Misleading Representations-Bank Loan

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7^th Circuit Court of Appeals

Case Name: United States of America v. Patrick Thompson

Case No.: 22-2254

Officials: Flaum, St. Eve, and Pryor, Circuit Judges.

Focus: Misleading Representations-Bank Loan

Thompson, was convicted of providing false information to financial institutions regarding his loans. Thompson had obtained three loans from a bank amounting to $219,000. Following the bank’s failure, attempts were made by the receiver, the Federal Deposit Insurance Corporation (FDIC), and a loan servicer, Planet Home, to recover the funds owed by Thompson. Disputing the loan balance, Thompson asserted that he had only borrowed $110,000. Consequently, he faced charges and was convicted of making false statements with the intent to influence the FDIC and a mortgage lending business, a violation of 18 U.S.C. § 1014.

Thompson appealed contending that his statements were not truly “false” under § 1014 because they were factually accurate and that the jury lacked sufficient evidence for a conviction. Additionally, he argued that the government had constructively amended the indictment and that the district court lacked the authority to mandate restitution to the FDIC.

The Seventh Circuit dismissed Thompson’s arguments. The court ruled that, based on its precedent, §1014 criminalizes misleading representations, and Thompson’s statements fell into this category. It also determined that there was ample evidence supporting Thompson’s conviction and that there was no constructive amendment of the indictment. Finally, the court affirmed the district court’s decision to award restitution to the FDIC, reasoning that the FDIC had suffered a financial loss directly attributable to Thompson’s false statements.

Affirmed.

Decided 01/08/24

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