No, if the value is under $1,000, it may be charged as a misdemeanor. However, most cases involve larger amounts and result in felony charges.
Although Arizona does not have a statute specifically labeled “embezzlement,” these cases are prosecuted under ARS §13-1802, the state’s general theft statute. Embezzlement is defined as the unauthorized use, transfer, or conversion of funds or property by someone who had legal access—but not ownership—of those assets.
Common examples of embezzlement include:
To secure a conviction, the prosecution must prove:
Embezzlement penalties in Arizona are tied directly to the value of the property or money stolen, and can range from a misdemeanor to a serious felony. In many cases, a single act of embezzlement can involve multiple counts or aggravating circumstances, leading to enhanced sentencing.
| Value of Property | Classification | Potential Prison Time |
|---|---|---|
| Under $1,000 | Class 1 Misdemeanor | Up to 6 months jail |
| $1,000 – $2,000 | Class 6 Felony | 6 months – 1.5 years |
| $2,000 – $3,000 | Class 5 Felony | 9 months – 2 years |
| $3,000 – $4,000 | Class 4 Felony | 1.5 – 3 years |
| $4,000 – $25,000 | Class 3 Felony | 2.5 – 8.75 years |
| $25,000+ | Class 2 Felony | 4 – 12.5 years |
Additional consequences include:
If the embezzlement was committed as part of an ongoing scheme or enterprise, it may also fall under fraudulent schemes and artifices (ARS §13-2310), which can significantly increase the penalties. If you’ve been accused of such a crime in Phoenix, reach out to our embezzlement lawyers for a consultation at Feldman Royle Ahl.
It depends on the value of the property or funds involved. Embezzlement of less than $1,000 is charged as a Class 1 misdemeanor under A.R.S. § 13-1802, carrying up to 6 months in jail. Once the amount reaches $1,000 or more, embezzlement becomes a felony, ranging from a Class 6 felony at the low end to a Class 2 felony when the amount exceeds $25,000. A Class 2 felony conviction carries up to 12.5 years in prison. In short, almost any workplace theft allegation involving more than $1,000 is a felony in Arizona.
The defense strategy for an embezzlement case depends heavily on the facts, financial records, and whether law enforcement followed proper procedures during the investigation. At Feldman Royle Ahl, our Embezzlement defense lawyers have built a tailored defense based on legal and factual weaknesses in the prosecution’s case.
Possible defenses include:
Our team also collaborates with forensic accountants, financial experts, and investigators to analyze the prosecution’s claims and build a strong counter-narrative.
The majority of embezzlement cases in Arizona begin not with an arrest but with an internal investigation – a manager flagging unusual account activity, an audit discrepancy, or a colleague’s tip to HR. By the time a criminal referral is made to Maricopa County prosecutors or the Arizona Attorney General’s office, the employer has often already gathered significant evidence: bank records, transaction logs, email communications, and witness statements.
Common employee theft charges in Phoenix include:
If your employer has asked you to meet with HR, an outside auditor, or a forensic accountant – or if you have been placed on administrative leave pending an investigation – you are likely already a target. You are not required to participate in an internal investigation without an attorney, and anything you say to your employer can be shared directly with prosecutors. Contact a Phoenix employee theft defense attorney before that meeting takes place.
If your employer receives federal funding exceeding $10,000 in a year – including federal grants, government contracts, or federal program funds – employee theft may be charged as federal embezzlement under 18 U.S.C. § 666, carrying up to 10 years in federal prison. This applies to employees of nonprofits, healthcare organizations, schools, government contractors, and social service agencies. Federal charges carry no parole and are prosecuted in the U.S. District Court for the District of Arizona.
Misappropriation is the specific form of theft charged under A.R.S. § 13-1802(A)(2) when someone converts property entrusted to them for their own use or benefit. Unlike straightforward theft, misappropriation cases hinge on the existence of a fiduciary or trust relationship – meaning the defendant had legal access to the assets but exceeded their authorization in using them.
Licensed financial advisors, investment managers, and brokers who are accused of misappropriating client funds face dual exposure: criminal charges under A.R.S. § 13-1802 in Arizona state court, and regulatory action by FINRA, the SEC, or the Arizona Department of Insurance and Financial Institutions. A criminal conviction is not required for a license to be revoked. Our Phoenix misappropriation defense attorneys represent financial professionals at both the criminal defense and regulatory hearing stages – protecting both your freedom and your license.
Trustees, executors, conservators, and agents acting under a power of attorney hold positions of specific legal trust. When funds from an estate, trust, or conservatorship are diverted for personal use, prosecutors charge misappropriation under A.R.S. § 13-1802 – often alongside a breach of fiduciary duty civil proceeding. Criminal and civil cases can proceed simultaneously, which means your defense strategy must address both tracks from the outset.
Officers, directors, bookkeepers, and employees of nonprofit organizations face a uniquely serious form of embezzlement exposure. In addition to criminal charges under A.R.S. § 13-1802, nonprofit embezzlement can trigger IRS scrutiny of the organization’s tax-exempt status, mandatory reporting obligations to the state Attorney General’s Charitable Trust Section, and civil recovery actions by the organization’s board. If you hold a leadership position in a nonprofit and are facing allegations of fund misuse – even if the matter has not yet been referred to law enforcement – retaining a Phoenix embezzlement defense attorney early is essential.
Allegations that a business partner, co-owner, or officer diverted company funds for personal use are among the most contentious embezzlement cases in Arizona. These cases frequently run on two parallel tracks: a criminal prosecution under A.R.S. § 13-1802 and a civil lawsuit for breach of fiduciary duty or conversion. The lines between authorized business expenses, shareholder distributions, and unauthorized taking are often genuinely disputed – and what one partner characterizes as theft, another may characterize as a legitimate draw or reimbursement. Establishing context and authorization is the central defense in nearly every business embezzlement case.
Our top-rated Embezzlement defense lawyers at Feldman Royle Ahl in Phoenix are known for handling complex and high-stakes Embezzlement cases. We take a proactive and aggressive approach, aiming to resolve your Embezzlement case through dismissal, reduction of charges, or a favorable plea agreement whenever possible. If the trial is necessary, we are fully prepared to present a compelling defense in court.
If your career, your finances, and your freedom are on the line, you need an Embezzlement lawyer who will fight back with skill and experience.
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