Is embezzlement a felony in California? It can be. If the amount is $950 or less, embezzlement is usually a misdemeanor. If it’s more than $950, it can be charged as either a misdemeanor or a felony. And if the money belonged to the public, such as city or county funds, it’s always a felony.
Embezzlement is different from regular theft in one key way. You didn’t sneak the money out. Someone trusted you with it, and you’re accused of using it for yourself. Below, we explain how California law treats embezzlement, what penalties look like, and what to do if you’ve been accused.
What Is Embezzlement Under California Penal Code 503?
California Penal Code Section 503 defines embezzlement as, “the fraudulent appropriation of property by a person to whom it has been intrusted.” (“Intrusted” is the old spelling of “entrusted” that the law still uses.) Embezzlement is when a person entrusts another person with property or money and the entrusted person takes the owner’s property for their own benefit. While the embezzler was given money by the owner, the embezzler essentially steals the money once they use the money for purposes other than what the owner intended.
What sets embezzlement apart from other crimes is that embezzlement requires a break in trust. The person didn’t sneak the money out. They were handed it, and then used it in a way they weren’t allowed to.
To convict you, a prosecutor has to prove four things (CALCRIM 1806):
- The owner trusted you with property or money
- They gave it to you because they trusted you
- You used it for your own benefit, in a way you weren’t allowed to
- When you did, you meant to keep it from the owner, even if only for a while
That last point catches people off guard. Planning to pay it back later is not a defense. Say an office manager “borrows” $3,000 from the company account to cover rent, fully planning to put it back next month. That can still be embezzlement.
Is Embezzlement a Felony or Misdemeanor?
The penalty for embezzlement is either a misdemeanor or a felony, because it depends on the amount of money stolen or the amount of money the property was worth. California doesn’t have a separate penalty list for embezzlement. Instead, embezzlement is punished the same way as theft of the same amount (PC 514). So the dollar amount decides most of it.
| What was embezzled | Type of crime | Highest penalty |
|---|---|---|
| $950 or less | Petty theft, a misdemeanor | Up to 6 months in county jail and a fine of up to $1,000 |
| More than $950 | Grand theft, a wobbler | Up to 1 year in county jail as a misdemeanor, or 16 months, 2 or 3 years as a felony |
| A firearm, any value | Grand theft, a felony | 16 months, 2 or 3 years in state prison |
| Public money (city, county, state or federal) | Felony | State prison, and you can never hold public office in California |
A wobbler is a crime the prosecutor can file as either a misdemeanor or a felony. It’s a statewide term, not a local one. Prosecutors look at the amount, how long it went on, and your record when they choose. A felony conviction can also bring a fine of up to $10,000.
So, is embezzlement a felony? Here’s how it plays out in practice:
- A cashier pockets $400 from the register over a few weeks. That’s petty theft by embezzlement, a misdemeanor.
- A bookkeeper moves $25,000 to her own account over a year. That’s grand theft under PC 487, and with that amount it will likely be filed as a felony.
- A city clerk takes $2,000 in permit fees. Because it’s public money, it’s a felony, even though the amount is small.
How Prop 36 Changed Embezzlement Cases
California voters passed Proposition 36 in November 2024. Two of its changes hit embezzlement cases hard.
1. Small amounts can be added together. Under PC 490.3, prosecutors can combine the value of several thefts into one charge. So ten “small” transfers of $200 can be treated as one $2,000 grand theft, which can be a felony.
2. Big losses add extra prison time. Prop 36 brought back an older law that adds time on top of a felony sentence when the loss is large (PC 12022.6):
| Total loss | Extra time added |
|---|---|
| More than $50,000 | 1 year |
| More than $200,000 | 2 years |
| More than $1 million | 3 years |
| More than $3 million | 4 years, plus 1 more year for every extra $3 million |
This extra time is called an enhancement. It’s added on top of the 16 months, 2 or 3 years for felony grand theft. Losses from different victims can be added together if they came from one plan.
Here’s what that means in real life. Say a payroll manager at a Bakersfield company is accused of moving $240,000 over three years. Before Prop 36, this add-on wasn’t available. Now prosecutors can ask for 2 more years on top of the grand theft sentence. (In bigger fraud cases with several related charges, other enhancements can apply too, which is one more reason to get advice early.)
Examples of Embezzlement
Embezzlement shows up in a lot of everyday jobs. Here are some common examples of embezzlement:
- Employee embezzlement: a store manager keeps part of the daily cash deposit, or a bookkeeper pays personal bills from the business account.
- Payroll tricks: adding a fake employee, or paying yourself for hours you didn’t work.
- Caregivers and family members: using an elderly parent’s money for your own expenses while handling their bills.
- Nonprofits and churches: a treasurer moves donations into a personal account.
- Contractors: taking a deposit for materials and using it for something else, with no plan to do the job.
- Public employees: taking fees, fines or public funds.
Crimes Related to Embezzlement
In many cases, a person who is charged with embezzlement can also be charged with other crimes that relate to the stealing and distribution of embezzled funds or property. These crimes can include:
- Forgery
- Burglary
- Misappropriation of public funds
- Receiving stolen property
- Grand theft
- Petty theft
Embezzlement vs. larceny vs. fraud
People often mix these up. The difference is how the person got the money in the first place:
| Crime | How the money was taken | Example |
|---|---|---|
| Embezzlement | You were trusted with it, then used it for yourself | A bookkeeper pays her own credit card from the company account |
| Larceny (regular theft) | You took it without permission | Someone takes cash from a coworker’s desk |
| Fraud (theft by false pretense) | You lied to get it handed over | Someone sells a car they don’t own and takes the deposit |
Is embezzlement worse than theft? Not by law. In California, all three are forms of theft and are punished by the same amounts. But embezzlement cases often involve more money over a longer time, so the totals, and the penalties, can end up higher.
What Is the Statute of Limitations for Embezzlement in California?
The statute of limitations refers to the amount of time the state or federal government has to charge a person with a crime. For some crimes, there is no limit. For others, the clock runs out after a set number of years.
For embezzlement in California, it works like this:
| Type of case | Deadline to file charges |
|---|---|
| Embezzlement of public funds | No limit. Charges can be filed at any time (PC 799) |
| Felony embezzlement of private money (usually over $950) | 4 years from when it was discovered, or 4 years from when it ended, whichever is later (PC 801.5 and PC 803(c)) |
| Misdemeanor embezzlement ($950 or less) | Generally 1 year (PC 802) |
The “from when it was discovered” rule is the one that surprises people. Say a nonprofit treasurer moved money from 2021 to 2023, and the new board found it in a 2026 audit. The DA could have until 2030 to file felony charges.
There’s one limit: courts expect the victim and investigators to act with reasonable care. If the missing money should have been noticed years earlier, a defense lawyer can argue the clock started then.
Defenses to Embezzlement Charges
An accusation isn’t the same as a conviction. The right defense depends on the records and on what you were allowed to do. Common defenses include:
- You had permission. Your boss approved the bonus, the advance or the purchase. Emails, texts and old approvals can matter a lot here.
- You honestly believed the money was yours. California law says it’s a defense if you took the property openly, under a good-faith claim that it belonged to you, even if that claim turns out to be wrong (PC 511).
- It was a mistake, not a plan. Bookkeeping errors, mixed-up accounts and sloppy records are not the same as fraud.
- The amount is wrong. Audits often count the same transfer twice or include money you were owed. Lowering the total can change a felony to a misdemeanor, or remove a Prop 36 enhancement.
- Someone else had access. If several people could use the same login or checkbook, the prosecutor has to prove it was you.
What about paying the money back?
This is one of the most common questions we get, and the law is specific:
- Planning to pay it back is not a defense (PC 512).
- Actually paying it back before charges are filed still isn’t a defense, but it lets the judge give you a lighter sentence (PC 513).
That’s why timing matters, and why repayment should be handled through a lawyer. Paying back on your own, with a written apology, can also become evidence against you. If the case goes forward, the court will usually order restitution, which means paying the victim back for the loss.
If you’ve been told about an audit or a detective has called, you may already be under investigation for fraud [LINK: under investigation for fraud post, once published]. The steps you take before charges are filed, like not giving a statement without a lawyer and not deleting records, can shape the whole case.
Embezzlement Charges in Bakersfield and Kern County
In Kern County, embezzlement cases usually start with a business owner, a bank, a nonprofit board or a family member who finds missing money and calls the Bakersfield Police Department or the Kern County Sheriff’s Office. Larger or more complex cases may go to the Kern County District Attorney’s investigators. If charges are filed in Bakersfield, the case is usually heard at the Kern County Superior Court’s Metropolitan Division, 1415 Truxtun Avenue.
Do police investigate embezzlement? Yes, but often slowly. A lot of the work happens on paper: bank records, payroll files and audit reports. Many people don’t hear from a detective until months after the money was first noticed. That quiet time is often the best window to get a lawyer involved.
If you’re facing an embezzlement accusation in Kern County, working with a Bakersfield white collar crimes attorney early gives you the most room to explain the records before the DA decides what to charge.
Embezzlement in California: Common Questions
How long do you go to jail for embezzlement in California?
It depends on the amount. For $950 or less, the most is 6 months in county jail. For more than $950, it’s up to 1 year as a misdemeanor, or 16 months, 2 or 3 years as a felony. Large losses can add 1 to 4 or more years under Prop 36. Those are the highest possible sentences, not what every case gets.
What happens with first-time embezzlement charges?
There’s no special “first offense” rule for embezzlement. But a clean record helps. In a case over $950, it can support charging the case as a misdemeanor instead of a felony, getting probation instead of jail, or asking the judge to reduce a felony to a misdemeanor later. Paying the money back early, through a lawyer, can also help.
Is embezzlement a federal crime?
It can be. Most embezzlement cases in California are state cases. But it becomes a federal crime when it involves things like a federally insured bank or federal government money. For example, a bank employee who embezzles more than $1,000 faces up to 30 years in federal prison (18 U.S.C. 656), and taking more than $1,000 of federal money can bring up to 10 years (18 U.S.C. 641).
What happens to someone who embezzled money?
Usually, the employer or victim finds the loss, reports it, and the police or DA investigators build the case from records. If you’re convicted, you’ll be ordered to pay the money back, and you may face jail or prison, probation and a criminal record. The victim can also sue you separately to get the money back.
Need Help?
Embezzlement is not a charge to take lightly. David L. Faulkner has experience with defending people who have been charged with a white collar crime. If you are seeking legal help for embezzlement charges, contact the Law Office of David L. Faulkner. We’ll look at the records, explain where you stand, and help you plan your next step, ideally before charges are filed. Contact our office or call (661) 324-4777 for a free consultation.
