New Jersey High School Students' Alleged Counterfeiting Scam Busted

May 30, 2014— -- Five New Jersey high school students have been arrested for allegedly printing and spending - at their school cafeteria and area stores - counterfeit bills.

The New Milford High School students produced $1,000 in counterfeit $5 and $20 bills, according to the police. They made the fake bills at home, using an ink-jet printer and a stack of coarse resume paper, according to New Milford Police Chief Frank Papapietro.

The fake bills were first discovered at a Dunkin Donuts on River Road in New Milford, Papapietro said. Police told ABC News’ affiliate WABC-TV the teens were wearing New Milford High School gear when caught on surveillance video using fake bills.

An employee at the Dunkin Donuts who asked to remain anonymous said that the store on 754 River Rd, New Milford, NJ, received seven fake $20 bills.

“The bills look real. It’s hard to notice (it is fake) if you don’t pay attention,” the employee told WABC.

The chief said that all the $20 bills had the same serial number.

Papapietro said the teenagers will be arraigned in juvenile court, although the arraignment date is not confirmed yet.

"This just really shows how some acts could lead to serious consequences," Papapietro said. "This is a serious crime against the U.S. government. Had they (students) been adults, they would have been trialed under the federal court system."

Papapietro said it would be left to the juvenile court system to decide if the teenagers will receive any jail time.

“It doesn't happen a lot in New Jersey," Papapietro said. “This is really creating trouble for small businesses that are already struggling.”

New Milford High School official declined to comment on the incident.