If you have been charged with embezzlement or fraud in Arizona, it is crucial that you hire an experienced attorney as soon as possible. The penalties can be harsh and unforgiving, with lasting effects on your personal and professional life for years to come. Learn more about the penalties associated with these crimes and how The Valley Law Group can help.
Arizona Law
Fraudulent schemes, classified as any act that knowingly defrauds another person, are categorized as a class 2 felony. For individuals with a benefit equal to or greater than $100,000, probation will not be an option.
Embezzlement, which is defined by Arizona state law as theft, is any act of unlawfully taking another person’s property. While theft is classified as a felony, the specific level of felony assigned to a theft charge can vary depending on the details of the act. Embezzlement of an amount greater than $25,000 is categorized as a class 2 felony, while amounts of $100,000 or more are only eligible for prison.
In addition to mandatory time in prison, individuals convicted of these felonies will likely also face heavy fines. Each felony carries up to $150,000 in required fines, with potential surcharges also added. Restitution will also be considered mandatory for each instance of economic loss to another person.
If you have been charged with embezzlement or fraud, it is important to seek legal counsel. If you are in Phoenix, Gilbert, Scottsdale, or Peoria and the surrounding areas of Arizona, call The Valley Law Group today for a free case review.
Fraud and Embezzlement Charges
One vital aspect of handling your case is ensuring that you understand exactly what you have been charged with. It will be nearly impossible to effectively build a defense to withstand the charges against you if you do not have an in-depth understanding of what they are and their consequences.
Fraudulent Schemes and Artifices
A person can be charged with fraudulent schemes and artifices if they knowingly engage in any activity that attempts to gain a benefit through sharing false information or promises. If found guilty of such actions, a person may be charged with a class 2 felony and receive serious consequences. The probation bar will likely be set at $100,000 or more.
Embezzlement Under Arizona Law
In Arizona, embezzlement is defined as fraudulently placing money or other assets in inappropriate accounts. Such actions can occur in the workplace or among individuals who are handling a trust. These embezzlement actions are classified and charged as theft according to Arizona law. This statute includes criminal activity involving the unauthorized use of property and material misrepresentation.
ARS 13-1802 theft thresholds are:
- Theft of $100,000 or more is a class 2 felony without probation.
- Theft of $25,000 or more, including embezzlement, can result in a class 2 felony.
- Theft of $4,000 to $25,000 can be classified as a class 3 felony.
- Theft of $3,000 to $4,000 is a class 4 felony.
- Theft of vehicles and engines of any value is a class 4 felony.
- Theft of $2,000 to $3,000 is a class 5 felony.
- Theft of $1,000 to $2,000 is a class 6 felony.
- Theft of any property valued at less than $1,000 is often classified as a class 1 misdemeanor.
Aggregation Rules in Arizona
In cases where an individual has committed more than one criminal activity, a prosecutor may be able to combine the separate claims, if they are related, in such a way that allows for one ruling in order to have their charge classified as a higher charge. This is defined as aggregation and can result in more significant penalties than the separate charges alone.
Fraud and Embezzlement Penalties
The penalties for crimes such as fraud and embezzlement may vary depending on the severity of the crime committed as well as the criminal history of the offender.
These are the typical penalties that are assigned to each classification of a fraud or theft crime:
Arizona Fraud Penalties
Arizona statute ARS 13-2310 penalties are assessed based on counts of fraud.
These are the penalties that are typically applied to various classifications of fraudulent scheme charges:
- Class 2 felony, first-time offender – 3-12.5 years of prison time, with possible probation. Probation is not applicable to individuals who have fraudulently received more than $100,000.
- Class 2 felony, repeat offender – Up to 23-35 years of prison time.
Fines and Retribution
For both fraud and embezzlement charges, convicted individuals may be required to pay fines of up to $150,000 for each felony. Additionally, courts are required to demand retribution for any economic loss that the offender caused. If you are required to pay retribution, the court may approve an incremental payment schedule.
Victims of embezzlement and fraud must offer receipts and records of their losses in order to receive retribution. They also submit an authorized affidavit to the court, officially declaring stolen property.
White Collar Crime Legal Sentencing in AZ: Unique Situations
There are certain scenarios that are not clearly outlined in the laws mentioned above. If your situation does not fit neatly into the definitions of criminal activity already discussed, consider these unique circumstances and whether they apply to you:.
Vulnerable Adult Property
One specific scenario that differs from other descriptions of theft is the theft of a vulnerable adult’s property. This refers to property that has been entrusted to a close family member or friend through the use of a trust. If the trustee unlawfully takes control of or misappropriates the funds therein, they can be charged with theft. Additional charges for financial exploitation may also be applied in these cases, which can trigger the removal of the accused individual’s trust governing duties.
Aggregation Across Transactions
Aggregation is a type of action for individuals with multiple offenses that combines all offenses into one charge and increases the severity of the penalties. Multiple small offenses can be added together in order to result in severe consequences. If you have been accused of numerous fraudulent transactions, however small, aggregation could increase your penalties.
Enterprise and Organizational Exposure
If a felony of fraud or embezzlement was committed by an enterprise rather than one individual, the ceiling for fines can increase dramatically. While an individual person’s charge per felony is set at $150,000, the fine per felony for an enterprise is $1,000,000.
The fines for misdemeanors are also significantly higher:
- A Class 3 misdemeanor could result in fines up to $2,000
- A Class 2 misdemeanor could result in fines up to $10,000
- A Class 1 misdemeanor could result in fines up to $20,000
The fines you could be facing depend on the circumstances of your case.
Fraud and Embezzlement Collateral Consequences
In addition to prison time and fines, you may also face issues with any professional licensing you currently hold. Other consequences may cause difficulty maintaining any fiduciary roles, obtaining public trust jobs, and any job or office related to bonding. If you have an immigration status, you may also face related troubles.
The state of Arizona offers a redemptive option for individuals who complete their sentencing. Record sealing is an option for individuals who successfully complete all steps of their sentencing. This allows your criminal record and all relevant information to be sealed by the state.
Defense and Damage Control Playbook
Now that you have an understanding of the laws and consequences you may be up against, it is important to review some possible defense strategies.
While each defense strategy is unique to each case, here are a few courses of action your attorney may consider:
Intent and Authorization
To secure a conviction of fraud or theft, the prosecution must prove that you were knowingly committing an illegal action. Mistakes, miscalculations, and accounting errors cannot be criminally prosecuted. If your lawyer can prove that any of these were the reason behind evidence like inconsistent ledgers or presumed criminal activity, your case may be dismissed.
Amount Dispute
Your attorney may be able to refute the amount that has been claimed as stolen. They can also challenge scenarios involving aggregation. Correcting the disputed amount could result in reduced fines and other penalties if the new amount falls under a lower threshold.
Restitution Strategies
If a conviction is unavoidable, your lawyer can help you take the next steps in such a way that diminishes the severity of your penalties as much as possible. Early restitution offers are one method of doing so by exchanging speedy restitution for restitution in the full amount. Victim impact mitigation in court can also have an effect on the charges you face.
Discovery Targets
Your lawyer can review evidence contained in bank records, audit trails, emails, device logs, and other places in order to showcase your innocence regarding criminal activity. Such evidence is typically presented in the discovery phase of a trial and could help you avoid prosecution or plead to a lesser charge.
Diversion/Plea Paths
While this is not always an option, some individuals may be able to receive alternative courses of prosecution in order to avoid conviction. This can include completing community service hours or attending mandatory counseling/treatment.
How Fraud and Embezzlement Cases Are Sentenced
Before stepping into the courtroom, it can be helpful to understand the trial process from a judge’s perspective and what they may be looking for from you as the defendant.
Some factors that may impact their overall ruling include the following:
- Whether you are a first-time offender or a repeat offender. This can impact the severity of the penalties you face, as well as any required actions that you may face.
- Statutory ranges for your crime. Penalties for crimes involving theft and fraud typically have fairly strict ranges, which a judge will be mindful of while reviewing your case.
- Aggravating or mitigating circumstances. If there are aggravating circumstances that make a case more severe in nature, the penalties may increase while mitigating circumstances that give insight into why a person may have committed a criminal act may reduce penalties. Both of these are typically up to a judge’s discretion.
- Presentence memo. A presentence memo is a document prepared by your defense attorney that advocates for reduced consequences. These documents can highlight any positive aspects of your character. For example, an individual with a clean presentence memo who is a first-time offender facing a class 2 felony, the judge may decide upon a lesser charge because it is their first offense; however, an individual who is a repeat offender with a category 2 or 3 felony may receive less mercy from the same judge because of their criminal history.
Embezzlement and Fraud FAQs
Embezzlement and fraud can raise many questions and concerns. The Valley Law Group strives to provide you with the answers you need to help you navigate the legal process. These are some of the most common.
Contact The Valley Law Group
If you have been charged with fraud, embezzlement, or theft in Arizona, seeking legal help from a skilled criminal defense attorney should be your first step. The Valley Law Group is proud to have helped countless individuals build formidable defenses against these serious charges. Whether you are facing charges for the first time or are a repeat offender, our seasoned Arizona criminal defense attorneys can help you achieve the best outcome possible.
Contact us today to learn more about our criminal defense team or to request a free consultation.
Sources:
- Arizona Revised Statutes § 13-2310. (n.d.). Fraudulent schemes and artifices; classification. Retrieved October 10, 2025, from https://www.azleg.gov/ars/13/02310.htm
- Arizona Revised Statutes § 13-1802. (n.d.). Theft; classification; definitions. Retrieved October 10, 2025, from https://www.azleg.gov/ars/13/01802.htm
- Arizona Revised Statutes § 13-1801. (n.d.). Definitions (Theft and related offenses). Retrieved October 10, 2025, from https://www.azleg.gov/ars/13/01801.htm
- Arizona Revised Statutes § 13-702. (n.d.). Sentence of imprisonment for felony. Retrieved October 10, 2025, from https://www.azleg.gov/ars/13/00702.htm
- Arizona Revised Statutes § 13-804. (n.d.). Restitution for crime victims. Retrieved October 10, 2025, from https://www.azleg.gov/ars/13/00804.htm
- Arizona Revised Statutes § 46-456. (n.d.). Protection of vulnerable adults. Retrieved October 10, 2025, from https://www.azleg.gov/ars/46/00456.htm
- Arizona Supreme Court. (2024). Arizona Supreme Court Calendar 2024–2025. Retrieved October 10, 2025, from https://www.azcourts.gov/Portals/0/34/2024-2025%20SC.pdf
- Arizona Revised Statutes § 13-911. (n.d.). Sealing of criminal case records; requirements; procedure. Retrieved October 10, 2025, from https://www.azleg.gov/ars/13/00911.htm
Jon McCarty has broad experience in a wide variety of criminal defense and family law matters. After graduating from the University of Illinois College of Law with the highest honors, Jon served as Law Clerk to The Honorable David Briones in the United States District Court for the Western District of Texas. After running a successful practice of his own for many years, Jon relocated to Maricopa County where he has continued to strive for excellence through aggressive yet compassionate representation of each client. Jon has been named to the list of Super Lawyers in the area of family law multiple times, and has been recognized for his outstanding commitment to Equal Access to Justice through providing pro bono representation to numerous clients.