Embezzlement often conjures the image of a trusted insider systematically diverting funds from a company, charity, or estate. This serious offense, which involves stealing from those who placed their faith in the perpetrator, is typically prosecuted in Texas under state theft laws or, in certain instances, misapplication of fiduciary property statutes. Whether you are under investigation or charged with this crime, it is essential to understand the legal definition of “embezzlement” in Texas, the potential penalties involved, and the methods prosecutors use to build their case. Please continue reading and contact an experienced Dallas Theft Lawyer for guidance. 

What is Embezzlement Under Texas Law?

Texas does not have a separate criminal statute labeled “embezzlement.” Instead, acts commonly referred to as embezzlement are prosecuted under the general offense of theft or, in specific fiduciary contexts, Misapplication of Fiduciary Property. This crime is a form of theft that is committed by a person who initially had lawful access to or control over the property due to a position of trust. The critical distinction between embezzlement-type offenses and simple theft is the element of entrustment. The alleged crime occurs when the accused:

  • Has Lawful Control: Gained control over the property or funds as a result of their specific role.
  • Violates Authorized Use: Was restricted to using the property only for limits, authorized purposes.
  • Appropriation for Self-Benefit: Instead, they intentionally took or used the property for their own personal gain or an unapproved purpose.

It should be noted that the appropriation does not require physical removal of cash; it includes actions like electronic transfers, submission of false invoices, or issuing fraudulent checks. In Texas, proving intent is paramount in theft cases. Prosecutors must demonstrate that the accused intended to deprive the owner of their property or use it in a manner fundamentally inconsistent with their authorized use. Intent is usually inferred from factors such as behavior patterns, concealment, the creation of false records, and evidence of personal benefit.

What Are the Potential Penalties?

In Texas, penalties for theft, including embezzlement, primarily depend on the value of the property, following a “value ladder” subject to legislative adjustments:

  • Class C Misdemeanor: Very low-value (fine only).
  • Class B Misdemeanor: Above Class C threshold (up to 180 days jail, fines).
  • Class A Misdemeanor: Higher value (up to 1 year county jail, higher fines).
  • State Jail Felony: Over a set amount, often low thousands (180 days to 2 years state jail).
  • Third-Degree Felony: Larger amounts (2-10 years of imprisonment).
  • Second-Degree Felony: Significant amounts (2-20 years of imprisonment).
  • First-Degree Felony: Very high-value (5-99 years of imprisonment, substantial fines).

Embezzlement can quickly reach felony status, especially if conducted over years or involving business/institutional accounts.

Regardless of whether you are under investigation or already charged, it is crucial to secure personalized legal advice to help you make informed decisions and protect your rights throughout the process. Contact an attorney at Spangler Law today for skilled representation.