Making False Statements
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Making false statements () is the common name for the United States
federal Federal or foederal (archaic) may refer to: Politics General *Federal monarchy, a federation of monarchies *Federation, or ''Federal state'' (federal system), a type of government characterized by both a central (federal) government and states or ...
process crime laid out in Section 1001 of
Title 18 of the United States Code Title 18 of the United States Code is the main criminal code of the federal government of the United States. The Title deals with federal crimes and criminal procedure. In its coverage, Title 18 is similar to most U.S. state criminal codes, ...
, which generally prohibits knowingly and willfully making false or
fraud In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compens ...
ulent statements, or concealing information, in "any matter within the
jurisdiction Jurisdiction (from Latin 'law' + 'declaration') is the legal term for the legal authority granted to a legal entity to enact justice. In federations like the United States, areas of jurisdiction apply to local, state, and federal levels. Jur ...
" of the federal government of the United States, even by merely denying guilt when asked by a federal agent.Lauren C. Hennessey
No Exception for No: Rejection of the Exculpatory No Doctrine
''Journal of Criminal Law & Criminology'', Vol. 89 (spring 1998).
A number of notable people have been convicted under the section, including
Martha Stewart Martha Helen Stewart (, ; born August 3, 1941) is an American retail businesswoman, writer, and television personality. As founder of Martha Stewart Living Omnimedia, she gained success through a variety of business ventures, encompassing pu ...
, Rod Blagojevich, Michael T. Flynn, Rick Gates,
Scooter Libby Irve Lewis "Scooter" Libby (born August 22, 1950) is an American lawyer and former chief of staff to Vice President Dick Cheney known for his high-profile indictment. From 2001 to 2005, Libby held the offices of Assistant to the Vice President ...
,
Bernard Madoff Bernard Lawrence Madoff ( ; April 29, 1938April 14, 2021) was an American fraudster and financier who was the admitted mastermind of the largest Ponzi scheme in history, worth about $64.8 billion. He was at one time chairman of the NASDAQ ...
, and
Jeffrey Skilling Jeffrey Keith Skilling (born November 25, 1953) is an American businessman who is best known as the CEO of Enron Corporation during the Enron scandal. In 2006, he was convicted of federal felony charges relating to Enron's collapse and eventual ...
. This statute is used in many contexts. Most commonly, prosecutors use this statute to reach cover-up crimes such as
perjury Perjury (also known as foreswearing) is the intentional act of swearing a false oath or falsifying an affirmation to tell the truth, whether spoken or in writing, concerning matters material to an official proceeding."Perjury The act or an inst ...
, false declarations, and
obstruction of justice Obstruction of justice, in United States jurisdictions, is an act that involves unduly influencing, impeding, or otherwise interfering with the justice system, especially the legal and procedural tasks of prosecutors, investigators, or other gov ...
and government fraud cases. Its earliest progenitor was the
False Claims Act The False Claims Act (FCA), also called the "Lincoln Law", is an American federal law that imposes liability on persons and companies (typically federal contractors) who defraud governmental programs. It is the federal government's primary litigat ...
of 1863. In 1934, the
requirement In product development and process optimization, a requirement is a singular documented physical or functional need that a particular design, product or process aims to satisfy. It is commonly used in a formal sense in engineering design, includ ...
of an
intent Intentions are mental states in which the agent commits themselves to a course of action. Having the plan to visit the zoo tomorrow is an example of an intention. The action plan is the ''content'' of the intention while the commitment is the ''a ...
to defraud was eliminated. This was to prosecute successfully, under the National Industrial Recovery Act of 1933 ( NIRA), the producers of "hot oil", i.e. oil produced in violation of restrictions established by NIRA. In 1935, NIRA was declared unconstitutional by the Supreme Court. Pursuant to the decision in ''United States v. Gaudin'', the jury is to decide whether the false statements made were material, since materiality is an element of the offense.


Overview

The statute spells out this purpose in subsection , which states: In Bryson v. United States,'' upholding conviction under , the Supreme Court stated: Even constitutionally explicit Fifth Amendment rights do not exonerate affirmative false statements. In the 1998 case ''
Brogan v. United States ''Brogan v. United States'', 522 U.S. 398 (1998), is a United States Supreme Court case in which the Court ruled that the Fifth Amendment does not protect the right of those being questioned by law enforcement officials to deny wrongdoing falsel ...
'', the Supreme Court rejected the "exculpatory no" doctrine that had previously been followed by seven of the courts of appeal, which had held that "the mere denial of wrongdoing" did not fall within the scope of § 1001.


Convictions

A number of notable people have been convicted under the section, including Martha Stewart, Rod Blagojevich, Scooter Libby, Bernard Madoff, Michael Cohen and Jeffrey Skilling. Many famous people have been charged under this law, including Najibullah Zazi (whose lying charge was later dropped after more serious charges were preferred against him), Ali Saleh Kahlah Al-Marri, and Martha Stewart. In the wake of such cases, many observers have concluded that it is best for anyone with the slightest degree of criminal exposure to refrain from submitting to an interview by government agents. Solomon L. Wisenberg suggests simply asking for the agent's business card and saying, " attorney will be in contact with you." The invocation of counsel cannot be used against a defendant at trial.


Jurisdiction

The jurisdictional element of the crime is defined as the "right to say and the power to act".
United States Attorneys' Manual The ''Justice Manual'' (known before 2018 as the ''United States Attorneys' Manual'') is a looseleaf text designed as a quick and ready reference for United States Attorneys and other employees of the United States Department of Justice responsibl ...
, Title 9, Criminal Resource Manual Â
916
It applies to criminal investigations, such as false statements made in response to an inquiry by an FBI or other Federal agent, or made voluntarily to an agent. Courts have affirmed § 1001 convictions for false statements made to private entities receiving federal funds or subject to federal regulation or supervision. Some courts have recognized an "exculpatory no" exception for simple false denials of guilt in response to government initiated inquiries, while others have rejected it or done neither.


History

The earliest statutory progenitor of §1001 was the original False Claims Act, adopted as the Act of March 2, 1863, . That enactment made it a criminal offense for any person, whether a civilian or a member of the military services, to:
… present or cause to be presented for payment or approval to or by any person or officer in the civil or military service of the United States, any claim upon or against the Government of the United States, or any department or officer thereof, knowing such claim to be false, fictitious, or fraudulent …
It was completely reworded by , which amended the statute to read:
… or whoever, for the purpose of obtaining or aiding to obtain the payment or approval of such claim, or for the purpose and with the intent of cheating and swindling or defrauding the Government of the United States, or any department thereof, or any corporation in which the United States of America is a stockholder, shall knowingly and willfully falsify or conceal or cover up by any trick, scheme, or device a material fact, or make or cause to be made any false or fraudulent statements or representations, or make or use or cause to be made or used any false bill, receipt, voucher, roll, account, claim, certificate, affidavit, or deposition, knowing the same to contain any fraudulent or fictitious statement or entry …
In 1934, the requirement of an intent to defraud was eliminated at the request of the
Secretary of the Interior Secretary of the Interior may refer to: * Secretary of the Interior (Mexico) * Interior Secretary of Pakistan * Secretary of the Interior and Local Government (Philippines) * United States Secretary of the Interior See also

*Interior ministry ...
Harold Ickes, who wished to use the statute to enforce Section 9(c) of the
National Industrial Recovery Act The National Industrial Recovery Act of 1933 (NIRA) was a US labor law and consumer law passed by the 73rd US Congress to authorize the president to regulate industry for fair wages and prices that would stimulate economic recovery. It also ...
of 1933 (NIRA) against producers of "hot oil", oil produced in violation of production restrictions established pursuant to the NIRA, when , amended it to read:
… or whoever, for the purpose of obtaining or aiding to obtain the payment or approval of such claim, or for the purpose and with the intent of cheating and swindling or defrauding the Government of the United States, or any department thereof, or any corporation in which the United States of America is a stockholder, shall knowingly and willfully falsify or conceal or cover up by any trick, scheme, or device a material fact, or make or cause to be made any false or fraudulent statements or representations, or make or use or cause to be made or used any false bill, receipt, voucher, roll, account, claim, certificate, affidavit, or deposition, knowing the same to contain any fraudulent or fictitious statement or entry, in any matter within the jurisdiction of any department or agency of the United States or of any corporation in which the United States of America is a stockholder …
When
Title 18 of the United States Code Title 18 of the United States Code is the main criminal code of the federal government of the United States. The Title deals with federal crimes and criminal procedure. In its coverage, Title 18 is similar to most U.S. state criminal codes, ...
was adopted in 1948, the wording was further simplified and replaced with:
Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false, fictitious or fraudulent statements or representations, or makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entry …


See also

* Mail and wire fraud


References

{{DEFAULTSORT:Making False Statements United States federal criminal legislation Communication of falsehoods United States federal obstruction of justice law Fraud in the United States