New Jersey Federal Counterfeiting Lawyer: Currency & Counterfeit Goods

New Jersey sits at the center of one of the busiest trade corridors in the world. The Port of New York and New Jersey, the largest container port on the East Coast, along with Newark Liberty International Airport and the warehouses and distribution centers along the New Jersey Turnpike, make the state a primary entry and distribution point for imported goods, including counterfeit merchandise. At the same time, the federal government continues to prosecute people who print, pass or possess counterfeit U.S. currency. Whether your case involves fake $100 bills or containers of counterfeit sneakers, electronics or medications, a New Jersey federal counterfeiting lawyer can evaluate the evidence of knowledge and intent that the government must prove.

Keith Oliver Criminal Law defends individuals and business owners in federal counterfeiting cases throughout New Jersey, from street-level passing cases to import and distribution investigations.

Counterfeit Currency Offenses

Federal law protects the integrity of U.S. currency through several statutes:

• 18 U.S.C. § 471 makes it a crime to falsely make, forge, counterfeit or alter any obligation or security of the United States with intent to defraud.
• 18 U.S.C. § 472 punishes passing, uttering, publishing, selling, possessing, keeping or concealing counterfeit obligations with intent to defraud, or attempting to do so.
• 18 U.S.C. § 473 criminalizes buying, selling, exchanging, transferring, receiving or delivering counterfeit obligations with the intent that they be passed as true.
• 18 U.S.C. § 474 covers possessing plates, digital images or other means of producing counterfeit obligations.

Each of these offenses carries up to 20 years in federal prison. The Secret Service investigates these cases, often after a bank, casino or retailer detects a counterfeit note and reports it. Today, most counterfeit currency is produced digitally with inkjet or laser printers, sometimes on bleached genuine notes, and “prop money” ordered online is increasingly passed as real currency. Prop money marked “for motion picture use only” can still support a federal charge if someone attempts to spend it with intent to defraud.

Sentencing in Currency Cases

Counterfeit currency offenses are sentenced under U.S.S.G. § 2B5.1. The base offense level is 9, and levels are added according to the face value of the counterfeit items using the fraud loss table. Enhancements apply for manufacturing counterfeit items or possessing devices or materials for doing so (with a minimum offense level of 15), for possessing a dangerous weapon in connection with the offense, and for offenses committed outside the United States. Favorable outcomes, including non-custodial sentences in some cases, are often achievable where the notes were of poor quality, the amount was small, and the defendant had no role in production.

Trafficking in Counterfeit Goods – 18 U.S.C. § 2320

Section 2320 makes it a federal crime to intentionally traffic in goods or services while knowingly using a counterfeit mark on or in connection with them. A “counterfeit mark” is a spurious mark that is identical with or substantially indistinguishable from a trademark registered on the principal register of the U.S. Patent and Trademark Office and in use, applied to the same type of goods, and likely to cause confusion, mistake or deception. The statute also covers trafficking in labels, patches, stickers, wrappers and packaging bearing counterfeit marks, and specifically addresses counterfeit military goods and counterfeit drugs.

Penalties for a first offense by an individual are up to 10 years in prison and a $2 million fine; repeat offenses carry up to 20 years and a $5 million fine. Trafficking in counterfeit drugs or counterfeit military goods carries up to 20 years and a $5 million fine for a first offense. If the offense knowingly or recklessly causes serious bodily injury, the maximum rises to 20 years, and if it causes death, the maximum is life.

Common Counterfeit Goods Cases in New Jersey

• Designer handbags, clothing, jewelry and watches imported through the port and sold at flea markets, kiosks and online storefronts;
• Counterfeit sneakers and sports apparel sold through social media and resale apps;
• Counterfeit electronics, phone accessories, chargers and batteries, which raise safety concerns;
• Counterfeit cosmetics, personal care products and supplements;
• Counterfeit prescription drugs, including pills pressed to look like legitimate medications, which are often charged together with drug distribution offenses;
• Counterfeit auto parts, airbags and industrial components.

Sentencing in Counterfeit Goods Cases

Under U.S.S.G. § 2B5.3, the base offense level is 8, and the offense level increases with the “infringement amount.” That amount is usually calculated using the retail price of the infringed (genuine) item if the counterfeit appeared to a reasonably informed purchaser to be the genuine article, or the retail price of the counterfeit item otherwise. This distinction matters enormously: valuing a shipment of obviously fake handbags at the price of the genuine luxury brand can multiply the guideline range. Defense counsel often retains experts to show that the counterfeits were of obviously inferior quality and were sold at prices no purchaser would associate with the genuine product. Enhancements apply for manufacturing, importing or uploading infringing items, for conscious or reckless risk of death or serious bodily injury, and for counterfeit military goods or drugs.

Copyright Piracy and Counterfeit Labels

Related federal statutes punish willful copyright infringement for commercial advantage or private financial gain (17 U.S.C. § 506 and 18 U.S.C. § 2319), trafficking in counterfeit labels, documentation or packaging for software, films and music (18 U.S.C. § 2318), and trafficking in illicit streaming devices and services. These cases often involve online piracy operations, unauthorized IPTV services and sellers of counterfeit software licenses.

Investigations and Seizures

Counterfeit goods investigations typically involve Customs and Border Protection seizures at the port or at international mail and express consignment facilities, followed by Homeland Security Investigations inquiries into the importer of record, the consignee and the distribution network. Trademark holders frequently work closely with law enforcement, conducting test buys, providing authentication of seized goods and supplying sales data. Agents may execute search warrants at warehouses, storefronts and homes, seizing inventory, business records and phones.

Currency cases often begin with a single counterfeit note detected at a store or bank. Surveillance video, payment card records from the same transaction and witness descriptions can lead to an arrest, after which agents search vehicles and residences for additional notes, printers, paper and computers.

Defenses to Federal Counterfeiting Charges

• Lack of knowledge. The government must prove the defendant knew the currency was counterfeit or knew the marks were counterfeit. Retailers and distributors who bought goods from apparently legitimate suppliers may lack the required knowledge.
• No intent to defraud. For currency offenses, possession without intent to pass the notes as genuine is not a violation of § 472.
• Mark not registered or not identical. Section 2320 applies only to marks that are registered and in use for the same type of goods, and that are identical or substantially indistinguishable. Lookalike or “inspired by” products may not qualify.
• Overstated infringement amount or face value. Correctly valuing the goods can significantly reduce sentencing exposure.
• Suppression issues. Searches of vehicles, packages and residences must comply with the Fourth Amendment. Border searches have broader authority, but domestic follow-up searches do not.
• Mere presence. Employees, drivers and family members present at a location where counterfeit goods are stored may have no knowledge or role in the trafficking.

Civil and Business Consequences

Beyond criminal penalties, defendants in counterfeit goods cases may face civil lawsuits by trademark owners seeking statutory damages of up to $2 million per counterfeit mark per type of goods for willful counterfeiting under the Lanham Act, along with seizure and destruction of inventory. Importers may face CBP penalties and loss of import privileges. Forfeiture of proceeds and property used to commit the offense is standard in criminal cases. Addressing all of these exposures together can produce a more favorable overall result.

Related pages: federal conspiracy, money laundering, immigration and smuggling crimes and federal drug charges.

Counterfeit Pills: When Counterfeiting Becomes a Drug Case

One of the most dangerous trends in counterfeiting involves pills pressed to look like legitimate prescription medications, such as oxycodone, Xanax or Adderall, but that actually contain fentanyl, methamphetamine or other substances. These cases are rarely charged as simple trademark offenses. Instead, prosecutors typically charge distribution of a controlled substance under 21 U.S.C. § 841, which can carry mandatory minimum sentences based on the quantity of fentanyl involved, and may add counterfeit drug charges under § 2320 and misbranding charges under the Food, Drug and Cosmetic Act. If a death or serious bodily injury results from use of the pills, the “death results” enhancement in § 841 carries a mandatory minimum of 20 years. Possessing pill presses and dies can be separately charged as well. Because the exposure is so severe, these cases demand immediate attention to issues such as lab testing, purity and weight, the chain of custody and causation in any overdose case. Our federal drug charges page explains how drug quantities drive sentencing.

If CBP Seizes Your Shipment

Importers and online sellers often first learn of a problem when they receive a CBP notice of seizure for goods suspected of bearing counterfeit marks. That notice gives the importer options, including filing a petition for relief, abandoning the goods or requesting judicial forfeiture proceedings. How you respond matters. Statements in a petition can become evidence in a later criminal case, and a pattern of repeated seizures can be used to prove knowledge. Before responding to a seizure notice, a demand letter from a brand owner, or a request from HSI agents for an interview, speak with a federal defense lawyer who can evaluate both the administrative and criminal risks and help you avoid making a civil problem into a criminal one.

Businesses that import or resell branded goods can reduce risk by keeping records of where products were purchased, verifying supplier authorization, retaining invoices and authentication reports, and responding promptly and carefully to any brand-owner complaint. Those same records often become the most persuasive evidence of good faith if an investigation begins. If you discover that you may have sold counterfeit products unknowingly, stop the sales, preserve your records and get legal advice before contacting the brand owner or the government.

Related Federal Defense Guides

• Federal credit card and access device fraud
• Federal investigations, target letters and grand jury subpoenas
• How the federal sentencing guidelines work

Frequently Asked Questions

Is it a crime to unknowingly pass a fake bill?

No. Passing counterfeit currency under 18 U.S.C. § 472 requires intent to defraud, which means you knew the bill was counterfeit. If you receive a bill you suspect is fake, do not try to spend it; turn it over to your bank or local police.

Is buying a counterfeit designer bag illegal?

Buying a single item for personal use is generally not prosecuted federally. Section 2320 targets those who traffic, meaning transport, transfer or otherwise dispose of goods for commercial advantage or private financial gain, using a counterfeit mark.

Who investigates counterfeit currency?

The U.S. Secret Service, which was originally created in 1865 to combat counterfeiting, investigates currency cases. Counterfeit goods cases are usually investigated by Homeland Security Investigations, Customs and Border Protection and the FBI.

Can I be charged federally for selling counterfeit goods online?

Yes. Online marketplace and social media sales of counterfeit merchandise, sneakers, electronics, cosmetics and pharmaceuticals are frequently investigated, and payment and shipping records make these cases easy to document.

What is the difference between counterfeiting and forgery?

Counterfeiting usually refers to making imitation currency or branded goods, while forgery involves falsely making or altering a document such as a check or signature. Both can be federal crimes depending on what is copied.

Talk to a New Jersey Federal Defense Lawyer Today

Federal cases are won or lost early, often before an indictment is ever filed. If an agent has contacted you, a search warrant has been executed, or you have received a target letter or grand jury subpoena, call Keith Oliver Criminal Law at (732) 858-6959 or contact us online for a confidential consultation. We defend clients throughout New Jersey in the U.S. District Court in Newark, Trenton and Camden, with offices in Monmouth, Mercer and Somerset Counties and Jersey City. Learn more about our federal criminal defense practice and attorney Keith G. Oliver.