Você está na página 1de 13

Case 3:20-cv-02117 Document 1 Filed 03/27/20 Page 1 of 13

 $11(.(':$5'6 6%1 
60,7+*$0%5(// 5866(////3
 6RXWK)ORZHU6WUHHW6XLWH
/RV$QJHOHV&DOLIRUQLD
 7HOHSKRQH
)DFVLPLOH
 (PDLODHGZDUGV#VJUODZFRP

 $WWRUQH\VIRU3ODLQWLII
67(9(1&2'<5(<12/'6
 


 81,7('67$7(6',675,&7&2857
 1257+(51',675,&72)&$/,)251,$
 6$1)5$1&,6&2
 67(9(1&2'<5(<12/'6  &DVH1R
 3ODLQWLII 
6287+)/2:(5675((768,7(
60,7+*$0%5(// 5866(////3

&203/$,17
/26$1*(/(6&$/,)251,$
7(/(3+21(

 YV 
  

 %,1$1&(+2/',1*6/7' 
 'HIHQGDQW 'HPDQG)RU-XU\7ULDO
 
  
 3ODLQWLII6WHYHQ&RG\5H\QROGVDVDQGIRUKLV&RPSODLQWDJDLQVW'HIHQGDQW
 %LQDQFH+ROGLQJV/WGKHUHE\DOOHJHVDVIROORZV
 35(/,0,1$5<67$7(0(17


  6WHYHQ &RG\ 5H\QROGV ³5H\QROGV´ RU ³3ODLQWLII´  LV D FU\SWRFXUUHQF\


 LQYHVWRU DQG SURYLGHV FRQVXOWLQJ DQG DGYLVRU\ VHUYLFHV WR FRPSDQLHV LQ WKH GLJLWDO
 FXUUHQF\LQGXVWU\
  5H\QROGV PDLQWDLQHG D GLJLWDO FXUUHQF\ DFFRXQW ZLWK %LQDQFH +ROGLQJV
 /WG ³%LQDQFH´ RU ³'HIHQGDQW´  D JOREDO FU\SWRFXUUHQF\ H[FKDQJH WKDW SURYLGHV D
 SODWIRUPIRUEX\LQJVHOOLQJDQGVWRULQJGLJLWDOFXUUHQFLHV


 
&203/$,17

Case 3:20-cv-02117 Document 1 Filed 03/27/20 Page 2 of 13


  5H\QROGV ILUVW XVHG %LQDQFH¶V H[FKDQJH WR DFTXLUH %1% WRNHQV DOVR
 NQRZQ DV %LQDQFH &RLQ D FU\SWRFXUUHQF\ LVVXHG E\ %LQDQFH LQ LWV ,QLWLDO &RLQ
 2IIHULQJ ³,&2´ LQ-XQH
  2QH PRQWK ODWHU LQ RU DURXQG -XO\  5H\QROGV ZDV UHWDLQHG E\
 %LQDQFH WR VXSSRUW %LQDQFH¶V RQOLQH FRPPXQLFDWLRQV ZLWK (QJOLVK VSHDNLQJ
 FXVWRPHUV  ,Q WKLV UROH 5H\QROGV ZDV UHVSRQVLEOH IRU SXEOLF IDFLQJ FRPPXQLW\
 PDQDJHPHQWPDQDJLQJPHGLDFKDQQHOVDQGFRPPXQLFDWLQJZLWK(QJOLVKVSHDNLQJ
 FXVWRPHUVSULPDULO\IURPWKH8QLWHG6WDWHV
  %HWZHHQ-XO\DQG'HFHPEHU%LQDQFHFRPSHQVDWHG5H\QROGV
 IRUKLVVHUYLFHVLQWKHIRUPRI%1%WRNHQVZKLFK5H\QROGVVWRUHGLQKLV%LQDQFH
 DFFRXQW
  ,Q DGGLWLRQ WR KLV FRPSHQVDWLRQ 5H\QROGV FRQWLQXHG WR SXUFKDVH %1%
6287+)/2:(5675((768,7(
60,7+*$0%5(// 5866(////3

/26$1*(/(6&$/,)251,$
7(/(3+21(

 WRNHQV DQG DFTXLUH RWKHU GLJLWDO FXUUHQFLHV XVLQJ WKH %LQDQFH SODWIRUP DQG VWRUHG
 WKHVHFU\SWRFXUUHQFLHVLQKLV%LQDQFHDFFRXQWDVZHOO
  ,Q'HFHPEHU5H\QROGVDQG%LQDQFHDJUHHGWKDW5H\QROGVZRXOG
 VWRS SURYLGLQJ VHUYLFHV WR %LQDQFH  7KH VHSDUDWLRQ ZDV DPLFDEOH DW WKH WLPH DQG
 5H\QROGVFRQWLQXHGWRXVHWKH%LQDQFHSODWIRUPWREX\DQGVHOOFU\SWRFXUUHQFLHVDQG
 FRQWLQXHGWRVWRUHGLJLWDOFXUUHQFLHVLQKLV%LQDQFHDFFRXQW
  6HYHUDO ZHHNV ODWHU LQ -DQXDU\  %LQDQFH FRQWDFWHG 5H\QROGV LQ
 UHJDUGVWRDQRQOLQHJURXSFKDWWKDW5H\QROGVDGPLQLVWHUHGRQ7HOHJUDP0HVVHQJHU


 DQ LQGHSHQGHQW DSS ZKHUH XVHUV FDQ SDUWLFLSDWH LQ RQOLQH SXEOLF JURXS FKDWV 
 %LQDQFHUHTXHVWHGWKDW5H\QROGVGHOHWHWKHJURXSFKDW+RZHYHUWKHDSSVHWWLQJVGLG
 QRWSHUPLWFKDWVWREHGHOHWHGRQFHRSHQHGWRWKHSXEOLF
  'D\V ODWHU %LQDQFH FRQWDFWHG 5H\QROGV DJDLQ DQG UHTXHVWHG WKDW KH
 UHPRYH DQ\ UHIHUHQFH WR %LQDQFH LQ WKH JURXS FKDW DQG FKDQJH WKH FKDW¶V QDPH
 5H\QROGVFRPSOLHGZLWKWKLVUHTXHVW
  /DWHUWKHVDPHGD\KRZHYHU5H\QROGVZDVFRQWDFWHGE\%LQDQFH¶V&(2
 &KDQJSHQJ=KDRZKRGHPDQGHGWKDW5H\QROGVGHOHWHWKHFKDWRUUHPRYHDOORIWKH
 
&203/$,17

Case 3:20-cv-02117 Document 1 Filed 03/27/20 Page 3 of 13


 SDUWLFLSDQWV5H\QROGVLQLWLDOO\UHVLVWHGEXWZDVLPPHGLDWHO\WKUHDWHQHGE\=KDRZLWK
 OHJDO DQG ILQDQFLDO GDPDJHV XQOHVV KH FRPSOLHG  7KHQ ZLWKLQ PLQXWHV %LQDQFH
 FDUULHGRXW=KDR¶VWKUHDWV:LWKRXW5H\QROGV¶FRQVHQW%LQDQFHXQLODWHUDOO\ORZHUHG
 5H\QROGV¶ZLWKGUDZDOOLPLWLQKLVDFFRXQWWR]HUR5H\QROGV¶DFFRXQWZDVHIIHFWLYHO\
 IUR]HQDVKHZDVUHVWULFWHGIURPZLWKGUDZLQJDQ\RIKLVDVVHWV
  %LQDQFHWKHQORFNHG5H\QROGVRXWRIKLVDFFRXQWHQWLUHO\+HFRXOGQRW
 ORJLQXVLQJKLVXVHUQDPHDQGSDVVZRUG
  5H\QROGV DWWHPSWHG WR UHVWRUH KLV DFFRXQW WKURXJK %LQDQFH FXVWRPHU
 VHUYLFHEXWKLVDFFHVVZDVUHVWULFWHG5H\QROGVFRXOGQRORQJHUDFFHVVKLVDFFRXQW
 DQGKHFRXOGQRWDFFHVVKLVGLJLWDOFXUUHQF\DVVHWVVWRUHGWKHUHRQ
  $W WKH WLPH 5H\QROGV¶ %LQDQFH DFFRXQW ZDV KROGLQJ DSSUR[LPDWHO\
 ZRUWKRIGLJLWDOFXUUHQFLHV
6287+)/2:(5675((768,7(
60,7+*$0%5(// 5866(////3

/26$1*(/(6&$/,)251,$
7(/(3+21(

  0RQWKVODWHURQRUDERXW0DUFK5H\QROGVZDVDEOHWRUHJDLQ
 DFFHVVWRKLV%LQDQFHDFFRXQW+RZHYHUKLVDFFRXQWEDODQFHZDV]HUR
  %LQDQFH KDG ZLWKRXW 5H\QROGV¶ FRQVHQW RU DXWKRUL]DWLRQ ZURQJIXOO\
 FRQILVFDWHGDOORIWKHGLJLWDODVVHWVWKDW5H\QROGVRZQHGDQGVWRUHGRQWKH%LQDQFH
 SODWIRUP
  ,I 5H\QROGV¶ DVVHWV ZHUH QRW FRQILVFDWHG E\ %LQDQFH 5H\QROGV FRXOG
 KDYH VROG WKH GLJLWDO DVVHWV IRU 86 'ROODUV LQ DQ DPRXQW XS WR  RYHU WKH
 VXEVHTXHQWPRQWKV


  $VDFXUUHQF\H[FKDQJHGRLQJEXVLQHVVLQWKH8QLWHG6WDWHV%LQDQFHKDV
 DGXW\WRLWVFXVWRPHUVWRVDIHO\DQGVHFXUHO\PDLQWDLQWKHLUGLJLWDODVVHWVDQGQRWWR
 XQLODWHUDOO\IUHH]HDQGFRQILVFDWHFXVWRPHUSURSHUW\
  8QLWHG6WDWHVFXVWRPHUVRIFU\SWRFXUUHQF\H[FKDQJHVGRLQJEXVLQHVVLQ
 WKH 8QLWHG 6WDWHV VKRXOG QRW KDYH WR IHDU WKDW WKH H[FKDQJH FRXOG XQLODWHUDOO\ DQG
 ZLWKRXWDXWKRUL]DWLRQVHL]HDQGFRQILVFDWHWKHLUDVVHWVVWRUHGWKHUHRQ
  5H\QROGV EULQJV WKLV DFWLRQ DJDLQVW %LQDQFH VHHNLQJ PRQHWDU\ DQG
 SXQLWLYHGDPDJHVIRUWKLVXQODZIXOVHL]XUHDQGFRQILVFDWLRQRISURSHUW\
 
&203/$,17

Case 3:20-cv-02117 Document 1 Filed 03/27/20 Page 4 of 13


 3$57,(6
  3ODLQWLII5H\QROGVLVDQGZDVDWWKHWLPHRIWKHILOLQJRIWKLVFRPSODLQWD
 FLWL]HQRIWKH8QLWHG6WDWHVDQGDUHVLGHQWRIWKH6WDWHRI2UHJRQ
  8SRQ LQIRUPDWLRQ DQG EHOLHI 'HIHQGDQW %LQDQFH LV D &D\PDQ ,VODQGV
 OLPLWHG FRPSDQ\ ZLWK KHDGTXDUWHUV LQ WKH 5HSXEOLF RI 0DOWD DQG PDLQWDLQV D
 SULQFLSDOSODFHRIEXVLQHVVLQ6DQ)UDQFLVFR&DOLIRUQLDWKURXJKLWVVXEVLGLDU\%LQDQFH
 86
 -85,6',&7,21$1'9(18(
  7KLV&RXUWKDVVXEMHFWPDWWHUMXULVGLFWLRQXQGHU86&†EHFDXVH
 WKHSDUWLHVDUHFLWL]HQVRIGLIIHUHQWVWDWHVDQGWKHDPRXQWLQFRQWURYHUV\DVDOOHJHG
 IXUWKHUKHUHLQH[FHHGVWKHMXULVGLFWLRQDOPLQLPXPRI
  7KLV &RXUW KDV SHUVRQDO MXULVGLFWLRQ RYHU 'HIHQGDQW %LQDQFH IRU WKH
6287+)/2:(5675((768,7(
60,7+*$0%5(// 5866(////3

/26$1*(/(6&$/,)251,$
7(/(3+21(

 IRUHJRLQJUHDVRQV&RPPHQFLQJLQ%LQDQFHSXUSRVHIXOO\GLUHFWHGLWVDFWLYLWLHV
 DWUHVLGHQWVRIWKLVIRUXPE\PDNLQJLWVZHEVLWH%LQDQFHFRPDYDLODEOHWRFLWL]HQVRI
 WKLVVWDWHDQGSURYLGLQJDSODWIRUPIRU8QLWHG6WDWHVFXVWRPHUVWREX\VHOODQGVWRUH
 GLJLWDODVVHWVRQWKHLU%LQDQFHXVHUDFFRXQW8SRQLQIRUPDWLRQDQGEHOLHILQ
 DSSUR[LPDWHO\  RI %LQDQFH FXVWRPHUV ZRUOGZLGH ZHUH ORFDWHG LQ WKH 8QLWHG
 6WDWHV WKH ODUJHVW SURSRUWLRQ E\ FRXQWU\ $IWHU WKH IRUPDWLRQ RI %LQDQFH 86 LQ
 6HSWHPEHU%LQDQFHFRQWLQXHGWRGLUHFWLWVDFWLYLWLHVWRUHVLGHQWVRIWKLVIRUXP
 WKURXJK%LQDQFH868SRQLQIRUPDWLRQDQGEHOLHI%LQDQFHFRQWUROV%LQDQFH86DQG


 XVHV %LQDQFH 86 DV DQ DJHQW DQG LQVWUXPHQWDOLW\ WR FRQWLQXH WR VHUYH %LQDQFH¶V
 8QLWHG6WDWHVFXVWRPHUVWRFRQGXFW%LQDQFH¶VDIIDLUVLQWKH8QLWHG6WDWHVWRHQVXUH
 FRPSOLDQFH ZLWK 8QLWHG 6WDWHV ODZV DQG UHJXODWLRQV DQG WR VHUYH DV %LQDQFH¶V
 SULQFLSDO SK\VLFDO SUHVHQFH LQ WKH 8QLWHG 6WDWHV  8SRQ LQIRUPDWLRQ DQG EHOLHI
 %LQDQFH DQG %LQDQFH 86 RSHUDWH RQ WKH VDPH ZHEVLWH XVH WKH VDPH H[FKDQJH
 SODWIRUP WKH VDPH PDWFKLQJ HQJLQH DQG WKH VDPH ZDOOHW WHFKQRORJLHV  8SRQ
 LQIRUPDWLRQDQGEHOLHI%LQDQFH86LV%LQDQFH¶VDOWHUHJRVXEVLGLDU\DVWKHUHLVVXFK
 DXQLW\RILQWHUHVWRZQHUVKLSDQGFRQWUROWKDWWKHVHSDUDWHSHUVRQDOLWLHVRIWKHWZR
 
&203/$,17

Case 3:20-cv-02117 Document 1 Filed 03/27/20 Page 5 of 13


 HQWLWLHV QR ORQJHU H[LVW %LQDQFH 86 LV UHJLVWHUHG WR GR EXVLQHVV LQ WKH 6WDWH RI
 &DOLIRUQLD DQG LV UHJLVWHUHG DV D PRQH\ VHUYLFHV EXVLQHVV ZLWK WKH 8QLWHG 6WDWHV
 'HSDUWPHQWRIWKH7UHDVXU\)LQDQFLDO&ULPHV(QIRUFHPHQW1HWZRUNZLWKDQDGGUHVV
 RI /HWWHUPDQ 'LJLWDO $UWV &HQWHU 2QH /HWWHUPDQ 'ULYH %XLOGLQJ & 6XLWH & 6DQ
 )UDQFLVFR &$  8SRQ LQIRUPDWLRQ DQG EHOLHI %LQDQFH WKURXJK %LQDQFH 86 KDV
 VLJQLILFDQWRSHUDWLRQVHPSOR\HHVDQGSK\VLFDOSUHVHQFHLQ&DOLIRUQLDXQOLNHLQ0DOWD
 ZKHUH %LQDQFH LV SXUSRUWHGO\ KHDGTXDUWHUHG RU WKH &D\PDQ ,VODQGV ZKHUH LW LV
 SXUSRUWHGO\LQFRUSRUDWHG8SRQLQIRUPDWLRQDQGEHOLHI%LQDQFHFRQWLQXHVWRHQWHU
 LQWR WKRXVDQGV RI WUDQVDFWLRQV DQQXDOO\ ZLWK &DOLIRUQLDEDVHG LQGLYLGXDOV DQG
 EXVLQHVVHV$VVXFK%LQDQFHKDVFRQWLQXRXVDQGV\VWHPDWLFFRQWDFWVZLWK&DOLIRUQLD
 DQG SXUSRVHIXOO\ DYDLOV LWVHOI RI WKH EHQHILWV RI SDUWLFLSDWLRQ LQ WKH &DOLIRUQLD
 PDUNHWSODFHVXIILFLHQWWRUHQGHUWKHDVVXPSWLRQRIJHQHUDOSHUVRQDOMXULVGLFWLRQE\
6287+)/2:(5675((768,7(
60,7+*$0%5(// 5866(////3

/26$1*(/(6&$/,)251,$
7(/(3+21(

 WKLV+RQRUDEOH&RXUWFRQVLVWHQWZLWKWUDGLWLRQDOQRWLRQVRIIDLUSOD\DQGVXEVWDQWLDO
 MXVWLFH
  9HQXH LV SURSHU LQ WKLV MXGLFLDO GLVWULFW XQGHU  86& †  E  
 EHFDXVH'HIHQGDQWLVDUHVLGHQWRIWKLVGLVWULFW
 )$&78$/%$&.*5281'
 $ 3ODLQWLII5H\QROGV
  3ODLQWLII5H\QROGVLVDQH[SHULHQFHGLQYHVWRULQFU\SWRFXUUHQFLHV+HLV
 DOVR D IRXQGHU RI VWDUWXS FRPSDQLHV LQ WKH FU\SWRFXUUHQF\ LQGXVWU\ DQG SURYLGHV


 FRQVXOWLQJDQGDGYLVRU\VHUYLFHVWRFU\SWRFXUUHQF\UHODWHGEXVLQHVVHV
  5H\QROGVVHUYHGLQWKH8QLWHG6WDWHV$UP\DIWHUKLJKVFKRRODQGDWWHQGHG
 WKH8QLWHG6WDWHG0LOLWDU\$FDGHP\DW:HVW3RLQWLQ1HZ<RUN
  )ROORZLQJ KLV VHUYLFH ZLWK WKH 8QLWHG 6WDWHV PLOLWDU\ 5H\QROGV
 GHYHORSHGDNHHQLQWHUHVWLQFU\SWRFXUUHQFLHVDQGVLQFHWKHQKDVZRUNHGLQYDULRXV
 FDSDFLWLHVLQWKHFU\SWRFXUUHQF\LQGXVWU\DWKRPHDQGDEURDG
  ,Q DGGLWLRQ WR LQYHVWLQJ LQ GLJLWDO FXUUHQFLHV 5H\QROGV¶ H[SHULHQFH
 LQFOXGHVVHUYLQJRQDQDGYLVRU\ERDUGDQGSURYLGLQJIUHHODQFHVHUYLFHVWRFRPSDQLHV
 
&203/$,17

Case 3:20-cv-02117 Document 1 Filed 03/27/20 Page 6 of 13


 LQ WKH FU\SWRFXUUHQF\ LQGXVWU\ LQFOXGLQJ EXVLQHVV GHYHORSPHQW FRPPXQLFDWLRQV


 SXEOLFUHODWLRQVFXVWRPHUVHUYLFHFULVLVPDQDJHPHQWDQGIXQGUDLVLQJ
  5H\QROGVKDVDOVREHHQLQYROYHGLQSROLWLFV,Q5H\QROGVUDQIRU
 HOHFWLRQ WR WKH 8QLWHG 6WDWHV +RXVH RI 5HSUHVHQWDWLYHV WR UHSUHVHQW WKH VW
 &RQJUHVVLRQDO'LVWULFWRI2UHJRQDVDPHPEHURIWKH3URJUHVVLYH3DUW\5H\QROGV
 UDQDJDLQLQWRUHSUHVHQWWKHVW&RQJUHVVLRQDO'LVWULFWRI2UHJRQDVDPHPEHU
 RIWKH*UHHQ3DUW\,Q5H\QROGVZRQWKHSULPDU\WREHWKHFDQGLGDWHIRUWKH
 ,QGHSHQGHQW3DUW\WRWKH8QLWHG6WDWHV6HQDWHVHDWIURP2UHJRQ,QWKHHOHFWLRQ
 IRUWKH8QLWHG6WDWHV6HQDWHVHDWIURP2UHJRQ5H\QROGVJDLQHGRYHUYRWHVLQ
 WKHJHQHUDOHOHFWLRQDVWKHFDQGLGDWHIRUWKH,QGHSHQGHQW3DUW\
 % 'HIHQGDQW%LQDQFH
  'HIHQGDQW%LQDQFHLVDFU\SWRFXUUHQF\H[FKDQJHWKDWSURYLGHVDSODWIRUP
6287+)/2:(5675((768,7(
60,7+*$0%5(// 5866(////3

/26$1*(/(6&$/,)251,$
7(/(3+21(

 IRUFXVWRPHUVWREX\VHOODQGVWRUHFU\SWRFXUUHQFLHV
  8SRQLQIRUPDWLRQDQGEHOLHIWKHFRPSDQ\ZDVIRXQGHGLQ&KLQDLQ
 E\&KDQJSHQJ=KDR ³=KDR´ ZKRFXUUHQWO\VHUYHVDVLWV&(2
  8SRQLQIRUPDWLRQDQGEHOLHIWKHFRPSDQ\LVLQFRUSRUDWHGLQWKH&D\PDQ
 ,VODQGV
  8SRQ LQIRUPDWLRQ DQG EHOLHI WKH FRPSDQ\ PRYHG KHDGTXDUWHUV IURP
 &KLQDWR-DSDQLQ6HSWHPEHUDQGIURP-DSDQWR0DOWDLQ0DUFK
  8SRQ LQIRUPDWLRQ DQG EHOLHI %LQDQFH GRHV QRW PDLQWDLQ D VLJQLILFDQW


 RSHUDWLQJ EXVLQHVV LQ 0DOWD RU WKH &D\PDQ ,VODQGV UDWKHU %LQDQFH UXQV D
 ³GHFHQWUDOL]HG RSHUDWLRQ´ DQG %LQDQFH WHDPV DUH EDVHG ZKHUH %LQDQFH RSHUDWHV
 UHJXODWHGEXVLQHVVHVVXFKDV%LQDQFH86
  ,Q 6HSWHPEHU  %LQDQFH RSHQHG %LQDQFH 86 LQ 6DQ )UDQFLVFR
 &DOLIRUQLD%LQDQFH86LVOLFHQVHGWRGREXVLQHVVLQWKH6WDWHRI&DOLIRUQLDDQGZDV
 UHJLVWHUHGDVDPRQH\VHUYLFHVEXVLQHVVZLWKWKH86'HSDUWPHQWRIWKH7UHDVXU\
 )LQDQFLDO&ULPHV(QIRUFHPHQW1HWZRUNLQ'HFHPEHU

 
&203/$,17

Case 3:20-cv-02117 Document 1 Filed 03/27/20 Page 7 of 13


  8SRQ LQIRUPDWLRQ DQG EHOLHI LQ  DSSUR[LPDWHO\  RI %LQDQFH
 FXVWRPHUVZHUHORFDWHGLQWKH8QLWHG6WDWHV
  8SRQ LQIRUPDWLRQ DQG EHOLHI %LQDQFH VWRSSHG VHUYLQJ 8QLWHG 6WDWHV
 FXVWRPHUVLQRUDURXQG-XQHEXWUHVXPHGLQRUDURXQG6HSWHPEHUDIWHU
 ODXQFKLQJ%LQDQFH86
  8SRQ LQIRUPDWLRQ DQG EHOLHI LQ  %LQDQFH KDG DQ DYHUDJH GDLO\
 WUDGLQJYROXPHRI%LOOLRQVHUYLQJPRUHWKDQPLOOLRQFXVWRPHUVDURXQGWKH
 ZRUOG
  ,QDGGLWLRQWRRIIHULQJDFU\SWRFXUUHQF\WUDGLQJSODWIRUP%LQDQFHFUHDWHG
 DFU\SWRFXUUHQF\WRNHQFDOOHG%1%DOVRNQRZQDV%LQDQFH&RLQ$VVHWIRUWKRQ
 %LQDQFH¶V ZHEVLWH %1% ³SRZHUV WKH %LQDQFH (FRV\VWHP $V WKH QDWLYH FRLQ RI
 %LQDQFH&KDLQ%1%KDVPXOWLSOHXVHFDVHVIXHOLQJWUDQVDFWLRQVRQWKH&KDLQSD\LQJ
6287+)/2:(5675((768,7(
60,7+*$0%5(// 5866(////3

/26$1*(/(6&$/,)251,$
7(/(3+21(

 IRU WUDQVDFWLRQ IHHV RQ %LQDQFH ([FKDQJH PDNLQJ LQVWRUH SD\PHQWV DQG PDQ\
 PRUH´
  %1%ZDVFUHDWHGE\%LQDQFHLQ,WZDVILUVWLVVXHGDQGODXQFKHG
 GXULQJ DQ ,QLWLDO &RLQ 2IIHULQJ ³,&2´  FURZGIXQGLQJ HYHQW ZKLFK WRRN SODFH
 EHWZHHQ-XQHDQG-XO\
 & 5H\QROGV3XUFKDVHV%1%7RNHQVLQ%LQDQFH¶V,QLWLDO&RLQ2IIHULQJ
  'XULQJWKH-XQH%LQDQFH,&25H\QROGVSXUFKDVHG%1%XVLQJWKH
 %LQDQFHSODWIRUP


  7KHSXUFKDVHZDVPDGHE\5H\QROGVZKLOHKHZDVLQWKH6WDWHRI2UHJRQ
  $IWHUWKH,&25H\QROGVFRQWLQXHGWRSXUFKDVH%1%DQGFRQWLQXHGWRXVH
 WKH%LQDQFHSODWIRUPWRSXUFKDVHDQGVWRUHRWKHUGLJLWDOFXUUHQFLHV
 ' 5H\QROGVLV5HWDLQHGE\%LQDQFHWR3URYLGH&XVWRPHU6XSSRUW6HUYLFHV
 WR8QLWHG6WDWHV&XVWRPHUVDQGLV&RPSHQVDWHGLQ%1%7RNHQV
  ,Q RU DURXQG ODWH -XO\  IROORZLQJ %LQDQFH¶V ,&2 5H\QROGV ZDV
 UHWDLQHGWRSURYLGHVHUYLFHVWR%LQDQFH

 
&203/$,17

Case 3:20-cv-02117 Document 1 Filed 03/27/20 Page 8 of 13


  6SHFLILFDOO\ 5H\QROGV ZDV UHWDLQHG WR VXSSRUW RQOLQH FRPPXQLFDWLRQV


 ZLWK (QJOLVKVSHDNLQJ XVHUV RI WKH %LQDQFH SODWIRUP  ,Q WKLV UROH 5H\QROGV ZDV
 UHVSRQVLEOHIRUSXEOLFIDFLQJFRPPXQLW\PDQDJHPHQWPDQDJLQJPHGLDFKDQQHOVDQG
 FRPPXQLFDWLQJZLWK(QJOLVKVSHDNLQJFXVWRPHUVSULPDULO\IURPWKH8QLWHG6WDWHV
  5H\QROGV ZDV DVNHG WR SURYLGH VXFK VHUYLFH WR %LQDQFH GLUHFWO\ E\
 %LQDQFH¶V&(2&KDQJSHQJ=KDR=KDRDQG5H\QROGVPHWUHPRWHO\LQ-XO\LQ
 DQRQOLQH6ODFNFKDQQHO6ODFNLVDQLQGHSHQGHQWFRPSDQ\WKDWSURYLGHVRQOLQHSXEOLF
 FKDW URRPV ³FKDQQHOV´   =KDR DQG 5H\QROGV EHJDQ FRPPXQLFDWLQJ LQ WKH 6ODFN
 FKDQQHO DQG =KDR DVNHG 5H\QROGV ZKR ZDV H[SHULHQFHG DQG ZHOO YHUVHG LQ
 FU\SWRFXUUHQFLHV WR SURYLGH WKH DERYHPHQWLRQHG FRPPXQLFDWLRQV VHUYLFHV IRU
 %LQDQFH
  $Q DJUHHPHQW ZDV UHDFKHG ZKHUHE\ 5H\QROGV ZRXOG EH FRPSHQVDWHG
6287+)/2:(5675((768,7(
60,7+*$0%5(// 5866(////3

/26$1*(/(6&$/,)251,$
7(/(3+21(

 ZLWK%1%WRNHQVLQWKHDPRXQWHTXLYDOHQWWR.SHUPRQWKDQGZRXOGEHDOORFDWHG
 %1%WRNHQVDVD%LQDQFHWHDPPHPEHU
  )URP-XQHWR'HFHPEHU5H\QROGVSURYLGHGVDLGVHUYLFHVWR
 %LQDQFHDQGZDVFRPSHQVDWHGIRUKLVVHUYLFHLQWKHIRUPRI%1%WRNHQVZKLFKKH
 NHSWVWRUHGLQKLV%LQDQFHDFFRXQW
  'XULQJ WKH WLPH WKDW 5H\QROGV SURYLGHG VHUYLFHV WR %LQDQFH 5H\QROGV
 ZRXOGZRUNXSWRVHYHQGD\VDZHHNRIWHQXSWRKRXUVDGD\DQVZHULQJTXHVWLRQV
 DQGSURYLGLQJYDULRXVFXVWRPHUVXSSRUWVHUYLFHVRQ%LQDQFH¶VEHKDOI


  5H\QROGV DOVR XVHG WKH %LQDQFH SODWIRUP KLPVHOI DV D FXVWRPHU WR
 SXUFKDVHVHOODQGKROGRWKHUGLJLWDOFXUUHQFLHV
  ,Q'HFHPEHU5H\QROGVDQG%LQDQFHDJUHHGWKDW5H\QROGVZRXOG
 VWRSSURYLGLQJVHUYLFHVWR%LQDQFH
  7KHVHSDUDWLRQZDVDPLFDEOHDWWKHWLPHDQG5H\QROGVFRQWLQXHGWRXVH
 WKH%LQDQFHSODWIRUPWRKROGDQGPDQDJHKLVFU\SWRFXUUHQF\DVVHWV


 
&203/$,17

Case 3:20-cv-02117 Document 1 Filed 03/27/20 Page 9 of 13


 ( %LQDQFH&RQILVFDWHV5H\QROGV¶'LJLWDO$VVHWVLQKLV%LQDQFH$FFRXQW
  6HYHUDOZHHNVDIWHU5H\QROGVFHDVHGSURYLGLQJVHUYLFHWR%LQDQFHLQRU
 DURXQG-DQXDU\%LQDQFHUHDFKHGRXWWR5H\QROGVLQUHJDUGVWRDSXEOLFRQOLQH
 JURXSFKDWWKDW5H\QROGVDGPLQLVWHUHG
  7KH JURXS FKDW ZDV KRVWHG E\ DQ DSS FDOOHG 7HOHJUDP 0HVVHQJHU
 7HOHJUDP0HVVHQJHULVQRWDSDUWRIWKH%LQDQFHSODWIRUP,WLVDQLQGHSHQGHQWDSS
 WKDWDOORZVXVHUVWRSDUWLFLSDWHLQRQOLQHSXEOLFJURXSFKDWV
  5H\QROGV ZDV DVNHG WR GHOHWH WKH JURXS FKDW  +RZHYHU WKH 7HOHJUDP
 0HVVHQJHUDSSVHWWLQJVGLGQRWSHUPLWFKDWVWREHGHOHWHGRQFHRSHQHGWRWKHSXEOLF
  'D\V ODWHU %LQDQFH FRQWDFWHG 5H\QROGV DJDLQ DQG UHTXHVWHG WKDW KH
 UHPRYHDQ\DQGDOOUHIHUHQFHWR%LQDQFHLQWKH7HOHJUDP0HVVHQJHUJURXSFKDWDQG
 WRFKDQJHWKHJURXSFKDW¶VQDPH5H\QROGVDJUHHG5H\QROGVUHPRYHGDOOUHIHUHQFH
6287+)/2:(5675((768,7(
60,7+*$0%5(// 5866(////3

/26$1*(/(6&$/,)251,$
7(/(3+21(

 WR%LQDQFHDQGFKDQJHGWKHQDPHRIWKHJURXSFKDWWR³6WHYH¶V&U\SWR&RUQHU´
  /DWHUWKDWVDPHGD\5H\QROGVZDVFRQWDFWHGGLUHFWO\E\%LQDQFH¶V&(2
 &KDQJSHQJ =KDR ZKR GHPDQGHG WKDW 5H\QROGV GHOHWH WKH JURXS FKDW ZKLFK WKH
 VHWWLQJVGLGQRWDOORZ RUUHPRYHDOORIWKHSDUWLFLSDQWV
  5H\QROGV LQLWLDOO\ UHVLVWHG WKLV UHTXHVW  =KDR KRZHYHU WKH ELOOLRQDLUH
 &(2 RI %LQDQFH ZLWK IDU VXSHULRU ILQDQFLDO UHVRXUFHV UHDFWHG E\ LPPHGLDWHO\
 WKUHDWHQLQJ5H\QROGVZLWKVHYHUHOHJDODQGILQDQFLDOFRQVHTXHQFHVXQOHVV5H\QROGV
 FRPSOLHGZLWKKLVGHPDQGV


  7KHQZLWKLQPLQXWHVRI=KDR¶VWKUHDWV%LQDQFHSURFHHGHGWRFDUU\WKHP
 RXW  ,Q DQ H[WUHPH DFW RI EXOO\LQJ DQG UHWDOLDWLRQ %LQDQFH ± ZLWKRXW 5H\QROGV¶
 FRQVHQW±XQLODWHUDOO\ORZHUHG5H\QROGV¶ZLWKGUDZDOOLPLWLQKLV%LQDQFHDFFRXQWWR
 ]HUR PHDQLQJ WKDW 5H\QROGV FRXOG QRW ZLWKGUDZ DQ\ RI WKH GLJLWDO DVVHWV LQ KLV
 DFFRXQW+LVDFFRXQWZDVIUR]HQ
  7KHQ DJDLQ ZLWKRXW 5H\QROGV¶ FRQVHQW %LQDQFH EORFNHG 5H\QROGV¶
 DFFHVV WR KLV DFFRXQW HQWLUHO\  5H\QROGV FRXOG QRW ORJ LQ XVLQJ KLV XVHUQDPH DQG

 
&203/$,17

Case 3:20-cv-02117 Document 1 Filed 03/27/20 Page 10 of 13


 SDVVZRUG+HFRXOGQRWJDLQDFFHVVWRKLVGLJLWDODVVHWVKHOGRQWKH%LQDQFHSODWIRUP
 %LQDQFHKDGVKXW5H\QROGVRXWDQGORFNHGKLPDZD\IURPKLVSURSHUW\
  $W WKH WLPH 5H\QROGV¶ %LQDQFH DFFRXQW ZDV KROGLQJ DSSUR[LPDWHO\
 ZRUWKRIGLJLWDOFXUUHQFLHV
  0RQWKVODWHURQRUDERXW0DUFK5H\QROGVUHJDLQHGDFFHVVWR
 KLVDFFRXQW+RZHYHU5H\QROGV¶DVVHWVZHUHQRORQJHUWKHUH+LVDFFRXQWVKRZHGD
 EDODQFHRI]HUR
  6HYHUDO PRQWKV DIWHU WKDW LQ RU DURXQG -XO\  5H\QROGV PHW =KDR
 IDFHWRIDFHDWWKH7HFK&UXQFKWHFKQRORJ\FRQIHUHQFHEHLQJKHOGLQ=XJ6ZLW]HUODQG
 5H\QROGVDVNHG=KDRWRUHWXUQKLVFRQILVFDWHGSURSHUW\EXW=KDRUHIXVHG
  %LQDQFH GLG QRWKDYH DXWKRUL]DWLRQ IURP 5H\QROGV WR IUHH]H VHL]H DQG
 FRQILVFDWHKLVGLJLWDODVVHWV
6287+)/2:(5675((768,7(
60,7+*$0%5(// 5866(////3

/26$1*(/(6&$/,)251,$
7(/(3+21(

  5H\QROGV¶ GLJLWDO DVVHWV LQ KLV %LQDQFH DFFRXQW ZHUH XQODZIXOO\
 FRQILVFDWHGE\%LQDQFH
  ,I 5H\QROGV¶ DVVHWV ZHUH QRW FRQILVFDWHG E\ %LQDQFH 5H\QROGV FRXOG
 KDYH VROG WKH GLJLWDO DVVHWV IRU 86 'ROODUV LQ DQ DPRXQW XS WR  RYHU WKH
 VXEVHTXHQWPRQWKV
 
 &$86(62)$&7,21
 


 ),567&$86(2)$&7,21
 &RQYHUVLRQ 
  3ODLQWLIIUHSHDWVDQGUHDOOHJHVWKHIRUHJRLQJSDUDJUDSKVDVLIIXOO\VHWIRUWK
 KHUHLQ
  3ODLQWLII PDLQWDLQHG D FU\SWRFXUUHQF\ DFFRXQW ZLWK %LQDQFH DQG
 GHSRVLWHGGLJLWDODVVHWVRQWKH%LQDQFHSODWIRUP


 
&203/$,17

Case 3:20-cv-02117 Document 1 Filed 03/27/20 Page 11 of 13


  'HIHQGDQW%LQDQFHZLWKRXWSHUPLVVLRQDXWKRUL]DWLRQRUFRQVHQWRIWKH
 3ODLQWLII ZURQJIXOO\ VHL]HG DQG FRQILVFDWHG WKH GLJLWDO DVVHWV GHSRVLWHG E\ DQG
 EHORQJLQJWR3ODLQWLII5H\QROGV
  'HIHQGDQW¶V FRQILVFDWLRQ RI 3ODLQWLII¶V FU\SWRFXUUHQF\ DQG UHIXVDO WR
 UHWXUQWKHIXQGVWR3ODLQWLIIDUHZURQJIXODFWVDQGRPLVVLRQV
  3ODLQWLII ZDV DQG LV HQWLWOHG WR SRVVHVVLRQ RI WKH GHSRVLWHG IXQGV WKDW
 'HIHQGDQWKDVZURQJIXOO\FRQYHUWHG
  $V D GLUHFW DQG SUR[LPDWH UHVXOW RI 'HIHQGDQW¶V ZURQJIXO DFWV DQG
 RPLVVLRQV 5H\QROGV KDV EHHQ GHSULYHG RI KLV ULJKW WR XVH KLV SURSHUW\ FDXVLQJ
 GDPDJHWR3ODLQWLIILQDQDPRXQWWREHGHWHUPLQHGDWWULDOEXWEHOLHYHGWREHQRWOHVV
 WKDQ
  'HIHQGDQW¶VDFWLRQVZHUHNQRZLQJZLOOIXOLQWHQWLRQDODQGPDOLFLRXVDQG
6287+)/2:(5675((768,7(
60,7+*$0%5(// 5866(////3

/26$1*(/(6&$/,)251,$
7(/(3+21(

 MXVWLI\WKHDZDUGRISXQLWLYHGDPDJHV
 
 6(&21'&$86(2)$&7,21
 8QMXVW(QULFKPHQW 
  3ODLQWLIIUHSHDWVDQGUHDOOHJHVWKHIRUHJRLQJSDUDJUDSKVDVLIIXOO\VHWIRUWK
 KHUHLQ
  3ODLQWLIISURYLGHGVHUYLFHVWR%LQDQFHLQH[FKDQJHIRUFRPSHQVDWLRQLQ
 %LQDQFH&RLQZKLFKKHVWRUHGRQKLV%LQDQFHDFFRXQWDQGKHDOVRXVHG%LQDQFH¶V


 H[FKDQJH SODWIRUP WR DFTXLUH DGGLWLRQDO FU\SWRFXUUHQF\ ZKLFK KH VWRUHG RQ KLV
 %LQDQFHDFFRXQWDVZHOO
  'HIHQGDQW ZURQJIXOO\ VHL]HG DQG FRQILVFDWHG DOO RI 5H\QROGV¶ GLJLWDO
 DVVHWVWKDWZHUHVWRUHGLQKLV%LQDQFHDFFRXQW
  7KH FLUFXPVWDQFHV RI 'HIHQGDQW¶V HQULFKPHQW DUH VXFK WKDW HTXLW\ DQG
 JRRGFRQVFLHQFHUHTXLUH'HIHQGDQWWRPDNHUHVWLWXWLRQWR3ODLQWLII
 

 
&203/$,17

Case 3:20-cv-02117 Document 1 Filed 03/27/20 Page 12 of 13


 7+,5'&$86(2)$&7,21
 1HJOLJHQFH 
  3ODLQWLIIUHSHDWVDQGUHDOOHJHVWKHIRUHJRLQJSDUDJUDSKVDVLIIXOO\VHWIRUWK
 KHUHLQ
  'HIHQGDQWRZHG3ODLQWLIIDGXW\WRXVHUHDVRQDEOHFDUHLQSHUIRUPLQJLWV
 GXWLHVDVDQH[FKDQJHDQGGHSRVLWRU\RI3ODLQWLII¶VFU\SWRFXUUHQF\DFFRXQWLQFOXGLQJ
 EXW QRW OLPLWHG WR WKH GXW\ WR   PDLQWDLQ 3ODLQWLII¶V DFFRXQW   HQVXUH WKDW QR
 XQDXWKRUL]HG WUDQVIHUV RU ZLWKGUDZDOV IURP 3ODLQWLII¶V DFFRXQW ZHUH LPSOHPHQWHG
 DQG  FRPSO\ZLWKDOODSSOLFDEOHUHJLVWUDWLRQDQGUHSRUWHGUHTXLUHPHQWVXQGHUVWDWH
 DQGIHGHUDOODZ
  'HIHQGDQWKDVEUHDFKHGWKRVHGXWLHVE\IDLOLQJWRSHUIRUPLWVREOLJDWLRQV
 LQFOXGLQJ E\ IDLOLQJ WR HQVXUH WKDW QR XQDXWKRUL]HG WUDQVIHUV RU ZLWKGUDZDOV IURP
6287+)/2:(5675((768,7(
60,7+*$0%5(// 5866(////3

/26$1*(/(6&$/,)251,$
7(/(3+21(

 3ODLQWLII¶V %LQDQFH DFFRXQW ZHUH LPSOHPHQWHG SUHYHQW PLVDSSURSULDWLRQ LQ


 3ODLQWLII¶V%LQDQFHDFFRXQWDQGIDLOLQJWRFRPSO\ZLWKDOODSSOLFDEOHUHTXLUHPHQWV
 XQGHUVWDWHDQGIHGHUDOODZ
  $VDGLUHFWDQGSUR[LPDWHUHVXOWRI'HIHQGDQW¶VFRQGXFW5H\QROGVKDV
 EHHQGDPDJHGLQDQDPRXQWWREHGHWHUPLQHGDWWULDOEXWEHOLHYHGWREHQRWOHVVWKDQ
 
 
 -85<'(0$1'


  3ODLQWLIIKHUHE\GHPDQGVDWULDOE\MXU\RQDOOLVVXHVWULDEOHE\DMXU\LQ
 WKLVFDVH
 
 :+(5()25(3ODLQWLIIGHPDQGVMXGJPHQWDJDLQVWWKH'HIHQGDQWDVIROORZV
 
 D  $ZDUGLQJ 3ODLQWLII GDPDJHV IRU DOO LQMXULHV VXIIHUHG DV D UHVXOW RI
 'HIHQGDQWV¶ ZURQJGRLQJ LQ DQ DPRXQW WR EH GHWHUPLQHG DW WULDO EXW
 EHOLHYHGWREHQRWOHVVWKDQ
 
&203/$,17

Case 3:20-cv-02117 Document 1 Filed 03/27/20 Page 13 of 13


 E  $ZDUGLQJSXQLWLYHGDPDJHVIRU'HIHQGDQW¶VNQRZLQJZLOOIXOLQWHQWLRQDO
 DQGPDOLFLRXVFRQGXFW
 F  $ZDUGLQJ3ODLQWLIISUHMXGJPHQWDQGSRVWMXGJPHQWLQWHUHVW
 G  $ZDUGLQJ3ODLQWLIIUHDVRQDEOHDWWRUQH\V¶IHHVH[SHQVHVDQGWKHFRVWVRI
 EULQJLQJWKLVDFWLRQDQG
 H  $OOVXFKRWKHUDQGIXUWKHUUHOLHIDVWKH&RXUWGHHPVQHFHVVDU\MXVWDQG
 SURSHU

 

 '$7('0DUFK 60,7+*$0%5(// 5866(////3

 

  %\ /s/ Anne K. Edwards
 $QQH.(GZDUGV

6287+)/2:(5675((768,7(
60,7+*$0%5(// 5866(////3

$WWRUQH\VIRU
/26$1*(/(6&$/,)251,$

67(9(1&2'<5(<12/'6
7(/(3+21(

 

 
















 
&203/$,17 6*5