´:H HVWDEOLVKHG RXU ULJKWV QRW OHJDOO\ EXW SUDFWLFDOO\µ 0U 5R\FKRZGU\ GHFODUHG ZKLOH UHPLQLVFLQJ RYHU WKH GD\V RI VWUXJJOH DQG LQVHFXULW\ WKDW SUHOXGHG KLV SHUPDQHQW VHWWOHPHQW LQ .RONDWD /LNH VR PDQ\
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¶&KLWWDUDQMDQ &RORQ\· RQH RI WKH QXPHURXV UHIXJHH ¶FRORQLHV· WKDW PXVKURRPHG RQ WKH RXWVNLUWV RI .RONDWD VHH %RVH &KDWWHUMHH .XGDLV\D 6DQ\DO 2YHU WKH FRXUVHRIKLVOLIH0U5R\FKRZGU\ZLWQHVVHGWKHQHLJKERUKRRGFKDQJHIURP
´KXWDQGPXGWRKLJKULVHµ7RGD\KHOLYHVLQRQHRIWKHPDQ\IODWVWKDWDUH UDSLGO\DOWHULQJWKHODQGVFDSHRIWKHFRORQ\\HWKHVWLOOUHFDOOVWKHILUVWKRXVHV WKDWVSURXWHGLQWKHORFDOLW\PXGKRXVHVDQGEDPERRKXWVWKDWZHUHEXLOWLQ WKHPLGVWRI.RONDWD·VVZDPSODQGVDQGGUDLQDJHFDQDOVDQGSRRUO\HTXLSSHG WRSURWHFWWKHLULQKDELWDQWVIURPZDWHUZHDWKHUDQGDQLPDOV
7KH SOLJKW RI (DVW%HQJDOL UHIXJHHV KRZHYHU ZDV QRW RQO\
FKDUDFWHUL]HGE\WKHDERPLQDEOHFRQGLWLRQVRIWKHVHHUVWZKLOHKRXVHVDQGE\
WKHLQKRVSLWDEOHQDWXUHRIWKHODQG²EXWDOVRE\WKHLUSUHFDULRXVOHJDOSRVLWLRQ ZLWKLQ WKH FLW\ IRU WKH ODQG WKDW WKH\ FDPH WR LQKDELW ZDV ODUJHO\ DFTXLUHG
3K'&DQGLGDWHDW8QLYHUVLW\RI$EHUGHHQ 5HIXJHH:DWFK -XQH 'HFHPEHU
LOOHJDOO\ WKURXJKVTXDWWLQJRU ¶MDEDUGDNKDO· ,W ZDV RQO\DIWHU QHDUO\ \HDUV RI VWUXJJOH DQG SURWHVW WKDW WKH UHIXJHHV ZHUH JUDGXDOO\ JUDQWHG IRUPDO ODQG WLWOHVDQGVORZO\PDQDJHGWRVKDNHRIWKHFRQGLWLRQRIWHQXUHLQVHFXULW\,WLV WKLV VWUXJJOH IRU ODQG ULJKWV WKDW 0U 5R\FKRZGU\ LV UHIHUULQJ WR ZKHQ REVHUYLQJ WKDW ULJKWV ZHUH HVWDEOLVKHG ¶SUDFWLFDOO\· UDWKHU WKDQ ¶OHJDOO\· +LV REVHUYDWLRQLVDUHPDUNDEOHRQHDVLWVHHPVWRLPSO\DFRQWUDGLFWLRQLQWHUPV IRU ULJKWV DUH SHU GHILQLWLRQ LQVWLWXWLRQDOL]HG E\ UXOH RI ODZ 7KH TXHVWLRQ WKHUHIRUHDULVHVRQZKDWEDVLVODQGULJKWVZHUHJUDQWHGLIWKHUHIXJHHVFRXOG QRW OHJDOO\ VXSSRUW WKHLU FDXVH" ,Q RWKHU ZRUGV LV LW SRVVLEOH WR DVVHUW RQH·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
¶ODQG·DVP\WKHPDWLFSRLQWRIGHSDUWXUH,VWULYHWRXQGHUVFRUHWKHLPSRUWDQFH RISK\VLFDOSODFHLQPDNLQJVHQVHRIPLJUDWRU\H[SHULHQFHV
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´HYHU\ WLQ\ SLHFH RI YDFDQW ODQG WKH\ FRXOG ILQG ZKHWKHU RQ SDYHPHQWVRUWKH¶VHWDVLGHV·DORQJWKHUXQZD\VRIDLUILHOGVLQHPSW\KRXVHV RQVQDNHLQIHVWHGPDUVKDQGVFUXEODQGDQGHYHQRQWKHXQVDQLWDU\YHUJHVRI VHZHUVDQGUDLOZD\WUDFNVµ6DQ\DOPRUHRYHUKDVULJKWO\SRLQWHGRXWWKDWWKH
%HQJDOLZRUGIRUUHIXJHHXGEDVWXOLWHUDOO\PHDQV¶WKRVHZLWKRXWDKRPH·DQG WKHUHIRUH GLUHFWO\ UHIHUV WR D QRWLRQ RI SODFH 7KLV LQ FRQWUDVW WR WKH *UHHN WHUP¶DV\OXP·ZKLFKUHIHUVWRWKHDEVHQFHRIULJKWVUDWKHUWKDQWRWKHORVVRI SODFH 2Q WKH RWKHU KDQG LW FDQ EH DUJXHG WKDW WKH SDWK WR FLWL]HQVKLS WKH SDWKRIRYHUFRPLQJRQH·VUHIXJHHVWDWXVLVMXVWDVPXFKDQDFWRIDFTXLULQJD KRPHDVLWLVRIJDLQLQJFHUWDLQULJKWV
7KH FDVH RI .RONDWD·V UHIXJHHV WKHUHIRUH IRUPV DQ DSW SRLQW RI GHSDUWXUHIRUFKDOOHQJLQJWKHFRPPRQQRWLRQWKDWFLWL]HQVKLSLVDPHUHOHJDO VWDWXVWKDWLVHTXDWHGZLWKDEXQGOHRIULJKWVDQGGXWLHV$FFRUGLQJWR6DGLT WKLV SRSXODU FRQFHSWLRQ LV XQGHUSLQQHG E\ WKH ZURQJIXO DVVXPSWLRQ ´WKDW UHFHLYLQJVWDWHVKDYHDSRSXODWLRQWKDWLVGRFXPHQWHGXVLQJVWDQGDUGL]HGSDSHUZRUNµ DQGEDVHGVROHO\RQWKHLQVWLWXWLRQDOH[SHULHQFHRI:HVWHUQVWDWHV7KDW,QGLD·V LQVWLWXWLRQDO H[SHULHQFH ZLWK PLJUDWLRQ LV DQ HQWLUHO\ GLIIHUHQW RQH EHFRPHV FOHDUIURPWKHIDFWWKDWRYHUWLPH(DVW%HQJDOLPLJUDQWVKDYHEHHQFDWHJRUL]HG
LQDYDULHW\RIFRQWUDVWLQJDQGRYHUODSSLQJZD\V6LQFH WKHJRYHUQPHQWZDV QRW D VLJQDWRU\ RI WKH &RQYHQWLRQ RI *HQHYD LWV XVH RI WKH WHUP
¶UHIXJHH·KDVEHHQFDVXDODQG´IUHHIURPWKHOHJDOQLFHWLHVDQGREOLJDWLRQVWKDW DUH DVVRFLDWHG ZLWK LWµ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
7KLV DUWLFOH LV EDVHG RQ WKUHH PRQWKV RI HWKQRJUDSKLF ILHOGZRUN FRQGXFWHG ZLWKLQ WZR UHIXJHH VHWWOHPHQWV LQ .RONDWD &KLWWDUDQMDQ &RORQ\
DQG 3DQFKDQQDJUDP %RWK ORFDOLWLHV FRYHU D YDULHW\ RI (DVW%HQJDOL LQKDELWDQWV ²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
IRFXVLQJ RQ SHRSOH·V GLYHUJLQJ DQG FRQWLQXHG LQWHUDFWLRQV ZLWK WKH ODQGWKDW WKH\FDPHWRLQKDELW
7KHRUHWLFDO)UDPHZRUN5HIXJHHV6WDWH&LWL]HQVKLS
7KH KLVWRULF HYHQW RI 3DUWLWLRQ ZDV DLPHG DW FUHDWLQJ WZR VHSDUDWH QDWLRQV WZR VHSDUDWH WHUULWRULHV DQG WZR VHSDUDWH SRSXODWLRQV DQG DV VXFK PLUURUV WKH VSDWLDO PHFKDQLVPV RI ERUGHULQJ RUGHULQJ DQG RWKHULQJ WKDW XQGHUVFRUHSURMHFWVRIQDWLRQEXLOGLQJ&KDWWHUMLKDVSRLQWHGRXWWKDWLQWKH FDVH RI ,QGLD WKH WHUULWRULDO HPHUJHQFH RI WKH FRXQWU\ KDV EHHQ W\SLFDOO\
GHSLFWHGDVWKHDOPRVWVXUJLFDO´FXWWLQJXSµRIODUJHU%ULWLVK,QGLD,QIDFWVKH KDVFULWLFL]HGWKHGLVFXUVLYHWHQGHQF\WR´YLHZSDUWLWLRQDVDVLQJOHGHILQLWLYH DFW D FOHDQFXW YLYLVHFWLRQ WKDW ZDV H[HFXWHG ² ZLWK FOLQLFDO SUHFLVLRQ ² LQ D VLQJOHVWURNHµ&KDWWHUMLKHUVHOIRQWKHFRQWUDU\FRQFHLYHVRI3DUWLWLRQDVD PHVV\ORQJGUDZQRXWSURFHVVWKDWZDVLQQRVHQVHILQDOO\RUWLGLO\FRQFOXGHG 7KLV XQILQLVKHG PHVV\ TXDOLW\ RI SDUWLWLRQ FRPHV WR WKH IRUH ZKHQ GHDOLQJ ZLWKWKHPDVVLYHSRSXODWLRQXSKHDYDOWKDWZDVLQVWLJDWHGE\WKHHYHQWDQGWKDW FDQ EH XQGHUVWRRG DV WKH RXWFRPH RI WKH WHUULWRULDO DUWLFXODWLRQ RI GHHSIHOW GLIIHUHQFHVEHWZHHQ0XVOLPVDQG+LQGXV
7KH GHPRJUDSKLF LPSDFW RI 3DUWLWLRQ ZDV IHOW PRVW VWURQJO\ LQ WKH WZR ERUGHU VWDWHV WKDW ZHUH GLYLGHG 3XQMDE DQG %HQJDO ,Q 3XQMDE WKH GUDZLQJ RI WKH VRFDOOHG 5DGFOLII OLQH UHVXOWHG LQ JHQRFLGDO RXWEUHDNV RI YLROHQFHIROORZHGE\DQLPPHGLDWHDQGPDVVLYHLQIOX[H[RGXVRIUHIXJHHVRQ ERWKVLGHVRIWKHERUGHU,QWKHSURYLQFHRI:HVW%HQJDORQWKHFRQWUDU\
WKH LQIOX[ RI UHIXJHHV ZDV JUDGXDO DQG PRUH RIWHQ WKH UHVXOW RI VLPPHULQJ KRVWLOLW\ DQG GLVWLQFW LQVWDQFHV RI FRPPXQDO ULRWV UDWKHU WKDQ RI ZLGHVSUHDG JHQRFLGH ,Q IDFW IRU D ORQJ WLPH WKH JRYHUQPHQW RI :HVW%HQJDO ZDV UHOXFWDQW WR DFNQRZOHGJH WKH UHDOLW\ RI WKH XSKHDYDO LQ %HQJDO DQG (DVW
%HQJDOLUHIXJHHVZHUHW\SLFDOO\IUDPHGDVOHVV¶GHVHUYLQJ·RIDSHUPDQHQWSODFH WR VWD\ WKDQ WKHUH 3XQMDEL FRXQWHUSDUWV 6DPLU .XPDU 'DV PRUHRYHU REVHUYHV WKDW ´WKHUH ZDV D WLPH ODJ EHWZHHQ SUHSDULQJ IRU 3DUWLWLRQ DQG SUHSDULQJWRIDFHWKHFRQVHTXHQFHVRI3DUWLWLRQµDVWKHJRYHUQPHQWH[SHFWHG WKHUHIXJHHVLQWKHHDVWWRUHWXUQWR3DNLVWDQDIWHUWKHGXVWVWRUPRI3DUWLWLRQ DQGFRPPXQDOULRWVKDGVHWWOHG
,Q RUGHU WR XSKROG WKH P\WK WKDW UHIXJHHV ZRXOG HYHQWXDOO\ PRYH EDFNWR(DVW%HQJDOJRYHUQPHQWZRUNZDVLQLWLDOO\UHVWULFWHGWRUHOLHIUDWKHU WKDQ WR UHKDELOLWDWLRQ 7KLVQDUURZIRFXV RQ UHOLHI FRLQFLGHG ZLWK DQDUURZ GHILQLWLRQRI¶UHIXJHHV·DQGWKHUHIRUHWKDWRIWKRVHWKDWZHUHDFWXDOO\HQWLWOHG WRUHOLHI5HIXJHHVZHUHLQLWLDOO\GHILQHGDV´SHUVRQVRUGLQDULO\UHVLGHQWLQ(DVW
%HQJDOZKRKDGPDQDJHGWRJHWWR:HVW%HQJDOEHWZHHQWKHSUHFLVHGDWHVRI -XQH DQG -XQH ¶RQ DFFRXQW RI FLYLO GLVWXUEDQFHV RU IHDU RI VXFK GLVWXUEDQFHV RU WKH 3DUWLWLRQ RI ,QGLD·µ &KDWWHUML 'DWWD KDV REVHUYHG WKDW *RYHUQPHQW RI ,QGLD WLHG LWVHOI LQ YDULRXV OLQJXLVWLF DQG DGPLQLVWUDWLYHNQRWVLQWU\LQJWRGHQ\WKH(DVW%HQJDOLUHIXJHHVWKHLU¶UHIXJHH·
VWDWXV,QIDFWDIWHUPDWKRI3DUWLWLRQZLWQHVVHGWKHFRQVWDQWUHSURGXFWLRQDQG UHYLVLRQ RI WKH FDWHJRU\ ¶UHIXJHH· 'DWWD DV LV HSLWRPL]HG E\ WKH JRYHUQPHQW·V GLVFXUVLYH LQYHQWLRQ RI FDWHJRULHV VXFK DV ¶UHIXJHHV· ¶ROG PLJUDQWV· ¶QHZ PLJUDQWV· DQG ¶GLVSODFHG SHRSOH· 7KHJRYHUQPHQW·V DWWHPSWV DWQDUURZO\VWLSXODWLQJZKRZRXOGEHJUDQWHGUHOLHIDQGUHKDELOLWDWLRQDQGRQ ZKDW WHUPV ZDV PHW ZLWK UHVLVWDQFH IURP WKH VLGH RI WKH UHIXJHHV 5HIXJHH DFWLYLVWV FKDOOHQJHG WKH QDUURZ DGPLQLVWUDWLYH QRWLRQV RI ¶UHIXJHHKRRG· E\
FODLPLQJ IXQGDPHQWDO ULJKWV IRU DOOUHIXJHHV &KDWWHUML ZKLFK LQFOXGHG WKH ULJKW WR GHWHUPLQH KRZ ZKHQ DQG ZKHUH WKH\ ZRXOG EH UHKDELOLWDWHG S +HQFH WKH UHIXJHHV· FODLPV UHIOHFW WKHLU UHIXVDO WR VXUUHQGHUWRWKHOHJLVODWLYHZKLPVDQGTXLUNVRIWKHVWDWH
7KH LQVWLWXWLRQDO DPELYDOHQFH WKDW EHVLHJHG WKH QRWLRQ RI UHIXJHH VWDWXV DQG WKH IDFW WKDW WKH UHIXJHHV RI :HVW%HQJDO HQJDJHG LQ D KLJKO\
GLDOHFWLFDO UHODWLRQVKLS ZLWK WKH VWDWH FDOOV IRU D WKHRUHWLFDO DSSURDFK WKDW DFNQRZOHGJHV WKH IOH[LELOLW\ DQG HODVWLFLW\ RI QRWLRQV RI FLWL]HQVKLS 6DGLT RXWOLQHVVXFKDQDSSURDFKLQDGYRFDWLQJDPRYLQJDZD\IURP¶SDSHU·QRWLRQV RI FLWL]HQVKLS RU ZKDW KH GHVFULEHV DV WKH SUREOHPDWLF LGHD WKDW FLWL]HQVKLS HTXDWHVDVWDWLFEXQGOHRIOHJDOULJKWVDQGREOLJDWLRQV$FFRUGLQJWR6DGLTWKLV FRQFHSWLRQLVEDVHGVROHO\RQWKHLQVWLWXWLRQDOH[SHULHQFHRI:HVWHUQVWDWHVDV LWLVXQGHUSLQQHGE\WKHDVVXPSWLRQ´WKDWUHFHLYLQJVWDWHVKDYHDSRSXODWLRQWKDWLV GRFXPHQWHG XVLQJ VWDQGDUGL]HG SDSHUZRUNµ 7KH FDVH RI %HQJDO SRVHV D FKDOOHQJH WR WKLV LGHD RI ´GRFXPHQWHG FLWL]HQVKLSµ ² QRW RQO\ EHFDXVH LW HSLWRPL]HVDODFNRIOHJLELOLW\ZKHQLWFRPHVWRWKHFODVVLILFDWLRQRIUHIXJHHV EXW DOVR EHFDXVH RI WKH G\QDPLF GLDORJXH WKDW WRRN SODFH EHWZHHQ WKH VWDWH DQG WKH UHIXJHHV RYHU ZKDW FDQ EH OHJLWLPDWHO\ H[SHFWHG IURP WKH VWDWH
&KDWWHUML KDV REVHUYHG WKDW ´>D@V ERWK VLGHV DUJXHG WKHLU FRUQHU WKH\ ZHUH IRUFHGWRVSHOORXWWKHLURZQRIWHQXQH[DPLQHGDVVXPSWLRQVRQDUDQJHRI
FULWLFDOO\LPSRUWDQWLVVXHVDERXWWKHHWKLFDOSUHURJDWLYHVRIFLWL]HQVKLSDQGWKH LPSHUDWLYHVRIUHDOSROLWLNµ
$ VLPLODU DVSHFW RI QHJRWLDWLRQ EHWZHHQ WKH VWDWH DQG LWV SRWHQWLDO FLWL]HQVLVEURXJKWWRWKHIRUHE\$QMDULDLQKLVDUWLFOHRQWKHVSDWLDOSROLWLFV RI XQOLFHQVHG KDZNHUV LQ 0XPEDL $QMDULD VKRZV KRZ DEVWUDFW QRWLRQV RI VRYHUHLJQ SRZHU DUH XQGHUPLQHG E\ ´PRPHQWV RI FRPSURPLVH WKDW HQDEOH SHRSOH WR PDNH PRUDOO\ LQIXVHG GHPDQGV RQ WKH VWDWH WKDW H[FHHG D SURFHGXUDOLVW UHJLPHµ +H LOOXVWUDWHV WKHVH ¶PRPHQWV RI FRPSURPLVH· E\
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
$QMDULD·V FRQFHSWLRQ RI WKH VWDWH DV D ORFXV IRU WKH QHJRWLDWLRQ DQG OHJLWLPDWLRQRIVSDWLDOFODLPVUDWKHUWKDQDQH[WHQVLRQRIGLVFLSOLQDU\SRZHULV SDUWLFXODUO\LQVLJKWIXOLQPDNLQJVHQVHRIWKHZD\VLQZKLFKUHIXJHHVQHJRWLDWH RYHUWKHFRQGLWLRQVRIWKHLUUHKDELOLWDWLRQ
7KH ZRUN RI 9HHQD 'DV RQ VOXP GZHOOHUV LQ 1HZ 'HOKL FDQ EH UHQGHUHG KHOSIXO LQ IXUWKHU HOXFLGDWLQJ WKH OLQN EHWZHHQ SROLWLFV RI FODLP PDNLQJ DQG KDELWDWLRQ 'DV·V DSSURDFK UHVRQDWHV ZLWK WKH RQH RXWOLQHG E\
$QMDULD DV VKH FRQFHSWXDOL]HV FLWL]HQVKLS DV DQ HYHU\GD\ FODLP WKDW SHRSOH PDNH %\ PHDQV RI DGGUHVVLQJ DWWHQWLRQ WR WKH ´PLQXWLDH RI HYHU\GD\ OLIHµ 'DVVHHNVWRE\SDVVWKHSUREOHPDWLFGLFKRWRP\EHWZHHQSROLWLFDOOLIHRQWKH RQH KDQG DQG ELRORJLFDO OLIH RQ WKH RWKHU )RU VKH DUJXHV WKDW WKHUH LV D VFKRODUO\WHQGHQF\RIUHGXFLQJWKRVHZKRHQFRXQWHUWKHVWDWHIURPDSRVLWLRQ RI PDUJLQDOLW\ RU LOOHJDOLW\ VXFK DV VOXP GZHOOHUV WR QRWLRQV RI ¶EDUH OLIH· ² VWULSSLQJ WKHP RI DQ\ SROLWLFDO SRWHQWLDO 7KH SRRU IRU H[DPSOH DUH RIWHQ GHQLHGWKHFDSDELOLW\RIHQJDJLQJLQDQ\PHDQLQJIXOIRUPSROLWLFVDVWKH\DUH SHUFHLYHGDV¶FDXJKWXS·LQWKHVWUXJJOHRIHQVXULQJWKHLUELRORJLFDOH[LVWHQFH 'DV KRZHYHU KLQWV DW WKH SRVVLELOLW\ IRU D FHUWDLQ FRQYHUJHQFH EHWZHHQ WKH SXUVXLW RI SUHVHUYLQJ ELRORJLFDO OLIH RQ WKH RQH KDQG DQG SROLWLFDO FODLPV WR FLWL]HQVKLS RQ WKH RWKHU 6KH GHPRQVWUDWHV KRZ VOXP GZHOOHUV·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·SK\VLFDODFWRI VHWWOHPHQW DQG WKH SROLWLFL]HG VWUXJJOH IRU ODQG ULJKWVDQG LQ GRLQJ VR , ZLOO VWULYHWRZDUGDWKHRUHWLFDOFRQIODWLRQRIELRORJLFDODQGSROLWLFDOOLIH
5HVHDUFK3RSXODWLRQ7KH5HIXJHHVRI:HVW%HQJDO
$SRZHUIXOLPDJHWKDWLVRIWHQGHSOR\HGZKHQLWFRPHVWRGHVFULELQJ WKHSOLJKWRIWKH3DUWLWLRQUHIXJHHVLVWKDWRIWKH¶SHQQLOHVVUHIXJHH·DUULYLQJLQ ,QGLDZLWKQRWKLQJEXWWKHFORWKHVRQKLVERG\7KHLPDJHU\HYRNHVDFHUWDLQ XQDQLPLW\ RI GHVSDLU HSLWRPL]LQJ WKH VKDUHG QHFHVVLW\ RI WKRVH ZKR FURVVHG WKH ERUGHU 7KH DFDGHPLF OLWHUDWXUH RQ WKH 3DUWLWLRQ RI %HQJDO KRZHYHU VXJJHVWVWKDWQRWDOOUHIXJHHVZHUHHTXDOO\SHQQLOHVV,QIDFWWKHUHIXJHHVWKDW FDPH WR :HVW%HQJDO FRPSULVHG D JUHDW YDULHW\ RI SHRSOH VWHPPLQJ IURP GLIIHUHQW VRFLRHFRQRPLF EDFNJURXQGV DQG FURVVLQJ WKH ERUGHU IRU GLIIHUHQW UHDVRQV7KRVHZKRFDPHILUVWLPPHGLDWHO\DIWHU,QGLDJDLQHGLQGHSHQGHQFH
´FRQVLVWHGRIWKHPRUHZHDOWK\FODVVHVPRVWO\XSSHUFDVWH+LQGXJHQWU\DQG WKH HGXFDWHG PLGGOH FODVVHV ZLWK MREV >«@ ZKR FRXOG VHOO RU DUUDQJH H[FKDQJHV RI SURSHUWLHVµ ,Q WKH GLUHFW DIWHUPDWK RI 3DUWLWLRQ ORZFDVWH 1DPDVXGUD SHDVDQWV ZHUH YLUWXDOO\ DEVHQW IURP WKH JURXSV RI LQFRPLQJ UHIXJHHVDVWKH\ODFNHGWKHUHVRXUFHVWKDWPLJUDWLRQUHTXLUHG7KH\VWDUWHG IOHHLQJ IURP V RQZDUGV ZKHQ 0XVOLP+LQGX UHODWLRQV WXUQHG LQFUHDVLQJO\ KRVWLOH DQG PRUH DQG PRUH ULRWV EURNH RXW &KDWWHUML UHPDUNV WKDW ´>Z@KHQ ORZFDVWH SHDVDQWV GLG PLJUDWH WKH\ WHQGHG WR GR VR XQGHU FLUFXPVWDQFHV UDWKHU GLIIHUHQW IURP WKRVH ZKLFK SHUVXDGHG WKH EHWWHURII WR JHWXSDQGOHDYH%\DQGODUJHWKH\DEDQGRQHGWKHOLWWOHWKH\SRVVHVVHGLQWKH HDVW RQO\ ZKHQ WKH\ ZHUH GULYHQ RXW E\ H[WUHPH YLROHQFH RU E\ LQWROHUDEOH KDUGVKLSµ &KDXGKXU\ PRUHRYHU KDV DUJXHG WKDW SHRSOH·V PRWLYHV WR VHHN UHIXJHLQ:HVW%HQJDOUHYROYHGDURXQGGLIIHUHQWQRWLRQVRILQVHFXULW\QRWDEO\
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
,QWKHWZHQW\ILYH\HDUVIROORZLQJ3DUWLWLRQDSSUR[LPDWHO\VL[PLOOLRQ +LQGX UHIXJHHV HQWHUHG :HVW%HQJDO $V ZH KDYH VHHQ WKLV PDVVLYH LQIOX[
ZDV GLYHUVLILHG LQ WHUPV RI FDVWH VRFLRHFRQRPLF VWDWXV WLPH RI GHSDUWXUH DQGUHDVRQVIRUOHDYLQJ7KHVHGLIIHUHQFHVDUHWRVRPHH[WHQWUHIOHFWHGLQWKH PRGHV RI VHWWOHPHQW DPRQJ WKH UHIXJHHV %DQG\RSDGK\D\DQG &KDXGKXU\
KDYH REVHUYHG WKDW ´>Z@KHQ WKH ILUVW ZDYH RI PDLQO\ KLJK FDVWH +LQGX EKDGUDORNUHIXJHHVKDGDUULYHGLQ:HVW%HQJDOWKH\KDGWKHLURZQUHVRXUFHVDQ NLQJURXSVXSSRUW0DQ\RIWKHPUHVHWWOHGWKHPVHOYHVLQVTXDWWHUFRORQLHVLQ DQGDURXQG&DOFXWWDDQGWKHJRYHUQPHQWDIWHULQLWLDOKHVLWDWLRQHQGRUVHGWKDW PRGHRIUHKDELOLWDWLRQµ7KHSUDFWLFHRIVTXDWWLQJRUMDEDUGDNKDOWKH¶IRUFLEOH RFFXSDWLRQ RI ODQG· VWDUWHG IURP RQZDUGV DQG H[HPSOLILHV WKH ZD\ LQ ZKLFK UHIXJHHV WRRN GHVWLQ\ LQWR WKHLU RZQ KDQGV DQG HQIRUFHG WKHLU RZQ UHKDELOLWDWLRQ7KHVHDWWHPSWVDWVHOIVHWWOHPHQWFRLQFLGHGZLWKFRQVLGHUDEOH KDUGVKLSV GXH WR WKH LQKRVSLWDEOH TXDOLWLHV RI WKH RFFXSLHG ODQG DQG WKH
JHQHUDO FRQGLWLRQ RI WHQXUH LQVHFXULW\ \HW QRQHWKHOHVV VHOIVHWWOHPHQW ZDV LQ PDQ\ZD\VSUHIHUDEOHDERYHVHWWOHPHQWLQRQHRIWKHJRYHUQPHQWFDPSV,Q RUGHUWRGHDOZLWKWKHXQSUHFHGHQWHGLQIOX[RIUHIXJHHVWKHJRYHUQPHQWVHWXS GLIIHUHQW W\SHV RI FDPSV WUDQVLW FDPSV ZRUNVLWH FDPSV DQG SHUPDQHQW OLDELOLW\FDPSV,WZHUHW\SLFDOO\SRRUSHDVDQWVWKDWHQGHGXSWDNLQJVKHOWHU LQWKHFDPSVDVWKH\ODFNHGWKHVRFLDODQGHFRQRPLFFDSLWDOWRVHWWOHRQWKHLU RZQWHUPV&KDXGKXU\
,Q DGGLWLRQ WR VRFLRHFRQRPLF VWDWXV WLPH RI DUULYDO DOVR DIIHFWHG SHRSOH·VPRGHRIVHWWOHPHQW)RUWKRVHZKROHIW(DVW3DNLVWDQDIWHUWKHULRWV WKDWRFFXUUHGLQGLGVRXQGHUFLUFXPVWDQFHVRIVLJQLILFDQWWXUPRLO WKDWFRPSHOOHGWKHPWRDEDQGRQWKHLUKRXVHVLQVWDQWO\DQGUHVXOWHGLQSHRSOH DUULYLQJ PRUH RU OHVV HPSW\KDQGHG DQG ZLWKRXW DQ\ PHDQV IRU VHFXULQJ VKHOWHURWKHUWKDQWDNLQJUHVLGHQFHLQRQHRIWKHFDPSV&KDWWHUML 7KHFDPSVWKHPVHOYHVSURYHGSDLQVWDNLQJO\LQDGHTXDWHLQWKHLUIXQFWLRQWKH SURYLVLRQ RI UHOLHI QRWDEO\ GROHV DQG VKHOWHU ,Q IDFW &KDWWHUML UHPDUNVWKDWLWEHFDPH´DVWDQGDUGSUDFWLFHLQWKHFDPSVWRVWDUYHWKHLQPDWHV LQWRFRPSO\LQJZLWKJRYHUQPHQWRUGHUVµ2QHLVVXHWKDWWKHJRYHUQPHQWDQG WKHUHIXJHHVGLGQRWDJUHHRQZDVWKHLUIXWXUHUHVHWWOHPHQW7KH:HVW%HQJDO
*RYHUQPHQW DGYRFDWHG IRUUHKDELOLWDWLRQ RXWVLGH RI%HQJDO DV WKH\ WRRN XS WKH YLHZ ´WKDW WKH UHIXJHHV ZHUH QRW LWV VROH UHVSRQVLELOLW\ EXW UDWKHU D EXUGHQZKLFKRXJKWWREHVKDUHGMRLQWO\DPRQJWKHIHGHUDOJRYHUQPHQWDQG WKRVH RI WKH QHLJKERXULQJ VWDWHVµ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´>H@OHFWULFLW\ ZDV QRW DYDLODEOH RYHU ODUJH DUHDV DQGWKHUHZDVRIWHQDQDFXWHVKRUWDJHRIGULQNLQJZDWHU7KHODFNRIPHGLFDO VHUYLFHV DQG WKH URXJK WHUUDLQ OHG WR IUHTXHQW HSLGHPLFV ZLWK D KLJK UDWH RI FKLOG PRUWDOLW\ WKDW XQVHWWOHG WKH UHIXJHHVµ 6HQJXSWD 7KHVH FRQGLWLRQV RI KDUGVKLS LQFUHDVLQJO\ OHG WR FDVHV RI GHVHUWLRQ DQG WKH KRUURU VWRULHV RI 'DQGDNDUDQ\D VWUHQJWKHQHG WKH UHIXJHHV EDFN LQ :HVW %HQJDO LQ WKHLUFODLPVWR´WKHULJKWWRGHWHUPLQHKRZZKHQDQGZKHUHWKH\ZHUHWREH UHKDELOLWDWHGµ&KDWWHUML
7KHWZRGLIIHUHQWFRORQLHV,IRFXVRQLQWKLVUHVHDUFKDUHRXWFRPHVRI GLIIHUHQWDVSHFWVRIWKHVWUXJJOHIRUUHKDELOLWDWLRQLQ:HVW%HQJDO&KLWWDUDQMDQ
&RORQ\RULJLQDWHGLQDVRQHRIWKHPDQ\¶MDEDUGDNKDO·FRPPXQLWLHVWKDW VSURXWHGLQ6RXWK.RONDWDDWWKHWLPH,QDGGLWLRQWRVTXDWWLQJZKLFKLQLWVHOI FDQEHYLHZHGDVDQDFWRISROLWLFDOUHVLVWDQFHWKHLQKDELWDQWVRIWKHFRORQLHV EHFDPHYHU\SURDFWLYHLQSROLWLFDOO\DUWLFXODWLQJWKHLUGHPDQGVWRKRXVLQJDQG ODQG 6DQ\DO 7KH\ FDPSDLJQHG DJDLQVW HYLFWLRQV DQG DGYRFDWHG IRU
´PRUH HTXLWDEOH ODZV LPSRVLQJ FHLOLQJV RQ WKH DPRXQW RI XUEDQ ODQG ZKLFK
WKH SULYLOHJHG FRXOG RZQµ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¶UHIXJHHH[SHULHQFH·DQGWRKHOSGLYHUWWKHWUHQGLQ3RVW 3DUWLWLRQKLVWRULRJUDSK\RIWDNLQJEKDGUDORNPLJUDWLRQDVDSDUVSURWRWRIRUWKH ODUJHDQGFRPSOH[VHWRIFURVVERUGHUPLJUDWLRQWKDWZDVIXHOHGE\3DUWLWLRQ 5DKPDQDQG9DQ6FKHQGHO
%XLOGLQJ$3ODFHWR6WD\
.RONDWD·VH[SHULHQFHZLWK3DUWLWLRQKDVW\SLFDOO\EHHQIUDPHGLQWHUPV RIUHOHQWOHVVKXPDQFRQJHVWLRQDQGDVHYHUHVFDUFLW\RIVSDFH2OGQHZVSDSHU SKRWRJUDSKV XQGHUVFRUH WKH VKHHU PDJQLWXGH RI WKH UHIXJHH ¶SUREOHP·
GHSLFWLQJ IXOO\ FUDPPHG WUDLQV FRPLQJ LQ IURP 3DNLVWDQ WR GHSRVLW WKHLU KXPDQORDG,Q.RONDWDWKHSODWIRUPVRI6HDOGDKUDLOZD\VWDWLRQZHUHDPRQJ WKHILUVWXUEDQVSDFHVWREHLQYROXQWDULO\WUDQVIRUPHGLQWRUHIXJHHVHWWOHPHQWV 0DQ\ RI WKRVH ZKR DUULYHG IURP (DVW3DNLVWDQ HVSHFLDOO\ SHRSOH ZLWKRXW UHODWLYHV LQ WKH FLW\ VLPSO\ SLWFKHG FDPS DPLGVW WKH HYHU\GD\ FKDRV RI KXUU\LQJ SDVVHQJHUV KRSLQJ WKDW WKH JRYHUQPHQW ZRXOG HYHQWXDOO\ FRPH WR WKHLU DLG 6DQ\DO .DYLUDM &KDWWHUML GHVFULEHV KRZ WKLV DFFXPXODWLQJ SUHVHQFH RI (DVW%HQJDOL DUULYDOV JUDGXDOO\
WUDQVIRUPHGWKHRYHUDOOJHRJUDSK\RI:HVW%HQJDO
´5HIXJHHV KDG OLWHUDOO\ ILOOHG XS HYHU\ HPSW\ VSDFH LQ DQG DURXQG WKH ELJ WRZQVSDUWLFXODUO\LQWKHJUHDWPHWURSROLVRI&DOFXWWDRFFXS\LQJHYHU\WLQ\
SLHFH RI YDFDQW ODQG WKH\ FRXOG ILQG ZKHWKHU RQ SDYHPHQWV RU WKH ¶VHW DVLGHV· DORQJ WKH UXQZD\V RI DLUILHOGV LQ HPSW\ KRXVHV RQ VQDNHLQIHVWHG PDUVK DQG VFUXEODQG DQG HYHQ RQ WKH XQVDQLWDU\ YHUJHV RI VHZHUV DQG UDLOZD\WUDFNVµ
7KH DERYH TXRWDWLRQ GRHV QRW RQO\ GHPRQVWUDWH WKH FKDOOHQJLQJ FRQGLWLRQVXQGHUZKLFK(DVW%HQJDOLUHIXJHHVVHWWOHGLQWKHFLW\EXWDOVRKLQWV DW D UDWKHU GUDVWLF SURFHVV RI VSDWLDO WUDQVIRUPDWLRQ LQFLWHG E\ SHRSOH·V DSSURSULDWLRQRIXUEDQVSDFHV,Q.RONDWDWKHDEVHQFHRIVDWLVIDFWRU\SODFHV IRUVHWWOHPHQWQRWRQO\OHGWKHUHIXJHHVWRRFFXS\DQGUHF\FOHFHUWDLQSXEOLF VSDFHVVXFKDVUDLOZD\SODWIRUPVSDUNVDQGJDUGHQKRXVHV.DYLUDM EXW DOVR LQVWLJDWHG WKH UHFODPDWLRQ RI ODQG IURP ZDWHU ERGLHV DQG WKH
FXOWLYDWLRQ RI ORZ O\LQJ PDUVKODQGV ,Q IDFW WKH SLHFHV RI ODQG WKDW 3RVW 3DUWLWLRQUHIXJHHVFDPHWRLQKDELWLQ.RONDWDKDUGO\H[LVWHGRIDFWXDO¶ODQG·DW DOO:KHQDVNHGWRGHVFULEHKRZWKHLUQHLJKERUKRRGXVHGWRORRNOLNHPRVW RIP\LQIRUPDQWVZRXOGLPPHGLDWHO\VWDUWWDONLQJDERXWZDWHU7KHZDWHUXVHG WR FRPH XS WR SHRSOH·V NQHHV DQG IRUPHG WKH PDLQ HOHPHQW RI D ODQGVFDSH FRQVLVWLQJRIMXQJOHVZDPSVDQGZHWODQGV+HQFHWKHVWUXJJOHIRUVHWWOHPHQW ZDVDVWUXJJOHZLWKERWKODQGDQGZDWHU
,Q 3DQFKDQQDJUDP WKH PDVWHULQJ RI ODQG DQG ZDWHU SURYHG WR EH D VORZ DQG UDWKHU SDLQIXO SURFHVV WKDW ZDV WLPH DQG DJDLQ XQGHUPLQHG E\ WKH KRVWLOLW\ RI WKH WHUUDLQ 7RGD\ 3DQFKDQQDJUDP VFKHPH FRYHUV D ODUJH DQG FRQJHVWHG DUHD ORFDWHG GLUHFWO\ QH[W WR .RONDWD·V PDLQ WUDQVSRUWDWLRQ DUWHU\
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
$VKLP%LVZDVDPHPEHURIWKHORFDOFRPPXQLVWSDUW\GHVFULEHGKRZ\RXQJ PHQZRXOGVWDQGLQWKHZDWHUDOOGD\ORQJWRILOOWKHSRQGVWKHOHJVRIWKHLU WURXVHUVWLHGWLJKWO\DURXQGWKHDQNOHVDVWRSUHYHQWOHHFKHVIURPFUHHSLQJXS ,WWRRNDORQJWLPHEHIRUHWKHVSDFHWKDWZDVJHQHUDWHGLQWKLVPDQQHUDFWXDOO\
VHUYHGWKHQHHGVRILWVLQKDELWDQWV,QPDQ\ZD\VWKLVQHZSODFHRIVHWWOHPHQW GLGQRWVHHPOLYDEOHDWDOO7KHVPDOOLVODQGWKDWIRUPHGWKHEDVHRIWKHILUVW LPSURYLVHG WHQW FDPS ZDV VZDUPLQJ ZLWK IOLHV DQG PRVTXLWRV DQG XVHG WR IXQFWLRQ DV D SXEOLF WRLOHW IRU ODERUHUV UXQQLQJ D ODXQGU\ EXVLQHVV DW WKH ODNHVLGH7DUD%LVDVD\HDUROGODG\UHFDOOHGQRWEHLQJDEOHWRVHHWKHPXG RIWKHVRLOZKHQVKHILUVWFDPHWRWKHDUHDEHFDXVHLWZDVFRYHUHGLQIOLHV7KH VZDUPV RI PRVTXLWRV PRUHRYHU IRUFHG SHRSOH WR VSHQG PRVW RI WKHLU WLPH XQGHU D PRVTXLWRQHW ´:H EHFDPH WKH JXHVWV RI PRVTXLWRV DQG IOLHVµ HPSKDVL]HGZULWHU*RSDO+LUDFLWLQJIURPWKHVPDOOERRNWKDWKHKDVZULWWHQ RQ WKH KLVWRU\ RI 3DQFKDQQDJUDP +H GHVFULEHG KRZSHRSOH ZHUH QR ORQJHU DEOH WR UHFRJQL]H HDFK RWKHU DV WKHLU IDFHV KDG EHHQ DOWHUHG EH\RQG UHFRJQLWLRQ E\ WKH PDQ\ PRVTXLWR ELWHV $QRWKHU UHVLGHQW 6K\DPDO %LVZDV YLYLGO\GHVFULEHGKRZSHRSOH·VDUPVZRXOGWXUQUHGEHFDXVHRIWKHH[WHQVLYH VFUDWFKLQJ DQG EOHHGLQJ +H PRUHRYHU FRPSODLQHG DERXW WKH KRUULEOH VPHOOV WKDWZRXOGVXIIRFDWHWKHLUORFDOLW\ZKHQWKHZLQGFDPHIURPWKHGLUHFWLRQRI WKHQHDUE\OHDWKHUIDFWRU\$OOLQDOOLWVHHPHGDOPRVWLPSRVVLEOHIRUWKH(DVW
%HQJDOL UHVLGHQWV RI 3DQFKDQQDJUDP WR HIIHFWLYHO\ VHSDUDWH WKHPVHOYHV IURP WKHLU FKDOOHQJLQJ HQYLURQPHQW DQG WR VXFFHVVIXOO\ VHFUHWH D GLVWLQFW SODFH RI UHVLGHQFH
,Q&KLWWDUDQMDQ&RORQ\&5&RORQ\UHIXJHHVIRXQGWKHPVHOYHVLQD VLPLODUO\ VHQVRULDO HQFRXQWHU ZLWK WKHLU GLUHFW OLYLQJ HQYLURQPHQW 7KLV QRZ WKULYLQJQHLJKERUKRRGORFDWHGVRXWKRI-DGDYSXU8QLYHUVLW\XVHGWRORRNOLNH D¶UHPRWHYLOODJH·ZKHQLWILUVWRULJLQDWHGLQ:KHQDVNHGWRGHVFULEHKRZ
WKH DUHD ORRNHG OLNH LQ KLV \RXWK 3DQNDM 5R\FKRZGU\ HODERUDWHG ´,PDJLQH WUDYHOOLQJ E\ WUDLQ VLWWLQJ QH[W WR WKH ZLQGRZ /DQG SDVVLQJ E\ WKHUH LV QR SHWW\ QR FXOWLYDWLRQ MXVW EDUUHQ ODQG 7KHUH DUH VRPH KXWV EXW \RX FDQQRW VSRWWKHODVWKXWEHFDXVHLWLVEH\RQGWKHVFRSHRIYLVLRQ<RXZLOOQRWILQGD VLQJOHSLHFHRIEULFNMXVWVRPHKXWVµ,QGHSLFWLQJWKLVODQGVFDSHRIWKHSDVW P\LQIRUPDQWVWHQGHGWRXVHWKHZRUG¶NDFD·LQRUGHUWRGHVFULEHWKHHUVWZKLOH VWUXFWXUHVRIWKHLUGLUHFWOLYLQJHQYLURQPHQW¶.DFD·PHDQV¶UDZ·RU¶XQSDYHG·
DQG LV RSSRVHG WR ¶SDND· ZKLFK FDQ HLWKHU PHDQ ¶ULSH· ¶SDYHG· RU VLPSO\
¶JRRG· 7KH ILUVW KRXVHV URDGV DQG GUDLQV ZHUH DOO ¶NDFD·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
'HVSLWHWKHFRQVLGHUDEOHHYHU\GD\KDUGVKLSVWKDWWKHUHVLGHQWVRIWKH FRORQLHV IDFHG LQ WKHLU HIIRUWV WR LQKDELW WKH LQKRVSLWDEOH WHUUDLQ WKDW VXUURXQGHG WKHP WKHLU SURGXFWLYH ODERU RI FUHDWLQJ D VDWLVIDFWRU\ SODFH RI VHWWOHPHQWFRQWLQXHG*UDGXDOO\WKHWHQWVLQ3DQFKDQQDJUDPZHUHUHSODFHGE\
VPDOOKRXVHVPDGHRXWRIEHUDRU¶SDWKHUNDWK·DYHU\WKLQOD\HURIZRRGDQG WKHYXOQHUDEOH¶KXJOD·URRIVLQ&5&RORQ\ZHUHHYHQWXDOO\UHSODFHGE\WLOHV +RULGDVL0RQGDODIHPDOHUHVLGHQWRI3DQFKDQQDJUDPVDZKHUKRXVHHYROYH VORZO\RYHUWLPHILUVWWKHIOLPV\URRIRISDWKHUNDWKZDVUHSODFHGE\WLOHVQH[W WKH ZDOOV ZHUH WUDQVIRUPHG LQWREHUD VWUXFWXUHV EHIRUH WKH\ ZHUH HYHQWXDOO\
HQWLUHO\ UHSODFHG E\ EULFN 7KH ORFDOLW\ WKXV JUDGXDOO\ LPSURYHG DV PRUH SHUPDQHQW DQG HIIHFWLYH GZHOOLQJ VWUXFWXUHV ZHUH HUHFWHG 1RWZLWKVWDQGLQJ WKLV VORZ SURFHVV RI XUEDQ GHYHORSPHQW WKH VWUXJJOH ZLWK WKH ODQGVFDSH FRQWLQXHGORQJDIWHUWKHDFWXDOSORWVRIODQGKDGEHHQGHYHORSHG'XULQJWKH PRQVRRQWKHQHDUE\SRQGVDQGGUDLQVZRXOGRYHUIORZFDXVLQJWKHZDWHUWR HQWHUSHRSOH·VKRXVHV0DQ\RIP\LQIRUPDQWVUHFDOOHGVSHQGLQJPRVWRIWKH UDLQ\VHDVRQVLWWLQJRQWKHEHGZLWKWKHZKROHIDPLO\LQRUGHUWRVWD\GU\+RUL
&KDQG 0RQGRO GHVFULEHG KRZ KLV IDPLO\ XVHG WR FUHDWH D VPDOO EDUULHU RI PXGDQGZRRGLQIURQWRIWKHKRXVHLQRUGHUWRSURWHFWWKHLUEHORQJLQJVIURP DOOWKHZDWHUEXWPRUHRIWHQWKDQQRWWKLVERXQGDU\ZRXOGSURYHLQVXIILFLHQW DQG WKH IDPLO\ ZRXOG VLPSO\ VHHN UHIXJH RQ WKH EHG XQWLO WKH ZDWHU ZRXOG HYHQWXDOO\ZLWKGUDZ$QRWKHUWKUHDWSUHVHQWHGLWVHOILQWKHIRUPRIW\SKRRQV
$VKLP %LVZDV GHVFULEHG KRZ WKRVH IDPLOLHV ZKRVH URRIWRSV ZHUH PDGH RI JDOYDQL]HGVKHHWLQVWHDGRIWLOHVXVHGWRKROGRQWRWKHURRIZLWKURSHVGXULQJ WKH VWRUP LQ RUGHU WR SUHYHQW LW IURP EORZLQJ DZD\ 'HVSLWH WKRVH LPSURYLVHG DWWHPSWV DW SURWHFWLRQ PDQ\ IDPLOLHV ZHQW WKURXJKWKH RUGHDO RI UHVSHFWLYHO\ ORVLQJ DQG UHEXLOGLQJ WKHLU KRXVH ´7KH KRXVHV ZHUH VLPSO\ WRR