Charged Under Minn. Stat. § 609.526? A Minnesota Defense Lawyer on Protecting Your Business and Your Liberty
You have spent years building your business. Whether you are a precious metal dealer or run a scrap metal yard, your livelihood depends on your reputation, your licenses, and your ability to conduct transactions legally and efficiently. Now, all of that is under threat. You are being accused of receiving stolen property, a charge that doesn’t just question a single transaction but attacks the very integrity of your operation. The state is not just saying you made a mistake; they are accusing you of being a fence for thieves, a critical link in the chain of criminal activity. You didn’t plan to end up here, but you are now facing a charge that can send you to prison, saddle you with bankrupting fines, and destroy the business you worked so hard to create.
Perhaps an employee failed to follow procedure. Maybe a seller seemed legitimate and you had no reason to believe the property was hot. The problem is that under Minnesota law, the prosecution doesn’t have to prove you knew the goods were stolen—only that you had “reason to know.” This vague and dangerous standard makes it incredibly easy for legitimate business owners to get caught in a legal nightmare. I understand what is at stake for you. For years, I have defended individuals and business owners across Minnesota, from scrap yards in Minneapolis and St. Paul to pawn shops and gold buyers in Rochester, Duluth, and St. Cloud. You do not have to let this accusation ruin your life. It’s time to fight back.
What It Means to Be Accused of Receiving Stolen Metal in Minnesota
When you are charged under Minnesota Statute § 609.526, it means the state believes you, as a precious metal or scrap metal dealer, bought, received, or concealed property that was obtained through theft, robbery, or carjacking. This law was written specifically to target your industry, holding dealers to a higher standard than the general public. Prosecutors view scrap yards and pawn shops as the primary marketplace for criminals looking to quickly offload stolen goods like catalytic converters, copper wire, and jewelry. Therefore, they pursue these cases aggressively to disrupt the economic incentive for theft.
The most dangerous part of a Minnesota receiving stolen property charge for a dealer is the legal standard of “knowing or having reason to know.” Actual knowledge can be hard to prove, so the law gives prosecutors a shortcut. They only need to convince a jury that a reasonable person in your position would have been suspicious. They will use evidence like a price that was “too good to be true,” a seller who seemed nervous or lacked proper identification, or goods that showed signs of being stolen (like cleanly cut pipes or catalytic converters) to argue that you should have known the property was illicit. This subjective standard puts the burden on you to be overly cautious in every transaction, and it’s a standard we must fight aggressively.
The Law on Receiving Stolen Property — Straight from Minnesota Statute § 609.526
To mount an effective defense, you need to understand the exact law the government is using to threaten your liberty and your business. The entire case against you is built on the language of a statute designed specifically for your industry. The controlling law is Minnesota Statute § 609.526, titled “Precious Metal and Scrap Metal Dealers; Receiving Stolen Property.”
The core of the charge against you is found in Subdivision 2, which lays out who can be charged, what acts are criminal, and what the potential sentences are. Here is the exact language:
609.526 PRECIOUS METAL AND SCRAP METAL DEALERS; RECEIVING STOLEN PROPERTY. Subd. 2.Crime described.
Any precious metal dealer or scrap metal dealer or any person employed by a dealer, who receives, possesses, transfers, buys, or conceals any stolen property or property obtained by robbery or carjacking, knowing or having reason to know the property was stolen or obtained by robbery or carjacking, may be sentenced as follows:
(1) if the value of the property received, bought, or concealed is $1,000 or more, to imprisonment for not more than ten years or to payment of a fine of not more than $50,000, or both;
(2) if the value of the property received, bought, or concealed is less than $1,000 but more than $500, to imprisonment for not more than three years or to payment of a fine of not more than $25,000, or both;
(3) if the value of the property received, bought, or concealed is $500 or less, to imprisonment for not more than 90 days or to payment of a fine of not more than $1,000, or both.
Anatomy of a Stolen Metal Charge in Minnesota: The State’s Burden
A prosecutor cannot simply point a finger and declare you guilty. To secure a conviction under this harsh statute, the state carries the burden of proving several distinct components—the legal elements of the crime—beyond a reasonable doubt. My entire defense strategy is built around exposing the weaknesses in the state’s ability to prove these elements. If we can create reasonable doubt on even one of them, the entire case against you can collapse. Understanding these elements is the first step toward reclaiming your business and your life.
- Your Status as a Dealer: The very first thing the state must prove is that this specific statute applies to you. The law is aimed directly at a “precious metal dealer,” a “scrap metal dealer,” or an employee of such a business. This isn’t a general receiving stolen property charge. The prosecutor must establish that you fall into one of these professional categories as legally defined. This element makes the crime an occupational hazard and is the reason the penalties are so severe—the state sees you as a gatekeeper who failed in your duty.
- The Act of Receiving: Next, the prosecution must prove you committed one of the prohibited acts. The statute lists them clearly: you must have received, possessed, transferred, bought, or concealed the property. This language is intentionally broad to cover almost any way you could have handled the goods. Whether the property was in your inventory for months or you simply bought it and immediately resold it, the act of exercising control over the illicit goods is enough to satisfy this element of the crime.
- The Property’s Stolen Nature: It is fundamental that the state must prove the property was actually stolen. This may seem obvious, but it can be a significant hurdle for the prosecution. They need to connect the specific items found in your possession—the specific catalytic converter or piece of jewelry—to a specific, documented theft, robbery, or carjacking. If the property’s origin is unclear, or if it came from a civil dispute rather than a crime, then no crime has been committed under this statute, no matter how suspicious the transaction may have seemed.
- The “Knowing or Having Reason to Know” Standard: This is the heart of the battle and the most dangerous element for any dealer. The prosecutor does not need to read your mind. They can secure a conviction by proving you had reason to know the property was stolen. They will argue that based on the totality of the circumstances—a price below market value, the seller’s suspicious behavior, the condition of the goods, or your failure to follow record-keeping laws—a reasonable dealer would have concluded the property was hot. My job is to prove that your actions were commercially reasonable and that the state is using unfair hindsight to create guilt where none exists.
Your Business on the Line: Penalties for a Conviction in Minnesota
Do not underestimate the consequences of a conviction under this statute. The penalties are designed not just to punish you, but to put you out of business permanently. The potential for long prison sentences is real, and the fines are set at levels that can be financially devastating for even a successful operation. The state is sending a clear message: if you are a dealer who buys stolen goods, they will take your freedom and your livelihood. The penalty level is determined by the value of the property involved.
Felony (Value of $1,000 or more)
If the value of the stolen property is $1,000 or greater, you are facing a serious felony. A conviction is punishable by up to 10 years in prison and/or a staggering fine of up to $50,000.
Felony (Value between $501 and $999)
Even for property valued at just over $500, the charge is still a felony. A conviction carries a sentence of up to 3 years in prison and/or a fine of up to $25,000.
Misdemeanor (Value of $500 or less)
If the value of the property is $500 or less, the crime is a misdemeanor, punishable by up to 90 days in jail and/or a fine of up to $1,000. Critically, the statute includes a repeater clause: if you are convicted a second time within one year, you can be sentenced under the most severe felony level, regardless of the property’s value.
How a Legitimate Business Gets Charged: Real-Life Scenarios in Minnesota
A criminal charge for receiving stolen property rarely starts with a dealer intending to break the law. More often, it begins with a routine transaction that, with the benefit of hindsight, looks suspicious to law enforcement. Here are some common scenarios that lead to charges for hardworking business owners across Minnesota.
The Catalytic Converter Case in Minneapolis
Your scrap yard in Minneapolis is a high-volume business. An employee buys a dozen catalytic converters from a seller who offers a price slightly below your usual rate. The employee, focused on moving metal, doesn’t notice the clean, professional-looking cuts on the pipes—a sign they were quickly removed from vehicles. Police later investigate a string of thefts and trace the stolen converters to your yard. You are charged because a prosecutor argues that the quantity, the low price, and the clean cuts constituted a “reason to know” they were stolen.
The Stolen Jewelry in St. Paul
A young person enters your St. Paul precious metals shop with a velvet box of what they claim is their grandmother’s old jewelry. They seem nervous and are eager to sell for cash quickly. You negotiate a price that is fair for used gold but still a great deal for you. It is later discovered the jewelry was taken in a recent home burglary. Police argue that the seller’s demeanor and their willingness to take a low price should have been giant red flags, giving you “reason to know” the items were illicit.
The Construction Site Copper in Rochester
A man driving a beat-up work truck offers to sell you a large quantity of copper wiring and pipes at your Rochester-area scrap yard. He claims it’s leftover material from a job he just finished. He doesn’t have the usual business invoice you’d expect from a contractor, but you proceed with the transaction anyway. The copper is later identified as having been stolen from a large, nearby construction site. The lack of proper paperwork becomes key evidence for the prosecution to argue you were willfully blind to the property’s origin.
The Employee’s Error in Duluth
You own a scrap metal business in Duluth and have strict policies requiring employees to get a valid ID and a thumbprint for every transaction. A new, poorly trained employee buys a load of aluminum siding without getting the required information. The siding turns out to be stolen from a local residence. Even though you were not present and the employee violated your policy, you, as the owner, can be charged. The state will use your employee’s failure to follow the law as evidence that your business operated with criminal recklessness.
Defending Your Business and Your Name: Strategies That Work
Being charged with a crime that attacks your professional integrity can feel like a knockout blow. But it is not the end of the fight. A charge based on the vague “reason to know” standard is highly subjective, and that subjectivity is a weakness we can exploit. An accusation is simply the prosecution’s theory of the case. Our job is to present a counter-narrative grounded in the facts of your business and the reasonableness of your actions.
A successful defense starts with a deep dive into the specifics of the transaction. We will scrutinize the state’s evidence and conduct our own investigation. Was the price truly unreasonable? What is the industry standard for due diligence? Were there any legitimate reasons for the seller’s behavior? By challenging the state’s assumptions and presenting you as a prudent business owner, not a criminal accomplice, we can dismantle their case.
Defense Strategy: You Had No Reason to Know
This defense directly confronts the heart of the prosecution’s case. We will argue that, given the information available to you at the time of the transaction, your actions were reasonable and that there were no clear indicators the property was stolen.
- The Transaction Appeared Legitimate: The seller may have presented a plausible backstory, the price paid may have been within the normal range for used or scrap materials, and the goods themselves may not have had any obvious signs of theft. We will argue the state is using 20/20 hindsight to create suspicion where none reasonably existed.
- You Complied with Industry Standards: We will demonstrate that you followed your standard business practices and any applicable record-keeping laws. By showing that you acted as any other reasonable dealer in your industry would have, we can powerfully argue that you did not have the required “reason to know.”
Defense Strategy: You Lacked Actual Knowledge or Intent
This defense focuses on proving you did not actually know the property was stolen and that you had no criminal intent. You were not a willing participant in a crime, but rather a victim of a deceiver.
- You Were Actively Deceived: The seller may have been a sophisticated liar who provided fraudulent documents or a convincing, but false, story about the property’s origin. In this case, we argue that you are also a victim of the thief, not their partner in crime.
- An Employee Acted Against Company Policy: If an employee conducted the illicit transaction in clear violation of your established and enforced company policies, we can argue that this was a rogue act for which you, the owner, should not be held criminally liable. This can separate your intent from the actions of your employee.
Defense Strategy: The Property Was Not Legally “Stolen”
The state has the absolute burden of proving the property was obtained through a criminal act. If they cannot definitively prove the items were stolen, their entire case against you fails.
- It Was a Civil Ownership Dispute: The property may have been sold to you by someone involved in a contentious civil dispute, such as a divorce, an inheritance battle, or a business breakup. The seller may have had a legitimate “claim of right” to the property, meaning it wasn’t criminally stolen.
- The State Cannot Prove a Link: The prosecution’s evidence linking the specific property in your possession to a specific crime may be weak. We can challenge their chain of custody, the reliability of their identification methods, and any other gaps in their proof.
Defense Strategy: Attacking the State’s Valuation
The difference between a misdemeanor and a 10-year felony can come down to a few dollars in valuation. We will aggressively challenge the prosecution’s valuation of the property to fight for a reduction in the charge’s severity.
- Scrap Value vs. Finished Product Value: For items like catalytic converters, the state may try to use the value of the new OEM part, which can be over $1,000. We will argue that for a scrap dealer, the correct value is the much lower scrap value of the precious metals contained within it, which is often under the felony threshold.
- Fluctuating Market Prices: The value of precious and scrap metals changes daily. We will ensure the valuation is based on the market price at the exact time of the transaction, not a price from a different day that inflates the value into a higher penalty level.
Minnesota Metal Dealer FAQs — Your Urgent Questions Answered
When your business and freedom are on the line, you have urgent questions. Here are direct answers to the most common concerns for dealers facing these charges.
Will I go to jail for a charge under § 609.526?
Jail or prison is a very real possibility, especially if you are charged with a felony. The statute carries severe penalties. However, a charge is not a conviction. An aggressive defense can lead to a dismissal, an acquittal, or a negotiation to a lesser offense that avoids incarceration. My primary goal is always to protect your liberty.
Can my business be shut down?
Yes. A conviction can lead to the revocation of your business licenses. The massive fines associated with a felony conviction can also bankrupt your company. Furthermore, the damage to your reputation can make it impossible to continue operating. Defending against the charge is essential to protecting your livelihood.
What does “reason to know” actually mean in court?
It means, would a reasonable person, in your specific position as a metal dealer, have been suspicious enough to believe the property was likely stolen? The jury will consider factors like the price, the seller’s behavior, the condition of the goods, and whether you followed all legal requirements for documentation. It is a dangerously subjective standard.
Do I need a lawyer for a charge like this in Minneapolis?
Absolutely. This is a complex crime with severe consequences that targets a specific industry. Prosecutors in Hennepin County are experienced and will aggressively pursue a conviction. You need a defense attorney who understands this specific statute, the scrap and precious metal industries, and how to fight these cases in court.
What if my employee is the one who bought the stolen goods?
As the owner, you can still be held criminally liable for the actions of your employee, especially if the state argues you fostered a culture of recklessness or failed to provide adequate training and oversight. However, we can argue that the employee acted as a “rogue agent” in direct violation of your policies, which can be a powerful defense for you personally.
How does the state determine the “value” of scrap metal?
This is a critical point of contention. The state will often try to use the highest possible value (e.g., the replacement cost of a new item). We will argue for the correct legal standard, which is the fair market value at the time of the theft. For a scrap dealer, this is almost always the much lower scrap value, not the retail value.
Can I be charged for not keeping proper records?
While failure to comply with Minnesota’s record-keeping laws for dealers (like getting IDs and thumbprints) is a separate regulatory violation, prosecutors will use that failure as powerful evidence against you in a criminal case. They will argue it shows a consciousness of guilt or a reckless disregard for the law, making it easier to prove you had “reason to know.”
What should I do if police come to my yard to investigate?
You should be polite and professional, but you must not consent to a search or answer any substantive questions without an attorney present. You should state clearly: “I do not consent to a search, and I will not answer any questions until I have spoken with my lawyer.” Then, call me immediately.
Will my other business assets be at risk?
Yes. If your business is convicted of a felony, the state may seek forfeiture of assets they claim are connected to the criminal activity. The massive fines can also force you to liquidate business assets to pay them.
What is a “second or subsequent” offense?
The statute has a harsh repeater clause. If you are convicted of this crime, and then charged again within one year, you can be sentenced at the highest felony level (up to 10 years in prison and a $50,000 fine) regardless of how low the value of the property in the second case is.
Can this charge be reduced to a lesser offense?
Yes. Often, a key goal is to negotiate with the prosecutor to reduce the charge. We can fight to get a felony reduced to a misdemeanor, or to have the charge amended to a non-theft offense that won’t be as damaging to your reputation and business licenses.
How can I protect my business from these charges in the future?
The best way is to have ironclad, written policies for all employees regarding purchasing and documentation. This includes strict adherence to ID, thumbprint, and record-keeping laws, as well as training on how to spot red flags. A strong compliance program can be a powerful defense if you are ever investigated.
If I am a convicted felon, can I still run my business?
It is extremely difficult. Many local and state business licenses are unavailable to convicted felons. You may also be unable to get insurance or banking services. And, as a felon, you will lose your right to possess a firearm, which can be a concern for business owners.
Is it too late to hire an attorney if I’ve already been charged?
No. It is never too late to secure a strong defense. The sooner you hire an attorney, the more time we have to build a case, but a dedicated lawyer can step in at any stage of the process to protect your rights and fight for a positive outcome.
Why not just try to explain the situation to the prosecutor myself?
The prosecutor is not your advisor; they are your adversary. Their job is to convict you. Anything you say to them can and will be twisted and used against you in court. You should never speak to the prosecution without your attorney acting as your shield and advocate.
The Ruin of a Conviction: More Than Just a Fine
A conviction for receiving stolen property as a dealer is a catastrophic event. The consequences are not temporary; they are a permanent stain on you and your business, with repercussions that will follow you for the rest of your life. It is crucial to understand what is truly at stake.
Losing Your Business and Livelihood
Beyond the prison time and fines, a conviction can mean the end of your business. State and local authorities can revoke the licenses and permits you need to operate legally. The felony conviction can make it impossible to secure loans, leases for commercial space, or insurance for your business. The financial and regulatory burdens can create a death spiral from which your company may never recover.
The Permanent “Felon” Label
Your reputation is your most valuable asset. A felony conviction destroys it. You will be branded as a “fence,” a dishonest dealer who profits from the crimes of others. This label will follow you throughout your industry and community. Other business owners will not want to deal with you. Customers will not trust you. The personal shame and professional ostracism can be devastating.
Loss of Firearm Rights and Other Civil Liberties
In Minnesota, a felony conviction means you lose your civil right to vote while you are serving your sentence and on probation or parole. You also lose the right to serve on a jury. Most critically for many business owners, you will be permanently banned from possessing any firearm or ammunition for the rest of your life. This is not a temporary suspension; it is a lifetime ban.
Banking and Insurance Nightmares
Financial institutions are wary of doing business with convicted felons. Your bank may close your personal and business accounts, viewing you as too high-risk. Insurance companies that provide liability and property coverage for your business will likely cancel your policies or refuse to renew them. Without access to basic financial and insurance services, running any legitimate business becomes nearly impossible.
Why a Tough Minnesota Defense Attorney is Your Best Investment
When the state has singled out your industry and is threatening you with a charge that could take everything, you cannot afford to take chances. You need a dedicated, aggressive defense attorney who understands the stakes and knows how to protect you, your business, and your future.
A Private Lawyer Protects Your Business Interests
Public defenders do heroic work, but their focus is on protecting the liberty of indigent individuals, not the complex assets and licensing issues of a business. As your private attorney, I understand that we are fighting on two fronts: keeping you out of prison and keeping your business alive. I will build a defense that is focused on both your personal freedom and your financial survival, something a public defender is simply not equipped to do.
Challenging the Subjective “Reason to Know” Standard
The “reason to know” standard is the government’s most powerful weapon, and successfully fighting it requires a nuanced and aggressive defense. It’s not enough to just say you didn’t know. We have to build a compelling case that shows your actions were reasonable, that you complied with industry standards, and that the state is unfairly using hindsight to create a crime. I know how to attack the state’s subjective arguments and present you as a prudent business owner.
Understanding the Scrap and Precious Metal Industry
To defend you properly, I need to understand your world. I will take the time to learn the ins and outs of your business operations—your pricing structures, your intake procedures, and the day-to-day realities of the market. This allows me to explain your actions to a judge or jury in a way that makes sense, countering the prosecutor’s narrative that every good deal is a criminal conspiracy. This level of dedicated preparation can make all the difference.
A Strategy for Total Vindication
My goal is not simply to get you a “better deal.” My goal is to win. From the moment I take your case, I am focused on achieving a complete dismissal or a not-guilty verdict at trial. We will prepare your case with the expectation of going to trial, which puts us in the strongest possible position to negotiate. You are facing a threat to your entire way of life. You deserve an attorney who will fight for nothing less than your total vindication.