The price was excellent, which should maybe have been the first warning. You bought a nearly new SUV from someone on an online marketplace, met him at a plaza off Steeles Avenue, and paid by bank draft. Three months later, police arrive and tell you the vehicle was stolen from a driveway in Mississauga. You may lose the vehicle. The question that keeps you awake is whether you are about to be charged as well.
In the Criminal Code, this offence is called possession of property obtained by crime. It covers much more than a stolen item in somebody’s garage, and it reaches anyone who holds property knowing where it came from. The central battle is usually about knowledge. Possession is often easy to prove. Showing what was going on in someone’s mind is not.
This article gives general information on the offence and how Ontario courts approach it. It isn’t legal advice, and you should talk to a lawyer before explaining to police how you came to have an item.
The Offence
Section 354 makes it an offence to have in your possession any property or thing, or any proceeds of it, knowing that all or part of it was obtained or derived, directly or indirectly, from an indictable offence in Canada, or from conduct elsewhere that would be an indictable offence here.
That language is broader than “stolen goods.” It covers property obtained through fraud or robbery, for example, and it can extend to what the original property was turned into. If stolen jewellery is sold and the cash goes into someone’s account, that cash can be property derived from crime. It’s the reason this charge sometimes appears in fraud files, including allegations concerning people who let their bank accounts be used to move money.
The Crown has to prove three main things beyond a reasonable doubt:
- The property was obtained by crime.
- You had it in your possession.
- You knew of its criminal origin.
It also usually needs to prove the value range, as discussed below.
Possession Is Wider Than Holding Something
Under section 4(3), possession can take three forms.
Personal possession means having the item in your hands, pocket or vehicle, with knowledge of what it is.
Constructive possession means knowingly keeping something in a place for your own use or benefit or that of someone else, such as a storage unit in your name or a friend’s garage.
Joint possession arises when one person has it with the knowledge and consent of others who are in the group. This generally needs some measure of control over the item as well.
Knowledge and control both matter here. Simply being in a house where something is found doesn’t make it yours. Imagine a hypothetical in which a person rents a basement in Brampton and police find a stack of stolen tools in the shared garage upstairs. Without more evidence connecting them to those tools, the Crown has an uphill task. The same applies to a passenger in a car with a stolen item in the trunk, or a tenant whose roommate keeps boxes in a common area.
Knowledge and the Danger of Looking Away
Most contested cases turn on what the accused knew. Suspicion isn’t the same as knowledge, but the law recognizes one close substitute: wilful blindness.
As the Supreme Court of Canada explained in cases like Sansregret and R. v. Briscoe, wilful blindness occurs when a person’s suspicion is raised to the point that they see a need for inquiry and then deliberately choose not to inquire because they don’t want to know the truth. It is treated the same as actual knowledge.
This doesn’t mean that careless people are guilty. Simply failing to act as a reasonable buyer might have is not enough. The question is whether you yourself suspected, and consciously avoided finding out. But the circumstances can make that inference strong. Common examples that a court may weigh include:
- a price far below market value with no sensible explanation;
- a seller who won’t give a name, ID or a fixed address;
- a sale in an odd place or at an unusual hour, with cash only;
- missing ownership papers, or a story about how they’re “coming later”;
- signs of tampering, such as a damaged ignition or altered serial numbers;
- evasive explanations when you’re asked about the item.
None of these proves knowledge on its own. Together, they may tell a story. A real bargain from a neighbour’s garage sale is one thing. An expensive tool set bought from a stranger’s trunk at midnight is another.
Recent Possession
An old rule called the doctrine of recent possession can matter quite a bit. If someone is found in possession of property that was stolen a short time earlier, and that person doesn’t offer an explanation that might reasonably be true, a court may infer that they knew it was stolen, or even that they stole it.
It’s an inference and not an automatic finding. “Recent” depends on what the property is and how easily it moves. A phone changes hands quickly, so a few days can be a long time. A rare piece of equipment might be different. The burden of proof remains on the Crown, and you do not have to testify. But the rule explains why the Crown may seem content to rely on timing alone. In some cases, an explanation might be given through other evidence, such as receipts or a witness, without the accused taking the stand. That’s a decision to make with your lawyer.
Vehicles Get Special Treatment
Auto theft has drawn a lot of attention across the Greater Toronto Area, and vehicle cases have a few features of their own.
Section 354(2) says that having a motor vehicle, or a part, with a vehicle identification number wholly or partially removed or obliterated is, without evidence to the contrary, proof that it was obtained by crime. It’s a presumption the defence can answer, but it can catch people off guard, and it’s most relevant to repair shops and parts dealers.
For anybody in Brampton who runs an auto body shop, a towing company, or a used-car lot, good records are important protection. Keep bills of sale, copies of ownership, and photos of VIN plates. Check vehicles against what the seller gave you. If you ever see something that looks like a tampered VIN, stop the work and get advice. Related offences exist, too, including tampering with a vehicle identification number and trafficking in property obtained by crime, the latter of which has a higher maximum penalty than simple possession.
If you’re looking to buy a used vehicle in Ontario, a Used Vehicle Information Package is one practical step. A vehicle history report and a check of the VIN in several locations on the car are worthwhile too. These won’t catch everything, since professional thieves can alter identification and paperwork, but they help show you acted honestly.
The $5,000 Line and Penalties
Section 355 divides the offence by value:
- Over $5,000 (or a testamentary instrument): up to 10 years in prison on indictment, or the general summary conviction maximums.
- $5,000 or less: up to two years on indictment, or the general summary conviction maximums.
Value disputes are real. The test relates to the value of the property, and a police estimate of a vehicle or a collection of goods may be contested. Keep in mind that the Crown has to prove the higher value if it’s alleging that level.
Actual sentences depend on many factors, such as the value, how sophisticated the operation was, whether it was a one-time mistake or an ongoing business, whether the property was returned, and the person’s record. Discharges and conditional sentences aren’t excluded by statute for this charge, though availability will depend on the circumstances.
Provisions in force from July 15, 2026 under the federal Bail and Sentencing Reform Act treat organized retail theft as an aggravating factor at sentencing, and they expressly cover possession of property obtained by crime. A person buying and reselling goods taken from stores in an organized way should take that into account.
A conviction for the over-$5,000 version can carry immigration consequences for non-citizens, since the maximum is 10 years. Get immigration advice before you agree to anything, even a resolution that may seem minor. An accused charged in a family business may also want to consider how a conviction could affect licences or bonding.
How the Crown Tries to Prove Its Case
These prosecutions often rest on circumstantial evidence. Since no one witnessed what the accused knew, the case depends on what can be inferred. A judge may convict on circumstantial evidence only if guilt is the only reasonable inference. If other reasonable explanations remain, there has to be an acquittal.
Evidence often includes police observations, search warrant results, the original owner’s testimony, serial or VIN records, and phone messages about the sale. Messages like “don’t ask where it came from” can be quite damaging. Records of an honest transaction, on the other hand, can help. The Criminal Code also contains special evidence rules for this offence, including in some circumstances evidence of other property or of prior convictions, subject to notice requirements. These need to be considered at an early stage.
Searches often become a key issue. If police found the goods through a warrant, your lawyer will look at whether the warrant was properly issued and carried out, and whether your Charter rights were respected. A search that violates your rights might, in some cases, result in excluded evidence, which can end the prosecution.
If You Discover You Have Something Stolen
Say you realize, after the fact, that something you bought may be stolen. Once you know, your continued possession is a problem. At the same time, walking into a Peel Regional Police division with a detailed account might not be the wisest approach without advice. The safest course is usually to call a lawyer first, stop using or reselling the item, keep it safe, and preserve every message, payment record and advertisement. A lawyer can often help arrange the return of the property in a way that takes account of your legal position.
The financial side deserves mention too. Generally, a thief can’t pass good title, so an innocent buyer may lose the item and have to look to the seller for their money. There are civil routes, such as a small claims action against a seller you can find. On conviction of someone else, a sentencing court may also order restitution in some circumstances to a good-faith buyer. Your insurer is unlikely to help, but ask.
Moving Forward
If you’ve been charged, or police have asked to talk to you about an item, don’t sell it, don’t dispose of it, and don’t ask the seller to get their story straight. Any of these could be used against you and could lead to further charges. Instead, make a list of everything you recall about the transaction, and gather the paperwork.
More information about defending charges like these is on the firm’s criminal law page, and you can contact us to book a meeting. No one can promise how a particular judge will read the facts, but careful preparation gives you a fair opportunity to explain how the property came into your hands.