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 Wisconsin, operating a 'chop shop' is illegal under both federal and state law. Under federal law, specifically 18 U.S.C. § 2322, it is a crime to knowingly own, operate, maintain, or control a chop shop, with penalties including up to 15 years imprisonment for a first conviction and potentially double the fines and imprisonment for subsequent convictions. Wisconsin state law also criminalizes the operation of chop shops, and these laws are found within the state's penal or criminal code. Individuals involved in chop shops in Wisconsin can be prosecuted under state law, federal law, or both. The state statutes provide for penalties that may include imprisonment, fines, or both, depending on the severity of the offense and the individual's criminal history. The exact statute and penalties would be detailed in the Wisconsin Statutes, which outline the state's criminal offenses and sanctions.