‘Tis the Season for Retail Fraud

Mark Mandell, Esq.

As the holiday season nears, retail fraud is expected to skyrocket. Last December, the National Retail Federation estimated retail fraud’s annual cost at $8.9 billion, according to a survey of 60 retail firms. Of that amount, $2.9 billion will come during the holiday season. The holiday season can be difficult on families who may not be able to afford the types of gifts they would like to give their loved ones. For this reason, individuals in this predicament may feel the need to commit retail fraud. Although, this may be a difficult time for many families, the penalty of retail fraud is too severe and the risk is too high. Since the consequences of retail fraud are hefty, quality legal representation is a necessity.

There are three degrees of retail fraud: first degree, second degree and third degree. The difference in degrees of retail fraud depends on the benefit wrongfully received. If the benefit wrongfully received is $200.00 or less, the crime would be considered retail fraud in the third degree, a misdemeanor. If the benefit wrongfully received is more than $200.00 but less than $1000.00, the crime would be considered retail fraud in the second degree, a misdemeanor. If the benefit wrongfully received exceeds $1000.00, the crime would be considered retail fraud in the first degree, which is a felony.

Retail fraud can take a variety of forms such as taking property from the store that has not been paid for; returning items to the store as a refund or exchange for property that was not paid for and misrepresenting the price of an item with intent not to pay for the item or pay less than the price at which the property is offered for sale.

Retail fraud is governed by statute-MCL §750.356. MCL §750.356c provides that any person who commits retail fraud in the first degree is punishable by imprisonment for not more than 5 years or a fine of not more than $10,000.00 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. MCL §750.356d provides that any person who commits retail fraud in the second degree is punishable by imprisonment for not more than 1 year 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. MCL §750.356d provides that any person who commits retail fraud in the third degree is punishable by imprisonment for not more than 93 days 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.

The harsh penalties of retail fraud make having experienced and knowledgeable legal counsel invaluable.  If you have been charged with retail fraud, contact attorney Mark Mandell at (248) 380-0000 or online at www.MichiganFraudLawyer.com.