Complying with federal regulations is no small feat—especially for small businesses trying to grow, stay agile, and maintain trust. A key area of concern that continues to affect many small companies is the handling of stolen property and avoiding violations under the CREW Act. With increasing enforcement from the federal government, now is the time for every small business owner to understand the law, avoid unnecessary penalties, and structure their operations to stay compliant.
This guide walks through what the CREW Act is, why it matters, what jail time, fines, or other punishments you could face for violations, and, most importantly, how to build a compliance-first culture to protect your business.
Understanding the CREW Act: What Small Businesses Need to Know
The Combating the Resale of Endangered and Stolen Goods (CREW) Act is part of a wider federal effort to combat trafficking in stolen property. Under this law, businesses that obtain, sell, store, or move potentially stolen goods—especially across state lines—can be held legally responsible, even if the theft was committed by someone else.
The CREW Act builds upon federal statutes like 18 U.S. Code § 2315, which makes it a felony to knowingly deal in stolen goods valued over $5,000. The Act also targets transportation, storage, and resale activities that could facilitate the movement of stolen goods. In some cases, businesses may face misdemeanor charges for smaller property or for failing to provide adequate notice or documentation, with fines and even probation imposed.
Small Business Guide to CREW Act Compliance: Avoiding Penalties: Why It Matters
Many businesses assume that if they didn’t steal the item themselves, they’re in the clear. But under the CREW Act, that’s not the case. If your business possesses, resells, or facilitates transactions involving items later found to be stolen, the law views your organization as part of the crime chain.
You could face different consequences as a result of possession as defined for a person. This includes and could determine various punishments like:
- Up to 10 years of jail time (in prison for felony convictions)
- Significant fines, often reaching tens of thousands of dollars
- Loss of business licenses, contracts, or eligibility for federal programs
- Civil sanctions imposed by government agencies
- Public notice of violation, which can damage your brand’s value
This means that compliance is not optional—it’s a legal requirement that affects your day-to-day operations, from inventory to recordkeeping. Moreover, the health and legal matters of such matters can also impact the implementation of the tasks.
What the Law Requires: How to Comply with Federal Regulations
To help businesses comply with the CREW Act, several key practices are recommended and often expected in case of an audit or court proceeding:
1. Verify All Incoming Property
Before accepting goods from vendors, demand documents proving ownership, such as receipts, title papers (especially for a car), and serial number tracking. Keep physical and digital copies organized by date.
2. Train Your Staff
Every employer should ensure that employees are trained to detect suspicious activity and know when to escalate to management or legal counsel. Using structured training programs within your office or facilities can reinforce your legal standing.
3. Maintain Complete Paper Trails
Use standardized forms for every acquisition and transaction. This includes contracts, delivery logs, payment confirmations, and supplier details. Proper documentation helps establish your intent to comply and can protect you in case a prosecutor opens an investigation.
4. Conduct Risk Assessments
Make compliance assessments part of your operational structure. Schedule regular reviews of vendors, audit inventory, and ensure alignment with current regulations and industry standards. If something seems off, flag it—and if necessary, report it.
What Happens If You’re Convicted of Possessing Stolen Property?
If your business ends up in violation of the CREW Act, the penalties depend on the circumstances, value of the goods, and whether it’s a first-time offense or you’ve been previously warned.
- Felony convictions can lead to prison time, up to 10 years, especially if large sums of money or cross-state transportation is involved.
- Misdemeanor charges may result in a shorter jail term or probation, but still come with reputational damage and financial consequences.
- You may be required to establish new internal controls, pay restitution, or undergo compliance oversight from regulatory departments.
The jurisdiction—whether it’s federal, state, or multi-agency—also affects the severity of punishments. You could be prosecuted by local officials, federal prosecutors, or both, depending on the offense.
Establishing a Responsible, Compliant Business Culture
Avoiding violations isn’t just about following rules—it’s about building a culture of responsibility, transparency, and risk awareness. This protects your business, your employees, and your customers.
Here’s what a compliant small business looks like:
- Performs due diligence before buying goods
- Keeps strong financial records
- Maintains secure, traceable contracts and transaction logs
- Understands the legal jurisdiction its business operates within
- Communicates with customers and vendors openly, reducing the chance of deception
Whether you’re in resale, transportation, finance, or general retail, compliance helps you avoid violations that could cost far more than just money—they could cost your reputation.
Small Business Guide to CREW Act Compliance: Final Thoughts
At its core, the Small Business Guide to CREW Act Compliance is about staying proactive. If your business interacts with goods that change hands—whether you’re selling electronics, accepting trade-ins, handling logistics, or even offering financial services—then you’re in the legal spotlight.
By staying informed, documenting every transaction, and fostering a culture of due diligence, you reduce the risk of being convicted or facing a violation.
The CREW Act may seem like one more hurdle in an already complicated regulatory details, but in truth, it’s an opportunity. A chance to tighten your structure, solidify your processes, and ensure long-term sustainability in a market that values honesty and accountability.
Get Legal Clarity: Work With Bourassa Law Group
Compliance isn’t something to figure out after the fact. Whether you’ve received a notice from authorities, are updating your internal systems, or just want to ensure your practices are sound, the Bourassa Law Group is here to help.
Our experienced legal team understands the CREW Act, federal regulations, and the challenges small businesses face when handing compliance. We can help you establish legally sound procedures, defend your rights in court, and offer peace of mind.
Contact Bourassa Law Group today to safeguard your business and move forward with confidence.
1-800-870-8910