Business & Professions Code 21628 – Failure to Report by Pawnbroker

California Business and Professions Code 21628 BPC makes it a misdemeanor for a pawnbroker to knowingly fail to comply with certain mandatory reporting requirements regarding property that is bought, traded, or received. Penalties for a first-time offense include up to two months in jail and/or $1,500 in fines.

21628 BP states that “Every secondhand dealer or coin dealer…shall report daily, or no later than the next business day excluding weekends and holidays after receipt or purchase of secondhand tangible personal property, to the California Pawn and SecondhandDealer System (CAPSS), all secondhand tangible personal property, except for firearms, which they have purchased, taken in trade, taken in pawn, accepted for sale on consignment, or accepted for auctioning…”

Examples

• Dominique runs a pawnshop, buys a collection of antique knives, and does not file a report on them.
• Pawnbroker California, Inc. trades for some sports collectibles and does not file a report.
• Lisa is a pawnbroker, takes in a stereo, and fails to report it.

Defenses

Three legal defenses you can raise are:

1. you are not a pawnbroker,
2. you were falsely accused, and/or
3. you were arrested without probable cause.

Our California criminal defense attorneys will explain the following in this article:

• 1. What is prohibited under Business and Professions Code 21628?
• 2. Are there legal defenses if accused?
  • 2.1 You are not a pawnbroker
  • 2.2 You were falsely accused
  • 2.3 You were arrested without probable cause
• 3. What are the penalties for a pawnbroker failing to report?
• 4. Related offenses
  • 4.1 Deceptive identification documents – BPC 22430
  • 4.2 Receiving stolen property – PC 496a
  • 4.3 False advertising – BPC 17500

1. What is prohibited under Business and Professions Code 21628 BPC?

Business and Professions Code 21628 BPC is the California statute that makes it a crime for a pawnbroker to fail to comply with certain reporting requirements.

A prosecutor must prove three things to convict you under this statute successfully:

1. You were a secondhand dealer or coin dealer,
2. You did not report daily, or on the first working day after you purchased, took in trade or pawn, or accepted for sale on consignment, to the sheriff or to the chief of police, and
3. You did not report using the correct forms.¹

2. Are there legal defenses if accused?

Here at Shouse Law Group, we have represented literally thousands of people accused of reporting-related crimes. In our experience, the three most effective defenses to charges of failure to report by a pawnbroker are:

1. You are not a pawnbroker;
2. You were falsely accused; and/or
3. You were arrested without probable cause.

2.1. You are not a pawnbroker

BPC 21628 applies only to pawnbrokers – or, “secondhand dealers or coin dealers.” This means it is always a sound legal defense to show that you were not one of these entities or persons.

This defense is particularly helpful if we can show that you were not licensed as a pawnbroker at the time of the alleged incident.

2.2. You were falsely accused

Perhaps someone falsely accused you out of

• jealousy,
• revenge,
• anger, or
• a genuine misunderstanding.

In these cases, we compile all the recorded communications we can by your accuser to reveal their motivation to lie. As long as we can raise a reasonable doubt as to your guilt, the D.A. should drop the case.

2.3. You were arrested without probable cause

The Fourth Amendment to the U.S. Constitution says that police must have probable cause before they can detain or arrest you for a crime. So we would subpoena all the available body cam and dash cam footage to demonstrate that the police apprehended you without a legal basis.

If we are successful, the prosecutor may be persuaded to dismiss the charges.

3. What are the penalties for a pawnbroker failing to report?

Violating BPC 21628 is a misdemeanor when you knew or should have known that you were committing a violation. Penalties increase with each successive conviction:

BPC 21628 crime	California misdemeanor penalties
First offense	Up to $1,500 and/or 2 months in jail
Second offense	Up to $5,000 and/or 4 months in jail
Subsequent offense	Up to $25,000 and/or 6 months in jail

In lieu of jail time, a judge may grant misdemeanor (or summary) probation.²

4. Related offenses

There are three crimes related to failure to report by a pawnbroker. These are:

1. deceptive identification documents – BPC 22430
2. receiving stolen property – PC 496a, and
3. false advertising – BPC 17500.

4.1. Deceptive Identification Documents – BPC 22430

California Business and Professions Code 22430 BPC is the California statute that makes it a crime to manufacture or sell deceptive identification documents.

Examples of a “deceptive identification document” include a:

• driver’s license,
• identification card,
• birth certificate,
• passport, and
• social security card.³

A violation of Business and professions Code 22430 is a wobbler offense under California law. This means it can be charged as either a misdemeanor or a felony.

If charged as a misdemeanor, the crime is punishable by imprisonment in the county jail for up to one year.⁴

If charged as a felony, the offense is punishable by imprisonment in the state prison for up to three years.⁵

4.2. Receiving stolen property – PC 496a

Penal Code 496a is the California statute that defines the crime of “receiving stolen property.”

This section makes it a crime to

• buy,
• receive,
• conceal,
• sell, or
• withhold from the owner

any property that you know to be stolen.⁶

In most cases, a violation of PC 496a may be charged as either a California misdemeanor or felony.

However, if the total value of the property involved is nine hundred fifty dollars ($950) or less, then receiving stolen property can only be charged as a misdemeanor.⁷

Potential misdemeanor penalties under this statute include:

• up to one year in county jail, and/or
• a fine of up to $1,000.⁸

For receiving stolen property charged as a felony, potential consequences include:

• 16 months, two years, or three years in county jail, and/or
• a fine of up to $10,000.⁹

4.3. False advertising – BPC 17500

California Business and Professions Code 17500 BPC is the California statute that makes false advertising a crime.

Violating BPC 17500 is a misdemeanor.¹⁰ The offense is punishable by:

• imprisonment in the county jail for up to six months; and/or,
• a fine not to exceed $2,500.¹¹

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