Explore Ebooks
Categories
Explore Audiobooks
Categories
Explore Magazines
Categories
Explore Documents
Categories
,17+(81,7('67$7(6',675,&7&2857
)257+(6287+(51',675,&72)1(:<25.
'(02&5$7,&1$7,21$/&200,77((
3ODLQWLII &LYLO$FWLRQ1RBBBBBBBBB
Y -85<'(0$1'
7+(5866,$1)('(5$7,21 &203/$,17
*(1(5$/67$))2)7+($50(' &20387(5)5$8'$1'$%86(
)25&(62)7+(5866,$1 $&786&D
)('(5$7,21³*58´ 5,&286&F
*5823(5$7,9(86,1* 5,&2&2163,5$&<86&
36(8'21<0³*8&&,)(5´ G
$5$6,6.(1(529,&+$*$/$529
:,5(7$3$&786&
(0,1$5$=$*$/$529
-26(3+0,)68' 6725('&20081,&$7,216
:,.,/($.6 $&786&
-8/,$1$66$1*(
',*,7$/0,//(11,80
'21$/'-75803)2535(6,'(17,1& &23<5,*+7$&786&
'21$/'-75803-5 HWVHT
3$8/-0$1$)257-5 0,6$335235,$7,212)75$'(
52*(5-6721(-5 6(&5(7681'(57+('()(1'
-$5('&.86+1(5 75$'(6(&5(76$&786&
HWVHT
*(25*(3$3$'2328/26
5,&+$5':*$7(6,,, :$6+,1*721'&81,)250
75$'(6(&5(76$&7'&&RGH
-2+1'2(6
$QQ±
'HIHQGDQWV 75(63$66'&&RPPRQ/DZ
75(63$6672&+$77(/6
9LUJLQLD&RPPRQ/DZ
&2163,5$&<72&200,7
75(63$6672&+$77(/6
9LUJLQLD&RPPRQ/DZ
9,5*,1,$&20387(5&5,0(6
$&79D&RGH$QQHW
VHT
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 2 of 66
7$%/(2)&217(176
3DJH
1$785(2)$&7,21
, ,1752'8&7,21
,, 29(59,(:2)7+(&2163,5$&<
,,, '$0$*(6727+('1&
-85,6',&7,21$1'9(18(
3$57,(6
*(1(5$/$//(*$7,216
, 75803¶6$1'75803$662&,$7(6¶35((;,67,1*5(/$7,216+,36
:,7+5866,$$1'5866,$12/,*$5&+63529,'(')(57,/(
*5281')255866,$75803&2163,5$&<
,, 7+(&20021385326(%2/67(575803$1''(1,*5$7(7+(
'(02&5$7,&3$57<120,1((
,,, 7+(&2163,5$&<72',66(0,1$7(672/(1'1&'$7$72$,'
75803
$ 7UXPS$QQRXQFHV+LV&DQGLGDF\IRU3UHVLGHQWDQG5XVVLD%HJLQV,WV
$WWDFNRQWKH'1&&RPSXWHU6\VWHPV
% (XURSHDQ$OOLHV6RXQGWKH$ODUPWR86,QWHOOLJHQFH5HJDUGLQJ
&RPPXQLFDWLRQV%HWZHHQ5XVVLDQVDQG7UXPS$VVRFLDWHV
& :KLOH&DPSDLJQLQJIRU3UHVLGHQW7UXPS6LJQVD/HWWHURI,QWHQWWR%XLOG
7UXPS7RZHU0RVFRZ
' 7KH7UXPS&DPSDLJQ(VWDEOLVKHV)XUWKHU7LHVWR5XVVLDDQG5XVVLDQ
,QWHOOLJHQFH$JHQWV
( 5XVVLD6WHDOV0DVVLYH7URYHRI'RFXPHQWVIURPWKH'1&DV7UXPS
$VVRFLDWH%UDJV$ERXW6WROHQ'RFXPHQWV
) 7KH'1&'LVFRYHUVWKH+DFNDQG+LUHV&URZG6WULNH
* )RUHQVLF(YLGHQFH&RQILUPV5XVVLD¶V$WWDFNRQWKH'1&¶V1HWZRUN
+ 5XVVLDQV2IIHUWR$VVLVW7UXPS²DQG7UXPS$VVRFLDWHV$FFHSWWKH2IIHU
, )ROORZLQJ7UXPS7RZHU0HHWLQJ5XVVLD/DXQFKHVD0DVVLYH3XEOLF
'LVVHPLQDWLRQRI6WROHQ'1&'RFXPHQWV
- 7KH7UXPS&DPSDLJQ%ORFNV$QWL5XVVLDQ/DQJXDJHIURP%HLQJ$GGHG
WRWKH*233ODWIRUP
L
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 3 of 66
7$%/(2)&217(176
3DJH
. $IWHUWKH7UXPS&DPSDLJQ%ORFNV$QWL5XVVLD/DQJXDJHIURPWKH*23
3ODWIRUP:LNL/HDNV%HJLQV'LVVHPLQDWLQJ6WROHQ'1&'RFXPHQWV
/ 7UXPS$VVRFLDWHV6HFUHWO\&RPPXQLFDWHZLWK5XVVLDQ$JHQWVDQG
:LNL/HDNVDV7KH\6WUDWHJLFDOO\5HOHDVH6WROHQ'1&'RFXPHQWV
0 7UXPS3XEOLFO\3UDLVHVWKH,OOHJDO'LVVHPLQDWLRQRI6WROHQ'1&
'RFXPHQWV
1 7UXPS²DQG5XVVLD²:LQ
,9 '()(1'$176¶5(3($7('())257672&29(583&217$&76:,7+
5866,$16(9,'(1&(7+(,5&216&,2861(662)*8,/7
9 7+(6,*1,),&$17+$50,1)/,&7('83213/$,17,))
&$86(62)$&7,21
&2817,
&20387(5)5$8'$1'$%86($&786&$$*$,167
5866,$7+(*58$1'*5823(5$7,9(
&2817,,
5,&286&&$*$,167$//'()(1'$176
$ 7KH7UXPS&DPSDLJQ:DVWKH5DFNHWHHULQJ(QWHUSULVH
% $OWHUQDWLYHO\DQGDWWKH9HU\/HDVWWKH7UXPS&DPSDLJQ:DV3DUWRIDQ
$VVRFLDWLRQ,Q)DFW(QWHUSULVH
& 5,&23UHGLFDWH$FWV
' 5,&2'DPDJHV
&2817,,,
5,&2&2163,5$&<86&'$*$,167$//'()(1'$176
&2817,9
:,5(7$3$&786&$*$,167*5823(5$7,9(
:,.,/($.6$66$1*(7+(75803&$03$,*1$1'7+(75803
$662&,$7(6
&28179
6725('&20081,&$7,216$&786&$*$,167
5866,$7+(*58$1'*5823(5$7,9(
&28179,
',*,7$/0,//(11,80&23<5,*+7$&786&(76(4
$*$,1675866,$7+(*58$1'*5823(5$7,9(
LL
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 4 of 66
7$%/(2)&217(176
3DJH
&28179,,
0,6$335235,$7,212)75$'(6(&5(7681'(57+('()(1'75$'(
6(&5(76$&786&(76(4$*$,1675866,$7+(*58
*5823(5$7,9(:,.,/($.6$1'$66$1*(
&28179,,,
:$6+,1*721'&81,)25075$'(6(&5(76$&7'&&2'($11
±$*$,167$//'()(1'$176
&2817,;
75(63$66'&&20021/$:$*$,1675866,$7+(*58$1'
*5823(5$7,9(
&2817;
75(63$6672&+$77(/69,5*,1,$&20021/$:$*$,167
5866,$7+(*58$1'*5823(5$7,9(
&2817;,
&2163,5$&<72&200,775(63$6672&+$77(/69,5*,1,$
&20021/$:$*$,167$//'()(1'$176
&2817;,,
9,2/$7,212)7+(9,5*,1,$&20387(5&5,0(6$&79$&2'(
$11(76(4$*$,167$//'()(1'$176
35$<(5)255(/,()
-85<'(0$1'
LLL
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 5 of 66
,VNHQHURYLFK $JDODURY ³$UDV $JDODURY´ (PLQ $UD] $JDODURY ³(PLQ $JDODURY´ -RVHSK
5RJHU - 6WRQH -U ³6WRQH´ -DUHG & .XVKQHU ³.XVKQHU´ *HRUJH 3DSDGRSRXORV
1$785(2)$&7,21
, ,1752'8&7,21
1R RQH LV DERYH WKH ODZ ,Q WKH UXQXS WR WKH HOHFWLRQ 5XVVLD PRXQWHG D
EUD]HQDWWDFNRQ$PHULFDQ'HPRFUDF\7KHRSHQLQJVDOYRZDVDF\EHUDWWDFNRQWKH'1&FDUULHG
RXWRQ$PHULFDQVRLO,QDQG5XVVLDQLQWHOOLJHQFHVHUYLFHVKDFNHGLQWRWKH'1&¶V
FRPSXWHUV SHQHWUDWHG LWV SKRQH V\VWHPV DQG H[ILOWUDWHG WHQV RI WKRXVDQGV RI GRFXPHQWV DQG
HPDLOV5XVVLDWKHQXVHGWKLVVWROHQLQIRUPDWLRQWRDGYDQFHLWVRZQLQWHUHVWVGHVWDELOL]LQJWKH
86SROLWLFDOHQYLURQPHQWGHQLJUDWLQJWKH'HPRFUDWLFSUHVLGHQWLDOQRPLQHHDQGVXSSRUWLQJWKH
,QWKH7UXPSFDPSDLJQ5XVVLDIRXQGDZLOOLQJDQGDFWLYHSDUWQHULQWKLVHIIRUW,Q
LQGLYLGXDOVWLHGWRWKH.UHPOLQQRWLILHGWKH7UXPSFDPSDLJQWKDW5XVVLDLQWHQGHGWRLQWHUIHUH
ZLWK RXU GHPRFUDF\ 7KURXJK PXOWLSOH PHHWLQJV HPDLOV DQG RWKHU FRPPXQLFDWLRQV WKHVH
5XVVLDQDJHQWVPDGHFOHDUWKDWWKHLUJRYHUQPHQWVXSSRUWHG7UXPSDQGZDVSUHSDUHGWRXVHVWROHQ
HPDLOVDQGRWKHULQIRUPDWLRQWRGDPDJHKLVRSSRQHQWDQGWKH'HPRFUDWLFSDUW\
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 6 of 66
5DWKHUWKDQUHSRUWWKHVHUHSHDWHGPHVVDJHVWKDW5XVVLDLQWHQGHGWRLQWHUIHUHZLWK
86HOHFWLRQVWKH7UXPS&DPSDLJQDQGLWVDJHQWVJOHHIXOO\ZHOFRPHG5XVVLD¶VKHOS,QGHHGWKH
7UXPS&DPSDLJQVROLFLWHG5XVVLD¶VLOOHJDODVVLVWDQFHDQGPDLQWDLQHGVHFUHWFRPPXQLFDWLRQVZLWK
LQGLYLGXDOVWLHGWRWKH5XVVLDQJRYHUQPHQWLQFOXGLQJRQHRIWKHLQWHOOLJHQFHDJHQFLHVUHVSRQVLEOH
IRUDWWDFNLQJWKH'1&
7KURXJKWKHVHFRPPXQLFDWLRQVWKH7UXPS&DPSDLJQ7UXPS¶VFORVHVWDGYLVRUV
DQG5XVVLDQDJHQWVIRUPHGDQDJUHHPHQWWRSURPRWH'RQDOG7UXPS¶VFDQGLGDF\WKURXJKLOOHJDO
PHDQV5XVVLDQDJHQWVWUHVSDVVHGRQWRWKH'1&¶VFRPSXWHUQHWZRUNLQWKH8QLWHG6WDWHVDVZHOO
DVRWKHUHPDLODFFRXQWVFROOHFWHGWUDGHVHFUHWVDQGRWKHUSULYDWHGDWDDQGWKHQWUDQVPLWWHGWKH
GDWDWR'HIHQGDQW:LNL/HDNVZKRVHIRXQGHU$VVDQJHVKDUHGWKHGHIHQGDQWV¶FRPPRQJRDORI
GDPDJLQJWKH'HPRFUDWLFSDUW\LQDGYDQFHRIWKHHOHFWLRQ5XVVLDWKURXJKPLOLWDU\LQWHOOLJHQFH
WKURXJK:LNL/HDNVWKHQGLVVHPLQDWHGWKHLQIRUPDWLRQDWWLPHVZKHQLWZRXOGEHVWVXLWWKH7UXPS
&DPSDLJQ
$VVWROHQ'1&LQIRUPDWLRQZDVVWUDWHJLFDOO\UHOHDVHGLQWRWKHSXEOLFVSKHUHWKHQ
FDQGLGDWH7UXPSRSHQO\SUDLVHGWKHLOOHJDOGLVVHPLQDWLRQVDQGHQFRXUDJHG5XVVLDWRFRQWLQXHLWV
YLRODWLRQVRI86ODZWKURXJKLWVRQJRLQJKDFNLQJFDPSDLJQDJDLQVWWKH'HPRFUDWLFSDUW\
,, 29(59,(:2)7+(&2163,5$&<
5XVVLD¶V F\EHUDWWDFN RQ WKH '1& EHJDQ RQO\ ZHHNV DIWHU 7UXPS DQQRXQFHG KLV
FDQGLGDF\IRU3UHVLGHQWRIWKH8QLWHG6WDWHVLQ-XQHRI$QGZLWKLQPRQWKVDOOLHG(XURSHDQ
LQWHOOLJHQFHVHUYLFHVEHJDQUHSRUWLQJVXVSLFLRXVFRPPXQLFDWLRQVEHWZHHQ7UXPSDVVRFLDWHVDQG
5XVVLDQRSHUDWLYHVWRWKHLU86FRXQWHUSDUWV
,Q ODWH ZKLOH FDPSDLJQLQJ IRU 3UHVLGHQW7UXPS KLPVHOI VLJQHG D OHWWHU RI
LQWHQWWRGHYHORSDQGOLFHQVHKLVQDPHWRDQHZUHDOHVWDWHGHYHORSPHQWLQ0RVFRZ²SRWHQWLDOO\
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 7 of 66
IXOILOOLQJDGHFDGHVORQJGUHDP7KLVSURMHFWZDVWREHILQDQFHGWKURXJKD5XVVLDQEDQNXQGHU
VDQFWLRQE\WKH8QLWHG6WDWHV7KHGHDOZDVEURNHUHGE\)HOL[6DWHUD5XVVLDQpPLJUpFRQYLFWHG
IHORQDQGORQJWLPHEXVLQHVVSDUWQHURI7UXPS,QH[SODLQLQJWKHGHDOWR0LFKDHO&RKHQ7UXPS¶V
SHUVRQDODWWRUQH\6DWHUVXJJHVWHGWKDWKHZRXOGJHW5XVVLDQ3UHVLGHQW9ODGLPLU93XWLQ³3XWLQ´
WR VXSSRUW WKH SURMHFW LQ DQ HIIRUW WR ERRVW 7UXPS¶V HOHFWRUDO KRSHV ³, ZLOO JHW 3XWLQ RQ WKLV
SURJUDPDQGZHZLOOJHW'RQDOGHOHFWHG,NQRZKRZWRSOD\LWDQGZHZLOOJHWWKLVGRQH
%XGG\RXUER\FDQEHFRPH3UHVLGHQWRIWKH86$DQGZHFDQHQJLQHHULW,ZLOOJHWDOORI3XWLQV
WHDPWREX\LQRQWKLV,ZLOO´
%\HDUO\7UXPSZDVZHOORQKLVZD\WREHFRPLQJWKHIDYRULWHWRZLQWKH
*23 QRPLQDWLRQ $V 7UXPS PRYHG FORVHU WR VHFXULQJ WKH QRPLQDWLRQ WKH WLHV EHWZHHQ KLV
FDPSDLJQDQG5XVVLD¶VJRYHUQPHQWJUHZVXEVWDQWLDOO\
,Q)HEUXDU\UHWLUHG/W*HQ0LFKDHO7)O\QQEHJDQVHUYLQJDVDQLQIRUPDO
IRUHLJQSROLF\DGYLVRUWRWKH7UXPSFDPSDLJQ-XVWPRQWKVHDUOLHULQ'HFHPEHU)O\QQKDG
DQGVSHDNDWLWVDQQLYHUVDU\JDODLQ0RVFRZZKHUHKHGLQHGDWWKHVDPHWDEOHDV3XWLQ
,Q0DUFK7UXPSKLUHG0DQDIRUWZKRKDGVSHQWWKHSUHYLRXVGHFDGHZRUNLQJ
WR DGYDQFH .UHPOLQ LQWHUHVWV DV KLV FDPSDLJQ¶V FRQYHQWLRQ PDQDJHU (YHQ DIWHU MRLQLQJ WKH
7UXPSFDPSDLJQ0DQDIRUWPDLQWDLQHGFRQWDFWZLWKDQLQGLYLGXDOWLHGWRWKH*580DQDIRUWDOVR
RIIHUHGWREULHID3XWLQFRQQHFWHG5XVVLDQUHJDUGLQJWKHFDPSDLJQ
,Q$SULODQRWKHUVHWRI5XVVLDQLQWHOOLJHQFHDJHQWVVXFFHVVIXOO\KDFNHGLQWR
H[ILOWUDWLRQIURP'1&VHUYHUV)RXUGD\VODWHURQ$SULO7UXPS¶VIRUHLJQSROLF\DGYLVRU
3DSDGRSRXORV PHW ZLWK D .UHPOLQWLHG DJHQW ZKR LQIRUPHG 3DSDGRSRXORV WKDW WKH 5XVVLDQV
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 8 of 66
³KDYH GLUW´ RQ WKH 'HPRFUDWLF SUHVLGHQWLDO QRPLQHH LQ WKH IRUP RI ³WKRXVDQGV RI HPDLOV´
3DSDGRSRXORVGLGQRWUHSRUWWKLVLQIRUPDWLRQWR$PHULFDQODZHQIRUFHPHQW5DWKHUKHUHSRUWHG
EDFNWRKLVVXSHULRUVDWWKH7UXPS&DPSDLJQUHJDUGLQJ³LQWHUHVWLQJPHVVDJHVFRPLQJLQIURP
0RVFRZDERXWDWULSZKHQWKHWLPHLVULJKW´
%\-XQH5XVVLDKDGVWROHQWKRXVDQGVRI'1&GRFXPHQWVDQGHPDLOV2Q
-XQH5XVVLDQVFRQQHFWHGWRWKH.UHPOLQFRQWDFWHG'RQDOG7UXPS-UWRRIIHUGDPDJLQJ
LQIRUPDWLRQDERXWWKH'HPRFUDWLFSUHVLGHQWLDOQRPLQHHDV³SDUWRI5XVVLDDQGLWVJRYHUQPHQW¶V
VXSSRUWIRU0U7UXPS´7UXPS-UGLGQRWKLQJWRDOHUW$PHULFDQODZHQIRUFHPHQW5DWKHUKH
H[SUHVVO\HPEUDFHGWKHLOOHJDOSODQUHVSRQGLQJ³,ORYHLWHVSHFLDOO\ODWHULQWKHVXPPHU´
2Q-XQH7UXPS-U0DQDIRUWDQG.XVKQHUPHWZLWKWKH5XVVLDQVLQ7UXPS
7RZHU'D\VODWHURQ-XQH*582SHUDWLYHZLGHO\GLVVHPLQDWHGDWURYHRIVWROHQ
GRFXPHQWVWRWKHSXEOLFFODLPLQJWKH\ZHUH'1&PDWHULDO
,Q-XO\WKH*23KHOGLWVQDWLRQDOFRQYHQWLRQ$WWKHFRQYHQWLRQWKH7UXPS
&DPSDLJQLQWHUYHQHGWRSUHYHQWRWKHU5HSXEOLFDQVIURPLQVHUWLQJDQWL5XVVLDQODQJXDJHUHJDUGLQJ
8NUDLQHLQWRWKH*23SODWIRUP'D\VODWHURQ-XO\DOVRRQWKHHYHRIWKH'HPRFUDWLF
1DWLRQDO&RQYHQWLRQ:LNL/HDNVEHJDQGLVVHPLQDWLQJVWROHQ'1&GRFXPHQWVLQFOXGLQJHPDLOV
DQGRWKHUVHQVLWLYHSURSULHWDU\GRFXPHQWVWRWKHSXEOLF
7KURXJKRXW WKH VXPPHU DQG IDOO RI GXULQJ WKH KHLJKW RI WKH 3UHVLGHQWLDO
FDPSDLJQ 7UXPS¶V DVVRFLDWHV FRQWLQXHG WR VHFUHWO\ FRPPXQLFDWH ZLWK 5XVVLDQ DJHQWV DQG
:LNL/HDNV DV WKH\ VWUDWHJLFDOO\ GLVVHPLQDWHG LQIRUPDWLRQ VWROHQ IURP 'HPRFUDWLF WDUJHWV
%HJLQQLQJ LQ $XJXVW 6WRQH EHJDQ VHFUHWO\ FRPPXQLFDWLQJ ZLWK *58 2SHUDWLYH DQG
FRQWLQXHGWREUDJDERXWKLVFRQWDFWVZLWK$VVDQJH,QDGGLWLRQGXULQJWKLVWLPH*DWHVZKRVHUYHG
DV WKH 7UXPS &DPSDLJQ¶V GHSXW\ FKDLUPDQ DQG WKHQ OLDLVRQ WR WKH 5HSXEOLFDQ 1DWLRQDO
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 9 of 66
&RPPLWWHHPDLQWDLQHGVHFUHWFRPPXQLFDWLRQZLWKDQLQGLYLGXDOKHNQHZWREHFRQQHFWHGWRWKH
*58
,QWKHVXPPHUDQGIDOORI6WRQHUHYHDOHGLQIRUPDWLRQWKDWKHFRXOGQRWKDYH
KDG XQOHVV KH ZHUH FRPPXQLFDWLQJ ZLWK HLWKHU :LNL/HDNV RU 5XVVLDQ RSHUDWLYHV DERXW WKHLU
KDFNLQJRSHUDWLRQVLQWKH8QLWHG6WDWHV,Q$XJXVWRIQRERG\LQWKHSXEOLFVSKHUHNQHZWKDW
5XVVLD KDG VWROHQ HPDLOV IURP -RKQ 3RGHVWD WKH FKDLUPDQ RI 6HFUHWDU\ +LOODU\ &OLQWRQ¶V
SUHVLGHQWLDO FDPSDLJQ 1HYHUWKHOHVV RQ $XJXVW 6WRQH SUHGLFWHG WKDW GDPDJLQJ
LQIRUPDWLRQDERXW3RGHVWDZRXOGEHUHOHDVHGWZHHWLQJ³LWZLOOVRRQ>EH@3RGHVWD¶VWLPHLQWKH
EDUUHO´:HHNVODWHU:LNL/HDNVEHJDQUHOHDVLQJEDWFKHVRI3RGHVWD¶VHPDLOVRQDQHDUGDLO\EDVLV
XQWLO(OHFWLRQ'D\²DV6WRQHKDGSUHGLFWHG6LPLODUO\LQPLG6HSWHPEHU6WRQHVDLGWKDWKH
H[SHFWHG ³-XOLDQ $VVDQJH DQG WKH :LNL/HDNV SHRSOH WR GURS D SD\ORDG RI QHZ GRFXPHQWV RQ
+LOODU\>&OLQWRQ@RQDZHHNO\EDVLVIDLUO\VRRQ´$QGEHJLQQLQJRQ2FWREHU:LNL/HDNV
EHJDQUHOHDVLQJVWROHQHPDLOVRQDQHDUGDLO\EDVLV²DV6WRQHKDGSUHGLFWHG
7UXPS-UDOVRVHFUHWO\FRPPXQLFDWHGZLWK:LNL/HDNV,QRQHH[FKDQJH7UXPS
-UZDVRIIHUHGDSDVVZRUGWRDQDQWL7UXPSZHEVLWH:LNL/HDNVDOVRDVNHG7UXPS-UWRKDYH
KLVIDWKHUUHWZHHWDOLQNWR:LNL/HDNV¶WURYHRIVWROHQHPDLOV)LIWHHQPLQXWHVODWHU7UXPSWZHHWHG
DPHVVDJHDERXWWKHPHGLD¶VODFNRIDWWHQWLRQWR:LNL/HDNV¶HPDLOUHOHDVHV
7KURXJKRXWWKHIDOORI7UXPSSUDLVHGWKHLOOHJDOGLVVHPLQDWLRQRI'1&DQG
RWKHU 'HPRFUDWLF GRFXPHQWV DW YDULRXV SRLQWV PDNLQJ LW D FHQWUDO WKHPH RI KLV VSHHFKHV DQG
UDOOLHV,QGHHG7UXPSUHSHDWHGO\SUDLVHGWKHLOOHJDOGLVVHPLQDWLRQVZLWKH[FODPDWLRQVVXFKDV³,
ORYH:LNLOHDNV´
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 10 of 66
2Q 1RYHPEHU 7UXPS ZRQ WKH 3UHVLGHQF\ RI WKH 8QLWHG 6WDWHV 7KH
UHDFWLRQLQ5XVVLDZDVMXELODWLRQZLWKDPHPEHURI5XVVLD¶VSDUOLDPHQWDQQRXQFLQJWRKLVIHOORZ
OHJLVODWRUV³,FRQJUDWXODWH\RXDOORQWKLV´
7KH FRQVSLUDF\ FRQVWLWXWHG DQ DFW RI SUHYLRXVO\ XQLPDJLQDEOH WUHDFKHU\ WKH
FDPSDLJQRIWKHSUHVLGHQWLDOQRPLQHHRIDPDMRUSDUW\LQOHDJXHZLWKDKRVWLOHIRUHLJQSRZHUWR
EROVWHU LWV RZQ FKDQFH WR ZLQ WKH 3UHVLGHQF\ $QG LQ FDUU\LQJ RXW WKLV HIIRUW 'HIHQGDQWV
FRQVSLUHGWRGLVVHPLQDWHGRFXPHQWVVWROHQIURPWKH'1&LQYLRODWLRQRIWKHODZVRIWKH8QLWHG
6WDWHVDVZHOODVWKHODZVRIWKH6WDWHRI9LUJLQLDDQGWKH'LVWULFWRI&ROXPELD8QGHUWKHODZV
RIWKLVQDWLRQ5XVVLDDQGLWVFRFRQVSLUDWRUVPXVWDQVZHUIRUWKHVHDFWLRQV
,,, '$0$*(6727+('1&
7KH LOOHJDO FRQVSLUDF\ LQIOLFWHG SURIRXQG GDPDJH XSRQ WKH '1& 'HIHQGDQWV
XQGHUPLQHGDQGGLVWRUWHGWKH'1&¶VDELOLW\WRFRPPXQLFDWHWKHSDUW\¶VYDOXHVDQGYLVLRQWRWKH
$PHULFDQHOHFWRUDWHVRZHGGLVFRUGZLWKLQWKH'HPRFUDWLFSDUW\DWDWLPHZKHQSDUW\XQLW\ZDV
HVVHQWLDO WR HOHFWRUDO VXFFHVV DQG VHULRXVO\ FRPSURPLVHG WKH '1&¶V LQWHUQDO DQG H[WHUQDO
FRPPXQLFDWLRQV
$WWKHVDPHWLPH'HIHQGDQWV¶FRQGXFWUHVXOWHGLQDGUDPDWLFGURSLQGRQDWLRQVWR
WKH'1&7KHGLVVHPLQDWLRQRIKDFNHGLQIRUPDWLRQKHLJKWHQHGGRQRUV¶FRQFHUQVWKDWFRQILGHQWLDO
LQIRUPDWLRQGLVFORVHGWKURXJKWKHLUFRQWULEXWLRQVPLJKWEHSXEOLFO\GLVVHPLQDWHG
7KH'1&DOVRSDLGPRUHWKDQDPLOOLRQGROODUVWRUHSDLUDQGUHPHGLDWHHOHFWURQLF
HTXLSPHQWDQGWRKLUHVWDIIDQGFRQVXOWDQWVWRDGGUHVVWKHF\EHUVHFXULW\IDOORXWIURPWKHKDFNDQG
GLVVHPLQDWLRQ
)LQDOO\ EHFDXVH WKH UHOHDVHV LQFOXGHG SHUVRQDO DQG LQ VRPH FDVHV SURWHFWHG
LQIRUPDWLRQDERXW'1&HPSOR\HHVVRPH'1&HPSOR\HHVZHUHH[SRVHGWRKDUDVVPHQWDQGGHDWK
WKUHDWV2QHUHSUHVHQWDWLYHHPDLOVDLG³,KRSHDOO\RXUFKLOGUHQJHWUDSHGDQGPXUGHUHG,KRSH
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 11 of 66
\RXU IDPLO\ NQRZV QRWKLQJ EXW VXIIHULQJWRUWXUH DQG GHDWK´ 8QGHUVWDQGDEO\ WKLV KDUDVVPHQW
LPSDLUHGWKHHPSOR\HHV¶DELOLW\WRIXQFWLRQHIIHFWLYHO\LQWKHLUMREV
:KLOH QR VXLW FDQ HYHU IXOO\ UHGUHVV WKH KDUP WKDW 'HIHQGDQWV¶ LOOHJDO FRQGXFW
H[DFWHGWKH'1&EULQJVWKLVODZVXLWWRVHHNWKHIXOOPHDVXUHRIUHOLHIXQGHUWKHODZVRIWKH8QLWHG
6WDWHV
$FFRUGLQJO\ 3ODLQWLII EULQJV WKLV DFWLRQ WR DGGUHVV WKH LQGLYLGXDO DQG FROOHFWLYH
FRQGXFWRI'HIHQGDQWVXQGHUWKHVWDWXWHVDQGFRPPRQODZGLVFXVVHGKHUHLQ3ODLQWLIILVHQWLWOHG
WRUHOLHIIURPDOOWKRVHLQYROYHGLQWKHVFKHPH
-85,6',&7,21$1'9(18(
7KLV&RXUWKDVIHGHUDOTXHVWLRQMXULVGLFWLRQSXUVXDQWWR86&EHFDXVH
5DFNHWHHU ,QIOXHQFHG DQG &RUUXSW 2UJDQL]DWLRQV $FW 86& WKH 6WRUHG
3XE/1R6WDWWKH'HIHQG7UDGH6HFUHWV$FWFRGLILHGLQVFDWWHUHGVHFWLRQV
7KLV&RXUWKDVVXSSOHPHQWDOMXULVGLFWLRQRYHU3ODLQWLII¶VVWDWHODZFODLPVSXUVXDQWWR86&
E
7KLV&RXUWKDVMXULVGLFWLRQRYHUWKHFODLPVDJDLQVW5XVVLDDQGWKH*58SXUVXDQWWR
86&EHFDXVH5XVVLDLVDIRUHLJQVWDWHVHH86&DDQGWKH*58LVDQ
³DJHQF\RULQVWUXPHQWDOLW\´RIWKHVWDWH86&E
5XVVLDLVQRWHQWLWOHGWRVRYHUHLJQLPPXQLW\EHFDXVHWKH'1&¶VFODLPVDULVHRXWRI
5XVVLD¶V WUHVSDVV RQWR WKH '1&¶V SULYDWH VHUYHUV²D WRUWLRXV DFW FRPPLWWHG LQ WKH 8QLWHG
6WDWHV6HH86&D,QDGGLWLRQ5XVVLDFRPPLWWHGWKHWUHVSDVVLQRUGHUWRVWHDO
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 12 of 66
WUDGHVHFUHWVDQGFRPPLWHFRQRPLFHVSLRQDJHWZRIRUPVRIFRPPHUFLDODFWLYLW\XQGHUWDNHQLQ
DQGGLUHFWO\DIIHFWLQJWKH8QLWHG6WDWHV6HHLGD
SDUWRIWKHHYHQWVJLYLQJULVHWRWKHFODLPVRFFXUUHGLQ1HZ<RUN&LW\1<'HIHQGDQW7UXPS
&DPSDLJQ ,QF LV KHDGTXDUWHUHG DW )LIWK $YHQXH 1HZ <RUN &LW\ 1< 'HIHQGDQW
'RQDOG-7UXPS-UUHVLGHVLQ1HZ<RUN&LW\1<DQGDVXEVWDQWLDOQXPEHURIWKHPHHWLQJVDQG
LQWHUDFWLRQVPDGHLQIXUWKHUDQFHRIWKHFRQVSLUDF\DWLVVXHZHUHORFDWHGLQ1HZ<RUN&LW\1<
9HQXHLVSURSHUIRUWKHFODLPVDULVLQJXQGHU5,&2SXUVXDQWWR86&D
EHFDXVH'HIHQGDQWVUHVLGHDUHIRXQGKDYHDJHQWVRUWUDQVDFWDIIDLUVLQ1HZ<RUN1<
3$57,(6
3ODLQWLII'1&UHJLVWHUHGZLWKWKH)HGHUDO(OHFWLRQ&RPPLVVLRQDV'1&6HUYLFHV
&RUS'HP1DW¶O&RPPLWWHHLVDQDWLRQDOFRPPLWWHHDVWKDWWHUPLVGHILQHGE\DQGXVHGLQ
86&GHGLFDWHGWRHOHFWLQJORFDOVWDWHDQGQDWLRQDOFDQGLGDWHV²LQFOXGLQJSUHVLGHQWLDO
FDQGLGDWHV²RIWKH'HPRFUDWLF3DUW\WRSXEOLFRIILFH7RDFFRPSOLVKLWVPLVVLRQWKH'1&DPRQJ
RWKHUWKLQJVZRUNVFORVHO\ZLWK'HPRFUDWLFSXEOLFRIILFLDOVDQGDVVLVWVVWDWHSDUWLHVDQGFDQGLGDWHV
E\ FRQWULEXWLQJ PRQH\ PDNLQJ H[SHQGLWXUHV RQ WKHLU EHKDOYHV DQG SURYLGLQJ DFWLYH VXSSRUW
WKURXJKWKHGHYHORSPHQWRISURJUDPVEHQHILWLQJ'HPRFUDWLFFDQGLGDWHV7KH'1&DOVRSODQVWKH
'HPRFUDWLF 3DUW\¶V SUHVLGHQWLDO QRPLQDWLQJ FRQYHQWLRQ DQG SURPRWHV WKH 'HPRFUDWLF 3DUW\¶V
SODWIRUP7KH'1&UHJXODUO\FRQGXFWVLWVEXVLQHVVYLDHPDLOKRXVHGRQVHFXUHGVHUYHUV,WDOVR
UHJXODUO\ FUHDWHV DQG PDLQWDLQV FRS\ULJKWHG PDWHULDOV RQ LWV VHUYHUV DV ZHOO DV FRQILGHQWLDO
SURSULHWDU\ GRFXPHQWV UHODWHG WR FDPSDLJQV IXQGUDLVLQJ DQG FDPSDLJQ VWUDWHJ\ WKDW DUH WKH
'1&¶VWUDGHVHFUHWV
'HIHQGDQW5XVVLDLVDIRUHLJQVWDWHDVGHILQHGXQGHUWKHODZVRIWKH8QLWHG6WDWHV
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 13 of 66
'HIHQGDQW *58 LV 5XVVLD¶V PLOLWDU\ LQWHOOLJHQFH DJHQF\ 8SRQ LQIRUPDWLRQ DQG
EHOLHIWKH*58FUHDWHGWKHRQOLQHSVHXGRQ\P³*XFFLIHU´WRGLVVHPLQDWHVWROHQGRFXPHQWV
DQGLQIRUPDWLRQ
RQOLQH SVHXGRQ\P ³*XFFLIHU ´ WR GLVVHPLQDWH VWROHQ GRFXPHQWV DQG LQIRUPDWLRQ 8SRQ
LQIRUPDWLRQDQGEHOLHI*582SHUDWLYHLVD*58LQWHOOLJHQFHRIILFHUVZRUNLQJRXWRI*58
KHDGTXDUWHUVORFDWHGRQ*UL]RGXERYR\6WUHHWLQ0RVFRZ5XVVLD
'HIHQGDQWV-RKQ'RHDUHRWKHU5XVVLDQLQWHOOLJHQFHRIILFHUVRUDJHQFLHVZKR
SDUWLFLSDWHGLQWKHFRQVSLUDF\WRKDFNLQWR3ODLQWLII¶VFRPSXWHUVDQGGLVVHPLQDWHVWROHQGRFXPHQWV
DQGLQIRUPDWLRQ
'HIHQGDQW$UDV$JDODURYLVDQ$]HULERUQROLJDUFKLQ5XVVLDZKRLVDFORVHDOO\RI
3XWLQ7UXPSZRUNHGZLWK$UDV$JDODURYZKRVHUYHGDVDOLDLVRQEHWZHHQ7UXPSDQG3XWLQWR
EULQJWKH0LVV8QLYHUVHSDJHDQWWR0RVFRZLQIRUZKLFK$UDV$JDODURYSDLG7UXPSPLOOLRQV
RIGROODUV'XULQJ7UXPS¶V1RYHPEHUWULSWR5XVVLDKHDQG$UDV$JDODURYUHSRUWHGO\DJUHHG
RQDQRWKHUGHDOWRH[SORUHUHDOHVWDWHRSSRUWXQLWLHVLQ5XVVLDWRJHWKHU$UDV$JDODURYUHSRUWHGO\
KDVODQGUHVHUYHGLQ5XVVLDIRUD7UXPSEUDQGHGUHDOHVWDWHGHYHORSPHQW
'HIHQGDQW(PLQ$JDODURYLV$UDV$JDODURY¶VVRQ(PLQ$JDODURYLVDSRSVLQJHU
DQGH[HFXWLYHDWWKHIDPLO\¶VUHDOHVWDWHFRPSDQ\+HHVWDEOLVKHGDFORVHUHODWLRQVKLSZLWKWKH
7UXPSVRYHUWKHFRXUVHRIWKHLUSDUWQHUVKLSRQWKH0LVV8QLYHUVHSDJHDQW/LNHKLVIDWKHU
(PLQ $JDODURY UHPDLQHG LQ FRQWDFW ZLWK 7UXPS DQG 7UXPS -U DIWHU DQG LQWR WKH
FDPSDLJQ7KH$JDODURYVILJXUHSURPLQHQWO\LQWKH-XQH7UXPS7RZHUPHHWLQJGHVFULEHG
EHORZ
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 14 of 66
'HIHQGDQW-RVHSK0LIVXGLVDQDFDGHPLFZKRXSRQLQIRUPDWLRQDQGEHOLHIZRUNHG
LQVHYHUDOSRVLWLRQVIRUWKHJRYHUQPHQWRI0DOWD0LIVXGDSSDUHQWO\KDGDIILOLDWLRQVZLWKDYDULHW\
RIHGXFDWLRQDORUJDQL]DWLRQVDQGLQVWLWXWLRQVLQWKH8QLWHG.LQJGRPDQG0DOWD8SRQLQIRUPDWLRQ
DQGEHOLHI0LIVXGKDVVXEVWDQWLDOFRQQHFWLRQVWRWKH5XVVLDQJRYHUQPHQWDQGDFWHGDVDGHIDFWR
DJHQWRIWKH5XVVLDQJRYHUQPHQWLQKLVFRQWDFWVZLWK3DSDGRSRXORVLQ
'HIHQGDQW$VVDQJHLVWKHIRXQGHUDQGSXEOLVKHURI:LNL/HDNV+HLVDFLWL]HQRI
$XVWUDOLDDQGUHVLGHVLQWKHHPEDVV\RIWKH*RYHUQPHQWRI(FXDGRULQ/RQGRQ(QJODQG$VVDQJH
KDVH[KLELWHGVXSSRUWIRUWKH5XVVLDQJRYHUQPHQWDQGKDVKRVWHGDWDONVKRZRQ5XVVLD7RGD\
³57´DWHOHYLVLRQSURSDJDQGDRXWOHWIXQGHGE\WKH5XVVLDQJRYHUQPHQW
'HIHQGDQW :LNL/HDNV LV DQ RUJDQL]DWLRQ RI XQNQRZQ VWUXFWXUH WKDW RSHUDWHV D
ZHEVLWH :LNL/HDNVRUJ RQ ZKLFK LW SXEOLVKHV OHDNHG RU VWROHQ FRQILGHQWLDO DQG FODVVLILHG
LQIRUPDWLRQ,WVUHJLVWHUHGDGGUHVVLV32%R[6DQ0DWHR&$
'HIHQGDQW7UXPS&DPSDLJQLVDQ$PHULFDQQRWIRUSURILWFRUSRUDWLRQIRUPHGDQG
UHJLVWHUHGLQ9LUJLQLDRQ-XQHWRVXSSRUW7UXPS¶VFDQGLGDF\IRU3UHVLGHQWRIWKH8QLWHG
6WDWHV7KH7UXPS&DPSDLJQLVLQFRUSRUDWHGXQGHUWKHODZVRI9LUJLQLDDQGKDVRUKDGDQRIILFH
DW1:DVKLQJWRQ6W$OH[DQGULD9$,WVSULQFLSDOSODFHRIEXVLQHVVLV7UXPS7RZHU
)LIWK$YHQXH1HZ<RUN&LW\1<)URP-XQHWR-XQH&RUH\/HZDQGRZVNL
ZDV&DPSDLJQ0DQDJHURIWKH7UXPS&DPSDLJQ)URP0DUFKWR0D\0DQDIRUWZDV
&RQYHQWLRQ 0DQDJHU RI WKH 7UXPS &DPSDLJQ DQG IURP 0D\ WR $XJXVW KH ZDV
&DPSDLJQ&KDLUPDQRIWKH7UXPS&DPSDLJQ)URP-XQHWR$XJXVW*DWHVZDV'HSXW\
&DPSDLJQ&KDLUPDQDQGIURP$XJXVWWR1RYHPEHUKHZDVWKHFDPSDLJQ¶VOLDLVRQWR
WKH 5HSXEOLFDQ 1DWLRQDO &RPPLWWHH 0XOWLSOH VHQLRU PHPEHUV RI WKH 7UXPS &DPSDLJQ DUH
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 15 of 66
UHSRUWHGWRKDYHORQJWLPHWLHVWR5XVVLDDQGWRKDYHHQJDJHGLQIUHTXHQWFRPPXQLFDWLRQZLWK
LQGLYLGXDOVWLHGWRWKH5XVVLDQJRYHUQPHQWGXULQJWKHFDPSDLJQF\FOH
'HIHQGDQW7UXPS-ULVWKHROGHVWVRQRI3UHVLGHQWRIWKH8QLWHG6WDWHV'RQDOG-
7UXPS)URP-XQHXQWLO1RYHPEHUZKHQ'RQDOG-7UXPSZDVD5HSXEOLFDQ
FDQGLGDWHIRUSUHVLGHQW7UXPS-UVHUYHGDVDIUHTXHQWVXUURJDWHIRUQRZ3UHVLGHQW7UXPSDQG
KDVEHHQGHVFULEHGDV³DFORVHSROLWLFDODGYLVRUWRKLVIDWKHU´DQGD³NH\SOD\HULQ>KLV@IDWKHU¶V
:KLWH +RXVH UXQ´ 7UXPS -U FXUUHQWO\ ZRUNV DV ([HFXWLYH 9LFH 3UHVLGHQW RI WKH 7UXPS
2UJDQL]DWLRQ WKH EXVLQHVV RUJDQL]DWLRQ WKDW ZDV UXQ E\ 7UXPS SULRU WR KLV LQDXJXUDWLRQ DV
3UHVLGHQWRIWKH8QLWHG6WDWHV7UXPS-UUHVLGHVLQ1HZ<RUN&LW\1HZ<RUN
'HIHQGDQW 0DQDIRUW LV D ORQJWLPH 5HSXEOLFDQ SROLWLFDO RSHUDWLYH ZKR ZDV
&RQYHQWLRQ 0DQDJHU RI WKH 7UXPS &DPSDLJQ IURP 0DUFK WR 0D\ DQG &DPSDLJQ
&KDLUPDQRIWKH7UXPS&DPSDLJQIURP0D\WR$XJXVWZKHQKHUHVLJQHGDPLGUHSRUWV
RI KLV ZRUN ZLWK WKH IRUPHUO\ SUR5XVVLDQ JRYHUQPHQW LQ 8NUDLQH 6LQFH 2FWREHU
0DQDIRUWKDVEHHQLQGLFWHGRQGR]HQVRIFRXQWVLQFOXGLQJPRQH\ODXQGHULQJDQGIDOVHVWDWHPHQWV
UHODWHGWRKLVZRUNIRUWKHSUR5XVVLDQJRYHUQPHQWLQ8NUDLQH0DQDIRUWUHVLGHVLQ9LUJLQLD
'HIHQGDQW6WRQHLV7UXPS¶VORQJWLPHFRQILGDQW³>)@HZSHRSOHJRDVIDUEDFN>DV@
7UXPS>DQG@6WRQH´DQG6WRQHKDV³QXUWXUHGWKHGUHDPRID>7UXPS@SUHVLGHQWLDOUXQIRU
\HDUV´6WRQHDOVRKDVDORQJKLVWRU\ZLWK0DQDIRUW0DQDIRUWKHOSHGUXQ6WRQH¶VFDPSDLJQIRU
QDWLRQDOFKDLUPDQRIWKH<RXQJ5HSXEOLFDQVLQDQGWKHWZRFRIRXQGHGDFRQVXOWLQJILUP²
%ODFN0DQDIRUW6WRQHDQG.HOO\²LQWKHV8SRQLQIRUPDWLRQDQGEHOLHI6WRQHVHUYHGDV
DQ LQIRUPDO DGYLVHU WR 7UXPS DQG UHPDLQHG LQ FRQWDFW ZLWK KLP WKURXJKRXW WKH HOHFWLRQ
6WRQHUHVLGHVLQ)ORULGD
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 16 of 66
'HIHQGDQW.XVKQHULV7UXPS¶VVRQLQODZDQGZDVDVHQLRUDGYLVRUWRDQGRQHRI
WKH NH\ GHFLVLRQPDNHUV IRU WKH 7UXPS &DPSDLJQ ,Q -XQH .XVKQHU ³WRRN RYHU DOO GDWD
GULYHQHIIRUWV´IRUWKHFDPSDLJQVHWWLQJXSDSHUVRQ³GDWDKXE´LQ6DQ$QWRQLR7H[DVDQG
KLULQJ &DPEULGJH $QDO\WLFD D VRFLDO PHGLD DQG DQDO\WLFV ILUP WR KHOS KLV IDWKHULQODZ¶V
FDPSDLJQ.XVKQHUUHVLGHVLQ:DVKLQJWRQ'&
'HIHQGDQW 3DSDGRSRXORV ZDV RQH RI WKH HDUOLHVW IRUHLJQ SROLF\ DGYLVRUV WR WKH
7UXPSFDPSDLJQ+HEHFDPHDIRUHLJQSROLF\DGYLVHUWRWKH7UXPS&DPSDLJQLQ0DUFK
3DSDGRSRXORV ZDV LQ IUHTXHQW FRQWDFW ZLWKWKH 7UXPS &DPSDLJQ¶VPRVW VHQLRU RIILFLDOV LQ WKH
VXPPHU DQG IDOO RI +H UHVLGHV LQ &KLFDJR ,OOLQRLV 2Q 2FWREHU 3DSDGRSRXORV
SOHDGHGJXLOW\WRRQHFRXQWRIPDNLQJDIDOVHVWDWHPHQWWRDIHGHUDODJHQW
'HIHQGDQW *DWHV LV D ORQJWLPH HPSOR\HH DQG EXVLQHVV SDUWQHU RI 0DQDIRUW
%HWZHHQ DQG *DWHV ZDV FORVHO\ LQYROYHG LQ 0DQDIRUW¶V ZRUN IRU WKH IRUPHU SUR
5XVVLDQ UHJLPH LQ 8NUDLQH DQG LWV VXFFHVVRU SROLWLFDO SDUW\ %HWZHHQ 2FWREHU DQG
)HEUXDU\*DWHVZDVLQGLFWHGRQGR]HQVRIFRXQWVLQFOXGLQJPRQH\ODXQGHULQJDQGIDOVH
VWDWHPHQWVUHODWHGWRKLVZRUNZLWK0DQDIRUWIRUWKHSUR5XVVLDQJRYHUQPHQWLQ8NUDLQH2Q
)HEUXDU\*DWHVSOHDGHGJXLOW\WRRQHFRXQWRIFRQVSLUDF\DJDLQVWWKH8QLWHG6WDWHVDQG
RQH FRXQW RI PDNLQJ D IDOVH VWDWHPHQW WR D IHGHUDO DJHQW *DWHV UHVLGHV LQ 5LFKPRQG 9$
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 17 of 66
*(1(5$/$//(*$7,216
, 75803¶6$1'75803$662&,$7(6¶35((;,67,1*5(/$7,216+,36
:,7+5866,$$1'5866,$12/,*$5&+63529,'(')(57,/(*5281'
)255866,$75803&2163,5$&<
7UXPS¶VDQGVHYHUDO7UXPS$VVRFLDWHV¶ORQJVWDQGLQJSHUVRQDOSURIHVVLRQDODQG
ILQDQFLDO WLHV WR 5XVVLD DQG QXPHURXV LQGLYLGXDOV FORVHO\ OLQNHG WR WKH 5XVVLDQ JRYHUQPHQW
SURYLGHGIHUWLOHJURXQGIRUDFRQVSLUDF\EHWZHHQ'HIHQGDQWVWRLQWHUIHUHLQWKHHOHFWLRQV
7UXPS¶V%XVLQHVV&RQQHFWLRQVWR5XVVLD$VHDUO\DVWKHVWKH6RYLHW8QLRQ
SDLGIRU7UXPSWRWUDYHOWR0RVFRZWRGLVFXVVDSRWHQWLDOGHYHORSPHQWSURMHFW²DSDWWHUQZKLFK
FRQWLQXHG LQWR WKH V DQG V ,Q WKH PLGV 7UXPS QHJRWLDWHG ZLWK 5XVVLDQ
JRYHUQPHQW RIILFLDOV RYHU SRWHQWLDO UHDO HVWDWH GHYHORSPHQWV LQ 0RVFRZ %HJLQQLQJ LQ
7UXPSHQJDJHGLQPXOWLSOHUHDOHVWDWHGHDOVZLWKWKH%D\URFN*URXSDILUPIRXQGHGDQGUXQE\
6RYLHWHPLJUHVZKRUHSRUWHGO\KDGFORVHWLHVWRWKH5XVVLDQJRYHUQPHQWDQG5XVVLDQRUJDQL]HG
FULPH,Q7UXPSQHJRWLDWHGZLWKWKH'HSXW\0D\RURI0RVFRZRYHUDSRWHQWLDOUHDOHVWDWH
GHYHORSPHQW,QWKHPLGV7UXPSSDUWQHUHGZLWKZHDOWK\5XVVLDQ&DQDGLDQEXVLQHVVPHQ
WR GHYHORS UHDO HVWDWH LQ 7RURQWR $QG LQ 7UXPS FRQWUDFWHG ZLWK WKH 5XVVLDQ 6WDQGDUG
&RUSRUDWLRQD0RVFRZEDVHGHQWLW\WKDWRZQVDQGRSHUDWHVWKH0LVV5XVVLDEHDXW\SDJHDQWWR
DOORZWKHZLQQHURIWKHSDJHDQWWRFRPSHWHLQ7UXPS¶V0LVV8QLYHUVHSDJHDQWDQDFWLRQWKDWKDG
QRW EHHQ WDNHQ VLQFH DW OHDVW ,Q 7UXPS VROG D 3DOP %HDFK )ORULGD PDQVLRQ WR D
5XVVLDQROLJDUFKIRUDPLOOLRQSURILW,Q7UXPSHVWDEOLVKHGDEXVLQHVVUHODWLRQVKLSZLWK
5XVVLDQROLJDUFK$UDV$JDODURYDFORVHDOO\RI3XWLQWREULQJWKH0LVV8QLYHUVHSDJHDQWWR5XVVLD
DQGZRUNRQSODQVWRGHYHORSD7UXPSEUDQGHGSURMHFWLQ0RVFRZ7UXPS¶VHIIRUWVWRGHYHORS
UHDO HVWDWH LQ 5XVVLD FRQWLQXHG LQWR WKH ILUVW PRQWKV RI WKH SUHVLGHQWLDO FDPSDLJQ $QG
WKURXJKRXWWKLV\HDUKLVWRU\7UXPSVRXJKWRXWZHDOWK\5XVVLDQEX\HUVIRUKLVFRQGRPLQLXPV
LQWKH8QLWHG6WDWHVDQGDEURDG
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 18 of 66
$V7UXPS-UH[SODLQHGWKH7UXPS2UJDQL]DWLRQ³V>DZ@DORWRIPRQH\SRXULQJLQ
IURP5XVVLD´DQG³5XVVLDQVPDNHXSDSUHWW\GLVSURSRUWLRQDWHFURVVVHFWLRQRIRXUDVVHWV´$QG
7UXPS¶VVRQ(ULF7UXPSKDVUHSRUWHGO\VWDWHGWKDWVXEVWDQWLDOIXQGLQJIRU7UXPS¶VJROIFRXUVHV
FRPHVIURP5XVVLDQLQYHVWRUV
0DQDIRUW DQG *DWHV¶ 8NUDLQLDQ &RQQHFWLRQV )URP XQWLO DW OHDVW
0DQDIRUW ZDV DQ DGYLVRU WR WKH 5XVVLDQDOOLHG IRUPHU 8NUDLQLDQ 3UHVLGHQW 9LNWRU <DQXNRY\FK
³<DQXNRY\FK´DQGKLV.UHPOLQDOOLHG3DUW\RI5HJLRQVDVZHOODVLWVVXFFHVVRUWKH2SSRVLWLRQ
%ORF,Q0DQDIRUWDOOHJHGO\KHOSHGWKH8NUDLQLDQSDUW\VHFUHWO\URXWHDWOHDVWPLOOLRQ
LQSD\PHQWVWRWZRSURPLQHQW:DVKLQJWRQOREE\LQJILUPV0DQDIRUW¶VWLHVWR<DQXNRY\FKDQG
WKH 8NUDLQH DUH VR GHHS WKDW KLV RZQ GDXJKWHU KDV VWDWHG WKDW WKH ³PRQH\ ZH KDYH LV EORRG
PRQH\´$IWHUUHSHDWHGO\GHQ\LQJWKDWKHKDGHYHUZRUNHGIRUWKH8NUDLQLDQJRYHUQPHQWRQ
-XQH0DQDIRUWUHWURDFWLYHO\UHJLVWHUHGDVDIRUHLJQDJHQWDQGUHSRUWHGPLOOLRQLQ
SD\PHQWVIURP<DQXNRY\FK¶VSDUW\EHWZHHQDQG6LQFH2FWREHU0DQDIRUW
KDVEHHQLQGLFWHGRQGR]HQVRIFRXQWVLQFOXGLQJPRQH\ODXQGHULQJDQGPDNLQJIDOVHVWDWHPHQWV
UHODWHG WR KLV ZRUN IRU WKH SUR5XVVLDQ JRYHUQPHQW LQ 8NUDLQH $GGLWLRQDO ILQDQFLDO UHFRUGV
DVPLOOLRQSULRUWRMRLQLQJWKH7UXPS&DPSDLJQ
0DQDIRUW DOVR HPSOR\HG .RQVWDQWLQ .LOLPQLN ³.LOLPQLN´ DV KLV FORVH DLGH
.LOLPQLNLVDIRUPHUOLQJXLVWLQWKH5XVVLDQDUP\ZKRLVEHOLHYHGWREHDQDJHQWRIWKH*58DQG
ZKRPWKH)%,EHOLHYHVPDLQWDLQHGWLHVWR5XVVLDQLQWHOOLJHQFHGXULQJWKH86SUHVLGHQWLDO
FDPSDLJQ .LOLPQLN ZDV LQ FRPPXQLFDWLRQ ZLWK ERWK 0DQDIRUW DQG *DWHV ZKLOH WKH\ ZHUH
VHUYLQJ LQ WKH WZR PRVW VHQLRU SRVLWLRQV LQ WKH 7UXPS &DPSDLJQ DQG DFWHG DV D PLGGOHPDQ
EHWZHHQWKHPDQG'HULSDVND
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 19 of 66
*DWHVZDVLQGLUHFWFRQWDFWZLWK.LOLPQLNZKLOHVHUYLQJDVDKLJKUDQNLQJRIILFLDO
RIWKH7UXPS&DPSDLJQLQDQGZDVDZDUHWKDW.LOLPQLNZDVWLHGWRWKH*58
,, 7+(&20021385326(%2/67(575803$1''(1,*5$7(7+(
'(02&5$7,&3$57<120,1((
7KHFRPPRQSXUSRVHRIWKHFRQVSLUDF\DPRQJ5XVVLDDQGWKH7UXPS$VVRFLDWHV
ZDVWREROVWHU7UXPS¶VFDPSDLJQIRUSUHVLGHQWWRLQMXUHWKH'1&DQGWRKDUPWKH'HPRFUDWLF
SDUW\¶VFKDQFHVIRUVXFFHVVLQWKHSUHVLGHQWLDOHOHFWLRQ7KLVFRPPRQSXUSRVHVSUDQJIURP
PXOWLSOHZHOOGRFXPHQWHGPRWLYHV
,Q'HFHPEHUPDVVLYHSURWHVWVEURNHRXWLQ5XVVLDLQUHVSRQVHWRDOOHJDWLRQV
RIYRWHULJJLQJDQGHOHFWLRQIUDXGLQWKH5XVVLDQSDUOLDPHQWDU\HOHFWLRQV7KRXVDQGVRI5XVVLDQV
WRRNWRWKHVWUHHWVWRSURWHVWWKHYLFWRU\RIWKHQ3ULPH0LQLVWHU3XWLQ¶VSROLWLFDOSDUW\LQRQHRI
5XVVLD¶VODUJHVWSURWHVWVVLQFHWKHIDOORIWKH8665
&RQFHUQHGDERXWPDLQWDLQLQJSRZHUDQGH[HUWLQJFRQWURO3XWLQODVKHGRXWEODPLQJ
WKHSURWHVWVRQWKHQ6HFUHWDU\RI6WDWH+LOODU\&OLQWRQ3XWLQDVVHUWHGWKDW6HFUHWDU\&OLQWRQKDG
³VHWWKHWRQHIRUVRPHRIRXUDFWRUVLQWKHFRXQWU\DQGJDYHWKHVLJQDO´$QGKHDFFXVHGKHURI
RUGHULQJWKHRSSRVLWLRQPRYHPHQWLQWRDFWLRQ³7KH\KHDUGWKLVDQGZLWKWKHVXSSRUWRIWKH86
6WDWH'HSDUWPHQWEHJDQDFWLYHZRUN´
$WWKHVDPHWLPH7UXPSOHIWQRGRXEWDVWRKLVYLHZVRQ5XVVLD3ULRUWRWKH
FDPSDLJQKHVSHQWQHDUO\DGHFDGHHVSRXVLQJSUR5XVVLDQDQGSUR3XWLQYLHZVSUDLVLQJ3XWLQDV
³GRLQJ D JUHDW MRE LQ UHEXLOGLQJ WKH LPDJH RI 5XVVLD´ VWDWLQJ WKDW KH ³UHDOO\ OLNH>G@
DQGFKDUDFWHUL]LQJ3XWLQ¶VLOOHJDODQQH[DWLRQRI&ULPHDDV³VRVPDUW$QGKH>3XWLQ@UHDOO\
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 20 of 66
'HVSLWH WKH REYLRXV SROLWLFDO ULVNV RI DVVRFLDWLQJ KLPVHOI ZLWK D IRUHLJQ GHVSRW
7UXPS FRQWLQXHG WR PDNH ODXGDWRU\ VWDWHPHQWV DERXW 3XWLQ ZHOO LQWR WKH SUHVLGHQWLDO SULPDU\
VHDVRQ+HVDLGWKDWKHZRXOGKDYHD³JUHDWUHODWLRQVKLSZLWK3XWLQ´DQGWKDWLWZDVD³JUHDW
KRQRU WR EH VR QLFHO\ FRPSOLPHQWHG E\ >3XWLQ ZKR ZDV@ VR KLJKO\ UHVSHFWHG ZLWKLQ KLV RZQ
FRXQWU\DQGEH\RQG´
)XUWKHU7UXPS¶VVWDWHPHQWV²DVZHOODVWKHSUR5XVVLDQHQWRXUDJHZLWKZKLFKKH
VXUURXQGHGKLPVHOI²OHIWOLWWOHGRXEWWKDW7UXPSLIHOHFWHGSUHVLGHQWZRXOGDGRSWSROLFLHVWKDW
IDYRUHG5XVVLDDQG3XWLQHYHQLIWKRVHSROLFLHVFRQIOLFWHGZLWKORQJVWDQGLQJ86IRUHLJQSROLF\
DQGWKHEHVWLQWHUHVWVRIWKH8QLWHG6WDWHV7UXPSFDOOHG1$72³REVROHWH´DQGWKUHDWHQHGWRUHQHJH
RQ86WUHDW\REOLJDWLRQVDUJXHGWKDWWKH86VKRXOGQRWFRXQWHUDFW5XVVLD¶VDWWHPSWVWREHD
JOREDOSRZHUVXSSRUWHG*UHDW%ULWDLQ¶VH[LWIURPWKH(XURSHDQ8QLRQZKLOHQRWLQJWKDWLWZRXOG
³SUREDEO\´EHQHILW3XWLQDQGRSSRVHG86VDQFWLRQVIRU5XVVLD¶VDQQH[DWLRQRI&ULPHDVD\LQJ
³7KHSHRSOHRI&ULPHDIURPZKDW,¶YHKHDUGZRXOGUDWKHUEHZLWK5XVVLDWKDQZKHUHWKH\ZHUH´
7KXV WKH 7UXPS &DPSDLJQ 7UXPS $VVRFLDWHV DQG 5XVVLD VKDUHG WKH FRPPRQ
SXUSRVHRIXQGHUPLQLQJ6HFUHWDU\&OLQWRQ¶VFDQGLGDF\XQGHUPLQLQJWKH'1&DQGWKH'HPRFUDWLF
3DUW\ DQG SURPRWLQJ 7UXPS ZKRVH SUHVLGHQF\ ZDV H[SHFWHG WR EHQHILW 5XVVLD¶V SROLWLFDO DQG
ILQDQFLDOLQWHUHVWVDQGLQWXUQEHQHILW7UXPS¶VILQDQFLDOLQWHUHVWV
$VVDQJHDQG:LNL/HDNVDOVRVKDUHGDFRPPRQSXUSRVHLQXQGHUPLQLQJ6HFUHWDU\
&OLQWRQ¶VFDQGLGDF\DQGSURPRWLQJ7UXPS$VVDQJHKDGDORQJRIKLVWRU\FRQIOLFWVZLWK6HFUHWDU\
&OLQWRQDQG$VVDQJHSXEOLFO\VWDWHGWKDWKLVSROLF\GLVDJUHHPHQWVZLWK&OLQWRQZRXOGPDNHKHU
SUHVLGHQF\IDUPRUHSUREOHPDWLFWKDQD7UXPSSUHVLGHQF\
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 21 of 66
,,, 7+(&2163,5$&<72',66(0,1$7(672/(1'1&'$7$72$,'75803
,Q D -DQXDU\ UHSRUW ³7KH ,& 5HSRUW´ WKH 86 LQWHOOLJHQFH FRPPXQLW\
FRQFOXGHG³5XVVLDQ3UHVLGHQW9ODGLPLU3XWLQRUGHUHGDQLQIOXHQFHFDPSDLJQLQDLPHGDWWKH
86SUHVLGHQWLDOHOHFWLRQWKHFRQVLVWHQWJRDOVRIZKLFKZHUHWRXQGHUPLQHSXEOLFIDLWKLQWKH86
GHPRFUDWLF SURFHVV GHQLJUDWH 6HFUHWDU\ &OLQWRQ DQG KDUP KHU HOHFWDELOLW\ DQG SRWHQWLDO
SUHVLGHQF\´)XUWKHUWKH,&5HSRUWFRQFOXGHG³,Q-XO\5XVVLDQLQWHOOLJHQFHJDLQHGDFFHVV
´WKDW³E\0D\WKH*58KDGH[ILOWUDWHGODUJHYROXPHVRIGDWDIURPWKH'1&´DQGWKDWWKH
³*58UHOD\HGPDWHULDOLWDFTXLUHGIURPWKH'1&DQGVHQLRU'HPRFUDWLFRIILFLDOVWR:LNL/HDNV´
7KLVRSHUDWLRQWRLQILOWUDWHWKH'1&VHUYHUVDQGGLVVHPLQDWHVWROHQ'1&PDWHULDO
ZDVFDUULHGRXWLQWKH8QLWHG6WDWHV5XVVLDQRSHUDWLYHVWUHVSDVVHGRQWRFRPSXWHUVHUYHUVORFDWHG
LQ 9LUJLQLD DQG :DVKLQJWRQ '& DQG VWROH LQIRUPDWLRQ ORFDWHG RQ WKRVH VHUYHUV ,W ZDV DOVR
FDUULHGRXWLQFRQFHUWZLWK$VVDQJHDQG:LNL/HDNVDQGZLWKWKHDFWLYHVXSSRUWDQGDSSURYDORI
WKH7UXPS&DPSDLJQDQGWKH7UXPS$VVRFLDWHV
7KHFRQVSLUDWRUVZRUNHGLQWDQGHPWRDFFRPSOLVKWKHLUJRDO5XVVLD¶VLQWHOOLJHQFH
VHUYLFHVLOOHJDOO\KDFNHGLQWRWKH'1&¶VFRPSXWHUV\VWHPVDQGHPDLODFFRXQWVLQRUGHUWRVWHDO
DQG SXEOLVK WUDGH VHFUHWV LQFOXGLQJ FRQILGHQWLDO SURSULHWDU\ GRFXPHQWV UHODWHG WR FDPSDLJQV
IXQGUDLVLQJ DQG FDPSDLJQ VWUDWHJ\ 5XVVLDQ LQWHOOLJHQFH VHUYLFHV WKHQ GLVVHPLQDWHG WKH VWROHQ
FRQILGHQWLDOPDWHULDOVWKURXJK*582SHUDWLYHDVZHOODV:LNL/HDNVDQG$VVDQJHZKRZHUH
DFWLYHO\VXSSRUWHGE\WKH7UXPS&DPSDLJQDQG7UXPS$VVRFLDWHVDVWKH\UHOHDVHGDQGGLVFORVHG
WKHLQIRUPDWLRQWRWKH$PHULFDQSXEOLFDWDWLPHDQGLQDPDQQHUWKDWVHUYHGWKHLUFRPPRQJRDOV
7KHGLVFORVXUHVWRWKH$PHULFDQHOHFWRUDWHZHUHXQGHUWDNHQZLWKWKHSXUSRVHDQGKDGWKHHIIHFWRI
FUHDWLQJ GLVVHQWLRQ ZLWKLQ WKH 'HPRFUDWLF SDUW\ GLUHFWLQJ PHGLD FRYHUDJH DZD\ IURP VWRULHV
FULWLFDORI7UXPSDQGJHQHUDOO\SURPRWLQJ7UXPS¶VSUHVLGHQWLDOFDQGLGDF\
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 22 of 66
$ 7UXPS$QQRXQFHV+LV&DQGLGDF\IRU3UHVLGHQWDQG5XVVLD%HJLQV,WV$WWDFN
RQWKH'1&&RPSXWHU6\VWHPV
2Q -XQH 7UXPS DQQRXQFHG KLV FDQGLGDF\ IRU 3UHVLGHQW RI WKH 8QLWHG
6WDWHVLQWKHOREE\RI7UXPS7RZHU%\WKHQH[WPRQWK5XVVLDKDGXQGHUWDNHQLWVF\EHUDWWDFNRQ
WKH '1& 7KH KDFNV E\ 5XVVLDQ LQWHOOLJHQFH ZHUH GLUHFWHG DW V\VWHPV LQ 9LUJLQLD DQG
:DVKLQJWRQ'&WKDWFRQWDLQHGVRPHRIWKH'1&¶VPRVWVHQVLWLYHVWUDWHJLFDQGRSHUDWLRQDOGDWD
/DWHUWKH GLVFORVXUH RI WKLV VHQVLWLYH GDWD QRW RQO\ VLJQLILFDQWO\ GLVUXSWHG WKHHOHFWLRQ VWUDWHJ\
LPSOHPHQWHG E\ WKH '1& EXW DOVR LQWHUIHUHG GLUHFWO\ ZLWK WKH '1&¶V DELOLW\ WR HIIHFWLYHO\
FRPPXQLFDWHZLWKDQGSHUVXDGHYRWHUVDQGWRUDLVHFULWLFDOIXQGVIRULWVRUJDQL]DWLRQDQGWRVXSSRUW
'HPRFUDWLFFDPSDLJQV
% (XURSHDQ$OOLHV6RXQGWKH$ODUPWR86,QWHOOLJHQFH5HJDUGLQJ
&RPPXQLFDWLRQV%HWZHHQ5XVVLDQVDQG7UXPS$VVRFLDWHV
%HJLQQLQJLQODWH(XURSHDQLQWHOOLJHQFHDJHQFLHVEHJDQUHSRUWLQJVXVSLFLRXV
FRPPXQLFDWLRQVEHWZHHQSHUVRQVDVVRFLDWHGZLWKWKH7UXPS&DPSDLJQDQG5XVVLDQRSHUDWLYHV
LQFOXGLQJVXVSHFWHGLQWHOOLJHQFHDJHQWVWR86DXWKRULWLHV2YHUWKHQH[WVL[PRQWKVDQGWKURXJK
WKHVXPPHURIWKHVHDOOLHG(XURSHDQLQWHOOLJHQFHDJHQFLHVUHSRUWHGWKHFRQWLQXDWLRQRIWKHVH
FRQWDFWVEHWZHHQ7UXPS$VVRFLDWHVDQG5XVVLDQRSHUDWLYHV
& :KLOH&DPSDLJQLQJIRU3UHVLGHQW7UXPS6LJQVD/HWWHURI,QWHQWWR%XLOG
7UXPS7RZHU0RVFRZ
,QWKHIDOORIDV7UXPSFDPSDLJQHGIRU3UHVLGHQWPHPEHUVRIWKH7UXPS
2UJDQL]DWLRQZHUHDFWLYHO\QHJRWLDWLQJZLWK5XVVLDQVRQD7UXPSEUDQGHGUHDOHVWDWHSURMHFWLQ
0RVFRZ²DORQJWLPHJRDORI7UXPS%\2FWREHUWKH7UXPS2UJDQL]DWLRQKDGVHFXUHGD
OHWWHURILQWHQWWROLFHQVH7UXPS¶VQDPHIRUWKHSURMHFWLQ0RVFRZ7UXPSVLJQHGWKHOHWWHURI
LQWHQW
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 23 of 66
7KH GHDO ZDV EURNHUHG E\ )HOL[ 6DWHU D 5XVVLDQ pPLJUp FRQYLFWHG IHORQ DQG
ORQJWLPHEXVLQHVVDVVRFLDWHRIWKH7UXPS2UJDQL]DWLRQ7KHIXQGLQJIRUWKHSURMHFWZDVWREH
SURYLGHGE\9QHVKWRUJEDQNRU97%²D5XVVLDQEDQNDJDLQVWZKLFKWKH8QLWHG6WDWHV7UHDVXU\
KDVOHYHOHGVDQFWLRQV
2Q 1RYHPEHU LQ DQ HPDLO WR &RKHQ 6DWHU H[SODLQHG KRZ WKLV SURMHFW
ZRXOGSURPRWH7UXPS¶VSUHVLGHQWLDODVSLUDWLRQV
0LFKDHO,DUUDQJHGIRU,YDQNDWRVLWLQ3XWLQV>VLF@SULYDWHFKDLUDW
KLVGHVNDQGRIILFHLQWKH.UHPOLQ,ZLOOJHW3XWLQRQWKLVSURJUDP
DQGZHZLOOJHW'RQDOGHOHFWHG:HERWKNQRZQRRQHHOVHNQRZV
KRZWRSXOOWKLVRIIZLWKRXWVWXSLGLW\RUJUHHGJHWWLQJLQWKHZD\,
NQRZKRZWRSOD\LWDQGZHZLOOJHWWKLVGRQH%XGG\RXUER\FDQ
EHFRPH3UHVLGHQWRIWKH86$DQGZHFDQHQJLQHHULW,ZLOOJHWDOO
RI3XWLQV>VLF@WHDPWREX\LQRQWKLV,ZLOOPDQDJHWKLVSURFHVV
' 7KH7UXPS&DPSDLJQ(VWDEOLVKHV)XUWKHU7LHVWR5XVVLDDQG5XVVLDQ
,QWHOOLJHQFH$JHQWV
)URPWKHVSULQJRIWKURXJKWKHSUHVLGHQWLDOHOHFWLRQKLJKOHYHODQGRWKHU
DGYLVHUVWRWKH7UXPS&DPSDLJQLQFOXGLQJ0DQDIRUW*DWHV.XVKQHU3DSDGRSRXORVDQGRWKHUV
ZHUH LQ IUHTXHQW FRQWDFW ZLWK LQGLYLGXDOV FRQQHFWHG WR 5XVVLDQ LQWHOOLJHQFH DQG WKH 5XVVLDQ
JRYHUQPHQW
%\0DUFK3DSDGRSRXORVZDVQRWLILHGWKDWKHZRXOGEHFRPHDIRUHLJQSROLF\
DGYLVHUWRWKH7UXPS&DPSDLJQDQGWKDWDSULQFLSDOIRUHLJQSROLF\IRFXVRIWKH7UXPS&DPSDLJQ
ZDV DQ LPSURYHG UHODWLRQVKLS ZLWK 5XVVLD 2Q 0DUFK 7UXPS DQQRXQFHG WKDW
3DSDGRSRXORVZRXOGEHDPRQJWKHILUVWPHPEHUVRIWKH7UXPS&DPSDLJQ¶VIRUHLJQSROLF\WHDP
/RQGRQQDPHG-RVHSK0LIVXG,QKLVJXLOW\SOHD3DSDGRSRXORVDWWHVWHGWKDWKH³XQGHUVWRRGWKDW
WKHSURIHVVRUKDGVXEVWDQWLDOFRQQHFWLRQVWRKLJKOHYHO5XVVLDQJRYHUQPHQWRIILFLDOV´)XUWKHU
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 24 of 66
3DSDGRSRXORVDGPLWWHGWKDWKH³UHSHDWHGO\VRXJKWWRXVHWKHSURIHVVRU
V5XVVLDQFRQQHFWLRQVLQDQ
HIIRUWWRDUUDQJHDPHHWLQJEHWZHHQWKHFDPSDLJQDQG5XVVLDQJRYHUQPHQWRIILFLDOV´
$FFRUGLQJ WR 3DSDGRSRXORV¶ 6WDWHPHQW RI 2IIHQVH 0LIVXG ZDV LQLWLDOO\
³XQLQWHUHVWHG´ LQ 3DSDGRSRXORV EXW ³DSSHDUHG WR WDNH JUHDW LQWHUHVW´ ZKHQ 3DSDGRSRXORV ZDV
SXEOLFO\QDPHGWR7UXPS¶VIRUHLJQSROLF\WHDP$VDUHVXOW
D 2Q0DUFK0LIVXGPHWZLWK3DSDGRSRXORVLQ,WDO\
E 2Q0DUFK0LIVXGPHWDJDLQZLWK3DSDGRSRXORVWKLVWLPHEULQJLQJ
DORQJD5XVVLDQQDWLRQDOZKRZDVLQWURGXFHGDVDUHODWLYHRI3XWLQ
F 2Q$SULO0LIVXGLQWURGXFHG3DSDGRSRXORVWRDQLQGLYLGXDOKHVDLGKDG
FRQQHFWLRQVWRWKH5XVVLDQ0LQLVWU\RI)RUHLJQ$IIDLUV3DSDGRSRXORVSURFHHGHG
WRKDYHPXOWLSOH6N\SHFRQYHUVDWLRQVZLWKWKLVLQGLYLGXDOLQZKLFKWKH\GLVFXVVHG
VHWWLQJXSDPHHWLQJEHWZHHQ5XVVLDQRIILFLDOVDQGWKH7UXPSFDPSDLJQ
G 2Q$SULO0LIVXGDJDLQPHWZLWK3DSDGRSRXORVLQ/RQGRQ$WWKLV
PHHWLQJ0LIVXGWROG3DSDGRSRXORVWKDWWKH5XVVLDQVKDG³WKRXVDQGVRIHPDLOV´
WKDWFRXOGKDUP+LOODU\&OLQWRQ¶VSUHVLGHQWLDOFDPSDLJQ3DSDGRSRXORV
XQGHUVWRRGWKDW0LIVXGKDGPHWZLWK5XVVLDQRIILFLDOVLQ0RVFRZ³LPPHGLDWHO\
SULRU´WRUHOD\LQJWKLVLQIRUPDWLRQ
,QD1RYHPEHULQWHUYLHZZLWKDQ,WDOLDQQHZVSDSHU0LIVXGDFNQRZOHGJHG
KLV FRQWDFWV ZLWK 3DSDGRSRXORV VWDWLQJ WKDW KH PHW ZLWK KLP ³WKUHH RUIRXU WLPHV´ DQG KHOSHG
FRQQHFWKLPWR³RIILFLDODQGXQRIILFLDOVRXUFHV´
7KH 7UXPS &DPSDLJQ ZDV DZDUH RI DQG HQFRXUDJHG WKHVH PHHWLQJV $IWHU
PHHWLQJZLWK0LIVXGDQGWKH5XVVLDQQDWLRQDORQ0DUFK3DSDGRSRXORVUHSRUWHGEDFNWR
WKH7UXPS&DPSDLJQWKDWKLVFRQYHUVDWLRQZDV³WRDUUDQJHDPHHWLQJEHWZHHQXVDQGWKH5XVVLDQ
OHDGHUVKLSWRGLVFXVV865XVVLDWLHVXQGHU3UHVLGHQW7UXPS´,QIRUPHGRIWKLVPHHWLQJ7UXPS
FDPSDLJQ 1DWLRQDO &R&KDLUPDQ 6DP &ORYLV UHVSRQGHG WKDW KH ZRXOG ³ZRUN LW WKURXJK WKH
FDPSDLJQ´DQGDGGHG³*UHDWZRUN´
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 25 of 66
( 5XVVLD6WHDOV0DVVLYH7URYHRI'RFXPHQWVIURPWKH'1&DV7UXPS
$VVRFLDWH%UDJV$ERXW6WROHQ'RFXPHQWV
2Q $SULO 5XVVLD ODXQFKHG D VHFRQG SKDVH RI LWV F\EHUDWWDFN RQ '1&
VHUYHUVORFDWHGLQ9LUJLQLDDQG:DVKLQJWRQ'&7KLVDWWDFNZDVH[HFXWHGE\*58DJHQWVDQG
GHSDUWPHQWDQGRWKHUGHSDUWPHQWV8SRQLQIRUPDWLRQDQGEHOLHIKLJKUDQNLQJ5XVVLDQRIILFLDOV
RUGHUHGWKH*58DJHQWVWRLQILOWUDWHWKH'1&¶VVHUYHUVDQGWKHDJHQWVZHUHREOLJDWHGWRFDUU\RXW
WKDWRUGHU
2Q$SULOWKH*58VWDJHGVHYHUDOJLJDE\WHVRI'1&GDWDORFDWHGRQWKH
'1&¶VVHUYHUVIRUXQDXWKRUL]HGDQGVXUUHSWLWLRXVH[ILOWUDWLRQ²RUPRUHFRPPRQO\WKHIW
)RXU GD\V ODWHU RQ $SULO 3DSDGRSRXORV PHW DJDLQ ZLWK 5XVVLDQ DJHQW
0LIVXG$WWKHPHHWLQJ0LIVXGLQIRUPHG3DSDGRSRXORVWKDWWKH5XVVLDQV³KDYHGLUWRQ>+LOODU\
&OLQWRQ@´LQWKHIRUPRI³WKRXVDQGVRIHPDLOV´,QKLVJXLOW\SOHD3DSDGRSRXORVDWWHVWHGWKDWKH
XQGHUVWRRG0LIVXGKDG³VXEVWDQWLDOFRQQHFWLRQVWRKLJKOHYHOJRYHUQPHQWRIILFLDOV´DQG³KDGPHW
ZLWK VRPH RI WKRVH RIILFLDOV LQ 0RVFRZ LPPHGLDWHO\ SULRU WR WHOOLQJ >3DSDGRSRXORV@ DERXW WKH
µWKRXVDQGV RI HPDLOV¶´ 5DWKHU WKDQ UHSRUW VXFK LQIRUPDWLRQ WR DQ\ DXWKRULWLHV RU KDOW
FRPPXQLFDWLRQV ZLWK 0LIVXG 3DSDGRSRXORV H[FLWHGO\ HPDLOHG D 7UXPS &DPSDLJQ RIILFLDO RQ
$SULO³+DYHVRPHLQWHUHVWLQJPHVVDJHVFRPLQJLQIURP0RVFRZDERXWDWULSZKHQWKH
WLPH LV ULJKW´ +H DOVR HPDLOHG 7UXPS &DPSDLJQ 0DQDJHU &RUH\ /HZDQGRZVNL UHLWHUDWLQJ
5XVVLD¶VLQWHUHVWLQKRVWLQJ7UXPS$QGLQ0D\3DSDGRSRXORVFRQILGHGWRDQ$XVWUDOLDQ
GLSORPDWWKDW5XVVLDKDGSROLWLFDOO\GDPDJLQJLQIRUPDWLRQRQ6HFUHWDU\&OLQWRQ7KH$XVWUDOLDQ
GLSORPDW UHSRUWHG WKLV WR 86 DXWKRULWLHV 7KLV H[FKDQJH EHWZHHQ 3DSDGRSRXORV DQG WKH
$XVWUDOLDQGLSORPDWSURPSWHGWKH)%,WRODXQFKLWVFRXQWHULQWHOOLJHQFHLQYHVWLJDWLRQLQWRFRQWDFWV
EHWZHHQ5XVVLDDQGWKH7UXPSFDPSDLJQ
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 26 of 66
7KURXJKRXWWKHFDPSDLJQDWOHDVWXQWLOPLG$XJXVW3DSDGRSRXORVFRQWLQXHG
WRKDYHFRPPXQLFDWLRQVZLWK5XVVLDQQDWLRQDOVDQGFRQWLQXHGWRUHSRUWWKRVHFRPPXQLFDWLRQVWR
7UXPS&DPSDLJQRIILFLDOVZKRHQFRXUDJHGKLPWRVHWXSDQRIIWKHUHFRUGPHHWLQJZLWK5XVVLDQ
RIILFLDOVRQEHKDOIRIWKHFDPSDLJQ,Q2FWREHU3DSDGRSRXORVSOHDGHGJXLOW\WRO\LQJDERXW
WKHVHFRPPXQLFDWLRQVZLWK5XVVLDQQDWLRQDOV
)ROORZLQJWKHLULQLWLDODFFHVVIRUPRQWKV5XVVLDQLQWHOOLJHQFHDJHQFLHVPDLQWDLQHG
DQXQDXWKRUL]HGSUHVHQFHLQ'1&VHUYHUVORFDWHGLQWKH8QLWHG6WDWHV%\0D\5XVVLDKDG
VWROHQDODUJHDPRXQWRIVHQVLWLYHGDWDIURPWKH'1&LQFOXGLQJGRQRULQIRUPDWLRQRSSRVLWLRQ
UHVHDUFKLQIRUPDWLRQUHJDUGLQJSODQQHGSROLWLFDODFWLYLWLHVDQGWKRXVDQGVRISULYDWHFRQILGHQWLDO
HPDLOV
) 7KH'1&'LVFRYHUVWKH+DFNDQG+LUHV&URZG6WULNH
2Q$SULO'1&,7VWDIIGHWHFWHGDQGXOWLPDWHO\FRQILUPHGDFFHVVWRWKH
'1&QHWZRUNE\XQDXWKRUL]HGXVHUV
8SRQ GLVFRYHULQJ WKH LQWUXVLRQ WKH '1& FRQWDFWHG &URZG6WULNH 6HUYLFHV ,QF
³&URZG6WULNH´ D F\EHUVHFXULW\ WHFKQRORJ\ ILUP WR LQYHVWLJDWH WKH DWWDFN DVVHVV WKH GDPDJH
GRQHWRWKH'1&¶VFRPSXWHUVDQGVHUYHUVDQGDVVLVWWKH'1&LQLWVUHPHGLDWLRQHIIRUWV
&URZG6WULNH SHUIRUPHG IRUHQVLF DQDO\VLV RQ WKH '1&¶V FRPSXWHU QHWZRUN DQG
VHUYHUV &URZG6WULNH DOVR VHW XS D V\VWHP IRU PRQLWRULQJ WKH RQJRLQJ DWWDFN RQ 3ODLQWLIIV¶
FRPSXWHUV\VWHPDQGWRDOHUWWKH'1&WRIXWXUHDWWDFNV
$VDUHVXOWRIWKHSHUVLVWHQFHRIWKH5XVVLDQVWDWHVSRQVRUHGLQILOWUDWLRQLQRUGHUWR
UHPRYHWKHXQDXWKRUL]HGXVHUVIURPLWVQHWZRUNWKH'1&ZDVUHTXLUHGWRGHFRPPLVVLRQPRUH
WKDQVHUYHUVUHPRYHDQGUHLQVWDOODOOVRIWZDUHLQFOXGLQJWKHRSHUDWLQJV\VWHPVIRUPRUHWKDQ
FRPSXWHUVDQGUHEXLOGDWOHDVWVHUYHUV
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 27 of 66
* )RUHQVLF(YLGHQFH&RQILUPV5XVVLD¶V$WWDFNRQWKH'1&¶V1HWZRUN
%RWK&URZG6WULNH¶VIRUHQVLFDQDO\VLVDQGWKH86*RYHUQPHQWFRQFOXGHGWKDWWKH
'1&¶V FRPSXWHU V\VWHPV KDG EHHQ KDFNHG E\ WZR LQGHSHQGHQW VRSKLVWLFDWHG 5XVVLDQ VWDWH
VSRQVRUHGDGYHUVDULHVERWKZLWKDQH[XVWR5XVVLD¶VLQWHOOLJHQFHVHUYLFHV7KHIRUHQVLFDQDO\VWV
WUDFNHGWKHKDFNLQJDFWLYLWLHVRIWKHVHDGYHUVDULHVE\DVVLJQLQJWKHPFRGHQDPHV³&R]\%HDU´
DQG³)DQF\%HDU´ZKLFKFRUUHVSRQGWRWKHPRUHZLGHO\XVHGQDPHV$GYDQFHG3HUVLVWHQW7KUHDW
$37 DQG $GYDQFHG 3HUVLVWHQW 7KUHDW $37 UHVSHFWLYHO\ 7KH ,& 5HSRUW
FRQFOXGHGWKDW³)DQF\%HDU´ZDVDFWLQJDVDQDJHQWRIWKH*58
)RUHQVLF DQDO\VLV IRXQG HYLGHQFH WKDW &R]\ %HDU KDG LQILOWUDWHG DQG UHPDLQHG
SUHVHQWLQWKH'1&¶VQHWZRUNVLQFHDWOHDVW-XO\7KH,&5HSRUWVLPLODUO\FRQFOXGHGWKDW
WKH5XVVLDQLQWHOOLJHQFHILUVWJDLQHGDFFHVVWRWKH'1&QHWZRUNLQ-XO\&URZG6WULNHDOVR
GHWHUPLQHG WKDW &R]\ %HDU XVHG WKH VWROHQ FUHGHQWLDOV RI XVHU DFFRXQWV WR DFFHVV WKH '1&¶V
FRPSXWHUV\VWHPV
&URZG6WULNHGHWHUPLQHGWKDWWKHREMHFWLYHRIWKH&R]\%HDUDFWRUZDVWRDFFHVV
DQG FROOHFW LQIRUPDWLRQ IURP '1& V\VWHPV WKDW ZHUH SULPDULO\ XVHG IRU FRPPXQLFDWLRQV 7KH
DQDO\VLVLGHQWLILHG&R]\%HDUPDOZDUHLQ'1&V\VWHPVSURYLGLQJHPDLOHPDLOVXSSRUWEDFNXS
VHUYHUVYRLFHRYHULQWHUQHWSURWRFRODQGFKDW
7KH86*RYHUQPHQWFRQFOXGHGWKDW&R]\%HDUZDVDQRSHUDWLYHRIRUDVVRFLDWHG
ZLWK5XVVLDQLQWHOOLJHQFH
7KH'1&ILUVWGHWHFWHGWKHLQILOWUDWLRQRIWKH*58RU³)DQF\%HDU´LQLWVQHWZRUN
RQ$SULO
&URZG6WULNHGHWHUPLQHGWKDWWKH*58¶VREMHFWLYHZDVWRFROOHFWLQIRUPDWLRQDERXW
WKH'1&¶VSROLWLFDODQGUHVHDUFKDFWLYLWLHV
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 28 of 66
2Q$SULOWKH*58VWDJHGIRUH[ILOWUDWLRQVHYHUDOJLJDE\WHVRIGDWDWKDW
LQFOXGHGRSSRVLWLRQUHVHDUFKRQ'RQDOG7UXPS
2Q LQIRUPDWLRQ DQG EHOLHI WKH *58 H[ILOWUDWHG '1& GRFXPHQWV DQG *58
2SHUDWLYHSRVWHGVRPHRIWKRVHGRFXPHQWVSXEOLFO\RQOLQH
$FFRUGLQJWRDQDQDO\VLVRIPHWDGDWDLQRWKHUGRFXPHQWVGRFXPHQWVWKDWRULJLQDOO\
UHVLGHG RQ '1& VHUYHUV ZHUH SXEOLVKHG ZLWKRXW SHUPLVVLRQ RQ D ZHEVLWH IRXQG DW
ZZZJXFFLIHUZRUGSUHVVFRPE\*582SHUDWLYH
)RUHQVLF DQDO\VLV VKRZV WKDW ERWK &R]\ %HDU DQG )DQF\ %HDU XVHG WKH VWROHQ
FUHGHQWLDOVRIXVHUDFFRXQWVWRDFFHVVWKH'1&¶VFRPSXWHUV\VWHPV
,QDGGLWLRQIRUHQVLFDQDO\VLVVKRZHGWKDWWKHKDFNHUVDFFHVVHGWKH'1&¶V9RLFH
RYHU ,QWHUQHW 3URWRFRO ³92,3´ WUDQVIHUV SHUPLWWLQJ WKHP WR PRQLWRU YRLFHEDVHG
FRPPXQLFDWLRQVVXFKDVSKRQHFDOOVDQGYRLFHPDLO
2Q LQIRUPDWLRQ DQG EHOLHI WKH KDFNHUV LQWHUFHSWHG RU HQGHDYRUHG WR LQWHUFHSW
HPDLOVDQGYRLFHEDVHGFRPPXQLFDWLRQVZKLOHLQWKH'1&VHUYHUV
+ 5XVVLDQV2IIHUWR$VVLVW7UXPS²DQG7UXPS$VVRFLDWHV$FFHSWWKH2IIHU
7UXPSFOLQFKHGWKH5HSXEOLFDQSUHVLGHQWLDOQRPLQDWLRQRQ0D\$ZHHN
ODWHUWKHVFKHPHZDVODXQFKHGWRGLVVHPLQDWHLQIRUPDWLRQWKDWZDVGDPDJLQJWRWKH'HPRFUDWLF
SDUW\DQGWKH'1&
2Q-XQH$UDVDQG(PLQ$JDODURYPDGHDQRIIHURIDVVLVWDQFHIURPWKH
5XVVLDQJRYHUQPHQWWRWKH7UXPS&DPSDLJQDVHYLGHQFHGE\WKHIROORZLQJFRPPXQLFDWLRQ
*RRGPRUQLQJ
(PLQ>'HIHQGDQW(PLQ$JDODURY@MXVWFDOOHGDQGDVNHGPHWR
FRQWDFW\RXZLWKVRPHWKLQJYHU\LQWHUHVWLQJ
7KH&URZQSURVHFXWRURI5XVVLDPHWZLWKKLVIDWKHU$UDV
>'HIHQGDQW$UDV$JDODURY@WKLVPRUQLQJDQGLQWKHLUPHHWLQJ
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 29 of 66
RIIHUHGWRSURYLGHWKH7UXPSFDPSDLJQZLWKVRPHRIILFLDO
GRFXPHQWVDQGLQIRUPDWLRQWKDWZRXOGLQFULPLQDWH+LOODU\DQGKHU
GHDOLQJVZLWK5XVVLDDQGZRXOGEHYHU\XVHIXOWR\RXUIDWKHU
7KLVLVREYLRXVO\YHU\KLJKOHYHODQGVHQVLWLYHLQIRUPDWLRQEXWLV
SDUWRI5XVVLDDQGLWVJRYHUQPHQW¶VVXSSRUWIRU0U7UXPS±
KHOSHGDORQJE\$UDVDQG(PLQ
(PSKDVLVDGGHG
6HYHQWHHQPLQXWHVODWHU7UXPS-UUHVSRQGHG
7KDQNV5RE,DSSUHFLDWHWKDW,DPRQWKHURDGDWWKHPRPHQWEXW
SHUKDSV,>ZLOO@MXVWVSHDNWR(PLQILUVW6HHPVZHKDYHVRPHWLPH
DQGLILW¶VZKDW\RXVD\,ORYHLWHVSHFLDOO\ODWHULQWKHVXPPHU
(PSKDVLVDGGHG
2Q -XQH VKRUWO\ DIWHU WKH PHHWLQJ EHWZHHQ WKH 5XVVLDQV DQG 7UXPS
$VVRFLDWHVZDVVHW7UXPS-UHPDLOHG³*UHDW,WZLOOOLNHO\EH3DXO0DQDIRUWFDPSDLJQERVV
P\ EURWKHULQODZDQGPH)LIWK$YHWK IORRU´ 7KDW QLJKW 7UXPS DQQRXQFHG WKDW KH
ZRXOG JLYH ³D PDMRU VSHHFK GLVFXVVLQJ DOO RI WKH WKLQJV WKDW KDYH WDNHQ SODFH ZLWK WKH
&OLQWRQV´
7ZR GD\V ODWHU RQ -XQH WKH PHHWLQJ EHWZHHQ WKH 5XVVLDQV DQG 7UXPS
$VVRFLDWHVWRRNSODFH7KH7UXPS&DPSDLJQZDVUHSUHVHQWHGE\7UXPS¶VLQQHUFLUFOH7UXPS
-U .XVKQHU DQG 0DQDIRUW 5HSUHVHQWLQJ 5XVVLD¶V LQWHUHVWV ZHUH $JDODURY SXEOLFLVW 5RE
*ROGVWRQH.UHPOLQFRQQHFWHG5XVVLDQODZ\HU1DWDOLD9HVHOQLWVND\D$JDODURYEXVLQHVVDVVRFLDWH
,UDN\O.DYHODG]HOREE\LVW5LQDW$NKPHWVKLQDQGDWUDQVODWRU
7UXPSDQG7UXPS-UZRXOGODWHUJRWRJUHDWOHQJWKVWRFRQFHDOWKHPHHWLQJDQG
LWVFRQWHQW)RUPRQWKV7UXPS-UDQGRWKHUVIDPLOLDUZLWKWKH-XQHPHHWLQJGHQLHGWKDWWKH\
KDG FRQWDFWV ZLWK 5XVVLDQV GXULQJ WKH FDPSDLJQ )RU H[DPSOH LQ 0DUFK ZKHQ DVNHG
ZKHWKHUKHKDGKHOGDQ\PHHWLQJVZLWK5XVVLDQVUHODWHGWRWKHSUHVLGHQWLDOFDPSDLJQ7UXPS-U
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 30 of 66
IDOVHO\VWDWHG³&HUWDLQO\QRQHWKDW,ZDVUHSUHVHQWLQJWKHFDPSDLJQLQDQ\ZD\VKDSHRUIRUP´
0RQWKVODWHULQ-XO\ZKHQFRQIURQWHGZLWKOLPLWHGLQIRUPDWLRQDERXWWKH-XQHPHHWLQJ
7UXPS-UUHOHDVHGDVHULHVRIIDOVHVWDWHPHQWVWKDWPLVFKDUDFWHUL]HGDQGRPLWWHGNH\IDFWVDERXW
WKH -XQH PHHWLQJ DQG WKH HPDLO H[FKDQJH WKDW OHG WR LW LQFOXGLQJ WKH 5XVVLDQV¶ RIIHU RI
GDPDJLQJ LQIRUPDWLRQ DERXW WKH 'HPRFUDWLF SUHVLGHQWLDO QRPLQHH DQG WKH IDFW WKDW WKH HPDLO
H[FKDQJH H[SOLFLWO\ LQIRUPHG 7UXPS -U WKDW WKH 5XVVLDQ JRYHUQPHQW ZDV VHHNLQJ WR KHOS WKH
7UXPS&DPSDLJQ$FFRUGLQJWRQHZVUHSRUWV7UXPSKHOSHGFUDIWWKHILUVWRIWKHVHPLVOHDGLQJ
VWDWHPHQWVDIWHUUHMHFWLQJDQLQLWLDODWWHPSWWRIXOO\GLVFORVHWKHQDWXUHRIWKH-XQHPHHWLQJ
, )ROORZLQJ7UXPS7RZHU0HHWLQJ5XVVLD/DXQFKHVD0DVVLYH3XEOLF
'LVVHPLQDWLRQRI6WROHQ'1&'RFXPHQWV
7KHILUVWSXEOLFGLVFORVXUHWKDWWKH5XVVLDQVZHUHLQWHUIHULQJLQWKHHOHFWLRQ
RFFXUUHGRQ-XQHZKHQWKH'1&SXEOLFO\DQQRXQFHGWKDWLWVV\VWHPVKDGEHHQKDFNHG
E\5XVVLDQLQWHOOLJHQFHDJHQFLHV
7KHQH[WGD\RQ-XQH*582SHUDWLYHFODLPHGUHVSRQVLELOLW\IRUWKH
'1& KDFN DQG OHDNHG D '1&DXWKRUHG RSSRVLWLRQ UHVHDUFK UHSRUW RQ 7UXPS IURP 'HFHPEHU
*582SHUDWLYHDOVRGLVFORVHGWKDWKHKDGJLYHQ'1&GRFXPHQWVWR:LNL/HDNV
7KHVWUDWHJLFGLVVHPLQDWLRQRI'1&GRFXPHQWVE\WKH*58FRQWLQXHGXQDEDWHG
WKURXJKDWOHDVW-XQHDQGHDUO\-XO\LQFOXGLQJ
D 2Q-XQH*582SHUDWLYHUHOHDVHGDEDWFKRIVWROHQ'1&GRFXPHQWV
DERXW6HFUHWDU\&OLQWRQRQHGD\DIWHU7UXPSILUHG&RUH\/HZDQGRZVNLRQ-XQH
E 2Q-XQH*582SHUDWLYHUHOHDVHGVWROHQ'1&GRFXPHQWVWRWKH
SXEOLFLQFOXGLQJUHVHDUFKRQ5HSXEOLFDQFDQGLGDWHVDQG6HFUHWDU\&OLQWRQ
F 2Q-XO\*582SHUDWLYHUHOHDVHGVWROHQ'1&GRFXPHQWVLQFOXGLQJ
'1&VWUDWHJ\GRFXPHQWVUHODWHGWRWKH'1&¶V³FRXQWHUFRQYHQWLRQ´WRWKH51&
FRQYHQWLRQ7KLVZDVRQHGD\DIWHU)%,'LUHFWRU-DPHV&RPH\DQQRXQFHGWKDW
QRFULPLQDOFKDUJHVZRXOGEHEURXJKWDJDLQVW6HFUHWDU\&OLQWRQIRUPDLQWDLQLQJD
SULYDWHHPDLOVHUYHUGXULQJKHUWLPHDWWKH6WDWH'HSDUWPHQW
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 31 of 66
- 7KH7UXPS&DPSDLJQ%ORFNV$QWL5XVVLDQ/DQJXDJHIURP%HLQJ$GGHGWR
WKH*233ODWIRUP
2Q -XO\ GXULQJ WKH 5HSXEOLFDQ 1DWLRQDO &RQYHQWLRQ PHPEHUV RI WKH
SODWIRUPFRPPLWWHHIURPDPHQGLQJWKHGUDIWSODWIRUPWRLQFOXGHDFDOOIRUWKH8QLWHG6WDWHVWR
SURYLGH OHWKDO DUPV WR 8NUDLQH WR KHOS GHIHQG LWVHOI DJDLQVW 5XVVLD 7KH 7UXPS FDPSDLJQ
VXFFHHGHG LQ WKLV HIIRUW ZDWHULQJ GRZQ WKH SURSRVHG DPHQGPHQW WR VXSSRUW RQO\ ³DSSURSULDWH
DVVLVWDQFH´WR8NUDLQH
-XVW GD\V EHIRUH WKH 7UXPS FDPSDLJQ VRIWHQHG WKH SODWIRUP¶V ODQJXDJH 7UXPS
FDPSDLJQFKDLUPDQ3DXO0DQDIRUWKDGHPDLOHG.RQVWDQWLQ.LOLPQLNKLVORQJWLPHDLGHZLWKWLHV
WRWKH*58RIIHULQJSULYDWHEULHILQJVRQWKHSUHVLGHQWLDOFDPSDLJQWR5XVVLDQROLJDUFKDQG3XWLQ
DOO\2OHJ'HULSDVND$IWHUWKHFRQYHQWLRQ.LOLPQLNUHSRUWHGO\WROGDVVRFLDWHVWKDWKHKDGSOD\HG
DUROHLQWKH7UXPSFDPSDLJQ
VVXFFHVVDWZDWHULQJGRZQWKH8NUDLQHDPHQGPHQW
. $IWHUWKH7UXPS&DPSDLJQ%ORFNV$QWL5XVVLD/DQJXDJHIURPWKH*23
3ODWIRUP:LNL/HDNV%HJLQV'LVVHPLQDWLQJ6WROHQ'1&'RFXPHQWV
2Q -XO\ MXVW WKUHH GD\V EHIRUH WKH 'HPRFUDWLF 1DWLRQDO &RQYHQWLRQ
:LNL/HDNV UHOHDVHG LWV ILUVW PDMRU WUDQFKH RI '1& HPDLOV DQG GRFXPHQWV VWROHQ E\ 5XVVLDQ
LQWHOOLJHQFHDJHQWV7KHVHHPDLOVFRQWDLQHGQDPHVDGGUHVVHVWHOHSKRQHQXPEHUVGDWHVRIELUWK
VRFLDOVHFXULW\QXPEHUVSDVVSRUWQXPEHUVDQGRWKHULGHQWLI\LQJLQIRUPDWLRQRILQGLYLGXDOVZKR
KDG FRPPXQLFDWHG ZLWK RU GRQDWHG WR WKH '1& 7KH UHOHDVH DOVR LQFOXGHG GR]HQV RI SULYDWH
YRLFHPDLOPHVVDJHVWR'1&HPSOR\HHV
,Q WKH PLGVW RI WKH 'HPRFUDWLF &RQYHQWLRQ 7UXPS DQG WKH 7UXPS &DPSDLJQ
RSHQO\ FHOHEUDWHG WKLV OHDN DQG 7UXPS KLPVHOI HQFRXUDJHG 5XVVLD WR FRQWLQXH LWV KDFNLQJ
FDPSDLJQ $W D SUHVV FRQIHUHQFH MXVW ILYH GD\V OHWWHU DIWHU FRPPHQWLQJ H[WHQVLYHO\ RQ WKH
PDWHULDOVWKDWZHUHVWROHQIURPWKH'1&VHUYHUV7UXPSFDOOHGRQWKH5XVVLDQVWRFRQWLQXHWKHLU
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 32 of 66
KDFNLQJ³5XVVLDLI\RX¶UHOLVWHQLQJ,KRSH\RX¶UHDEOHWRILQGWKHHPDLOVWKDWDUHPLVVLQJ´
+HWKHQSUHGLFWHGJUHDWUHZDUGVZRXOGFRPHWR5XVVLDLIWKDWRFFXUUHGVWDWLQJ³,WKLQN\RXZLOO
SUREDEO\EHUHZDUGHGPLJKWLO\E\RXUSUHVV/HW¶VVHHLIWKDWKDSSHQV´
/ 7UXPS$VVRFLDWHV6HFUHWO\&RPPXQLFDWHZLWK5XVVLDQ$JHQWVDQG
:LNL/HDNVDV7KH\6WUDWHJLFDOO\5HOHDVH6WROHQ'1&'RFXPHQWV
7KH XQDXWKRUL]HG UHOHDVH RI GRFXPHQWV IURP '1& VHUYHUV E\ 5XVVLD WKURXJK
:LNL/HDNVDQG*582SHUDWLYHWKURXJKWKHRQOLQHSHUVRQD³*XFFLIHU´FRQWLQXHGXQWLO
1RYHPEHUZLWKDFULWLFDOLQFUHDVHLQWKHYROXPHDQGGDPDJLQJQDWXUHRIWKHVHUHOHDVHVDV
WKHJHQHUDOHOHFWLRQEHJDQ
)URP-XQHWR2FWREHUWKH*58DQG*582SHUDWLYHWKURXJKWKH
RQOLQH SHUVRQD ³*XFFLIHU ´ V\VWHPDWLFDOO\ UHOHDVHG VWROHQ GRFXPHQWV IURP WKH '1& RQ D
UHJXODUEDVLV0DQ\RIWKHGLVFORVXUHVZHUHWLPHGWRGLYHUWDWWHQWLRQIURPDGYHUVHSXEOLFLW\DERXW
WKH7UXPSFDPSDLJQDQGWRREVFXUHSRVLWLYHQHZVDERXWWKH&OLQWRQFDPSDLJQDQG'1&DFWLYLWLHV
±VHUYLQJWKHFRPPRQLQWHUHVWVRIWKH7UXPS$VVRFLDWHV5XVVLDDQG:LNL/HDNV
%HJLQQLQJ LQ WKH VSULQJ RI 7UXPS¶V ORQJWLPH IULHQG DQG SROLWLFDO DGYLVRU
5RJHU6WRQHUHYHDOHGRQPXOWLSOHRFFDVLRQVWKDWKHZDVLQFRQWDFWZLWK$VVDQJHDQG:LNL/HDNV
DVZHOODV*582SHUDWLYHDERXWLQIRUPDWLRQLQWKHLUSRVVHVVLRQWKDWZRXOGEHGDPDJLQJWRWKH
&OLQWRQ FDPSDLJQ WR SURPLQHQW PHPEHUV RI WKH 'HPRFUDWLF 3DUW\ DQG WR &OLQWRQ FDPSDLJQ
FKDLUPDQ-RKQ3RGHVWD0DQ\RIWKHVHUHSRUWVIURP6WRQHRFFXUUHGZHOOEHIRUHLWZDVSXEOLFO\
NQRZQ WKDW WKH '1&¶V FRPSXWHU V\VWHPV DQG 3RGHVWD¶V HPDLOV KDG EHHQ KDFNHG E\ WKH VDPH
5XVVLDQLQWHOOLJHQFHHQWLWLHV
2Q$XJXVWVSHDNLQJWRDORFDO5HSXEOLFDQ3DUW\JURXSLQ)ORULGD6WRQH
SUHGLFWHGWKHIXWXUHGLVFORVXUHRIKDFNHGPDWHULDOV³,KDYHDFWXDOO\FRPPXQLFDWHGZLWK$VVDQJH
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 33 of 66
,EHOLHYHWKHQH[WWUDQFKHRIKLVGRFXPHQWVSHUWDLQWRWKH&OLQWRQ)RXQGDWLRQEXWWKHUH¶VQRWHOOLQJ
ZKDWWKH2FWREHUVXUSULVHPD\EH´
2Q$XJXVW6WRQHVDLGWKDWKHEHOLHYHG$VVDQJHKDGHPDLOVEHORQJLQJWR
6HFUHWDU\ &OLQWRQ 7KDW VDPH GD\ *58 2SHUDWLYH GLVVHPLQDWHG DQRWKHU VHW RI VWROHQ
GRFXPHQWV±WKLVWLPHFRQWDLQLQJSHUVRQDOLQIRUPDWLRQDERXW'HPRFUDWLFFDQGLGDWHV6KRUWO\
WKHUHDIWHURQ$XJXVW*582SHUDWLYHWZHHWHGDW6WRQH³7KDQNVWKDWXEHOLHYHLQWKHUHDO
*XFFLIHU´
$OVRRQ$XJXVW*582SHUDWLYHUHOHDVHGGRFXPHQWVVWROHQIURPRWKHU
'HPRFUDWLFHQWLWLHVLQFOXGLQJVWUDWHJ\PHPRVIRUILYH+RXVHUDFHVLQ)ORULGD7KHVHGRFXPHQWV
ZHUHUHOHDVHGMXVWGD\VEHIRUHOHJLVODWLYHSULPDULHVLQWKHNH\EDWWOHJURXQGVWDWHRI)ORULGD
%HJLQQLQJ RQ $XJXVW 6WRQH EHJDQ VHFUHWO\ FRPPXQLFDWLQJ ZLWK *58
2SHUDWLYH2Q$XJXVW*582SHUDWLYHWZHHWHGWR6WRQH³SOHDVHWHOOPHLILFDQ
KHOSXDQ\KRZLWZRXOGEHDJUHDWSOHDVXUHWRPH´
2Q $XJXVW DPLGVW KLV FRPPXQLFDWLRQV ZLWK $VVDQJH DQG 5XVVLDQ
LQWHOOLJHQFH6WRQHSURSKHVL]HGWKHIXWXUHGLVVHPLQDWLRQRI3RGHVWD¶VHPDLOVWZHHWLQJ³7UXVWPH
LWZLOOVRRQ>EH@3RGHVWD¶VWLPHLQWKHEDUUHO´7KHUHKDGEHHQQRSXEOLFGLVFORVXUHWKDW3RGHVWD¶V
HPDLOVKDGEHHQKDFNHGDWWKDWWLPH
,QPLG6HSWHPEHU6WRQHDFFXUDWHO\SUHGLFWHGRQ%RVWRQ+HUDOG5DGLRWKDW
KHH[SHFWHG³-XOLDQ$VVDQJHDQGWKH:LNL/HDNVSHRSOHWRGURSDSD\ORDGRIQHZGRFXPHQWVRQ
+LOODU\RQDZHHNO\EDVLVIDLUO\VRRQ´
%\6HSWHPEHU7UXPS-UZDVVHFUHWO\FRPPXQLFDWLQJZLWK:LNL/HDNV
DVZHOO7KURXJKWKHVHFRPPXQLFDWLRQV:LNL/HDNVSURYLGHG7UXPS-UZLWKDSDVVZRUGWRDQ
DQWL7UXPS3$&ZHEVLWHDQGDVNHG7UXPS-UWRKDYHKLVIDWKHUUHWZHHWDOLQNWRD:LNL/HDNV
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 34 of 66
ZHEVLWH FRQWDLQLQJ VWROHQ 'HPRFUDWLF GRFXPHQWV )LIWHHQ PLQXWHV DIWHU :LNL/HDNV VHQW WKLV
UHTXHVW 7UXPS LQ IDFW GLG WZHHW ³9HU\ OLWWOH SLFNXS E\ WKH GLVKRQHVW PHGLD RI LQFUHGLEOH
LQIRUPDWLRQSURYLGHGE\:LNLOHDNV6RGLVKRQHVW5LJJHGV\VWHP´
2Q 2FWREHU 6WRQH VWDWHG RQ 7ZLWWHU ³:HGQHVGD\ #+LOODU\&OLQWRQ LV
GRQH:LNL/HDNV´$QGRQ2FWREHU6WRQHUHLWHUDWHGWKDWKHZDVFRQILGHQW:LNL/HDNV
ZRXOGFRQWLQXHGLVVHPLQDWLQJKDFNHGPDWHULDOV³,KDYHWRWDOFRQILGHQFHWKDW#ZLNLOHDNVDQGP\
KHUR-XOLDQ$VVDQJHZLOOHGXFDWHWKH$PHULFDQSHRSOHVRRQ´
)RXU GD\V ODWHU RQ 2FWREHU ²DQG MXVW RQH KRXU DIWHU WKH UHOHDVH RI WKH
LQIDPRXV+ROO\ZRRG$FFHVVUHFRUGLQJLQZKLFK7UXPSDGPLWWHGWRVH[XDOO\DVVDXOWLQJZRPHQ²
:LNL/HDNV UHOHDVHG HPDLOV VWROHQ IURP 3RGHVWD :LNL/HDNV FRQWLQXHG WR UHOHDVH
GRFXPHQWVVWROHQIURP3RGHVWDRQDQHDUGDLO\EDVLVXQWLO1RYHPEHU±MXVWDV6WRQHKDG
SUHGLFWHG
0 7UXPS3XEOLFO\3UDLVHVWKH,OOHJDO'LVVHPLQDWLRQRI6WROHQ'1&'RFXPHQWV
7UXPSUHSHDWHGO\ODXGHGWKHGLVFORVXUHRIGRFXPHQWVVWROHQE\WKH5XVVLDQVDQG
HQFRXUDJHGWKHPHGLDDQGYRWHUVWRSD\PRUHDWWHQWLRQWRWKHOHDNV
2Q-XO\7UXPSWZHHWHG³7KH'HPRFUDWVDUHLQDWRWDOPHOWGRZQEXWWKH
ELDVHGPHGLDZLOOVD\KRZJUHDWWKH\DUHGRLQJ(PDLOVVD\WKHULJJHGV\VWHPLVDOLYH ZHOO´
2Q-XO\7UXPSWZHHWHG³,IWKH5HSXEOLFDQ&RQYHQWLRQKDGEORZQXS
ZLOG>@´
2Q-XO\7UXPSWZHHWHG³7KHQHZMRNHLQWRZQLVWKDW5XVVLDOHDNHGWKH
2Q2FWREHU7UXPSWZHHWHG³9HU\OLWWOHSLFNXSE\WKHGLVKRQHVWPHGLD
RILQFUHGLEOHLQIRUPDWLRQSURYLGHGE\:LNL/HDNV6RGLVKRQHVW5LJJHGV\VWHP´
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 35 of 66
6LPLODUO\RQ2FWREHU7UXPS-UWZHHWHG³)RUWKRVHZKRKDYHWKHWLPH
WR UHDG DERXW DOO WKH FRUUXSWLRQ DQG K\SRFULV\ DOO WKH #ZLNLOHDNV HPDLOV DUH ULJKW KHUH
KWWSZOVHDUFKWN´ 7KH OLQN LQ WKH 2FWREHU WZHHW ZDV SURYLGHG WR 7UXPS -U E\
:LNL/HDNVYLDDSULYDWHWZHHWWR7UXPS-U¶V7ZLWWHUDFFRXQW
$W KLV UDOOLHV 7UXPS UHSHDWHGO\ GLVFXVVHG WKH GLVFORVXUH RI GRFXPHQWV RQ
:LNL/HDNVHQWKXVLDVWLFDOO\GLUHFWLQJDWWHQWLRQWRWKRVHVWROHQGRFXPHQWVDVWKHDFFRXQWVEHORZ
UHIOHFW
D 2FWREHU7UXPSVDLG³,ORYH:LNL/HDNV´
E 2FWREHU7UXPSVDLGWKDW³:LNL/HDNVLVOLNHDWUHDVXUHWURYH´DQG³'LG
\RXVHHZKHUHRQ:LNLOHDNVLWZDVDQQRXQFHGWKDWWKH\ZHUHSD\LQJSURWHVWRUV
WREHYLROHQW´
F 1RYHPEHU7UXPSVDLG³:LNL/HDNVMXVWFDPHRXWZLWKDQHZRQH´DQG
³>,@W¶VMXVWEHHQVKRZQ>E\:LNLOHDNV@WKDW>LW¶V@DULJJHGV\VWHPZLWKPRUH
FROOXVLRQSRVVLEO\LOOHJDOEHWZHHQWKH'HSDUWPHQWRI-XVWLFHWKH&OLQWRQ
FDPSDLJQ>@DQGWKH6WDWH'HSDUWPHQW´
G 1RYHPEHU7UXPSVDLG³%R\,ORYHUHDGLQJWKRVH:LNL/HDNV´
H 1RYHPEHU7UXPSFLWHG:LNLOHDNVZKLOHFODLPLQJWKDW³&OLQWRQZDV
VHQGLQJKLJKO\FODVVLILHGLQIRUPDWLRQWKURXJKKHUPDLG´
I 1RYHPEHU7UXPS³7KH\JRWLWDOOGRZQIRONV:LNL/HDNV:LNL/HDNV´
)LQDOO\RQ1RYHPEHU²MXVWWZRGD\VEHIRUHWKHHOHFWLRQDQGDWDFULWLFDO
WLPHIRUXQGHFLGHGYRWHUV²:LNL/HDNVUHOHDVHGDGGLWLRQDOKDFNHG'1&HPDLOVZKLFKLWGXEEHG
³'1&/HDN´7KHHPDLOVLQFOXGHGDPRQJRWKHUWKLQJVLQWHUQDOGLVFXVVLRQVUHJDUGLQJ'1&
VWUDWHJ\DQGFRPPXQLFDWLRQVHIIRUWV
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 36 of 66
1 7UXPS²DQG5XVVLD²:LQ
2Q1RYHPEHU7UXPSZRQWKHHOHFWLRQWREHFRPH3UHVLGHQWRIWKH8QLWHG
6WDWHV
,Q0RVFRZWKHUHDFWLRQZDVMXELODWLRQ:KHQWKHQHZVRI7UXPS¶VYLFWRU\EURNH
LQ WKH 'XPD 5XVVLD¶V SDUOLDPHQW OHJLVODWRUV EXUVW LQWR DSSODXVH DQG WKH DQQRXQFHPHQW E\
9\DFKHVODY1LNRQRYDPHPEHURIWKH)RUHLJQ$IIDLUV&RPPLWWHHZDVDOPRVWGURZQHGRXWE\
FODSSLQJDQGFKHHULQJ1LNRQRYVWDWHG³7KUHHPLQXWHVDJR+LOODU\&OLQWRQDFNQRZOHGJHGKHU
GHIHDWLQWKH86SUHVLGHQWLDOHOHFWLRQVDQGMXVWVHFRQGVDJR7UXPSEHJDQKLVVSHHFKDVSUHVLGHQW
HOHFW,FRQJUDWXODWH\RXDOORQWKLV´'HIHQGDQWV¶FRPPRQJRDOKDGEHHQDFKLHYHG
,9 '()(1'$176¶5(3($7('())257672&29(583&217$&76:,7+
5866,$16(9,'(1&(7+(,5&216&,2861(662)*8,/7
7UXPS
V DGYLVHUV UHSHDWHGO\ GHQLHG WKDW PHPEHUV RI WKH 7UXPS &DPSDLJQ KDG
FRQWDFWVZLWK5XVVLDQVRU5XVVLDQRIILFLDOVDQGZKHQFRQIURQWHGZLWKHYLGHQFHWRWKHFRQWUDU\
LVVXHGIDOVHDQGPLVOHDGLQJVWDWHPHQWVDERXWWKHQDWXUHRIWKHVHFRQWDFWV)RUH[DPSOH
D 2Q-XO\7UXPS-UZDVDVNHGDERXWVXJJHVWLRQVWKDWWKH-XO\
UHOHDVHRIVWROHQ'1&HPDLOVZDVSDUWRID5XVVLDQSORWWR³KHOS'RQDOG7UXPS
DQGKXUW+LOODU\&OLQWRQ´'HVSLWHKDYLQJEHHQLQIRUPHGYLDHPDLOZHHNVHDUOLHU
WKDWWKHUHZDVVXFKDSORW7UXPS-UUHVSRQGHG³:HOOMXVWJRHVWRVKRZ\RX
WKHLUH[DFWPRUDOFRPSDVV7KH\¶OOVD\DQ\WKLQJWREHDEOHWRZLQWKLV7KLVLV
WLPHDQGWLPHDJDLQOLHDIWHUOLH«,W¶VGLVJXVWLQJLW¶VVRSKRQ\´
E 2Q-XO\MXVWZHHNVDIWHUKHSDUWLFLSDWHGLQWKH-XQHPHHWLQJ3DXO
0DQDIRUWZDVDVNHGZKHWKHUWKHUHZHUHDQ\³WLHVEHWZHHQ0U7UXPS\RXDQG
\RXUFDPSDLJQDQG3XWLQDQGKLVUHJLPH´0DQDIRUWUHSOLHG³1RWKHUHDUH
QRW7KDW¶VDEVXUG$QG\RXNQRZWKHUH¶VQREDVLVWRLW´
F 2Q1RYHPEHU7UXPSFDPSDLJQVSRNHVSHUVRQ+RSH+LFNVSURYLGHG
WKH$VVRFLDWHG3UHVVZLWKDVWDWHPHQWGHQ\LQJWKDWWKH7UXPSFDPSDLJQKDGDQ\
FRPPXQLFDWLRQVZLWKDQ\³IRUHLJQHQWLW\´GXULQJWKHFDPSDLJQ³1HYHU
KDSSHQHG7KHUHZDVQRFRPPXQLFDWLRQEHWZHHQWKHFDPSDLJQDQGDQ\IRUHLJQ
HQWLW\GXULQJWKHFDPSDLJQ´
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 37 of 66
G 2Q'HFHPEHU7UXPSFDPSDLJQPDQDJHU.HOO\DQQH&RQZD\ZDVDVNHG
ZKHWKHUDQ\RQHLQYROYHGLQWKH7UXPSFDPSDLJQKDG³DQ\FRQWDFWZLWK5XVVLDQV
WU\LQJWRPHGGOHZLWKWKHHOHFWLRQ"´&RQZD\UHVSRQGHG³$EVROXWHO\QRW$QG,
GLVFXVVHGWKDWZLWKWKHSUHVLGHQWHOHFWMXVWODVWQLJKW7KRVHFRQYHUVDWLRQVQHYHU
KDSSHQHG,KHDUSHRSOHVD\LQJLWOLNHLW¶VDIDFWRQWHOHYLVLRQ7KDWLVMXVWQRWRQO\
LQDFFXUDWHDQGIDOVHEXWLW¶VGDQJHURXV´
H ,Q0DUFK7UXPS-UIDOVHO\VWDWHG³'LG,PHHWZLWKSHRSOHWKDWZHUH
5XVVLDQ",¶PVXUH,¶PVXUH,GLG%XWQRQHWKDWZHUHVHWXS1RQHWKDW,FDQWKLQN
RIDWWKHPRPHQW$QGFHUWDLQO\QRQHWKDW,ZDVUHSUHVHQWLQJWKHFDPSDLJQLQDQ\
ZD\VKDSHRUIRUP´
I 2Q-XO\7UXPS-UUHOHDVHGDKLJKO\PLVOHDGLQJVWDWHPHQWDERXWWKH-XQH
PHHWLQJWKDWZDVUHSRUWHGO\FUDIWHGE\KLVIDWKHU³,WZDVDVKRUW
LQWURGXFWRU\PHHWLQJ,DVNHG-DUHG>.XVKQHU@DQG3DXO>0DQDIRUW@WRVWRSE\:H
SULPDULO\GLVFXVVHGDSURJUDPDERXWWKHDGRSWLRQRI5XVVLDQFKLOGUHQWKDWZDV
DFWLYHDQGSRSXODUZLWK$PHULFDQIDPLOLHV\HDUVDJRDQGZDVVLQFHHQGHGE\WKH
5XVVLDQJRYHUQPHQWEXWLWZDVQRWDFDPSDLJQLVVXHDWWKHWLPHDQGWKHUHZDVQR
IROORZXS«´
J 2Q-XO\7UXPS-UUHOHDVHGDQRWKHUKLJKO\PLVOHDGLQJVWDWHPHQWDERXW
WKH-XQHPHHWLQJWKDWFRQWLQXHGWRRPLWWKDWKHKDGEHHQWROGWKDWWKH
5XVVLDQJRYHUQPHQWLWVHOIZDVVHHNLQJWRKHOSKLVIDWKHU³7KHZRPDQVWDWHGWKDW
VKHKDGLQIRUPDWLRQWKDWLQGLYLGXDOVFRQQHFWHGWR5XVVLDZHUHIXQGLQJWKH
'HPRFUDWLF1DWLRQDO&RPPLWWHHDQGVXSSRUWLQJ0UV&OLQWRQ+HUVWDWHPHQWV
ZHUHYDJXHDPELJXRXVDQGPDGHQRVHQVH1RGHWDLOVRUVXSSRUWLQJLQIRUPDWLRQ
ZDVSURYLGHGRUHYHQRIIHUHG,WTXLFNO\EHFDPHFOHDUWKDWVKHKDGQRPHDQLQJIXO
LQIRUPDWLRQ6KHWKHQFKDQJHGVXEMHFWVDQGEHJDQGLVFXVVLQJWKHDGRSWLRQRI
5XVVLDQFKLOGUHQDQGPHQWLRQHGWKH0DJQLWVN\$FW,WEHFDPHFOHDUWRPHWKDW
WKLVZDVWKHWUXHDJHQGDDOODORQJDQGWKDWWKHFODLPVRISRWHQWLDOO\KHOSIXO
LQIRUPDWLRQZHUHDSUHWH[WIRUWKHPHHWLQJ´
K 2Q2FWREHU3DSDGRSRXORVSOHDGHGJXLOW\WRO\LQJDERXWKLVFRQWDFWVZLWK
0LIVXGDQGRWKHU5XVVLDQFRQWDFWVGXULQJLQWHUYLHZVZLWKWKH)%,3DSDGRSRXORV
DOVRGHOHWHGKLV)DFHERRNDFFRXQWVFUXEEHGRWKHUVRFLDOPHGLDDFFRXQWVDQG
FKDQJHGKLVFHOOSKRQHQXPEHULQDQDWWHPSWWRKLGHWKRVHFRQWDFWV
7KH5XVVLDQJRYHUQPHQWKDVDOVRUHSHDWHGO\GHQLHGUHVSRQVLELOLW\IRULQWHUIHUHQFH
LQWKHHOHFWLRQLQFOXGLQJWKHF\EHUDWWDFNVRQWKH'1&/LNHZLVH:LNL/HDNVDQG$VVDQJH
KDYHUHSHDWHGO\GHQLHGWKDWWKHVWROHQ'1&PDWHULDOWKH\GLVVHPLQDWHGZDVSURYLGHGWRWKHPE\
5XVVLDDQGKDYHFDVWGRXEWRQZKHWKHU5XVVLDZDVUHVSRQVLEOHIRUWKHF\EHUDWWDFNVRQWKH'1&
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 38 of 66
9 7+(6,*1,),&$17+$50,1)/,&7('83213/$,17,))
7KHLOOHJDOFRQVSLUDF\LQIOLFWHGSURIRXQGGDPDJHXSRQWKH'1&7KHWLPLQJDQG
VHOHFWLYH UHOHDVH RI WKH VWROHQ PDWHULDOV SUHYHQWHG WKH '1& IURP FRPPXQLFDWLQJ ZLWK WKH
$PHULFDQHOHFWRUDWHRQLWVRZQWHUPV7KHVHVHOHFWLYHUHOHDVHVRIVWROHQPDWHULDOUHDFKDSHDN
LPPHGLDWHO\ EHIRUH WKH 'HPRFUDWLF 1DWLRQDO &RQYHQWLRQ DQG FRQWLQXHG WKURXJK WKH JHQHUDO
HOHFWLRQ
7KHWLPLQJDQGVHOHFWLYHUHOHDVHRIVWROHQPDWHULDOVZDVGHVLJQHGWRDQGKDGWKH
HIIHFWRIGULYLQJDZHGJHEHWZHHQWKH'1&DQG'HPRFUDWLFYRWHUV7KHUHOHDVHRIVWROHQPDWHULDOV
DOVRLPSDLUHGWKH'1&¶VDELOLW\WRVXSSRUW'HPRFUDWLFFDQGLGDWHVLQWKHJHQHUDOHOHFWLRQ
7KH SXEOLF UHOHDVH RI VWROHQ '1& PDWHULDOV ZDV HQRUPRXVO\ GLVUXSWLYH WR WKH
FRQYHQWLRQXQGHUPLQLQJWKHSDUW\¶VDELOLW\WRDFKLHYHXQLW\DQGUDOO\PHPEHUVDURXQGWKHLUVKDUHG
YDOXHV 7KH UHOHDVH FDVW D FORXG RYHU WKH FRQYHQWLRQ¶V DFWLYLWLHV LQWHUIHULQJ ZLWK WKH SDUW\¶V
RSSRUWXQLW\WRFRPPXQLFDWHLWVYLVLRQWRWKHHOHFWRUDWH
7KH UHOHDVH RI WKLV VWROHQ PDWHULDO XSHQGHG WKH '1&¶V DELOLW\ WR FRPPXQLFDWH
HIIHFWLYHO\DPRQJVWDIIDQGZLWKPHPEHUVRIWKHSDUW\DQGEURDGHUFRPPXQLW\,WDOVRH[SRVHG
WKH'1&¶VVWDIIWRFRQVWDQWWKUHDWVE\WHOHSKRQHDQGHPDLOZKLFKZHUHXQDYRLGDEOHEHFDXVHVWDII
FRXOGQRWFKDQJHWKHLUFRQWDFWLQIRUPDWLRQZLWKWKHFRQYHQWLRQXQGHUZD\
7KH'1&DOVRVXIIHUHGVLJQLILFDQWLQWHUUXSWLRQDQGGLVUXSWLRQRILWVSROLWLFDODQG
IXQGUDLVLQJ DFWLYLWLHV WKURXJKRXW WKH 8QLWHG 6WDWHV GXULQJ WKH FULWLFDO ILQDO PRQWKV RI WKH
SUHVLGHQWLDO FDPSDLJQ 6SHFLILFDOO\ WKH UHOHDVH RI SHUVRQDO DQG VRPHWLPHV HPEDUUDVVLQJ
LQIRUPDWLRQ DERXW '1& GRQRUV KDG D FKLOOLQJ HIIHFW RQ GRQDWLRQV WR WKH '1& UHVXOWLQJ LQ D
VXEVWDQWLDOORVVRILQFRPHWRWKH'1&DQGDUHGXFWLRQLQWKHRYHUDOODPRXQWVRIIXQGVWKDWWKH
'1&FRXOGH[SHQGWRVXSSRUW'HPRFUDWLFFDQGLGDWHVQDWLRQZLGH
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 39 of 66
,Q DGGLWLRQ EHFDXVH WKH SXEOLF UHOHDVHV LQFOXGHG SHUVRQDO DQG LQ VRPH FDVHV
SURWHFWHG LQIRUPDWLRQ DERXW '1& HPSOR\HHV LW H[SRVHG HPSOR\HHV RI WKH '1& WR LQWHQVH
LPSDLUHGWKHHPSOR\HHV¶DELOLW\WRIXQFWLRQHIIHFWLYHO\LQWKHLUMREV
2Q -XO\ ²WKH VDPH GD\ DV WKH ILUVW :LNL/HDNV UHOHDVH RI VWROHQ '1&
HPDLOV²D'1&HPSOR\HHUHFHLYHGDYRLFHPDLOIURPDQXQNQRZQFDOOHUVWDWLQJWKDWWKHHPSOR\HH
VKRXOG EH ³H[HFXWHG´ DQG WKDW KH KRSHG WKH HPSOR\HH ZRXOG EH ³SXW LQ MDLO SXW RQ WULDO DQG
H[HFXWHGIRUEHLQJ>D@WUDLWRU´
2Q-XO\PXOWLSOH'1&HPSOR\HHVUHFHLYHGDQHPDLOVWDWLQJ³,KRSHDOO
\RXUFKLOGUHQJHWUDSHGDQGPXUGHUHG,KRSH\RXUIDPLO\NQRZVQRWKLQJEXWVXIIHULQJWRUWXUHDQG
GHDWK´
2Q-XO\DQHPSOR\HHUHFHLYHGDYRLFHPDLOVWDWLQJ³\RXJRWDWDUJHWRQ
\RXUEDFNEHWWHUNHHSORRNLQJRYHU\RXUVKRXOGHU>H[SOHWLYH@<RX>H[SOHWLYHV@'LH'LH'LH
'LH,KDWH\RX>H[SOHWLYH@JXWV\RX>H[SOHWLYH@<RX¶YHJRWDQDUURZRQ\RXUEDFN$QG\RXNQRZ
ZKDW"6QLSHUVDUHJRLQJWRJHW\RX<RX>H[SOHWLYHV@´
$QRWKHUUHFHLYHGDSURIDQLW\ODGHQYRLFHPDLOZDUQLQJKLPWKDW³:H¶UHFRPLQJIRU
\RX´7KHVHWKUHDWVDVZHOODVRWKHUVDOOEHJDQDIWHU-XO\ZKHQ:LNL/HDNVUHOHDVHGWKHRYHU
VWROHQ'1&HPDLOVZKLFKFRQWDLQHGWKHQDPHVHPDLODGGUHVVHVDQGSKRQHQXPEHUVRI
WKH'1&HPSOR\HHV
,Q DGGLWLRQ WKH 'HIHQGDQWV¶ FRQGXFW FDXVHG HQRUPRXV GDPDJH WR WKH '1&¶V
FRPSXWHUV\VWHPVFUHDWLQJWKHQHHGWRDUHSDLUDQGUHSODFHRIWKH'1&¶VFRPSXWHUKDUGZDUH
DQG VRIWZDUH WHOHSKRQH DQG WHOHSKRQH V\VWHPV DQG EDFNXS V\VWHPV GXH WR GDPDJH IURP WKH
LOOHJDO KDFNLQJ DQG UHODWHG UHOHDVH RI VXFK LQIRUPDWLRQ E UHWDLQ VWDII DQG FRQVXOWDQWV WR
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 40 of 66
LQYHVWLJDWHWKHKDFNLQJDQGFUHWDLQVWDIIDQGFRQVXOWDQWVWRUHPHGLDWHWKHGDPDJHFDXVHGE\WKH
KDFNLQJ¶VLPSDFW
&$86(62)$&7,21
&2817,
&20387(5)5$8'$1'$%86($&786&$
$*$,1675866,$7+(*58$1'*5823(5$7,9(
3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E\ UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV
&RPSODLQWDQGSDUDJUDSKVLQWKHFRXQWVEHORZDVWKRXJKVHWIRUWKIXOO\KHUHLQ
7KH '1&¶V FRPSXWHUV DUH LQYROYHG LQ LQWHUVWDWH DQG IRUHLJQ FRPPHUFH DQG
FRPPXQLFDWLRQDQGDUHSURWHFWHGFRPSXWHUVXQGHU86&H
2QLQIRUPDWLRQDQGEHOLHI5XVVLDWKH*58DQG*582SHUDWLYHNQRZLQJO\
DQG LQWHQWLRQDOO\ DFFHVVHG WKH '1&¶V FRPSXWHUV ZLWKRXW DXWKRUL]DWLRQ RU LQ H[FHVV RI
DXWKRUL]DWLRQ DQG WKHUHE\ REWDLQHG DQG XVHG YDOXDEOH LQIRUPDWLRQ IURP WKRVH FRPSXWHUV LQ
SROLWLFDOO\ VHQVLWLYH FRPPXQLFDWLRQV EHWZHHQ WKH '1& DQG 'HPRFUDWLF VWDNHKROGHUV DQG
FDQGLGDWHVFRQILGHQWLDOGRQRUGDWDFRQILGHQWLDOFDPSDLJQVWUDWHJ\SODQVRSSRVLWLRQDQGSROLF\
UHVHDUFKDQGGRFXPHQWVUHJDUGLQJSODQQHGSROLWLFDOHYHQWVLQFOXGLQJIXQGUDLVHUVDQGUDOOLHV7KH
LQIRUPDWLRQZDVXVHGWRDGYDQFHWKHSODQWRGHQLJUDWHWKH'HPRFUDWLFSUHVLGHQWLDOQRPLQHHDQG
WKHFRQILGHQWLDOSURSULHWDU\LQIRUPDWLRQSXEOLFO\RQOLQHLQFOXGLQJRQ:LNL/HDNV
8SRQLQIRUPDWLRQDQGEHOLHI5XVVLDWKH*58DQG*582SHUDWLYHNQRZLQJO\
FDXVHG WKH WUDQVPLVVLRQ RI D SURJUDP LQIRUPDWLRQ FRGH RU FRPPDQG DQG DV D UHVXOW RI VXFK
FRQGXFWLQWHQWLRQDOO\FDXVHGGDPDJHZLWKRXWDXWKRUL]DWLRQWRDSURWHFWHGFRPSXWHULQYLRODWLRQ
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 41 of 66
RI 86& D$ 6XFK WUDQVPLVVLRQ LQFOXGHG EXW ZDV QRW OLPLWHG WR WKH XVH RI
PDOZDUHRQ'1&V\VWHPV
8SRQ LQIRUPDWLRQ DQG EHOLHI 5XVVLD WKH *58 DQG *58 2SHUDWLYH
LQWHQWLRQDOO\DFFHVVHGDSURWHFWHGFRPSXWHURUFRPSXWHUVZLWKRXWDXWKRUL]DWLRQDQGDVDUHVXOWRI
FDXVHGGDPDJHLQYLRODWLRQRI86&D%
8SRQLQIRUPDWLRQDQGEHOLHI5XVVLDWKH*58DQG*582SHUDWLYHNQRZLQJO\
DQGZLWKLQWHQWWRGHIUDXGWUDIILFNHGSDVVZRUGVDQGVLPLODULQIRUPDWLRQIURPWKH'1&V\VWHPV
DQG VXFK WUDIILFNLQJ DIIHFWHG LQWHUVWDWH RU IRUHLJQ FRPPHUFH LQ YLRODWLRQ RI 86&
D$
5XVVLDWKH*58DQG*582SHUDWLYHFDXVHGORVVWRRQHRUPRUHSHUVRQVGXULQJ
DRQH\HDUSHULRGDJJUHJDWLQJZHOORYHULQYDOXHDQGWKH\DOVRFDXVHGGDPDJHDIIHFWLQJ
WHQRUPRUHSURWHFWHGFRPSXWHUVGXULQJDRQH\HDUSHULRG
7KH'1&VXIIHUHGGDPDJHDQGORVVDVDFRQVHTXHQFHRI5XVVLDWKH*58DQG*58
2SHUDWLYH¶VDFWLRQVLQFOXGLQJEXWQRWOLPLWHGWRWKHFRVWRILQYHVWLJDWLQJDQGUHVSRQGLQJWRWKH
XQDXWKRUL]HG DFFHVV DQG DEXVH RI WKHLU FRPSXWHU QHWZRUNV FRQGXFWLQJ GDPDJH DVVHVVPHQWV
UHVWRULQJ DQG UHSODFLQJ FRPSXWHUV DQG GDWD SURJUDPV V\VWHPV RU LQIRUPDWLRQ WKH ORVV RI WKH
YDOXHRIWKH'1&¶VWUDGHVHFUHWVDQGWKHKDUPWRWKH'1&¶VEXVLQHVVDVGHVFULEHGDERYH7KH
'1&VHHNVFRPSHQVDWRU\DQGRWKHUHTXLWDEOHUHOLHIXQGHU86&J
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 42 of 66
&2817,,
3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E\ UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV
&RPSODLQWDQGSDUDJUDSKVLQWKHFRXQWVEHORZDVWKRXJKVHWIRUWKIXOO\KHUHLQ
'HIHQGDQWV DUH DOO ³SHUVRQV´ ZLWKLQWKH PHDQLQJ RI 86& $W DOO
UHOHYDQWWLPHV'HIHQGDQWVFRQGXFWHGWKHDIIDLUVRIDQ(QWHUSULVH²ZKLFKDIIHFWHGLQWHUVWDWHDQG
IRUHLJQFRPPHUFH²WKURXJKDSDWWHUQRIUDFNHWHHULQJDFWLYLW\LQYLRODWLRQRI86&F
$ 7KH7UXPS&DPSDLJQ:DVWKH5DFNHWHHULQJ(QWHUSULVH
86&7KH(QWHUSULVHZDVIRUPHGE\-XQH
7KH7UXPS&DPSDLJQKDGDQRQJRLQJRUJDQL]DWLRQDOIUDPHZRUNIRUFDUU\LQJRXW
LWVREMHFWLYHV
$VGHVFULEHGDERYHHDFK'HIHQGDQWSDUWLFLSDWHGLQWKHRSHUDWLRQRUPDQDJHPHQW
RIWKH(QWHUSULVH
%HFDXVHWKH7UXPS&DPSDLJQH[SHQGHGPLOOLRQVRIGROODUVRQWKHSUHVLGHQWLDO
UDFHLWDIIHFWHGLQWHUVWDWHDQGIRUHLJQFRPPHUFH
(DFK 'HIHQGDQW FRQGXFWHG DQGRU SDUWLFLSDWHG LQ WKH DIIDLUV RI WKH (QWHUSULVH
WKURXJK D SDWWHUQ RI UDFNHWHHULQJ DFWLYLW\ LQFOXGLQJ DFWV LQGLFWDEOH XQGHU 86&
HFRQRPLF HVSLRQDJH DQG 86& WKHIW RI WUDGH VHFUHWV 7KH 7UXPS $VVRFLDWHV
:LNL/HDNV DQG $VVDQJH GLUHFWHG LQGXFHG XUJHG DQGRU HQFRXUDJHG 5XVVLD DQG WKH *58 WR
HQJDJHLQWKLVFRQGXFWDQGRUWRSURYLGH:LNL/HDNVDQG$VVDQJHZLWK'1&¶VWUDGHVHFUHWVZLWK
WKH H[SHFWDWLRQ WKDW :LNL/HDNV DQG $VVDQJH ZRXOG GLVVHPLQDWH WKRVH VHFUHWV DQG LQFUHDVH WKH
7UXPS&DPSDLJQ¶VFKDQFHRIZLQQLQJWKHHOHFWLRQ
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 43 of 66
% $OWHUQDWLYHO\DQGDWWKH9HU\/HDVWWKH7UXPS&DPSDLJQ:DV3DUWRIDQ
$VVRFLDWLRQ,Q)DFW(QWHUSULVH
$OWHUQDWLYHO\ DQG DW WKH YHU\ OHDVW WKH 7UXPS &DPSDLJQ ZDV SDUW RI DQ
$VVRFLDWLRQ,Q)DFW(QWHUSULVHFRPSULVLQJ5XVVLDWKH*58DQG*582SHUDWLYH:LNL/HDNV
$VVDQJHWKH7UXPS&DPSDLJQ$UDVDQG(PLQ$JDODURY0LVIXGDQGWKH7UXPS$VVRFLDWHVWKHLU
HPSOR\HHV DQG DJHQWV DQG DGGLWLRQDO HQWLWLHV DQG LQGLYLGXDOV NQRZQ DQG XQNQRZQ 7KH
$VVRFLDWLRQ,Q)DFW(QWHUSULVHZDVIRUPHGE\DWOHDVW-XQH)URPWKDWWLPHXQWLO1RYHPEHU
WKHPHPEHUVRIWKH$VVRFLDWLRQ,Q)DFW(QWHUSULVHZRUNHGWRJHWKHUWRIXUWKHUWKHLUPXWXDO
JRDOVRILPSURYLQJ7UXPS¶VHOHFWRUDOSURVSHFWVDQGGDPDJLQJWKH'1&
7KH$VVRFLDWLRQ,Q)DFW(QWHUSULVHKDGDQRQJRLQJRUJDQL]DWLRQDOIUDPHZRUNIRU
FDUU\LQJRXWLWVREMHFWLYHV,QIDFWWKH$VVRFLDWLRQ,Q)DFW(QWHUSULVHFRXOGQRWKDYHFDUULHGRXW
LWV LQWULFDWH WDVN RI VKDULQJ FRQILGHQWLDO LQIRUPDWLRQ DW WKH PRPHQWV ZKHQ LW ZRXOG EH PRVW
EHQHILFLDOWRWKH7UXPS&DPSDLJQXQOHVVLWKDGVRPHVWUXFWXUHIRUPDNLQJDQGFRPPXQLFDWLQJ
JURXSGHFLVLRQV
$VGHVFULEHGDERYHHDFK'HIHQGDQWSDUWLFLSDWHGLQWKHRSHUDWLRQRUPDQDJHPHQW
RIWKH$VVRFLDWLRQ,Q)DFW(QWHUSULVHDQGEHQHILWWHGILQDQFLDOO\IURPWKHHQWHUSULVH
%HFDXVHWKH$VVRFLDWLRQ,Q)DFW(QWHUSULVH¶VDFWLYLWLHVDIIHFWHGHOHFWRUDOVSHQGLQJ
LQ DV ZHOO DV WKH PHGLD UHVSRQVH WR WKH SUHVLGHQWLDO UDFH LW DIIHFWHG LQWHUVWDWH DQG
IRUHLJQFRPPHUFH
& 5,&23UHGLFDWH$FWV
(DFK 'HIHQGDQW FRQGXFWHG DQGRU SDUWLFLSDWHG LQ WKH DIIDLUV RI WKH 7UXPS
&DPSDLJQ DQG WKH $VVRFLDWLRQ,Q)DFW (QWHUSULVH WKURXJK D SDWWHUQ RI UDFNHWHHULQJ DFWLYLW\
WKHIW RI WUDGH VHFUHWV 7KH 7UXPS &DPSDLJQ WKH 7UXPS $VVRFLDWHV :LNL/HDNV DQG $VVDQJH
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 44 of 66
GLUHFWHGLQGXFHGXUJHGDQGRUHQFRXUDJHG5XVVLDDQGWKH*58WRHQJDJHLQWKLVFRQGXFWDQGRU
WRSURYLGH:LNL/HDNVDQG$VVDQJHZLWK'1&¶VWUDGHVHFUHWVZLWKWKHH[SHFWDWLRQWKDW:LNL/HDNV
DQG $VVDQJH ZRXOG GLVVHPLQDWH WKRVH VHFUHWV DQG LQFUHDVH WKH 7UXPS &DPSDLJQ¶V FKDQFH RI
ZLQQLQJWKHHOHFWLRQ
%HJLQQLQJRQRUEHIRUH-XO\5XVVLDWKH*58DQG*582SHUDWLYH
WRRNWUDGHVHFUHWVIURPWKH'1&ZLWKRXWDXWKRUL]DWLRQLQWHQGLQJRUNQRZLQJWKDWGRLQJVRZRXOG
EHQHILW5XVVLD5XVVLDQLQVWUXPHQWDOLWLHVRU5XVVLDQDJHQWV
5XVVLD WKH *58 DQG *58 2SHUDWLYH DOVR FRSLHG GXSOLFDWHG GRZQORDGHG
XSORDGHGDOWHUHGGHVWUR\HGUHSOLFDWHGWUDQVPLWWHGGHOLYHUHGVHQWFRPPXQLFDWHGRUFRQYH\HG
3ODLQWLII¶VWUDGHVHFUHWVLQWHQGLQJRUNQRZLQJWKDWGRLQJVRZRXOGEHQHILWWKH5XVVLDQJRYHUQPHQW
5XVVLDQ,QVWUXPHQWDOLWLHVRU5XVVLDQDJHQWVLQIXUWKHUDQFHRIWKHLOOHJDOVFKHPH5XVVLD²DFWLQJ
WKURXJK*582SHUDWLYH²UHOHDVHGDQGWUDQVPLWWHG'1&WUDGHVHFUHWVZLWKRXWDXWKRUL]DWLRQRQ
-XQH-XQH-XQH-XQH-XO\6HSWHPEHUDQG2FWREHURI(DFKUHOHDVH
FRQVWLWXWHVDVHSDUDWHDFWRIHFRQRPLFHVSLRQDJH
%HJLQQLQJRQRUEHIRUH-XO\5XVVLDWKH*58DQG*582SHUDWLYH
UHFHLYHG ERXJKW RU SRVVHVVHG '1& WUDGH VHFUHWV NQRZLQJ WKH VDPH WR KDYH EHHQ VWROHQ RU
DSSURSULDWHGREWDLQHGRUFRQYHUWHGZLWKRXWDXWKRUL]DWLRQDQGLQWHQGLQJRUNQRZLQJWKDWGRLQJ
VRZRXOGEHQHILWWKH5XVVLDQ*RYHUQPHQW5XVVLDQLQVWUXPHQWDOLWLHVRU5XVVLDQDJHQWV
GHVWUR\HG UHSOLFDWHG WUDQVPLWWHG GHOLYHUHG VHQW FRPPXQLFDWHV RU FRQYH\HG 3ODLQWLII¶V WUDGH
VHFUHWV LQWHQGLQJ RU NQRZLQJ WKDW GRLQJ VR ZRXOG EHQHILW WKH 5XVVLDQ JRYHUQPHQW 5XVVLDQ
LQVWUXPHQWDOLWLHVRU5XVVLDQDJHQWVLQIXUWKHUDQFHRIWKHLOOHJDOVFKHPH
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 45 of 66
:LNL/HDNV DQG $VVDQJH UHOHDVHG DQG WUDQVPLWWHG '1& WUDGH VHFUHWV LQFOXGLQJ
FRQILGHQWLDOSURSULHWDU\GRFXPHQWVUHODWHGWRFDPSDLJQVIXQGUDLVLQJDQGFDPSDLJQVWUDWHJ\RQ
-XO\DQG1RYHPEHU(DFKUHOHDVHFRQVWLWXWHGDVHSDUDWHDFWRIHFRQRPLFHVSLRQDJH
%HJLQQLQJ RQ RU EHIRUH -XO\ DQG FRQWLQXLQJ GDLO\ WKHUHDIWHU WKURXJK
1RYHPEHU:LNL/HDNVDQG$VVDQJHUHFHLYHGERXJKWRUSRVVHVVHG3ODLQWLII¶VWUDGHVHFUHWV
NQRZLQJWKHPWRKDYHEHHQVWROHQRUDSSURSULDWHGREWDLQHGRUFRQYHUWHGZLWKRXWDXWKRUL]DWLRQ
DQG LQWHQGLQJ RU NQRZLQJ WKDW GRLQJ VR ZRXOG EHQHILW WKH 5XVVLDQ JRYHUQPHQW 5XVVLDQ
LQVWUXPHQWDOLWLHVRU5XVVLDQDJHQWV
5XVVLDWKH*58DQG*582SHUDWLYHDOVRFRPPLWWHGWKHDFWVGHVFULEHGDERYH
ZLWKWKHLQWHQWWRFRQYHUW3ODLQWLII¶VWUDGHVHFUHWVZKLFKDUHUHODWHGWRDSURGXFWRUVHUYLFHXVHGLQ
RULQWHQGHGIRUXVHLQLQWHUVWDWHRUIRUHLJQFRPPHUFHWRWKHHFRQRPLFEHQHILWRIRWKHUVEHVLGHV
3ODLQWLII(DFKXQDXWKRUL]HGUHOHDVHFRQVWLWXWHVDVHSDUDWHDFWRIWKHIWRIWUDGHVHFUHWV
:LNL/HDNVDQG$VVDQJHDOVRFRPPLWWHGWKHDFWVGHVFULEHGDERYHZLWKWKHLQWHQWWR
FRQYHUW3ODLQWLII¶VWUDGHVHFUHWVZKLFKDUHUHODWHGWRDSURGXFWRUVHUYLFHXVHGLQRULQWHQGHGIRU
XVHLQLQWHUVWDWHRUIRUHLJQFRPPHUFHWRWKHHFRQRPLFEHQHILWRIRWKHUVEHVLGHV3ODLQWLII(DFK
XQDXWKRUL]HGUHOHDVHFRQVWLWXWHVDVHSDUDWHDFWRIWKHIWRIWUDGHVHFUHWV
7UXPS WKH 7UXPS &DPSDLJQ DQG WKH 7UXPS $VVRFLDWHV IXUWKHUHG WKH FRPPRQ
$VVDQJHZRXOGFRPPLWWKHSUHGLFDWHDFWVDQGIXUWKHUWKHVFKHPHDQGE\UHPDLQLQJLQFRQVWDQW
FRPPXQLFDWLRQ ZLWK 5XVVLDQ LQWHOOLJHQFH RIILFLDOV DQG DGYLVLQJ LQVWUXFWLQJ DQG SURYLGLQJ WKH
RWKHU'HIHQGDQWVZLWKLQWHOOLJHQFHUHJDUGLQJWKHWLPLQJRIWKHXQDXWKRUL]HGUHOHDVHVHQFRXUDJLQJ
FRQWLQXHGLOOHJDOKDFNLQJDQGXQDXWKRUL]HGGLVFORVXUHRIVWROHQ'HPRFUDWLFLQIRUPDWLRQDFWLYHO\
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 46 of 66
XVLQJWKHLOOHJDOGLVFORVXUHVWREROVWHU7UXPSDQGDFWLYHO\ZRUNLQJWRFRQFHDODQGFRYHUXSWKH
VFKHPHWKURXJKIDOVHVWDWHPHQWV
' 5,&2'DPDJHV
3ODLQWLIIKDVEHHQLQMXUHGLQLWVEXVLQHVVDQGSURSHUW\E\'HIHQGDQWV¶YLRODWLRQRI
86&F'HIHQGDQWVFDXVHGHQRUPRXVKDUPWR3ODLQWLII¶VEXVLQHVVDVGHVFULEHGDERYH
DQGWR3ODLQWLII¶VFRPSXWHUVDQGVHUYHUV$OORIWKHVHLQMXULHVRFFXUUHGZLWKLQWKH8QLWHG6WDWHV
&2817,,,
3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E\ UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV
&RPSODLQWDQGSDUDJUDSKVLQWKHFRXQWVEHORZDVWKRXJKVHWIRUWKIXOO\KHUHLQ
NQRZLQJO\ DJUHHG FRPELQHG DQG FRQVSLUHG WR FRQGXFW WKH DIIDLUV RI WKH (QWHUSULVH RU WKH
$VVRFLDWLRQ,Q)DFW(QWHUSULVHWKURXJKDF\EHUHVSLRQDJHRSHUDWLRQ(DFK'HIHQGDQWDJUHHGWKDW
86&WKHIWRIWUDGHVHFUHWV
3ODLQWLIIKDVEHHQLQMXUHGLQWKHLUEXVLQHVVRUSURSHUW\E\'HIHQGDQWV¶YLRODWLRQRI
86& G 3ODLQWLII KDV EHHQ LQMXUHG LQ LWV EXVLQHVV DQG SURSHUW\ E\ 'HIHQGDQWV¶
GHVFULEHGDERYHDQGWR3ODLQWLII¶VFRPSXWHUVDQGVHUYHUV$OORIWKHVHLQMXULHVRFFXUUHGZLWKLQWKH
8QLWHG6WDWHV
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 47 of 66
&2817,9
:,5(7$3$&786&
$*$,167*5823(5$7,9(:,.,/($.6$66$1*(7+(75803
&$03$,*1$1'7+(75803$662&,$7(6
3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E\ UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV
&RPSODLQWDQGSDUDJUDSKVLQWKHFRXQWVEHORZDVWKRXJKVHWIRUWKIXOO\KHUHLQ
(DFK'HIHQGDQWLVD³SHUVRQ´ZLWKLQWKHPHDQLQJRI86&
,Q YLRODWLRQ RI 86& D *58 2SHUDWLYH ZLOOIXOO\ DQG
LQWHQWLRQDOO\ LQWHUFHSWHG RU HQGHDYRUHG WR LQWHUFHSW 3ODLQWLII¶V ZLUH RUDO RU HOHFWURQLF
FRPPXQLFDWLRQVE\KDFNLQJLQWR3ODLQWLII¶VFRPSXWHUV\VWHPV92,3DQGRUHPDLODFFRXQWVDQG
H[WUDFWLQJ3ODLQWLII¶VSULYDWHFRQILGHQWLDOGRFXPHQWVDQGILOHV
ZLOOIXOO\ DQG LQWHQWLRQDOO\ GLVFORVHG WKH FRQWHQWV RI 3ODLQWLII¶V ZLUH RUDO RU HOHFWURQLF
FRPPXQLFDWLRQVNQRZLQJRUKDYLQJUHDVRQWRNQRZWKDWWKHLQIRUPDWLRQZDVREWDLQHGWKURXJK
WKHLQWHUFHSWLRQRIZLUHRUDORUHOHFWURQLFFRPPXQLFDWLRQLQYLRODWLRQRI86&
WKH7UXPS$VVRFLDWHVDQGWKH7UXPS&DPSDLJQZLOOIXOO\DQGLQWHQWLRQDOO\XVHGWKHFRQWHQWVRI
ZLUHRUDOHOHFWURQLFFRPPXQLFDWLRQVNQRZLQJRUKDYLQJUHDVRQWRNQRZWKDWWKHLQIRUPDWLRQZDV
REWDLQHGWKURXJKWKHLQWHUFHSWLRQRIDZLUHRUDORUHOHFWURQLFFRPPXQLFDWLRQLQYLRODWLRQRI
86&
3ODLQWLII KDG D MXVWLILDEOH H[SHFWDWLRQ WKDW LWV ZLUH RUDO RU HOHFWURQLF
FRPPXQLFDWLRQVZHUHQRWVXEMHFWWRLQWHUFHSWLRQ
3ODLQWLII LV D ³SHUVRQ´ ZKRVH ZLUH RUDO RU HOHFWURQLF FRPPXQLFDWLRQV ZHUH
LQWHUFHSWHGZLWKLQWKHPHDQLQJRI86&
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 48 of 66
$V D GLUHFW UHVXOW RI *58 2SHUDWLYH :LNL/HDNV $VVDQJH WKH 7UXPS
$VVRFLDWHVDQGWKH7UXPS&DPSDLJQ¶VDFWLRQV3ODLQWLIIVXIIHUHGLUUHSDUDEOHKDUPWRLWVEXVLQHVV
DQG SURSHUW\ DQG LV HQWLWOHG WR DQ DZDUG RI WKH JUHDWHU RI WKH DFWXDO GDPDJHV VXIIHUHG RU WKH
VWDWXWRU\GDPDJHVDQGLQMXQFWLYHUHOLHISXUVXDQWWR86&F7KLVKDUPLQFOXGHVEXW
LVQRWOLPLWHGWRKDUPWR'1&FRPSXWHUVDQGVHUYHUVKDUPWRWKH'1&¶VUHSXWDWLRQORVVLQWKH
YDOXHRI'1&WUDGHVHFUHWVDQGEXVLQHVVLQIRUPDWLRQDQGKDUPWREXVLQHVVDVGHVFULEHGDERYH
,Q OLJKW RI WKH HJUHJLRXV QDWXUH RI *58 2SHUDWLYH :LNL/HDNV $VVDQJH WKH
7UXPS$VVRFLDWHVDQGWKH7UXPS&DPSDLJQ¶VYLRODWLRQV3ODLQWLIILVHQWLWOHGWRSXQLWLYHGDPDJHV
DQGUHDVRQDEOHDWWRUQH\V¶IHHVDQGFRVWVSXUVXDQWWR86&E
&28179
6725('&20081,&$7,216$&786&
$*$,1675866,$7+(*58$1'*5823(5$7,9(
3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E\ UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV
&RPSODLQWDQGSDUDJUDSKVLQWKHFRXQWVEHORZDVWKRXJKVHWIRUWKIXOO\KHUHLQ
5XVVLD WKH *58 DQG *58 2SHUDWLYH ZLOOIXOO\ DQG LQWHQWLRQDOO\ DFFHVVHG
ZLWKRXWDXWKRUL]DWLRQDIDFLOLW\WKURXJKZKLFKDQHOHFWURQLFFRPPXQLFDWLRQVHUYLFHLVSURYLGHG
QDPHO\WKH'1&¶VFRPSXWHUV\VWHPVLQFOXGLQJWKHLUHPDLOVHUYHUVWKHUHE\REWDLQLQJDFFHVVWR
ZLUH RU HOHFWURQLF FRPPXQLFDWLRQV ZKLOH WKH\ ZHUH LQ HOHFWURQLF VWRUDJH LQ VXFK V\VWHPV LQ
YLRODWLRQRI86&D
$VDUHVXOWRIWKHVHZLOOIXODQGLQWHQWLRQDOYLRODWLRQV3ODLQWLIIKDVVXIIHUHGGDPDJHV
DQGDVSURYLGHGIRULQ86&VHHNVDQDZDUGRIWKHJUHDWHURIWKHDFWXDOGDPDJHV
VXIIHUHGRUWKHVWDWXWRU\GDPDJHVSXQLWLYHGDPDJHVDWWRUQH\V¶IHHVDQGRWKHUFRVWVRIWKLVDFWLRQ
DQGDSSURSULDWHHTXLWDEOHUHOLHI
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 49 of 66
&28179,
',*,7$/0,//(11,80&23<5,*+7$&786&(76(4
$*$,1675866,$7+(*58$1'*5823(5$7,9(
3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E\ UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV
&RPSODLQWDQGSDUDJUDSKVLQWKHFRXQWVEHORZDVWKRXJKVHWIRUWKIXOO\KHUHLQ
3ODLQWLII¶VFRPSXWHUQHWZRUNVDQGILOHVFRQWDLQHGLQIRUPDWLRQVXEMHFWWRSURWHFWLRQ
XQGHU WKH FRS\ULJKW ODZV RI WKH 8QLWHG 6WDWHV LQFOXGLQJ FDPSDLJQ VWUDWHJ\ GRFXPHQWV DQG
RSSRVLWLRQUHVHDUFKWKDWZHUHLOOHJDOO\DFFHVVHGZLWKRXWDXWKRUL]DWLRQE\5XVVLDDQGWKH*58
$FFHVVWRWKHFRS\ULJKWHGPDWHULDOFRQWDLQHGRQ3ODLQWLII¶VFRPSXWHUQHWZRUNVDQG
HPDLO ZDV FRQWUROOHG E\ WHFKQRORJLFDO PHDVXUHV LQFOXGLQJ PHDVXUHV UHVWULFWLQJ UHPRWH DFFHVV
ILUHZDOOVDQGPHDVXUHVUHVWULFWLQJDFFHVVWRXVHUVZLWKYDOLGFUHGHQWLDOVDQGSDVVZRUGV
,Q YLRODWLRQ RI 86& D 5XVVLD WKH *58 DQG *58 2SHUDWLYH
FLUFXPYHQWHG WKHVH WHFKQRORJLFDO PHDVXUHV E\ VWHDOLQJ FUHGHQWLDOV IURP DXWKRUL]HG XVHUV
FRQGXFWLQJD³SDVVZRUGGXPS´WRXQODZIXOO\REWDLQSDVVZRUGVWRWKHV\VWHPFRQWUROOLQJDFFHVVWR
WKH'1&¶VGRPDLQDQGLQVWDOOLQJPDOZDUHRQ3ODLQWLII¶VFRPSXWHUV\VWHPV
5XVVLD WKH *58 DQG *58 2SHUDWLYH ¶V FRQGXFW FDXVHG 3ODLQWLII VLJQLILFDQW
GDPDJHV 7KHVH GDPDJHV LQFOXGH EXW DUH QRW OLPLWHG WR GDPDJHUHVXOWLQJ IURP KDUP WR '1&
FRPSXWHUVDQGVHUYHUVORVVLQWKHYDOXHRI'1&WUDGHVHFUHWVDQGEXVLQHVVLQIRUPDWLRQDQGKDUP
WREXVLQHVVDVGHVFULEHGDERYH3ODLQWLIILVHQWLWOHGWRWKHJUHDWHURILWVDFWXDOGDPDJHVRUVWDWXWRU\
GDPDJHVDVSURYLGHGE\86&LQDQDPRXQWWREHSURYHQDWWULDO
3ODLQWLIILVHQWLWOHGWRDQDZDUGRIDWWRUQH\V¶IHHVDQGFRVWVDVSURYLGHGE\86&
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 50 of 66
&28179,,
0,6$335235,$7,212)75$'(6(&5(7681'(57+('()(1'75$'(
6(&5(76$&786&(76(4
$*$,1675866,$7+(*58*5823(5$7,9(:,.,/($.6$1'$66$1*(
3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E\ UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV
&RPSODLQWDQGSDUDJUDSKVLQWKHFRXQWVEHORZDVWKRXJKVHWIRUWKIXOO\KHUHLQ
7KHGRFXPHQWVWKDW5XVVLDWKH*58DQG*582SHUDWLYHVWROHIURPWKH'1&¶V
FRPSXWHUV\VWHPVLQFOXGHWUDGHVHFUHWVZLWKLQWKHPHDQLQJRI86&
6SHFLILFDOO\ WKH '1& LV LQ WKH EXVLQHVV RI VXSSRUWLQJ 'HPRFUDWLF SROLWLFDO
FDPSDLJQV DQG WKH VWROHQ GRFXPHQWV LQFOXGHG 'HPRFUDWLF GRQRU LQIRUPDWLRQ RSSRVLWLRQ
UHVHDUFKDQGVWUDWHJLFLQIRUPDWLRQUHJDUGLQJSODQQHGSROLWLFDODFWLYLWLHVWKDWDOORZLWWRHIIHFWLYHO\
FDUU\RXWLWVPLVVLRQ
7KH'1&WDNHVDQGKDVWDNHQUHDVRQDEOHPHDVXUHVWRNHHSVXFKLQIRUPDWLRQVHFUHW
,Q SDUWLFXODU WKH '1& PDLQWDLQV DQG PDLQWDLQHG WKHLU LQIRUPDWLRQ RQ VHFXUHG VHUYHUV WKDW DUH
SDVVZRUGSURWHFWHGWKH\JLYHWKHLUVWDIIWUDLQLQJVWKHLUVWDIIVLJQFRQILGHQWLDOLW\DJUHHPHQWV
3ODLQWLII¶VWUDGHVHFUHWVZHUHUHODWHGWRSURGXFWVRUVHUYLFHVXVHGLQRULQWHQGHGIRU
XVHLQLQWHUVWDWHRUIRUHLJQFRPPHUFH
'HIHQGDQWV5XVVLDWKH*58DQG*582SHUDWLYHPLVDSSURSULDWHG3ODLQWLII¶V
WUDGH VHFUHWV 'HIHQGDQWV 5XVVLD WKH *58 DQG *58 2SHUDWLYH DFTXLUHG 3ODLQWLII¶V WUDGH
VHFUHWVNQRZLQJRUKDYLQJUHDVRQWRNQRZWKDWWKHWUDGHVHFUHWVZHUHDFTXLUHGE\LPSURSHUPHDQV
'HIHQGDQWV5XVVLDWKH*58*582SHUDWLYH:LNL/HDNVDQG$VVDQJHGLVFORVHG3ODLQWLII¶V
WUDGHVHFUHWVZLWKRXWFRQVHQWRQPXOWLSOHGDWHVGLVFXVVHGKHUHLQNQRZLQJRUKDYLQJUHDVRQWR
NQRZWKDWWKHWUDGHVHFUHWVZHUHDFTXLUHGE\LPSURSHUPHDQV
$V D GLUHFW FRQVHTXHQFH RI 'HIHQGDQWV¶ PLVDSSURSULDWLRQ 3ODLQWLII KDV VXIIHUHG
GDPDJHVIRUWKHFRVWRIPDWHULDOVORVVRIJRRGZLOODQGDWWRUQH\V¶IHHVDQGFRVWV3ODLQWLIILVDOVR
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 51 of 66
HQWLWOHGWRSXQLWLYHGDPDJHV7KHVHGDPDJHVLQFOXGHEXWDUHQRWOLPLWHGWRGDPDJHUHVXOWLQJIURP
KDUP WR '1& FRPSXWHUV DQG VHUYHUV ORVV LQ WKH YDOXH RI '1& WUDGH VHFUHWV DQG EXVLQHVV
LQIRUPDWLRQDQGKDUPWREXVLQHVVDVGHVFULEHGDERYH
3ODLQWLIILVDOVRHQWLWOHGWRDSUHOLPLQDU\DQGSHUPDQHQWLQMXQFWLRQSXUVXDQWWR
86&E
&28179,,,
:$6+,1*721'&81,)25075$'(6(&5(76$&7
'&&2'($11±
$*$,167$//'()(1'$176
3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E\ UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV
&RPSODLQWDQGSDUDJUDSKVLQWKHFRXQWVEHORZDVWKRXJKVHWIRUWKIXOO\KHUHLQ
7KH 'LVWULFW RI &ROXPELD H[SUHVVO\ HPSRZHUV D SDUW\ WR UHFRYHU GDPDJHV IRU
PLVDSSURSULDWLRQRIDWUDGHVHFUHW
7KHGRFXPHQWVWKDW5XVVLDWKH*58DQG*582SHUDWLYHH[ILOWUDWHGIURPWKH
'1&¶VFRPSXWHUV\VWHPVLQFOXGHWUDGHVHFUHWVXQGHU'LVWULFWRI&ROXPELDODZDVGLVFXVVHGDERYH
DQGLQNHHSLQJZLWKWKHGHILQLWLRQRIWUDGHVHFUHWVXQGHU'LVWULFWRI&ROXPELDODZ
LQIRUPDWLRQLQFOXGLQJDIRUPXODSDWWHUQFRPSLODWLRQSURJUDP
GHYLFHPHWKRGWHFKQLTXHRUSURFHVVWKDW$'HULYHVDFWXDORU
SRWHQWLDOLQGHSHQGHQWHFRQRPLFYDOXHIURPQRWEHLQJJHQHUDOO\
NQRZQWRDQGQRWEHLQJUHDGLO\DVFHUWDLQDEOHE\SURSHUPHDQVE\
DQRWKHUZKRFDQREWDLQHFRQRPLFYDOXHIURPLWVGLVFORVXUHRUXVH
DQG%,VWKHVXEMHFWRIUHDVRQDEOHHIIRUWVWRPDLQWDLQLWVVHFUHF\
'&&RGH$QQ
7KLV LQIRUPDWLRQ GHULYHG DQ DFWXDO LQGHSHQGHQW HFRQRPLF YDOXH E\ UHPDLQLQJ
FRQILGHQWLDODQGSULYDWHDQGQRWEHLQJUHDGLO\DVFHUWDLQDEOHWRRWKHUV3ODLQWLIIWDNHVDQGKDVWDNHQ
UHDVRQDEOHPHDVXUHVWRNHHSVXFKLQIRUPDWLRQVHFUHWDVGLVFXVVHGVXSUDLQ&RXQW9,,,
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 52 of 66
(DFK'HIHQGDQWGLVFORVHGUHFHLYHGDQGXVHGWKHVHPLVDSSURSULDWHGWUDGHVHFUHWV
ZLWKRXW3ODLQWLII¶VFRQVHQWNQRZLQJRUKDYLQJUHDVRQWRNQRZWKDWWKHWUDGHVHFUHWVZHUHDFTXLUHG
E\LPSURSHUPHDQV
$V D GLUHFW FRQVHTXHQFH RI 'HIHQGDQWV¶ PLVDSSURSULDWLRQ 3ODLQWLII KDV VXIIHUHG
GDPDJHVIRUDFWXDOORVVDQGIURP'HIHQGDQWV¶XQMXVWHQULFKPHQW7KHVHGDPDJHVLQFOXGHEXWDUH
QRWOLPLWHGWRGDPDJHUHVXOWLQJIURPKDUPWR'1&FRPSXWHUVDQGVHUYHUVORVVLQWKHYDOXHRI
'1&WUDGHVHFUHWVDQGEXVLQHVVLQIRUPDWLRQDQGKDUPWREXVLQHVVDVGHVFULEHGDERYH
'HIHQGDQWV¶PLVDSSURSULDWLRQRI3ODLQWLII¶VWUDGHVHFUHWVZDVZLOOIXODQGPDOLFLRXV
$FFRUGLQJO\3ODLQWLIILVHQWLWOHGWRH[HPSODU\GDPDJHVLQDQDPRXQWXSWRWZLFHDFWXDOGDPDJHV
DZDUGHGDVZHOODVDWWRUQH\V¶IHHVDQGFRVWV
&2817,;
75(63$66'&&20021/$:
$*$,1675866,$7+(*58$1'*5823(5$7,9(
3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E\ UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV
&RPSODLQWDQGSDUDJUDSKVLQWKHFRXQWVEHORZDVWKRXJKVHWIRUWKIXOO\KHUHLQ
7KH'1&RZQVDQGRSHUDWHVSULYDWHFRPSXWHUVDQGDSULYDWHFRPSXWHUQHWZRUN
7KLVQHWZRUNDQGWKHLQIRUPDWLRQFRQWDLQHGWKHUHLQFRQVWLWXWHVWKHSURSHUW\RI3ODLQWLII
2Q RU DERXW -XO\ 5XVVLDQ LQWHOOLJHQFH DJHQWV KDFNHG LQWR WKH '1&¶V
FRPSXWHUVDQGQHWZRUN2QRUDERXW$SULO5XVVLDWKH*58DQG*582SHUDWLYH
VHSDUDWHO\ KDFNHG LQWR WKH '1&¶V FRPSXWHUV DQG QHWZRUN 7KHVH FRQVWLWXWHG WZR VHSDUDWH DQG
LQGHSHQGHQW WUHVSDVVHV LQ WKH 8QLWHG 6WDWHV 7KH KDFNV SURYLGHG 5XVVLD WKH *58 DQG *58
2SHUDWLYHZLWKXQDXWKRUL]HGDFFHVVWRWKH3ODLQWLII¶VSURSHUW\LQLWVQHWZRUN
5XVVLD WKH *58 DQG *58 2SHUDWLYH ¶V KDFNV LQWHUIHUHG ZLWK WKH '1&¶V
SRVVHVVRU\LQWHUHVWVLQWKHLUQHWZRUNDQGWKHLQIRUPDWLRQFRQWDLQHGWKHUHLQ%\PHDQVRIWUHVSDVV
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 53 of 66
RQWR 3ODLQWLII¶V FRPSXWHU QHWZRUN 5XVVLD WKH *58 DQG *58 2SHUDWLYH DFTXLUHG DQG
GLVVHPLQDWHGFRQILGHQWLDODQGSHUVRQDOLQIRUPDWLRQWKDWLV3ODLQWLII¶VSURSHUW\'HIHQGDQWVZRXOG
KDYHEHHQXQDEOHWRGLVFORVHWKLVLQIRUPDWLRQEXWIRUWKHLOOHJDOWUHVSDVV5XVVLDWKH*58DQG
*582SHUDWLYHWKHUHIRUHGHSULYHG3ODLQWLIIRILWVSRVVHVVRU\LQWHUHVWLQPDLQWDLQLQJWKHSULYDF\
DQGFRQILGHQWLDOLW\RILWVSURSHUW\$VDUHVXOW3ODLQWLIIKDVVXIIHUHGGLPLQXWLRQLQWKHYDOXHRILWV
SURSHUW\DQGLVHQWLWOHGWRGDPDJHV
&2817;
75(63$6672&+$77(/69,5*,1,$&20021/$:
$*$,1675866,$7+(*58$1'*5823(5$7,9(
3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E\ UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV
&RPSODLQWDQGSDUDJUDSKVLQWKHFRXQWVEHORZDVWKRXJKVHWIRUWKIXOO\KHUHLQ
3ODLQWLIIWKH'1&RZQVDQGRSHUDWHVDSULYDWHFRPSXWHUQHWZRUNZLWKFRPSXWHUV
DQG VHUYHUV ORFDWHG LQ :DVKLQJWRQ '& DQG LQ 9LUJLQLD 7KLV QHWZRUN DQG WKH LQIRUPDWLRQ
FRQWDLQHGWKHUHLQFRQVWLWXWHVWKHSURSHUW\RI3ODLQWLII
2Q RU DERXW -XO\ 5XVVLDQ LQWHOOLJHQFH DJHQWV KDFNHG LQWR WKH '1&¶V
FRPSXWHUVDQGQHWZRUN2QRUDERXW$SULO5XVVLDWKH*58DQG*582SHUDWLYH
VHSDUDWHO\KDFNHGLQWRWKH'1&¶VFRPSXWHUVDQGQHWZRUN7KHVHFRQVWLWXWHGWZRVHSDUDWHDQG
LQGHSHQGHQW WUHVSDVVHV LQ WKH 8QLWHG 6WDWHV 7KH KDFNV SURYLGHG 5XVVLD WKH *58 DQG *58
2SHUDWLYHZLWKXQDXWKRUL]HGDFFHVVWR3ODLQWLII¶VSURSHUW\LQLWVQHWZRUN$WQRSRLQWKDVDQ\RQH
ZLWKDXWKRULW\WRGRVRSURYLGHG'HIHQGDQWVZLWKDXWKRUL]DWLRQWRDFFHVV3ODLQWLII¶VQHWZRUNV
5XVVLD WKH *58 DQG *58 2SHUDWLYH ¶V KDFNV LQWHUIHUHG ZLWK 3ODLQWLII¶V
SRVVHVVRU\LQWHUHVWVLQLWVQHWZRUNDQGWKHLQIRUPDWLRQFRQWDLQHGWKHUHLQ%\PHDQVRIWUHVSDVV
RQWR 3ODLQWLII¶V QHWZRUN 5XVVLD WKH *58 DQG *58 2SHUDWLYH DFTXLUHG DQG GLVVHPLQDWHG
FRQILGHQWLDO DQG SHUVRQDO LQIRUPDWLRQ WKDW LV 3ODLQWLII¶V SURSHUW\ 'HIHQGDQWV ZRXOG KDYH EHHQ
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 54 of 66
XQDEOH WR GLVFORVH WKLV LQIRUPDWLRQ EXW IRU WKH LOOHJDO WUHVSDVV 5XVVLD WKH *58 DQG *58
2SHUDWLYHWKHUHIRUHGHSULYHG3ODLQWLIIRILWVSRVVHVVRU\LQWHUHVWLQPDLQWDLQLQJWKHSULYDF\DQG
FRQILGHQWLDOLW\ RI LWV SURSHUW\ $V D UHVXOW 3ODLQWLII KDV VXIIHUHG GLPLQXWLRQ LQ WKH YDOXH RI LWV
SURSHUW\DQGLVHQWLWOHGWRGDPDJHV
&2817;,
&2163,5$&<72&200,775(63$6672&+$77(/6
9,5*,1,$&20021/$:
$*$,167$//'()(1'$176
3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E\ UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV
&RPSODLQWDQGSDUDJUDSKVLQWKHFRXQWVEHORZDVWKRXJKVHWIRUWKIXOO\KHUHLQ
'HIHQGDQWVZHUHSDUWRIDFRPPRQVFKHPHLQZKLFKWKH\FRQVSLUHGDQGFRPELQHG
WR DFFHVV ZLWKRXW DXWKRUL]DWLRQ WKH '1&¶V FRPSXWHU V\VWHPV WR VWHDO FRQILGHQWLDO LQIRUPDWLRQ
SXEOLFO\GLVVHPLQDWHWKHVWROHQLQIRUPDWLRQDQGXVHWKDWVWROHQDQGSXEOLFO\GLVFORVHGLQIRUPDWLRQ
IRUWKHFRPPRQSXUSRVHRIGHQLJUDWLQJ6HFUHWDU\&OLQWRQDQGWKH'HPRFUDWLF3DUW\DQGEROVWHULQJ
7UXPS¶V HOHFWRUDO SURVSHFWV 7KHVH DFWLRQV FRQVWLWXWHG DQ H[HUFLVH RI ZURQJIXO GRPLQLRQ RYHU
3ODLQWLII¶VFRPSXWHUVDQGFRPSXWHUV\VWHPDQGSULYDWHHPDLODFFRXQWV
3XUVXDQWWRDQGLQIXUWKHUDQFHRIWKLVFRPPRQVFKHPH'HIHQGDQWVFRQVSLUHGWR
FRPPLWWKHXQODZIXODFWVGHVFULEHGKHUHLQLQFOXGLQJDFWVWKDWFRQVWLWXWHWUHVSDVV
3XUVXDQWWRDQGLQIXUWKHUDQFHRIWKLVFRPPRQVFKHPHHDFK'HIHQGDQWFRPPLWWHG
RYHUWDFWVLQFOXGLQJDUUDQJLQJPHHWLQJVEHWZHHQWKHFRFRQVSLUDWRUVHQFRXUDJLQJDQGSODQQLQJ
IRUWKHVFKHPHWRRFFXUKDFNLQJLQWRWKH'1&¶VQHWZRUNVWHDOLQJWKH'1&¶VSULYDWHFRQILGHQWLDO
LQIRUPDWLRQDQGUHOHDVLQJWKDWLQIRUPDWLRQZLWKRXWSHUPLVVLRQWRWKHSXEOLF7KHVHRYHUWDFWV
FDXVHG3ODLQWLIILQMXU\DQGGDPDJHVDVGLVFXVVHGVXSUD
$OORIWKHQDPHG'HIHQGDQWVDLGHGDQGDEHWWHGLQWKHXQODZIXODFWVGHVFULEHGKHUHLQ
DV SDUW RI DQG IXUWKHUDQFH RI D FRPPRQ VFKHPH DQG HDFKRI WKHVH 'HIHQGDQWV NQRZLQJO\ DQG
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 55 of 66
VXEVWDQWLDOO\DVVLVWHGWKHFRPPRQVFKHPHDQGZDVJHQHUDOO\DZDUHRIKLVUROHDVSDUWRIDQRYHUDOO
FRPPRQVFKHPH$FFRUGLQJO\WKHDFWLRQVRI'HIHQGDQWVFRQVWLWXWHFRQVSLUDF\WRWUHVSDVV
$V D UHVXOW 3ODLQWLII KDV VXIIHUHG GLPLQXWLRQ LQ WKH YDOXH RI LWV SURSHUW\ DQG LV
HQWLWOHGWRGDPDJHV
&2817;,,
9,2/$7,212)7+(9,5*,1,$&20387(5&5,0(6$&7
9$&2'($11(76(4
$*$,167$//'()(1'$176
3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E\ UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV
&RPSODLQWDQGSDUDJUDSKVLQWKHFRXQWVEHORZDVWKRXJKVHWIRUWKIXOO\KHUHLQ
5XVVLDWKH*58DQG*582SHUDWLYHXVHG3ODLQWLII¶VFRPSXWHUVDQGFRPSXWHU
QHWZRUNV ZLWKRXW DXWKRULW\ REWDLQHG SURSHUW\ E\ IDOVH SUHWHQVHV DQG FRQYHUWHG 3ODLQWLII¶V
SURSHUW\LQYLRODWLRQRI9D&RGH$QQ
5XVVLDWKH*58DQG*582SHUDWLYHZLWKPDOLFLRXVLQWHQW
FRPSXWHUGDWDFRPSXWHUSURJUDPVRUFRPSXWHUVRIWZDUHIURPWKH'1&¶V
FRPSXWHU RU FRPSXWHU QHWZRUN LQ YLRODWLRQ RI 9D &RGH $QQ
E FDXVHGWKH'1&¶VFRPSXWHUVWRPDOIXQFWLRQLQYLRODWLRQRI9D&RGH$QQ
F DOWHUHGGLVDEOHGRUHUDVHGFRPSXWHUGDWDFRPSXWHUSURJUDPVRUFRPSXWHU
VRIWZDUHLQYLRODWLRQRI9D&RGH$QQ
G XVHG D FRPSXWHU RU FRPSXWHU QHWZRUN WR PDNH RU FDXVH WR EH PDGH DQ
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 56 of 66
VRIWZDUH UHVLGLQJ LQ FRPPXQLFDWHG E\ RU SURGXFHG E\ D FRPSXWHU RU
FRPSXWHUQHWZRUNLQYLRODWLRQRI9D&RGH$QQ
H LQVWDOOHG RU FDXVHG WR EH LQVWDOOHG RU FROOHFWHG LQIRUPDWLRQ WKURXJK D
NH\VWURNHORJJHURQWKH'1&¶VFRPSXWHUVDQGZLWKRXWWKHLUDXWKRUL]DWLRQ
LQYLRODWLRQRI9D&RGH$QQ
'HIHQGDQWV5XVVLDWKH*58DQG*582SHUDWLYHXVHGDFRPSXWHURUFRPSXWHU
QHWZRUNDQGLQWHQWLRQDOO\H[DPLQHGZLWKRXWDXWKRULW\HPSOR\PHQWFUHGLWILQDQFLDORULGHQWLI\LQJ
LQIRUPDWLRQUHODWLQJWRRWKHUSHUVRQVLQYLRODWLRQRILQ9D&RGH$QQ
FRQWULEXWHGWRDQGDVVLVWHG5XVVLDWKH*58DQG*582SHUDWLYH¶VYLRODWLRQRI9D&RGH$QQ
DQG
$OO'HIHQGDQWV¶YLRODWLRQVRIWKHIRUHJRLQJSURYLVLRQVFDXVHG3ODLQWLIILQMXU\7KLV
LQMXU\LQFOXGHVEXWLVQRWOLPLWHGWRLQMXU\UHVXOWLQJIURPKDUPWR'1&FRPSXWHUVDQGVHUYHUV
ORVVLQWKHYDOXHRI'1&WUDGHVHFUHWVDQGEXVLQHVVLQIRUPDWLRQDQGKDUPWREXVLQHVVDVGHVFULEHG
DERYH3ODLQWLIILVHQWLWOHGWRUHFRYHUGDPDJHVDQGWKHFRVWVRIVXLWXQGHU9D&RGH$QQ
35$<(5)255(/,()
:+(5()25(3ODLQWLIIGHPDQGVMXGJPHQWDJDLQVW'HIHQGDQWVRQDOO&RXQWVDQGVHHNV
VXFKUHOLHIDVVSHFLILHGEHORZIRUDOO&RXQWVIRUZKLFKVXFKUHOLHILVSURYLGHGE\ODZ
D $ZDUGLQJ3ODLQWLIIGDPDJHVLQDQDPRXQWWREHGHWHUPLQHGLQFOXGLQJEXWQRWOLPLWHGWR
DOOGDPDJHVDQGORVVHVVXIIHUHGE\3ODLQWLIIDVDUHVXOWRIWKHLOOHJDOKDFNLQJWKHIWDQG
VXEVHTXHQWUHOHDVHRI3ODLQWLII¶VFRQILGHQWLDOGRFXPHQWVDQGRU3ODLQWLII¶VUHVSRQVHWRDQG
UHPHGLDWLRQUHODWHGWKHUHWR
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 57 of 66
E $ZDUGLQJ3ODLQWLIIFRPSHQVDWRU\DQGWUHEOHGDPDJHVDVDYDLODEOHLQDQDPRXQWWREH
SURYHQDWWULDO
F $ZDUGLQJ3ODLQWLIIWKHILQDQFLDOJDLQHDUQHGE\'HIHQGDQWVDVDFRQVHTXHQFHRIWKH
YLRODWLRQVGHVFULEHGKHUHLQ
G $ZDUGLQJ3ODLQWLIIVWDWXWRU\GDPDJHVDVDYDLODEOH
H $ZDUGLQJ3ODLQWLIISXQLWLYHGDPDJHVDVDYDLODEOH
I ,VVXLQJDGHFODUDWLRQWKDW'HIHQGDQWVDFFRUGLQJWRSURRIFRQVSLUHGWRDQGGLGHQJDJHLQ
DFRPPRQVFKHPHWRHIIHFWWKHLOOHJDODQGXQDXWKRUL]HGKDFNLQJRI3ODLQWLII¶VFRPSXWHU
V\VWHPVDQGRUSHUVRQDOHPDLOVDQGWKHH[ILOWUDWLRQRIFRQILGHQWLDOLQIRUPDWLRQ
GLVVHPLQDWHGWKDWVWROHQLQIRUPDWLRQWRWKHSXEOLFDQGXVHGWKDWGLVFORVHGVWROHQ
LQIRUPDWLRQWRLPSDFWWKHHOHFWLRQIRUWKHLURZQJDLQ
J ,VVXLQJDQLQMXQFWLRQUHVWUDLQLQJ'HIHQGDQWVDQGWKHLURIILFHUVDJHQWVVHUYDQWV
HPSOR\HHVDVVLJQVDQGWKRVHDFWLQJLQDFWLYHFRQFHUWRUSDUWLFLSDWLRQZLWKWKHPIURP
D $FFHVVLQJ3ODLQWLII¶VFRPSXWHUQHWZRUNVDQGRUSHUVRQDOHPDLOVZLWKRXW
3ODLQWLII¶VDXWKRUL]DWLRQV
E (QJDJLQJLQDQ\DFWLYLW\WKDWGLVUXSWVGLPLQLVKHVWKHTXDOLW\RILQWHUIHUHVZLWK
WKHSHUIRUPDQFHRIRULPSDLUVWKHIXQFWLRQDOLW\RI3ODLQWLII¶VFRPSXWHUQHWZRUNV
RUSHUVRQDOHPDLOVDQG
F 6HOOLQJSXEOLVKLQJGLVWULEXWLQJRUXVLQJDQ\SURSHUW\RULQIRUPDWLRQREWDLQHG
IURP3ODLQWLII¶VFRPSXWHUQHWZRUNVRUSHUVRQDOHPDLOVZLWKRXW3ODLQWLII¶V
DXWKRUL]DWLRQ
G 5HPRYLQJH[WUDFWLQJRUFRS\LQJDQ\LQIRUPDWLRQRUGDWDIURP3ODLQWLII¶V
FRPSXWHUVRUSHUVRQDOHPDLOVZLWKRXW3ODLQWLII¶VDXWKRUL]DWLRQ
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 58 of 66
K $ZDUGLQJ3ODLQWLIIDOOFRVWVDQGDWWRUQH\V¶IHHVWRWKHIXOOH[WHQWSHUPLWWHGXQGHUWKH
DSSOLFDEOHODZ
L $ZDUGLQJ3ODLQWLIISUHDQGSRVWMXGJPHQWLQWHUHVWDVSHUPLWWHGE\ODZ
M $ZDUGLQJDQ\RWKHUUHOLHIDVWKH&RXUWPD\GHHPMXVWDQGSURSHU
-85<'(0$1'
3XUVXDQWWR5XOHRIWKH)HGHUDO5XOHVRI&LYLO3URFHGXUH3ODLQWLIIGHPDQGVWULDOE\
MXU\LQWKLVDFWLRQRIDOOLVVXHVVRWULDEOH
$SULO 5HVSHFWIXOO\VXEPLWWHG
1HZ<RUN1<
V0LFKDHO(LVHQNUDIW
0LFKDHO(LVHQNUDIW -RVHSK06HOOHUV
&RKHQ0LOVWHLQ6HOOHUV 7ROO3//& *HRIIUH\$*UDEHU
3LQH6WWK)ORRU -XOLD$+RUZLW]
1HZ<RUN1< $OLVRQ6'HLFK
&RKHQ0LOVWHLQ6HOOHUV 7ROO3//&
1HZ<RUN$YH1:Ɣ)LIWK)ORRU
PHLVHQNUDIW#FRKHQPLOVWHLQFRP :DVKLQJWRQ'&
MVHOOHUV#FRKHQPLOVWHLQFRP
JJUDEHU#FRKHQPLOVWHLQFRP
MKRUZLW]#FRKHQPLOVWHLQFRP
DGHLFK#FRKHQPLOVWHLQFRP
$WWRUQH\VIRU3ODLQWLII
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 59 of 66
&(57,),&$7(2)6(59,&(
,KHUHE\FHUWLI\WKDWRQ$SULO,HOHFWURQLFDOO\ILOHGWKH&RPSODLQWZLWKWKH&OHUN
RIWKH&RXUWXVLQJWKH(&)ZKRLQWXUQVHQWQRWLFHWRDOOFRXQVHORIUHFRUG
'DWHG$SULO V0LFKDHO(LVHQNUDIW
0LFKDHO(LVHQNUDIW
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 60 of 66
(1'127(6
6WHYH*ROGVWHLQ7UXPS0D\%XLOG+RWHOVLQ86653KLOO\FRP3KLODGHOSKLD0HGLD1HWZRUN
3%&-XO\KWWSVDUWLFOHVSKLOO\FRPQHZV WUXPSWRZHU
VHFRQGODUJHVWVRYLHWFLW\VRYLHWRIILFLDOV
$VVRFLDWHG3UHVV5XVVLDQ5HDO(VWDWH'HDOV1HYHU0DWHULDOL]HGIRU7UXPS)RUWXQH0DUFK
KWWSIRUWXQHFRPWUXPSUXVVLDQUHDOHVWDWH
5LFKDUG%HKDU'RQDOG7UXPS$QG7KH)HORQ,QVLGH+LV%XVLQHVV'HDOLQJV:LWK$0RE
&RQQHFWHG+XVWOHU)RUEHV%XVLQHVV2FW$0
KWWSVZZZIRUEHVFRPVLWHVULFKDUGEHKDUGRQDOGWUXPSDQGWKHIHORQLQVLGHKLV
EXVLQHVVGHDOLQJVZLWKDPREFRQQHFWHGKXVWOHUEGE
0RVFRZGHSXW\PD\RUVD\VVN\VFUDSHUVWREHEXLOWLQ0RVFRZ3ULPH7DVV%XVLQHVV
1HZVZLUH0DU
$P\'HPSVH\7UXPSYV7UXPS,QVLGH7RURQWR
VVWDUWRZHUVWUXJJOH7RURQWR6WDU$SULO
KWWSVZZZWKHVWDUFRPQHZVJWDWUXPSYVWUXPSLQVLGHWRURQWRVVWDU
WRZHUVWUXJJOHKWPO
9HUQRQ6LOYHU (YJHQLD3LVPHQQD\D7UXPS¶V7ZR1LJKWVRI3DUWLHVLQ0RVFRZ(FKR<HDUV
/DWHU%ORRPEHUJ-XO\KWWSVZZZEORRPEHUJFRPQHZVDUWLFOHVWUXPS
VWZRQLJKWVRISDUWLHVLQPRVFRZUHYHUEHUDWH\HDUVODWHU
7RP+DPEXUJHUHWDO,QVLGH7UXPS¶VILQDQFLDOWLHVWR5XVVLDDQGKLVXQXVXDOIODWWHU\RI
9ODGLPLU3XWLQ:DVK3RVW-XQKWWSVZZZZDVKLQJWRQSRVWFRPSROLWLFVLQVLGH
WUXPSVILQDQFLDOWLHVWRUXVVLDDQGKLVXQXVXDOIODWWHU\RIYODGLPLUSXWLQGEGFDDF
DHIIEFED VWRU\KWPO"QRUHGLUHFW RQ XWP WHUP GFGGE
0LFKDHO&URZOH\:KHQ'RQDOG7UXPSEURXJKW0LVV8QLYHUVHWR0RVFRZ3ROLWLFR0D\
$0KWWSVZZZSROLWLFRFRPVWRU\GRQDOGWUXPSUXVVLDPRVFRZPLVV
XQLYHUVH
&DURO'/HRQQLJHWDO7UXPS¶VEXVLQHVVVRXJKWGHDORQD7UXPS7RZHULQ0RVFRZZKLOHKH
UDQIRUSUHVLGHQW:DVK3RVW$XJKWWSVZZZZDVKLQJWRQSRVWFRPSROLWLFVWUXPSV
EXVLQHVVVRXJKWGHDORQDWUXPSWRZHULQPRVFRZZKLOHKHUDQIRU
SUHVLGHQWGHEHGDEHEEDDBVWRU\KWPO
1DWKDQ/D\QHHWDO5XVVLDQHOLWHLQYHVWHGQHDUO\PLOOLRQLQ7UXPSEXLOGLQJV5HXWHUV
0DUKWWSVZZZUHXWHUVFRPLQYHVWLJDWHVVSHFLDOUHSRUWXVDWUXPSSURSHUW\
'DYLG,JQDWLXV$KLVWRU\RI'RQDOG7UXPS¶VEXVLQHVVGHDOLQJVLQ5XVVLD7KH:DVKLQJWRQ
3RVW1RYKWWSVZZZZDVKLQJWRQSRVWFRPRSLQLRQVDKLVWRU\RIGRQDOGWUXPSV
EXVLQHVVGHDOLQJVLQUXVVLDIEHHGEDHHEH
IDEEIHIIEBVWRU\KWPO"XWPBWHUP HIIIH
&DLWOLQ<LOHN$XWKRUFODLPV(ULF7UXPSWROGKLPDOOIXQGLQJIRU7UXPSJROIFRXUVHVFRPHV
IURP5XVVLDLQ:DVKLQJWRQ([DPLQHU0D\
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 61 of 66
KWWSVZZZZDVKLQJWRQH[DPLQHUFRPDXWKRUFODLPVHULFWUXPSWROGKLPDOOIXQGLQJIRUWUXPS
JROIFRXUVHVFRPHVIURPUXVVLDLQ
$QGUHZ(.UDPHUHWDO6HFUHW/HGJHULQ8NUDLQH/LVWV&DVKIRU'RQDOG7UXPS¶V&DPSDLJQ
&KLHI1<7LPHV$XJKWWSVZZZQ\WLPHVFRPXVSROLWLFVSDXO
PDQDIRUWXNUDLQHGRQDOGWUXPSKWPO
0DQDIRUWKHOSHGIXQQHOPRQH\WR86OREE\LVWVIURPSUR3XWLQ8NUDLQLDQSDUW\UHSRUWFODLPV
)R[1HZV$XJKWWSZZZIR[QHZVFRPSROLWLFVPDQDIRUWKHOSHG
IXQQHOPRQH\WRXVOREE\LVWVIURPSURSXWLQXNUDLQLDQSDUW\UHSRUWFODLPVKWPO
0LFKDHO.UDQLVK 7RP+DPEXUJHU3DXO0DQDIRUW¶VµODYLVKOLIHVW\OH¶KLJKOLJKWHGLQ
LQGLFWPHQW:DVK3RVW2FWKWWSVZZZZDVKLQJWRQSRVWFRPSROLWLFVSDXO
PDQDIRUWVODYLVKOLIHVW\OHKLJKOLJKWHGLQLQGLFWPHQWEGIH
DGIEHEBVWRU\KWPO"XWPBWHUP EEGDGDH
7RP+DPEXUJHU 5RVDOLQG6+HOGHUPDQ)RUPHU7UXPSFDPSDLJQFKDLUPDQ3DXO
0DQDIRUWILOHVDVIRUHLJQDJHQWIRU8NUDLQHZRUN:DVK3RVW-XQH
KWWSVZZZZDVKLQJWRQSRVWFRPSROLWLFVIRUPHUWUXPSFDPSDLJQFKDLUPDQSDXOPDQDIRUW
ILOHVDVIRUHLJQDJHQWIRUXNUDLQHZRUNEDFEEHIF
FHIEFGBVWRU\KWPO"XWPBWHUP FF
%URRNH6LQJPDQ3DXO0DQDIRUW5LFN*DWHVLQGLFWHGE\IHGHUDOJUDQGMXU\LQ5XVVLDSUREH
)R[1HZV2FWKWWSZZZIR[QHZVFRPSROLWLFVUHSRUWSDXOPDQDIRUW
ULFNJDWHVWRVXUUHQGHUWRVSHFLDOFRXQVHOKWPO
6RQDP6KHWK0DQDIRUW¶VILQDQFLDOWURXEOHVUDLVHQHZTXHVWLRQVDERXWZK\KHRIIHUHGWRZRUN
DVDQXQSDLGYROXQWHHUWRWKH7UXPSFDPSDLJQ%XVLQHVV,QVLGHU)HE30
KWWSZZZEXVLQHVVLQVLGHUFRPSDXOPDQDIRUWXNUDLQHGHEWWUXPSFDPSDLJQXQSDLGYROXQWHHU
.HQQHWK39RJHO0DQDIRUW¶VPDQLQ.LHY3ROLWLFR$XJ30
KWWSVZZZSROLWLFRFRPVWRU\SDXOPDQDIRUWXNUDLQHNLHYUXVVLDNRQVWDQWLQNLOLPQLN
'DYLG9RUHDFRV0XHOOHU'UDZV/LQHWR5XVVLDQ6S\¶V:RUN:LWK0DQDIRUWDQG*DWHV
%ORRPEHUJ0DUKWWSVZZZEORRPEHUJFRPQHZVDUWLFOHVPXHOOHU
GUDZVOLQHWRUXVVLDQVS\VZRUNZLWKPDQDIRUWDQGJDWHV
6WDWHPHQWRIWKH2IIHQVH8QLWHG6WDWHVY*HRUJH3DSDGRSRXORV1RFU5'0
''&2FW
+RZDUG$PRV 3DWULFN6DZ\HU5XVVLDQSURWHVWV'HFHPEHUDVLWKDSSHQHG7KH
7HOHJUDSK'HF30
KWWSVZHEDUFKLYHRUJZHEKWWSZZZWHOHJUDSKFRXNQHZVZRUOGQHZVHXUR
SHUXVVLD5XVVLDQSURWHVWVOLYHKWPO
(YDQ2VQRVHWDO7UXPS3XWLQDQGWKH1HZ&ROG:DU1HZ<RUNHU0DU
KWWSVZZZQHZ\RUNHUFRPPDJD]LQHWUXPSSXWLQDQGWKHQHZFROGZDU
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 62 of 66
6WHYHQ3LIHU7UXPSDQG5XVVLD([SHFWDFKDQJHLQWRQH%XWLQVXEVWDQFH"%URRNLQJV-DQ
KWWSVZZZEURRNLQJVHGXEORJRUGHUIURPFKDRVWUXPSDQGUXVVLD
H[SHFWDFKDQJHLQWRQHEXWLQVXEVWDQFH
)UDQNOLQ)RHU3XWLQ¶V3XSSHW6ODWH-XO\30
KWWSZZZVODWHFRPDUWLFOHVQHZV DQG SROLWLFVFRYHU VWRU\YODGLPLU SXWLQ KDV D SOD
QBIRUBGHVWUR\LQJBWKHBZHVWBDQGBLWBORRNVBDBORWBOLNHKWPO
$QGUHZ.DF]\QVNLHWDOWLPHV7UXPSWDONHGDERXW3XWLQ&113ROLWLFV0DU
KWWSZZZFQQFRPLQWHUDFWLYHSROLWLFVWUXPSSXWLQUXVVLDWLPHOLQH
3UHVLGHQWLDO&DQGLGDWH'RQDOG7UXPS3ULPDU\1LJKW6SHHFK&63$1$SU
KWWSVZZZFVSDQRUJYLGHR"GRQDOGWUXPSSULPDU\QLJKW
VSHHFK VWDUW WUDQVFULSW4XHU\ SXWLQ
-RKQ6DQWXFFL7UXPS6D\Vµ*UHDW+RQRU¶WR*HW&RPSOLPHQWVIURPµ+LJKO\5HVSHFWHG¶3XWLQ
$%&1HZV'HF30KWWSDEFQHZVJRFRP3ROLWLFVWUXPSJUHDWKRQRU
FRPSOLPHQWVKLJKO\UHVSHFWHGSXWLQVWRU\"LG
0LFKDHO5*RUGRQ 1LUDM&KRNVKL7UXPS&ULWLFL]HV1$72DQG+RSHVIRUµ*RRG'HDOV¶
:LWK5XVVLD1<7LPHV-DQ
KWWSVZZZQ\WLPHVFRPZRUOGHXURSHGRQDOGWUXPSQDWRKWPO
$VKOH\3DUNHU'RQDOG7UXPSLQ6FRWODQG&DOOVµ%UH[LW¶5HVXOWµD*UHDW7KLQJ¶1<7LPHV
-XQHKWWSVZZZQ\WLPHVFRPXVSROLWLFVGRQDOGWUXPSVFRWODQGKWPO
$OH[DQGHU0DOOLQ7UXPS&ULPHD¶V3HRSOH3UHIHU5XVVLD%XW,I+H¶V(OHFWHG3XWLQ,Vµ1RW
*RLQJ,QWR8NUDLQH¶$%&1HZV-XO\30
KWWSDEFQHZVJRFRP7KLV:HHNWUXPSFULPHDVSHRSOHSUHIHUUXVVLDHOHFWHGSXWLQ
XNUDLQHVWRU\"LG
&KDUOLH6DYDJH$VVDQJH$YRZHG)RHRI&OLQWRQ7LPHG(PDLO5HOHDVHIRU'HPRFUDWLF
&RQYHQWLRQ1<7LPHV-XO\
KWWSVZZZQ\WLPHVFRPXVSROLWLFVDVVDQJHWLPHGZLNLOHDNVUHOHDVHRI
GHPRFUDWLFHPDLOVWRKDUPKLOODU\FOLQWRQKWPO
'LUHFWRURI1DWLRQDO,QWHOOLJHQFH$VVHVVLQJ5XVVLDQ$FWLYLWLHVDQG,QWHQWLRQVLQ
5HFHQW86(OHFWLRQVDYDLODEOHDWKWWSVZZZGQLJRYILOHVGRFXPHQWV,&$ SGI
,G
*ORULD%RUJHU 0DUVKDOO&RKHQ'RFXPHQWGHWDLOVVFUDSSHGGHDOIRU7UXPS7RZHU0RVFRZ
&113ROLWLFV6HSW$0KWWSVZZZFQQFRPSROLWLFVGRFXPHQW
WUXPSWRZHUPRVFRZLQGH[KWPO FG KO HQ FW FOQN JO XV
,G
,G
,G
([HF2UGHU)HG5HJ0DU
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 63 of 66
%ULDQ%HXWOHU'RQDOG7UXPSDQGWKH)UXLWRIWKH3RLVRQRXV7UHH7KH1HZ5HSXEOLF$XJ
KWWSVQHZUHSXEOLFFRPDUWLFOHGRQDOGWUXPSIUXLWSRLVRQRXVWUHH
3DPHOD%URZQHWDO7UXPSDLGHVZHUHLQFRQVWDQWWRXFKZLWKVHQLRU5XVVLDQRIILFLDOVGXULQJ
FDPSDLJQ&113ROLWLFV)HE30
KWWSVZZZFQQFRPSROLWLFVGRQDOGWUXPSDLGHVUXVVLDQVFDPSDLJQLQGH[KWPO
6KDURQ/D)UDQLHUHHWDO+RZWKH5XVVLD,QTXLU\%HJDQ$&DPSDLJQ$LGH'ULQNVDQG7DON
RI3ROLWLFDO'LUW1<7LPHV'HF
KWWSVZZZQ\WLPHVFRPXVSROLWLFVKRZIELUXVVLDLQYHVWLJDWLRQEHJDQJHRUJH
SDSDGRSRXORVKWPO
3KLOLS%XPS7LPHOLQH+RZD7UXPSDGYLVHUWULHGWRZRUNZLWKWKH5XVVLDQJRYHUQPHQW
:DVK3RVW2FW
KWWSVZZZZDVKLQJWRQSRVWFRPQHZVSROLWLFVZSWLPHOLQHKRZDWUXPSDGYLVHU
WULHGWRZRUNZLWKWKHUXVVLDQJRYHUQPHQW
6WDWHPHQWRIWKH2IIHQVHVXSUDQRWH
,G
,G
,G
,G
,G
,G
,G
,G
,G
6KDQH+DUULV)RUPHU7UXPS$GYLVHU¶V*XLOW\3OHD7LHV&DPSDLJQWR5XVVLDQ2IILFLDOV:DOO
6W-2FW30KWWSVZZZZVMFRPDUWLFOHVIRUPHUWUXPSIRUHLJQSROLF\
DGYLVHUWRSOHDGJXLOW\WRO\LQJWRIEL
'HSDUWPHQWRI+RPHODQG6HFXULW\DQGWKH)HGHUDO%XUHDXRI,QYHVWLJDWLRQ*5,==/<67(33(
± 5XVVLDQ0DOLFLRXV&\EHU$FWLYLW\'HFHPEHUDYDLODEOHDWKWWSVZZZXV
FHUWJRYVLWHVGHIDXOWILOHVSXEOLFDWLRQV-$5 $ *5,==/<67(33(
SGI
7KURXJKRXWWKLVVHFWLRQVHH'PLWUL$OSHURYLWFK%HDUVLQWKH0LGVW,QWUXVLRQLQWRWKH
'HPRFUDWLF1DWLRQDO&RPPLWWHH&URZG6WULNH-XQ
KWWSVZZZFURZGVWULNHFRPEORJEHDUVPLGVWLQWUXVLRQGHPRFUDWLFQDWLRQDOFRPPLWWHH
'LUHFWRURI1DWLRQDO,QWHOOLJHQFHVXSUDQRWH
7KURXJKRXWWKLVVHFWLRQVHH'PLWUL$OSHURYLWFK%HDUVLQWKH0LGVW,QWUXVLRQLQWRWKH
'HPRFUDWLF1DWLRQDO&RPPLWWHH&URZG6WULNH-XQ
KWWSVZZZFURZGVWULNHFRPEORJEHDUVPLGVWLQWUXVLRQGHPRFUDWLFQDWLRQDOFRPPLWWHH
3ULVFLOOD$OYDUH] (ODLQH*RGIUH\'RQDOG7UXPS-U¶V(PDLO([FKDQJH:LWK5RE*ROGVWRQH
7KH$WODQWLF-XO\KWWSVZZZWKHDWODQWLFFRPSROLWLFVDUFKLYHGRQDOG
WUXPSVMUVHPDLOH[FKDQJH
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 64 of 66
,G
,G
5\DQ7HDJXH%HFNZLWK5HDG'RQDOG7UXPS¶V6XEGXHG9LFWRU\6SHHFK$IWHU:LQQLQJ1HZ
-HUVH\7,0(-XQHKWWSWLPHFRPGRQDOGWUXPSQHZMHUVH\YLFWRU\VSHHFK
WUDQVFULSW
..5HEHFFD/DL $OLFLD3DUODSLDQR:KDW:H.QRZ$ERXW'RQDOG7UXPS-U¶V5XVVLD
0HHWLQJ1<7LPHV-XO\
KWWSVZZZQ\WLPHVFRPLQWHUDFWLYHXVSROLWLFVGRQDOGWUXPSMUUXVVLD
PHHWLQJKWPO
-DPHV5RJHUV5XVVLDQJRYHUQPHQWDIILOLDWHGKDFNHUVEUHDFK'1&WDNHUHVHDUFKRQ'RQDOG
7UXPS)R[1HZV-XQHKWWSZZZIR[QHZVFRPWHFKUXVVLDQ
JRYHUQPHQWDIILOLDWHGKDFNHUVEUHDFKGQFWDNHUHVHDUFKRQGRQDOGWUXPSKWPO
*XFFLIHU*XFFLIHU'1&¶V6HUYHUV+DFNHG%\$/RQH+DFNHU:RUGSUHVV-XQH
KWWSVJXFFLIHUZRUGSUHVVFRPGQF
,G
*XFFLIHU'RVVLHURQ+LOODU\&OLQWRQIURP'1&:RUGSUHVV-XQH
KWWSVJXFFLIHUZRUGSUHVVFRPKLOODU\FOLQWRQ
*XFFLIHU)$4IURP*XFFLIHU:RUGSUHVV-XQH
KWWSVJXFFLIHUZRUGSUHVVFRPIDT
*XFFLIHU7UXPSRFDO\SVHDQG2WKHU'1&3ODQVIRU-XO\:RUGSUHVV-XO\
KWWSVJXFFLIHUZRUGSUHVVFRPWUXPSRFDO\SVH
6WDWHPHQWE\)%,'LUHFWRU-DPHV%&RPH\RQWKH,QYHVWLJDWLRQRI6HFUHWDU\+LOODU\&OLQWRQ¶V
8VHRID3HUVRQDO(0DLO6\VWHP)%,-XO\KWWSVZZZIELJRYQHZVSUHVVUHOSUHVV
UHOHDVHVVWDWHPHQWE\IELGLUHFWRUMDPHVEFRPH\RQWKHLQYHVWLJDWLRQRIVHFUHWDU\KLOODU\
FOLQWRQVXVHRIDSHUVRQDOHPDLOV\VWHP
6HDUFKWKH'1&HPDLOGDWDEDVH:LNL/HDNV-XO\$0
KWWSVZLNLOHDNVRUJGQFHPDLOV
:KDW'RQDOG7UXPS6DLG$ERXW5XVVLDQ+DFNLQJDQG+LOODU\&OLQWRQ¶V(PDLOV1<7LPHV
-XO\KWWSVZZZQ\WLPHVFRPXVSROLWLFVWUXPSFRQIHUHQFH
KLJKOLJKWVKWPO
,G
,G
,G
,G
$QGUHZ.DF]\QVNLHWDO7UXPSDGYLVHU5RJHU6WRQHUHSHDWHGO\FODLPHGWRNQRZRI
IRUWKFRPLQJ:LNL/HDNVGXPSV&110DU
KWWSVZZZFQQFRPSROLWLFVNILOHURJHUVWRQHZLNLOHDNVFODLPVLQGH[KWPO
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 65 of 66
(ULF/LFKWEODX 1RDK:HLODQG+DFNHU5HOHDVHV0RUH'HPRFUDWLF3DUW\'RFXPHQWV1<
7LPHV$XJKWWSVZZZQ\WLPHVFRPXVSROLWLFVGHPRFUDWLFSDUW\
GRFXPHQWVKDFNKWPO
,G
0DWW'L[RQ 0DUF&DSXWR+DFNHG'&&&GRFVGLVKRQVWUDWHJ\DQGVFDQGDOIRU)ORULGD
FRQJUHVVLRQDOFDQGLGDWHV3ROLWLFR$XJ
KWWSVZZZSROLWLFRFRPVWDWHVIORULGDVWRU\GFFFKDFNXQHDUWKVGLUWRQSDUW\VRZQ
FDQGLGDWHV
,G
$QGUHZ%ODNH5RJHU6WRQH7UXPSFRQILGDQWDFNQRZOHGJHVµLQQRFXRXV¶7ZLWWHU
FRQYHUVDWLRQZLWK'1&KDFNHUV:DVKLQJWRQ7LPHV0DU
KWWSVZZZZDVKLQJWRQWLPHVFRPQHZVPDUURJHUVWRQHWUXPSFRQILGDQW
DFNQRZOHGJHVLQQRFXRXV
5\DQ*RRGPDQ+RZ5RJHU6WRQH,QWHUDFWHG:LWK5XVVLD¶V*XFFLIHUDQG:LNLOHDNV
1HZVZHHN6HSKWWSZZZQHZVZHHNFRPKRZVWRQHLQWHUDFWHGUXVVLDVJXFFLIHU
DQGZLNLOHDNV
,G
5RJHU6WRQH-RLQV+HUDOG'ULYH'LVFXVVLQJ(OHFWLRQ%RVWRQ+HUDOG5DGLR6HSW
KWWSVVRXQGFORXGFRPERVWRQKHUDOGURJHUVWRQHMRLQVKHUDOGGULYHGLVFXVVLQJ
HOHFWLRQ
-XOLD,RIIH7KH6HFUHW&RUUHVSRQGHQFH%HWZHHQ'RQDOG7UXPS-UDQG:LNL/HDNV7KH
$WODQWLF1RY30KWWSVZZZWKHDWODQWLFFRPSROLWLFVDUFKLYHWKH
VHFUHWFRUUHVSRQGHQFHEHWZHHQGRQDOGWUXPSMUDQGZLNLOHDNV
'RQDOG-7UXPS#UHDO'RQDOG7UXPS7ZLWWHU2FW$0
KWWSVWZLWWHUFRPUHDOGRQDOGWUXPSVWDWXV
.DF]\QVNLHWDOVXSUDQRWH
,G
7KH3RGHVWD(PDLOV:LNL/HDNV2FWKWWSVZLNLOHDNVRUJSRGHVWDHPDLOV
/HDNV:LNL/HDNVKWWSVZLNLOHDNVRUJ/HDNVKWPOODVWYLVLWHG$SU
'RQDOG-7UXPS#UHDO'RQDOG7UXPS7ZLWWHU-XO\30
KWWSVWZLWWHUFRPUHDOGRQDOGWUXPSVWDWXV
'RQDOG-7UXPS#UHDO'RQDOG7UXPS7ZLWWHU-XO\30
KWWSVWZLWWHUFRPUHDOGRQDOGWUXPSVWDWXV
'RQDOG-7UXPS#UHDO'RQDOG7UXPS7ZLWWHU-XO\$0
KWWSVWZLWWHUFRPUHDOGRQDOGWUXPSVWDWXV
'RQDOG-7UXPS#UHDO'RQDOG7UXPS7ZLWWHU2FW$0
KWWSVWZLWWHUFRPUHDOGRQDOGWUXPSVWDWXV
'RQDOG7UXPS-U#'RQDOG-7UXPS-U7ZLWWHU2FW$0
KWWSVWZLWWHUFRP'RQDOG-7UXPS-UVWDWXV
Case 1:18-cv-03501 Document 1 Filed 04/20/18 Page 66 of 66
,RIIHVXSUDQRWH
,G
&KXFN7RGGHWDO+RZ7UXPSWRRNDGYDQWDJHRI5XVVLDQLQWHUIHUHQFH$PSOLI\LQJ:LNLOHDNV
1%&1HZV)HE$0KWWSVZZZQEFQHZVFRPSROLWLFVILUVWUHDGKRZWUXPS
WRRNDGYDQWDJHUXVVLDQLQWHUIHUHQFHDPSOLI\LQJZLNLOHDNVQ
,G
,G
,G
,G
:LNL/HDNV#ZLNLOHDNV7ZLWWHU1RY30
KWWSVWZLWWHUFRPZLNLOHDNVVWDWXV"ODQJ HQ
,G
3HWHU:DONHU'RQDOG7UXPSZLQV5XVVLDQSDUOLDPHQWEXUVWVLQWRDSSODXVHXSRQKHDULQJ
UHVXOW7KH,QGHSHQGHQW1RYKWWSVZZZLQGHSHQGHQWFRXNQHZVZRUOGDPHULFDVXV
HOHFWLRQVGRQDOGWUXPSZLQVXVHOHFWLRQUXVVLDSXWLQUHVXOWDKWPO
,G