Hawaii Embezzlement and Forgery Laws: Theft Degrees and Penalties

Hawaii's Penal Code has no offense named embezzlement. Keeping money or property that a person received for someone else is theft under HRS 708-830, either as obtaining or exerting unauthorized control or as failing to make a required disposition of funds, and it is generally a felony when the value exceeds $750.

Theft runs in four degrees by value: a class C felony above $750 (HRS 708-831) and a class B felony above $20,000 (HRS 708-830.5), with lower lines when the victim is 60 or older and the age is known or reasonably should be known. Forgery is graded by the kind of instrument, from a misdemeanor to a class B felony (HRS 708-851 to 708-853). For other states, see our guide to embezzlement and forgery laws by state.

Information last verified on 2026-10-18. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers the Hawaii Revised Statutes theft provisions as they apply to embezzlement (708-801, 708-803, 708-830 to 708-834), misapplication of entrusted property and falsifying business records (708-872, 708-874), fraud (708-835.65), the forgery part of chapter 708 (708-850 to 708-858), offenses by public servants (710-1010.2, 710-1017), the ethics code's position-misuse rule (84-13, 84-39), financial-institution insider offenses (412:2-607, 412:2-608, 412:3-114), condominium association funds (514B-149(f)), collected use tax (238-6(f)), pension forfeiture and garnishment (88-74.8, 88-92), loss of office (831-2, 706-605(8)), sentencing, probation and restitution (chapter 706, including Act 143 of 2026) and time limits (701-108). It does not cover the full theft table (see Hawaii theft laws), identity theft, scam reporting, federal offenses, civil lawsuits or county ordinances.

What is embezzlement in Hawaii?

Hawaii treats embezzlement as theft. HRS 708-830 provides that "A person commits theft if the person does any of the following," and two of its modes fit the conduct usually called embezzlement.

The first is unauthorized control (HRS 708-830(1)): "Obtains or exerts unauthorized control over property. A person obtains or exerts unauthorized control over the property of another with intent to deprive the other of the property."

The second, failure to make required disposition of funds (HRS 708-830(6)(a)), is written for entrusted money:

"A person intentionally obtains property from anyone upon an agreement, or subject to a known legal obligation, to make specified payment or other disposition, whether from the property or its proceeds or from the person's own property reserved in equivalent amount, and deals with the property as the person's own and fails to make the required payment or disposition. It does not matter that it is impossible to identify particular property as belonging to the victim at the time of the defendant's failure to make the required payment or disposition."

Presumptions for government and bank employees

The same paragraph continues: "A person's status as an officer or employee of the government or a financial institution is prima facie evidence that the person knows the person's legal obligations with respect to making payments and other dispositions. If the officer or employee fails to pay or account upon lawful demand, or if an audit reveals a falsification of accounts, it shall be prima facie evidence that the officer or employee has intentionally dealt with the property as the officer's or employee's own."

Withheld paycheck deductions

HRS 708-830(6)(b) also makes it theft when "A person obtains personal services from an employee upon agreement or subject to a known legal obligation to make a payment or other disposition of funds to a third person on account of the employment, and the person intentionally fails to make the payment or disposition at the proper time."

Claim of right

HRS 708-834(1)(b) makes it a defense that the defendant "Believed that the defendant was entitled to the property or services under a claim of right or that the defendant was authorized, by the owner or by law, to obtain or exert control as the defendant did."

Where the word embezzlement appears

Outside the Penal Code, two statutes use the word for an offense. HRS 514B-149(f) provides: "Any person who embezzles or knowingly misapplies association funds received by a managing agent or association shall be guilty of a class C felony." Under HRS 238-6(f), a person collecting use tax "who appropriates or converts the same to the person's own use or to any use other than the payment of the tax as herein provided, and who fails to pay over the amount of tax so collected at the time required by this chapter, shall be deemed guilty of an embezzlement of property of the State and shall be fined more than five times the amount of money so embezzled or imprisoned at hard labor not more than ten years." The Financial Institutions Code also uses the word in a reporting duty: "A Hawaii financial institution shall immediately notify the commissioner in writing of any act of robbery, embezzlement, or fraud committed in connection with its affairs whenever the concerned act involves a sum in excess of $100,000" (HRS 412:3-114).

Is embezzlement a felony in Hawaii?

Generally yes when the value exceeds $750. Theft is graded in four degrees:

• Theft in the first degree (HRS 708-830.5): a class B felony. It covers "(a) Property or services, the value of which exceeds $20,000; (b) A firearm; (c) Dynamite or other explosive; (d) Property or services during an emergency period proclaimed by the governor or mayor pursuant to chapter 127A, within the area covered by the emergency or disaster under chapter 127A, the value of which exceeds $300," property taken from the person of someone 60 or older, property worth more than $750 taken from someone 60 or older, and "A motor vehicle or motorcycle as defined in section 291C-1."
• Theft in the second degree (HRS 708-831): a class C felony, including theft of "(b) Property or services the value of which exceeds $750."
• Theft in the third degree (HRS 708-832): a misdemeanor for "(a) Of property or services the value of which exceeds $250; or (b) Of gasoline, diesel fuel, or other related petroleum products used as propellants of any value not exceeding $750."
• Theft in the fourth degree (HRS 708-833): "theft of property or services of any value not in excess of $250" is a petty misdemeanor.

For the full table and other theft offenses, see Hawaii theft laws.

Victims 60 or older

Since 2021 (Act 147), the theft grades drop when the owner is 60 or older. Theft in the first degree includes "(e) Property from the person of another who is sixty years of age or older and the age of the property owner is known or reasonably should be known to the person who commits theft" and "(f) Property or services, the value of which exceeds $750, from a person who is sixty years of age or older and the age of the property owner is known or reasonably should be known to the person who commits theft" (HRS 708-830.5(1)). Theft in the second degree includes theft of "Property or services, the value of which exceeds $250, from a person who is sixty years of age or older and the age of the property owner is known or reasonably should be known to the person who commits theft" (HRS 708-831).

Chapter 708 has no standalone offense of financial exploitation of an older adult; these age lines in the theft and forgery grades are the elder provisions. For warning signs and reporting, see our guide to elder financial fraud.

Adding several takings together

HRS 708-801(6): "Amounts involved in thefts committed pursuant to one scheme or course of conduct, whether the property taken be of one person or several persons, may be aggregated in determining the class or grade of the offense."

Habitual property crime

Repeat property offenses can become a felony regardless of value. Under HRS 708-803, a person with the prior chapter 708 convictions the section lists within the preceding ten years who commits another chapter 708 offense commits habitual property crime: "(4) Habitual property crime is a class C felony." The sentence "shall be either: (a) An indeterminate term of imprisonment of five years; provided that the minimum term of imprisonment shall be not less than one year; or (b) A term of probation of five years, with conditions to include but not be limited to one year of imprisonment; provided that probation shall only be available for a first conviction under this section" (708-803(5)).

Misapplication of entrusted property and false records

A separate offense, misapplication of entrusted property, covers fiduciaries and holders of government or bank property. Its elements in HRS 708-874 do not include an intent to deprive:

"A person commits the offense of misapplication of entrusted property if, with knowledge that he is misapplying property and that the misapplication involves substantial risk of loss or detriment to the owner of the property or to a person for whose benefit the property was entrusted, he misapplies or disposes of property that has been entrusted to him as a fiduciary or that is property of the government or a financial institution."

"Misapplication of property is a misdemeanor" (708-874(4)). Falsifying business records with intent to defraud is also a misdemeanor: "Falsifying business records is a misdemeanor" (HRS 708-872(3)).

Fraud schemes

A 2023 law added a statewide fraud offense. Under HRS 708-835.65, "A person commits the offense of fraud if, with the intent to defraud, the person executes or attempts to execute any scheme or artifice to defraud or for the purpose of obtaining money or property by means of false or fraudulent pretenses, representations, or promises." A "scheme or artifice to defraud" includes "a scheme or artifice to deprive another of the intangible right of honest services," and "Fraud shall be a class B felony." It is not graded by value. If you were targeted by a fraud scheme, our Hawaii scam and fraud laws guide explains where to report it.

Public officials and public money

Chapter 708 has no separate public-funds embezzlement felony; a government employee who keeps public money is graded on the ordinary theft tiers, and the employee's status supplies the prima facie evidence described above. Other statutes reach public servants:

• Official misconduct (HRS 710-1010.2, added in 2023): a public servant commits it when, in an official capacity, the person "(a) With intent to obtain a benefit other than the person's lawful compensation, intentionally or knowingly performs an act using the power of that person's office, knowing that the act constitutes an unauthorized exercise of the person's official functions," refrains from an official duty with that intent, or "(c) Intentionally or knowingly submits or invites reliance on any statement, document, or record" that the person "knows to be falsely made, completed, or altered." "Official misconduct is a class C felony."
• Tampering with a government record (HRS 710-1017): a person who "acting knowingly, falsely makes a purported government record, or falsely completes or alters, or falsely makes an entry in, a government record or a true copy thereof" commits a misdemeanor.
• Ethics code (HRS 84-13(a)): "No legislator or employee shall use or attempt to use the legislator's or employee's official position to secure or grant unwarranted privileges, exemptions, advantages, contracts, or treatment, for oneself or others," including "(3) Using state time, equipment or other facilities for private business purposes." This is enforced by the state ethics commission through an administrative fine that "shall not exceed $5,000 for each violation" (HRS 84-39(a)), not as a crime.

Pension forfeiture

HRS 88-74.8(a) allows a court to take half of a public pension: "If a member, former member, or retirant is convicted of a felony and the court finds that, by a preponderance of the evidence, the felony is related to the employment of the member, former member, or retirant by the State or any county, the court may decree pursuant to section 706-605(8), a civil penalty of forfeiture by the member, former member, or retirant of one-half of any" interest, hypothetical account balance above employee contributions, pension, annuity or retirement allowance.

A felony is related to the employment when the employee "uses or attempts to use the employee's official position to commit the felony," including, under 88-74.8(c)(3), "Embezzlement, theft, or other unlawful taking, receiving, retaining, or failing to account properly for, any property or funds that belong to the State or any county, or any department, bureau, board, or other agency thereof." The forfeiture is discretionary ("may decree"), it "shall not impair or diminish benefits accrued prior to June 24, 2021" (88-74.8(d)), and "This section shall not apply to felonies committed prior to June 24, 2021" (88-74.8(e)). Benefits made non-forfeitable by sections 88-73(f), 88-281(g) and 88-331(f) are excluded (88-74.8(f)).

Separately, HRS 88-92 applies when a state or county official finds, or has reason to believe, that a person entitled to retirement money has "embezzled, stolen or otherwise unlawfully taken, received, retained or failed properly to account for" public property or funds that have not been returned or repaid. The official asks the retirement board to withhold payment pending an investigation and, if the evidence warrants it, brings a court action against the person.

Loss of office

Under HRS 831-2(a), "A person sentenced for a felony, from the time of the person's sentence until the person's final discharge, may not: (1) Vote in an election, but if the defendant is placed on probation or the defendant is paroled after commitment to imprisonment, the defendant may vote during the period of the probation or parole; or (2) Become a candidate for or hold public office." And "(b) A public office held at the time of conviction is forfeited as of the date of the conviction, if the conviction is in this State." "Public office" there means "an office held by an elected official, department heads, officers, and members of any board, commission, or other state agency whose appointments are made by the governor, chief justice, office of Hawaiian affairs, or the judicial selection commission," or whose appointments by law need senate approval, and "An appeal or other proceeding taken to set aside or otherwise nullify the conviction or sentence does not affect the application of this section" (831-2(b)). The sentencing code also preserves the court's authority "to decree a forfeiture of property, suspend or cancel a license, remove a person from office, or impose any other civil penalty" (HRS 706-605(8)).

Bank and financial-institution insiders

The Financial Institutions Code has its own felony. HRS 412:2-608 provides: "Any institution-affiliated party who wilfully abstracts or misapplies any of the money, funds, credits, assets, or property of a Hawaii financial institution, whether owned by the financial institution or held for safekeeping or as agent, or held in trust shall be guilty of a class C felony punishable pursuant to sections 706-660 and 706-640. However, if the amount abstracted or wilfully misapplied does not exceed $300, the institution-affiliated party shall be guilty of a misdemeanor punishable pursuant to sections 706-663 and 706-640."

False entries are a class C felony as well: an institution-affiliated party who, "With intent to deceive, makes any false or misleading statement or entry or omits any statement or entry required by law or rule to be made in any book, account, report or statement of the institution" (HRS 412:2-607(a)(1)).

What is forgery in Hawaii?

Forgery in Hawaii is falsely making, completing, endorsing or altering a written instrument, or uttering a forged instrument, with intent to defraud. The degree depends on the instrument.

The key definitions are in HRS 708-850. "Written instrument" means "(a) Any paper, document, or other instrument containing written or printed matter or its equivalent; or (b) Any token, coin, stamp, seal, badge, trademark, or other evidence or symbol of value, right, privilege, or identification." On signatures, "Falsely make" means "to make or draw a complete written instrument, or an incomplete written instrument, which purports to be an authentic creation of its ostensible maker or issuing commercial establishment, but which is not either because the ostensible maker, or issuing commercial establishment is fictitious or because, if real, the same did not authorize the making or drawing thereof."

The three degrees

• Forgery in the first degree (HRS 708-851): falsely making, completing, endorsing or altering, or uttering, an instrument that is part of an issue of government stamps, securities or other valuable instruments, or of corporate stock or bonds, or a deed, will, contract or similar instrument whose purported maker is 60 or older, when that age is known or reasonably should be known (added in 2021). "Forgery in the first degree is a class B felony."
• Forgery in the second degree (HRS 708-852): a person who "(a) Falsely makes, completes, endorses, or alters a written instrument, or utters a forged instrument, or fraudulently encodes the magnetic ink character recognition numbers, which is or purports to be, or which is calculated to become or to represent if completed, a deed, will, codicil, contract, assignment, commercial instrument, or other instrument which does or may evidence, create, transfer, terminate, or otherwise affect a legal right, interest, obligation, or status." Under the section's commentary, this category covers negotiable instruments generally, so a forged check falls here. It also covers any written instrument when "(i) The purported maker or drawer of the written instrument or forged instrument is a person who is sixty years of age or older; and (ii) The age of purported maker or drawer of the written instrument or forged instrument is known or reasonably should be known" (708-852(1)(b)). "Forgery in the second degree is a class C felony."
• Forgery in the third degree (HRS 708-853): "A person commits the offense of forgery in the third degree if, with intent to defraud, the person falsely makes, completes, endorses, or alters a written instrument, or utters a forged instrument. (2) Forgery in the third degree is a misdemeanor."

Uttering is part of each degree and takes that degree's grade. For the victim side of stolen and altered checks, see our guide to mail theft and check washing.

Related offenses in the forgery part

• Criminal possession of a forgery device (HRS 708-854): "Criminal possession of a forgery device is a class C felony."
• Criminal simulation (HRS 708-855): faking the antiquity, rarity, source or authorship of an object. "Criminal simulation is a misdemeanor."
• Obtaining a signature by deception (HRS 708-856): "Obtaining a signature by deception is a misdemeanor."
• Worthless checks (HRS 708-857): "Negotiating a worthless negotiable instrument is a misdemeanor."
• Suppressing a will or deed (HRS 708-858): destroying, removing or concealing a testamentary or recordable instrument with intent to defraud. "Each offense defined in this section is a class C felony."

Hawaii embezzlement and forgery offenses at a glance

Felony terms come from HRS 706-660(1): "(a) For a class B felony--ten years; and (b) For a class C felony--five years." These are indeterminate terms, with the minimum set by the Hawaii paroling authority. Fines come from HRS 706-640(1): "$25,000, when the conviction is of a class B felony," "$10,000, when the conviction is of a class C felony," "$2,000, when the conviction is of a misdemeanor," "$1,000, when the conviction is of a petty misdemeanor or a violation," or "Any higher amount equal to double the pecuniary gain derived from the offense by the defendant." The 364-day misdemeanor figure reflects Act 143 of 2026, described below. Repeat offenders can face mandatory minimum terms under HRS 706-606.5, described in the next section. For how Hawaii classifies offenses generally, see Hawaii felony classes and misdemeanor penalties.

Sentencing, probation and restitution

Probation is generally available, with exceptions. HRS 706-620 provides that a convicted defendant "may be sentenced to a term of probation unless" one of its listed exceptions applies, one of which is that "(3) The defendant is a repeat offender under section 706-606.5." The repeat-offender statute applies to a person convicted of "any class B felony" (which includes theft in the first degree, forgery in the first degree and fraud) or of listed class C felonies, among them "(r) Section 708-831 relating to theft in the second degree," "(w) Section 708-852 relating to forgery in the second degree" and "(x) Section 708-854 relating to criminal possession of a forgery device" (HRS 706-606.5(1)). Where the person has a prior felony conviction within the periods set in 706-606.5(3), the statute requires "A mandatory minimum period of imprisonment without possibility of parole": for a class B felony, three years, four months with one prior felony conviction, six years, eight months with two, and ten years with three or more; for a listed class C felony, one year, eight months, three years, four months, and five years (706-606.5(2)). The court "may impose a lesser mandatory minimum period of imprisonment without possibility of parole than that mandated by this section where the court finds that strong mitigating circumstances warrant the action" (706-606.5(6)).

A person convicted of theft in the third degree who has been convicted of a listed misdemeanor, such as theft in the third degree, "on at least three prior and separate occasions within three years of the date of the commission of the present offense, shall be sentenced to no less than nine months of imprisonment" (706-606.5(5)). For a misdemeanor or petty misdemeanor, the court "may sentence a person convicted of a misdemeanor or petty misdemeanor to a suspended sentence" (HRS 706-605(3)).

Restitution is required on request: when the victim asks for it, the court must order the defendant to repay the victim's reasonable, substantiated losses that resulted from the offense (HRS 706-646(2)). "In ordering restitution, the court shall not consider the defendant's financial ability to make restitution in determining the amount of restitution to order. The court, however, shall consider the defendant's financial ability to make restitution for the purpose of establishing the time and manner of payment" (706-646(3)).

Time limits for prosecution

Under HRS 701-108(2), "(d) A prosecution for any other felony must be commenced within three years after it is committed; (e) A prosecution for a misdemeanor or parking violation must be commenced within two years after it is committed," and a petty misdemeanor within one year. Theft in the first and second degree and the forgery felonies are class B and C felonies, so the three-year period applies.

Two extensions in 701-108(3) can matter here. After the regular period has run, a prosecution may still be commenced for:

• "(a) Any offense an element of which is fraud, deception as defined in section 708-800, or a breach of fiduciary obligation or the offense of medical assistance fraud under section 346-43.5, within three years after discovery of the offense by an aggrieved party or by a person who has a legal duty to represent an aggrieved party and who is oneself not a party to the offense, but in no case shall this provision extend the period of limitation by more than six years from the expiration of the period of limitation prescribed in subsection (2)";
• "(b) Any offense based on misconduct in office by a public servant at any time when the defendant is in public office or employment or within two years thereafter, but in no case shall this provision extend the period of limitation by more than three years from the expiration of the period of limitation prescribed in subsection (2)."

The period also does not run "During any time when the accused is continuously absent from the State or has no reasonably ascertainable place of abode or work within the State," but that rule cannot extend the period by more than four years (701-108(6)(a)).

The statute does not say whether theft by failure to make required disposition is an offense with an element of fraud, deception or breach of fiduciary obligation. For civil deadlines, see the Hawaii statute of limitations guide.

Recent changes

• 2026: misdemeanor jail maximum. Act 143 (H.B. 1548 C.D. 1), approved June 24, 2026, added a section to chapter 706 providing that any offense that is not a crime of violence and is punishable by up to one year "shall be punishable by a term of imprisonment not to exceed three hundred sixty-four days," and amended HRS 706-663 to match, except that a misdemeanor that is a crime of violence (as defined in HRS 134-1) keeps the one-year maximum. A person sentenced for a misdemeanor that is not a crime of violence before the act took effect "may submit an application to the trial court that entered the judgment of conviction to reconsider the sentence." Section 4 of the act provides: "This Act shall take effect upon its approval." The official HRS web page for 706-663 still prints the earlier one-year figure; the act controls. Felony maximums did not change.
• 2023: fraud and official misconduct. Act 131 of 2023 added the fraud offense (HRS 708-835.65, class B felony) and Act 130 of 2023 added official misconduct (HRS 710-1010.2, class C felony).
• 2021: victims 60 or older and pension forfeiture. Act 147 of 2021 added the age-60 lines to theft in the first degree and to forgery in the first and second degree. Act 84 of 2021 created the pension forfeiture in HRS 88-74.8, which applies only to felonies committed on or after June 24, 2021.

Federal law separately reaches embezzlement from banks and federal programs and mail or wire fraud schemes; those offenses are covered on our embezzlement and forgery laws by state hub.

Related pages

• Embezzlement and forgery laws by state
• Hawaii theft laws
• Hawaii felony classes and misdemeanor penalties
• Hawaii scam and fraud laws
• Hawaii statute of limitations

This article provides general legal information about Hawaii law and is not legal advice. For advice about a specific situation, contact a lawyer licensed in Hawaii.

Last updated: 2026-10-18.

Frequently Asked Questions

Is embezzlement a felony in Hawaii?

Generally yes when the value exceeds $750. Embezzlement is theft under HRS 708-830; theft in the second degree (over $750) is a class C felony and theft in the first degree (over $20,000) is a class B felony, with lower lines when the owner is 60 or older and the age is known or reasonably should be known.

What is the penalty for embezzlement in Hawaii?

A class C felony carries an indeterminate term of up to 5 years and a fine up to $10,000; a class B felony up to 10 years and a fine up to $25,000; either fine may instead be double the gain (HRS 706-660, 706-640). Probation is available unless an exception in HRS 706-620 applies, such as repeat-offender sentencing with a mandatory minimum under HRS 706-606.5, and restitution must be ordered when the victim requests it.

Does Hawaii have a crime called embezzlement?

Not in the Penal Code, which covers the conduct as theft under HRS 708-830, including failure to make required disposition of funds in 708-830(6), and knowing misapplication of entrusted property without theft intent is a separate misdemeanor under 708-874. Outside the Penal Code, embezzling condominium association funds is a class C felony (HRS 514B-149(f)), and a seller who converts collected use tax is deemed guilty of embezzlement of property of the State (HRS 238-6(f)).

What happens to a public employee who takes public money in Hawaii?

Taking public money is graded as theft by value, and a government employee's status is prima facie evidence of knowing the obligation (HRS 708-830(6)). A felony conviction forfeits an elected or appointed public office, as HRS 831-2 defines it, held at the time, and for felonies committed on or after June 24, 2021 using the official position, a court may order forfeiture of half of a state or county pension (HRS 88-74.8).

Is forgery a felony in Hawaii?

It depends on the instrument. Forgery in the first degree (government or corporate securities) is a class B felony, forgery in the second degree (deeds, wills, contracts, commercial instruments such as checks) is a class C felony, and forgery in the third degree is a misdemeanor (HRS 708-851 to 708-853). A deed, will or contract of a maker 60 or older is first degree, and any other instrument of such a maker is second degree, when the age is known or reasonably should be known.

Is signing someone else's name a crime in Hawaii?

Under HRS 708-850, an instrument is falsely made when it purports to be the authentic creation of its maker but is not, because the maker is fictitious or did not authorize it. Forgery also requires intent to defraud (HRS 708-853).

How long does Hawaii have to charge embezzlement?

Generally three years for a class B or C felony and two years for a misdemeanor (HRS 701-108(2)). For an offense with an element of fraud, deception or breach of fiduciary obligation, prosecution may start within three years after discovery, but no more than six years past the regular period. The period also stops running while the accused is continuously absent from the State, by up to four years (701-108(6)(a)).