California Penal Code 503 – Embezzlement

Overview

California Penal Code 503 PC defines embezzlement as the unlawful misappropriation of property that someone entrusted to you. It’s considered a form of theft—but unlike traditional theft, it involves betrayal of trust, not stealth or force.

Embezzlement cases often involve gray areas: bookkeeping mistakes, business disputes, or unclear agreements. At Jones Trial Attorneys, we get to the heart of the transaction and fight to separate accusations from intent.

Legal Definition

Penal Code § 503 states:

“Embezzlement is the fraudulent appropriation of property by a person to whom it has been entrusted.”

This can apply in situations where someone:

• Was entrusted with property or money (e.g., employee, bookkeeper, business partner)

• Then intentionally used it for their own benefit without consent

Elements of the Crime

To convict someone of embezzlement, the prosecution must prove:

1. The property owner entrusted property or money to you;

2. You were in a position of trust (e.g., employee, agent, fiduciary);

3. You fraudulently took or used that property for your own benefit;

4. You intended to deprive the owner of the property.

Penalties for Embezzlement

Embezzlement is punished as either petty theft or grand theft, depending on the value or type of property involved.

Petty Theft Embezzlement (< $950) – PC 488

• Misdemeanor

• Up to 6 months in county jail

• Probation and fines

Grand Theft Embezzlement (≥ $950) – PC 487

• Wobbler – may be misdemeanor or felony

• Felony: 16 months, 2, or 3 years in county jail

• Restitution to the alleged victim

If the loss exceeds $65,000, sentence enhancements under PC 12022.6 may apply.

Defenses to PC 503 Charges

We’ve defended embezzlement charges involving businesses, family estates, and nonprofits. Common defenses include:

• Good faith belief – You believed you had a right to the property

• Lack of intent – There was no fraudulent purpose or misuse

• Accounting error – Misunderstanding, not misconduct

• False accusation – Often arise in bitter business or family disputes

• Insufficient evidence – Complex paper trails can be misinterpreted

We often negotiate these cases to civil compromise, restitution, or pre-charge resolutions.

Immigration and Employment Consequences

Because embezzlement is considered a crime of moral turpitude, it may result in:

• Deportation or inadmissibility

• Loss of business or professional licenses

• Ineligibility for fiduciary or financial jobs

We work to resolve your case in a way that preserves your immigration status and career.

Related Offenses

• PC 487 – Grand Theft

Standard theft over $950, no trust relationship required

• PC 459 – Burglary

Entering a building to commit theft, including embezzlement

• PC 470 – Forgery

Often charged alongside embezzlement in fraud cases

How Jones Trial Attorneys Can Help

Embezzlement charges are often complex and paper-heavy—and that’s where we thrive. We work with forensic accountants and business investigators to challenge assumptions and expose alternative explanations.

Whether you’re accused of misusing company funds or mishandling client accounts, we’ll fight to clear your name.

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