You open the letter from your employer. The words “internal investigation” and “financial discrepancies” jump off the page, and suddenly your world starts spinning. If you’re facing potential embezzlement allegations in Texas, you’re likely experiencing one of the most stressful moments of your life.

But there is hope. In this guide, we’ll break down what Texas law says about embezzlement. We’ll also discuss potential defense strategies at your disposal, and when it’s time to reach out to an attorney.

What Are Embezzlement Charges in Texas?

While many people use the term “embezzlement,” Texas law actually handles these cases differently than you might expect. Under Texas Penal Code Section 31.02, embezzlement isn’t charged as a separate crime. Instead, it falls under the broader category of theft.

The law consolidates various theft-related offenses, including embezzlement, into a single offense under Section 31.03. To prove theft in an embezzlement case, prosecutors must show that you:

• Unlawfully appropriated property
• Had intent to deprive the owner of their property
• Took the property without the owner’s effective consent

“At the heart of it is typically an accusation of theft,” says Graham Norris, founder of Norris Legal Group.

If you’ve been accused, a Fort Worth white collar crimes attorney can help.

Common Types of Embezzlement Cases in Texas

Based on Graham Norris’s experience defending white-collar cases in Tarrant County, embezzlement typically appears in a couple of common scenarios:

1. Employee-Employer Trust Violations
   • Unauthorized use of company funds
   • Diverting business money for personal use
   • “Borrowing” from company accounts with intention to repay
2. Financial Position Abuse
   • Misuse of company credit cards
   • Unauthorized loans from business accounts
   • Manipulation of financial records

Many cases, as Graham notes, begin with a “mixing of personal money and business money.” Sometimes it starts small, such as using company funds as a “safety valve” for unexpected medical expenses or family emergencies. However, even good intentions can lead to serious criminal charges under Texas law.

“I represented a person who was previously in law enforcement and who was a treasurer for a nonprofit,” Graham says. “He had access to that money, but it was supposed to go to that organization. He had a gambling addiction and was using the organization’s money to hide his gambling from his wife, and would pay it back. The organization found out and filed charges, even though he replaced all the money.”

Graham successfully defended this case, and his client avoided the 10-year sentence he was facing.

Signs of Embezzlement Risk

There are several red flags that might indicate you’re at risk of being accused of embezzlement at some point:

• Unclear boundaries between personal and business finances
• Using company funds as temporary loans
• Unaccounted for funds in your possession
• Pressure to explain financial discrepancies without preparation
• Receiving money you’re unsure you were supposed to get

“If you’ve got any questions about whether business practices are legal, you need to consult with an attorney,” Graham says. “But certainly if there’s unaccounted for funds and maybe you got money you weren’t sure you were supposed to get, that’s a red flag.”

Texas Embezzlement Penalties and Consequences

The penalties for embezzlement in Texas can be severe, varying based on the amount allegedly stolen. Even if you plan to pay back every dollar, you could still face serious consequences. Defendants can face up to 10 years in prison and substantial fines.

Here’s what you could face based on the amount involved:

• Less than $2,500: Misdemeanor charges
• $2,500 to $30,000: State jail felony
• $30,000 to $150,000: Third-degree felony
• $150,000 to $300,000: Second-degree felony
• $300,000 or more: First-degree felony

Beyond jail time and fines, a conviction can have lasting effects:

• Professional license suspension or revocation
• Difficulty finding future employment
• Permanent criminal record
• Loss of voting rights
• Damaged reputation in the community

Building an Effective Defense Strategy to Defend Against Embezzlement Charges in Texas

If you’ve been accused, your first step should be to contact a lawyer who can start building your case. From the outset, Graham focuses on understanding the specific circumstances of a client’s case to figure out how to craft a winning strategy.

“It’s vital at that initial conversation to get to the bottom of what really happened,” he says. “If they can bring any kind of financial records, or communications, those documents are vital.”

A strong defense strategy typically includes:

Documentation Review

• Complete financial records
• Email communications
• Bank statements
• Corporate policies
• Authorization documents

Early Intervention Steps

• Preserving critical evidence
• Analyzing financial transactions
• Identifying potential witnesses
• Reviewing company policies
• Examining authorization levels

It’s important not to talk to anyone if you believe you are suspected of embezzlement.

“Sometimes there’s a reputation and relationship in business settings – if they’re confronted, a lot of times individuals feel the need to give justification or make up an excuse, and either one can make it worse,” Graham says.

This is why it’s crucial to have legal representation before making any statements.

Why Choose Norris Legal Group to Handle Embezzlement Charges in Texas

When facing embezzlement charges in Texas, you need more than just a defense attorney – you need an advocate who understands the complexities of financial crimes and has a proven track record of successful resolutions.

Graham Norris’s approach has led to numerous favorable outcomes, including:

• Negotiating reduced charges
• Securing probation instead of jail time
• Preserving professional licenses
• Maintaining employment opportunities

Don’t let fear paralyze you into inaction. Contact Norris Legal Group today for a confidential consultation about your embezzlement case. Remember – the sooner you act, the more options we have to protect your future.