New Jersey Section 2C:20-7.1 – Fencing

New Jersey’s fencing law, Section 2C:20-7.1, makes it illegal to receive or possess stolen property known as “fencing.” Fencing laws target people who help turn stolen goods into cash by buying them from thieves and reselling them. This article will explain the key parts of NJ’s fencing law so you understand what’s illegal, potential defenses, and penalties.

What is Fencing Under NJ Law?

Fencing is buying, receiving, possessing, or transferring property known to be stolen with the intent to benefit yourself or others. It covers property obtained illegally through theft, robbery, burglary, or fraud. Fencing laws target the market for stolen goods. Without buyers, thieves would struggle to profit from theft.

To be guilty of fencing in New Jersey, you must:

• Knowingly buy, receive, possess, or transfer stolen property, or
• Alter, destroy, or remove identifying marks on stolen property to prevent identification.

Simply unknowingly buying stolen goods isn’t enough. The state must prove you knew or “should have known” the property was stolen.

Examples of Fencing

Common examples of fencing include:

• Pawn shops buying obviously stolen jewelry, electronics, or tools.
• Scrapping stolen copper wire, metal, or catalytic converters.
• Selling stolen goods online through Craigslist, eBay, or Facebook.
• Alterting serial numbers on stolen electronics to resell them.

Businesses that deal in used goods like pawn shops, scrap yards, and secondhand stores are common targets for fencing investigations. But anyone can be charged with fencing for knowingly buying and reselling stolen property.

Penalties for Fencing in New Jersey

Fencing charges depend on the value of the stolen property:

• $500 or less – Disorderly persons offense
• $500 to $75,000 – 4th degree crime
• $75,000 to $500,000 – 3rd degree crime
• Over $500,000 – 2nd degree crime

Disorderly persons fencing carries up to 6 months in jail. 4th, 3rd, and 2nd degree fencing carry between 3-10 years in state prison and fines up to $150,000. Businesses convicted of fencing face loss of licenses.

Defenses to Fencing Charges

Common fencing defenses in New Jersey include:

No Knowledge Property Was Stolen: The state must prove you knew or should have known property was stolen. If you can show you reasonably believed goods were obtained legally, that’s a defense. However, buying goods clearly far below market value does not help this defense.

Acted Innocently or For a Legal Purpose: It’s a defense if you acted innocently without intent to benefit from stolen property. Or if you had a legal right to possess the property.

Didn’t Personally Receive or Possess the Property: You can’t be guilty of fencing in NJ if you didn’t personally possess the stolen goods. For example, if an employee at your business engaged in fencing without your knowledge.

Entrapment: You may have a defense if police coerced or induced you to obtain stolen property you otherwise wouldn’t have. This is difficult to prove.

Lack of Evidence: If the state has weak evidence you knew goods were stolen, you can fight the charges at trial. For example, if they rely solely on the testimony of an unreliable witness.