United States v. James L. Chapman, Jr.

Chapman appeals a conviction under 15 U.S.C. § 1644 (b) for interstate transportation of a fraudulently obtained credit card. He had made several false statements on his Bankamericard credit application, statements which falsely enhanced his financial status. Following the receipt of his credit card, Chapman made charges thereon but failed to make payments for the credit purchases.

During the trial, Chapman contended that the prosecution had the burden of proving not only that the statements made were material, but that there was actual reliance by the issuing company in reference to his misrepresentations. The trial court ruled that the giving of false statements was sufficient to support a violation of a § 1644(b) (rejecting Chapman’s claim that reliance was an element of the Government’s case) if the jury could reasonably conclude that such statements had a tendency to induce action or reliance by the issuing company.

Chapman asserts that the district court erred. On appeal, this court is presented with the sole issue of whether proof of actual reliance is necessary to establish that a credit card was fraudulently obtained within the meaning of § 1644(b).

We note…