Embezzlement sounds like its own crime, but in Colorado it almost always shows up on paperwork as something else — usually “theft.” If you or someone you know has been accused of taking money or property entrusted to them by an employer, client, or organization, here is how Colorado actually charges and penalizes that conduct.
What Is Embezzlement Under Colorado Law?
Embezzlement generally means unlawfully taking or misusing property or money that was entrusted to you — for example, an employee diverting company funds, a bookkeeper altering records to skim cash, or a caretaker spending an elderly client’s money without permission. Colorado does not have a stand-alone crime called “embezzlement” for private conduct; instead, this behavior is folded into the state’s general theft statute, CRS § 18-4-401, which covers knowingly obtaining or exercising control over another’s property without authorization and with intent to permanently deprive them of it.
Is Embezzlement a Separate Crime in Colorado, or Is It Charged as Theft?
For private employers and individuals, it’s charged as theft. CRS § 18-4-403 allows prosecutors to use the word “embezzlement” interchangeably with “theft” in charging documents when property was entrusted to the defendant, but the elements and penalties come from the theft statute itself. The one major exception is embezzlement of public property, which has its own statute and its own penalty scheme, discussed below.
What Are the Penalties for Embezzlement in Colorado?
Because embezzlement is charged as theft, the penalty depends entirely on the dollar value of what was taken, under the valuation tiers in CRS § 18-4-401(2): amounts under $300 are a petty offense; $300 to $1,000 a class 2 misdemeanor; $1,000 to $2,000 a class 1 misdemeanor; $2,000 to $5,000 a class 6 felony; $5,000 to $20,000 a class 5 felony; $20,000 to $100,000 a class 4 felony; $100,000 to $1 million a class 3 felony; and $1 million or more a class 2 felony. A position of trust — such as being an employee, fiduciary, or caregiver — does not change the classification on its own, but it is often treated as an aggravating fact by prosecutors and judges at sentencing.
What Is Embezzlement of Public Property?
Taking or misusing property or funds belonging to a government entity is charged separately as a flat class 5 felony under CRS § 18-8-407 (roughly 1 to 3 years in prison, $1,000 to $100,000 fine), regardless of the dollar amount involved and without the value tiers that apply to ordinary theft. A conviction also permanently disqualifies the person from holding public office or any position of trust in Colorado. Colorado courts have held that this statute reaches only property actually owned by a government entity, not property merely in the government’s possession — in People v. Berry, 2020 CO 14, ¶ 18, 457 P.3d 597, 601, the Colorado Supreme Court held this crime doesn’t apply to a sheriff’s deputy who converted privately-owned firearms that happened to be sitting in an evidence locker, since neither the sheriff’s office nor any other public entity actually owned them. No fraudulent intent is required — only that the person knowingly converted the property to an unauthorized use (People v. McKnight, 567 P.2d 811 (Colo. App. 1977); see also People v. Gallegos, 260 P.3d 15, 23 (Colo. App. 2010) (sheriff’s use of county vehicles and personnel to do work on his own home satisfied this element); People v. Morise, 859 P.2d 247, 249 (Colo. App. 1993) (using a government credit card for cash advances toward personal purchases was a use ’other than the public use authorized by law’)). This statute is why a government employee accused of misusing public funds can face a more serious and less negotiable charge than a private-sector employee accused of taking a similar amount.
What Does the Prosecution Have to Prove?
At a minimum, the prosecution has to show that the property or money belonged to someone else, that it was entrusted to or accessible to the defendant in a position of trust, that the defendant knowingly took, used, or diverted it without authorization, and that the defendant intended to permanently deprive the owner of it. Intent is usually the central battleground — sloppy bookkeeping, a misunderstanding about authorized spending, or a dispute over commissions or reimbursements owed to the defendant can all look like theft on paper without actually meeting the legal standard.
What Defenses Apply to an Embezzlement Charge?
Common defenses include lack of intent to permanently deprive (for example, an honest belief the funds were owed or authorized), a good-faith accounting dispute, mistaken identity in cases involving shared account access or multiple employees, and challenges to how forensic accountants calculated the alleged loss. Early, accurate documentation of the defendant’s side of the financial picture is often the difference between a dismissal and a conviction.
Will I Have to Pay Restitution?
Restitution to the victim is standard in Colorado theft and embezzlement cases, separate from any fine, probation, or prison sentence. Because restitution amounts are often disputed, an early independent review of the alleged loss can matter as much as the criminal defense itself.
What Should I Do If I’m Being Investigated for Embezzlement in Colorado?
Do not speak to an employer’s internal investigator, an auditor, or law enforcement about the allegations without a lawyer present, and do not attempt to “fix” records or repay funds on your own before getting legal advice — both can be used against you or create new charges. Embezzlement and theft cases are won or lost on the financial records and on intent, and both take time to build a defense around.
Facing embezzlement, theft, or white-collar fraud allegations in Colorado? Mile High Legal defends clients against theft and financial crime charges throughout the Denver area. Reach out to discuss the specific amount and circumstances alleged in your case.
