Our lawyers focus on white-collar crime. These crimes include criminal possession of a forgery device and other forms of government investigations.

Our lawyers practice at both the federal and state levels.

In this article we will discuss:

(1) Federal Criminal Possession of a Forgery Device;
(2) New York State Criminal Possession of a Forgery Device;
(3) the penalties for violating either the federal or state statutes; and
(4) the defenses you can use if you are accused of either of these crimes.

If you have been charged with Criminal Possession of a Forgery Device under either Federal law or New York State law contact an attorney at the Blanch Law Firm at (212)736-3900 for a free legal review of your case.

Federal Criminal Possession of a Forgery Device – 18 U.S.C. §474

There are 2 elements to federal possession of a forgery device. In order to be found guilty, the government must be able to show both possession of a forgery device and use of or intent to use that device.

Federal criminal possession of a forgery device is a class “B” felony.

Possession

Federal Criminal Possession of a Forgery Device is defined as having control, custody, or possession of “any plate, stone, or other thing, or any part thereof, from which has been printed, or which may be prepared by direction of the Secretary of the Treasury for the purpose of printing, any obligation or other security of the United States.”

In simpler terms, this means possession of any image or device that could be used to create counterfeit documents that qualify as an obligation or other security of the United States. These documents include:

• Bonds
• Certificates of indebtedness
• National bank currency
• Federal Reserve notes
• Federal Reserve bank notes
• Coupons
• United States notes
• Treasury notes
• Gold and silver certificates
• Fractional notes
• Certificates of deposit
• Bills
• Checks
• Drafts for money drawn by or upon authorized officers of the United States
• Stamps and other representations of value, of whatever denomination, issued under any act of Congress
• Canceled United States stamps

Intent

The defendant must also either use the device in question, knowingly allow it to be used, have the intent to use it, or the intent to sell it in order for counterfeiting or forgery of obligations or other securities of the United States to take place.

New York State Criminal Possession of Forgery Devices – N.Y. Penal Law §170.40

In New York, criminal possession of forgery devices has 2 elements: possession and intent. The state must be able to show both elements existed in order for there to be a conviction.

The offense is a class “D” felony.

Possession

In order to prove possession, the state must show that there was either use of, or possession with knowledge of its character, any device specifically designed to be used in counterfeiting or forging of written documents.

Here, “Written Documents” means any instrument or article, computer programs and data included, that is used to convey, recite, enbody, or record information that can be used to the advantage or disadvantage of a person.

It is important to note that the courts have held that computer programs are not considered to be forgery devices.

Within possession, there are 2 important sub-elements: use or knowledge.

• Use; or

There must be actual use of the forgery device to create forgeries or counterfeits of any written document.

• Knowledge

You must have had knowledge that the device in question was specifically desigend to create forgeries or counterfeits of written documents.

Intent

In order to show intent the state must show that there was the intent to use, or to give to someone else to use, the device in question for the purpose of use in counterfeiting or forging written documents.

Charges Related to Criminal Possession of Forgery Devices

Federal Level

Uttering Counterfeit Obligations or Securities – 18 U.S.C. §472

Any person who uses or sells, or attempts to use or sell, counterfeit, forged or changed obligation or other security of the United States with the intent to defraud.

This could result in up to 20 years in jail, a fine of up to $200,000 for individuals and up to $500,000 for organizations and business, or both.

Dealing in Counterfeit Obligations or Securities – 18 U.S.C. §473

Any person who buys, sells, transfers, exchanges, delivers, or receives a counterfeit, forged, or altered obligation or any other security of the United States with the intent that it be passed off as authentic is subject to the same penalties as those who are charged with uttering counterfeit obligations or securities.

Taking Impressions of Tools Used for Obligations or Securities – 18 U.S.C §476

Any person who takes or procures an impression, stamp, or image, either digital or analog, of any tool, instrument, or thing fitted to be used, or intended to be used in stamping, impressing, or printing any obligation or other security of the United States.

This could result in up to 25 years in jail, a fine of up to $200,000 for individuals and up to $500,000 for organizations and business, or both.

Possessing or Selling Tools Used for Obligations or Securities – 18 U.S.C §477

Any person who possess, safeguards, or controls any impression, stamp, or image of any tool, instrument, or thing fitted to be used, or intended to be used in stamping, impressing, or printing any obligation or other security of the United States, without the authority of the United States and with the intent to defraud.

Any person who sells, or attempts to sell the above.

This could result in up to 25 years in jail, a fine of up to $200,000 for individuals and up to $500,000 for organizations and business, or both.

State Level

Forgery- N.Y. Penal Law §§170.05, 170.10, 170.15

Any person who, with the intent to defraud, makes, falsifies or alters a written instrument.

There are varying degrees of severity to this crime (third, second, and first degrees) depending on the type of written document in question. The schedule, and possible penalties, of the of the crime, range from a class “A” misdemeanor to a class “C” felony.

Criminal Possession of a Forged Instrument – N.Y. Penal Law §§170.20, 170.25,, 170.30

Any person who utters or possesses a forged document, with knowledge of its falsity and intent to defraud.

There are varying degrees of severity to this crime (third, second, and first degrees) depending on the type of document in question. The schedule, and possible penalties, of the of the crime ranges from a class “A” misdemeanor to a class “C” felony.

Criminal Simulation – N.Y. Penal Law §170.45

Any person who makes or alters an object in order to pass it off as having some antiquity, rarity, source or authorship it does not possess with the intent to defraud.

Any person who possesses or utters an object so simulated with knowledge of its true character and intent to defraud.

This is a class “A” misdemeanor which carries a potential of up to 1 year in jail or 3 years probation and a fine of up to $1,000 or twice the amount gained by the individual’s crime.

Other Charges Related to Criminal Possession of a Forgery Device

If you would like to learn more about any of the “charges related to criminal possession of a forgery device” listed below, visit our “Practice Areas” pages or call the Blanch Law Firm at (212)732-3900 for a free legal consultation.

• Fraud
• Bank Fraud
• Check Fraud
• Wire Transfer Fraud
• Fraudulent Loans
• Identity Theft
• Money Laundering
• Engaging in Monetary Transactions with Property Derived from Unlawful Activity
• Duplication or Skimming of Card Information
• Racketeering – Possession of a forgery device is a “predicate act” (an act, or acts, that make up the components of a more serious offense) of racketeering. Therefore, criminal possession of a forgery device along with its use, and in combination with the crimes above, may result in racketeering charges.

Investigating and Enforcing

While there are both federal and state level statutes criminalizing possession of a forgery device, most cases and investigations take place at the state level through a collaborative effort between federal agencies and federal land local law enforcement agencies including:

• Local Police Departments
• Federal Bureau of Investigations (FBI)
• Department of Treasury
• Secret Service
• United States Postal Service (USPS)
• Internal Revenue Service – Criminal Investigations (IRS-CI)
• Immigration and Customs Services (ICE)
• Department of Homeland Security (DHS)

Penalties

Federal Criminal Possession of a Forgery Device

Penalties for violating 18 U.S.C. §474 for possession of a forgery device with intent to use or sell for use to print any obligations or securities of the United States, a class “B” felony, includes:

• Up to 25 years in jail;
• A fine of up to $250,000 for individuals and up to $500,000 for business and organizations; or
• Both jail time and fines.

New York Criminal Possession of Forgery Devices

Penalties for violating N.Y. Penal Law §170.40 possessing forgery devices with the intent to use or to aid or permit another to use the device for purposes of forgery, a class “D” non-violent felony, include being placed on probation for up to 15 years.

Additional Consequences

A felony conviction has several additional consequences outside of jail time, probation, and fines. The possible consequences include:

• Potential loss of future employment opportunities due to background check requirements
• Delay in getting or denial of future applications for state licenses
• Loss of driver’s license
• Loss of the ability to vote and serve on a jury
• Loss of the ability to purchase a firearm
• Prohibition from running for or holding public office
• Ineligibility to enlist in the armed services
• Ineligibility for government aid

Additional Consequences in New York Specifically

Due to New York State’s statute being broader in scope than the federal statute there is also the possibility of having to face civil charges if investigated and convicted under the NY criminal possession of a forgery device statute.

For example, the possession and use (or intent to use) of a stamp of a designer’s name to mark on to fake watches to sell could lead to the possibility of a copyright lawsuit brought by the disadvantaged designer whose name was used on the fraudulently made watches.

Criminal Possession of a Forgery Device in the News

Frank Abagnale, Jr. – “Catch Me if You Can”

The most famous case of counterfeiting and forgery is that of Frank Abagnale, Jr. whose antics are the subject of the Steven Spielberg film and Broadway play “Catch Me if You Can.”

Abagnale’s exploits involved forging bank deposit slips, checks, employment badges, law school and medical school transcripts, and more. He was eventually caught in France in 1969 and after spending several years in different countries’ jails he was extradited to the United States where he was sentenced to 12 years in federal prison.

Identity Theft Ring Indicted for Multi-Million Dollar Credit Card Skimming and ATM Cash Out Operation

In 2014, Manhattan District Attorney Cyrus Vance announced the arrest and indictment of 13 defendants for allegedly placing card skimming devices throughout the southern part of the United States. The defendants used the information collected to steal and launder over $2 million dollars by using different Manhattan Banks and ATMs.

4 of the 13 defendants were charged with, among other things, Criminal Possession of a Forgery Device.

To see the District Attorney – New York County press release click here.

Establishing a Defense to Possession of Forgery Devices

Innocent Possession – Lack of Fraudulent Intent

The most popular defense in both federal and state level prosecutions of criminal possession of a forgery device is “innocent possession.”

If you were in possession of a forgery device but did not have the intent to commit fraud or forgery with it, or the intent to allow anyone else to do so, you may have a defense to criminal possession of a forgery device.

As an example, if a hobbyist stamp collector has in their collection a plate that was used to create a now discontinued stamp. He or she has no intent to use the plate to create counterfeit versions of the stamp or allow others to do so. The collector lacks the necessary intent to be convicted.

Violation of Fourth Amendment Rights – Warrantless Search and Seizure

The United States Constitution guarantees its citizens the right to be free from unreasonable search and seizure.

If you were found to have a forgery device as a result of what you believe to be an unconstitutional search and seizure by a governmental agency then you may have a defense against criminal possession of a forgery device.

A search of your residence, or any private area, by a government agency without a warrant would violate your constitutional right to be free from unreasonable searches and seizures. Any evidence found while an unconstitutional search is conducted could be impermissible in court.

Frequently Ask Questions

“Can the government compel me to testify in a criminal possession of a forgery device case?”

If you are a government witness to criminal possession of a forgery device and you refuse to testify in front of a grand jury or other federal agency, a court may issue an order to compel your testimony.

If compelled you can no longer refuse to testify without facing prosecution for charges like contempt of court or hindering a government investigation.

“How is that not a violation of my fifth amendment right against self-incrimination?”

No, being compelled by court order to testify is not a violation of your right against self-incrimination. No testimony or information compelled under a court order (or any information that may be derived from that testimony) may be used against you in a criminal case unless you give a false statement, commit perjury, or otherwise fail to comply with the order.

The information to be gathered from your testimony is not being sought in order to be used against you, it is being gathered to be used against someone else. Due to this there is no violation of your right against self-incrimination.

Call A White Collar Crime Attorney You Can Trust

Our attorneys are respected criminal litigators with knowledge and experience in all judicial practices and procedures on both a state and federal level. We have defended public companies and private individuals and will strive to protect you, your family, and your rights from charges and accusations of criminal possession of a forgery device.

^[1] New York Penal Law §170.00
^[2] People v. Carmack, 827 N.Y.S.2d 383, 384 (App. Div. 2006)
^[3]Basis of example from People v. Thai, 542 N.Y.S.2d 955 (Crim Ct. 1989)