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
CES,l ,
NC.
a N e J r ey c or ton,
w e s op a i
FL b
I ED y
Pl i if
a ntf ,
D.C.
VS.
AF l2 2 1
2
27
BOU N TY GA I EN TERPRI
N
SES,I C.
N
a f ei n c por ton,
or g or a i
SkRI AItE
CkrNLI R
TX! /
EEj j
:$
S .FL.$.n
. ( .D jL
D) u- y
7
.
Defnda .
e nt
O R D ER O N CR O SS M O TI N S FO R SU M M A R Y JUD G M EN T
O
THI CAUSE i be or t Cou tupon Pl i ifco e - enda ,UBS Fi ncil
S
s f e he
r
antf/ unt rDef nt
na a
Ser c , l ' (t
vies nc.s '
UBSFS' M oton f Summa y J
'
)
i
or
r udgme g
nt DE
1 , a
551 nd
Defnda /
e ntcount - antf, Bouny Gai Ent ie , I ' Cç
erpli if
t
n emrs s nc.s Bount Gan') M oton f
y i'
i or
S mmay J d me t( 1 6 . Th Mo insaef l b ifd a rp f rrve Th Co r
u r u g n DE 5 1
e to r u l ree nd i e o e iw. e u t
y
he d a he r ng on t M o i on M a ch 24,2017. Se D E 1
l
ai
he tons
r
e
73. The Cour has r vi e t
t
e ew d he
M otons Re pons ,a Reples t e ie fl i t s c s ,a i ot r s dul a s i t
i , s
es nd
i , he ntr ie n hi a e nd s he wi e y dvi ed n he
prem i es.
s
BA CK G R O U ND
D e e ntBou y Gai Ent r i es I i a c por ton or ni d t de t l w s oft
f nda
nt
n e pr s , nc. s or a i
ga ze m r he a
he
Brts Vigi Ilndswih isprncpalpl eofbusne si HongKong. ( 1 p.1 ! 2)
iih r n sa
t t i i ac
i s n
DE 57, , .
Kwo ChiChe ($ 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
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?