AND · 18usc1343:materiality
Judge-made incorporation of common-law fraud, not an express word in this statute. Kousisis leaves unresolved the parties' competing formulations of the materiality standard; it does not adopt an essence-of-the-bargain test as an additional universal element.
Exact element source
false or fraudulent pretenses, representations, or promisesSource:
docroot/ir/usc/title18.jsonl#title18_sec1343; Unicode character offsets [172:231] (end exclusive); SHA-256 944569d18f6d3624ae87dde151ee823f6cf078faa69c6d3e59fb832bc1aaa933.Routes and case patterns
| Route | Definition | Merits instance blocks | Distinct merits cases | Examples (up to 3 cases per count group) |
|---|---|---|---|---|
| Unclassified route provisional; provisional (1 case) | no definition yet | 0 Satisfied 0; not satisfied 0; excluded context 1 | 0 | Used only in non-merits blocks (1). Excluded context examples:United States v. Baker — 923 F.3d 390 (2019) · United States Court of Appeals for the Fifth Circuit · 2019 — not reached · basis not recorded (18usc1343: author: Fable · historical QA: FIX (QA2, neov2/qa/wave2-cases-QA2.md) · changed after review; current content not independently reviewed) · applied/merits · not counted |
| _whole accepted; 3 observed cases | The element is decided as a whole: the reasoning turns on no narrower doctrinal sub-question that distinguishes it from any other application of this element. | 3 Satisfied 3; not satisfied 0; excluded context 0 | 3 | United States v. Hasson — 333 F.3d 1264 (2003) · United States Court of Appeals for the Eleventh Circuit · 2003 — satisfied · proved (18usc1343: author: Fable · not independently reviewed) · applied/merits · counted United States v. Corrigan — 912 F.3d 422 (2019) · United States Court of Appeals for the Seventh Circuit · 2019 — satisfied · proved (18usc1343: author: Flash3 · QA: FIX (Fable, neov2/cases/TRIAGE-Flash.md)) · applied/merits · counted Kousisis v. United States — 605 U.S. 114 (2025) · Supreme Court of the United States · 2025 — satisfied · conceded (18usc1343: author: Fable · historical QA: FIX (QA2, neov2/qa/wave2-cases-QA2.md) · changed after review; current content not independently reviewed) · applied/merits · counted |
How courts decided this element
| Case | Element | Holding and scope | Pattern | Exact source quotations |
|---|---|---|---|---|
| United States v. Hasson — 333 F.3d 1264 (2003) · United States Court of Appeals for the Eleventh Circuit · 2003 — satisfied · proved (18usc1343: author: Fable · not independently reviewed) | Material deception | satisfied Counted merits instance applied / merits basis: proved | objective-characteristics/grade-weight-authenticity-and-provenance-of-goods-misstated | The government established that Hasson repeatedly misrepresented the carat weight, color grading, and clarity grading of gems; misrepresented semi-precious gems, synthetic gems, or simulants as natural gems and diamonds; misrepresented stones that had been color- or clarity-treated as natural stones; and misrepresented the history or provenance of items sold.Source: docroot/ir/caselaw/f3d_333.jsonl#/f3d/333/1264-01; Unicode character offsets [9207:9568] (end exclusive); SHA-256 0b48e223f26a65a380a150f77101da14ca89689355c39f63faa2a3def0f80859.In sales to Aben and Joan Johnson, Hasson misrepresented the type of gems or stones in 314 items and the history and provenance of at least 80 items and gems.Source: docroot/ir/caselaw/f3d_333.jsonl#/f3d/333/1264-01; Unicode character offsets [39782:39940] (end exclusive); SHA-256 0b48e223f26a65a380a150f77101da14ca89689355c39f63faa2a3def0f80859.A material misrepresentation is one having a natural tendency to influence, or capable of influencing, the decision maker to whom it is addressed.Source: docroot/ir/caselaw/f3d_333.jsonl#/f3d/333/1264-01; Unicode character offsets [8396:8542] (end exclusive); SHA-256 0b48e223f26a65a380a150f77101da14ca89689355c39f63faa2a3def0f80859.The record in this case is replete with evidence of material misrepresentations regarding the physical and objective characteristics of the gems and jewelry sold.Source: docroot/ir/caselaw/f3d_333.jsonl#/f3d/333/1264-01; Unicode character offsets [9044:9206] (end exclusive); SHA-256 0b48e223f26a65a380a150f77101da14ca89689355c39f63faa2a3def0f80859. |
| United States v. Corrigan — 912 F.3d 422 (2019) · United States Court of Appeals for the Seventh Circuit · 2019 — satisfied · proved (18usc1343: author: Flash3 · QA: FIX (Fable, neov2/cases/TRIAGE-Flash.md)) | Material deception | satisfied Counted merits instance applied / merits basis: proved; party: William D. Corrigan; count: four counts of wire fraud (Count I Neilitz; Counts II-IV Rawah Partners); subject: party=William D. Corrigan; count=four counts of wire fraud (Count I Neilitz; Counts II-IV Rawah Partners) Defendant's argument that he never misstated the stock's value or the investment's risk rejected: statements about why the money was needed and how it would be used were capable of influencing the decision to invest. | false purpose-of-funds statements capable of influencing investors although stock value and investment risk were not misstated | At trial, Duncan and Neilitz testified that Corrigan solicited the second round of investments by representing that it was necessary to cover ECS's health insurance costs; that if he was unable to raise the required revenue before the end of March 2009, its health insurer would cancel its policy; and that if Neilitz and Rawah Partners, respectively, were not interested he would have to solicit funds from other investors.Source: docroot/ir/caselaw/f3d_912.jsonl#/f3d/912/0422-01; Unicode character offsets [15763:16187] (end exclusive); SHA-256 aadf9132ad891c365a7968b690940ec3ce0070f4acc683f6204c0ef932f8fc4a.Here, Corrigan explicitly told the investors that the funds were necessary to cover the impending health insurance premiums and that if ECS lost its insurance coverage it would jeopardize the then-pending sale.Source: docroot/ir/caselaw/f3d_912.jsonl#/f3d/912/0422-01; Unicode character offsets [17970:18180] (end exclusive); SHA-256 aadf9132ad891c365a7968b690940ec3ce0070f4acc683f6204c0ef932f8fc4a.But, "a false statement is material if it has a natural tendency to influence or [is] capable of influencing, the decision of the decisionmaking body to which it was addressed."Source: docroot/ir/caselaw/f3d_912.jsonl#/f3d/912/0422-01; Unicode character offsets [17411:17588] (end exclusive); SHA-256 aadf9132ad891c365a7968b690940ec3ce0070f4acc683f6204c0ef932f8fc4a.Accordingly, we agree with the district court; the evidence at trial supports the conclusion that Corrigan made material misrepresentations about the need for investor funds and what those funds would be used for.Source: docroot/ir/caselaw/f3d_912.jsonl#/f3d/912/0422-01; Unicode character offsets [18340:18553] (end exclusive); SHA-256 aadf9132ad891c365a7968b690940ec3ce0070f4acc683f6204c0ef932f8fc4a. |
| United States v. Baker — 923 F.3d 390 (2019) · United States Court of Appeals for the Fifth Circuit · 2019 — not reached (18usc1343: author: Fable · historical QA: FIX (QA2, neov2/qa/wave2-cases-QA2.md) · changed after review; current content not independently reviewed) | Material deception | not_reached Excluded from merits counts applied / merits | Unspecified route | No source quotation recorded for this block. |
| Kousisis v. United States — 605 U.S. 114 (2025) · Supreme Court of the United States · 2025 — satisfied · conceded (18usc1343: author: Fable · historical QA: FIX (QA2, neov2/qa/wave2-cases-QA2.md) · changed after review; current content not independently reviewed) | Material deception | satisfied Counted merits instance applied / merits basis: conceded CAVEAT: uncontested point; the Court made no determination of materiality on these facts and left the governing standard open. Materiality of these misrepresentations was not contested, so the element is met only by concession. The governing standard (traditional reasonable-person/known-importance test vs. the Government's essence-of-the-bargain test) is expressly left open; the Court stresses that materiality, not economic loss or "uniqueness", is what limits the fraudulent-inducement theory. | uncontested/contract-condition-labelled-material-breach | Failing to comply with this requirement would consti- tute “a material breach” and could “result in [contract] termi- nation.”Source: docroot/ir/caselaw/clus_605.jsonl#/us/605/114; Unicode character offsets [13706:13832] (end exclusive); SHA-256 3fafd32698ec39e27fdd3e9010c70c21801f2f3a822702b3632e487bec94666a.For now, it is enough to reiterate “that materiality of falsehood is an element of ”— and thus a limit on—the federal fraud statutes.Source: docroot/ir/caselaw/clus_605.jsonl#/us/605/114; Unicode character offsets [42072:42205] (end exclusive); SHA-256 3fafd32698ec39e27fdd3e9010c70c21801f2f3a822702b3632e487bec94666a.We need not settle the debate here, however, because Alpha and Kousisis have not contested that their misrepresentations were material.Source: docroot/ir/caselaw/clus_605.jsonl#/us/605/114; Unicode character offsets [41936:42071] (end exclusive); SHA-256 3fafd32698ec39e27fdd3e9010c70c21801f2f3a822702b3632e487bec94666a. |
Court interpretations
interpretation
Accordingly, we hold that materiality of falsehood is an element of the federal mail fraud, wire fraud, and bank fraud statutes.
Neder v. United States — 527 U.S. 1 (1999) · Supreme Court of the United States · 1999 (18usc1343: author: unavailable · not independently reviewed)
Accordingly, we hold that materiality of falsehood is an element of the federal mail fraud, wire fraud, and bank fraud statutes.Source:
docroot/ir/caselaw/us_527.jsonl#/us/527/0001-01; Unicode character offsets [38141:38269] (end exclusive); SHA-256 e0a4af797b1293eb68136f29db1ed43b57bd1627cee70ab67e5a05c81288e673.Judge-made incorporation of common-law fraud, not an express word in this statute. Kousisis leaves unresolved the parties' competing formulations of the materiality standard; it does not adopt an essence-of-the-bargain test as an additional universal element.
interpretation
We need not settle the debate here, however, because Alpha and Kousisis have not contested that their misrepresentations were material.
Kousisis v. United States — 605 U.S. 114 (2025) · Supreme Court of the United States · 2025 (18usc1343: author: Fable · historical QA: FIX (QA2, neov2/qa/wave2-cases-QA2.md) · changed after review; current content not independently reviewed)
We need not settle the debate here, however, because Alpha and Kousisis have not contested that their misrepresentations were material.Source:
docroot/ir/caselaw/clus_605.jsonl#/us/605/114; Unicode character offsets [41936:42071] (end exclusive); SHA-256 3fafd32698ec39e27fdd3e9010c70c21801f2f3a822702b3632e487bec94666a.Judge-made incorporation of common-law fraud, not an express word in this statute. Kousisis leaves unresolved the parties' competing formulations of the materiality standard; it does not adopt an essence-of-the-bargain test as an additional universal element.