Is embezzlement a felony in California?

Under Penal Code 503 PC, California law treats embezzlement as a form of grand theft. As such, the crime can be charged as a felony when the embezzled property is

1. a firearm,
2. an automobile, or
3. worth more than $950.

In embezzlement cases where the property is worth $950 or less, the offense is a form of petty theft and is charged as misdemeanor embezzlement.

The larceny crime of embezzlement in California is when a person fraudulently appropriates property that:

1. belongs to someone else, and
2. has been entrusted to him.

What is embezzlement under Penal Code 503?

Penal Code 503 is the California statute on embezzling, typically a white-collar crime. For a prosecutor to show that a person is guilty under this statute, he must prove the following:

1. an owner of property entrusted the property to the accused (directly or through an agent);
2. the owner did so because he trusted the accused;
3. the accused then fraudulently converted or used that property for his own benefit; and
4. when he did so, he intended to deprive the owner of the property or its use.

Note that a person acts “fraudulently” when he either

• takes undue advantage of another person, or
• causes a loss to that person by breaching a duty, trust or confidence.

Examples of embezzlement could include all of the following:

• An employee at a valet parking lot in an airport lends one of the parked cars to his son, who needs transportation for a job interview, and returns it after the interview.
• A home healthcare worker who cares for an elderly woman is asked by her employer to take several hundred dollars in cash to the bank and deposit it. Instead, she keeps the money for herself.
• The treasurer of a non-profit organization pulls several thousand dollars out of the organization’s bank account and uses it to pay off his gambling debts.
• A cashier at a store pocketing money from the cash register.

When is embezzlement charged as a felony?

It is always a felony when a person embezzles a firearm.

The crime is a form of grand theft if the embezzled property is:

• a firearm,
• an automobile, or
• the value of the property is more than $950.

In these cases, embezzlement is a type of wobbler offense. This means it can be charged as either a felony or a misdemeanor, depending on:

• the facts of the case, and
• the criminal history of the defendant.

A felony embezzlement conviction carries state prison time for up to three years.

Are there aggravating and mitigating factors for felony embezzlement charges?

Both aggravating and mitigating factors may be available in embezzlement cases when the offense is charged as a felony. For example, a judge is likely to give a defendant a tougher sentence if his victim was an elderly or a dependent person (that is, someone with a mental or physical impairment that affects his daily functioning). A factor leading to a more severe sentence is an aggravating factor.

A mitigating factor, or one which may lead a judge to grant a less severe sentence, is when the defendant returned the property subject to the embezzlement. But note that this return must have come before the party gets formally charged.

When is embezzlement charged as a misdemeanor?

There are two situations in which embezzlement is a misdemeanor charge. These are when:

1. a prosecutor decides to charge grand theft embezzlement as a misdemeanor, and
2. the embezzled property is worth an amount of money of $950 or less.

In the former case, the crime is punishable by county jail time for up to one year.

In cases where the embezzled property is worth $950 or less, the crime is treated as a form of California petty theft. It is punishable by imprisonment in the county jail for up to six months.¹

Are there legal defenses to embezzlement charges?

An embezzlement defense lawyer can raise various legal defenses to accusations of this serious crime. A successful defense can work to reduce a certain charge or to eliminate one altogether.

Four common defenses to California embezzlement charges are that the defendant:

1. believed in good faith that he had a right to the property involved,
2. did not act “fraudulently,”
3. did not intend to deprive the owner of the property, and
4. was falsely accused.

Have you or a loved one been accused of embezzlement? Our embezzlement defense attorneys may be able to get the charge reduced or dismissed. Our criminal defense lawyers create attorney-client relationships and have law offices in Los Angeles and throughout the state.

Disclaimer: Past results do not guarantee future results.