Reviewed by William A. Proetta, Esq. · Updated October 2026
Short answer: New Jersey has no separate “online marketplace fraud” crime. A seller who takes money and sends nothing, a buyer who pays with a bad check or a payment the buyer later reverses, and a person who posts a fake listing are charged with theft by deception under N.J.S.A. 2C:20-4. A buyer who ends up with a stolen item or car is charged with receiving stolen property under N.J.S.A. 2C:20-7 or, for a vehicle, N.J.S.A. 2C:20-10.2. The grade follows the amount of money or value involved, from a disorderly persons offense under $200 to a third-degree crime above $500.
I am William Proetta. For more than 15 years I have defended people in Hudson County whose online sales went wrong, some of them scammers and many of them not. William Proetta Criminal Law is in Jersey City; we take calls at (201) 793-8018 at any hour.
When does a Marketplace deal go from a dispute to a crime?
A crime requires a lie told on purpose, before the money moved. A bad deal does not qualify. Theft by deception means purposely creating a false impression, including a false impression about your intention, and getting someone’s property because of it. The statute says that an intent not to perform a promise cannot be inferred from the failure to perform alone.
That sentence protects a lot of honest sellers. You listed a jacket, took a Venmo payment, then the jacket sold at your door and you stopped answering the first buyer out of embarrassment. That is a refund problem. The same facts become a crime if the State can show the listing was never real: stock photos, a new account, the same “item” offered to several people, an address that does not exist. The court also requires reliance. The buyer must have paid because of the false statement (State v. Mann, 244 N.J. Super. 622, 626-27 (App. Div. 1990)).
Police and prosecutors look at the pattern. One late shipment is civil. Eleven unfilled orders from the same account is a theft by deception case.
How are the different Marketplace scams charged, and what if there are several buyers?
- Seller takes payment, ships nothing: theft by deception, graded by the amount.
- Buyer pays with a bad check: the bad check statute, N.J.S.A. 2C:21-5, requires proof you knew the check would not be honored. Here the grading line is $1,000, not $500: a check of $1,000 to under $75,000 is third degree. See our page on bad check charges. A counterfeit or altered check can add forgery, and a check is a third-degree item under forgery law regardless of amount.
- Buyer reverses a payment app transfer: a good-faith dispute about an item that really was defective is civil. Claiming the item never arrived after you took it is a false statement used to get the money back, which prosecutors charge as theft by deception.
- Fake listing using someone else’s name or photos: theft by deception, and possibly identity theft under N.J.S.A. 2C:21-17 if you assumed another person’s identity to get the money.
Several buyers. Under N.J.S.A. 2C:20-2(b), amounts taken as part of one scheme or course of conduct may be added together, whether they came from one person or several. Five $120 orders, each a disorderly persons matter alone, total $600 and become a third-degree crime with three to five years of exposure. At $75,000 or more the offense is second degree.
That is why the complaint number matters. The State must prove the total beyond a reasonable doubt, and each payment must be tied to the same plan. A seller who in good faith filled most orders and failed on a few is in a different position from an account that never filled any.
What if I bought something on Marketplace and it was stolen?
Receiving stolen property requires that you knew the item was stolen or believed it was probably stolen. Finding out later is not a crime. The State must also prove the property really was stolen (State v. Hodde, 181 N.J. 375 (2004)). Prosecutors argue knowledge from circumstances: a price far below value, a seller who would only meet in a parking lot, serial numbers removed, a second item from the same seller. For ordinary property, see receiving stolen property.
Cars are different. Since 2023 a stolen vehicle falls under N.J.S.A. 2C:20-10.2, a third-degree crime, or second degree at $75,000 or more. The facts that matter are the paperwork and the price. A title that does not match the seller’s name, a missing VIN plate or a bargain that was too good to be true are what the State will point to. Our auto theft page explains how those cases are built. Since 2025, advertising or helping to sell goods you know or reasonably believe are stolen is also a disorderly persons offense under N.J.S.A. 2C:20-7.3, which reaches people who post listings for someone else.
What should I do if the police contact me about a Marketplace sale?
- Do not delete anything. Keep the messages, listing, receipts and payment records. Deleting them looks like concealment and removes your best evidence of honesty.
- Do not give a long explanation. Detectives in Jersey City and Hoboken usually already have the buyer’s screenshots. Your account will be measured against them.
- Do not hand over your phone without talking to a lawyer. A consent search gives them every conversation, not just this one. If a warrant is used, we can test it with a motion to suppress.
- Offer a refund through a lawyer. Restitution does not end a case, but it helps with the prosecutor and with pretrial intervention, which first offenders in third-degree fraud cases are often considered for.
Disorderly persons cases are heard in the town’s municipal court. Indictable cases are screened by the Hudson County Prosecutor’s Office and heard at the Frank J. Guarini Justice Complex, 24 Central Avenue, Jersey City.
Marketplace Fraud FAQs
Can I be arrested if a Marketplace buyer says I scammed them?
Yes, if police find probable cause that you deliberately lied to get the money. A complaint or summons often comes in the mail or by a call to come to the station, not only by arrest.
Is it a crime to stop answering a buyer after I took payment?
Not by itself. The State cannot infer an intent to cheat from non-performance alone. They need other proof, such as a fake listing or several unfilled orders.
Is reversing a Cash App or Zelle payment a crime?
It can be, if you lied about why, such as saying you never received something you did receive. A real, good-faith dispute is a civil matter.
I bought a bike that turned out to be stolen. Will I be charged?
Not automatically. The State must prove you knew or probably believed it was stolen. Returning it promptly and keeping your messages helps.
If a buyer or the police are accusing you, call William Proetta Criminal Law at (201) 793-8018 for a free, confidential review before you answer any questions. You can also contact us online.
