This page was written, edited, reviewed & approved by Brian LaVine following our comprehensive editorial guidelines. Brian LaVine the Founding Partner, 10+ years of legal experience as criminal defense attorney.
At LaVine Law Firm, our Houston embezzlement lawyer defends employees, executives, trustees, and business partners accused of financial misconduct across Harris County and beyond. Embezzlement in Texas is prosecuted as theft by appropriation under the Texas Penal Code. This charge ranges from a misdemeanor to a first-degree felony depending on the value of the funds allegedly taken.
According to the Association of Certified Fraud Examiners (ACFE), the median loss in a single occupational fraud case in the United States exceeds $100,000. Texas generates a high volume of embezzlement investigations each year. The state is home to major energy, healthcare, and financial services companies. Houston sits at the center of many of the most significant cases.
Many embezzlement charges in Houston stem from workplace disputes, accounting errors, or business breakdowns. These situations often get mischaracterized as criminal conduct. A charge does not mean a conviction. Aggressive legal defense from the moment an investigation begins is essential to protecting your rights and your future. This page covers Texas embezzlement laws, the penalties you face, your defense options, and how LaVine Law Firm can help. Call 713-489-7806 for a free case evaluation.
LaVine Law Firm defends individuals facing embezzlement and theft by appropriation charges in Houston and throughout Harris County. We represent corporate employees, nonprofit officers, government workers, estate fiduciaries, and business partners at every stage of the criminal justice system.
We engage immediately upon contact. Embezzlement investigations often begin months before formal charges are filed. Early involvement by LaVine Law Firm lets us protect your rights during the investigation phase, before an arrest occurs. Acting early can make the difference between charges being filed and the case never reaching court.
We work with forensic accountants and financial analysts to challenge the prosecution's view of the transactions. We identify alternative explanations for fund movements and expose gaps in the state's theory of the case. Our team evaluates both state and potential federal exposure. Embezzlement involving banks, federal programs, or interstate wire transfers can attract federal prosecution in addition to state charges.
We negotiate with Harris County prosecutors and federal agencies to pursue dismissals, charge reductions, or restitution agreements that limit your criminal exposure. Every case is different, and we tailor our approach to the specific facts. Contact LaVine Law Firm to speak with a Houston embezzlement attorney today. Call 713-489-7806.
Texas does not have a standalone embezzlement statute. Instead, embezzlement is charged under Texas Penal Code § 31.03 (Theft by Appropriation). This law criminalizes the unlawful appropriation of property with the intent to deprive the owner of it. The property includes money, negotiable instruments, real property, services, and digital assets. This broad definition makes the law applicable across Houston's business and financial sectors, from energy companies to nonprofit organizations to estate administration.
A key feature of embezzlement is that the property was lawfully entrusted to the defendant. This is what makes these cases uniquely complex. Understanding what Texas law requires and which scenarios are most commonly charged in Houston builds the foundation for a meaningful defense. The sections below break down the statute and the most common fact patterns we see in Harris County criminal defense cases.
Under Texas Penal Code § 31.03, theft by appropriation occurs when a person unlawfully takes property with the intent to deprive the owner of it. The law captures classic embezzlement scenarios, specifically situations in which an employee, officer, or fiduciary diverts funds entrusted to them. The property does not need to be taken by force or deception from the start. It simply must be misappropriated after being lawfully received.
The intent element is critical. The prosecution must prove the defendant specifically intended to deprive the owner of the property. Accidental misallocations, bookkeeping errors, and good-faith business decisions that result in financial loss do not meet this standard. This distinction is where many embezzlement defenses begin.
"Property" under the statute includes money, negotiable instruments, real property, services, and digital assets. The charge tier depends entirely on the aggregate value of the property taken, not the defendant's title or position.
Houston prosecutors pursue embezzlement charges across a wide range of industries and relationships. These are the most common fact patterns we handle at LaVine Law Firm:
An Experienced Attorney Can Protect Your Rights
Embezzlement penalties in Texas depend entirely on the value of the property allegedly taken. The tiers rise from a Class C misdemeanor to a first-degree felony as the dollar amount increases. Prosecutors can combine multiple transactions across time to reach a higher penalty tier. This makes the charging decision a strategic one that a skilled criminal defense lawyer can challenge.
Texas sets the penalty for theft by appropriation on a sliding scale. Here is the full breakdown:
| Amount | Type | Penalty |
| Under $100 | Class C Misdemeanor | Fine up to $500; no jail time |
| $100 – $749 | Class B Misdemeanor | Up to 180 days in county jail; fine up to $2,000 |
| $750 – $2,499 | Class A Misdemeanor | Up to 1 year in county jail; fine up to $4,000 |
| $2,500 – $29,999 | State Jail Felony | 180 days – 2 years in state jail; fine up to $10,000 |
| $30,000 – $149,999 | Third-Degree Felony | 2–10 years in TDCJ; fine up to $10,000 |
| $150,000 – $299,999 | Second-Degree Felony | 2–20 years in TDCJ; fine up to $10,000 |
| $300,000 or more | First-Degree Felony | 5–99 years or life in TDCJ; fine up to $10,000 |
Two special enhancement provisions also apply. First, theft from an elderly individual (age 65 or older) elevates the charge one tier. Second, theft of government funds by a public servant is subject to enhanced punishment under Texas law.
Federal exposure adds another layer. When the conduct involves federally insured financial institutions, federal grant funds, or interstate wire transfers, the U.S. Attorney's Office may pursue charges under 18 U.S.C. § 666 (theft from programs receiving federal funds) or federal wire fraud statutes. Federal sentencing guidelines can exceed Texas state ranges. That is why early defense intervention is critical in these cases.
An embezzlement conviction in Houston carries consequences far beyond the criminal sentence. In many cases, the collateral effects are what most damage a client's life, career, and financial future.
Embezzlement charges in Houston are heavily dependent on evidence. They rise and fall on financial records, transaction data, and the prosecution's ability to prove both the act of misappropriation and the specific intent to deprive. That evidentiary complexity creates real room for defense, especially when forensic accounting and financial analysis are deployed by skilled defense counsel. LaVine Law Firm reviews the prosecution's financial evidence before recommending any defense path.
We use a range of proven defense strategies to protect our clients. The right approach depends on the specific facts of the case:
We represent clients facing embezzlement charges in Harris, Montgomery, and Galveston Counties. Whether your case involves a state criminal charge or a federal crime, we bring the same level of preparation to every case.
What is the difference between embezzlement and theft in Texas?
In Texas, there is no separate embezzlement law. Both theft and embezzlement are charged under Texas Penal Code § 31.03. The key difference is the relationship between the defendant and the property. In theft, the property is taken without any prior lawful access. In embezzlement, the property was entrusted to the defendant first, and then misappropriated. This distinction affects the defense strategy but not the name of the charge.
Can an embezzlement charge be dismissed in Houston?
Yes. A dismissal is a real outcome in many cases. Common grounds include insufficient evidence of criminal intent, proof that the defendant had authorization for the transactions, errors in the prosecution's financial calculations, constitutional violations during the investigation, or negotiated resolution before charges are formally filed. LaVine Law Firm evaluates every angle before recommending a path forward.
What is the difference between state and federal embezzlement charges?
State embezzlement charges are filed in Harris County courts under Texas Penal Code § 31.03. Federal embezzlement charges arise when the conduct involves federally insured institutions, federal programs, or interstate wire transfers. Federal fraud charges carry separate sentencing guidelines and are prosecuted by the U.S. Attorney's Office. A single embezzlement scheme can result in both state and federal criminal cases.
Will an embezzlement conviction affect my professional license in Texas?
Yes, and the consequences can be severe. Most Texas licensing boards, including those for CPAs, attorneys, nurses, real estate agents, and financial advisers, treat theft and fraud convictions as serious grounds for suspension or revocation. Some boards require mandatory reporting of criminal charges even before a conviction. The College of the State Bar of Texas and the State Bar of Texas both maintain strict standards for members facing criminal charges.
Can I be sued civilly for embezzlement in addition to facing criminal charges?
Yes. Texas law allows a victim to pursue a civil action for breach of fiduciary duty, fraud, or conversion concurrently with the criminal case. A conviction in criminal court makes civil liability close to automatic. Civil and administrative litigation can result in judgments far exceeding the original criminal fines, especially when business losses, investigative costs, and attorney fees are included.
What should I do if I am under investigation for embezzlement?
Do not speak to investigators, HR, or company attorneys without your own legal counsel. Early contact with LaVine Law Firm can shape the course of the investigation before charges are filed. We can communicate with investigators on your behalf, assess whether internal corporate investigations are likely to refer the matter to law enforcement, and begin building your defense while the evidence is still fresh.
Embezzlement investigations in Houston can run for months before charges are filed. By then, prosecutors have built a strong paper case. Retaining LaVine Law Firm early can change the outcome. We handle all levels of embezzlement charges, from misdemeanor theft to first‑degree felony fraud, in Houston and Harris County. Our team works with forensic accountants and handles both state and federal cases. We are ready to review your allegations and build your defense immediately. Call 713-489-7806 for a free, confidential case evaluation. Early action preserves your options. We will protect your freedom, record, and future.
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