The penalties for embezzlement in Alabama are set by the state’s general theft statutes and scale with the dollar amount involved. Taking property worth $500 or less is a Class A misdemeanor punishable by up to a year in jail. Between $500 and $1,499 is a Class D felony. Between $1,500 and $2,500 is a Class C felony. Anything above $2,500 is a Class B felony carrying up to 20 years in prison. On top of prison time, a convicted defendant can face fines, court-ordered restitution to the victim, and a separate civil lawsuit for the same conduct.
Why Embezzlement Is Prosecuted as Theft
Alabama does not have a standalone embezzlement statute for most cases. Instead, the conduct is charged under the general theft law, which makes it a crime to knowingly obtain or exert unauthorized control over someone else’s property with the intent to deprive the owner of it, or to obtain that control through deception.1Alabama Legislature. Alabama Code 13A-8-2 – Theft of Property The deception prong is where most embezzlement cases land: an employee routing company money into a personal account, a bookkeeper inflating vendor invoices, or a trustee tapping estate assets all fit the statute.
“Property” is defined broadly and includes money, tangible and intangible personal property, contract rights, and anything else of value. “Deprive” reaches further than a permanent taking. It also covers withholding property, disposing of it so the owner is unlikely to recover it, or transferring an interest in it to someone else.2Alabama Legislature. Alabama Code 13A-8-1 – Definitions Prosecutors don’t have to prove the defendant meant to keep the money forever. Routing funds through a personal account and later paying part of it back can still qualify.
Penalties by Dollar Amount
Alabama divides theft into four degrees. Each degree carries a different classification, and the sentencing range follows from that classification. The thresholds matter. A few hundred dollars can be the difference between a year in county jail and a decade in state prison.
First Degree: Over $2,500
Theft of property worth more than $2,500, or property taken directly from another person regardless of value, is theft in the first degree, a Class B felony.3Alabama Legislature. Alabama Code 13A-8-3 – Theft of Property in the First Degree4Alabama Legislature. Alabama Code 13A-5-6 – Sentences of Imprisonment for Felonies5Alabama Legislature. Alabama Code 13A-5-11 – Fines for Felonies A Class B felony carries up to 20 years in prison and a fine of up to $30,000. Workplace embezzlement cases that reach prosecution usually involve amounts well above the $2,500 line, so this is the charge that comes up most often.
Second Degree: $1,500 to $2,500
Theft of property valued between $1,500 and $2,500 that is not taken from the victim’s person is theft in the second degree, a Class C felony.6Alabama Legislature. Alabama Code 13A-8-4 – Theft of Property in the Second Degree4Alabama Legislature. Alabama Code 13A-5-6 – Sentences of Imprisonment for Felonies5Alabama Legislature. Alabama Code 13A-5-11 – Fines for Felonies
Third Degree: $500 to $1,499
Theft of property worth more than $500 but no more than $1,499 is theft in the third degree, a Class D felony.7Alabama Legislature. Alabama Code 13A-8-4.1 – Theft of Property in the Third Degree4Alabama Legislature. Alabama Code 13A-5-6 – Sentences of Imprisonment for Felonies5Alabama Legislature. Alabama Code 13A-5-11 – Fines for Felonies Theft of a credit card or debit card falls into this degree regardless of the card’s face value.
Fourth Degree: $500 or Less
Theft of property worth $500 or less that is not taken from the victim’s person is theft in the fourth degree, a Class A misdemeanor.8Alabama Legislature. Alabama Code 13A-8-5 – Theft of Property in the Fourth Degree A Class A misdemeanor is punishable by up to one year in jail. Even at this level, the conviction leaves a theft entry on the defendant’s record, which affects future employment.
Fines Can Be Double the Loss
Alabama’s fine schedule includes a provision that changes the math in most real embezzlement cases. Instead of the standard maximum tied to the felony class, the court can impose a fine equal to double the defendant’s financial gain or double the victim’s loss, whichever is greater.5Alabama Legislature. Alabama Code 13A-5-11 – Fines for Felonies An employee who embezzles $200,000 can be fined up to $400,000 under this rule, well above the $30,000 statutory cap that would otherwise apply to a Class B felony. The provision is what gives courts a meaningful fine in cases where the standard class-based cap would look like a rounding error next to the amount stolen.
Prior Felonies Increase the Sentence
A defendant with prior felony convictions faces a sharply steeper sentence under Alabama’s habitual offender law. Each prior felony bumps the punishment for the new conviction up by one felony class. One prior means a Class C conviction is punished as a Class B, and a Class B is punished as a Class A.
With two prior felonies, a new Class C felony is punished as a Class A, and a new Class B carries 15 to 99 years or life. With three priors, even a new Class C felony, which normally maxes out at 10 years, carries 15 to 99 years or life. A new Class B at that point carries a minimum of 20 years.9Alabama Legislature. Alabama HB226 – Habitual Offender Law Amendment Convictions from other states count, and no-contest pleas count the same as guilty pleas.
A Separate Statute for Funeral Services Board Funds
One narrow embezzlement statute sits outside the general theft framework. Anyone who embezzles, misuses, or misapplies money, funds, or credit belonging to the Alabama Board of Funeral Service commits a felony punishable by a fine of $500 to $5,000 and one to five years in prison. Accomplices face the same penalties and can be charged in the same indictment.10Alabama Legislature. Alabama Code 34-13-7 – Embezzlement, Abstracting, or Willfully Misapplying Moneys Collected; Bribery The same section also punishes bribery tied to funeral service licensing with a fine of at least $500 and up to three years in prison.11Justia. Alabama Code 34-13-7 – Embezzlement, Abstracting or Willfully Misapplying Moneys Collected; Bribery Outside that specific context, the general theft statutes control.
Restitution and Civil Exposure
Prison time and fines are only part of the exposure. Alabama courts can order a convicted defendant to pay restitution to the victim for the amount stolen, on top of any fine and court costs. Under the current payment system, court costs and fees are paid first and victim restitution last. As of early 2026, proposed legislation (HB 481) would reverse that priority so restitution is paid before fines and court costs.
A criminal conviction also does not shield the defendant from being sued. The victim can bring a civil claim for conversion and seek the fair market value of the property, compensation for lost use during the time it was unavailable, and legal costs. Civil cases use the preponderance-of-the-evidence standard rather than proof beyond a reasonable doubt, so a victim can win a civil judgment even if the criminal case does not end in conviction.