26 Feb 25
Having fake or counterfeit money violates both state and federal law. Possession with intent to defraud is a crime, which means you could be criminally liable whether you knowingly carry counterfeit money or receive it in a deal without knowledge. Law enforcement agencies actively pursue counterfeiters to safeguard the nation’s currency. Failing to handle the situation properly could get you into legal trouble, even if you accidentally have counterfeit money. When given a suspicious bill, check for security features like the watermark or color-shifting ink and report the case to the authorities should you identify counterfeit currency. Not knowing that the currency is fake often does not serve as a defense. Therefore, staying informed and acting promptly will protect you from unnecessary legal exposure.
What Actions Would Lead to a Conviction for Possessing Counterfeit Money?
To use counterfeit money means purposely using fake money to deceive someone. The key element is the intent to defraud. The state will secure a conviction if prosecutors prove the following elements beyond a reasonable doubt:
- You had fake money in your possession
- You were aware that the money was counterfeit at the time of use or attempted use
- You tried to purchase goods or services using counterfeit money as if it were real
- You intended to mislead or deceive someone by trying to pass off the counterfeit money as genuine
Proving these elements requires prosecutors to show that you acted deliberately, knowing that the money was fake and intent on getting something of value for nothing from another. Without evidence of intent or knowledge, your conviction will be difficult.
Let us examine each element in detail.
You Had The Fake Money in Your Possession
Possessing fake money is critical in presuming to use or attempting to use counterfeit money. Counterfeit money is fake money that looks and feels like genuine currency notes in appearance and texture. People often try to replicate the official design elements like embossing and watermarks found on authentic currency, but counterfeit notes usually fall short. Counterfeit money usually has physical differences, like paper texture, inconsistent colors, or repeated serial numbers.
Prosecutors must present evidence to prove possession. Some of the key evidence could include:
- Counterfeit notes — Notes that have been seized are key evidence prosecutors can introduce in court. Law enforcement officers document these items once they are seized. Often, a proper chain of custody is maintained from seizure to court.
- Surveillance footage — This could show you possessing or using counterfeit money.
- Witness testimony — In some cases, prosecutors could introduce witnesses to testify to your involvement. In other cases, the prosecution could rely on forensic analysis. Experts have analyzed the seized bills, and they could show that they are counterfeit since basic security features are missing or altered.
Moreover, ownership is critical in this context. If you are found in possession of counterfeit money on your person, in your car, or at your home, especially if you attempted to use it, for example, if you tried to pay for a coffee with the fake money, your actions will bolster the prosecution’s argument.
Combined, these elements will provide the much-needed basis for proving the possession charge beyond a reasonable doubt.
You Were Aware That Money Was Counterfeit
The state must prove that you knew you were using or trying to use counterfeit money to show that you are criminally liable. Your awareness regarding the money’s counterfeit nature helps differentiate between possession and intentional fraud. When prosecutors demonstrate someone’s awareness, they analyze various aspects of your behavior and the circumstances surrounding the case.
How you act during a transaction reveals your awareness. If you use fake money in areas where people do not scrutinize as much, for example, in busy shops or for small purchases, prosecutors will argue that you knew the bills were fake. If you had equipment for counterfeiting or other items related to counterfeiting, that circumstantial evidence supports the claim that you knew the money was counterfeit. Furthermore, a history or proof of prior dealings with counterfeit money will also bolster the prosecution’s case against you.
Moreover, witness testimonies may establish your awareness. If the witness heard you say the money was fake or you planned to pass it off as genuine, their testimony becomes significant. Besides, whether you attempted to flee, discard the money, or suspiciously deny possession, your reaction can all show guilty knowledge.
Using the Fake Currency and Intending to Defraud
In possession of counterfeit money cases, prosecutors must prove two critical elements under intent:
- The act of presenting a currency note as genuine during a transaction
- Your intent to deceive
Using fake currency to buy something means you do not just have counterfeit money but actively engage in fraudulent conduct. Using this counterfeit money directly links you to the crime. You intended to use this counterfeit money for personal gains.
It is equally important to show your intent to deceive, the mens rea, or guilty mind. Prosecutors must show you knowingly attempted to pass the money as legitimate. You intended to mislead the recipient and benefit under false pretense. Your intent to defraud will show that your actions were not accidental or out of ignorance but rather a purposeful attempt to deceive.
Under both federal and state law, intent is key in dealing with the possession of counterfeit money. It is not illegal to have counterfeit money. However, having counterfeit money with the intention to defraud is unlawful. If you have counterfeit money on you but do not know it is fake or have no intention of using it, you are not violating any law. However, proving a lack of intent may be complicated.
When police find someone with counterfeits, it makes them naturally suspicious. They want to know whether this possession is linked to fraudulent activities. The officers may ask what your intentions are regarding the counterfeit money. Since money is used for transactions, it is natural for the officers to assume that you want it for a transaction. They would thus infer an intent to defraud, so you could be charged with intent to commit fraud unless you give them a valid reason for having the counterfeit money, for example, receiving it unknowingly and thus not having the chance to report it.
The situation in which the fake money was found is important in giving rise to their suspicion. If you are found with a counterfeiting apparatus or in a situation where you try to use it, it would significantly heighten the suspicion of criminal intent.
In these cases, the law enforcement officers will usually interrogate you about whether you knew the cash was counterfeit and your aim. They might initiate an investigation to uncover evidence of fraud and would examine your statement or your actions in the past. If you had no idea the money was fake, you are often advised to report this to the authorities to avoid any implication of fraudulent intent.
Federal Laws on Counterfeiting and Related Offenses
The U.S. government has passed strict laws against counterfeiting that protect foreign and domestic financial systems. The regulations address the production and circulation of counterfeit currency and the possession of instruments that can be used to make counterfeit currency and financial instruments.
The key federal laws regarding counterfeiting are:
Forging, counterfeiting, or altering U.S. obligations or securities with intent to defraud (18 U.S.C. § 471)
You will go to jail if you create or alter any American financial instrument intending to deceive another. Counterfeited items under this category include:
- Currency paper — This refers to paper money that consists of different denominations, for example, $1, $5, $10, $20, $50, and $100
- Government paper — This category includes treasury bills (T-bills), treasury bonds, and treasury notes
- Certificates of Indebtedness — These include documents representing U.S. government debt obligations
Passing, Uttering, or Publishing Counterfeit Currency
18 U.S.C. § 472 makes it a crime to use fake money in transactions, with a focus on paper currency.
While checks and money orders can be counterfeited, different statutes address them more specifically unless they imitate U.S. currency or securities intending to defraud.
Having Tools or Making Tools For Counterfeiting Money
It is illegal under 18 U.S.C. § 474 to have or make tools to counterfeit. These tools include:
- Printing plates — Templates used for printing fake money physically or digitally
- High-quality printers — These devices are capable of producing counterfeit money
- Digital counterfeiting tools — These are equipment or software used to make digital copies of U.S. currency, including scanners or editing software
Making Imitative Obligations or Securities of the United States
18 U.S.C. § 475 prohibits the creation of items that may be mistaken for U.S. currency or securities to avoid deception. You will be criminally liable under this statute if you make:
- Promotional items — These are fake bills or bonds you use for advertising, which may confuse consumers.
- Replica currency for films or collectibles — This currency is made to look like real currency and has non-currency uses. It may be counterfeit if it resembles the currency so closely that it is likely to mislead someone.
Counterfeiting Foreign Securities
18 U.S.C. § 481 applies to the counterfeiting of foreign financial instruments in the U.S. These include:
- Foreign banknotes — Currency from other nations, like the euro, pound, and yen.
- Foreign bonds and securities — These are financial instruments issued by foreign governments and corporations.
Creating Unauthorized Coin-Like Tokens
Under 18 U.S.C. § 489, it is illegal to counterfeit U.S. items without the Treasury’s permission. These include:
- Coin-like tokens — Tokens that resemble U.S. coins and are made of metal.
- Medals or souvenirs — These are coin-shaped items not made for transaction purposes but capable of confusing transactions.
Penalties For Possessing Counterfeit Money
Possession of counterfeit money is a white-collar crime. The penalties for this crime vary depending on the specifics of the offense. Using counterfeit funds to try and deceive falls under forgery, and this crime is “wobbler.” Prosecutors can pursue the offense as either a misdemeanor or felony, depending on the value of the counterfeit money, the extent of the fraud, and your criminal history.
- If you are convicted of a misdemeanor, you could be sentenced to a maximum of one year in county jail.
- If you are convicted of a felony, you could face a sentence of up to three years in state prison.
Counterfeiting, making or manufacturing counterfeit money, is often prosecuted under federal law, especially under 18 U.S.C. § 471 and § 472.
A conviction for counterfeiting may result in up to 20 years in federal prison.
Moreover, fines can reach $250,000, showing the seriousness with which the federal government treats threats to the currency’s legitimacy.
If you are convicted for using or counterfeiting money, you could face other sanctions beyond the punishment mentioned, which include:
- You might be sentenced to probation with strict terms after serving time or instead of jail time. Probation might involve frequent meetings with a probation officer, community service, and limits on travel or association.
- Criminal fines add another financial penalty, which is charged based on the crime and depends on the amount of gain from the fraud.
- Often, the courts will order restitution, which requires the offender to repay the victim or the state for any sustained financial losses, compensating for the economic harm.
- Professional consequences, particularly the probability of losing your licenses or certificates, especially if you were involved in the crime. This could prevent you from future work or drastically limit your ability to work in a preferred field, like law, medicine, or finance.
- If you are convicted, you will have a permanent criminal record. This can make it challenging to find a job, secure housing, and vote in some places, not to mention the social stigma associated with being convicted.
Defenses You Can Use to Fight Possession of Counterfeit Money Charges
If you are facing charges of possessing counterfeit currency, there are various defenses that you can raise to challenge the prosecution’s case. Some of the common defenses attorneys use include the following:
Lack of Knowledge
You can argue that you were unaware that the money was counterfeit. For example, if you received the counterfeit money in a normal transaction, you received the note as a change from a legitimate business or were gifted. Argumentatively, it is reasonable to say that you had no reason to suspect it was fake.
Remember, prosecutors must prove you realized the money was fake, so showing you were unaware can create reasonable doubt. The argument is particularly strong if the counterfeit money looked so real that a reasonable person could not tell they were not real currency.
Lack of Intent to Defraud
Another critical element that prosecutors must establish is your intent to defraud. If you had no intention to deceive anyone, you can assert that you possessed or used the counterfeit money for a legitimate purpose. For example, you could have used the counterfeit money to:
- Educate others
- Teach someone a lesson about fake money
- Be used as movie props
If you can demonstrate that you did not mean to deceive anyone, the prosecution may fail to prove the requisite criminal intent to secure your conviction.
Mistake of Fact
When you assert a mistake of fact defense, you argue that you were unaware the currency was fake because you thought it was real. If you received the fake currency in good faith from a trusted source or from a transaction where you had no reason to suspect anything was amiss, this defense will work in your favor.
You must show that, in those circumstances, it was reasonable for you to believe that the money was genuine, that is, whether you were wrong about the money not being honest. The defense may benefit from pointing to the nature of the fake notes and their resemblance to genuine notes.
Chain of Custody Issues
When law enforcement agencies seize evidence, there should be a proper chain of custody, which indicates that the evidence was handled and documented appropriately. If the chain of custody is broken or the counterfeit currency is mishandled, it may affect its authenticity or connection to you. Evidence can be tampered with or lost along the line.
For example, if the police do not correctly oversee the counterfeit bills from the seizure, your attorney could argue that the counterfeit evidence was tampered with, lost, or switched.
Find a Criminal Defense Attorney Near Me
When you are accused of having counterfeit money, you risk facing severe legal consequences, that may include felony charges, jail time, hefty fines, and a permanent criminal record. This conviction will impact various aspects of your life, including your work and personal freedoms. However, if you have an experienced criminal defense lawyer by your side, you can increase your chances of securing an outcome in your favor.
Contact Leah Legal if you have been accused of dealing with counterfeit currency in Van Nuys. We have expertise in handling counterfeiting cases and will work to protect your rights and seek the best possible resolution for you. Call 818-484-1100 for a free, no-obligation consultation.
