In Texas, embezzlement is a white-collar crime that can carry harsh consequences, especially when the stolen amount qualifies as a felony-level offense. Prosecutors treat these cases seriously, and courts in Bexar County and across the state do not hesitate to impose prison time.
If you are under investigation or facing charges for felony embezzlement in San Antonio, knowing what you are up against is critical. From felony classifications to sentencing ranges, this guide outlines the legal landscape and what penalties you might face.
How Does Texas Define Embezzlement?
Texas does not have a standalone embezzlement statute. Instead, these cases are charged under the broader umbrella of theft offenses, found in Texas Penal Code § 31.03.
Embezzlement generally refers to the unlawful appropriation of property entrusted to someone, often by an employer or client. The key distinction from other types of theft is that the accused had lawful access to the property at the start.
Common examples include:
- Taking money from a business account for personal use
- Falsifying invoices or payroll records
- Redirecting client payments into personal accounts
- Manipulating company expense systems
In a white-collar context, embezzlement may be part of a broader scheme involving fraud or forgery, triggering additional charges.
What Makes Embezzlement a Felony in Texas?
The severity of a theft offense in Texas depends on the value of the property or funds taken. Once that value exceeds $2,500, the charge moves from misdemeanor to felony.
Here is how Texas law breaks down felony embezzlement thresholds:
- State Jail Felony: $2,500 to $29,999
- Third-Degree Felony: $30,000 to $149,999
- Second-Degree Felony: $150,000 to $299,999
- First-Degree Felony: $300,000 or more
These are not just numbers; they directly affect your sentencing exposure, your criminal record, and how aggressively a prosecutor may pursue the case.
What Penalties Can You Face for Felony Embezzlement?
Once an offense qualifies as a felony, the possible penalties escalate significantly. Below is a breakdown of felony embezzlement classifications and their associated punishments under Texas law:
State Jail Felony
- Sentence: 180 days to 2 years in a state jail facility
- Fine: Up to $10,000
- Notes: Judges may grant probation or deferred adjudication, but prosecutors in San Antonio often push back on leniency when business victims are involved.
Third-Degree Felony
- Sentence: 2 to 10 years in prison
- Fine: Up to $10,000
- Notes: A third-degree felony can carry weighty consequences for licensed professionals and those in finance or public trust positions.
Second-Degree Felony
- Sentence: 2 to 20 years in prison
- Fine: Up to $10,000
- Notes: These charges are often filed in cases involving sophisticated schemes or prolonged misconduct.
First-Degree Felony
- Sentence: 5 to 99 years or life in prison
- Fine: Up to $10,000
- Notes: Rare, but not unheard of. Large-scale corporate embezzlement or public corruption cases can reach this level.
Can Penalties Be Enhanced?
Yes. Certain aggravating factors can increase sentencing ranges or reclassify the charge:
- The victim was an elderly person or a nonprofit
- The accused was a public servant
- The funds were obtained through contracting with the government
- Prior convictions for theft-related crimes
These enhancements are commonly used in Bexar County prosecutions to push cases into more serious penalty categories.
Where Are These Cases Heard in San Antonio?
Felony embezzlement cases are typically handled in the Bexar County District Courts, located at the Cadena-Reeves Justice Center downtown. Pretrial hearings, motions, and trials often span several months, depending on complexity.
San Antonio prosecutors assign experienced white-collar units to these cases, especially when a financial institution, government agency, or major employer is involved.
How Do Prosecutors Build Embezzlement Cases?
As former high-level prosecutors ourselves, we understand the playbook.
Investigations often start quietly through internal audits, whistleblowers, or subpoenas. Law enforcement may not make contact until they believe they already have a strong case.
Evidence often includes:
- Bank records and financial transactions
- Internal accounting data
- Emails and digital communications
- Testimony from coworkers or forensic auditors
One key difference with white-collar cases is the heavy reliance on documents, timelines, and intent. Prosecutors must prove not just that money is missing but that it was taken unlawfully and with the intent to deprive.
Is Jail Mandatory for Felony Embezzlement?
Not always. Texas’s sentencing laws allow for discretion, especially for first-time offenders or those who show restitution efforts. But with felony charges, especially those in the third degree and above, jail or prison time is absolutely on the table.
Judges may consider alternatives such as:
- Deferred adjudication (for eligible offenses)
- Probation with strict financial conditions
- Restitution agreements
- Treatment programs, if substance abuse was a factor
Even so, San Antonio courts are often less flexible when the conduct involves a breach of trust or public funds.
Why Does Having Former Prosecutors Matter in Embezzlement Defense?
Embezzlement cases often hinge on interpretation: Did the accused act with criminal intent, or was it a misunderstanding? Was this a bookkeeping error or deception? Did the employer authorize the expense?
We spent years building these cases for the State. Now, we dismantle them.
That perspective allows us to:
- Anticipate the strategy and tactics of the DA’s office
- Challenge evidence from a prosecutor’s point of view
- Know when a case is thin and when it is worth fighting in court
This insight can be especially powerful when negotiating with prosecutors or cross-examining financial experts.
What Should You Do If You Are Being Investigated?
If you believe you are under investigation or have been contacted by law enforcement, do not wait.
White-collar charges often move slower than other cases, but that does not make them any less serious. Early legal representation can protect you from saying the wrong thing, help control the flow of information, and begin building a strategic response.
Even a brief conversation with investigators can end up as evidence.
What Sets Our Firm Apart?
At LaHood Norton Law Group, we bring experience that few firms in San Antonio can match. Every member of our team, including our of-counsel attorney, served as a high-ranking prosecutor before joining our defense practice.
We focus on complex, high-stakes cases. We are not a volume firm, and we do not chase easy wins. Clients come to us because their situation calls for precision, discretion, and strength.
Call us today at 210-750-4490 for a confidential consultation.
