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Fraud Statutes * 

Additional Information:   7203 - Accountant-Client Privilege 7203 - Accrual Basis 7203 - Admissibility 1 p1 7203 - Admissibility 1 p2 7203 - Admissibility 1 p3 7203 - Admissibility 1 p4 7203 - Admissibility 1 p5 7203 - Admissibility 1 p6 7203 - Admissibility 2 p1 7203 - Admissibility 2 p2 7203 - Admissibility 2 p3 7203 - Admissibility 2 p4 7203 - Admissibility 2 p5 7203 - Admissibility 3 p1 7203 - Admissibility 3 p2 7203 - Admissibility 3 p3 7203 - Admissibility 3 p4 7203 - Admissibility 3 p5 7203 - Admissibility 4 p1 7203 - Admissibility 4 p2 7203 - Admissions p1 7203 - Admissions p2 7203 - Advice of Counsel p1 7203 - Advice of Counsel p2 7203 - Amendment 7203 - Appeal Right to 7203 - Appeal Timeliness 7203 - Appeal Waiver 7203 - Appeal without merit 7203 - Arrest 7203 - Fraudulent Return 7203 - Defeat & Evade Income Taxes p1 7203 - Defeat & Evade Income Taxes p2 7203 - Defeat & Evade Income Taxes p3 7203 - Defeat &  Evade Income Taxes p4 7203 - Attorney Disqualified 7203 - Attorney's Testimony p1 7203 - Attorney's Testimony p2 7203 - Attorney's Testimony p3 7203 - Attorney's Testimony p4 7203 - Bail 7203 - Bank Records &  Net Worth Increases 1 p1 7203 - Bank Records &  Net Worth Increases 1 p2 7203 - Bank Records &  Net Worth Increases 1 p3 7203 - Bank Records &  Net Worth Increases 1 p4 7203 - Bank Records &  Net Worth Increases 1 p5 7203 - Bank Records &  Net Worth Increases 1 p6 7203 - Bank Records &  Net Worth Increases 2 p1 7203 - Bank Records &  Net Worth Increases 2 p2 7203 - Bank Records &  Net Worth Increases 2 p3 7203 - Bank Records &  Net Worth Increases 2 p4 7203 - Bank Records &  Net Worth Increases 2 p5 7203 - Bank Records &  Net Worth Increases 3 p1 7203 - Bank Records &  Net Worth Increases 3 p2 7203 - Bank Records &  Net Worth Increases 3 p3 7203 - Bank Records &  Net Worth Increases 3 p4 7203 - Bank Records &  Net Worth Increases 3 p5 7203 - Bank Records &  Net Worth Increases 4 p1 7203 - Bank Records &  Net Worth Increases 4 p2 7203 - Bank Records &  Net Worth Increases 4 p3 7203 - Bank Records &  Net Worth Increases 4 p4 7203 - Bank Records &  Net Worth Increases 4 p5 7203 - Bank Records &  Net Worth Increases 5 p1 7203 - Bank Records & Net Worth Increases 5 p2 7203 - Bank Records & Net Worth Increases 5 p3 7203 - Bank Records & Net Worth Increases 5 p4 7203 - Bank Records & Net Worth Increases 5 p5 7203 - Base Sentence p1 7203 - Base Sentence p2 7203 - Base Sentence p3 7203 - Base Sentence p4 I7203 - Bill of Particluar Conspiracy 7203 - Bill of Particulars 7203 - Books and Records 7203 - Burden of going forward with evidence 7203 - Burden of Proof 7203 - Carryback Offset 7203 - Changing Plea 7203 - Character witness p1 7203 - Character witness p2 7203 - Circumstanial Evidence p1 7203 - Circumstanial Evidence p2 7203 - Circumstanial Evidence p3 7203 - Circumstanial Evidence p4 7203 - Collateral Estoppel 7203 - Collection 7203 - Commitment by U.S. Commissioner 7203 - Communication to Jury 7203 - Compromise 7203 - Consolidation 7203 - Conspiracy p1 7203 - Conspiracy p2 7203 - Conspiracy 1 p1 7203 - Conspiracy 1 p2 7203 - Conspiracy 1 p3 7203 - Conspiracy 1 p4 7203 - Conspiracy 1 p5 7203 - Conspiracy 1 p6 7203 - Conspiracy 1 p7 7203 - Conspiracy 1 p8 7203 - Conspiracy 2 p1 7203 - Conspiracy 2 p2 7203 - Conspiracy 2 p3 7203 - Constitutional Grounds 1 p1 7203 - Constitutional Grounds 1 p2 7203 - Constitutional Grounds 1 p3 7203 - Constitutional Grounds 1 p4 7203 - Constitutional Grounds 1 p5 7203 - Constitutional Grounds 2 p1 7203 - Constitutional Grounds 2 p2 7203 - Constitutional Grounds 2 p3 7203 - Constitutional Grounds 2 p4 7203 - Constitutional Grounds 2 p5 7203 - Constitutional Grounds 3 p1 7203 - Constitutional Grounds 3 p2 7203 - Constitutional Grounds 3 p3 7203 - Constitutional Grounds 3 p4 7203 - Constitutional Grounds 3 p5 7203 - Constitutional Grounds 4 p1 7203 - Constitutional Grounds 4 p2 7203 - Constitutional Grounds 4 p3 7203 - Constitutional Grounds 4 p4 7203 - Constitutional Grounds 5 p1 7203 - Constitutional Grounds 5 p2 7203 - Constitutional Grounds 5 p3 7203 - Constitutional Grounds 5 p4 7203 - Constitutional Grounds 5 p5 7203 - Constitutional Grounds 6 7203 - Contempt Finding Ag. Defendant's Counsel 7203 - Continuance p1 7203 - Continuance p2 7203 - Continuance p3 7203 - Conviction Required 7203 - Copies of Records p1 7203 - Copies of Records p2 7203 - Corporation Officer 7203 - Costs 7203 - Credit for Time Served 7203 - Criminal Contempt 7203 - Cross-Examination PART 1 p1 7203 - Cross-Examination PART 1 p2 7203 - Cross-Examination PART 1 p3 7203 - Cross-Examination PART 1 p4 7203 - Cross-Examination PART 1 p5 7203 - Cross-Examination PART 2 7203 - DefendantHaving Facts Available p1 7203 - DefendantHaving Facts Available p2 7203 - DefendantHaving Facts Available p3 7203 - Degree of Proof p1 7203 - Degree of Proof p2 7203 - Depositions 7203 - Different Statute Cited 7203 - Discovery, Scope Of 7203 - Documentary Evidence in Jury Room 7203 - Double Jeopardy 1 p1 7203 - Double Jeopardy 1 p2 7203 - Double Jeopardy 1 p3 7203 - Double Jeopardy 1 p4 7203 - Double Jeopardy 1 p5 7203 - Double Jeopardy 2 p1 7203 - Double Jeopardy 2 p2 7203 - Double Jeopardy 2 p3 7203 - Double Jeopardy 2 p4 7203 - Enhanced Sentence Sophisticated Means p1 7203 - Enhanced Sentence Sophisticated Means p2 7203 - Enhanced Sentence p1 7203 - Enhanced Sentence p2 7203 - Entrapment 7203 - Erroneous calculation of tax 7203 - Exclusion of Oral Testimony 7203 - Exercise Privilege-Exclusion from Courtroom 7203 - Expert Witness p1 7203 - Expert Witness p2 7203 - Expert Witness p3 7203 - Expert Witness p4 7203 - Extenuating Circumstances 7203 - Fact Finding p1 7203 - Fact Finding p2 7203 - Fact Finding p3 7203 - Fact Finding p4 7203 - Fact Finding p5 7203 - Failure of IRS to File Return 7203 - Failure to Assess Tax 7203 - Failure to Prosecute p1 7203 - Failure to Prosecute p2 7203 - Failure to Prosecute p3 7203 - Failure to Prosecute p4 7203 - Failure to Prosecute p5 7203 - Failure to Report Income 1 p1 7203 - Failure to Report Income 1 p2 7203 - Failure to Report Income 1 p3 7203 - Failure to Report Income 1 p4 7203 - Failure to Report Income 1 p5 7203 - Failure to Report Income 1 p6 7203 - Failure to Report Income 2 p1 7203 - Failure to Report Income 2 p2 7203 - Failure to Supply Information 7203 - False Return 7203 - Fictitious names 7203 - Fraud Case Procedures p1 7203 - Fraud Case Procedures p2 7203 - Fraud Case Procedures p3 7203 - Fraud Case Procedures p4 7203 - General Exception 7203 - Good Faith p1 7203 - Good Faith p2 7203 - Good Faith p3 7203 - Good Faith p4 7203 - Government Agent Prosecuting Claim 7203 - Grand Jury 1 p1 7203 - Grand Jury 1 p2 7203 - Grand Jury 1 p3 7203 - Grand Jury 1 p4 7203 - Grand Jury 1 p5 7203 - Grand Jury 2 p1 7203 - Grand Jury 2 p2 7203 - Hearsay Evidence p1 7203 - Hearsay Evidence p2 7203 - Hearsay Evidence p3 7203 - Hearsay Evidence p4 7203 - Hearsay Evidence p5 7203 - Hostility of the Court p1 7203 - Hostility of the Court p2 7203 - Hostility of the Court p3 7203 - Hypnosis 7203 - Identification 7203 - Ignorance of Law 7203 - Immunity p1 7203 - Immunity p2 7203 - Immunity p3 7203 - Impeachment p1 7203 - Impeachment p2 7203 - Improper Comment PART 1 p1 7203 - Improper Comment PART 1 p2 7203 - Improper Comment PART 1 p3 7203 - Improper Comment PART 1 p4 7203 - Improper Comment PART 1 p5 7203 - Improper Comment PART 2 p1 7203 - Improper Comment PART 2 p2 7203 - Improper Comment PART 2 p3 7203 - Improper Comment PART 2 p4 7203 - Improper Comment PART 2 p5 7203 - Improper Comment PART 3 7203 - Improper Question 7203 - Incrimination 1 p1 7203 - Incrimination 1 p2 7203 - Incrimination 1 p3 7203 - Incrimination 1 p4 7203 - Incrimination 1 p5 7203 - Incrimination 2 p1 7203 - Incrimination 2 p2 7203 - Incrimination 2 p3 7203 - Incrimination 2 p4 7203 - Incrimination 2 p5 7203 - Incriminaton Before Grand Jury p1 7203 - Incriminaton Before Grand Jury p2 7203 - Instructions to Jury 1 p1 7203 - Instructions to Jury 1 p2 7203 - Instructions to Jury 1 p3 7203 - Instructions to Jury 1 p4 7203 - Instructions to Jury 1 p5 7203 - Instructions to Jury 2 p1 7203 - Instructions to Jury 2 p2 7203 - Instructions to Jury 2 p3 7203 - Instructions to Jury 2 p4 7203 - Instructions to Jury 2 p5 7203 - Instructions to Jury 3 p1 7203 - Instructions to Jury 3 p2 7203 - Instructions to Jury 3 p3 7203 - Instructions to Jury 3 p4 7203 - Instructions to Jury 3 p5 7203 - Instructions to Jury 4 p1 7203 - Instructions to Jury 4 p2 7203 - Instructions to Jury 4 p3 7203 - Instructions to Jury 4 p4 7203 - Instructions to Jury 4 p5 7203 - Instructions to Jury 5 p1 7203 - Instructions to Jury 5 p2 7203 - Instructions to Jury 5 p3 7203 - Instructions to Jury 5 p4 7203 - Instructions to Jury 5 p5 7203 - Instructions to Jury 6 p1 7203 - Instructions to Jury 6 p2 7203 - Instructions to Jury 6 p3 7203 - Instructions to Jury 6 p4 7203 - Instructions to Jury 6 p5 7203 - Instructions to Jury 7 p1 7203 - Instructions to Jury 7 p2 7203 - Instructions to Jury 7 p3 7203 - Instructions to Jury 7 p4 7203 - Instructions to Jury 7 p5 7205 Convictions p1 7205 Convictions p2 7205 Convictions p3 7205 Convictions p4 7205 Convictions p5 7205 Double Jeopardy 7205 Exemption Certificates 7205 Hostility of the Court 7205 Indictment 7205 Information 7205 Intent to Deceive Lacking 7205 Right to Counsel 7205 Trial, Timeliness 7205 Variance 7205 Venue 7205 Willfulness 7206 False Returns 1 p1 7206 False Returns 1 p2 7206 False Returns 1 p3 7206 False Returns 1 p4 7206 False Returns 1 p5 7206 False Returns 2 p1 7206 False Returns 2 p2 7206 False Returns 2 p3 7206 False Returns 2 p4 7206 False Returns 2 p5 7206 False Returns 3 p1 7206 False Returns 3 p2 7206 False Returns 3 p3 7206 False Returns 3 p4 7206 Basis for Allegation of Fraud 7206 Concealment of Assets p1 7206 Concealment of Assets p2 7206 Conspiracy 1 p1 7206 Conspiracy 1 p2 7206 Conspiracy 1 p3 7206 Conspiracy 1 p4 7206 Conspiracy 2 p1 7206 Conspiracy 2 p2 7206 Constitutionality p1 7206 Constitutionality p2 7206 Constitutionality p3 7206 Costs 7206 Disclosure of Returns 7206 Estoppel p1 7206 Estoppel p2 7206 Estoppel p3 7206 Evidence 1 p1 7206 Evidence 1 p2 7206 Evidence 1 p3 7206 Evidence 1 p4 7206 Evidence 1 p5 7206 Evidence 2 p1 7206 Evidence 2 p2 7206 Evidence 2 p3 7206 Evidence 2 p4 7206 Evidence 2 p5 7206 Evidence 3 p1 7206 Evidence 3 p2 7206 Evidence 3 p3 7206 Evidence 3 p4 7206 Evidence 3 p5 7206 Evidence 4 p1 7206 Evidence 4 p2 7206 Evidence 4 p3 7206 False Claims Against U.S. 7206 False Documents p1 7206 False Documents p2 7206 False Statements in Return 1 p1 7206 False Statements in Return 1 p2 7206 False Statements in Return 1 p3 7206 False Statements in Return 1 p4 7206 False Statements in Return 1 p5 7206 False Statements in Return 2 p1 7206 False Statements in Return 2 p2 7206 False Statements in Return 2 p3 7206 False Statements in Return 2 p4 7206 False Statements in Return 3 p1 7206 False Statements in Return 3 p2 7206 False Statements in Return 3 p3 7206 False Statements in Return 3 p4 7206 False Statements in Return 3 p5 7206 False Statements in Return 4 p1 7206 False Statements in Return 4 p2 7206 False Statements in Return 4 p3 7206 False Statements in Return 4 p4 7206 False Statements in Return 4 p5 7206 False Statements in Return 5 p1 7206 False Statements in Return 5 p2 7206 False Statements in Return 5 p3 7206 False Statements in Return 5 p4 7206 False Statements to IRS Agents p1 7206 False Statements to IRS Agents p2 7206 False Statements to IRS Agents p3 7206 Forgery 7206 Grand Jury 7206 Guilty Plea p1 7206 Guilty Plea p2 7206 Immunity 7206 Indictment 1 p1 7206 Indictment 1 p2 7206 Indictment 1 p3 7206 Indictment 1 p4 7206 Indictment 1 p5 7206 Indictment 2 p1 7206 Indictment 2 p2 7206 Instructions to Jury 1 p1 7206 Instructions to Jury 1 p2 7206 Instructions to Jury 1 p3 7206 Instructions to Jury 1 p4 7206 Instructions to Jury 1 p5 7206 Instructions to Jury 2 p1 7206 Instructions to Jury 2 p2 7206 Instructions to Jury 2 p3 7206 Instructions to Jury 2 p4 7206 Instructions to Jury 2 p5 7206 Instructions to Jury 3 p1 7206 Instructions to Jury 3 p2 7206 Instructions to Jury 3 p3 7206 Instructions to Jury 3 p4 7206 Instructions to Jury 3 p5 7206 Jury Verdict Disregarded 7206 Jury p1 7206 Jury p2 7206 Jury p3 7206 Lesser Included Offense p1 7206 Lesser Included Offense p2 7206 Motion For Continuance 7206 Motion to Sever 7206 Motion to Transfer 7206 Motion to Vacate Sentence 7206 Net Worth Statement 7206 Offer in Compromise 7206 Perjury 7206 False or Fraudulent Returns p1 7206 False or Fraudulent Returns p2 7206 False or Fraudulent Returns p3 7206 False or Fraudulent Returns p4 7206 False or Fraudulent Returns p5 7206 Prior Convictions 7206 Prior Law 7206 Probation 7206 Prosecutor's Comment p1 7206 Prosecutor's Comment p2 7206 Restitution 7206 Right to Counsel p1 7206 Right to Counsel p2 7206 Sentence p1 7206 Sentence p2 7206 Sentence p3 7206 Sentence p4 7206 Sentencing Guidelines 1 p1 7206 Sentencing Guidelines 1 p2 7206 Sentencing Guidelines 1 p3 7206 Sentencing Guidelines 1 p4 7206 Sentencing Guidelines 1 p5 7206 Sentencing Guidelines 2 p1 7206 Sentencing Guidelines 2 p2 7206 Sentencing Guidelines 2 p3 7206 Statute of Limitations p1 7206 Statute of Limitations p2 7206 Venue 7206 Willfulness Defined p1 7206 Willfulness Defined p2 7206 Willfulness Defined p3 7206 Willfulness Defined p4 7207 Conviction 7207 Defenses 7207 Motion to Dismiss 7207 Sentencing 7207 Willfully Defined 7210 Willful Failure to Obey Summons 7212 Assault 7212 Bribery 7212 Constiutionality 7212 Indictment 7212 Interference p1 7212 Interference p2 7212 Interference p3 7212 Interference p4 7212 Jury Instructions 7212 Rescue of Seized, Levied Property p1 7212 Rescue of Seized, Levied Property p2 7212 Sentence p1 7212 Sentence p2 7212 Statute of Limitations 7212 Suppresion of Evidence 7215 Constitutionality 7215 Conviction 7215 Corporation 7215 Defenses 7215 Evidence 7215 Intent 7215 Speedy Trial 7216 Consent 7216 Preparer Defined 7216 Scope of Statute 7217 IRS Employees

Fraud Statutes

7204- Fraudulent Statement or No Statement to Employees: 

Providing False Forms W-2

[91-1 USTC ¶50,022] Martin J. Hughes, Plaintiff-Appellant/Cross-Appellee v. United States of America , Defendant-Appellee/ /Cross-Appellant. United States of America , Respondent v. Martin J. Hughes, Petitioner

(CA-6), U.S. Court of Appeals, 6th Circuit, 87-4052, 87-4069, 87-4125, 4/4/90, Affirming, reversing and remanding a District Court decision, 88-1 USTC ¶9277

[Code Secs. 7204 and 7206 ]

Criminal penalties: Fraud and false statements: Aiding and advising preparation of false returns.--The U.S. Court of Appeals at Cincinnati (CA-6) affirmed a decision of the district court which reduced a union vice-president's felony conviction under Code Sec. 7206(2) for aiding and assisting in the filing of a false W-3 wage transmittal form with the IRS to a misdemeanor conviction under Code Sec. 7204 . If the government could charge an employer with a felony for filing a false W-3 form with the IRS, it would render useless Congress's intent to punish as a misdemeanant a person who provides false information on a statement required under Code Sec. 6051 . In addition, the appellate court reversed the district court's denial of a similar reduction with respect to another count of the indictment against the union official. With respect to this count, the government conceded that the official could not have violated Code Sec. 7206(2) merely by furnishing a particular employee with a false W-2 form, since Code Sec. 7204 provided the exclusive sanction for such an act. In refusing to reduce the union official's felony conviction on this count, the district court improperly found that the jury could have reasonably concluded that the official took other steps in counseling the employee to understate her income on her tax return. In fact, the employee denied that the official gave her any advice concerning the filing of her tax return. On remand, the district court was instructed to vacate the official's felony conviction, enter a misdemeanor conviction on that count, and resentence the official accordingly.

Percy Squire, Catherine M. Ballard, Bricker & Eckler, 100 S. Third St., Columbus, Ohio 43215, Martin J. Hughes III, 21410 Morewood Parkway, Rocky River, Ohio 44116, Merritt C. Dietz, Jr., Dietz, Fridy & Freeburger, Main St., Sebree, Ky. 42455, for plaintiff-appellant/cross-appellee. Christian H. Stickan, John Siegel, Assistant United States Attorneys, Cleveland, Ohio 44114, for U.S. Michael P. Butler, Assistant Prosecuting Attorney, Cleveland, Ohio, for amicus curiae.

Before BOGGS and NORRIS, Circuit Judges, ENGEL, Senior Circuit Judge.

ALAN E. NORRIS, Circuit Judge:

Defendant, Martin J. Hughes, appeals from his conviction on twelve counts of a thirty-seven-count indictment charging him with various federal criminal offenses. The government also appeals the district court's decisions acquitting defendant on two of the counts and reducing his conviction to a lesser included offense on another count. For the reasons stated below, we affirm the district court's judgment in part and reverse in part.

I.

On May 6, 1986 , the grand jury issued a thirty-seven-count indictment against defendant, a district vice-president for the Communications Workers of America, AFL-CIO ("CWA"), charging him with mail fraud, embezzlement, falsification of union records, aiding and assisting in the filing of false W-2 and W-3 forms with the Internal Revenue Service ("IRS"), and with making false statements to the United States through the submission of falsified labor reporting documents. The government alleged that defendant submitted to the CWA International office expense vouchers that falsely claimed reimbursement for mileage and meal expenses for union employees. The government alleged that defendant received nearly $400,000 in reimbursement funds from the CWA International and used those funds to make political contributions and to pay salaries at the United Telephone Credit Union ("UTCU").

Specifically, the government charged defendant in Counts 1 through 6 and Counts 19 through 23 with mail fraud, in violation of 18 U.S.C. §1341 . Counts 7 through 12 and Counts 24 through 28 charged defendant with embezzlement, in violation of 29 U.S.C. §501(c) . Counts 13 through 18 and Counts 29 through 32 charged defendant with falsification of union records, in violation of 29 U.S.C. §439(c). Counts 33 through 35 charged defendant with aiding and assisting in the filing of false W-2 and W-3 forms to the IRS, in violation of 26 U.S.C. §7206(2) . Finally, Counts 36 and 37 charged defendant with making false statements to the United States through the submission of false labor reporting documents, in violation of 18 U.S.C. §1001 .

The case proceeded to trial on July 1, 1987 . Before the case was sent to the jury, the district court dismissed Counts 1 through 12 and Counts 19 through 28, the mail fraud and embezzlement charges. After the case had been submitted to the jury, the court dismissed Count 35, one of the tax charges, because of a typographical mistake in the indictment. The jury returned guilty verdicts on each of the remaining counts.

Defendant then moved for acquittal on Counts 33, 34, 36, and 37. The court acquitted defendant of the felony charges in Counts 36 and 37, finding as a matter of law that false statements made by defendant were not material. The court also reduced defendant's conviction of a felony under 26 U.S.C. §7206(2) to the lesser included misdemeanor under 26 U.S.C. §7204 in Count 33. The court refused to reduce the felony conviction under section 7206(2) in Count 34.

Defendant was sentenced to two years' probation and fined $10,000.

The government appeals the district court's action in acquitting defendant on Counts 36 and 37, and reducing the felony conviction on Count 33.

Defendant appeals the district court's decisions denying his motions for acquittal on Count 34, for recusal, for mistrial, and to dismiss the entire indictment in light of the holding in McNally v. United States, 483 U.S. 350 (1987).

II.

A. The False Statement Counts Under 18 U.S.C. §1001

The government contends that the district court erred in acquitting defendant on the felony charges under 18 U.S.C. §1001 in Counts 36 and 37, when it concluded as a matter of law that false statements made by defendant were not material.

Section 1001 is a general prohibition against falsifying information given to government agencies, and provides:

Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false, fictitious, or fraudulent statements or representations, or makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entry, shall be fined not more than $10,000 or imprisoned not more than five years, or both.

Although the statute explicitly mentions materiality only in the first clause, courts have read such a requirement into the second clause as well "in order to exclude trivial falsehoods from the purview of the statute." United States v. Abadi, 706 F.2d 178, 180 (6th Cir.), cert. denied, 464 U.S. 821 (1983). Under section 1001 , a false statement to a federal agency is material even if it does not actually influence a decision of the agency, so long as it has a natural tendency to influence or is capable of influencing a decision of the agency. United States v. Chandler , 752 F.2d 1148, 1151 (6th Cir. 1985).

However, materiality "is not an element of the offense that must be proved beyond a reasonable doubt but a 'judicially imposed limitation to ensure the reasonable application of the statute.' " Chandler , 752 F.2d at 1151 (quoting Abadi, 706 F.2d at 180 n.2). Accordingly, "materiality is a question of law for the court to decide." United States v. Keefer, 799 F.2d 1115, 1126 (6th Cir. 1986). "A materiality determination is subject to complete review on appeal and is not controlled by the clearly erroneous standard." Chandler , 752 F.2d at 1151.

In this case, the jury found that the defendant made false statements to the Department of Labor when he caused the CWA to file false LM-2 reports. These are the annual reports that unions are required to file disclosing, among other things, the salary and expenses of each employee who receives more than $10,000 during the year. See 29 U.S.C. §431(b)(3). Evidence demonstrated that the LM-2 reports filed by the CWA for 1982 and 1983 contained false entries showing Gay Griffith, the manager of UTCU, as a CWA employee who received $7,995 in 1982 and $10,540 in 1983 as reimbursement for expenses. In fact, these amounts were paid to Griffith as salary and were generated by the false expense vouchers filed with the CWA at the direction of defendant.

The district court found that the false statements were not material. The district court took into consideration that the total amount paid to Griffith was correctly stated, that the misstated amounts were small in relation to the union's total expenses, and the testimony of a labor department official that the chief purpose for requiring these figures was to call attention to persons who were being paid by more than one union and to "adequately describe" the total amount the union paid to each employee. The court also relied upon the fact that the false statements had no effect on any determinations by the Department of Labor, even though the court also noted that the government need not prove such an effect to sustain a conviction under section 1001 . Finally, the court considered the fact that Congress had also included in the Labor Management Reporting and Disclosure Act a prohibition against making material false representations in documents required by the Act, but provided that a violation would be punished as a misdemeanor, rather than a felony. 29 U.S.C. §439. The court acknowledged that the United States Supreme Court, in United States v. Batchelder, 442 U.S. 114 (1979), held that if two separate laws cover certain criminal activity, the government may prosecute under either law. However, the district court felt that the existence of a misdemeanor statute covering the making of false statements to the Department of Labor was relevant in determining the issue of materiality.

The district court erred in concluding that the false statements were immaterial. The statements were clearly of the type capable of influencing the Department of Labor's information-gathering and regulatory decision-making process. Since Congress specifically required a union to disclose the amounts it disburses in salary and reimbursement expenses for each employee who receives over $10,000, and the LM-2 form provided by the Department of Labor requires the union to separately list the amounts given to an employee for salary and for reimbursed expenses, it follows that a false reporting of information specifically required to be disclosed is material.

The fact that the misstated amounts are relatively small when compared with total union expenditures is not particularly relevant to the issue of materiality. Instead, the relevant inquiry is whether the false information is of the type that is capable of influencing a decision of an agency, as opposed to an examination of the magnitude of the falsehood. See United States v. Norris, 749 F.2d 1116, 1121-22 (4th Cir. 1984) (false inclusion of $650 in expense statement totalling $35,584 is material), cert. denied, 471 U.S. 1065 (1985). Similarly, the district court's reliance upon the fact that Congress also provided that essentially identical conduct could also be punished as a misdemeanor is misplaced, especially in view of the court having acknowledged that "the false statements do rise to the level of materiality required" to violate the misdemeanor statute. Since the government may bring a prosecution for making a false statement to the Department of Labor under either 18 U.S.C. §1001 or 29 U.S.C. §439, see United States v. Batchelder, 442 U.S. at 123-24, and no different standard for determining materiality is set out in the statutes, there is no basis for concluding that a statement that is material under 29 U.S.C. §439 is not also material under 18 U.S.C. §1001 .

Accordingly, we reverse the district court's decision acquitting defendant on Counts 36 and 37 of the indictment. Upon remand, the court is instructed to reinstate the jury's felony convictions on these Counts, and to resentence defendant accordingly.

B. The False W-2 and W-3 Forms

The government contends that the district court erred in reducing defendant's Count 33 felony conviction under 26 U.S.C. §7206(2) to a misdemeanor conviction under 26 U.S.C. §7204 . Defendant contends that the district court erred by refusing to also reduce his felony conviction in Count 34 to a misdemeanor.

1. Count 33

In Count 33, the government charged defendant with aiding and assisting in the filing of a false W-3 wage transmittal form with the IRS. 26 U.S.C. §6051(a) provides that an employer who is required to deduct and withhold taxes from its employees must furnish to each employee a statement, the W-2 form, that sets forth the amount of wages the employee earned and the amount withheld in taxes. 26 U.S.C. §6051(d) provides that the employer must also file a duplicate of the statement with the IRS. This duplicate is the W-3 form.

26 U.S.C. §7206(2) provides, in pertinent part, that a person is guilty of a felony if he

[w]illfully aids or assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with any matter arising under, the internal revenue laws, of a return, affidavit, claim, or other document, which is fraudulent or is false as to any material matter, whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document.

26 U.S.C. §7204 provides that:

In lieu of any other penalty provided by law (except the penalty provided by section 6674 ) any person required under the provisions of section 6051 to furnish a statement who willfully furnishes a false or fraudulent statement or who willfully fails to furnish a statement in the manner, at the time, and showing the information required under section 6051 , or regulations prescribed thereunder, shall, for each such offense, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than one year, or both. (Emphasis added.)

In reducing defendant's section 7206 felony conviction to a section 7204 misdemeanor offense, the district court concluded that section 7204 provides the exclusive sanction against an employer for submitting a false W-3 statement to the IRS and that it was a lesser included offense of that defined in section 7206 .

The government argues that section 7204 deals exclusively with statements furnished to employees and does not cover the filing of a false W-3 form with the IRS, pointing to the language in that section providing that it is the exclusive sanction for persons who furnish a statement required to be furnished under section 6051 and t