Criminal Defense Lawyers

New Jersey Section 2C:21-2.4 – Possession of certain fraudulent receipts, universal product code (UPC) labels and checks

A new law in New Jersey aims to cut down on fraud by making it illegal to possess fake receipts and universal product codes (UPCs). Section 2C:21-2.4 of the New Jersey code makes it a crime to have fraudulent receipts, UPCs, or checks.

What the Law Says

The law states that it’s against the law to possess, sell, or distribute fraudulent receipts, UPC labels, or checks. This includes having equipment that can make them. The penalties get more severe depending on how many fake items someone has.For less than 100 fake receipts, labels, or checks, it’s a disorderly persons offense. That means up to 6 months in jail and a fine up to $1,000. For 100-999 fake items, it’s a 4th degree crime with up to 18 months in prison and a $10,000 fine. For 1,000 or more fake receipts, UPCs or checks, it’s a 3rd degree crime punishable by 3-5 years in prison and a fine up to $15,000.

Why New Jersey Passed This Law

The state legislature felt this law was needed to crack down on certain types of fraud. Fake receipts can be used to scam rebates or returns to stores. Fraudsters might buy an item, swap the UPC for a more expensive product, and then try to return it to get more money.Counterfeit checks can also be created using graphics software and then cashed or used to buy things. Lawmakers wanted to give police and prosecutors more tools to go after this activity.

Who Might Be Targeted

The law could be used against people making fake receipts and labels to commit retail fraud. It also gives police probable cause to investigate if they find equipment to create fake barcodes, receipts, or checks.However, lawmakers said the focus is on larger operations producing mass quantities of fraudulent items. They don’t want to punish kids making fake IDs or prank UPC labels on a small scale.The big targets are people cranking out hundreds or thousands of fake receipts, labels, and checks for distribution. These schemes often involve multiple people and across state lines. So having enhanced penalties based on volume covers that type of activity.

Potential Issues

Defense lawyers have raised issues about how this law might be applied:

• Overcriminalization: Some attorneys think this activity should be handled through civil lawsuits rather than making it a crime. They argue it could lead to unfair prosecution, especially against poorer defendants.
• Free speech: The First Amendment protects free speech, so some lawyers question if criminalizing the possession of fake receipts or labels violates those rights. However, laws against counterfeiting money have been upheld on similar grounds.
• Mens rea: For a criminal conviction, prosecutors must prove criminal intent or knowledge of wrongdoing. If someone unknowingly possesses fake receipts, for example, it raises issues about fairness in enforcement.
• Disproportionate impact: As with other criminal laws, there is concern this statute could be used to target particular groups more than others. Critics say resources would be better spent on prevention and addressing root causes.

Bottom Line

The bottom line is New Jersey now has stronger laws against possessing fake receipts, UPC codes, and checks. Supporters hope it will reduce fraud and abuse, while opponents worry about overreach. As with any new criminal statute, the details of enforcement will determine if the law is effective or needs refining. The courts may also weigh in if legal challenges arise over how the law is applied in practice.

How Fake Receipts and UPC Labels Can Be Used to Commit Fraud

The new New Jersey law covers fake receipts and UPC labels because they are common tools used to commit retail fraud and scams. Here’s an overview of how criminals use them and what consumers should watch out for.

Fake Receipts

Making convincing fake receipts has become easier with modern graphics software and high-quality printers. Scammers use them in a few common schemes:

• Return fraud – Buying an item and returning a different product with a fake receipt to get cash back.
• Rebate fraud – Submitting fake receipts to get rebates for products that were never purchased.
• Warranty fraud – Using a fake receipt to try to claim warranty coverage on an item.
• Tax evasion – Creating fake receipts to make it look like business expenses for tax deductions.

Fake UPC Codes

UPC codes are the barcodes placed on retail products that allow them to be scanned at checkout. Criminals make counterfeit UPC labels for a couple types of fraud:

• Swapping labels – Putting a fake UPC matching a more expensive product on a cheaper item.
• Creating fake discount labels – Making labels with lower prices to get items cheaper.
• Selling counterfeit goods – Using fake UPC codes to pass off knockoff items as name brand.

How Consumers Get Scammed

While the criminals make the fake items, consumers usually end up the victims of the fraud in a few ways:

• Higher prices – Retailers lose money to fraud and pass those costs on with higher prices.
• Reduced services – Stores cut things like generous return policies if they are abused by criminals.
• Unsafe products – Counterfeit items with fake UPC labels often skimp on safety standards.
• Identity theft – Stolen receipts can have personal information used to commit identity fraud.

The bottom line is that fake receipts and UPC labels undermine consumer confidence and trust in stores. They make customers more cynical and make retailers more guarded against shoppers.

Legal Defenses in Fake Receipt and UPC Label Cases

Since New Jersey’s law on fake receipts and labels is new, there are some untested legal defenses that may come into play as cases arise. Possible defenses lawyers may use include:

Free Speech Arguments

The First Amendment protects free speech, so defendants could argue the law violates their rights. However, courts have upheld laws against counterfeiting money, licenses, trademarks and other items. Prosecutors can argue fake receipts and UPCs are used to commit fraud, not express ideas.

Unintentional Possession

If someone unknowingly possesses fake receipts – for example, they are mixed in with real ones – the law requires prosecutors to prove criminal intent. This argument may apply in cases of accidental or unknowing possession.

Tools of the Trade

Some people may possess equipment to make fake labels or receipts as part of their lawful business. For example, a consultant who advises retailers may have devices to demonstrate vulnerabilities. They could argue the items are “tools of the trade” for research, not criminal purposes.

Entrapment

If the police or informants convinced or coerced the defendant into procuring fake receipts and labels, entrapment may be a valid defense. However, it does not apply if the defendant was already engaged in criminal activity before police involvement.

Violation of Rights

There are cases where evidence is thrown out because it was obtained illegally in violation of a defendant’s rights. For example, if receipts were seized without a warrant or probable cause, any evidence found could be suppressed.

Conclusion

New Jersey’s new law makes it a crime to possess fake receipts, UPC labels, and checks, with penalties based on the quantities involved. Supporters hope it will cut down on different types of fraud that relies on counterfeit documents. But critics argue it could criminalize behavior that should be handled through civil law.As the courts begin to interpret the statute, some key issues will be how prosecutors demonstrate criminal intent, if constitutional rights are violated, and whether the law draws a fair line between innocent versus criminal acts. With all new legislation, there are bound to be legal challenges that ultimately provide clarity on how laws are upheld.The takeaway for consumers is to be wary of any solicitations involving fake receipts, UPCs, or checks. If an offer seems too good to be true, it probably is. Scrutinize receipts and be alert to any signs of tampering. And know your rights if questioned over questionable receipts. As with most financial crimes, vigilance is the best protection.