Germany Seizes $16 Million in Counterfeit Dollars

German police seized a cache of forged US$100 banknotes with a face value of US$16 million (€11.9 million) in a series of raids this week and made three arrests, on Friday, May 25.^[1] Officers searched 21 properties in Cologne, Frankfurt and other German cities on Tuesday as part of an investigation that began in October of 2006 and involved the U.S. Secret Service.^[2]

Three German men were arrested and ordered to be held in custody pending possible charges of producing and distributing the forgeries, the office said in a statement.^[3] Two of the unidentified men had previous convictions for forging counterfeit currency.^[4] The German Federal Crime Office said only 18 of the banknotes, which Germany's central bank described as high-quality forgeries, ever landed in the stream of commerce.^[5] The raids also turned up equipment for forging euro notes - along with amphetamines, cocaine and several guns. Some of the suspects also had relabeled inexpensive wines as vintage bottles, selling them for as much as €3,000 (US$4,000) apiece via online auctions.^[6]

Although counterfeiting has diminished substantially since the establishment of European special law enforcement units assigned specifically to fight counterfeiting, the crime continues to present a potential danger to national economies and financial losses to consumers.^[7] Interpol has just hosted, in The Hague, the 1st International Conference on the Protection of the Euro against Counterfeiting.^[8] The objective of the conference was to address topical counterfeiting issues of relevance to participants with a view to stimulating discussion on issues aimed at protecting the Euro against counterfeiting.

However the U.S. also can prosecute counterfeiters outside the U.S., transnational counterfeiting is covered under 18 U.S.C. § 470 which states that a person outside the United States who engages in the act of 1) making, dealing, or possessing any counterfeit obligation or other security of the United States;^[9] or 2) making, dealing, or possessing any plate, stone, analog, digital, or electronic image, or other thing, or any part thereof, used to counterfeit such obligation or security,^[10] if such act would constitute a violation of sections 471, 473, or 474 if committed within the United States, shall be punished as is provided for the like offense within the United States.

18 U.S.C. §471 states that whoever, with intent to defraud, falsely makes, forges, counterfeits, or alters any obligation or other security of the United States, shall be fined under this title or imprisoned not more than 20 years, or both.^[11]

18 U.S.C. §473 states that a person who buys, sells, exchanges, transfers, receives, or delivers any false, forged, counterfeited, or altered obligation or other security of the United States, with the intent that the same be passed, published, or used as true and genuine, shall be fined under this title or imprisoned not more than 20 years, or both.^[12]

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^[1] AP Wire, Germany seizes US$16 million in forged dollar bills, Associated Press Newswire, May 25, 2007.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] Interpol Website, Counterfeit Currency, available http://www.interpol.int/Public/FinancialCrime/CounterfeitCurrency/Default.asp (last visited May 30, 2007).
^[8] Id.
^[9] 18 U.S.C. § 470 (1) (2007).
^[10] Id. at (2).
^[11] 18 U.S.C. §471 (2007).
^[12] 18 U.S.C. §473 (2007).