When Can a Person Face Embezzlement Charges in Texas?

 Posted on February 11, 2026 in Criminal Defense

Embezzlement is a serious crime that involves taking money or other property entrusted to someone's care. In Texas, embezzlement is a white collar crime that is a form of theft. It may be treated as a misdemeanor or felony offense depending on the circumstances of the case. If you are convicted of embezzlement, you face severe penalties, including imprisonment and hefty fines. 

Have you been accused of embezzlement in 2026? Are you under investigation? You need to understand the elements of embezzlement and get a Plano, TX criminal defense attorney on your side immediately. 

What Is Embezzlement?

While embezzlement is not a formal offense that is defined in Texas law, it is a form of theft under Sec. 31.01 that results in criminal charges. Embezzlement occurs when someone who has been entrusted with someone else's property or money uses them for personal reasons. 

This crime typically involves a breach of trust, as the individual accused of embezzlement had usually been granted authority or responsibility over the assets they are accused of stealing.

Embezzlement can take various forms, such as:

• Diverting funds from a company's accounts into personal accounts
• Manipulating a company’s financial records to conceal the theft
• Using company funds to pay for personal, non-business expenses
• Stealing supplies or equipment from an employer
• Creating fictitious employees or vendors and funneling money to them

Elements of Embezzlement

To show that someone has committed embezzlement in Texas, prosecutors must show that an offense involved the following elements:

• The defendant had a fiduciary relationship with the victim, meaning that they were trusted with the victim’s property and money.
• The defendant acquired the property or funds through the fiduciary relationship.
• The defendant intentionally misappropriated or converted the property or funds for personal use.
• The defendant acted without the permission or consent of the owner.

If the prosecution can establish these elements beyond a reasonable doubt, the accused individual may be convicted of embezzlement.

Penalties for an Embezzlement Conviction in Texas

The specific penalties a person may face if they are convicted of embezzlement in Texas depends on the value of the money or property that was allegedly stolen. Smaller amounts of embezzled property or money may only be a misdemeanor, with low fines and time in county jail. For example, if you take $500 from your employer’s cash till, you could be charged with a Class B misdemeanor, fined up to $2,000, and spend up to six months in county jail. 

But if you are convicted of stealing assets of significant value, you could face serious penalties. For example, theft of property worth more than $300,000 is a first-degree felony that allows between five and 99 years in person, plus fines up to $10,000. 

Note that enhanced penalties apply in certain circumstances. For example, if you are convicted of embezzling from an elderly person or a non-profit organization, you may be charged with the next highest level of offense. 

What to Do If You Were Falsely Accused of Embezzlement

It is understandable to feel shocked, angry, or confused if accused of embezzlement out of nowhere. You may be tempted to confront your accusers immediately or adamantly state your innocence. However, anything you say or do after an accusation could be used against you or mischaracterized. 

Next, discreetly document the details of the allegations you have been aware of. When and how were you informed of the suspicions or investigation? This will help give your lawyer crucial context later. Proactively compiling evidence in your defense could also help alleviate some anxiety over the situation.

Work closely with your lawyer to pull together documentation that could help prove your innocence. This may include financial records, emails, time cards, accounting statements, and more showing you did not illicitly misdirect company funds. An attorney can help identify which documents will construct the most robust factual defense. Do not destroy or delete any data without your lawyer’s guidance.

Possible Defenses Against Embezzlement Charges

If you have been accused of embezzlement in Texas, you absolutely must work with an attorney who can assess the specific circumstances of your case and develop a strong defense strategy. Some potential defenses that may be raised against embezzlement accusations include:

Lack of Intent

You may be able to prove that you were not planning to actually permanently take the property or funds or property in your possession.

Mistaken Belief

You may show that you genuinely believed that you had the right to the property or funds in question.

Insufficient Evidence

If the prosecution fails to provide sufficient evidence to establish all the elements of embezzlement, your case may be dismissed, or you may be acquitted of the charges.

Evidentiary or Constitutional Mistakes

You have legal rights, even when you’re under investigation for a serious crime. The prosecution also has to handle evidence carefully so it doesn’t get misplaced or misconstrued as something it is not. Your attorney may be able to argue that your rights were violated – for example, if you were improperly searched without a warrant. These strategies can make all the difference in an embezzlement case. 

Contact a Plano Embezzlement Defense Attorney

If you are facing accusations of embezzlement, or if you have been charged with theft, you need a good lawyer.

At The Crowder Law Firm, P.C., our experienced Collin County property crime defense lawyers have a deep understanding of Texas’ criminal laws. We can provide you with the aggressive defense you need. Contact us today at 214-544-0061 to schedule a free consultation.