Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
81,7('67$7(6',675,&7&2857
6287+(51',675,&72)1(:<25.
3(75Ï/(26'(9(1(=8(/$6$3'96$
3(75Ï/(26$DQG3'9+2/',1*,1&
3ODLQWLIIV
DJDLQVW &LY1RBBBBBBBBBBB
08)*81,21%$1.1$DQG*/$6$0(5,&$6 &203/$,17)25
//& '(&/$5$725<$1'
,1-81&7,9(5(/,()
'HIHQGDQWV
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 2 of 31
3HWUyOHRVGH9HQH]XHOD6$³3'96$´SURQRXQFHG³3('DYHVD´3'96$3HWUyOHR
3'96$DQG3'96$3HWUyOHRWKH³3ODLQWLIIV´WKURXJKWKLVFRPSODLQWDJDLQVW08)*8QLRQ
1$785(2)7+($&7,21
7KLVLVDQDFWLRQIRUGHFODUDWRU\DQGLQMXQFWLYHUHOLHI3ODLQWLIIVVHHNDMXGJPHQW
GHFODULQJWKDWFHUWDLQQRWHVLVVXHGE\3'96$SXUSRUWHGO\JXDUDQWHHGE\3'96$3HWUyOHRDQG
SXUSRUWHGO\VHFXUHGE\DSOHGJHRIFROODWHUDOIURP3'9+ROGLQJDVGHILQHGPRUHIXOO\EHORZ
WKH³1RWHV´DVZHOODVWKHUHODWHGLQGHQWXUHDQGSOHGJHDJUHHPHQWDUHLQYDOLGLOOHJDOQXOO
DQGYRLGab initioDQGWKXVXQHQIRUFHDEOH3ODLQWLIIVDOVRVHHNDQLQMXQFWLRQSHUPDQHQWO\
HQMRLQLQJDQ\H[HUFLVHRISXUSRUWHGULJKWVUHPHGLHVRUSULYLOHJHVZLWKUHVSHFWWRWKH1RWHV
RUWKHSXUSRUWHGO\SOHGJHGFROODWHUDO²RI3'9+ROGLQJ¶VVKDUHVRI&,7*2+ROGLQJV,QF
86EDVHGRLOUHILQHU
3'96$LVDVWDWHRZQHGHQWHUSULVHRIWKH%ROLYDULDQ5HSXEOLFRI9HQH]XHOD
³9HQH]XHOD´ZKLFKPDQDJHVDQGRYHUVHHVDOORI9HQH]XHOD¶VRLODQGJDVRSHUDWLRQV3'96$
3HWUyOHRDQG3'9+ROGLQJDUHZKROO\RZQHGVXEVLGLDULHVRI3'96$3'9+ROGLQJLQWXUQ
RZQV&,7*27KHRLOLQGXVWU\KDVORQJEHHQWKHSULPDU\GULYHURI9HQH]XHOD¶VHFRQRP\ZKLFK
KDVFRPSOHWHO\FROODSVHGGXHWRWKHGLVDVWURXVSROLFLHVRI+XJR&KiYH]DQG1LFRODV0DGXUR
OHDGLQJWRDKXPDQLWDULDQFULVLVRIHSLFSURSRUWLRQV&,7*2LVFULWLFDOO\LPSRUWDQWWRDQ\
HFRQRPLFUHFRYHU\DQGDOOHYLDWLRQRIKXPDQVXIIHULQJLQ9HQH]XHOD
:KHQWKH1RWHVZHUHLVVXHGLQ3'96$ZDVFRQWUROOHGE\0DGXUR
WKH&KiYH]SURWpJpZKREHFDPHSUHVLGHQWRI9HQH]XHODDIWHU&KiYH]¶VGHDWKLQ$IWHUD
ULJJHGHOHFWLRQLQLQZKLFK0DGXURLOOHJLWLPDWHO\FODLPHGYLFWRU\9HQH]XHOD¶V
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 3 of 31
GHPRFUDWLFDOO\HOHFWHG1DWLRQDO$VVHPEO\GHFODUHGWKHSUHVLGHQF\YDFDQWDQGLQDFFRUGDQFH
ZLWKWKH9HQH]XHODQ&RQVWLWXWLRQWKHSUHVLGHQWRIWKH1DWLRQDO$VVHPEO\-XDQ*XDLGyEHFDPH
WKHFRXQWU\¶VLQWHULPSUHVLGHQW*XDLGyKDVVLQFHEHHQUHFRJQL]HGE\WKH86DQGRYHUILIW\
RWKHUQDWLRQVDVWKHULJKWIXO3UHVLGHQWRI9HQH]XHOD
)RUPRUHWKDQDGHFDGHWKH&KiYH]UHJLPHVTXDQGHUHGPXFKRI9HQH]XHOD¶VRLO
UHYHQXHVRQSROLWLFDOSDWURQDJHDQGRWKHUZDVWHIXOHQGHDYRUVZKLOHXQGHULQYHVWLQJLQ3'96$¶V
GRPHVWLFSURGXFWLRQDQGUHILQLQJFDSDFLWLHV:KHQFKURQLFPLVPDQDJHPHQWDQGQHJOHFWPHW
ZLWKIDOOLQJRLOSULFHVLQRLOUHYHQXHVSOXPPHWHG%XWWKH0DGXURUHJLPHFRQWLQXHGWR
SXUVXHWKHSROLFLHVWKDWOHGWR3'96$¶VILQDQFLDOXQGRLQJLQFOXGLQJFRQWLQXHGSULRULWL]DWLRQRI
GHEWVHUYLFHRYHUFULWLFDOLQYHVWPHQWVDQGRSHUDWLRQDOH[SHQGLWXUHVDQGLVVXDQFHRI
XQVXVWDLQDEO\H[SHQVLYHGHEW7KLVRGLRXVERUURZLQJLQFOXGHGWKHLVVXDQFHE\3'96$RI
%\PLGLWZDVEHFRPLQJFOHDUWKDW3'96$GLGQRWKDYHWKHPRQH\WRUHSD\
WKH1RWHVDQGDGHIDXOWZRXOGKDYHVSHOOHGSROLWLFDOGLVDVWHUIRU0DGXUR7RVWDYHRII
GHIDXOWWKH0DGXURUHJLPHXQLODWHUDOO\DQGLOOHJDOO\RUFKHVWUDWHGDQH[FKDQJHRIIHUE\ZKLFK
3'96$H[FKDQJHGWKH1RWHV±ZKLFKZHUHXQVHFXUHGDQGLVVXHGLQORFDOFXUUHQF\±IRU
WKH1RWHVZKLFKZHUHLVVXHGLQ86GROODUVDVGHVFULEHGPRUHIXOO\EHORZWKH³([FKDQJH
2IIHU´:KLOH3'9+ROGLQJLVQRWDSDUW\WRWKHLQGHQWXUHJRYHUQLQJWKH1RWHVDQGKDV
QRREOLJDWLRQWRUHSD\WKHP3'9+ROGLQJ¶VSULQFLSDODVVHW²WKH&,7*26KDUHV²ZHUH
SXUSRUWHGO\SOHGJHGWRVHFXUH3'96$¶VGHEW
7KHKROGHUVZKRDFFHSWHGWKLVSURSRVDOSURYLGHGWKH0DGXURUHJLPHZLWKD
ILQDQFLDODQGSROLWLFDOOLIHOLQH:RUVH\HWWKHVHKROGHUVGLGVRNQRZLQJWKDWWKH([FKDQJH2IIHU
ZDVLQLWLDWHGZLWKRXWWKHUHTXLUHGDXWKRUL]DWLRQRIWKH1DWLRQDO$VVHPEO\,QIDFWZKHQWKH
WUDQVDFWLRQZDVDQQRXQFHGWKH1DWLRQDO$VVHPEO\GHFODUHGLWLOOHJDODQGFDOOHGIRUDQ
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 4 of 31
LPPHGLDWHLQYHVWLJDWLRQ±DQLQYHVWLJDWLRQWKDWZDVSURPSWO\TXDVKHGE\WKH0DGXURFRQWUROOHG
&RQVWLWXWLRQDO&KDPEHURIWKH6XSUHPH7ULEXQDORI9HQH]XHODWKH³9HQH]XHODQ6XSUHPH
7ULEXQDO´
8QGHUWKH9HQH]XHODQ&RQVWLWXWLRQWKH1RWHVWKHLQGHQWXUHSXUVXDQWWR
VHFXULW\DJUHHPHQWSXUVXDQWWRZKLFKWKHQRWHVZHUHSXUSRUWHGO\VHFXUHGDVGHVFULEHGPRUH
IXOO\EHORZWKH³3OHGJH$JUHHPHQW´DUHFRQWUDFWVLQWKHQDWLRQDOSXEOLFLQWHUHVWDQGWKHUHIRUH
UHTXLUHGDXWKRUL]DWLRQE\WKH1DWLRQDO$VVHPEO\%HFDXVHWKH\ZHUHQRWDXWKRUL]HGE\WKH
1DWLRQDO$VVHPEO\WKH\DUHLQYDOLGLOOHJDOQXOODQGYRLGab initioXQGHUDSSOLFDEOH9HQH]XHODQ
ODZ$VVHWIRUWKEHORZWKHODFNRI1DWLRQDO$VVHPEO\DXWKRUL]DWLRQZDVZLGHO\UHSRUWHGDWWKH
WLPHRIWKH([FKDQJH2IIHU
%RDUG´DSSRLQWHGSXUVXDQWWRDGHFUHHRI,QWHULP3UHVLGHQW*XDLGyDQGUHFRJQL]HGE\WKH86
JRYHUQPHQWDQG86FRXUWVDVWKHRQO\OHJLWLPDWHFRUSRUDWHERG\ZLWKDXWKRULW\WRJRYHUQLWV
DIIDLUV7KH$G+RF%RDUGKDVLQWXUQDSSRLQWHGQHZERDUGVRILWVVXEVLGLDULHVLQFOXGLQJ3'9
+ROGLQJ2QDFFRXQWRIWKHLOOHJDO([FKDQJH2IIHURUFKHVWUDWHGE\WKH0DGXURUHJLPH3'9
+ROGLQJLVQRZIDFLQJWKHORVVRILWVFRQWUROOLQJLQWHUHVWLQ&,7*2
2Q2FWREHU3'96$GLGQRWPDNHDPLOOLRQSULQFLSDODQGLQWHUHVW
SD\PHQWSXUSRUWHGO\GXHRQWKH1RWHVWULJJHULQJDQ(YHQWRI'HIDXOW/DVWZHHNLQ
DQWLFLSDWLRQRIWKLVSRVVLELOLW\WKH86LVVXHG*HQHUDO/LFHQVH$IRUELGGLQJ'HIHQGDQWVIURP
H[HUFLVLQJGHIDXOWUHPHGLHVXQWLO-DQXDU\8QOHVVWKLV&RXUWJUDQWVWKHUHOLHIVRXJKWLQ
WKLVDFWLRQE\WKDWWLPH&,7*2ZLOOEHORVWDQGWKH*XDLGyJRYHUQPHQW¶VHIIRUWVWRUHVWRUH
GHPRFUDF\DQGWKHUXOHRIODZUHEXLOG9HQH]XHOD¶VHFRQRP\DQGDPHOLRUDWHWKHFRXQWU\¶V
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 5 of 31
RQJRLQJKXPDQLWDULDQFULVLVZLOOVXIIHUDGHYDVWDWLQJEORZ$FFRUGLQJO\3ODLQWLIIVVHHN
GHFODUDWRU\DQGLQMXQFWLYHUHOLHIWRDYRLGWKLVFDVFDGHRILUUHSDUDEOHKDUPV
3$57,(6
3ODLQWLII3'96$LVD9HQH]XHODQFRUSRUDWLRQZLWKLWVSULQFLSDOSODFHRIEXVLQHVV
LQ&DUDFDV9HQH]XHOD$VPDQGDWHGE\$UWLFOHRIWKH9HQH]XHODQ&RQVWLWXWLRQ9HQH]XHOD
UHWDLQVDOOVKDUHVRI3'96$DVWKH³ERG\FUHDWHGWRPDQDJH>9HQH]XHOD¶V@SHWUROHXPLQGXVWU\´
3ODLQWLII3'96$3HWUyOHRLVD9HQH]XHODQFRUSRUDWLRQZLWKLWVSULQFLSDOSODFHRI
EXVLQHVVLQ&DUDFDV9HQH]XHOD
3ODLQWLII3'9+ROGLQJLVD'HODZDUHFRUSRUDWLRQZLWKLWVSULQFLSDOSODFHRI
EXVLQHVVLQ+RXVWRQ7H[DV
'HIHQGDQW8QLRQ%DQNLVD86QDWLRQDOEDQNLQJDVVRFLDWLRQZLWKLWVPDLQRIILFH
LQ&DOLIRUQLDDQGDQRIILFHLQ1HZ<RUN&LW\8QLRQ%DQNLVWKH7UXVWHHXQGHUWKH,QGHQWXUH
DQGWKH3OHGJH$JUHHPHQWDQGLQWKDWFDSDFLW\UHSUHVHQWVWKHLQWHUHVWVRIWKHKROGHUVDQG
EHQHILFLDOKROGHUVRIWKH1RWHV
'HIHQGDQW*/$6$PHULFDVLVD1HZ<RUNOLPLWHGOLDELOLW\FRPSDQ\WKDWXSRQ
LQIRUPDWLRQDQGEHOLHIKDVDVLQJOHPHPEHUWKDWLVRUJDQL]HGXQGHU(QJOLVKODZDQGKDVLWV
SULQFLSDOSODFHRIEXVLQHVVLQ/RQGRQ(QJODQG*/$6$PHULFDVLVWKH&ROODWHUDO$JHQWXQGHU
WKH,QGHQWXUHDQGWKH3OHGJH$JUHHPHQW
-85,6',&7,21$1'9(18(
7KLV&RXUWKDVVXEMHFWPDWWHUMXULVGLFWLRQRYHUWKLVDFWLRQSXUVXDQWWR86&
DEHFDXVHWKHDPRXQWLQFRQWURYHUV\H[FHHGVH[FOXVLYHRILQWHUHVWDQGFRVWV
DQGLWLVDQDFWLRQEHWZHHQFLWL]HQVRIGLIIHUHQW6WDWHV3'9+ROGLQJDVSODLQWLIIDQG8QLRQ%DQN
&RQVWLWXWLRQRIWKH%ROLYDULDQ5HSXEOLFRI9HQH]XHODDUWWUDQVODWHG([$
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 6 of 31
DVGHIHQGDQWLQZKLFKFLWL]HQVRUVXEMHFWVRIIRUHLJQVWDWHV3'96$3'96$3HWUyOHRDQG
*/$6$PHULFDVDUHDGGLWLRQDOSDUWLHV
7KLV&RXUWKDVSHUVRQDOMXULVGLFWLRQRYHUWKHGHIHQGDQWVEHFDXVHWKH\FRQVHQWHG
WRWKHMXULVGLFWLRQRIWKLV&RXUWLQWKH,QGHQWXUHDQGWKH3OHGJH$JUHHPHQWDQGEHFDXVHWKH\
PDLQWDLQRIILFHVLQWKLVGLVWULFW
VXEVWDQWLDOSDUWRIWKHHYHQWVJLYLQJULVHWRWKLVFRPSODLQWRFFXUUHGKHUHDQGEHFDXVHDOOSDUWLHVWR
WKH,QGHQWXUHDQGWKH3OHGJH$JUHHPHQWZDLYHGDQ\REMHFWLRQWRWKHOD\LQJRIYHQXHLQWKLV
&RXUW
%$&.*5281'
, 7KH%ROLYDULDQ5HSXEOLFRI9HQH]XHOD
9HQH]XHODLVDVRYHUHLJQVWDWHRQWKHQRUWKHUQFRDVWRI6RXWK$PHULFD&RORQL]HG
E\6SDLQLQ9HQH]XHODJDLQHGIXOOLQGHSHQGHQFHLQ,Q9HQH]XHODEHFDPHD
IHGHUDOSUHVLGHQWLDOUHSXEOLFZLWKGHPRFUDWLFHOHFWLRQV6LQFHWKHGLVFRYHU\RIRLOLQ9HQH]XHOD
LQWKHHDUO\WKFHQWXU\9HQH]XHOD¶VHFRQRP\KDVEHFRPHLQFUHDVLQJO\GHSHQGHQWRQRLO
H[SRUWV9HQH]XHODKDVRQHRIWKHODUJHVWNQRZQRLOUHVHUYHVLQWKHZRUOGDQGKDVEHHQRQHRI
WKHZRUOG¶VOHDGLQJH[SRUWHUVRIRLOIRUPDQ\GHFDGHV
,QWKHVDQGVRLOUHODWHGHFRQRPLFFULVHVOHGWRSROLWLFDOXSKHDYDO
LQFOXGLQJWZRFRXSDWWHPSWVLQDQGZLGHVSUHDGGLVLOOXVLRQPHQWZLWKWKHH[LVWLQJSROLWLFDO
SDUWLHVZLWQHVVHGWKHHOHFWLRQRI+XJR&KiYH]DQGWKHEHJLQQLQJRIWKH%ROLYDULDQ
XVKHULQVRFLDOLVPDQGDVWDWHUXQHFRQRP\,Q9HQH]XHODUDWLILHGDQHZFRQVWLWXWLRQ
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 7 of 31
&KiYH]GLHGLQVKRUWO\DIWHUEHJLQQLQJKLVIRXUWKWHUPLQRIILFH+HZDV
VXFFHHGHGE\KLV9LFH3UHVLGHQW1LFRODV0DGXURZKRZRQDQHOHFWLRQIROORZLQJ&KiYH]¶V
GHDWKDQGODWHUFODLPHGYLFWRU\LQDHOHFWLRQGHFODUHGLOOHJLWLPDWHE\WKH1DWLRQDO
$VVHPEO\$VGLVFXVVHGPRUHIXOO\EHORZ9HQH]XHODQRZILQGVLWVHOILQWKHXQLTXHSRVLWLRQRI
KDYLQJDOHJLWLPDWHJRYHUQPHQWZKLOHDQLOOHJLWLPDWHRQH²WKH0DGXURUHJLPHZKLFKLV
UHFRJQL]HGRQO\E\5XVVLD&KLQD,UDQ&XEDDQG7XUNH\²VWLOOFRQWUROVSDUWVRIWKH6WDWH
)URPWKH86VWDQGSRLQWKRZHYHUWKHJRYHUQPHQWOHGE\3UHVLGHQW*XDLGyDQGWKH1DWLRQDO
$VVHPEO\LVWKHRQO\OHJLWLPDWH*RYHUQPHQWRI9HQH]XHOD
,, 9HQH]XHOD¶V2QJRLQJ3ROLWLFDO&ULVLV
,QODWHDFRDOLWLRQRI0DGXURRSSRQHQWVLQFOXGLQJ*XDLGyZRQFRQWURORI
9HQH]XHOD¶V1DWLRQDO$VVHPEO\+RZHYHUMXVWEHIRUHWKHQHZOHJLVODWXUHZDVVZRUQLQWKH
0DGXURGRPLQDWHG1DWLRQDO$VVHPEO\SDFNHGWKH9HQH]XHODQ6XSUHPH7ULEXQDOZLWKMXGJHV
OR\DOWR0DGXUR,Q0DUFK0DGXUR¶VWULEXQDOGHFODUHGWKH1DWLRQDO$VVHPEO\LQFRQWHPSW
RIWKH9HQH]XHODQ&RQVWLWXWLRQDQGUXOHGWKDWDOOOHJLVODWLYHSRZHUVYHVWHGLQWKH1DWLRQDO
$VVHPEO\ZRXOGEHWUDQVIHUUHGWRWKHWULEXQDOLWVHOI,QOLJKWRIWKHVHDFWLRQVLQ0D\WKH
86'HSDUWPHQWRI7UHDVXU\VDQFWLRQHGWKHMXGJHVRIWKHWULEXQDO¶V&RQVWLWXWLRQDO&KDPEHU
UHFRJQL]LQJWKDWWKHWULEXQDOZDV³UHVSRQVLEOHIRUDQXPEHURIMXGLFLDOUXOLQJVWKDWKDYH
XVXUSHGWKHDXWKRULW\RI9HQH]XHOD¶VGHPRFUDWLFDOO\HOHFWHGOHJLVODWXUH´
0DGXUR¶VHIIRUWVWRFRQVROLGDWHSRZHUFXOPLQDWHGLQWKHFUHDWLRQRIWKHVRFDOOHG
³&RQVWLWXHQW1DWLRQDO$VVHPEO\´DOR\DOLVWSDUDOOHOOHJLVODWXUHLQ-XO\7KH86VWURQJO\
GHQRXQFHG0DGXUR¶VXVXUSDWLRQRISRZHUUHFRJQL]LQJWKH1DWLRQDO$VVHPEO\DV³WKHRQO\
3UHVV5HOHDVH86'HS
WRIWKH7UHDVXU\7UHDVXU\6DQFWLRQV(LJKW0HPEHUVRI9HQH]XHOD
V6XSUHPH&RXUWRI
-XVWLFH0D\available atKWWSVZZZWUHDVXU\JRYSUHVVFHQWHUSUHVVUHOHDVHV3DJHVVPDVS[
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 8 of 31
OHJLWLPDWHOHJLVODWXUH´LQ9HQH]XHODDQGVDQFWLRQLQJWKH0DGXURUHJLPHIRUWKH³HVWDEOLVKPHQWRI
DQLOOHJLWLPDWH1DWLRQDO&RQVWLWXHQW$VVHPEO\´
1RWTXLWHD\HDUODWHULQ0D\WKH0DGXURGRPLQDWHG&RQVWLWXHQW1DWLRQDO
$VVHPEO\FDOOHGIRUDQHOHFWLRQPRUHWKDQVL[PRQWKVEHIRUHWKHHQGRI0DGXUR¶VWHUP1R
PDMRURSSRVLWLRQSDUW\FDQGLGDWHVSDUWLFLSDWHGEHFDXVHWKH\KDGEHHQMDLOHGRUZHUHOLYLQJLQ
H[LOHDQG0DGXURFODLPHGYLFWRU\RYHUKLVOHVVHURSSRQHQWV%\WKDWWLPH9HQH]XHODZDV³LQ
WKHPLGVWRIDKLVWRULFHFRQRPLFFROODSVHPDUNHGE\VRDULQJSULFHVZLGHVSUHDGKXQJHUUDPSDQW
FULPHDIDLOLQJKHDOWKV\VWHPDQGDODUJHVFDOHH[RGXVRILWVFLWL]HQV´
0DGXURZDVVZRUQLQDV3UHVLGHQWRI9HQH]XHODRQ-DQXDU\E\WKH
LOOHJLWLPDWH1DWLRQDO&RQVWLWXHQW$VVHPEO\)LYHGD\VODWHUWKHRSSRVLWLRQFRQWUROOHG1DWLRQDO
$VVHPEO\LVVXHGDOHJLVODWLYHRUGHUUHLWHUDWLQJWKDW0DGXUR¶VHOHFWLRQZDVLOOHJLWLPDWHXQGHUWKH
9HQH]XHODQ&RQVWLWXWLRQDQGWKDW*XDLGyDVSUHVLGHQWRIWKH1DWLRQDO$VVHPEO\ZRXOGDVVXPH
WKHUROHRI,QWHULP3UHVLGHQWRI9HQH]XHOD2Q-DQXDU\WKH86UHFRJQL]HGWKH
*XDLGyOHG1DWLRQDO$VVHPEO\DV9HQH]XHOD¶VRQO\OHJLWLPDWHGHPRFUDWLFDOO\HOHFWHG
JRYHUQPHQWDQG0U*XDLGyDV9HQH]XHOD¶VOHJLWLPDWHLQWHULPSUHVLGHQW$QXPEHURIRWKHU
FRXQWULHVVRRQIROORZHGVXLWLQUHFRJQL]LQJ*XDLGyDV9HQH]XHOD¶VULJKWIXO,QWHULP3UHVLGHQW
2Q)HEUXDU\WKH1DWLRQDO$VVHPEO\DSSURYHGDQGDGRSWHGD³6WDWXWHWR
*RYHUQD7UDQVLWLRQWR'HPRFUDF\WR5HHVWDEOLVKWKH9DOLGLW\RIWKH&RQVWLWXWLRQRIWKH5HSXEOLF
([HF2UGHU1R)HG5HJ$XJ
:LOOLDP1HXPDQDQG1LFKRODV&DVH\Venezuela Election Won by Maduro Amid Widespread Disillusionment
1<7,0(60D\available atKWWSVZZZQ\WLPHVFRPZRUOGDPHULFDVYHQH]XHOD
HOHFWLRQKWPOsee also 5LFDUGR+DXVPDQQUnderstanding Venezuela’s Collapse7+(+$59$5'*$=(77()HE
available atKWWSVQHZVKDUYDUGHGXJD]HWWHVWRU\KDUYDUGH[SHUWWULHVWRPDNHVHQVHRI
YHQH]XHODVFROODSVHGHVFULELQJ9HQH]XHODDVJRLQJWKURXJK³WKHELJJHVWHFRQRPLFFROODSVHLQKXPDQKLVWRU\
RXWVLGHRIZDURUVWDWHFROODSVH´Venezuela's President Maduro Wins Election but Could Face Sanctions&1%&
0D\available atKWWSVZZZFQEFFRPYHQH]XHODVSUHVLGHQWPDGXURZLQVSUHVLGHQWLDO
YRWHHOHFWLRQERDUGVD\VKWPOGHWDLOLQJ9HQH]XHOD¶VILYH\HDUUHFHVVLRQK\SHULQIODWLRQIDOOLQJRLOSURGXFWLRQDQG
PDVVHPLJUDWLRQ
³865HODWLRQVZLWK9HQH]XHOD±%LODWHUDO5HODWLRQV)DFW6KHHW´available atKWWSVZZZVWDWHJRYXVUHODWLRQV
ZLWKYHQH]XHOD
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 9 of 31
RI9HQH]XHOD´WKH³7UDQVLWLRQ6WDWXWH´7KH7UDQVLWLRQ6WDWXWHSURYLGHGWKDWLQRSSRVLWLRQWR
WKHGLFWDWRULDO0DGXURUHJLPH9HQH]XHODZRXOGHVWDEOLVKDGHPRFUDWLFDOO\HOHFWHGWUDQVLWLRQDO
JRYHUQPHQW7KH7UDQVLWLRQ6WDWXWHDOVRVSHFLILFDOO\YHVWHG3UHVLGHQW*XDLGyZLWKWKHSRZHUWR
UHFRQVWLWXWH3'96$WKURXJKWKHFUHDWLRQRIDQHZad hoc3'96$ERDUGKDYLQJQRUHODWLRQVKLS
ZKDWVRHYHUZLWKWKH0DGXURUHJLPHRUWKHSUHYLRXV0DGXURDSSRLQWHGGLUHFWRUV
,,, 9HQH]XHOD¶V(FRQRPLF&ROODSVHDQG2QJRLQJ+XPDQLWDULDQ&ULVLV
$V3URIHVVRU5LFDUGR+DXVPDQQRI+DUYDUGKDVZULWWHQ9HQH]XHODLVIDFLQJ³WKH
ELJJHVWHFRQRPLFFROODSVHLQKXPDQKLVWRU\RXWVLGHRIZDURUVWDWHFROODSVH´7KLV
XQSUHFHGHQWHGHFRQRPLFFROODSVHKDVLWVURRWVLQWKHSROLWLFDOWXUPRLOWKDWIROORZHG+XJR
&KiYH]¶VHOHFWLRQDV3UHVLGHQWLQ,QDQDWLRQZLGHVWULNHZDVVWDJHGLQDQDWWHPSWWR
IRUFHWKURXJKDFRQVWLWXWLRQDOUHIHUHQGXPE\ZKLFK&KiYH]FRXOGEHUHPRYHGIURPSRZHU7KH
VWULNHIDLOHGDQG&KiYH]ILUHGRYHURLOLQGXVWU\ZRUNHUVLQFOXGLQJPRVWVNLOOHG
PDQDJHPHQWDQGWHFKQLFDOVWDII
,QWKH&KiYH]UHJLPHEHJDQDVXUJHRIH[SURSULDWLRQVLQFOXGLQJMRLQW
YHQWXUHVZLWKIRUHLJQRLOSURGXFHUVDQGPRVWRIWKHGRPHVWLFFRPSDQLHVWKDWSURYLGHGGULOOLQJ
WUDQVSRUWDQGRWKHURLOUHODWHGVHUYLFHVWR3'96$
0HDQZKLOHIURPXQWLOKLJKRLOSULFHVWUDQVODWHGLQWRWKHORQJHVW
ODVWLQJRLOERRPLQ9HQH]XHOD¶VKLVWRU\%XWUDWKHUWKDQLQYHVWVXIILFLHQWO\LQ3'96$WKH
&KiYH]DGPLQLVWUDWLRQVSHQWPXFKRI9HQH]XHOD¶VRLOUHYHQXHVRQPDLQWDLQLQJLWVHOIWKURXJK
SROLWLFDOSDWURQDJHDQGDKRVWRIZDVWHIXOHQGHDYRUVERWKQDWLRQDOO\DQGUHJLRQDOO\$OWKRXJK
RLOSURGXFWLRQGULIWHGGRZQZDUGRYHUWLPHWKHUHJLPH¶VXQGHULQYHVWPHQWLQ3'96$ZDV
5LFDUGR+DXVPDQQ'LUHFWRURIWKH&HQWHUIRU,QWHUQDWLRQDO'HYHORSPHQW+DUYDUG8QLYHUVLW\Understanding
Venezuela’s collapse, 7KH+DUYDUG*D]HWWH)HEavailable at KWWSVQHZVKDUYDUGHGXJD]HWWHVWRU\
KDUYDUGH[SHUWWULHVWRPDNHVHQVHRIYHQH]XHODVFROODSVH³+DXVPDQQ6WDWHPHQW´
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 10 of 31
PDVNHGE\KLJKRLOSULFHVDQGWKHSURGXFWLRQRIMRLQWYHQWXUHVHVWDEOLVKHGE\WKHSULRU
DGPLQLVWUDWLRQWKDWZHUHFRPLQJRQOLQH
$VDUHVXOWRIFKURQLFXQGHULQYHVWPHQWDQGPLVPDQDJHPHQW9HQH]XHOD¶V
GRPHVWLFSURGXFWLRQDQGUHILQLQJFDSDELOLWLHVKDYHEHHQGHFLPDWHGZLWKGRPHVWLFUHILQHULHV
VRPHWLPHVRSHUDWLQJDWOHVVWKDQRIFDSDFLW\GXHWRODFNRIPDLQWHQDQFHDQGVNLOOHG
WHFKQLFDOVWDII,WLVHVWLPDWHGWKDW9HQH]XHODQRLOSURGXFWLRQLVWKHVDPHLQDVLWZDVLQ
DQGKDVGHFOLQHGE\RYHUWKHSDVWWZR\HDUV$VDUHVXOW9HQH]XHOD¶VJURVVGRPHVWLF
SURGXFWKDVIDOOHQDVWDJJHULQJVLQFH7KLVGUDPDWLFGHFUHDVHLQRLOSURGXFWLRQDOVR
OHGWRDVHYHUHVKRUWDJHRIIRUHLJQFXUUHQF\DVWKHHFRQRP\ZDVEHFRPLQJPRUHDQGPRUHUHOLDQW
RQLPSRUWVIRUJRRGVWKDWZHUHQRORQJHUEHLQJSURGXFHGLQ9HQH]XHODGXHWRWKHHIIHFWVRI
H[SURSULDWLRQDQGWKHSUHGDWRU\SROLFLHVRI&KiYH]DQG0DGXUR:LWKIRUHLJQFXUUHQF\LQVKRUW
VXSSO\9HQH]XHODKDVEHHQXQDEOHWRSD\IRUULJVYDOYHVFRPSUHVVRUVDQGVHUYLFHVWRPDLQWDLQ
GRPHVWLFRLOSURGXFWLRQUHILQLQJDQGIXHOVXSSO\
7KHFROODSVHRI9HQH]XHOD¶VHFRQRP\KDVUHVXOWHGLQDKXPDQLWDULDQFULVLVRIHSLF
SURSRUWLRQV0DQ\9HQH]XHODQVODFNDFFHVVWRWKHPRVWEDVLFRIQHFHVVLWLHVLQFOXGLQJIRRGVDIH
GULQNLQJZDWHUDQGFULWLFDOKHDOWKFDUH$FFRUGLQJWRWKH8QLWHG1DWLRQV+LJK&RPPLVVLRQHUIRU
+XPDQ5LJKWV³DVDGLUHFWUHVXOWRIWKLVIDUUHDFKLQJKXPDQULJKWVFULVLVPRUHWKDQPLOOLRQ
SHRSOHKDYHIOHG9HQH]XHODLQVHDUFKRIIRRGKHDOWKFDUHZRUNDQGSURWHFWLRQ´,QDPRUH
UHFHQWVWDWHPHQWWKH8QLWHG1DWLRQV5HIXJHH$JHQF\DQG8QLWHG1DWLRQV+LJK&RPPLVVLRQHU
IRU5HIXJHHVHVWLPDWHGWKDWWKHUHDUHRYHUPLOOLRQ9HQH]XHODQUHIXJHHVDQGPLJUDQWV
6WDWHPHQWE\8QLWHG1DWLRQV+LJK&RPPLVVLRQHUIRU+XPDQ5LJKWV0LFKHOOH%DFKHOHWOral Update on the
Situation of Human Rights in the Bolivarian Republic of Venezuela0DUavailable at KWWSVZZZ
RKFKURUJHQ1HZV(YHQWV3DJHV'LVSOD\1HZVDVS["1HZV,' ³81+&+52UDO6WDWHPHQW´
See6WDWHPHQWE\2IILFHRIWKH8QLWHG1DWLRQV+LJK&RPPLVVLRQHUIRU5HIXJHHV81+&5Refugees and
migrants from Venezuela top 4 million: UNHCR and IOM-XQHavailable at
KWWSVZZZXQKFURUJQHZVSUHVVFIDDDUHIXJHHVPLJUDQWVYHQH]XHODWRSPLOOLRQXQKFULRPKWPO
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 11 of 31
5DPSDQWIRRGVKRUWDJHVDQGK\SHULQIODWLRQKDYHFDXVHGZLGHVSUHDGPDOQXWULWLRQ
DQGVWDUYDWLRQWKURXJKRXWWKHFRXQWU\(LJKWRXWRIWHQ9HQH]XHODQKRXVHKROGVODFNDUHOLDEOH
VRXUFHRIIRRGDQGUHSRUWOLYLQJLQSRYHUW\2QHRXWRIILYHSUHJQDQWZRPHQLQORZ
LQFRPHFRPPXQLWLHVVXIIHUVIURPPRGHUDWHRUDFXWHPDOQXWULWLRQDQGRIDOO
9HQH]XHODQV²DSSUR[LPDWHO\PLOOLRQSHRSOH²DUHXQGHUQRXULVKHGXSIURPOHVVWKDQ
EHWZHHQDQG,QUHFHQW\HDUVWKHDYHUDJH9HQH]XHODQKDVORVWPRUHWKDQWZHQW\
SRXQGVGXHWRGHSULYDWLRQDQGPDOQXWULWLRQ
(LJKW\SHUFHQWRI9HQH]XHODQVFDQQRWDIIRUGEDVLFKHDOWKFDUHDQGHYHQWKRVH
ZLWKWKHPHDQVWRSD\RIWHQFDQQRWDFFHVVWKHFDUHWKH\QHHG1HDUO\RI9HQH]XHOD¶V
KRVSLWDOVUHSRUWLQWHUPLWWHQWSRZHURXWDJHVDQGDODFNRISRWDEOHZDWHU,QWHQVLYHFDUHDQG
VXUJLFDOXQLWVDUHRSHUDWLQJDWDSSUR[LPDWHO\DQGFDSDFLW\UHVSHFWLYHO\DQG
9HQH]XHODQKRVSLWDOVODFNDSSUR[LPDWHO\RIWKHPHGLFDOVXSSOLHVWKH\QHHGWRSURYLGHOLIH
VDYLQJHPHUJHQF\FDUH1HDUO\KDOIRI9HQH]XHODQKRVSLWDOVVXUYH\HGUHSRUWHGUHFHQW
UREEHULHVRIPHGLFDOHTXLSPHQWDQGRQHWKLUGRIDOOKRVSLWDOEHGVDUHXQDYDLODEOHWRSDWLHQWV
+RVSLWDOVKDYHEHHQDVNLQJSDWLHQWV¶IDPLOLHVWREULQJWKHLURZQPHGLFDOVXSSOLHVLQFOXGLQJ
V\ULQJHVDQGVFDOSHOV
+XPDQ5LJKWV:DWFK -RKQV+RSNLQV%ORRPEHUJ6FKRROIRU3XEOLF+HDOWKVenezuela’s Humanitarian
Emergency $SUavailable aWKWWSVZZZKUZRUJVLWHVGHIDXOWILOHVUHSRUWBSGIYHQH]XHODBZHESGI
³+5:5HSRUW´
Id.DW
Id.DW
5emarks by Vice President Pence at the Washington Conference on the Americas0D\available at
KWWSVZZZZKLWHKRXVHJRYEULHILQJVVWDWHPHQWVUHPDUNVYLFHSUHVLGHQWSHQFHZDVKLQJWRQFRQIHUHQFHDPHULFDV
8QLWHG6WDWHV$JHQF\IRU,QWHUQDWLRQDO'HYHORSPHQWVenezuela Regional Crisis)DFW6KHHWDW0DUFK
available atKWWSVZZZXVDLGJRYVLWHVGHIDXOWILOHVGRFXPHQWVYHQH]XHODBUHJLRQDOBFULVLVBIVB
SGI³86$,')DFW6KHHW´
Id.
8QLWHG6WDWHV$JHQF\IRU,QWHUQDWLRQDO'HYHORSPHQWVenezuela Regional Crisis)DFW6KHHWDW$SULO
available atKWWSVZZZXVDLGJRYVLWHVGHIDXOWILOHVGRFXPHQWVBB86*B9HQH]XHODB
5HJLRQDOB&ULVLVB)DFWB6KHHWBSGI³86$,')DFW6KHHW´
86$,')DFW6KHHWDW
+5:5HSRUWDW
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 12 of 31
9HQH]XHOD¶VHGXFDWLRQV\VWHPKDVDOVREHHQGHYDVWDWHGE\WKHHFRQRPLFFROODSVH
ZLWKPRUHWKDQRQHPLOOLRQFKLOGUHQQRORQJHUDWWHQGLQJVFKRRO7KHSXEOLFVFKRROV¶IRRG
SURJUDPVKDYHODUJHO\IDLOHGWKHUHLVDODFNRIDIIRUGDEOHSXEOLFWUDQVSRUWDWLRQDQGPDQ\
WHDFKHUVDQGRWKHUHGXFDWLRQSURIHVVLRQDOVKDYHIOHGWKHFRXQWU\7KHKXPDQLWDULDQFULVLVLQ
9HQH]XHODKDVEHHQIXUWKHUH[DFHUEDWHGE\UROOLQJEODFNRXWVZKLFKKDYHSODJXHGWKHFRXQWU\
VLQFH0DUFK
)RUPHGE\9HQH]XHODLQDIWHUWKHQDWLRQDOL]DWLRQRIWKHRLOLQGXVWU\
3'96$FRRUGLQDWHVPRQLWRUVDQGFRQWUROVDOO9HQH]XHODQRLODQGJDVRSHUDWLRQV3'96$LV
ZKROO\RZQHGE\9HQH]XHODDQGLVWKHKROGLQJFRPSDQ\IRUDJURXSRIRLODQGJDVRSHUDWLQJ
FRPSDQLHV3'96$FDUULHVRXWH[SORUDWLRQGHYHORSPHQWDQGSURGXFWLRQRSHUDWLRQVLQ
9HQH]XHODDQGVDOHVPDUNHWLQJUHILQLQJWUDQVSRUWDWLRQLQIUDVWUXFWXUHVWRUDJHDQGVKLSSLQJ
RSHUDWLRQVLQ9HQH]XHODWKH&DULEEHDQ1RUWK$PHULFD6RXWK$PHULFD(XURSHDQG$VLD
7KURXJK3'9+ROGLQJVDZKROO\RZQHGVXEVLGLDU\3'96$LQGLUHFWO\RZQVRI&,7*2
DPDMRU86EDVHGRLOUHILQHU
2Q)HEUXDU\SXUVXDQWWRWKHDXWKRULW\JUDQWHGKLPXQGHUWKH7UDQVLWLRQ
6WDWXWH,QWHULP3UHVLGHQW*XDLGyDSSRLQWHGWKH$G+RF%RDUGRI3'96$ZKRVHPHPEHUVOLYH
LQWKH86DQGHOVHZKHUHGXHWRWKHSROLWLFDOWXUPRLOLQ9HQH]XHOD³IRUWKHSXUSRVHRIFDUU\LQJ
RXWDOOQHFHVVDU\DFWLRQVWRDSSRLQWD%RDUGRI'LUHFWRUV´IRU3'9+ROGLQJ2Q)HEUXDU\
WKH1DWLRQDO$VVHPEO\DSSURYHGWKLVDFWLRQE\UHVROXWLRQ
81+&+52UDO6WDWHPHQW
Id.
86$,')DFW6KHHWDW
%ROLYDULDQ5HSXEOLFRI9HQH]XHOD1DWLRQDO$VVHPEO\Agreement Authorizing the Appointment to Hold Positions
for an Intervention Entity, named “Ad-Hoc Administrative Board”GDWHG)HEUXDU\WUDQVODWHG([%
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 13 of 31
7KH1DWLRQDO$VVHPEO\¶VOHJLWLPDWHDFWLRQVKDYHEHHQUHFRJQL]HGDVODZIXOE\
WKH86DQGVXVWDLQHGE\WKHFRXUWV2Q$XJXVWLQJimenez v. PalaciosWKH'HODZDUH
&KDQFHU\&RXUWKHOGWKDWXQGHUWKHSROLWLFDOTXHVWLRQDQGDFWRIVWDWHGRFWULQHVWKH*XDLGy
DSSRLQWHG$G+RF%RDUGLVYDOLGDQGODZIXO1RWDEO\LQUHMHFWLQJDFKDOOHQJHE\IRUPHU
0DGXUREDFNHGGLUHFWRUVWKHFRXUWFRQFOXGHGWKDWWKH86¶VUHFRJQLWLRQRIWKH1DWLRQDO
$VVHPEO\DQG,QWHULP3UHVLGHQW*XDLGy³HIIHFWLYHO\GHUHFRJQL]HGWKH0DGXURUHJLPH´
)URPD86VWDQGSRLQWWKH$G+RF%RDUGLVWKHRQO\OHJLWLPDWHERDUGRI3'96$
DQGWKHRQO\FRUSRUDWHERG\ZLWKDXWKRULW\WRJRYHUQLWVDIIDLUV3'96$KDVQRDYDLODEOH
UHVRXUFHVLQEDQNDFFRXQWVLQWKH86DQGDVLGHIURPZKDWHYHUIXQGVRZLQJWR3'96$WKDW
UHPDLQ³IUR]HQ´E\WKH86JRYHUQPHQWLQXQNQRZQWKLUGSDUW\DFFRXQWV3'96$¶VRQO\86
DVVHWLV3'9+ROGLQJ
,QDFFRUGDQFHZLWKWKH7UDQVLWLRQ6WDWXWHDQG3UHVLGHQWLDO'HFUHH1RI$SULO
WKH$G+RF%RDUGUHPRYHGWKH0DGXURDSSRLQWHGGLUHFWRUVDW3'9+ROGLQJDQG
DSSRLQWHGDQHZDQGDXWRQRPRXVERDUGZLWKWKHFDSDFLW\WRUHRUJDQL]H3'9+ROGLQJ¶V
VXEVLGLDULHV7KH7UDQVLWLRQ6WDWXWHDQGWKH3UHVLGHQWLDO'HFUHHWKXVUHVWRUHGWKHDXWRQRP\RI
3'9+ROGLQJDQGLWVDIILOLDWHVWRSURWHFW&,7*2DVDNH\FRPSRQHQWRIDQ\HFRQRPLFUHFRYHU\
IRU9HQH]XHOD
9 7KH([FKDQJH2IIHUDQGWKH1RWHV
,Q$SULO3'96$LVVXHG86LQDJJUHJDWHSULQFLSDODPRXQW
DQG-DQXDU\3'96$LVVXHG86LQDJJUHJDWHSULQFLSDODPRXQWRI
VHQLRUXQVHFXUHGQRWHVGXH1RYHPEHUWKH³1RYHPEHU1RWHV´DQGWRJHWKHUZLWK
1R&9.6-0:/DW
'HO&K$XJas revised$XJ
Id. DW
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 14 of 31
$SULO1RWHVWKH³1RWHV´7KH1RWHVZKLFKZHUHJXDUDQWHHGE\3'96$
3HWUyOHRZHUHLVVXHGLQORFDOFXUUHQF\DWDSUHIHUHQWLDOUDWH
,QD6HSWHPEHU([FKDQJH2IIHU3'96$RIIHUHGWRH[FKDQJHWKH
1RWHVIRUWKH1RWHV/LNHWKH1RWHVWKH1RWHVZHUHLVVXHGZLWKDSXUSRUWHG
JXDUDQW\IURP3'96$3HWUyOHR8QOLNHWKH1RWHVRUDQ\RWKHUQRWHVLVVXHGE\3'96$
KRZHYHUWKH1RWHVDUHDOVRSXUSRUWHGO\VHFXUHGE\DSOHGJHRIRI3'9+ROGLQJ¶V
&,7*26KDUHVHYHQWKRXJK3'9+ROGLQJLVQRWDSDUW\WRWKH,QGHQWXUHQRUUHVSRQVLEOHIRU
3'96$¶VGHEWREOLJDWLRQV
7KH([FKDQJH2IIHUZDVDFFHSWHGE\WKHKROGHUVRIDSSUR[LPDWHO\86
RI1RWHVZKLFKZDVDSSUR[LPDWHO\RIWKHPD[LPXPWHQGHU
DPRXQWDQGDSSUR[LPDWHO\RIWKHDJJUHJDWHSULQFLSDODPRXQWRXWVWDQGLQJ)RUHDFK
86LQRXWVWDQGLQJSULQFLSDODPRXQWRIWKH$SULO1RWHVYDOLGO\WHQGHUHGRQRUSULRU
WRWKHHDUO\WHQGHUGHDGOLQH3'96$GHOLYHUHG86RI1RWHVDQGIRUHDFK
86LQRXWVWDQGLQJSULQFLSDODPRXQWRIWKH$SULO1RWHVYDOLGO\WHQGHUHGDIWHUWKH
HDUO\WHQGHUGHDGOLQHEXWRQRUSULRUWRWKHH[SLUDWLRQRIWKH([FKDQJH2IIHU3'96$GHOLYHUHG
86RI1RWHV)RUHDFK86LQRXWVWDQGLQJSULQFLSDODPRXQWRIWKH
1RYHPEHU1RWHVYDOLGO\WHQGHUHGRQRUSULRUWRWKHHDUO\WHQGHUGHDGOLQH3'96$
GHOLYHUHG86RI1RWHVDQGIRUHDFK86LQRXWVWDQGLQJSULQFLSDODPRXQWRI
WKH1RYHPEHU1RWHVYDOLGO\WHQGHUHGDIWHUWKHHDUO\WHQGHUGHDGOLQHEXWRQRUSULRUWRWKH
H[SLUDWLRQRIWKH([FKDQJH2IIHU3'96$GHOLYHUHG86RI1RWHV,QDJJUHJDWH
3'96$LVVXHGDSSUR[LPDWHO\86LQSULQFLSDODPRXQWRI1RWHV
7KH1RWHVZHUHLVVXHGSXUVXDQWWRDQ,QGHQWXUHGDWHGDVRI2FWREHU
DQGDVFRQWHPSODWHGE\WKH,QGHQWXUHSXUSRUWHGO\VHFXUHGE\DSOHGJHRIRI3'9
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 15 of 31
+ROGLQJ¶V&,7*26KDUHVSXUVXDQWWRD3OHGJH$JUHHPHQWDOVRGDWHGDVRI2FWREHU
7KH1RWHVWKH,QGHQWXUHDQGWKH3OHGJH$JUHHPHQWFRPSULVHDVHWRILQWHUUHODWHG
&ROODWHUDO$JHQWY/DZ'HEHQWXUH7UXVW&RPSDQ\RI1HZ<RUNDV5HJLVWUDU7UDQVIHU$JHQW
³/X[HPERXUJ3D\LQJ$JHQW´3'9+ROGLQJLVQRWDSDUW\WRWKH,QGHQWXUHDQGLVQRWDQ
REOLJRURQWKH1RWHV7KH3OHGJH$JUHHPHQWZDVHQWHUHGLQWRDPRQJL3'9+ROGLQJDV
DV&ROODWHUDO$JHQWDQGY08)*8QLRQ%DQN1$DV7UXVWHH
9, 7KH&LUFXPVWDQFHV6XUURXQGLQJWKH([FKDQJH2IIHU
$FFRUGLQJWRWKH2IIHULQJ&LUFXODUWKHSXUSRVHRIWKH([FKDQJH2IIHUZDVWR
UHILQDQFHWKH1RWHVEHFDXVH³H[WHUQDOIDFWRUV´KDGDIIHFWHGWKHSULFHDWZKLFK3'96$
FRXOGVHOOLWVSURGXFWVPDNLQJLW³SUXGHQWWRUHDUUDQJH>3'96$¶V@GHEWSURILOH´,QUHDOLW\
DQGDVPDQ\FRPPHQWDWRUVQRWHGDWWKHWLPHWKHWUXHFDXVHRI3'96$¶VILQDQFLDOGLVWUHVVZDV
WKHSUHGDWRU\SROLFLHVRIWKH&KiYH]DQG0DGXURUHJLPHV
%\WKHWLPHRIWKH([FKDQJH2IIHUFOHDUVLJQVRI3'96$¶VILQDQFLDOGLVWUHVVKDG
DSSHDUHG$PRQJRWKHUWKLQJV9HQH]XHOD¶VGHFOLQHLQRLOSURGXFWLRQZDVDFFHOHUDWLQJDQG
TXDOLW\ZDVGHFOLQLQJDVZHOO)LQDQFLDOVWDWHPHQWVUHYHDOHGWKDW3'96$DGGUHVVHGWKHUHVXOWLQJ
,QGHQWXUHDWS3OHGJHDQG6HFXULW\$JUHHPHQWDWSS
,QGHQWXUHDWS
IdDWFRYHUSDJH S
3OHGJH$JUHHPHQWFRYHUSDJH S
2IIHULQJ&LUFXODUIRU3HWUyOHRVGH9HQH]XHOD6$2IIHUVWR([FKDQJHWKH³2IIHULQJ&LUFXODU´DWS
9HQH]XHOD¶VRLOSURGXFWLRQEHJDQWRGHFOLQHORQJEHIRUHRLOSULFHVIHOOLQ%\'HFHPEHU9HQH]XHODQ
SURGXFWLRQKDGIDOOHQWRPESGIURPWKHPESGSHDNUHDFKHG\HDUVHDUOLHULQ'HFHPEHU
DFFRUGLQJWRWKH86(QHUJ\,QIRUPDWLRQ$GPLQLVWUDWLRQ(,$
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 16 of 31
ORVVRIFDVKIORZE\DPRQJRWKHUVWHSVLVODVKLQJLQYHVWPHQWVE\ELOOLRQDIWHUD
RQO\WZR\HDUVLLLQFUHDVLQJDUUHDUVZLWKVXSSOLHUVDQGVHUYLFHSURYLGHUVE\ELOOLRQDQG
VKRUWWKHRSHUDWLRQVDQGILQDQFHVRI3'96$ZHUHLQDGHDWKVSLUDO
7KLVOHGPDUNHWVWRDQWLFLSDWHWKDW3'96$ZRXOGGHIDXOWRQLWVGHEW$VVRRQDV
RLOSULFHVIHOOLQODWH3'96$¶VGHEWEHJDQWUDGLQJDWGLVWUHVVHGSULFHVLPSO\LQJWKDWD
GHIDXOWZRXOGRFFXULQWKHVKRUWWRPHGLXPWHUP%RQGVRQWKHORQJHQGRI3'96$¶V\LHOG
FXUYHVXFKDVWKHERQGWUDGHGEHWZHHQDQGRIIDFHYDOXHXQWLO2FWREHU
WKHPRQWKRIWKH([FKDQJH2IIHU\LHOGLQJWRWRPDWXULW\7KHVHGLVWUHVVHG
SULFHVUHIOHFWHGWKHORZH[SHFWHGUHFRYHU\RQWKHERQGVLQWKHHYHQWRIDGHIDXOW
8QVXUSULVLQJO\WKH([FKDQJH2IIHUZDVQRWZHOOUHFHLYHGE\WKHPDUNHWDQG
3'96$ZDVIRUFHGWRRIIHUDSUHPLXPWRSURPRWHWKHH[FKDQJH3'96$RULJLQDOO\VHWD
PLQLPXPWKUHVKROGRI²PHDQLQJLWVRXJKWDWOHDVWRIWKHHOLJLEOHERQGVWRSDUWLFLSDWH
EHIRUHLWZRXOGHIIHFWXDWHWKHH[FKDQJH%XWVLQFHWKHWKUHVKROGZDVQRWPHWE\WKHRULJLQDO
GHDGOLQH3'96$H[WHQGHGWKHGHDGOLQHWZLFHDQGDOORZHGDOOSDUWLFLSDWLQJERQGKROGHUVWR
UHFHLYHWKHVDPHWHUPVWKDWZHUHRULJLQDOO\RQO\RIIHUHGWRERQGKROGHUVZKRWHQGHUHGE\WKH
RULJLQDOGDWH
)RUWKHH[FKDQJHRIWKH$SULO1RWHV3'96$RIIHUHGDQH[FKDQJHUDWLRRIDQGIRUWKH1RYHPEHU
DQH[FKDQJHUDWLRRISee PDVSA Announces Changes to the Consideration Paid in connection with the
Exchange Offers, the Extension of the Early Tender Deadline and the Withdrawal Deadline of its Offers to
Exchange its Outstanding 5.250% Senior Notes due 2017 and 8.50% Senior Notes due 2017 for New 8.50% Senior
Secured Notes due 2020351(:6:,5(6HSWavailable atKWWSVZZZSUQHZVZLUHFRPQHZV
UHOHDVHVSGYVDDQQRXQFHVFKDQJHVWRWKHFRQVLGHUDWLRQSDLGLQFRQQHFWLRQZLWKWKHH[FKDQJHRIIHUVWKHH[WHQVLRQ
RIWKHHDUO\WHQGHUGHDGOLQHDQGWKHZLWKGUDZDOGHDGOLQHRILWVRIIHUVWRH[FKDQJHLWVRXWVWDQGLQJVHQLRU
QRWHVGXHKWPO
PDVSA Announces Extension of the Early Tender Deadline and the Expiration Date for its Offers to Exchange its
Outstanding 5.250% Senior Notes due 2017 and 8.50% Senior Notes due 2017 for New 8.50% Senior Secured Notes
due 2020, 351(:6:,5(2FWavailable at KWWSVZZZSUQHZVZLUHFRPQHZV
UHOHDVHVSGYVDDQQRXQFHVH[WHQVLRQRIWKHHDUO\WHQGHUGHDGOLQHDQGWKHH[SLUDWLRQGDWHIRULWVRIIHUVWRH[FKDQJH
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 17 of 31
7KHODFNRIDSSHWLWHIRUWKH([FKDQJH2IIHUVXJJHVWVWKDWPDQ\KROGHUVRIWKH
1RWHVGLGQRWZDQWWRH[WHQGWKHLUH[SRVXUHWR3'96$¶VFUHGLWULVNIRUDQRWKHUIRXU\HDUV
EHFDXVHWKH\GLGQRWH[SHFWWKH1RWHVWREHSDLGLQIXOODQGLWDOVRUHIOHFWVZLGHVSUHDG
FRQFHUQDERXWWKHOHJDODQGFRQVWLWXWLRQDOULVNVDVVRFLDWHGZLWKWKH([FKDQJH2IIHUZKLFKZHUH
ZLGHO\UHSRUWHGDWWKHWLPH$VGLVFXVVHGPRUHIXOO\EHORZWKH1DWLRQDO$VVHPEO\DGRSWHGD
UHVROXWLRQFRQWHPSRUDQHRXVO\ZLWKWKH([FKDQJH2IIHUGHQRXQFLQJLWDQGFDOOLQJIRUDQ
LQYHVWLJDWLRQ
)RU3'96$WKH([FKDQJH2IIHURQO\PDGHLWVVLWXDWLRQZRUVH$OWKRXJKWKH
WUDQVDFWLRQSURYLGHG3'96$ZLWKDQGPLOOLRQLQFDVKIORZUHOLHILQDQG
UHVSHFWLYHO\WKLVUHOLHIFDPHDWDYHU\KLJKSULFH'HEWVHUYLFHLQDQG
LQFUHDVHGE\DQGPLOOLRQUHVSHFWLYHO\DFFRXQWLQJIRUWKH1RWHV¶
H[WUHPHO\KLJKLQWHUQDOUDWHRIUHWXUQ$WWKHHQGRIGD\WKH([FKDQJH2IIHUGLGQRWKLQJWR
VROYH3'96$¶VILQDQFLDOSUREOHPVZKLOHSODFLQJDWULVN3'9+ROGLQJ¶VHFRQRPLFRZQHUVKLS
DQGFRQWURORI&,7*2)URPWKHSHUVSHFWLYHRIWKH0DGXURUHJLPHWKHUHDOREMHFWLYH±DQG
DFFRPSOLVKPHQW±RIWKH([FKDQJH2IIHUZDVSROLWLFDOIRULWDOORZHG0DGXURWRSRVWSRQHIRUD
LWVRXWVWDQGLQJVHQLRUQRWHVGXHDQGVHQLRUQRWHVGXHIRUQHZVHQLRUVHFXUHGQRWHVGXH
KWPO,QWKHHQGRQO\RIWKHHOLJLEOHERQGKROGHUVSDUWLFLSDWHGDQG3'96$GHFLGHGWRZDLYH
LWVWKUHVKROGFRQGLWLRQPDVSA Misses Tender Threshold as Investors Tender 39.43% of 2017 Notes, 5HRUJ
5HVHDUFK2FWavailable at KWWSVDSSUHRUJFRPYLWHPVLQWHO"LWHPBLG $QGRXWRIWKDW
³DQDO\VWVHVWLPDWH>G@WKDWJRYHUQPHQWFRQWUROOHGHQWLWLHV>KHOG@DERXWSHUFHQWRIWKHDIIHFWHGERQGV´
PHDQLQJWKHQXPEHURIXQDIILOLDWHGERQGKROGHUVZKRDFWXDOO\SDUWLFLSDWHGZDVPXFKORZHUVenezuelan Oil Major’s
Debt Swap: the Beginning of the End? ),17,0(66HSWDWavailable at
KWWSVZZZIWFRPFRQWHQWDDGIFIDHHHFIEI
5RELQ:LJJOHVZRUWKISDA declares Venezuela, PDVSA in default on their debts),17,0(61RY
available at KWWSVZZZIWFRPFRQWHQWEHIEGEGEG0\UD6DHIRQJOil climbs in
electronic trade as ISDA rules that PDVSA and Venezuela defaulted on debts0$5.(7:$7&+1RY
available atKWWSVZZZPDUNHWZDWFKFRPVWRU\RLOFOLPEVLQHOHFWURQLFWUDGHDVLVGDUXOHVWKDWSGYVDDQG
YHQH]XHODGHIDXOWHGRQGHEWVSweetened PDVSABond Swap Has Traders Ignoring Congress’s
Threat%ORRPEHUJ2FWREHUDW
available at KWWSVZZZEORRPEHUJFRPQHZVDUWLFOHVVZHHWHQHGSGYVDERQGVZDSKDV
WUDGHUVLJQRULQJFRQJUHVVVWKUHDW
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 18 of 31
GLVFXVVHGEHORZKRZHYHU0DGXURRQO\DFKLHYHGWKLVWHPSRUDU\±DQGFULSSOLQJFRVWO\±
UHSULHYHE\YLRODWLQJWKH9HQH]XHODQ&RQVWLWXWLRQ
9,, 7KH1DWLRQDO$VVHPEO\¶V:LGHO\5HSRUWHG2SSRVLWLRQWRWKH([FKDQJH2IIHU
2Q$XJXVWEHIRUHWKH([FKDQJH2IIHUZDVDQQRXQFHGWKH1DWLRQDO
$VVHPEO\DGRSWHGDUHVROXWLRQGHFU\LQJ3'96$¶VRYHULQGHEWHGQHVVDQGFDOOLQJIRUD
FRPSUHKHQVLYHGHEWUHVWUXFWXULQJSURFHVV2Q6HSWHPEHUVKRUWO\DIWHUWKH
DQQRXQFHPHQWRIWKH([FKDQJH2IIHUWKH1DWLRQDO$VVHPEO\DGRSWHGDQRWKHUUHVROXWLRQWKH
³6HSWHPEHU5HVROXWLRQ´SXEOLFO\GHQRXQFLQJWKHWUDQVDFWLRQDQGFDOOLQJIRUDQ
LQYHVWLJDWLRQ$VDSDUWRIWKH6HSWHPEHU5HVROXWLRQWKH1DWLRQDO$VVHPEO\³UHMHFW>HG@
FDWHJRULFDOO\´WKHSOHGJHRIRIWKH3'9+ROGLQJ¶V&,7*26KDUHVDVFROODWHUDOIRUWKH
1RWHV7KH6HSWHPEHU5HVROXWLRQDOVRFRQGHPQHGWKHLUUDWLRQDOLW\RIWKHWUDQVDFWLRQDQG
FDOOHGIRUDQLPPHGLDWHLQYHVWLJDWLRQRIWKH0DGXURUHJLPH¶VPLVPDQDJHPHQWRI3'96$DQGLWV
PLVXVHRI3'96$IRUSROLWLFDOSXUSRVHV
7KH1DWLRQDO$VVHPEO\¶VILHUFHRSSRVLWLRQWRWKH([FKDQJH2IIHUZDVZLGHO\
UHSRUWHGZLWKPXOWLSOHDUWLFOHVQRWLQJWKDW1DWLRQDO$VVHPEO\DXWKRUL]DWLRQZDVFRQVWLWXWLRQDOO\
RSSRVHWKHSOHGJHRIWKH&,7*26KDUHVDVFROODWHUDODQGWKDWDQ\VXFKSOHGJHZRXOGUHTXLUH
DSSURYHDQ\QHZLQGHEWHGQHVVRIWKHUHSXEOLF´)RUH[DPSOHLWZDVUHSRUWHGDWWKHWLPHWKDW
%ROLYDULDQ5HSXEOLFRI9HQH]XHOD1DWLRQDO$VVHPEO\Resolutions on the Current Financial Situation of
Petróleos de Venezuela, S.A.GDWHG6HSWHPEHUWUDQVODWHG([&
Id
Id
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 19 of 31
0DQ\LQYHVWRUVDVVHUWWKHHTXLW\SOHGJHRQ&,7*2+ROGLQJ
,QFLVZRUWKOLWWOHJLYHQFHUWDLQSROLWLFDOULVNVDQG&,7*2¶V
VXEVWDQWLDOGHEWEXUGHQ6RXUFHVVD\WKDW9HQH]XHOD¶VFRQJUHVVLV
XQOLNHO\WRDSSURYHWKHFROODWHUDOL]DWLRQRI&,7*2EHIRUHWKH
WHQGHUFORVHVLIDWDOOJLYHQWKDWWKHORZHUKRXVHLVFRQWUROOHG
E\RSSRVLWLRQSDUWLHVWKDWDUHVHHNLQJWRUHPRYH3UHVLGHQW
0DGXURIURPRIILFH3'96$QRWHVLQLWVFLUFXODUWKDWWKH
RSSRVLWLRQFRDOLWLRQ0HVDGHOD8QLGDG'HPRFUiWLFDRU08'
ZDVHOHFWHGWRVHDWVLQWKH1DWLRQDO$VVHPEO\ODVW\HDU
OHDYLQJRQO\VHDWVIRU0DGXUR¶VSDUW\WKH3DUWLGR6RFLDOLVWD
8QLGRGH9HQH]XHODRU3689µ6XFKLQVWDELOLW\FRXOGKDYHD
PDWHULDODGYHUVHHIIHFWRQ9HQH]XHOD¶VHFRQRPLFJURZWKRXU
RSHUDWLRQVDQGDVDUHVXOWRXUDELOLW\WRVHUYLFHRXUREOLJDWLRQV
XQGHUWKH1HZ1RWHV¶WKHPHPRUDQGXPUHDGV
:KLOHWKH([FKDQJH2IIHUZDVSHQGLQJDUWLFOHVDQGPDUNHWUHSRUWVZDUQHGWKDW
WKHODFNRI1DWLRQDO$VVHPEO\DSSURYDOZRXOGUHQGHUWKH1RWHVVXEMHFWWROHJDO
FKDOOHQJHSee, e.g.Legal Risks Cloud Venezuela PdVSA Bond Swap – Market Talk'2:
RSSRVLWLRQFRQWUROOHG1DWLRQDO$VVHPEO\UHJDUGLQJWKHERQGH[FKDQJHZKLFKUDLVHVTXHVWLRQV
DERXWKRZWKHGHEWZRXOGEHYLHZHGE\DXWKRULWLHVLIWKHUHZHUHWREHDFKDQJHLQ
JRYHUQPHQW´,QD6HSWHPEHUDQDO\VLVRIWKH([FKDQJH2IIHU1RPXUD6HFXULWLHV
QRWHGWKDW³>W@KHPDNHRUEUHDNRIWKHH[FKDQJHLVWKHDVVHVVPHQWRIWKHHTXLW\YDOXDWLRQDQGWKH
OHJDOULVNV´DQGWKDW³WKHUHKDYHEHHQRSLQLRQVIURPORFDOODZ\HUVVXJJHVWLQJWKDWDOO
³WKHUHZRXOGEHDVWURQJOHJDODUJXPHQWIRUDIXWXUHDGPLQLVWUDWLRQWRVWDWHWKDWGHEWFRQWUDFWHG
LQZRXOGQRWEHYDOLGJLYHQWKHODFNRIDQ$QQXDO,QGHEWHGQHVV/DZDSSURYHGE\WKH
Investors Weigh Exchange Ratio, Value of Collateral Package in PDVSA Tender5HRUJ5HVHDUFK6HSWHPEHU
HPSKDVLVDGGHGavailable at KWWSVDSSUHRUJFRPYLWHPVLQWHO"LWHPBLG
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 20 of 31
1DWLRQDO$VVHPEO\´$OH[DQGUD8OPHUVenezuela’s Supreme Court lets Maduro bypass
,QYHVWRUV¶UHFRJQLWLRQRIWKHULVNVZDVDOVRUHIOHFWHGLQWKHQRWHV¶UDWLQJVDQGWKH
ORZSDUWLFLSDWLRQWKUHVKROGIRUWKHH[FKDQJH7KHSURSRVHGGHEWZDV³DVVLJQHGDQµ55¶DYHUDJH
5HFRYHU\5DWLQJDVWKHFROODWHUDOSURYLGHGPD\RQO\PDUJLQDOO\HQKDQFHUHFRYHU\JLYHQGHIDXOW
5DWLQJVGRZQJUDGHG3'96$¶VFUHGLWUDWLQJVRRQDIWHUWKHH[FKDQJHZLWK6 3UHIHUULQJWRWKH
3'96$%RQGVDVD³GLVWUHVVHGH[FKDQJH´WKDWZRXOGEH³WDQWDPRXQWWRGHIDXOW´
7KH0DGXURUHJLPHDQGWKH'HIHQGDQWVLJQRUHGWKH1DWLRQDO$VVHPEO\¶V
6HSWHPEHU5HVROXWLRQDQGSURFHHGHGZLWKWKH([FKDQJH2IIHUWKHUHVXOWVRIZKLFKZHUH
DQQRXQFHGRQ2FWREHU7KHYHU\QH[WGD\LQDQHIIRUWWRTXHOOFRQFHUQRYHUWKH
6HSWHPEHU5HVROXWLRQWKH0DGXURFRQWUROOHG9HQH]XHODQ6XSUHPH7ULEXQDOSXUSRUWHGWR
VXVSHQGDOO1DWLRQDO$VVHPEO\LQYHVWLJDWLRQVRI3'96$LQFOXGLQJWKHLQYHVWLJDWLRQRIWKH
([FKDQJH2IIHU7KUHHGD\VODWHUDW0DGXUR¶VGLUHFWLRQWKH,QGHQWXUHDQGWKH3OHGJH
$JUHHPHQWZHUHH[HFXWHGZLWKRXW1DWLRQDO$VVHPEO\DXWKRUL]DWLRQ
)RUPRQWKVIROORZLQJWKHFRPSOHWLRQRIWKH([FKDQJH2IIHUPDUNHWDQDO\VWVDQG
MRXUQDOLVWVFRQWLQXHGWRFRPPHQWRQWKHLOOHJDOLW\RIWKH1RWHVSee, e.g.0D\HOD$UPDV
WKDWWKH([FKDQJH2IIHUZDVGHFULHGE\9HQH]XHODQODZPDNHUVEHFDXVHLWZDVQRWVXEPLWWHGWR
Fitch Expects to Rate PDVSA’s Proposed Notes ‘CCR/RR4,’ %XVLQHVV:LUH6HSWHPEHUDWavailable
at KWWSVZZZEXVLQHVVZLUHFRPQHZVKRPHHQ)LWFK([SHFWV5DWH3'96$V3URSRVHG1RWHV
&&&55
Venezuela’s Pdvsa Debt In Selective Default, S&P Says%DUURQ¶V2FWREHUavailable at
KWWSVZZZEDUURQVFRPDUWLFOHVYHQH]XHODVSGYVDGHEWLQVHOHFWLYHGHIDXOWVSVD\VFitch
Downgrades PDVSA’s IDRs to ‘CC’)LWFK5DWLQJV2FWREHUavailable at
KWWSVZZZILWFKUDWLQJVFRPVLWHSUPDVSA Downgraded by S&P on ‘Distressed’ Bond Swap Proposal
%ORRPEHUJ6HSWHPEHUavailable at KWWSVZZZEORRPEHUJFRPQHZVDUWLFOHV
SGYVDGRZQJUDGHGE\VSRQGLVWUHVVHGERQGVZDSSURSRVDO
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 21 of 31
WKH1DWLRQDO$VVHPEO\IRUUHTXLUHGDXWKRUL]DWLRQPDNLQJWKH([FKDQJH2IIHU³DWRWDOO\LOOHJDO
ZLOOFDUU\UHSXGLDWLRQULVNIRULQYHVWRUVPDNLQJWKHPZDU\DVWKHRSSRVLWLRQVD\VWKDWLWZLOOQRW
UHFRJQLVHGHEWLVVXHGZLWKRXWWKH1DWLRQDO$VVHPEO\¶VDSSURYDODVPDQGDWHGE\WKH
³7KHODFNRIDOHJLVODWLYHDXWKRUL]DWLRQDVVWLSXODWHGLQWKHFRQVWLWXWLRQLVUDLVLQJGRXEWV
DERXWWKHOHJDOLW\RIQHZILQDQFLQJWUDQVDFWLRQVLQDQGULVNVRIVHOHFWLYHGHEWUHSXGLDWLRQE\
IXWXUHDGPLQLVWUDWLRQV/DVW2FWREHU3UHVLGHQW0DGXURRSWHGRXWRIWKHFRQJUHVVLRQDOURXWH
,QVWHDGKHUHOLHGRQH[WUDRUGLQDU\SRZHUVDQGD6XSUHPH&RXUW¶VGHFLVLRQWRDSSURYHWKH
EXGJHWODZ´
7KXVLWLVQRWVLPSO\WKDWWKH,QGHQWXUHDQGWKH3OHGJH$JUHHPHQWZHUHQRW
DXWKRUL]HGE\WKH1DWLRQDO$VVHPEO\DOWKRXJKWKDWDORQHUHQGHUVWKHPLQYDOLGXQGHU
9HQH]XHODQODZDVGLVFXVVHGIXUWKHUEHORZ5DWKHU0DGXURXVHGKLVSROLWLFDOFRQWURORYHUWKH
9HQH]XHODQ6XSUHPH7ULEXQDOWRSUHYHQWWKH1DWLRQDO$VVHPEO\IURPH[HUFLVLQJDQ\RILWV
ULJKWIXO&RQVWLWXWLRQDOSRZHUVZLWKUHVSHFWWRWKH([FKDQJH2IIHU
9,,, 86)RUHLJQ3ROLF\DQG6XSSRUWIRUWKH*XDLGy/HG1DWLRQDO$VVHPEO\
2Q-DQXDU\WKH3UHVLGHQWRIWKH8QLWHG6WDWHVUHFRJQL]HG³WKH3UHVLGHQW
RIWKH9HQH]XHODQ1DWLRQDO$VVHPEO\-XDQ*XDLGyDVWKH,QWHULP3UHVLGHQWRI9HQH]XHOD´DQG
WKH1DWLRQDO$VVHPEO\DV³WKHonlyOHJLWLPDWHEUDQFKRIJRYHUQPHQWGXO\HOHFWHGE\WKH
9HQH]XHODQSHRSOH´,QWKHVDPHVWDWHPHQWWKH3UHVLGHQWUHIHUUHGWRWKH0DGXURUHJLPHDV
³LOOHJLWLPDWH´
6WDWHPHQWIURP3UHVLGHQW'RQDOG-7UXPS5HFRJQL]LQJ9HQH]XHODQ1DWLRQDO$VVHPEO\3UHVLGHQW-XDQ*XDLGRDV
WKH,QWHULP3UHVLGHQWRI9HQH]XHOD-DQ
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 22 of 31
2QWKHVDPHGD\WKH3UHVLGHQWRIWKH8QLWHG6WDWHVRIILFLDOO\UHFRJQL]HGWKH
*XDLGyJRYHUQPHQW6HFUHWDU\RI6WDWH0LFKDHO3RPSHRLVVXHGDVWDWHPHQWGHFODULQJWKDWWKH
8QLWHG6WDWHVVWDQGVZLWKLQWHULP3UHVLGHQW-XDQ*XDLGy7KH8QLWHG6WDWHVGRHVQRW
UHFRJQL]HWKH0DGXURUHJLPHDVWKHJRYHUQPHQWRI9HQH]XHOD´
7ZRGD\VODWHURQ-DQXDU\WKH3UHVLGHQWRIWKH8QLWHG6WDWHVLVVXHGDQ
([HFXWLYH2UGHUH[WHQGLQJSUHH[LVWLQJVDQFWLRQVWRPHPEHUVRIWKH0DGXURUHJLPHDQG
FRQWLQXLQJWRUHFRJQL]HWKH*XDLGyJRYHUQPHQW¶VOHJLWLPDF\ZKLOHUHIHUULQJWRWKH0DGXUR
UHJLPHDV³LOOHJLWLPDWH´
,QWKHGD\VDQGZHHNVDIWHU86UHFRJQLWLRQWKH86'HSDUWPHQWRI6WDWH
DFFHSWHG,QWHULP3UHVLGHQW*XDLGy¶VGHVLJQDWLRQRI&DUORV$OIUHGR9HFFKLRDVWKH&KDUJp
G¶$IIDLUHVRIWKH*RYHUQPHQWRI9HQH]XHODDQGDOORZHGWKH*XDLGy*RYHUQPHQWWRWDNHFRQWURO
RI9HQH]XHODQSURSHUW\LQWKH86LQFOXGLQJWKH9HQH]XHODQ(PEDVV\
$GGLWLRQDOO\WKH6WDWH'HSDUWPHQWDXWKRUL]HG,QWHULP3UHVLGHQW*XDLGyWRUHFHLYH
DQGFRQWURORWKHUZLVHVDQFWLRQHG9HQH]XHODQSURSHUW\KHOGE\86%DQNVDFNQRZOHGJLQJXQGHU
86ODZWKDW*XDLGyLVWKHRQO\OHDGHU³UHFRJQL]HGE\WKH6HFUHWDU\RI6WDWHDVEHLQJWKH
DFFUHGLWHGUHSUHVHQWDWLYHRI>9HQH]XHOD@WRWKH*RYHUQPHQWRIWKH8QLWHG6WDWHV>@´
,QVXSSRUWRIWKHVHDFWLRQVWKH866HFUHWDU\RI6WDWHPDGHFOHDUWKDWWKH86QR
ORQJHUYLHZVWKH0DGXURUHJLPHDVWKH*RYHUQPHQWRI9HQH]XHOD
3UHVV6WDWHPHQW86'HS¶WRI6WDWH&RQWLQXLQJ86'LSORPDWLF3UHVHQFHLQ9HQH]XHOD-DQ
available atKWWSVZZZVWDWHJRYFRQWLQXLQJXVGLSORPDWLFSUHVHQFHLQYHQH]XHOD
([HFXWLYH2UGHU
0LFKDHO53RPSHR5HSUHVHQWDWLYHRIWKH*RYHUQPHQWRI9HQH]XHODWRWKH8QLWHG6WDWHV3UHVV6WDWHPHQW-DQ
available atKWWSVZZZVWDWHJRYUHSUHVHQWDWLYHRIWKHJRYHUQPHQWRIYHQH]XHODWRWKHXQLWHGVWDWHV
*HUVKRQ3HDNVVenezuela opposition takes control of diplomatic properties in U.S.5(87(560DUDW
available at KWWSVZZZUHXWHUVFRPDUWLFOHXVYHQH]XHODSROLWLFVYHFFKLRYHQH]XHODRSSRVLWLRQWDNHVFRQWURORI
GLSORPDWLFSURSHUWLHVLQXVLG86.&14=)+
86&86'HS¶WRI6WDWH3URWHFWLQJ9HQH]XHOD¶V$VVHWVIRU%HQHILWRI9HQH]XHODQ3HRSOH3UHVV
6WDWHPHQW-DQDYDLODEOHDWKWWSVZZZVWDWHJRYSURWHFWLQJYHQH]XHODVDVVHWVIRUEHQHILWRI
YHQH]XHODQSHRSOH
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 23 of 31
7RGD\WKH8QLWHG6WDWHVKDVWDNHQQHFHVVDU\DFWLRQVWRSUHYHQWWKH
illegitimate former Maduro regimeIURPIXUWKHUSOXQGHULQJ
9HQH]XHOD¶VDVVHWVDQGQDWXUDOUHVRXUFHV7KH8QLWHG6WDWHV
VWDQGVZLWKLQWHULP3UHVLGHQW-XDQ*XDLGyWKHGHPRFUDWLFDOO\
HOHFWHG1DWLRQDO$VVHPEO\DQGWKHSHRSOHRI9HQH]XHODDVWKH\
SHDFHIXOO\UHVWRUHFRQVWLWXWLRQDORUGHUWRWKHLUFRXQWU\
6LQFHUHFRJQL]LQJ3UHVLGHQW*XDLGyDQGWKH1DWLRQDO$VVHPEO\DV9HQH]XHOD¶V
RQO\OHJLWLPDWHOHDGHUVWKH86H[HFXWLYHEUDQFKKDVFRQVLVWHQWO\UHDIILUPHGLWVVXSSRUWIRUWKH
³HIIRUWVRI,QWHULP3UHVLGHQW-XDQ*XDLGyWRDGGUHVVWKHHQGHPLFFRUUXSWLRQKXPDQULJKWV
DEXVHVDQGYLROHQWUHSUHVVLRQWKDWKDVEHFRPHWKHKDOOPDUNRIWKHLOOHJLWLPDWH0DGXUR
UHJLPH´)RUH[DPSOHRQ0D\3UHVLGHQW7UXPS LVVXHGDVWDWHPHQWUHDIILUPLQJWKDW
³>W@KH8QLWHG6WDWHVVWDQGVZLWK,QWHULP3UHVLGHQW-XDQ*XDLGyWKHGHPRFUDWLFDOO\HOHFWHG
1DWLRQDO$VVHPEO\DQGDOO9HQH]XHODQVZKRVHHNWRUHVWRUHGHPRFUDF\DQGWKHUXOHRIODZ
7KHSHRSOHRI9HQH]XHODDUHVWDQGLQJXSDJDLQVWWKHLOOHJLWLPDWHEUXWDOUXOHRI1LFRODV
0DGXUR´
7KH86&RQJUHVVKDVDOVRYRLFHGLWVVXSSRUWWKURXJKPHPEHUVVXFKDV1DQF\
3HORVL6SHDNHURIWKH+RXVHRI5HSUHVHQWDWLYHVZKRLVVXHGDSUHVVUHOHDVHRQ)HEUXDU\
VWDWLQJ³,VXSSRUWWKHGHFLVLRQRIWKH1DWLRQDO$VVHPEO\9HQH]XHOD¶VVROHUHPDLQLQJ
GHPRFUDWLFLQVWLWXWLRQWRUHFRJQL]H-XDQ*XDLGy3UHVLGHQWRIWKH1DWLRQDO$VVHPEO\DVWKH
,QWHULP3UHVLGHQWXQWLOIXOOIDLUDQGIUHHHOHFWLRQVFDQEHKHOG1LFRODV0DGXUR¶VUHJLPHRI
0LFKDHO53RPSHRSanctions Against PDVSA and Venezuela Oil Sector 3UHVV6WDWHPHQW-DQ
available at KWWSVZZZVWDWHJRYVDQFWLRQVDJDLQVWSGYVDDQGYHQH]XHODRLOVHFWRUHPSKDVLVDGGHG
86'HS¶WRIWKH7UHDVXU\3UHVV5HOHDVH7UHDVXU\6DQFWLRQV*RYHUQRUVRI9HQH]XHODQ6WDWHV$OLJQHGZLWK
0DGXUR)HEavailable atKWWSVKRPHWUHDVXU\JRYQHZVSUHVVUHOHDVHVVPsee also3UHVLGHQW
'RQDOG-7UXPS6WDQGVIRU'HPRFUDF\LQ9HQH]XHOD0D\available atKWWSVZZZZKLWHKRXVHJRY
EULHILQJVVWDWHPHQWVSUHVLGHQWGRQDOGMWUXPSVWDQGVGHPRFUDF\YHQH]XHOD
President Donald J. Trump Stands for Democracy in Venezuela0D\available atKWWSVZZZ
ZKLWHKRXVHJRYEULHILQJVVWDWHPHQWVSUHVLGHQWGRQDOGMWUXPSVWDQGVGHPRFUDF\YHQH]XHOD
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 24 of 31
UHSUHVVLRQDQGLPSRYHULVKPHQWIRUKLVSHUVRQDOHQULFKPHQWFRQWLQXHVWRJUDYHO\YLRODWHKXPDQ
ULJKWV´
1RWDEO\FRQVLVWHQWZLWKWKHDERYHWKH86JRYHUQPHQWKDVWDNHQDVHULHVRI
DFWLRQVLQWHQGHGWRVDQFWLRQWKH0DGXURUHJLPHE\ORRVHQLQJLWVJULSRQ&,7*22Q0D\
86SHUVRQVIURPHQJDJLQJLQDQ\WUDQVDFWLRQVSURYLVLRQVRIILQDQFLQJDQGRWKHUGHDOLQJV
UHODWHGWR³WKHVDOHWUDQVIHUDVVLJQPHQWRUSOHGJLQJDVFROODWHUDOE\WKH*RYHUQPHQWRI
9HQH]XHODRIDQ\HTXLW\LQWHUHVWLQDQ\HQWLW\LQZKLFK>LW@KDVDSHUFHQWRUJUHDWHURZQHUVKLS
LQWHUHVW´$VGHILQHGLQWKH([HFXWLYH2UGHUWKH³*RYHUQPHQWRI9HQH]XHOD´H[SUHVVO\
LQFOXGHV3'96$DQGWKXV3'69$¶VFUHGLWRUVDUHSUHFOXGHGIURPH[HUFLVLQJUHPHGLHVDJDLQVW
3'96$¶VVKDUHVRI3'9+ROGLQJRUWKHSOHGJHG&,7*26KDUHVSUHFOXGLQJWKHPE\ODZIURP
REWDLQLQJFRQWURORI&,7*2
,Q-XO\WKH867UHDVXU\'HSDUWPHQW¶V2IILFHRI)RUHLJQ$VVHWV&RQWURO
³2)$&´LVVXHG*HQHUDO/LFHQVHDVDFDUYHRXWIURPWKH([HFXWLYH2UGHU$VH[SODLQHGE\
2)$&*HQHUDO/LFHQVHUHPRYHG([HFXWLYH2UGHUDVDQREVWDFOHWRWKHKROGHUVRIWKH
1RWHVH[HUFLVLQJGHIDXOWUHPHGLHVZLWKUHVSHFWWRWKHSOHGJHG&,7*26KDUHVZLWKWKH
LQWHQWLRQRI³SUHYHQW>LQJ@WKH0DGXURUHJLPHIURPXVLQJ>@>([HFXWLYH2UGHU@WRGHIDXOW
RQWKH>1RWHV@ZLWKRXWFRQVHTXHQFH´´
Pelosi Statement on the Situation in Venezuela )HEavailable at: KWWSVZZZVSHDNHUJRY
QHZVURRP
([HF2UGHU1R)HG5HJ0D\available at
KWWSVZZZWUHDVXU\JRYUHVRXUFHFHQWHUVDQFWLRQV3URJUDPV'RFXPHQWVYHQH]XHODBHRBSGI
Id
General License No. 5, Authorizing Certain Transactions Related to the Petróleos de Venezuela SA 2020 8.5
Percent Bond86'HS¶WRIWKH7UHDVXU\-XO\DYDLODEOHDWKWWSVZZZWUHDVXU\JRYUHVRXUFH
FHQWHUVDQFWLRQV3URJUDPV'RFXPHQWVYHQH]XHODBJOSGI
OFAC FAQs: Other Sanctions Programs, Venezuela Sanctions, FAQ 59686'HS¶WRIWKH7UHDVXU\-XO\
available atKWWSVZZZWUHDVXU\JRYUHVRXUFHFHQWHUIDTV6DQFWLRQV3DJHVIDTBRWKHUDVS[YHQH]XHOD
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 25 of 31
2Q)HEUXDU\WKHVDPHGD\WKDW*XDLGyUHFRQVWLWXWHG3'96$¶VERDUG
2)$&VSHFLILFDOO\OLFHQVHGWUDQVDFWLRQVZLWKWKH*XDLGyDSSRLQWHGGLUHFWRUVGHVSLWHEURDG
VDQFWLRQVDJDLQVW3'96$,QH[SODLQLQJLWVDFWLRQVWDNHQDJDLQVW3'96$WKH7UHDVXU\
'HSDUWPHQWH[SODLQHGWKDWLWVJRDOZDVWRWUDQVIHUFRQWUROWR,QWHULP3UHVLGHQW*XDLGyDQGDZD\
IURP³IRUPHU3UHVLGHQW1LFRODV0DGXUR´
$IWHUWKH863UHVLGHQWSXWLQSODFHDGGLWLRQDOVDQFWLRQVDJDLQVWWKH0DGXUR
UHJLPHLQDQ([HFXWLYH2UGHUGDWHG$XJXVWWKH7UHDVXU\'HSDUWPHQWLVVXHGDQRWKHU
OLFHQVHH[HPSWLQJIURPVDQFWLRQVFHUWDLQWUDQVDFWLRQVZLWKWKH9HQH]XHODQ1DWLRQDO$VVHPEO\
DQG,QWHULP3UHVLGHQW*XDLGyDQGPDNLQJFOHDUWKDWVDQFWLRQVUHPDLQHGLQSODFHIRUDQ\
WUDQVDFWLRQZLWKDPHPEHURIWKH0DGXURUHJLPH
2Q2FWREHU2)$&UHSODFHG*HQHUDO/LFHQVHZLWK*HQHUDO
/LFHQVH$ZKLFKUHLQVWDWHGWKH([HFXWLYH2UGHUZLWKUHVSHFWWRWKH1RWHVXQWLO
-DQXDU\WKHUHE\EDUULQJDQ\H[HUFLVHLQWKHLQWHULPRIGHIDXOWUHPHGLHVZLWKUHVSHFWWR
WKHSOHGJHG&,7*26KDUHV
([HF2UGHU1R)HG5HJ0D\available at
KWWSVZZZWUHDVXU\JRYUHVRXUFHFHQWHUVDQFWLRQV3URJUDPV'RFXPHQWVYHQH]XHODBHRBSGIGeneral
License No. 2, Authorizing Certain Transactions and Activities to Wind Down Operationsfor the Hotel Operating at
Millennium Plaza, Panama86'HS¶WRIWKH7UHDVXU\0D\available at
KWWSVZZZWUHDVXU\JRYUHVRXUFHFHQWHUVDQFWLRQV3URJUDPV'RFXPHQWVNLQJSLQBJOSGIGeneral License No. 7B,
Authorizing Certain Activities Involving PDV Holding, Inc. and CITGO Holding, Inc.86'HS¶WRIWKH7UHDVXU\
-XQHavailable atKWWSVZZZWUHDVXU\JRYUHVRXUFH
FHQWHUVDQFWLRQV3URJUDPV'RFXPHQWVYHQH]XHODBJOESGI
OFAC FAQs: Other Sanctions Programs, Venezuela Sanctions, FAQ 66086'HS¶WRIWKH7UHDVXU\-DQ
available atKWWSVZZZWUHDVXU\JRYUHVRXUFHFHQWHUIDTV6DQFWLRQV3DJHVIDTBRWKHUDVS[YHQH]XHOD
General License No. 31, Certain Transactions Involving the Venezuelan National Assembly, the Interim President
of Venezuela, and Certain Other Persons Authorized86'HS¶WRIWKH7UHDVXU\$XJavailable at
KWWSVZZZWUHDVXU\JRYUHVRXUFHFHQWHUVDQFWLRQV3URJUDPV'RFXPHQWVYHQH]XHODBJOSGI
General License No. 5A, Authorizing Certain Transactions Related to the Petróleos de Venezuela SA 2020 8.5
Percent Bond on or After January 22, 202086'HS¶WRI7UHDVXU\2FWavailable at
KWWSVZZZWUHDVXU\JRYUHVRXUFHFHQWHUVDQFWLRQV3URJUDPV'RFXPHQWVYHQH]XHODBJODSGI
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 26 of 31
,; (YHQWVRI'HIDXOW8QGHUWKH,QGHQWXUHDQG'HIDXOW5HPHGLHV:LWK5HVSHFWWRWKH
3OHGJHG&,7*26KDUHV
7KH,QGHQWXUHGHILQHVDQXPEHURI³(YHQWVRI'HIDXOW´LQFOXGLQJWKHIDLOXUHRI
3'96$DQG3'96$3HWUyOHRWRSD\LQWHUHVWRUSULQFLSDOZKHQGXH8QGHUWKHWHUPVRIWKH
,QGHQWXUHLIDQ(YHQWRI'HIDXOWRWKHUWKDQDQ(YHQWRI'HIDXOWUHODWHGWRDQ\EDQNUXSWF\
UHRUJDQL]DWLRQRULQVROYHQF\SURFHHGLQJZKLFKDXWRPDWLFDOO\UHVXOWVLQDQDFFHOHUDWLRQRIWKH
1RWHVRFFXUVDQGFRQWLQXHVZLWKRXWDZDLYHUWKHKROGHUVRIDWOHDVWLQSULQFLSDO
DPRXQWRIRXWVWDQGLQJ1RWHVPD\GHFODUHWKHQRWHVWREHGXHDQGSD\DEOHE\QRWLFHLQ
ZULWLQJWR3'96$DQGWKH7UXVWHHVSHFLI\LQJWKH(YHQWRI'HIDXOWDQGWKDWLWLVDQRWLFHRI
DFFHOHUDWLRQ8SRQWKHLVVXDQFHRIDQDFFHOHUDWLRQQRWLFHWKH1RWHVEHFRPHLPPHGLDWHO\
GXHDQGSD\DEOHLQIXOO
,QDGGLWLRQLIDQ(YHQWRI'HIDXOWKDVRFFXUUHGDQGLVFRQWLQXLQJWKH7UXVWHH
DQGWKH&ROODWHUDO$JHQWDWWKHGLUHFWLRQRIWKH7UXVWHHPD\DWWKHZULWWHQGLUHFWLRQRIKROGHUV
RIDWOHDVWLQDJJUHJDWHSULQFLSDODPRXQWRIWKHWKHQRXWVWDQGLQJ1RWHVYRWLQJDVD
VLQJOHFODVVH[HUFLVHULJKWVDQGRUSRZHUVZLWKUHVSHFWWRVHFXULW\LQWHUHVWVLQFOXGLQJZLWK
UHVSHFWWRWKH&,7*26KDUHVSXUSRUWHGO\JUDQWHGSXUVXDQWWRWKH3OHGJH$JUHHPHQW
; 7KH3XUSRUWHG3D\PHQW'HIDXOW
8QGHUWKHWHUPVRIWKH,QGHQWXUHDSSUR[LPDWHO\LQSULQFLSDODQG
PDGHDQGWKXVDQ(YHQWRI'HIDXOWKDVSXUSRUWHGO\RFFXUUHGDQGEXWIRU*HQHUDO/LFHQVH$
WKH7UXVWHHFRXOGGLUHFWWKH&ROODWHUDO$JHQWWRH[HUFLVHGHIDXOWUHPHGLHVZLWKUHVSHFWWRWKH
,QGHQWXUHD
IdDWE
Id
IdDWE7KRXJKDQLQWHUHVWSD\PHQWLVWHFKQLFDOO\GXHRQ2FWREHULQWHUHVWSD\PHQWVDUHVXEMHFW
WRDGD\JUDFHSHULRGXQGHUWKH,QGHQWXUHDQGWKHIDLOXUHWRSD\LQWHUHVWZKHQLWLVGXHGRHVQRWFRQVWLWXWHDQ
(YHQWRI'HIDXOWXQWLOWKDWGD\JUDFHSHULRGH[SLUHVIdDWD
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 27 of 31
SOHGJHG&,7*26KDUHV8SRQWKHH[SLUDWLRQRI*HQHUDO/LFHQVH$RQ-DQXDU\WKH
7UXVWHHFRXOGGLUHFWWKH&ROODWHUDO$JHQWWRH[HUFLVHGHIDXOWUHPHGLHVDWDQ\PRPHQW
),567&$86(2)$&7,21
2Q%HKDOIRI3'96$DQG3'96$3HWUyOHRD'HFODUDWLRQWKDWWKH1RWHVDQGWKH
,QGHQWXUHDUH,QYDOLG,OOHJDO1XOODQG9RLGAb InitioDQG8QHQIRUFHDEOH
3DUDJUDSKVDUHLQFRUSRUDWHGE\UHIHUHQFHDVLIIXOO\VHWIRUWKKHUHLQ
8QGHU$UWLFOHVDQGRI9HQH]XHODQ&RQVWLWXWLRQFRQWUDFWVLQWKH
QDWLRQDOSXEOLFLQWHUHVWHQWHUHGLQWRE\WKH1DWLRQDO3XEOLF$GPLQLVWUDWLRQZLWKFRPSDQLHVQRW
GRPLFLOHGLQ9HQH]XHODPXVWEHDXWKRUL]HGLQDGYDQFHE\WKH1DWLRQDO$VVHPEO\
3'96$DQG3'96$3HWUyOHRDUHQDWLRQDOVWDWHRZQHGHQWHUSULVHVWKDWDUHSDUW
RI9HQH]XHOD¶V1DWLRQDO3XEOLF$GPLQLVWUDWLRQDQGWKHSXEOLFVHFWRURIWKH9HQH]XHODQ6WDWH
$WWKHWLPHRIWKH([FKDQJH2IIHUWKH,QGHQWXUHZDVDQDWLRQDOSXEOLFLQWHUHVW
,QGHQWXUHLPSOLFDWHGLQDVLJQLILFDQWZD\9HQH]XHOD¶VPRVWLPSRUWDQWLQGXVWU\DQGSODFHGWKH
&,7*26KDUHVDWULVN
,QDGGLWLRQWKH,QGHQWXUHZDVHQWHUHGLQWRZLWKFRPSDQLHVQRWGRPLFLOHGLQ
9HQH]XHODLQFOXGLQJWKH7UXVWHHDQGWKH&ROODWHUDO$JHQW
7KH,QGHQWXUHZDVQRWDXWKRUL]HGE\WKH1DWLRQDO$VVHPEO\DQGWKXVZDVHQWHUHG
LQWRLQYLRODWLRQRIWKH9HQH]XHODQ&RQVWLWXWLRQ
$VVHWIRUWKDERYHLQLWV6HSWHPEHU5HVROXWLRQWKH1DWLRQDO$VVHPEO\
FKDOOHQJHGWKH([FKDQJH2IIHU,QDUHVROXWLRQDGRSWHGRQ2FWREHUWKH1DWLRQDO
$VVHPEO\UHLWHUDWHGWKDWWKH,QGHQWXUHZDVQRWDXWKRUL]HGDVUHTXLUHGE\WKH9HQH]XHODQ
See&RQVWLWXWLRQRIWKH%ROLYDULDQ5HSXEOLFRI9HQH]XHODDUWLFOHV WUDQVODWHG([$
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 28 of 31
&RQVWLWXWLRQDQGWKDWWKH1DWLRQDO$VVHPEO\¶VLQYHVWLJDWLRQVZHUHWKZDUWHGE\WKH9HQH]XHODQ
6XSUHPH7ULEXQDOZKLFKZDVDFWLQJXQGHU0DGXUR¶VSROLWLFDOFRQWURO
7KH([HFXWLYH%UDQFKRIWKH86JRYHUQPHQWUHFRJQL]HVWKH*XDLGy
JRYHUQPHQWLQFOXGLQJWKH1DWLRQDO$VVHPEO\DVWKHRQO\OHJLWLPDWHEUDQFKRIJRYHUQPHQWLQ
9HQH]XHODDQGFRQVLGHUVWKH0DGXURUHJLPHLOOHJLWLPDWH
MXULVGLFWLRQDQ\FRXUWRIWKH8QLWHG6WDWHVXSRQWKHILOLQJRIDQDSSURSULDWHSOHDGLQJPD\
GHFODUHWKHULJKWVDQGRWKHUOHJDOUHODWLRQVRIDQ\LQWHUHVWHGSDUW\VHHNLQJVXFKGHFODUDWLRQ
ZKHWKHURUQRWIXUWKHUUHOLHILVRUFRXOGEHVRXJKW´
$QDFWXDOFRQWURYHUV\H[LVWVEHFDXVH3'96$DQG3'96$3HWUyOHRDUHLQGHIDXOW
RIWKHLUSXUSRUWHGSD\PHQWREOLJDWLRQVXQGHUWKH,QGHQWXUH
$FFRUGLQJO\3'96$DQG3'96$3HWUyOHRDUHHQWLWOHGWRDGHFODUDWRU\MXGJPHQW
WKDWWKH1RWHVDQGWKH,QGHQWXUHDUHLQYDOLGLOOHJDOQXOODQGYRLGab initioDQGWKXV
XQHQIRUFHDEOH
6(&21'&$86(2)$&7,21
2Q%HKDOIRI$OO3ODLQWLIIVD'HFODUDWLRQWKDWWKH3OHGJH$JUHHPHQW,V,QYDOLG,OOHJDO
1XOODQG9RLGAb InitioDQG8QHQIRUFHDEOH
3DUDJUDSKVDUHLQFRUSRUDWHGE\UHIHUHQFHDVLIIXOO\VHWIRUWKKHUHLQ
8QGHU$UWLFOHVDQGRI9HQH]XHODQ&RQVWLWXWLRQFRQWUDFWVLQWKH
QDWLRQDOSXEOLFLQWHUHVWHQWHUHGLQWRE\WKH1DWLRQDO3XEOLF$GPLQLVWUDWLRQZLWKFRPSDQLHVQRW
GRPLFLOHGLQ9HQH]XHODPXVWEHDXWKRUL]HGLQDGYDQFHE\WKH1DWLRQDO$VVHPEO\
3'96$DQG3'96$3HWUyOHRDUHQDWLRQDOVWDWHRZQHGHQWHUSULVHVWKDWDUHSDUW
RI9HQH]XHOD¶V1DWLRQDO3XEOLF$GPLQLVWUDWLRQDQGWKHSXEOLFVHFWRURIWKH9HQH]XHODQ6WDWH
%ROLYDULDQ5HSXEOLFRI9HQH]XHOD1DWLRQDO$VVHPEO\Resolutions that Reiterates the Invalidity of PDVSA’s 2020
BondsGDWHG2FWREHUWUDQVODWHG(['
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 29 of 31
$WWKHWLPHRIWKH([FKDQJH2IIHUWKH3OHGJH$JUHHPHQWZDVDQDWLRQDOSXEOLF
LQWHUHVWFRQWUDFWEHFDXVHL3'96$DQG3'96$3HWUyOHRZHUHSDUWLHVWRWKH3OHGJH$JUHHPHQW
DQGLLWKH3OHGJH$JUHHPHQWLPSOLFDWHGLQDVLJQLILFDQWZD\9HQH]XHOD¶VPRVWLPSRUWDQW
LQGXVWU\DQGSODFHGWKH&,7*26KDUHVDWULVN
,QDGGLWLRQWKH3OHGJH$JUHHPHQWZDVHQWHUHGLQWRZLWKFRPSDQLHVQRWGRPLFLOHG
LQ9HQH]XHODLQFOXGLQJWKH7UXVWHHDQGWKH&ROODWHUDO$JHQW
7KH3OHGJH$JUHHPHQWZDVQRWDXWKRUL]HGE\WKH1DWLRQDO$VVHPEO\DQGWKXV
ZDVHQWHUHGLQWRLQYLRODWLRQRIWKH9HQH]XHODQ&RQVWLWXWLRQ
$VVHWIRUWKDERYHLQLWV6HSWHPEHU5HVROXWLRQWKH1DWLRQDO$VVHPEO\
FKDOOHQJHGWKH([FKDQJH2IIHUDQGWKHSOHGJHRIWKH&,7*26KDUHVDVFROODWHUDOIRUWKH
1RWHV,QDUHVROXWLRQDGRSWHGRQ2FWREHUWKH1DWLRQDO$VVHPEO\UHLWHUDWHGWKDWWKH
3OHGJH$JUHHPHQWZDVQRWDXWKRUL]HGDVUHTXLUHGE\WKH9HQH]XHODQ&RQVWLWXWLRQDQGWKDWWKH
1DWLRQDO$VVHPEO\¶VLQYHVWLJDWLRQVZHUHWKZDUWHGE\WKH9HQH]XHODQ6XSUHPH7ULEXQDOZKLFK
ZDVDFWLQJXQGHU0DGXUR¶VSROLWLFDOFRQWURO
7KH([HFXWLYH%UDQFKRIWKH86JRYHUQPHQWUHFRJQL]HVWKH*XDLGy
JRYHUQPHQWLQFOXGLQJWKH1DWLRQDO$VVHPEO\DVWKHRQO\OHJLWLPDWHEUDQFKRIJRYHUQPHQWLQ
9HQH]XHODDQGFRQVLGHUVWKH0DGXURUHJLPHLOOHJLWLPDWH
MXULVGLFWLRQDQ\FRXUWRIWKH8QLWHG6WDWHVXSRQWKHILOLQJRIDQDSSURSULDWHSOHDGLQJPD\
GHFODUHWKHULJKWVDQGRWKHUOHJDOUHODWLRQVRIDQ\LQWHUHVWHGSDUW\VHHNLQJVXFKGHFODUDWLRQ
ZKHWKHURUQRWIXUWKHUUHOLHILVRUFRXOGEHVRXJKW´
%ROLYDULDQ5HSXEOLFRI9HQH]XHOD1DWLRQDO$VVHPEO\Resolutions that Reiterates the Invalidity of PDVSA’s 2020
BondsGDWHG2FWREHUWUDQVODWHG(['
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 30 of 31
$QDFWXDOFRQWURYHUV\H[LVWVEHFDXVH3'96$DQG3'96$3HWUyOHRDUHLQGHIDXOW
RIWKHLUSXUSRUWHGSD\PHQWREOLJDWLRQVXQGHUWKH,QGHQWXUH
$FFRUGLQJO\3ODLQWLIIVDUHHQWLWOHGWRDGHFODUDWRU\MXGJPHQWWKDWWKH3OHGJH
$JUHHPHQWLVLQYDOLGLOOHJDOQXOODQGYRLGab initioDQGWKXVXQHQIRUFHDEOH
35$<(5)255(/,()
:+(5()25(3ODLQWLIIVUHVSHFWIXOO\UHTXHVWUHOLHIDVIROORZV
D $MXGJPHQWGHFODULQJWKDWWKH1RWHVWKH,QGHQWXUHDQGWKH3OHGJH
$JUHHPHQWDUHLQYDOLGLOOHJDOQXOODQGYRLGab initioDQGWKXVXQHQIRUFHDEOH
E $QLQMXQFWLRQSHUPDQHQWO\HQMRLQLQJWKHGHIHQGDQWVDQ\RZQHUVRUKROGHUVRI
WKH1RWHVRUEHQHILFLDOLQWHUHVWVWKHUHLQDQGDQ\RWKHUSDUWLHVFODLPLQJ
DQLQWHUHVWLQWKH1RWHVRUDVHFXULW\LQWHUHVWLQWKHSOHGJHG&,7*2
6KDUHVIURPDWWHPSWLQJWRHQIRUFHWKH1RWHVWKH,QGHQWXUHRUWKH
3OHGJH$JUHHPHQWRUIURPRWKHUZLVHDWWHPSWLQJWRH[HUFLVHDQ\ULJKWV
UHPHGLHVRUSULYLOHJHVSXUSRUWHGO\DULVLQJIURPDGHIDXOWRU(YHQWRI'HIDXOW
XQGHUWKH,QGHQWXUHRUWKH3OHGJH$JUHHPHQWDQG
F 6XFKRWKHUDQGIXUWKHUUHOLHIDVWKH&RXUWGHHPVMXVWDQGSURSHU
>6,*1$785(621)2//2:,1*3$*(@
Case 1:19-cv-10023 Document 1 Filed 10/29/19 Page 31 of 31
'DWHG2FWREHU 5HVSHFWIXOO\VXEPLWWHG
V.XUW:+DQVVRQ
.XUW:+DQVVRQ
-DPHV5%OLVV
-DPHV%:RUWKLQJWRQ
3$8/+$67,1*6//3
3DUN$YHQXH
1HZ<RUN1HZ<RUN
7HOHSKRQH
)DFVLPLOH
NXUWKDQVVRQ#SDXOKDVWLQJVFRP
MDPHVEOLVV#SDXOKDVWLQJVFRP
MDPHVZRUWKLQJWRQ#SDXOKDVWLQJVFRP
Attorneys for Plaintiffs
Petróleos de Venezuela, S.A. and PDVSA Petróleo,
S.A.
V7DULT0XQGL\D
7DULT0XQGL\D
-HIIUH\%.RUQ
:,//.,()$55 *$//$*+(5//3
6HYHQWK$YHQXH
1HZ<RUN1<
7HOHSKRQH
)DFVLPLOH
WPXQGL\D#ZLOONLHFRP
MNRUQ#ZLOONLHFRP
0LFKDHO-*RWWOLHE
.6WUHHW1:
:DVKLQJWRQ'&
7HOHSKRQH
)DFVLPLOH
PJRWWOLHE#ZLOONLHFRP