UNITED STATES OF AMERICA v. MOHSIN RAZA
US Court of Appeals for the Fourth Circuit, King, Nov. 20, 2017,
Wire Fraud- Materiality is an objective test based on what a “reasonable financial institution” would have done

Facts:
SunTrust employees falsified mortgage applications in order to get the commission. By stating that taxi drivers and line cooks were actually high-level corporate employees, they were able to collect commissions on dozens of properties.
They were subsequently indicted and convicted of wire fraud against a financial institution.
On appeal, they argued that the government should have been required to prove that SunTrust wouldn’t have authorized the loans without their lies.

Held:
The test is what a reasonable financial institution would do, “not a renegade lender with a demonstrated habit of disregarding materially false information.”

Wire Fraud against a Financial Institution – (1) a scheme to defraud; (2) the use of a wire communication in furtherance of the scheme; (3) a material statement or omission in furtherance of the scheme; (4) an intent to defraud; and (5) that the fraud scheme affected a financial institution.

Fraud – Fraud requires more than deception; it requires an intent that the deception result in depriving the victim of something of value

Fraud- A false statement is material if it has a natural tendency to influence a decision