Federal Laws on Counterfeiting Currency and Trafficking Fake Goods

Understanding Federal Counterfeiting Crimes

Counterfeiting money and trafficking in fake goods are serious federal crimes that can land you in prison for many years. But why are they illegal? What exactly do the laws say? And what defenses might you have if accused? Let’s break it down.

First, some background. The U.S. Secret Service—yeah, the guys who protect the president—are actually in charge of investigating financial crimes like counterfeiting. They take it real serious. Since old-timey paper money was easier to fake, they’ve been at it for a long time, going back to the Civil War.

These days, it’s rare to see fake paper bills. But now there’s lots of fake credit cards, checks, and other financial documents that scammers use to rip folks off. The internet made it easier than ever to buy and sell this stuff. So the Secret Service stays busy!

It’s Not Just About Cash Money

When you hear “counterfeiting,” you probably think of fake cash. But federal law bans making or using any kind of forged financial document. Your defense can’t be “it wasn’t money, just a check!” Nope, you’re still in trouble.

The main law is 18 U.S. Code § 471. It says that anyone who falsely makes, alters, forges, or counterfeits any kind of U.S. money, coins, banknotes, checks, bonds, or other securities can get up to 20 years in prison. That’s serious time!

There’s also a law against possessing fake financial documents: 18 U.S. Code § 472. Just having the stuff on you is illegal, even if you weren’t the one who made it. You can get up to 15 years for this.

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Legal Scenario: What Would You Do?

Scenario

You run a small electronics repair shop and a supplier offers you a bulk shipment of phone cases and chargers at unusually low prices. After selling them for two months, a customer points out that the brand logos look slightly off, and you realize the products may be counterfeit goods.

Can I face federal charges for selling counterfeit branded merchandise even though I didn't manufacture the fakes myself?

Attorney's Answer

Yes, under 18 U.S.C. § 2320, trafficking in counterfeit goods carries penalties of up to 10 years in prison for a first offense and up to 20 years for a repeat offense, regardless of whether you manufactured the items. Federal prosecutors only need to show that you intentionally trafficked in goods bearing a counterfeit mark, though a viable defense may involve demonstrating you had no knowledge the products were counterfeit. An experienced federal defense attorney could challenge the government's evidence of your intent and negotiate to reduce or dismiss charges, particularly if you cooperated once you discovered the goods were fake.

This is general information only. Contact us for advice specific to your situation.

Bottom line: Don’t make fake money or documents. Don’t use them. And for goodness sake, don’t carry them around. You’re asking for a one-way ticket to the big house.

Trafficking in Fake Goods