815. Elements of Offense of False Statements

The elements of the offense of making a false statement are: (1) making a false statement or willfully overvaluing property or security knowing the same to be false, (2) for the purpose of influencing in any way the action, (3) of the enumerated agencies and organizations. Actual damage or reliance is not an essential element of the offense. See Kay v. United States, 303 U.S. 1 (1938); United States v. Sabatino, 495 F.2d 540 (2d Cir. 1973), cert. denied, 415 U.S. 948 (1974); United States v. Trexler, 474 F.2d 369 (5th Cir.), cert. denied, 412 U.S. 929 (1973). In the Kay case below, the United States Court of Appeals for the Second Circuit held that it was no defense that the false statements inflating the amount of the mortgage claim were not influential in securing favorable action; the important fact was that the false statements were made for the purpose of influencing action. United States v. Kay, 101 F.2d 270 (2d Cir. 1939), cert. denied, 306 U.S. 660 (1939).

Reliance on the false statements is not an element of a 18 U.S.C. §  1014 prosecution. See United States v. Tokoph, 514 F.2d 597, 604 (10th Cir. 1975). Furthermore, there need not be any actual defrauding of the bank. See United States v. Kennedy, 564 F.2d 1329 (9th Cir. 1977), cert. denied, 435 U.S. 944 (1978). The statute requires that all statements supplied to lending institutions that have the capacity to influence those institutions be accurate or at least not knowingly false. In this regard the false statement may have the requisite capacity to influence not only at inception but also over the life of the loan with respect to extending the loan, deferring action upon it or modifying it. The statute does not require that the information be furnished before the debt is incurred. See United States v. Gardner, 681 F.2d 733 (11th Cir. 1982). A false statement under Section 1014 includes a statement that the information be furnished before the debt is incurred. See United States v. Gardner, 681 F.2d 733 (11th Cir. 1982). A false statement under Section 1014 includes a statement that a particular party is to be a borrower on a loan when in fact that party is never intended to receive the loan proceeds or have any liability on the loan. United States v. Adamson, 665 F.2d 649, 659 (5th Cir. 1982), rev'd on other grounds, 700 F.2d 953 (5th Cir. 1983)(en banc), cert. denied, 464 U.S. 833 (1983).

For additional discussion, see FIF Manual at 180-85.

[cited in JM 9-40.000]

Updated September 19, 2018