Charged Under Minn. Stat. § 609.62? A Minnesota Lawyer Explains How to Fight for Your Property and Freedom.
You’re in a tough spot. A financial disagreement, likely over a car, a boat, or business equipment, has escalated into something you never imagined: a felony criminal charge. You’ve been accused of Defeating Security on Personalty, and now a dispute that should have stayed in the civil world has landed you in the criminal justice system. Maybe you fell behind on a car loan and sold the vehicle, hoping to use the cash to get back on your feet. Perhaps your business in Minneapolis or St. Paul went under, and you moved the equipment you used as collateral to prevent the bank from seizing it. Or maybe you simply moved from Rochester to Duluth for a new job and took your financed property with you, unaware that the lender would see it as a criminal act.
Now, the State of Minnesota is accusing you of intentionally defrauding a creditor. The prosecutor will paint a simple picture of a thief trying to cheat a lender out of what they are owed. They don’t care about your side of the story—the job loss, the medical bills, or the genuine dispute you had over the debt. I do. As a Minnesota criminal defense attorney who has defended people across the state, from the Twin Cities suburbs of Eagan and Maple Grove to the far corners of the state, I understand how a financial struggle can be twisted into a felony charge. You do not have to face this alone. An accusation is not a conviction, and this is the time to fight back.
More Than a Debt: What “Defeating Security on Personalty” Actually Means in Minnesota
When you are facing a charge for Defeating Security on Personalty under Minnesota Statute § 609.62, the government is accusing you of deliberately cheating a lender out of their right to repossess property that was used as collateral for a loan. This property is anything movable—a car, truck, boat, ATV, expensive jewelry, or commercial equipment—that is subject to a “security interest.” This security interest is the lender’s legal claim to the property until the debt is fully paid. This charge isn’t about simply being in debt; it’s about taking active steps to prevent the lender from exercising their right to that collateral.
There are two main ways this crime is committed in Minnesota. The first is by concealing, removing, or transferring the property to someone else when you know a lender has a security interest in it. The second way is by being the debtor, knowing where the property is, and refusing to tell the lender its location when they have a right to repossess it. At the heart of any Minnesota charge for defeating security is the allegation that you acted with an “intent to defraud.” This is a critical point. Your actions must have been a calculated attempt to cheat the lender, not just a consequence of a financial hardship or a simple disagreement over the loan.
Minnesota Law on Defeating Security on Personalty — Straight from the Statute
The legal authority for the felony charge you are facing comes from Minnesota Statute § 609.62, titled “Defeating Security on Personalty.” This is the precise law that prosecutors use to turn a civil debt collection issue into a serious criminal case. It is vital that you understand the exact wording that I will be fighting against on your behalf.
609.62 DEFEATING SECURITY ON PERSONALTY.
Subdivision 1. Definition. In this section “security interest” means an interest in property which secures payment or other performance of an obligation.
Subd. 2. Acts constituting. Whoever, with intent to defraud, does any of the following may be sentenced to imprisonment for not more than three years or to payment of a fine of not more than $6,000, or both: (1) conceals, removes, or transfers any personal property in which the actor knows that another has a security interest; or (2) being an obligor and knowing the location of the property refuses to disclose the same to an obligee entitled to possession thereof.
Breaking Down the Legal Elements of Defeating Security on Personalty in Minnesota
For the government to convict you of this felony, they can’t just point to an unpaid loan. They have a high bar to clear. They must prove every single component—the “elements” of the crime—beyond a reasonable doubt. My job is to attack each of these elements, to find the weakness in the prosecutor’s case, and to show that the state cannot meet its burden. If we can cast reasonable doubt on even one element, you cannot be convicted. Here is what the prosecution must prove:
- A Valid Security Interest: The foundation of the state’s case is a legally enforceable security interest. This means the lender must have a valid, signed contract that clearly gives them a claim to the specific personal property as collateral for the debt. If the contract is flawed, was never properly executed, or doesn’t identify the collateral correctly, there is no security interest to defeat. We will meticulously review all loan documents to challenge the validity of the lender’s claim from the very start.
- Knowledge of the Security Interest: It’s not enough for a security interest to exist; the prosecutor must prove that you knew it existed. While this is often straightforward with a vehicle loan, it can be more complex in business dealings or personal loans. If you were unaware that the property was being used as collateral—perhaps in a partnership dispute or a complex financing agreement—then you could not have acted with the knowledge required for a conviction.
- The Act of Defeating Security: The state must prove you took a specific, affirmative action. This means you either (1) physically concealed the property, moved it to a new location to hide it, or transferred ownership or possession to another person, OR (2) you were the person who owed the debt, knew where the property was, and flatly refused to tell the lender its location when they were legally entitled to repossess it. Simply being unable to be reached by the lender is not the same as a criminal refusal.
- Intent to Defraud: This is the most important element and the ground on which most of these cases are fought. The prosecutor must prove that your actions were driven by a specific “intent to defraud”—a conscious desire to cheat or deceive the lender and wrongfully deprive them of their property. If you moved and took your car with you for a new job, not to hide it, or if you sold equipment because you believed you had a right to, you did not possess the fraudulent intent that this felony charge requires.
Penalties for a Defeating Security on Personalty Conviction in Minnesota Can Be Severe
Do not underestimate the seriousness of this charge. The state of Minnesota has made defeating a security interest a felony-level offense, and the penalties reflect that. A conviction can land you in prison, saddle you with enormous fines, and leave you with the lifelong stigma of being a convicted felon. These consequences are designed to be harsh and can have a devastating impact on every aspect of your life, long after the court case is over.
Felony Conviction
A conviction under this statute is a felony. This is not a minor offense; it is a serious crime that will permanently alter your life.
- Maximum Prison Time: Up to 3 years in a state correctional facility.
- Maximum Fine: Up to $6,000.
- Probation and Restitution: Even if you avoid prison, a judge will likely place you on a long period of probation with strict conditions. You will also almost certainly be ordered to pay restitution to the lender for the full value of the property, on top of any fines.
- A Permanent Felony Record: This is the penalty that never goes away. A felony conviction will follow you for the rest of your life, creating significant barriers to employment, housing, and your basic civil rights.
What Defeating Security on Personalty Looks Like in Real Life — Common Scenarios in Minnesota
These charges rarely stem from a master plan to commit a crime. They are almost always born out of financial desperation, a breakdown in communication with a lender, or a simple misunderstanding of your rights and obligations. The cold language of the statute doesn’t capture the real-world stress that leads to these situations. You might see your own story in these common scenarios from across Minnesota.
The prosecutor will tell a simple story of a debtor trying to cheat a creditor. My job is to tell the full story—the job loss, the business failure, the genuine dispute over the debt—to show that your actions were a result of a difficult situation, not a criminal mind.
The Car Loan in Minneapolis
You financed a car to get to your job in Minneapolis. You lose that job and quickly fall behind on the high monthly payments. The lender starts calling constantly and threatens to send a repo man. Panicked and needing to pay rent, you sell the car to someone on Craigslist for cash, figuring you’ll deal with the lender later. The lender reports the car stolen, and when the police investigate, you are charged with a felony for transferring property in which another had a security interest.
The Failed Business in Rochester
You took out an SBA loan to start a small business in Rochester, using all of your expensive equipment as collateral. Despite your best efforts, the business fails, and the bank calls the loan. They demand to know where the equipment is so they can seize and auction it. Fearing you’ll be left with nothing, you move the equipment to a friend’s farm outside the city and refuse to answer the bank’s calls. You have now committed a felony by concealing the property and refusing to disclose its location.
The Financed Boat in Duluth
You live in Duluth and bought a fishing boat on credit to enjoy Lake Superior. After a few years, you decide to move to another state for a new opportunity. You take the boat with you, register it in the new state, and continue making payments for a while. When you hit a rough patch and miss a few payments, the Minnesota lender has trouble locating you and the boat. They report it to law enforcement, and you are charged with feloniously removing secured property from the state.
The Engagement Ring as Collateral in St. Paul
You are going through a difficult time and take out a high-interest loan from a title loan company or specialty lender in St. Paul, using a valuable family heirloom or engagement ring as collateral. As the date for repayment nears, you realize you can’t pay back the loan and can’t bear to lose the ring. You tell the lender the ring was lost or stolen, when in fact you’ve hidden it in a safe deposit box. You have now concealed personal property with the intent to defraud the lender.
Legal Defenses That Might Work Against Your Charge of Defeating Security on Personalty
Being charged with a felony can make you feel powerless, especially when it stems from a debt you were already struggling with. The lender has a team of lawyers, and the prosecutor has the power of the state. But you have constitutional rights, and the burden of proof is entirely on them. My approach is to never take the state’s case at face value. I will conduct a thorough investigation into the loan, the lender’s conduct, and your actions to find the holes in their story. An accusation is not proof, and we can fight this.
Building a powerful defense requires a creative and aggressive strategy that attacks the very heart of the state’s case: your intent. We will not simply deny the charge; we will build a compelling narrative that shows your actions were not driven by a desire to defraud anyone. Whether it’s proving you lacked criminal intent, challenging the validity of the lender’s claim, or showing you had a legitimate right to the property, our goal is to achieve the best possible outcome—a dismissal, an acquittal, or a reduction to a lesser charge that saves your future.
You Lacked the Intent to Defraud
This is the most crucial element and often the most successful defense. The state must prove, beyond a reasonable doubt, that you acted with the specific purpose of cheating the lender. We can introduce evidence to show that your state of mind was not fraudulent.
- Good-Faith Belief: Perhaps you believed you had a right to sell the property. For example, if the lender had breached the contract in some way, or if you had already paid more than the property was worth, you might have reasonably believed you could sell it and settle the remaining debt. This negates the intent to defraud.
- No Attempt to Conceal: If you moved out of state for a new job and took your financed car with you, we can argue this was not an act of concealment. Did you notify the post office of your new address? Did you attempt to contact the lender? We can show that your actions were open and not intended to hide the property from the lender.
The Security Interest Was Not Valid
The entire case rests on the lender having a valid, legally enforceable security interest. If their paperwork is not in order, the foundation of the state’s case collapses.
- Improperly Executed Contract: We will scrutinize the loan documents. Was the security agreement properly signed? Does it accurately describe the specific property that serves as collateral? Any defect in the creation of the security interest can render it invalid and your charge dismissible.
- The Debt Was Satisfied or Disputed: If you had already paid off the debt, or if there was a legitimate and ongoing dispute about the amount owed, the lender may not have had a right to possession. We can turn the tables and show that it was the lender, not you, who was acting improperly.
You Had a “Claim of Right” to the Property
This defense argues that you had a legitimate and good-faith belief that you had a superior right to the property, trumping the lender’s security interest.
- Ownership Disputes: This can arise in business partnerships or divorces. Perhaps you believed the property was a personal asset, while your partner had used it as collateral for a business loan without your full knowledge or consent. This transforms the case from a criminal matter to a civil dispute over ownership.
- Mechanic’s Lien or Other Superior Claim: Did you have work done on the vehicle or equipment? A mechanic who performs work can sometimes place a lien on the property that can take priority over the original lender’s security interest. We can explore if any other party had a superior legal claim to the property.
Challenging the Alleged “Act”
The prosecutor must prove you actually committed the specific act of concealing, removing, transferring, or refusing to disclose. We can challenge the factual basis of their claim.
- No Refusal to Disclose: A “refusal to disclose” is an active defiance. Simply being hard to reach, not answering phone calls from an unknown number, or not responding to aggressive letters is not the same as a criminal refusal. We can argue that the lender never made a proper, clear demand for the location that you then actively refused.
- Property Was Not “Concealed”: Hiding a car in a friend’s garage is concealment. Parking it in the driveway of your new, openly registered address is not. We will fight the prosecutor’s characterization of your actions, showing that you were living your life, not running from a debt.
Minnesota Defeating Security on Personalty FAQs — What You Need to Know Now
Will I definitely go to prison for this felony charge?
While the maximum sentence is three years in prison, it is not a mandatory outcome, especially for someone with a clean record. However, judges take financial crimes seriously. An experienced attorney can often negotiate for alternatives like probation, community service, and restitution, but the threat of prison is very real and highlights the need for an aggressive defense.
Can this charge be dismissed or reduced to a misdemeanor?
Yes. This is often the primary goal. If we can show the prosecutor that they have a weak case—particularly on the element of “intent to defraud”—we can often negotiate for a full dismissal. Alternatively, we can fight for a reduction to a misdemeanor or gross misdemeanor, which would prevent you from having a felony conviction on your record for life.
What does “personalty” mean?
“Personalty” or “personal property” is a legal term for any property that is not land or buildings (which is called “real property”). It includes virtually anything you can own that is movable: cars, boats, motorcycles, ATVs, furniture, jewelry, electronics, business equipment, tools, etc.
What is a “security interest”?
A security interest is a lender’s legal right to take possession of a specific piece of property if you fail to pay back a loan. It’s what makes a loan “secured.” The property serves as the collateral. For example, when you get a car loan, the car itself is the security for the loan, and the bank has a security interest in it.
I sold the car but was planning on paying the loan back. Is that still a crime?
It can be. The crime is committed when you transfer the property with the intent to defraud the lender of their security. Even if you intended to pay them back later, the act of selling their collateral without their permission can be interpreted by a prosecutor as intent to defraud them of their right to repossess the property if you fail to pay.
The lender was harassing me. Does that matter?
While lender harassment is not a direct legal defense to this crime, it is a critical part of the story. It helps explain your state of mind and can show that you were acting out of fear or frustration, not with a calculated intent to defraud. We can use evidence of harassment to gain sympathy and leverage with the prosecutor or a jury.
I don’t know where the property is anymore. What do I do?
You should not speak to the lender or the police without an attorney. Your lawyer can communicate on your behalf. If you genuinely don’t know the location of the property (for example, if a car you sold was then resold), that is a factual defense. If you do know, your attorney can advise you on the best legal strategy moving forward.
What if the property was worth less than what I owed?
This is very common, but it is not a defense. The crime is about defeating the lender’s right to their collateral, whatever its value may be. However, it can be a factor in negotiations and sentencing.
Can I be charged if I filed for bankruptcy?
Filing for bankruptcy puts an “automatic stay” in place, which generally prohibits creditors from trying to collect debts or repossess property. If you concealed or transferred property before filing, you could still be charged. Doing so after filing could lead to this charge and separate, serious bankruptcy fraud charges.
Do I need a lawyer for this charge in a city like Brooklyn Park or Eagan?
Absolutely. This is a felony charge, no matter where you are in Minnesota. A prosecutor in Anoka County or Dakota County will take this just as seriously as one in Hennepin County. You need an attorney who can navigate the local court system and protect you from a lifelong felony record.
How can they prove my “intent”?
Intent is proven through circumstantial evidence—your actions, your words, and the surrounding circumstances. The prosecutor will argue that your actions (like selling the property for cash or not answering calls) are proof of your intent. My job is to present alternative, non-criminal explanations for those same actions.
The contract was confusing, and I didn’t know the property was collateral. Is that a defense?
Yes. If you did not know that the property secured the loan, then you could not have formed the intent to defraud the lender of their security interest. This can happen with complex loan documents, add-ons, or in business settings. We would need to show that your lack of knowledge was genuine and reasonable.
Can I just give the property back and make this go away?
Returning the property is often a good first step and can show good faith, but it does not automatically make the criminal charge disappear. A prosecutor can still argue that you committed the crime when you initially concealed or transferred it. However, returning the property can be a very powerful bargaining chip that your lawyer can use to negotiate a dismissal.
What if I am just a co-signer? Can I be charged?
It depends on your role and your actions. If you are just a co-signer on the loan but not an owner of the property, you likely wouldn’t be charged for refusing to disclose its location. However, if you actively helped the main borrower hide or sell the property, you could be charged with aiding and abetting the crime.
Is there a statute of limitations for this crime?
Yes. For most felonies in Minnesota, the statute of limitations is three years. This means the state must file charges against you within three years of the date the crime was allegedly committed.
What a Defeating Security on Personalty Conviction Could Mean for the Rest of Your Life
A felony conviction for a financial crime like this can be a life sentence of closed doors and lost opportunities. The formal penalties are just the beginning. The “collateral consequences” of having a felony record will follow you long after your case is closed, impacting your ability to earn a living, find a home, and exercise your basic rights as a citizen.
Lifelong Ban on Owning Firearms
Under both Minnesota and federal law, a conviction for any crime punishable by more than a year in prison—which includes this felony—results in a lifetime ban on possessing firearms or ammunition. This is not a temporary suspension; it is a permanent loss of your Second Amendment rights. There is no automatic restoration. For anyone who hunts, engages in sport shooting, or simply wants the ability to protect their home, this is a devastating and permanent consequence.
Devastating Impact on Employment and Professional Licenses
Imagine trying to explain a felony conviction for fraud on a job application. Most employers conduct background checks, and a felony is often an automatic disqualifier, especially for positions of trust or those involving handling money. If you hold a professional license (in real estate, insurance, finance, healthcare, etc.), a conviction like this is often grounds for immediate and permanent revocation by your licensing board. It can effectively end your career.
Barriers to Housing and Credit
A felony conviction can make it incredibly difficult to find a place to live. Many landlords and property management companies will not rent to someone with a felony record, particularly one involving financial dishonesty. Ironically, the very financial trouble that may have led to the charge can be compounded by the conviction, making it harder than ever to secure housing or obtain credit. Getting a car loan, a mortgage, or even a credit card can become nearly impossible.
Immigration Consequences for Non-Citizens
For anyone who is not a U.S. citizen, including legal permanent residents (green card holders), a conviction for a crime of fraud can have catastrophic immigration consequences. This type of offense is often considered a “crime involving moral turpitude,” which can make you deportable from the United States. It can also prevent you from ever becoming a naturalized citizen or being allowed to re-enter the country if you travel abroad.
Why You Need a Tough, Experienced Minnesota Attorney for a Defeating Security Charge
When a civil dispute has been turned into a felony criminal case, you are fighting a battle on two fronts. You need more than just a standard criminal defense lawyer; you need an advocate who understands the complex intersection of contract law, debt collection, and the criminal justice system. The prosecutor sees a simple case of fraud. I see a complex financial situation that has been unfairly criminalized, and I know how to fight back.
I Understand How Civil Disputes Become Criminal Charges
These cases are unique. They start with a loan agreement and end with a felony complaint. I have extensive experience handling cases that live in this grey area. I know how to dissect a loan document, challenge a lender’s accounting, and expose improper collection tactics. I can take the fight to the lender on the civil aspects of the case, which often gives us the leverage we need to get the criminal charges dismissed. I will not let a prosecutor railroad you because they don’t understand the underlying financial dispute.
Immediate Action to Control the Narrative
The moment you are contacted by police or a lender’s investigator, they are building a case against you. Every word you say can be twisted and used to prove your “intent to defraud.” It is critical that you have an attorney to step in immediately, handle all communication, and stop you from making a statement that could destroy your defense. I will get to work right away, gathering evidence and building our own narrative to show that your actions were born of desperation or misunderstanding, not criminal intent.
Navigating the Courts in Hennepin County, Ramsey County, and Across Minnesota
A felony case in a rural county can be handled very differently than one in the busy courtrooms of Minneapolis or St. Paul. I have defended clients in every corner of Minnesota. I know the local prosecutors, I know the judges, and I know how to tailor a defense strategy to the specific courthouse where your future will be decided. This statewide experience is a crucial advantage when you are facing the full resources of the government.
A Strategy Focused on Avoiding a Felony Conviction
My number one goal in every one of these cases is to prevent a felony conviction from entering your record. A felony is a life-altering event. We will explore every possible avenue to achieve this, whether it’s fighting for a full dismissal based on a legal defense, negotiating a reduction to a misdemeanor, or taking your case to a jury and winning a not-guilty verdict. Your financial future may be uncertain, but I will fight to ensure your criminal record remains clean.