Retail Fraud in Michigan: 1st, 2nd, and 3rd Degree Penalties, and What Happens After a Fairlane Stop

Most retail fraud cases in Dearborn start the same way: a stop at the exit of a store at Fairlane Town Center or on Michigan Avenue, a few hours in a loss prevention office, and a yellow appearance ticket with a court date on it. By the time the person gets home, two things are already in motion that they did not expect. A criminal case at the 19th District Court, and a civil demand letter from the store’s law firm that will arrive within a week or two.

Here is how Michigan grades the charge, what each degree exposes you to, what the demand letter is, and what a first offense can realistically turn into if it is handled before the plea instead of after.

The Short Version

Michigan does not have a shoplifting statute. It has retail fraud, under MCL 750.356c and 750.356d, which covers taking merchandise without paying, altering or switching a price tag, and getting a refund or exchange for something that was not bought. The degree is set by two things: the value of the property and whether you have a prior conviction.

Degree	Value	With a prior retail fraud conviction	Classification	Maximum jail or prison	Maximum fine
Third degree	Under $200	Moves up to second degree	Misdemeanor	93 days	$500 or 3x the value
Second degree	$200 to under $1,000	Moves up to first degree	Misdemeanor	1 year	$2,000 or 3x the value
First degree	$1,000 or more	Same	Felony	5 years	$10,000 or 3x the value

Two details make the table sharper than it looks. The prior that bumps a case up does not have to be another retail fraud; a prior larceny or similar theft conviction counts too. And the statute lets the prosecutor add up the value of separate incidents within a 12-month period, which is how a string of small thefts caught on one store’s video becomes a single first-degree felony charge.

Third Degree: The First-Offense Charge

Under $200 and no prior means third-degree retail fraud: a 93-day misdemeanor. It is the charge most people reading this page are facing, and it is the one with the most room to move.

Jail on a first-offense third degree is uncommon in Wayne County district courts for someone with a clean record, but the sentence is not the real cost. A theft conviction is. Retail fraud sits on a background check as a crime of dishonesty, and employers in healthcare, finance, education, and anything requiring a license treat it differently from a traffic offense. That is why the goal in a third-degree case is to avoid the conviction rather than to shave the sentence, and the routes to that are covered below.

In Dearborn, third-degree retail fraud is often charged under the city ordinance rather than the state statute, which means the city attorney’s office prosecutes it in the 19th District Court rather than the Wayne County Prosecutor. The practical effect is that the person deciding whether to offer a non-theft plea or a deferral is a local prosecutor with a local docket, and attorneys who are in that courtroom every week know what gets offered and what does not.

Second Degree: Still a Misdemeanor, but a Year

Between $200 and $1,000, or under $200 with a prior, the charge is second-degree retail fraud: up to a year in jail and a $2,000 fine. It is still a misdemeanor and still a district court case, but the exposure doubles and the prosecutor’s willingness to negotiate a non-theft outcome drops, especially when the degree was reached because of a prior.

The $200 line is also where disputes over value start. Retail fraud is measured by the retail price the store was asking, and the store’s loss prevention report sets that number. A sale price, a damaged item, or a miscounted quantity can move a case across the line in either direction, and checking the math is one of the first things a defense attorney does with the report.

First Degree: The Felony

$1,000 or more, or $200 to $1,000 with a prior, is first-degree retail fraud, a felony with up to five years in prison. A felony case does not stay in the district court. It starts there with an arraignment, a probable cause conference, and a preliminary examination, and if the judge finds probable cause it is bound over to the Wayne County Circuit Court’s Criminal Division. Our guide to what happens at an arraignment in Michigan covers that sequence.

The 12-month aggregation rule is what produces most first-degree charges against people who never took $1,000 at once. Loss prevention departments at large retailers keep video and transaction logs, and when they identify a repeat visitor they build a file before calling the police. The charge that arrives is the total.

The Civil Demand Letter

Within days of the stop, a letter arrives from a law firm representing the store. It cites MCL 600.2953 and demands money: ten times the retail price of the merchandise, with a floor of $50 and a cap of $200, plus the full retail price of anything that was not recovered in sellable condition. It usually gives 30 days.

Three things to know about it:

• It is a separate civil claim. Paying it does not dismiss the criminal case, and the criminal case ending does not cancel it.
• Ignoring it has a cost. The statute lets the store sue for the amount plus court costs and attorney fees if the demand is not paid.
• Anything you say in response can be used in the criminal case. Do not call the number on the letter to explain what happened. Hand the letter to your attorney, who will usually resolve it for the statutory amount without a statement.

The store will also hand you a trespass notice at the time of the stop, banning you from the property, sometimes from every location in the chain. Returning while that notice is in effect is a separate charge.

What Happens After a Stop in Dearborn

Michigan law lets a store detain a suspected shoplifter for a reasonable time and in a reasonable manner while police are called, so the hour in the back office is lawful even though it does not feel that way. Dearborn police respond, take the loss prevention report and the video, and for a third-degree case will generally issue an appearance ticket and release you. A felony-level amount, a prior, or a problem at the scene can mean an arrest instead.

The appearance ticket sets your arraignment at the 19th District Court at 16077 Michigan Avenue. Three things matter about that date. It is the first time a prosecutor and a judge look at the case, so having counsel by then is the difference between a scheduled negotiation and a rushed plea. The plea entered that day should be not guilty, because a guilty plea to retail fraud at the arraignment is the one decision in the case that cannot be undone. And missing the date produces a bench warrant, which turns a 93-day misdemeanor into an arrest problem.

How a First Offense Can End Without a Theft Conviction

This is the part the appearance ticket does not explain. For a first-offense third-degree case with a cooperative client, the realistic outcomes in Wayne County district courts include:

• A plea to a non-theft offense. Where the prosecutor agrees, the retail fraud charge is replaced by something that does not read as dishonesty on a background check, often an ordinance offense. This is negotiated rather than automatic, and it is the single most common good outcome.
• A delayed sentence under MCL 771.1. The court accepts a plea but delays sentencing for up to a year; if the conditions are met, the charge can be reduced or dismissed at the end.
• The Holmes Youthful Trainee Act. For defendants who were 18 to 25 at the time of the offense, HYTA status means no public conviction if the terms are completed. Many Fairlane cases involve exactly this age group.
• A dismissal on the evidence. Retail fraud requires intent. An item on the bottom rack of the cart, a self-checkout that failed to scan, a child who put something in a bag, or a price tag that was already wrong are all intent problems for the prosecutor, and the video sometimes helps the defense more than the store. Those cases get dismissed or tried, and the loss prevention report alone does not decide them.

Which of these is available depends on the record, the amount, the store, and the courtroom. Every one of them has to be asked for before a plea is entered.

If Immigration Status Is Part of Your Life

Theft offenses are generally treated as crimes involving moral turpitude under federal immigration law. A retail fraud conviction, including a third-degree misdemeanor, can affect a visa renewal, an adjustment of status, a green card application, or naturalization, and in some situations removal. For a large share of the clients who walk into our Dearborn office with a Fairlane appearance ticket, this is the actual stakes of the case, well beyond the 93 days.

A defense attorney has a constitutional obligation to advise a non-citizen client about immigration consequences before a plea, and the right plea structure (a non-theft offense, a deferral that never becomes a conviction, or a dismissal) is chosen with that analysis in front of it. Tell your attorney your status at the first meeting, in confidence; it changes the strategy.

Will It Come Off My Record?

A misdemeanor retail fraud conviction is generally eligible to be set aside under Michigan’s Clean Slate law by petition after the waiting period runs, and many misdemeanors now clear automatically after seven years. A felony first-degree conviction has a longer wait and a petition requirement. Either way, the better path is the one above: an outcome that never becomes a conviction does not need to be expunged. Our expungement practice handles the petitions for convictions that did.

The File to Bring to the First Meeting

Retail fraud cases are decided on paper and video, so the first meeting is far more useful when it starts from the documents. Bring:

1. The appearance ticket or citation, with the court date.
2. The civil demand letter, unopened or opened, unpaid.
3. The trespass notice from the store.
4. Any receipt, bank or card statement, or order confirmation from that day, including for items you did pay for.
5. A written account of what happened, written by you, before you discuss it with anyone else. Where you were in the store, what was in the cart, who was with you, what was said in the office.
6. Names and contact information for anyone who was with you.
7. If you are not a U.S. citizen, your current status and any pending applications.

Leave the explanation for the attorney, and do not give one to the store, the demand-letter law firm, or the police in the meantime.

Frequently Asked Questions

What is retail fraud in Michigan?

Retail fraud is Michigan’s name for shoplifting and the offenses next to it: taking merchandise from a store without paying, switching or altering a price tag, or getting a refund or exchange for something that was not paid for, all while the store is open to the public. It is charged under MCL 750.356c and 750.356d in three degrees, set by the value of the property and whether you have a prior retail fraud or larceny conviction.

What is retail fraud 3rd degree in Michigan?

Third-degree retail fraud covers property worth less than $200 when you have no prior retail fraud conviction. It is a misdemeanor punishable by up to 93 days in jail and a fine of up to $500 or three times the value of the property, whichever is greater. It is the charge most first-time shoplifting cases start as, and in Dearborn it is often charged under the city ordinance and heard in the 19th District Court.

Is retail fraud a felony in Michigan?

First-degree retail fraud is a felony: property worth $1,000 or more, or $200 to $1,000 if you have a prior retail fraud conviction. It carries up to five years in prison and a fine of up to $10,000 or three times the value. Second and third degree are misdemeanors. Michigan also lets prosecutors add up the value of separate thefts within a 12-month period to reach a higher degree.

Do I have to pay the civil demand letter from the store?

The letter is real: under MCL 600.2953 a store can demand ten times the retail price of the goods, between $50 and $200, plus the full price of anything not recovered in sellable condition. Paying it does not end the criminal case, and the criminal case does not end the civil claim. What you say in response can be used against you, so have your attorney handle the letter rather than calling the number on it. Ignoring it can lead to a civil suit with attorney fees added.

What happens after you are stopped for shoplifting at Fairlane in Dearborn?

Store loss prevention can detain you for a reasonable time while Dearborn police are called. For a third-degree case you will usually be released with an appearance ticket that sets an arraignment date at the 19th District Court on Michigan Avenue; a felony-level amount can mean a trip to the station. The store will also issue a trespass notice banning you from the property and will send the civil demand letter separately. Missing the arraignment date produces a bench warrant.

Can a first-offense retail fraud charge be dismissed or kept off my record in Michigan?

Often, but it has to be negotiated. The tools are a plea to a non-theft offense where the prosecutor agrees, a delayed sentence under MCL 771.1 that ends in dismissal, the Holmes Youthful Trainee Act for defendants aged 18 to 25, and in some courts a diversion program. A straight guilty plea at the arraignment to get it over with gives all of those up and leaves a theft conviction that employers and landlords see on every background check.

Does a retail fraud conviction affect immigration status?

It can. Theft offenses are generally treated as crimes involving moral turpitude under federal immigration law, and a conviction, even a misdemeanor, can affect a visa, a green card application, or naturalization. For many Dearborn clients this is the most important issue in the case, and it has to be analyzed before any plea is entered.

Conclusion

LegalSolv is a Dearborn, Michigan law firm whose criminal defense practice, led by Hassan K. Bazzi, defends retail fraud and other misdemeanor and felony charges in the 19th District Court and the other Wayne County district courts, in English and Arabic. Our office on Garrison Street is about ten minutes from the courthouse.

If you have an appearance ticket from a Dearborn store, the arraignment date on it is the deadline. Talk to us before it.