Embezzlement Defense

In Arizona, conduct people call embezzlement is usually charged as theft under § 13-1802(A)(2). It applies when a person, without lawful authority, knowingly "converts for an unauthorized term or use" property or services that were entrusted to the person or placed in the person's possession for a limited, authorized use. In plain words, the State generally has to prove these points:

• The money, property or services belonged to someone else.
• It was entrusted to you for a limited and authorized purpose.
• You used it, or kept it, in a way or for a time that was not authorized.
• You acted knowingly and without lawful authority.

Under A.R.S. § 13-1801(A)(13), "property of another" includes property in which someone else has an interest, even if you also have an interest in it. "Value" means fair market value at the time of the theft (§ 13-1801(A)(15)). The State "may aggregate" amounts taken under "one scheme or course of conduct" to set the class, even when the money came from several people (§ 13-1801(B)).

The State may also charge paragraph (A)(1), controlling another's property with intent to deprive, or paragraph (A)(3), obtaining property by a material misrepresentation. Taking a vulnerable adult's property while in a position of trust is covered separately by § 13-1802(B). A related charge, fraudulent schemes, sometimes appears in the same case.

Sentencing depends on the class and your history. For a first felony offense, A.R.S. § 13-702(D) sets these prison ranges:

If you are eligible for probation, the court may suspend the sentence and place you on probation under A.R.S. § 13-901(A), and it "shall order restitution" where a victim suffered economic loss. Under A.R.S. § 13-603(C), restitution is "the full amount of the economic loss as determined by the court." A felony fine can be up to $150,000 under A.R.S. § 13-801(A).

For a class 6 felony that is not a dangerous offense, A.R.S. § 13-604(A) lets the court enter a class 1 misdemeanor, or leave the offense undesignated until probation ends, if a felony sentence "would be unduly harsh." A class 1 misdemeanor carries up to six months in jail under A.R.S. § 13-707(A)(1) and a fine of up to $2,500 under A.R.S. § 13-802(A).

Under § 13-1802(H), a conviction under paragraph (A)(1) or (A)(3) involving $100,000 or more bars probation and early release, with narrow exceptions, until the sentence is served. That subsection does not list paragraph (A)(2), so the exact paragraph in your charging document matters.

These cases are usually built on records, such as bank statements, payroll data and emails. We review them closely and, when the case calls for it, work with a forensic accountant. Numbers that look damaging in a summary can read differently once each transaction is traced.

• Authority: If you were allowed to use the funds, or reasonably believed you were, the State may not be able to prove the use was unauthorized. Loose policies, owner draws and verbal approvals can matter.
• Knowledge: Accounting errors, shared logins and other people's access can explain a shortfall. The State must show you acted knowingly, not just that money is missing.
• Business disputes: Disagreements over pay, commissions or a partnership split can look like theft when they are really contract disputes.
• Value: Challenging the amount, or whether separate transactions were really one scheme, may lower the class.
• Procedure: We look at how the evidence was gathered, including internal investigations, bank subpoenas and any statements you gave.
• Mitigation: Where it fits your goals, a restitution plan and your work history can support negotiations for a reduced charge or probation.

Most of these cases in Maricopa County are prosecuted by the Maricopa County Attorney's Office. Some are brought by the Arizona Attorney General's Office, often where conduct crossed county lines, a state agency investigated or the county attorney referred the case.