Employee Theft and Workplace Fraud Charges in Texas

Employee theft and workplace fraud are serious offenses under Texas law, encompassing a range of illegal activities committed by employees against their employers. These crimes can lead to severe legal consequences, including criminal charges, civil liabilities, and professional repercussions. Understanding the legal definitions, penalties, and defenses related to these offenses is crucial for both employers and employees.

Legal Definitions

Theft by an Employee

Under Texas Penal Code § 31.03, theft is defined as unlawfully appropriating property with the intent to deprive the owner of it. When committed by an employee, this can include actions such as:

• Stealing company property or funds
• Embezzlement
• Falsifying time sheets or expense reports
• Unauthorized use of company resources

Misapplication of Fiduciary Property

Texas Penal Code § 32.45 addresses the misapplication of fiduciary property, which occurs when a person intentionally, knowingly, or recklessly misapplies property they hold as a fiduciary in a manner that involves substantial risk of loss to the owner or beneficiary. This is particularly relevant for employees in positions of trust, such as financial officers or managers.

Penalties

The penalties for employee theft and workplace fraud in Texas vary based on the value of the property or funds involved:

• Class C Misdemeanor: Value less than $100; punishable by a fine up to $500.
• Class B Misdemeanor: Value between $100 and $749; punishable by up to 180 days in jail and a fine up to $2,000.
• Class A Misdemeanor: Value between $750 and $2,499; punishable by up to one year in jail and a fine up to $4,000.
• State Jail Felony: Value between $2,500 and $29,999; punishable by 180 days to 2 years in a state jail and a fine up to $10,000.
• Third-Degree Felony: Value between $30,000 and $149,999; punishable by 2 to 10 years in prison and a fine up to $10,000.
• Second-Degree Felony: Value between $150,000 and $299,999; punishable by 2 to 20 years in prison and a fine up to $10,000.
• First-Degree Felony: Value of $300,000 or more; punishable by 5 to 99 years or life in prison and a fine up to $10,000.

Additionally, convictions can lead to restitution orders, requiring the offender to repay the stolen amounts, and may have long-term impacts on employment prospects and professional licenses.

Common Examples

• Embezzlement: An accountant diverts company funds into personal accounts.
• Inventory Theft: An employee steals products from the warehouse for personal resale.
• Payroll Fraud: A manager creates fake employee records to collect additional paychecks.
• Expense Report Fraud: An employee submits falsified receipts for reimbursement.Fort Worth Law Firm+11Texas Statutes+11Saputo ✭ Toufexis+11Fort Worth Criminal Defense Lawyer

Legal Defenses

Defending against charges of employee theft or workplace fraud may involve:Fort Worth Criminal Defense Lawyer

• Lack of Intent: Demonstrating that the accused did not intend to commit theft or fraud.
• Consent: Arguing that the employer had given permission for the actions in question.
• Mistake: Showing that the incident was a result of an honest mistake or misunderstanding.
• Insufficient Evidence: Challenging the prosecution's evidence as inadequate to prove guilt beyond a reasonable doubt.

Each case is unique, and the applicability of these defenses depends on the specific circumstances and evidence involved.

Conclusion

Employee theft and workplace fraud are serious offenses under Texas law, with significant legal and personal consequences. If you are facing such charges or suspect an employee of these crimes, it is essential to consult with an experienced criminal defense attorney to understand your rights and options.

For expert legal assistance, contact Walker Law Office at (713) 228-2611 or visit https://www.walkerlawhouston.com/contact/ to schedule a consultation.

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