Charlie schemes to induce Kim to sign a note for $13,000. Charlie negotiates and transfers the note for value to Laurel (at a commercially reasonable discounted amount) who has no idea of any fraud or irregularity. Laurel becomes an HDC and sells the note to Joe, who also achieves HDC status. Joe sells the note to Charlie. 

Does Charlie become an HDC? 

Under what legal theory? 

Please explain the legal principles that apply and your reasoning.