Counterfeiting

Counterfeiting is a specific form of forgery. Typically, counterfeiting is the creation of bogus versions of money, bonds, securities or other valuable documents with the intent to defraud or deceive. It also covers consumer goods such as software, drugs, media (i.e., DVDs, CDs), and “knock off” designer merchandise. Forgery includes many such criminal hoaxes, whether through printing, engraving, or via use of the computer. In many cases, it is illegal simply to be in possession of forged items.

Forgery also includes the falsification of things from wills to signatures, checks to evidence. Forgery is generally considered a form of fraud — the intentional use of deceit or other dishonest means to deprive another person of money, property, or a legal right.

An important distinction is that the fraudsters, forgers, and counterfeiters must intend to deceive to be guilty of a crime. It is possible for someone to forge a signature, for example, mistakenly thinking he or she has the right to do so. If the intent to deceive is not there, it is not technically forgery.

The various forms of forgery carry various penalties, and they are hefty. Forging a signature on a US security can earn a prison sentence of up to ten years. Forging the security itself can get you twice that. Title 18 of the US Code, Chapter 25, covers the specific regulations regarding crimes from forging/counterfeiting military discharges (§498) to changing the VIN on your car (§512).

As mentioned, counterfeiting money and other government obligations is considered especially heinous. The US Code protects even the components of government securities and obligations in Section 474. It is a Class B felony, for example, to possess paper similar to the distinctive paper used by the Treasury to print money. And like securities fraud, counterfeiting money is considered so important an issue to federal authorities that — though most any federal offense CAN be tried in state court —counterfeiting is almost never handled in state court.

Another way that counterfeiting is unique is that jurisdiction for investigations involving the counterfeiting of United States obligations and securities lies with the US Secret Service. The Secret Service’s Financial Crimes Division also deals with the forgery of government bonds and checks, as well as other forms of bank fraud.

For other information on counterfeiting, click here.

Case Studies: Counterfeiting

Case Study 1: Counterfeit Money Scheme Exposed

A group of individuals operating across multiple states conspired to counterfeit and distribute large quantities of US currency.

They meticulously reproduced bills with high-quality printing techniques and used them in various transactions, including purchasing goods and services.

The Secret Service, responsible for investigating counterfeiting crimes, launched a thorough investigation, ultimately leading to the arrest and prosecution of the counterfeiters. The offenders faced significant prison sentences under federal law.

Case Study 2: Counterfeit Designer Merchandise Ring

An organized criminal group specialized in producing counterfeit designer merchandise, including clothing, accessories, and luxury goods.

They utilized sophisticated manufacturing techniques to replicate the appearance of authentic products and sold them through online platforms and illicit distribution networks.

The operation was discovered through an extensive joint effort by law enforcement agencies and brand protection organizations.

The counterfeiters faced severe legal consequences, including imprisonment and substantial fines, for intellectual property infringement and fraud.

Case Study 3: Counterfeit Pharmaceuticals Threaten Public Health

A criminal organization engaged in the production and distribution of counterfeit pharmaceutical drugs. They manufactured and packaged fake medicines, imitating reputable brands, and sold them through illicit channels, including online pharmacies.

The counterfeit drugs posed significant risks to public health, as they lacked proper quality control and often contained harmful substances.

Law enforcement agencies, working in collaboration with regulatory bodies and pharmaceutical companies, dismantled the operation and pursued legal action against the counterfeiters, aiming to protect public safety and ensure the integrity of the healthcare system.