The Pawn Shop Trap: When Being Poor Becomes a Crime

By: John Guidry

“A poor girl wants to marry, and a rich girl wants to flirt. A rich man goes to college, and a poor man goes to work” – Charlie Daniels Band

Let’s face it: the deck is stacked against the poor. If you’re poor and black, it’s even worse.

I recently read a police report asking a judge for a search warrant in a poor neighborhood. The “probable cause”? The officer observed “several black males hanging out in the front yard… traveling back and forth inside the residence.” Really? In a rich neighborhood like Isleworth, that is called “a barbecue.” In a poor neighborhood, it is called “drug activity.”

But hanging out isn’t the only activity that gets scrutinized. Borrowing money is dangerous too. Poor people don’t go to the bank to get a loan; they have no credit. They go to pawn shops. And to get that loan, they have to part with their possessions. Unfortunately, using a pawn shop can accidentally land you with three felony charges.

Arrested for pawning something you bought at a flea market?

Possession isn’t proof of theft. Call John today at (407) 423-1117.

The Scenario: The Flea Market iPad

Let’s look at a common scenario: Bob buys an iPad at a local flea market. When rent comes due, he needs cash fast. He takes the iPad to a pawn shop and gets a $100 loan. The Surprise: It turns out the iPad was stolen.

Even though Bob didn’t steal it, he is now facing Three Felonies:

1. Grand Theft: (The law assumes if you have it, you stole it).
2. Dealing in Stolen Property: (Pawning it).
3. False Verification of Ownership: (Signing the pawn slip saying “I own this”).

Is Bob guilty? Not if we use the right defense.

The Defense: Valdez v. State

Our analysis begins with Valdez v. State, 492 So. 2d 750 (Fla. 3d DCA 1986). Valdez pawned several items that turned out to be stolen. When confronted, he claimed he found them in a trash can.

The Victory: The appellate court overturned Valdez’s conviction. Why? Because his excuse was reasonable under the circumstances. The court noted:

1. He gave the pawnbroker his real name and address (criminals usually try to hide).
2. He only pawned some of the stolen items (not the whole stash).
3. His explanation (finding them) was not disproven by the State.

The Rule: If your explanation for how you got the item is “reasonable” and unrefuted, the court cannot convict you. If Bob says, “I bought it at the flea market,” and the State can’t prove he didn’t, Bob wins.

The Danger: The “Fair Price” Trap (Hughes v. State)

However, there is a catch. In Hughes v. State, 81 So. 3d 597 (Fla. 1st DCA 2012), the court warned that selling an item for way below market value can be proof of guilt.

• If Bob pawns a $5,000 diamond ring for $200, the court infers he must have known it was stolen because no one sells that cheap unless they are desperate to get rid of “hot” goods.

My Take: The court’s logic is flawed. Pawn shops are not known for fair pricing. Poor folks get into financial binds that cause them to give up valuable possessions for pennies on the dollar. That is evidence of desperation, not guilt. We fight hard to explain this reality to the jury.

John’s 2026 Update: The Digital Pawn Shop

Note: In 2026, the “Pawn Shop” often looks like a Facebook Marketplace meetup or a kiosk at Walmart.

1. The EcoATM Trap You’ve seen those machines at the mall where you deposit an old phone for instant cash.

• The Risk: These machines take a photo of your face and scan your ID. If that phone was reported stolen, the machine essentially builds the police’s case for them.
• The Defense: Just like Valdez, we argue you had no knowledge it was stolen. We also attack the “False Verification” charge by proving you genuinely believed you had the right to sell it (e.g., “I bought it from a guy on OfferUp, here are the screenshots”).

2. The “False Verification” Stickiness Even if we beat the Grand Theft and Dealing charges by proving you bought the item legitimately, prosecutors love to stick on the False Verification charge.

• They argue: “You signed a paper saying you were the rightful owner. Since it was stolen, you weren’t the owner. That’s a lie. Guilty.”
• Our Strategy: We argue that “False Verification” requires Knowledge. You cannot lie about something you honestly believe is true. If you thought you owned it, you didn’t commit a crime by signing that slip.

3. Practical Advice: The “Napkin Receipt” In 2026, we tell every client: Get a receipt. Even if you are buying a lawnmower at a yard sale or an Xbox from a neighbor. Write it on a napkin: “Sold to Bob for $50.” Have them sign it.

• That piece of paper is your “Reasonable Explanation” under Valdez. It is your Get Out of Jail Free card.

Don’t Let a $100 Loan Cost You Your Freedom

If you have been charged with Dealing in Stolen Property because of a pawn transaction, do not just plead out. These cases are often based on assumptions, not evidence.

Call me at (407) 423-1117. Let’s tell your side of the story.

About John Guidry II

John Guidry II is a seasoned criminal defense attorney and founder of the Law Firm of John P. Guidry II, P.A., located in downtown Orlando next to the Orange County Courthouse, where he has practiced for over 30 years. With more than three decades of experience defending clients throughout Central Florida since 1993, Guidry has successfully defended thousands of cases in Orange, Seminole, Osceola, Brevard, Lake, and Volusia counties. He has built a reputation for his strategic approach to criminal defense, focusing on pretrial motions and case dismissals rather than jury trials.

Guidry earned both his Juris Doctorate and Master of Business Administration from St. Louis University in 1993. He is a member of the Florida Bar and the Florida Association of Criminal Defense Lawyers. His practice encompasses the full spectrum of Florida state criminal charges, with a particular emphasis on achieving favorable outcomes through thorough pretrial preparation and motion practice.

Beyond the courtroom, Guidry is a prolific legal educator who has authored over 400 articles on criminal defense topics. He shares his legal expertise through his popular YouTube channel, Instagram, and TikTok accounts, where he has built a substantial following of people eager to learn about the law. His educational content breaks down complex legal concepts into accessible information for the general public.

When not practicing law, Guidry enjoys tennis and pickleball, and loves to travel. Drawing from his background as a former recording studio owner and music video producer in the Orlando area, he brings a creative perspective to his legal practice and continues to apply his passion for video production to his educational content.