Opinion ID: 362246
Heading Depth: 1
Heading Rank: 3

Heading: The False Statements Indictments

Text: 28 The defendants have argued that we must dismiss their indictments under 18 U.S.C. § 1001 22 because the facts alleged do not involve false statements concerning a matter within the jurisdiction of any department or agency of the United States, within the meaning of the statute. 29 In support of this argument the defendants emphasize that the statements concerning eligibility for food stamps and AFDC were made on IDPA forms, that the IDPA alone decided the eligibility of each individual for benefits, and that the record contains no evidence to show the defendants knew of the federal involvement in these programs. 30 It is the general rule, however, that a statement may concern a matter within the federal jurisdiction described in section 1001, even if the statement is not submitted directly to the federal department or agency involved, and the federal agency involvement is limited to reimbursement of expenditures. See, e. g., United States v. Candella, 487 F.2d 1223 (2d Cir. 1973), Cert. denied, 415 U.S. 977, 94 S.Ct. 1563, 39 L.Ed.2d 872 (1974); United States v. Matanky, 482 F.2d 1319 (9th Cir.), Cert. denied, 414 U.S. 1039, 94 S.Ct. 539, 38 L.Ed.2d 329 (1973); United States v. Waters, 457 F.2d 805 (3d Cir. 1972); Ebeling v. United States, 248 F.2d 429 (8th Cir.), Cert. denied, 355 U.S. 907, 78 S.Ct. 334, 2 L.Ed.2d 261 (1957). Furthermore, although this court has never considered this question, we do not read the decisions of other circuits as establishing an absolute requirement that fraudulent statements be accompanied by knowledge of the federal involvement to be a matter within the jurisdiction of a federal agency and thus violative of section 1001. The term jurisdiction merely incorporates Congress' intent that the statute apply whenever false statements would result in the perversion of the authorized functions of a federal department or agency. See United States v. Gilliland, 312 U.S. 86, 93, 61 S.Ct. 518, 85 L.Ed. 598 (1941). Thus, when a statement is not submitted directly to a federal agency, knowledge of federal involvement may be one circumstance to be considered in assessing the potential threat the statement may be to the proper functioning of the federal agency involved. This knowledge may be decisive when the involvement of the United States in the matter to which the statement relates is peripheral. Compare Ebeling v. United States, supra, with Lowe v. United States, 141 F.2d 1005 (5th Cir. 1944). In other instances, a showing that the defendant had actual knowledge of federal involvement might lessen the need for a detailed examination of the federal government's relationship to the statements. See United States v. Lange, 528 F.2d 1280, 1287 n.11 (5th Cir. 1976); United States v. Candella, supra, at 1226-27. 31 To hold that this knowledge is always required for the purposes of section 1001 jurisdiction, however, would give the term a narrow and technical meaning not intended by Congress. See Bryson v. United States, 396 U.S. 64, 70-71, 90 S.Ct. 355, 24 L.Ed.2d 264 (1969). Here, the Departments of Health, Education, and Welfare and Agriculture administer the food stamp and AFDC programs in accordance with the laws establishing eligibility standards, including controls on receipt of outside income. 42 U.S.C. § 602; 7 U.S.C. § 2013. These laws and the regulations promulgated by the administrative agencies bind the states. 42 U.S.C. §§ 602, 604; 7 U.S.C. § 2014. The federal agencies are entrusted with the responsibility to oversee state administration of these programs to ensure that the enormous amount of federal funds spent for these programs are distributed only to those Congress deems eligible. 42 U.S.C. §§ 602, 604; 7 U.S.C. § 2014. The record below summarizes the auditing and oversight procedures of the Departments of Agriculture and Health, Education, and Welfare designed to enforce federal laws and regulations. We conclude that the statutory scheme demonstrates only that Congress has entrusted to the states the local administration of federal expenditures. The federal agencies retain the ultimate authority to see that the federal funds are properly spent. Certainly the potentially costly fraud involved here results in the perversion of the authorized functions of these agencies, whether or not the defendants here were aware of the agency involvement. Cf. United States v. Feola, 420 U.S. 671, 676-86, 95 S.Ct. 1255, 43 L.Ed.2d 541 (1975) (holding that statute punishing assaults of federal officers does not require knowledge that person assaulted is a federal officer). At trial the prosecution proved that each of the defendants made the statements with fraudulent intent. Our refusal to increase that burden to proof of knowledge of the federal involvement does not unfairly transform innocent conduct into criminal. For these reasons we hold that the statements alleged here pertain to matters within the jurisdiction of a department or agency of the United States.