYH \HDUV RI
VXSHUYLVHGUHOHDVH
                                 ,,
                                  $
   *HQHUDOO\ ZH UHYLHZ IRU FOHDU HUURU D GLVWULFW FRXUWjV
ILQGLQJWKDWDGHIHQGDQWLVQRWHQWLWOHGWRDVHQWHQFHUHGXFWLRQ
IRUDFFHSWDQFHRIUHVSRQVLELOLW\6HH&KLOGHUV)GDW
+RZHYHUWKHVWDQGDUGRIUHYLHZLVGHQRYRZKHUHDVKHUH
WKHRQO\LVVXHSUHVHQWHGLVWKHSURSULHW\RIWKHDSSOLFDWLRQRI
WKHUHGXFWLRQWRXQFRQWHVWHGIDFWV6HHLG
   7KH 6HQWHQFLQJ *XLGHOLQHV SURYLGH IRU D WZROHYHO
UHGXFWLRQ LQ D GHIHQGDQWjV VHQWHQFH LI KH mFOHDUO\
GHPRQVWUDWHV DFFHSWDQFH RI UHVSRQVLELOLW\ IRU KLV RIIHQVHl
866*(D$GHIHQGDQWjVVHQWHQFHPD\EHIXUWKHU
UHGXFHG E\ RQH OHYHO LI KH DVVLVWV WKH DXWKRULWLHV LQ WKH
LQYHVWLJDWLRQRUSURVHFXWLRQRIKLVRZQPLVFRQGXFWE\HLWKHU
mWLPHO\SURYLGLQJFRPSOHWHLQIRUPDWLRQWRWKHJRYHUQPHQW
FRQFHUQLQJKLVRZQLQYROYHPHQWLQWKHRIIHQVH>@RUWLPHO\
QRWLI\LQJ DXWKRULWLHV RI KLV LQWHQWLRQ WR HQWHU D JXLOW\ SOHD
WKHUHE\HQDEOLQJWKHJRYHUQPHQWWRDYRLGKDYLQJWRSUHSDUH
IRUWULDOl866*(E7KH&RPPHQWDU\WR(
OLVWV YDULRXV IDFWRUV WKDW D GLVWULFW FRXUW PD\ FRQVLGHU LQ
GHWHUPLQLQJWKHDSSURSULDWHQHVVRIWKHUHGXFWLRQLQFOXGLQJ
     8QLWHG6WDWHVY7LOIRUG                1RV         1RV                   8QLWHG6WDWHVY7LOIRUG        

WKRVHLQYROYHG LQ WKHFRQGXFWRIDJURXSlZKLOHDmPLQRU             mYROXQWDU\WHUPLQDWLRQRUZLWKGUDZDOIURPFULPLQDOFRQGXFW
SDUWLFLSDQWlLVmVXEVWDQWLDOO\OHVVFXOSDEOHWKDQWKHDYHUDJH           RU DVVRFLDWLRQVl DQG mWKH WLPHOLQHVV RI WKH GHIHQGDQWjV
SDUWLFLSDQWl866*%FRPPHQW:HKDYHKHOGWKDW            FRQGXFW LQ PDQLIHVWLQJ WKH DFFHSWDQFH RI UHVSRQVLELOLW\l
PLQLPDOSDUWLFLSDQWVWDWXVLVUHVHUYHGmSULPDULO\IRUVRPHRQH           866*  ( DSS QRWH E K  $ GHIHQGDQW LV QRW
ZKRSOD\HGDVLQJOHOLPLWHGUROHLQDYHU\ODUJHRUJDQL]DWLRQl        HQWLWOHG WR WKLV UHGXFWLRQ DV D PDWWHU RI ULJKW KRZHYHU KH
8QLWHG6WDWHVY:LOOLDPV)GDW7LOIRUGjVUROHZDV         PLJKWQRWUHFHLYHWKHUHGXFWLRQLIKLVRXWZDUGPDQLIHVWDWLRQ
QRWOLPLWHGWRDVLQJOHFULPLQDODFWUDWKHUKHSUHSDUHGDWOHDVW      RI DFFHSWDQFH RI UHVSRQVLELOLW\ LV RXWZHLJKHG E\ RWKHU
WHQ ILFWLWLRXV UHWXUQV IRU sHWHU IURP sXO\  WKURXJK         LQFRQVLVWHQWFRQGXFW6HH866*(DSSQRWH
'HFHPEHU+HDOVRZDVQRWmSODLQO\DPRQJWKHOHDVW
FXOSDEOHl RI WKH JURXS DV KLV ILFWLWLRXV WD[ UHWXUQV ZHUH        7LOIRUGDUJXHVWKDWWKHGLVWULFWFRXUWHUURQHRXVO\FRQVLGHUHG
UHTXLUHGWRTXDOLI\sHWHUjVUHFUXLWVIRUWKHDXWRORDQV7LOIRUG       KLV FULPLQDO FRQGXFW EHIRUH WKH WLPH RI KLV DFFHSWDQFH RI
WKHUHIRUH FOHDUO\ LV QRW HQWLWOHG WR D mPLQLPDO SDUWLFLSDQWl    UHVSRQVLELOLW\ZKLFKKHPDLQWDLQVGLGQRWRFFXUXQWLODIWHUWKH
UHGXFWLRQ  ,W LV DUJXDEOH KRZHYHU ZKHWKHU 7LOIRUG ZDV        LQGLFWPHQW DQG ,QIRUPDWLRQ DQG LV HYLGHQFHG E\ KLV JXLOW\
VXEVWDQWLDOO\ OHVV FXOSDEOH WKDQ WKH DYHUDJH SDUWLFLSDQWV LQ     SOHDV7KHJRYHUQPHQWFRXQWHUVWKDWLWZDVSURSHUIRUWKH
sHWHUjV VFKHPH DQG WKXV HQWLWOHG WR D PLQRU SDUWLFLSDQW         GLVWULFW FRXUW WR GHQ\ DFFHSWDQFH RI UHVSRQVLELOLW\ EHFDXVH
UHGXFWLRQ7LOIRUGRQO\SUHSDUHGILFWLWLRXVWD[UHWXUQVDQGZDV        7LOIRUGKDGWKHRSSRUWXQLW\WRWHUPLQDWHKLVFULPLQDOFRQGXFW
QRWLQYROYHGLQWKHSODQQLQJRUH[HFXWLRQRIWKHVFKHPH+H            RQFHKHOHDUQHGKHZDVXQGHULQYHVWLJDWLRQ\HWFKRVHQRWWR
DOVR UHFHLYHG D UHODWLYHO\ VPDOO SHUFHQWDJH RI WKH SURILWV    GR VR  %RWK SDUWLHV FLWH &KLOGHUV LQ VXSSRUW RI WKHLU
VHYHQW\ILYHGROODUVSHUWD[UHWXUQFRPSDUHGWRDQDYHUDJHRI           DUJXPHQWV
 WR  LQ ORDQ SURFHHGV  1HYHUWKHOHVV sHWHU
FRXOG QRW KDYH H[HFXWHG KLV VFKHPH ZLWKRXW 7LOIRUGjV               ,Q&KLOGHUVWKHGHIHQGDQWFRQIHVVHGVRPHWZR\HDUVEHIRUH
IUDXGXOHQWWD[UHWXUQVZKLFKSURYLGHGWKHSKRQ\YHULILFDWLRQ           KHZDVLQGLFWHGIRUVWHDOLQJPDLODQGFDVKLQJVWROHQFKHFNV
RI LQFRPH DQG HPSOR\PHQW QHFHVVDU\ WR VHFXUH WKH ORDQV         6HH)GDW'XULQJWKHLQWHUYHQLQJWZR\HDUVKHZDV
%HFDXVHWKHUHDUHWZRSHUPLVVLEOHYLHZVRI7LOIRUGjVUROHWKH          DUUHVWHGDQGFRQYLFWHGVHYHUDOWLPHVLQVWDWHFRXUWIRUSDVVLQJ
GLVWULFW FRXUWjV ILQGLQJ WKDW 7LOIRUG ZDV QRW D PLQRU           EDG FKHFNV DQG DWWHPSWLQJ WR QHJRWLDWH VWROHQ DQG IRUJHG
SDUWLFLSDQWLVQRWFOHDUO\HUURQHRXVDQGPXVWEHXSKHOG6HH           FKHFNV6HHLG:HKHOGWKDWWKHGLVWULFWFRXUWFRXOGSURSHUO\
$QGHUVRQY&LW\RI%HVVHPHU&LW\1&86              FRQVLGHU &KLOGHUVj FULPLQDO RIIHQVHV FRPPLWWHG DIWHU KLV
m:KHUH WKHUH DUH WZR SHUPLVVLEOH YLHZV RI WKH             FRQIHVVLRQEXWEHIRUHKLVDUUHVWEHFDXVHKLVDFWLRQVLQGLFDWHG
HYLGHQFH WKH IDFWILQGHUjV FKRLFH EHWZHHQ WKHP FDQQRW EH         WKDW KH mGLG QRW YROXQWDULO\ WHUPLQDWH RU ZLWKGUDZ IURP
FOHDUO\HUURQHRXVl                                                   FULPLQDOFRQGXFWDIWHULQKHWUXWKIXOO\DGPLWWHGWRWKH
                                                                        SRVWDO LQVSHFWRUV WKH FRQGXFW FRQVWLWXWLQJ WKH RIIHQVH RI
                               ,,,                                    FRQYLFWLRQl,G:HQRWHG
  )RUWKHIRUHJRLQJUHDVRQVZH$)),50WKHGLVWULFWFRXUWjV                ,WLVZHOOHVWDEOLVKHGWKDWWKHmYROXQWDU\WHUPLQDWLRQRU
GHFLVLRQGHQ\LQJ7LOIRUGDUHGXFWLRQLQKLVRIIHQVHOHYHOIRU             ZLWKGUDZDOl IDFWRU PHDQV WKDW FULPLQDO FRQGXFW WKDW
SOD\LQJDPLWLJDWLQJUROHDVDPLQLPDORUPLQRUSDUWLFLSDQW               FRQWLQXHV IROORZLQJ DQ DFFHSWDQFH RI UHVSRQVLELOLW\
XQGHU866*%%HFDXVHKRZHYHUWKHGLVWULFWFRXUW             HVSHFLDOO\ ZKHQ WKH FRQGXFW LV RI WKH VDPH W\SH DV RU
HUUHGLQGHQ\LQJ7LOIRUGDUHGXFWLRQLQKLVRIIHQVHOHYHOIRU             UHODWHG WR WKH XQGHUO\LQJ RIIHQVH LV D VLJQLILFDQW
DFFHSWDQFH RI UHVSRQVLELOLW\ XQGHU 866*  ( ZH            FRQVLGHUDWLRQWKDWZLOOLQDOPRVWHYHU\LQVWDQFHPDNHD
                                                                          GRZQZDUGDGMXVWPHQWLQDSSURSULDWH
     8QLWHG6WDWHVY7LOIRUG              1RV        1RV                  8QLWHG6WDWHVY7LOIRUG        

,GDW                                                       8QOLNH sHWHU 7LOIRUG ZDV RQ QRWLFH WKDW WKH IHGHUDO
                                                                     JRYHUQPHQWKDGDQLQWHUHVWLQKLVDIIDLUVEHFDXVH,56DJHQWV
   8QOLNH&KLOGHUV7LOIRUGGLGQRWDFFHSWUHVSRQVLELOLW\ZKHQ       LQWHUYLHZHGKLPLQDQGWROGKLPWKH\ZHUHLQYHVWLJDWLQJ
WKH ,56 DJHQWV ILUVW LQWHUYLHZHG KLP LQ   7LOIRUGjV    KLV WD[ UHWXUQ ILOLQJV  7LOIRUG GLG QRW KRZHYHU DFFHSW
VXEVHTXHQW FULPLQDO DFWLYLW\ WKHUHIRUH FDQQRW TXDOLI\ DV       UHVSRQVLELOLW\ DW WKDW WLPH 7LOIRUG DFWXDOO\ UHIXVHG
mFULPLQDOFRQGXFWWKDWFRQWLQXHVIROORZLQJDQDFFHSWDQFHRI          UHVSRQVLELOLW\DIWHUPRPHQWDULO\DJUHHLQJWRFRRSHUDWHZLWK
UHVSRQVLELOLW\l IRU SXUSRVHV RI HYDOXDWLQJ WKH mYROXQWDU\      WKHLQYHVWLJDWLRQ)HGHUDODXWKRULWLHVKRZHYHUGLGQRWDUUHVW
WHUPLQDWLRQRUZLWKGUDZDOlIDFWRU:HXSKHOGWKLVSULQFLSOH         RUFKDUJH7LOIRUGZLWKDQ\FULPHDWWKDWWLPH%DVHGRQWKH
LQsHWHUjVDSSHDORIKLVVHQWHQFH6HH8QLWHG6WDWHVYsHWHU     UHDVRQLQJ LQ sHWHU LW LV WKH SHULRG IROORZLQJ WKH HQWU\ RI
 )G   WK &LU   sHWHU FKDOOHQJHG WKH   7LOIRUGjVJXLOW\SOHDVQRWWKHSHULRGIROORZLQJWKH,56
GLVWULFW FRXUWjV UHIXVDO WR DZDUG KLP D UHGXFWLRQ IRU        LQWHUYLHZWKDWLVUHOHYDQWIRUSXUSRVHVRIHYDOXDWLQJ7LOIRUGjV
DFFHSWDQFHRIUHVSRQVLELOLW\EHFDXVHsHWHUDIWHUEHLQJDUUHVWHG     DFFHSWDQFHRIUHVSRQVLELOLW\7KHUHFRUGLQGLFDWHVWKDWZKHQ
DQGLQGLFWHGRQVWDWHFKDUJHVIRUIUDXGXOHQWORDQWUDQVDFWLRQV      7LOIRUG ZDV LQGLFWHG DQG VHUYHG ZLWK WKH ,QIRUPDWLRQ KH
HQJDJHGLQVLPLODUFRQGXFWRQDWOHDVWWKUHHODWHURFFDVLRQV        DFFHSWHG UHVSRQVLELOLW\ E\ SOHDGLQJ JXLOW\ DQG DVVLVWLQJ
sHWHUDUJXHGWKDWKLVFDVHZDVGLVWLQJXLVKDEOHIURP&KLOGHUV         DXWKRULWLHVLQSUHSDULQJDOLVWRIWD[UHWXUQVKHIUDXGXOHQWO\
EHFDXVHKHGLGQRWFRQWLQXHWRHQJDJHLQFULPLQDOFRQGXFW            SUHSDUHG7LOIRUGGLGQRWHQJDJHLQDQ\VXEVHTXHQWFULPLQDO
RQFH KH SOHG JXLOW\ WR WKH IHGHUDO FKDUJHV  :H DJUHHG    RURWKHUZLVHLQFRQVLVWHQWFRQGXFWIROORZLQJKLVJXLOW\SOHDV
KROGLQJ WKDW WKH GLVWULFW FRXUW PD\ QRW XVH D GHIHQGDQWjV   7KH GLVWULFW FRXUW WKHUHIRUH HUUHG LQ GHQ\LQJ 7LOIRUG D
SUHLQGLFWPHQW VWDWH FULPHV DV D EDVLV IRU GHQ\LQJ KLP D     UHGXFWLRQLQKLVRIIHQVHOHYHOIRUDFFHSWDQFHRIUHVSRQVLELOLW\
UHGXFWLRQIRUDFFHSWDQFHRIUHVSRQVLELOLW\RQIHGHUDOFKDUJHV
6HHLGDW:HIXUWKHUKHOGWKDWWKHGHIHQGDQWPXVWEH                                        %
RQQRWLFHWKDWWKHIHGHUDOJRYHUQPHQWKDVDQLQWHUHVWLQKLVRU
KHUDIIDLUVEHIRUHWKHDFFHSWDQFHRIUHVSRQVLELOLW\JXLGHOLQH          7LOIRUGQH[WFKDOOHQJHVWKHGLVWULFWFRXUWjVILQGLQJWKDWKH
FRPHVLQWRSOD\6HHLGDW                                    ZDVQRWDPLQLPDORUPLQRUSDUWLFLSDQWLQsHWHUjVEDQNIUDXG
                                                                     VFKHPH:HUHYLHZWKHGLVWULFWFRXUWjVGHWHUPLQDWLRQRID
   ,Q sHWHU ZH GHFOLQHG WR DGRSW D EULJKWOLQH UXOH IRU    GHIHQGDQWjV UROH LQ FULPLQDO DFWLYLW\ IRU FOHDU HUURU  6HH
GHWHUPLQLQJ WKH UHOHYDQW WLPH SHULRG IRU DFFHSWDQFH RI        8QLWHG 6WDWHV Y :LOOLDPV  )G   WK &LU
UHVSRQVLELOLW\EXWGLGVWDWHWKDWGLVWULFWFRXUWVGRQRWKDYH       FLWLQJ  86&  H  $ ILQGLQJ LV FOHDUO\
mXQEULGOHGGLVFUHWLRQlZKHQPDNLQJWKHGHWHUPLQDWLRQ6HH           HUURQHRXVmRQO\ZKHQDOWKRXJKWKHUHPD\EHVRPHHYLGHQFH
LG DW   5DWKHU ZH QRZ mUHTXLUH WKDW WKHUH EH VRPH    WRVXSSRUWWKHILQGLQJµWKHUHYLHZLQJFRXUWLVOHIWZLWKWKH
FRQGXFW WKDW WKH FRXUW FDQ ILQG LV LQFRQVLVWHQW ZLWK WKDW   GHILQLWH DQG ILUP FRQYLFWLRQ WKDW D PLVWDNH KDV EHHQ
VSHFLILF DFFHSWDQFH RI UHVSRQVLELOLW\ UHIHUUHG WR LQ WKH      FRPPLWWHGjlsRKQVRQYsRQHV)GWK&LU
&RPPHQWDU\QDPHO\WKHDFFHSWDQFHRIWKHJXLOW\SOHDl,G          TXRWLQJ7KXUPDQY<HOORZ)UHLJKW6\V,QF)G
DWHPSKDVLVDGGHG2WKHUZLVHmWRH[WHQGWKHGHQLDORI        WK&LU
DFFHSWDQFH RI UHVSRQVLELOLW\ UHGXFWLRQ WR VLPLODU FULPLQDO
FRQGXFW EHIRUH WKH GHIHQGDQW KDV EHHQ DUUHVWHG RQ IHGHUDO      8QGHUWKH6HQWHQFLQJ*XLGHOLQHVWKHFRXUWFDQJUDQWDQ
FKDUJHVLVWRSHQDOL]HWKHGHIHQGDQWIRUDFULPLQDOGLVSRVLWLRQ     RIIHQVHOHYHO UHGXFWLRQ WR D GHIHQGDQW ZKR SOD\HG D
QRWEHFDXVHKHKDVQRWDFFHSWHGUHVSRQVLELOLW\WRWKHIHGHUDOO\      PLWLJDWLQJUROHLQWKHFULPLQDOHQWHUSULVHDVHLWKHUDPLQRURU
FKDUJHGFRQGXFWl,G                                               PLQLPDOSDUWLFLSDQW6HH866*%DE$PLQLPDO
                                                                     SDUWLFLSDQWLVRQHZKRLVmSODLQO\DPRQJWKHOHDVWFXOSDEOHRI
