WILMINGTON, Del. – Today the Court of Appeals for the Third Circuit reversed defendants’ convictions for lying to the Federal Reserve, the SEC, and the public about millions of dollars in past-due loans. In a matter of first impression, the Court held that the government was required to establish that the defendants’ statements were false under any “objectively reasonable” interpretation of the applicable reporting instructions – even in a circumstance where a defendant never believed in that interpretation and intended to lie to the regulators all along. Needless to say, I am disappointed with this result. We are currently analyzing the Court’s opinion and evaluating our options, including, as the Court of Appeals authorized, retrying the defendants for conspiracy and securities fraud.
After the guilty verdict in this case, I described the prosecutors and agents who worked on this case as being among the finest professionals in law enforcement. I stand by that statement today.