From what I gather of the post here, we can have an intelligent system that works like this:
- Stolen items are all marked in your inventory, because you would know what you have stolen.
- You can not sell a merchant his stolen items back, because he would recognize them.
- You can not sell a merchant the important items stolen from his neighbors, and this can be based on the price of the item.
- You can not sell a stolen unique item to about any merchant, as it would be known through out the nation.
So all the stolen items are marked in your inventory, and their previous owner is known to the engine, and their current price for the merchant is also known to the engine. Each merchant has a perception threshold about the price of the stolen items, and he would recognize the stolen items from the neighborhood with prices above that threshold, and he would also recognize the stolen items from his own store and home, and any merchant would automatically recognize unique and universally recognizable stolen items, so those items are automatically removed from the list when we want to sell items to a merchant who is not a fence.
So when you try to sell stolen items to a merchant, the low priced junk, and the other non-important items that you have stolen from the neighborhood are listed as well, with a stolen mark on them so that you know that you are selling them to the merchant, but the ones that he would recognize as a stolen items are removed from the list, and you can lighten your hand without the risk to being caught red handed, bur some merchants are less perceptive that others and you can sell them more items, so you have to find them out yourself.
Each stolen item can have an internal data value of them set to the place that they where first stolen from, and there can be a formula with the merchants' perception threshold and their distance from the place that the item was stolen from, and the item's price to define if they would recognize the item, so that it should be removed from the list, when we want to sell them the item.
So you can steal from a house and sell the junk to the nearby merchant, and go further away and sell the more priced items, and go further away and sell the more priced items there and so on...
For the more important items that you have stolen, you have to find fences, and those people bargain hard, so you can not become rich overnight, or you can carry them to another town and sell them there to a regular merchant, for better price than what a fence would pay.
That's a sound solution IMHO.