The Federal False Statement Act (FSA) is a frequently used federal law designed to maintain the integrity of information provided to federal agencies. Codified under 18 U.S.C. § 1001, this law makes it a crime to knowingly and willfully make false or fraudulent statements, or to conceal information, in any matter within the jurisdiction of the federal government. The statute is broad, covering statements made to federal investigators, regulatory bodies, and any other federal entities, including federal law enforcement agents, FBI, DEA, IRS, or SEC, and members of the United States Congress.
The federal government uses the FSA to prosecute a wide range of criminal activities involving people who lied to various government departments regarding their eligibility for benefits and other financial fraud. Another common application of the FSA is the criminal prosecution of people who gave false statements during FBI or other Department of Justice investigations. Highly placed government officials have been criminally charged and prosecuted for knowingly telling a material falsehood during FBI investigations.
At Stechschulte Nell, Attorneys at Law in Tampa, we believe every person should know how certain laws can impact their lives when they least expect it. Unfortunately, many people approached by federal law enforcement officers don’t realize that lying to the FBI is a crime carrying a penalty of up to 5 years in prison and a fine of up to $250,000. When the false statements involve matters relating to terrorism, human trafficking, or some sex offenses, the penalty prison sentence can increase to 8 years.
Even those people who are innocent of the offense under investigation can become criminally liable for untruths they reported to FBI investigators. Declining to answer questions is always a better policy than lying to a federal agent.
If you are facing indictment for providing false information to a federal agent or department, contact Stechschulte Nell Law Office today. We have the experience necessary to pursue the defense strategy most likely to lead to the best outcome of your case.
What Statements Can Violate the Federal False Statement Act?
The False Statement Act has been used to prosecute individuals who provide false information on financial statements or loan applications submitted to federal agencies, such as the Small Business Administration (SBA) or the Department of Housing and Urban Development (HUD). High-profile cases in which the federal government indicted people for false statements include Martha Stewart, and Rod Blagojevich.
Martha Stewart, the well-known businesswoman, was convicted of making false statements to federal investigators during an insider trading investigation. Rod Blagojevich, the former Governor of Illinois, was convicted under the FSA for making false statements to federal agents during an investigation into political corruption. And more recently, Theranos founder Elizabeth Holmes was convicted of making false statements to federal agencies and investors about the capabilities of her company’s blood-testing technology.
False Statement Act prosecutions can also involve mortgage fraud, where defendants can be found guilty of submitting false statements to obtain loans insured by the Federal Housing Administration (FHA).
Public officials and other individuals charged with bribery, kickbacks, or other corrupt practices are often indicted under the False Statement Act because of attempts to cover their tracks by providing false information to federal investigators or regulatory bodies. The former Governor of Virginia, Robert McDonnell, was convicted under the FSA for making false statements related to gifts and loans received from a businessman.
False statements to federal agencies about the safety of products, environmental compliance, or other regulatory matters can also be prosecuted under this law. In one 2023 case, executives of a Wisconsin Milling company were convicted under the FSA for providing false information about their compliance with both the Environmental Protection Agency (EPA) and the Occupational Safety and Health Agency (OSHA).
Proving Guilt in a Federal False Statement Act Prosecution
To win a conviction under the Federal False Statement Act, the prosecution must prove the following elements of the crime beyond a reasonable doubt:
- Falsity: The statement or representation must be false, fictitious, or fraudulent.
- Materiality: The false statement must be material, meaning it has a natural tendency to influence or is capable of influencing, the decision of the federal agency.
- Knowledge and Intent: The defendant must have acted knowingly and willfully, meaning they were aware that the statement was false and intended to make the false statement.
- Jurisdiction: The false statement must pertain to a matter within the jurisdiction of the federal government.
Defenses to False Statement Act Prosecutions
Given the severe penalties imposed on those who are convicted of an FSA violation, including collateral consequences like the loss of professional licenses, exclusion from government contracts, and reputational damage, choosing an experienced FSA defense lawyer is essential.
Each of the elements of a False Statement Act crime can be the subject of an effective defense strategy.
Falsity: Some cases present circumstances that allow the defense to challenge whether a statement is false or merely misinformed. The statement alleged to be false must be more than merely less than precisely correct.
Materiality: For a fact to be “material,” it must be sufficiently weighty to play a substantial role in influencing a decision-maker at the federal agency involved. Tangential facts surrounding a central subject may have no genuine impact on the issue being considered by the federal agency. As an example, whether a person holds a valid certification enabling them to perform a government contract can be material, while the exact date on which the certification was granted may be immaterial.
An immaterial falsehood cannot serve as the basis of an FSA conviction.
Knowledge and Intent: To be guilty of a False Statement Act violation, a defendant must knowingly and intentionally misstate a material fact, either by affirmatively lying or by intentionally omitting such a fact when directly asked about it. A defendant cannot “accidentally” violate the FSA. The defendant must know that what they are saying or reporting is not true and proceed to advance the falsehood anyway. That means someone who honestly believes their statement is true, even if it is incorrect, is not guilty of criminally falsifying a statement. Being wrong is not a crime. Being intentionally deceitful about a central fact subjects the speaker to federal false statement prosecution.
Jurisdiction: Whether the agency involved in the matter is genuinely under the jurisdiction of the federal government may be clouded by intergovernmental funding, and other bureaucratic issues. While this may seem like an indisputable fact of the case, skilled defense lawyers will examine and analyze every aspect of the agency’s mandate and authority to determine under which jurisdiction it operates.
Experienced Florida Federal False Statement Defense Lawyers
The United States government has an unlimited workforce and financial resources to prosecute any defendant. You need to have experienced legal counsel with federal court experience and an understanding of the law and procedures to protect you. Call 813-280-1244 today.
