Chop shops are illegal automobile garages that buy stolen cars, disassemble them, and sell the individual parts for a profit. Chop shops often disassemble a car within hours of purchasing it from the thief who stole it—making it difficult for the police and the rightful owner to find the stolen vehicle. Chop shops are often operated in residential garages and small commercial spaces to avoid detection, but are usually part of a large criminal network or organization.

It is a crime under federal law (18 U.S.C. § 2322) to knowingly own, operate, maintain, or control a chop shop. There are significant fines and penalties under federal law for operating a chop shop—up to 15 years imprisonment for a first conviction, with the maximum fine and imprisonment doubled for any subsequent conviction.

States also have criminal laws (located in the penal or criminal code or statutes) that prohibit the operation of a chop shop. An offender may be prosecuted under state chop shop laws in addition to a federal prosecution, or instead of a federal prosecution.

In Indiana, operating a 'chop shop' is illegal under both federal and state law. Federally, 18 U.S.C. § 2322 criminalizes the knowing ownership, operation, maintenance, or control of a chop shop, with penalties of up to 15 years imprisonment for a first conviction and potential doubling of fines and imprisonment for subsequent convictions. Indiana state law also prohibits the operation of chop shops, and these laws are found within the state's penal or criminal code. Violators can be prosecuted under state law either in addition to or instead of federal prosecution. The state-specific statutes provide for penalties that may include imprisonment, fines, and other sanctions. The exact statute number and penalties can vary, so it is important to consult the current Indiana Code or an attorney for precise legal guidance.