Indiana Embezzlement and Forgery Laws: Theft and Penalties (2026)

Title 35 of the Indiana Code, the state's criminal code, has no offense named embezzlement. An employee, agent or trustee who uses entrusted property beyond what the owner allowed commits theft under IC 35-43-4-2, because control "in a manner or to an extent other than that to which the other person has consented" is unauthorized control (35-43-4-1(b)(2)). Theft is a Class A misdemeanor under $750 and generally a Level 6 felony from $750, rising to a Level 5 felony at $50,000. Forgery is a Level 6 felony at any amount (35-43-5-2(b)). 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 Indiana Code provisions on theft and criminal conversion as they apply to embezzlement (35-43-4-1 to 35-43-4-5), aggregation (35-41-2-6), public-servant offenses (35-44.1-1-1 to 35-44.1-1-5) and the public retirement reimbursement rules (5-10.3-8-9, 5-10.4-5-14), exploitation of a dependent or endangered adult (35-46-1-12, 35-46-1-13), fraud (35-43-5-4), the forgery and counterfeiting chapter (35-43-5), the money-transmitter trust provision (28-8-4.1-803), funeral trust, cemetery perpetual care and redevelopment fund misuse (30-2-9-7, 30-2-10-9, 30-2-13-38, 23-14-48-9, 36-7-14-40), public-funds depository and cashbook rules (35-44.2-2-1, 35-44.2-2-2), the habitual offender statute (35-50-2-8), limitation periods (35-41-4-2), the civil treble-damages statute (34-24-3-1) and the felony and misdemeanor ranges. It does not cover the full theft table (see Indiana theft laws), identity deception grading in detail, scams and victim reporting, federal offenses, or local ordinances.

What is embezzlement in Indiana?

Indiana charges embezzlement as theft. Under IC 35-43-4-2(a), "A person who knowingly or intentionally exerts unauthorized control over property of another person, with intent to deprive the other person of any part of its value or use, commits theft, a Class A misdemeanor," with felony grades by value.

What makes the theft statute reach embezzlement is the definition of "unauthorized." Under 35-43-4-1(b), control over another person's property is unauthorized if it is exerted:

"(1) without the other person's consent; (2) in a manner or to an extent other than that to which the other person has consented; (3) by transferring or encumbering other property while failing to disclose a lien, adverse claim, or other legal impediment to the enjoyment of that other property; (4) by creating or confirming a false impression in the other person; (5) by failing to correct a false impression that the person knows is influencing the other person, if the person stands in a relationship of special trust to the other person; (6) by promising performance that the person knows will not be performed; ..."

The list continues with threats to damage property or impair another person's rights and unauthorized copying of recordings or live performances for profit. Clause (2) covers a person who received property with the owner's consent and then used it beyond that consent. Clause (5) applies to a person who "stands in a relationship of special trust." Under 35-43-4-1(a), to "exert control" includes to obtain, take, conceal, sell, convey, encumber or possess property. These definitions apply "Under this chapter," that is, to the theft chapter, 35-43-4.

Criminal conversion

Criminal conversion is the same conduct without the intent to deprive. Under 35-43-4-3(a), "A person who knowingly or intentionally exerts unauthorized control over property of another person commits criminal conversion, a Class A misdemeanor." It becomes a felony only in motor-vehicle situations described in 35-43-4-3(b) to (d).

Is embezzlement a felony in Indiana?

Generally at $750 or more. Under 35-43-4-2(a), theft is a Class A misdemeanor, "However, the offense is: (1) a Level 6 felony if: (A) the value of the property is at least seven hundred fifty dollars ($750) and less than fifty thousand dollars ($50,000)" and "(2) a Level 5 felony if: (A) the value of the property is at least fifty thousand dollars ($50,000)." Our Indiana theft laws page has the shoplifting and motor-vehicle rules.

Prior convictions

A prior conviction can make theft of any amount a Level 6 felony. Under 35-43-4-2(a)(1)(C), the Level 6 grade also applies if "the person has a prior unrelated conviction for: (i) theft under this section; (ii) criminal conversion under section 3 of this chapter; (iii) robbery under IC 35-42-5-1; or (iv) burglary under IC 35-43-2-1."

Separately, the habitual offender statute can add time. Under 35-50-2-8(i), the court sentences a person found to be a habitual offender to an additional fixed term that is between "three (3) years and six (6) years, for a person convicted of a Level 5 or Level 6 felony," and "An additional term imposed under this subsection is nonsuspendible." The status requires prior unrelated felonies with timing and level conditions set out in 35-50-2-8(c) and (d). Under 35-50-2-8(e), "The state may not seek to have a person sentenced as a habitual offender for a felony offense under this section if the current offense is a misdemeanor that is enhanced to a felony in the same proceeding as the habitual offender proceeding solely because the person had a prior unrelated conviction."

Adding up a series of takings

Indiana's aggregation rule has a 30-day window. Under 35-41-2-6(b), "Offenses that are committed in a thirty (30) day period may be charged in a single count. The value of property involved in offenses: (1) committed in a thirty (30) day period; and (2) charged in a single count; may be aggregated." Separately, 35-34-1-9 allows offenses of the same or similar character to be joined in one charging document.

Organized theft

Under 35-43-4-2.1(a), "A person who, with the intent to commit theft under section 2 of this chapter: (1) agrees with at least two (2) other persons to commit theft; and (2) performs an overt act in furtherance of the agreement; commits organized theft, a Level 6 felony." Organized retail theft (35-43-4-2.2), which involves a retail merchant's property taken with intent to distribute it for resale, is a Level 6 felony and a Level 5 felony at $50,000 or more, with a firearm, or with a prior unrelated organized retail theft, theft or conversion conviction.

Public servants and public money

The criminal code has no separate offense of embezzling public funds. A public servant who takes public money commits theft, graded by value. Related handling rules carry their own penalties: a public servant who knowingly or intentionally fails to deposit public funds "not later than one (1) business day following the receipt of the funds" commits a Class C infraction, which is a Class A misdemeanor with a prior unrelated adjudication or conviction under the section within five years (35-44.2-2-1), and failing to keep and balance a daily cashbook of public funds is a Class C infraction, which is a Class B misdemeanor if committed knowingly or intentionally with such a prior within five years (35-44.2-2-2). The theft statute adds a reimbursement rule: under 35-43-4-2(c), "If the offense described in subsection (a) is committed by a public servant who exerted unauthorized control over public funds (as defined by IC 5-22-2-23) from the public servant's employer, the employer may be reimbursed in accordance with IC 2-3.5-4-11, IC 2-3.5-5-9, IC 5-10-5.5-19, IC 5-10.3-8-9, IC 5-10.4-5-14, IC 10-12-2-10, IC 33-38-6-19.5, IC 33-39-7-10.5, IC 36-8-6-14, IC 36-8-7-22, IC 36-8-7.5-19, or IC 36-8-8-17."

Retirement funds used to repay the employer

Indiana's public retirement law takes a reimbursement approach rather than a forfeiture. For the Public Employees' Retirement Fund, IC 5-10.3-8-9(a) provides that "the member's contributions or benefits, or both, may be transferred to reimburse the member's employer for loss resulting from the member's criminal taking of the employer's property by the board if the board receives adequate proof of the loss. The loss resulting from the member's criminal taking of the member's employer's property must be proven by an order for restitution in favor of the employer issued by the sentencing court following a felony or misdemeanor conviction." Under 5-10.3-8-9(b), "The board may withhold payment of a member's contributions and interest if the employer of the member notifies the board that felony or misdemeanor charges accusing the member of the criminal taking of the employer's property have been filed." The board may withhold payment "until the final resolution of the criminal charges," and the withholding rule does not apply to the "(1) pension portion of the member's retirement benefit; or (2) disability retirement benefit of a member who becomes disabled" (5-10.3-8-9(c)-(d)). The Indiana State Teachers' Retirement Fund has a parallel rule in 5-10.4-5-14, and 35-43-4-2(c) also names sections for other public systems, including IC 36-8-8-17 in the 1977 Police Officers' and Firefighters' Pension and Disability Fund chapter.

Official misconduct and related offenses

• Official misconduct (35-44.1-1-1), Level 6 felony. A public servant who knowingly or intentionally "(1) commits an offense in the performance of the public servant's official duties" or "(4) fails to deliver public records and property in the public servant's custody to the public servant's successor in office when that successor qualifies," among other listed acts, including taking property from appointees or employees as a condition of employment and trading on nonpublic information.
• Ghost employment (35-44.1-1-3), Level 6 felony. A public servant who "(1) hires an employee for the governmental entity that the public servant serves; and (2) fails to assign to the employee any duties, or assigns to the employee any duties not related to the operation of the governmental entity." The section also reaches an employee who accepts property for no duties or non-governmental duties.
• Conflict of interest (35-44.1-1-4), Level 6 felony. A public servant who knowingly or intentionally "(1) has a pecuniary interest in; or (2) derives a profit from; a contract or purchase connected with an action by the governmental entity served by the public servant," subject to exceptions listed in 35-44.1-1-4(c).
• Profiteering from public service (35-44.1-1-5), Level 6 felony. A person who "obtains a pecuniary interest in a contract or purchase with an agency within one (1) year after separation from employment or other service with the agency" and "is not a public servant for the agency but who as a public servant approved, negotiated, or prepared on behalf of the agency the terms or specifications of" the contract or purchase, subject to listed exceptions.

The limitation period also pauses for officials: it does not run while "the accused person is a person elected or appointed to office under statute or constitution, if the offense charged is theft or conversion of public funds or bribery while in public office" (35-41-4-2(h)(3)).

Exploitation of a dependent or endangered adult

Indiana's theft statute has no victim-age grade. Two other provisions apply when the victim is an endangered adult or a dependent.

Exploitation (35-46-1-12). The section covers a person who recklessly uses or exerts control over the personal services or property of an endangered adult or a dependent for the person's own profit or advantage, or another's. Under 35-46-1-12(c), "A person in a position of trust who recklessly engages in self-dealing with the property of: (1) an endangered adult; or (2) a dependent; commits exploitation of a dependent or an endangered adult, a Class A misdemeanor. However, the offense is a Level 6 felony if the person has a prior unrelated conviction under this section." The section has a defense for a person acting under a durable power of attorney or as a guardian within the scope of that fiduciary authority. A "dependent" is "(A) an unemancipated person who is under eighteen (18) years of age; or (B) a person of any age who has a mental or physical disability" (35-46-1-1(1)). Under IC 12-10-3-2(a), an "endangered adult" is an individual who is "(1) at least eighteen (18) years of age; (2) incapable by reason of mental illness, intellectual disability, dementia, or other physical or mental incapacity of managing or directing the management of the individual's property or providing or directing the provision of self-care; and (3) harmed or threatened with harm as a result of: (A) neglect; (B) a battery offense included in IC 35-42-2; or (C) exploitation of the individual's personal services or property." Neither definition sets an age-based line for older adults.

Fraud against an endangered adult or a minor (35-43-5-4). Fraud is graded higher when the victim is an endangered adult or under 18: a Level 6 felony for any loss, a Level 5 felony when "The pecuniary loss is at least seven hundred fifty dollars ($750) and less than fifty thousand dollars ($50,000) and the victim is: (A) an endangered adult (as defined in IC 12-10-3-2 (a)); or (B) less than eighteen (18) years of age," and a Level 4 felony at $50,000 or more with such a victim.

Duty to report. Under 35-46-1-13(a), a person who believes or has reason to believe that an endangered adult, or a person of any age with a mental or physical disability, is the victim of battery, neglect or exploitation, and knowingly fails to report it to the division of disability, aging, and rehabilitative services, the adult protective services unit or a law enforcement agency, "commits a Class B misdemeanor." For warning signs and where to report, see our guide to elder financial fraud.

Fraud, banks and money held in trust

Fraud (35-43-5-4). Obtaining property by a false or misleading statement or a false impression is fraud, "a Class A misdemeanor except as otherwise provided in this section." It is a Level 6 felony when "The pecuniary loss is at least seven hundred fifty dollars ($750) but less than fifty thousand dollars ($50,000)," a Level 5 felony when "The pecuniary loss is at least fifty thousand dollars ($50,000) and less than one hundred thousand dollars ($100,000)," and a Level 4 felony when "The pecuniary loss is at least one hundred thousand dollars ($100,000)." Fraud is also a Level 6 felony when committed within 7 years of a prior unrelated conviction for an offense under IC 35-43, or of release from that sentence (35-43-5-4(b)(1)). It is a Level 6 felony at any loss when the person made the false or misleading statement or created the false impression "on or by means of a document or written instrument" (35-43-5-4(b)(8)), except that this form "is a Class A misdemeanor if the defendant proves by a preponderance of the evidence that the: (1) value of the property, data, or benefit intended to be obtained; and (2) actual pecuniary loss; is less than seven hundred fifty dollars ($750)" (35-43-5-4(e)). It is also a Level 6 felony when the document or instrument used was issued by a public servant or governmental entity, was made or altered to appear so issued, or was tendered or meant to be tendered to one (35-43-5-4(b)(7)).

Financial institutions. Fraud in which "The victim was a financial institution" is a Level 5 felony (35-43-5-4(c)(3)). In the financial institutions title, a person suspended or prohibited from participating in a financial institution's affairs who then "knowingly or intentionally participates, directly or indirectly, in the management of the financial institution; commits a Level 6 felony" (28-11-4-11).

Money transmitters. Under 28-8-4.1-803(d), "An authorized delegate who: (1) holds money in trust for the benefit of a licensee; and (2) knowingly fails to remit any amount of such money; commits a Level 6 felony, if the amount of money described in subdivision (2) is more than seven hundred fifty dollars ($750) but less than fifty thousand dollars ($50,000)." The section makes $750 or less a Class A misdemeanor and grades larger amounts higher.

Funeral trusts, cemetery funds and redevelopment money. Several statutes outside the criminal code make misuse of money held for a set purpose a Level 5 felony at any amount. A person who "knowingly or intentionally uses or disburses funds in a funeral trust established under this chapter for purposes other than the purposes required under this chapter commits a Level 5 felony" (IC 30-2-9-7(b); the same rule appears in 30-2-10-9(b), and 30-2-13-38(f) covers a trust or escrow account under that chapter). A person who "knowingly or intentionally uses funds in a perpetual care fund established under this chapter for purposes other than the perpetual care of the cemetery for which the perpetual care fund was established commits a Level 5 felony" (IC 23-14-48-9(c)). Under the redevelopment chapter, a person who knowingly "(1) applies any money raised under this chapter to any purpose other than those permitted by this chapter; or (2) fails to follow the voucher and warrant procedure prescribed by this chapter in expending any money raised under this chapter; commits a Level 5 felony" (IC 36-7-14-40).

What is forgery in Indiana?

Forgery and counterfeiting share one section, IC 35-43-5-2, and both are Level 6 felonies with no value tiers:

"(a) A person who knowingly or intentionally: (1) makes or utters a written instrument in such a manner that it purports to have been made: (A) by another person; (B) at another time; (C) with different provisions; or (D) by authority of one who did not give authority; or (2) possesses more than one (1) written instrument knowing that the written instruments were made in a manner that they purport to have been made: (A) by another person; (B) at another time; (C) with different provisions; or (D) by authority of one who did not give authority; commits counterfeiting, a Level 6 felony. (b) A person who, with intent to defraud, makes, utters, or possesses a written instrument in such a manner that it purports to have been made: (1) by another person; (2) at another time; (3) with different provisions; or (4) by authority of one who did not give authority; commits forgery, a Level 6 felony."

The difference is intent and quantity. Forgery requires "intent to defraud" and covers making, uttering or possessing even a single instrument. Counterfeiting has no intent-to-defraud element, but its possession clause requires "more than one (1) written instrument." Uttering is part of both offenses.

"Written instrument" is defined for the whole chapter as "a paper, a document, or other instrument containing written matter and includes money, coins, tokens, stamps, seals, credit cards, badges, trademarks, medals, retail sales receipts, labels or markings (including a universal product code (UPC) or another product identification code), or other objects or symbols of value, right, privilege, or identification" (35-43-5-1(s)). An instrument made "by authority of one who did not give authority" is one of the listed forms. For the victim side of forged and washed checks, see our guide to mail theft and check washing.

Other offenses in the forgery chapter

• False government-issued identification (35-43-5-2.5), Class A misdemeanor. Possessing, producing or distributing a document that is not government-issued but purports to be a government ID.
• Identity deception (35-43-5-3.5), Level 6 felony. Using another person's identifying information with intent to harm or defraud; a Level 5 felony when the information of more than 100 persons is involved, the fraud or harm is at least $50,000, or the information belongs to a person under 18 who is the offender's son or daughter, dependent or ward, or someone for whom the offender is guardian (35-43-5-3.5(b)). See our Indiana identity theft laws page.
• Notary fraud (35-43-5-23), Level 6 felony. "A notarial officer who, with intent to defraud, knowingly or intentionally: (1) affixes a person's signature to a blank affidavit or certificate of acknowledgment; and (2) delivers that affidavit or certificate to another person; with the intent that it be used as an affidavit or acknowledgment commits notary fraud," and the section also reaches a person who uses such a document.
• Other sections: notario publico deception (35-43-5-3.7), insurance fraud (35-43-5-4.7), sales suppression devices (35-43-5-4.8), deception involving out-of-hospital do-not-resuscitate declarations (35-43-5-13), drug and alcohol screening interference (35-43-5-18 and 35-43-5-19), and dealing in altered property (35-43-4-2.3).

Bad checks

Indiana repealed its separate check-deception offense, IC 35-43-5-5, in 2021 (P.L.174-2021). Check conduct now falls under theft or fraud. The theft chapter supplies an inference: under 35-43-4-4(e), "a person who has insufficient funds in or no account with a drawee credit institution and who makes, draws, or utters a check, draft, or order for payment on the credit institution may be inferred: (1) to have known that the credit institution would refuse payment upon presentment in the usual course of business; and (2) to have intended to deprive the owner of any property acquired by making, drawing, or uttering the check." Section 35-43-4-5(b) states a defense under the chapter for a maker or drawer who has an account but insufficient funds and who "pays the credit institution the amount due, together with protest fees, within ten (10) days after receiving notice."

Indiana embezzlement and forgery offenses and penalties

Indiana felony ranges are fixed terms with an advisory sentence. A Level 6 felony "shall be imprisoned for a fixed term of between six (6) months and two and one-half (2 1/2) years, with the advisory sentence being one (1) year," plus a fine of up to $10,000 (35-50-2-7(b)). A Level 5 felony is "between one (1) and six (6) years, with the advisory sentence being three (3) years," with a fine of up to $10,000 (35-50-2-6(b)). A Level 4 felony is "between two (2) and twelve (12) years, with the advisory sentence being six (6) years," with a fine of up to $10,000 (35-50-2-5.5). A Class A misdemeanor is "a fixed term of not more than one (1) year," with a fine of "not more than five thousand dollars ($5,000)" (35-50-3-2). Under 35-50-2-2.2(a), "Except as provided in subsection (b) or (c), the court may suspend any part of a sentence for a felony," and 35-50-2-7(c) allows a court, in listed circumstances and subject to listed exceptions, to enter a Level 6 conviction as a Class A misdemeanor. The full class table is on our Indiana felony levels and misdemeanor classes page.

Time limits for prosecution

Under 35-41-4-2(a), a prosecution for a Level 3, 4, 5 or 6 felony, including felony theft, fraud and forgery, must generally begin within 5 years, and a misdemeanor prosecution within 2 years. Forgery of money instruments has its own clock: "A prosecution for forgery of an instrument for payment of money, or for the uttering of a forged instrument, under IC 35-43-5-2, is barred unless it is commenced within five (5) years after the maturity of the instrument" (35-41-4-2(f)).

Trust-fund offenses have their own clocks. A prosecution for misuse of funeral trust funds under IC 30-2-9-7(b) or 30-2-10-9(b) "is barred unless commenced within five (5) years after the date of death of the settlor," and one under 30-2-13-38(f) within five years after the date of death of the purchaser (35-41-4-2(k)). A prosecution under IC 23-14-48-9 is barred unless commenced within five years after the earlier of the date the state "(1) first discovers evidence sufficient to charge the offender with the offense; or (2) could have discovered evidence sufficient to charge the offender with the offense by the exercise of due diligence" (35-41-4-2(l)).

The period does not run while the accused is not publicly resident in Indiana or conceals himself so that process cannot be served, or while "the accused person conceals evidence of the offense, and evidence sufficient to charge the person with that offense is unknown to the prosecuting authority and could not have been discovered by that authority by exercise of due diligence" (35-41-4-2(h)(1)-(2)), and for officials charged with theft or conversion of public funds while in office (35-41-4-2(h)(3)). Under 35-41-4-2(j), a plea of guilty cures a lapsed period. Civil filing deadlines are on our Indiana statute of limitations page.

Suing for triple damages

Under IC 34-24-3-1, a person who "suffers a pecuniary loss as a result of a violation of" IC 35-43, the article that holds theft, conversion, forgery and fraud, among other listed laws, "may bring a civil action against the person who caused the loss" for "An amount not to exceed three (3) times" the actual damages, "The costs of the action" and "A reasonable attorney's fee." For fraud schemes and where to report them, see our Indiana scam and fraud laws page.

Recent changes

• P.L.80-2026 (effective July 1, 2026). Amended IC 35-43-4-2 to add theft of a "domestic animal" to the Level 6 felony grades that apply regardless of value. The value lines ($750 for a Level 6 felony and $50,000 for a Level 5 felony), the prior-conviction rule and the public-funds reimbursement subsection did not change.
• P.L.174-2021. Repealed the separate check-deception offense, IC 35-43-5-5, and last amended the forgery and counterfeiting section, 35-43-5-2.

Federal law

Federal law also reaches embezzlement from banks and federal programs and wire or mail fraud schemes; the embezzlement and forgery laws hub covers those statutes.

Related pages

• Embezzlement and forgery laws by state
• Indiana theft laws
• Indiana felony levels and misdemeanor classes
• Indiana scam and fraud laws
• Indiana identity theft laws

This article is general legal information about Indiana criminal statutes, not legal advice. For a specific situation, contact a lawyer licensed in Indiana.

Last updated: 2026-10-18.

Frequently Asked Questions

Is embezzlement a felony in Indiana?

Generally at $750 or more. Embezzlement is theft under IC 35-43-4-2: a Class A misdemeanor under $750, a Level 6 felony from $750 to under $50,000, and a Level 5 felony at $50,000 or more. A prior unrelated theft, conversion, robbery or burglary conviction makes any amount a Level 6 felony.

What is the penalty for embezzling $50,000 or more in Indiana?

Theft of $50,000 or more is a Level 5 felony, with a fixed term of 1 to 6 years (advisory 3 years) and a fine of up to $10,000 (35-50-2-6(b)).

What is the difference between theft and criminal conversion in Indiana?

Both involve knowingly exerting unauthorized control over another person's property. Theft (35-43-4-2) also requires intent to deprive the owner of any part of its value or use; criminal conversion (35-43-4-3) does not and is a Class A misdemeanor.

Is forgery a felony in Indiana?

Yes. Forgery under IC 35-43-5-2(b), which covers making, uttering or possessing a written instrument with intent to defraud, is a Level 6 felony at any amount, with a fixed term of 6 months to 2.5 years and a fine of up to $10,000.

Is signing someone else's name on a check forgery in Indiana?

Section 35-43-5-2(b) covers making or uttering a written instrument, with intent to defraud, so that it purports to have been made by another person or by authority of one who did not give authority. Money and other symbols of value are written instruments under 35-43-5-1(s).

Can an Indiana public employee lose a pension for embezzlement?

Indiana uses reimbursement rather than forfeiture. Under IC 5-10.3-8-9, a member's contributions or benefits may be transferred to repay the employer for a criminal taking proven by a restitution order after a conviction, and the board may withhold contributions and interest once charges are filed, until the charges are finally resolved. The hold does not apply to the pension portion of the benefit or to a disability retirement benefit.

How long does Indiana have to prosecute embezzlement?

Generally 5 years for a Level 6 or Level 5 felony and 2 years for a misdemeanor (35-41-4-2(a)). The period pauses while the accused conceals evidence that could not have been discovered with due diligence, and for officials charged with theft of public funds while in office.

Can an embezzlement victim sue for triple damages in Indiana?

Yes. Under IC 34-24-3-1, a person who suffers a pecuniary loss from a violation of IC 35-43, which includes theft and forgery, may recover up to 3 times actual damages, costs and a reasonable attorney's fee.