Nevada NRS § 205.300 prohibits embezzlement, which occurs when you steal money or property entrusted to you by the owner. Embezzling $1,200 or more can be charged as a felony. Otherwise, it is only a misdemeanor. Penalties include possible incarceration, fines, and restitution. The most common defense is that you had no intent to steal.
Embezzlement examples
- A cashier pocketing cash from a customer instead of putting it in the cash register.
- Renting a car, and then never returning it.
- A jewelry store employee stealing the inventory.
- A contractor taking payment and then not doing the work.
The language of NRS 205.300 states:
Any bailee of any money, goods or property, who converts it to his or her own use, with the intent to steal it or to defraud the owner or owners thereof and any agent, manager or clerk of any person, corporation, association or partnership, or any person with whom any money, property or effects have been deposited or entrusted, who uses or appropriates the money, property or effects or any part thereof in any manner or for any other purpose than that for which they were deposited or entrusted, is guilty of embezzlement
In this article, our Las Vegas criminal defense attorneys will address the following key issues regarding Nevada embezzlement laws:
- 1. Elements of NRS 205.300
- 2. Defenses
- 3. Penalties
- 4. Immigration Consequences
- 5. Record Seals
- Frequently Asked Questions
- Additional Reading
1. Elements of NRS 205.300
Embezzlement is stealing property that you had legal possession of.1 Embezzlement is commonly called employee theft or employee fraud. That is because many cases stem from charges of taking an employer’s assets.
Example: Marshall is a cage worker at the Mirage. One day a customer hands him $1,000. Instead of putting it into the register, he steals it. The money legally belonged to the Mirage. The Mirage entrusts Marshall with possession of its money. By taking it for himself, Marshall embezzled it.
However, an employer/employee relationship is not necessary to embezzle. Embezzlement can occur between friends, family, co-workers, or strangers. There just needs to be a relationship of trust or confidence.2
Example: Jack’s motorcycle is illegally parked. But he does not have time to move it. Jack flags down a pedestrian and asks if he’d move his motorcycle for him for $5. The pedestrian agrees. But instead of returning with the keys, he drives off with it for good. Jack entrusted the motorcycle with the pedestrian. The pedestrian then embezzled it for himself.
Had the pedestrian in the above example made no agreement with Jack and simply taken the motorcycle, he would instead face charges for grand larceny of a motor vehicle (NRS 205.228).
2. Defenses
Intent to steal or defraud is a key element of embezzlement in Nevada. Therefore, a typical defense our Las Vegas theft lawyers use is that you did not mean to permanently take the money or property entrusted to you.
Example: Trish’s boss loans her a company printer to use at home for the weekend. Trish forgets to bring it back on Monday. It is not embezzlement because Trish did not mean to permanently deprive her boss of the printer.
Put another way, there is no embezzlement if you had a good faith belief that you used the property in the way the owner wanted.4
Example: Hal’s boss lends him a company credit card to buy office supplies. Hal uses the card to buy the supplies and the gasoline it took to drive to and from the store. The boss never said Hal could not use it for gas. And Hal honestly believed that he could use it for gas. There was no intent to defraud. Therefore, no embezzlement occurred.
In any case, the district attorney has the burden to prove guilt beyond a reasonable doubt. If the defense attorney can show that the state has insufficient evidence or that the evidence is unreliable, embezzlement charges should not stand.
3. Penalties
Embezzlement is punished the same as petty larceny (NRS 205.240) and grand larceny (NRS 205.220) in Nevada. It depends on the value of the property allegedly embezzled:
| Total value of stolen property or money embezzled | Nevada sentence |
| Less than $1,200 | Misdemeanor:
|
| $1,200 to less than $5,000 | category D felony
|
| $5,000 to less than $25,000 | category C felony
|
| $25,000 to less than $100,000 | category B felony
|
| $100,000 or more | category B felony
|
Separate acts of misdemeanor embezzlement can be charged as one felony. This rule kicks in when the cumulative value from separate acts of embezzlement within a six-month period is $1,200 or more.5
4. Immigration Consequences
Acts of embezzlement are potentially deportable. So non-citizens convicted of these unlawful acts could be thrown out of the U.S.6
A criminal defense attorney may be able to persuade prosecutors to dismiss the charge. Or else reduce it to a non-deportable offense. That is why it is vital to retain counsel as soon as possible after getting charged.
5. Record Seals
Embezzlement convictions are sealable under Nevada law, but there is a waiting period:
| Embezzlement conviction | Record seal wait time |
| Misdemeanor | 1 year after the case ends |
| Category D felony | 5 years after the case ends |
| Category C felony | 5 years after the case ends |
| Category B felony | 5 years after the case ends |
Note that if the case gets dismissed, you can pursue a record seal right away.7
Seal your records as soon as possible. Embezzlement cases show up on background checks, and any unlawful activity looks bad to potential employers. Learn how to get a Nevada record seal.
Frequently Asked Questions
What does the prosecution have to prove for embezzlement in Nevada?
Under NRS 205.300, the prosecution must prove that money or property was entrusted to you and that you intentionally converted, used, or appropriated it for an unauthorized purpose with the intent to steal or defraud. Having access to property or being responsible for a financial loss, without fraudulent intent, is not enough for a conviction.
In our experience, intent is often the most disputed part of an embezzlement case. We examine employment policies, contracts, emails, accounting records, reimbursement practices, and the scope of the client’s authority to determine whether the transaction was theft or an honest misunderstanding.
Does embezzlement require an employer-employee relationship?
No. Although many Nevada embezzlement cases involve alleged employee theft, NRS 205.300 is not limited to the workplace. The charge can arise whenever someone is entrusted with another person’s money or property, including relationships involving business partners, contractors, caregivers, family members, friends, agents, and bailees.
In cases we handle, identifying precisely what the accused was entrusted to do can be crucial. Informal arrangements and poorly defined responsibilities may create reasonable doubt about whether the person knowingly exceeded their authority.
What is the difference between embezzlement and larceny in Nevada?
The key difference is how the accused initially obtained the property. Embezzlement generally involves property that was lawfully entrusted to or possessed by the accused before it was allegedly misappropriated. Larceny generally involves unlawfully taking property from someone else’s possession. Nevada nevertheless treats both as forms of theft and bases the punishment largely on the property’s value.
From what we have seen, the distinction matters most when reconstructing how the property changed hands. Surveillance footage, access logs, job duties, receipts, and witness statements may show that the prosecution has charged the wrong offense or cannot establish the required relationship of trust.
Is embezzlement a felony in Nevada?
Embezzlement is generally a misdemeanor when the property is worth less than $1,200 and a felony when it is worth $1,200 or more. Under Nevada’s theft penalties, amounts from $1,200 to less than $5,000 are category D felonies; $5,000 to less than $25,000 are category C felonies; and amounts of $25,000 or more are category B felonies.
Since the valuation issue can dramatically change a client’s exposure, we scrutinize whether the prosecution used the property’s fair market value, counted transactions twice, included authorized expenses, or attributed losses to the client that were actually caused by other people.
Can Nevada combine several small transactions into felony embezzlement?
Yes. Under NRS 205.300, separate acts committed against the same alleged victim within six months must be combined for punishment when none of the individual acts is a felony but their cumulative value reaches the felony threshold. Therefore, a series of alleged misdemeanor-level transactions can produce a felony charge.
We often build a transaction-by-transaction timeline rather than accepting the employer’s total loss figure at face value. Some entries may be legitimate, duplicated, outside the relevant period, or unsupported by records, and removing them may reduce the charge below a felony threshold.
Is an accounting mistake or unauthorized expense automatically embezzlement?
No. A bookkeeping error, forgotten receipt, misunderstood reimbursement policy, or unauthorized expense is not automatically embezzlement. The state must prove beyond a reasonable doubt that you acted with the intent to steal or defraud, not merely that you violated an internal policy or handled money carelessly.
In our experience, workplace disputes sometimes become criminal accusations before anyone conducts a neutral audit. Contemporaneous emails, past practices, supervisor approvals, and evidence that other employees shared access can help distinguish an innocent error from intentional theft.
Is intending to repay the money a defense to embezzlement?
Not necessarily. Returning property or planning to repay money does not automatically defeat an embezzlement charge if the prosecution can prove that you intentionally used entrusted property for an unauthorized purpose with the intent to steal or defraud. However, evidence of a good-faith belief that the use was authorized may negate the required criminal intent.
We tell clients not to assume that making a repayment will cause the accusation to disappear. Repayment can sometimes help in negotiations and sentencing, but an unsolicited payment or explanation may also be portrayed as an admission. It is usually safer to have counsel evaluate the circumstances first.
Can I be convicted of embezzlement if I did not personally profit?
Potentially, yes. NRS 205.300 covers the unauthorized use or appropriation of entrusted property; it does not require that the accused personally keep the money. Diverting property for another person’s benefit may still support a charge if it was done with the required fraudulent intent.
In cases involving several employees or account users, we focus on who authorized, initiated, received, and knew about each transaction. The fact that a client had access to an account does not by itself prove that the client diverted the funds or shared another person’s criminal intent.
What evidence is commonly used in a Nevada embezzlement case?
Prosecutors commonly rely on bank records, accounting ledgers, receipts, invoices, emails, text messages, surveillance footage, access logs, employment policies, audits, and statements from employers or coworkers. Circumstantial evidence may be used to prove intent, but the state must still establish every element beyond a reasonable doubt.
In our experience, the accusation often begins with an internal investigation designed to protect the business rather than determine the complete truth. We compare the audit to the underlying records and look for shared passwords, missing approvals, inconsistent policies, alternative suspects, and transactions that investigators misclassified.
Can an employer drop Nevada embezzlement charges?
An employer may tell the police or prosecutor that it no longer wants the case pursued, but the employer does not control the criminal charge. Once law enforcement becomes involved, the district attorney decides whether to file or dismiss the case. Repayment or a civil settlement therefore does not guarantee that the prosecution will end.
We have seen cooperative alleged victims improve the chances of a negotiated resolution, especially when restitution has been addressed. However, clients should not contact an accuser directly if a protective order, no-contact condition, or risk of witness-tampering allegations exists.
Can a Nevada embezzlement conviction be sealed?
Generally, yes. A misdemeanor embezzlement conviction is typically eligible for sealing one year after the case closes, while category B, C, and D felony convictions generally have five-year waiting periods. If the charge is dismissed, the record ordinarily may be sealed right away.
We recommend beginning the sealing process as soon as the law permits because embezzlement allegations can be especially damaging in employment involving money, inventory, or fiduciary responsibility. Even a dismissed case may continue appearing in background searches until the arrest and court records are formally sealed.
Additional Reading
For more in-depth information, refer to these scholarly articles:
- The psychology of Embezzlement: The art of control and intervention – Palgrave MacMillan.
- Investigating The Crime Of Embezzlement Of Managers From The Perspective Of Criminological Theories – Journal of Positive School Psychology.
- A Case for Diversionary Restorative Justice in Cases Involving the Embezzlement of Funds from Small Businesses – Cardozo Journal of Conflict Resolution.
- A blockchain-based forensic model for financial crime investigation: the embezzlement scenario – Digital Finance.
- The Case Study of Los Angeles City & County Fraud, Embezzlement and Corruption Safeguards during times of pandemic – Public Organization Review.
