Is Embezzlement a Felony? Dollar Thresholds and Penalties by State (2026)

Yes — embezzlement is a felony in every state once the dollar amount reaches that state's felony theft threshold, and in many states it is a felony at any amount when committed by a public official, public employee, or certain fiduciaries. The threshold ranges from as low as $100 (Vermont and Rhode Island embezzlement) and $200 (New Jersey) up to $2,500 (Texas, Wisconsin). The most common line is $1,000, followed by $1,500 and $750. Below the threshold, embezzlement is charged as petty theft / petit larceny — a misdemeanor carrying up to 6 months or 1 year in jail.

Most states now tier the felony by the amount taken: a $1,500 embezzlement might be a low-level (Class D / 4th-degree / Level 6) felony with a 1–5 year maximum, while a $500,000 embezzlement can be a top-tier felony carrying 10, 20, or even 99 years (Texas first-degree). Aggregation is the rule, not the exception — a bookkeeper who skims $200 a month for two years is usually charged on the cumulative total, easily clearing the felony line.

The defendant's role matters as much as the dollar amount. North Carolina (N.C.G.S. §§ 14-90 to 14-92), South Carolina (§ 16-13-210), Colorado (§ 18-8-407), Rhode Island (§ 11-41-3), Vermont (§ 2531), and other states make embezzlement by a public officer, public employee, or fiduciary a felony regardless of amount. Federal embezzlement (18 U.S.C. §§ 641, 654, 656, 666) is always serious — up to 30 years for bank embezzlement. Restitution is mandatory virtually everywhere, and an embezzlement conviction is a crime of moral turpitude with lasting collateral consequences.

Embezzlement is the fraudulent conversion of property by a person who was lawfully entrusted with it. The key feature that separates embezzlement from ordinary theft is that the defendant first received possession of the property legally — through an employment relationship, an agency, a bailment, a trustee role, or another fiduciary duty — and then converted it to their own use without the owner's consent.

Classic examples: a store cashier pocketing cash from the register; a bookkeeper wiring company funds to a personal account; a homeowners' association treasurer using dues for personal travel; a nonprofit director spending donation money on personal expenses; an employee using the company credit card for non-business purchases. In each case, the person had a lawful right to possess or access the money, and the crime is the fraudulent use or keeping of it.

Most states have consolidated embezzlement into a general 'theft' or 'larceny' statute (the Model Penal Code approach), so you will often see embezzlement charged as 'theft by unlawful taking,' 'theft by failure to make required disposition,' 'larceny by embezzlement,' or 'theft by conversion.' A handful of states — California (PC 503), Michigan (MCL 750.174), Nevada (NRS 205.300), New Mexico (§ 30-16-8), Oklahoma (21 O.S. § 1451), Rhode Island (§ 11-41-3), Vermont (13 V.S.A. § 2531), Virginia (§ 18.2-111), and West Virginia (§ 61-3-20) — keep a standalone embezzlement statute. The practical result is similar: the defendant's lawful initial possession is what makes it embezzlement rather than larceny.

Larceny is the unlawful taking and carrying away of someone else's property with intent to permanently deprive them of it — the defendant never had lawful possession. Shoplifting, snatch-and-grab theft, and stealing a coworker's wallet from a desk are larceny. Embezzlement differs because the defendant first lawfully possessed the property (as an employee, agent, bailee, or fiduciary) and then converted it — the wrongful act is the keeping or using, not the initial taking.

Fraud (theft by deception, false pretenses) is obtaining property through a knowing misrepresentation of fact. A contractor who takes a deposit and never does the work, or a person who sells a car they do not own, commits fraud. Embezzlement can overlap with fraud — a bookkeeper who falsifies records to conceal skimming commits both — but the core of embezzlement is the breach of a trust relationship, not a lie to obtain the property.

The distinction matters at sentencing. Because embezzlement involves a breach of trust, many states treat it more seriously than ordinary larceny at the same dollar amount, impose consecutive sentencing (Michigan, for vulnerable-adult victims), add fiduciary enhancements, or — for public officials — make it a felony at any amount. Prosecutors often charge embezzlement alongside forgery, fraudulent schemes, money laundering, and tax offenses.

The single most important fact in an embezzlement case is the value of the property taken. Every state draws a line where theft/embezzlement crosses from a misdemeanor (petty theft / petit larceny, usually under a year in county jail) to a felony (grand theft / felony embezzlement, a year or more in state prison). The national range is $100 (Vermont, Rhode Island embezzlement) and $200 (New Jersey) on the low end, up to $2,500 (Texas, Wisconsin) on the high end. The most common thresholds are $1,000 (about 22 states), $1,500 (about 10 states), and $750 (about 6 states). California sits at $950, Massachusetts and Nevada at $1,200, and several states (Colorado, Connecticut, Pennsylvania, South Carolina) at $2,000.

Many thresholds are decades old and have not been adjusted for inflation, which is why a relatively small taking can be a felony in New Jersey ($200) or Vermont ($100 embezzlement) while the same amount is a misdemeanor in Texas or Wisconsin ($2,500). Since 2000, at least 37 states have raised their felony theft thresholds to keep low-level theft out of state prison, and several (Florida 2023, Kentucky 2021/2022, Alabama 2019, Texas 2015, Massachusetts 2018) have done so recently.

Above the threshold, most states tier the felony by amount. Higher tiers carry longer prison terms and larger fines — top tiers commonly reach 10, 20, or 30 years, and Texas first-degree theft reaches 5–99 years for $300,000+. Aggregation is critical: prosecutors typically combine many small takings that are part of a single scheme or course of conduct into one cumulative total, so a pattern of small skimming almost always reaches the felony tier.

Several states make embezzlement a felony regardless of the dollar amount when the defendant holds a position of public trust. North Carolina is the strongest example: N.C.G.S. §§ 14-90 (fiduciaries/trustees), 14-91 (state property by public officers/employees), 14-92 (public officers/trustees), and 14-74 (larceny by employee) all make any amount a felony — under $100,000 is a Class H or Class F felony, and $100,000+ is a Class C felony.

South Carolina (§ 16-13-210) makes embezzlement of public funds a felony at any amount (up to 10 years). Colorado (§ 18-8-407) makes embezzlement of public property a Class 5 felony regardless of amount and bars the defendant from future public office. Rhode Island (§ 11-41-3) makes embezzlement a felony at just $100, and North Dakota (§ 12.1-23-06) makes 'misapplication of entrusted property' a felony at $500 — lower than the general theft threshold.

Other aggravating factors that can make embezzlement a felony regardless of amount include: theft of a firearm (felony in most states), theft of a motor vehicle (felony in many), theft from the person, theft by extortion, theft from a vulnerable victim (elderly/disabled — e.g., Delaware, Ohio, Massachusetts, Pennsylvania), theft of a trade secret (Massachusetts), and repeat theft convictions (e.g., Texas third conviction, Wyoming fifth offense, Arkansas/Kansas/Kentucky prior-conviction elevations). Public-official embezzlement also commonly carries restitution, removal from office, and permanent disqualification from public employment.

Federal embezzlement is prosecuted under several statutes in Title 18 of the U.S. Code. 18 U.S.C. § 641 covers theft or embezzlement of government money, property, or records — over $1,000 is a felony punishable by up to 10 years (under $1,000 is a misdemeanor with up to 1 year). 18 U.S.C. § 654 applies specifically to an officer or employee of the United States who embezzles government property — up to 10 years. 18 U.S.C. § 656 covers embezzlement by an officer or employee of a federally insured bank or credit institution — up to 30 years and a $1,000,000 fine. 18 U.S.C. § 657 covers savings and loan / credit union embezzlement — up to 30 years.

18 U.S.C. § 666 covers theft or embezzlement from an organization (state, local, or tribal government, or a private entity) that receives $10,000+ in federal benefits — the embezzled amount must be $5,000+ to be a federal felony, punishable by up to 10 years. 18 U.S.C. § 655 covers farm credit institutions. These federal statutes apply when the property belongs to the federal government, the victim is a federally insured bank, the funds involve federal money, or the crime crosses state lines.

Federal sentencing guidelines increase the recommended range as the loss amount rises, so a $1 million federal embezzlement will land in a much higher guideline range than a $6,000 one. Restitution is mandatory under the Mandatory Victims Restitution Act (18 U.S.C. § 3663A). Federal embezzlement is a deportable/inadmissible offense for non-citizens and a crime of moral turpitude.

Restitution is mandatory in virtually every embezzlement case, state and federal. Courts order the defendant to repay the full amount embezzled, often on top of prison and fines. In some states (Oklahoma for public officials — triple damages; Rhode Island — up to triple the value) the financial penalty is multiplied. Failure to pay restitution can extend probation, violate parole, or — in Montana's embezzlement-specific provision — trigger the previously-stayed prison term.

Beyond criminal penalties, the victim can sue civilly for conversion, breach of fiduciary duty, fraud, and unjust enrichment. Civil judgments can include punitive damages, attorney fees, and pre- and post-judgment interest. A criminal conviction is strong evidence (often conclusive) in a civil case. Some states (e.g., California PC 496, theft statutes generally) allow treble damages in civil theft actions.

The collateral consequences are severe and long-lasting. Embezzlement is a crime of moral turpitude and a crime of dishonesty: it can bar or revoke professional licenses (law, CPA, real estate, nursing, insurance, financial services), disqualify the defendant from fiduciary roles and positions of trust, permanently bar future public office (Colorado, South Dakota), and trigger immigration consequences for non-citizens (deportation, inadmissibility). A felony record restricts voting (varies by state), firearm possession, jury service, certain public benefits, and housing/employment for life. Background checks reveal theft convictions, and many employers will not hire anyone with an embezzlement conviction for a role handling money. Some states allow expungement or sealing after a waiting period (California PC 1203.4, Nevada record sealing); others do not.

If you are charged with embezzlement — or even contacted by an employer, auditor, or law enforcement about missing funds — speak to a criminal defense attorney immediately. Do not give a statement, do not 'explain' what happened, and do not sign a confession or repayment agreement without counsel. Anything you say can be used to prove intent, value, and identity of the property — the elements the prosecution must prove.

Common defenses include: lack of intent to permanently deprive (a good-faith claim of right, disputed commission, or honest mistake), authorization to use the property, accounting error or commingling without fraudulent intent, identification/disputed-ownership issues, and challenges to the prosecution's valuation (fair market value, not retail or replacement cost, is the standard in most states). In many cases the defense focuses on reducing the dollar amount below the felony threshold, which can convert a felony into a misdemeanor with dramatically lower consequences.

An attorney can also negotiate restitution-first resolutions (paying back the money in exchange for dismissal or a reduced charge), diversion programs, deferred prosecution, or a misdemeanor plea. Early repayment and cooperation can significantly affect charging and sentencing. If you cannot afford a private attorney, request a public defender at your first court appearance. This is informational only, not legal advice — the statutes above change, and only a lawyer in your state can tell you how the law applies to your specific facts.