Vehicle Code § 10801 VC – Operating a “Chop Shop” – California Law

California Vehicle Code § 10801 VC makes it a crime knowingly to own or operate a “chop shop.” This offense can be charged as a misdemeanor or a felony, and is punishable by up to four years in jail or prison.

The full language of the code section reads that:

10801. Any person who knowingly and intentionally owns or operates a chop shop is guilty of a public offense and, upon conviction, shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for two, three, or four years, or by a fine of not more than fifty thousand dollars ($50,000), or by both the fine and imprisonment, or by up to one year in the county jail, or by a fine of not more than one thousand dollars ($1,000), or by both the fine and imprisonment.

What is a “chop shop”?

A “chop shop” is any place where someone knowingly:

• alters, takes apart or stores a stolen motor vehicle or vehicle part,
• for the purpose of selling or disposing of it, or hiding its identity.¹

Penalties 

Operating a chop shop is a wobbler offense. It can be charged as either a felony or a misdemeanor, at the prosecutor’s discretion.

If charged as a felony, the penalties for operating a California chop shop include:

• up to four years in county jail, and/or
• a fine of up to $50,000.²

If charged as a misdemeanor, the penalty is:

• up to one year in county jail, and/or
• a fine of up to $1,000.³

Defenses to charges of operating a California chop shop

Legal defenses to Vehicle Code 10801 charges include (but are not limited to):

• The business was not a “chop shop”
• You didn’t operate the chop shop
• You didn’t know the vehicle or parts were stolen
• You were just repairing the vehicle
• You didn’t know that the vehicle or parts were intended for sale
• The chop shop was discovered during an illegal search

Our firm’s lawyers include former prosecutors and cops. We now use our inside knowledge of the system to defend people accused of California crimes.

To help you better understand the legal nuances of operating a chop shop, our California criminal defense attorneys will discuss:

• 1. The legal definition of 10801 VC “chop shop”
• 2. Elements of the crime
  • 2.1. “Operating” a chop shop
  • 2.2. “Knowingly” operating a chop shop
• 3. Defenses
• 4. Penalties
• 5. Warrantless inspections of auto shops
• 6. Related offenses
  • 6.1. Penal Code 496 PC – receiving stolen property
  • 6.2. Vehicle Code 10802 VC – tampering with a VIN with intent to misrepresent
  • 6.3. Vehicle Code 10750 VC – misdemeanor VIN tampering
  • 6.4. Vehicle Code 10803 VC – buying or possessing vehicles with tampered VINs
  • 6.5. Vehicle Code 4463 VC – fraudulent vehicle registration

1. The legal definition of 10801 VC California “chop shop”

California Vehicle Code 250 VC defines a “chop shop” as:

1. a building, lot, or other premises;
2. where anyone has been
   • altering,
   • destroying,
   • disassembling,
   • dismantling,
   • reassembling, or
   • storing
3. any motor vehicle or motor vehicle part
4. obtained by
   • theft,
   • fraud, or
   • conspiracy;
5. so as to:
   • alter,
   • counterfeit,
   • deface,
   • destroy,
   • disguise,
   • falsify,
   • forge,
   • obliterate, or
   • remove the identity (including the vehicle identification number) of such motor vehicle or part;
6. for the purpose of:
   • misrepresenting the identity, or preventing identification, of the motor vehicle or part, or
   • selling or disposing of the motor vehicle or part.⁴

2. Elements of the crime

To prove you guilty of violating California Vehicle Code 10801, the prosecutor must prove that:

1. You knowingly and intentionally operated a chop shop;
2. You knew the vehicle or vehicle part was obtained by theft, fraud or conspiracy to defraud; AND
3. You knew that the vehicle or part was obtained in order to:
   • Sell or dispose of the vehicle or part, OR
   • Alter, disguise, or remove it so as to misrepresent its identity or prevent its identification.⁵

2.1. “Operating” a chop shop

It is not necessary for you to own or supervise operations at a chop shop in order for you to be guilty under California Vehicle Code 10801 VC.

It is enough that you were actively involved in the chop shop’s operation.⁶

Nor is it necessary that the chop shop be a planned or continuous operation.⁷

2.2. “Knowingly” operating a chop shop

California Vehicle Code 10801 VC requires that you knew that:

• You were involved in a chop shop, AND
• The vehicle or vehicle part was not lawfully obtained, AND
• You knew the vehicle part was obtained in order to disguise its identity or unlawfully sell it.⁸

Proving what you knew can be difficult for the prosecutor. Usually, he/she must rely on circumstantial evidence. A jury can convict you if the “totality” of such evidence establishes your guilt.

Example: The police observe Jaime take part in auto theft. They obtain a warrant to search Jaime’s apartment, located over a suspected chop shop. They find several driver’s licenses with Jaime’s picture, all with different names. They also find numerous California DMV change of ownership documents.

In Jaime’s living room, the police find a key to a shed out back. The shed contains tools used for altering vehicle identification number (“VIN”) tags. Taken together, the evidence is sufficient to find Jaime guilty of operating a chop shop.⁹

3. Defenses

Because so much knowledge is required to prove you guilty of operating a chop shop, there are many possible defenses. Here are just a few:

• The business was not a “chop shop”
  Example: Adam owns an auto repair business. Unbeknownst to him, some of his employees are stealing parts from the vehicles and replacing them with cheap-knock off parts. They then sell the stolen parts for more money. Because Adam doesn’t know they are doing this, he is not guilty of operating a chop shop.
• You didn’t operate the chop shop
  Example: Brian works on weekends as a gopher for a chop shop. He gets coffee and lunch for other people, but doesn’t work on any of the cars. Because he is not an active participant in the chop shop’s operations, Brian is probably not guilty of “operating” a chop shop.
• You didn’t know the vehicle or parts were stolen
  Example: Joanna owns a custom auto body shop. She doesn’t know that some of the cars are brought in by an auto theft ring looking to change the cars’ appearance. Even though Joanna completely changes the cars, because she doesn’t know they are stolen, she isn’t guilty of operating a chop shop.
• You were just repairing the vehicle
  Example: Edith works as a mechanic. Some of the cars she repairs have been stolen and intended for resale. However, since she doesn’t know they are stolen, and she isn’t altering them or trying to hide their identity in any way, Edith doesn’t meet the definition of operating a chop shop.
• You didn’t know that the vehicle or parts were intended for sale
  Example: Frank works in an auto repair shop. One day the owner has Frank remove some parts from a couple of the cars and replace them with cheaper knock-offs. Frank thinks the owner is using them to rebuild cars for the owner’s personal use. Since he doesn’t know the owner intends to sell the parts, Frank isn’t guilty of operating a chop shop.
• The chop shop was discovered during an illegal search
  Example: George stole a car, took it home, and dismantled it. An LAPD officer, acting on a tip from a neighbor, entered the garage without a warrant. When he found the car, he arrested George for operating a chop shop. Because the search was on private property and the officer didn’t obtain a warrant, it was an illegal search in violation of the Fourth Amendment. George’s California criminal defense attorney should be able to get George’s case thrown out.

4. Penalties

California Vehicle Code 10801 is a wobbler offense. This means the prosecutor has the discretion to charge it as either a felony or a misdemeanor.

Factors the prosecutor may consider in deciding how to charge you may include:

• How many vehicles or vehicle parts were involved;
• The scope of the chop shop’s operations;
• The total monetary value of the damage; and
• Your criminal history, if any.

As a misdemeanor, operating a chop shop carries a penalty of:

• up to one year in county jail, and/or
• a fine of up to $1,000.¹⁰

As a felony, operating a chop shop can be punished by:

• up to four years in county jail, and/or
• a fine of up to $50,000.¹¹

Alternatively, the judge has the discretion to sentence you to:

• Summary (misdemeanor) probation,¹² or
• Formal (felony) probation.¹³

If you are sentenced to probation, you may serve little to no jail time. But you will be subject to supervision and certain conditions. These conditions may include:

• Regular meetings with a probation officer,
• Payment of restitution to your victim(s),
• Participation in individual or group therapy,
• Performance of community service or community labor
• Agreement to submit to searches of your person or property with or without a warrant, and/or
• Compliance with orders not to associate with gang members.

If you violate any terms of your probation, the judge can order you to go to jail for up to the maximum sentence.

5. Warrantless inspections of auto shops

California Vehicle Code 2805 PC permits law enforcement officers and investigators to inspect vehicles and auto shops without a search warrant.¹⁴

Such inspections do not violate the Fourth Amendment as long as:

• They are for the purpose of locating stolen vehicles,¹⁵ and
• They take place at a time, and in a manner, that minimally interferes with business operations.¹⁶

Vehicle Code 2805 does not allow law enforcement officers to enter purely private property without a search warrant. Warrantless searches are only permitted on premises in which cars are worked on as a business.¹⁷

6. Related offenses

6.1. Penal Code 496 PC – receiving stolen property

Under California Penal Code 496 PC, receiving stolen property is a crime.¹⁸ In order for Penal Code 496 to apply, you must know that the property has been stolen.

Penal Code 496 PC is a wobbler offense. It may be charged as either a felony or a misdemeanor.

If charged as a misdemeanor, penalties for receiving stolen property include:

• up to one (1) year in county jail, and/or
• a fine of up to one thousand dollars ($1,000).¹⁹

If charged as a felony, Penal Code 496 can be punished by:

• 16 months, two years or three years in county jail, and/or
• a fine of up to $10,000.²⁰

In addition, regardless of whether you are charged with a misdemeanor or a felony, you face a possible civil suit by the owner of the stolen property for:

• three times the amount of his/her actual damages, plus
• his/her costs of the suit, including reasonable attorney’s fees.²¹

You cannot be convicted of stealing stolen property and receiving that same property.²²

You also can’t be convicted for stealing stolen property and then operating a chop shop based on the same property. This is because receiving stolen property is a “lesser-included offense” of operating a chop shop as long as both charges are based on the same property.²³

6.2. Vehicle Code 10802 VC – tampering with a VIN with intent to misrepresent

California Vehicle Code 10802, tampering with a VIN, is another law aimed at “chop shop” activities. It punishes knowingly altering a vehicle identification number (VIN) if you do so:

1. with the intent to misrepresent the identity of a vehicle or vehicle part,
2. so that it can be sold, transferred, imported or exported.²⁴

Vehicle Code 10802 is a California “wobbler” offense. If charged as a misdemeanor, it can be punished by:

• up to one year in county jail, and/or
• a fine of up to $1,000.²⁵

If charged as a felony, Vehicle Code 10802 carries a possible penalty of:

• 16 months, or two or three years in county jail, and/or
• a fine of up to $25,000.²⁶

6.3. Vehicle Code 10750 VC – misdemeanor VIN tampering

California Vehicle Code 10750 VC, intentionally altering or destroying a VIN, is similar to Vehicle Code 10802, except that the prosecutor does not need to prove that the vehicle or part was intended for sale.

Tampering with a VIN is a misdemeanor under Vehicle Code 10750. It can be punished by:

• up to one year in county jail, and/or
• a fine of up to $1,000.²⁷

6.4. Vehicle Code 10803 – buying or possessing vehicles with tampered VINs

Another law targeting chop shops is California Vehicle Code 10803 VC, buying or possessing vehicles with tampered VIN numbers.

You violate Vehicle Code 10803 VC when you buy or possess more than one vehicle (or parts from more than one vehicle) with altered VINs for the purpose of selling them.

Vehicle Code 10803 is a “wobbler” offense.

As a misdemeanor, it is punishable by:

• up to one year in county jail, and/or
• a fine of up to $1,000.

As a felony, the punishment depends on whether you possessed such vehicles or parts or you actually purchased them.

Possessing such vehicles or parts is punishable under Vehicle Code 10803(b).

As a felony, it can be punished by:

• 16 months, or two or three years in county jail, and/or
• by a fine of up to $30,000.²⁸

Purchasing such vehicles or parts is punishable under Vehicle Code 10803(a).

As a felony, it can be punished by:

• two, four, or six years in county jail, and/or
• a fine of up to $60,000.²⁹

Vehicle Code 10803 does not apply to a motor vehicle scrap processor who legally processes a motor vehicle or motor vehicle part by crushing or compacting, provided the VIN is not removed during processing.³⁰

6.5. Vehicle Code 4463 – fraudulent vehicle registration

It is a crime under California Vehicle Code 4463 VC, fraudulent vehicle registration, to intentionally interfere with:   a vehicle license plate, vehicle license stickers, or a California DMV registration card to secure a financial gain or avoid paying DMV taxes and fees.   Acts that violate Vehicle Code 4463 VC include:

1. Doing any of the following to a vehicle registration card or registration stickers:

• altering,
• forging,
• counterfeiting, or
• falsifying;

OR

2. Possessing a vehicle registration card or registration stickers which are:

• fraudulently displayed,
• blank,
• incomplete,
• canceled,
• suspended,
• revoked,
• altered,
• forged,
• counterfeit, or
• false

OR

3. Publishing, passing, or attempting to pass as true and genuine a false, altered, forged, or counterfeited vehicle registration card or sticker.³¹

Vehicle Code 4463 VC is a wobbler offense. If charged as a misdemeanor, it is punishable by:

• up to one year in county jail, and
• a fine of up to $1,000.³²

If charged as a felony, the penalty is:

• 16 months, or two or three years in county jail, and
• a fine of up to $10,000.³³

In addition, the California DMV may refuse to issue or renew a driver’s license or registration if it believes you committed fraud in any application.

For more information about California chop shop laws, or to discuss your case confidentially with one of our criminal defense attorneys, please don’t hesitate to contact us at Shouse Law Group. Our California criminal law offices are located in and around Los Angeles, Orange County, San Diego, Riverside, San Bernardino, Ventura, San Jose, Oakland, the San Francisco Bay area, and several nearby cities.

We also invite you to watch our Youtube video on Vehicle Code 10801 – Operating a Chop Shop.

Arrested in Nevada? See our article on the Nevada crime of operating a chop shop.

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