Yes, it can be. Penal Code section 537e makes it a crime for anyone who “knowingly buys, sells, receives, disposes of, conceals, or has in his or her possession” personal property whose manufacturer’s serial number, identification number, electronic serial number, or other distinguishing number or identification mark has been removed, defaced, covered, altered, or destroyed. The statute does not require proof that the item was stolen.

The penalty tiers

Section 537e(a) sets three levels of exposure:

  • If the property is worth $950 or less, up to six months in county jail.
  • If the property is worth more than $950, up to one year in county jail.
  • If the property is an integrated computer chip or panel worth $950 or more, up to one year in county jail or a felony term of 16 months, two years, or three years under Penal Code section 1170(h). Section 1170(h) normally sends that felony term to county jail, not state prison; state prison applies only in listed situations, such as a current or earlier conviction for a serious or violent felony, a duty to register as a sex offender, or a section 186.11 enhancement.

What counts as “personal property” here

Section 537e(b) says personal property “includes, but is not limited to” a list of examples. The list includes “any television, radio, recorder, phonograph, telephone, piano, or any other musical instrument or sound equipment,” which covers a phone. Other entries cover any computer, printed circuit, integrated chip or panel, or other computer part, which covers a laptop, and any bicycle, along with household appliances, tools, and vehicles.

What “knowingly” requires

The Penal Code’s general definition says “knowingly” means “a knowledge that the facts exist which bring the act or omission within the provisions of this code,” and that it does not require knowing the act is unlawful (Penal Code section 7(b)(5)). Here, that means knowing the number or mark had been removed, defaced, covered, altered, or destroyed; you do not have to know that the law forbids possessing the item.

Why this is not the same as receiving stolen property

This statute is easy to confuse with California’s receiving stolen property law, Penal Code section 496, but the two work differently. Section 496 requires proof that you knew the property “to be so stolen or obtained.” Section 537e contains no such requirement. It is built around knowingly buying, selling, receiving, disposing of, concealing, or possessing property in the altered condition, so prosecutors do not have to trace the item to a theft to charge it.

The narrow exception for manufacturers

Under section 537e(d), the law does not apply where the change was “customarily made or done as an established practice in the ordinary and regular conduct of business” by the original manufacturer, by the manufacturer’s “duly appointed direct representative,” or under specific authorization from the original manufacturer. This exception covers the manufacturing side. It is not a good-faith defense for an ordinary secondhand buyer; a buyer who did not know about the missing number would instead dispute the knowledge element.

What happens to the item, and what to do

If property like this comes into a peace officer’s custody, section 537e(c) treats it as stolen or embezzled property for purposes of the Penal Code’s disposal procedures, and it must have an identification mark embedded, engraved, or permanently affixed before it is disposed of.

If you bought or received an item and later noticed the serial number was missing or altered:

  • Keep any proof of purchase, such as a receipt, listing, or payment record, showing where and how you got it.
  • Do not remove, alter, or further damage the serial number area, and do not try to dispose of the item to avoid a problem.
  • Talk with a lawyer before explaining the item’s condition to police, since what you knew and when you knew it is the central question in this kind of case.

The Law Offices of David S. Chesley can review how you acquired the item and whether the knowledge element the law requires can actually be proven. Call (800) 755-5174 to discuss your case.