diff --git a/src/cpp/ripple/Transactor.cpp b/src/cpp/ripple/Transactor.cpp
index be4366d7b7..6a7bf4a683 100644
--- a/src/cpp/ripple/Transactor.cpp
+++ b/src/cpp/ripple/Transactor.cpp
@@ -171,11 +171,11 @@ TER Transactor::preCheck()
 	{
 		if (mTxn.isKnownBad() || (!isSetBit(mParams, tapNO_CHECK_SIGN) && !mTxn.checkSign(mSigningPubKey)))
 		{
-			mTxn.setGood();
+			mTxn.setBad();
 			WriteLog (lsWARNING, Transactor) << "applyTransaction: Invalid transaction: bad signature";
 			return temINVALID;
 		}
-		mTxn.isKnownGood();
+		mTxn.setGood();
 	}
 
 	return tesSUCCESS;