In Colorado, a person commits the crime of embezzlement by stealing or misappropriating property that had been entrusted to him or her. Cases often involve taking money or goods from an employer.

As a white-collar crime, embezzlement is generally prosecuted as a theft crime in Colorado, with penalties depending on the value of property stolen.

In this article, our Denver Colorado criminal defense lawyers will address:

• 1. How does Colorado law define embezzlement?
• 2. Penalties for embezzling in Colorado
• 3. What are defenses to embezzlement charges?
• 4. Related Offenses

1. How does Colorado law define embezzlement?

Embezzlement is a crime that involves the theft or misuse of money or property, generally from an employer or company by a person in a position of trust. Colorado law classifies the crime as a type of theft. Under CRS § 18-4-403, the state may substitute “embezzlement” in place of “theft” when appropriate, except in the case of embezzlement of public property.¹

1.1. Embezzling by Theft (CRS 18-4-401, CRS 18-4-403)

The crime of embezzling is defined within the Colorado statute for theft. An individual commits theft by embezzlement when he or she “knowingly obtains, retains, or exercises control over anything of value of another without authorization or by threat or deception” and:

• Intends to deprive the other person permanently of the use or benefit of the thing of value;
• Knowingly uses, conceals or abandons the thing of value in a way that deprives the other individual permanently of its use; or
• Retains the thing of value for over seventy-two hours after any agreed-upon time of return or lease.²

For example, let’s say Dwayne is a bartender at a busy Denver sports bar. Dwayne’s boss refused to give Dwayne a raise even though Dwayne is the best bartender they have. Dwayne takes some of the cash payments and pockets it instead of ringing up the sales. Dwayne is taking the money because he believes the bar should be paying him more. If Dwayne is caught, he may be charged with embezzlement.

1.2. Embezzling of Public Property (CRS 18-8-407)

Embezzlement of public property is a separate crime, as it deals with any property taken from the state or government. The statute defines embezzlement of public property as when a public servant comes into possession of any public monies or property of the state, and knowingly converts any of the money or property to their own use, or any other use not authorized by law.³

For example, let’s say Franz works in the city finance department. Part of Franz’s job is to approve purchases made by other city government offices. Franz submits fake invoices for a company that he owns. Franz approves payments to the fake company and cashes the checks. If an audit discovers Franz’s scheme to fraudulently bill the city, he may be charged with embezzlement of public property.

Embezzling public property is prosecuted as a class 5 felony with a sentencing range of one to three years in prison and a fine of $1,000 to $100,000. Moreover, the convicted person will be barred from holding any office of trust or profit in the state of Colorado.

2. Penalties for embezzling in Colorado

The penalties for embezzlement in the state of Colorado depend on the type of embezzlement, value of the theft, and the parties involved. In addition to fines and possible imprisonment, a defendant may have to pay restitution amounts equal to what was lost through the embezzlement.

Embezzlement Penalties

For most embezzlement crimes, the class of criminal offense will depend on the value of what was embezzled. This includes petty offenses, misdemeanors, and felony criminal charges.

Value of Property Embezzled	Class of Criminal Offense	Penalties
Less than $300	Petty Offense	Up to 10 days in jail and/or a fine of up to $300
$300 or more but less than $1,000	Class 2 Misdemeanor	Up to 120 days in jail and/or a fine of up to $750
$1,000 or more but less than $2,000	Class 1 Misdemeanor	Up to 364 days in jail and/or a fine of up to $1,000
$2,000 or more but less than $5,000	Class 6 Felony	12 to 18 months in prison and a fine of up to $100,000
$5,000 or more but less than $20,000	Class 5 Felony	1 to 3 years in prison and a fine of up to $100,000
$20,000 or more but less than $100,000	Class 4 Felony	2 to 6 years in prison and a fine of up to $500,000
$100,000 or more but less than $1 million	Class 3 Felony	4 to 12 years in prison and a fine of up to $750,000
$1 million or more	Class 2 Felony	8 to 24 years in prison and a fine of up to $1,000,000

In addition to criminal sentencing, there is also a mandatory parole period for felony theft offenses. Mandatory parole ranges from 1 to 5 years for felony embezzlement.⁴

If an individual commits multiple embezzlement offenses within a period of 6 months, the value of the amount embezzled can be combined and charged as a single offense.

Penalties for Embezzling of Public Property

Embezzlement of public property is a class 5 felony. Penalties for a conviction of embezzlement of public property in Colorado include 1 to 3 years in prison and a fine of up to $100,000. In addition, there is a mandatory parole period of 2 years.

In addition to criminal sentencing, anyone who is convicted of embezzlement of public property is disqualified from holding any office of trust or profit in the state of Colorado.

3. What are defenses to embezzlement charges?

There are a number of possible defenses to charges for people accused of embezzlement. These include:

• The defendant did not intend to deprive their employer of the funds or item permanently;
• The defendant had legal access and authority to use the funds in the manner they were spent;
• Another person took the money or property; or
• The defendant returned the item within the specific time frame.

4. Related Offenses

Embezzlement cases may involve other related criminal offenses. Embezzlement is often tied to money laundering, check fraud, or forgery.

Money Laundering CRS 18-5-309

Money laundering involves moving money around to try and evade the government’s ability to track the source of the funds. Money laundering may be used to hide money that was embezzled from an employer. Money laundering is a class 3 felony in Colorado, and the penalties include 4 to 12 years in prison and fines of up to $750,000.

Check Fraud CRS 18-5-205

Writing a check with the knowledge that there are insufficient funds and with intent to defraud is fraud by check. This includes issuing a check for the payment of services, salary, rent, money, property, or other things of value. The penalties for fraud by check will depend on the value of the fraud involved.

Forgery CRS 18-5-102

Forgery in Colorado involves altering or making fake documents with the intent to defraud. Embezzlement may include forgery if the individual is altering accounting records or forging someone’s signature. First-degree forgery is a class 5 felony charge in Colorado, with penalties including 1 to 3 years in prison, and a fine of up to $100,000.

Also see our related article on the Colorado crime of obstructing telephone service.

Theft CRS 18-4-401

Theft under Colorado law is intentionally stealing another person’s money or other property. A common example is shoplifting under Colorado law. The classification of the theft charges depends on the value of the goods stolen:

• Petty theft in Colorado is stealing less than $300 of items.
• Misdemeanor theft in Colorado is stealing $300 to less than $2,000 worth of items.
• Felony theft in Colorado is stealing $2,000 or more in items.

Also see our related article on the Colorado crime of obstructing telephone service.

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