Fence (criminal)

A fence or receiver is an individual who knowingly buys stolen property for later resale, sometimes in a legitimate market. The fence thus acts as a middleman between thieves and the eventual buyers of stolen goods who may not be aware that the goods are stolen. As a verb, the word describes the behaviour of the thief in the transaction: The burglar fenced the stolen radio. This sense of the term came from thieves' slang, first attested c. 1700, from the notion of such transactions providing a defence against being caught.

The fence is able to make a profit with stolen merchandise because he/she is able to pay thieves a very low price for stolen goods. They then disguise the stolen nature of the goods, if possible, so that they can sell them closer to the white market price. This process often relies on a legal business conducting legal sales. Fencing is illegal in all countries, but legally proving a violation of anti-fencing laws can be difficult.

The fence is able to make a profit with stolen merchandise because he is able to pay thieves a very low price for stolen goods. Thieves agree to this because their alternatives may present a greater risk of the thief being caught. As well, selling stolen goods takes a great deal of time and effort (transaction costs), as the thief would have to try to contact a number of potential buyers and show them the merchandise. Some habitual thieves are so well known to police that if the thief were to attempt to sell any used goods, this would quickly draw the attention of the police.

The fence then disguises the stolen nature of the goods, if possible, so that he or she can sell them closer to the market price. Depending on the stolen item, the fence may attempt to remove, deface, or replace serial numbers on the stolen item before reselling it. In some cases, fences will transport the stolen items to a different city to sell them, because this lessens the likelihood that the items will be recognized. For some types of stolen goods, fences disassemble the good and sell the individual parts, because the sale of parts is less risky. For example, a stolen car or bicycle may be disassembled so that the parts can be sold individually. Another tactic used by some fences is to retain stolen items for some time before selling them, which lessens the likelihood that the burglary victims or police will be actively looking for the items in auctions and pawnshops.

Fencing is often conducted through legal businesses. Some fences maintain a legitimate-seeming "front" through which they can sell stolen merchandise. Depending on the type of stolen merchandise a fence deals in, "front" businesses might be discount stores, used goods stores, a coin and gem store, auction house, flea market, or auto salvage yards. The degree of illicit activity in each "front" business may differ from fence to fence. While one fence's salvage yard may consist mainly of stolen auto parts, another fence's used goods store might consist mainly of legitimately purchased used goods, with the stolen merchandise acting as a minor, but profitable, sideline.

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