Is Embezzlement a Felony in Iowa? Theft, Forgery and Penalties

Iowa's criminal code has no offense named embezzlement. A person who misappropriates property held in trust, or someone else's property in his or her possession or control, commits theft under Iowa Code 714.1(2), and it is generally a felony when the value exceeds $1,500 (theft in the second degree, 714.2).

A theft against someone 60 or older is raised one class (714.2A), and a person in a position of trust who exploits an older individual commits a separate offense under 726.25. Forgery under 715A.2, which includes uttering and possessing a known forgery, is a class D felony for checks, money and securities and an aggravated misdemeanor for wills, deeds and contracts. 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 Iowa Code on theft by misappropriation (714.1 to 714.3), theft against older individuals (714.2A), financial exploitation of an older individual (726.25), dependent adult abuse by exploitation (726.26, 235B.2), public-officer offenses (721.1, 721.2, 721.11) and fraudulent practice by false records (714.8 to 714.14), the fuel-tax trust rule (452A.73), bank and credit union insider offenses (524.1605, 533.509), the forgery chapter (715A.1 to 715A.7, 715A.10), bad checks (714.1(6)), removal from office (66.1A, 66.3), gift card offenses (714.2D), sentencing and restitution (902.8, 902.9, 903.1, 907.3, 910.1, 910.2) and time limits (802.3 to 802.7). It does not cover the full theft value table (see Iowa theft laws), identity theft, scams and victim reporting, federal offenses, civil lawsuits or local ordinances.

What is embezzlement in Iowa?

Iowa folds embezzlement into theft. Under Iowa Code 714.1, a person commits theft when the person does any of the listed acts, including:

"2. Misappropriates property which the person has in trust, or property of another which the person has in the person's possession or control, whether such possession or control is lawful or unlawful, by using or disposing of it in a manner which is inconsistent with or a denial of the trust or of the owner's rights in such property, or conceals found property, or appropriates such property to the person's own use, when the owner of such property is known to the person."

The elements are property held in trust or in the person's possession or control, and a use or disposal "inconsistent with or a denial of the trust or of the owner's rights." The ordinary taking form of theft is separate: 714.1(1) covers a person who "Takes possession or control of the property of another, or property in the possession of another, with the intent to deprive the other thereof."

For rented and bailed property, 714.1(2)(a) adds: "Failure by a bailee or lessee of personal property to return the property within seventy-two hours after a time specified in a written agreement of lease or bailment shall be evidence of misappropriation."

Outside the criminal code, Iowa Code 452A.73, headed "Embezzlement of fuel tax money," provides that a person collecting fuel tax as part of the price "shall hold the tax money in trust for the state of Iowa," and that "Any person receiving fuel tax money in trust and failing to remit it to the department of revenue on or before time required shall be guilty of theft."

Is embezzlement a felony in Iowa?

Generally yes once the value exceeds $1,500. Theft by misappropriation is graded by the value table in Iowa Code 714.2:

• First degree, class C felony: property "exceeding ten thousand dollars in value" (or theft from the person, or from a building left unoccupied by disaster or riot).
• Second degree, class D felony: property "exceeding one thousand five hundred dollars but not exceeding ten thousand dollars in value."
• Third degree, aggravated misdemeanor: property exceeding $750 but not exceeding $1,500, "or the theft of any property not exceeding seven hundred fifty dollars in value by one who has before been twice convicted of theft."
• Fourth and fifth degree: a serious misdemeanor over $300 up to $750, and a simple misdemeanor at $300 or less.

Value "is its highest value by any reasonable standard at the time that it is stolen," which "includes but is not limited to market value within the community, actual value, or replacement value" (714.3(1)). For every theft tier, see Iowa theft laws.

Adding thefts together

Iowa Code 714.3(2): "If money or property is stolen from the same person or location by two or more acts, or from different persons by two or more acts which occur in approximately the same location or time period, or from different locations by two or more acts within a thirty-day period, so that the thefts are attributable to a single scheme, plan, or conspiracy, these acts may be considered a single theft and the value may be the total value of all the property stolen."

Older and dependent victims

Theft against an older individual (714.2A)

If a person commits theft against an individual who was 60 or older at the time "and knew or should have known the conduct was directed at an older individual," each degree moves up one class: first degree becomes a class B felony, second degree a class C felony, third degree a class D felony, fourth degree an aggravated misdemeanor and fifth degree a serious misdemeanor. That puts the felony line for these victims above $750.

Financial exploitation of an older individual (726.25)

Iowa also has a stand-alone offense. Under 726.25(2): "A person commits financial exploitation of an older individual when the person stands in a position of trust or confidence with the older individual and knowingly and by undue influence, deception, coercion, fraud, breach of fiduciary duty, or extortion, obtains control over or otherwise uses the benefits, property, resources, belongings, or assets of the older individual, to the detriment of the older individual."

An "older individual" is 60 or older. A person "stands in a position of trust or confidence" if he or she is a relative by blood or marriage, a joint tenant or tenant in common, someone with a legal or fiduciary relationship with the older individual (not counting the older person's relationship with a bank, savings and loan or credit union), a financial planning or investment professional advising the older individual, a beneficiary under a governing instrument, a caregiver, or a person who "has otherwise formed a relationship of trust or reliance with the older individual such that the person should reasonably expect that the older individual would likely rely upon the person to act in good faith for the older individual's interest" (726.25(1)(d)).

A first offense is graded by value (726.25(3)):

• $100 or less: serious misdemeanor;
• over $100 up to $1,000: aggravated misdemeanor;
• over $1,000 up to $10,000: class D felony;
• over $10,000 up to $50,000: class C felony;
• class B felony "if the value ... exceeds fifty thousand dollars, or if the older individual is seventy years of age to eighty years of age and the value ... is fifteen thousand dollars or more, or if the older individual is eighty years of age or older and the value ... is five thousand dollars or more."

"On a second or subsequent offense," the offense is a class C felony when the value does not exceed $50,000, unless the class B rule applies (726.25(4)). A prior conviction or deferred judgment more than twelve years before the charged violation does not count, while judgments under 708.2D and 714.2A and substantially corresponding out-of-state convictions do (726.25(12)).

The section also states what it does not reach and one point that is not a defense:

• "Nothing in this section shall be construed to impose criminal liability on a person who has made a good-faith effort to assist an older individual regarding or in the management of the older individual's benefits, property, resources, belongings, or assets, but who has been, in whole or in part, unable to provide such assistance," and that management "includes estate planning when performed by an attorney licensed to practice law in this state" (726.25(7)).
• It does not impose liability "based solely on the sale of a product or service, including legal services, or on the good-faith solicitation of a bona fide charitable donation to a nonprofit organization" with federal tax-exempt status (726.25(8)), or for good-faith efforts "undertaken for the preservation of the assets of the older individual or the older individual's spouse or for the safety" of either (726.25(9)).
• "It shall not be a defense to financial exploitation of an older individual that the alleged perpetrator did not know the age of the older individual or reasonably believed that the alleged victim was not an older individual" (726.25(10)).
• The state may move to advance the trial on the docket, and the judge may grant it after considering the victim's age and health (726.25(11)).

Caretakers and dependent adults (726.26)

"A caretaker who commits dependent adult abuse by exploitation of a dependent adult is guilty of a class 'D' felony if the value of the property, assets, or resources exceeds one hundred dollars," and of a simple misdemeanor at $100 or less (726.26(7), (10)). Exploitation of a dependent adult means "a fraudulent or otherwise illegal, unauthorized, or improper attempt, act, or process by a caretaker or fiduciary to use the physical or financial resources of a dependent adult" for the purposes listed in Iowa Code 235B.2.

For warning signs and reporting, see our guide to elder financial exploitation.

Public officers and public money

Chapters 714, 715A and 721 contain no separate public-funds embezzlement offense. Public money is reached through theft by misappropriation and these offenses:

• Felonious misconduct in office (721.1). A public officer or employee who knowingly "Makes or gives any false entry, false return, false certificate, or false receipt, where such entries, returns, certificates, or receipts are authorized by law," falsifies a public record, issues a document falsely purporting to be public, or falsifies a writing knowing it will become a public record of a government body: a class D felony.
• Nonfelonious misconduct in office (721.2). A public officer or employee, or a person acting under color of office, who knowingly makes a contract for spending beyond what the law authorizes; "Fails to report to the proper officer the receipt or expenditure of public moneys, together with the proper vouchers therefor, when such is required of the person by law"; takes unauthorized compensation for official duties; exceeds the authority of the office to require someone to act or refrain; or "Uses or permits any other person to use the property owned by the state or any subdivision or agency of the state for any private purpose and for personal gain, to the detriment of the state": a serious misdemeanor.
• Interest in public contracts (721.11). An officer or employee of the state or a subdivision "directly or indirectly interested in any contract to furnish anything of value" to the government where the interest is prohibited by statute: a serious misdemeanor, except for contracts awarded by open, public and competitive bidding.
• Fraudulent practice by false records (714.8(3)-(4)). Making "any entry in or alteration of any public records, or any records of any corporation, partnership, or other business enterprise or nonprofit enterprise, knowing the same to be false," or knowingly executing a false certification, affidavit or certificate required by law or supporting a claim for payment. Fraudulent practice is graded by value: a class C felony above $10,000 (714.9); a class D felony above $1,500 up to $10,000, or at $1,500 or less "by one who has been convicted of a fraudulent practice twice before" (714.10); and misdemeanors below that (714.11 to 714.13). Related acts attributable to a single scheme may be aggregated (714.14(2)).

For limitation purposes, the time to charge "shall not include the time during which the defendant is a public officer or employee and the offense arises from misconduct relating to the duties and trust of that office or employment" (802.6(2)). Separately, any appointive or elective officer (other than one removable only by impeachment) may be removed from office by the district court "Upon conviction of a felony" or "For willful misconduct or maladministration in office" (66.1A); the attorney general may file the removal petition in all cases, and county attorneys or groups of voters may file it for certain offices (66.3).

Banks and credit unions

• State bank insiders (524.1605). A director, officer or employee of a state bank who knowingly makes false statements or entries in the bank's books, exhibits false papers to examiners, makes false reports, "or shall knowingly divert the funds of the state bank to other purposes than those authorized by law, or who commits any other act with intent to defraud the state bank or any other person shall be guilty of a class 'C' felony, and shall be forever disqualified from acting as a director, officer, or employee of any state bank." Subsection 2 makes it a class C felony, with the same bar, for an officer or employee to certify a check without sufficient funds, issue a certificate of deposit without a matching deposit, or take a benefit from a bank transaction with intent to defraud.
• State credit unions (533.509). A director, officer, agent or employee of a state credit union or credit union service organization, or any other person, who knowingly makes or consents to a false statement, entry or report, "or knowingly diverts the funds of the state credit union, is guilty of a class 'C' felony and is forever after barred from holding any office or position in a state credit union or credit union service organization."

Forgery in Iowa

What counts as forgery (715A.2(1))

"A person is guilty of forgery if, with intent to defraud or injure anyone, or with knowledge that the person is facilitating a fraud or injury to be perpetrated by anyone, the person does any of the following:"

• "a. Alters a writing of another without the other's permission."
• "b. Makes, completes, executes, authenticates, issues, or transfers a writing so that it purports to be the act of another who did not authorize that act, or so that it purports to have been executed at a time or place or in a numbered sequence other than was in fact the case, or so that it purports to be a copy of an original when no such original existed."
• "c. Utters a writing which the person knows to be forged" in either of those ways.
• "d. Possesses a writing which the person knows to be forged" in either of those ways.

Uttering and possessing are part of the forgery offense, not separate crimes. A "writing" "includes printing or any other method of recording information, and includes money, coins, tokens, stamps, seals, credit cards, badges, trademarks, and other symbols of value, right, privilege, or identification" (715A.1(6)).

Felony or aggravated misdemeanor (715A.2(2))

Forgery is a class D felony if the writing is or purports to be:

1. part of an issue of money, securities, postage or revenue stamps, or other government instruments;
2. part of an issue of stock, bonds, credit-sale contracts or other instruments representing interests in or claims against property or an enterprise;
3. "A check, draft, or other writing which ostensibly evidences an obligation of the person who has purportedly executed it or authorized its execution";
4. a document prescribed for entry into, or as evidence of authorized stay or employment in, the United States;
5. an Iowa driver's license, nonoperator's identification card, birth certificate, or occupational license or supporting certificate.

Forgery is an aggravated misdemeanor "if the writing is or purports to be a will, deed, contract, release, commercial instrument, or any other writing or other document evidencing, creating, transferring, altering, terminating, or otherwise affecting legal relations."

Related chapter 715A offenses

• Simulating objects of antiquity or rarity (715A.3). Making, altering or uttering an object so that it "appears to have value because of antiquity, rarity, source, or authorship which it does not possess," with intent to defraud: a serious misdemeanor.
• Destroying recordable writings (715A.4). Destroying, removing or concealing "a will, deed, mortgage, security instrument, or other writing for which the law provides public recording," with intent to deceive or injure: an aggravated misdemeanor.
• Tampering with records (715A.5). Knowing there is no privilege to do so, falsifying, destroying, removing or concealing "a writing or record, with the intent to deceive or injure anyone or to conceal any wrongdoing": an aggravated misdemeanor.
• Credit card fraud (715A.6). Using a credit card to obtain property or services knowing it is stolen or forged, revoked or canceled, or otherwise unauthorized: a class C felony above $10,000, a class D felony above $1,500 up to $10,000, and an aggravated misdemeanor at $1,500 or less. The section provides that "It is an affirmative defense to prosecution under paragraph 'a', subparagraph (3), if the person proves by a preponderance of the evidence that the person had the intent and ability to meet all obligations to the issuer arising out of the use of the credit card."
• False academic degrees (715A.6A). Knowingly and willingly falsely making or altering an academic degree (a diploma, certificate, license, transcript or similar document), using or presenting one as genuine, trading in false degrees, or making certain false written statements about academic credentials in an application for employment, admission, an award or a degree: a serious misdemeanor.
• Credit card in a minor's name (715A.6B). Applying for a credit card in the name of a minor without the consent of the minor's parent, guardian or legal custodian is a class D felony; using such a card to secure or seek property or services is a class C felony when the value is greater than $10,000 and a class D felony otherwise.
• Skimming devices and encoding machines (715A.10). Using a scanning device to read or store payment-card information, or an encoding machine to place it on a different card, without the permission of the authorized user, the issuer or a merchant: a class D felony. Possessing a scanning device with intent to use it that way, or knowing another intends to: an aggravated misdemeanor. A second or subsequent violation: a class C felony.
• Multiple counts (715A.7). One charging document may allege several chapter 715A violations in separate counts, and "The court may consider separate verdicts of guilty returned at the same time as one offense for the purpose of sentencing."

Gift cards (714.2D)

Added in 2025 (2025 Acts, ch. 17), 714.2D(2) provides that a person who, with intent to defraud, "alters or tampers with a gift card commits forgery and is guilty of an aggravated misdemeanor," and that acquiring or retaining a gift card or its redemption information without consent is theft, an aggravated misdemeanor. A scheme to obtain a gift card or its redemption information by false pretenses is a fraudulent practice, and using a gift card obtained in violation of the section is theft; both run from a serious misdemeanor at $500 or less to a class C felony above $5,000.

A check that is genuine but will not be paid is a different offense: under 714.1(6), a person who "Makes, utters, draws, delivers, or gives any check" and obtains property, the use of property or a service in exchange, knowing it "will not be paid when presented," commits theft, graded by value under 714.2.

If a forged or altered check was used against you, our guide to mail theft and check washing covers the victim side.

Iowa embezzlement and forgery offenses at a glance

The terms are maximums from Iowa Code 902.9(1) ("A class 'B' felon shall be confined for no more than twenty-five years"; class C "no more than ten years"; class D "no more than five years," each with the fine shown) and 903.1 for misdemeanors. See Iowa felony classes and misdemeanor penalties for every class.

Sentencing, habitual offenders and probation

Habitual offenders. "A habitual offender is any person convicted of a class 'C' or a class 'D' felony, who has twice before been convicted of any felony in a court of this or any other state, or of the United States" (902.8). Since July 1, 2026 (2026 Acts ch. 1177, HF 2542), "A person convicted of a third qualifying felony shall be sentenced as a habitual offender and shall serve a minimum of seven years of the sentence imposed by law," earned time "shall not reduce the minimum sentence of confinement of seven years," and the maximum confinement rises from fifteen to twenty years (the minimum was previously three years). The act also excludes habitual-offender sentences from deferred and suspended sentences. The act text has no separate clause addressing offenses committed before July 1, 2026.

Restitution. In every criminal case ending in a judgment of conviction, "the sentencing court shall order that pecuniary damages be paid by each offender to the victims of the offender's criminal activities," and pecuniary damages are ordered "without regard to an offender's reasonable ability to make payments" (910.2(1)(a)). Pecuniary damages are the damages, to the extent not paid by insurance, that the victim could recover in a civil action on the same facts, except punitive damages and damages for pain, suffering, mental anguish and loss of consortium (910.1(6)).

Deferred judgment and probation. "With the consent of the defendant, the court may defer judgment and may place the defendant on probation upon conditions as it may require," but not if, among other listed conditions, "The defendant previously has been convicted of a felony" (907.3(1)(a)). Section 907.3 also provides for deferred and suspended sentences.

Time limits for prosecution

• Three years. "In all cases, except those enumerated in section 802.1, 802.2, 802.2A, 802.2B, 802.2C, 802.2D, 802.2E, 802.2F, 802.2G, 802.2H, or 802.10, an indictment or information for a felony or aggravated or serious misdemeanor shall be found within three years after its commission" (802.3, as amended by SF 2218 in 2026 to add 802.2H).
• One year for a simple misdemeanor (802.4).
• Discovery extension (802.5(1)). "If the periods prescribed in sections 802.3 and 802.4 have expired, prosecution may nevertheless be commenced for any offense a material element of which is either fraud or a breach of fiduciary obligation within one year 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 not a party to the offense, but in no case shall this provision extend the period of limitation otherwise applicable by more than five years." It applies "as long as the appropriate law enforcement agency has not delayed the investigation in bad faith" (802.5(2)).
• Tolling (802.6). No period during which the accused "was not publicly resident within the state is a part of the limitation," and the period excludes time a public officer or employee holds the position when the offense arises from misconduct relating to that office.
• Continuing crimes (802.7). "When an offense is based on a series of acts committed at different times, the period of limitation prescribed by this chapter shall commence upon the commission of the last of such acts."

Civil deadlines are different; see the Iowa statute of limitations guide.

Recent changes

• July 1, 2026: habitual offenders (2026 Acts ch. 1177, HF 2542). Approved June 2, 2026; raised the habitual-offender minimum from three to seven years and the maximum from fifteen to twenty years, as described above.
• July 1, 2026: SF 2218. Section 31 added the new election-misconduct section 802.2H to the exception list in 802.3, leaving the three-year period unchanged; section 6 added fraudulent-practice subsections 23 and 24 to 714.8 on giving an employer a false social security number and an employer providing a fraudulent number.
• July 1, 2026: HF 2337. Added 714.8 subsections 6A and 6B and amended 714.11 and 714.13: falsely representing oneself as possessing an academic degree or academic credentials to obtain employment or other personal gain is fraudulent practice in the fifth degree (a simple misdemeanor), and falsely representing oneself as possessing a professional or occupational license regulated under chapter 272C is fraudulent practice in the third degree (an aggravated misdemeanor).
• 2025: gift card offenses (2025 Acts, ch. 17). Added 714.2D, described above.

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. If a fraud scheme targeted you, our Iowa scam and fraud laws guide explains where to report it, and Iowa identity theft laws covers 715A.8.

Related pages

• Embezzlement and forgery laws by state
• Iowa theft laws
• Iowa felony classes and misdemeanor penalties
• Iowa scam and fraud laws
• Elder financial exploitation

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

Last updated: 2026-10-18.

Frequently Asked Questions

Is embezzlement a felony in Iowa?

Embezzlement is charged as theft by misappropriation, which is generally a felony when the value exceeds $1,500: theft in the second degree (class D) above $1,500 and first degree (class C) above $10,000 (Iowa Code 714.2). Against a victim 60 or older the grade rises one class, so it is a class D felony above $750 (714.2A).

What is the penalty for embezzlement in Iowa?

A class D felony carries up to 5 years and a fine of $1,025 to $10,245, and a class C felony up to 10 years and a fine of $1,370 to $13,660 (Iowa Code 902.9). An aggravated misdemeanor carries up to 2 years. A habitual offender faces a seven-year minimum and a 20-year maximum (902.8, 902.9 as amended in 2026). On conviction, the court must also order the offender to pay the victim’s pecuniary damages (910.2).

What is the difference between embezzlement and theft in Iowa?

Iowa treats both as theft. Taking property with intent to deprive is theft under 714.1(1); misappropriating property held in trust or in one’s possession or control, whether that possession is lawful or unlawful, is theft under 714.1(2).

What is financial exploitation of an older individual in Iowa?

Under Iowa Code 726.25, it is committed by a person who stands in a position of trust or confidence with someone 60 or older and knowingly, by undue influence, deception, coercion, fraud, breach of fiduciary duty or extortion, obtains control over or uses the older person’s assets to that person’s detriment. It ranges from a serious misdemeanor to a class B felony by value and the victim’s age.

Is forgery a felony in Iowa?

Forgery is a class D felony when the writing is or purports to be government money, securities or stamps, stock or bonds, a check or draft, a document showing authorized entry, stay or employment in the United States, or an Iowa driver’s license, ID, birth certificate or occupational license. It is an aggravated misdemeanor for a will, deed, contract, release, commercial instrument or other document affecting legal relations (715A.2(2)).

Is signing someone else’s name on a check a crime in Iowa?

Iowa Code 715A.2(1)(b) makes it forgery to make, complete, execute, authenticate, issue or transfer a writing so that it purports to be the act of another who did not authorize that act, when done with intent to defraud or injure anyone. A forged check is a class D felony under 715A.2(2)(a)(3).

Is there a statute of limitations for embezzlement in Iowa?

Yes. A felony or an aggravated or serious misdemeanor must be charged within three years after it is committed (Iowa Code 802.3). For an offense with fraud or breach of fiduciary obligation as a material element, prosecution may begin within one year after discovery by an aggrieved party, but the period cannot be extended by more than five years (802.5). For an offense based on a series of acts, the period starts with the last act (802.7).