(2) knowledge or belief by defendant of its falsity;
Fraud is an interesting thing to prove because you need two states of mind- "knowledge" of falsity and (as I'll talk about later) "intent" to mislead. I have covered these states of mind before.
If a person doesn't know or think something is false, they haven't committed fraud. They may be dumb or misinformed, and they may even have been negligent, but their culpability does not reach the level of fraud.