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Federal Perjury Charges Under 18 USC 1621 and 1623: Lying Under Oath in Federal Court

So your probably facing federal perjury charges and your ABSOLUTELY TERRIFIED because you gave testimony under oath that prosecutors claim was false. Maybe you testified in federal trial and gave answer that wasn’t completely accurate. Maybe there’s allegations you lied to grand jury about your knowledge of events. Or maybe you made statements in deposition that prosecutors say contradict other evidence. Look, we get it. Your COMPLETELY OVERWHELMED by these charges. And you should be! Because perjury under 18 USC 1621 carries 5 YEARS in federal prison and prosecutors use two different perjury statutes with different proof requirements and different defenses – knowing which statute you’re charged under is CRITICAL!

What Is Federal Perjury Under 18 USC 1621 and 1623?

Let me explain the two federal perjury statutes with different elements and strategies. Section 1621 is traditional broadly-applicable perjury statute covering testimony before legislative, administrative, or judicial bodies! Section 1623 added in 1970 applies ONLY to federal courts and grand juries but eliminates some proof problems!

Here’s what’s really scary – perjury doesn’t require you knowingly lied! “Literally true but misleading” testimony can still be perjury if designed to deceive! Technically accurate answer that creates false impression? Prosecutors claim that’s perjury!

Critical difference from false statements statute (18 USC 1001): perjury requires oath or affirmation! False statement charge doesn’t need oath – covers lies to FBI agents in interviews! Perjury requires formal sworn testimony! If your testimony was under oath, perjury applies not false statements!

Penalties are SAME as false statements: 5 years maximum for standard perjury, 10 years maximum if perjury before FISA courts! Plus fines up to $250,000! Multiple false statements under oath? Multiple 5-year counts!

What’s the Difference Between Sections 1621 and 1623?

Critical distinction affecting proof requirements and available defenses!

Section 1621 applies to ANY oath before ANY federal, state, or local tribunal! Testimony in legislative hearings, administrative proceedings, depositions, affidavits, signed declarations – all covered by 1621! Broadly applicable statute!

Section 1623 applies ONLY to testimony before federal courts or federal grand juries! Testimony during federal criminal trial, testimony before federal grand jury, statements in federal civil proceedings – covered by 1623! Narrower scope but easier for prosecutors to prove!

Two-witness rule is CRITICAL difference! Conviction under 1621 requires corroboration from two witnesses OR one witness plus independent corroborating evidence! Can’t convict based solely on one witness contradicting defendant’s testimony! Historical protection against false accusations!

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But 1623 ELIMINATES two-witness rule! Prosecutors can prove 1623 violation with single witness testimony contradicting defendant! Makes prosecution much easier! This is why prosecutors prefer charging 1623 when testimony was in federal court/grand jury!

Recantation defense exists under 1623 but NOT 1621! If you correct your false testimony in time, can avoid prosecution under 1623! Common law never recognized recantation defense so 1621 doesn’t include it! Under 1623, if you admit lie before proceedings substantially affected and before falsity exposed, prosecution barred!

What Must Government Prove for Perjury?

Elements vary slightly between statutes but materiality is always required!

For perjury under 1621: (1) defendant made statement under oath (2) statement was false (3) defendant knew statement was false when made (4) false statement was material to proceedings! All four elements required!

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Featured on Netflix's "Inventing Anna," Todd Spodek brings decades of high-stakes criminal defense experience. His aggressive approach has secured dismissals and acquittals in cases others deemed unwinnable.

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For false declarations under 1623: (1) defendant made declaration under penalty of perjury (2) in proceedings before federal court or grand jury (3) declaration was false (4) defendant knew it was false (5) declaration was material! Five elements but easier to prove because no two-witness requirement!

Materiality standard is SAME for both statutes! Statement must have natural tendency to influence or be capable of influencing decision of tribunal! Doesn’t need to actually influence outcome – just needs potential to affect decision-making!

Supreme Court in Bronston v. United States clarified that misleading but literally true statements aren’t perjury! If answer is technically accurate but evasive, questioner should follow up with more specific questions! Burden is on examiner to ask clear unambiguous questions! Clever evasion isn’t perjury if words are literally true!

But prosecutors argue “literally true but misleading” can still be perjury if calculated to deceive! We’ve seen cases where technically accurate testimony that created false impression was charged! Defense depends on showing answer was responsive to question asked!

What Is the Two-Witness Rule?

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Todd Spodek
ABOUT THE AUTHOR

Todd Spodek

Managing Partner

With decades of experience in high-stakes federal criminal defense, Todd Spodek has built a reputation for aggressive, strategic representation. Featured on Netflix's "Inventing Anna," he has successfully defended clients facing federal charges, white-collar allegations, and complex criminal cases in federal courts nationwide.

Bar Admissions: New York State Bar New Jersey State Bar U.S. District Court, SDNY U.S. District Court, EDNY
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Community Discussion

Real questions and discussions from readers about this topic.

62
SC stressed_contractor Construction 3w ago

Settled my $42k MCA for $22k — here’s exactly what happened

Just closed this chapter so wanted to share. I'm a HVAC contractor in the the US area. Took out $42k from a well-known MCA company about 14 months ago. Daily payments of $420. When a big project fell through I couldn't keep up.

Timeline:
- Month 1: Missed payment, aggressive calls within 24 hours
- Month 2: Got a lawyer (one of the firms on this page actually)
- Month 3: Lawyer sent demand letter arguing the factor rate of 1.52 was effectively a 84% APR, usurious under New York law
- Month 4-5: Negotiation. MCA initially offered 80%.
- Month 6: Settled for 42 cents on the dollar.

AMA if you have questions.

36
TH theUSCPA Verified CPA 3w ago

Tax note: the forgiven amount may be taxable as cancellation of debt income. There are exceptions if you're insolvent (IRS Form 982). Don't get surprised at tax time.

25
SC stressed_contractor Business Owner 3w ago

My attorney charged a flat fee of $3000 for the negotiation. Some work on contingency. Shop around — I talked to three before choosing. The free consultations are genuinely free.

23
CT curious_the_us_biz 3w ago

How much did the lawyer cost? That's what's holding me back.

23
SC stressed_contractor Business Owner 3w ago

Yes, there was a UCC lien. My lawyer got it released as part of the settlement. Make sure that's in writing before you pay a dime.

13
LP local_plumber Business Owner 3w ago

Did they file a UCC lien against your business? That's what I'm worried about.

57
SD Sarah_downtown Boutique Owner 1w ago

Success story: settled $42k MCA debt for $18k — don’t give up

Just want to post something positive. I own a hair salon in the US. Took out an MCA when I needed to renovate. $42k advance, $63k payback. Daily debits of $240 were eating me alive.

Got connected with a settlement company from this page. Within 2 weeks they had the MCA company at the table. Settled for $18k paid over 6 months. That's 43 cents on the dollar.

The whole process took about 10 weeks. If you're reading this at 2am stressed out — make the call tomorrow.

23
TH theUSRetailGuy Retail 1w ago

This is exactly what I needed to read. Thank you. Making the call tomorrow.

17
LS local_salon_owner Boutique Owner 1w ago

Great question. I was able to get a small SBA microloan through a local credit union 3 months after settlement. The key was having the settlement agreement and UCC release on file.

14
LC local_curious 1w ago

How did it affect your ability to get future financing?

57
TH theUSRetailGuy Retail 2w ago

Multiple MCAs stacked on top of each other — drowning

I own a restaurant in the US. Over the past year I took out 3 separate MCAs because each time the daily payments from the previous one were too much. Now I'm paying $850/day across all three. My gross revenue is maybe $2,200/day on a good day.

Total payback would be around $240k for $135k in advances. Is there any way out without closing?

32
UD US_debt_relief_pro Verified 1w ago

We see stacking cases regularly. Typical approach:
1. Close the account being debited, reroute revenue
2. Enter all funders into negotiation simultaneously
3. Use the stacking argument as leverage
4. Negotiate a single consolidated settlement

With those factor rates, you have strong ammunition for a usury argument in New York under state usury statutes.

24
SC stressed_contractor Construction 1w ago

You NEED professional help — this isn't something you negotiate yourself with multiple funders. Each has a UCC lien and they'll fight each other. The stacking itself is leverage — a good attorney will argue the funders knew the combined payments were unsustainable, which is predatory lending.

19
AL anonymous_local 1w ago

Former restaurant owner here. Was in your exact situation. Settled all 3 for a combined 48 cents on the dollar. Took about 4 months. My business survived.

48
AF Anonymous_Food_Truck Food Truck 3w ago

Warning: don’t take a second MCA to pay off the first

Let me be the cautionary tale. I took a $20k advance for my food truck. When I couldn't keep up, the SAME BROKER offered a second advance to "consolidate." Second was $35k — $20k paid off the first, I got $15k cash.

Factor rate on the second: 1.55. Instead of owing $28k (original payback), I owed $54,250. For $35k in actual cash.

Don't do it. Talk to a professional, not the broker who put you here.

39
MB mca_broker_reform 3w ago

Former MCA broker here (not proud). This is called "stacking" and it's how companies make real money. The broker gets commission, the funder gets a fresh contract. The only person who loses is the business owner. I left the industry because of this.

30
TH theUSBizOwner2025 Business Owner 3w ago

THIS. The brokers earn commissions on EACH deal. Of course they suggest a second advance.

43
TC throwaway_coj_scared 1mo ago

Got served a confession of judgment from an MCA company — what do I do??

I got a letter from a New York court saying there's a judgment against my business for $85,000. Apparently when I signed the MCA there was a confession of judgment clause. I'm in the US — how can a NY court have jurisdiction? Can they enforce this in New York?

50
US US_small_biz_atty Verified 1mo ago

Take a breath. This is more common than you think.

1. To enforce a NY judgment in New York, they must "domesticate" it through New York courts under the Uniform Enforcement of Foreign Judgments Act. You can challenge this.
2. You can move to vacate the NY judgment — NY courts have been increasingly skeptical of COJs from MCA companies.
3. New York has its own protections under state usury statutes.

Do NOT ignore this. Get a lawyer immediately — there are filing deadlines.

32
MS mca_survivor_US Settled $87k 4w ago

Had the same thing happen. My attorney filed to vacate in NY and challenged domestication in your state simultaneously. The MCA company backed down and we settled. They use the COJ as a scare tactic.

37
TU the_us_trucking B2B Services 2w ago

MCA company threatening to contact my clients — is this legal?

The MCA company is threatening to contact my clients directly to intercept payments. They say the agreement gives them the right to redirect my accounts receivable. I'm a consulting firm — if my clients find out about my financial issues they'll drop me.

27
US US_small_biz_atty Verified 1w ago

This is a pressure tactic. Even if the MCA agreement includes assignment of receivables, actually contacting your clients is different. Under New York's UCC Article 9, there are proper legal channels. More importantly, if this causes reputational harm, you may have a claim for tortious interference. Document everything.

16
MS mca_survivor_US Settled $87k 1w ago

They pulled this same threat on me. Never followed through. Get a lawyer to send them a letter and it stops.

36
SH side_hustle_professional 1w ago

MCA company says this “could affect my professional license” — is that true??

I'm a realtor who started a consulting firm. Took an MCA, now behind on payments. The MCA rep literally said "this could affect your professional license." Is that possible?

33
US US_small_biz_atty Verified 1w ago

No. Full stop. An MCA company cannot affect your professional license. Licensing boards do NOT discipline based on business debts. This is a scare tactic and arguably violates the Fair Debt Collection Practices Act.

Document who said this, when, and how. This kind of threat strengthens your position — shows bad faith, can be used as leverage or basis for a countersuit.

20
HB healthcare_biz_owner MD 1w ago

Had a similar scare. Your license and business debts are completely separate. Do not let them intimidate you.

30
LN late_night_worrier 3w ago

Can an MCA company garnish my personal bank account?

My MCA is in my LLC's name but I signed a personal guarantee. If I default can they come after my personal checking? My wife is terrified they'll drain our savings.

40
US US_small_biz_atty Verified 3w ago

The personal guarantee doesn't mean automatic access to your personal account. They'd need to: (1) get a judgment against you personally, then (2) use that judgment to garnish.

In New York, there are significant exemptions. Talk to an attorney about New York-specific protections — many personal guarantees have defects that make them voidable.

16
AL anonymous_local 3w ago

We went through this. Moved personal savings to a separate account at a different bank. Not legal advice, but it bought us time to get proper counsel. The PG was negotiated down as part of the settlement.

30
NT new_to_mca_problems 2w ago

How long does the settlement process actually take?

Everyone says "get a lawyer" but nobody talks about the timeline. I'm hemorrhaging money every day. How long from first call to resolution? Need to plan cash flow.

35
UD US_debt_relief_pro Verified 2w ago

Typical timeline:
- Week 1-2: Consultation, retain counsel, send notices
- Week 2-4: ACH debits stop
- Month 2-3: Active negotiation
- Month 3-5: Settlement reached and paid
- Month 5-6: UCC liens released

Stacking cases take 4-8 months. COJ cases add 2-3 months.

25
SC stressed_contractor Construction 1w ago

From first call to signed settlement: about 6 months for me. But the daily debits stopped within 2 weeks once my attorney got involved. That's the key — immediate relief even though full resolution takes time.

28
MM Midtown_Mike Auto Repair 1w ago

Has anyone actually used the companies listed on this page?

Looking at the companies ranked here. Has anyone in the US actually used them? I want real experiences, not just website reviews.

22
MS mca_survivor_US Settled $87k 1w ago

Good experience overall. Key things: (1) no large upfront fees, (2) they should know your state-specific laws, (3) realistic settlement range — anyone promising 20 cents on the dollar is lying.

15
MP Maria_P Boutique Owner 1w ago

I called two of the top ones. Both professional, no pressure, both offered free consultations with realistic timelines. Go with whoever you feel most comfortable with.

26
TD theUS_dental Healthcare 2w ago

MCA paid off but UCC lien still showing — blocking my SBA loan

I own a dental practice in the US. Paid off my MCA 2 years ago but the UCC lien was never removed. Now it's blocking an SBA loan for expansion. Called the MCA company 5 times — they keep saying they'll "process it." 3 months of runaround.

23
US US_small_biz_atty Verified 1w ago

Under New York's UCC Article 9, a secured party must file a UCC-3 termination within 20 days of receiving a written demand. Send a formal demand via certified mail referencing the specific UCC filing number. If they don't comply, they're liable for statutory damages plus any actual damages from the delayed loan.

13
NB nearby_biz_owner Business Owner 1w ago

Had the same issue. The certified letter worked within a week. Include a copy of your final payment confirmation.

25
PS pandemic_survivor_us Business Owner 1mo ago

Took MCA during COVID, business never fully recovered

Like many, I took an MCA during the pandemic when PPP wasn't enough. My events planning business in the US was devastated. Three years later business is at maybe 65% of pre-COVID levels. The MCA was supposed to be a bridge but became an anchor. Factor rate 1.52 on $50k. Paid back about $40k of $71k total but can't keep going. Options?

21
UD US_debt_relief_pro Verified 1mo ago

You still have options. The remaining ~$31k can potentially be settled for 40-50 cents (~$12-15k). Your good faith payments actually help your negotiating position. Also worth exploring whether pandemic relief protections apply — some MCAs from 2020-2021 have been challenged on economic duress grounds.

25
SF startup_founder_local 5d ago

Thinking about getting an MCA — is it always a bad idea?

Reading all these horror stories. I run a new cleaning service and need $25k for inventory. Banks won't lend because I've been in business 8 months. Is an MCA always predatory?

23
TH theUSEntrepreneur Business Owner 5d ago

MCAs aren't inherently evil but the cost is extreme. Try these first:
1. SBA microloans (up to $50k, even for newer businesses)
2. CDFI lenders (community development financial institutions)
3. Business credit cards (even at 24% APR, cheaper than most MCAs)
4. Revenue-based financing from transparent companies
5. Kiva loans (0% interest, crowdfunded)

If you MUST do an MCA, keep the factor rate under 1.3 and ensure there's a real reconciliation clause.

16
TH theUSCPA Verified CPA 5d ago

If you need the money for 30-60 days and have high margins (buying inventory you'll sell at 3x markup), an MCA CAN work. Run the numbers. But if margins are thin or timeline uncertain — stay away.

24
TS theUS_shop Fitness 1w ago

Considering Chapter 11 instead of settling — thoughts?

My restaurant in the US has $180k in MCA debt across 4 funders. Settlement quotes are 50-55 cents on the dollar — still $90-99k I don't have. Thinking Chapter 11 might be better. Anyone gone the bankruptcy route?

22
US US_small_biz_atty Verified 6d ago

Ch 11 is legitimate but understand the trade-offs:

Pros: automatic stay stops ALL collection, can restructure all debt
Cons: legal fees $15-25k+, takes 12-18 months, public record, court permission needed for many decisions

Look into Subchapter V small business reorganization — faster and cheaper than traditional Ch 11. Debt limit raised to $7.5 million.

17
SC stressed_contractor Construction 6d ago

I looked into Ch 11 before going settlement. The public record aspect was a dealbreaker — in my industry, competitors would use it against me on every bid. Settlement is private.

19
CA curious_about_complaints 3w ago

Should I file a BBB complaint against my MCA company?

Before getting a lawyer, should I try the BBB or New York Attorney General? Would that pressure them?

13
TH theUSBizOwner2025 Business Owner 3w ago

Filed with both. BBB did nothing — boilerplate response. The AG complaint was more useful — goes into their file. But neither replaced getting an actual attorney.

12
MS mca_survivor_US Settled $87k 3w ago

File the complaints AND get a lawyer. They're not mutually exclusive. The AG tracks MCA complaints but for YOUR situation, only a lawyer can negotiate.

18
TD theUS_dry_cleaner 3w ago

What’s the difference between debt settlement and debt consolidation for MCAs?

I keep seeing both terms. Are they the same? Which is better for MCA debt?

19
UD US_debt_relief_pro Verified 3w ago

Very different:\n\nSettlement: Stop paying, attorney negotiates reduced lump sum (typically 40-55 cents on the dollar for MCAs). Most common for MCA debt.\n\nConsolidation: New loan pays off all MCAs. Still owe full amount but at lower rate. Harder because most traditional lenders won't refinance MCA debt.\n\nFor most the US business owners, settlement is better because: (1) factor rates are so high consolidation rarely makes sense, (2) legal arguments against MCAs give strong leverage you lose if you consolidate.

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