Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 1 of 66 1 7 81 7 ' 67$7 6 ' 675 7 2857 25 7 6287 51 ' 675 7 2 1 25 ' 02 5$7 1$7 21$ 200 77 3ODLQWLII Y 7 5866 $1 ' 5$7 21 1 5$ 67$ 2 7 $50 ' 25 6 2 7 5866 $1 ' 5$7 21 ³ 58´ 58 23 5$7 9 86 1 36 8'21 0 ³ 8 5 ´ $5$6 6 1 529 $ $ $529 0 1 $5$ $ $ $529 -26 3 0 68' $ 6 -8 $1 $66$1 '21$ ' - 75803 25 35 6 ' 17 1 '21$ ' - 75803 -5 3$8 - 0$1$ 257 -5 52 5 - 6721 -5 -$5 ' 86 1 5 25 3$3$'2328 26 5 $5' $7 6 -2 1 '2 6 'HIHQGDQWV LYLO $FWLRQ 1R BBBBBBBBB -85 ' 0$1' 203 $ 17 20387 5 5$8' $1' $%86 $ 7 8 6 † D 5 2 8 6 † F 5 2 2163 5$ 8 6 † G 5 7$3 $ 7 8 6 †† 6725 ' 20081 $7 216 $ 7 8 6 †† ' 7$ 0 11 80 23 5 7 $ 7 8 6 † HW VHT 0 6$335235 $7 21 2 75$' 6 5 76 81' 5 7 ' 1' 75$' 6 5 76 $ 7 8 6 † HW VHT $6 1 721 ' 81 250 75$' 6 5 76 $ 7 ' RGH $QQ †† ± 75 63$66 ' RPPRQ DZ 75 63$66 72 $77 6 9LUJLQLD RPPRQ DZ 2163 5$ 72 200 7 75 63$66 72 $77 6 9LUJLQLD RPPRQ DZ 9 5 1 $ 20387 5 5 0 6 $ 7 9D RGH $QQ † HW VHT Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 2 of 66 7$% 2 217 176 3DJH 1$785 2 $ 7 21 1752'8 7 21 29 59 2 7 2163 5$ '$0$ 6 72 7 '1 -85 6' 7 21 $1' 9 18 3$57 6 1 5$ $ $7 216 75803¶6 $1' 75803 $662 $7 6¶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¶V $WWDFN RQ WKH '1 ¶V 1HWZRUN 5XVVLDQV 2IIHU WR $VVLVW 7UXPS²DQG 7UXPS $VVRFLDWHV $FFHSW WKH 2IIHU ROORZLQJ 7UXPS 7RZHU 0HHWLQJ 5XVVLD DXQFKHV D 0DVVLYH 3XEOLF 'LVVHPLQDWLRQ RI 6WROHQ '1 'RFXPHQWV - 7KH 7UXPS DPSDLJQ %ORFNV $QWL 5XVVLDQ DQJXDJH IURP %HLQJ $GGHG WR WKH 23 3ODWIRUP L Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 3 of 66 7$% 2 217 176 3DJH 0 1 $IWHU WKH 7UXPS DPSDLJQ %ORFNV $QWL 5XVVLD DQJXDJH IURP WKH 23 3ODWIRUP LNL HDNV %HJLQV 'LVVHPLQDWLQJ 6WROHQ '1 'RFXPHQWV 7UXPS $VVRFLDWHV 6HFUHWO RPPXQLFDWH ZLWK 5XVVLDQ $JHQWV DQG LNL HDNV DV 7KH 6WUDWHJLFDOO 5HOHDVH 6WROHQ '1 'RFXPHQWV 7UXPS 3XEOLFO 3UDLVHV WKH OOHJDO 'LVVHPLQDWLRQ RI 6WROHQ '1 'RFXPHQWV 7UXPS²DQG 5XVVLD² LQ 9 ' 1'$176¶ 5 3 $7 ' 2576 72 29 5 83 217$ 76 7 5866 $16 9 ' 1 7 5 216 2861 66 2 8 7 9 7 6 1 $17 $50 1 7 ' 8321 3 $ 17 $86 6 2 $ 7 21 2817 20387 5 5$8' $1' $%86 $ 7 8 6 † $ $ $ 167 5866 $ 7 58 $1' 58 23 5$7 9 2817 5 2 8 6 † $ $ 167 $ ' 1'$176 $ % 7KH 7UXPS DPSDLJQ DV WKH 5DFNHWHHULQJ QWHUSULVH $OWHUQDWLYHO DQG DW WKH 9HU HDVW WKH 7UXPS DPSDLJQ DV 3DUW RI DQ $VVRFLDWLRQ Q DFW QWHUSULVH 5 2 3UHGLFDWH $FWV ' 5 2 'DPDJHV 2817 5 2 2163 5$ 8 6 † ' $ $ 167 $ ' 1'$176 2817 9 5 7$3 $ 7 8 6 †† $ $ 167 58 23 5$7 9 $ 6 $66$1 7 75803 $03$ 1 $1' 7 75803 $662 $7 6 2817 9 6725 ' 20081 $7 216 $ 7 8 6 †† $ $ 167 5866 $ 7 58 $1' 58 23 5$7 9 2817 9 ' 7$ 0 11 80 23 5 7 $ 7 8 6 † 7 6 4 $ $ 167 5866 $ 7 58 $1' 58 23 5$7 9 LL Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 4 of 66 7$% 2 217 176 3DJH 2817 9 0 6$335235 $7 21 2 75$' 6 5 76 81' 5 7 ' 1' 75$' 6 5 76 $ 7 8 6 † 7 6 4 $ $ 167 5866 $ 7 58 58 23 5$7 9 $ 6 $1' $66$1 2817 9 $6 1 721 ' 81 250 75$' 6 5 76 $ 7 ' 2' $11 †† ± $ $ 167 $ ' 1'$176 2817 75 63$66 ' 20021 $ $ $ 167 5866 $ 7 58 $1' 58 23 5$7 9 2817 75 63$66 72 $77 6 9 5 1 $ 20021 $ $ $ 167 5866 $ 7 58 $1' 58 23 5$7 9 2817 2163 5$ 72 200 7 75 63$66 72 $77 6 9 5 1 $ 20021 $ $ $ 167 $ ' 1'$176 2817 9 2 $7 21 2 7 9 5 1 $ 20387 5 5 0 6 $ 7 9$ 2' $11 † 7 6 4 $ $ 167 $ ' 1'$176 35$ 5 25 5 -85 ' 0$1' LLL Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 5 of 66 3ODLQWLII WKH 'HPRFUDWLF 1DWLRQDO RPPLWWHH ³'1 ´ EULQJV WKLV RPSODLQW DJDLQVW 7KH 5XVVLDQ HGHUDWLRQ ³5XVVLD´ WKH HQHUDO 6WDII RI WKH $UPHG RUFHV RI WKH 5XVVLDQ HGHUDWLRQ ³ 58´ WKH 58 RSHUDWLYH XVLQJ WKH SVHXGRQ P ³ XFFLIHU ´ ³ 58 2SHUDWLYH ´ $UDV VNHQHURYLFK $JDODURY ³$UDV $JDODURY´ PLQ $UD $JDODURY ³ PLQ $JDODURY´ -RVHSK 0LIVXG ³0LIVXG´ LNL HDNV -XOLDQ $VVDQJH ³$VVDQJH´ 'RQDOG - 7UXPS IRU 3UHVLGHQW QF ³WKH 7UXPS DPSDLJQ´ 'RQDOG - 7UXPS -U ³7UXPS -U ´ 3DXO - 0DQDIRUW -U ³0DQDIRUW´ 5RJHU - 6WRQH -U ³6WRQH´ -DUHG XVKQHU ³ XVKQHU´ HRUJH 3DSDGRSRXORV ³3DSDGRSRXORV´ 5LFKDUG DWHV ³ DWHV´ DQG -RKQ 'RHV DQG DOOHJHV DV IROORZV 1$785 2 $ 7 21 1752'8 7 21 1R RQH LV DERYH WKH ODZ Q WKH UXQ XS WR WKH HOHFWLRQ 5XVVLD PRXQWHG D EUD HQ DWWDFN RQ $PHULFDQ 'HPRFUDF 7KH RSHQLQJ VDOYR ZDV D F EHUDWWDFN RQ WKH '1 FDUULHG RXW RQ $PHULFDQ VRLO Q DQG 5XVVLDQ LQWHOOLJHQFH VHUYLFHV KDFNHG LQWR WKH '1 ¶V FRPSXWHUV SHQHWUDWHG LWV SKRQH V VWHPV DQG H ILOWUDWHG WHQV RI WKRXVDQGV RI GRFXPHQWV DQG HPDLOV 5XVVLD WKHQ XVHG WKLV VWROHQ LQIRUPDWLRQ WR DGYDQFH LWV RZQ LQWHUHVWV GHVWDELOL LQJ WKH 8 6 SROLWLFDO HQYLURQPHQW GHQLJUDWLQJ WKH 'HPRFUDWLF SUHVLGHQWLDO QRPLQHH DQG VXSSRUWLQJ WKH FDPSDLJQ RI 'RQDOG - 7UXPS ³7UXPS´ ZKRVH SROLFLHV ZRXOG EHQHILW WKH UHPOLQ Q WKH 7UXPS FDPSDLJQ 5XVVLD IRXQG D ZLOOLQJ DQG DFWLYH SDUWQHU LQ WKLV HIIRUW Q LQGLYLGXDOV WLHG WR WKH UHPOLQ QRWLILHG WKH 7UXPS FDPSDLJQ WKDW 5XVVLD LQWHQGHG WR LQWHUIHUH ZLWK RXU GHPRFUDF 7KURXJK PXOWLSOH PHHWLQJV HPDLOV DQG RWKHU FRPPXQLFDWLRQV WKHVH 5XVVLDQ DJHQWV PDGH FOHDU WKDW WKHLU JRYHUQPHQW VXSSRUWHG 7UXPS DQG ZDV SUHSDUHG WR XVH VWROHQ HPDLOV DQG RWKHU LQIRUPDWLRQ WR GDPDJH KLV RSSRQHQW DQG WKH 'HPRFUDWLF SDUW Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 6 of 66 5DWKHU WKDQ UHSRUW WKHVH UHSHDWHG PHVVDJHV WKDW 5XVVLD LQWHQGHG WR LQWHUIHUH ZLWK 8 6 HOHFWLRQV WKH 7UXPS DPSDLJQ DQG LWV DJHQWV JOHHIXOO ZHOFRPHG 5XVVLD¶V KHOS QGHHG WKH 7UXPS DPSDLJQ VROLFLWHG 5XVVLD¶V LOOHJDO DVVLVWDQFH DQG PDLQWDLQHG VHFUHW FRPPXQLFDWLRQV ZLWK LQGLYLGXDOV WLHG WR WKH 5XVVLDQ JRYHUQPHQW LQFOXGLQJ RQH RI WKH LQWHOOLJHQFH DJHQFLHV UHVSRQVLEOH IRU DWWDFNLQJ WKH '1 7KURXJK WKHVH FRPPXQLFDWLRQV WKH 7UXPS DPSDLJQ 7UXPS¶V FORVHVW DGYLVRUV DQG 5XVVLDQ DJHQWV IRUPHG DQ DJUHHPHQW WR SURPRWH 'RQDOG 7UXPS¶V FDQGLGDF WKURXJK LOOHJDO PHDQV 5XVVLDQ DJHQWV WUHVSDVVHG RQWR WKH '1 ¶V FRPSXWHU QHWZRUN LQ WKH 8QLWHG 6WDWHV DV ZHOO DV RWKHU HPDLO DFFRXQWV FROOHFWHG WUDGH VHFUHWV DQG RWKHU SULYDWH GDWD DQG WKHQ WUDQVPLWWHG WKH GDWD WR 'HIHQGDQW LNL HDNV ZKRVH IRXQGHU $VVDQJH VKDUHG WKH GHIHQGDQWV¶ FRPPRQ JRDO RI GDPDJLQJ WKH 'HPRFUDWLF SDUW LQ DGYDQFH RI WKH HOHFWLRQ 5XVVLD WKURXJK PLOLWDU LQWHOOLJHQFH 58 RIILFHU V SRVLQJ DV ³ XFFLIHU ´ KHUHLQDIWHU UHIHUUHG WR DV ³ 58 2SHUDWLYH ´ DQG WKURXJK LNL HDNV WKHQ GLVVHPLQDWHG WKH LQIRUPDWLRQ DW WLPHV ZKHQ LW ZRXOG EHVW VXLW WKH 7UXPS DPSDLJQ $V VWROHQ '1 LQIRUPDWLRQ ZDV VWUDWHJLFDOO UHOHDVHG LQWR WKH SXEOLF VSKHUH WKHQ FDQGLGDWH 7UXPS RSHQO SUDLVHG WKH LOOHJDO GLVVHPLQDWLRQV DQG HQFRXUDJHG 5XVVLD WR FRQWLQXH LWV YLRODWLRQV RI 8 6 ODZ WKURXJK LWV RQJRLQJ KDFNLQJ FDPSDLJQ DJDLQVW WKH 'HPRFUDWLF SDUW 29 59 2 7 2163 5$ 5XVVLD¶V F EHUDWWDFN RQ WKH '1 EHJDQ RQO ZHHNV DIWHU 7UXPS DQQRXQFHG KLV FDQGLGDF IRU 3UHVLGHQW RI WKH 8QLWHG 6WDWHV LQ -XQH RI $QG ZLWKLQ PRQWKV DOOLHG XURSHDQ LQWHOOLJHQFH VHUYLFHV EHJDQ UHSRUWLQJ VXVSLFLRXV FRPPXQLFDWLRQV EHWZHHQ 7UXPS DVVRFLDWHV DQG 5XVVLDQ RSHUDWLYHV WR WKHLU 8 6 FRXQWHUSDUWV Q ODWH ZKLOH FDPSDLJQLQJ IRU 3UHVLGHQW 7UXPS KLPVHOI VLJQHG D OHWWHU RI LQWHQW WR GHYHORS DQG OLFHQVH KLV QDPH WR D QHZ UHDO HVWDWH GHYHORSPHQW LQ 0RVFRZ²SRWHQWLDOO Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 7 of 66 IXOILOOLQJ D GHFDGHV ORQJ GUHDP 7KLV SURMHFW ZDV WR EH ILQDQFHG WKURXJK D 5XVVLDQ EDQN XQGHU VDQFWLRQ E WKH 8QLWHG 6WDWHV 7KH GHDO ZDV EURNHUHG E HOL 6DWHU D 5XVVLDQ pPLJUp FRQYLFWHG IHORQ DQG ORQJWLPH EXVLQHVV SDUWQHU RI 7UXPS Q H SODLQLQJ WKH GHDO WR 0LFKDHO RKHQ 7UXPS¶V SHUVRQDO DWWRUQH 6DWHU VXJJHVWHG WKDW KH ZRXOG JHW 5XVVLDQ 3UHVLGHQW 9ODGLPLU 9 3XWLQ ³3XWLQ´ WR VXSSRUW WKH SURMHFW LQ DQ HIIRUW WR ERRVW 7UXPS¶V HOHFWRUDO KRSHV ³ ZLOO JHW 3XWLQ RQ WKLV SURJUDP DQG ZH ZLOO JHW 'RQDOG HOHFWHG NQRZ KRZ WR SOD LW DQG ZH ZLOO JHW WKLV GRQH %XGG RXU ER FDQ EHFRPH 3UHVLGHQW RI WKH 86$ DQG ZH FDQ HQJLQHHU LW ZLOO JHW DOO RI 3XWLQV WHDP WR EX LQ RQ WKLV ZLOO ´ % HDUO 7UXPS ZDV ZHOO RQ KLV ZD WR EHFRPLQJ WKH IDYRULWH WR ZLQ WKH 23 QRPLQDWLRQ $V 7UXPS PRYHG FORVHU WR VHFXULQJ WKH QRPLQDWLRQ WKH WLHV EHWZHHQ KLV FDPSDLJQ DQG 5XVVLD¶V JRYHUQPHQW JUHZ VXEVWDQWLDOO Q HEUXDU UHWLUHG W HQ 0LFKDHO 7 O QQ EHJDQ VHUYLQJ DV DQ LQIRUPDO IRUHLJQ SROLF DGYLVRU WR WKH 7UXPS FDPSDLJQ -XVW PRQWKV HDUOLHU LQ 'HFHPEHU O QQ KDG EHHQ SDLG E WKH 5XVVLDQ JRYHUQPHQW IXQGHG SURSDJDQGD RXWOHW 5XVVLD 7RGD ³57´ WR DWWHQG DQG VSHDN DW LWV DQQLYHUVDU JDOD LQ 0RVFRZ ZKHUH KH GLQHG DW WKH VDPH WDEOH DV 3XWLQ Q 0DUFK 7UXPS KLUHG 0DQDIRUW ZKR KDG VSHQW WKH SUHYLRXV GHFDGH ZRUNLQJ WR DGYDQFH UHPOLQ LQWHUHVWV DV KLV FDPSDLJQ¶V FRQYHQWLRQ PDQDJHU YHQ DIWHU MRLQLQJ WKH 7UXPS FDPSDLJQ 0DQDIRUW PDLQWDLQHG FRQWDFW ZLWK DQ LQGLYLGXDO WLHG WR WKH 58 0DQDIRUW DOVR RIIHUHG WR EULHI D 3XWLQ FRQQHFWHG 5XVVLDQ UHJDUGLQJ WKH FDPSDLJQ Q $SULO DQRWKHU VHW RI 5XVVLDQ LQWHOOLJHQFH DJHQWV VXFFHVVIXOO KDFNHG LQWR WKH '1 $QG RQ $SULO 5XVVLDQ LQWHOOLJHQFH SUHSDUHG PDVVLYH DPRXQWV RI GDWD IRU H ILOWUDWLRQ IURP '1 VHUYHUV RXU GD V ODWHU RQ $SULO 7UXPS¶V IRUHLJQ SROLF DGYLVRU 3DSDGRSRXORV PHW ZLWK D UHPOLQ WLHG 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 ´ 3DSDGRSRXORV GLG QRW UHSRUW WKLV LQIRUPDWLRQ WR $PHULFDQ ODZ HQIRUFHPHQW 5DWKHU KH UHSRUWHG EDFN WR KLV VXSHULRUV DW WKH 7UXPS DPSDLJQ UHJDUGLQJ ³LQWHUHVWLQJ PHVVDJHV FRPLQJ LQ IURP 0RVFRZ DERXW D WULS ZKHQ WKH WLPH LV ULJKW ´ % -XQH 5XVVLD KDG VWROHQ WKRXVDQGV RI '1 GRFXPHQWV DQG HPDLOV 2Q -XQH 5XVVLDQV FRQQHFWHG WR WKH UHPOLQ FRQWDFWHG 'RQDOG 7UXPS -U WR RIIHU GDPDJLQJ LQIRUPDWLRQ DERXW WKH 'HPRFUDWLF SUHVLGHQWLDO QRPLQHH DV ³SDUW RI 5XVVLD DQG LWV JRYHUQPHQW¶V VXSSRUW IRU 0U 7UXPS ´ 7UXPS -U GLG QRWKLQJ WR DOHUW $PHULFDQ ODZ HQIRUFHPHQW 5DWKHU KH H SUHVVO HPEUDFHG WKH LOOHJDO SODQ UHVSRQGLQJ ³ ORYH LW HVSHFLDOO ODWHU LQ WKH VXPPHU ´ 2Q -XQH 7UXPS -U 0DQDIRUW DQG XVKQHU PHW ZLWK WKH 5XVVLDQV LQ 7UXPS 7RZHU 'D V ODWHU RQ -XQH 58 2SHUDWLYH ZLGHO GLVVHPLQDWHG D WURYH RI VWROHQ GRFXPHQWV WR WKH SXEOLF FODLPLQJ WKH ZHUH '1 PDWHULDO Q -XO WKH 23 KHOG LWV QDWLRQDO FRQYHQWLRQ $W WKH FRQYHQWLRQ WKH 7UXPS DPSDLJQ LQWHUYHQHG WR SUHYHQW RWKHU 5HSXEOLFDQV IURP LQVHUWLQJ DQWL 5XVVLDQ ODQJXDJH UHJDUGLQJ 8NUDLQH LQWR WKH 23 SODWIRUP 'D V ODWHU RQ -XO DOVR RQ WKH HYH RI WKH 'HPRFUDWLF 1DWLRQDO RQYHQWLRQ LNL HDNV EHJDQ GLVVHPLQDWLQJ VWROHQ '1 GRFXPHQWV LQFOXGLQJ HPDLOV DQG RWKHU VHQVLWLYH SURSULHWDU GRFXPHQWV WR WKH SXEOLF 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 FRQWLQXHG WR EUDJ DERXW KLV FRQWDFWV ZLWK $VVDQJH Q DGGLWLRQ GXULQJ WKLV WLPH DWHV ZKR VHUYHG 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 RPPLWWHH PDLQWDLQHG VHFUHW FRPPXQLFDWLRQ ZLWK DQ LQGLYLGXDO KH NQHZ WR EH FRQQHFWHG WR WKH 58 Q WKH VXPPHU DQG IDOO RI 6WRQH UHYHDOHG LQIRUPDWLRQ WKDW KH FRXOG QRW KDYH KDG XQOHVV KH ZHUH FRPPXQLFDWLQJ ZLWK HLWKHU LNL HDNV RU 5XVVLDQ RSHUDWLYHV DERXW WKHLU KDFNLQJ RSHUDWLRQV LQ WKH 8QLWHG 6WDWHV Q $XJXVW RI QRERG LQ WKH SXEOLF VSKHUH NQHZ WKDW 5XVVLD KDG VWROHQ HPDLOV IURP -RKQ 3RGHVWD WKH FKDLUPDQ RI 6HFUHWDU LOODU OLQWRQ¶V SUHVLGHQWLDO FDPSDLJQ 1HYHUWKHOHVV RQ $XJXVW 6WRQH SUHGLFWHG WKDW GDPDJLQJ LQIRUPDWLRQ DERXW 3RGHVWD ZRXOG EH UHOHDVHG WZHHWLQJ ³LW ZLOO VRRQ EH@ 3RGHVWD¶V WLPH LQ WKH EDUUHO ´ HHNV ODWHU LNL HDNV EHJDQ UHOHDVLQJ EDWFKHV RI 3RGHVWD¶V HPDLOV RQ D QHDU GDLO EDVLV XQWLO OHFWLRQ 'D ²DV 6WRQH KDG SUHGLFWHG 6LPLODUO LQ PLG 6HSWHPEHU 6WRQH VDLG WKDW KH H SHFWHG ³-XOLDQ $VVDQJH DQG WKH LNL HDNV SHRSOH WR GURS D SD ORDG RI QHZ GRFXPHQWV RQ LOODU OLQWRQ@ RQ D ZHHNO EDVLV IDLUO VRRQ ´ $QG EHJLQQLQJ RQ 2FWREHU LNL HDNV EHJDQ UHOHDVLQJ VWROHQ HPDLOV RQ D QHDU GDLO EDVLV²DV 6WRQH KDG SUHGLFWHG 7UXPS -U DOVR VHFUHWO FRPPXQLFDWHG ZLWK LNL HDNV Q RQH H FKDQJH 7UXPS -U ZDV RIIHUHG D SDVVZRUG WR DQ DQWL 7UXPS ZHEVLWH LNL HDNV DOVR DVNHG 7UXPS -U WR KDYH KLV IDWKHU UHWZHHW D OLQN WR LNL HDNV¶ WURYH RI VWROHQ HPDLOV LIWHHQ PLQXWHV ODWHU 7UXPS WZHHWHG D PHVVDJH DERXW WKH PHGLD¶V ODFN RI DWWHQWLRQ WR LNL HDNV¶ HPDLO UHOHDVHV 7KURXJKRXW WKH IDOO RI 7UXPS SUDLVHG WKH LOOHJDO GLVVHPLQDWLRQ RI '1 DQG RWKHU 'HPRFUDWLF GRFXPHQWV DW YDULRXV SRLQWV PDNLQJ LW D FHQWUDO WKHPH RI KLV VSHHFKHV DQG UDOOLHV QGHHG 7UXPS UHSHDWHGO SUDLVHG WKH LOOHJDO GLVVHPLQDWLRQV ZLWK H FODPDWLRQV VXFK DV ³ 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 UHDFWLRQ LQ 5XVVLD ZDV MXELODWLRQ ZLWK D PHPEHU RI 5XVVLD¶V SDUOLDPHQW DQQRXQFLQJ WR KLV IHOORZ OHJLVODWRUV ³ FRQJUDWXODWH RX DOO RQ WKLV ´ 7KH FRQVSLUDF FRQVWLWXWHG DQ DFW RI SUHYLRXVO XQLPDJLQDEOH WUHDFKHU WKH FDPSDLJQ RI WKH SUHVLGHQWLDO QRPLQHH RI D PDMRU SDUW LQ OHDJXH ZLWK D KRVWLOH IRUHLJQ SRZHU WR EROVWHU LWV RZQ FKDQFH WR ZLQ WKH 3UHVLGHQF $QG LQ FDUU LQJ RXW WKLV HIIRUW 'HIHQGDQWV FRQVSLUHG WR GLVVHPLQDWH GRFXPHQWV VWROHQ IURP WKH '1 LQ YLRODWLRQ RI WKH ODZV RI WKH 8QLWHG 6WDWHV DV ZHOO DV WKH ODZV RI WKH 6WDWH RI 9LUJLQLD DQG WKH 'LVWULFW RI ROXPELD 8QGHU WKH ODZV RI WKLV QDWLRQ 5XVVLD DQG LWV FR FRQVSLUDWRUV PXVW DQVZHU IRU WKHVH DFWLRQV '$0$ 6 72 7 '1 7KH LOOHJDO FRQVSLUDF LQIOLFWHG SURIRXQG GDPDJH XSRQ WKH '1 'HIHQGDQWV XQGHUPLQHG DQG GLVWRUWHG WKH '1 ¶V DELOLW WR FRPPXQLFDWH WKH SDUW ¶V YDOXHV DQG YLVLRQ WR WKH $PHULFDQ HOHFWRUDWH VRZHG GLVFRUG ZLWKLQ WKH 'HPRFUDWLF SDUW DW D WLPH ZKHQ SDUW XQLW ZDV HVVHQWLDO WR HOHFWRUDO VXFFHVV DQG VHULRXVO FRPSURPLVHG WKH '1 ¶V LQWHUQDO DQG H WHUQDO FRPPXQLFDWLRQV $W WKH VDPH WLPH 'HIHQGDQWV¶ FRQGXFW UHVXOWHG LQ D GUDPDWLF GURS LQ GRQDWLRQV WR WKH '1 7KH GLVVHPLQDWLRQ RI KDFNHG LQIRUPDWLRQ KHLJKWHQHG GRQRUV¶ FRQFHUQV WKDW FRQILGHQWLDO LQIRUPDWLRQ GLVFORVHG WKURXJK WKHLU FRQWULEXWLRQV PLJKW EH SXEOLFO GLVVHPLQDWHG 7KH '1 DOVR SDLG PRUH WKDQ D PLOOLRQ GROODUV WR UHSDLU DQG UHPHGLDWH HOHFWURQLF HTXLSPHQW DQG WR KLUH VWDII DQG FRQVXOWDQWV WR DGGUHVV WKH F EHU VHFXULW IDOORXW IURP WKH KDFN DQG GLVVHPLQDWLRQ LQDOO EHFDXVH WKH UHOHDVHV LQFOXGHG SHUVRQDO DQG LQ VRPH FDVHV SURWHFWHG LQIRUPDWLRQ DERXW '1 HPSOR HHV VRPH '1 HPSOR HHV ZHUH H SRVHG WR KDUDVVPHQW DQG GHDWK WKUHDWV 2QH UHSUHVHQWDWLYH HPDLO VDLG ³ KRSH DOO RXU FKLOGUHQ JHW UDSHG DQG PXUGHUHG KRSH Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 11 of 66 RXU IDPLO NQRZV QRWKLQJ EXW VXIIHULQJ WRUWXUH DQG GHDWK ´ 8QGHUVWDQGDEO WKLV KDUDVVPHQW LPSDLUHG WKH HPSOR HHV¶ DELOLW WR IXQFWLRQ HIIHFWLYHO LQ WKHLU MREV KLOH QR VXLW FDQ HYHU IXOO UHGUHVV WKH KDUP WKDW 'HIHQGDQWV¶ LOOHJDO FRQGXFW H DFWHG WKH '1 EULQJV WKLV ODZVXLW WR VHHN WKH IXOO PHDVXUH RI UHOLHI XQGHU WKH ODZV RI WKH 8QLWHG 6WDWHV $FFRUGLQJO 3ODLQWLII EULQJV WKLV DFWLRQ WR DGGUHVV WKH LQGLYLGXDO DQG FROOHFWLYH FRQGXFW RI 'HIHQGDQWV XQGHU WKH VWDWXWHV DQG FRPPRQ ODZ GLVFXVVHG KHUHLQ 3ODLQWLII LV HQWLWOHG WR UHOLHI IURP DOO WKRVH LQYROYHG LQ WKH VFKHPH -85 6' 7 21 $1' 9 18 7KLV RXUW KDV IHGHUDO TXHVWLRQ MXULVGLFWLRQ SXUVXDQW WR 8 6 † EHFDXVH WKLV DFWLRQ DULVHV XQGHU 8 6 † WKH RPSXWHU UDXG DQG $EXVH $FW 8 6 †† 5DFNHWHHU QIOXHQFHG DQG RUUXSW 2UJDQL DWLRQV $FW 8 6 †† WKH 6WRUHG RPPXQLFDWLRQV $FW 8 6 †† FRPPRQO UHIHUUHG WR DV WKH HGHUDO LUHWDS $FW 3XE 1R 6WDW WKH 'HIHQG 7UDGH 6HFUHWV $FW FRGLILHG LQ VFDWWHUHG VHFWLRQV RI 8 6 DQG 8 6 DQG 8 6 † HW VHT WKH 'LJLWDO 0LOOHQQLXP RS ULJKW $FW 7KLV RXUW KDV VXSSOHPHQWDO MXULVGLFWLRQ RYHU 3ODLQWLII¶V VWDWH ODZ FODLPV SXUVXDQW WR 8 6 † E 7KLV RXUW KDV MXULVGLFWLRQ RYHU WKH FODLPV DJDLQVW 5XVVLD DQG WKH 58 SXUVXDQW WR 8 6 † EHFDXVH 5XVVLD LV D IRUHLJQ VWDWH VHH 8 6 † D DQG WKH 58 LV DQ ³DJHQF RU LQVWUXPHQWDOLW ´ RI WKH VWDWH 8 6 † E 5XVVLD LV QRW HQWLWOHG WR VRYHUHLJQ LPPXQLW EHFDXVH WKH '1 ¶V FODLPV DULVH RXW RI 5XVVLD¶V WUHVSDVV RQWR WKH '1 ¶V SULYDWH VHUYHUV²D WRUWLRXV DFW FRPPLWWHG LQ WKH 8QLWHG 6WDWHV 6HH 8 6 † D Q DGGLWLRQ 5XVVLD FRPPLWWHG WKH WUHVSDVV LQ RUGHU WR VWHDO Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 12 of 66 WUDGH VHFUHWV DQG FRPPLW HFRQRPLF HVSLRQDJH WZR IRUPV RI FRPPHUFLDO DFWLYLW XQGHUWDNHQ LQ DQG GLUHFWO DIIHFWLQJ WKH 8QLWHG 6WDWHV 6HH LG † D 9HQXH LV SURSHU LQ WKLV RXUW XQGHU 8 6 † E EHFDXVH D VXEVWDQWLDO SDUW RI WKH HYHQWV JLYLQJ ULVH WR WKH FODLPV RFFXUUHG LQ 1HZ RUN LW 1 'HIHQGDQW 7UXPS DPSDLJQ QF LV KHDGTXDUWHUHG DW LIWK $YHQXH 1HZ RUN LW 1 'HIHQGDQW 'RQDOG - 7UXPS -U UHVLGHV LQ 1HZ RUN LW 1 DQG D VXEVWDQWLDO QXPEHU RI WKH PHHWLQJV DQG LQWHUDFWLRQV PDGH LQ IXUWKHUDQFH RI WKH FRQVSLUDF DW LVVXH ZHUH ORFDWHG LQ 1HZ RUN LW 1 9HQXH LV SURSHU IRU WKH FODLPV DULVLQJ XQGHU 5 2 SXUVXDQW WR 8 6 † D EHFDXVH 'HIHQGDQWV UHVLGH DUH IRXQG KDYH DJHQWV RU WUDQVDFW DIIDLUV LQ 1HZ RUN 1 3$57 6 3ODLQWLII '1 UHJLVWHUHG ZLWK WKH HGHUDO OHFWLRQ RPPLVVLRQ DV '1 6HUYLFHV RUS 'HP 1DW¶O RPPLWWHH LV D QDWLRQDO FRPPLWWHH DV WKDW WHUP LV GHILQHG E DQG XVHG LQ 8 6 † GHGLFDWHG WR HOHFWLQJ ORFDO VWDWH DQG QDWLRQDO FDQGLGDWHV²LQFOXGLQJ SUHVLGHQWLDO FDQGLGDWHV²RI WKH 'HPRFUDWLF 3DUW WR SXEOLF RIILFH 7R DFFRPSOLVK LWV PLVVLRQ WKH '1 DPRQJ RWKHU WKLQJV ZRUNV FORVHO ZLWK 'HPRFUDWLF SXEOLF RIILFLDOV DQG DVVLVWV VWDWH SDUWLHV DQG FDQGLGDWHV E FRQWULEXWLQJ PRQH PDNLQJ H SHQGLWXUHV RQ WKHLU EHKDOYHV DQG SURYLGLQJ DFWLYH VXSSRUW WKURXJK WKH GHYHORSPHQW RI SURJUDPV EHQHILWLQJ 'HPRFUDWLF FDQGLGDWHV 7KH '1 DOVR SODQV WKH 'HPRFUDWLF 3DUW ¶V SUHVLGHQWLDO QRPLQDWLQJ FRQYHQWLRQ DQG SURPRWHV WKH 'HPRFUDWLF 3DUW ¶V SODWIRUP 7KH '1 UHJXODUO FRQGXFWV LWV EXVLQHVV YLD HPDLO KRXVHG RQ VHFXUHG VHUYHUV W DOVR 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 ¶V WUDGH VHFUHWV 'HIHQGDQW 5XVVLD LV D IRUHLJQ VWDWH DV GHILQHG XQGHU WKH ODZV RI WKH 8QLWHG 6WDWHV 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 EHOLHI WKH 58 FUHDWHG WKH RQOLQH SVHXGRQ P ³ XFFLIHU ´ WR GLVVHPLQDWH VWROHQ GRFXPHQWV DQG LQIRUPDWLRQ 'HIHQGDQW 58 2SHUDWLYH LV WKH 5XVVLDQ LQWHOOLJHQFH RSHUDWLYH V ZKR XVHG WKH RQOLQH SVHXGRQ P ³ XFFLIHU ´ WR GLVVHPLQDWH VWROHQ GRFXPHQWV DQG LQIRUPDWLRQ 8SRQ LQIRUPDWLRQ DQG EHOLHI 58 2SHUDWLYH LV D 58 LQWHOOLJHQFH RIILFHU V ZRUNLQJ RXW RI 58 KHDGTXDUWHUV ORFDWHG RQ UL RGXERYR 6WUHHW LQ 0RVFRZ 5XVVLD 'HIHQGDQWV -RKQ 'RH DUH RWKHU 5XVVLDQ LQWHOOLJHQFH RIILFHUV RU DJHQFLHV ZKR SDUWLFLSDWHG LQ WKH FRQVSLUDF WR KDFN LQWR 3ODLQWLII¶V FRPSXWHUV DQG GLVVHPLQDWH VWROHQ GRFXPHQWV DQG LQIRUPDWLRQ 'HIHQGDQW $UDV $JDODURY LV DQ $ HUL ERUQ ROLJDUFK LQ 5XVVLD ZKR LV D FORVH DOO RI 3XWLQ 7UXPS ZRUNHG ZLWK $UDV $JDODURY ZKR VHUYHG DV D OLDLVRQ EHWZHHQ 7UXPS DQG 3XWLQ WR EULQJ WKH 0LVV 8QLYHUVH SDJHDQW WR 0RVFRZ LQ IRU ZKLFK $UDV $JDODURY SDLG 7UXPS PLOOLRQV RI GROODUV 'XULQJ 7UXPS¶V 1RYHPEHU WULS WR 5XVVLD KH DQG $UDV $JDODURY UHSRUWHGO DJUHHG RQ DQRWKHU GHDO WR H SORUH UHDO HVWDWH RSSRUWXQLWLHV LQ 5XVVLD WRJHWKHU $UDV $JDODURY UHSRUWHGO KDV ODQG UHVHUYHG LQ 5XVVLD IRU D 7UXPS EUDQGHG UHDO HVWDWH GHYHORSPHQW 'HIHQGDQW PLQ $JDODURY LV $UDV $JDODURY¶V VRQ PLQ $JDODURY LV D SRS VLQJHU DQG H HFXWLYH DW WKH IDPLO ¶V UHDO HVWDWH FRPSDQ H HVWDEOLVKHG D FORVH UHODWLRQVKLS ZLWK WKH 7UXPSV RYHU WKH FRXUVH RI WKHLU SDUWQHUVKLS RQ WKH 0LVV 8QLYHUVH SDJHDQW LNH KLV IDWKHU PLQ $JDODURY UHPDLQHG LQ FRQWDFW ZLWK 7UXPS DQG 7UXPS -U DIWHU DQG LQWR WKH FDPSDLJQ 7KH $JDODURYV ILJXUH SURPLQHQWO LQ WKH -XQH 7UXPS 7RZHU PHHWLQJ GHVFULEHG EHORZ Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 14 of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³57´ D WHOHYLVLRQ SURSDJDQGD RXWOHW IXQGHG E WKH 5XVVLDQ JRYHUQPHQW 'HIHQGDQW LNL HDNV LV DQ RUJDQL DWLRQ RI XQNQRZQ VWUXFWXUH WKDW RSHUDWHV D ZHEVLWH LNL HDNV RUJ RQ ZKLFK LW SXEOLVKHV OHDNHG RU VWROHQ FRQILGHQWLDO DQG FODVVLILHG LQIRUPDWLRQ WV UHJLVWHUHG DGGUHVV LV 3 2 %R 6DQ 0DWHR $ 'HIHQGDQW 7UXPS DPSDLJQ LV DQ $PHULFDQ QRW IRU SURILW FRUSRUDWLRQ IRUPHG DQG UHJLVWHUHG LQ 9LUJLQLD RQ -XQH WR VXSSRUW 7UXPS¶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¶V OLDLVRQ WR 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 UHSRUWHG WR KDYH ORQJ WLPH WLHV WR 5XVVLD DQG WR KDYH HQJDJHG LQ IUHTXHQW FRPPXQLFDWLRQ ZLWK LQGLYLGXDOV WLHG WR WKH 5XVVLDQ JRYHUQPHQW GXULQJ WKH FDPSDLJQ F FOH 'HIHQGDQW 7UXPS -U LV WKH ROGHVW VRQ RI 3UHVLGHQW RI WKH 8QLWHG 6WDWHV 'RQDOG - 7UXPS URP -XQH XQWLO 1RYHPEHU ZKHQ 'RQDOG - 7UXPS ZDV D 5HSXEOLFDQ FDQGLGDWH IRU SUHVLGHQW 7UXPS -U VHUYHG DV D IUHTXHQW VXUURJDWH IRU QRZ 3UHVLGHQW 7UXPS DQG KDV EHHQ GHVFULEHG DV ³D FORVH SROLWLFDO DGYLVRU WR KLV IDWKHU´ DQG D ³NH SOD HU LQ 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 3UHVLGHQW RI WKH 8QLWHG 6WDWHV 7UXPS -U UHVLGHV LQ 1HZ RUN LW 1HZ RUN 'HIHQGDQW 0DQDIRUW LV D ORQJ WLPH 5HSXEOLFDQ SROLWLFDO RSHUDWLYH ZKR ZDV RQYHQWLRQ 0DQDJHU RI WKH 7UXPS DPSDLJQ IURP 0DUFK WR 0D DQG DPSDLJQ KDLUPDQ RI WKH 7UXPS DPSDLJQ IURP 0D WR $XJXVW ZKHQ KH UHVLJQHG DPLG UHSRUWV RI KLV ZRUN ZLWK WKH IRUPHUO SUR 5XVVLDQ JRYHUQPHQW LQ 8NUDLQH 6LQFH 2FWREHU 0DQDIRUW KDV EHHQ LQGLFWHG RQ GR HQV RI FRXQWV LQFOXGLQJ PRQH ODXQGHULQJ DQG IDOVH VWDWHPHQWV UHODWHG WR KLV ZRUN IRU WKH SUR 5XVVLDQ JRYHUQPHQW LQ 8NUDLQH 0DQDIRUW UHVLGHV LQ 9LUJLQLD 'HIHQGDQW 6WRQH LV 7UXPS¶V ORQJ WLPH FRQILGDQW ³ @HZ SHRSOH JR DV IDU EDFN DV@ 7UXPS DQG@ 6WRQH ´ DQG 6WRQH KDV ³QXUWXUHG WKH GUHDP RI D 7UXPS@ SUHVLGHQWLDO UXQ IRU HDUV ´ 6WRQH DOVR KDV D ORQJ KLVWRU ZLWK 0DQDIRUW 0DQDIRUW KHOSHG UXQ 6WRQH¶V FDPSDLJQ IRU QDWLRQDO FKDLUPDQ RI WKH RXQJ 5HSXEOLFDQV LQ DQG WKH WZR FR IRXQGHG D FRQVXOWLQJ ILUP² %ODFN 0DQDIRUW 6WRQH DQG HOO ²LQ WKH V 8SRQ LQIRUPDWLRQ DQG EHOLHI 6WRQH VHUYHG DV DQ LQIRUPDO DGYLVHU WR 7UXPS DQG UHPDLQHG LQ FRQWDFW ZLWK KLP WKURXJKRXW WKH HOHFWLRQ 6WRQH UHVLGHV LQ ORULGD Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 16 of 66 'HIHQGDQW XVKQHU LV 7UXPS¶V VRQ LQ ODZ DQG ZDV D VHQLRU DGYLVRU WR DQG RQH RI WKH NH GHFLVLRQ PDNHUV IRU WKH 7UXPS DPSDLJQ Q -XQH XVKQHU ³WRRN RYHU DOO GDWD GULYHQ HIIRUWV´ IRU WKH FDPSDLJQ VHWWLQJ XS D SHUVRQ ³GDWD KXE´ LQ 6DQ $QWRQLR 7H DV DQG KLULQJ DPEULGJH $QDO WLFD D VRFLDO PHGLD DQG DQDO WLFV ILUP WR KHOS KLV IDWKHU LQ ODZ¶V FDPSDLJQ XVKQHU UHVLGHV LQ DVKLQJWRQ ' 'HIHQGDQW 3DSDGRSRXORV ZDV RQH RI WKH HDUOLHVW IRUHLJQ SROLF DGYLVRUV WR WKH 7UXPS FDPSDLJQ H EHFDPH D IRUHLJQ SROLF DGYLVHU WR WKH 7UXPS DPSDLJQ LQ 0DUFK 3DSDGRSRXORV ZDV LQ IUHTXHQW FRQWDFW ZLWK WKH 7UXPS DPSDLJQ¶V PRVW VHQLRU RIILFLDOV LQ WKH VXPPHU DQG IDOO RI H UHVLGHV LQ KLFDJR OOLQRLV 2Q 2FWREHU 3DSDGRSRXORV SOHDGHG JXLOW WR RQH FRXQW RI PDNLQJ D IDOVH VWDWHPHQW WR D IHGHUDO DJHQW 'HIHQGDQW DWHV LV D ORQJWLPH HPSOR HH DQG EXVLQHVV SDUWQHU RI 0DQDIRUW %HWZHHQ DQG DWHV ZDV FORVHO LQYROYHG LQ 0DQDIRUW¶V ZRUN IRU WKH IRUPHU SUR 5XVVLDQ UHJLPH LQ 8NUDLQH DQG LWV VXFFHVVRU SROLWLFDO SDUW %HWZHHQ 2FWREHU DQG HEUXDU DWHV ZDV LQGLFWHG RQ GR HQV RI FRXQWV LQFOXGLQJ PRQH ODXQGHULQJ DQG IDOVH VWDWHPHQWV UHODWHG WR KLV ZRUN ZLWK 0DQDIRUW IRU WKH SUR 5XVVLDQ JRYHUQPHQW LQ 8NUDLQH 2Q HEUXDU DWHV SOHDGHG JXLOW WR RQH FRXQW RI FRQVSLUDF DJDLQVW WKH 8QLWHG 6WDWHV DQG RQH FRXQW RI PDNLQJ D IDOVH VWDWHPHQW WR D IHGHUDO DJHQW DWHV UHVLGHV LQ 5LFKPRQG 9$ 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 $1 2 $5 6 3529 ' ' 57 5281' 25 5866 $ 75803 2163 5$ 7UXPS¶V DQG VHYHUDO 7UXPS $VVRFLDWHV¶ ORQJ VWDQGLQJ SHUVRQDO SURIHVVLRQDO DQG ILQDQFLDO WLHV WR 5XVVLD DQG QXPHURXV LQGLYLGXDOV FORVHO OLQNHG WR WKH 5XVVLDQ JRYHUQPHQW SURYLGHG IHUWLOH JURXQG IRU D FRQVSLUDF EHWZHHQ 'HIHQGDQWV WR LQWHUIHUH LQ WKH HOHFWLRQV 7UXPS¶V %XVLQHVV RQQHFWLRQV WR 5XVVLD $V HDUO DV WKH V WKH 6RYLHW 8QLRQ SDLG IRU 7UXPS WR WUDYHO WR 0RVFRZ WR GLVFXVV D SRWHQWLDO GHYHORSPHQW SURMHFW²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¶V 0LVV 8QLYHUVH SDJHDQW DQ DFWLRQ WKDW KDG QRW EHHQ WDNHQ VLQFH DW OHDVW Q 7UXPS VROG D 3DOP %HDFK ORULGD PDQVLRQ WR D 5XVVLDQ ROLJDUFK IRU D PLOOLRQ SURILW Q 7UXPS HVWDEOLVKHG D EXVLQHVV UHODWLRQVKLS ZLWK 5XVVLDQ ROLJDUFK $UDV $JDODURY D FORVH DOO RI 3XWLQ WR EULQJ WKH 0LVV 8QLYHUVH SDJHDQW WR 5XVVLD DQG ZRUN RQ SODQV WR GHYHORS D 7UXPS EUDQGHG SURMHFW LQ 0RVFRZ 7UXPS¶V HIIRUWV WR GHYHORS UHDO HVWDWH LQ 5XVVLD FRQWLQXHG LQWR WKH ILUVW PRQWKV RI WKH SUHVLGHQWLDO FDPSDLJQ $QG WKURXJKRXW WKLV HDU KLVWRU 7UXPS VRXJKW RXW ZHDOWK 5XVVLDQ EX HUV IRU KLV FRQGRPLQLXPV LQ WKH 8QLWHG 6WDWHV DQG DEURDG Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 18 of 66 $V 7UXPS -U H SODLQHG WKH 7UXPS 2UJDQL DWLRQ ³V DZ@ D ORW RI PRQH SRXULQJ LQ IURP 5XVVLD ´ DQG ³5XVVLDQV PDNH XS D SUHWW GLVSURSRUWLRQDWH FURVV VHFWLRQ RI RXU DVVHWV ´ $QG 7UXPS¶V VRQ ULF 7UXPS KDV UHSRUWHGO VWDWHG WKDW VXEVWDQWLDO IXQGLQJ IRU 7UXPS¶V JROI FRXUVHV FRPHV IURP 5XVVLDQ LQYHVWRUV 0DQDIRUW DQG DWHV¶ 8NUDLQLDQ RQQHFWLRQV URP XQWLO DW OHDVW 0DQDIRUW ZDV DQ DGYLVRU WR WKH 5XVVLDQ DOOLHG IRUPHU 8NUDLQLDQ 3UHVLGHQW 9LNWRU DQXNRY FK ³ DQXNRY FK´ DQG KLV UHPOLQ DOOLHG 3DUW RI 5HJLRQV DV ZHOO DV LWV VXFFHVVRU WKH 2SSRVLWLRQ %ORF Q 0DQDIRUW DOOHJHGO KHOSHG WKH 8NUDLQLDQ SDUW VHFUHWO URXWH DW OHDVW PLOOLRQ LQ SD PHQWV WR WZR SURPLQHQW DVKLQJWRQ OREE LQJ ILUPV 0DQDIRUW¶V WLHV WR DQXNRY FK DQG WKH 8NUDLQH DUH VR GHHS WKDW KLV RZQ GDXJKWHU KDV VWDWHG WKDW WKH ³PRQH ZH KDYH LV EORRG PRQH ´ $IWHU UHSHDWHGO GHQ LQJ WKDW KH KDG HYHU ZRUNHG IRU WKH 8NUDLQLDQ JRYHUQPHQW RQ -XQH 0DQDIRUW UHWURDFWLYHO UHJLVWHUHG DV D IRUHLJQ DJHQW DQG UHSRUWHG PLOOLRQ LQ SD PHQWV IURP DQXNRY FK¶V SDUW EHWZHHQ DQG 6LQFH 2FWREHU 0DQDIRUW KDV EHHQ LQGLFWHG RQ GR HQV RI FRXQWV LQFOXGLQJ PRQH ODXQGHULQJ DQG PDNLQJ IDOVH VWDWHPHQWV UHODWHG WR KLV ZRUN IRU WKH SUR 5XVVLDQ JRYHUQPHQW LQ 8NUDLQH $GGLWLRQDO ILQDQFLDO UHFRUGV LQGLFDWH WKDW 0DQDIRUW ZDV LQ GHEW WR 3XWLQ WLHG ROLJDUFK 2OHJ 'HULSDVND ³'HULSDVND´ E DV PXFK DV PLOOLRQ SULRU WR MRLQLQJ WKH 7UXPS DPSDLJQ 0DQDIRUW DOVR HPSOR HG RQVWDQWLQ LOLPQLN ³ LOLPQLN´ DV KLV FORVH DLGH LOLPQLN LV D IRUPHU OLQJXLVW LQ WKH 5XVVLDQ DUP ZKR LV EHOLHYHG WR EH DQ DJHQW RI WKH 58 DQG ZKRP WKH % EHOLHYHV PDLQWDLQHG WLHV WR 5XVVLDQ LQWHOOLJHQFH GXULQJ WKH 8 6 SUHVLGHQWLDO 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 EHWZHHQ WKHP DQG 'HULSDVND Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 19 of 66 DWHV ZDV LQ GLUHFW FRQWDFW ZLWK LOLPQLN ZKLOH VHUYLQJ DV D KLJK UDQNLQJ RIILFLDO RI WKH 7UXPS DPSDLJQ LQ DQG ZDV DZDUH WKDW LOLPQLN ZDV WLHG WR WKH 58 7 20021 385326 %2 67 5 75803 $1' ' 1 5$7 7 ' 02 5$7 3$57 120 1 7KH FRPPRQ SXUSRVH RI WKH FRQVSLUDF DPRQJ 5XVVLD DQG WKH 7UXPS $VVRFLDWHV ZDV WR EROVWHU 7UXPS¶V FDPSDLJQ IRU SUHVLGHQW WR LQMXUH WKH '1 DQG WR KDUP WKH 'HPRFUDWLF SDUW ¶V FKDQFHV IRU VXFFHVV LQ WKH SUHVLGHQWLDO HOHFWLRQ 7KLV FRPPRQ SXUSRVH VSUDQJ IURP PXOWLSOH ZHOO GRFXPHQWHG PRWLYHV Q 'HFHPEHU PDVVLYH SURWHVWV EURNH RXW LQ 5XVVLD LQ UHVSRQVH WR DOOHJDWLRQV RI YRWH ULJJLQJ DQG HOHFWLRQ IUDXG LQ WKH 5XVVLDQ SDUOLDPHQWDU HOHFWLRQV 7KRXVDQGV RI 5XVVLDQV WRRN WR WKH VWUHHWV WR SURWHVW WKH YLFWRU RI WKHQ 3ULPH 0LQLVWHU 3XWLQ¶V SROLWLFDO SDUW LQ RQH RI 5XVVLD¶V ODUJHVW SURWHVWV VLQFH WKH IDOO RI WKH 8 6 6 5 RQFHUQHG DERXW PDLQWDLQLQJ SRZHU DQG H HUWLQJ FRQWURO 3XWLQ ODVKHG RXW EODPLQJ WKH SURWHVWV RQ WKHQ 6HFUHWDU RI 6WDWH LOODU OLQWRQ 3XWLQ DVVHUWHG WKDW 6HFUHWDU OLQWRQ KDG ³VHW WKH WRQH IRU VRPH RI RXU DFWRUV LQ WKH FRXQWU DQG JDYH WKH VLJQDO ´ $QG KH DFFXVHG KHU RI RUGHULQJ WKH RSSRVLWLRQ PRYHPHQW LQWR DFWLRQ ³7KH KHDUG WKLV DQG ZLWK WKH VXSSRUW RI WKH 8 6 6WDWH 'HSDUWPHQW EHJDQ DFWLYH ZRUN ´ $W WKH VDPH WLPH 7UXPS OHIW QR GRXEW DV WR KLV YLHZV RQ 5XVVLD 3ULRU WR WKH FDPSDLJQ KH VSHQW QHDUO D GHFDGH HVSRXVLQJ SUR 5XVVLDQ DQG SUR 3XWLQ YLHZV SUDLVLQJ 3XWLQ DV ³GRLQJ D JUHDW MRE LQ UHEXLOGLQJ WKH LPDJH RI 5XVVLD´ VWDWLQJ WKDW KH ³UHDOO OLNH G@ 9ODGLPLU 3XWLQ DQG@ UHVSHFW HG@ KLP H GRHV KLV ZRUN ZHOO 0XFK EHWWHU WKDQ RXU %XVK´ DQG FKDUDFWHUL LQJ 3XWLQ¶V LOOHJDO DQQH DWLRQ RI ULPHD DV ³VR VPDUW $QG KH 3XWLQ@ UHDOO JRHV VWHS E VWHS E VWHS DQG RX KDYH WR JLYH KLP D ORW RI FUHGLW´ 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 H VDLG WKDW KH ZRXOG KDYH D ³JUHDW UHODWLRQVKLS ZLWK 3XWLQ´ DQG WKDW LW ZDV D ³JUHDW KRQRU WR EH VR QLFHO FRPSOLPHQWHG E 3XWLQ ZKR ZDV@ VR KLJKO UHVSHFWHG ZLWKLQ KLV RZQ FRXQWU DQG EH RQG ´ XUWKHU 7UXPS¶V VWDWHPHQWV²DV ZHOO DV WKH SUR 5XVVLDQ HQWRXUDJH ZLWK ZKLFK KH VXUURXQGHG KLPVHOI²OHIW OLWWOH GRXEW WKDW 7UXPS LI HOHFWHG SUHVLGHQW ZRXOG DGRSW SROLFLHV WKDW IDYRUHG 5XVVLD DQG 3XWLQ HYHQ LI WKRVH SROLFLHV FRQIOLFWHG ZLWK ORQJVWDQGLQJ 8 6 IRUHLJQ SROLF DQG WKH EHVW LQWHUHVWV RI WKH 8QLWHG 6WDWHV 7UXPS FDOOHG 1$72 ³REVROHWH´ DQG WKUHDWHQHG WR UHQHJH RQ 8 6 WUHDW REOLJDWLRQV DUJXHG WKDW WKH 8 6 VKRXOG QRW FRXQWHUDFW 5XVVLD¶V DWWHPSWV WR EH D JOREDO SRZHU VXSSRUWHG UHDW %ULWDLQ¶V H LW IURP WKH XURSHDQ 8QLRQ ZKLOH QRWLQJ WKDW LW ZRXOG ³SUREDEO ´ EHQHILW 3XWLQ DQG RSSRVHG 8 6 VDQFWLRQV IRU 5XVVLD¶V DQQH DWLRQ RI ULPHD VD LQJ ³7KH SHRSOH RI ULPHD IURP ZKDW ¶YH KHDUG ZRXOG UDWKHU EH ZLWK 5XVVLD WKDQ ZKHUH WKH ZHUH ´ 7KXV WKH 7UXPS DPSDLJQ 7UXPS $VVRFLDWHV DQG 5XVVLD VKDUHG WKH FRPPRQ SXUSRVH RI XQGHUPLQLQJ 6HFUHWDU OLQWRQ¶V FDQGLGDF XQGHUPLQLQJ WKH '1 DQG WKH 'HPRFUDWLF 3DUW DQG SURPRWLQJ 7UXPS ZKRVH SUHVLGHQF ZDV H SHFWHG WR EHQHILW 5XVVLD¶V SROLWLFDO DQG ILQDQFLDO LQWHUHVWV DQG LQ WXUQ EHQHILW 7UXPS¶V ILQDQFLDO LQWHUHVWV $VVDQJH DQG LNL HDNV DOVR VKDUHG D FRPPRQ SXUSRVH LQ XQGHUPLQLQJ 6HFUHWDU OLQWRQ¶V FDQGLGDF DQG SURPRWLQJ 7UXPS $VVDQJH KDG D ORQJ RI KLVWRU FRQIOLFWV ZLWK 6HFUHWDU OLQWRQ DQG $VVDQJH SXEOLFO VWDWHG WKDW KLV SROLF GLVDJUHHPHQWV ZLWK OLQWRQ ZRXOG PDNH KHU SUHVLGHQF IDU PRUH SUREOHPDWLF WKDQ D 7UXPS SUHVLGHQF Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 21 of 66 7 2163 5$ 72 ' 66 0 1$7 672 1 '1 '$7$ 72 $ ' 75803 Q D -DQXDU UHSRUW ³7KH 5HSRUW´ WKH 8 6 LQWHOOLJHQFH FRPPXQLW FRQFOXGHG ³5XVVLDQ 3UHVLGHQW 9ODGLPLU 3XWLQ RUGHUHG DQ LQIOXHQFH FDPSDLJQ LQ DLPHG DW WKH 86 SUHVLGHQWLDO HOHFWLRQ WKH FRQVLVWHQW JRDOV RI ZKLFK ZHUH WR XQGHUPLQH SXEOLF IDLWK LQ WKH 86 GHPRFUDWLF SURFHVV GHQLJUDWH 6HFUHWDU OLQWRQ DQG KDUP KHU HOHFWDELOLW DQG SRWHQWLDO SUHVLGHQF ´ XUWKHU WKH 5HSRUW FRQFOXGHG ³ Q -XO 5XVVLDQ LQWHOOLJHQFH JDLQHG DFFHVV WR 'HPRFUDWLF 1DWLRQDO RPPLWWHH '1 QHWZRUNV DQG PDLQWDLQHG WKDW DFFHVV XQWLO DW OHDVW -XQH ´ WKDW ³E 0D WKH 58 KDG H ILOWUDWHG ODUJH YROXPHV RI GDWD IURP WKH '1 ´ DQG WKDW WKH ³ 58 UHOD HG PDWHULDO LW DFTXLUHG IURP WKH '1 DQG VHQLRU 'HPRFUDWLF RIILFLDOV WR LNL HDNV ´ 7KLV RSHUDWLRQ WR LQILOWUDWH WKH '1 VHUYHUV DQG GLVVHPLQDWH VWROHQ '1 PDWHULDO ZDV FDUULHG RXW LQ WKH 8QLWHG 6WDWHV 5XVVLDQ RSHUDWLYHV WUHVSDVVHG RQWR FRPSXWHU VHUYHUV ORFDWHG LQ 9LUJLQLD DQG DVKLQJWRQ ' DQG VWROH LQIRUPDWLRQ ORFDWHG RQ WKRVH VHUYHUV W ZDV DOVR FDUULHG RXW LQ FRQFHUW ZLWK $VVDQJH DQG LNL HDNV DQG ZLWK WKH DFWLYH VXSSRUW DQG DSSURYDO RI WKH 7UXPS DPSDLJQ DQG WKH 7UXPS $VVRFLDWHV 7KH FRQVSLUDWRUV ZRUNHG LQ WDQGHP WR DFFRPSOLVK WKHLU JRDO 5XVVLD¶V LQWHOOLJHQFH VHUYLFHV LOOHJDOO KDFNHG LQWR WKH '1 ¶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¶V SUHVLGHQWLDO FDQGLGDF Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 22 of 66 $ 7UXPS $QQRXQFHV LV DQGLGDF IRU 3UHVLGHQW DQG 5XVVLD %HJLQV WV $WWDFN RQ WKH '1 RPSXWHU 6 VWHPV 2Q -XQH 7UXPS DQQRXQFHG KLV FDQGLGDF IRU 3UHVLGHQW RI WKH 8QLWHG 6WDWHV LQ WKH OREE RI 7UXPS 7RZHU % WKH QH W PRQWK 5XVVLD KDG XQGHUWDNHQ LWV F EHUDWWDFN RQ WKH '1 7KH KDFNV E 5XVVLDQ LQWHOOLJHQFH ZHUH GLUHFWHG DW V VWHPV LQ 9LUJLQLD DQG DVKLQJWRQ ' WKDW FRQWDLQHG VRPH RI WKH '1 ¶V PRVW VHQVLWLYH VWUDWHJLF DQG RSHUDWLRQDO GDWD DWHU WKH GLVFORVXUH RI WKLV VHQVLWLYH GDWD QRW RQO VLJQLILFDQWO GLVUXSWHG WKH HOHFWLRQ VWUDWHJ LPSOHPHQWHG E WKH '1 EXW DOVR LQWHUIHUHG GLUHFWO ZLWK WKH '1 ¶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²D ORQJWLPH JRDO RI 7UXPS % 2FWREHU WKH 7UXPS 2UJDQL DWLRQ KDG VHFXUHG D OHWWHU RI LQWHQW WR OLFHQVH 7UXPS¶V QDPH IRU WKH SURMHFW LQ 0RVFRZ 7UXPS VLJQHG WKH OHWWHU RI 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 ORQJWLPH EXVLQHVV DVVRFLDWH RI WKH 7UXPS 2UJDQL DWLRQ 7KH IXQGLQJ IRU WKH SURMHFW ZDV WR EH SURYLGHG E 9QHVKWRUJEDQN RU 97%²D 5XVVLDQ EDQN DJDLQVW ZKLFK WKH 8QLWHG 6WDWHV 7UHDVXU KDV OHYHOHG VDQFWLRQV 2Q 1RYHPEHU LQ DQ HPDLO WR RKHQ 6DWHU H SODLQHG KRZ WKLV SURMHFW ZRXOG SURPRWH 7UXPS¶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¶V IRUHLJQ SROLF WHDP 7KHUHDIWHU 3DSDGRSRXORV IUHTXHQWO FRPPXQLFDWHG ZLWK D SURIHVVRU EDVHG LQ RQGRQ QDPHG -RVHSK 0LIVXG Q KLV JXLOW SOHD 3DSDGRSRXORV DWWHVWHG WKDW KH ³XQGHUVWRRG WKDW WKH SURIHVVRU KDG VXEVWDQWLDO FRQQHFWLRQV WR KLJK OHYHO 5XVVLDQ JRYHUQPHQW RIILFLDOV ´ XUWKHU Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 24 of 66 3DSDGRSRXORV DGPLWWHG WKDW KH ³UHSHDWHGO VRXJKW WR XVH WKH SURIHVVRU V 5XVVLDQ FRQQHFWLRQV LQ DQ HIIRUW WR DUUDQJH D PHHWLQJ EHWZHHQ WKH FDPSDLJQ DQG 5XVVLDQ JRYHUQPHQW RIILFLDOV ´ $FFRUGLQJ WR 3DSDGRSRXORV¶ 6WDWHPHQW RI 2IIHQVH 0LIVXG ZDV LQLWLDOO ³XQLQWHUHVWHG´ LQ 3DSDGRSRXORV EXW ³DSSHDUHG WR WDNH JUHDW LQWHUHVW´ ZKHQ 3DSDGRSRXORV ZDV SXEOLFO QDPHG WR 7UXPS¶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³WKRXVDQGV RI HPDLOV´ WKDW FRXOG KDUP LOODU OLQWRQ¶V SUHVLGHQWLDO FDPSDLJQ 3DSDGRSRXORV XQGHUVWRRG WKDW 0LIVXG KDG PHW ZLWK 5XVVLDQ RIILFLDOV LQ 0RVFRZ ³LPPHGLDWHO SULRU´ WR UHOD LQJ WKLV LQIRUPDWLRQ Q D 1RYHPEHU LQWHUYLHZ ZLWK DQ WDOLDQ QHZVSDSHU 0LIVXG DFNQRZOHGJHG KLV FRQWDFWV ZLWK 3DSDGRSRXORV VWDWLQJ WKDW KH PHW ZLWK KLP ³WKUHH RU IRXU WLPHV´ DQG KHOSHG FRQQHFW KLP WR ³RIILFLDO DQG XQRIILFLDO VRXUFHV ´ 7KH 7UXPS DPSDLJQ ZDV DZDUH RI DQG HQFRXUDJHG WKHVH PHHWLQJV $IWHU PHHWLQJ ZLWK 0LIVXG DQG WKH 5XVVLDQ QDWLRQDO RQ 0DUFK 3DSDGRSRXORV UHSRUWHG EDFN WR WKH 7UXPS DPSDLJQ WKDW KLV FRQYHUVDWLRQ ZDV ³WR DUUDQJH D PHHWLQJ EHWZHHQ XV DQG WKH 5XVVLDQ OHDGHUVKLS WR GLVFXVV 8 6 5XVVLD WLHV XQGHU 3UHVLGHQW 7UXPS ´ QIRUPHG RI WKLV PHHWLQJ 7UXPS FDPSDLJQ 1DWLRQDO R KDLUPDQ 6DP ORYLV UHVSRQGHG WKDW KH ZRXOG ³ZRUN LW WKURXJK WKH FDPSDLJQ´ DQG DGGHG ³ UHDW ZRUN ´ Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 25 of 66 5XVVLD 6WHDOV 0DVVLYH 7URYH RI 'RFXPHQWV IURP WKH '1 DV 7UXPS $VVRFLDWH %UDJV $ERXW 6WROHQ 'RFXPHQWV 2Q $SULO 5XVVLD ODXQFKHG D VHFRQG SKDVH RI LWV F EHUDWWDFN RQ '1 VHUYHUV ORFDWHG LQ 9LUJLQLD DQG DVKLQJWRQ ' 7KLV DWWDFN ZDV H HFXWHG E 58 DJHQWV DQG WDUJHWHG WKH '1 ¶V UHVHDUFK GHSDUWPHQW GRFXPHQW UHSRVLWRULHV LQIRUPDWLRQ WHFKQRORJ GHSDUWPHQW DQG RWKHU GHSDUWPHQWV 8SRQ LQIRUPDWLRQ DQG EHOLHI KLJK UDQNLQJ 5XVVLDQ RIILFLDOV RUGHUHG WKH 58 DJHQWV WR LQILOWUDWH WKH '1 ¶V VHUYHUV DQG WKH DJHQWV ZHUH REOLJDWHG WR FDUU RXW WKDW RUGHU 2Q $SULO WKH 58 VWDJHG VHYHUDO JLJDE WHV RI '1 GDWD ORFDWHG RQ WKH '1 ¶V VHUYHUV IRU XQDXWKRUL HG DQG VXUUHSWLWLRXV H ILOWUDWLRQ²RU PRUH FRPPRQO WKHIW RXU GD V ODWHU RQ $SULO 3DSDGRSRXORV PHW DJDLQ ZLWK 5XVVLDQ DJHQW 0LIVXG $W WKH PHHWLQJ 0LIVXG LQIRUPHG 3DSDGRSRXORV WKDW WKH 5XVVLDQV ³KDYH GLUW RQ LOODU OLQWRQ@´ LQ WKH IRUP RI ³WKRXVDQGV RI HPDLOV ´ Q KLV JXLOW SOHD 3DSDGRSRXORV DWWHVWHG WKDW KH XQGHUVWRRG 0LIVXG KDG ³VXEVWDQWLDO FRQQHFWLRQV WR KLJK OHYHO JRYHUQPHQW RIILFLDOV´ DQG ³KDG PHW 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 $SULO ³ DYH VRPH LQWHUHVWLQJ PHVVDJHV FRPLQJ LQ IURP 0RVFRZ DERXW D WULS ZKHQ WKH WLPH LV ULJKW ´ H DOVR HPDLOHG 7UXPS DPSDLJQ 0DQDJHU RUH HZDQGRZVNL UHLWHUDWLQJ 5XVVLD¶V LQWHUHVW LQ KRVWLQJ 7UXPS $QG LQ 0D 3DSDGRSRXORV FRQILGHG WR DQ $XVWUDOLDQ GLSORPDW WKDW 5XVVLD KDG SROLWLFDOO GDPDJLQJ LQIRUPDWLRQ RQ 6HFUHWDU OLQWRQ 7KH $XVWUDOLDQ GLSORPDW UHSRUWHG WKLV WR 8 6 DXWKRULWLHV 7KLV H FKDQJH EHWZHHQ 3DSDGRSRXORV DQG WKH $XVWUDOLDQ GLSORPDW SURPSWHG WKH % WR ODXQFK LWV FRXQWHULQWHOOLJHQFH LQYHVWLJDWLRQ LQWR FRQWDFWV EHWZHHQ 5XVVLD DQG WKH 7UXPS FDPSDLJQ Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 26 of 66 7KURXJKRXW WKH FDPSDLJQ DW OHDVW XQWLO PLG $XJXVW 3DSDGRSRXORV FRQWLQXHG WR KDYH FRPPXQLFDWLRQV ZLWK 5XVVLDQ QDWLRQDOV DQG FRQWLQXHG WR UHSRUW WKRVH FRPPXQLFDWLRQV WR 7UXPS DPSDLJQ RIILFLDOV ZKR HQFRXUDJHG KLP WR VHW XS DQ RII WKH UHFRUG PHHWLQJ ZLWK 5XVVLDQ RIILFLDOV RQ EHKDOI RI WKH FDPSDLJQ Q 2FWREHU 3DSDGRSRXORV SOHDGHG JXLOW WR O LQJ DERXW WKHVH FRPPXQLFDWLRQV ZLWK 5XVVLDQ QDWLRQDOV ROORZLQJ WKHLU LQLWLDO DFFHVV IRU PRQWKV 5XVVLDQ LQWHOOLJHQFH DJHQFLHV PDLQWDLQHG DQ XQDXWKRUL HG SUHVHQFH LQ '1 VHUYHUV ORFDWHG LQ WKH 8QLWHG 6WDWHV % 0D 5XVVLD KDG VWROHQ D ODUJH DPRXQW RI VHQVLWLYH GDWD IURP WKH '1 LQFOXGLQJ GRQRU LQIRUPDWLRQ RSSRVLWLRQ UHVHDUFK LQIRUPDWLRQ UHJDUGLQJ SODQQHG SROLWLFDO DFWLYLWLHV DQG WKRXVDQGV RI SULYDWH FRQILGHQWLDO HPDLOV 7KH '1 'LVFRYHUV WKH DFN DQG LUHV URZG6WULNH 2Q $SULO '1 7 VWDII GHWHFWHG DQG XOWLPDWHO FRQILUPHG DFFHVV WR WKH '1 QHWZRUN E XQDXWKRUL HG XVHUV 8SRQ GLVFRYHULQJ WKH LQWUXVLRQ WKH '1 FRQWDFWHG URZG6WULNH 6HUYLFHV QF ³ URZG6WULNH´ D F EHUVHFXULW WHFKQRORJ ILUP WR LQYHVWLJDWH WKH DWWDFN DVVHVV WKH GDPDJH GRQH WR WKH '1 ¶V FRPSXWHUV DQG VHUYHUV DQG DVVLVW WKH '1 LQ LWV UHPHGLDWLRQ HIIRUWV 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¶ FRPSXWHU V VWHP DQG WR DOHUW WKH '1 WR IXWXUH DWWDFNV $V D UHVXOW RI WKH SHUVLVWHQFH RI WKH 5XVVLDQ VWDWH VSRQVRUHG LQILOWUDWLRQ LQ RUGHU WR UHPRYH WKH XQDXWKRUL HG XVHUV IURP LWV QHWZRUN WKH '1 ZDV UHTXLUHG WR GHFRPPLVVLRQ PRUH WKDQ VHUYHUV UHPRYH DQG UHLQVWDOO DOO VRIWZDUH LQFOXGLQJ WKH RSHUDWLQJ V VWHPV IRU PRUH WKDQ FRPSXWHUV DQG UHEXLOG DW OHDVW VHUYHUV Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 27 of 66 RUHQVLF YLGHQFH RQILUPV 5XVVLD¶V $WWDFN RQ WKH '1 ¶V 1HWZRUN %RWK URZG6WULNH¶V IRUHQVLF DQDO VLV DQG WKH 8 6 RYHUQPHQW FRQFOXGHG WKDW WKH '1 ¶V FRPSXWHU V VWHPV KDG EHHQ KDFNHG E WZR LQGHSHQGHQW VRSKLVWLFDWHG 5XVVLDQ VWDWH VSRQVRUHG DGYHUVDULHV ERWK ZLWK D QH XV WR 5XVVLD¶V LQWHOOLJHQFH VHUYLFHV 7KH IRUHQVLF DQDO VWV WUDFNHG WKH KDFNLQJ DFWLYLWLHV RI WKHVH DGYHUVDULHV E DVVLJQLQJ WKHP FRGH QDPHV ³ R %HDU´ DQG ³ DQF %HDU ´ ZKLFK FRUUHVSRQG WR WKH PRUH ZLGHO XVHG QDPHV $GYDQFHG 3HUVLVWHQW 7KUHDW $37 DQG $GYDQFHG 3HUVLVWHQW 7KUHDW $37 UHVSHFWLYHO 7KH 5HSRUW FRQFOXGHG WKDW ³ DQF %HDU´ ZDV DFWLQJ DV DQ DJHQW RI WKH 58 RUHQVLF DQDO VLV IRXQG HYLGHQFH WKDW R %HDU KDG LQILOWUDWHG DQG UHPDLQHG SUHVHQW LQ WKH '1 ¶V QHWZRUN VLQFH DW OHDVW -XO 7KH 5HSRUW VLPLODUO FRQFOXGHG WKDW WKH 5XVVLDQ LQWHOOLJHQFH ILUVW JDLQHG DFFHVV WR WKH '1 QHWZRUN LQ -XO URZG6WULNH DOVR GHWHUPLQHG WKDW R %HDU XVHG WKH VWROHQ FUHGHQWLDOV RI XVHU DFFRXQWV WR DFFHVV WKH '1 ¶V FRPSXWHU V VWHPV URZG6WULNH GHWHUPLQHG WKDW WKH REMHFWLYH RI WKH R %HDU DFWRU ZDV WR DFFHVV DQG FROOHFW LQIRUPDWLRQ IURP '1 V VWHPV WKDW ZHUH SULPDULO XVHG IRU FRPPXQLFDWLRQV 7KH DQDO VLV LGHQWLILHG R %HDU PDOZDUH LQ '1 V VWHPV SURYLGLQJ HPDLO HPDLO VXSSRUW EDFNXS VHUYHUV YRLFHRYHU LQWHUQHW SURWRFRO DQG FKDW 7KH 8 6 RYHUQPHQW FRQFOXGHG WKDW R %HDU ZDV DQ RSHUDWLYH RI RU DVVRFLDWHG ZLWK 5XVVLDQ LQWHOOLJHQFH 7KH '1 ILUVW GHWHFWHG WKH LQILOWUDWLRQ RI WKH 58 RU ³ DQF %HDU ´ LQ LWV QHWZRUN RQ $SULO URZG6WULNH GHWHUPLQHG WKDW WKH 58¶V REMHFWLYH ZDV WR FROOHFW LQIRUPDWLRQ DERXW WKH '1 ¶V SROLWLFDO DQG UHVHDUFK DFWLYLWLHV Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 28 of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¶V FRPSXWHU V VWHPV Q DGGLWLRQ IRUHQVLF DQDO VLV VKRZHG WKDW WKH KDFNHUV DFFHVVHG WKH '1 ¶V 9RLFH RYHU QWHUQHW 3URWRFRO ³92 3´ WUDQVIHUV SHUPLWWLQJ WKHP WR PRQLWRU YRLFH EDVHG FRPPXQLFDWLRQV VXFK DV SKRQH FDOOV DQG YRLFHPDLO 2Q LQIRUPDWLRQ DQG EHOLHI WKH KDFNHUV LQWHUFHSWHG RU HQGHDYRUHG WR LQWHUFHSW HPDLOV DQG YRLFH EDVHG FRPPXQLFDWLRQV ZKLOH LQ WKH '1 VHUYHUV 5XVVLDQV 2IIHU WR $VVLVW 7UXPS²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ase 1 18-cv-03501 Document 1 Filed 04 20 18 Page 29 of 66 RIIHUHG WR SURYLGH WKH 7UXPS FDPSDLJQ ZLWK VRPH RIILFLDO GRFXPHQWV DQG LQIRUPDWLRQ WKDW ZRXOG LQFULPLQDWH LOODU DQG KHU GHDOLQJV ZLWK 5XVVLD DQG ZRXOG EH YHU XVHIXO WR RXU IDWKHU 7KLV LV REYLRXVO YHU KLJK OHYHO DQG VHQVLWLYH LQIRUPDWLRQ EXW LV SDUW RI 5XVVLD DQG LWV JRYHUQPHQW¶V VXSSRUW IRU 0U 7UXPS ± KHOSHG DORQJ E $UDV DQG PLQ PSKDVLV DGGHG 6HYHQWHHQ PLQXWHV ODWHU 7UXPS -U UHVSRQGHG 7KDQNV 5RE DSSUHFLDWH WKDW DP RQ WKH URDG DW WKH PRPHQW EXW SHUKDSV ZLOO@ MXVW VSHDN WR PLQ ILUVW 6HHPV ZH KDYH VRPH WLPH DQG LI LW¶V ZKDW RX VD ORYH LW HVSHFLDOO ODWHU LQ WKH VXPPHU PSKDVLV DGGHG 2Q -XQH VKRUWO DIWHU WKH PHHWLQJ EHWZHHQ WKH 5XVVLDQV DQG 7UXPS $VVRFLDWHV ZDV VHW 7UXPS -U HPDLOHG ³ UHDW W ZLOO OLNHO EH 3DXO 0DQDIRUW FDPSDLJQ ERVV P EURWKHU LQ ODZ DQG PH LIWK $YH WK 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 $VVRFLDWHV WRRN SODFH 7KH 7UXPS DPSDLJQ ZDV UHSUHVHQWHG E 7UXPS¶V LQQHU FLUFOH 7UXPS -U XVKQHU DQG 0DQDIRUW 5HSUHVHQWLQJ 5XVVLD¶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ase 1 18-cv-03501 Document 1 Filed 04 20 18 Page 30 of 66 IDOVHO VWDWHG ³ HUWDLQO QRQH WKDW ZDV UHSUHVHQWLQJ WKH FDPSDLJQ LQ DQ ZD VKDSH RU IRUP ´ 0RQWKV ODWHU LQ -XO ZKHQ FRQIURQWHG ZLWK OLPLWHG LQIRUPDWLRQ DERXW WKH -XQH PHHWLQJ 7UXPS -U UHOHDVHG D VHULHV RI IDOVH VWDWHPHQWV WKDW PLVFKDUDFWHUL HG DQG RPLWWHG NH IDFWV DERXW 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 $FFRUGLQJ WR QHZV UHSRUWV 7UXPS KHOSHG FUDIW WKH ILUVW RI WKHVH PLVOHDGLQJ VWDWHPHQWV DIWHU UHMHFWLQJ DQ LQLWLDO DWWHPSW WR IXOO GLVFORVH WKH QDWXUH RI WKH -XQH PHHWLQJ ROORZLQJ 7UXPS 7RZHU 0HHWLQJ 5XVVLD DXQFKHV D 0DVVLYH 3XEOLF 'LVVHPLQDWLRQ RI 6WROHQ '1 'RFXPHQWV 7KH ILUVW SXEOLF GLVFORVXUH WKDW WKH 5XVVLDQV ZHUH LQWHUIHULQJ LQ WKH HOHFWLRQ RFFXUUHG RQ -XQH ZKHQ WKH '1 SXEOLFO DQQRXQFHG WKDW LWV V VWHPV KDG EHHQ KDFNHG E 5XVVLDQ LQWHOOLJHQFH DJHQFLHV 7KH QH W GD RQ -XQH 58 2SHUDWLYH FODLPHG UHVSRQVLELOLW IRU WKH '1 KDFN DQG OHDNHG D '1 DXWKRUHG RSSRVLWLRQ UHVHDUFK UHSRUW RQ 7UXPS IURP 'HFHPEHU 58 2SHUDWLYH DOVR GLVFORVHG WKDW KH KDG JLYHQ '1 GRFXPHQWV WR LNL HDNV 7KH VWUDWHJLF GLVVHPLQDWLRQ RI '1 GRFXPHQWV E WKH 58 FRQWLQXHG XQDEDWHG WKURXJK DW OHDVW -XQH DQG HDUO -XO LQFOXGLQJ D 2Q -XQH 58 2SHUDWLYH UHOHDVHG D EDWFK RI VWROHQ '1 GRFXPHQWV DERXW 6HFUHWDU OLQWRQ RQH GD DIWHU 7UXPS ILUHG RUH HZDQGRZVNL RQ -XQH E 2Q -XQH 58 2SHUDWLYH UHOHDVHG VWROHQ '1 GRFXPHQWV WR WKH SXEOLF LQFOXGLQJ UHVHDUFK RQ 5HSXEOLFDQ FDQGLGDWHV DQG 6HFUHWDU OLQWRQ F 2Q -XO 58 2SHUDWLYH UHOHDVHG VWROHQ '1 GRFXPHQWV LQFOXGLQJ '1 VWUDWHJ GRFXPHQWV UHODWHG WR WKH '1 ¶V ³FRXQWHU FRQYHQWLRQ´ WR WKH 51 FRQYHQWLRQ 7KLV ZDV RQH GD DIWHU % 'LUHFWRU -DPHV RPH DQQRXQFHG WKDW QR FULPLQDO FKDUJHV ZRXOG EH EURXJKW DJDLQVW 6HFUHWDU OLQWRQ IRU PDLQWDLQLQJ D SULYDWH HPDLO VHUYHU GXULQJ KHU WLPH DW WKH 6WDWH 'HSDUWPHQW Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 31 of 66 - 7KH 7UXPS DPSDLJQ %ORFNV $QWL 5XVVLDQ DQJXDJH IURP %HLQJ $GGHG WR WKH 23 3ODWIRUP 2Q -XO GXULQJ WKH 5HSXEOLFDQ 1DWLRQDO RQYHQWLRQ PHPEHUV RI WKH 7UXPS FDPSDLJQ LQWHUYHQHG WR SUHYHQW WKH 5HSXEOLFDQ 1DWLRQDO RPPLWWHH V IRUHLJQ SROLF SODWIRUP FRPPLWWHH IURP DPHQGLQJ WKH GUDIW SODWIRUP WR LQFOXGH D FDOO IRU WKH 8QLWHG 6WDWHV WR 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´ WR 8NUDLQH -XVW GD V EHIRUH WKH 7UXPS FDPSDLJQ VRIWHQHG WKH SODWIRUP¶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ase 1 18-cv-03501 Document 1 Filed 04 20 18 Page 32 of 66 KDFNLQJ ³5XVVLD LI RX¶UH OLVWHQLQJ KRSH RX¶UH DEOH WR ILQG WKH HPDLOV WKDW DUH PLVVLQJ ´ H WKHQ SUHGLFWHG JUHDW UHZDUGV ZRXOG FRPH WR 5XVVLD LI WKDW RFFXUUHG VWDWLQJ ³ WKLQN RX ZLOO SUREDEO EH UHZDUGHG PLJKWLO E RXU SUHVV HW¶V VHH LI WKDW KDSSHQV ´ 7UXPS $VVRFLDWHV 6HFUHWO RPPXQLFDWH ZLWK 5XVVLDQ $JHQWV DQG LNL HDNV DV 7KH 6WUDWHJLFDOO 5HOHDVH 6WROHQ '1 'RFXPHQWV 7KH XQDXWKRUL HG UHOHDVH RI GRFXPHQWV IURP '1 VHUYHUV E 5XVVLD WKURXJK LNL HDNV DQG 58 2SHUDWLYH WKURXJK WKH RQOLQH SHUVRQD ³ XFFLIHU ´ FRQWLQXHG XQWLO 1RYHPEHU ZLWK D FULWLFDO LQFUHDVH LQ WKH YROXPH DQG GDPDJLQJ QDWXUH RI WKHVH UHOHDVHV DV WKH JHQHUDO HOHFWLRQ EHJDQ URP -XQH WR 2FWREHU WKH 58 DQG 58 2SHUDWLYH WKURXJK WKH RQOLQH SHUVRQD ³ XFFLIHU ´ V VWHPDWLFDOO UHOHDVHG VWROHQ GRFXPHQWV IURP WKH '1 RQ D UHJXODU EDVLV 0DQ RI WKH GLVFORVXUHV ZHUH WLPHG WR GLYHUW DWWHQWLRQ IURP DGYHUVH SXEOLFLW DERXW WKH 7UXPS FDPSDLJQ DQG WR REVFXUH SRVLWLYH QHZV DERXW WKH OLQWRQ FDPSDLJQ DQG '1 DFWLYLWLHV ± VHUYLQJ WKH FRPPRQ LQWHUHVWV RI WKH 7UXPS $VVRFLDWHV 5XVVLD DQG LNL HDNV %HJLQQLQJ LQ WKH VSULQJ RI 7UXPS¶V ORQJWLPH IULHQG DQG SROLWLFDO DGYLVRU 5RJHU 6WRQH UHYHDOHG RQ PXOWLSOH RFFDVLRQV WKDW KH ZDV LQ FRQWDFW ZLWK $VVDQJH DQG LNL HDNV DV ZHOO DV 58 2SHUDWLYH DERXW LQIRUPDWLRQ LQ WKHLU SRVVHVVLRQ WKDW ZRXOG EH GDPDJLQJ WR WKH OLQWRQ FDPSDLJQ WR SURPLQHQW PHPEHUV RI WKH 'HPRFUDWLF 3DUW DQG WR OLQWRQ FDPSDLJQ FKDLUPDQ -RKQ 3RGHVWD 0DQ RI WKHVH UHSRUWV IURP 6WRQH RFFXUUHG ZHOO EHIRUH LW ZDV SXEOLFO NQRZQ WKDW WKH '1 ¶V FRPSXWHU V VWHPV DQG 3RGHVWD¶V HPDLOV KDG EHHQ KDFNHG E WKH VDPH 5XVVLDQ LQWHOOLJHQFH HQWLWLHV 2Q $XJXVW VSHDNLQJ WR D ORFDO 5HSXEOLFDQ 3DUW JURXS LQ ORULGD 6WRQH SUHGLFWHG WKH IXWXUH GLVFORVXUH RI KDFNHG PDWHULDOV ³ KDYH DFWXDOO FRPPXQLFDWHG ZLWK $VVDQJH Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 33 of 66 EHOLHYH WKH QH W WUDQFKH RI KLV GRFXPHQWV SHUWDLQ WR WKH OLQWRQ RXQGDWLRQ EXW WKHUH¶V QR WHOOLQJ ZKDW WKH 2FWREHU VXUSULVH PD EH ´ 2Q $XJXVW 6WRQH VDLG WKDW KH EHOLHYHG $VVDQJH KDG HPDLOV EHORQJLQJ WR 6HFUHWDU OLQWRQ 7KDW VDPH GD 58 2SHUDWLYH GLVVHPLQDWHG DQRWKHU VHW RI VWROHQ GRFXPHQWV ± WKLV WLPH FRQWDLQLQJ SHUVRQDO LQIRUPDWLRQ DERXW 'HPRFUDWLF FDQGLGDWHV 6KRUWO WKHUHDIWHU RQ $XJXVW 58 2SHUDWLYH WZHHWHG DW 6WRQH ³7KDQNV WKDW X EHOLHYH LQ WKH UHDO XFFLIHU ´ $OVR RQ $XJXVW 58 2SHUDWLYH UHOHDVHG GRFXPHQWV VWROHQ IURP RWKHU 'HPRFUDWLF HQWLWLHV LQFOXGLQJ VWUDWHJ PHPRV IRU ILYH RXVH UDFHV LQ ORULGD 7KHVH GRFXPHQWV ZHUH UHOHDVHG MXVW GD V EHIRUH OHJLVODWLYH SULPDULHV LQ WKH NH EDWWOHJURXQG VWDWH RI ORULGD %HJLQQLQJ RQ $XJXVW 6WRQH EHJDQ VHFUHWO FRPPXQLFDWLQJ ZLWK 58 2SHUDWLYH 2Q $XJXVW 58 2SHUDWLYH WZHHWHG WR 6WRQH ³SOHDVH WHOO PH LI L FDQ KHOS X DQ KRZ LW ZRXOG EH D JUHDW SOHDVXUH WR PH ´ 2Q $XJXVW DPLGVW KLV FRPPXQLFDWLRQV ZLWK $VVDQJH DQG 5XVVLDQ LQWHOOLJHQFH 6WRQH SURSKHVL HG WKH IXWXUH GLVVHPLQDWLRQ RI 3RGHVWD¶V HPDLOV WZHHWLQJ ³7UXVW PH LW ZLOO VRRQ EH@ 3RGHVWD¶V WLPH LQ WKH EDUUHO ´ 7KHUH KDG EHHQ QR SXEOLF GLVFORVXUH WKDW 3RGHVWD¶V HPDLOV KDG EHHQ KDFNHG DW WKDW WLPH Q PLG 6HSWHPEHU 6WRQH DFFXUDWHO SUHGLFWHG RQ %RVWRQ HUDOG 5DGLR WKDW KH H SHFWHG ³-XOLDQ $VVDQJH DQG WKH LNL HDNV SHRSOH WR GURS D SD ORDG RI QHZ GRFXPHQWV RQ LOODU RQ D ZHHNO EDVLV IDLUO VRRQ ´ % 6HSWHPEHU 7UXPS -U ZDV VHFUHWO FRPPXQLFDWLQJ ZLWK LNL HDNV DV ZHOO 7KURXJK WKHVH FRPPXQLFDWLRQV LNL HDNV SURYLGHG 7UXPS -U ZLWK D SDVVZRUG WR DQ DQWL 7UXPS 3$ ZHEVLWH DQG DVNHG 7UXPS -U WR KDYH KLV IDWKHU UHWZHHW D OLQN WR D 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 SLFN XS E WKH GLVKRQHVW PHGLD RI LQFUHGLEOH LQIRUPDWLRQ SURYLGHG E LNLOHDNV 6R GLVKRQHVW 5LJJHG V VWHP ´ 2Q 2FWREHU 6WRQH VWDWHG RQ 7ZLWWHU ³ HGQHVGD # LOODU OLQWRQ LV GRQH LNL HDNV ´ $QG RQ 2FWREHU 6WRQH UHLWHUDWHG WKDW KH ZDV FRQILGHQW LNL HDNV ZRXOG FRQWLQXH GLVVHPLQDWLQJ KDFNHG PDWHULDOV ³ KDYH WRWDO FRQILGHQFH WKDW #ZLNLOHDNV DQG P KHUR -XOLDQ $VVDQJH ZLOO HGXFDWH WKH $PHULFDQ SHRSOH VRRQ ´ RXU GD V ODWHU RQ 2FWREHU ²DQG MXVW RQH KRXU DIWHU WKH UHOHDVH RI WKH LQIDPRXV ROO ZRRG $FFHVV UHFRUGLQJ LQ ZKLFK 7UXPS DGPLWWHG WR VH XDOO DVVDXOWLQJ ZRPHQ² LNL HDNV UHOHDVHG HPDLOV VWROHQ IURP 3RGHVWD LNL HDNV FRQWLQXHG WR UHOHDVH GRFXPHQWV VWROHQ IURP 3RGHVWD RQ D QHDU GDLO EDVLV XQWLO 1RYHPEHU ± MXVW DV 6WRQH KDG SUHGLFWHG 0 7UXPS 3XEOLFO 3UDLVHV WKH OOHJDO 'LVVHPLQDWLRQ RI 6WROHQ '1 'RFXPHQWV 7UXPS UHSHDWHGO ODXGHG WKH GLVFORVXUH RI GRFXPHQWV VWROHQ E WKH 5XVVLDQV DQG HQFRXUDJHG WKH PHGLD DQG YRWHUV WR SD PRUH DWWHQWLRQ WR WKH OHDNV 2Q -XO 7UXPS WZHHWHG ³7KH 'HPRFUDWV DUH LQ D WRWDO PHOWGRZQ EXW WKH ELDVHG PHGLD ZLOO VD KRZ JUHDW WKH DUH GRLQJ PDLOV VD WKH ULJJHG V VWHP LV DOLYH ZHOO ´ 2Q -XO 7UXPS WZHHWHG ³ I WKH 5HSXEOLFDQ RQYHQWLRQ KDG EORZQ XS ZLWK H PDLOV UHVLJQDWLRQ RI ERVV DQG WKH EHDW GRZQ RI D ELJ SOD HU %HUQLH PHGLD ZRXOG JR ZLOG @´ 2Q -XO 7UXPS WZHHWHG ³7KH QHZ MRNH LQ WRZQ LV WKDW 5XVVLD OHDNHG WKH GLVDVWURXV '1 H PDLOV ZKLFK VKRXOG QHYHU KDYH EHHQ ZULWWHQ VWXSLG EHFDXVH 3XWLQ OLNHV PH ´ 2Q 2FWREHU 7UXPS WZHHWHG ³9HU OLWWOH SLFN XS E WKH GLVKRQHVW PHGLD RI LQFUHGLEOH LQIRUPDWLRQ SURYLGHG E LNL HDNV 6R GLVKRQHVW 5LJJHG V VWHP ´ Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 35 of 66 6LPLODUO RQ 2FWREHU 7UXPS -U WZHHWHG ³ RU WKRVH ZKR KDYH WKH WLPH WR UHDG DERXW DOO WKH FRUUXSWLRQ DQG K SRFULV DOO WKH #ZLNLOHDNV HPDLOV DUH ULJKW KHUH KWWS ZOVHDUFK WN ´ 7KH OLQN LQ WKH 2FWREHU WZHHW ZDV SURYLGHG WR 7UXPS -U E LNL HDNV YLD D SULYDWH WZHHW WR 7UXPS -U ¶V 7ZLWWHU DFFRXQW $W KLV UDOOLHV 7UXPS UHSHDWHGO GLVFXVVHG WKH GLVFORVXUH RI GRFXPHQWV RQ LNL HDNV HQWKXVLDVWLFDOO GLUHFWLQJ DWWHQWLRQ WR WKRVH VWROHQ GRFXPHQWV DV WKH DFFRXQWV EHORZ UHIOHFW D 2FWREHU 7UXPS VDLG ³ ORYH LNL HDNV ´ E 2FWREHU 7UXPS VDLG WKDW ³ LNL HDNV LV OLNH D WUHDVXUH WURYH ´ DQG ³'LG RX VHH ZKHUH RQ LNLOHDNV LW ZDV DQQRXQFHG WKDW WKH ZHUH SD LQJ SURWHVWRUV WR EH YLROHQW ´ F 1RYHPEHU 7UXPS VDLG ³ LNL HDNV MXVW FDPH RXW ZLWK D QHZ RQH ´ DQG ³ @W¶V MXVW EHHQ VKRZQ E LNLOHDNV@ WKDW LW¶V@ D ULJJHG V VWHP ZLWK PRUH FROOXVLRQ SRVVLEO LOOHJDO EHWZHHQ WKH 'HSDUWPHQW RI -XVWLFH WKH OLQWRQ FDPSDLJQ @ DQG WKH 6WDWH 'HSDUWPHQW ´ G 1RYHPEHU 7UXPS VDLG ³%R ORYH UHDGLQJ WKRVH LNL HDNV ´ H 1RYHPEHU 7UXPS FLWHG LNLOHDNV ZKLOH FODLPLQJ WKDW ³ OLQWRQ ZDV VHQGLQJ KLJKO FODVVLILHG LQIRUPDWLRQ WKURXJK KHU PDLG ´ I 1RYHPEHU 7UXPS ³7KH JRW LW DOO GRZQ IRONV LNL HDNV LNL HDNV ´ LQDOO RQ 1RYHPEHU ²MXVW WZR GD V EHIRUH WKH HOHFWLRQ DQG DW D FULWLFDO WLPH IRU XQGHFLGHG YRWHUV² LNL HDNV UHOHDVHG DGGLWLRQDO KDFNHG '1 HPDLOV ZKLFK LW GXEEHG ³'1 HDN ´ 7KH HPDLOV LQFOXGHG DPRQJ RWKHU WKLQJV LQWHUQDO GLVFXVVLRQV UHJDUGLQJ '1 VWUDWHJ DQG FRPPXQLFDWLRQV HIIRUWV Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 36 of 66 1 7UXPS²DQG 5XVVLD² LQ 2Q 1RYHPEHU 7UXPS ZRQ WKH HOHFWLRQ WR EHFRPH 3UHVLGHQW RI WKH 8QLWHG 6WDWHV Q 0RVFRZ WKH UHDFWLRQ ZDV MXELODWLRQ KHQ WKH QHZV RI 7UXPS¶V YLFWRU EURNH LQ WKH 'XPD 5XVVLD¶V SDUOLDPHQW OHJLVODWRUV EXUVW LQWR DSSODXVH DQG WKH DQQRXQFHPHQW E 9 DFKHVODY 1LNRQRY D PHPEHU RI WKH RUHLJQ $IIDLUV RPPLWWHH ZDV DOPRVW GURZQHG RXW E FODSSLQJ DQG FKHHULQJ 1LNRQRY VWDWHG ³7KUHH PLQXWHV DJR LOODU OLQWRQ DFNQRZOHGJHG KHU GHIHDW LQ WKH 86 SUHVLGHQWLDO HOHFWLRQV DQG MXVW VHFRQGV DJR 7UXPS EHJDQ KLV VSHHFK DV SUHVLGHQW HOHFW FRQJUDWXODWH RX DOO RQ WKLV ´ 'HIHQGDQWV¶ FRPPRQ JRDO KDG EHHQ DFKLHYHG 9 ' 1'$176¶ 5 3 $7 ' 2576 72 29 5 83 217$ 76 7 5866 $16 9 ' 1 7 5 216 2861 66 2 8 7 7UXPS V DGYLVHUV UHSHDWHGO GHQLHG WKDW PHPEHUV RI WKH 7UXPS DPSDLJQ KDG FRQWDFWV ZLWK 5XVVLDQV RU 5XVVLDQ RIILFLDOV DQG ZKHQ FRQIURQWHG ZLWK HYLGHQFH WR WKH FRQWUDU LVVXHG IDOVH DQG PLVOHDGLQJ VWDWHPHQWV DERXW WKH QDWXUH RI WKHVH FRQWDFWV RU H DPSOH D E F 2Q -XO 7UXPS -U ZDV DVNHG DERXW VXJJHVWLRQV WKDW WKH -XO UHOHDVH RI VWROHQ '1 HPDLOV ZDV SDUW RI D 5XVVLDQ SORW WR ³KHOS 'RQDOG 7UXPS DQG KXUW LOODU OLQWRQ ´ 'HVSLWH KDYLQJ EHHQ LQIRUPHG YLD HPDLO ZHHNV HDUOLHU WKDW WKHUH ZDV VXFK D SORW 7UXPS -U UHVSRQGHG ³ HOO MXVW JRHV WR VKRZ RX WKHLU H DFW PRUDO FRPSDVV 7KH ¶OO VD DQ WKLQJ WR EH DEOH WR ZLQ WKLV 7KLV LV WLPH DQG WLPH DJDLQ OLH DIWHU OLH« W¶V GLVJXVWLQJ LW¶V VR SKRQ ´ 2Q -XO MXVW ZHHNV DIWHU KH SDUWLFLSDWHG LQ WKH -XQH PHHWLQJ 3DXO 0DQDIRUW ZDV DVNHG ZKHWKHU WKHUH ZHUH DQ ³WLHV EHWZHHQ 0U 7UXPS RX DQG RXU FDPSDLJQ DQG 3XWLQ DQG KLV UHJLPH ´ 0DQDIRUW UHSOLHG ³1R WKHUH DUH QRW 7KDW¶V DEVXUG $QG RX NQRZ WKHUH¶V QR EDVLV WR LW ´ 2Q 1RYHPEHU 7UXPS FDPSDLJQ VSRNHVSHUVRQ RSH LFNV SURYLGHG WKH $VVRFLDWHG 3UHVV ZLWK D VWDWHPHQW GHQ LQJ WKDW WKH 7UXPS FDPSDLJQ KDG DQ FRPPXQLFDWLRQV ZLWK DQ ³IRUHLJQ HQWLW ´ GXULQJ WKH FDPSDLJQ ³1HYHU KDSSHQHG 7KHUH ZDV QR FRPPXQLFDWLRQ EHWZHHQ WKH FDPSDLJQ DQG DQ IRUHLJQ HQWLW GXULQJ WKH FDPSDLJQ ´ Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 37 of 66 G H I J K 2Q 'HFHPEHU 7UXPS FDPSDLJQ PDQDJHU HOO DQQH RQZD ZDV DVNHG ZKHWKHU DQ RQH LQYROYHG LQ WKH 7UXPS FDPSDLJQ KDG ³DQ FRQWDFW ZLWK 5XVVLDQV WU LQJ WR PHGGOH ZLWK WKH HOHFWLRQ ´ RQZD UHVSRQGHG ³$EVROXWHO QRW $QG GLVFXVVHG WKDW ZLWK WKH SUHVLGHQW HOHFW MXVW ODVW QLJKW 7KRVH FRQYHUVDWLRQV QHYHU KDSSHQHG KHDU SHRSOH VD LQJ LW OLNH LW¶V D IDFW RQ WHOHYLVLRQ 7KDW LV MXVW QRW RQO LQDFFXUDWH DQG IDOVH EXW LW¶V GDQJHURXV ´ Q 0DUFK 7UXPS -U IDOVHO VWDWHG ³'LG PHHW ZLWK SHRSOH WKDW ZHUH 5XVVLDQ ¶P VXUH ¶P VXUH GLG %XW QRQH WKDW ZHUH VHW XS 1RQH WKDW FDQ WKLQN RI DW WKH PRPHQW $QG FHUWDLQO QRQH WKDW ZDV UHSUHVHQWLQJ WKH FDPSDLJQ LQ DQ ZD VKDSH RU IRUP ´ 2Q -XO 7UXPS -U UHOHDVHG D KLJKO PLVOHDGLQJ VWDWHPHQW DERXW WKH -XQH PHHWLQJ WKDW ZDV UHSRUWHGO FUDIWHG E KLV IDWKHU ³ W ZDV D VKRUW LQWURGXFWRU PHHWLQJ DVNHG -DUHG XVKQHU@ DQG 3DXO 0DQDIRUW@ WR VWRS E H SULPDULO GLVFXVVHG D SURJUDP DERXW WKH DGRSWLRQ RI 5XVVLDQ FKLOGUHQ WKDW ZDV DFWLYH DQG SRSXODU ZLWK $PHULFDQ IDPLOLHV HDUV DJR DQG ZDV VLQFH HQGHG E WKH 5XVVLDQ JRYHUQPHQW EXW LW ZDV QRW D FDPSDLJQ LVVXH DW WKH WLPH DQG WKHUH ZDV QR IROORZ XS«´ 2Q -XO 7UXPS -U UHOHDVHG DQRWKHU KLJKO PLVOHDGLQJ VWDWHPHQW DERXW WKH -XQH PHHWLQJ WKDW FRQWLQXHG WR RPLW WKDW KH KDG EHHQ WROG WKDW WKH 5XVVLDQ JRYHUQPHQW LWVHOI ZDV VHHNLQJ WR KHOS KLV IDWKHU ³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´ 2Q 2FWREHU 3DSDGRSRXORV SOHDGHG JXLOW WR O LQJ DERXW KLV FRQWDFWV ZLWK 0LIVXG DQG RWKHU 5XVVLDQ FRQWDFWV GXULQJ LQWHUYLHZV ZLWK WKH % 3DSDGRSRXORV DOVR GHOHWHG KLV DFHERRN DFFRXQW VFUXEEHG RWKHU VRFLDO PHGLD DFFRXQWV DQG FKDQJHG KLV FHOO SKRQH QXPEHU LQ DQ DWWHPSW WR KLGH WKRVH FRQWDFWV 7KH 5XVVLDQ JRYHUQPHQW KDV DOVR UHSHDWHGO GHQLHG UHVSRQVLELOLW IRU LQWHUIHUHQFH LQ WKH HOHFWLRQ LQFOXGLQJ WKH F EHUDWWDFNV RQ WKH '1 LNHZLVH LNL HDNV DQG $VVDQJH KDYH UHSHDWHGO GHQLHG WKDW WKH VWROHQ '1 PDWHULDO WKH GLVVHPLQDWHG ZDV SURYLGHG WR WKHP E 5XVVLD DQG KDYH FDVW GRXEW RQ ZKHWKHU 5XVVLD ZDV UHVSRQVLEOH IRU WKH F EHUDWWDFNV RQ WKH '1 Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 38 of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¶V DELOLW WR VXSSRUW 'HPRFUDWLF FDQGLGDWHV LQ WKH JHQHUDO HOHFWLRQ 7KH SXEOLF UHOHDVH RI VWROHQ '1 PDWHULDOV ZDV HQRUPRXVO GLVUXSWLYH WR WKH FRQYHQWLRQ XQGHUPLQLQJ WKH SDUW ¶V DELOLW WR DFKLHYH XQLW DQG UDOO PHPEHUV DURXQG WKHLU VKDUHG YDOXHV 7KH UHOHDVH FDVW D FORXG RYHU WKH FRQYHQWLRQ¶V DFWLYLWLHV LQWHUIHULQJ ZLWK WKH SDUW ¶V RSSRUWXQLW WR FRPPXQLFDWH LWV YLVLRQ WR WKH HOHFWRUDWH 7KH UHOHDVH RI WKLV VWROHQ PDWHULDO XSHQGHG WKH '1 ¶V DELOLW WR FRPPXQLFDWH HIIHFWLYHO DPRQJ VWDII DQG ZLWK PHPEHUV RI WKH SDUW DQG EURDGHU FRPPXQLW W DOVR H SRVHG WKH '1 ¶V VWDII WR FRQVWDQW WKUHDWV E WHOHSKRQH DQG HPDLO ZKLFK ZHUH XQDYRLGDEOH EHFDXVH VWDII FRXOG QRW FKDQJH WKHLU FRQWDFW LQIRUPDWLRQ ZLWK WKH FRQYHQWLRQ XQGHUZD 7KH '1 DOVR VXIIHUHG VLJQLILFDQW LQWHUUXSWLRQ DQG GLVUXSWLRQ RI LWV SROLWLFDO DQG 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 VXEVWDQWLDO ORVV RI LQFRPH WR WKH '1 DQG D UHGXFWLRQ LQ WKH RYHUDOO DPRXQWV RI IXQGV WKDW WKH '1 FRXOG H SHQG WR VXSSRUW 'HPRFUDWLF FDQGLGDWHV QDWLRQZLGH 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 IULJKWHQLQJ DQG VRPHWLPHV OLIH WKUHDWHQLQJ KDUDVVPHQW 8QGHUVWDQGDEO WKLV KDUDVVPHQW LPSDLUHG WKH HPSOR HHV¶ DELOLW WR IXQFWLRQ HIIHFWLYHO LQ WKHLU MREV 2Q -XO ²WKH VDPH GD DV WKH ILUVW LNL HDNV UHOHDVH RI VWROHQ '1 HPDLOV²D '1 HPSOR HH UHFHLYHG D YRLFHPDLO IURP DQ XQNQRZQ FDOOHU VWDWLQJ WKDW WKH HPSOR HH VKRXOG EH ³H HFXWHG´ DQG WKDW KH KRSHG WKH HPSOR HH ZRXOG EH ³SXW LQ MDLO SXW RQ WULDO DQG H HFXWHG IRU EHLQJ D@ WUDLWRU ´ 2Q -XO PXOWLSOH '1 HPSOR HHV UHFHLYHG DQ HPDLO VWDWLQJ ³ KRSH DOO RXU FKLOGUHQ JHW UDSHG DQG PXUGHUHG KRSH RXU IDPLO NQRZV QRWKLQJ EXW VXIIHULQJ WRUWXUH DQG GHDWK ´ 2Q -XO DQ HPSOR HH UHFHLYHG D YRLFHPDLO VWDWLQJ ³ RX JRW D WDUJHW RQ RXU EDFN EHWWHU NHHS ORRNLQJ RYHU RXU VKRXOGHU H SOHWLYH@ RX H SOHWLYHV@ 'LH 'LH 'LH 'LH KDWH RX H SOHWLYH@ JXWV RX H SOHWLYH@ RX¶YH JRW DQ DUURZ RQ RXU EDFN $QG RX NQRZ ZKDW 6QLSHUV DUH JRLQJ WR JHW RX RX H SOHWLYHV@ ´ $QRWKHU UHFHLYHG D SURIDQLW ODGHQ YRLFHPDLO ZDUQLQJ KLP WKDW ³ H¶UH FRPLQJ IRU RX ´ 7KHVH WKUHDWV DV ZHOO DV RWKHUV DOO EHJDQ DIWHU -XO ZKHQ LNL HDNV UHOHDVHG WKH RYHU VWROHQ '1 HPDLOV ZKLFK FRQWDLQHG WKH QDPHV H PDLO DGGUHVVHV DQG SKRQH QXPEHUV RI WKH '1 HPSOR HHV Q DGGLWLRQ WKH 'HIHQGDQWV¶ FRQGXFW FDXVHG HQRUPRXV GDPDJH WR WKH '1 ¶V FRPSXWHU V VWHPV FUHDWLQJ WKH QHHG WR D UHSDLU DQG UHSODFH RI WKH '1 ¶V FRPSXWHU KDUGZDUH DQG VRIWZDUH WHOHSKRQH DQG WHOHSKRQH V VWHPV DQG EDFN XS 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 LQYHVWLJDWH WKH KDFNLQJ DQG F UHWDLQ VWDII DQG FRQVXOWDQWV WR UHPHGLDWH WKH GDPDJH FDXVHG E WKH KDFNLQJ¶V LPSDFW $86 6 2 $ 7 21 2817 20387 5 5$8' $1' $%86 $ 7 8 6 † $ $ $ 167 5866 $ 7 58 $1' 58 23 5$7 9 3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV RPSODLQW DQG SDUDJUDSKV LQ WKH FRXQWV EHORZ DV WKRXJK VHW IRUWK IXOO KHUHLQ 7KH '1 ¶V FRPSXWHUV DUH LQYROYHG LQ LQWHUVWDWH DQG IRUHLJQ FRPPHUFH DQG FRPPXQLFDWLRQ DQG DUH SURWHFWHG FRPSXWHUV XQGHU 8 6 † H 2Q LQIRUPDWLRQ DQG EHOLHI 5XVVLD WKH 58 DQG 58 2SHUDWLYH NQRZLQJO 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 YLRODWLRQ RI 8 6 † D 6XFK LQIRUPDWLRQ LQFOXGHG EXW ZDV QRW OLPLWHG WR SULYDWH SROLWLFDOO VHQVLWLYH FRPPXQLFDWLRQV EHWZHHQ WKH '1 DQG 'HPRFUDWLF VWDNHKROGHUV DQG FDQGLGDWHV FRQILGHQWLDO GRQRU GDWD FRQILGHQWLDO FDPSDLJQ VWUDWHJ SODQV RSSRVLWLRQ DQG SROLF UHVHDUFK DQG GRFXPHQWV UHJDUGLQJ SODQQHG SROLWLFDO HYHQWV LQFOXGLQJ IXQGUDLVHUV DQG UDOOLHV 7KH LQIRUPDWLRQ ZDV XVHG WR DGYDQFH WKH SODQ WR GHQLJUDWH WKH 'HPRFUDWLF SUHVLGHQWLDO QRPLQHH DQG WKH 'HPRFUDWLF SDUW GLVFXVVHG KHUHLQ DQG EROVWHU 7UXPS¶V FDQGLGDF E VWUDWHJLFDOO UHOHDVLQJ WKH FRQILGHQWLDO SURSULHWDU LQIRUPDWLRQ SXEOLFO RQOLQH LQFOXGLQJ RQ LNL HDNV 8SRQ LQIRUPDWLRQ DQG EHOLHI 5XVVLD WKH 58 DQG 58 2SHUDWLYH NQRZLQJO FDXVHG WKH WUDQVPLVVLRQ RI D SURJUDP LQIRUPDWLRQ FRGH RU FRPPDQG DQG DV D UHVXOW RI VXFK FRQGXFW LQWHQWLRQDOO FDXVHG GDPDJH ZLWKRXW DXWKRUL DWLRQ WR D SURWHFWHG FRPSXWHU LQ YLRODWLRQ Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 41 of 66 RI 8 6 † D $ 6XFK WUDQVPLVVLRQ LQFOXGHG EXW ZDV QRW OLPLWHG WR WKH XVH RI PDOZDUH RQ '1 V VWHPV 8SRQ LQIRUPDWLRQ DQG EHOLHI 5XVVLD WKH 58 DQG 58 2SHUDWLYH LQWHQWLRQDOO DFFHVVHG D SURWHFWHG FRPSXWHU RU FRPSXWHUV ZLWKRXW DXWKRUL DWLRQ DQG DV D UHVXOW RI VXFK FRQGXFW FDXVHG GDPDJH DQG ORVV LQ YLRODWLRQ RI 8 6 † D RU UHFNOHVVO FDXVHG GDPDJH LQ YLRODWLRQ RI 8 6 † D % 8SRQ LQIRUPDWLRQ DQG EHOLHI 5XVVLD WKH 58 DQG 58 2SHUDWLYH NQRZLQJO DQG ZLWK LQWHQW WR GHIUDXG WUDIILFNHG SDVVZRUGV DQG VLPLODU LQIRUPDWLRQ IURP WKH '1 V VWHPV DQG VXFK WUDIILFNLQJ DIIHFWHG LQWHUVWDWH RU IRUHLJQ FRPPHUFH LQ YLRODWLRQ RI 8 6 † D $ 5XVVLD WKH 58 DQG 58 2SHUDWLYH FDXVHG ORVV WR RQH RU PRUH SHUVRQV GXULQJ D RQH HDU SHULRG DJJUHJDWLQJ ZHOO RYHU LQ YDOXH DQG WKH DOVR FDXVHG GDPDJH DIIHFWLQJ WHQ RU PRUH SURWHFWHG FRPSXWHUV GXULQJ D RQH HDU SHULRG 7KH '1 VXIIHUHG GDPDJH DQG ORVV DV D FRQVHTXHQFH RI 5XVVLD WKH 58 DQG 58 2SHUDWLYH ¶V DFWLRQV LQFOXGLQJ EXW QRW OLPLWHG WR WKH FRVW RI LQYHVWLJDWLQJ DQG UHVSRQGLQJ WR WKH 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 YDOXH RI WKH '1 ¶V WUDGH VHFUHWV DQG WKH KDUP WR WKH '1 ¶V EXVLQHVV DV GHVFULEHG DERYH 7KH '1 VHHNV FRPSHQVDWRU DQG RWKHU HTXLWDEOH UHOLHI XQGHU 8 6 † J Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 42 of 66 2817 5 2 8 6 † $ $ 167 $ ' 1'$176 3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV RPSODLQW DQG SDUDJUDSKV LQ WKH FRXQWV EHORZ DV WKRXJK VHW IRUWK IXOO KHUHLQ 'HIHQGDQWV DUH DOO ³SHUVRQV´ ZLWKLQ WKH PHDQLQJ RI 8 6 † $W DOO UHOHYDQW WLPHV 'HIHQGDQWV FRQGXFWHG WKH DIIDLUV RI DQ QWHUSULVH²ZKLFK DIIHFWHG LQWHUVWDWH DQG IRUHLJQ FRPPHUFH²WKURXJK D SDWWHUQ RI UDFNHWHHULQJ DFWLYLW LQ YLRODWLRQ RI 8 6 † F $ 7KH 7UXPS DPSDLJQ DV WKH 5DFNHWHHULQJ QWHUSULVH 7KH 7UXPS DPSDLJQ ZDV D 5DFNHWHHULQJ QWHUSULVH DV WKDW WHUP LV XVHG LQ 8 6 † 7KH QWHUSULVH ZDV IRUPHG E -XQH 7KH 7UXPS DPSDLJQ KDG DQ RQJRLQJ RUJDQL DWLRQDO IUDPHZRUN IRU FDUU LQJ RXW LWV REMHFWLYHV $V GHVFULEHG DERYH HDFK 'HIHQGDQW SDUWLFLSDWHG LQ WKH RSHUDWLRQ RU PDQDJHPHQW RI WKH QWHUSULVH %HFDXVH WKH 7UXPS DPSDLJQ H SHQGHG PLOOLRQV RI GROODUV RQ WKH SUHVLGHQWLDO UDFH LW DIIHFWHG LQWHUVWDWH DQG IRUHLJQ FRPPHUFH DFK 'HIHQGDQW FRQGXFWHG DQG RU SDUWLFLSDWHG LQ WKH DIIDLUV RI WKH QWHUSULVH WKURXJK D SDWWHUQ RI UDFNHWHHULQJ DFWLYLW LQFOXGLQJ DFWV LQGLFWDEOH XQGHU 8 6 † HFRQRPLF HVSLRQDJH DQG 8 6 † WKHIW RI WUDGH VHFUHWV 7KH 7UXPS $VVRFLDWHV LNL HDNV DQG $VVDQJH GLUHFWHG LQGXFHG XUJHG DQG RU HQFRXUDJHG 5XVVLD DQG WKH 58 WR HQJDJH LQ WKLV FRQGXFW DQG RU WR SURYLGH LNL HDNV DQG $VVDQJH ZLWK '1 ¶V WUDGH VHFUHWV ZLWK WKH H SHFWDWLRQ WKDW LNL HDNV DQG $VVDQJH ZRXOG GLVVHPLQDWH WKRVH VHFUHWV DQG LQFUHDVH WKH 7UXPS DPSDLJQ¶V FKDQFH RI ZLQQLQJ WKH HOHFWLRQ Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 43 of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¶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¶V DFWLYLWLHV DIIHFWHG HOHFWRUDO VSHQGLQJ LQ DV ZHOO DV WKH PHGLD UHVSRQVH WR WKH SUHVLGHQWLDO UDFH LW DIIHFWHG LQWHUVWDWH DQG IRUHLJQ FRPPHUFH 5 2 3UHGLFDWH $FWV DFK 'HIHQGDQW FRQGXFWHG DQG RU SDUWLFLSDWHG LQ WKH DIIDLUV RI WKH 7UXPS DPSDLJQ DQG WKH $VVRFLDWLRQ Q DFW QWHUSULVH WKURXJK D SDWWHUQ RI UDFNHWHHULQJ DFWLYLW LQFOXGLQJ DFWV LQGLFWDEOH XQGHU 8 6 † HFRQRPLF HVSLRQDJH DQG 8 6 † 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 GLUHFWHG LQGXFHG XUJHG DQG RU HQFRXUDJHG 5XVVLD DQG WKH 58 WR HQJDJH LQ WKLV FRQGXFW DQG RU WR SURYLGH LNL HDNV DQG $VVDQJH ZLWK '1 ¶V WUDGH VHFUHWV ZLWK WKH H SHFWDWLRQ WKDW LNL HDNV DQG $VVDQJH ZRXOG GLVVHPLQDWH WKRVH VHFUHWV DQG LQFUHDVH WKH 7UXPS DPSDLJQ¶V FKDQFH RI ZLQQLQJ WKH HOHFWLRQ %HJLQQLQJ RQ RU EHIRUH -XO 5XVVLD WKH 58 DQG 58 2SHUDWLYH WRRN WUDGH VHFUHWV IURP WKH '1 ZLWKRXW DXWKRUL DWLRQ LQWHQGLQJ RU NQRZLQJ WKDW GRLQJ VR ZRXOG EHQHILW 5XVVLD 5XVVLDQ LQVWUXPHQWDOLWLHV RU 5XVVLDQ DJHQWV 5XVVLD WKH 58 DQG 58 2SHUDWLYH DOVR FRSLHG GXSOLFDWHG GRZQORDGHG XSORDGHG DOWHUHG GHVWUR HG UHSOLFDWHG WUDQVPLWWHG GHOLYHUHG VHQW FRPPXQLFDWHG RU FRQYH HG 3ODLQWLII¶V WUDGH VHFUHWV LQWHQGLQJ RU NQRZLQJ WKDW GRLQJ VR ZRXOG EHQHILW WKH 5XVVLDQ JRYHUQPHQW 5XVVLDQ QVWUXPHQWDOLWLHV RU 5XVVLDQ DJHQWV LQ IXUWKHUDQFH RI WKH LOOHJDO VFKHPH 5XVVLD²DFWLQJ WKURXJK 58 2SHUDWLYH ²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¶V WUDGH VHFUHWV LQWHQGLQJ RU NQRZLQJ WKDW GRLQJ VR ZRXOG EHQHILW WKH 5XVVLDQ JRYHUQPHQW 5XVVLDQ LQVWUXPHQWDOLWLHV RU 5XVVLDQ DJHQWV LQ IXUWKHUDQFH RI WKH LOOHJDO VFKHPH 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 FRQILGHQWLDO SURSULHWDU GRFXPHQWV UHODWHG WR FDPSDLJQV IXQGUDLVLQJ DQG FDPSDLJQ VWUDWHJ RQ -XO DQG 1RYHPEHU DFK UHOHDVH FRQVWLWXWHG D VHSDUDWH DFW RI HFRQRPLF HVSLRQDJH %HJLQQLQJ RQ RU EHIRUH -XO DQG FRQWLQXLQJ GDLO WKHUHDIWHU WKURXJK 1RYHPEHU LNL HDNV DQG $VVDQJH UHFHLYHG ERXJKW RU SRVVHVVHG 3ODLQWLII¶V WUDGH VHFUHWV NQRZLQJ WKHP WR KDYH EHHQ VWROHQ RU DSSURSULDWHG REWDLQHG RU FRQYHUWHG ZLWKRXW DXWKRUL DWLRQ DQG LQWHQGLQJ RU NQRZLQJ WKDW GRLQJ VR ZRXOG EHQHILW WKH 5XVVLDQ JRYHUQPHQW 5XVVLDQ LQVWUXPHQWDOLWLHV RU 5XVVLDQ DJHQWV 5XVVLD WKH 58 DQG 58 2SHUDWLYH DOVR FRPPLWWHG WKH DFWV GHVFULEHG DERYH ZLWK WKH LQWHQW WR FRQYHUW 3ODLQWLII¶V WUDGH VHFUHWV ZKLFK DUH UHODWHG WR D SURGXFW RU VHUYLFH XVHG LQ RU LQWHQGHG IRU XVH LQ LQWHUVWDWH RU IRUHLJQ FRPPHUFH WR WKH HFRQRPLF EHQHILW RI RWKHUV EHVLGHV 3ODLQWLII DFK XQDXWKRUL HG UHOHDVH FRQVWLWXWHV D VHSDUDWH DFW RI WKHIW RI WUDGH VHFUHWV LNL HDNV DQG $VVDQJH DOVR FRPPLWWHG WKH DFWV GHVFULEHG DERYH ZLWK WKH LQWHQW WR FRQYHUW 3ODLQWLII¶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ase 1 18-cv-03501 Document 1 Filed 04 20 18 Page 46 of 66 XVLQJ WKH LOOHJDO GLVFORVXUHV WR EROVWHU 7UXPS DQG DFWLYHO ZRUNLQJ WR FRQFHDO DQG FRYHU XS WKH VFKHPH WKURXJK IDOVH VWDWHPHQWV ' 5 2 'DPDJHV 3ODLQWLII KDV EHHQ LQMXUHG LQ LWV EXVLQHVV DQG SURSHUW E 'HIHQGDQWV¶ YLRODWLRQ RI 8 6 † F 'HIHQGDQWV FDXVHG HQRUPRXV KDUP WR 3ODLQWLII¶V EXVLQHVV DV GHVFULEHG DERYH DQG WR 3ODLQWLII¶V FRPSXWHUV DQG VHUYHUV $OO RI WKHVH LQMXULHV RFFXUUHG ZLWKLQ WKH 8QLWHG 6WDWHV 2817 5 2 2163 5$ 8 6 † ' $ $ 167 $ ' 1'$176 3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV RPSODLQW DQG SDUDJUDSKV LQ WKH FRXQWV EHORZ DV WKRXJK VHW IRUWK IXOO KHUHLQ 'HIHQGDQWV FRQVSLUHG ZLWK HDFK RWKHU WR YLRODWH 8 6 † F 'HIHQGDQWV NQRZLQJO DJUHHG FRPELQHG DQG FRQVSLUHG WR FRQGXFW WKH DIIDLUV RI WKH QWHUSULVH RU WKH $VVRFLDWLRQ Q DFW QWHUSULVH WKURXJK D F EHU HVSLRQDJH RSHUDWLRQ DFK 'HIHQGDQW DJUHHG WKDW WKH RSHUDWLRQ ZRXOG LQYROYH UHSHDWHG YLRODWLRQV RI 8 6 † HFRQRPLF HVSLRQDJH DQG 8 6 † WKHIW RI WUDGH VHFUHWV 'HIHQGDQWV¶ FRQVSLUDF WR YLRODWH 8 6 † F YLRODWHG † G 3ODLQWLII KDV EHHQ LQMXUHG LQ WKHLU EXVLQHVV RU SURSHUW E 'HIHQGDQWV¶ YLRODWLRQ RI 8 6 † G 3ODLQWLII KDV EHHQ LQMXUHG LQ LWV EXVLQHVV DQG SURSHUW E 'HIHQGDQWV¶ YLRODWLRQ RI 8 6 † F 'HIHQGDQWV FDXVHG HQRUPRXV KDUP WR 3ODLQWLII¶V EXVLQHVV DV GHVFULEHG DERYH DQG WR 3ODLQWLII¶V FRPSXWHUV DQG VHUYHUV $OO RI WKHVH LQMXULHV RFFXUUHG ZLWKLQ WKH 8QLWHG 6WDWHV Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 47 of 66 2817 9 5 7$3 $ 7 8 6 †† $ $ 167 58 23 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 RPSODLQW DQG SDUDJUDSKV LQ WKH FRXQWV EHORZ DV WKRXJK VHW IRUWK IXOO KHUHLQ DFK 'HIHQGDQW LV D ³SHUVRQ´ ZLWKLQ WKH PHDQLQJ RI 8 6 †† Q YLRODWLRQ RI 8 6 † D 58 2SHUDWLYH ZLOOIXOO DQG LQWHQWLRQDOO LQWHUFHSWHG RU HQGHDYRUHG WR LQWHUFHSW 3ODLQWLII¶V ZLUH RUDO RU HOHFWURQLF FRPPXQLFDWLRQV E KDFNLQJ LQWR 3ODLQWLII¶V FRPSXWHU V VWHPV 92 3 DQG RU HPDLO DFFRXQWV DQG H WUDFWLQJ 3ODLQWLII¶V SULYDWH FRQILGHQWLDO GRFXPHQWV DQG ILOHV Q YLRODWLRQ RI 8 6 † F 58 2SHUDWLYH LNL HDNV DQG $VVDQJH ZLOOIXOO DQG LQWHQWLRQDOO GLVFORVHG WKH FRQWHQWV RI 3ODLQWLII¶V ZLUH RUDO RU HOHFWURQLF FRPPXQLFDWLRQV NQRZLQJ RU KDYLQJ UHDVRQ WR NQRZ WKDW WKH LQIRUPDWLRQ ZDV REWDLQHG WKURXJK WKH LQWHUFHSWLRQ RI ZLUH RUDO RU HOHFWURQLF FRPPXQLFDWLRQ LQ YLRODWLRQ RI 8 6 † Q YLRODWLRQ RI 8 6 † G 58 2SHUDWLYH LNL HDNV $VVDQJH WKH 7UXPS $VVRFLDWHV DQG WKH 7UXPS DPSDLJQ ZLOOIXOO DQG LQWHQWLRQDOO XVHG WKH FRQWHQWV RI ZLUH RUDO HOHFWURQLF FRPPXQLFDWLRQV NQRZLQJ RU KDYLQJ UHDVRQ WR NQRZ WKDW WKH LQIRUPDWLRQ ZDV REWDLQHG WKURXJK WKH LQWHUFHSWLRQ RI D ZLUH RUDO RU HOHFWURQLF FRPPXQLFDWLRQ LQ YLRODWLRQ RI 8 6 † 3ODLQWLII KDG D MXVWLILDEOH H SHFWDWLRQ WKDW LWV ZLUH RUDO RU HOHFWURQLF FRPPXQLFDWLRQV ZHUH QRW VXEMHFW WR LQWHUFHSWLRQ 3ODLQWLII LV D ³SHUVRQ´ ZKRVH ZLUH RUDO RU HOHFWURQLF FRPPXQLFDWLRQV ZHUH LQWHUFHSWHG ZLWKLQ WKH PHDQLQJ RI 8 6 † 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 $VVRFLDWHV DQG WKH 7UXPS DPSDLJQ¶V DFWLRQV 3ODLQWLII VXIIHUHG LUUHSDUDEOH KDUP WR LWV EXVLQHVV DQG SURSHUW DQG LV HQWLWOHG WR DQ DZDUG RI WKH JUHDWHU RI WKH DFWXDO GDPDJHV VXIIHUHG RU WKH VWDWXWRU GDPDJHV DQG LQMXQFWLYH UHOLHI SXUVXDQW WR 8 6 † F 7KLV KDUP LQFOXGHV EXW LV QRW OLPLWHG WR KDUP WR '1 FRPSXWHUV DQG VHUYHUV KDUP WR WKH '1 ¶V UHSXWDWLRQ ORVV LQ WKH YDOXH RI '1 WUDGH VHFUHWV DQG EXVLQHVV LQIRUPDWLRQ DQG KDUP WR EXVLQHVV DV GHVFULEHG DERYH Q OLJKW RI WKH HJUHJLRXV QDWXUH RI 58 2SHUDWLYH LNL HDNV $VVDQJH WKH 7UXPS $VVRFLDWHV DQG WKH 7UXPS DPSDLJQ¶V YLRODWLRQV 3ODLQWLII LV HQWLWOHG WR SXQLWLYH GDPDJHV DQG UHDVRQDEOH DWWRUQH V¶ IHHV DQG FRVWV SXUVXDQW WR 8 6 †† E 2817 9 6725 ' 20081 $7 216 $ 7 8 6 †† $ $ 167 5866 $ 7 58 $1' 58 23 5$7 9 3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV RPSODLQW DQG SDUDJUDSKV LQ WKH FRXQWV EHORZ DV WKRXJK VHW IRUWK IXOO KHUHLQ 3ODLQWLII LV D ³SHUVRQ´ ZLWKLQ WKH PHDQLQJ RI 8 6 †† DQG D 5XVVLD WKH 58 DQG 58 2SHUDWLYH ZLOOIXOO DQG LQWHQWLRQDOO DFFHVVHG ZLWKRXW DXWKRUL DWLRQ D IDFLOLW WKURXJK ZKLFK DQ HOHFWURQLF FRPPXQLFDWLRQ VHUYLFH LV SURYLGHG QDPHO WKH '1 ¶V FRPSXWHU V VWHPV LQFOXGLQJ WKHLU HPDLO VHUYHUV WKHUHE REWDLQLQJ DFFHVV WR ZLUH RU HOHFWURQLF FRPPXQLFDWLRQV ZKLOH WKH ZHUH LQ HOHFWURQLF VWRUDJH LQ VXFK V VWHPV LQ YLRODWLRQ RI 8 6 † D $V D UHVXOW RI WKHVH ZLOOIXO DQG LQWHQWLRQDO YLRODWLRQV 3ODLQWLII KDV VXIIHUHG GDPDJHV DQG DV SURYLGHG IRU LQ 8 6 † VHHNV DQ DZDUG RI WKH JUHDWHU RI WKH DFWXDO GDPDJHV VXIIHUHG RU WKH VWDWXWRU GDPDJHV SXQLWLYH GDPDJHV DWWRUQH V¶ IHHV DQG RWKHU FRVWV RI WKLV DFWLRQ DQG DSSURSULDWH HTXLWDEOH UHOLHI Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 49 of 66 2817 9 ' 7$ 0 11 80 23 5 7 $ 7 8 6 † 7 6 4 $ $ 167 5866 $ 7 58 $1' 58 23 5$7 9 3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV RPSODLQW DQG SDUDJUDSKV LQ WKH FRXQWV EHORZ DV WKRXJK VHW IRUWK IXOO KHUHLQ 3ODLQWLII¶V FRPSXWHU QHWZRUNV DQG ILOHV FRQWDLQHG LQIRUPDWLRQ VXEMHFW WR SURWHFWLRQ XQGHU WKH FRS ULJKW ODZV RI WKH 8QLWHG 6WDWHV LQFOXGLQJ FDPSDLJQ VWUDWHJ GRFXPHQWV DQG RSSRVLWLRQ UHVHDUFK WKDW ZHUH LOOHJDOO DFFHVVHG ZLWKRXW DXWKRUL DWLRQ E 5XVVLD DQG WKH 58 $FFHVV WR WKH FRS ULJKWHG PDWHULDO FRQWDLQHG RQ 3ODLQWLII¶V FRPSXWHU QHWZRUNV DQG HPDLO ZDV FRQWUROOHG E WHFKQRORJLFDO PHDVXUHV LQFOXGLQJ PHDVXUHV UHVWULFWLQJ UHPRWH DFFHVV ILUHZDOOV DQG PHDVXUHV UHVWULFWLQJ DFFHVV WR XVHUV ZLWK YDOLG FUHGHQWLDOV DQG SDVVZRUGV Q YLRODWLRQ RI 8 6 † D 5XVVLD WKH 58 DQG 58 2SHUDWLYH FLUFXPYHQWHG WKHVH WHFKQRORJLFDO PHDVXUHV E VWHDOLQJ FUHGHQWLDOV IURP DXWKRUL HG XVHUV FRQGXFWLQJ D ³SDVVZRUG GXPS´ WR XQODZIXOO REWDLQ SDVVZRUGV WR WKH V VWHP FRQWUROOLQJ DFFHVV WR WKH '1 ¶V GRPDLQ DQG LQVWDOOLQJ PDOZDUH RQ 3ODLQWLII¶V FRPSXWHU V VWHPV 5XVVLD WKH 58 DQG 58 2SHUDWLYH ¶V FRQGXFW FDXVHG 3ODLQWLII VLJQLILFDQW GDPDJHV 7KHVH GDPDJHV LQFOXGH EXW DUH QRW OLPLWHG WR GDPDJH UHVXOWLQJ IURP KDUP WR '1 FRPSXWHUV DQG VHUYHUV ORVV LQ WKH YDOXH RI '1 WUDGH VHFUHWV DQG EXVLQHVV LQIRUPDWLRQ DQG KDUP WR EXVLQHVV DV GHVFULEHG DERYH 3ODLQWLII LV HQWLWOHG WR WKH JUHDWHU RI LWV DFWXDO GDPDJHV RU VWDWXWRU GDPDJHV DV SURYLGHG E 8 6 † LQ DQ DPRXQW WR EH SURYHQ DW WULDO 3ODLQWLII LV HQWLWOHG WR DQ DZDUG RI DWWRUQH V¶ IHHV DQG FRVWV DV SURYLGHG E 8 6 † Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 50 of 66 2817 9 0 6$335235 $7 21 2 75$' 6 5 76 81' 5 7 ' 1' 75$' 6 5 76 $ 7 8 6 † 7 6 4 $ $ 167 5866 $ 7 58 58 23 5$7 9 $ 6 $1' $66$1 3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV RPSODLQW DQG SDUDJUDSKV LQ WKH FRXQWV EHORZ DV WKRXJK VHW IRUWK IXOO KHUHLQ 7KH GRFXPHQWV WKDW 5XVVLD WKH 58 DQG 58 2SHUDWLYH VWROH IURP WKH '1 ¶V FRPSXWHU V VWHPV LQFOXGH WUDGH VHFUHWV ZLWKLQ WKH PHDQLQJ RI 8 6 † 6SHFLILFDOO WKH '1 LV LQ WKH EXVLQHVV RI VXSSRUWLQJ 'HPRFUDWLF SROLWLFDO FDPSDLJQV DQG WKH VWROHQ GRFXPHQWV LQFOXGHG 'HPRFUDWLF GRQRU LQIRUPDWLRQ RSSRVLWLRQ UHVHDUFK DQG VWUDWHJLF LQIRUPDWLRQ UHJDUGLQJ SODQQHG SROLWLFDO DFWLYLWLHV WKDW DOORZ LW WR HIIHFWLYHO FDUU RXW LWV PLVVLRQ 7KH '1 WDNHV DQG KDV WDNHQ UHDVRQDEOH PHDVXUHV WR NHHS VXFK LQIRUPDWLRQ VHFUHW Q SDUWLFXODU WKH '1 PDLQWDLQV DQG PDLQWDLQHG WKHLU LQIRUPDWLRQ RQ VHFXUHG VHUYHUV WKDW DUH SDVVZRUG SURWHFWHG WKH JLYH WKHLU VWDII WUDLQLQJV WKHLU VWDII VLJQ FRQILGHQWLDOLW DJUHHPHQWV 3ODLQWLII¶V WUDGH VHFUHWV ZHUH UHODWHG WR SURGXFWV RU VHUYLFHV XVHG LQ RU LQWHQGHG IRU XVH LQ LQWHUVWDWH RU IRUHLJQ FRPPHUFH 'HIHQGDQWV 5XVVLD WKH 58 DQG 58 2SHUDWLYH PLVDSSURSULDWHG 3ODLQWLII¶V WUDGH VHFUHWV 'HIHQGDQWV 5XVVLD WKH 58 DQG 58 2SHUDWLYH DFTXLUHG 3ODLQWLII¶V WUDGH VHFUHWV NQRZLQJ RU KDYLQJ UHDVRQ WR NQRZ WKDW WKH WUDGH VHFUHWV ZHUH DFTXLUHG E LPSURSHU PHDQV 'HIHQGDQWV 5XVVLD WKH 58 58 2SHUDWLYH LNL HDNV DQG $VVDQJH GLVFORVHG 3ODLQWLII¶V WUDGH VHFUHWV ZLWKRXW FRQVHQW RQ PXOWLSOH GDWHV GLVFXVVHG KHUHLQ NQRZLQJ RU KDYLQJ UHDVRQ WR NQRZ WKDW WKH WUDGH VHFUHWV ZHUH DFTXLUHG E LPSURSHU PHDQV $V D GLUHFW FRQVHTXHQFH RI 'HIHQGDQWV¶ PLVDSSURSULDWLRQ 3ODLQWLII KDV VXIIHUHG GDPDJHV IRU WKH FRVW RI PDWHULDOV ORVV RI JRRGZLOO DQG DWWRUQH V¶ IHHV DQG FRVWV 3ODLQWLII LV DOVR Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 51 of 66 HQWLWOHG WR SXQLWLYH GDPDJHV 7KHVH GDPDJHV LQFOXGH EXW DUH QRW OLPLWHG WR GDPDJH UHVXOWLQJ IURP KDUP WR '1 FRPSXWHUV DQG VHUYHUV ORVV LQ WKH YDOXH RI '1 WUDGH VHFUHWV DQG EXVLQHVV LQIRUPDWLRQ DQG KDUP WR EXVLQHVV DV GHVFULEHG DERYH 3ODLQWLII LV DOVR HQWLWOHG WR D SUHOLPLQDU DQG SHUPDQHQW LQMXQFWLRQ SXUVXDQW WR 8 6 † E 2817 9 $6 1 721 ' 81 250 75$' 6 5 76 $ 7 ' 2' $11 †† ± $ $ 167 $ ' 1'$176 3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV RPSODLQW DQG SDUDJUDSKV LQ WKH FRXQWV EHORZ DV WKRXJK VHW IRUWK IXOO KHUHLQ 7KH 'LVWULFW RI ROXPELD H SUHVVO HPSRZHUV D SDUW WR UHFRYHU GDPDJHV IRU PLVDSSURSULDWLRQ RI D WUDGH VHFUHW 7KH GRFXPHQWV WKDW 5XVVLD WKH 58 DQG 58 2SHUDWLYH H ILOWUDWHG IURP WKH '1 ¶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† 7KLV LQIRUPDWLRQ GHULYHG DQ DFWXDO LQGHSHQGHQW HFRQRPLF YDOXH E UHPDLQLQJ FRQILGHQWLDO DQG SULYDWH DQG QRW EHLQJ UHDGLO DVFHUWDLQDEOH WR RWKHUV 3ODLQWLII WDNHV DQG KDV WDNHQ UHDVRQDEOH PHDVXUHV WR NHHS VXFK LQIRUPDWLRQ VHFUHW DV GLVFXVVHG VXSUD LQ RXQW 9 Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 52 of 66 DFK 'HIHQGDQW GLVFORVHG UHFHLYHG DQG XVHG WKHVH PLVDSSURSULDWHG WUDGH VHFUHWV ZLWKRXW 3ODLQWLII¶V FRQVHQW NQRZLQJ RU KDYLQJ UHDVRQ WR NQRZ WKDW WKH WUDGH VHFUHWV ZHUH DFTXLUHG E LPSURSHU PHDQV $V D GLUHFW FRQVHTXHQFH RI 'HIHQGDQWV¶ PLVDSSURSULDWLRQ 3ODLQWLII KDV VXIIHUHG GDPDJHV IRU DFWXDO ORVV DQG IURP 'HIHQGDQWV¶ XQMXVW HQULFKPHQW 7KHVH GDPDJHV LQFOXGH EXW DUH QRW OLPLWHG WR GDPDJH UHVXOWLQJ IURP KDUP WR '1 FRPSXWHUV DQG VHUYHUV ORVV LQ WKH YDOXH RI '1 WUDGH VHFUHWV DQG EXVLQHVV LQIRUPDWLRQ DQG KDUP WR EXVLQHVV DV GHVFULEHG DERYH 'HIHQGDQWV¶ PLVDSSURSULDWLRQ RI 3ODLQWLII¶V WUDGH VHFUHWV ZDV ZLOOIXO DQG PDOLFLRXV $FFRUGLQJO 3ODLQWLII LV HQWLWOHG WR H HPSODU GDPDJHV LQ DQ DPRXQW XS WR WZLFH DFWXDO GDPDJHV DZDUGHG DV ZHOO DV DWWRUQH V¶ IHHV DQG FRVWV 2817 75 63$66 ' 20021 $ $ $ 167 5866 $ 7 58 $1' 58 23 5$7 9 3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV RPSODLQW DQG SDUDJUDSKV LQ WKH FRXQWV EHORZ DV WKRXJK VHW IRUWK IXOO KHUHLQ 7KH '1 RZQV DQG RSHUDWHV SULYDWH FRPSXWHUV DQG D SULYDWH FRPSXWHU QHWZRUN 7KLV QHWZRUN DQG WKH LQIRUPDWLRQ FRQWDLQHG WKHUHLQ FRQVWLWXWHV WKH SURSHUW RI 3ODLQWLII 2Q RU DERXW -XO 5XVVLDQ LQWHOOLJHQFH DJHQWV KDFNHG LQWR WKH '1 ¶V FRPSXWHUV DQG QHWZRUN 2Q RU DERXW $SULO 5XVVLD WKH 58 DQG 58 2SHUDWLYH 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 2SHUDWLYH ZLWK XQDXWKRUL HG DFFHVV WR WKH 3ODLQWLII¶V SURSHUW LQ LWV QHWZRUN 5XVVLD WKH 58 DQG 58 2SHUDWLYH ¶V KDFNV LQWHUIHUHG ZLWK WKH '1 ¶V SRVVHVVRU LQWHUHVWV LQ WKHLU QHWZRUN DQG WKH LQIRUPDWLRQ FRQWDLQHG WKHUHLQ % PHDQV RI WUHVSDVV 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 GLVVHPLQDWHG FRQILGHQWLDO DQG SHUVRQDO LQIRUPDWLRQ WKDW LV 3ODLQWLII¶V SURSHUW 'HIHQGDQWV ZRXOG KDYH EHHQ XQDEOH WR GLVFORVH WKLV LQIRUPDWLRQ EXW IRU WKH LOOHJDO WUHVSDVV 5XVVLD WKH 58 DQG 58 2SHUDWLYH WKHUHIRUH GHSULYHG 3ODLQWLII RI LWV SRVVHVVRU LQWHUHVW LQ PDLQWDLQLQJ WKH SULYDF DQG FRQILGHQWLDOLW RI LWV SURSHUW $V D UHVXOW 3ODLQWLII KDV VXIIHUHG GLPLQXWLRQ LQ WKH YDOXH RI LWV SURSHUW DQG LV HQWLWOHG WR GDPDJHV 2817 75 63$66 72 $77 6 9 5 1 $ 20021 $ $ $ 167 5866 $ 7 58 $1' 58 23 5$7 9 3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV RPSODLQW DQG SDUDJUDSKV LQ WKH FRXQWV EHORZ DV WKRXJK VHW IRUWK IXOO KHUHLQ 3ODLQWLII WKH '1 RZQV DQG RSHUDWHV D SULYDWH FRPSXWHU QHWZRUN ZLWK FRPSXWHUV DQG VHUYHUV ORFDWHG LQ DVKLQJWRQ ' DQG LQ 9LUJLQLD 7KLV QHWZRUN DQG WKH LQIRUPDWLRQ FRQWDLQHG WKHUHLQ FRQVWLWXWHV WKH SURSHUW RI 3ODLQWLII 2Q RU DERXW -XO 5XVVLDQ LQWHOOLJHQFH DJHQWV KDFNHG LQWR WKH '1 ¶V FRPSXWHUV DQG QHWZRUN 2Q RU DERXW $SULO 5XVVLD WKH 58 DQG 58 2SHUDWLYH 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 2SHUDWLYH ZLWK XQDXWKRUL HG DFFHVV WR 3ODLQWLII¶V SURSHUW LQ LWV QHWZRUN $W QR SRLQW KDV DQ RQH ZLWK DXWKRULW WR GR VR SURYLGHG 'HIHQGDQWV ZLWK DXWKRUL DWLRQ WR DFFHVV 3ODLQWLII¶V QHWZRUNV 5XVVLD WKH 58 DQG 58 2SHUDWLYH ¶V KDFNV LQWHUIHUHG ZLWK 3ODLQWLII¶V SRVVHVVRU LQWHUHVWV LQ LWV QHWZRUN DQG WKH LQIRUPDWLRQ FRQWDLQHG WKHUHLQ % PHDQV RI WUHVSDVV 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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¶V FRPSXWHU V VWHPV WR VWHDO FRQILGHQWLDO LQIRUPDWLRQ SXEOLFO GLVVHPLQDWH WKH VWROHQ LQIRUPDWLRQ DQG XVH WKDW VWROHQ DQG SXEOLFO GLVFORVHG LQIRUPDWLRQ IRU WKH FRPPRQ SXUSRVH RI GHQLJUDWLQJ 6HFUHWDU OLQWRQ DQG WKH 'HPRFUDWLF 3DUW DQG EROVWHULQJ 7UXPS¶V HOHFWRUDO SURVSHFWV 7KHVH DFWLRQV FRQVWLWXWHG DQ H HUFLVH RI ZURQJIXO GRPLQLRQ RYHU 3ODLQWLII¶V FRPSXWHUV DQG FRPSXWHU V VWHP DQG SULYDWH HPDLO DFFRXQWV 3XUVXDQW WR DQG LQ IXUWKHUDQFH RI WKLV FRPPRQ VFKHPH 'HIHQGDQWV FRQVSLUHG WR FRPPLW WKH XQODZIXO DFWV GHVFULEHG KHUHLQ LQFOXGLQJ DFWV WKDW FRQVWLWXWH WUHVSDVV 3XUVXDQW WR DQG LQ IXUWKHUDQFH RI WKLV FRPPRQ VFKHPH HDFK 'HIHQGDQW FRPPLWWHG RYHUW DFWV LQFOXGLQJ DUUDQJLQJ PHHWLQJV EHWZHHQ WKH FR FRQVSLUDWRUV HQFRXUDJLQJ DQG SODQQLQJ IRU WKH VFKHPH WR RFFXU KDFNLQJ LQWR WKH '1 ¶V QHWZRUN VWHDOLQJ WKH '1 ¶V SULYDWH FRQILGHQWLDO LQIRUPDWLRQ DQG UHOHDVLQJ WKDW LQIRUPDWLRQ ZLWKRXW SHUPLVVLRQ WR WKH SXEOLF 7KHVH RYHUW DFWV FDXVHG 3ODLQWLII LQMXU DQG GDPDJHV DV GLVFXVVHG VXSUD $OO RI WKH QDPHG 'HIHQGDQWV DLGHG DQG DEHWWHG LQ WKH XQODZIXO DFWV GHVFULEHG KHUHLQ DV SDUW RI DQG IXUWKHUDQFH RI D FRPPRQ VFKHPH DQG HDFK RI WKHVH 'HIHQGDQWV NQRZLQJO DQG Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 55 of 66 VXEVWDQWLDOO DVVLVWHG WKH FRPPRQ VFKHPH DQG ZDV JHQHUDOO DZDUH RI KLV UROH DV SDUW RI DQ RYHUDOO FRPPRQ VFKHPH $FFRUGLQJO WKH DFWLRQV RI 'HIHQGDQWV FRQVWLWXWH FRQVSLUDF WR WUHVSDVV $V D UHVXOW 3ODLQWLII KDV VXIIHUHG GLPLQXWLRQ LQ WKH YDOXH RI LWV SURSHUW DQG LV HQWLWOHG WR GDPDJHV 2817 9 2 $7 21 2 7 9 5 1 $ 20387 5 5 0 6 $ 7 9$ 2' $11 † 7 6 4 $ $ 167 $ ' 1'$176 3ODLQWLII UHDOOHJHV DQG LQFRUSRUDWHV E UHIHUHQFH DOO SULRU SDUDJUDSKV RI WKLV RPSODLQW DQG SDUDJUDSKV LQ WKH FRXQWV EHORZ DV WKRXJK VHW IRUWK IXOO KHUHLQ 5XVVLD WKH 58 DQG 58 2SHUDWLYH XVHG 3ODLQWLII¶V FRPSXWHUV DQG FRPSXWHU QHWZRUNV ZLWKRXW DXWKRULW REWDLQHG SURSHUW E IDOVH SUHWHQVHV DQG FRQYHUWHG 3ODLQWLII¶V SURSHUW LQ YLRODWLRQ RI 9D RGH $QQ † 5XVVLD WKH 58 DQG 58 2SHUDWLYH ZLWK PDOLFLRXV LQWHQW D WHPSRUDULO RU SHUPDQHQWO UHPRYHG KDOWHG RU RWKHUZLVH GLVDEOHG FRPSXWHU GDWD FRPSXWHU SURJUDPV RU FRPSXWHU VRIWZDUH IURP WKH '1 ¶V FRPSXWHU RU FRPSXWHU QHWZRUN LQ YLRODWLRQ RI 9D RGH $QQ † E FDXVHG WKH '1 ¶V FRPSXWHUV WR PDOIXQFWLRQ LQ YLRODWLRQ RI 9D RGH $QQ † F DOWHUHG GLVDEOHG RU HUDVHG FRPSXWHU GDWD FRPSXWHU SURJUDPV RU FRPSXWHU VRIWZDUH LQ YLRODWLRQ RI 9D RGH $QQ † G XVHG D FRPSXWHU RU FRPSXWHU QHWZRUN WR PDNH RU FDXVH WR EH PDGH DQ XQDXWKRUL HG FRS RI FRPSXWHU GDWD FRPSXWHU SURJUDPV RU FRPSXWHU 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 FRPSXWHU QHWZRUN LQ YLRODWLRQ RI 9D RGH $QQ † H LQVWDOOHG RU FDXVHG WR EH LQVWDOOHG RU FROOHFWHG LQIRUPDWLRQ WKURXJK D NH VWURNH ORJJHU RQ WKH '1 ¶V FRPSXWHUV DQG ZLWKRXW WKHLU DXWKRUL DWLRQ LQ YLRODWLRQ RI 9D RGH $QQ † 'HIHQGDQWV 5XVVLD WKH 58 DQG 58 2SHUDWLYH XVHG D FRPSXWHU RU FRPSXWHU QHWZRUN DQG LQWHQWLRQDOO H DPLQHG ZLWKRXW DXWKRULW HPSOR PHQW FUHGLW ILQDQFLDO RU LGHQWLI LQJ LQIRUPDWLRQ UHODWLQJ WR RWKHU SHUVRQV LQ YLRODWLRQ RI LQ 9D RGH $QQ † DFK 'HIHQGDQW NQRZLQJO DLGHG DEHWWHG HQFRXUDJHG LQGXFHG LQVWLJDWHG FRQWULEXWHG WR DQG DVVLVWHG 5XVVLD WKH 58 DQG 58 2SHUDWLYH ¶V YLRODWLRQ RI 9D RGH $QQ † † DQG † $OO 'HIHQGDQWV¶ YLRODWLRQV RI WKH IRUHJRLQJ SURYLVLRQV FDXVHG 3ODLQWLII LQMXU 7KLV LQMXU LQFOXGHV EXW LV QRW OLPLWHG WR LQMXU UHVXOWLQJ IURP KDUP WR '1 FRPSXWHUV DQG VHUYHUV ORVV LQ WKH YDOXH RI '1 WUDGH VHFUHWV DQG EXVLQHVV LQIRUPDWLRQ DQG KDUP WR EXVLQHVV DV GHVFULEHG DERYH 3ODLQWLII LV HQWLWOHG WR UHFRYHU GDPDJHV DQG WKH FRVWV RI VXLW XQGHU 9D RGH $QQ † 35$ 5 25 5 5 25 3ODLQWLII GHPDQGV MXGJPHQW DJDLQVW 'HIHQGDQWV RQ DOO RXQWV DQG VHHNV VXFK UHOLHI DV VSHFLILHG EHORZ IRU DOO RXQWV IRU ZKLFK VXFK UHOLHI LV SURYLGHG E ODZ D $ZDUGLQJ 3ODLQWLII GDPDJHV LQ DQ DPRXQW WR EH GHWHUPLQHG LQFOXGLQJ EXW QRW OLPLWHG WR DOO GDPDJHV DQG ORVVHV VXIIHUHG E 3ODLQWLII DV D UHVXOW RI WKH LOOHJDO KDFNLQJ WKHIW DQG VXEVHTXHQW UHOHDVH RI 3ODLQWLII¶V FRQILGHQWLDO GRFXPHQWV DQG RU 3ODLQWLII¶V UHVSRQVH WR DQG UHPHGLDWLRQ UHODWHG WKHUHWR Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 57 of 66 E $ZDUGLQJ 3ODLQWLII FRPSHQVDWRU DQG WUHEOH GDPDJHV DV DYDLODEOH LQ DQ DPRXQW WR EH SURYHQ DW WULDO F $ZDUGLQJ 3ODLQWLII WKH ILQDQFLDO JDLQ HDUQHG E 'HIHQGDQWV DV D FRQVHTXHQFH RI WKH YLRODWLRQV GHVFULEHG KHUHLQ G $ZDUGLQJ 3ODLQWLII VWDWXWRU GDPDJHV DV DYDLODEOH H $ZDUGLQJ 3ODLQWLII SXQLWLYH GDPDJHV DV DYDLODEOH I VVXLQJ D GHFODUDWLRQ WKDW 'HIHQGDQWV DFFRUGLQJ WR SURRI FRQVSLUHG WR DQG GLG HQJDJH LQ D FRPPRQ VFKHPH WR HIIHFW WKH LOOHJDO DQG XQDXWKRUL HG KDFNLQJ RI 3ODLQWLII¶V FRPSXWHU V VWHPV DQG RU SHUVRQDO HPDLOV DQG WKH H ILOWUDWLRQ RI FRQILGHQWLDO LQIRUPDWLRQ GLVVHPLQDWHG WKDW VWROHQ LQIRUPDWLRQ WR WKH SXEOLF DQG XVHG WKDW GLVFORVHG VWROHQ LQIRUPDWLRQ WR LPSDFW WKH HOHFWLRQ IRU WKHLU RZQ JDLQ J VVXLQJ DQ LQMXQFWLRQ UHVWUDLQLQJ 'HIHQGDQWV DQG WKHLU RIILFHUV DJHQWV VHUYDQWV HPSOR HHV DVVLJQV DQG WKRVH DFWLQJ LQ DFWLYH FRQFHUW RU SDUWLFLSDWLRQ ZLWK WKHP IURP D $FFHVVLQJ 3ODLQWLII¶V FRPSXWHU QHWZRUNV DQG RU SHUVRQDO HPDLOV ZLWKRXW 3ODLQWLII¶V DXWKRUL DWLRQV E QJDJLQJ LQ DQ DFWLYLW WKDW GLVUXSWV GLPLQLVKHV WKH TXDOLW RI LQWHUIHUHV ZLWK WKH SHUIRUPDQFH RI RU LPSDLUV WKH IXQFWLRQDOLW RI 3ODLQWLII¶V FRPSXWHU QHWZRUNV RU SHUVRQDO HPDLOV DQG F 6HOOLQJ SXEOLVKLQJ GLVWULEXWLQJ RU XVLQJ DQ SURSHUW RU LQIRUPDWLRQ REWDLQHG IURP 3ODLQWLII¶V FRPSXWHU QHWZRUNV RU SHUVRQDO HPDLOV ZLWKRXW 3ODLQWLII¶V DXWKRUL DWLRQ G 5HPRYLQJ H WUDFWLQJ RU FRS LQJ DQ LQIRUPDWLRQ RU GDWD IURP 3ODLQWLII¶V FRPSXWHUV RU SHUVRQDO HPDLOV ZLWKRXW 3ODLQWLII¶V DXWKRUL DWLRQ Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 58 of 66 K $ZDUGLQJ 3ODLQWLII DOO FRVWV DQG DWWRUQH V¶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Ɣ LIWK ORRU DVKLQJWRQ ' MVHOOHUV#FRKHQPLOVWHLQ FRP JJUDEHU#FRKHQPLOVWHLQ FRP MKRUZLW #FRKHQPLOVWHLQ FRP DGHLFK#FRKHQPLOVWHLQ FRP $WWRUQH V IRU 3ODLQWLII Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 59 of 66 57 $7 2 6 59 KHUHE FHUWLI WKDW RQ $SULO HOHFWURQLFDOO ILOHG WKH RPSODLQW ZLWK WKH OHUN RI WKH RXUW XVLQJ WKH ZKR LQ WXUQ VHQW QRWLFH WR DOO FRXQVHO RI UHFRUG 'DWHG $SULO V 0LFKDHO LVHQNUDIW 0LFKDHO LVHQNUDIW Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 60 of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¶V 7ZR 1LJKWV RI 3DUWLHV LQ 0RVFRZ FKR HDUV DWHU %ORRPEHUJ -XO KWWSV ZZZ EORRPEHUJ FRP QHZV DUWLFOHV WUXPS V WZR QLJKWV RI SDUWLHV LQ PRVFRZ UHYHUEHUDWH HDUV ODWHU 7RP DPEXUJHU HW DO QVLGH 7UXPS¶V ILQDQFLDO WLHV WR 5XVVLD DQG KLV XQXVXDO IODWWHU RI 9ODGLPLU 3XWLQ DVK 3RVW -XQ KWWSV ZZZ ZDVKLQJWRQSRVW FRP SROLWLFV LQVLGH WUXPSV ILQDQFLDO WLHV WR UXVVLD DQG KLV XQXVXDO IODWWHU RI YODGLPLU SXWLQ GEGFDDF D H II E F E D VWRU KWPO QRUHGLUHFW RQ XWP WHUP GF G GE 0LFKDHO URZOH KHQ 'RQDOG 7UXPS EURXJKW 0LVV 8QLYHUVH WR 0RVFRZ 3ROLWLFR 0D $0 KWWSV ZZZ SROLWLFR FRP VWRU GRQDOG WUXPS UXVVLD PRVFRZ PLVV XQLYHUVH DURO ' HRQQLJ HW DO 7UXPS¶V EXVLQHVV VRXJKW GHDO RQ D 7UXPS 7RZHU LQ 0RVFRZ ZKLOH KH UDQ IRU SUHVLGHQW DVK 3RVW $XJ KWWSV ZZZ ZDVKLQJWRQSRVW FRP SROLWLFV WUXPSV EXVLQHVV VRXJKW GHDO RQ D WUXPS WRZHU LQ PRVFRZ ZKLOH KH UDQ IRU SUHVLGHQW G H E H G DE H EE D DBVWRU KWPO 1DWKDQ D QH HW DO 5XVVLDQ HOLWH LQYHVWHG QHDUO PLOOLRQ LQ 7UXPS EXLOGLQJV 5HXWHUV 0DU KWWSV ZZZ UHXWHUV FRP LQYHVWLJDWHV VSHFLDO UHSRUW XVD WUXPS SURSHUW 'DYLG JQDWLXV $ KLVWRU RI 'RQDOG 7UXPS¶V EXVLQHVV GHDOLQJV LQ 5XVVLD 7KH DVKLQJWRQ 3RVW 1RY KWWSV ZZZ ZDVKLQJWRQSRVW FRP RSLQLRQV D KLVWRU RI GRQDOG WUXPSV EXVLQHVV GHDOLQJV LQ UXVVLD IE HHG ED H H EH IDEE I H IIEBVWRU KWPO XWPBWHUP HII IH DLWOLQ LOHN $XWKRU FODLPV ULF 7UXPS WROG KLP DOO IXQGLQJ IRU 7UXPS JROI FRXUVHV FRPHV IURP 5XVVLD LQ DVKLQJWRQ DPLQHU 0D Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 61 of 66 KWWSV ZZZ ZDVKLQJWRQH DPLQHU FRP DXWKRU FODLPV HULF WUXPS WROG KLP DOO IXQGLQJ IRU WUXPS JROI FRXUVHV FRPHV IURP UXVVLD LQ $QGUHZ UDPHU HW DO 6HFUHW HGJHU LQ 8NUDLQH LVWV DVK IRU 'RQDOG 7UXPS¶V DPSDLJQ KLHI 1 7LPHV $XJ KWWSV ZZZ Q WLPHV FRP XV SROLWLFV SDXO PDQDIRUW XNUDLQH GRQDOG WUXPS KWPO 0DQDIRUW KHOSHG IXQQHO PRQH WR 86 OREE LVWV IURP SUR 3XWLQ 8NUDLQLDQ SDUW UHSRUW FODLPV R 1HZV $XJ KWWS ZZZ IR QHZV FRP SROLWLFV PDQDIRUW KHOSHG IXQQHO PRQH WR XV OREE LVWV IURP SUR SXWLQ XNUDLQLDQ SDUW UHSRUW FODLPV KWPO 0LFKDHO UDQLVK 7RP DPEXUJHU 3DXO 0DQDIRUW¶V µODYLVK OLIHVW OH¶ KLJKOLJKWHG LQ LQGLFWPHQW DVK 3RVW 2FW KWWSV ZZZ ZDVKLQJWRQSRVW FRP SROLWLFV SDXO PDQDIRUWV ODYLVK OLIHVW OH KLJKOLJKWHG LQ LQGLFWPHQW EG I H D G I E HEBVWRU KWPO XWPBWHUP EE G D GD H 7RP DPEXUJHU 5RVDOLQG 6 HOGHUPDQ RUPHU 7UXPS FDPSDLJQ FKDLUPDQ 3DXO 0DQDIRUW ILOHV DV IRUHLJQ DJHQW IRU 8NUDLQH ZRUN DVK 3RVW -XQH KWWSV ZZZ ZDVKLQJWRQSRVW FRP SROLWLFV IRUPHU WUXPS FDPSDLJQ FKDLUPDQ SDXO PDQDIRUW ILOHV DV IRUHLJQ DJHQW IRU XNUDLQH ZRUN E DF E E H IF F HI EF G BVWRU KWPO XWPBWHUP F F %URRNH 6LQJPDQ 3DXO 0DQDIRUW 5LFN DWHV LQGLFWHG E IHGHUDO JUDQG MXU LQ 5XVVLD SUREH R 1HZV 2FW KWWS ZZZ IR QHZV FRP SROLWLFV UHSRUW SDXO PDQDIRUW ULFN JDWHV WR VXUUHQGHU WR VSHFLDO FRXQVHO KWPO 6RQDP 6KHWK 0DQDIRUW¶V ILQDQFLDO WURXEOHV UDLVH QHZ TXHVWLRQV DERXW ZK KH RIIHUHG WR ZRUN DV DQ XQSDLG YROXQWHHU WR WKH 7UXPS FDPSDLJQ %XVLQHVV QVLGHU HE 30 KWWS ZZZ EXVLQHVVLQVLGHU FRP SDXO PDQDIRUW XNUDLQH GHEW WUXPS FDPSDLJQ XQSDLG YROXQWHHU HQQHWK 3 9RJHO 0DQDIRUW¶V PDQ LQ LHY 3ROLWLFR $XJ 30 KWWSV ZZZ SROLWLFR FRP VWRU SDXO PDQDIRUW XNUDLQH NLHY UXVVLD NRQVWDQWLQ NLOLPQLN 'DYLG 9RUHDFRV 0XHOOHU 'UDZV LQH WR 5XVVLDQ 6S ¶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ase 1 18-cv-03501 Document 1 Filed 04 20 18 Page 62 of 66 6WHYHQ 3LIHU 7UXPS DQG 5XVVLD SHFW D FKDQJH LQ WRQH %XW LQ VXEVWDQFH %URRNLQJV -DQ KWWSV ZZZ EURRNLQJV HGX EORJ RUGHU IURP FKDRV WUXPS DQG UXVVLD H SHFW D FKDQJH LQ WRQH EXW LQ VXEVWDQFH UDQNOLQ RHU 3XWLQ¶V 3XSSHW 6ODWH -XO 30 KWWS ZZZ VODWH FRP DUWLFOHV QHZV DQG SROLWLFV FRYHU VWRU YODGLPLU SXWLQ KDV D SOD QBIRUBGHVWUR LQJBWKHBZHVWBDQGBLWBORRNVBDBORWBOLNH KWPO $QGUHZ DF QVNL HW DO WLPHV 7UXPS WDONHG DERXW 3XWLQ 11 3ROLWLFV 0DU KWWS ZZZ FQQ FRP LQWHUDFWLYH SROLWLFV WUXPS SXWLQ UXVVLD WLPHOLQH 3UHVLGHQWLDO DQGLGDWH 'RQDOG 7UXPS 3ULPDU 1LJKW 6SHHFK 63$1 $SU KWWSV ZZZ F VSDQ RUJ YLGHR GRQDOG WUXPS SULPDU QLJKW VSHHFK VWDUW WUDQVFULSW4XHU SXWLQ -RKQ 6DQWXFFL 7UXPS 6D V µ UHDW RQRU¶ WR HW RPSOLPHQWV IURP µ LJKO 5HVSHFWHG¶ 3XWLQ $% 1HZV 'HF 30 KWWS DEFQHZV JR FRP 3ROLWLFV WUXPS JUHDW KRQRU FRPSOLPHQWV KLJKO UHVSHFWHG SXWLQ VWRU LG 0LFKDHO 5 RUGRQ 1LUDM KRNVKL 7UXPS ULWLFL HV 1$72 DQG RSHV IRU µ RRG 'HDOV¶ LWK 5XVVLD 1 7LPHV -DQ KWWSV ZZZ Q WLPHV FRP ZRUOG HXURSH GRQDOG WUXPS QDWR KWPO $VKOH 3DUNHU 'RQDOG 7UXPS LQ 6FRWODQG DOOV µ%UH LW¶ 5HVXOW µD UHDW 7KLQJ¶ 1 7LPHV -XQH KWWSV ZZZ Q WLPHV FRP XV SROLWLFV GRQDOG WUXPS VFRWODQG KWPO $OH DQGHU 0DOOLQ 7UXPS ULPHD¶V 3HRSOH 3UHIHU 5XVVLD %XW I H¶V OHFWHG 3XWLQ V µ1RW RLQJ QWR 8NUDLQH¶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ase 1 18-cv-03501 Document 1 Filed 04 20 18 Page 63 of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¶V XLOW 3OHD 7LHV DPSDLJQ WR 5XVVLDQ 2IILFLDOV DOO 6W - 2FW 30 KWWSV ZZZ ZVM FRP DUWLFOHV IRUPHU WUXPS IRUHLJQ SROLF DGYLVHU WR SOHDG JXLOW WR O LQJ WR IEL 'HSDUWPHQW RI RPHODQG 6HFXULW DQG WKH HGHUDO %XUHDX RI QYHVWLJDWLRQ 5 67 33 ±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¶V PDLO FKDQJH LWK 5RE ROGVWRQH 7KH $WODQWLF -XO KWWSV ZZZ WKHDWODQWLF FRP SROLWLFV DUFKLYH GRQDOG WUXPSV MUV HPDLO H FKDQJH Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 64 of 66 G G 5 DQ 7HDJXH %HFNZLWK 5HDG 'RQDOG 7UXPS¶V 6XEGXHG 9LFWRU 6SHHFK $IWHU LQQLQJ 1HZ -HUVH 7 0 -XQH KWWS WLPH FRP GRQDOG WUXPS QHZ MHUVH YLFWRU VSHHFK WUDQVFULSW 5HEHFFD DL $OLFLD 3DUODSLDQR KDW H QRZ $ERXW 'RQDOG 7UXPS -U ¶V 5XVVLD 0HHWLQJ 1 7LPHV -XO KWWSV ZZZ Q WLPHV FRP LQWHUDFWLYH XV SROLWLFV GRQDOG WUXPS MU UXVVLD PHHWLQJ KWPO -DPHV 5RJHUV 5XVVLDQ JRYHUQPHQW DIILOLDWHG KDFNHUV EUHDFK '1 WDNH UHVHDUFK RQ 'RQDOG 7UXPS R 1HZV -XQH KWWS ZZZ IR QHZV FRP WHFK UXVVLDQ JRYHUQPHQW DIILOLDWHG KDFNHUV EUHDFK GQF WDNH UHVHDUFK RQ GRQDOG WUXPS KWPO XFFLIHU XFFLIHU '1 ¶V 6HUYHUV DFNHG % $ RQH DFNHU RUGSUHVV -XQH KWWSV JXFFLIHU ZRUGSUHVV FRP GQF G XFFLIHU 'RVVLHU RQ LOODU OLQWRQ IURP '1 RUGSUHVV -XQH KWWSV JXFFLIHU ZRUGSUHVV FRP KLOODU FOLQWRQ XFFLIHU $4 IURP XFFLIHU RUGSUHVV -XQH KWWSV JXFFLIHU ZRUGSUHVV FRP IDT XFFLIHU 7UXPSRFDO SVH DQG 2WKHU '1 3ODQV IRU -XO RUGSUHVV -XO KWWSV JXFFLIHU ZRUGSUHVV FRP WUXPSRFDO SVH 6WDWHPHQW E % 'LUHFWRU -DPHV % RPH RQ WKH QYHVWLJDWLRQ RI 6HFUHWDU LOODU OLQWRQ¶V 8VH RI D 3HUVRQDO 0DLO 6 VWHP % -XO KWWSV ZZZ IEL JRY QHZV SUHVVUHO SUHVV UHOHDVHV VWDWHPHQW E IEL GLUHFWRU MDPHV E FRPH RQ WKH LQYHVWLJDWLRQ RI VHFUHWDU KLOODU FOLQWRQ V XVH RI D SHUVRQDO H PDLO V VWHP 6HDUFK WKH '1 HPDLO GDWDEDVH LNL HDNV -XO $0 KWWSV ZLNLOHDNV RUJ GQF HPDLOV KDW 'RQDOG 7UXPS 6DLG $ERXW 5XVVLDQ DFNLQJ DQG LOODU OLQWRQ¶V PDLOV 1 7LPHV -XO KWWSV ZZZ Q WLPHV FRP XV SROLWLFV WUXPS FRQIHUHQFH KLJKOLJKWV KWPO G G G G $QGUHZ DF QVNL HW DO 7UXPS DGYLVHU 5RJHU 6WRQH UHSHDWHGO FODLPHG WR NQRZ RI IRUWKFRPLQJ LNL HDNV GXPSV 11 0DU KWWSV ZZZ FQQ FRP SROLWLFV NILOH URJHU VWRQH ZLNLOHDNV FODLPV LQGH KWPO Case 1 18-cv-03501 Document 1 Filed 04 20 18 Page 65 of 66 ULF LFKWEODX 1RDK HLODQG DFNHU 5HOHDVHV 0RUH 'HPRFUDWLF 3DUW 'RFXPHQWV 1 7LPHV $XJ KWWSV ZZZ Q WLPHV FRP XV SROLWLFV GHPRFUDWLF SDUW GRFXPHQWV KDFN KWPO G 0DWW 'L RQ 0DUF DSXWR DFNHG ' GRFV GLVK RQ VWUDWHJ DQG VFDQGDO IRU ORULGD FRQJUHVVLRQDO FDQGLGDWHV 3ROLWLFR $XJ KWWSV ZZZ SROLWLFR FRP VWDWHV IORULGD VWRU GFFF KDFN XQHDUWKV GLUW RQ SDUW V RZQ FDQGLGDWHV G $QGUHZ %ODNH 5RJHU 6WRQH 7UXPS FRQILGDQW DFNQRZOHGJHV µLQQRFXRXV¶ 7ZLWWHU FRQYHUVDWLRQ ZLWK '1 KDFNHUV DVKLQJWRQ 7LPHV 0DU KWWSV ZZZ ZDVKLQJWRQWLPHV FRP QHZV PDU URJHU VWRQH WUXPS FRQILGDQW DFNQRZOHGJHV LQQRFXRXV 5 DQ RRGPDQ RZ 5RJHU 6WRQH QWHUDFWHG LWK 5XVVLD¶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ase 1 18-cv-03501 Document 1 Filed 04 20 18 Page 66 of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