OUR BLOG

Follow the Latest in Colorado Law

Embezzlement & Theft From an Employer in Colorado

Colorado generally prosecutes conduct commonly called embezzlement under its theft law. An employee may face criminal charges even when the employer originally gave that person access to money, property, accounts, or financial records. The central questions are whether the employee knowingly exceeded that authority, intended to deprive the employer, and what value the prosecution can prove. For most employer-theft allegations involving money or company property, felony theft in Colorado begins at $2,000, although repeated transactions may sometimes be added together.

What Counts as Embezzlement in Colorado?

Embezzlement usually describes a breach of trust. A person lawfully gains access to property and later uses or retains it without authorization. Colorado’s theft statute covers knowingly obtaining, retaining, or exercising control over another person’s property without authorization, including through deception, when the person intends to deprive the owner of its use or benefit.

An employee’s initial permission to handle money does not necessarily prevent a later theft charge. Colorado courts have recognized that control may be authorized initially and later become unauthorized.

Employer-theft allegations may involve:

Skimming cash from sales or deposits
Using a company card for personal purchases
Submitting false expense reimbursements
Diverting payroll or vendor payments
Creating fictitious vendors, invoices, or employees

Not every accounting discrepancy is embezzlement. The distinction may depend on company policies, prior approvals, property ownership, reimbursement practices, access controls, and evidence of intent. A bookkeeping mistake, unclear policy, or legitimate business expense should not automatically become a criminal case.

What Is Theft by Deception in Colorado?

Colorado’s theft law also covers property obtained through deception. In an employer case, the alleged deception might involve an altered receipt, a false invoice, a fabricated mileage claim, a nonexistent vendor, a hidden personal purchase, or a misleading payroll entry.

For theft by deception in Colorado, the prosecution generally must establish an intentional misrepresentation that led the employer to part with money or property. Colorado case law requires proof that the victim relied on the alleged misrepresentation. An honest mistake, disputed reimbursement, or ambiguous expense policy is not the same as a deliberate scheme to defraud.

Is Embezzlement a Felony in Colorado?

Embezzlement can be a petty offense, a misdemeanor, or a felony, depending primarily on the value of the property involved. Under Colorado’s current theft classifications:

Value of Property	Charge Level
Less than $300	Petty offense
$300 to less than $1,000	Class 2 misdemeanor
$1,000 to less than $2,000	Class 1 misdemeanor
$2,000 to less than $5,000	Class 6 felony
$5,000 to less than $20,000	Class 5 felony
$20,000 to less than $100,000	Class 4 felony
$100,000 to less than $1 million	Class 3 felony
$1 million or more	Class 2 felony

So, how much is felony theft in Colorado? In a typical employer-theft case involving money or company property, the threshold is $2,000. Separate rules apply to certain circumstances and types of property, including firearm theft.

One recent Colorado case illustrates how the alleged loss amount can affect the charge level. Denver7 reported that a payroll manager and bookkeeper was accused of stealing more than $500,000 from a Denver company. The case is included only as an example of Colorado’s charging framework, not to comment on the merits or details of the allegations. An alleged loss in that range would generally fall within the class 3 felony tier.

The classification determines the applicable sentencing range and can affect potential incarceration, fines, probation, and parole. A court may also order restitution based on the employer’s proven losses. Colorado maintains separate sentencing frameworks for felony offenses and misdemeanor offenses.

Can Multiple Transactions Be Added Together?

Yes, in some circumstances. Colorado law permits two or more thefts committed within a six-month period to be combined into one count, with the charge based on the aggregate value. It also allows aggregation when multiple thefts are committed against the same person as part of one scheme or course of conduct.

A series of smaller alleged transfers could therefore cross the $2,000 felony threshold when added together. The defense may challenge which transactions belong in the alleged scheme, whether each transaction was unauthorized, and how the total value was calculated.

MBS Law discusses related charging issues in its guide to repeat theft charges and prior convictions.

Can Employer Theft Lead to Other Charges?

Depending on the facts, prosecutors may file allegations of forgery, computer crime, fraud, or identity theft in addition to theft.

Colorado’s identity theft statute applies in certain cases involving the unauthorized use of another person’s identifying information, financial information, or financial device to obtain money, property, services, or another thing of value. In an employment setting, that might involve a coworker’s credentials, a customer’s information, or an owner’s financial account.

MBS Law provides more detail in its guide to identity theft charges in Colorado. Each charge has separate elements that the prosecution must establish beyond a reasonable doubt.

What Happens if You Steal From Your Employer in Colorado?

Many cases begin with missing funds, a suspicious transaction, or an internal audit. The employer may suspend or terminate the employee, demand repayment, or refer the matter to law enforcement.

An employer’s conclusion is not a criminal conviction. The government must still prove every element beyond a reasonable doubt. Someone under investigation should avoid guessing in an unprepared interview, signing an admission without legal advice, deleting records, or asking coworkers to coordinate their accounts.

Returning money does not necessarily erase a theft allegation. Colorado case law provides that returning the property is not, by itself, a defense. Repayment may matter when negotiating restitution or resolving a case, but it does not automatically eliminate evidence of criminal intent.

What Defenses May Apply to Employer Theft Charges?

The appropriate defense depends on the records, witnesses, and charging theory. Important issues may include:

Lack of intent to deprive the employer
Actual or reasonably understood authorization
A legitimate ownership, compensation, or reimbursement dispute
Incorrect valuation or improper aggregation
Shared passwords, accounts, devices, or access credentials
Incomplete audit findings or unreliable digital records
Unlawfully obtained evidence or an involuntary statement

Effective white collar crime defense in Colorado often requires reconstructing the financial history before accepting the employer’s narrative. An attorney may compare written policies with actual practices, trace transactions, preserve electronic evidence, and identify approvals omitted from an internal investigation.

Speak With a Colorado White Collar Crime Defense Attorney

Employer-theft cases can escalate quickly from an internal question to a felony investigation. Early legal advice can help preserve records, prevent damaging statements, and clarify whether the dispute is criminal, civil, or the result of poor accounting.

MBS Law represents people facing theft and property crime charges throughout Colorado. If you are being questioned, investigated, or charged over alleged theft from an employer, contact MBS Law to discuss the facts and possible defenses.