What to expect if you are charged with a Michigan Retail Fraud.

By Attorney James Czarnecki|Czarnecki & Taylor PLLC|NOV 5, 2022

If a store catches someone shoplifting, the prosecutor will charge them with retail fraud. A retail fraud conviction can have drastic consequences on a person’s career because employers are hesitant to hire someone with a conviction for theft and dishonesty.  While the crime may not seem serious, the consequences are far-reaching.

What is a retail fraud crime?

A Michigan retail fraud crime is a crime that involves theft of goods from a retail store or other business. This crime is typically considered a misdemeanor offense in Michigan. However, there are many factors that can influence the severity of the charge (misdemeanor or felony) associated with a Michigan retail fraud charge, including the value of the goods stolen and any previous criminal history of the defendant.

A person can be charged with Michigan Retail fraud when leaving the store without paying for the merchandise. But a variety of actions can also result in a retail fraud charge as well. Leaving the store without paying for items is not the only way to get charged. The following will also result in a retail fraud charge:

• Taking property from a store without the intent to pay for it (shoplifting)
• Concealing property while in the store intending to steal the items
• Changing price tags
• False returns or exchanges
• Putting items within another item to conceal it
• Purposely not scanning an item at the self-checkout
• Working with others as a team to purposely distract store employees

Retail Fraud can be charged as either a misdemeanor or felony.

In a Michigan retail fraud case, whether a person is charged with a felony or misdemeanor depends upon the monetary value of the property stolen and the history of retail fraud convictions.

First Degree Retail Fraud (Felony): A person who, while a store is open to the public, alters, transfers, removes and replaces, conceals, or otherwise misrepresents the price at which property is offered for sale, with the intent not to pay for the property or to pay less than the price at which the property is offered for sale if the resulting difference in price is $1,000.00 or more.

Penalty: Up to maximum 5 years in prison and/or fine up to $10,000 or 3 times the value of the difference in price, property stolen, or money or property obtained or attempted to be obtained, whichever is greater, or both imprisonment and a fine. MCL 750.356c

Second Degree Retail Fraud (1 year misdemeanor): A person who, while a store is open to the public, alters, transfers, removes and replaces, conceals, or otherwise misrepresents the price at which property is offered for sale with the intent not to pay for the property or to pay less than the price at which the property is offered for sale if the resulting difference in price is $200.00 or more but less than $1,000.00.

Penalty: Up to but not more than 1 year in jail or a fine of not more than $2,000.00 or 3 times the value of the difference in price, property stolen, or money or property obtained or attempted to be obtained, whichever is greater, or both imprisonment and a fine.

Retail Fraud Third-Degree (93 day misdemeanor): A person who, while a store is open to the public, alters, transfers, removes and replaces, conceals, or otherwise misrepresents the price at which property is offered for sale, with the intent not to pay for the property or to pay less than the price at which the property is offered for sale, if the resulting difference in price is less than $200.00.

Penalties: Up to but not more than 93 days in jail or a fine of not more than $500.00 or 3 times the value of the difference in price, property stolen, or money or property obtained or attempted to be obtained, whichever is greater, or both imprisonment and a fine.

What penalties to expect.

Third-degree Retail fraud cases result in the following based on your attorney’s negotiation with the prosecutor:

• a dismissal of the charge if probation is successfully completed under MCL 771.1 (delayed sentence) – this keeps the offense off of a person’s criminal history
• repayment of restitution if the items have not been recovered
• a term of probation
• chance of jail time is low but not zero
• theft awareness class
• community service
• fines and costs

Second-Degree Retail Fraud: These cases are more serious since the property stolen has increased in value. However, while the severity of the offense has increased, these cases can often be negotiated during the plea process. In our experience, the following occurs:

• upon repayment of restitution (if applicable), the prosecutor may reduce the charge to a 93 day misdemeanor
• the conviction may be withheld from a person’s criminal history (if HYTA or 771 applies)
• term of probation
• jail time is more likely
• possibility of keeping the crime off of a person’s record

First-Degree Retail Fraud: The most serious of retail fraud cases because of the monetary value of the items stolen or the individual has become a habitual retail fraud offender. These cases are more difficult to negotiate because of their severity. Again, however, depending upon the circumstances of the case, the following may occur:

• reduction of the charge from felony to misdemeanor upon repayment of restitution, if applicable
• term of probation
• jail or prison can occur
• For those under the age of 24, a chance to receive HYTA; this keeps the offense invisible to criminal history background checks
• after negotiation, the possibility of keeping the offense off of a person’s criminal history
• no jail but strict terms of probation

Why do people commit shoplifting crimes?

Not all retail fraud cases result from an intent to steal. Some Michigan retail fraud cases result from a combination of opportunity and impulse. Many honest and hard-working people have engaged in impulse decision-making.

In the Macomb County area, most retail fraud cases originate at Lakeside Mall, Meijer, JC Penney, Home Depot, Target, and Sam’s Club. In over a thousand police reports that we have reviewed, most cases result from an impulsive decision to take a small item. We have represented people of all ages, from juveniles to an 87-year-old grandmother.

Retail fraud cases are sometimes the result of a mental health issue. In some of the retail fraud cases that our office has handled, people have had the money to pay for the item. But, they committed the offense out of compulsive behavior. Retail fraud can be part of a disorder. It is often an addiction that is similar to drugs or alcohol. Before we negotiate the case, we can assist our clients with finding treatment for impulse control or shoplifting disorder. We then present evidence of treatment to the courts to mitigate the severity of the charges or the sentence. So, retail fraud can result from more than just an intent to steal.

Some of our clients have committed retail fraud out of necessity. People have stolen items to sell to help pay bills or buy food. Hunger prompted a mother to take food items from Kroger to feed her children. One mother had taken baby formula from Walgreens to provide for her newborn.

People under the age of 24 commit a large portion of retail fraud cases. Their decision to commit retail fraud is often the result of immaturity. When we explain that the cost of an attorney, being placed on probation, paying fines and costs, and time spent in court far exceeds the stolen item’s price, the young offender usually has an eye-opening experience. This is especially true when we explain that retail fraud can damage their future career aspirations. We have explained that a $12.00 item is not worth their career and future. In this scenario, the HYTA program can keep an offense invisible to background checks.

Last, some individuals commit retail fraud to provide for a substance abuse issue. If that is the situation, we educate the client on the various programs that will help assist them with an addiction. By addressing the underlying addiction, the person can avoid further retail fraud convictions.

Other people that we represented have experienced a death in the family, loss of a loved one, loss of employment, divorce, break-up, psychological disorders, bi-polar disorder, and cognitive issues.

Just because someone is charged with retail fraud does not make them a bad person. There are many reasons someone commits retail fraud. Most of our retail fraud clients have never been arrested or in trouble before. They come from different backgrounds, ages, and employment. Most will never commit a crime again.

What should you do if you are charged with retail fraud?

Because an attorney can usually negotiate a Michigan retail fraud charge to a lesser offense or keep the conviction off of your record, you should always hire an experienced criminal defense lawyer. You want to discuss and explore all of your legal options. Since a retail fraud conviction can have drastic consequences on your employment, you should always consult with a lawyer. If you have a warrant for your arrest, you should handle it immediately.

Learn more about a Macomb County retail fraud case.

Czarnecki & Taylor can help put this case behind you.

If you have been charged with retail fraud, the best way to protect your rights is to consult with an experienced criminal defense attorney who can review the facts of your case and help you understand your options. At Czarnecki & Taylor, we have extensive experience handling every type of retail fraud charge and can help you build a strong defense against the charges.

We will examine all aspects of your case, including the circumstances of your arrest and the evidence that was gathered during the investigation. By reviewing this information, we may identify any potential weaknesses in the prosecutor’s case to prepare for trial or work to have your charges reduced or dismissed.

Besides providing you with an aggressive defense, we can also help you explore other options for resolving your case, such as HYTA or delayed sentences. These alternative sentencing options may not only allow you to avoid the consequences of a criminal conviction, but they could also benefit you by giving you the opportunity to earn a clean record.

If you are facing retail fraud charges in Michigan, contact us today to schedule a free consultation. Our team will work with you closely and provide you with the personalized attention that you need to maximize your chances of obtaining a positive outcome in your case. While every case is unique, we can help guide you through each step of the criminal justice process and fight to protect your rights.

At Czarnecki & Taylor we are very familiar with all the courts in Michigan and the Macomb County area. We appear in each court nearly every week, so we know what to expect from retail fraud cases. In Macomb County, the jurisdictions include:

• 37th District: Warren, Centerline
• 38th District: Eastpointe
• 39th District: Fraser, Roseville
• 40th District: Saint Clair Shores
• 41-B District: Clinton Township, Harrison Township, Mount Clemens
• 41-A District: Sterling Heights
• 41-A District: Shelby Township, Utica
• 42-1 District: Romeo, Washington Township, Armada, Richmond
• 42-2 District: New Baltimore, Chesterfield Township, New Haven

Contact our office to discuss your retail fraud case further. While this article explains the basics of a Michigan retail fraud case, each case depends on the facts. Each case is different, so you should consult with an attorney to get accurate information on what to expect in your specific case. Knowing the facts of your case and your background enables us to make appropriate and precise recommendations. We can set realistic and attainable goals regarding the outcome of the case.

One thing that sets Czarnecki & Taylor apart from other firms is our ability to handle complex cases that require specialized knowledge and experience. Our firm’s impressive track record for success and aggressive Michigan criminal defense is unparalleled for achieving exceptional results. No matter how complex or challenging your situation may be, you can trust that we will do everything we can to get you the results you need. Our lawyers are aggressive advocates who fight tirelessly on behalf of our clients. Whether you need help negotiating a plea deal or defending yourself at trial, we will work hard to achieve the best possible outcome for your case.

Are you charged with retail fraud? We can take care of this for you. Czarnecki & Taylor PLLC’s experienced attorneys will handle your case with care and help you through every step of the process. For a free consultation, contact us today at (586) 718-2345 or online for a prompt response. We are available 24/7 and have weekend and evening appointments.