Minn. Stat. ' 609.528 provides misdemeanor, gross misdemeanor, five-year felony, and ten-year felony penalties for the sale, possession, receipt, or transfer of stolen or counterfeit checks.

Misdemeanor penalties apply if the offense involves a single direct victim AND the total combined loss to the direct victim and any indirect victims is $250 or less. Minn. Stat. ' 609.528, subd. 3(1).

Gross misdemeanor penalties apply if the offense involves a single direct victim AND the total combined loss to the direct victim and any indirect victims is more than $250 but not more than $500. Minn. Stat. ' 609.528, subd 3(2).

Five-year felony penalties apply if the offense involves two or three direct victims OR the total combined loss to the direct victim and any indirect victims is more than $500 but not more than $2,500. Minn. Stat. ' 609.528, subd 3(3).

Ten-year felony penalties apply if the offense involves four or more direct victims OR the total combined loss to the direct victim and any indirect victims is more than $2,500. Minn. Stat. ' 609.528, subd 3(4).

That=s nice, but... HOW DOES THIS STATUTE WORK?!

Fred Forger is stopped for a traffic violation and arrested on an outstanding warrant. During the search incident to the arrest, three books of blank checks on three separate accounts are found in Fred=s pocket. All three checkbooks are identified by the three victims as stolen property. Prior to August 1, 2000, what would you have charged? Misdemeanor Receiving Stolen Property?

Fred Forger can be charged with felony possession or sale of stolen or counterfeit checks because the offense involved two or three direct victims. The statute provides felony penalties for offenses involving multiple direct victims OR where the combined loss to the direct and indirect victims is more than $500, regardless of the value of the stolen property possessed by the defendant.

Great, but. . . WHAT DO I NEED TO LOOK FOR WHEN APPLYING THIS STATUTE?!

1. Know your loss. Unlike other criminal statutes, the offense level is not determined exclusively by the value obtained. Penalty thresholds are determined by loss, not just value! ALoss@ includes expenses incurred as a result of the violation. Contact with direct and indirect victims is essential to determine the actual loss suffered. Although not specifically identified by statute, direct and indirect victims will typically be account holders and financial institutions. When applying this new law, the loss should not be established just by looking at the face amount of the check.
2. Count your direct victims. Felony penalties apply if there are two or three direct victims, even if loss is less than the $500 monetary threshold. Ten-year felony provisions apply if the offense involves four or more direct victims, even if the loss is less than the $2,500 monetary threshold. If there is a single victim, the penalty will be a misdemeanor or gross misdemeanor unless the loss exceeds the $500 felony threshold.
3. Establish knowledge. Proof of sale, possession, receipt or transfer of a stolen or counterfeit check is not enough. It must be established that the act occurred while knowing or having reason to know the check was stolen or counterfeit. Knowledge may be proven by direct evidence (statements to law enforcement or admissions to others) or circumstantial evidence (concealment of true identity, fleeing the scene, possession of identification documents under a fictitious name, possession of other items of property stolen at the time of the original theft, possession of the stolen check occurs close in time to the original theft, etc.).