Protect Yourself When Accused of Embezzlement
Here’s How We Defend Your Reputation and Your Future
You are being accused of taking money that was not yours. Maybe the allegation comes from an employer, a client, a nonprofit, a government office, or a business partner. But in many embezzlement cases, the full picture is more complicated than the accusation makes it sound.
What someone calls “theft” may involve unclear authority, poor internal controls, reimbursement confusion, bookkeeping errors, disputed business practices, or a breakdown in trust. That does not mean you should explain your way through it alone. In financial crime cases, what you say early can shape the entire investigation.
At Christian, Nisbet & Casillas, we defend professionals, nonprofit leaders, government employees, business owners, and employees accused of embezzlement, theft, and financial mismanagement. These cases are often sensitive, personal, and reputation-threatening. Early, strategic legal defense can change the direction of the case before assumptions become charges.
What Is Embezzlement in Texas?
Texas law generally does not use the word “embezzlement” as a separate standalone offense. Most cases people refer to as embezzlement are prosecuted as theft under Texas Penal Code § 31.03.
Under Texas theft law, the State must generally prove that a person unlawfully appropriated property with the intent to deprive the owner of that property. In an embezzlement-type case, the accused person often had lawful access to the money, account, payroll system, credit card, or financial records because of their job or position of trust.
That is what makes these cases different. The issue is often not whether the person touched the money. The issue is whether the person had authority, whether the use was permitted, whether the accounting is accurate, and whether the State can prove criminal intent.
Common examples of alleged embezzlement include:
Redirecting business funds for personal use
Creating or approving “ghost” employees on payroll
Falsifying hours, expenses, reimbursements, or invoices
Transferring money from a nonprofit, estate, campaign, or business account
Pocketing cash sales, deposits, or client payments
Using a company card beyond the agreed terms
Moving money between accounts without clear documentation or approval
How Texas Determines Penalties
Penalties in an embezzlement-related theft case usually depend on the value of the property or funds involved. Texas theft penalties are value-based, and higher alleged losses can move a case from a misdemeanor to a felony.
Texas theft penalty levels may include:
Less than $100: Class C misdemeanor
$100 or more but less than $750: Class B misdemeanor
$750 or more but less than $2,500: Class A misdemeanor
$2,500 or more but less than $30,000: state jail felony
$30,000 or more but less than $150,000: third-degree felony
$150,000 or more but less than $300,000: second-degree felony
$300,000 or more: first-degree felony
Enhancements may apply in certain cases, including allegations involving a public servant, a government contractor, an elderly victim, a nonprofit organization, or other aggravating facts. Because the penalty level can depend heavily on the alleged value and the way the funds were handled, challenging the amount is often a major part of the defense.
When an Embezzlement Case Can Become Federal
Some financial crime allegations are handled in state court. Others may become federal cases, especially when the accusation involves public money, federal program funds, banks, credit unions, employee benefit plans, health care funds, or organizations that receive federal assistance.
Federal embezzlement and theft laws can carry severe penalties. For example, federal law includes statutes addressing public money or property, theft or misapplication by bank officers or employees, employee benefit plans, and programs receiving federal funds. If federal agents, auditors, inspectors, or grand jury subpoenas are involved, the situation should be treated as serious immediately.
Why These Cases Are Often More Complicated Than They Look
Embezzlement accusations usually begin with records: bank statements, accounting software, payroll reports, invoices, credit card statements, internal emails, QuickBooks entries, audit notes, or cash logs. But records do not always tell the whole story.
A spreadsheet can show a transfer without showing permission. An expense report can look suspicious without showing context. A missing receipt may be a policy problem, not proof of theft. A nonprofit or small business may have loose procedures that make ordinary decisions look criminal after relationships break down.
That is why the defense needs to start with the paper trail, but not end there. We look at the records, the people, the policies, the timeline, and the real-world authority the accused person actually had.
How We Defend Embezzlement Charges
1. We examine the paper trail
We review the financial records transaction by transaction. That may include bank records, payroll files, invoices, reimbursement requests, accounting exports, email approvals, text messages, and internal policies. The goal is to identify what the records actually prove and what prosecutors are assuming.
2. We challenge intent
A mistake, misunderstanding, unclear policy, or accounting error is not the same as criminal intent. In many cases, the key question is whether the State can prove the accused person intended to deprive the owner of money or property.
3. We challenge the value and scope of the allegation
Loss amounts are often overstated. Prosecutors or complainants may combine disputed transactions, include authorized payments, count business losses that were not theft, or rely on incomplete audits. We push back on inflated numbers because the alleged value can directly affect the charge level and punishment exposure.
4. We examine authority and role ambiguity
In small businesses, nonprofits, campaigns, family businesses, and professional offices, roles often overlap. If the accused person had access, approval authority, informal permission, or unclear limits, that can matter. Access alone is not a confession.
5. We look for civil or pretrial resolutions when appropriate
Not every financial dispute belongs in criminal court. Where the facts support it, we may pursue dismissal, reduction, pretrial diversion, restitution-based resolutions, civil treatment of the dispute, or an outcome that avoids a theft conviction.
6. We protect your career and reputation
Embezzlement accusations can threaten professional licenses, employment, security clearances, public trust, and future opportunities. We move quickly to limit unnecessary exposure, protect privacy where possible, and help clients avoid statements or actions that make the case harder to defend.
What to Do If You Are Accused of Embezzlement
Do not try to explain the situation to your employer, board, coworkers, auditors, or investigators without legal advice.
Do not delete, edit, recreate, backdate, or “fix” records.
Do not repay money or sign an agreement without understanding how it could be used against you.
Save your own records, timeline, communications, receipts, approvals, and policy documents.
Avoid discussing the accusation by text, email, or social media.
Contact a criminal defense attorney before making any statement.
Final Thoughts
Embezzlement accusations are deeply personal. They attack your finances, your name, your career, and your integrity all at once. But you are not guilty just because someone points to your role, questions a transaction, or makes assumptions about missing money.
The earlier you involve a defense attorney, the more options you may have to protect your future, challenge the records, and keep the accusation from defining your life.
When trust turns into suspicion, before you lose everything…we’re that call
Frequently Asked Questions About Embezzlement
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Texas generally does not use “embezzlement” as a separate standalone criminal offense. Most allegations described as embezzlement are prosecuted as theft when the State claims someone unlawfully appropriated property with intent to deprive the owner.
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In many embezzlement cases, the accused person originally had lawful access to money, accounts, cards, payroll systems, or records. The dispute often turns on intent, authority, internal policies, and whether the person had permission to use or move funds.
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Penalties usually depend on the value of the property involved. Lower-value cases may be misdemeanors, while theft of $2,500 or more can become a felony. Theft of $300,000 or more can be charged as a first-degree felony. Enhancements may apply in some cases.
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Yes. Poor recordkeeping, unclear reimbursement practices, payroll errors, overlapping job duties, or business disputes can sometimes lead to criminal accusations. A defense attorney can review the records to determine whether the evidence actually shows criminal intent.
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Do not try to explain, repay, delete, edit, or correct records without legal advice. Preserve your records, avoid discussing the accusation with coworkers or investigators, and speak with a defense attorney before making any statement.
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Yes. Some allegations may become federal cases if they involve public money, federal funds, financial institutions, employee benefit plans, health care funds, or organizations receiving federal assistance.
