Chicago-Kent Law Review

Volume 88 Issue 2 The Supreme Court and the American Article 16 Public

April 2013

When Does Sleaze Become A Crime? Redefining Honest Services Fraud after Skilling v. United States

Teresa M. Becvar

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Part of the Business Organizations Law Commons, and the Criminal Law Commons

Recommended Citation Teresa M. Becvar, When Does Sleaze Become A Crime? Redefining Honest Services Fraud after Skilling v. United States, 88 Chi.-Kent L. Rev. 593 (2013). Available at: https://scholarship.kentlaw.iit.edu/cklawreview/vol88/iss2/16

This Notes is brought to you for free and open access by Scholarly Commons @ IIT Chicago-Kent College of Law. It has been accepted for inclusion in Chicago-Kent Law Review by an authorized editor of Scholarly Commons @ IIT Chicago-Kent College of Law. For more information, please contact [email protected], [email protected]. 33531-ckt_88-2 Sheet No. 162 Side A 05/13/2013 14:40:30   –ǯ• ƒǦ ‹ Š ›‘” –”‹ƒŽ ‘ˆ ƒ † ‘ˆ ˆ‘”Ǧ ͻǣ͵ͺ ‡Ž‹‡† ŠƒŽǦ ƒ‹•–  ‘‡•– –‘ –Š‡ ’”‘ˆ‹– —–‘”• –‡ ‘”Ǧ Š‡ˆ‡†Ǧ  ƒ ‡–—”› ǤͳǡͳȋͳͻͻͺȌǤ    Ǥ  Ǥ STATES  Š‡•‡†‡ ‹•‹‘•  Ͷ Ǥ ȋ ‡„Ǥ ͷǡ ʹͲͳͲȌǡ  —–™Šƒ–™ƒ•–Š‡  Š‡˜ƒŽ‹†‹–›‘ˆ–Š‡ ʹ ͳ   ’”‡‡ ‘—”–Ǧ„Žƒ‰‘Ǧ  ˆ‘”‡”Ǧ‰‘˜Ǥ ǡ͸͹Ǥ  Ǥ UNITED 

 ‡‰‹‹‰ ‹ –Š‡ ͳͻͶͲǯ•ǡ  V. ͵  Theory   ǡ     Criminal  Tweaked –Š‡‡‹‰Š–ƒ††‹–‹‘ƒŽ ‘—–•ƒ‰ Ǥ SKILLING ͷͻ͵  Meets    Case

 Fraud    Mail Ȍ ͷȀ͹ȀʹͲͳ͵ Blagojevich      Š—•Šƒ˜Ǥ‹–‡†–ƒ–‡•ǡͳͳ͹ Ǥʹ†ͳͳͲǡͳͳͷȋͷ–Š‹”ǤͳͻͶͳȌǤ  ǡ ȋ e.g.   Ǥ       See, Id. Ǧ ‘‡•–•‡”˜‹ ‡•ˆ”ƒ—†‹•Œ—•–‘‡–‘‘Ž‹–Š‡ˆ‡†‡”ƒŽ‰‘˜‡”‡  ‡„”—ƒ”›ͶǡʹͲͳͲǡ–Š‡‹–‡†–ƒ–‡•––‘”‡›ǯ•ˆˆ‹ ‡‹Š‹   ǫ      ‘ˆˆ‡†‡”ǯ• DzŠ‘‡•– •‡”˜‹ ‡•ǡdz ‡˜‡ ‹ˆ‘‡›‘”’”‘’‡”–›Ǥ –Š‡ ’ƒ”–› ™ƒ• ‘– †‡’”‹˜‡ ‡š–‡•‹˜‡ƒ”•‡ƒŽ—•‡†–‘’”‘•‡ —–‡’—„Ž‹  ‘””—’–‹‘ƒ†’”‹˜ƒ ’‘”ƒ–‡ˆ”ƒ—†ǤŠ‡Š‘‡•–•‡”˜‹ ‡•†‘ –”‹‡‹•ƒ‘—–‰”‘™–Š‘ˆ– ‡”ƒŽƒ‹Žˆ”ƒ—†•–ƒ–—–‡ǡƒŽƒ™–Šƒ–’”‘•‡ —–‘”•˜ƒŽ—‡†ˆ‘”‘˜‡” „‡ ƒ—•‡ ‘ˆ ‹–• •‹’Ž‹ ‹–› ƒ† ƒ†ƒ’–ƒ„‹Ž‹–›Ǥ Ž‡† –‘ ™Šƒ– ‹• ‘™ ƒ• –Š‡ƒ‹–ƒ‹• –Šƒ– Š‘‡•– ƒ –‹‘ƒ„Ž‡ •‡”˜‹ ‡• Šƒ” –Š‡‘”› Žƒ› ‘ˆ ‹ ƒ ˆ”ƒ—†ǡ „‡–”ƒ›‡† ™Š ’ƒ”–›ǯ• ”‹‰Š– ͶǤ ‘—”–• „‡‰ƒ –‘ ‹–‡”’”‡– –Š‡• Š‡‡–‘†‡ˆ”ƒ—†–‘‹ Ž—†‡‘–‘Ž›†‡’”‹˜‹‰•‘‡‘‡‘ˆ‘‡ ƒ‹Ž ˆ”ƒ—† •–ƒ–—–‡ǯ• ’”‘Š‹„‹–‹‘ ’”‘’‡”–›ǡ„—–ƒŽ•‘†‡’”‹˜‹‰‘‡‘ˆ‹–ƒ‰‹„Ž‡”‹‰Š–•Ǥ Š––’ǣȀȀƒ”–‹ Ž‡•Ǥ Š‹ ƒ‰‘–”‹„—‡Ǥ ‘ȀʹͲͳͲǦͲʹǦͲͷȀ‡™•Ȁ Š‹ǦͳͲͲʹͲͷ•— •–‘”›̴ͳ̴™ƒ”‡†Ǧ—’Ǧ‘Ž†Ǧ•‘—’ǦŽ‹‹–•Ǧ‘”Ǧ–‘••‡•Ǧ‹†‹ –‡–Ǧƒ‰ƒ‹•–Ǧ ʹǤ   ͳǤ  ‡ˆˆ ‘‡ǡ  ͳͶǦ Š‘‡•–•‡”˜‹ ‡•–Š‡‘”›ǡ™Š›™ƒ•‹–‹’‡”‹Ž‡†ǡƒ†™Š›†‹†’”‘•‡ ”‡Ž›‘‹–‹–Š‡ˆ‹”•–’Žƒ ‡ǫ ‰‘ †‹† ƒ —”‹‘—• –Š‹‰Ǥ ”‘•‡ —–‘”• ƒ‡†‡† –Š‡‹” ‹†‹ –‡–‡” ŽŽ‹‘‹•‰‘˜‡”‘”‘†Žƒ‰‘Œ‡˜‹ Šˆ‘”•‡‡‹‰–‘‹’”‘’‡”Ž› ‘ˆ ˆ”‘Š‹•‘ˆˆ‹ ‡ǡ‹ Ž—†‹‰‡™ Šƒ”‰‡•Ȅ Šƒ”‰‡•–Šƒ–‘Ž‘‰‡”” ‘ƒ–Š‡‘”›–Šƒ–Žƒ‰‘Œ‡˜‹ Š„”‡ƒ Š‡†Š‹•†—–›–‘’”‘˜‹†‡Š‹•Š•‡”˜‹ ‡•–‘–Š‡’—„Ž‹ ƒ†”‡ˆ”ƒ‹ˆ”‘•‡ŽˆǦ†‡ƒŽ‹‰Ǥ ˆ‡†‡”ƒŽ •–ƒ–—–‡ ”‹‹ƒŽ‹œ‹‰ DzŠ‘‡•– •‡”˜‹ ‡•dz ˆ”ƒ—†Ž‡‰‡†‹–Š‡—’”‡‡‘—”–ǡƒ† Šƒ† „‡‡ Žƒ‰‘Œ‡˜‹ Š ‡•—”‡† –Šƒ– Š‡ ™‘—Ž† ˆƒ ‡ –Š‡‡˜‡‹ˆ–Š‡—’”‡‡‘—”–•–”— –Š‡•–ƒ–—–‡†‘™Ǥ •ƒ‡ ƒŽŽ‡‰ƒ–‹‘• ƒ–  ͵Ǥ  ‡”ƒŽ†‹‡œ‘––‘‘Š”ǡ 33531-ckt_88-2 Sheet No. 162 Side A 05/13/2013 14:40:30 A 05/13/2013 162 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 162 Side B 05/13/2013 14:40:30      Ǧ – ͺ Ǥ    Ǥ ”  –Š‡ ‹‰Ǥ ƒ ‡ ͻǣ͵ͺ  ‡’”‘Ǧ ‘Ž˜‹‰ United ’”‡–‡†  ”’‘”ƒ–‡ ‘•–‹–—Ǧ ‡—†‹•Ǧ ‹‰ˆƒŽ•‡ ƒ’–‡”ȏ‘ˆ †‡ ‹•‹‘Ǥ v.  ‘†‡’”‹˜‡  ‘™‘”–‘‘ –Š‡†‡˜‡ŽǦ ‹ŽŽ‹‰ǡʹͲͳͳ  Skilling McNally after   ͸ –Šƒ––Š‡•–ƒ–—–‡ ‘˜‡”•  ǡ Services  ȏ‘Žͺͺǣʹ  alia  ‡‹–Š‡”•Š‘—Ž†„‡‹–‡” Honest  REVIEW  of  ‡”• ƒ„‘—– ‹–• ˜ƒ‰—‡‡••ǡ  inter LAW  ‡‡‹‰ –‘ „ƒŽƒ ‡ ‘‰”‡••ǯ• ‹Ǧ  „‘†›‘ˆˆ‡†‡”ƒŽƒ’’‡ŽŽƒ–‡’”‡ ‡†‡– ͹  Denial  Š‡Ž†ǡ Dz ‘”–Š‡’—”’‘•‡•‘ˆ–Šȏ‡Ȑ Š  KENT   ”‡•’‘•‡ǡ ‘‰”‡•• •™‹ˆ–Ž› ‡ƒ –‡† the Ǧ  ͷ ‹ŽŽ‹‰ ŠƒŽŽ‡‰‡†Š‹• ‘˜‹ –‹‘‘–Š‡ ͻ States,  ‘–Š•Žƒ–‡”‹ʹͲͳͲǡ‡„‡”•‘ˆ‘‰”‡•• CHICAGO ͳͳ Ȍ ͷȀ͹ȀʹͲͳ͵ Criminalizing United    v. Š‡‘—”–†‡ Ž‹‡†–‘‰‘•‘ˆƒ”ƒ•–‘•–”‹‡†‘™–Š‡   ͳͲ    ”‘ ‡š‡ —–‹˜‡ ‡ˆˆ”‡› ‹ŽŽ‹‰ ƒŽŽ‡‰‡†Ž› ‡‰ƒ‰‡† ‹ ƒ ȋ  ͳʹ ǡ ƒ–ʹͻͲͺǤ ƒ–ʹͻʹͷǦʹ͸Ǥ ƒ–ʹͻ͵ͳǤ  Skilling Ǥ    Š‘Ž†‹‰–Šƒ––Š‡ƒ‹Žˆ”ƒ—†•–ƒ–—–‡™ƒ•Ž‹‹–‡†‹• ‘’‡–‘–Š‡  Id. Id. Id. Ǧ   —‡ ʹͲͳͲȄˆ‘—” ‘–Š• ƒˆ–‡” –Š‡ ‰‘˜‡”‡– ƒ‡†‡† –Š‡ Š‹•‘–‡ƒ”‰—‡•–Šƒ–ƒŽ–Š‘—‰Š–Š‡’”‘’‘•‡† ’”‘’‡”Ž›•‡‡• Š‡—’”‡‡‘—”–Šƒ• —”–ƒ‹Ž‡†–Š‡”ƒ’‹†‡š’ƒ•‹‘‘ˆ–Š‹•˜‡” Skilling  Ǥʹ͹ǡʹ͹ȋʹͲͳͳȌǤ  ’”‘’‘•‡†Ž‡‰‹•Žƒ–‹‘–‘—†‘•‘‡‘ˆ–Š‡‡ˆˆ‡ –•‘ˆ–Š‡ Š‹• ‘‡•–‡”˜‹ ‡•‡•–‘”ƒ–‹‘ –ȋ Ȍ•‡‡•–‘”‡•–‘”‡–Š Š‹„‹–‹‘ ‘ —†‹• Ž‘•‡† •‡ŽˆǦ†‡ƒŽ‹‰ „› ’—„Ž‹  ‘ˆˆ‹ ‹ƒŽ• ƒ†ˆ‹†— ‹ƒ”‹‡•Ǥ ‘   ͷǤ Ͷͺ͵ǤǤ͵ͷͲǡ͵͸ͷȋͳͻͺ͹Ȍȋ–‡˜‡•ǡ Ǥǡ†‹••‡–‹‰ȌǤ ͸Ǥ ͳͺǤǤǤȚͳ͵Ͷ͸ȋͳͻͺͺȌǤ ͹Ǥ Ž‹œƒ„‡–ŠǤŠ‡›ǡ ͷͻͶ ͳͶǦ •–ƒ–—–‡ ƒ• — ‘•–‹–—–‹‘ƒŽǡ „—– Ž‹‹–‡†„”‹„‡”›ƒ†‹ „ƒ •Ǥ ‹–• • ‘’‡ –‘ ƒ•‡• ‹˜ ͻǤ ͺǤ ͳ͵ͲǤ–Ǥʹͺͻ͸ǡʹͻ͵ͳȋʹͲͳͲȌǤ –‡–‹‘–‘’”‡•‡”˜‡–Š‡•—„•–ƒ–‹ƒŽ ƒ””‘™Ž›–‘‡š Ž—†‡Š‹•ƒ –‹‘•‘”•Š‘—Ž†„‡‹˜ƒŽ‹†ƒ–‡†ƒ•— –‹‘ƒŽŽ›˜ƒ‰—‡Ǥ ‰”‘—†•–Šƒ––Š‡Š‘‡•–•‡”˜‹ ‡••–ƒ–—–‡ Žƒ‰‘Œ‡˜‹ Š ‘’Žƒ‹–Ȅ–Š‡ —’”‡‡ ‘—”– Dz‡˜‹• ‡”ƒ–‡†dz –Š‡•‡”˜‹ ‡• Š‘‡• –Š‡‘”› ˆ‘” ƒ •‡ ‘† –‹‡Ǥ ‘Ž›„”‹„‡”›ƒ†‹ „ƒ • Š‡‡•ƒ†‘–—†‹• Ž‘•‡†•‡ŽˆǦ†‡ƒŽ  • Š‡‡–‘†‡ ‡‹˜‡‹˜‡•–‘”•”‡‰ƒ”†‹‰”‘ǯ•ˆ‹ƒ ‹ƒŽ’‡”ˆ‘” „›ƒ‹’—Žƒ–‹‰‹–•’—„Ž‹ Ž›”‡’‘”–‡†ˆ‹ƒ ‹ƒŽ”‡•—Ž–•ƒ†ƒ ƒ†‹•Ž‡ƒ†‹‰•–ƒ–‡‡–•Ǥ –‘”‡•–‘”‡–Š‡Š‘‡•–•‡”˜‹ ‡••–ƒ–—–‡–‘‘ ‡ƒ‰ƒ‹ ”‹‹ƒŽ‹œ Ž‘•‡†•‡ŽˆǦ†‡ƒŽ‹‰ǡ‹•‘‡‹•–ƒ ‡•‹– ”‹‹ƒŽ‹œ‡•–‘‘ƒ”” –Š‡ ǤǤ ‘†‡ –Šƒ– ’”‘Š‹„‹–•Ǯ• Š‡‡‘”ƒ”–‹ˆ‹ ‡–‘†‡ˆ”ƒ—†ǯ‹ Ž—†‡•ƒ• Š‡‡‘”ƒ”–‹ˆ‹ ‡– ƒ‹Ž ˆ”ƒ—† ƒ† ™‹”‡ƒ‘–Š‡”‘ˆ–Š‡‹–ƒ‰‹„Ž‡”‹‰Š–‘ˆŠ‘‡•–•‡”˜‹ ‡•Ǥdz ˆ”ƒ—†Ȑǡ –Š‡ –‡ ͳͺǤǤǤȚͳ͵Ͷ͸ǡ’”‘˜‹†‹‰–Šƒ–ǡ •ƒ–‹Ž‡–Š‡‘”›–™‹ ‡‹–Š‡’ƒ•––Š”‡‡†‡ ƒ†‡•Ǥ –ˆ‹”•–ŠƒŽ–‡† ‘’‡–‘ˆ–Š‡‹–ƒ‰‹„Ž‡”‹‰Š–•†‘ –”‹‡‹ͳͻͺ͹‹  ͳͲǤ  —’Š‘Ž†‹‰ Ț ͳ͵Ͷ͸ ™‹–Š –Š‡ ‘—”–ǯ• ‘ ‘—”–‹ States, ’”‘–‡ –‹‘ ‘ˆ ’”‘’‡”–› ”‹‰Š–•Ǥ  ͳͳǤ   ͳʹǤ Ǥ͵ͺͷͶǡͳͳͳ–Š‘‰ǤȋʹͲͳͲȌǤ 33531-ckt_88-2 Sheet No. 162 Side B 05/13/2013 14:40:30 B 05/13/2013 162 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 163 Side A 05/13/2013 14:40:30   • ‹Ž  Ž‡  ‘ˆ  ‹ ‡• ‹‘• Ž‹œƒǦ ͻǣ͵ͺ –—–‡•  ˆ”ƒ—† –ƒ–—–‡ rea •–•‡”Ǧ ǡͶͺ͵ǤǤ  Skilling ‡‘ˆ–Š‡ ‡• ‘’‡ ’–‡†„› †˜‹‘ŽƒǦ  ‘•‡Ǧ  –•ˆ”ƒ—†ǡ ‘ˆ™Š‹ Š 

Š‡˜‹ –‹ ƒ•‡ Žƒ™ǡ ͳͷ ”– ‘‹‰•  ˆ‹”•–ƒŒ‘” †— –”‹•‡• mens ǡ –Š‡ –Š‡‘”› McNally Skilling   States    ͷͻͷ ‡˜‡•ǡ Ǥǡ†‹••‡–‹‰ȌǤ  United  FRAUD   ǡͳ͵ͲǤ–Ǥƒ–ʹͻʹ͹Ǣ Ǥƒ”– †‡• ”‹„‡•–Š‡ ‘†‹ˆ‹Ǧ v.   ‘™‡˜‡”ǡ‹ͳͻͺ͹ǡ–Š‡—’”‡‡ Skilling  SERVICES States ͳͶ   also    Shushan

see ƒ†•—”˜‡›•–Š‡”‡•–”‹ –‹‘•ƒ†‘ HONEST  United  v.  Ȍ ͷȀ͹ȀʹͲͳ͵ REDEFINING McNally        ‡‰‹‹‰ ™‹–Š  Ǥƒ”– †‹• —••‡•–Š‡ ŠƒŽŽ‡‰‡•‹ ”ƒˆ–‹‰ƒ ‘’”‡Ǧ  ͳ͵  ǡͶͺ͵ǤǤƒ–͵ͷ͸Ǥ ȋ  States    Ǥ  McNally Ǧ   ƒ”– ‘ˆ–Š‡‘–‡ Š”‘‹ Ž‡•–Š‡†‡˜‡Ž‘’‡–‘ˆŠ‘‡•–•‡”˜‹ ‡ Š‡ ”‹‡‘ˆŠ‘‡•–•‡”˜‹ ‡•ˆ”ƒ—†‘”‹‰‹ƒ–‡†‹–Š‡ˆ‡†‡”ƒŽƒ   Ǥ United  ƒ–‹‘‘ˆŠ‘‡•–•‡”˜‹ ‡•ˆ”ƒ—†ƒ†‹–••—„•‡“—‡–Ž‹‹–ƒ–‹‘‹ v. Š‡•‹˜‡Š‘‡•–•‡”˜‹ ‡•–Š‡‘”› –Š‡ ˆ‡†‡”ƒŽ ƒ’’‡ŽŽƒ–‡ ‘—”–• ‹ †‡–‡”‹‹‰ ™Šƒ– ‘†— – ‘•–‹ ƒŠ‘‡•–•‡”˜‹ ‡•˜‹‘Žƒ–‹‘Ǥ ‹ƒŽŽ›ǡƒ”– ƒƒŽ›œ‡•–Š‡•Š‘ ‘ˆ–Š‡ ‘‡•–‡”˜‹ ‡•‡•–‘”ƒ–‹‘ –ƒ†•‡–•‘—–”‡ ‘‡†ƒ– ˆ‘””‡ ‘ ‡‹˜‹‰–Š‡’”‘’‘•‡†Ž‡‰‹•Žƒ–‹‘Ǥ –Š‡‘”›ˆ”‘‹–•”‘‘–•‹–Š‡ˆ‡†‡”ƒŽƒ‹Žˆ”ƒ—†•–ƒ–—–‡–‘‹–• •–—„Ž‹‰„Ž‘ ‹ ‰ƒ‹‡†”‡ ‘‰‹–‹‘™‹–Š‹ˆ‡†‡”ƒŽƒ’’‡ƒŽ• ‘—”–•‘˜‡”–Š‡ ‘—”• •‡ ‘†ŠƒŽˆ‘ˆ–Š‡–™‡–‹‡–Š ‡–—”›Ǥ –Š‡ ”‹‡Ǣƒ†͵Ȍ‹ŽŽ‡‰‹–‹ƒ–‡‰ƒ‹–‘–Š‡ƒ —•‡†‘”Šƒ”–‘– ƒ•ƒŽ–‡”ƒ–‹˜‡•—ˆˆ‹ ‹‡–Ž‹‹–‹‰’”‹ ‹’Ž‡•–‘‡•—”‡–Šƒ– ‘ –‘–Š‡Ž‡˜‡Ž‘ˆ ”‹‹ƒŽˆ”ƒ—†Ǥ   ͳ͵Ǥ  ƒŽŽ›˜Ǥ‹–‡†–ƒ–‡•ǡͶͺ͵ǤǤ͵ͷͲǡ͵͸ͶǦ͸ͷȋͳͻͺ͹Ȍȋ– ͳͶǤ ͳͳ͹ Ǥʹ†ͳͳͲǡͳͳͷȋͷ–Š‹”ǤͳͻͶͳȌǢ ™Š‹ Š ‹• Ž‹––‡”‡† ™‹–Šƒ‡†‡– •Š‘—Ž† †”ƒ™ ƒ —’‘ ’ƒ•– Š‘†‰‡’‘†‰‡ ˆ‡†‡”ƒŽ ƒ’’‡ŽŽƒ–‡ ‘—”– ‘ˆƒ†‹’Ž‡‡–”‡ƒ•‘‡†Ž‹‹–‹‰’”‹ ‹’Ž‡•–‘ Ž‡ƒ”Ž›†‡ˆ‹‡–Š ”ƒ–‹‘ƒ ƒ’’”‘ƒ Š‡•Ǥ •–‡ƒ†ǡ –Š‡ ‘ˆ –Š‡ •–ƒ–—–‡Ǥ  ’ƒ”–‹ —Žƒ”ǡ•Š‘—Ž†•’‡ ‹ˆ›ͳȌ–Š‡•‘—” ‡‘ˆ–Š‡ˆ‹†— ‹ƒ”›†—–›ǡ–Š‡„”‡ƒ Š ƒ ”‡ˆ‘”—Žƒ–‡† Š‘‡•– •‡”˜‹ ‡• • ‘•–‹–—–‡•ˆ”ƒ—†ǢʹȌ–Š‡•’‡ ‹ˆ‹ ‹–‡––‘†‡ˆ”ƒ—†ƒ•–Š‡ ʹͲͳ͵Ȑ „”‘ƒ†ƒ”ƒ‰‡‘ˆ ‘†— –Ǥ‘ƒ††”‡•• ‘ ‡”•ƒ„‘—–‘˜‡” ”‹‹ƒ –‹‘‘ˆ’‡––›‹• ‘†— –ǡƒ„—•‡‘ˆ’”‘•‡ —–‘”‹ƒŽ†‹• ”‡–‹‘ǡƒ –‹‘ ‘ˆ ˆ‡†‡”ƒŽ‹• ’”‹ ‹’Ž‡•ǡ ƒ› ƒ‡†‡– –‘•–ƒ–—–‡ –Š‡ Š‘‡•– —•– •‡”˜ ‰‘ „‡›‘† ”‡•–‘”‹‰ –Š‡ •–ƒ–‡ ‘ˆ ’”‡Ǧ ͳͶǦ “—‡–Ž›ǡ–Š‡‘—”––‡’‘”ƒ”‹Ž›ŠƒŽ–‡†–Š‡‡š’ƒ•‹‘‘ˆ–Š‡Š‘‡ ˜‹ ‡•†‘ –”‹‡Ǥ ‘—”–Ž‹‹–‡†–Š‡ƒ‹Žˆ”ƒ—†•–ƒ–—–‡–‘‡š Ž—†‡‹–ƒ‰‹„Ž‡”‹‰Š Š‘Ž†‹‰ –Šƒ– ƒ • Š‡‡ ‘” ƒ”–‹ˆ‹ ‡•–ƒ–—–‡ –‘ ‘Ž› †‡ˆ”ƒ—† ‹ˆ ˜‹‘Žƒ–‡• –Š‡ ‹– ƒ‹Ž †‡ˆ”ƒ—†• •‘‡‘‡ ‘ˆ ‘‡› ‘” ’”‘’‡”–›Ǥ ƒ–͵͸ͷǤ  ͳͷǤ  ˆ”ƒ—† •–ƒ–—–‡Ǥ 33531-ckt_88-2 Sheet No. 163 Side A 05/13/2013 14:40:30 A 05/13/2013 163 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 163 Side B 05/13/2013 14:40:30     ‡Ž ‡Ǧ  —†ǡ Mail ‘  Ž ƒ•  Ǧ ’”‘Ǧ †‹‰ ͻǣ͵ͺ ’”‡Ǧ  ʹʹ ‡‘” ’ƒ”–‹ƒŽ ‹‘ ‡– Federal  –Š‡•–ƒ–—–‡ †”ƒ’• ƒŽǦ The Ȍ ȋ ‹–‹‰ —”Žƒ† ˜Ǥ ‹–‡†   ‡–Ž› ”‡ƒ†•ǡ ‹ ”‡Ž‡˜ƒ– ’ƒ”–ǡ ‡†Ǥƒ‘ˆˆǡ ͳͺ  †‹ ƒ–‡† –Šƒ– ‡ƒ•—”‡• ‘•‡ ‘ˆǡ Ž‘ƒǡ ‡š Šƒ‰‡ǡ ƒŽ–‡”ǡ ‰‹˜‡  ȏ‘Žͺͺǣʹ ‡ƒ› ‘—–‡”ˆ‡‹–‘”•’—”‹‘—• ‘‹ǡ ”‘’‡”–›„›‡ƒ•‘ˆˆƒŽ•‡‘”ˆ”ƒ—†Ǧ also ”ƒ—† •–ƒ–—–‡ Šƒ• ˆ”‡“—‡–Ž› ”‡’”‡Ǧ ‹•––Š‡‡˜‡”Ǧ‹‘˜ƒ–‹˜‡’”ƒ –‹–‹‘Ǧ  –‘„‡‘”‹–‹ƒ–‡†‘”Š‡Ž†‘—––‘„‡ Statute  see REVIEW  ‘—”–•—‹ˆ‘”Ž›Š‡Ž†–Šƒ––Š‡  ʹͳ Fraud  LAW  –‡† ˆ‘” ƒ‹Ž ˆ”ƒ—† •‹’Ž› „› Dz†  Mail  KENT ʹͲ Ǧ Ǥ ͹͹ͳǡ ͹͹ʹ ȋͳͻͺͲȌ ȋDzȏȐŠ‡”‡ Ž‡‰‹•Žƒ–—”‡• Šƒ˜‡ •‘‡–‹‡•   †‡‡†ǡ ‹ ‡ƒ –‹‰ –Š‡ ƒ‹Ž ˆ”ƒ—† •–ƒ–—–‡ǡ   CHICAGO A. The ǡͶͳ•–‘‰Ǥǡ͵†‡••Ǥ͵ͷȋͳͺ͹ͲȌȋ”‡ƒ”•‘ˆ‡’Ǥ ƒ”•™‘”–ŠȌȌǤ ͳ͹ Ǥ  Ǥ  Š‡ •–ƒ–—–‡ǯ• •’‘•‘” ‹ Ȍ ͷȀ͹ȀʹͲͳ͵   ͳ͸

 Ǥ     ‘”‹•–ƒ ‡ǡƒͳͻͲͻƒ‡†‡–ƒ††‡†–Š‡™‘”†•Dz‘” ǡ ͳͺ    Š‹• ‘•–”— –‹‘ ‘’‡‡† —’ –Š‡ †‘‘” –‘ ’”‘•‡ —–‹‘ I)   ͳͻ ʹ͵  ǡͶͺ͵ǤǤƒ–͵ͷ͹ǦͷͺǤ ǡͶͺ͵ǤǤƒ–͵ͷͺǤ ǡͶͺ͵ǤǤƒ–͵͹Ͷȋ–‡˜‡•ǡ Ǥǡ†‹••‡–‹‰ȌǢ ȋ  (Part  id.  ȋ“—‘–‹‰ ƒ–͵ͷͷǤ  Ǥ    McNally McNally McNally See Id. Id. Ǧ Statute Š‡ˆ‹”•–ˆ‡†‡”ƒŽƒ‹Žˆ”ƒ—†•–ƒ–—–‡ǡ‡ƒ –‡†‹ͳͺ͹ʹǡ„”‘ƒ†Ž› ˜‡” –Š‡ ‘—”•‡ ‘ˆ –Š‡ ’ƒ•– ‡–—”›ǡ –Š‡ ƒ‹Ž ˆ”ƒ—† •–ƒ–—–‡ ™ƒ•  ‘•–”—‹‰–Š‡–™‘’Š”ƒ•‡•ǡDzƒ›• Š‡‡‘”ƒ”–‹ˆ‹ ‡–‘†‡ˆ”ƒ   ˆ‘”‘„–ƒ‹‹‰‘‡›‘”’”‘’‡”–›ǡdz ‡”•‘ˆ†‡ ‡‹–ǤdzȌǤ  ʹͲǤ  or „‡‡ •Ž‘™ –‘ ‡ƒ – •’‡ ‹ˆ‹  ’”‘Š‹„‹–‘”› Ž‡‰‹•Žƒ–‹‘ǡ –Š‡ ƒ‹Ž ˆ •‡–‡†–Š‡•‘Ž‡‹•–”—‡–‘ˆŒ—•–‹ ‡–Šƒ– ‘—Ž†„‡™‹‡Ž†‡†ƒ‰ƒ  ʹͳǤ ͳͺ ǤǤǤ Ț ͳ͵Ͷͳ ȋʹͲͲͺȌ ȋ‹–ƒŽ‹ • ƒ††‡†ȌǤ Š‡ •–ƒ–—–‡ —”” Dzƒ›• Š‡‡‘”ƒ”–‹ˆ‹ ‡–‘†‡ˆ”ƒ—†ǡ‘”ˆ‘”‘„–ƒ‹‹‰‘‡›‘”’ —Ž‡– ’”‡–‡•‡•ǡ ”‡’”‡•‡–ƒ–‹‘•ǡ ‘” ’”‘‹•‡•ǡ ‘” –‘ƒ™ƒ›ǡ†‹•–”‹„—–‡ǡ•—’’Ž›ǡ‘”ˆ—”‹•Š‘”’”‘ —”‡ˆ‘”—Žƒ™ˆ—Ž—• •‡ŽŽǡ †‹•’ ‘„Ž‹‰ƒ–‹‘ǡ•‡ —”‹–›ǡ‘”‘–Š‡”ƒ”–‹ Ž‡ǡ‘”ƒ›–Š‹‰”‡’”‡•‡–‡† •— Š ‘—–‡”ˆ‡‹–‘”•’—”‹‘—•ƒ”–‹ Ž‡ǤǤǤdz  ʹʹǤ  †‹•Œ— –‹˜‡™‘”†‹‰‡ƒ––Šƒ–ƒ• Š‡‡‡‡†‘–‹˜‘Ž˜‡†‡ˆ”ƒ— •‘‡‘‡ ‘ˆ ‘‡› ‘” ’”‘’‡”–› ‹ ‘”†‡” –‘ ˜‹‘Žƒ–‡ –Š‡ •–ƒ–—–‡Ǥ –ƒ–‡•ǡͳ͸ͳǤǤ͵Ͳ͸ǡ͵ͳͶȋͳͺͻ͸ȌȌǤ  ͳͻǤ   ͳͺǤ ‹–‡† –ƒ–‡• ˜Ǥ ”‡™‡”ǡ ͷʹͺ Ǥʹ† Ͷͻʹǡ Ͷͻͺ ȋͶ–Š ‹”Ǥ ͳͻ͹ͷ   ͳ͸Ǥ  ͷͻ͸ ͳͶǦ  ͳ͹Ǥ  „‡‹‰—•‡†ƒ•ƒ‹•–”—‡––‘’‡”’‡–”ƒ–‡ ”‹‡Ǥ ‘‰”‡•• ‹–‡†‡† –‘ ’”‡˜‡– –Š‡ ‹–‡† –ƒ–‡• ’‘•–ƒŽ •›•–‡ ˆ” •–‡ƒ†ǡ ƒ ’‡”•‘ ‘—Ž† „‡ ’”‘•‡ — ˆ”ƒ—†ȏ‹‰Ȑ ‹–‹œ‡• ‘ˆ –Š‡‹” ‹–ƒ‰‹„Ž‡ ”‹‰Š–•‰‘˜‡”‡–Ǥdz –‘ Š‘‡•– ƒ† ‹ ™‡”‡‡‡†‡†Dz–‘’”‡˜‡––Š‡ˆ”ƒ—†•ǤǤǤ„›–Š‹‡˜‡•ǡˆ‘”‰‡”•ǡƒ Ž‹‘•‰‡‡”ƒŽŽ›ǡˆ‘”–Š‡’—”’‘•‡‘ˆ†‡ ‡‹˜‹‰ƒ†ˆŽ‡‡ ‹‰–Š‡ ’‡‘’Ž‡ ‹ –Š‡ ‘—–”›Ǥdz ˆ‘”‘„–ƒ‹‹‰‘‡›‘”’”‘’‡”–›„›‡ƒ•‘ˆˆƒŽ•‡‘”ˆ”ƒ—†—Ž‡– –‡•‡•ǡ”‡’”‡•‡–ƒ–‹‘•ǡ‘”’”‘‹•‡•dz‹‘”†‡”–‘ Žƒ”‹ˆ›–Šƒ– ƒ’’Ž‹‡† –‘ ‹•”‡’”‡•‡–ƒ–‹‘• ƒ• –‘ –Š‡ ’ƒ•–’”‘‹•‡•ƒ„‘—–ˆ—–—”‡ ‘†— –Ǥ ƒ† ’”‡•‡– ƒ• ™‡Ž „ƒ•‡†‘ƒŠ‘‡•–•‡”˜‹ ‡•–Š‡‘”›‘ˆˆ”ƒ—†Ǥ Š‹„‹–‡†–Š‡—•‡‘ˆ–Š‡‹–‡†–ƒ–‡•ƒ‹Ž•–‘ƒ†˜ƒ ‡Dzƒ›• Š‡ƒ”–‹ˆ‹ ‡ ‘” †‡ˆ”ƒ—†Ǥdz ƒ‡†‡† •‡˜‡”ƒŽ –‹‡• ‹ ‘”†‡” –‘–›’‡•‘ˆˆ”ƒ—†Ǥ ‡Žƒ”‰‡ ‹–• ‘˜‡”ƒ‰‡ ‘˜‡” ‘˜  ʹ͵Ǥ  Fraud 33531-ckt_88-2 Sheet No. 163 Side B 05/13/2013 14:40:30 B 05/13/2013 163 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 164 Side A 05/13/2013 14:40:30 ǡ †  ƒ   • –Š‡ ™‹–Š of ͻǣ͵ͺ  • –Š‡   ”ƒ†‹Ǧ ‘”’ƒ›Ǧ ƒ‰‹„Ž‡ ʹͻ —•–‹ dz Shushan  ‘–”ƒ –Ǥ †‹‰–Šƒ–‡˜‡ ‹ƒ‰‡”‡ŽƒǦ Theory  Š‡ ‘—”–”‡Œ‡ –Ǧ Rights   ʹ͹ ͵͵  ͷͻ͹  ͳȌǤ •ǡ‹ Ž—†‹‰ –Š‡ •–ƒ–‡‘ˆ ŽŽ‹‘‹•ǡ Ž‡‘ˆ ŽŽ‹‘‹•ǤǤǤ™‡”‡†‡ˆ”ƒ—†‡†‘ˆ Dz–Š‡›ƒ”‡‘‡–Š‡Ž‡••ˆ”ƒ—†••‹ ‡ ǡƒ‰”‘—’‘ˆ„—•‹‡••‡ Ǣ‹–‡†–ƒ–‡•˜Ǥƒ—Š‘ˆˆǡͷʹͷ Ǥʹ† ˆ”‘„”‹„‡”›ǡ–Š‡‹””‹‰Š––‘Ž‘›ƒŽƒ† FRAUD  •‡š‡’Ž‹ˆ‹‡†‹  Intangible •‡•‡ ”‡–’”‘ˆ‹–•‘„–ƒ‹‡†„›ȏ–Š‡• Š‡Ǧ  Š‡ ‘—”–•–”‡••‡†–Šƒ–Dzƒ› ͵ʹ ʹͺ an  Shushan SERVICES Š‡• –Š‡ †‡ˆ”ƒ—†‡” ‹•–‡ƒ† ‘ˆ  Fraud –Šǡ–Š‡’—„Ž‹ ‘ˆˆ‹ ‹ƒŽ†‡’”‹˜‡ and    ʹͷ HONEST   ‘™‡˜‡”ǡ –Š‡ Š‘‡•– •‡”˜‹ ‡• †‘ –”‹‡ States ͵Ͳ   ‹• ‘•‹†‡”‡† –‘ Šƒ˜‡ ˆ‹”•– ƒ”–‹ —Žƒ–‡† ƒ ‹Ǧ ʹͶ Ȍ ͷȀ͹ȀʹͲͳ͵ United REDEFINING  v. ‘”›‘ˆˆ”ƒ—†Ǥ  Š‡• Š‡‡‡–ƒ‹Ž‡†–Š‡„”‹„‡”›‘ˆƒ„‘ƒ”†‡’Ž‘›Ǧ   ʹ͸  ‹–‡†–ƒ–‡•˜Ǥ‹š‘ǡͷ͵͸ Ǥʹ†ͳ͵ͺͺǡͳͶͲͲȋʹ†‹”Ǥͳͻ͹͸ȌȋŠ‘Ž    ǡͳ͵ͲǤ–ƒ–ʹͻʹ͸Ǥ ȋ also  ‹ŽŽ‹‰˜Ǥ‹–‡†–ƒ–‡•ǡͳ͵ͲǤ–Ǥʹͺͻ͸ǡʹͻʹ͸ȋʹͲͳͲȌǤ see  ƒ–ͳͳͻǤ ƒ–ͳͳͷǤ  ƒ–Š‡”–Šƒ†‡’”‹˜‡–Š‡˜‹ –‹‘ˆ–ƒ‰‹„Ž‡‘‡›‘”’”‘’‡”–›ǡ Ǥ      Ǣ  See Id. Id. Id. Skilling Id. Id. Id. ͵ͳ Ǧ B. Shushan ͳͻͶͳ ‹ˆ–Š‹” —‹–‘’‹‹‘ ‘ ‡”‹‰–Š‡ ‘””—’–†‡ƒŽ‹‰•‘ˆ Š‡ Š‘‡•– •‡”˜‹ ‡• †‘ –”‹‡ ‘ˆ ˆ”ƒ—† †‹ˆˆ‡”• ˆ”‘ –”ƒ†‹–‹‘ƒŽ  Ž‘ ƒŽ ‰‘˜‡”‹‰ „‘ƒ”† ˆƒ˜‘”ƒ„Ž‡–‡”•Ǥ • Š‡‡†–‘‹ˆŽ—‡ ‡–Š‡„‘ƒ”†–‘ƒ™ƒ”†–Š‡ƒ’—„Ž‹  ‘–”ƒ – ‘‡›–Š”‘—‰Š–Š‡‹ŽŽǦ‰‘––‡ ‘–”ƒ –Ǥ ‡† –Š‡ ƒ”‰—‡–„—•‹‡••‡ –Šƒ– ‹–‡†‡† –‘ –Š‡ †‡ˆ”ƒ—† „‡ ƒ—•‡ ’”‘•‡ —–‹‘ –Š‡ „‘ƒ”† ˆƒ‹Ž‡† ƒ –—ƒŽŽ› •ƒ˜‡ –‘ ’”‘˜‡ –Šƒ– –Š‡ –ƒ‰‹„Ž‡”‹‰Š–•–Š‡ ’—„Ž‹ ‘ˆ‹–•”‹‰Š––‘–Š‡‘ˆˆ‹ ‹ƒŽǯ•DzŠ‘‡•–•‡”˜‹ ‡•Ǥdz –Š‡’ƒ”ƒ†‹‰ƒ–‹ Š‘‡•–•‡”˜‹ ‡•ˆ”ƒ—† ƒ•‡‹˜‘Ž˜‡•ƒ ‘–”ƒ – ‹‰ƒ„”‹„‡–‘ƒ’—„Ž‹ ‘ˆˆ‹ ‹ƒŽ‹‡š Šƒ‰‡ˆ‘”–Š‡ƒ™ƒ”†‘ˆƒ ‡‰ƒ”†Ž‡•• ‘ˆ ™Š‡–Š‡” –Š‡ ‘–”ƒ – ’”‘˜‹†‡•–Šƒ „‡––‡” ‘‡ ‘” ‡‰‘–‹ƒ–‡† ™‘”•‡ ƒ– –‡” ƒ”•ǦŽ‡‰   ʹͶǤ Š—•Šƒ˜Ǥ‹–‡†–ƒ–‡•ǡͳͳ͹ Ǥʹ†ͳͳͲǡͳͳͶȋͷ–Š‹”ǤͳͻͶ ʹͷǤ  ʹͲͳ͵Ȑ ͳͶǦ  ʹ͸Ǥ ͳͳ͹ Ǥʹ†ƒ–ͳͳͶǦͳͷǤ ʹ͹Ǥ  ‹–”‘†— ‡• ƒ –Š‹”† ’ƒ”–› ™Š‘ ‡”‹ ˜‹ –‹Ǥ • Š‡‡–‘‘„–ƒ‹ƒƒ†˜ƒ–ƒ‰‡„› ‘””—’–‹‰ȏƒ’—„Ž‹ ‘ˆˆ‹ ‹ƒŽȐ –Š‡ˆ‡†‡”ƒŽŽƒ™„‡ ‘•‹†‡”‡†ƒ• Š‡‡–‘†‡ˆ”ƒ—†ȏ–Š‡’—„Ž‹ ȐǤ ‡‡ƒ†‹ „ƒ •’ƒ‹†‘—––‘‘–Š‡”„‘ƒ”†‡„‡”•Ǥ –‹‘ƒŽŽ›ǡƒ˜‹ –‹ǯ•Ž‘••‹•ƒ†‡ˆ”ƒ—†‡”ǯ•‰ƒ‹ǡ™‹–Šƒ‹””‘”Ǧ –‹‘•Š‹’ „‡–™‡‡ –Š‡ –™‘Ǥ ˆ”ƒ—†‹‹–•”‡Žƒ–‹‘•Š‹’„‡–™‡‡–Š‡†‡ˆ”ƒ—†‡”ƒ†–Š‡˜‹ –‹Ǥ ”‹‰Š––‘–Š‡†‡ˆ”ƒ—†‡”ǯ•Š‘‡•–•‡”˜‹ ‡•Ǥ –Š‡†‡ˆ”ƒ—†‡”ƒ†–Š‡–Š‹”†’ƒ”–›†‡’”‹˜‡–Š‡˜‹ –‹‘ˆŠ‹•‹–  ʹͺǤ   ʹͻǤ   ͵ͲǤ   ͵ͳǤ   ͵ʹǤ  ͳͳ͹Ͳǡͳͳ͹ͷȋ͹–Š‹”Ǥͳͻ͹ͷȌȋŠ‘Ž†‹‰–Šƒ–‡˜‡–Š‘—‰ŠƒŽŽ’ƒ”–‹‡ –Š‡‹””‹‰Š––‘Šƒ˜‡–Š‡„—•‹‡••‘ˆ–Š‡ȏ–ƒ–‡Ȑ ‘†— –‡†ˆ”‡‡ ˆƒ‹–Šˆ—Ž•‡”˜‹ ‡‘ˆ–Š‡‹”•–ƒ–‡‘ˆˆ‹ ‹ƒŽ•ǡƒ†–Š‡”‹‰Š––‘–Š‘ –Š‘—‰Šƒ’—„Ž‹ ‘ˆˆ‹ ‹ƒŽǯ•ƒ –‹‘•ƒ›Šƒ˜‡‡”‹ Š‡†–Š‡ˆ‹• ǡ –Š‡’—„Ž‹ ‘ˆˆ‹ ‹ƒŽŠƒ•„‡‡’ƒ‹†–‘ƒ –‹„”‡ƒ ŠŠ‹•†—–‹‡•dzȌ ™‡”‡”‡ƒ’‹‰’”‘ˆ‹–•ƒ•ƒ”‡•—Ž–‘ˆƒ„”‹„‡”›• Š‡‡ǡ–Š‡Dz’‡‘’ ‡”ȐdzȌǤ  ͵͵Ǥ  33531-ckt_88-2 Sheet No. 164 Side A 05/13/2013 14:40:30 A 05/13/2013 164 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 164 Side B 05/13/2013 14:40:30     ͹ǡ  ‘– ͵ͻ ‹‰ Dz†‡Ǧ „—– ͻǣ͵ͺ ‡˜‡•ǡ ‘Ǧ  ˆ”ƒ—† ‘’‡”Ǧ ‡‡† Žƒ–‹˜‡ † –Š‡ ‡Šƒ† ‡ƒ‹Ž „Ž›„‡ ‡ˆ”ƒ—† ‡ ƒ—•‡ –‘†‡Ǧ ‡’”‹˜ƒǦ •–Š‡‘”› Theory ƒ‡–‹–›  ƒ Š‹‰Ǥdz Rights  ǡͳ͵ͲǤ–ƒ–ʹͻʹ͹Ǥ ͳͺͺȋͳͻʹͶȌȌǤ ǡ –Š‡ —’”‡‡ ‘—”– Skilling   ‡•’‹–‡ –Š‡•‡ ‘ ‡•Ǧ also   ȏ‘Žͺͺǣʹ Ͷͳ Intangible  Š‡ ƒ‹Ž ˆ”ƒ—† ‘—– ƒŽǦ  States see   ͵͸ the  ͵͹  REVIEW  ͵ͷ United LAW   ‡˜‹•‡† ƒ • Š‡‡ǤǤǤ –‘ †‡ˆ”ƒ— v. ‘–‡ͳ͹ȌǤ Halting   KENT ƒ† ƒ ’”‹˜ƒ–‡ ‹†‹˜‹†—ƒŽ ™Š‘ • Š Ǧ supra ǡ States:   McNally

 CHICAGO  ‡ˆ—”–Š‡””‡ ‘‰‹œ‡†–Šƒ–‡ƒ Š‘ˆ–Š‡‘—”–• Ǥ ͶͲ Ȍ ͷȀ͹ȀʹͲͳ͵  United   v.       ‹˜‘Ž˜‡† –Š‡ ‘•’‹”ƒ › ƒ† ƒ‹Ž ˆ”ƒ—† ‘˜‹ –‹‘• ‘ˆ ƒ ǡͶͺ͵ǤǤƒ–͵͸ͷȋ–‡˜‡•ǡ Ǥǡ†‹••‡–‹‰ȌǤ ȋ  Dzˆ‘” ‘„–ƒ‹‹‰ ‘‡› ‘” ’”‘’‡”–› „› ‡ƒ• ‘ˆ ˆƒŽ•‡ ‘”  ‘™‡˜‡”ǡ ‹ or ƒ–͵ͷʹǦͷ͵Ǥ ƒ–͵ͷ͵Ǥ ƒ–͵ͷ͸ȋ“—‘–‹‰  ͵Ͷ Ǥ ƒ–͵ͷͺȋ“—‘–‹‰ ƒ‡”• Š‹†–˜Ǥ‹–‡†–ƒ–‡•ǡʹ͸ͷǤǤͳͺʹǡ ƒ–͵ͷͺǤ      Id. Id. McNally Id. Id. Id. Id. Ǧ C. McNally –‹Ž–Š‡—’”‡‡‘—”––‘‘—’‹–ƒ‰‹„Ž‡”‹‰Š–•–Š‡‘”›‹ͳͻͺ ƒ‘’‹‹‘„› —•–‹ ‡Š‹–‡ǡ–Š‡‘—”–Œ—•–‹ˆ‹‡†Ž‹‹–‹‰–Š —•–‹ ‡ Š‹–‡ ƒ ‘™Ž‡†‰‡† –Šƒ– –Š‡ †‹•Œ— –‹˜‡ ’Š”ƒ•‹‰ ‘ˆ Dz–‘ McNally  ƒ††‹–‹‘ǡ–Š‡™‘”†•Dz–‘†‡ˆ”ƒ—†ǤǤǤ—•—ƒŽŽ›•‹‰‹ˆ›–Š‡†  ͵ͺ ƒŽŽ–Š‡ ‡†‡”ƒŽ‘—”–•‘ˆ’’‡ƒŽ•™Š‹ ŠŠƒ† ‘•‹†‡”‡†–Š‡‹••— Š‡Ž†–Šƒ––Š‡ƒ‹Žˆ”ƒ—†•–ƒ–—–‡•—’’‘”–‡†–Š‡‹–ƒ‰‹„Ž‡”‹‰Š– ‘ˆ ˆ”ƒ—†Ǥ ”‡Œ‡ –‡† –Š‹• ’‘•‹–‹‘ ƒ† Š‡Ž† –Šƒ– Dzƒ • Š‡‡ ‘” ƒ”–‹ˆ‹ ‡ –‘ † †‘‡• ‘– ˜‹‘Žƒ–‡ –Š‡ ȏƒ‹Ž ˆ”ƒ—†Ȑ •–ƒ–—–‡ —Ž‡••ˆ”ƒ—†•‘‡‘‡‘ˆ‘‡›‘”’”‘’‡”–›Ǥdz ‹–• ’—”’‘•‡ ‹• •‹‘•ǡ Š‹–‡ ƒ‹–ƒ‹‡† –Šƒ– –Š‡ ‘‡›Ǧ‘”Ǧ’”‘’‡”–› ’Š”ƒ•‡ ™ƒ•ƒ††‡†  ™‹–Š –Š‡ ‹–‡– –‘ •—’’‘”– ƒ „”‘ƒ† †‡ˆ‹‹–‹‘ ‘ˆ †‡ˆ”ƒ—†ǡ  ͵ͻǤ  ͶͲǤ    ͵ͶǤ  ƒŽŽ›˜Ǥ‹–‡†–ƒ–‡•ǡͶͺ͵ǤǤ͵ͷͲǡ͵ͷͺȋͳͻͺ͹ȌǢ ͷͻͺ  ͵ͷǤ  ͳͶǦ –‹‘‘ˆ•‘‡–Š‹‰‘ˆ˜ƒŽ—‡„›–”‹ ǡ†‡ ‡‹–ǡ Š‹ ƒ‡ǡ‘”‘˜‡””‡ ˆ”ƒ—† •–ƒ–—–‡ –‘ ‡š Ž—†‡ ‹–ƒ‰‹„Ž‡ ”‹‰Š–•‹–‡–ƒ†–Š‡ ‘‘—†‡”•–ƒ†‹‰‘ˆ–Š‡‡ƒ‹‰‘ˆ–Š‡™‘”† ˆ”ƒ—† „ƒ•‡† ‘ Ž‡‰‹• ˆ”ƒ—†ǤdzŠ‹–‡ˆ‘—†–Šƒ––Š‡•–ƒ–—–‡’”‘–‡ –•’”‘’‡”–›”‹‰Š–•„ ‹–•‘”‹‰‹ƒŽ’—”’‘•‡™ƒ•–‘’”‘–‡ –’‡‘’Ž‡ˆ”‘• Š‡‡•Dz„›ˆ‘”‰‡”•ǡ –Š‹ ƒ† ”ƒ’• ƒŽŽ‹‘•dz –‘ †‡’”‹˜‡ –Š‡ ‘ˆ –Š‡‹” ‘‡›–›Ǥ ‘” ’” Ž‡‰‡† –Šƒ– –Š‡ †‡ˆ‡†ƒ–• DzŠƒ† † ‹–‹œ‡• ƒ† ‰‘˜‡”‡– ‘ˆ ‡–— › ‘ˆ –Š‡‹” ”‹‰Š– –‘‘™‡ƒŽ–Šǯ•ƒˆˆƒ‹”• ‘†— –‡†Š‘‡•–Ž›Ǥdz Šƒ˜‡ –Š‡ ‘ˆ’’‡ƒŽ•™Š‹ ŠŠƒ†ƒ††”‡••‡†–Š‡‹••—‡Šƒ† ‘•–”—‡†–Š‡‡ƒ ‘ˆDz–‘†‡ˆ”ƒ—†dz–‘‹ Ž—†‡‹–ƒ‰‹„Ž‡”‹‰Š–•Ǥ †‡ˆ”ƒ—†dz  ͶͳǤ  ˆ”ƒ—†—Ž‡–’”‡–‡•‡•ǡ”‡’”‡•‡–ƒ–‹‘•ǡ‘”’”‘‹•‡•dz ‘—Ž†ƒ”‰—ƒ ‘•–”—‡†•‘–Šƒ––Š‡•‡ ‘†’Š”ƒ•‡†‹†‘–Ž‹‹–• Š‡‡•–‘†‡ –‘‘‡›‘”’”‘’‡”–›Ǥ ˆ‘”‡” ‡–— › •–ƒ–‡ ‘ˆˆ‹ ‹ƒŽ ™‹–Š‘–Š‡”’—„Ž‹ ‘ˆˆ‹ ‹ƒŽ•–‘†‹”‡ –‹•—”ƒ ‡ ‘‹••‹‘•–‘ ‹ ™Š‹ Š –Š‡› Šƒ† ƒ ‘™‡”•Š‹’ ‹–‡”‡•–Ǥ  ͵͸Ǥ   ͵͹Ǥ   ͵ͺǤ  33531-ckt_88-2 Sheet No. 164 Side B 05/13/2013 14:40:30 B 05/13/2013 164 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 165 Side A 05/13/2013 14:40:30   ‡Ǧ  ‡” •ǯ• † ˆ‘” ––‘ –ˆ‘” ƒ–‡† ͻǣ͵ͺ  –Šƒ–  Šƒ–‹ Šƒ”†Ž› ’–‡†–‘ •ƒ„‘—– ™‹–Š–Š‡ –—–‡ƒ† ‹–Š‹–Š‡ ‡”‡– Š‡ ˆ‡†‡”ƒŽ ˆŽ‡•Š–Š‡ ˆˆ‹ ‹ƒŽ•’‡”Ǧ  ‡ ‘†ǡ Š‡  Ͷͺ Ͷ͸  ͷͻͻ –ƒ–—–‡ ‹ ƒ ƒ‡” –Šƒ– FRAUD  Š‡ •–ƒ–—–‡ Šƒ† ƒŽ”‡ƒ†› „‡‡ ” SERVICES   ‹ƒŽŽ›ǡ–‡˜‡•ˆ‘—†–Šƒ–‹–™ƒ•  ͷͲ ‘‰”‡••Ž‡ƒ˜‡•‰ƒ’•‹•–ƒ–—–‡•ǡŠ‡ Ͷʹ Ͷͻ ƒ•–Š‡”‹‰Š––‘Šƒ˜‡’—„Ž‹ ‘ HONEST   ‡™ƒ•ˆ—”–Š‡” ‘ ‡”‡†–Šƒ–’”‘•‡ —Ǧ ͶͶ  Š—•ǡ –‡˜‡• ‘ Ž—†‡† –Šƒ– Dz–Š‡”‡ ‹• ‘ ͷͳ Ȍ ͷȀ͹ȀʹͲͳ͵ REDEFINING    ƒ–Š‡” –Šƒ ‘•–”—‡ –Š‡ •   Ͷͷ  ȋ  ‡ ˆ‘—† ‹– ’”‘„Ž‡ƒ–‹  –Šƒ– –Š‡ ‘—–‡” „‘—†ƒ”‹‡• ‘ˆ –Š‡ ƒ–͵ͷͺǦͷͻǤ ƒ–͵͹͸ȋ–‡˜‡•ǡ Ǥǡ†‹••‡–‹‰ȌǤ ƒ–͵͸ͺǦ͸ͻǤ ƒ–͵͹͵Ǥ ƒ–͵͹ͷǤ   ‹”•–ǡ–‡˜‡•ƒ”‰—‡†–Šƒ––Š‡‹–ƒ‰‹„Ž‡”‹‰Š–• ‘•–”— –‹‘ǡ Ǥ  ƒ–͵͸ͲǤ      ƒ–͵͹ͷǤ   Ͷ͵  Ͷ͹ Id. Id. Id. Id. Id. Id. Id. Id. Id. Id. Ǧ —•–‹ ‡–‡˜‡•™”‘–‡ƒ•–”‘‰†‹••‡––Šƒ– ”‹–‹ ‹œ‡†–Š‡‘—” ‹ƒŽŽ›ǡ —•–‹ ‡Š‹–‡ƒ’’Ž‹‡†–Š‡”—Ž‡‘ˆŽ‡‹–›ǡ ‘ Ž—†‹‰–  ƒ••‡”–‡†ǡ–‘‹’Ž‹ ‹–Ž›†‡Ž‡‰ƒ–‡–‘–Š‡ ‘—”–•–Š‡ƒ—–Š‘”‹–›–‘ ‘—––Š”‘—‰ŠŒ—†‹ ‹ƒŽ ‘•–”— –‹‘Ǥ ”‡ƒ•‘ǤǤǤ –‘ —’•‡– –Š‡ •‡––Ž‡†ǡ •‡•‹„Ž‡ ‘•–”— –‹‘ –Šƒ– – –‹‘—†‡”ƒ‹–ƒ‰‹„Ž‡”‹‰Š–•–Š‡‘”›‹˜‘Ž˜‡•–Š‡ˆ‡†‡”ƒŽ‰‘˜ •‡––‹‰ •–ƒ†ƒ”†• ‘ˆ †‹• Ž‘•—”‡ ƒ†•–ƒ–‡ ‰‘‘† ‘ˆˆ‹ ‹ƒŽ•Ǥ ‰‘˜‡”‡– ˆ‘” Ž‘ ƒŽ ƒ ‹†‹˜‹†—ƒŽ• †‡ƒŽ‹‰ ™‹–Š –Š‡ ‰‘˜‡”‡–ǡ ™‘—Ž† Žƒ –Š‡‹” ‘†— –™ƒ•—Žƒ™ˆ—ŽǢ‹†‡‡†ǡ ˆƒ‹” ‘–‹ ‡ ‘” Š‡•–”ƒ–‹‰ƒ ƒ””ƒ‰‡‡ •‡ ”‡–Ž›ƒ‡Š—†”‡†•‘ˆ–Š‘—•ƒ†•‘ˆ†‘ŽŽƒ”•‹‹ „ƒ •‹• “—‡•–‹‘ƒ„Ž› —Žƒ™ˆ—ŽǤ ™”‘‰ ˆ‘” –Š‡ ‘—”– –‘ ƒ••—‡ –Šƒ– –Š‡ †‡ˆ‡†ƒ–•ǡ ƒ• •‘’Š‹•–‹ ƒ‹–ƒ‹‡† –Šƒ– ƒ› ƒ„‹‰—‹–› ‹•‘Ž˜‡†„›Œ—†‹ ‹ƒŽ ‘•–”— –‹‘Ǥ –  ͶʹǤ   ʹͲͳ͵Ȑ ”ƒ–Š‡”•‹’Ž›–‘ Žƒ”‹ˆ›–Šƒ––Š‡•–ƒ–—–‡”‡ƒ Š‡†ˆƒŽ•‡’”‘‹•‡ –Š‡ˆ—–—”‡ƒ•™‡ŽŽƒ•‘–Š‡”ˆ”ƒ—†•Ǥ ͳͶǦ •›•–‡ƒ–‹ ƒŽŽ›ƒ†‘’–‡†„›–Š‡‘—”–•‘ˆ’’‡ƒŽ•ǡ‹• ‘•‹•–‡– ‘‘—†‡”•–ƒ†‹‰‘ˆ–Š‡–‡”Dz†‡ˆ”ƒ—†dzƒ†ˆ—”–Š‡”•‘‰”‡• ‰‘ƒŽ ‘ˆ ’”‡•‡”˜‹‰ –Š‡ ‹–‡‰”‹–› ‘ˆ –Š‡ ‘•–ƒŽ ‡”˜‹ ‡Ǥ ”ƒ‹•‡†–Š‡•‡ˆ‡†‡”ƒŽ‹•ƒ†ƒ„‹‰—‹–› ‘ ‡”•ǡ —•–‹ ‡Š‹–‡‘ Ž‹‹––Š‡• ‘’‡–‘–Š‡’”‘–‡ –‹‘‘ˆ’”‘’‡”–›”‹‰Š–•‘Ž›Ǥ ”‡Œ‡ –‹‰–Š‡DzŽ‘‰•–ƒ†‹‰dz ‘•–”— –‹‘‘ˆ–Š‡ƒ‹Žˆ”ƒ—†•–ƒ ‰‘‹‰ ƒ‰ƒ‹•– –Š‡ Dz–‹†‡ ‘—”–•Ǥ ‘ˆ ™‡ŽŽǦ ‘•‹†‡”‡† ‘’‹‹‘•dz ‘ˆ –Š‡ Ž‘™ ˆ‘”–Š‡‹”†—–‹‡•Š‘‡•–Ž›Ǥ •–ƒ–—–‡™‡”‡ƒ„‹‰—‘—•”‡‰ƒ”†‹‰™Š‡ƒ’‡”•‘ ‘—Ž†„‡ Šƒ”‰‡† ˜‹‘Žƒ–‹‰‹–ƒ‰‹„Ž‡”‹‰Š–•ǡ•— Š ‘”†‡”–‘Œ—•–‹ˆ› ”‹‹ƒŽ’—‹•Š‡–ǡƒ ƒ•‡—•–’Žƒ‹Ž›ˆ‹–™ •–ƒ–—–‡Ǥ  Ͷ͵Ǥ   ͶͶǤ   ͶͷǤ   Ͷ͸Ǥ   Ͷ͹Ǥ   ͶͺǤ   ͶͻǤ   ͷͲǤ   ͷͳǤ  33531-ckt_88-2 Sheet No. 165 Side A 05/13/2013 14:40:30 A 05/13/2013 165 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 165 Side B 05/13/2013 14:40:30   Ǧ v.    Š‡ ‰Š–• ͻǣ͵ͺ †‡ ‹Ǧ  ‰Š–‘ˆ ‘––Š‡ —†dz–‘ ‰ ‘Ž› Skilling  Ž‡ƒ”Ž› –Š‡ƒ‹Ž  „Ž‡”‹‰Š– •‘ˆ–Š”‡‡ ”–Š‡ƒ‹Ž

  Š—•ǡ ƒ› † ‹ ‘„–ƒ‹‹‰ ƒ ͷ͸ ͷ͹    ‘”†‹‰–‘ Weyhrauch   ͷͷ ǣ Ǥ ˜Ǥ‹–‡†–ƒ–‡•ǡͳ͵ͲǤ TATES ǡƒ† S  McNally States NITED  ȏ‘Žͺͺǣʹ  ͻ͹ͳȋʹͲͳͲȌȋ’‡” —”‹ƒȌǤ    U ˆ‹”•– ƒ† –Š‡ †‹•’‘•‡† ‘ˆ   .  ‘’‡”–›ǯ‹–Š‡‰‘˜‡”‡–”‡‰—Žƒ–‘”ǯ• V  REVIEW ǯ• ‹’‘•‹–‹‘ ‘ˆ ƒ ’”‘’‡”–› ”‡Ǧ   United  v. Skilling ǤǤǤ  LAW  KILLING S McNally KENT Ǧ Black ǡ  CHICAGO  ‹˜‘Ž˜‹‰ Š‘‡•– •‡”˜‹ ‡• •–‹ŽŽ —•– ‹˜‘Ž˜‡ States    Ȍ ͷȀ͹ȀʹͲͳ͵   ‘‰”‡••‡ƒ –‡†–Š‡•–ƒ–—–‡•’‡ ‹ˆ‹ ƒŽŽ›–‘ ‘˜‡” not ͷͺ ͷͶ   †‡ ‹•‹‘ǤŽ–Š‘—‰Š‹–†‹†”‡•–‘”‡ƒ„”‡ƒ Š‘ˆ‹–ƒ‰‹Ǧ    Ǥ͵͵ǡʹͻ͹ȋͳͻͺͺȌȋ•–ƒ–‡‡–‘ˆ‡’Ǥ ‘Š‘›‡”•ǡ ”ǤȌǤ United    Š‡ ‘—”– †‡ ‹†‡†  ͷʹ  ǡ–Š‡‘—”–•‡–ƒ‡š’Ž‹ ‹–‡••ƒ‰‡–‘‘‰”‡••–Šƒ–‹ˆ‹–  v.  ‘‰”‡••ƒ –‡†“—‹ Ž›ǡ‡ƒ –‹‰ƒ‡™•–ƒ–—–‡–Š‡ˆ‘ŽǦ     ͷͻ Ǥ ǡͷ͵ͳǤǤƒ–ʹ͸Ǥ  Ǥ  ͷ͵ ƒ– ʹͲ ȋŠ‘Ž†‹‰ –Šƒ– –Š‡ ƒ‹ŽǦˆ”ƒ—† •–ƒ–—–‡ Dz†‘‡• ‘– ”‡ƒ Š ˆ”ƒ— ȋ   Š‘Ž†‹‰Ǥ —•–‹ ‡ ‹•„—”‰ ƒ—–Š‘”‡† –Š‡ —ƒ‹‘—• id. Žƒ ˜Ǥ‹–‡†–ƒ–‡•ǡͳ͵ͲǤ–Ǥʹͻ͸͵ǡʹͻ͸ͺȋʹͲͳͲȌǢ‹ŽŽ‹‰   McNally ƒ–͵͸ͲǤ   Ǥ ƒ–͵͸ͺǤ  States McNally  See Cleveland See Id. Id. Ǧ  Skilling  

 ‡•’‹–‡ ‘‰”‡••ǯ• ƒ••‡”–‹‘•ǡ Ț ͳ͵Ͷ͸ ˆƒ‹Ž‡† –‘ ‘’Ž‡–‡Ž› ‘˜‡”  ʹͲͳͲǡ–Š‡—’”‡‡‘—”–ƒ‰ƒ‹ƒ††”‡••‡†–Š‡Ž‹‹–ƒ–‹‘•‘ˆ–  Ǥ •–ƒ–‡‘”—‹ ‹’ƒŽŽ‹ ‡•‡ǤǤǤȏ„‡ ƒ—•‡ȐƒŽ‹ ‡•‡‹•‘–Ǯ’” Šƒ†•dzȌǤ  ͷͻǤ  –Ǥʹͺͻ͸ȋʹͲͳͲȌǢ‡›Š”ƒ— Š˜Ǥ‹–‡†–ƒ–‡•ǡͳ͵ͲǤ–Ǥʹͻ͹ͳǡʹ “—‹”‡‡– ‘ ƒ› ‘–Š‡” Dz• Š‡‡ ‘” ƒ”–‹ˆ‹ ‡ –‘ †‡ˆ”ƒ—†Ǥdz „Ž‡”‹‰Š–• ƒ—•‡‘ˆƒ –‹‘ǡ–Š‡ƒ††‹–‹‘‘ˆȚͳ͵Ͷ͸†‹†‘–ƒŽ–‡ ˆ”ƒ—† •–ƒ–—–‡ ‹–•‡Žˆ –‘ ƒ††”‡•• Skilling’s –Š‡‘–Š‡”–™‘ ƒ•‡•„›”‡ƒ†‹‰–Š‡ˆ‘””‡ ‘•‹†‡”ƒ–‹‘‹Ž‹ ‡’”‡•‡–ƒ–‹˜‡‘›‡”•ǡ–Š‡•–ƒ–—–‡™ƒ•‹–‡†‡†–‘Dz”‡•–‘”‡ȏȐ ˆ”ƒ—†’”‘˜‹•‹‘–‘™Š‡”‡–Šƒ–’”‘˜‹•‹‘™ƒ•„‡ˆ‘”‡–Š‡ ƒŽŽ› •‹‘ǡdzƒ†Dz‹–‹•‘Ž‘‰‡”‡ ‡••ƒ”›–‘†‡–‡”‹‡™Š‡–Š‡”‘”• Š‡‡‘”ƒ”–‹ˆ‹ ‡–‘†‡ˆ”ƒ—†‹˜‘Ž˜‡†‘‡›‘”’”‘’‡”–›Ǥdz United ‹ Ž—†‡Dzƒ• Š‡‡‘”ƒ”–‹ˆ‹ ‡–‘†‡’”‹˜‡ƒ‘–Š‡”‘ˆ–Š‡‹–ƒ‰‹ ‘ˆŠ‘‡•–•‡”˜‹ ‡•Ǥdz –Š‡”‹‰Š–•–Šƒ––Š‡ ‘—”–•Šƒ†’”‘–‡ –‡†„‡ˆ‘”‡ Ž‘™‹‰›‡ƒ”ǡȚͳ͵Ͷ͸ǡ™Š‹ Š†‡ˆ‹‡†Dz• Š‡‡‘”ƒ”–‹ˆ‹ ‡–‘†‡ˆ”ƒ  ͷ͹Ǥ  –Šƒ‹–Šƒ•Ǥdz ‹–‡†•–‘‡†‘”•‡‹–ƒ‰‹„Ž‡”‹‰Š–•ˆ”ƒ—†ǡDz‹–—•–•’‡ƒ‘”‡  ͷͺǤ  Š‘‡•–•‡”˜‹ ‡•–Š‡‘”›‘ˆˆ”ƒ—†ǡ‰”ƒ–‹‰ ‡”–‹‘”ƒ”‹‹ƒ•‡”‹‡ ƒ•‡•ǡ • Š‡‡ –‘ †‡ˆ”ƒ—† ‘‡›‘”’”‘’‡”–›Ǥ  ͷʹǤ   ͸ͲͲ ‘—”–• Šƒ˜‡ ‘•‹•–‡–Ž› ‡†‘”•‡†dz ƒ†–Š‡‘”›‘ˆˆ”ƒ—†Ǥ ”‡Œ‡ – –Š‡ ‹–ƒ‰‹„Ž‡ ”‹ ͳͶǦ –—”–Š‡ †‡ ‹•‹‘ǡ Š‘Ž†‹‰ –Šƒ– • ‘’‡ ‘ˆ Ț ͳ͵Ͷ͸ ‹• Ž‹‹–‡† –‘ ’”‘Š‹„‹–‹  ͷ͵Ǥ   ͷͶǤ ͳͺǤǤǤȚͳ͵Ͷ͸ȋͳͻͺͺȌǤ  ͷͷǤ Ž‡˜‡Žƒ†˜Ǥ‹–‡†–ƒ–‡•ǡͷ͵ͳǤǤͳʹǡͳͻǦʹͲȋʹͲͲͲȌǤ ͷ͸Ǥ ͳ͵Ͷ 33531-ckt_88-2 Sheet No. 165 Side B 05/13/2013 14:40:30 B 05/13/2013 165 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 166 Side A 05/13/2013 14:40:30    ͸ʹ  — – ‘– ‹ Ǧ ’”‡Ǧ ͻǣ͵ͺ –Ǧ › –‘   ‡šǦ ‡•• ‹ ‡š‡ —Ǧ ’– ›Ǥ –‹‘Ǥ †‡”•‘ˆ ‹‰–Š‡ ‡’‘”–‡† ƒ†‹Ǧ •‡Ž˜‡• ˜ƒ–‡ ‡Ǧ ™Š‹Ž‡‹–• ͸ͻ ͻǡ ͳͲ͹͹ ȋͳ•– ‹”Ǥ  ͸͸  ͸ͳ  Š‡ ‰‘˜‡”‡–ǯ•  ͸Ͳͳ ͸Ͷ FRAUD  SERVICES  ‘”†‹‰–‘ ‹•„—”‰ǡ–Š‡‹–ƒǦ  ͸͹  ˆ –Š‡ •–ƒ–—–‡ ’”‘• ”‹„‡† ƒ ™‹†‡”  ‘œ‡• ‘ˆ ”‘ ‡’Ž‘›‡‡• ™‡”‡ ‡–• ‘” ‡‰ƒ‰‡† ‹ „”‹„‡”› ‹ ͸Ͳ ͸͵  • ƒ ”‡•—Ž–ǡ –Š‡ ‹†‹ –‡– ‘–‹—‡†ǡ HONEST  ͸ͷ Š‡Dz˜ƒ•–ƒŒ‘”‹–›dz‘ˆ–Š‡•‡’”‡ ‡†‡–• ‘•‹•–Ǧ Ȍ ͷȀ͹ȀʹͲͳ͵ REDEFINING ͸ͺ     Š—•ǡ–Š‡‘—”–•ƒŽ˜ƒ‰‡†–Š‡•–ƒ–—–‡ˆ”‘„‡‹‰•–”—   ‘ ‡”‡† ‡ˆˆ”‡› ‹ŽŽ‹‰ǯ• ƒ’’‡ƒŽ ‘ˆ Š‹• ‘˜‹ –‹‘ ˆ‘” ͹Ͳ  ȋ ƒ– ʹͻʹͻǡ ʹͻ͵ͳ ȋ“—‘–‹‰ ‹–‡† –ƒ–‡• ˜Ǥ œ—„‹•‹ǡ ͳͲ͸ Ǥ͵† ͳͲ͸ ƒ–ʹͻͲ͹Ǥ ƒ–ʹͻͲͺǤ ƒ–ʹͻ͵ͶǤ ƒ–ʹͻ͵ͲǤ ƒ–ʹͻʹͻǤ  Ǥ            Id. Id. Id. Id. Id. Id. Id. Id. Id. Id. Ǧ Š‡‘—”– Š‡Ž†–Šƒ–‘‰”‡••†‹†‘–‹–‡†–Š‡ Š‘‡•–•‡”˜‹ ‡• Skilling Ž‹‹–‹‰–Š‡”ƒ‰‡‘ˆŠ‘‡•–•‡”˜‹ ‡•ˆ”ƒ—†–‘„”‹„‡”›ƒ†  –Š‡ ‹–ƒ‰‹„Ž‡ ”‹‰Š– ‘ˆ ȏ–Š‡‹”Ȑ Š‘‡•– •‡”˜‹ ‡•ǡdz–Š”‘—‰Š•ƒŽƒ”›ǡ„‘—•‡•ǡ•–‘ ‘’–‹‘•ǡƒ†‘–Š‡”’”‘ˆ‹–•Ǥ ‡”‹ Š‹‰ –Š‡ ‹ŽŽ‹‰ƒ† ‘Ǧ ‘•’‹”ƒ–‘”•Dz†‡’”‹˜‡ȏ†Ȑ”‘ƒ†‹–••Šƒ”‡Š‘Ž ‡–Ž›ƒ’’Ž‹‡†–Š‡•–ƒ–—–‡–‘„”‹„‡”›ƒ†‹ „ƒ • Š‡‡•ǡ ‡ƒ –‹‰Țͳ͵Ͷ͸ǡƒ†–Šƒ–‡ƒ‹‰‡ ‘’ƒ••‡†–Š‡Dz ‘”‡dz‘ˆ–Š‡  ƒŽŽ›’”‡ ‡†‡–•Ǥ ‰‹„Ž‡ ”‹‰Š– ‘ˆ Š‘‡•– •‡”˜‹ ‡• Š‡Ž† ƒ •’‡ ‹ˆ‹  ‡ƒ‹‰ –‘ ‘‰”   ͸ͲǤ ͳ͵ͲǤ–ƒ–ʹͻ͵ͳǤ ͸ͳǤ  ʹͲͳ͵Ȑ „”‹„‡”› ƒ† ‹ „ƒ  • Š‡‡•Ǥ ‹–‡”ƒŽ ‘•’‹”ƒ ›–‘’”‘’—’”‘ǯ••–‘ ’”‹ ‡•„›‘˜‡”•–ƒ– ˆ–‡””‘ǯ• ‘ŽŽƒ’•‡ǡƒ‰‘˜‡”‡–‹˜‡•–‹‰ƒ–‹‘— ‘˜‡”‡†ƒ ‘’ƒ›ǯ• ˆ‹ƒ ‹ƒŽ ™‡ŽŽǦ„‡‹‰Ǥ ͳͶǦ ’”‘•‡ —–‡†ǡ ƒ† ‹ŽŽ‹‰ ™ƒ• ‹†‹ –‡† ‹ ʹͲͲͶǤ Šƒ‰‡ˆ‘”Š‹•‹•”‡’”‡•‡–ƒ–‹‘•Ǥ ƒŽŽ‡‰‡ –Šƒ– ‹ŽŽ‹‰ •‘Ž‹ ‹–‡† ’ƒ› †‘™ƒ•— ‘•–‹–—–‹‘ƒŽŽ›˜ƒ‰—‡„›ƒ†‘’–‹‰ƒŽ‹‹–‹‰ ‘•–”— „ƒ  • Š‡‡•ǡ –Š‡ ‘—”– ‡š’”‡••Ž› ‡š Ž—†‡† –Š‡‹˜‘Ž˜‹‰ ƒ–‡‰‘”› Dz—†‹• Ž‘•‡† ‘ˆ •‡ŽˆǦ†‡ƒŽ‹‰ ‘† „› ƒ ’—„Ž‹  ‘ˆˆ‹ ‹ƒŽ ‘” ’”‹ ˆ‹ƒ ‹ƒŽ”‡•—Ž–•ƒ†ƒ†‡ˆƒŽ•‡ƒ†‹•Ž‡ƒ†‹‰•–ƒ–‡‡–•ƒ„‘— ”‘ǯ• ˆ‹ƒ ‹ƒŽ ’‡”ˆ‘”ƒ ‡Ǥ ‹†‹ –‡–ƒŽŽ‡‰‡†–Šƒ–‹ŽŽ‹‰ƒ‹’—Žƒ–‡†”‘ǯ•’—„Ž‹ Ž›” •–ƒ–—–‡ –‘ ”‡ƒ Š ‹ŽŽ‹‰ǯ• ‘†— – „‡ ƒ—•‡ –Š‡ ‰‘˜‡”‡– †‹† ƒ’’Ž‹ ƒ–‹‘–‘‘–Š‡” ƒ–‡‰‘”‹‡•‘ˆ ‘†— –”‡•—Ž–‡†‹†‹•ƒ””ƒ› ‘•‹•–‡ ›Ǥ ”ƒ‰‡‘ˆ ‘†— –ǡ‹–™‘—Ž†„‡— ‘•–‹–—–‹‘ƒŽŽ›˜ƒ‰—‡Ǥ †‡ˆ”ƒ—†”‘‘”’‘”ƒ–‹‘•Šƒ”‡Š‘Ž†‡”•Ǥ‹ŽŽ‹‰™ƒ•–Š‡ Š‹‡ˆ –‹˜‡‘ˆˆ‹ ‡”‘ˆ”‘‹ʹͲͲͳǡŒ—•–„‡ˆ‘”‡”‘‡–‡”‡†„ƒ”— Š‘‡•– •‡”˜‹ ‡• ˆ”ƒ—† ”‡‰ƒ”†‹‰ Š‹• ’ƒ”–‹ ‹’ƒ–‹‘ ‹ ƒ ‘•’‹”ƒ  ͸ʹǤ   ͸͵Ǥ   ͸ͶǤ   ͸ͷǤ   ͸͸Ǥ   ͸͹Ǥ   ͸ͺǤ  ͳͻͻ͹ȌȌǤ  ͸ͻǤ   ͹ͲǤ  33531-ckt_88-2 Sheet No. 166 Side A 05/13/2013 14:40:30 A 05/13/2013 166 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 166 Side B 05/13/2013 14:40:30  Ǧ Ǧ ͸  ͹ͷ  Ž‹Ǧ ‡•ǡ   ƒ†Ǧ ƒ”Ž› ͹ͻ ͻǣ͵ͺ ‘Ǧ –‹‘  Ž•ǡ ‘”  ‘Ǧ ”˜‹ ‡• ™‹–Šƒ –‹‘Ǥ ‘ˆ–Š‡ McNal –†ƒǦ ‰ˆ‹ƒǦ ‡•ǡ–Š‡ ƒ•‡Žƒ™ǡ  •‡”˜‹ ‡•Ǣ‹– ‘Žƒ–‹‘Ǥ  ‘ˆŽ‹ –Ǧ‘ˆǦ  Š‘—‰Š –Š‡ ͹ʹ ͹͹ McNally  ͹Ͷ   ƒŽ‹ƒ ƒ”‰—‡† –Šƒ– ‹ Ǥdz ͹͸  ȏ‘Žͺͺǣʹ  ƒ•‡ Žƒ™Ǥ  ƒ• ƒ ƒ•‡ ‘ ‡”‹‰ ƒ REVIEW McNally  McNally McNally Š‡”‡‹•‘ƒ‰”‡‡‡–”‡‰ƒ”†‹‰ LAW  ͺͲ KENT Ǧ   ‘–”ƒ•–ǡƒŽ‹‹–‹‰ ‘•–”— –‹‘‘ˆȚͳ͵Ͷ͸ CHICAGO ͹͵ Ȍ ͷȀ͹ȀʹͲͳ͵   ͹ͺ     ƒ•‡ Žƒ™ǡ –Š‡ †‘ –”‹‡ ƒ –—ƒŽŽ› ”‡ƒ Š‡† ƒ ™‹†‡” ”ƒ‰‡ ‘ˆ  ȋ Š‡‘—”–”‡Œ‡ –‡†–Š‡‰‘˜‡”‡–ǯ• ‘–‡–‹‘–Šƒ– ƒ–ʹͻ͵ʹǤ ƒ–ʹͻ͵͵Ǥ ƒ–ʹͻ͵ͷȋ ƒŽ‹ƒǡ Ǥǡ ‘ —””‹‰ȌǤ  ƒ–ʹͻ͵ͻǤ ƒ–ʹͻ͵͸Ǥ ƒ–ʹͻ͵͹Ǥ  Ǥ            ͹ͳ  ‘”™Š‡–Š‡”–Š‡†—–›Šƒ•‹–••‘—” ‡‹‰‡‡”ƒŽ’”‹ ‹’Ž‡•‘ˆ‘„ Id. Id. Id. Id. Id. Id. Id. Id. Id. Id. Id. Ǧ ͺͳ —•–‹ ‡ ƒŽ‹ƒˆ—”–Š‡”ƒ”‰—‡†–Šƒ––Š‡‘—”–ǯ•Š‘Ž†‹‰†‹†‘– —•–‹ ‡  ƒŽ‹ƒ ™”‘–‡ ƒ •‡’ƒ”ƒ–‡ ‘’‹‹‘ǡ ‘ —””‹‰ ‹ –Š‡ Œ—†‰ McNally  ‹–•‡Žˆ™ƒ•„ƒ•‡†‘–Š‡–Š‡‘”›‘ˆ‘†‹• Ž‘•—”‡‘ˆƒ ‘ˆŽ‹ –‹  Ž‹‹–‹‰–Š‡ƒ’’Ž‹ ƒ„‹Ž‹–›‘ˆȚͳ͵Ͷ͸–‘„”‹„‡Ǧƒ†Ǧ‹ „ƒ • Š‡ ‘—”–Šƒ† ”‡ƒ–‡†ƒ‡™ˆ‡†‡”ƒŽ ”‹‡ƒ†ƒ—ˆƒ –—”‡†ƒ†‹•–‹ –Šƒ– ™ƒ• ‘– •—’’‘”–‡† „› –Š‡ ’”‡Ǧ ‹–‡”‡•– ’”‘•‡ —–‹‘• ™‡”‡ –‘‘ Dzƒ‘”’Š‘—•dz ƒ•Šƒ†Ž‡† ƒ ™‹–Š ƒ–‡‰‘”› ‹ ‘•‹•–‡ › ƒ‘‰ ‘ˆ –Š‡ ƒ• ‹” —‹–•ǡ ƒ† ™‡”‡ ‘˜‡”‡†„›–Š‡•–ƒ–—–‡Ǥ ‘– Ž‡ ‹ƒŽ ‹–‡”‡•–ǡ ‹•–‡ƒ† Šƒ”ƒ –‡”‹œ‹‰  ͹ͳǤ   ͸Ͳʹ ’Ž‘›‡‡Ǥdz ͳͶǦ ly Dz‡•–ƒ„Ž‹•Šȏ‡•Ȑ ƒ —‹ˆ‘” ƒ–‹‘ƒŽ •–ƒ†ƒ”†ǡ †‡ˆ‹‡ȏ•Ȑ Š‘‡•–™‹–Š •‡ Žƒ”‹–›ǡ ”‡ƒ Šȏ‡•Ȑ ‘Ž› •‡”‹‘—•Ž›’Ž‹•Šȏ‡•Ȑ‘‰”‡••ǯ•‰‘ƒŽ‘ˆǮ‘˜‡””—Ž‹‰ǯ —Ž’ƒ„Ž‡ ‘†— –ǡ ƒ† ƒ ‘—”–ǯ•’”‘Š‹„‹–‹‘‘ˆ„”‹„‡”›ƒ†‹ „ƒ • ‘’”‹•‡†–Š‡ ‘”‡ ’”‡Ǧ —Ž’ƒ„Ž‡ ‘†— –Ǥ –Š‡†—–›‹•DzŠ‘’‡Ž‡••Ž›—†‡ˆ‹‡†Ǥdz  ƒŽ‹ƒǯ•™‘”†•ǡ‡˜‡‹Ž‹‰Š–‘ˆ–Š‡‡–‹”‡„‘†›‘ˆ’”‡Ǧ †”‡•• ƒ ˆ—†ƒ‡–ƒŽ ’”‘„Ž‡ –Šƒ– ƒ‡• –Š‡ˆƒ‹Ž•–‘†‡ˆ‹‡–Š‡ˆ‹†— ‹ƒ”›†—–›–Šƒ–‹•–Š‡„ƒ•‹•ˆ‘”–Š‡˜‹ •–ƒ–—–‡ ˜ƒ‰—‡ǣ Ț ͳ͵Ͷ ‹’Ž›•–ƒ–‡†ǡ–Š‡•–ƒ–—–‡ˆƒ‹Ž•–‘†‡ˆ‹‡–Š‡”‹‰Š–‘ˆŠ‘‡•– –Š‡”‡ˆ‘”‡ˆƒŽŽ•’”‡›–‘–Š‡ˆƒ‹”‘–‹ ‡ƒ†ƒ”„‹–”ƒ”›‡ˆ‘” ‡‡ ‰‡”• –Šƒ– ‘•–‹–—–‡ ƒ †—‡ ’”‘ ‡•• ˜‹‘Žƒ–‹‘Ǥ ™Š‡–Š‡” –Š‡ †—–› ƒ’’Ž‹‡• –‘ ’—„Ž‹  ‘ˆˆ‹ ‹ƒŽ•ǡ ’”‹˜ƒ–‡ ‹†‹˜‹†—ƒ „‘–Šǡ ‡–ǡ„—–ƒ”‰—‹‰–Šƒ––Š‡Š‘‡•–•‡”˜‹ ‡••–ƒ–—–‡™ƒ•‹†‡‡†— •–‹–—–‹‘ƒŽŽ›˜ƒ‰—‡ƒ† ‘—Ž†‘–„‡•ƒ˜‡†„›ƒƒ””‘™ ‘•–”—  ͹ʹǤ  ’ƒ”ƒ†‹‰ƒ–‹ ‹ „ƒ • Š‡‡™Š‡”‡ƒ’—„Ž‹ ‘ˆˆ‹ ‹ƒŽ ‘•’‹”‡† –Š‹”† ’ƒ”–› ‹ ‘”†‡” –‘ ’”‘ˆ‹– ˆ”‘ ƒ ’—„Ž‹  ‘–”ƒ –Ǥ  ͹͵Ǥ   ͹ͶǤ   ͹ͷǤ   ͹͸Ǥ   ͹͹Ǥ   ͹ͺǤ   ͹ͻǤ   ͺͲǤ   ͺͳǤ  33531-ckt_88-2 Sheet No. 166 Side B 05/13/2013 14:40:30 B 05/13/2013 166 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 167 Side A 05/13/2013 14:40:30   ͺͺ   ‡• ͺͶ  ͻǣ͵ͺ  ȋDzȏ Ȑ‡™ ”› ‹Ǧ  ‡‹˜‹‰ ‰‡‘ˆ ‰”‡••ǯ• –‘–Š‡ ‡” ‘ˆ Š‹ ƒŽǤ –Š‡ˆ‡†Ǧ ‹• ‡”ƒ ‡• ‘—Ž† ƒ‹’—Ǧ –‘™Šƒ– Š‹••‡ Ǧ ‡••–ƒ–—–‡  ‘†— –—Ǧ ‰—‹Ž–ǫdz ͺͷ Services   Ǥǡ†‹••‡–‹‰ˆ”‘ ǡ†‹••‡–‹‰ȌȋDzȏȐŠ‡ KILLING Ǥ Ǥ͸Ͷͷǡ͸͸ͺȋʹͲͳͳȌǤ S  ǯ Honest    ͸Ͳ͵ ‹ Š‹• Ž‡ƒ”Ž›—‡–Š‹ ƒŽ‹•ƒŽ•‘ of  ͲͲ͵Ȍȋ‘–‹‰–Šƒ––Š‡•–ƒ–—–‡‹•   Ǥ Ž‹ – ‘ˆ ‹–‡”‡•–ǡ ‘” ‹••–ƒ–‡‡–     ͵†͸Ͷͻǡ͸ͷͳȋ͹–Š‹”ǤͳͻͻͺȌ ’Ž‘›‡‡ǯ•’Š‘‹‰‹•‹ –‘‰‘–‘ƒ FRAUD  ––Š‡•ƒ‡–‹‡ǡŠ‘™‡˜‡”ǡ ‡•˜Ǥƒ™›‡”ǡͺͷ Ǥ͵†͹ͳ͵ǡ͹ʹͷȋͳ•–‹”Ǥ Denial ͺͻ    ƒ††‹–‹‘ǡ ‘—”–•†‹•ƒ‰”‡‡†ƒ•

the  ‹ŽŽ‹‰ǡͶʹ  ͺʹ SERVICES  – ‹– Dzȏ†‹†Ȑ ‘– ‡ ‘’ƒ•• ‡˜‡ After  „‡–”ƒ›‡†’ƒ”–›‘”ˆ‹ƒ ‹ƒŽ‰ƒ‹ ‡ ƒ—•‡Š‘‡•–•‡”˜‹ ‡•ˆ”ƒ—†‹•„ƒ•‡†   HONEST   ͺ͹ ‘—”–†‡ Ž‹‡†–‘•–”‹‡†‘™Țͳ͵Ͷ͸ƒ• Fraud    •Š‘”–ǡ  ƒŽ‹ƒ ƒ••‡”–‡† –Šƒ– –Š‡ ƒŒ‘”‹–› Criminalizing ͺ͵   Services 

in Skilling Ȍ ͷȀ͹ȀʹͲͳ͵  REDEFINING  Honest            ȋ ‘”‹ Š˜Ǥ‹–‡†–ƒ–‡•ǡͳʹͻǤ–Ǥͳ͵Ͳͺǡͳ͵ͲͻȋʹͲͲͻȌȋ ƒŽ‹ƒǡ ͺ͸ Ǥ  ƒŽŽ›˜Ǥ‹–‡†–ƒ–‡•ǡͶͺ͵ǤǤ͵ͷͲǡ͵͹͸ȋͳͻͺ͹Ȍȋ–‡˜‡•ǡ Ǥ   ƒ–ʹͻ͵͸Ǥ ƒ–ʹͻ͵͹Ǥ ƒ–ʹͻ͵ͻǤ  A. Problems Ǥ     also   See Id. Id. Id. Id. Ǧ see ––Š‡˜‡”›Ž‡ƒ•–ǡ–Š‡ ‘—”–•–Šƒ–‹–‡”’”‡–‡†–Š‡Š‘‡•–•‡”˜‹ ˜‡–Š‘—‰Š–Š‡  •–ƒ–—–‡ „‡ˆ‘”‡ ‹ŽŽ‹‰ ƒ‰”‡‡† –Šƒ •–ƒ ‡‘ˆ‘ˆˆ‹ ‹ƒŽ‹• ‘†— –Ǥdz Œ‘„ǡ‘––Šƒ–‘ˆ–Š‡ ‘—”–•ǡ–‘ Ž‡ƒ”Ž›†‡ˆ‹‡–Š‡’”‘Š‹„‹–‡† †‡” –Š‡ •–ƒ–—–‡Ǥ Dz ‘‡•– •‡”˜‹ ‡•dz ‹• ‘– ƒ ™‡ŽŽǦ—†‡”•–‘‘†ƒ”–ǡ„—–ƒ’Š”ƒ•‡—•‡†–‘†‡• ”‹„‡ƒ‰‡‡”ƒŽˆ‹†— ‹ƒ”›†—–›Ǥ ƒ – — ‘•–‹–—–‹‘ƒŽǡ ‹– •‡– ƒ —‡“—‹˜‘ ƒŽ ‡••ƒ‰‡ –Šƒ– ‹– ‹• ‘ ‘–Š‡ˆ‹†— ‹ƒ”›†—–‹‡•‘ˆŽ‘›ƒŽ–›ƒ†Š‘‡•–›ǡ ‘—”–•ƒ†Œ—”‹ ‡ƒ•‹Ž› ‘ˆ—•‡ ”‹‹ƒŽ ‘†— –ƒ† ‘†— ––Šƒ–‹•‡”‡Ž›—‡– ˆƒ‹Ž‡†–‘ƒ•™‡”–Š‡„ƒ•‹ “—‡•–‹‘ǡDzŠƒ–‹•–Š‡ ”‹–‡”‹‘‘ˆ –‹‘ˆ‹”•–†‹• —••‡•–Š‡’”‘„Ž‡•–Šƒ–ƒ”‹•‡™Š‡‹–‹•— Ž‡ƒ” ‡š–‡–—‡–Š‹ ƒŽ ‘†— –‹• ”‹‹ƒŽ‹œ‡†ǤŠ‡‹–‡š’Ž‘”‡•Š‘™ ‡”ƒŽ ‹” —‹–•Šƒ˜‡•–”—‰‰Ž‡†–‘†‡ˆ‹‡–Š‡ˆ‹†— ‹ƒ”›†—–›ƒ†† •‡–‘ˆŽ‹‹–‹‰’”‹ ‹’Ž‡•‡ ‡••ƒ”›–‘ƒ’’Ž›–Š‡Š‘‡•–•‡”˜‹ —‹ˆ‘”Ž›Ǥ —†‡•‹”ƒ„Ž‡ ‘†— –ƒ†–‘ˆ”—•–”ƒ–‡ƒ‘ˆˆ‡†‡”ǯ•ƒ––‡’–•–‘ ˆ”ƒ—†‰‡‡”ƒŽŽ›‹•ƒ‘’‡Ǧ‡†‡† ”‹‡ǡ„‘–Š–‘†‡–‡”ƒ™‹†‡”ƒ ‘—”–•‘ˆ’’‡ƒŽ•Šƒ˜‡•–”—‰‰Ž‡† ͺ͸Ǥ –‘†‡ˆ‹‡Œ—•–™Š‡ ‘†— –™Š  ”‹‹ƒŽǤdzȌǤ  ͺ͹Ǥ ‹–‡†–ƒ–‡•˜Ǥ‡Ž Šǡ͵ʹ͹ Ǥ͵†ͳͲͺͳǡͳͳͲ͹ȋͳͲ–Š‹”Ǥʹ Dz‘– ˜‹‘Žƒ–‡† „› ‡˜‡”› „”‡ƒ Š ‘ˆ ‘–”ƒ –ǡ „”‡ƒ Šƒ†‡‹–Š‡ ‘—”•‡‘ˆ†‡ƒŽ‹‰dzȌǢ‹–‡†–ƒ–‡•˜ǤŽ‘‘ǡͳͶͻ Ǥ ‘ˆ †—–›ǡ ‘ˆ „ƒŽŽ‰ƒ‡ǤdzȌǤ  ͺͺǤ ‘‘Š”ǡ•—’”ƒ‘–‡͵ǡƒ–ͶͶǤ ͺͻǤ  †‡‹ƒŽ‘ˆ ‡”–‹‘”ƒ”‹ȌȋDzȏ Ȑ–™‘—Ž†•‡‡‹‰Ž› ‘˜‡”ƒ•ƒŽƒ”‹‡†‡   ͺʹǤ  ʹͲͳ͵Ȑ ‰ƒ–‹‘‘”•’‡ ‹ˆ‹ •–ƒ–‡‘”ˆ‡†‡”ƒŽŽƒ™Ǥ ͳͶǦ –‘–Š‡‡š–‡––Šƒ–Šƒ”–‘–Š‡ †‡ˆ”ƒ—†‡” ‹• ‡ ‡••ƒ”›Ǥ — Šƒ„Ž—””›Ž‹‡Ž‡ƒ†•–‘ˆ—”–Š‡”’”‘„Ž‡•™‹–Š‘ˆˆ‡†‡”•”‡ Ž‡ƒ”‘–‹ ‡–Šƒ––Š‡‹” ‘†— –‹• ”‹‹ƒŽǤ ˜‹‘Žƒ–‹‘•‘ˆ‡–Š‹ ƒŽ†—–‹‡•ƒ”‡ˆ‡†‡”ƒŽ ”‹‡•ǤdzȌǢ‹–‡†–ƒ– ͳͻͻ͸ȌǢ  ͺ͵Ǥ   ͺͶǤ   ͺͷǤ ƒ‡Žƒƒ–Š›ǡ 33531-ckt_88-2 Sheet No. 167 Side A 05/13/2013 14:40:30 A 05/13/2013 167 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 167 Side B 05/13/2013 14:40:30   ǡ Ǧ Ǧ Ǧ ‹Ǧ  – – ͻͳ  †Ǥ ‡‡ Skil ˜‘‹† Crimi ͻǣ͵ͺ  Š–Š‡  •‡‡   •–ƒ–Ǧ ƒœ›‘”  –‘ ƒ •‡‘ˆȚ ‡”–ƒ‹ Ž‹–›Ǥ –Š‡ ƒ†—–›‘ˆ ”‹‹ƒŽǦ ͻ͵ Ǥ Through  Duties   ”‘•‡ —–‘”• ‰ƒ‹ ͻ͹  Š‡ †‡• ”‹„‡• –Š”‡‡ Fiduciary ͻʹ    ȏ‘Žͺͺǣʹ ͻ͸  ǤͳǡͻͲǦͻͳȋʹͲͳͲȌǤ  Corporate ͻͶ REVIEW Ǥ   ƒ•‡›ƒ”‰—‡•–Šƒ–ǡ†‡’‡†‹‰‘  • •— Šǡ –Š‡ •–ƒ–—–‡ „‡‡ˆ‹––‡†   LAW  ͻͺ ͻͲ  Ǥ Š‹•–›’‡‘ˆ‘˜‡” ”‹‹ƒŽ‹œƒ–‹‘ǡ‹  Ǥ ͻͷ  Enforcing  KENT Ǧ ǡ͵ͷ Words:  Fraud CHICAGO  Eight Ǧ Ȍ ͷȀ͹ȀʹͲͳ͵ Services    Twenty    Honest  ȋ of  ƒ–ͻͶǤ ƒ–ͻͳǤ ƒ–ͻʹǤ  Ǥ  ƒ–ͺ͹ȋ‹–‡”ƒŽ“—‘–ƒ–‹‘‘‹––‡†ȌǤ        Id. Id. Id. Id. Id. Id. Id. Id. Ǧ †‡‡†ǡ –Š‡ Š‘‡•– •‡”˜‹ ‡• •–ƒ–—–‡ ™ƒ• ”‹–‹ ‹œ‡† ƒ• „‡‹‰ ‹• ƒ•‡›ǯ• ˆ‹ƒŽ ˆ‘” ‘ˆ ‘˜‡” ”‹‹ƒŽ‹œƒ–‹‘ ‹˜‘Ž˜‡• ”‡†—†ƒ ›ǡ Š‡ •‡ ‘† ˆ‘” ‘ˆ ‘˜‡” ”‹‹ƒŽ‹œƒ–‹‘ •–‡• ˆ”‘ ˜ƒ‰—‡ Žƒ™• ‘‡–ƒ–‘”• Šƒ˜‡ ‡š’”‡••‡† ƒ††‹–‹‘ƒŽ ‘ ‡”• –Šƒ– Ț ͳ͵Ͷ͸ †‡ ‹•‹‘ ‘—Ž† ‘ ‡‹˜ƒ„Ž›Šƒ˜‡”—‹–‘‡ƒ Š‘ˆ–Š‡•‡‘˜‡” ”‹   Prosecution  Ž‘›ƒŽ–›Ȅƒ”‰—ƒ„Ž›ˆƒŽŽ‹–‘–Š‹• ƒ–‡‰‘”›Ǥ –Š‡•’‡ ‹ˆ‹ ˆƒ –•‘ˆƒ ƒ•‡ǡ’”‘•‡ —–‹‘•—†‡”Țͳ͵Ͷ͸„‡ˆ‘”‡ ling ƒŽ‹œƒ–‹‘‹••—‡•Ǥ —•‡†–‘Dzˆ‘”„‹†ȏȐ™Šƒ–‡˜‡””‡ ‡–Š‡ƒ†Ž‹‡•Šƒ˜‡Žƒ„‡Ž‡†ƒ••Ž‡ —‡–Š‹ ƒŽȏ ‘†— –Ȑǡ—†‡”‘–Š‹‰‘”‡–ŠƒƒǮ ‘™‹–™Š‡ ’”‘•‡ —–‘”• „‡ ƒ—•‡ ‹– ™ƒ• ƒ†ƒ’–ƒ„Ž‡ ƒ† ‘—Ž† „‡ ™‹†‡Ž› ƒ’’Ž‹‡ ˆ‘”•‘ˆ‘˜‡” ”‹‹ƒŽ‹œƒ–‹‘–Šƒ–Țͳ͵Ͷ͸ ƒ”‡ƒ ŠǤ ‹”•–ǡ‘˜‡” ‹œƒ–‹‘ ƒ ‡ƒ ”‹‹ƒŽ‹œ‹‰ „‡Šƒ˜‹‘” –Šƒ– •‘ ‹‡–›•ƒ –‹‘Ǧ™‘”–Š›‘”‹•„‡•–’‘Ž‹ ‡†–Š”‘—‰Š ‹˜‹Ž–‘”–Ž‹ƒ„‹Ž‹–› †‘‡• ‘– †  ͻͲǤ ‹•ƒǤƒ•‡›ǡ  ͸ͲͶ Žƒ–‡ ‘†— – –‘ ƒ˜‘‹† ’”‘•‡ —–‹‘Ǥ ͳͶǦ Ž‡˜‡”ƒ‰‡ ‘˜‡” ”‹‹ƒŽ †‡ˆ‡†ƒ–•ƒ‘‰˜ƒ”‹‘—• ”‹‡•–‘’”‘•‡ —–‡Ǥ –Š”‘—‰Š –Š‡‹” ’‘™‡” –‘ Š‘‘•‡ —‡˜‡ƒ†•‡Ž‡ –‹˜‡’”‘•‡ —–‹‘‘ˆ–Š‡Žƒ™•Ǥ ‘Œ— –‹‘ ™‹–Š •—„•–ƒ–‹ƒŽ ’”‘•‡ —–‘”‹ƒŽ †‹• ”‡–‹‘ǡ ƒ Ž‡ƒ† ‘—”–• ˆƒ ‡† ƒ ŠƒŽŽ‡‰‡ ‹ ƒ””‘™Ž› ‹” —• ”‹„‹‰ Ț ͳ͵Ͷ͸‘–‹ ‡’”‘„Ž‡•ƒ†Œ—”› ‘ˆ—•‹‘™Š‹Ž‡’”‡•‡”˜‹‰‹–•˜‡”•ƒ–‹ –‘ ƒ ”‹‹ƒŽ‹œ‡† ‘†— ––Šƒ–™ƒ•‘– —Ž’ƒ„Ž‡Ǥ  ”‹–‹“—‹‰–Š‡— ͳ͵Ͷ͸ –‘ ’”‘•‡ —–‡ ‘”’‘”ƒ–‡ ‡š‡ —–‹˜‡• ˆ‘”‹•ƒƒ•‡›ƒ”‰—‡•–Šƒ–Dz™‡•Š‘—Ž†”‡•‡”˜‡ ”‹‹ƒŽŽƒ™–‘’—‹• ƒ‹‰ „ƒ† Œ—†‰‡–• ‘•–†ƒƒ‰‹‰™”‘‰•ƒ†–Š‡‘•– —Ž’ƒ„Ž‡†‡ˆ‡†ƒ–•ˆ‘” ‘†— –Šƒ– •‘ ‹‡–› „‡Ž‹‡˜‡• Žƒ • ƒ› •‘ ‹ƒŽ —–‹Ž‹–›Ǥdz  ͻͳǤ  „”‡ƒ Š‡•„›ƒ ‘”’‘”ƒ–‡ˆ‹†— ‹ƒ”›ȄŽ‹‡ƒ†—–›‘ˆ ƒ”‡ǡ„—–‘– nal ™Š‡”‡ –Š‡ †‡ˆ‡†ƒ–ǯ• ƒŽŽ‡‰‡† ‘†— – ˜‹‘Žƒ–‡• •‡˜‡”ƒŽ ”‹‹ƒŽ —–‡• ”‡“—‹”‹‰ †‹•–‹ – ’”‘‘ˆ• ƒ† ’—‹•Š‡–•Ǥ –Šƒ–‡ ‘’ƒ••„‘–Š —Ž’ƒ„Ž‡™”‘‰†‘‹‰ƒ†‘–Š‡”•‹‹Žƒ” ‘†— –Šƒ–‹•‘–‘”ƒŽŽ›„Žƒ‡™‘”–Š›Ǥ  ͻʹǤ   ͻ͵Ǥ   ͻͶǤ   ͻͷǤ   ͻ͸Ǥ   ͻ͹Ǥ   ͻͺǤ  33531-ckt_88-2 Sheet No. 167 Side B 05/13/2013 14:40:30 B 05/13/2013 167 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 168 Side A 05/13/2013 14:40:30     Ǥ Ǧ a Ȍ of     ͳͲͲ  †‡• for ƒ†  †ǡ ‹– Skil †—–› ͻǣ͵ͺ –›–‘ ‡ ‹–• –‡š– light  †Ǥdz ’ƒ„Ž‡  —‰‰Ž‡† ‘„Ž‹‰ƒǦ –—†‡‘ˆ ǡ͸͵ in Š‡ †‹••‡–ǡ ‘ˆˆ‹†—Ǧ  › –‘ –Š‡  Place)  •ƒ†’”‹Ǧ (or  ‘—”–•Šƒ˜‡ Kickbacks ȌǤ  Need ͳͲʹ Skilling  and consideration  No   for   ͸Ͳͷ Bribes ͲͲʹȌ ȋ“—‘–‹‰ ‹–‡† –ƒ–‡• ˜Ǥ  There’s of    ȋ ƒŽ‹ƒǡ Ǥǡ ‘ —””‹‰ȌǤ FRAUD •‡ ’”‘„Ž‡•ǡ –Š‡ ”‹‡ ‘ˆ  Why  remanded  Duty  Nature  and  the  Surplus: SERVICES in    –›Ǥ ”‘’‡”Ž› Ž‹‹–‡† ƒ† †‡ˆ‹‡ vacated Services ǡ–Š‡‡˜‡–Š‹” —‹– ‘ ‹•‡Ž›ƒ••‡”–‡†ǡ HONEST Conduct Ǧ   B. Fiduciary Honest esque” Ǧ  George  The Ȍ ͷȀ͹ȀʹͲͳ͵ v. REDEFINING  †‡” ‘‘Žƒ™ǡˆ”ƒ—†”‡“—‹”‡•ƒ„”‡ƒ Š‘ˆƒ ‘”ȋʹȌ™Š‡–Š‡”–Š‡†—–›Šƒ•‹–••‘—” ‡‹‰‡‡”ƒŽ  “Criminal   ͳͲ͵ ͳͲͳ ͳǤ—„Ž‹ ‡”•—•”‹˜ƒ–‡ ‹†— ‹ƒ”›—–›   ‘™‡˜‡”ǡ †‡•’‹–‡ ƒŽŽ ‘ˆ –Š‡ States    ͻͻ ǡ‹–‡†–ƒ–‡•˜Ǥƒ™›‡”ǡͺͷ Ǥ͵†͹ͳ͵ǡ͹͵͵Ǥͳ͹ȋͳ•–‹”Ǥͳͻͻ͸ ȋ ͶͻǡͷͳȋʹͲͳͲȌǤ e.g. Šƒ–†—–›‡š–‡†•–‘’”‹˜ƒ–‡ƒ –‘”•™Š‘ƒ”‡–”‡ƒ–‡†ƒ•’—„Ž‹   Prohibiting ƒ–ʹͻ͵͸Ǥ   Ǥ   United   Id. See, ͳͲͶ Ǧ  Law   ‘—”–• –›’‹ ƒŽŽ› ˆ‹† –Šƒ– –Š‡ •‘—” ‡ ‘ˆ ƒ ’—„Ž‹  ‘ˆˆ‹ ‹ƒŽǯ• †—  Dz ”ƒ—†‹‹–•‡Ž‡‡–ƒ”› ‘‘Žƒ™•‡•‡‘ˆ†‡ ‡‹–ǤǤǤ‹ Ž—  ‘—”–—Ž–‹ƒ–‡Ž›†‡ Ž‹‹‰–‘ƒ††”‡••–Š‡•—„Œ‡ –‘ˆˆ‹†— ‹ƒ”› Ǥ      Dz‘–‡˜‡”›„”‡ƒ Š‘ˆ‡˜‡”›ˆ‹†— ‹ƒ”›†—–›™‘”•ƒ ”‹‹ƒŽˆ”ƒ— ’”‘˜‹†‡ Š‘‡•– •‡”˜‹ ‡• ‹Š‡”‡• ‹ –Š‡ ‘ˆˆ‹ ‹ƒŽǯ• ˆ‹†— ‹ƒ”›’—„Ž‹ Ǥ †—– Š‘‡•–•‡”˜‹ ‡•ˆ”ƒ—†Šƒ•’‡”•‹•–‡†ˆ‘”†‡ ƒ†‡•†‡•’‹–‡ƒ—Ž–‹ ‘•–‹–—–‹‘ƒŽ ŠƒŽŽ‡‰‡•Ǥ Š‹• Ž‘‰‡˜‹–›•Š‘”– ‘‹‰•ǡ ƒ •—‰‰‡•–• ˆ‡†‡”ƒŽ Š‘‡•– –Šƒ–ǡ •‡”˜‹ ‡• ”‹‡ †‡•’‹– ƒ ‡’–‡† Šƒ• ’Žƒ ‡ ƒ ‹ ”‡ ‘‰‹œ‡† ‡”‹ ƒ •‘ ‹‡ ‘—Ž†•‡”˜‡ƒ•‹‰‹ˆ‹ ƒ–’—„Ž‹ ‹–‡”‡•–Ǥ –Šƒ–Š‡’”‹˜ƒ–‡ ‘–‡š–Ǥ †—–›Ǥ ‘™‡˜‡”ǡ ‘—”–•–‡†–‘˜‹‡™–Š‡•‘—” ‡‘ˆ–Š‡ˆ‹†— ‹ƒ”› –‹‘ ‹ Š‘‡•– •‡”˜‹ ‡• ˆ”ƒ—† ‘”‡ ‡š’ƒ•‹˜‡Ž› ‹ –Š‡ ’—„Ž‹  ‘   ͻͻǤ ‹‘–Š› ǤǤ ǯ‘‘Ž‡ǡ ʹͲͳ͵Ȑ ‹–ǯ •–ƒ†ƒ”†Ǥdz ͳͶǦ  ͳͲͲǤ Ͷ͹͹ Ǥʹ†ͷͲͺǡͷͳʹȋ͹–Š‹”Ǥͳͻ͹͵ȌǤ ͳͲͳǤ ‹ŽŽ‹‰˜Ǥ‹–‡†–ƒ–‡•ǡͳ͵ͲǤ–Ǥʹͺͻ͸ǡʹͻ͵͹ȋʹͲͳͲȌ ͳͲʹǤ  ’”‹ ‹’Ž‡•‘ˆ‘„Ž‹‰ƒ–‹‘‘”•’‡ ‹ˆ‹ •–ƒ–‡‘”ˆ‡†‡”ƒŽŽƒ™Ǥ Ž–Š‘—‰Š–Š‹•’”‡ ‡’–‹•‰‡‡”ƒŽŽ›ƒ‰”‡‡†—’‘ǡ ‘—”–•Šƒ˜‡•–” –‘†‡ˆ‹‡–Š‡Ž‹‡†‡ƒ” ƒ–‹‰ˆ”ƒ—†—Ž‡–„”‡ƒ Š‡•ˆ”‘‘Ǧ —Ž ‘†— –Ǥ —•–‹ ‡ ƒŽ‹ƒŠ‘‡†‹‘–Š‹•’”‘„Ž‡‹Š‹• ƒ†‘’–‡†ƒ˜ƒ”‹‡–›‘ˆƒ’’”‘ƒ Š‡•–‘‡ƒ Š‘ˆ–Š‡•‡‹••—‡•ǡ™‹–Š– ƒ”‰—‹‰ –Šƒ– ‘—”–• Šƒ˜‡™Š‡–Š‡”ƒˆ‹†— ‹ƒ”›†—–›ƒ’’Ž‹‡•†‹ˆˆ‡”‡–Ž›–‘’—„Ž‹ ‘ˆˆ‹ ‹ƒŽ ˆƒ‹Ž‡† –‘ ‡•–ƒ„Ž‹•Š˜ƒ–‡‹†‹˜‹†—ƒŽ•ǡ ‘’”‡Š‡•‹˜‡Ž› ȋͳ  ͳͲ͵Ǥ ‹–‡† –ƒ–‡• ˜Ǥ ƒƒ”‡ŽŽƒǡ ʹ͹͹ Ǥ͵† ͸͹ͺǡ ͸ͻͷ ȋ͵† ‹”Ǥ ʹ ‘Žœ‡”ǡ ͺͳ͸ Ǥʹ† ͵ͲͶǡ ͵Ͳ͹ ȋ͹–Š ‹”Ǥ ͳͻͺ͹Ȍǡ –Š‡†‡Ž‹„‡”ƒ–‡ ‘ ‡ƒŽ‡–‘ˆƒ–‡”‹ƒŽ‹ˆ‘”ƒ–‹‘‹ƒ•‡––‹‰ ‹ƒ”›‘„Ž‹‰ƒ–‹‘Ǥdz ƒ–ƒŽŽǤ ling Federal  ƒŽŽ›˜Ǥ‹–‡†–ƒ–‡•ǡͶͺ͵ǤǤ͵ͷͲȋͳͻͺ͹ȌȌǤ  ͳͲͶǤ  33531-ckt_88-2 Sheet No. 168 Side A 05/13/2013 14:40:30 A 05/13/2013 168 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 168 Side B 05/13/2013 14:40:30     Ǧ Ǧ v.    ŽƒǦ –Š‡ ͻǣ͵ͺ ›ƒŽ–›   ‡Ǧ ƒ”ƒŽŽ‡Ž ƒ‰‹„Ž‡ ‹‘•Š‹’ Carpen States ‘›‡‡•–‘ ”‹‹ƒŽ  McNally’s –›‹„‘–Š ƒŽ‹‹–•‡Žˆ Š‡’”‹˜ƒ–‡ ‘—‰Š•— Š ‹–‡†–ƒ–‡•˜Ǥ ‡–Š‹ •Žƒ™ ”•—ˆˆ‹ ‹‡– ‹–‡† –ƒ–‡• ˜Ǥ  — Šƒ„”‡ƒ Š ȐǤ also United  II  ͳͲͻ see Rybicki ͻͺʹȌǢ ‡” ‹”Ǥͳͻͺ͵ȌǤ  ‘†— – ‘ˆ Š‹• ‡’Ž‘›‡”ǯ• „—•‹Ǧ Ž‘›‡‡‘––‘ ‘ ‡ƒŽǡƒ†‹ˆƒ ––‘  ȏ‘Žͺͺǣʹ REVIEW  ‹ ˆƒ – ƒ‡ ‰‘˜‡”‡–ƒŽ †‡ ‹ LAW  Š—•ǡƒ•–ƒ–‡Žƒ™˜‹‘Žƒ–‹‘ƒ›‹Ǧ Š‡‡ ‘†‹” —‹–‹ ͳͳͳ KENT „”‡ƒ Š‘ˆˆ‹†— ‹ƒ”›†—–›ǡƒŽ–Š Ǧ ͳͲ͹ ‹–‡†–ƒ–‡•˜Ǥƒ”–ƒǡ͸͵ͷ Ǥʹ†ͻͻͻǡͳͲͲ͹ȋʹ†‹”ǤͳͻͺͲȌȋDz Ǧ CHICAGO  Ȍ ͷȀ͹ȀʹͲͳ͵ also  Ȅƒ ƒ•‡–Šƒ–™ƒ•†‡ ‹†‡†‹–Š‡™ƒ‡‘ˆ see  ʹǤ”‡ƒ Š‘ˆ–ƒ–‡ƒ™‡“—‹”‡‡–     ‡ ‡ǡ ‘—”–•Šƒ˜‡‰‘‡•‘ˆƒ”ƒ•–‘”‡ ‘‰‹œ‡‰‡‡”ƒŽ  ‹–‡†–ƒ–‡•˜Ǥƒ”„‘ǡͷ͹ʹ Ǥ͵†ͳͳʹǡͳͳ͹ǤͶȋ͵†‹”ǤʹͲͲͻȌǢ States  ǡ  ȋ ͳͲͺ e.g.   ƒ–ͳ͵͵ͷǦ͵͸Ǣ   –Ž‡ƒ•–‘‡ ‘—”–Šƒ••—‰‰‡•–‡†–Šƒ–’—„Ž‹ ‘ˆˆ‹ ‹ƒŽ•ƒ›„‡ Ǥ   ‡š–‡†‡†–Šƒ–†—–›–‘‹ Ž—†‡ƒ›’‡”•‘‹ƒ”‡Žƒ–‹‘•Š‹’–Šƒ–    Id. Id. See, ͳͲ͸ Ǧ United ͳͲͷ  ‹” —‹–• Šƒ˜‡ ‘‡ –‘ †‹ˆˆ‡”‹‰ ‘ Ž—•‹‘• ”‡‰ƒ”†‹‰ ™Š‡–Š‡” ƒ –Š‡’”‹˜ƒ–‡ ‘–‡š–ǡ–Š‡ǤǤ‹” —‹–Šƒ•Š‡Ž†–Šƒ–ƒ†—–›’ ͳͳͲ v.   ‰‹˜‡•”‹•‡–‘ƒ†—–›‘ˆŽ‘›ƒŽ–› ‘’ƒ”ƒ„Ž‡–‘–Šƒ–‘™‡†„›‡’Ž ‡’Ž‘›‡”•Ǥ •Šƒ”’ Ž‹‹–ƒ–‹‘ ‘•’‡ ‹ˆ‹ ƒŽŽ› –Š‡ Šƒ”ƒ –‡”‹œ‡† ƒ ƒ‹Ž ‡’Ž‘›‡”ǯ• ‘–”ƒ –—ƒŽ ˆ”ƒ—† ”‹‰Š–’Ž‘›‡‡ǯ•Š‘‡•–ƒ†ˆƒ‹–Šˆ—Ž•‡”˜‹ ‡ƒ•Dzƒ‹–‡”‡•––‘‘‡–Š‡”‡ –‘ •–ƒ–—–‡ ƒ –‘ ’”‘’‡”–›–‘ˆƒŽŽ™‹–Š‹–Š‡’”‘–‡ –‹‘‘ˆ–Š‡ƒ‹Žˆ”ƒ—†•–ƒ–—–‡Ǥdz ”‹‰Š–•Ȅ Rybicki Š‡Ž†–‘ƒŠ‹‰Š‡”•–ƒ†ƒ”†‘ˆ’—„Ž‹ –”—•––Šƒ‹†‹˜‹†—ƒŽ•‹– •‡ –‘”Ǥ —”‡”ǡͶ͸ͷ Ǥ͵†͸͸͹ǡ͸͹ͷȋ͸–Š‹”ǤʹͲͲ͸ȌǤ  ͳͲ͸Ǥ ‹–‡†–ƒ–‡•˜Ǥ‡‹”‡ǡ͹ʹͲ Ǥʹ†ͳ͵ʹ͹ǡͳ͵͵͹Ǥͳ͵ȋǤǤ  ͳͲ͹Ǥ    ͳͲͷǤ ‹–‡† –ƒ–‡• ˜Ǥ ƒ”‰‹‘––ƒǡ ͸ͺͺ Ǥʹ† ͳͲͺǡ ͳʹʹ ȋʹ†‹”Ǥ ͳ ͸Ͳ͸ ˆ‹†— ‹ƒ”‹‡•™Š‡‘–Š‡”•”‡Ž›‘–Š‡„‡ ƒ—•‡‘ˆƒ•’‡ ‹ƒŽ”‡Žƒ– ™‹–Š –Š‡ ‰‘˜‡”‡– ‘” ™Š‡ –Š‡› •‹‘•Ǥ ͳͶǦ  ͳͲͻǤ ͶͺͶǤǤͳͻǡʹͷȋͳͻͺ͹ȌǤ ͳͳͲǤ  ’”‹ ‹’Ž‡•‘ˆŽ‘›ƒŽ–›ƒ†Š‘‡•–›ƒ•ƒ•‘—” ‡‘ˆƒˆ‹†— ‹ƒ”›†— –Š‡’—„Ž‹ ƒ†’”‹˜ƒ–‡•‡ –‘”•Ǥ ‘™‡˜‡”ǡ–Š‡—’”‡‡‘—”–‹ ter ˜‹‘Žƒ–‹‘‘ˆ•–ƒ–‡‡–Š‹ •‘” ”‹‹ƒŽŽƒ™‹•‡‹–Š‡”‡ ‡••ƒ”›‘ –‘ ‡•–ƒ„Ž‹•Š ƒ „”‡ƒ Š ‘ˆ ˆ‹†— ‹ƒ”› †—–› ‰‹˜‹‰Ž‹ƒ„‹Ž‹–›Ǥ™‘ ‹” —‹–••‡‡–‘ƒ‰”‡‡–Šƒ–ƒ˜‹‘Žƒ–‹‘‘ˆ•–ƒ–‡ ”‹•‡ –‘ ˆ‡†‡”ƒŽ ƒ„‡•—ˆˆ‹ ‹‡––‘‡•–ƒ„Ž‹•Šƒ ˜‹‘Žƒ–‹‘ƒ›‘–„‡‡ ‡••ƒ”›Ǥ ‘ˆŽ‘›ƒŽ–› ‘„‹‡†™‹–Šƒ• Š‡‡–‘†‡ˆ”ƒ—†‘ˆ–ƒ‰‹„Ž‡‘”‹– ’”‘’‡”–› ”‹‰Š–• ƒǡ Š‘™‡˜‡”ǡ–‹‘Ǥ ‘•–‹–—–‡ ƒ Š‘‡•– •‡”˜‹ ‡• ˜‹‘ –‘–Š‡’—„Ž‹ †—–›Dzƒ›•–‡ˆ”‘ƒ‡’Ž‘›‡–”‡Žƒ–‹‘•Š‹’‘ˆ •‘”– –Šƒ– ‹’‘•‡• †‹• ”‡–‹‘ ƒ† ‘•‡“—‡–Ž› ‘„Ž‹‰ƒ–‹‘•ƒ†ˆ‹†‡Ž‹–›‘–Š‡‡’Ž‘›‡‡Ǥdz ‘ˆ Ž‘ †‡‡†ǡ–Š‡‡’Ž‘›‡–”‡Žƒ–‹‘•Š‹’ǡ„›‹–•‡Žˆǡƒ›‘„Ž‹‰‡ƒ‡’ ”‡˜‡ƒŽǡ ‹ˆ‘”ƒ–‹‘ Š‡ Šƒ• ”‡ƒ•‘ –‘ „‡Ž‹‡˜‡ ‹• ƒ–‡”‹ƒŽ –‘ –Š‡ ‡••ǤdzȌǤ  ͳͲͺǤ ͵ͷͶ Ǥ͵†ͳʹͶǡͳʹ͸Ǧʹ͹ȋʹ†‹”ǤʹͲͲ͵Ȍȋ‡„ƒ ȌȏŠ‡”‡‹ƒˆ–  ͳͳͳǤ  ”—Ž‡›ǡͳͳ͸ Ǥ͵†͹ʹͺǡ͹͵Ͷȋͷ–Š‹”Ǥͳͻͻ͹ȌǤ 33531-ckt_88-2 Sheet No. 168 Side B 05/13/2013 14:40:30 B 05/13/2013 168 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 169 Side A 05/13/2013 14:40:30   ƒǦ  ˜‹Ǧ ͳʹͲ –Š‡ ‹ƒŽ ǡͳͳ͸ ƒŽ‡† ͻǣ͵ͺ  ƒŽ†‡Ǧ ‡˜‡”› ‡–Š‹ • ‘ˆ–Š‡ –”ƒ”› ‘•‡ —Ǧ ˆ‹ƒǦ Ǥ ‹”•–ǡ ‡ˆ‹– –Š‡ ‹ ‹ƒŽƒ Ǧ ‹ƒŽ—•– „‹Ž‹–›Ǥ ”‹•‡•–‘ ‹„‹–‡†„› ‡ƒŽ–›„› ”‡–‹‘ƒ”› Brumley ‡–‡”‹ƒǦ œ‹‰–Š‡Š‘Ž†‹‰‹ Š‹”†ǡ‹–‡•–ƒ„Ǧ ‡ ‘†ǡ‹–ƒŽŽƒ›• ͳͳͻ ͳͳͺ ǤʹͲͲͺȌȋ ‹–‹‰  Š‡ ‘—”– ”‘‘–‡† ‹–•  ͸Ͳ͹ ͳͳʹ ͲͲʹȌǤ FRAUD  SERVICES  Š‡–Š‡‘ˆˆ‹ ‹ƒŽǯ•ˆƒ‹Ž—”‡–‘†‹• Ž‘•‡ƒ HONEST   ˆ –Š‡ ‘ˆˆ‹ ‹ƒŽ ”‡†‡”• DzŒ—•– –Š‡ •‡”˜‹ ‡• ͳͳ͸  ͳͳ͵  ͳͳ͹ ͳͳͶ Š‡Š‘‡•–•‡”˜‹ ‡•˜‹‘Žƒ–‹‘‡š‹•–•”‡‰ƒ”†Ž‡••‘ˆ Ȍ ͷȀ͹ȀʹͲͳ͵ REDEFINING ͳͳͷ    ǡͳͳ͸ Ǥ͵†ƒ–͹͵ͶǤ ǡͳ͵ͲǤ–Ǥʹͻ͹ͳȋʹͲͳͲȌǤ   ȋ ‹–‡†–ƒ–‡•˜Ǥƒ”„‘ǡͷ͹ʹ Ǥ͵†ͳͳʹǡͳͳ͹ȋ͵†‹”ǤʹͲͲͻȌȋƒƒŽ› Brumley vacated   ƒ–͸ͺͲǤ ƒ–ͳʹͶͷǤ ƒ–ͳʹͶͶǦͶͷǤ  Ǥ       ȌǤ See Id. Id. Id. See Id. Id. Ǧ Š‡ ‹ˆ–Š‹” —‹–ǡ‹Š‘Ž†‹‰–Šƒ–•–ƒ–‡Žƒ™ ”‡ƒ–‡•–Š‡•‘—” ‡ ‡˜‡”ƒŽŒ—•–‹ˆ‹ ƒ–‹‘••—’’‘”–ƒ”‡“—‹”‡‡––Šƒ– ‘†— –—•– Š‡Š‹”†‹” —‹–ǡ‘–Š‡‘–Š‡”Šƒ†ǡŠ‡Ž†–Šƒ–ƒ’—„Ž‹ ‘ˆˆ‹ ‹  ‘Žƒ–‡ •–ƒ–‡ ‡–Š‹ • Žƒ™ ‹ ‘”†‡”„‡ ƒ—•‡‹–”‡•–”‹ –•ˆ‡†‡”ƒŽ ”‹‹ƒŽŽ‹ƒ„‹Ž‹–›–‘ ‘†— –’”‘Š –‘ ˜‹‘Žƒ–‡ ˆ‡†‡”ƒŽ ”‹‹ƒŽ Žƒ™ –Š‡ •–ƒ–‡• –Š‡•‡Ž˜‡•ǡ ‹– ƒ††”‡••‡• –Š‡ ‘ ‡” –Šƒ– ˆ‡†‡”ƒŽ–‘”•‹‰Š–‡š‡”–ƒ—™ƒ””ƒ–‡†‹ˆŽ—‡ ‡‘˜‡”•–ƒ–‡ƒ†Ž‘ ƒŽ ’” •–ƒ†ƒ”†•ǡ ‘–”ƒ˜‡‹‰ ’”‹ ‹’Ž‡• ‘ˆ ˆ‡†‡”ƒŽ‹•Ǥ –›‹‰Ž‹ƒ„‹Ž‹–›–‘˜‹‘Žƒ–‹‘•‘ˆ•’‡ ‹ˆ‹ •–ƒ–‡•–ƒ–—–‡•Ǥ ‘ ‡”•ƒ„‘—–ˆƒ‹”‘–‹ ‡‘ˆ–Š‡ ‘†— –•—„Œ‡ ––‘ ”‹‹ƒŽ’ ™Š‡–Š‡” –Š‡ ‘ˆˆ‹ ‹ƒŽ ƒ –‡† ™‹–Š –Š‡ ’—”’‘•‡ ‘ˆ Šƒ˜‹‰ –Š‡ ‘ ‡ Ž‹•Š‡• Ž‡ƒ” „‘—†ƒ”‹‡• –‘ –Š‡ Š‘‡•–†‹•Š‘‡•–ƒ –†‘‡•‘–‡ ‡••ƒ”‹Ž›Ž‡ƒ†–‘ˆ‡†‡”ƒŽ ”‹‹ƒŽŽ‹ƒ •‡”˜‹ ‡• •–ƒ–—–‡ •‘ –Šƒ– ‘ˆŽ‹ – ‘ˆ ‹–‡”‡•– ˜‹‘Žƒ–‡• •–ƒ–‡ ‡–Š‹ • Žƒ™•ǡ –Š‡–Š‡Ž‡˜‡Ž‘ˆ ”‹‹ƒŽˆ”ƒ—†Ǥ ‹• ‘†— – ™Š‹ Š ™‘—Ž† „‡ ”‡†‡”‡† „› ƒ –‘–ƒŽŽ› ˆƒ‹–Šˆ—Ž ‡’Ž‘›‡‡ǡ ƒ† ‹ˆ • Š‡‡ †‘‡• ‘– ‘–‡’Žƒ–‡ ‘–Š‡”™‹•‡ǡ –Š‡”‡ Šƒ• „‡‡–‹‘‘ˆŠ‘‡•–•‡”˜‹ ‡•Ǥdz ‘ †‡’”‹˜  ͳͳʹǤ  ˆ‹†— ‹ƒ”›†—–›ǡƒ‹–ƒ‹•–Šƒ––‘˜‹‘Žƒ–‡Țͳ͵Ͷ͸ƒ’—„Ž‹ ‘ˆˆ‹ ˆƒ‹Ž –‘ †‡Ž‹˜‡” •‡”˜‹ ‡• ‘™‡† —†‡” •–ƒ–‡ Žƒ™Ǥ  ʹͲͳ͵Ȑ ˆ‘” –Š‡ ƒƒŽ›•‹• ‘ˆ ™Š‡–Š‡” ‘†— –ˆ”ƒ—†ǡ‡˜‡‹ˆ–Š‡•–ƒ–‡Žƒ™˜‹‘Žƒ–‹‘ƒ›‘– ‘•–‹–—–‡–Š‡† ”‹•‡• –‘ –Š‡ Ž‡˜‡Ž ‘ˆ–‹˜‡ˆƒ –‘”Ǥ ”‹ ͳͶǦ —•‡†‘ˆƒDzŠ‘‡•–•‡”˜‹ ‡•dz˜‹‘Žƒ–‹‘—•– ‘• ‹‘—•Ž›ƒ – ‘ –‘ •–ƒ–‡ Žƒ™ ”‡“—‹”‡‡–•Ǥ Š‘Ž†‹‰‹–Š‡’Žƒ‹Žƒ‰—ƒ‰‡‘ˆȚͳ͵Ͷ͸ǡ”‡ƒ•‘‹‰–Šƒ––Š‡‘ˆˆ  ͳͳ͵Ǥ  ‹–‡”‡•–‹ˆŽ—‡ ‡Š‹•ƒ –‹‘•Ǥ  ͳͳͶǤ  ’”‹˜‡•–Š‡’—„Ž‹ ‘ˆŠ‹•Š‘‡•–•‡”˜‹ ‡•™Š‡‡˜‡”Š‡ ‘ ‡ƒŽ•ƒ ‹ƒŽ‹–‡”‡•–‹˜‹‘Žƒ–‹‘‘ˆ•–ƒ–‡ ”‹‹ƒŽŽƒ™ƒ†–ƒ‡•†‹• ƒ –‹‘ ‹ Š‹• ‘ˆˆ‹ ‹ƒŽ ƒ’ƒ ‹–› –Šƒ– Š‡ ‘ ‡ƒŽ‡†‹–‡”‡•–Ǥ ‘™• ™‹ŽŽ †‹”‡ –Ž› „‡  ͳͳͷǤ ‹–‡†–ƒ–‡•˜Ǥƒƒ”‡ŽŽƒǡʹ͹͹ Ǥ͵†͸͹ͺǡ͸ͺͲȋ͵†‹”Ǥʹ ͳͳ͸Ǥ  Panarella  ͳͳͺǤ ‹–‡†–ƒ–‡•˜Ǥ‡›Š”ƒ— ŠǡͷͶͺ Ǥ͵†ͳʹ͵͹ǡͳʹͶͶȋͻ–Š‹”  ͳͳ͹Ǥ   ͳͳͻǤ  Ǥ͵†ƒ–͹͵ͶȌǡ  ͳʹͲǤ  33531-ckt_88-2 Sheet No. 169 Side A 05/13/2013 14:40:30 A 05/13/2013 169 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 169 Side B 05/13/2013 14:40:30   › ‘’– ‡ –‘ ͻǣ͵ͺ  ƒ  —”Ǧ  ‹ –Š‡ ƒ–‡ Žƒ™ ͳʹͺ ‘”–Š‡‹” ͳʹ͵ ‡‹•Ž‘‰‹  ƒˆ‹†— ‹Ǧ  ’—‹•Š ˆ ‘†— – ‹Š‡”‡–  ƒŽ‹ƒǯ•‡Ǧ  Š‹• †—–› ‘ˆ ͳʹͶ ‹†‹‰–Šƒ–Œ—•–Š‘™ˆƒ” Š‡‡˜‡–Š‹” —‹– ƒ–‡•˜Ǥ‹ŽŽ‹ƒ•ǡͶͶͳ Ǥ͵†͹ͳ͸ǡ Ͷ͹͹ Ǥʹ†ͷͲͺǡͷͳͶǤ͹ȋ͹–Š‹”Ǥ  , ‹ ›dz “—‡•–‹‘ȌǢ ‹–‡† –ƒ–‡• ˜Ǥ ǡͳʹͻͻȋͳͳ–Š‹”ǤʹͲͲ͹ȌȋŠ‘Ž†‹‰ ͳʹʹ ›ƒ‰”‡‡‡–ȌǤ ‡ˆ‘” ‡”‘ˆˆ‡†‡”ƒŽ’”‡ˆ‡”‡ ‡•‘ˆ ‡•‘–”‡“—‹”‡’”‘‘ˆ‘ˆƒ•–ƒ–‡Žƒ™ ”‘ƒ†•‹–‘•–ƒ–‡ƒ––‡”•ƒ†‰‡—Ǧ  ȏ‘Žͺͺǣʹ ‹‘”‹–›dz•–ƒ–‡Žƒ™Ž‹‹–‹‰’”‹ ‹Ǧ ‹–‡†–ƒ–‡•˜Ǥ”—Ž‡›ǡͳͳ͸ Ǥ͵†  Ǥͳͻͻ͹ȌȋDz ‡†‡”ƒŽŽƒ™‰‘˜‡”•‡š‹•–Ǧ ”‹˜ƒ–‹‘‘ˆ–Š‡’—„Ž‹ ǯ•”‹‰Š––‘Š‘‡•– see  REVIEW But  ǡͷͶͺ Ǥ͵†ƒ–ͳʹͶͷȋDzȏȐŠ‡„ƒ•‹•ˆ‘”’”‘•‡ —–Ǧ ’’”‘ƒ Š ‘”‡‘˜‡”ǡ–Š‡ˆ‡†‡”ƒŽ‰‘˜‡”‡– LAW  ǡͷͶͺ Ǥ͵†ƒ–ͳʹͶͷȋ†‡ Ž‹‹‰–‘ƒ†‘’––Š‡•–ƒ–‡ ͳʹ͸ KENT Ǧ Weyhrauch Skilling  Weyhrauch also  CHICAGO ƒŒ‘”‹–›‘’‹‹‘ǡ —•–‹ ‡ ‹•„—”‰Šƒ”†Ž›”‡Ǧ see ͵ǤŠ‡  Ȍ ͷȀ͹ȀʹͲͳ͵ ͳʹͳ   Skilling  ǡͷͶͺ Ǥ͵†ƒ–ͳʹͶͷǤ  ƒ”– Ǥ   ȋ ǡͷʹ͵ Ǥ͵†ƒ–͹ͳʹȋ ‹–‹‰‹–‡†–ƒ–‡•˜Ǥ ‡‘”‰‡ ǡͷʹ͵ Ǥ͵†ƒ–͹ͳʹǢ ‹–‡†–ƒ–‡•˜Ǥ” ‹—‘Ž‹ǡͷͳ͵ Ǥ͵†ʹͻͲǡʹͻͺȋͳ•–‹”ǤʹͲͲͺȌȋˆ supra   ƒ–ͳʹͶ͸Ǥ ƒ–ͳʹͶͷǤ    Ǥ   ‘‰”‡••†‹†‘–‹–‡†–Š‡ ”‹‹ƒŽ‹–›‘ˆ ‘†— –—†‡”ˆ‡†Ǧ  Sorich Weyhrauch Id. Id. Sorich Id. See See Ǧ ͳʹ͹ ͳʹͷ ‹‰‹ˆ‹ ƒ–Ž›ǡ–Š‡—’”‡‡‘—”–Šƒ•‘–‡š’”‡••Ž›”‡ ‘‰‹œ‡†ƒ ‡•’‹–‡–Š‡•‡Œ—•–‹ˆ‹ ƒ–‹‘•ǡ‘•– ‹” —‹–•Šƒ˜‡†‡ Ž‹‡†–‘ƒ†  ’Šƒ•‹•‘–Š‡DzŠ‘’‡Ž‡••Ž›—†‡ˆ‹‡†dz ƒ•‡Žƒ™‘–Š‡•—„Œ‡ –Ǥ ˆ‡””‡†–‘ƒˆ‹†— ‹ƒ”›†—–›ƒ–ƒŽŽǡ‹•–ƒ” ‘–”ƒ•––‘ —•–‹ ‡ Ž‹‹–ƒ–‹‘ ‘ Š‘‡•– •‡”˜‹ ‡• Ž‹ƒ„‹Ž‹–› „ƒ•‡† ‘ ƒ˜‹‘Žƒ–‹‘Ǥ –Š‡ ’”‡†‹ ƒ–‡ •– ‹‰’—„Ž‹ ‘ˆˆ‹ ‹ƒŽ•ˆ‘”Š‘‡•–•‡”˜‹ ‡•ˆ”ƒ—†”‡•–•‘–Š‡†‡’ ƒ†ˆƒ‹–Šˆ—Ž‰‘˜‡”‡–ǤdzȌȋ‹–‡”ƒŽ“—‘–‡•‘‹––‡†ȌǤ Žƒ™Ž‹‹–‹‰’”‹ ‹’Ž‡ȌǢ‹–‡†–ƒ–‡•˜ǤƒŽ‡”ǡͶͻͲ Ǥ͵†ͳʹͺʹ ‡ ‡‘ˆˆ‹†— ‹ƒ”›†—–›—†‡”–Š‡ƒ‹Žˆ”ƒ—†•–ƒ–—–‡ǤdzȌǤ  ͳʹ͵Ǥ  –Šƒ–DzƒŠ‘‡•–•‡”˜‹ ‡•ƒ‹Žˆ”ƒ—†‘”ƒ‹Žˆ”ƒ—† ‘˜‹ –‹‘†‘ ˜‹‘Žƒ–‹‘dzȌǢ‹–‡†–ƒ–‡•˜Ǥ ”‘•–ǡͳʹͷ Ǥ͵†͵Ͷ͸ǡ͵͸͸ȋ͸–Š‹” ͹ʹͺǡ͹͵ͷȋͷ–Š‹”Ǥͳͻͻ͹Ȍȋ ”‹–‹ ‹œ‹‰–Š‡—•‡‘ˆDzȚͳ͵Ͷ͸ƒ•ƒ Ǯ‰‘‘†‰‘˜‡”‡–ǯ™‹–Šƒ––‡†ƒ–’‘–‡–‹ƒŽˆ‘”Žƒ”‰‡ˆ‡†‡”ƒŽ‹ ‹‡†‹ˆˆ‹ —Ž–‹‡•‘ˆ˜ƒ‰—‡‡••dzȌǤ  ͳʹͷǤ   ͳʹ͸Ǥ    ͳʹͳǤ  ͸Ͳͺ ‹ƒŽŽ›ǡ –‘ –Š‡ ‡š–‡– ƒ› ’—„Ž‹  ‘ˆˆ‹ ‹ƒŽ•ǯ ‘•–‹–—‡ ‹‡• ƒ †‹•Š‘‡•–‘”—‡–Š‹ ƒŽ ‘†— –†‹”‡ –Ž›ƒ––Š‡„ƒŽŽ‘–„‘šǡ–Š‡” „‡Š‹†”‡•‡”˜‹‰–‘–Š‡•–ƒ–‡• ‘–”‘Ž‘˜‡”‡–Š‹ ƒŽ•–ƒ†ƒ”†•ˆ ‘™’—„Ž‹ ‘ˆˆ‹ ‹ƒŽ•Ǥ ͳͶǦ ͹ʹ͵ǦʹͶȋͻ–Š‹”ǤʹͲͲ͸Ȍǡ™Š‡”‡–Š‡•‘—” ‡™ƒ•ƒ’‘™‡”‘ˆƒ––‘”‡ ͳͻ͹͵Ȍǡ™Š‡”‡–Š‡•‘—” ‡™ƒ•ƒ‡’Ž‘›‡‡Šƒ†„‘‘ǡƒ†‹–‡†–  ͳʹͶǤ  ƒ› ”‡“—‹”‡‡– ‘ˆ •–ƒ–‡ Žƒ™ ˜‹‘Žƒ–‹‘ ƒ– ƒŽŽǤ Šƒ•ƒ•‹‰‹ˆ‹ ƒ–‹–‡”‡•–‹‡•–ƒ„Ž‹•Š‹‰ƒ—‹ˆ‘”•–ƒ†ƒ”†‘ ˆ‘” ’—„Ž‹  ‘ˆˆ‹ ‹ƒŽ• –Šƒ–•ƒ‡Ǥ ƒ– Ž‡ƒ•– „ƒŽƒ ‡• –Š‡ •–ƒ–‡ ‹–‡”‡•– •–ƒ–‡ Žƒ™ ‹‰Š– „‡ ƒ ’”‡‹•‡ ˆ‘” Š‘‡•–‘”‹ Šǡͷʹ͵ Ǥ͵†͹Ͳʹǡ͹ͳʹȋ͹–Š‹”ǤʹͲͲͺȌȋ†‡ Ž‹‹‰–‘ƒ††ƒDz •‡”˜‹ ‡• ˆ”ƒ—† ‹• ƒ Dz–” ’Ž‡–‘‹–•’”‹˜ƒ–‡‰ƒ‹”‡“—‹”‡‡–ȌǢ  ͳʹ͹Ǥ  ‡”ƒŽŽƒ™–‘†‡’‡†‘‰‡‘‰”ƒ’Š›Ǥ ’‘‹–‡†‘—––Šƒ––Š‡Dz˜ƒ•–ƒŒ‘”‹–›dz‘ˆ ‹” —‹–•”‡ ‘‰‹œ‡–Šƒ– Š‘‡•–› ”‡ƒ–‡• ƒ —‹ˆ‘” •–ƒ†ƒ”† –Šƒ– †‘‡• ‘–•–ƒ–‡Ǥ ˜ƒ”› ˆ”‘ •–ƒ– –Š‡”‘”‡ǡ–Š‡ˆƒ –‘ˆ„‡‹‰ƒ’—„Ž‹ ‘ˆˆ‹ ‹ƒŽ ƒ””‹‡•™‹–Š‹–ƒ †—–› –‘ †‹• Šƒ”‰‡ †—–‹‡• ‹ –Š‡ ’—„Ž‹ ǯ• „‡•– ‹–‡”‡•–Ǥ ƒ”› ‘„Ž‹‰ƒ–‹‘ ƒ ‘‡ ˆ”‘ •‘—” ‡• ‘–Š‡” –Šƒ •–ƒ–‡ Žƒ™Ǥ  ͳʹʹǤ   ͳʹͺǤ  33531-ckt_88-2 Sheet No. 169 Side B 05/13/2013 14:40:30 B 05/13/2013 169 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 170 Side A 05/13/2013 14:40:30 ”   –Š‡ Šƒ– ƒ’Ǧ  • ”‡Ǧ ͻǣ͵ͺ ˜‹ ‡•  –‡ ‡ Š‹• ‡‡†Ǧ –ˆ”‘ ‘ˆ–™‘ –‘ˆ–Š‡  „‡ ƒ—•‡ †˜‹ –‹ †‡”Ž›‹‰  ƒ’ƒ ‹–› ‹”†’ƒ”–›Ǣ ǤǤˆ‘”’”‹Ǧ ™ƒ•—•—Ǧ ǡ–Š‡ ‘—”– ›–‘”‹•‡–‘  Š‡ ‘—”– ǡ ’”‹‘” –‘ –Š‡ Š‡’”‘•‡ —Ǧ ͳ͵Ͷ Courts  Bloom  ͳ͵ʹ v.  Š—•ǡ–Š‡”‡™ƒ•‘ Skilling Circuit  ͸Ͳͻ  ͳʹͻ States the ȋʹͲͳͲȌǤ   FRAUD  by   ‘™‡˜‡”ǡ–Š‡ ‘—”–Š‡Ž†–Šƒ– United ͳ͵͵ SERVICES     Adopted  ͳ͵Ͳ ‹‰–Šƒ–DzȏȐ‹•—•‡‘ˆ‘ˆˆ‹ ‡Ǥ HONEST  Principles ͳǤ Š‡ ƒ‹‡“—‹”‡‡–  Ȍ ͷȀ͹ȀʹͲͳ͵ REDEFINING   Limiting     Ž‘‘ƒŽŽ‡‰‡†Ž› ‘—•‡Ž‡†ƒ Ž‹‡––‘—•‡ƒ’”‘š›„‹††‡”  ‹–‡†–ƒ–‡•˜ǤŽ‘‘ǡͳͶͻ Ǥ͵†͸Ͷͻǡ͸ͷ͸Ǧͷ͹ȋ͹–Š‹”ǤͳͻͻͺȌǤ C.  ǡ ȋ ͳ͵ͳ e.g.  †‡ ‹•‹‘ ƒ† ‡ƒ –‡– ‘ˆ –Š‡ Š‘‡•– •‡”˜‹ ‡• •–ƒ–—–‡ǡ ƒ–͸ͷͲǦͷͳǤ ƒ–͸ͷͳǤ ƒ–͸ͷͷǤ   Ǥ      Id. See, Id. Id. Id. Ǧ •  ƒŽ‹ƒ ‡’Šƒ•‹œ‡† ‹ Š‹• ‘ —””‡ ‡ ‹ Š‡‡˜‡–Š‹” —‹–Šƒ•ƒ†‘’–‡†ƒ•–ƒ†ƒ”†”‡“—‹”‹‰ƒ‘ˆˆ‡†‡   McNally Š‡†‹†‘–‹•—•‡Š‹•’‘•‹–‹‘ƒ•ƒŽ†‡”ƒ–‘’‡”•‘ƒŽŽ›„‡‡ˆ‹ Š‹•ƒ –‹‘•Ǥ ˆ‡†‡”ƒŽ ‹” —‹–• Šƒ† ’”‘˜‹†‡† ˜ƒ”›‹‰ ƒ•™‡”• –‘ „ƒ•‹ ‰ƒ”†‹‰‘–‘Ž›–Š‡•‘—” ‡ƒ†‡š–‡–‘ˆ–Š‡ˆ‹†— ‹ƒ”›†—–›— “—‡•–‹‘ –Š‡Š‘‡•–•‡”˜‹ ‡•†‘ –”‹‡ǡ„—–ƒŽ•‘™Š‡–Š‡”Šƒ”‘”‰ƒ‹™ƒ• ‡† –‘ ‡•–ƒ„Ž‹•Š ƒ „”‡ƒ Š ‘ˆ –Šƒ–•–ƒ–—–‡ ™ƒ• †—–›Ǥ ‡ƒ –‡†ǡ ˜‡ ˜ƒ”‹‘—• ƒˆ–‡” ‘—”–• ƒ ‘ˆ Š‘‡•– ’’‡ƒŽ• •‡” †‹•ƒ‰”‡‡†’”‘’”‹ƒ–‡•–ƒ†ƒ”†•Ǥ ‘™‡˜‡”ǡ–Š‡ ‘—”–•–›’‹ ƒŽŽ›ƒ†‘’–‡†‘‡ ‘ –Š‡ ”‡“—‹”‡‡–•–‘Ž‹‹––Š‡ƒ’’Ž‹ ƒ–‹‘‘ˆȚͳ͵Ͷ͸ǣȋͳȌ–Š‡ ‘†— ƒ —•‡†—•–”‡•—Ž–‹‹ŽŽ‡‰‹–‹ƒ–‡‰ƒ‹–‘–Š‡ƒ —•‡†‘”ƒ–Š ‘”ȋʹȌ–Š‡ ‘†— –‘ˆ–Š‡ƒ —•‡†—•– ƒ—•‡Šƒ”–‘–Š‡ƒŽŽ‡‰‡ ‘ˆ–Š‡ˆ”ƒ—†Ǥ Š‡Ž†–Šƒ–ƒ ‹–›ƒŽ†‡”ƒ†‹†‘– ‘‹–Š‘‡•–•‡”˜‹ ‡•ˆ”ƒ—† –‘ƒ –‹’—”•—‹–‘ˆ’”‹˜ƒ–‡‰ƒ‹ˆ‘”ƒ„”‡ƒ Š‘ˆˆ‹†— ‹ƒ”›†—– –Š‡Ž‡˜‡Ž‘ˆŠ‘‡•–•‡”˜‹ ‡•ˆ”ƒ—†Ǥ  ͳ͵ͳǤ  •—ƒ”‹œ‡†‹–•’‘•‹–‹‘ǡ‡š’Žƒ‹ ƒ†˜‹ ‡ǡ Š‡ †‹† ‘– „”‡ƒ Š Š‹• †—–› ‘ˆ Š‘‡•– •‡”˜‹ ‡•Ǥ —Ž‡••Ž‘‘•‘‡Š‘™‹•—•‡†Š‹•’‘•‹–‹‘–‘’”‹˜ƒ–‡Ž›‰ƒ‹ˆ”‘   ͳʹͻǤ ‹ŽŽ‹‰˜Ǥ‹–‡†–ƒ–‡•ǡͳ͵ͲǤ–Ǥʹͺͻ͸ǡʹͻ͵ͲǦ͵ͳǤͶͳ ͳ͵ͲǤ  ʹͲͳ͵Ȑ ˆ‘‘–‘–‡ǡ ‹•„—”‰ †‡ˆ‡†‡† –Š‡ ‘‹••‹‘ǡ ‡š’Žƒ‹‹‰ǡ DzŠ‡ ‡š‹• ‘ˆƒˆ‹†— ‹ƒ”›”‡Žƒ–‹‘•Š‹’ǡ—†‡”ƒ›†‡ˆ‹‹–‹‘‘ˆ–Šƒ––‡”ǡ ƒŽŽ›„‡›‘††‹•’—–‡dz‹„”‹„‡ƒ†‹ „ƒ  ƒ•‡•Ǥ ͳͶǦ  ͳ͵ʹǤ  –‹‘ƒ”‰—‡†–Šƒ–Ž‘‘‘™‡†ƒˆ‹†— ‹ƒ”›†—–›–‘–Š‡ ‹–›‹Š‹• ƒ•ƒŽ†‡”ƒǡƒ†™ƒ•–Š—•’”‘Š‹„‹–‡†ˆ”‘‰‹˜‹‰Ž‡‰ƒŽƒ†˜‹ ‡– ‘—Ž†”‡†— ‡–Š‡ ‹–›ǯ•–ƒš”‡˜‡—‡•Ǥ ‡‡†–‘ ‘•‹†‡”–Š‡‹••—‡Ǥ ƒ–ƒ–ƒš• ƒ˜‡‰‡”•ƒŽ‡ǡ‹ ‘–”ƒ˜‡–‹‘‘ˆ•–ƒ–‡Žƒ™Ǥ  ͳ͵͵Ǥ   ͳ͵ͶǤ  33531-ckt_88-2 Sheet No. 170 Side A 05/13/2013 14:40:30 A 05/13/2013 170 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 170 Side B 05/13/2013 14:40:30   – –   –Š –Š‡ Š‡  ǡ ‘–ŠǦ ͻǣ͵ͺ  McNally ‘•‡–‘ — ‹ƒ”› ‡”‡Ž› †ƒ––‘ Welch Š‹•”‡Ǧ ‹•Œ—•–ƒ• ‘ˆ•–ƒ–‡Ǧ   Ǥ ǡŠ‘Ž†‹‰‹ ͳ͵ͻ ‹–‡†–ƒ–‡•˜Ǥ›Ǧ Welch –‡†‰ƒ‹•‹’Ž›‹•‘‡ –•Š‘Ž†‹‰‡š ‡’––Šƒ–‹– Bloom Š‡„‡‡ˆ‹ ‹ƒ”‹‡•‘ˆ ‡ ”‹‰Š–• ‡š’”‡••‡† ‹ •‹‘”†‡”–‘•‡ —”‡–Š‡‹”˜‘–‡•Ǥ –Š‡‹”„”‹„‡•ǡ–Š‡‹”ƒ –‹‘• ‘—Ž† ͳ͵͹ ƒ––Š‡›ƒ†‡’ƒ›‡–•ƒ†‰ƒ˜‡ Ž›ǡ–Š‡‡˜‡–Š‹” —‹–ǯ•„”‘ƒ†‡” —•‘‡–ƒ”›„‘‘Ǥ ”•‘ˆƒ ‘‹––‡‡™Š‘„‹†–‘Š‘Ž†  ȏ‘Žͺͺǣʹ ™‘”‡†ǡƒŽ–ƒ‡‹–›‹ŽŽ‡‰‹–‹ƒ–‡Ž› ‘•–‹–—–‡•ƒ‹–ƒ‰‹„Ž‡”‹‰Š–•ˆ”ƒ—†  ‹Ž‹œ‹‰’”‹˜ƒ–‡‰ƒ‹–‘†”ƒ™ ȐǢ‹–‡†–ƒ–‡•˜Ǥƒƒ”‡ŽŽƒǡʹ͹͹ Ǥ͵† •ƒˆ”ƒ—†dzƒ†–Š‡ˆƒ ––Šƒ––Š‡ ‘—”– I  Š‡ ‘—”–‘’‹‡†–Šƒ––Š‡ ͳ͵ͷ REVIEW ͳ͵ͺ  ƒ–͸ͷͷȋ“—‘–‹‰ ƒŽŽ›˜Ǥ‹–‡†–ƒ–‡•ǡͶͺ͵  Rybicki Id. LAW   –‡•”—‘ˆ–Š‡‹ŽŽ˜‹‘Žƒ–‹‘• ͳͶͲ KENT Ǧ ‘—Ž† Šƒ˜‡ ƒ’’Ž‹‡† ‘ –Š‡ ˆƒ –• ‘ˆ  Sorich CHICAGO ǡ –Š‡ ‘—”– —’Š‡Ž† –Š‡ ‘˜‹ –‹‘• ‘ˆ ˆ‘—” †‡Ǧ  Š‡ ‘—”– ”‹–‹ ‹œ‡† –Š‡ ‡˜‡–Š ‹” —‹– ƒ’Ǧ ǡ–Šƒ–„›Dz’”‹˜ƒ–‡‰ƒ‹ǡdz‹–•‹’Ž›‡ƒ–Dz‹ŽŽ‡‰‹–‹Ǧ Ȍ ͷȀ͹ȀʹͲͳ͵ ͳͶʹ  Sorich  ‘”‡šƒ’Ž‡ǡ‹•–‡ƒ†‘ˆ—–  Sorich   ͳͶͳ    v.   ȋ ͳ͵͸ ǡ͵ʹ͹ Ǥ͵†ƒ–ͳͳͲ͸ȋDzȏȐ”‘‘ˆ‘ˆ’‘–‡–‹ƒŽǡƒ –—ƒŽǡ‘” ‘–‡’Žƒ ‹–‡†–ƒ–‡•˜Ǥ‡Ž Šǡ͵ʹ͹ Ǥ͵†ͳͲͺͳǡͳͳͲ͸ȋͳͲ–Š‹”ǤʹͲͲ͵ȌǢ  Š‡ ‘—”–†‹†‘–•‡‡–‘ƒ”–‹ —Žƒ–‡ƒ›’”‹ ‹’Ž‡Œ—•–‹ˆ›‹‰‹ ƒ–͹ͲͷǤ ƒ–͹ͲͺǤ ƒ–͹ͲͻǤ    Ǥ   ƒ–͹ͳͲǤ States  Id. Id. Id. Id. Welch Id. See Ǧ  Š‡‡˜‡–Š‹” —‹–Žƒ–‡”“—ƒŽ‹ˆ‹‡†‹–•’‘•‹–‹‘‹ –Š‡” ‹” —‹–• Šƒ˜‡ ”‡Œ‡ –‡† ƒ ’”‹˜ƒ–‡ ‰ƒ‹ Ž‹‹–ƒ–‹‘ –‘ Š‘‡•  ƒ–ͳͲͺͶǦͺͷǤŠ‹Ž‡–Š‡†‡ˆ‡†ƒ–•†‹†‘–’‡”•‘ƒŽŽ›‰ƒ‹ˆ”‘ ǤǤ͵ͷͲǡ͵ͷͷȋͳͻͺ͹ȌȌǤ  ͳ͵͸Ǥ ͷʹ͵ Ǥ͵†͹Ͳʹǡ͹Ͳͻȋ͹–Š‹”ǤʹͲͲͺȌǤ ͳ͵͹Ǥ  ƒ–‡ ‰ƒ‹Ǥdz United –Šƒ–Dz‹•—•‡‘ˆȏƒ’—„Ž‹ ‘ˆˆ‹ ‹ƒŽǯ•Ȑ‘ˆˆ‹ ‡ˆ‘”’”‹˜ƒ–‡‰ƒ‹‹ ‘—Ž†‘–ˆ‹†ƒ ƒ•‡Š‘Ž†‹‰–Šƒ–ƒ„”‡ƒ Š‘ˆˆ‹†— ‹ƒ”›†—–› ™‹–Š‘—–‹•—•‡‘ˆ‘‡ǯ•’‘•‹–‹‘ˆ‘”’”‹˜ƒ–‡‰ƒ‹Ǥ  ͳ͵ͺǤ  •‡”˜‹ ‡•ˆ”ƒ—†Ǥ ’”‘ƒ Š ƒ• —†‡”Ǧ‹ Ž—•‹˜‡ „‡ ƒ—•‡‹˜‘Ž˜‹‰•‹‰‹ˆ‹ ƒ–ˆ‘”‡•‡‡ƒ„Ž‡Šƒ”–‘–Š‡˜‹ –‹‘”‘–Š‡”• ‹– ‡š Ž—†‡• ˆ”ƒ—†—Ž‡– ‘†— ˆ‹‡‡–‹• ‘•‹•–‡–™‹–Š–Š‡’”‹˜ƒ–‡‰ƒ‹”‡“—‹”‡‡–ǯ•’—”’ ’”‡˜‡––Š‡ ‘˜‹ –‹‘‘ˆ‹†‹˜‹†—ƒŽ•™Š‘‡”‡Ž›„”‡ƒ Š‡†ƒˆ‹† †—–›™‹–Š‘—–ƒ›’‡”•‘ƒŽ‰ƒ‹Ǥ ˆ‡†ƒ–• ™Š‘ ™‡”‡ ‡› ’Žƒ›‡”• ‹ ƒ • Š‡‡ –‘ ƒ™ƒ”† ‹–› Œ‘„• –‘ ‡„‡”•‘ˆ–Š‡ƒ›‘”ǯ•’‘Ž‹–‹ ƒŽ‘”‰ƒ‹œƒ–‹‘Ǥ •’‘‹Ž•‘ˆƒˆ”ƒ—†—Ž‡–• Š‡‡‡‡†‘–‰‘†‹”‡ –Ž›–‘–Š‡†‡ˆ‡ ‘•–‹–—–‡ƒ„”‡ƒ Š‘ˆƒˆ‹†— ‹ƒ”›†—–›Ǣ”ƒ–Š‡”ǡ–Š‡†‡ˆ‡†ƒ– —Ž’ƒ„Ž‡‹ˆ–Š‡’”‘ ‡‡†•ƒ”‡†‹”‡ –‡†–‘™ƒ”†ƒ–Š‹”†’ƒ”–›Ǥ –Š‡ ˆ”ƒ—†—Ž‡– • Š‡‡ ™‡”‡ ‘– –Š‡ †‡ˆ‡†ƒ–• ƒ’ƒ‹‰ –Š‡•‡Ž˜‡•ǡ ™‘”‡”• „—– ™Š‘ – ”‡ ‡‹˜‡† Œ‘„•Ǥ   ͳ͵ͷǤ  ͸ͳͲ ˜ƒ–‡‰ƒ‹‹•–Š‡Ž‹‡–Šƒ–•‡’ƒ”ƒ Žƒ™ˆ‹†— ‹ƒ”›†—–›ǤǤǤˆ”‘ˆ‡†‡”ƒŽ ”‹‡Ǥdz ͳͶǦ ™ƒ• ‘•‹•–‡– ™‹–Š –Š‡ —’”‡‡ ‘—”–ǯ• ‘ ‡’–‹‘ ‘ˆ ‹–ƒ‰‹„Ž  ͳ͵ͻǤ  ƒ †‹•–‹ –‹‘ „‡–™‡‡ ‹‘ ‡– ƒ† „Žƒ‡™‘”–Š› ‘†— –ǡ –Š‡‹” —‹– Šƒ”ƒ –‡”‹œ‡†’”‹˜ƒ–‡ ‡ ‰ƒ‹ ƒ•‡”‡Ž›‘‡‡–Š‘†ǡƒ‘‰ ‡”•ǡ –‘ ’”‘˜‡ ˆ”ƒ—†Ǥ Šƒ˜‡‡––Š‡„”‘ƒ†‡”‹ŽŽ‡‰‹–‹ƒ–‡‰ƒ‹•–ƒ†ƒ”†Ǥ ˆ–Š‡„”‹„‡• ”‡ ‡‹˜‡†–Š‡’”‹˜‹Ž‡‰‡‘ˆŠ‘•–‹‰–Š‡Ž›’‹  ƒ‡•ǡƒ–”‡‡†‘ Dz‹ŽŽ‡‰‹–‹ƒ–‡ ‰ƒ‹dz ”‡ˆ‹‡‡– ‹ ͸͹ͺǡ͸ͻʹǦͻ͵ȋ͵†‹”ǤʹͲͲʹȌǤ  ͳͶʹǤ‡ƒ•‘ˆ‡•–ƒ„Ž‹•Š‹‰–Š‡‡ ‡••ƒ”›‹–‡––‘†‡ˆ”ƒ—†ǤdzȌǤ‘–ƒ„  ‘–Š‡”–Š‹‰•‘ˆ˜ƒŽ—‡–‘ –‡”ƒ–‹‘ƒŽŽ›’‹ ‘‹––‡‡‡„‡” Id. –Š‡Ž›’‹ ‹–‡” ƒ‡•‹ƒŽ–ƒ‡‹–›„ƒ•‡†‘‡˜‹†‡ ‡–Š  ͳͶͲǤ  „‹ ‹ǡʹͺ͹ Ǥ͵†ʹͷ͹ǡʹ͸ͷȋʹ†‹”ǤʹͲͲʹȌȏŠ‡”‡‹ƒˆ–‡” ‡–Š‹” —‹–—’Š‡Ž† Šƒ”‰‡•‘ˆ„”‹„‡”›ƒ†ˆ”ƒ—†ƒ‰ƒ‹•–Ž‡ƒ†‡  ͳͶͳǤ  33531-ckt_88-2 Sheet No. 170 Side B 05/13/2013 14:40:30 B 05/13/2013 170 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 171 Side A 05/13/2013 14:40:30    ‹”Ǧ ͳͶ͹ „Ž‡ —‹– •ƒ –ƒ”› „ƒ  ͻǣ͵ͺ  ‡•†‘ ‘‡•– ‡”•‘” ‡‘Ǧ ˆ ƒ—•Ǧ ‘ˆˆ‹ ‹ƒŽ  ‘ˆŽ‹ – –‡––‘ ‘ˆ†‡–”‹Ǧ ‹–ƒ‹‡†ǡ  ‹‹ƒŽ‹œ‡ ƒ‡‘—– Ͷǡ͵Ͳ͹ȋ͹–Š‹”Ǥ †‡ˆ‡†ƒ–ǯ• ͳͶ͸ Ǥ  ‹ƒŽŽ›ǡ –Š‡ ͳͶͷ  ͸ͳͳ FRAUD  ‹ƒŽŽ›ǡ‹–‡’Šƒ•‹œ‡†–Šƒ–   ƒŽŽ›˜Ǥ‹–‡†–ƒ–‡•ǡͶͺ͵ǤǤ͵ͷͲ ǡ‡šƒ‹‡†Š‘™–Š‹•Ž‹‹–‹‰  ͳͶͻ II of   light SERVICES   Š‘‡•–•‡”˜‹ ‡•ˆ”ƒ—† ƒ•‡Žƒ™Ǥ    ƒ††‹–‹‘ǡ –Š‡ ’”‹˜ƒ–‡ ‰ƒ‹ ”‡Ǧ in  Rybicki Š‡Š‹”†‹” —‹–ˆ—”–Š‡”ˆ‘—†–Šƒ– ͳͶ͵ HONEST ͳͶͶ ǡ͵ʹ͹ Ǥ͵†ƒ–ͳͳͲ͸Ǥ  Š‡ ‘—”–ˆ—”–Š‡”•—‰‰‡•–‡†–Šƒ––Š‡†‡–Ǧ McNally ͳͶͺ Welch consideration  ʹǤ Š‡ ƒ”‡“—‹”‡‡– for  Ȍ ͷȀ͹ȀʹͲͳ͵ REDEFINING  ”ƒ†‹–‹‘ƒŽˆ”ƒ—†‹˜‘Ž˜‡•„‘–Š‰ƒ‹–‘–Š‡†‡ˆ”ƒ—†‡”   remanded ͳͷͳ   ƒ”– ǤǤ ǡʹ͹͹ Ǥ͵†ƒ–͸ͻͷȋ“—‘–‹‰‹–‡†–ƒ–‡•˜Ǥ ‘Žœ‡”ǡͺͳ͸ Ǥʹ†͵Ͳ ǡʹ͹͹ Ǥ͵†ƒ–͸ͻʹǤ   ǡʹͺ͹ Ǥ͵†ƒ–ʹ͸ʹǢ  I ȋ  and  ͳͷͲ supra  ƒ–ͳͳͲ͹Ǥ ƒ–ͳͶͳǤ  Ǥ      Id. Panarella Panarella Rybicki Id. Id. Id. See Ǧ vacated ƒ†‘’–‹‰–Š‡Dz†‡–”‹‡––‘˜‹ –‹dz”‡“—‹”‡‡–ǡ–Š‡‡ ‘† •‡ ‘†Ž‹‹–‹‰’”‹ ‹’Ž‡ƒ†‘’–‡†„›•‘‡ ‹” —‹–•ǡ—•—ƒŽŽ›ƒ  —‹–‡’Šƒ•‹œ‡†–Š‡†‹•–‹ –‹‘„‡–™‡‡–”ƒ†‹–‹‘ƒŽˆ”ƒ—†ƒ†Š •‡”˜‹ ‡•ˆ”ƒ—†Ǥ ‘—”–•–Šƒ–”‡Œ‡ –ƒ’”‹˜ƒ–‡‰ƒ‹”‡“—‹”‡‡–•–”‡••–Šƒ––Š‡‹ †‡ˆ”ƒ—† †‡’‡†• ‘ –Š‡ ‹–‡– –‘”‹‰Š–‘ˆŠ‘‡•–•‡”˜‹ ‡•ǡ‘––Š‡‹–‡––‘‡ˆˆ‡ –’”‹˜ƒ–‡‰ƒ‹ †‡’”‹˜‡ ƒ‘–Š‡” ‘ˆ –Š‡ ‹–ƒ‰‹ ”‹‡–•Š‘—Ž†„‡‡ ‘‘‹ ‘”’‡ —‹ƒ”›Ǥ –Š‡’”‹˜ƒ–‡‰ƒ‹ƒ’’”‘ƒ Š‹•‘˜‡”Ǧ‹ Ž—•‹˜‡„‡ ƒ—•‡‹– ‘—Ž† ” ‘†— –„‡›‘†–Š‡ ‘–‡’Žƒ–‹‘‘ˆ–Š‡•–ƒ–—–‡ǡŽ‹‡ƒ’—„Ž‹  –ƒ‹‰ Š‘‡ ’‡ ‹Ž• ˆ”‘ –Š‡ ‘ˆˆ‹ ‡ •—’’Ž› ƒ„‹‡–Ǥ  ͳͶ͵Ǥ   ʹͲͳ͵Ȑ „‡ ƒ—•‡ ’”‹˜ƒ–‡ ‰ƒ‹ ‹• ƒ„•‡–Ǥ ͳͶǦ –Š‡†‡–”‹‡–”‡“—‹”‡‡–†‘‡•‘–ƒ’’Ž›‹–Š‡„”‹„‡”›‘”‹  ‘–‡š–„‡ ƒ—•‡—†‹• Ž‘•‡†„”‹„‡”›‹‹–•‡Žˆ‹••—ˆˆ‹ ‹‡––‘ –Š‡ ”‹‡Ǥ Š‡ ‘—”– ‘ Ž—†‡†ǡ‹†‹ –—ǡ–Šƒ–„‡ ƒ—•‡–Š‡‡š‹•–‡ ‡‘ˆƒ ‘ˆ‹–‡”‡•–ƒŽ‘‡‹•‘–•—ˆˆ‹ ‹‡––‘ ‘•–‹–—–‡ƒ ”‹‡ǡ–Š‡ „‡Šƒ˜‹‘”‹–Š‡•‡ŽˆǦ†‡ƒŽ‹‰ ‘–‡š–—•– ƒ—•‡‘”„‡ ƒ’ƒ„Ž‡‘ ‹‰•‘‡Šƒ”–‘ƒ˜‹ –‹Ǥ ‘‘Žƒ™•‡•‡‘ˆ†‡ ‡‹–Ǥdz “—‹”‡‡–‡š Ž—†‡•„”‡ƒ Š‡•‘ˆ†—–›–Šƒ–‘Ž›‹˜‘Ž˜‡†‡Ž‹„‡”ƒ– †‹• Ž‘•—”‡ ‘ˆ ƒ ‘ˆŽ‹ – ‘ˆƒ••‡”–‡† ™ƒ• ‹–‡”‡•–Ȅ ‘†— – ‹ Ž—†‡† –Šƒ– ‹ –Š‡ –Š‡ Š‹”† †‡ˆ‹‹–‹‘ ‹” ‘ˆ ˆ”ƒ—† Dz‹ ‹–• ‡Ž‡‡ ƒ††‡–”‹‡––‘–Š‡˜‹ –‹Ǥ ‘™‡˜‡”ǡŠ‘‡•–•‡”˜‹ ‡•ˆ”ƒ—† ƒ• ‘–‡ ‡••ƒ”‹Ž›‹˜‘Ž˜‡„‘–ŠǤ •–‡ƒ†ǡƒ•–Š‡‡ ‘†‹” —‹–ƒ  ͳͶͶǤ  ͳͻͺ͹Ȍǡ ’”‹ ‹’Ž‡‘”‹‰‹ƒ–‡†‹’”‡Ǧ ȋͳͻͺ͹ȌȌǤ  ͳͶͷǤ  ƒŽ–‡”ƒ–‹˜‡–‘–Š‡’”‹˜ƒ–‡‰ƒ‹Ž‹‹–ƒ–‹‘ǡ‹•–Š‡”‡“—‹”‡‡– ‡–‘”Šƒ”–‘ƒ˜‹ –‹‘ˆ–Š‡ˆ”ƒ—†ǡŽ‹‡ ‘”’‘”ƒ–‡•Šƒ”‡Š‘Ž† –Š‡’—„Ž‹ ǤŠ‡‡ ‘†‹” —‹–ǡ‹  ͳͶ͸Ǥ   ͳͶ͹Ǥ ͵ͷͶ Ǥ͵†ͳʹͶǡͳ͵ͺǦͶͳȋʹ†‹”ǤʹͲͲ͵ȌǤ ͳͶͺǤ   ͳͶͻǤ   ͳͷͲǤ   ͳͷͳǤ  33531-ckt_88-2 Sheet No. 171 Side A 05/13/2013 14:40:30 A 05/13/2013 171 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 171 Side B 05/13/2013 14:40:30 ƒ›   ‹”‡Ǧ ‡ ‡ ͻǣ͵ͺ „”‹„Ǧ • †‡Ǧ  — Š ”‘–ŠǦ –Š‡‹Ǧ ƒ”–‘ ˆ”ƒ—†‡” —‹ƒ”› ‡ ‘† Ǧƒ‹‰ ͳͷ͵ ǡ‹–‹•‘– ‡Žˆ‘”ǡƒ• ‡—Ž‡•• „”‹„‡•ƒ† ‹ƒŽ‘–‹˜ƒǦ ‡‘ˆŠ‘‡•– ‘•‡ƒ ‘ˆŽ‹ –‘ˆ  ‘”‹•–ƒ ‡ǡ–Š‡ ‘™Ž‡†‰‹‰Dz–Šƒ–™Š‡”‡ ͳͷͻ ǡ ˆ”ƒ—†—Ž‡– ‹–‡– ƒ› „‡ ‹Ǧ ǤʹͲͲ͵ȌȋDzŠ‡‘–‹‘‘ˆŠƒ”‹  –Šƒ– ’”‘‘ˆ ‘ˆ ‘–‡’Žƒ–‡† ‘”  ȏ‘Žͺͺǣʹ ”‹„‡•ƒ†‹ „ƒ • ƒ ‰–Š‡‡ ‡••ƒ”›‹–‡––‘†‡ˆ”ƒ—†ǤdzȌǢ –Šƒ–™Š‡ƒ‹–‡†‡†˜‹ Ǧ ͳͷʹ  Š‡•‡ ƒ•‡• –›’‹ ƒŽŽ› ‹˜‘Ž˜‡ REVIEW  ͳͷͷ Sawyer LAW   „—•‹‡••™‹–Šƒ ‘”’‘”ƒ–‹‘‘ v. Š‹ Š–Š‡‘ˆˆ‹ ‹ƒŽŠƒ•†‡ ‹•‹‘ ’‹ ƒŽ•‡ŽˆǦ†‡ƒŽ‹‰ ƒ•‡ǡ–Š‡†‡  KENT Ǧ  States  ͳͷ͹ CHICAGO ͻͶ͸ Ǥʹ†͹͵Ͷǡ͹͵͹ȋͳͲ–Š‹”ǤͳͻͻͳȌȋ‘–‹‰–Šƒ–’”‘‘ˆ‘ˆŽ‘••   Ȍ ͷȀ͹ȀʹͲͳ͵ ͳͷͶ United Š‹Ž‡–Š‡‹–‡––‘ ƒ—•‡‡ ‘‘‹ Šƒ”‘”‹Œ—”›   ͳͷͺ    ǡ͵ͷͶ Ǥ͵†ƒ–ͳ͵ͻǤ II ǡ‹–‡†–ƒ–‡•˜Ǥƒ™›‡”ǡͺͷ Ǥ͵†͹ͳ͵ǡ͹ʹͶȋͳ•–‹”Ǥͳͻͻ͸ȌǤ ȋ  ǡ͵ʹ͹ Ǥ͵†ƒ–ͳͳͲͷǤ Š‡ƒ‘ˆˆ‹ ‹ƒŽƒ ‡’–•ƒ„”‹„‡‘”ˆƒ‹Ž•–‘†‹• Ž‘•‡ƒ’‡”Ǧ e.g.  ƒ–ͳͶͲǤ ƒ–ͳͶͳǤ  Ǥ     ͳͷ͸  Rybicki Id. Id. See, Id. Id. Welch Ǧ ‹–‡†–ƒ–‡•˜Ǥ‘ Š”ƒǡͳͲͻ Ǥ͵†͸͸Ͳǡ͸͸ͷȋͳͲ–Š‹”Ǥͳͻͻ͹Ȍȋƒ  Ž–Š‘—‰Š –Š‡ ‡ ‘† ‹” —‹– Ž‹‹–• ‹–• ƒƒŽ›•‹• –‘ –Š‡ ’”‹˜ƒ–‡ ‘‡ ‘—”–•Šƒ˜‡‘–ƒ –—ƒŽŽ›‹’‘•‡†ƒ†‡–”‹‡–Ǧ–‘Ǧ˜‹ –‹”‡Ǧ  also  ’‘™‡”ǡ –Š‡ Šƒ” ‹• ‘– —•—ƒŽŽ› ’‡ —‹ƒ”›Ǥ’”‹˜‡†‘ˆ‹–•”‹‰Š–‡‹–Š‡”–‘†‹•‹–‡”‡•–‡††‡ ‹•‹‘ƒ‹‰‹–• ƒ–Š‡”ǡ Dz–Š‡ ’—„Ž‹  ‹ –Š‡ ƒ•‡ƒ›„‡ǡ–‘ˆ—ŽŽ†‹• Ž‘•—”‡ƒ•–‘–Š‡‘ˆˆ‹ ‹ƒŽǯ•’‘–‡– –‹‘„‡Š‹†ƒ‘ˆˆ‹ ‹ƒŽƒ –Ǥdz •‘ƒŽ‹–‡”‡•–‹ƒƒ––‡”‘˜‡”™   ͳͷʹǤ  ͸ͳʹ –Š‡›–‡†–‘ˆƒŽŽ‹–‘–™‘‰‡‡”ƒŽ ƒ–‡‰‘”‹‡•ǣ ƒ•‡•‹˜‘Ž˜‹‰ ‹ „ƒ •ƒ† ƒ•‡•‹˜‘Ž˜‹‰•‡ŽˆǦ†‡ƒŽ‹‰Ǥ ͳͶǦ  ͳͷ͵Ǥ  ‡”‡Ž›‹†— ‡•Š‹•‡’Ž‘›‡”–‘†‘ ‰ƒ‹ˆ”‘Š‹•‹• ‘†— –ǡ‡˜‡–Š‘—‰Š–Š‡˜‹ –‹ƒ›‘–‡š’‡”‹ Šƒ”Ǥ–Š‡‘–Š‡”Šƒ†ǡ‹ƒ–› „‡ Žƒ••‹ˆ‹‡†ƒ•ˆ”ƒ—†™Š‡”‡–Š‡†‡ˆ”ƒ—†‡””‡ ‡‹˜‡•ƒ†‹”‡ –’‡ •‡ŽˆǦ†‡ƒŽ‹‰ƒ›‘Ž› ƒ—•‡‹†‹”‡ –‰ƒ‹–‘–Š‡†‡ˆ”ƒ—†‡”ǤŠ‡ ‹” —‹–ˆ‘—†–Šƒ–•— Š ƒ•‡•†‘‘–”‹•‡–‘–Š‡Ž‡˜‡Ž‘ˆƒ ”‹ –Š‡ ‘ˆŽ‹ –‘ˆ‹–‡”‡•–‹•ƒ ‘’ƒ‹‡†„›ƒ –—ƒŽ‘”’”‘„ƒ„Ž‡Š–Š‡˜‹ –‹‡’Ž‘›‡”Ǥ ‹”•–‹” —‹–Š‡Ž†‹ ‡”‡–‹–›‹ ™Š‹ Š–Š‡†‡ˆ”ƒ—†‡”Šƒ•ƒ—†‹• Ž‘•‡†‹–‡”‡•–Ǥ „”‹„‡”›‘ˆƒ’—„Ž‹ ‘ˆˆ‹ ‹ƒŽ‘”–Š‡‘ˆˆ‹ ‹ƒŽǯ•ˆƒ‹Ž—”‡–‘†‹• Ž ‹–‡”‡•–Ǥ –‹†‘‡•‘–‡š’‡”‹‡ ‡Šƒ”ǡ•‘‡–Š‹‰‘”‡‹•‡‡†‡†ǡŽ‹‡ƒ ‡”›ǦŽ‹‡ǡ ‘””—’–‹–‡––‘‹ˆŽ—‡ ‡‘ˆˆ‹ ‹ƒŽƒ –‹‘‘”†‡’”‹˜ ƒ ‘•–‹–—–‡ ‹” —•–ƒ–‹ƒŽ‡˜‹†‡ ‡‘ˆ–Š‡‹–‡––‘†‡ˆ”ƒ—† ‡ ‡••ƒ”›–‘‡•–ƒ„Ž‹•Š‹‰–Šƒ–‡Ž‡‡–‘ˆ–Š‡ ”‹‡Ǥ •’Š‡”‡ǡ ‘—”–• Šƒ˜‡ ƒ’’Ž‹‡† ƒ ‘†‹ˆ‹‡†‡– †‡–”‹‡–Ǧ–‘Ǧ˜‹ –‹ ‹ ”‡“— ’—„Ž‹  •‡ –‘” ƒ•‡• ƒ• ™‡ŽŽǤ “—‹”‡‡–ǡ„—–•‹’Ž›”‡ ‘‰‹œ‡†‹–ƒ•‘‡™ƒ›‘ˆ‡•–ƒ„Ž‹•Š‹‰ –‡––‘†‡ˆ”ƒ—†Ǥ  ͳͷͶǤ   ͳͷͷǤ   ͳͷ͸Ǥ  ƒ –—ƒŽ Šƒ” ‡š‹•–• ƒ• ƒ ƒ–—”ƒŽ ƒ† ’”‘„ƒ„Ž‡ ”‡•—Ž– ‘ˆ ƒ • Š‡‡  ͳͷ͹Ǥ  see ˆ‡””‡†dzȌǢ‹–‡†–ƒ–‡•˜Ǥ‘™‡ǡ „‡ƒ”‘–Š‡“—‡•–‹‘‘ˆ‹–‡––‘†‡ˆ”ƒ—†ȌǤ  ͳͷͻǤ   ͳͷͺǤƒ ƒ‹Ž ‘” ‹–‡†–ƒ–‡•˜Ǥ‡Ž Šǡ͵ʹ͹ Ǥ͵†ͳͲͺͳǡͳͳͲͶǦͲͷȋͳͲ–Š‹” ™‹”‡ ˆ”ƒ—† ’”‘•‡ —–‹‘ ‹• ‹’‘”–ƒ–ƒ –—ƒŽŠƒ”–‘–Š‡˜‹ –‹‘”‘–Š‡”•‹•‘‡‡ƒ•‘ˆ‡•–ƒ„Ž‹•Š‹ ‘Ž› ‹ –Š‡ •‡•‡ 33531-ckt_88-2 Sheet No. 171 Side B 05/13/2013 14:40:30 B 05/13/2013 171 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 172 Side A 05/13/2013 14:40:30  Ǧ    –‘ ‘ˆ ”‡Ǧ ‡‡ ‘Ž› Ǧ ǡ–Š‡ ͻǣ͵ͺ ‰‡†  ƒ Š‡†Ǥ ˆ”ƒ—†Ǥ ‹‰‘ˆ Ž‡‰‹•ŽƒǦ ‰‘ˆ—”Ǧ †‡’”‹˜‡ ’”‡ ‹•‡ ‰’”‹Ǧ Ž‹ ‘ˆˆ‹ ‹ƒŽ –Š‡’—„Ž‹  McNally     ͸ͳ͵  Š‡ ‘—”– ˆ‘—† –Šƒ–  ǡ–Š‡‰‘˜‡”‡–—•–’”‘†— ‡ ͳ͸ͳ  ͳ͸ʹ FRAUD     ƒ•‡Žƒ™‘”„›ƒ””‘™Ž›†‡ˆ‹‹‰  SERVICES  Š‘–ƒ Ž‡†–Š‡–ƒ•Š‡ƒ†Ǧ‘ǡ‹ ›Ž‹‹–‹‰Țͳ͵Ͷ͸–‘–Š‹•ˆ—†ƒ‡Ǧ    ͳ͸͵ HONEST  McNally   ‹–‡†–ƒ–‡•˜Ǥƒ‘”‡ƒ—šǡͶʹʹ Ǥ͵†͹ͷͲǡ͹ͷͶȋͺ–Š‹”ǤʹͲͲͷȌ  ƒŽ‘„„›‹•–ǯ•‹–‡––‘˜‹‘Žƒ–‡•–ƒ–‡ǦŽƒ™‰‹ˆ–ƒ†

 ǡ Ȍ ͷȀ͹ȀʹͲͳ͵ also  REDEFINING  see   ‘—”–†‡ Ž‹‡†–‘‡„ƒ”‘ƒƒƒŽ›•‹•‘ˆŠ‘™•‘‡  Sawyer Ǥ    ȋ   Skilling ƒ–͹ʹͷǤ ƒ–ʹͻ͵͵Ǥ  ͳ͸Ͳ Ǥ     Id. Id. Ǧ Š‡—’”‡‡‘—”–ǡ‹‡š Ž—†‹‰ˆ”‘–Š‡•–ƒ–—–‡ˆ”ƒ—†—Ž‡– ‘ Š‡ ͳ͸Ͷ  –ƒŽ ƒ–‡‰‘”›‘ˆ ƒ•‡•ǡ–Š‡‘—”–ƒ˜‘‹†‡†–Š‡‡‡†–‘†‡ˆ‹‡–Š‡ ‘—–‡”†‹‡•‹‘•‘ˆ–Š‡•–ƒ–—–‡ǯ•”‡ƒ ŠǤ •–‡ƒ†ǡ‡ Š‘‹‰ ‘—”–‹˜‹–‡†‘‰”‡••–‘Dz•’‡ƒ‘”‡ Ž‡ƒ”Ž›dz‹ˆ‹–‹–‡†•–‘ –Š‡”Ǥ –Š‡ ‹” —•–ƒ ‡•—†‡”™Š‹ Šƒˆ‹†— ‹ƒ”›†—–›ƒ”‹•‡•‘”‹•„”‡ ‘’–‹‰–‘”‡ ‘‰‹œ‡‘Ž›™Šƒ–‹–†‡‡‡†–‘„‡–Š‡Dz ‘”‡dz‡ƒ –Š‡ Š‘‡•– •‡”˜‹ ‡• •–ƒ–—–‡ǡ –Š‡ ‘—”–„”‹„‡”›ƒ†‹ „ƒ • Š‡‡•Ǥ Š‡Ž† –Šƒ– Ț ͳ͵Ͷ͸ ‘˜‡”• ‘—”–•Ž‹‹–‡†–Š‡ƒ’’Ž‹ ƒ–‹‘‘ˆȚͳ͵Ͷ͸„›ƒ†‘’–‹‰–Š‡Ž‹‹–‹ ‹’Ž‡•ˆ‘—†‹’”‡Ǧƒ†’‘•–Ǧ ‰”ƒ–—‹–›•–ƒ–—–‡•„›’—” Šƒ•‹‰†‹‡”•ƒ†”‘—†•‘ˆ‰‘Žˆˆ‘” –‘”•†‹†‘–ƒ—–‘ƒ–‹ ƒŽŽ›‡•–ƒ„Ž‹•Š–Š‡‹–‡––‘‹†— ‡ƒ’—„ –‘ †‡’”‹˜‡ –Š‡ ’—„Ž‹  ‘ˆ Š‹• Š‘‡•– •‡”˜‹ ‡•Ǥ ‘ˆŠ‘‡•–•‡”˜‹ ‡•ǡ–Š‡‹†‡’‡†‡–‡˜‹†‡ ‡‘ˆ–Š‡‹–‡––‘ ƒ‘–Š‡”‘ˆ–Š‘•‡•‡”˜‹ ‡•—•–„‡’”‡•‡–‡†Ǥdz Dzȏ‹Ȑˆ–Š‡Ǯ• Š‡‡ǯ†‘‡•‘–ǡƒ•‹–•‡ ‡••ƒ”›‘—– ‘‡ǡ†‡’”‹˜‡   ͳ͸ͲǤ ͺͷ Ǥ͵†ƒ–͹͵ͲǢ ʹͲͳ͵Ȑ •‡”˜‹ ‡•Ǥ ͳͶǦ ȋŠ‘Ž†‹‰–Šƒ–‹ƒ„—•‹‡•• ‘–‡š–ǡƒ„•‡–’”‘‘ˆ‘ˆƒ –—ƒŽŠƒ”  ͳ͸ͳǤ ͺͷ Ǥ͵†ƒ–͹ʹͻǤ ͳ͸ʹǤ  ‡˜‹†‡ ‡–‘•Š‘™ˆ”ƒ—†—Ž‡–‹–‡–ȌǤ ‘ˆ‹‹‰Țͳ͵Ͷ͸–‘‘Ž›„”‹„‡”›ƒ†‹ „ƒ • Š‡‡•ǡ–Š‡—’” ‘—”–†‡ Ž‹‡†–‘‡š’Ž‘”‡–Š‡‘—–‡” ‘–‘—”•‘ˆŠ‘‡•–•‡”˜‹ ‡• †‡‡†ǡ ‘‡–ƒ–‘”• Šƒ˜‡ ’‘‹–‡† ‘—– –Šƒ– „”‹„‡”› ƒ† ‹ „ƒ  †— ––Šƒ– ‘—”–•Šƒ†’”‡˜‹‘—•Ž›ƒ••—‡†™ƒ• ‘˜‡”‡†ǡŠƒ• ŠƒŽŽ‡ ‘‰”‡•• –‘ ”‡†”ƒ™ –Š‡ Ž‹‡ ‘ ‡ ƒ‰ƒ‹ ƒ†™Šƒ– ƒ•™‡” ‡š–‡– –Š‡ “—‡•–‹‘ǣ •Š‘—Ž† —‡–Š‹ ƒŽ ‘†— – „‡†‡ˆ‹‹‰ ”‹‹ƒŽ‹œ‡†ǫ –Š‡ Š‹• ”‹‡ ‘ˆ –ƒ• Š‘‡•– •‡”˜‹ ‡• ˆ”ƒ—†“—‹”‡•ƒ˜ƒŽ—‡Œ—†‰‡–ƒ„‘—–™Šƒ– ‘†— – ‘•–‹–—–‡•ƒ ”‹‡Ǥ ™‹–Š ‘”‡ ’”‡ ‹•‹‘ Ž‹‡ –Š‡ ˆ‡†‡”ƒŽ ‹” —‹– ‘—”–• ™  ͳ͸͵Ǥ ‹ŽŽ‹‰˜Ǥ‹–‡†–ƒ–‡•ǡͳ͵ͲǤ–Ǥʹͺͻ͸ǡʹͻͲ͹ȋʹͲͳͲȌǤ ͳ͸ͶǤ  33531-ckt_88-2 Sheet No. 172 Side A 05/13/2013 14:40:30 A 05/13/2013 172 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 172 Side B 05/13/2013 14:40:30  Ǥ  Ǥ    ƒ• †‡Ǧ  ‰ ƒ  ‘Ǧ ‘—Ž† ͻǣ͵ͺ 3854— 1468—     ‘ ƒ• ƒ ‡†–‘ S. ’‡ ––‘  ’—„Ž‹   ‘”’‘Ǧ  †ƒ”‰—‡ ™‘•—„Ǧ ‡”˜‹ ‡• H.R. ǡ  Ž—†‹‰ͳͺ  ‡“—‹”‡• ƒ  ‘—”– †‡Ǧ See –Š‡ ’—„Ž‹  Skilling  Skilling Țͳ͵Ͷ͸Dz–‘ See ‹™Š‘Ž‡‘”  ͳ͸ͷ Statute   ’ƒ”–‹ —Žƒ”ǡ–Š‡ Skilling services” ͳ͸͹  †— ‡†–Š‡„‹ŽŽ‹–Š‡ ‘—•‡‘ˆ ȀͲͻȀʹͺȀ•‡ǦŽ‡ƒŠ›Ǧ‹–”‘†— ‡•Ǧ ‹––‡‡”‡ˆ‡””ƒŽǤ ‡‰‹•Žƒ–‹˜‡•‡••‹‘Ǥ ‹–Ž‡ͳͺ‘ˆ–Š‡‹–‡†–ƒ–‡•‘†‡ǡ  ȏ‘Žͺͺǣʹ ‡–ƒ–‹˜‡ǡ‘”’‡”•‘ƒ –‹‰ˆ‘”‘”‘ •–ƒ–‡Ǥ ȋʹͲͳͲȌȋŽƒ•–˜‹•‹–‡† ‡„ǤʹͷǡʹͲͳ͵Ȍǡ ȋʹͲͳͲȌȋŽƒ•–˜‹•‹–‡† ‡„ǤʹͷǡʹͲͳ͵Ȍǡ   “Honest   •— Š†‡’ƒ”–‡–ƒ‰‡ ›‘”„”ƒ Š‘ˆ ǡ‘”ƒ›†‡’ƒ”–‡–ǡƒ‰‡ ›ǡ‘”„”ƒ Š   Ǥ Ǥ REVIEW  ‘–‡ͳʹǡƒ–ȚʹȋƒȌǤDz’—„Ž‹ ‘ˆˆ‹ ‹ƒŽdz‹•†‡Ǧ Expand ‘–‡ͳʹǤŠ‡„‹ŽŽ™ƒ•”‡ˆ‡””‡†–‘–Š‡‡ƒ–‡  Skilling to  LAW    ǡ ǡ supra supra Bill  Act Act   KENT Ǧ  Introduces   —‹Ž†‹‰ —’‘ –Š‹• •—„•–ƒ–‹ƒŽ „‘†› ‘ˆ ™‡ŽŽǦ ͳ͸ͻ CHICAGO   ‘–”ƒ•––‘–Š‡•’ƒ”–ƒ–™‡–›Ǧ‡‹‰Š–™‘”†• Restoration Restoration   ͳ͸͸ Ȍ ͷȀ͹ȀʹͲͳ͵ ͳ͸ͺ ǡ—†‡”‘”„›ƒ—–Š‘”‹–›‘ˆƒ› Leahy  ‘–‡ͻͻǡƒ–ͷͳǡ͸ͲǤʹ͹ȋƒ”‰—‹‰–Šƒ––Š‡”‡ƒ”‡ˆ‡†‡”ƒŽŽƒ™•ǡ‹ Services Services       ‘–‡Ͷ͹Ǥ   supra ƒ–Țʹȋ„ȌȋͳȌȋȌǤ Honest Honest ȋ   Id. supra   Ǥ  See Ǧ Congress: Congress: ‡’–‡„‡”ʹͺǡʹͲͳͲǡƒ„‘—––Š”‡‡‘–Š•ƒˆ–‡”–Š‡ ‡•’‹–‡ –Š‡‹” ƒ’’ƒ”‡– †‹•ƒ””ƒ›ǡ –Š‡ ˜ƒ”‹‡† ƒ’’”‘ƒ Š‡• ‘ˆ –Š‡  ‘”†‹‰–‘–Š‡ ǡ—†‹• Ž‘•‡†•‡ŽˆǦ†‡ƒŽ‹‰‘ —”•™Š‡–™‘    111th ™‡ŽŽ ƒ• –Š‡ •‡ŽˆǦ†‡ƒŽ‹‰ ƒ–‡‰‘”› ‘ˆ ƒ•‡• –Šƒ– –Š‡ Ž‹‡†–‘”‡ ‘‰‹œ‡Ǥ ‹•‹‘™ƒ•ƒ‘— ‡†ǡ‡ƒ–‘”ƒ–‡ƒŠ›‹–”‘†— ‡†ƒ„‹ŽŽ†‡•‹‰ ”‡•–‘”‡–Š‡ƒ‹Žˆ”ƒ—†Žƒ™–‘‹–•’”‡Ǧ —†‹ ‹ƒ”› ‘‹––‡‡ǡ„—–‡˜‡”ƒ†‡‹–ƒ›ˆ—”–Š‡”†—”‹‰–Š‡Ž „‹ŽŽǦ–‘Ǧ”‡•–‘”‡ǦŠ‘‡•–Ǧ•‡”˜‹ ‡•Ǧ”‡’Žƒ ‡‡–ȀǤ  ͳ͸ͺǤ Š‡ ‘‡•–‡”˜‹ ‡•‡•–‘”ƒ–‹‘ –ǡ 112th ‘”‹‰‹ƒŽŽ›ƒ†‘’–‡†–‘ ‘†‹ˆ›Š‘‡•–•‡”˜‹ ‡•ˆ”ƒ—†ǡ–Š‡ ‘‡•– ‡•–‘”ƒ–‹‘  – ȋ Ȍ•‘—‰Š– –‘ ‹” —• ”‹„‡ ‡šŠƒ—•–‹˜‡Ž› –Š‡ –‘—”•‘ˆ–Š‡‘ˆˆ‡•‡ǤŠ‡’”‘’‘•‡†Ž‡‰‹•Žƒ–‹‘‹•„”‘‡‹–‘– •‡ –‹‘•ǡ ™‹–Š –Š‡ ˆ‹”•– ‘ ‡”‹‰ —†‹• Ž‘•‡† •‡ŽˆǦ†‡ƒŽ‹‰ „› ‘ˆˆ‹ ‹ƒŽ•ƒ†–Š‡•‡ ‘† ‘ ‡”‹‰—†‹• Ž‘•‡†•‡ŽˆǦ†‡ƒŽ‹‰„› ”ƒ–‡‘ˆˆ‹ ‡”•‘”†‹”‡ –‘”•Ǥ ”‡ƒ•‘‡† ƒ•‡ Žƒ™ǡ ƒ ‡™ †‡ˆ‹‹–‹‘ ‘ˆ‹ Ž—†‡ Š‘‡•– „‘–Š •‡”˜‹ ‡• –Š‡ ˆ”ƒ—† ‘”‡ •Š „”‹„‡Ǧƒ†Ǧ‹ „ƒ  ƒ•‡• —’Š‡Ž† ‹ ǤǤǤȚʹͲͳǡ–Š‡–‹Ǧ‹ „ƒ  –‘ˆͳͻͺ͸ǡƒ†Šƒ’–‡”ͳͳ‘ˆ •’‡ ‹ˆ‹ ƒŽŽ› ”‹‹ƒŽ‹œ‹‰„”‹„‡•ƒ†‹ „ƒ •ȌǤ  ͳ͸͸Ǥ    ͳ͸ͷǤ ǯ‘‘Ž‡ǡ ͸ͳͶ • Š‡‡•ƒ”‡ƒŽ”‡ƒ†› ”‹‹ƒŽ‹œ‡†„›ƒŠ‘•–‘ˆ‘–Š‡”•–ƒ–—–‡•ƒ –Šƒ––Š‡‘—”–Šƒ•‡ˆˆ‡ –‹˜‡Ž›”‡†‡”‡†Țͳ͵Ͷ͸•—’‡”ˆŽ—‘—•Ǥ ͳͶǦ „‹ŽŽ•‘—‰Š––‘‹•‡”–ƒ•‡ –‹‘–‘–Š‡ƒ‹Žˆ”ƒ—†•–ƒ–—–‡ƒˆ–‡” ‡š’ƒ†–Š‡†‡ˆ‹‹–‹‘‘ˆ• Š‡‡‘”ƒ”–‹ˆ‹ ‡–‘†‡ˆ”ƒ—†™‹–Š”‡• ƒ‹Žƒ†™‹”‡ˆ”ƒ—†Ǥdz  ͳ͸͹Ǥ ƒ—‡Ž—„‡ˆ‡Ž†ǡ ȋ‡’–Ǥ ʹͺǡ ʹͲͳͲȌǡ Š––’ǣȀȀ„Ž‘‰•Ǥ™•ŒǤ ‘Ȁ ‘””—’–‹‘Ǧ —””‡–•ȀʹͲͳͲ ‘˜‡”‡–Ǥdz „‡ŠƒŽˆ‘ˆ–Š‡‹–‡†–ƒ–‡•ǡƒ–ƒ–‡ǡ‘”•—„†‹˜‹•‹‘‘ˆƒ–ƒ–‡ –Š‡”‡‘ˆǡ‹ƒ›‘ˆˆ‹ ‹ƒŽˆ— –‹‘ Š––’ǣȀȀ™™™Ǥ‰‘˜–”ƒ Ǥ—•ȀǤ‡’”‡•‡–ƒ–‹˜‡–Š‘›‡‹‡””‡Ǧ‹–”‘ Š––’ǣȀȀ™™™Ǥ‰‘˜–”ƒ Ǥ—•ȀǤ  ͳ͸ͻǤˆ‹‡†ƒ•ǡDzƒ‘ˆˆ‹ ‡”ǡ‡’Ž‘›‡‡ǡ‘”‡Ž‡ –‡†‘”ƒ’’‘‹–‡†”‡’”‡• Š‡ ‘‡•–‡”˜‹ ‡•‡•–‘”ƒ–‹‘ –ǡ ‡’”‡•‡–ƒ–‹˜‡•‹ʹͲͳͳǡ„—–‹–ƒ‰ƒ‹‡˜‡”ƒ†˜ƒ ‡†„‡›‘† ‘ Dz–‹†‡ ‘ˆ ™‡ŽŽǦ ‘•‹†‡”‡† ‘’‹‹‘•dzȄ’‘™‡”ˆ—Ž‡™ǡ ‹•‹‰Š– —‹ˆ›‹‰ •–ƒ–—–‡Ǥ ˆ‘” ”ƒˆ–‹ ‘—”–• ‘ˆ ’’‡ƒŽ• •–‹ŽŽ ’”‘˜‹†‡ ™Šƒ– —•–‹ ‡ –‡˜‡• ”‡ˆ‡””‡† – ‘†‹–‹‘• ƒ”‡ ‡–Ǥ ‘” ’—„Ž‹  ‘ˆˆ‹ ‹ƒŽ•ǡ –Š‡ ˆ‹”•– ‘†‹–‹‘’—„Ž‹ ‘ˆˆ‹ ‹ƒŽ–‘Dz’‡”ˆ‘”ȏȐƒ‘ˆˆ‹ ‹ƒŽƒ –ˆ‘”–Š‡’—”’‘•‡ǡ ” ‹ ’ƒ”–ǡ ‘ˆ „‡‡ˆ‹––‹‰ ‘” ˆ—”–Š‡”‹‰ ƒ ˆ‹ƒ ‹ƒŽ ‹–‡”‡•– ‘ˆdz 33531-ckt_88-2 Sheet No. 172 Side B 05/13/2013 14:40:30 B 05/13/2013 172 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 173 Side A 05/13/2013 14:40:30 ˆ ˆǦ   ‹œ‡• ‰—‡Ǧ  ‹ ͻǣ͵ͺ  –Šƒ–  ˆ”‘ ‹”‹‰ ƒ  –Šƒ– ‹• ƒ–‹‘‘ˆ ”ǡ ‘”ǡ –‘ •‡Šƒ” ‘’—„Ž‹   ‡ ‘†ǡ ‹‘™‹–Š ˜‡”ȏȐ —’ ˜ƒŽ—‡‘ˆ ‹•‘‡ Šƒ•†‡ƒŽǦ ȏȐ –‘ †‹•Ǧ ‹‡–Ž‹‹–Ǧ –Š‡Ž‡‰‹•Ǧ Ž‡‰‹–‹ƒ–‡ ‹‘‘””‡ ‘Ǧ Š‹••’‘—•‡ ͳ͹ͳ ͳ͹Ͳ ”‡–•–ƒ†Ǧ ‡ǡ”‡‰—Žƒ–‹‘ǡ  Ǯ‡’Ž‘›‡”ǯ ‹ Ž—†‡• ƒ – ™‹–Š‹ –Š‡ ”ƒ‰‡ ‘ˆ  ͸ͳͷ ‹‘–Šƒ––Š‡ ‘˜‡”‡–•Š‘—Ž†  Ǥ ‹ •— Š ’—„Ž‹  ‘ˆˆ‹ ‹ƒŽǯ• ‘ˆˆ‹ ‹ƒŽ ‘ͷͲͳȋ Ȍȋ͵Ȍ‘ˆ–Š‡ –‡”ƒŽ‡˜‡Ǧ –ǡ‘”‡–Šƒ‘‡ƒ –ǡ‘”ƒ ‘—”•‡‘ˆ ͳ͹͵ FRAUD  ƒ„‡ƒ•‹‰Ž‡ƒ –ǡ‘”‡–Šƒ‘‡ƒ –ǡ‘”ƒ SERVICES   Š‡ •‡ ‘† ‘†‹–‹‘ †‹”‡ –Ž› ‹”Ǧ ͳ͹ʹ Šƒ•”‡ ‡‹˜‡†ƒ–Š‹‰‘ˆ˜ƒŽ—‡Ǥ •–ƒ–—–‡ǯ•’‘–‡–‹ƒŽƒ’’Ž‹ ƒ–‹‘ǡ HONEST   •‡ŽˆǦ†‡ƒŽ‹‰ ‘ —”• ™Š‡ ƒ ‘”’‘”ƒ–‡ ‘ˆˆ‹ ‡” Ȍ ͷȀ͹ȀʹͲͳ͵ REDEFINING  private  ƒ–Țʹȋ„ȌȋʹȌȋȌǤ ƒ††‹–‹‘ǡDz–Š‡–‡”Ǯƒ –ǯ‹ Ž—†‡•ƒ†‡ ‹• Țʹȋ„ȌȋͳȌȋȌǤ   Id.  ƒ–  Id. ȋ Țʹȋ„ȌȋͳȌȋȌȋ‹‹ȌǤ  ƒ–Țʹȋ„ȌȋʹȌȋȌǤ  Ǥ  ƒ– Ț ʹȋ„ȌȋͳȌȋȌȋ‹ȌǤ DzŠ‡ –‡” Ǯ‘ˆˆ‹ ‹ƒŽ ƒ –ǯ ȋ‹Ȍ ‹ Ž—†‡• ƒ› ƒ–  ƒ– Ț ʹȋ„ȌȋʹȌȋȌȋ‹ȌǤ ‘” ’—”’‘•‡• ‘ˆ –Š‹• •—„•‡ –‹‘ǡ Dz–Š‡ –‡” ƒ–Țʹȋ„ȌȋʹȌȋȌȋ‹‹ȌǤ Id.  Id. Id. Id. Id. Ǧ †‹• Ž‘•‡†  ‡••‡ ‡ǡ –Š‡  •–”‹˜‡• –‘ ”‡•–‘”‡ ƒ† Žƒ”‹ˆ› –Š‡ ”‹‡ ‘  ‘”†‹”‡ –‘”Dz’‡”ˆ‘”•ƒƒ –™Š‹ Š ƒ—•‡•‘”‹•‹–‡†‡†–‘ ƒ— –‘ –Š‡ ‘ˆˆ‹ ‡”ǯ• ‘” †‹”‡ –‘”ǯ•™Š‘Ž‡‘”‹’ƒ”––‘„‡‡ˆ‹–‘”ˆ—”–Š‡”„›ƒƒ –—ƒŽ‘”‹–‡†‡† ‡’Ž‘›‡”ǡ ƒ† ™Š‹ Š ‹• —†‡”–ƒ‡ ̈́ͷǡͲͲͲ‘”‘”‡ƒˆ‹ƒ ‹ƒŽ‹–‡”‡•–‘ˆdz–Š‡‘ˆˆ‹ ‡”ǯ•Š‹•‡Žˆǡ ‘”‹‘” Š‹Ž†ǡŠ‹•‰‡‡”ƒŽ’ƒ”–‡”ǡ‘”ƒ„—•‹‡••‘”‘”‰ƒ‹œƒ– ™Š‹ Š –Š‡ ‘ˆˆ‹ ‡” Šƒ• †‡ƒŽ‹‰•Ǥ –Š‡ ’—„Ž‹  ‘ˆˆ‹ ‹ƒŽ —•– Dz‘™‹‰Ž› ˆƒŽ•‹ˆȏ›Ȑǡ ‘ ‡ƒŽȏȐǡƒ–‡”‹ƒŽ ‘” ‹ˆ‘”ƒ–‹‘ ‘ –Šƒ– ‹• ”‡“—‹”‡† –‘ „‡ˆ‹ƒ ‹ƒŽ‹–‡”‡•–„›ƒ› ‡†‡”ƒŽǡ–ƒ–‡ǡ‘”Ž‘ ƒŽ•–ƒ–—–‡ǡ”—Ž †‹• Ž‘•‡† ”‡‰ƒ”†‹‰ ‘” Šƒ”–‡” ƒ’’Ž‹ ƒ„Ž‡ –‘ –Š‡ ’—„Ž‹  ‘ˆˆ‹ ‹ƒŽǡ ‘” ‘™‹‰Ž› Ž‘•‡ƒ–‡”‹ƒŽ‹ˆ‘”ƒ–‹‘”‡‰ƒ”†‹‰–Šƒ–ˆ‹ƒ ‹ƒŽ‹–‡”‡•–Ǥdz ˆƒ‹Ž ‹•–ƒ ‡•ǡ‘” ƒŽ‡ƒ†–‘‘˜‡” ”‹‹ƒŽ‹œƒ–‹‘‹‘–Š‡”•Ǥ ‹”•–ǡ Žƒ–‹‘ ˆƒ‹Ž• –‘ †‡ˆ‹‡ –Š‡ •‘—” ‡„”‡ƒ Š‡† ‘ˆ ‹ –Š‡ ˆ‹†— ‹ƒ”› Š‘‡•– ”‡Žƒ–‹‘•Š‹’ •‡”˜‹ ‡• ˆ”ƒ—†Ǥ‘™‹‰Ž› ‡ ‘†ǡ ˆƒ‹Ž‹‰ –‘ –Š‡ †‹• Ž‘•‡ •–ƒ–—–‡ ƒ ˆ‹ƒ ‹ƒŽ ”‹‹ƒŽ ‹–‡”‡•–•’‡ ‹ˆ‹ ‹–‡––‘†‡ˆ”ƒ—†Ǥ ‹ƒŽŽ›ǡ–Š‡ †‘‡•‘–ƒ†‘’–‹Ž ™‹–Š‘—– ”‡“— ‰ƒ‹–‘–Š‡ƒ —•‡†‘”Šƒ”–‘–Š‡˜‹ –‹ƒ•ƒŽ–‡”ƒ–‹˜‡•—ˆˆ‹ ‹‰’”‹ ‹’Ž‡•ǡƒ†‹•–‡ƒ†”‡ˆŽ‡ –•ƒ—†—Ž›ƒ””‘™‹–‡”’”‡– Š‘‡•– •‡”˜‹ ‡• ˆ”ƒ—††‡ƒŽ‹‰ǡ ”‡ƒ–‹‰†‹•–‹ –‹‘•„‡–™‡‡–Š‡‘ˆˆ‡•‡ƒ•ƒ’’Ž‹‡†– „› ‡š’Ž‹ ‹–Ž›‘ˆˆ‹ ‹ƒŽ•ƒ†’”‹˜ƒ–‡ƒ –‘”•ǡƒ†Š‘Ž†‹‰–Š‘•‡ƒ –‘”•–‘†‹ˆˆ‡ ’”‘• ”‹„‹‰ —†‹• Ž‘•‡† •‡Ž ƒ”†• ‘ˆ —Ž’ƒ„‹Ž‹–›Ǥ Ž–Š‘—‰Š –Š‡  ƒ††”‡••‡• •‘‡ ‘ˆ‡•• –Š‡ ˜ƒ ’”‘„Ž‡• ‘ˆ Ț ͳ͵Ͷ͸ǡ –Š‡•Š‘”– ‘‹‰•–Šƒ–”‡•–”‹ ––Š‡ ’”‘’‘•‡† Ž‡‰‹•Žƒ–‹‘ •–‹ŽŽ •—ˆˆ‡”•   ͳ͹ͲǤ  ʹͲͳ͵Ȑ ‘ˆˆ‹ ‹ƒŽ Š‹•‡Žˆǡ Š‹• •’‘—•‡ ‘” ‹‘” Š‹Ž†ǡ Š‹•’ƒ”ƒ’Š”ƒ•‡ǡƒ„—•‹‡••‘”‘”‰ƒ‹œƒ–‹‘™‹–Š™Š‹ Š–Š‡‘ˆˆ‹ ‹ƒŽ ‰‡‡”ƒŽ ’ƒ”–‡ ‹‰•‘”ˆ”‘™Š‹ Š–Š‡‘ˆˆ‹ ‹ƒŽ ͳͶǦ ”‘”•–Š‡•‡ ‘† ‘†‹–‹‘ˆ‘”’—„Ž‹ ‘ˆˆ‹ ‹ƒŽ•Ǥ ‘ˆˆ‹ ‹ƒŽ †—–›ǡ ƒ† ƒ› †‡ ‹•‹‘ǡ ”‡ ‘‡†ƒ–‹‘ǡ ‘” ƒ –‹‘ǤǤ ƒ’ƒ ‹–›‘”‹•— Š‘ˆˆ‹ ‹ƒŽǯ•’Žƒ ‡‘ˆ–”—•–‘”’”‘ˆ‹–Ǣȋ‹‹Ȍ  ͳ͹ͳǤ  ‘—”•‡‘ˆ ‘†— –Ǣƒ†ȋ‹‹‹Ȍ‹ Ž—†‡•ƒ†‡ ‹•‹‘‘””‡ ‘‡†ƒ– ‘––ƒ‡ƒ –‹‘Ǥdz –Š‡ ”‹‡‘ˆŠ‘‡•–•‡”˜‹ ‡•ˆ”ƒ—†Ǥ ’—„Ž‹ Ž›–”ƒ†‡† ‘”’‘”ƒ–‹‘•ǡƒ†’”‹˜ƒ–‡ Šƒ”‹–‹‡•—†‡”•‡ –‹ —‡‘†‡‘ˆͳͻͺ͸Ǥdz  ͳ͹ʹǤ  ‡†ƒ–‹‘–‘–ƒ‡ǡ‘”‘––‘–ƒ‡ƒ –‹‘ǡƒ† ƒ„‡ƒ•‹‰Ž‡ƒ ‘†— –Ǥdz  ͳ͹͵Ǥ  33531-ckt_88-2 Sheet No. 173 Side A 05/13/2013 14:40:30 A 05/13/2013 173 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 173 Side B 05/13/2013 14:40:30 Ǧ  ‘   ”› ‘ –‘ Sor •–‹Ǧ ͻǣ͵ͺ ‘ ‹• Ž‘•‡†  Duty —–›Ȅ ‡ ”˜‹ ‡•  —†‹•Ǧ ƒ”‡’‡Ǧ ‰ǢȋʹȌƒ ”‘ˆ‡•Ǧ  –‘ †‹•Ǧ ”‹‹ƒŽ †‡‡†ǡ–Š‡ ƒ’ƒ ‹–‹‡•ǡ ”‡Žƒ–‹‘Ǧ †‹ˆˆ‡”‹‰ ‡”ƒŽ†‹‡ ‡ƒ Š‘ˆˆ‹Ǧ  ͳ͹͸ –”‡“—‹”‹‰ ǡ ‹ˆ‘”‹–›‹ ƒŽŽǤ •–‡ƒ†ǡ‹– Fiduciary  of    ‘”†‹‰Ž›ǡ ‘Ǧ Panarella ͳ͹ͻ Breach  ȏ‘Žͺͺǣʹ   †‹••‡–ǡ–Š‡•‘—” ‡‘ˆƒˆ‹Ǧ  for  ͳ͹ͺ REVIEW  ǡ ƒ ƒ – ƒ† ƒ —Ž’ƒ„Ž‡ •–ƒ–‡ ‘ˆ Skilling LAW  ’ƒ ‹‰–Š‹•”‡“—‹”‡‡–ˆ—”–Š‡”ǡ alia  Standards  KENT Ǧ ͳ͹ͷ Ž‹ ‹ƒ†‹•‹–‡”‡•–‡†ƒ‡”Ǥ  inter Adopt  CHICAGO Ȍ ͷȀ͹ȀʹͲͳ͵ Should    ‘–‡͵ǡƒ–ͳ͸Ǥ  ‘–‡͹ǡƒ–ͷͳǤ    ƒ”– Ǥ   HSRA supra  ȋ supra supra  ƒ–ͳͻǤ ƒ–ʹͲǤ  Ǥ      Š‘‹‰ –Š‡ Š‹”† ‹” —‹–ǯ• ’‘•‹–‹‘ ‹   Id. Id. See Id. Ǧ ͳ͹Ͷ ͳ͹͹ A. The • —•–‹ ‡ ƒŽ‹ƒ‹•‹•–‡†‹Š‹•  ”‡˜‹•‡† Š‘‡•– •‡”˜‹ ‡• •–ƒ–—–‡ —•– †‡Ž‹‡ƒ–‡ –Š‡ „ƒ•‹  ‡Ž‡Ǧ Ž–Š‘—‰Š –Š‡  †‡Ž‹‡ƒ–‡• •‘‡ ‘ˆ –Š‡ „ƒ•‹  ‡Ž‡‡–• –Šƒ– ƒ•‡Ȅ ‘•–‹–—–‡ •— Š ƒ ‹–‡”‡•–Ǥ —”–Š‡”ǡ ƒ Š‘”‹‰ –Š‡ †—–› –   „”‡ƒ Š ‘ˆ –Šƒ– ”‡Žƒ–‹‘•Š‹’ ‘•–‹–—–‡• ƒ ”‹‡Ǥ †— ‹ƒ”›”‡Žƒ–‹‘•Š‹’•Š‘—Ž†„‡ Ž‡ƒ”Ž›†‡ˆ‹‡†™Š‡”‡–Š‡—†‹• ‘‘Š”ƒ”‰—‡•–Šƒ––Š‡‡ ‡••ƒ”›†‡ ‡’–‹˜‡ƒ†ˆ”ƒ—†—Ž‡–ƒ – ‘ –—–‹‰Š‘‡•–•‡”˜‹ ‡•ˆ”ƒ—†‹•–Š‡Dzˆƒ‹Žȏ—”‡Ȑ–‘†‹• Ž‘•‡ƒ„” †— ‹ƒ”›†—–›–‘–Š‡’”‹ ‹’ƒŽǤdz •‘” ‘‘Š” †‘‡• ‘– †‡Ž˜‡”‡Žƒ–‹‘•Š‹’ǡ ‹–‘ ‹•–‡ƒ† –Š‡ ‡”‡Ž› ’”‡ ‹•‡ ‘–‹‰ •‘—” ‡Žƒ™Ǥdz ‘ˆ –Šƒ– –Š‡ ‹– ˆ‹†— ‹ƒ ‹• †‡ˆ‹‡† „› Dz ‘  ͳ͹ͷǤ    ͳ͹ͶǤ ‘‘Š”ǡ ͸ͳ͸ ͳͶǦ ”‘ˆ‡••‘”‘‘Š”ƒ••‡”–•–Šƒ––Š‹•ˆƒ‹Ž—”‡”‡“—‹”‡•ȋͳȌƒƒ‹Ž‹ ˆ‹†— ‹ƒ”›”‡Žƒ–‹‘•Š‹’Ǣȋ͵Ȍƒ„”‡ƒ Š‘ˆƒ†—–›‹Š‡”‡–‹–Šƒ– •Š‹’Ǣƒ†ȋͶȌ–Š‡†‡ ‡’–‹˜‡ƒ –‘ˆ‘–†‹• Ž‘•‹‰–Š‡„”‡ƒ ŠǤ ‡–•–Šƒ– ‘•–‹–—–‡–Š‡• Š‡‡‘”ƒ”–‹ˆ‹ ‡–‘†‡ˆ”ƒ—†Ǥ†‡” –Š‡‘”›ǡ ƒ ”‹‡ ”‡“—‹”‡•ǡ ‹†Ǥ ‘‡ ˆ‘”’—„Ž‹ ‘ˆˆ‹ ‹ƒŽ•ƒ†‘‡ ˆ‘”’”‹˜ƒ–‡ ƒ –‘”•ǡ”‡ˆŽ‡ –‹‰ ‰”‡•• •Š‘—Ž† ƒ†‘’– –™‘ •–ƒ†ƒ”†• ˆ‘” ‡•–ƒ„Ž‹•Š‹‰ ƒ ˆ‹†— ‹ƒ”› † Ž‘•‡†•‡ŽˆǦ†‡ƒŽ‹‰ǡ‹–ˆƒ‹Ž•–‘”‡ˆ‡”‡ ‡ƒˆ‹†— ‹ƒ”›†—–›ƒ– Ž‹‹–•–Š‡ ”‹‡–‘–Š‡ˆƒ‹Ž—”‡–‘†‹• Ž‘•‡ƒˆ‹ƒ ‹ƒŽ‹–‡”‡• †‹• Ž‘•—”‡ —†‡” ƒ’’Ž‹ ƒ„Ž‡ Žƒ™• ‘” ”‡‰—Žƒ–‹‘•Ǥƒ”‡†Ž›ƒ””‘™‡”–Šƒ–Š‡–”ƒ†‹–‹‘ƒŽƒ’’Ž‹ ƒ–‹‘‘ˆŠ‘‡•–•‡ Š‹• ˆ‘”—Žƒ–‹ ‘•–‹–—–‡ –Š‡ • Š‡‡ ‘” ƒ”–‹ˆ‹ ‡ –‘ †‡ˆ”ƒ—† ‹ –Š‡ ‘–‡š– ‘ˆ  ͳ͹͸Ǥ   ͳ͹ͻǤ   ͳ͹͹Ǥ  ˆ”ƒ—†ǡ‹™Š‹ Š„”‡ƒ Š‡•‘ˆ‘„Ž‹‰ƒ–‹‘•‘ˆŠ‘‡•–›ƒ†Ž‘›ƒŽ–› ƒŽ‹œ‡†ǡ ‡•’‡ ‹ƒŽŽ› ‹ ƒ•‡• ‹˜‘Ž˜‹‰ Šƒ”‰‡Š‹••‡”˜‹ ‡•–‘–Š‡’—„ ƒ ’—„Ž‹  ‘ˆˆ‹ ‹ƒŽǯ• †—–› —†‡ˆ‹‡† –‡”ǡ Dzˆ‹ƒ ‹ƒŽ ‹–‡”‡•–dz™Š‡–Š‡” ‡”–ƒ‹‘Ǧ’‡ —‹ƒ”›‰ƒ‹•Ȅ•— Šƒ•‹–›Œ‘„•ǡƒ•‹–Š Ž‡ƒ˜‡• ƒ ‘’‡ “—‡•–‹‘ ƒ•  ͳ͹ͺǤ Š‡›ǡ ich †‹• Ž‘•‡‹ˆ‡†‡”ƒŽǡ•–ƒ–‡ǡ‘”Ž‘ ƒŽŽƒ™”‡•—Ž–•‹ƒŽƒ ‘ˆ— Š‘™–Š‡Žƒ™‹•ƒ’’Ž‹‡†–‘’—„Ž‹ ‘ˆˆ‹ ‹ƒŽ•™Š‘ƒ –‹•‹‹Žƒ” †‡’‡†‹‰‘™Š‡”‡–Š‡‹” ‘†— –‘ —”•Ǥ 33531-ckt_88-2 Sheet No. 173 Side B 05/13/2013 14:40:30 B 05/13/2013 173 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 174 Side A 05/13/2013 14:40:30    ‘ˆ ‘•‡ ˜‡ ™‡” ‘” Ǥ Ǧ ‹–‹•  ͻǣ͵ͺ ˆ‘”Ǧ  ƒŽ‹• ‘ ‘ˆ ‹”‡Ǧ †ǤŠ‡ ’—„Ž‹  ‹–‹‡•‹ ‘–Š‡ reus ‡”‡–Š‡ ”‹‹ƒŽ •–ƒ–—–‡ •ǡ–ƒ‡ ’Ž‹ ƒ„Ž‡  ƒ‡” ‹‘‡ǯ•  ™‹–Š‘—– Š‹•†‹•Ǧ •–ƒ†ƒ”† ƒŽˆ”ƒ—† •‡‘ˆˆ—”Ǧ †— –’”‘Ǧ  ‹‰„‡Šƒ˜Ǧ –‘•–ƒ–‡Ǥ Defraud rea   actus to  mens  ͸ͳ͹ Intent  FRAUD  Specific   ‹”•–ǡ ’—„Ž‹  ‘ˆˆ‹ ‹ƒŽ• Šƒ˜‡ ƒ ͳͺͲ the  SERVICES  HONEST  ‹ƒ”›†—–›–Šƒ’—„Ž‹ ‘ˆˆ‹ ‹ƒŽ•Ǥ Require  ȄŽ‡ƒ˜‹‰•— Š ‘‘’Žƒ ‡‡’Ž‘›‡‡Ž‘›ƒŽ–› Should  Ȍ ͷȀ͹ȀʹͲͳ͵ ͳͺͳ REDEFINING   HSRA    ‘–‡ͳͶͷǤ –‡š–ƒ ‘’ƒ›‹‰‘–‡ͳͲ͸Ǥ    ȋ supra supra    B. The Ǥ  See See Ǧ  ‘”†‹‰Ž›ǡ‘‰”‡•••Š‘—Ž†‹•–‡ƒ†ƒ†‘’––Š‡ ƒ††‹–‹‘–‘ƒƒ –ǡƒ ”‹‡”‡“—‹”‡•ƒ —Ž’ƒ„Ž‡•–ƒ–‡‘ˆ‹ ”‹˜ƒ–‡ƒ –‘”•ǡ‘–Š‡‘–Š‡”Šƒ†ǡ•Š‘—Ž†„‡•—„Œ‡ ––‘ƒƒ””‘   ‘‹–• ƒ •’‡ ‹ˆ‹  ‹–‡– –‘ ƒ – ™‹–Š•–‡ƒ†ǡƒ’—„Ž‹ ‘”’”‹˜ƒ–‡‘ˆˆ‹ ‹ƒŽ—•–ƒ –ȋͳȌ™‹–Š–Š‡’—”’‘ –Š‡ ’—”’‘•‡ –‘ †‡ˆ”ƒ—† –Š‡”‹‰ ƒ ˆ‹ƒ ‹ƒŽ ‹–‡”‡•–‹ˆ‘”ƒ–‹‘”‡Žƒ–‡†–‘–Šƒ–‹–‡”‡•–ǤŠ‹Ž‡–Š‡•‡–™‘ ‘†‹–‹‘ ƒ† ȋʹȌ ‘™‹‰Ž›–‘‰‡–Š‡”ǡ ‘—Ž†Ž‡ƒ†–‘ƒ‹ˆ‡”‡ ‡‘ˆ†‡ ‡’–‹˜‡‹–‡–ǡ ”‹‹ ˆƒ‹Ž‹‰ –‘ †‹• Ž –”ƒ†‹–‹‘ƒŽŽ› ”‡“—‹”‡• ‘”‡ –Šƒ ƒ–Š‘—‰Š–Š‡ •‡‡•–‘‹ ‘”’‘”ƒ–‡ƒ•’‡ ‹ˆ‹ ‹–‡–‡Ž‡‡– ‰‡‡”ƒŽ ‹–‡– –‘ †‡ ‡‹˜‡Ǥ“—‹”‹‰  –Š‡ ƒ —•‡† –‘ ƒ –ƒ–‹‘ǡ Dz‘™‹‰Ž›dz –Š‡ ǯ• ‹ •–ƒ†ƒ”† ˆƒ‹Ž‹‰ ‹• •—• ‡’–‹„Ž‡ –‘ –‘‹ƒ†˜‡”–‡–„”‡ƒ Š‡•‘ˆ–Š‡Žƒ™ǤŠ‹•†ƒ‰‡”‡š‹•–•„‡ ƒ—•‡–Š‡ †‹• Ž‘•‡ ‘˜‡” ”‹‹ƒŽ‹œƒ–‹ ‹ ”‹‹ƒŽ‹œ‡• ‘™‹‰Ž› ˆƒ‹Ž‹‰ –‘ †‹• Ž‘•‡ ƒ ˆ‹ƒ ‹ƒŽ ‹–‡”‡•– ”‡“—‹”‹‰ƒ•’‡ ‹ˆ‹ ‹–‡––‘†‡ˆ”ƒ—†Ǥ ƒ†˜‘ ƒ–‡† „› ”‘ˆ‡••‘” ‘‘Š”ǡ —†‡” ™Š‹ Š Š‘‡•– •‡”˜‹ ‡• ˆ”ƒ—†  ͳͺͳǤ  ™‹†‡Ž›”‡ ‘‰‹œ‡†ˆ‹†— ‹ƒ”›†—–›–‘†‹• Šƒ”‰‡–Š‡‹””‡•’‘•‹„‹Ž –Š‡’—„Ž‹ ‹–‡”‡•–ǤŠ—•ǡƒ„”‡ƒ Š‘ˆ–Š‹•†—–›–Š”‘—‰Šƒ –‹‰ ‘™ •‡ŽˆǦ‹–‡”‡•– •Š‘—Ž† „‡ •—ˆˆ‹ ‹‡– –‘ ‡•–ƒ„Ž‹•Š –Š‡ Š‘‡•– •‡”˜‹ ‡• ˆ”ƒ—†Ǥ Š‹• †—–› ‘ˆ Š‘‡•–›•–ƒ†ƒ”†ˆ‘”ƒŽŽ’—„Ž‹ ‘ˆˆ‹ ‹ƒŽ•–Šƒ–†‘‡•‘–˜ƒ”›ˆ”‘•–ƒ–‡ ™‘—Ž† ”‡ƒ–‡ ƒ —‹ˆ Žƒ’•‡•–‘‹–‡”ƒŽ‡’Ž‘›‡””‡‰—Žƒ–‹‘Ǥ   ͳͺͲǤ  ʹͲͳ͵Ȑ •‘ ‹‡–ƒŽ •–ƒ†ƒ”†• ˆ‘” –Š‡‹” ‘†— –Ǥ ͳͶǦ •–ƒ†ƒ”†ˆ‘”ƒ„”‡ƒ Š‘ˆˆ‹†— –‹ –‹‘ ˆ‘ŽŽ‘™• –Š‡ ’”‡˜ƒ‹Ž‹‰ •‡–‹‡– –Šƒ– ƒ–”—•–‹•‘”‡ ”‹‹ƒŽŽ›•‡”‹‘—•–Šƒ‡’Ž‘›‡‡‹• ‘†— –ǤŠ—• „”‡ƒ Š ‘ˆ –Š‡ ƒ’’”‘’”‹ƒ–‡–‘Ž‹‹––Š‡ˆ‹†— ‹ƒ”›†—–›‘ˆ’”‹˜ƒ–‡ƒ –‘”•–‘ƒ’‡–Š‹ ƒŽ‘„Ž‹‰ƒ–‹‘•‹’‘•‡†„›•–ƒ–‡Žƒ™‹–Š‡Œ—”‹•†‹ –‹‘™Š ƒ —•‡†ǯ• ‘†— –‘ —””‡†Ǥ‡ˆ‹‹‰–Š‡ˆ‹†— ‹ƒ”›†—–›‹–Š‹• ƒ††”‡••‡•ˆƒ‹”‘–‹ ‡ ‘ ‡”•„‡ ƒ—•‡–Š‡ ‘†— –•—„Œ‡ ––‘ ’‡ƒŽ–› ‹• ”‘‘–‡† ‹ •–ƒ–‡ Žƒ™Ǥ —”–Š‡”‘”‡ǡ ‘ ‡”•„‡ ƒ—•‡‹–”‡•–”‹ –•ˆ‡†‡”ƒŽ ”‹‹ƒŽŽ‹ƒ„‹Ž‹–›–‘ ‘ ‹– ƒ††”‡••‡• ˆ‡†‡” Š‹„‹–‡†„›–Š‡•–ƒ–‡•–Š‡•‡Ž˜‡•Ǥ ‹ƒŽŽ›ǡ‹–ƒ˜‘‹†• ”‹‹ƒŽ‹œ ‹‘”–Šƒ–•Š‘—Ž†‘–„‡ ”‹‹ƒŽ‹œ‡†ȄŽ‹‡–ƒ‹‰Š‘‡’‡ ‹Ž•ˆ” ‘ˆˆ‹ ‡•—’’Ž› ƒ„‹‡– 33531-ckt_88-2 Sheet No. 174 Side A 05/13/2013 14:40:30 A 05/13/2013 174 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 174 Side B 05/13/2013 14:40:30 Ǧ    ‹• ’Ž‡ ‘” •’‡Ǧ ˆ—”Ǧ ͻǣ͵ͺ  –Šƒ– and   ‹‹–ƒǦ ’‡ ‹ˆ‹  –‘ ‘Ž› ƒ†˜‡”–Ǧ ‡”‡“—‹Ǧ  ƒ—•‹‰ – ‹• ‘– –„‡ ‘Ǧ ‡ˆ”ƒ—†‹• ƒ—†dzƒ†  —Ž’ƒ„Ž‡ ƒ•ƒŽ‹‹–Ǧ Gain  —•‡†ƒ –‡† of ‹ ‡”—•–ƒ –  ‘—”–•‘ˆ–‡ ‘Ǧ  ˜ƒŽ—‡ ‘ˆ ̈́ͷǡͲͲͲ ˆ‘” ’”‹˜ƒ–‡ ͳͺʹ Principles  ‹  ‘ˆˆ‹ ‹ƒŽ•Ǥ Š‡ ‘‡•– ‡”˜‹ ‡• ͵ȌǤ  ȏ‘Žͺͺǣʹ   ‡“—‹”‹‰ ƒ ‹–‡– –‘ ƒ—•‡ REVIEW Limiting   ͳͺ͹ Harm LAW  Both  Š‹••–ƒ†ƒ”†‹•†‡•‹”ƒ„Ž‡„‡ ƒ—•‡‹–  KENT Ǧ ͳͺͶ  ‘™‡˜‡”ǡ‡˜‹†‡ ‡‘ˆ ‘ ‡ƒŽ‡–ǡˆƒŽ•‡ ͳͺ͸ ͳͺ͵ Address   Š—•ǡ Dz‘– ‡˜‡”› „”‡ƒ Š ‘ˆ ‡˜‡”› ˆ‹†— ‹ƒ”› CHICAGO ͳͺͷ Ȍ ͷȀ͹ȀʹͲͳ͵ Should    ‘–‡͵ǡƒ–ʹʹǦʹ͵Ǥ  ‘–‡ͳʹǡƒ–Țʹȋ„ȌȋʹȌȋȌȋ‹ȌǤ   ‘ˆ–Š‡ ”‹‡ǡ‡˜‡‹ƒ ƒ•‡™Š‡”‡Šƒ”–‘–Š‡˜‹ –‹‹•  HSRA   supra supra ȋ rea  ƒ–ʹʹǤ ƒ–ʹ͵Ǥ ƒ–͵ͻǤ  Ǥ     Id. Id. Id. Ǧ C. The ‹ƒŽŽ›ǡ–Š‡ ƒ†‘’–•ƒ—†—Ž›ƒ””‘™•–ƒ†ƒ”†ˆ‘”’”‘•‡ —– ‡ ‘†ǡ ”‡“—‹”‹‰ ‹–‡– –‘ ƒ—•‡ Šƒ” —‡ ‡••ƒ”‹Ž› ”‡•–”‹ –• mens  ‹‰’”‹˜ƒ–‡‘ˆˆ‹ ‡”•ƒ††‹”‡ –‘”•Ǥ’‡ ‹ˆ‹ ƒŽŽ›ǡƒ’”‹˜ƒ–‡‘ˆˆ ™‹–Š–Š‡’—”’‘•‡‘ˆ ƒ—•‹‰Šƒ”–‘Š‹•‡’Ž‘›‡”‹ƒ††‹–‹‘–‘–Š‡”‹‰ ƒ ’‡”•‘ƒŽ ˆ‹ƒ ‹ƒŽ ‹–‡”‡•–Ǥ †‡ˆ‹‡• —Ž’ƒ„‹Ž‹–›ƒ””‘™Ž›ǡ‡•—”‹‰–Šƒ––Š‡ƒ —•‡†™‹ŽŽ‘ ˜‹ –‡†‹–Š‡ƒ„•‡ ‡‘ˆƒˆ”ƒ—†—Ž‡–• Š‡‡‘”ˆ‘”ƒ™Š‘ŽŽ›‹ ‡– „”‡ƒ Š ‘ˆ –Š‡ Žƒ™Ǥ ‘”‡‘˜‡”ǡ ‹– Ž‹‹–• —Ž’ƒ„Ž‡ –Š‡ ‘†— – •–ƒ–—–‡ǯ• ”‡ƒ Š „‡ ƒ—•‡ ƒ ‡”‡„”‡ƒ Š‘ˆˆ‹†— ‹ƒ”›†—–›†‘‡•‘– ‘•–‹–—–‡ƒ ”‹‡™‹–Š‘—––Š ˆƒ‹Ž—”‡ –‘ †‹• Ž‘•‡ ƒ ‹–‡”‡•– •‹–‡ ‹–‡– –‘ †‡ˆ”ƒ—†Ǥ ˆ‘—†–Š‹•†‹•–‹ –‹‘„‡ ƒ—•‡–Š‡›–‡†–‘—•‡–Š‡–‡”•Dz†‡ˆ” Dz†‡ ‡‹˜‡dz‹–‡” Šƒ‰‡ƒ„Ž›Ǥ  ͳͺ͵Ǥ    ͳͺʹǤ ‘‘Š”ǡ ͸ͳͺ ”‡“—‹”‡• ‘– ‘Ž› –Š‡ ‰‡‡”ƒŽ ‹–‡– –‘ †‡ ‡‹˜‡ǡ‹–‡––‘ ƒ—•‡–Š‡”‡•—Ž–‘ˆ†‡ˆ”ƒ—†‹‰ƒ‘–Š‡”Ǥ „—– ƒŽ•‘ –Š‡ • ͳͶǦ •–ƒ–‡‡–•ǡƒ†•‘ˆ‘”–ŠȄƒŽ–Š‘—‰Š†‡ ‡’–‹˜‡Ȅ†‘‡•‘–‡•–ƒ„Ž‹•Š ‹ˆ‹ ‹–‡–—Ž‡••‹–’‡”•—ƒ†‡•–Š‡ˆ‹†‡”‘ˆˆƒ ––Šƒ––Š‡ƒ ™‹–Š–Š‡’—”’‘•‡–‘†‡ˆ”ƒ—†Ǥ Šƒ”ˆƒ‹Ž•–‘‡•—”‡–Šƒ––Š‡•–ƒ–—–‡”‡ƒ Š‡•–Š‡ˆ—ŽŽ”ƒ‰‡‘ˆ ‘†— –Ǥ ‹”•–ǡ”‡“—‹”‹‰ƒ‘ˆˆ‹ ‡”–‘ƒ –™‹–Š–Š‡’—”’‘•‡‘ˆ Šƒ” ‹• ƒ””‘™‡” –Šƒ ‡”‡Ž› ƒ†‘’–‹‰ Šƒ” ƒ•„‡ ƒ—•‡ ƒ ƒ• Ž‹‹–‹‰ ƒ ’”‹ ‹ •–ƒ–‡Ǧ‘ˆǦ‹† ”‡“—‹”‡‡–ǡ ”ƒ–Š‡” –Šƒ ƒ ˆƒ –—ƒŽ–‹‘ǡ‹–‹•‘”‡†‹ˆˆ‹ —Ž––‘‡•–ƒ„Ž‹•ŠǤŠ‡Šƒ”‹•”‡“—‹”‡† Ž ‹‰ ’”‹ ‹’Ž‡ǡ ‹– ”‡ˆŽ‡ –• ƒ ˜ƒŽ—‡ Œ—†‰‡– –Šƒ–™‘”–Š› ƒ ‘ˆ ˜‹ –‹Ž‡•• ”‹‹ƒŽ ƒ •ƒ –‹‘Ǥ ‘™‡˜‡”ǡ ™Š‡ ‹–‡– –‘–Š‡ ƒ—•‡ Šƒ” ƒ’’ƒ”‡–ǡ ƒ ’”‘•‡ —–‘” —•– –ƒ‡ –Š‡ ƒ††‹–‹‘ƒŽ •–‡’–Š‡ƒ —•‡†‹–‡†‡†•— ŠŠƒ”Ǥ ‘ˆ ’”‘˜‹‰ Š‘™–Š‡‹–‡–‡Ž‡‡–‘ˆˆ”ƒ—† ƒ„‡‡•–ƒ„Ž‹•Š‡†Ǥ –‡––‘† †—–›™‘”•ƒ ”‹‹ƒŽˆ”ƒ—†Ǥdz  ͳͺͶǤ   ͳͺͷǤ   ͳͺ͸Ǥ ‹–‡†–ƒ–‡•˜Ǥ ‡‘”‰‡ǡͶ͹͹ Ǥʹ†ͷͲͺǡͷͳʹȋ͹–Š‹”Ǥͳͻ͹ ͳͺ͹Ǥ‘ˆˆ‹ ‡”• ‘” Š‡ †‹”‡ –‘”•ǡ ˆ‹ƒ ‹ƒŽ ‹–‡”‡•– ™Š‹Ž‡ ƒ– ‘ ‹••—‡ ƒŽ•‘ •— Š‡•–‘”ƒ–‹‘ –ǡ —•– Ž‹‹–ƒ–‹‘ ‡‡– ƒ’’Ž‹‡• ƒ ‹‹— –‘ ’—„Ž 33531-ckt_88-2 Sheet No. 174 Side B 05/13/2013 14:40:30 B 05/13/2013 174 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 175 Side A 05/13/2013 14:40:30     –‘ •ˆ—Ž ˆƒ – ‹ƒ”› ‹˜‡Ž› ͻǣ͵ͺ ƒŽ‹‰ Ž†„‡  ‹•‡–‘ –‡–Š‡ •ˆ‹†—Ǧ ‹ˆ‡†Ǧ ‡ˆ‹– ƒ  ƒ—•‡• ™‘”†•Ǥ ŽŽ‘™‹‰ †›ƒ”Ǧ Š‡•–ƒ–Ǧ †’”‘•‡Ǧ ‡‰ƒ‹–‘ Ǥ ‡•˜‹‘ŽƒǦ ‡‰ƒ‰‡‹ –‘ ‘˜‹ –ƒ’‡”Ǧ ƒ‘ˆˆ‹ ‡”‘”  †‡ˆ”ƒ—†dzȌǢ ‹–‡† –ƒ–‡• ˜Ǥ  ͸ͳͻ ƒ—†”‡“—‹”‡•ƒ•’‡ ‹ˆ‹ ‹–‡––‘ FRAUD   ƒ•‡Žƒ™ǡ™Š‹Ž‡”‡ ‘‰‹œ‹‰–Š‡ Dz‡ˆ”ƒ—†dz‡ƒ•Dz–‘†‡’”‹˜‡‘ˆ   –‡––‘ ƒ—•‡’‡ —‹ƒ”›Šƒ”‹• SERVICES   –‡––‘†‡ˆ”ƒ—† ƒƒŽ•‘„‡‹Ǧ ͳͺͺ ͳͺͻ ͳͻͲ   Skilling Š––’ǣȀȀ™™™Ǥ‡””‹ƒǦ™‡„•–‡”Ǥ ‘Ȁ†‹ –‹‘ƒ”›Ȁ†‡ˆ”ƒ—† HONEST    ǡ  Ǥ  Ȍ ͷȀ͹ȀʹͲͳ͵ REDEFINING Ǧ       ƒ”– ǤǤʹǤ   ‡Ž‡‡–‘ˆƒ‹Žˆ”ƒ—†Ǥ Œ—”‹•’”—†‡ ‡Ǥ Š‡ ‘—”–• Šƒ˜‡ ‘•‹†‡”‡† ƒ† ƒ’’Ž‹‡† ǡ ǡ‹–‡†–ƒ–‡•˜Ǥƒ›‡”ǡͷͷ Ǥ͵†ͷ͸Ͷǡͷ͸ͺȋͳͳ–Š‹”ǤͳͻͻͷȌȋDz ȋ  e.g. rea supra     Ǥ  See See, Defraud Ǧ Ž–Š‘—‰Š ‹– ‘†‹ˆ‹‡• ƒ Š‘‡•– •‡”˜‹ ‡• †‘ –”‹‡ –Šƒ– †‡˜‡Ž‘’‡† •–‡ƒ† ‘ˆ ”‡“—‹”‹‰ ‹–‡– –‘ ƒ—•‡ Šƒ”ǡ –Š‡  •Š‘—Ž† ƒ†Ǧ mens  ˆ‡””‡† –Š”‘—‰Š ’”‘˜‹‰ ‹ŽŽ‡‰‹–‹ƒ–‡ ‰ƒ‹ƒ–‡”‹ƒŽ‹ˆ‘”ƒ–‹‘ǡ„—––Š‡ ˆ—”–Š‡””‡•–”‹ –•–Š‹•ƒŽ”‡ƒ ‘” ˆƒŽ•‹ˆ›‹‰ ‘” ‘ ‡ ”‘™†‡ˆ‹‹–‹‘‘ˆ —Ž’ƒ„‹Ž‹–›Ǥ•ƒ”‡•—Ž–‘ˆ–Š‹•”‡•–”‹ –‹‘ǡ †‹”‡ –‘”™Š‘‹–‡†•–‘†‡ˆ”ƒ—†Š‹•‡’Ž‘›‡”ƒ›‘—–ƒ•— ‡• †‡ˆ‡•‡ ‹ ‡•–ƒ„Ž‹•Š‹‰ –Šƒ– Š‡ ‹–‡†‡† Š‹•’‡”•‘ƒŽ •‡ŽˆǦ†‡ƒŽ‹‰ ˆ‹ƒ ‹ƒŽ –‘ ‹–‡”‡•– „‡ ™‹–Š‘—– Š—”–‹‰ Š‹• ‡’Ž‘›‡”Ȅ‡ˆˆ‡ – ‡ƒ‹‰–Šƒ–•‡ŽˆǦ†‡ƒŽ‹‰‹•‘–‹ŽŽ‡‰ƒŽ™Š‡‡˜‡”›„‘†›’”‘ˆ‹–• ȋŽƒ•–˜‹•‹–‡† ‡„ǤʹͷǡʹͲͳ͵ȌǤ  ͳͻͲǤ  Œ—•–‘‡™ƒ›‘ˆ•Š‘™‹‰–Šƒ––Š‡ƒ —•‡†‹–‡†‡†–‘†‡’”‹˜‡Š‹ ‹ƒ”› ‘ˆ •‘‡–Š‹‰ „› †‡ ‡’–‹‘Ǥ •‘‡–Š‹‰„›†‡ ‡’–‹‘‘”ˆ”ƒ—†Ǥdz   ͳͺͺǤ  ʹͲͳ͵Ȑ –Š‡ ͳͶǦ ‘˜‡”†‡ ƒ†‡•‘ˆ ƒ•‡Žƒ™ǡȚͳ͵Ͷ͸ ‘•‹•–•‘ˆƒ‡”‡–™‡–›Ǧ‡‹‰Š– –Š‡•‡ Ž‹‹–‹‰ ’”‹ ‹’Ž‡• ‹ ƒ —Ž–‹–—†‡’ƒ––‡”•ǡƒ†Šƒ˜‡ ƒ”‡ˆ—ŽŽ› ‘•‹†‡”‡†™Š‡–Š‡”‹• ‘†— –•Š‘— ‘ˆ ‘‘Ž› ‘ —””‹‰ ‘•‹†‡”‡† ”‹‹ƒŽˆ”ƒ—†‹‡ƒ Š ƒ•‡Ǥ‘‰”‡•••Š‘—Ž††‡Ž‹‡ƒ –™‘ƒŽ–‡”ƒ–‹˜‡ ƒ–‡‰‘”‹‡•‘ˆ ‘†— ––Šƒ–Šƒ˜‡„‡‡ˆ‘—†–‘” †”‡••„‘–ŠŽ‹‹–‹‰’”‹ ‹’Ž‡•‘ˆ‰ƒ‹ƒ†Šƒ””‡ ‘‰‹œ‡†™‹–Š ‡”ƒŽ ‹” —‹– •‘ ‘ˆ ƒ‹Ž ˆ”ƒ—†ǡ –Š‡ ‰‘˜‡”‡– —•– ’”‘˜‡ •’‡ ‹ˆ‹  ‹–‡– –‘ ”‘•–‘ǡ͸ͷͺ Ǥʹ†ͻʹͲǡͻʹ͹ȋʹ†‹”ǤͳͻͺͳȌȋ‘–‹‰–Šƒ–ƒ‹Žˆ”†‡ˆ”ƒ—†ȌǤ  ͳͺͻǤ  — Š ‡ ‘‘› ‘ˆ Žƒ‰—ƒ‰‡ Ž‡† Šƒ”‰‹‰ ”‹‹ƒŽ –‘ ‘†— – ™‹†‡ ƒ• ’”‘•‡ —–‘”‹ƒŽ ™‡ŽŽ ƒ• †‹• ”‡–‹‘ ›”‹ƒ† ‹ Œ—†‹ ‹ƒŽ ƒ’’”‘ƒ Š‡• –Š‡Ž‡˜‡Ž‘ˆ ”‹‹ƒŽˆ”ƒ—†ǤŠ—•ǡ–Š‡ •Š‘—Ž†”‡“—‹”‡ˆ”ƒ— —–‡†ƒ•—†‹• Ž‘•‡†•‡ŽˆǦ†‡ƒŽ‹‰–‘•Š‘™‘‡‘”„‘–Š‘ˆ–Š‡ˆ‘ ‡Ž‡‡–•ǣȋͳȌ–Š‡ ‘†— –‘ˆ–Š‡ƒ —•‡†”‡•—Ž–•‹‹ŽŽ‡‰‹–‹ƒ– –Š‡ƒ —•‡†‘”ƒ–Š‹”†’ƒ”–›Ǣ‘”ȋʹȌ–Š‡ ‘†— –‘ˆ–Š‡ƒ —•‡† Šƒ” –‘ –Š‡ ƒŽŽ‡‰‡† ˜‹ –‹Šƒ”‘”Šƒ””‡•—Ž–‹‰ˆ”‘–Š‡ˆƒ‹Ž—”‡‘ˆƒ’—„Ž‹ ‘ˆˆ‹ ‹ƒŽ–‘ ‘ˆ –Š‡ ˆ”ƒ—†ǡ ‹ Ž—†‹‰ ‡‹–Š‡”†‹•‹–‡”‡•–‡††‡ ‹•‹‘Ǧƒ‹‰Ǥ  Ž—†‹‰–Š‡•‡Ž‹‹–ƒ–‹‘•‹– ’‡ — —–‡’”‡•‡”˜‡•–Š‡„—Ž‘ˆ’”‡Ǧ ˜ƒ”‹ƒ–‹‘‹ˆƒ –’ƒ––‡”•–Šƒ–Šƒ˜‡‰‹˜‡”‹•‡–‘Š‘‡•–•‡”˜‹ –‹‘•Ǥ 33531-ckt_88-2 Sheet No. 175 Side A 05/13/2013 14:40:30 A 05/13/2013 175 Side Sheet No. 33531-ckt_88-2 33531-ckt_88-2 Sheet No. 175 Side B 05/13/2013 14:40:30 ‡   ͻǣ͵ͺ Ǥ Š‡  ‘Œ—Ǧ ‰”‡•• ƒ Ž‡ƒ” ‡‘–‹ ‡ –•‡”˜‹ ‡• —•–‡”Ǥ  ȏ‘Žͺͺǣʹ REVIEW  LAW  KENT Ǧ CHICAGO Ȍ ͷȀ͹ȀʹͲͳ͵      ȋ  Ǥ †‡ ‹•‹‘ Šƒ• ’”‘˜‹†‡† ‘‰”‡•• ™‹–Š ƒ ‘’’‘”–—‹–› –‘ ”‡ƒ•Ǧ   Ǧ   ͸ʹͲ ”‡‹‰ ‹ ‡˜‡”Ǧ‡š’ƒ†‹‰ ƒ† ‡˜‘Ž˜‹‰ ƒ’’Ž‹ ƒ–‹‘ ‘ˆSkilling –Š‡ •–ƒ–—–‡ ͳͶǦ •‡••‹–• ‘ ‡’–‹‘‘ˆ™Šƒ– ‘†— –”‹•‡•–‘–Š‡Ž‡˜‡Ž‘ˆŠ‘‡• ˆ”ƒ—†ǡƒ†–‘ ”ƒˆ–ƒ‡™•–ƒ–—–‡–Šƒ–‰‹˜‡•–Š‡’—„Ž‹ ƒ†‡“—ƒ– ‘ˆ ™Šƒ– ‘†— – ‹• ‘†‡‡† —†‡” –Š‡–Š‹•‘’’‘”–—‹–›–‘Ž‡ƒ”ˆ”‘’ƒ•–‹•–ƒ‡•ƒ†‘Ž‘‰‡””‡Ž› Žƒ™Ǥ ‘‰”‡•• •Š‘—Ž† –ƒ †‹ ‹ƒŽ ‰Ž‘•• –‘ †‡ˆ‹‡ –Š‡ ‘–‘—”• ‘ˆ•Š‘—Ž††”ƒ™‘–Š‡„‘†›‘ˆ”‡ƒ•‘‡†Œ—†‹ ‹ƒŽƒƒŽ›•‹•–‘ ”ƒˆ– ”‹‹ƒŽ Žƒ™Ǥ ƒ–Š‡”ǡ ‘ ƒ†’”‡ ‹•‡Š‘‡•–•‡”˜‹ ‡••–ƒ–—–‡–Šƒ–’ƒ••‡• ‘•–‹–—–‹‘ƒŽ 33531-ckt_88-2 Sheet No. 175 Side B 05/13/2013 14:40:30 B 05/13/2013 175 Side Sheet No. 33531-ckt_88-2