UBS Financial Services Inc. v. Bounty Gain Enterprises, Inc.

Filing 177

ORDER ON CROSS MOTIONS FOR SUMMARY JUDGMENT: denying 155 Plaintiff's Motion for Summary Judgment; denying 156 Defendant's Motion for Summary Judgment. Signed by Magistrate Judge William Matthewman on 4/12/2017. (kza)

UNI
TED STATES DI
STRI COURT
CT
SOUTHERN DI
STRI OF FLORI
CT
DA
CA SE N O .1 81
4- 603- - A TTH EW M A N
CV M

UBS FI
NAN CI SERVI
AL
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NC.
a N e J r ey c or ton,
w e s op a i
FL b
I ED y

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D.C.

VS.

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2
27

BOU N TY GA I EN TERPRI
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Defnda .
e nt
O R D ER O N CR O SS M O TI N S FO R SU M M A R Y JUD G M EN T
O

THI CAUSE i be or t Cou tupon Pl i ifco e - enda ,UBS Fi ncil
S
s f e he
r
antf/ unt rDef nt
na a

Ser c , l ' (t
vies nc.s '
UBSFS' M oton f Summa y J
'
)
i
or
r udgme g
nt DE

1 , a
551 nd

Defnda /
e ntcount - antf, Bouny Gai Ent ie , I ' Cç
erpli if
t
n emrs s nc.s Bount Gan') M oton f
y i'
i or

S mmay J d me t( 1 6 . Th Mo insaef l b ifd a rp f rrve Th Co r
u r u g n DE 5 1
e to r u l ree nd i e o e iw. e u t
y
he d a he r ng on t M o i on M a ch 24,2017. Se D E 1
l
ai
he tons
r
e
73. The Cour has r vi e t
t
e ew d he
M otons Re pons ,a Reples t e ie fl i t s c s ,a i ot r s dul a s i t
i , s
es nd
i , he ntr ie n hi a e nd s he wi e y dvi ed n he
prem i es.
s

BA CK G R O U ND
D e e ntBou y Gai Ent r i es I i a c por ton or ni d t de t l w s oft
f nda
nt
n e pr s , nc. s or a i
ga ze m r he a
he

Brts Vigi Ilndswih isprncpalpl eofbusne si HongKong. ( 1 p.1 ! 2)
iih r n sa
t t i i ac
i s n
DE 57, , .
Kwo ChiChe ($ r Cheung' li t s es r der s edie t ,a s ebe iir of
k
ung t .
M
' s he ol haehol , ol rcor nd ol nefcay
l
1UBSFS r e st K wokChiChe a < r Cheung'tr
efr o
ung s f .
M
' h oughoutt rpa s butBount Ganr f st Kwok Chi
hei per,
y i eer o

Bo ny Gan a da a t o ie rp e e ttv o Bo n y Gan. g 1 4 p 3 !1 ;DE 1 4, .
u t i n n u h rz d e rs n aie f u t i DE 5 , . , 5
6 p
3 !1 1 Plitf UBS Fna ca S r ie ,I c i a s c rte b o e - e lrr gsee wih te
, 5 . anif
i n il e vc s n . s e u iis r k rd ae e itr d t h
Unied St t Se iisa Exc ngeCo mison and i a memberoft Fi i Reg a o y
t
aes curte nd
ha
m si
s
he nancal ult r

Auh rt I (t1
t o i NC. $ NRA' . g 1 4,p 1 ! DE 1 4,p. 1 ! 1 UBS l tr ain l
y,
F
' DE 5 . , 2;
)
6
, 2.
n en to a
(t '2 me g it UBSFS durng Dec mbe of2009. g 15 p.2,!6;DE 1 p.1
$
UBSI' r ed no
)
i
e r
DE 4,
64, ,

: 1 Fr m M a 2 08t r u hJ n ay201 , g rLa (Mr La 'wa r gsee wihUBSI
6. o
y 0 ho g a u r
0 Ro e m 1 . m' s e itr d t
t
)
i Ho g Ko g. ( 1 4 p. ,! DE 1 4, 2 : 1 F o Jn r 2 0 tr ug De e e
n n n DE 5 , 2 9;
6 p. , 9 . r m a uay 01 h o h c mb r
201 M r La wasr se ed wih a wor f UBSFS. 1
2, . m
egit r
t nd ked or
d.
UBS AG 3 i aba ng i tt i l a e i a ope a i t rt lwsofSwiz ra
s nki nsiuton oc t d n nd r tng mde he a
t e l nd

wihab a c lc tdi Ho g Ko . g 1 4 p 1 ! ;DE 1 4, 1 : 1 UBS AG i n ta
t rn h o ae n n ng DE 5 , . , 3
6 p. , 3 .
so
me e o FNIA. ( 1 4 p 1 ! DE 1 4 p. , 41 I e ry2 1 Pee Ho wo kn f r
mb r f I k
DE 5 , . , 4; 6 , 1 : . n a l 01 , tr , r ig o
UBS AG i Hong Kong,a oa hed M r Che
n
ppr c
. ung a
bout i tng i Di t Domai M e a
nvesi n gial
n di

Gr u ,Ic (d G' . g 1 4 p 2,! 3 a p. ! 3;DE 1 4 p 2 !1 a d p. ! 3 .
o p n .t
DDM ' DE 5 , . 1 nd 4, 2
)
6 , . , 3 n 4, 2 J
Ev nu l , u t Ganp rh s d$ ,0 ,0 o DDM G so k. g 1 7 p. ! - 1
e tal Bo n y i u c a e 50 00 0 f
y
tc DE 5 , 3, :89 .
N a a i La of CM Zur c was a age ofBount G a n a M r Che
t le u
ih
n nt
y i nd . ung i r ga d t t
n e r o he

DDM G s ae i t n meofBo ny Gan g 1 4, 3 : 2 DE 1 4 p. , 22 . An e i
h r s n he a
u t i. DE 5 p. , 2 ;
6, 4! 1
mal
chan fom Nove rof2011bet e Natle Lau a Pe e Ho i l sa e lfom Na ai
i r
mbe
we n a i
nd t r
nc ude n mai r
t le
La t Ed Lt f d sa i çpla eki y no et tBount Gan a Li Shi ng ha c i r d
u o
msor t tng, i e s ndl t ha
y i nd u ya
s oure e
t you bot t s oc pow e f m a t or gi s r c r ii a e .For Bount Gai t
o
h he t k
r or nd he i nal ha e e tf c t s. .
y
n, he

DDM G s rshasgi t ber seedi t na ofChe Kwok Chi' ( 1 7,p.1 .
hae
scl o egitr n he me
ung
.' DE 54)
Cheungasç r Cheon 'hr
ç .
M
g't oughoutt rpa s. Forc it y i t sOr r t Cou tw ilr f t Kw okChi
hei per
onssenc n hi de , he r l eer o
Cheungasû r Cheu 'whih i how t Cou thasr ere t hi pr ousy. SeeDEs43,99.
t .
M
ng,
' c s
he r
ef r d o m evi l
2 UBS l enatonali notaPl ntf.
ntr i
s
ai if
3 UBS AG i no aPl ntf.
s t ai if

Howe r t s r wer r se ed i t na e tBount Gan Ent r ies l Atn:Clf
ve , he ha es
e egitr n he m s
y i
eprs , nc. t
if

Che KwokChi' ( 1 1 p.57;DE 1 p.1 .
ung
. DE 58- 5,
'
67, 21
M r Cheung ha a c t ra coun a UBSFS (ç
.
d usome c t t
i
***01 Acc
72 ounf' i hi i viua
) n s ndi d l

n me ( 1 4 p. :1 .DE 1 4 p 12 !7 . Mr La h n ld t i dvd l* * 7
a . DE 5 , 2, 0
,
6 , p. - , 1
. m a de he n iiua * 01 2
Ac o n f rMr Ch u ,ao g wih o h rUBS rp e e ttv sCh re Chi (û r Ch u'
c u t o . e ng l n t t e
FS e r s naie a ls u 1 . i '
M
)
a d Elie Ch ng ($ s Ch n ' g 1 7 p.3 ! 1 1 Kite Cha (lo k wn a Ho
n an e 1 . e g). DE 5 , , 2 . ti
M
n as no s n
He Cha ,Mr Che s asitnt hed a Powe of Ator y f Mr Cheung' pe s
ng nl . ung' ssa , l
r
t ne or .
s ronal

a c u ta UBS
co n t
FS. ( 1 4 p 3 :1 ;DE 1 4 p.3,!1 q Bo ny Gan n v rha a
DE 5 , . , 7
6,
7. u t i ee d n
a c u tmanan di iso n mea UBS o a UBS . g 1 4, 2, 7; 1 4, p.12
c o n i ti e n t wn a t FS r t I DE 5 p. ! DE 6 p - ,
! 1 F rh r Bo n y Gan n ve h d a c tme a re n i iso na wi UBS o
7 . u te, u t i e r a uso r g e me t n t wn me t
h
FS r
UBS . ( 1 4 p 2 ! ; 1 4 p 12 ! , )
I DE 5 , . , 8 DE 6 , p. - , 7 8 .
The DDM G soc r git e i Bount Ga n' nn was tans e r d t M r Che
t k e ser d n
y i s me
r f re o . ung'
s

pes na a c u ta UBSFS o J n 2 ,2 2. ( 1 4, 4, 2 DE 1 7 p. ,!2 1 M r
ro l c o n t
n u e 2 01 DE 5 p. : 4;
5 , 6 6. .
Che sg a s te asoc powe t UBSFS t efecuaet sta f . ( 1 p.
ung ined nd ubmitd t k
ro
o f t t hi rnser DE 54,

4 : 5 DE 1 4 p.5 : ) Bo n y Gan n v r p i a y c mp nsto t UBSFS o a y
, 2;
6 , , 25 . u t i e e ad n o e ain o
rn
a s cae p ro o UBS f ra yc mmo iiso sr ie . ( 1 4 p. !1 4 1 4, 3,
so itd es n f FS o n o dte r e vc s DE 5 , 3, 4 DE 6 p.
:1 1
4.
On J y 1 201 M s Cha r ques e t M r La o n an a counti Bount G a n'
ul 7, 2, . n e
t d hat . m pe
c
n
y i s

n mea UBSFS ( 1 4 p. ,: 8 DE 1 4 p.3 !1 ; 1 5 4, 1 . Ont a s med t ,
a t
. DE 5 , 3 1 ;
6 , , 8 DE 6 - p. )
h t a ae
M r La r s
. m e ponde t M s Chan' r ques t o n a Bount G a n ac ounta U BSFS by s ndi
d o .
se
t o pe
y i c
t
e ng

he t doc nttonne esa yt ope ac port a ountf Bount Gana UBSFS. (
r he ume ai c s r o n or ae cc
or
y i t
DE
1 p.3,:1 DE 164,p.3,!1 ,DE 1 4,pp.2- . Howe r t ac ounto ni
54,
9;
9.
65541
ve, he c -pe ng

docu e ss ntby M r La t M s Cha wer neve co plt d,e cut orr t ne t UBSFS
m nt e
. m o . n
e
r m e e xe ed, e ur d o

b Bo ny Gan. ( 1 4, p
y ut i
DE 5 .

! 0 DE 1 4 p. 4 : 0 . W ih u c mpein o
2;
6,
, 21
t o t o lto f

ac ountope ng docum e s an a ount a UB SFS ca
c
- ni
nt ,
cc
t
nnot be o ne f a pot nta c t er
pe d or
e i l us om .

g 1 4, 3 ! ; 1 4 p. , 21.
DE 5 p. , 21 DE 6 , 4 ! 1
I.
I

PR O C ED UM L H I
STO R Y

On o a
r boutSe embe 1 201 Bount Gan En e rs s I .s
pt
r 0, 4,
y i t p i e , nc ubmit a St t me
ted
a e nt

o Cli t FI
f am o NRA Dip t Re ou in. ( 1 4 p.1 !1 DE 1 4 p 1 :1 . On De e r
s u e s lto DE 5 , , .
,
6, . , 1
c mbe

2 2 4,UBS fld isCo an f rDe lrtr J d me ta d Ij n tv Reifa an t
4, 01
FS ie t mplit o ca ao y u g n n n u cie le g i s
Bount Ga n i t s Cour. Se DE 1. I t Compl i ,UBSFS e ai t ti i a Ne
y i n hi
t
e
n he
ant
xpl ns ha t s
w

J re - s d FI
esy bae NRA me e . ( 1 p.2 . UBSFS sae t t Bomt Gan isi td
mb r DE , )
tts ha t y i n tt e
u
FI RA a bir ton a i tUBSFS a i s e ng upwa ds offve m ilon dola s i da a s
N
r ta i gans
nd s e ki
r
i
li
lr n m ge ,

ao g wi p ej d me titrs a d c ss ( 1 p.3 . Ac o dn t UBS i n v rha
ln t r -u g n n eet n o t. DE , )
h
c r ig o
FS, t e e d
a a e m e t a bir t wih Bount Ga n,UBSFS di no c e t a bir to Bount Gan
n gr e nt o r tae t
y i
d t ons nt o r ta i n,
y i
i not a c t
s
usomer of UBSFS,Boun y Gan ne r ha a br r ac ount wih UBSFS,a
t
i ve d
oke age c
t
nd
Boun y Gan di notpur s a s urtesfom UBSFS orr eve a i t e a ce or
t
i d
cha e ny ec ii r
ec i ny nvesm nt dvi
g da fo UBSFS.
ui nce r m

Cons nty,UBSFS m ant nst ti i notr r d t s
eque l
i ai ha t s
equie o ubmi
t

t FI abtain 1 Theeo e UBS i iilyrq e tdt t h sCo r e trj d me t
o NRA r irto . d.
rf r , FS ntal e u se ha t i u t ne u g n
a ans Bo n y Gan p ei nai a d p nna e ty e j i n Bo n y Gan fo p o e dng i
g i t u t i r lmi rl n e n n l nonig u t i r m r c e i n
y
a wa wih t FI
ny y t he NRA ar ta i de l rng t tBount Gan' diput wih UBSFS i not
bir ton, c a i ha
y i s s e t
s
a bir bl awa di U BSFS is a t ne s f es a cos s as oci t w ih t s a ton, a a
r t a e, r ng
t tor y' e nd
t s a ed t hi c i
nd ny

oh rf rh rrle t Co r d e j t n p o e . g 1 p. 1
t e u te eif he u t e ms us a d r p r DE , 7 .
I Bo y Gan' Ans ,i a lge t e a fr tve de e es f itr t sa e a cai ,
n unt
i s wer t le d hr e fima i
f ns : a lze o t t
lm
4

t ed crn so wav ra /re tp e , ndu ce nh n s g 1 , 6 .
h o ti e f ie ndo so p la n la a d . DE 8 p. j
On J y 9,201 f l ng a e denta y hea i t underi d i s a Re ta
ul
5, olowi n vi i r
rng, he
sgne s ued
por nd
Re
commendai r omm e ng t tt Diti tJ
ton ec
ndi ha he src udgegr ntPli ifsM oton f Pr lmi r
a
antf
i or ei na y

Ij n to g 7 t p e n t e FI
nu cin DE 1 o rve t h NRA abi ain fo g ig f r r S e DE 4 . On
r t to r m on o wad. e
r
3
Nove r 1 201 t Diti t J
mbe 9, 5, he src udge a ed t Re t a Re m m e ton, ove ze
dopt he por nd co
nda i
m ld

Bo ny Gan' o j cin ,is e a p ei n r ij ncin i fvo ofUBS ,a d r q ie
u t i s b e to s su d rlmi ay nu to n a r
FS n e urd

UBS t po ta$ 50 0 s c rt b n Se DE 5 . Th Co r tmp r rl e j ie Bo ny
FS o s 2 ,0 e u iy o d. e
9
e u t e o a i n on d u t
y
Gan fom r quii UBSFS t pa tci t i FI
i r
e rng
o ri pae n NRA a bir to f Afe t unde sgne
r tai n. #.
tr he
ri d

e trd isRe o ta d Re o n ain b tb fr t e Co r is e isprlmi r ij n t n,
n ee t p r n c mme d to , u eo e h u t s u d t ei nay nu ci
o
Bount G a n f l d a A m e
y i ie n
nded St t m e of Cl m i t FI R A a bir ton, a ng M r
a e nt
ai n he N
r tai
ddi
.

Chemg i vi ly a apa t a a ng RogerLa i vi l asapa t Se DE 55.
t ndi dua l s
ry nd ddi
m ndi dualy
ry. e

S bsq e t b t p risc nsn e t U. ma itaej g j rs ito a d te c s
u e u nl o h a t o e td o S. gsrt ud e u idcin, n h a e
y,
e
wa r e r d t t unde sgned. Se DEs 65,66. On Aprl11 201 t unde s g de e
s efr e o he
ri
e
i , 6, he
r i ned nid
Bount Ga n' Cor e t d M oton t Se A s de O r r G r ntng Pl ntf s M oton f Pr i i r
y i s rce
i o t i
de a i
ai if
i or elm na y

Ij n to g 7 1 S eDE 9 Th c s i c re ty stfrt s d y tilp ro b gn ig
nu cin DE 3 . e
9. e a e s u rn l e o he - a ra ei d e inn

o M o d y M a 2 2 7 o UBS r q e tf ra p nna e t ij nci n a d d ca ao y
n n a , y 2, 01 , n
FS' e u s o e n n nu to n e lr tr
j d me ta an tBo ny Gan. Boh p rish v fld mo insf rsz r j dg n (
u g n g is u t i 4 t a t a e ie to o l
e
mmay u me t DES
1 1 ,whiht Co twilnow a e s
55, 561 c he ur l
ddrs .

4Th p rish v a re t h l Bo nyGansCo necam i a e a eu tl fe tep r n ntnu cina d
e at a e ge d o od u t i' u trli n b y nc niatr h ema e ijn to n
e
d caaoyj d me camsaer ldu o b teCo r. ( 1 6, 2, 1. Th rfr ,hsOre d e n t
e lrtr u g nt li r ue p n y h u t DE 5 p. n. ) eeoe ti d r o s o
a es Bouny Gai sCouner am .
ddr s
t
n'
t cli

1 1 UBSFS'M OTI FO R SUM M ARY JUD GM ENT I 1551
1.
ON
DE
A . M oton
i

UBSFS tldisM oi nf rS mmay J d me t( 1 5 a d S ae n o Un o tse
ie t to o u r u g n DE 5 ) n ttme t f c n etd

M aeilFa t g 1 4 o F b u r 2 ,2 7. I UBSFS'M oin,i r q e t t tt Co t
tra cs DE 5 ) n e r ay 4 01 n
to t e u ss ha he ur
e trap r n n ij n to a d ad ca ao yj g n i f v ro UBSFS. g 1 5 p. 1
ne ema e t n u ci n n
e lrt r ud me t n a o f
DE 5 , 2 .
UBSFS a gue t t be us Bo t Gan di notha a a e
r s ha , ca e un y i d
ve n gr emen i w rtng t abir t wih
t n ii o r ta e t
UBSFS,a be us Bount Gai wa no a Sc t
nd ca e
y n s t lusomer'ofUBSFS unde FI RA Rul 1
'
r N
e 2200,

Bo n yGanc nn tf reUBS t abtae g 1 5 p 8 1 1
u t i a o oc
FS o r irt. DE 5 , p. - 3 .
Ac r ng t UBSFS, t defnii of c t
co di o
he i ton
usomer ta us d i FI
, çs e n NRA Rul 1
e 2200,

g a )apes n o e tt ç o a b o e o a d ae,wh p rha e c mmo iiso s rie
me ns
ro r niy, n t r k r r e lr o u c s s o dte r e vc s
fom a FI
r
NRA m e r i t c s of t m e be ' busnes aci te i s f r as t e
mbe n he our e
he m rs i s tviis n o a
hos
ac i te a e r aed by Fm lA- m ey i sm e banki a s urtesbusnes a tvii s''
tvii s r elt
t nn l nve t nt
ng nd ec ii
i s c i te .'

( 1 5 p.1 ) UBS alg st tBo ny Gan n v rp rh s d c mmo iiso s r ie
DE 5 , 0 .
FS l e ha u t i e e u c a e o dte r e vc s
e
fo UBS
rm
FS. ( 1 5 p.1 ) UBS camst tf u t Gan s e st ag ea a l a
DE 5 , 3 .
FS li ha t ny i e k o r u n mag m
Bo
of m i i t t i is vi w , de onsr es cus om e s a us' whi h i a i pr
nuta ha , n t e
m tat
t r tt ,
' c s n m oper a t m pt t
te
o

c e c a myra of f c s i o a fmc i l eq va e of a c t e r l tons p. 1
oals e
id
a t nt
t tona ui l nt
usom r e a i hi
d.

Th r f r,UBS c n e d t a i h s s wn alo t e ee n so a p r n n ij n to
ee o e
FS o tn s h t t a ho l f h lme t f ema e t nu cin,
i udi s c s on t m e is of is c a m ,a t r o e t s Cour s d e er a per a
ncl ng uc es
he rt
t l i nd he ef r hi
t houl nt
m nent

ij n to b ni g Bo n y Gan fo p o e dn wih t FI
nu cin a n u t i r m r c e ig t he NRA a btai n g 1 5 p
r i to . DE 5 , p.
r
1 1 .
3- 4)
l s
n uppor of is M oton,UBSFS tl a po to oft ta c i oft de ii o
t t
i
sed
ri n
he r ns rpt he poston f
Ge Ca a i k, Bo y G a n' e r w ines i t s c e. Se DE 1 1 A l o a t he t
ne r s c
unt
i s xpe t t s n hi as
e
55- .
s tac d o
6

UBSFS'Mo in i c re p n e c b t e c ran idv d asi s p o to t e M oin (
to s o r s o d n e ewe n e ti n ii u l n u p r f h
to DE
1 52 , o u n salg dy s p rig t Mo in ( 1 5 3 , or s n e c b t e Kite
5 -1 d c me t le e l u po t he to DE 5 - 1 c repo d n e ewe n ti
n
Cha (h a ssa to M r Ch u )a d Ro e La ( rp e e ttv o UBSFS ( 1 54,
n te sitn f . e ng n g r m a e r s n ai e f
) DES 5 1 5 , De e nts Ans s t Pl ntf s Fis Se of l er t i ( 1 61
55-1 f nda '
wer o ai if
rt t
ntrogaores DE 55- ,

c rep n e c rg r ig c n e so o teDDIs ae t DDM G s a e ( 1 5 7 , p ri n
o rs o d n e e a dn o v rin f h
h rs o
h rs DE 5 - 1 a o t
o
o t d poston ta crptofEli Cheng ( c port rpr enttveofUBSFS)( 1 81
f he e ii r ns i
ane
a or ae e es ai
DE 55- ,
a a po ton oft de ii ta crptofShe Stae (
nd
ri
he poston r ns i
ny rly UBSFS'Rul 30( ( cor ae
e b)6) port
r e e ai lDE 1 - .
eprs nttve l 55 91
B . Res
ponse

Bo ny Gan fld aRe p ns ( 1 3 i o p sto t UBSFS'M o in f rSu r
u t i ie
s o e DE 6 1 n p o i n o
i
to o mma y
J d me t a Re p n e ( 1 4 t UBS
u g n,
s o s DE 6 ) o
FS'Sae n o Un ip td M ae ilFa t,a d a
ttme t f d s u e
tra cs n
De lrto o Da i C.Sl r( 1 5 wih e hbt atc d t o p s UBS M oi n f r
caain f v d
i DE 6 1 t x iis ta he o p o e
ve
FS' to o
Summ a y J
r udgme . Bount Gan c ends t t t e de i r r c d de onsr t t t a
nt
y i ont
ha he vi nta y e or m taes ha

p r n n ij n to s ud no is e g 1 3 p 2,8 . Bo ny Gan ag e t a f tte
e ma e t n u ci n ho l t su . DE 6 , p. )
u t i ru s h tt h
a
v r lat ar a o a l ifr n ec n b ma et a Bo ny Ganwa aUBSFSc t me . (
e y e s, e s n be n ee c a e d h t u t i s
uso r' DE
'
1 p.8 .
63, 1
Bount Gan as e t t tUBSFS r r s r i est Bount Ga n by t ki pos e son
y i s rs ha
ende ed e v c o
y i
a ng s s i

o Bo ny Gan' DDM G s a e i Mr Che n sidviu lUBSFS a c u t ( 1 3 p 9 .
f ut i s
h rs n . u g' n i d a
c o n . DE 6 , . )
Ac or ng t Bount Gan,UBSFS r pr e e l h i e na l a e e naly' t t Bount
c di o
y i
e es nt d i
bot nt r ly nd xt r l ' ha
y
G a n w a is c t m e . 1
i
s t us o r d

Bount G a n cont nds t t t D D M G s r w e e pr ry
y i
e
ha he
ha es r ope l

r s e e i t nn e of Bount G a n a not s
egit r d n he m
y i nd
uppos d t be i t i vi ua na e of M r
e o
n he ndi d l m
.

Ch u g, salg d b UBS
e n a le e y
FS. ( 1 3 p 2- 1 F rhe,Bo n yGan camsta UBS
DE 6 , p. 3 . u t r u t i li h t FS
7

wa pr di s r i esf Bount Gan, M r Che
s ovi ng e v c or
y i not . ung, a e Bount Gai wa t onl one
bec us
y n s he y

t a h dc n r l v rt eso k a iwa i Bo nyGan' n me ( 1 3 p. 0 .
h t a o to o e h t c , s t s n u t i s n . DE 6 , 1 1
Ne ,
xt Bount Gai ar st tUBSFS'M o i m us be de e bec us t Cour hasnot
y n gue ha
ton
t
ni d a e he
t
r ol Bount Ga n' a fr ai def ns r r ng Bount Gai sr que tf UBSFS t ope
es ved
y i s fim tve e e ega di
y n' e s or
o n

a a c u t i is n me ( 1 3 p 1 ) Bo ny Gan cams t a i a k d UBS
n c o n n t a . DE 6 , . 1 . u t i li h t t s e
FS
(pe iial aUBSFSr prs nttve Roge La t ope a a co ti isna muli etmes
s cfc ly,
e e e ai , r m) o n n c un n t me tpl i
butwa dis de fom ope ng t a ount whi h wa neg i nt I
s s ua d r
ni he cc , c
s lge . d

M or ve ,Bount
eo r
y

Gan a s t t ti n UBSFS vet d,a oved,and ac eptd t de i ofBot y Gan'
i s ers ha i
whe
te ppr
c e he post
mt
i s

r titd DDM G s rsi o Mr Chel ng' ***01 ac ount UBSFSwai t a g nt i
esrce
hae nt . ul s
72 c ,
ved he r ume s t
now pr f s' ( 1 pp.11 1 .
ofer. DE 63,
'
- 21
Ac or ng t Bount Ga n,at
c di o
y i lhough UBSFS r nde ed pr es i
e r
of sonals r c f Bount
e vies or
y
Gan f al ta ye r UBSFS eihe wai d is c r es orne r c r d Bount Gai f is
i or mos
a,
t r ve t ha g
ve ha ge
y
n or t

s r c ,whih i why Bouny Gai ne rma adie tpayme f s r ie t UBSFS. (
evies c s
t n ve de r c
nt or e vc s o
DE

1 3 p 5 1 1 Bo ny Gan c n e d t tt i d e n tp e l e i fo h vn a c tme
6 , p. , 2 . u t i o tn s ha hs o s o r cud t r m a ig uso r
rlto hpwihUBS
eains i t
FS. ( 1 3 p.1 j
DE 6 , 2 .
Fi ly, Bount Gai a gues t t U BSFS ha no m e t s a r f r a pe m a nt
na l
y
n r
ha
s t t he t nda d o
r ne

ij n to ( 1 3 p.1 1 Th rf r ,Bo n y Gan rq e t ta te Co r d n UBS
nu cin. DE 6 , 9 . eeo e u t i e u ss h t h u t e y
FS'
Mo inf rSu r J d me t ( 1 3 p. 0 .
to o mma y u g n . DE 6 , 2 1
C. Repl
y

UBSFS fl a Re y g 171 ,wih at he e bis t Bount Gan' Re pons
ied
pl DE 1 t tac d xhi t, o
y is s e
c ai i t Bount G a n c t ( c l cto of i ons que i , i m a e i , ir e nt a
l m ng hat
y i ies $ ole i n
a
nc e ntal m t ral r el va nd
i dm i s bl f t ,' tem ptng t m a t Cour putt t rf t i or r t cr a e a c t e
na s i e ac s ' a t
i o ke he
t
oge he ac s n de o e t usom r

8

r lto s i a wa n da an ti Cii o p Gl b l r esv Ab a , 61F.d2 8 2 6( dCi.
eain hp, s r e g is n t u o a Ma k t . b r 7 3 6 , 7 2 r
gr
201 . ( 1 ,p.1. Ac r ng t UBSFS,Bo t Gai sa g ntt tUBSFS waved
4) DE 71 1
co di o
uny n' r ume ha
i
t f esBount Gai woul ha pad i m e il sbe us a f est twe ef t
he e
y n
d ve i s rtes ca e ny e ha r orhcomi woul
ng
d
ha be n pa d by M r Che fom hi pe s
ve e i
. ung r
s r onala counta a wave woul ha be n f r
c
nd ny i r
d ve e o

Mr Ch u g' p ro a a c u t g 1 ,p 2 3 . UBS man ans t a Mr Ch u
. e n s es n l c o n . DE 71 p. - 1
FS iti h t . e ng
be met owne oft DDM G s r t a i a i oflw'whe t s e we eta f re
ca he
r he
ha es i pplc ton a ' n he har s r r ns e r d
by

t hi pes lac ountatUBSFS aong wih a sg soc powe . ( 1 ,p.31 Furhe,
o s rona c
l
t ined t k
r DE 71
. tr
UBSFS a lges t t t DDM G s e we e s
le
ha he
har s r uppos d t be r se e i t na e of M r
e o
egitr d n he m
.

Ch u g idviu ly whe te we eis e g 1 , 4j
e n ,n i d al, n h y r su d. DE 71 p. .
I
V. BO UNTY GAI S M O TI N FOR SUM M ARY JUDGM ENT I 1
N'
O
DE 561
A . M oton
i

Bo nyGanfldisM oin f rS mma yJ g n ( 1 6 , ae n o Unds u e
u t i ie t to o u r ud me t DE 5 1 Sttme t f ip td
M aeilF csi S p o t fisMo inf rS mmayJ d me t( 1 7 , n t De lrto of
tra a t n u p r o t to o u r u g n DE 5 1 a d he caain
Da i C.Si e g 1 8 wih v ro se hb t atc e . I Bo ny Gan' M oin i alg s
vd
l r DE 5 ) t ai u x iis ta h d n u t i s to , t le e
v
ta UBS çn e t n d Bo n y Gan a d M r Ch g l g it o e cin a tn t r u h t e
ht
FS ' trwie u t i n
i
. e u n no n le t cig h o g h
***01 Acc
72
ount f t pur e of ha i t DDM G ta a ton; a Bount
or he
pos s
ndlng he
r ns c i
nd
y

Ganch g ng aee tte t se r s lto i abi ain f rt eh l c u e b UBSFS a d
i/ euj r n i d o e k e ou in n r t to o h a' a s d y
l
r
m
n
isrpr e ai saii fom t ta a ton. g 1 p.4)
t e esnttve rsng r he rns ci ' DE 6, .
'
Fis,Bount Gai a gues t tt r i a lbe a f der lpolc f vorng a bir ton and
rt
y
n r
ha he e s i r l e a
iy a i r ta i
t t a do s co e ni t s pe of a i r e i s s s d be r ol d i f vor of
ha ny ubt nc r ng he co
r btabl s ue houl
es ve n a

a birton. ( 15 p.5 .
r tai
DE 6, 1
Se ond,Bount G a n c a m s t t U BSFS' a bir ton pr s on i br y w rte a
c
y i l i ha
r ta i
ovi i s oadl il n nd

s o d e c mp s t e isa t d s ue b t e Bo ny Gan a d UBSFS. ( 1 6 p.6 .
h ul n o a s h n tn ip t ewe n u t i n
DE 5 , )
Ac or ng t Bount Gan,i a s pa a e c e i vi UBSFS,M ara Luia Be nalv.UBS
c di o
y i n e r t as nvol ng
i
s
r
l e natonal Cas N o.1: - v- 63- M H i t Sout r Diti ofFl i UBSFS a gue
ntr i , e
05 c 221 W
n he
he n srct
orda,
r d
t t is ma t y a bir ton ca e wa br d e
ha t
nda or r tai lus
s oa nough t cove a i vi ua ' i t e
o
r n ndi d ls nvesm nt

v hce whc i t eo p st o wha UBS a g si teisa tc s . @ 1 6, 7 .
e il, ih s h p o ie f t FS r ue n h n tn a e DE 5 p. )
Thid, Bo t Gai c e
r
un y
n ontnds t t at
ha , lhough i doe not ha a wrte a e nt t
t s
ve
itn gr eme o
a bir t wih UBSFS, a bir ton of is cai s i wa r nt d t r t t e e pto
r tae t
r ta i
t l m s r a e mde he hr e xce i ns
r c ni e by t El ven h Cic t eq t bl esoppel a s fci nty c os r l tons p be w e n
e og z d
he e t r ui: uia e t
, ufi e l l e e a i hi t e

tesg ao ya n n sg ao y d fn a t, ndt id p rybe eiir sau . ( 1 6 p.8 .
h in tr nd o -i n tr e e d n s a hr - a t n fcay tt s DE 5 , )
Boun y Gan a guest tUBSFS s d be e t d fom a gui t ti s d notbe f c d t
t i r
ha
houl
soppe r
r ng ha t houl
or e o
a bir t wih Bount Gai be us i t t e c o
r tae t
y
n ca e t ook he xa t ppos t pos ton i a s m ia ca e M ar a
ie
ii n i l r s ,
i
L uia Be nal v UBS I e natonal Ca e N o. 1: c 221 W M H i t So he n D i t i t of
s
r
.
nt r i , s
05- v- 63n he ut r
s rc

Flrd . ( 1 6 p 9 . Bo n yGan as a g e ta t eei as tce tyco er lto s i
o ia DE 5 , . )
u t i lo r u s h t h r s uf in l ls eain hp
i
be w e M r Che
t en . ung and Bount G a n t r qui e UB SFS t a bir t w ih bot pa tes be us
y i o e r
o r ta e t
h ri
ca e

Mr Ch u g wa te s l s ae od r s l dr co ,a d s l be ei ir o Bo n y Gan. (
. e n s h oe h r h le , oe ie t r n o e n tcay f u t i DE
1 6 p 1 - 3 . Fial Bo n y Gan a s rs t a i i a tidpa t b n tcay o te
5 , p. 2 1 ) n l
y, u t i se t h t t s hr - ry e ei ir f h
r l tons p be w ee U BSFS a M r Che
e a i hi t n
nd
.
ung be us U BSFS kne t t i was goi t
ca e
w ha t
ng o

lqui t t soc owne bya rgit e i t nameofBounyGan. ( 1 p.1 .
i dae he t k
d nd e serd n he
t i DE 56, 41

Theeo e Bo ny Gan a kst e Co r t e tr s mmay j d me ti is f v ra d
rf r, u t i s h u t o ne u r u g n n t a o n
co lUBSFSt s tt FI
mpe
o ubmi o NRA abir tonwihBount Gai ( 1 p.1 .
r tai t
y n. DE 56, 5)
A ta he t t Dec a a i of D a d C.Sive i t f l t a c i ofD a d Pa uka ts
t c d o he
l r ton
vi
l r s he u l r ns r pt
vi ul ii '

(h e p r win s o UBS d p sto g 1 8 1 ,ap rin o t ed p sto ta cito
te x e t t e s f FS) e o iin DE 5 - 1 o to f h e o ii n rnsrp f

BrdEa e s n ( G' o ti ec u e)( 1 82 , p ri no t d p iinta s rp o a
a v n o DDM S u sd o ns l DE 5 - 2 a o t f he e osto rn cit f
o
UBS c r o aerp e e ttv , an Ch n g 1 8 3 , p ri no t ed p sto ta cit
FS o p rt e r s naie Elie e g DE 5 - 1 a o to f h e o i n rnsrp
i
ofUBSFS'desg td Rul 30( ( coport rprs nttve,Shery Stae ( 1584j a
inae
e b)6) r ae e e e ai
r rly DE - ,
pori oft de ii ta ci ofa UBSFS c port r prs nttve,J e Ca sdy (
ton he poston rns rpt
or ae e e e ai os ph si DE

1 B 5 ,a p ri n o t e d p sto ta citof a UBS c r o ae r p e e ttv ,Se e
5 - ) o to f h e o i n rnsrp
i
FS o p rt e r sn aie tv n
l a t g 1 8 6 ,De o i o Ex bt#1 g 1 8 7 ,De osto Ex bt# 3 g 1 8 8,
nfne DE 5 - 1 p st n hii 6 DE 5 -1 p iin hii 2 DE 5 - 1
i
De st n Ex i i # 4 g 1 8 9 ,De osto Ex bt# 9 g 1 8 1 1 De o iin Ex i t
po ii
o h bt 2 DE 5 - 1 p iin hii 2 DE 5 - 0 , p sto hbi
# 0 g 1 8 1 1 De osto Ex i t# 2 g 1 - 2 ,De o iin Ex i t# 9 g 1 8 1 1
3 DE 5 - 1, p iin hbi 4 DE 58 1 1 p sto hbi 4 DE 5 - 3 ,
De ii Exhi t #5l g 1 1 ,UBSFS' Re pons t Defnda ' Fis Re t f
poston
bi
DE 58- 41
s e o e nts rt ques or
Admisons( 158 15 ,t M oi t CompelAr tai fld i M araLuia Ber alv.UBS
si DE - 1 he ton o
birton ie n i s
n

l tr a in li t e S uhen DititofF o ia Ca eNo.10 -v-21 3 W M H ( 1 8 1 )
ne n to a n h o t r src
l rd , s
:5 c 2 6 DE 5 - 6 ,
t Re y i s
he pl n uppo tof t M oton t Com pe A r ta i fl d i M ar a Lui a Be nalv. UBS
r
he
i o
l bir ton i e n
i
s
r

l tr a in i t e S uhen DititofF o ia Ca eNo.10 -v 2 6 - M H ( 1 8 1 )
ne n to al n h o t r src
l rd , s
:5 c - 21 3 W
DE 5 - 7 ,
Bo n y Gan' Ame d d Sttme to Cli i t e FI
ut i s
n e ae n f am n h NRA a btai n ( 1 8 1 1 a c a t
r i to DE 5 - 8 , h r
r
c
ompa i t cl msfom t orgi St t me ofCl i t t Am e d Stt m e ofCli
rng he ai r he i nal a e nt
am o he
nde a e nt
am

i t e F NRA abtain ( 1 8 1 1 d c me t p o u e b UBSFS Bae lb ld UBS
nh I
r irto DE 5 - 9 , o u n s r d c d y
ts a ee
0 010 2 g 1 8 2 1 d c me t p o u e b UBSFS Bae lbee UBS 1 2 - 9 4 (
4 - 40 DE 5 - 0 , o u ns r d c d y
ts a ld
9 0 1 2 DE
1 821 , n d c me t p o u e b UBSFSBae lbee UBS 3 45 3 4 ( 1 8 2 1
5 - 1a d o u ns r d cd y
t s a ld
5 - 5 6 DE 5 - 2 .
B . Res
ponse

U BSFS tl a O ppos to M em or ndum t D e enda ' M oton f Sum m a y J m e
i ed n
ii n
a
o f
nt s
i or
r udg nt

( 1 a Repons ( 1 t Bount Gan' Sttme ofUndiput M aeilFa t,
DE 67) nd s e DE 66) o
y i s ae nt
s ed tra cs
w ih a t c
t ta hed e bis Fis ,U BSFS a g t ,whie f der l polc does f vor a bir to
xhi t . r t
r ues hat
l e a
iy
a
r t a i n,

t tpolc doesnota y whe t is bef r t Cour i whehe t pa te e r e e e
ha
iy
ppl
n he s ue o e he
ts
t r he ri s ve nt r d

it a abtain a re n . ( 1 7, 41 Be a eUBS a dBo nyGanddn te tr
no n r irto g e me t DE 6 p. . c us
FS n u t i i o n e
i o a a bir ton a e nt UBSFS cl mst tBount Gai c nno f ce UBSFS t a bir t
nt n r ta i gr eme ,
ai ha
y n n t or
o r tae.

t 1 7 p. 1 S c n , FS c n e dst t hea r e n bewe nUBSFS a dM r Che ng
DE 6 , 5 . e o d UBS o tn ha t g e me t t e
n . u
d no e end t Bount G a n.
oes t xt
o
y i

Furhe , U BSFS a l es t t t Be nal c s Bo y
t r
leg ha he r
a e unt

Gai dic s s i isM oton i ditnguiha e bec us t pl ntf i t tca e had sgne a
n s us e n t
i s si s bl
a e he ai if n ha s
i d n

abtain a r e n i r g r t t ea c u tt a s ewa c aln ig i he c mplit (
r irto g e me t n e ad o h c o n h t h s h l gn n r o an . DE
e
1 7 p 5 6 . Thr UBSFS ag e ta t e Flrda d crn o e utbl e tp e d e no
6 , p. - 1
id,
r u s h t h o i o ti e f q ia e so p l o s t
a py i t i c s b c u eFlrd lw d e n ta pl t t i c s . ( 1 7 p 6 7 . Fo rh
p l n hs ae e a s o ia a o s o p y o hs a e DE 6 , p. - 1
u t,
UBSFS cli st tBount Gai a M r Che a e dif r ,a t 2009 a e m e sg d
am ha
y
n nd . ung r fe ent nd he
gr e nt i ne
bewe n UBSFS a M r Che doesnoti c t t ti wasf t be i ofBount Gan i
t e
nd . ung
ndi a e ha t
or he neft
y i n

a wa ( 1 pp.9- 0) Ac or ng t UBSFS,t fc t t Bouny Gan a M r
ny y. DE 67,
1 . c di o
he a t ha
t i nd .
Che
ung ha a c os r l tons p does not pr de a bass t f c UBSFS t a bir t wih
ve l e e ai hi
ovi
i o or e
o r tae t

Bo n y Gan. ( 1 7,p .1 - 1. UBS alg sta i a c p e t e DDMG s a e it
u t i DE 6 p 0 1 )
FS le e h t t c e td h
h rs no
M r Cheu sa counton be l ofM r Che noton be l ofBo y Gan. ( 1 p.
. ng' c
haf
. ung,
haf
unt i DE 67,
Fi l U BSFS a s t t t Bount G a n' a gum e t ti w a a t r pa t be f c a y
naly,
s ers ha
y i s r
nt ha t s hid- r y ne i i r
of t r l i hi bet e n U B SFS and M r Cheung i fawed be us Fl i l do no
he e atons p w e
.
s l
ca e or da aw es t

a pl. ( 1 7 p. 1 . M oe v r UBSFS a g e ta M r Ch u g i p rung FNRA
p y DE 6 , 41
r o e,
r u s h t . e n s us i I
a bir ton unde t s m e c a m s Bo y G a n m a i t s ca e;how e r Bount Ga n a
r ta i
r he a
li
unt
i
kes n hi s
ve ,
y i nd

M r Che c
. ung mmotbohr ove dama fom t ecai . ( 1 p.1 .
t ec r
ges r hes l ms DE 67, 51
C . Repl
y

Bo y Gai fl d a Re y M e or ndum i Furhe Suppor ofisM oton f Summ a y
unt
n ie
pl
m a
n t r
t t
i or
r

J d me t ( 1 9 a d De lrto o Da i C.S le ( 1 0 wih atc e e iis
u g n DE 6 ) n
caain f v d
iv r DE 7 ) t ta h d xhbt.
Ac or ng t Bount Gan,e tbl e t
c di o
y i quia e soppela i i t sca eunde t r cogni d e t ppe
pples n hi s
r he e
ze so l

sa r ( 1 pp.4- . Furher Bount Gancli t tisaler tvee t
tndad. DE 69,
51
t ,
y i ams ha t t nai soppelt or
he y,
whih i r cog z by t Elve h Cic t r quiest Cour t anayzet c os r ltons p
c s e nied
he e nt r ui, e r he
t o l he l e ea i hi

b t e Bo ny Gan a M r Ch u . ( 1 9, p. - ) Bo ny Gan alg sta UBSFS
ewe n u t i nd . e ng DE 6 p 5 6 . u t i le e h t
ha no ba i t beleve t t i was a ng f M r
d
ss o i
ha t
di or .Cheung i vi ly a not Bo t Gan.
ndi dua l nd
un y i

( 1 p.71 Bount Gan c endst tUBSFS te td Bount Gai sa M r Che s
DE 69, .
y i ont
ha
rae
y n' nd . ung'

itrssi teDDM G so k a d te * * 7 a c u ta o ea t s me g 1 9 p 8 .
n ee t n h
t c n h * 01 2 c o n s n nd he a . DE 6 , . )
Acc di t Bount Gan,UBSFS hasû aied t pr s ta fnna i e de t de ea Bount
or ng o
y i
ç l o e en fi tve vi nce o f t
f
y

Gai sM oton'a dee es ( 1 p.11 .
n' i ' nd fns . DE 69, j
H EA R I G O N TH E M O TI N S
N
O

Th Co r h l ah aig o tep ris s mmayj d me tmo in o M ac 2 , 01 .
e u t ed e rn n h a t ' u r u g n to s n rh 4 2 7
e
Se DE 1 3. UBSFS'c
e
7
ouns l a gued t t t onl r e t i r i t s ca e i whehe
e r
ha he y elvan nquiy n hi s s
t r
Bo y Gai qua ii as a i usome ' of UBSFS unde FI RA Rul 1
unt
n
lfes
ç t r'
c
r N
e 2200. Acc di t
or ng o
U BSFS' c
ouns l one ca onl be a c t m e i i ha a a ount w ih a FI R A m e be or
e,
n y
us o r f t s n cc
t
N
m r

pur ha e commodii s or s r i s fom a FI
c ss
te
e vce r
NRA me be . UBSFS'couns l c am e t t
m r
e l i d ha
Bount Gai neve opene a ac ounta UBSFS bec us t pa r k f ope ng acor ae
y n
r
d n c
t
a e he pe wor or ni
por t
ac ountwasnotfle outa r t ned t a
c
ild
nd eur
o nyonea UBSFS. Couns la s cai t tBount
t
e lo l med ha
y
Gan ne rpad UBSFS a c pe a i f a c modii ors r i es UBSFS'c
i ve i
ny om ns ton or ny om
tes e v c .
ouns l
e
ale t ta wave off esf s r i swa a wave onl a t M r Che i vi ly a
lged ha ny i r e or e vce s
i r y s o . ung ndi dua l nd
i t r wa af echa gedby UBSFS i woul havebe c r d t M r Che i vi ly.
f he e s e
r
t
d
en ha ge o . ung ndi dua l
UB SFS' co el c e d t t N a ale La r
uns ont nde ha
t i
u eque t t t t DD M G s e be
s ed ha he
har s

r se e i t na of M r Che
egit r d n he me
. ung i vi l but a mit ke wa ma when t y we e
ndi dualy
sa
s de
he
r
r se e i t na of Bount Ga n. Re r e s of t t m it
egit r d n he me
y i
ga dls
ha sake,a cor ng t UBSFS'
c di o
couns ,M r Che
el . ung c d ta f r t DDM G s e t hi s f a t s e s r hol r of
oul r nse he
har s o m el s he ol ha e de
Bount Gai
y n.

Co n e f rUBS a s re t tt sc s i no arr i tn eo ij tc wheeBo ny
u sl o
FS se td ha hi a e s t a e nsa c f nusie r u t
Gan s d beconsde e a c t rdes t t f c t tBount Gan di notha a a coun
i houl
i r d usome
pie he a t ha
y i d
ve n c
t
wih UBSFS a Bount Gan di notpa a co pe a i t UBSFS bec us t e a e no
t
nd
y i d
y ny m ns ton o
a e her r
ac us tonsoffa i t sc e.The e or UBSFS'c
c ai
r ud n hi as
r f e,
ouns la g d t tt Cour s d e e
e r ue ha he
t houl nt r

s mmayj d me ti f v ro UBS a da an t u t Gani t i c s .
u r u g n n a o f FS n g is Bo n y i n h s a e
Conve s y, c
r el ouns l f Bount Gai a gued t t t r wer diput d ma e i l f c s
e or
y
n r
ha he e
e s e
t ra a t
bec us t pa tesdiagr e on whehert DDM G s r we e owned by Bo y Gan orby
a e he ri s e d
t he
ha es r
unt
i
M r Che
.
ung i vi l A c di t Bount G ai s co el t s oc pow e di not
ndi dualy.
cor ng o
y
n' uns , he t k
r d
t a f rowner hi oft s e t M r Che i vi ly.
r ns e
s p he har s o . ung ndi dua l
Furhe ,Bo t G ai s c
t r un y
n' ouns lc a m e t t Bo y G a n unde t t pur ha e s r i s
e l i d ha unt i
r ook o c s e v ce

fom UBSFS by pl i isDDM G s r si M r Che sa ounta woul havepa d UBSFS
r
acng t
ha e n . ung' cc
nd
d
i
f is s r i s bu t f s we e waved o t f eswe e ne rcha ge Couns lalege t t
or t e vce t he ee r
i
r he e
r ve
r d.
e l d ha
Bount Gan wasme el a ve c e f M r Cheung,a t s e die t a s e s e derof
y i
r y
hil or .
s he ol r c or nd ol har hol
Bount Ga n, o ow n t D D M G s r .
y i t
he
ha es

Ac or ng t Bount Gai s c
c di o
y
n' ouns l t Se ond Cic ts decson i Abbar pe f ty
e , he c
r ui'
ii n
recl
c pors wih t co e i t t Bount G a n i a c t e of U BSFS bec us Bo y G a n
om t t he nt nton ha
y i s us om r
a e unt
i
unde t t pur has s r i e f om UB SFS and unde t
rook o
c e e vc s r
rook t ope a ac ount a UB SFS.
o
n n c
t
The e or ,Bot t G a n' cou e a g d t tBount Gai w a a c t erofU BSFS.
rf e
m y i s ns l r ue ha
y
n s us om

VI.

STA ND A R D O F R EV I
EW

Fe ea Rueo Cii P o e u e5 ()sae i r lva t r ta i a pat ma mo ef r
d r l l f v l r c d r 6 a tts n ee n pa th t t ) ry y v o
(
s mma'j d me t ie tf ige c cam o d fns- ortep r o e c cam o dee s - on
u l u g n ,d n iyn a h li r ee e - h a t f a h li r fn e y

whih s mmayj d me ti s u h . Th c u ts alg a ts mmayj d me ti te mo a t
c u r u g n s o g t e o r h l rn u r u g n f h v n
s
hows t t t r i no ge ne diput a t a m a e il f t a t m o nt i e il d t
ha he e s
nui
s e s o ny tra ac nd he va s ntte o

j d me ta a matr o lw. F d R.Ci P.5 () The mo ig pat be r te iiil
ug n s
te f a ' e .
'
v. 6 a .
vn ry a s h n ta
r s i lt ofdemonsr tng t t c tby r f r nc t t r or t tt r a e no ge ne
e ponsbiiy
tai o he our
e e e e o he ec d ha he e r
nui

is ofma e i f c t tnee t be de de a ti . Cel e Cor v Catet,477 U. 31
s ues
t ral a t ha
do
ci d t ral
otx p. . r t
S. 7,

3 ( 986 .
23 1 )
W he a m ovi pa t ha dic r d is i ta btr n,t nonm ovi pa t mus t
n
ng ry s s ha ge t nii l lde he
ng ry
tç
go
be
yond t pl di ,'a by isown afi vis orby ç postons ans r t i e r t res
he ea ngs' nd, t
fda t
d
de ii , we s o nt roga o i ,
a a isons on fl ,' i ntf s c fc f c s s
nd dm s i
ie' de iy pe ii a t howi t e i a ge ne i s f ti .
ng her s
nui s ue or ral
Ce ot x,477 U . a 324. The no ovi pa t im us do m or t n s m pl s
l e
S. t
nm ng r y d t
e ha i y how t tt r i
ha he e s
s e m ea
om
t physca doubt a t t ma e i l f c s' M atus t El ct. I
i l
s o he t ra a t .
'
s hia e r ndus Co. v Ze t
.
. nih

Radi Cor ,475U. 5 58 ( 98 .
o p.
S. 74, 6 1 6)

W he d cdn whehe s mma y j g n i a p o rae h Co r mus v e t e
n e iig t r u r ud me t s p r p it,t e u t t iw h
e de e a a 1r as
vi nc nd 1 e onabl f t i e e es i t lg mos f vo a e t t pa t o
e acual nf r nc n he i ht
t a r bl o he ry pposng
i

temo in Wi e v Det Ai Li s I c,1 8F.d 1 6 ,1 69( 1h Ci.1 9 )(iain a d
h to . t r . l r ne, n . 3 3 3 6 3 1 t r 9 8 ctto s n
t
a
s
di
he ra s
ay
e ve
ns
quotto omit . Any doubt regar ng whet ra ti li necess r m ustbe r sol d agai t
ains ted)
t m ovi pa t Adik sv. H Kr s dr , U. 1 15 (1 .
he
ng r y.
c e S. e s Co. 398 S. 44, 7 970)
So l a t non- ovi pa t ha had a a pl opporuniy t c
ong s he
m ng ry s
n m e
t t o onductdi c r t
s ove y, he
non- ova m us com e f wa d w ih a tr a i e de e t s
m nt
t
or r
t fi m tve vi nc o uppor is cl i . Ande s v
t t am
r on .

fie t Lo b ,I c, 7 U. 2 2 2 7 ( 9 6 . $ me eçcn il'o e ie c s p o t t e
b ry b y n . 4 7 S. 4 , 5 1 8 ) ç r s itla f vd n e u p ri h
A
ng
o po i gpa t sp sto wiln ts fie te emu tb e o g o as wi gt t h j r c ud
p sn ry' o iin l o u fc ;h r s e n u h f ho n ha t e u y o l
r s nabl fnd frt tpa t ' Walerv Dary,911F. 1 1 ( 1h Ci.1 . I t
ea o y i o ha ry.'
k . b
2d 573, 577 1 t r 990) f he
e de e a nc d by t nonmovi pa t S s m e e y col a e or i not sgnii nty
vi nc dva e
he
ng ry û
i
rl
or bl ,
s
i tca l

p o tv ,h ns
r baie t e ummayj d me t yb g a td. An ro 4 7U. 2 2, 4 5
r u g n ma e r ne ' des n, 7 S. 4 2 9-0.
'
VI
l. D I U SSI N AN D AN ALY SI
SC
O
S
A . U BSFS'M oton f Sum m a y J
i or
r udgm e
nt

FI
NRA Rul 1
e 2200 pr dest tpa te mus abirt i (1 t r i awrtena ee nt
ovi ha ris t r tae f ) hee s it gr me
bewee t paris or abirton i r se by a c t r ( t diput i d t e a
t n he te
r tai s eque td
usome ' 2) he s e s i we n
,
be
c tme a a me r orasocitd pes ofa me r' a ( ) t diput i ie i
uso r nd
mbe
s ae ron
mbe i' nd 3 he s e û s s n
ar
c mec i wih t busnes a tvii soft me be ort a s it d per on.' FI
ol ton t he i s c i te
he m r he s oca e
s ' NRA Rul
e
1
2200. The i s i t s c e i whehe Bot y Gan was a f usome ' of UBSFS i
s ue n hi as s
t r
mt
i
ç t r'
c
n
co mec i w ih t #** 2 A c ount FI R A Rul 1 00, tte ç efnii ,' de i s a
r ton t he
017
c
. N
e 21
il d s i tons ' t ne
D

c tme a s one t ti nota br rorde e . FI
uso r s ome ha s
oke
alr NRA Rul 1 1 k) The El nt
e 2 00( .
eve h
Ci c tha r a one t t t t nn ç us o e ' s d be i e pr t d i a m a
r ui s e s d ha he e i t m r' houl
c
nt r e e n
nnercons s e w ih
it nt t

t i ea onabl e
he ' s
r
e xpeca i ' ofFI
ttons'
NRA m e
mber . Whe ,Fis Se s,I .v Gr n,993 F.2d
s
at r t c . nc . ee

81 820( 1hCi.1 (br tonrcogni donot gr
4,
1 t r 993) a ogai e
ze
her ounds.
)
UB SFS c e t t Bount G a n w a not is cus om e bec us Bount G a n di not
ont nds ha
y i
s
t
t r a e
y i d

ha a a ount wih UBSFS a di not pay a c
ve n cc
t
nd d
ny ompe a i f r s r ce t UBSFS.
ns ton o e vi s o
Bount Gai cont
y
n
ends t i w as a cus om er ofU B SFS undert FI RA Rul because of is
hat t
t
he N
es
t

c m e ton t t ***01 Acc
or c i o he
72
ount a gui t tU BSFS w a know i y pe f m i s r c f
, r ng ha
s
ngl r or ng e vi es or
Bo y G a n,no f M r Che i vi ua l
unt
i t or . ung ndi d ly.

l r e ngt pa tes s isons t undiputd e dencedoess
n eviwi he ri ' ubm s i , he
s e vi
how t ta a coun
ha n c
t
wasnotope d i Bount Gai sna a UBSFS. Howeve ,t e de ealo a guabl s
ne n
y n' me t
r he vi nc s r
y hows
t tBoun y Gai t
ha
t
n mderook t ope a a counta UBSFS on a las one occ i
t
o
n n c
t
te t
ason. Bo y
unt

Gan as e t t tbec e i unde t k t o n a a cou a UBSFS,a t tUBSFS al ge y
i s rs ha
aus t
roo o pe n c nt t
nd ha
le dl
pr vi d s r i e t B o y G a n,Bount G a n i a c t m e of U BSFS. H ow e r U BSFS
o de e v c s o unt
i
y i s us o r
ve ,

c e sBoun y Gan' a g e a r i i pa t
ount r
t i s r um nt nd eles n r upon e al r a i t t r ques by Bo y
m is eltng o he e t
unt
Gan t ope a a c
i o n n c ounta UBSFS,whi h e al s w t tpa m or wass ntt M s Cha i
t
c m is ho ha pe
k
e o . n n
or t o n a c por t a ount i t na e of Boun y Gai butt t pa r or w a neve
der o pe
or a e cc
n he m
t
n,
ha pe w k s
r

co plt d and r t ned t UBSFS. Bount Gan cai st tt spa r k wa ne rr t ne
m ee
eur
o
y i l m ha hi pe wor s ve e ur d
bec us a U BSFS r pr s nt tve M r Lam ,r pr s nt d t Bount Ga n t tt r w a no ne d t
a e
e e e ai , .
e ee e o
y i ha he e s
e o

O e a a c l i iSO n me Attes mma yj d me tsa e t s e ismus bera i
p n n c omtn t Wn a .
h u r u g n tg ,he e mal t e d n
t lghtmos f vor bl t t nonhe i
t a a e o he
movi pa t Ther f e,alho h UBSFS i e r t t
ng ry.
e or t ug
nt m e s he
non- e um of t e c ed pa w o k t m e n t t Bount G a n di not ha a a countw ih
rt
he xe ut
per r o a ha
y i d
ve n c
t

UBSFS ordi no i e t o n a ountwih UBSFS, hi Cour ca
d t ntnd o pe cc
t
t s
t nnots fnd a t sl a y
o i t he tmm r

j d me t tg .
u g n sa e
The e a s a a s t be a quesi of ma e i l f c a t whe he t DDM G s r s
r lo ppe r o
ton
t ra a t s o
t r he
ha e
s d ha be n r git e i t nn of M r Che
houl ve e e ser d n he me
. ung,i vi l a noti t na e of
ndi dualy, nd
n he m
Bount Ga n. U B SFS ha poi t d t a e a lt t il t a es t t M s La r ques e t t t
y i
s n e o n m i ha lus r t ha
. u e
t d ha he
D DM G s r be r s e ed i t na e of Che
ha es
egit r n he m
ung K w o Chi H ow e r aga n,t s e ai
k
.
ve , i hi m l
m us be r d i t lghtm os f vor bl t t non- o ng pary. Bount G ai as s t t
t ea n he i
t a a e o he
m vi
t
y
n sert hat he
s r s s d ha bee r s e ed i Bount G a n' na e. The DD M G s e w e e ac ualy
ha e houl ve n egi t r n
y i s m
har s r t l
r gi t r unde tBo y G a n Ent r i e ,l Atn:Clf Che
e s e ed
r t unt
i
e prs s nc. t
if
ung K w ok Chi' Ther f e,i
.'
e or t

r i aquesi off c i whos na et DDM G s r we et ber git e .
ema ns
ton a t n
e m he
ha es r o
e ser d
I s t Cour tndst a fnalhe rng i nec s r t r s ve t c t e sausof
n um he
ti
hat i
a i s es a y o e ol he usom r t t
Bount Gai a t f l addr s aloft is s r ied i t sca e i udi Bount G a n'
y
n nd o uly
es l
he s ue a s n hi s , ncl ng
y i s

a fnna i de e e . Ac or ngl t Cour deni UBSFS'M o i n f Stm ma y J m e
fi tve f ns s
c di y, he
t
es
to or t r udg nt

( 15.
DE 5 1
B. Bo y G a n' M o i f Slm m a v J m en
unt
i s ton or l
r udg t

l is M oin f r S mma y J dg n g 1 6 ,Bo ny Gan cams t a te e i a
n t to o u r u me t DE 5 1 u t i li h t h r s
g n r ll e a fd r lp lc wh c fv r a btai n ( 1 6 p. 1 W hl Bo n y Gani
e ea i r l e e a oiy ih a o s r i to . DE 5 , 5 .
b
r
ie u t i s
c r c i t sas e ton,t spolc doe notr uie pa test a bir t whe e t r hasbe n no
ore t n hi s ri hi i y s
eq r ri o r ta e
r he e
e
a e m e by t pa test do s Whe ,993 F.2d a 81 l t s c e,Bount Gan a
gr e nt he ri o
o.
at
t 7. n hi as
y i nd
UBSFS ne e cut a a ee
ver xe ed n gr mentt a bir t . Thi m uc has be n a ted by Bount
o r ta e
s
h
e dmit
y

Gai i t sltgai s g 31 pp.65,66;DE 158,p.71 Furher UBSFS' a r e ntt
n n hi ii ton. DE ,
. t ,
S g e me o
a bir t wih M r Cheung,sgne by hi i vi ly,doesnot a a m a troflw ,e
r ta e t
.
i d
m ndi dual
,s
te
a ncompas
s
t i t ntdiput be wee UBSFS a Boun y Gai Suc a fndi a am at rof1 w woul
he nsa
s e t n
nd
t
n.
h i ng s
te
a
d
s t a da r pr ce nt alow i a pe s or c por ton r a e t a FI I A cus om e t
e
nge ous e de
l ng ny r on
or a i el t d o
N L
t ro
f c t FI R A m e be t a bir t The e or U B SFS cn
or e he N
m r o r t a e.
r f e,
nnot be f c d t a bir t w ih
or e o r t a e t

Bount Gan ba td on t lbe a f de a polc f vorng a bir ton bec us t r wa no e i i
y i s
he i r l e r l i y a i r ta i
a e he e s
xplct
a ee e be w ee Bount G a n a U BSFS t ar ta e.
gr m nt t n
y i nd
o bir t

M or ove ,Bount Ga n cai st tUBSFS s ul be r quied t ar tae wih Bount
e r
y i l m ha
ho d
e r o bir t t
y

5l Bo nyGan' Repo s ( 1 4 t UBS Sae n o Un one tdMaeil cs Bou y Gai diputs
n u t i s s n e DE 6 ) o FS' ttme t f c tse tra Fa t, nt n s e
UBSFS'satm e t t t
t e nt ha t
Bount G an neve ha a c t e ag e e wih UBSFS' a sats t , at
y i
r d usom r r em nt t
' nd t e hat lhough
t
ç t Gai di notha an a ount mait ne i is own name a et UBSFS or UBSI Bou y Gan'
Bouny n d
ve
cc
nai d n t
t iher
, nt i s
i t e i e e t wer s r ce tr
nvesm nt ntr ss
e e vi d h ough an ac t m ant ned a UBSFS i t na e of Kwok Chi
coun
i ai
t
n he m

Ch u g.. u t Ganss e sae ole ,s eDietr a d s l b n fcay (h * * 1 2Ac o n) ( 14,
e n .Bo ny i' ol h rh d r ol rco , n oe e eiir te * 0 7 c u t. DE 6
p.-1
l2 .

Gan a or ng t t di r co r c a age y prncpls'
i cc di o d na y nta t nd nc i i e 'unde Fl rda lw . E 1 6 p 7 .
or
r oi a
DE 5 , . 1
Ac or ng t Bount Gan,t r a e t ee i t nce r cog z by t El nt Cic twhe e
c di o
y i he e r hr nsa s e nied
he eve h r ui
r

n n sg ao is t a c nr c ma c mp l abtain ( 1 6,p. 8 . Ho v r t s
o -in t re o o ta t y o e r irto . DE 5
1
we e , he e
e eptonsa ld nd on t f c sa cic sa esofea h c e. Ast Cour f md a
xc i
l epe
he a t nd r um t nc
c as
he
t ol bove,
t r ar diput n a e i f c s i t s c s The e or t Cour cn
he e e s ed n t ral a t n hi a e.
r f e, he
t nnotfnd a a m a tr of
i s
te
lw t ta oft ee ptonsr og z d by t El ve h Cicui a y i t sc s .
a ha ny hes xce i ec ni e
he e nt r t ppl n hi a e

F rhe, FS ag e a t eh ai o t es mmayj g n mo inst t o i alw
u t r UBS r u d t h e rng n h u r ud me t to ha Flrd a
doe no a y i t sc s butwasnote n c ran whi h lw di a y. M or over t pari s
s t ppl n hi a e,
ve e ti
c a d ppl
e , he te

h v n tc r f l a d e s dt eis o whc lw a p isi ti c s . l t er on p etil
a e o ae ul d r se h sue f ih a p le n h s a e n h ij it r -ra
y
si ai n,dueAprl22,201 t pa tess l be e
tpul to
i
7, he ri hal xpece t f l a e st is oft l
td o uly ddr s he s ue he aw
a ia et t sc s
pplc bl o hi a e.

l s , he Co tfnds a not pr vi usy i t sOr r t tt r a e diput m ae i l
n um t
ur i , s ed e o l n hi de , ha he e r s ed t ra

is e o f c wh c p e ld e ty o s mma yj g n f rete p ry. Fo te er ao ,
su s f a t ih r cu e nr f u r ud me t o i r a t
h
r h s e s ns
t eCo r d nisBo ny Gan' M o inf rSu r J d me t( 1 6 .
h u t e e u t i s to o mmay u g n DE 5 1
VIl
I.

C O N CL USI N
O

Bas d on t f egoi i i he e O R DER ED A ND A DJUD G ED t t Pl i if
e
he or ng, t s r by
ha a ntf ,

UBSFS'M oto f Summay J me g 1 i DENI
in or
r udg nt DE 551 s
ED. l i as he e ORDERED
t s lo r by
AND ADJUDGED t tDee nt Bo y Gan' Moton f Summar J
ha fnda , unt i s i or
y udgme ( 15 i
nt DE 6) s
DENI
ED. The Cour s l r s ve a lpe ng is a t upc i tilwhe e i wilha
t ha l e ol l ndi s ues t he om ng ra
r t l ve
a opporuniyt he ra c i ra 1t r l nta pr tve e de e.
n
t t o a nd onsde l he eeva nd oba i vi nc
The c s i s tf t 5- y tilpe i be nni on M onda M a 22,201 be o e
a e s e or he da ra rod gi ng
y, y
7 fr
U nie St t s M a sr t J
t d ae
gi t a e udge W ila M a t w m a 701 Cl m a i Stee ,W es Pa m Bea h,
li m
the
n,
e ts r t
t l
c

Fl i .
orda
DONE AND ORDERED i Cha r a W es Pam Bea h, Pam Be h Count
n
mbe s t
t l
c
l
ac
y,
i, 7
Fl r da t s 1 hda ofAprl 201 .
o i , hi 2t y

A*w.
W I AM M ATTHEW M AN
LLI
Unied St t sM a sr e J e
t
ae
gitat udg

20