The debtor took out three loans for a total of $219,000. After the bank from which he took the loans failed, an agent from the FDIC told him he owed $269,120.58. The debtor protested that he did not know where that number came from and stated he had borrowed $110,000. He repeated the substance of the statement to other FDIC employees. Later, he was charged with violating 11 U.S.C. § 1014, which prohibits “knowingly making a false statement to influence the FDIC’s action of a loan.” A jury found him guilty under the statute, and he moved for acquittal, arguing that the statute did not criminalize his behavior.
In Thompson v. United States, 604 U.S. 408 (2025), the Supreme Court agreed. There is a difference, the Court reasoned, between false and misleading statements. In fact, the defendant had borrowed $110,000. He had also, however, taken another loan from the bank. The statement that he had borrowed $110,000 was misleading, but not necessarily false. Moreover, the context of the statute did not support the argument that a misleading statement was criminal. Therefore, the court remanded the case to allow a jury to have the opportunity, after considering all the facts, to determine if the statement had been false.
By: The Editorial Staff