Apparently trying to keep a step ahead of any suspicion, Sepero allegedly delivered to the victim's family a wholly fraudulent statement for the annuity account, which reflected a value of over $750,000 at a time when it had been gutted down to $16.57.
An incomplete or misleading disclosure in an application to the agency could be prosecuted under the law that makes it a crime to submit "any materially false, fictitious, or fraudulent statement or representation" to a federal agency.
Consider a scenario in which a materially misleading statement inflated the market price of a security so that the price was higher than it would have been but for the fraudulent statement, and suppose that a class of investors purchased the stock at a price that, unknown to them, was fraudulently distorted.
The criminal complaint also alleges McFarland used a fraudulent Scottrade statement showing he owned more than $2.5 million in stock to secure the loans.
makes any materially false, fictitious or fraudulent statement or representation shall be [guilty of a felony].
By far the broadest federal statute criminalizing lying is 18 U.S.C. § 1001, which makes it a crime to "knowingly and willfully... make any materially false, fictitious, or fraudulent statement or representation" in the course of "any matter within the jurisdiction of the executive, legislative, or judicial branch" of the federal government.
If the trustee make a false representation, equity would compel him to make good the loss sustained by the purchaser in consequence of the fraudulent statement.
Rather, it punishes anyone who knowingly "makes any materially false, fictitious or fraudulent statement or representation" in "any matter" being investigated by the federal government.
Rather, price stability may just as likely demonstrate the market consequence of fraud where the alleged fraudulent statement conveys that the company has met market expectations, when in fact it has not".).
