United States Trustee Manual
Bankruptcy Fraud & Abuse Enforcement Program
The test is whether the statement or document has a natural tendency to influence or be capable of influencing the proceeding. There is no requirement that the statement or document actually harm a creditor or other person. U.S. v. O'Donnell, 539 F.2d 1233 (9th Cir.), cert. denied, 429 U.S. 960 (1976).
5-9.8
2.
The act was within the jurisdiction of a department or agency of the United States. As noted above, this does not include statements made to courts or to Congress.
3.
The act was done knowingly and willfully. An act can be done knowingly if the defendant has a reckless disregard of whether it is true and makes a conscious effort to avoid learning the truth. U.S. v. Evans, 559 F.2d 244 (5th Cir. 1977), cert. denied, 434 U.S. 1015 (1978).
FALSE STATEMENTS TO FINANCIAL INSTITUTIONS, 18 U.S.C. ยง 1014 This statute prohibits knowingly making a false statement or report, or willfully overvaluing any property or security, for the purpose of influencing any action of listed financial institutions in relation to loans or securities for loans. (10 year statute of limitation, 18 U.S.C. ยง 3293.)
5-9.8.1
Relationship to 18 U.S.C. ยง 152 In many bankruptcy cases, the debtor will have furnished financial statements to financial institutions around the time of the bankruptcy filing. A comparison of these financial statements with the bankruptcy schedules often shows significant differences. While the financial statements to banks use a fair market value and bankruptcy schedules tend to use forced sale values, the differences are often the result of fraud in one place or the other.
5-9.8.2
Elements of the Offense 1.
The defendant made a false statement or willfully overvalued property or security, knowing the same to be false.
_________________________________________________________________ August, 1997
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