Material Misrepresentation- not quite Lying

(1) material misrepresentation of a presently existing or past fact;

Let's break this down.

Material means that the misstatement of fact cannot be a small thing. It must be a pretty big fact and probably has to be one of (if not the) main reason why the fraud ended up taking place.

Misrepresentation is a fancy word for lying, but it basically means that someone has to say that something is one way, even though it isn't.

Presently existing or past. The fact in question cannot be speculative, or occur in the future. It must be true now or true in the past.

Fact. The thing misrepresented cannot be opinion or falsity. It must be true.