Embezzlement under California Penal Code § 503 PC is a criminal offense involving the unlawful and fraudulent use of property that was legally entrusted to an individual. Unlike theft, which involves the unlawful taking of property from the outset, embezzlement stems from a violation of trust. It often arises in business, financial, or fiduciary relationships where someone exploits their position for personal gain.
This guide explains the elements of embezzlement, the penalties, possible defenses, and what you should do if you’re facing charges under this law.
What Is Embezzlement?
Embezzlement is defined as the fraudulent appropriation of property by a person to whom it was entrusted. California law distinguishes embezzlement from other forms of theft because the person originally had permission to hold or access the property.
Examples of Embezzlement Include:
An employee diverting company funds into a personal account
A bookkeeper overstating expenses and pocketing the difference
A real estate agent misusing client escrow funds
A family member abusing power of attorney to spend another person’s assets
In every case, the key element is trust—and the betrayal of that trust through unauthorized use of someone else’s property.
Legal Elements of Penal Code 503 PC
To secure a conviction for embezzlement, prosecutors must prove:
A fiduciary or entrusted relationship existed
The defendant fraudulently used or took the property
There was an intent to deprive the owner, even temporarily
Intent is essential. If a person accidentally misuses funds or believes in good faith that they were authorized to act, it may not qualify as embezzlement under the law.
Penalties for Embezzlement in California
The consequences of embezzlement depend largely on the value of the property and whether the crime qualifies as a misdemeanor or felony.
Misdemeanor
Property value $950 or less
Up to 6 months in county jail
Possible fines and probation
Felony
Property value over $950
16 months to 3 years in state prison
Higher fines and potential restitution to the victim
Because it’s a “wobbler” offense, embezzlement can be charged as either a misdemeanor or felony depending on the facts of the case and your criminal history.
Common Legal Defenses
Even if you’ve been charged under Penal Code 503 PC Embezzlement, there are several strong defenses that may apply:
Lack of intent: No intent to deprive the owner
Claim of right: Belief that the property was legally yours
Consent: You had permission to use the property
Mistake of fact: Misunderstanding led to misuse
Duress or coercion: You were forced to act under threat
A knowledgeable defense attorney can help uncover evidence that supports these defenses and fight the charges on your behalf.
Civil Consequences
Aside from criminal penalties, embezzlement can also carry civil liabilities. The victim may sue you in civil court for:
Restitution of stolen funds
Interest and damages
Attorney fees and court costs
A civil judgment can remain on your credit for years and affect your financial stability and ability to secure loans or housing.
Related Offenses
Several crimes are often charged alongside or instead of embezzlement, such as:
Grand Theft (PC 487) – Taking property worth more than $950
Petty Theft (PC 484) – Taking property worth $950 or less
Forgery (PC 470) – Falsifying documents
Fraud (various codes) – Deceiving others for personal gain
Understanding how these charges overlap can help you and your legal team build a more comprehensive defense.
Final Thoughts
Embezzlement cases are often more than just legal battles—they involve reputational damage, financial loss, and broken trust. Even a single accusation can lead to years of consequences, both personally and professionally. That’s why it’s crucial to act quickly and strategically if you find yourself under investigation or facing formal charges.
The best step you can take is to understand your rights, avoid self-incrimination, and get a qualified defense team on your side. With the right legal help, it’s possible to reduce the charges, secure a favorable plea, or even get the case dismissed altogether.
If you or someone you care about is facing embezzlement charges in California, the criminal defense team at Southwest Legal is ready to help.
With decades of combined experience, our attorneys have successfully defended clients against charges just like yours—often reducing penalties or getting cases dismissed entirely. We understand how embezzlement allegations can impact every area of your life, and we work tirelessly to protect your rights, reputation, and freedom.
Your future is worth fighting for. Let us fight for you.
