Kentucky Embezzlement and Forgery Laws: KRS 514.070 Penalties

Kentucky's Penal Code has no offense named embezzlement. When an agent, employee or anyone else keeps money or property received for someone else, the offense is theft by failure to make required disposition of property received under KRS 514.070, generally a Class D felony at $1,000 or more and a Class C felony at $10,000 or more.

A public servant who does the same with public money commits abuse of public trust under KRS 522.050, a felony at any value that also disqualifies the offender from public office. Forgery (KRS 516.020 to 516.040) and possessing or uttering a forged instrument (KRS 516.050 to 516.070) are graded by the kind of instrument, from a Class A misdemeanor to a Class C felony. 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 Kentucky Revised Statutes on theft by failure to make required disposition of property received (KRS 514.070) and related theft definitions and offenses (514.010, 514.030, 514.040, 514.140), abuse of public trust and official misconduct (522.020, 522.030, 522.050), the offenses against financial institutions and entrusted property in KRS 517.050, 517.100 and 517.110, adult financial exploitation (209.020, 209.115, 209.990), the forgery chapter (516.010 to 516.130), the fuel-tax offense in 138.990(7), public pension forfeiture (61.535, 78.540, 161.470), the office bars in Sections 150 and 173 of the Kentucky Constitution, sentencing (532.032, 532.040, 532.060, 532.080, 532.090, 534.030, 534.040) and time limits (500.050). It does not cover the full theft value table (see Kentucky theft laws), identity theft, scams and victim reporting, federal offenses, civil lawsuits or local ordinances.

What is embezzlement in Kentucky?

Kentucky reaches embezzlement through KRS 514.070. A person is guilty of theft by failure to make required disposition of property received when he or she:

"(a) 1. Obtains property upon agreement or subject to a known legal obligation to make specified payment, with no option to purchase, or other disposition whether from such property or its proceeds or from his or her own property to be reserved in equivalent amount; and 2. Intentionally deals with the property as his or her own and fails to make the required payment or disposition"

Both parts must be present: the property comes in under an agreement or a known legal obligation, and the person then intentionally treats it as his or her own and does not pay it over or dispose of it as required.

Two more parts of the section matter in practice:

• The money does not have to be traceable. Subsection (1) applies "notwithstanding that it may be impossible to identify particular property as belonging to the victim at the time of the actor's failure to make the required payment or disposition" (KRS 514.070(3)).
• Property is defined broadly. In the theft chapter, "property" means "anything of value, including real estate, tangible and intangible personal property, contract rights, documents, choses-in-action and other interests in or claims to wealth, admission or transportation tickets, captured or domestic animals, food and drink" (KRS 514.010(6)).

Inside the Penal Code, the word appears once as a verb: a person who, with intent to deprive the owner, "Embezzles" mail matter of another commits theft of mail matter, a Class D felony at any value (KRS 514.140).

Outside the Penal Code, one statute does use the name. KRS 138.990(7) provides that "Any person who fails to remit gasoline or special fuel tax money to the state as provided in KRS 138.280 is guilty of embezzlement of state funds," a Class A misdemeanor for the first offense and a Class D felony for the second.

How is it different from ordinary theft?

Ordinary theft is a separate offense. Under KRS 514.030(1)(a), a person commits theft by unlawful taking or disposition when he or she unlawfully "Takes or exercises control over movable property of another with intent to deprive him or her thereof." Section 514.070 instead starts with property the person obtained upon agreement or under a known legal obligation to pay it over.

The two offenses also aggregate differently. Separate thefts by unlawful taking within one year may be combined (KRS 514.030(4)); for theft by failure to make required disposition the window is 90 days (KRS 514.070(7)).

Presumption for government and bank employees

KRS 514.070(4) states that "An officer or employee of the government or of a financial institution is presumed: (a) To know any legal obligation relevant to his or her criminal liability under this section; and (b) To have dealt with the property as his or her own when: 1. He or she fails to account or pay upon lawful demand; or 2. An audit reveals a shortage or falsification of accounts."

"Financial institution" in the theft chapter means "a bank, insurance company, credit union, building and loan association, savings and loan association, investment trust or other organization held out to the public as a place of deposit of funds or medium of savings or collective investment" (KRS 514.010(2)).

Is embezzlement a felony in Kentucky?

Generally yes at $1,000 or more. KRS 514.070(5) provides that the offense "is a Class B misdemeanor unless, for a violation of subsection (1)(a) of this section":

• the value is $500 or more but less than $1,000: Class A misdemeanor;
• the value is $1,000 or more but less than $10,000: Class D felony;
• "A person has three (3) or more convictions under paragraph (a) of this subsection within the last five (5) years, in which case it is a Class D felony" (paragraph (a) is the $500-to-$1,000 tier);
• the value is $10,000 or more: Class C felony.

The section stops at Class C; it has no higher value tier. Theft by unlawful taking or disposition under KRS 514.030, which reaches anyone who "Takes or exercises control over movable property of another with intent to deprive," runs on its own value table: the same $1,000 felony line, but continuing to a Class B felony at $1,000,000 or more (KRS 514.030(2)(h), (i)); see Kentucky theft laws for every tier.

Adding offenses together

KRS 514.070(7): "If any person commits two (2) or more separate offenses of theft by failure to make a required disposition of property received within ninety (90) days, the offenses may be combined and treated as a single offense, and the value of the property in each offense may be aggregated for the purpose of determining the appropriate charge."

Abuse of public trust and other offenses by public servants

Abuse of public trust (KRS 522.050)

A public servant entrusted with public money or property "by reason of holding public office or employment," or on the other bases the section lists, is guilty of abuse of public trust when "(a) He or she obtains public money or property subject to a known legal obligation to make specified payment or other disposition" and "(b) He or she intentionally deals with the public money or property as his or her own and fails to make the required payment or disposition."

The grade turns on value, but every grade is a felony (KRS 522.050(3)):

• less than $10,000: Class D felony;
• $10,000 or more but less than $100,000: Class C felony;
• $100,000 or more: Class B felony.

Subsection (4) adds: "The judgment of conviction under this section shall recite that the offender is disqualified to hold any public office thereafter." Subsection (2) gives public servants the same presumptions as 514.070(4): the public servant is presumed to know the legal obligation, and to have dealt with the money as his or her own when "He or she fails to account upon lawful demand" or "An audit reveals a shortage or falsification of accounts."

The Kentucky Constitution adds two office rules. Section 173 provides that the receiving, "directly or indirectly," by an officer of the Commonwealth or of any county, city or town, or a member or officer of the General Assembly, of "any interest, profit or perquisites arising from the use or loan of public funds in his hands, or moneys to be raised through his agency" for public purposes is a felony, "a part of which punishment shall be disqualification to hold office." Section 150 provides that "All persons shall be excluded from office who have been, or shall hereafter be, convicted of a felony," a disability that "may be removed by pardon of the Governor."

The two offenses cannot both rest on the same facts. KRS 522.050(5) states that "Conduct serving as the basis for the conviction of a public servant under this section shall not also be used to obtain a conviction of the public servant under KRS 514.070," and KRS 514.070(6) bars a 514.070 conviction for someone "also convicted of a violation of KRS 522.050 arising out of the same incident."

Official misconduct (KRS 522.020 and 522.030)

Official misconduct by a public servant is a misdemeanor: "Official misconduct in the first degree is a Class A misdemeanor," and second-degree official misconduct is a Class B misdemeanor. The first degree adds an intent "to obtain or confer a benefit or to injure another person or to deprive another person of a benefit"; both degrees require that the public servant act knowingly.

Public pension forfeiture (KRS 61.535, 78.540, 161.470)

For members of the systems administered by the Kentucky Retirement Systems, KRS 61.535(3) provides that "an employee hired on or after August 1, 2000, who participates in one (1) of the retirement systems administered by the Kentucky Retirement Systems and who is convicted, in any state or federal court of competent jurisdiction, of a felony related to his employment shall forfeit rights and benefits earned under the retirement system, except for the return of his accumulated contributions and interest credited on those contributions." For those employees the test is any "felony related to his employment," not a fixed list of crimes. Forfeiture "shall be stayed pending any appeal of the conviction," and no benefit is forfeited if the conviction is reversed. For employees hired before August 1, 2000, membership instead ceases on "termination of employment with prejudice," which KRS 61.535(2) defines as termination resulting from conviction "of embezzlement or larceny of public funds or property or malfeasance in office," or forced restitution of funds or property criminally taken. The County Employees Retirement System has the same two rules for its members (KRS 78.540(4)), and the Teachers' Retirement System has the felony-related-to-employment rule for members whose membership began on or after August 1, 2000 (KRS 161.470(5)(e)).

Financial institutions, fiduciaries and business records

Chapter 517 has three offenses that often sit alongside a 514.070 charge:

• Misapplication of entrusted property (KRS 517.110). A person commits this offense "when he applies or disposes of property that has been entrusted to him as a fiduciary, or property of the government or of a financial institution in a manner which he knows is unauthorized and involves substantial risk of loss or detriment to the owner of the property or to a person for whose benefit the property was entrusted." It is a Class A misdemeanor with no value tiers.
• Falsifying business records (KRS 517.050). False entries, alterations or omissions in an enterprise's records made with intent to defraud: "Falsifying business records is a Class A misdemeanor."
• Receiving deposits in a failing financial institution (KRS 517.100). An officer or manager who knowingly takes deposits while knowing the institution is insolvent: "Receiving deposits in a failing financial institution is a Class D felony."

Financial exploitation of a vulnerable adult

Kentucky handles exploitation of vulnerable adults in KRS Chapter 209, not in the theft chapter, which has no victim-age reclassification. "Exploitation" means "obtaining or using another person's resources, including but not limited to funds, assets, or property, by deception, intimidation, or similar means, with the intent to deprive the person of those resources" (KRS 209.020(9)).

The protected "adult" has no age line beyond 18. It means "a person eighteen (18) years of age or older who, because of mental or physical dysfunctioning, is unable to manage his or her own resources, carry out the activity of daily living, or protect himself or herself from neglect, exploitation, or a hazardous or abusive situation without assistance from others, and who may be in need of protective services" (KRS 209.020(4)).

Penalties under KRS 209.990:

• knowingly exploiting an adult, "resulting in a total loss to the adult of more than three hundred dollars ($300) in financial or other resources, or both": Class C felony (subsection (5));
• wantonly or recklessly exploiting an adult with a loss of more than $300: Class D felony (subsection (6));
• knowing, wanton or reckless exploitation with a loss of $300 or less: Class A misdemeanor (subsection (7)).

A person convicted of a felony under Chapter 209 "shall be disqualified from being appointed or serving as a guardian, limited guardian, conservator, limited conservator, executor, administrator, fiduciary, personal representative, attorney-in-fact, or health care surrogate as to the victim of the offense or the victim's estate" (KRS 209.115(1)). For warning signs and reporting, see our guide to elder financial exploitation.

Forgery and criminal possession of a forged instrument

What counts as forgery

Forgery in Kentucky means falsely making, completing or altering a written instrument "with intent to defraud, deceive or injure another" (KRS 516.040). The chapter definitions in KRS 516.010 control:

• Falsely make. "To 'falsely make' a written instrument means to make or draw a complete written instrument in its entirety or an incomplete written instrument, which purports to be an authentic creation of its ostensible maker or drawer, but which is not either because the ostensible maker or drawer is fictitious or because, if real, he did not authorize the making or drawing thereof" (516.010(7)).
• Forged instrument. "a written instrument which has been falsely made, completed, or altered" (516.010(8)).
• Written instrument. "any instrument or article containing written or printed matter or its equivalent used for the purpose of reciting, embodying, conveying, or recording information, or constituting a symbol or evidence of value, right, privilege, or identification, which is capable of being used to the advantage or disadvantage of some person" (516.010(11)).

Three degrees, set by the instrument

• First degree, Class C felony (KRS 516.020). The instrument is or purports to be "(a) Part of an issue of money, stamps, securities or other valuable instruments issued by a government or governmental agency; or (b) Part of an issue of stock, bonds or other instruments representing interests in or claims against a corporate or other organization or its property."
• Second degree, Class D felony (KRS 516.030). The instrument is or purports to be "(a) A deed, will, codicil, contract, assignment, commercial instrument, credit card or other instrument which does or may evidence, create, transfer, terminate or otherwise affect a legal right, interest, obligation or status; or (b) A public record or an instrument filed or required or authorized by law to be filed in or with a public office or public employee; or (c) A written instrument officially issued or created by a public office, public employee or governmental agency."
• Third degree, Class A misdemeanor (KRS 516.040). Any other written instrument falsely made, completed or altered with intent to defraud, deceive or injure another.

Uttering or possessing a forged instrument

Kentucky treats passing a forged instrument as criminal possession, graded degree for degree with forgery. A person commits the offense "when, with knowledge that it is forged and with intent to defraud, deceive or injure another, he utters or possesses" a forged instrument: of a kind in 516.020 (first degree, Class C felony, KRS 516.050), of a kind in 516.030 (second degree, Class D felony, KRS 516.060), or any forged instrument (third degree, Class A misdemeanor, KRS 516.070).

KRS 516.080 states: "A person may not be convicted of both forgery and criminal possession of a forged instrument with respect to the same instrument."

Forgery devices, criminal simulation and slugs

• Possession of a forgery device (KRS 516.090) is a Class D felony, and a forgery device "made, possessed or used in violation of this chapter is forfeited to the state" (KRS 516.100).
• Criminal simulation in the first degree (KRS 516.108), which covers products intended to defraud an alcohol or controlled-substance test, is a Class D felony; criminal simulation in the second degree (KRS 516.110), such as making an object appear to have an antiquity, rarity, source or authorship it lacks with intent to defraud, is a Class A misdemeanor.
• Unlawfully using slugs is a Class D felony in the first degree (KRS 516.120, value over $100) and a Class B misdemeanor in the second degree (KRS 516.130).

Readers dealing with a forged or altered check as victims can start with our guide to mail theft and check washing.

Bad checks

Bad checks sit in the theft chapter, not the forgery chapter. A person deceives under KRS 514.040(1)(e) when the person intentionally "Issues or passes a check or similar sight order for the payment of money, knowing that it will not be honored by the drawee," making it a form of theft by deception graded by value.

Kentucky embezzlement and forgery offenses at a glance

Sentencing ranges, probation and prior felonies

A felony prison sentence in Kentucky is an indeterminate sentence whose maximum is fixed within the "authorized maximum terms" in KRS 532.060(2): "(b) For a Class B felony, not less than ten (10) years nor more than twenty (20) years; (c) For a Class C felony, not less than five (5) years nor more than ten (10) years; and (d) For a Class D felony, not less than one (1) year nor more than five (5) years." Misdemeanor terms are maximums: "For a Class A misdemeanor, the term shall not exceed twelve (12) months; and (2) For a Class B misdemeanor, the term shall not exceed ninety (90) days" (KRS 532.090).

Fines are added on top. A person convicted of a felony "shall, in addition to any other punishment imposed upon him, be sentenced to pay a fine in an amount not less than one thousand dollars ($1,000) and not greater than ten thousand dollars ($10,000) or double his gain from commission of the offense, whichever is the greater" (KRS 534.030(1)). Misdemeanor fines may not exceed $500 for a Class A misdemeanor or $250 for a Class B misdemeanor (KRS 534.040(2)). Neither fine may be imposed on a person the court finds indigent (KRS 534.030(4); 534.040(4)). Restitution to a named victim "shall be ordered" in addition to the rest of the penalty and is "not subject to suspension or nonimposition" (KRS 532.032(1)).

Prison is not the only option. Under KRS 532.040, for offenses other than a capital offense or a designated violent offender, the court, "where authorized by KRS Chapter 533 and where not prohibited by other provisions of applicable law, may sentence such person to a period of probation or to a period of conditional discharge."

Prior felonies can raise the range. A person over 21 convicted of a felony after one previous felony conviction is a persistent felony offender in the second degree and is sentenced within the range "for the next highest degree than the offense for which convicted"; the previous conviction must have carried a sentence of one year or more and meet the other conditions in KRS 532.080(2) (KRS 532.080(2), (5)). Under the same statute, if the current offense "is a Class C or Class D felony, a persistent felony offender in the first degree shall be sentenced to an indeterminate term of imprisonment, the maximum of which shall not be less than ten (10) years nor more than twenty (20) years" (KRS 532.080(6)(b)). A persistent felony offender is not eligible for probation, shock probation or conditional discharge unless all of the current offenses are Class D felonies that do not involve a violent act against a person (and, for the first degree, are not sex crimes) (KRS 532.080(5), (7)). For the full class table, see Kentucky felony classes and misdemeanor penalties.

Time limits for prosecution

KRS 500.050 sets the rule: "(1) Except as otherwise expressly provided, the prosecution of a felony is not subject to a period of limitation and may be commenced at any time. (2) Except as otherwise expressly provided, the prosecution of an offense other than a felony must be commenced within one (1) year after it is committed." Subsection (4) adds that an offense is committed "either when every element occurs, or if a legislative purpose to prohibit a continuing course of conduct plainly appears, at the time when the course of conduct or the defendant's complicity therein is terminated."

So felony theft by failure to make required disposition, abuse of public trust and first- or second-degree forgery have no limitation period, while misdemeanor versions (under $1,000 without the repeat rule, third-degree forgery, misapplication of entrusted property) carry the one-year period. Civil filing deadlines are different; see the Kentucky statute of limitations guide.

Recent changes

• 2025: rental-property branch. 2025 Ky. Acts ch. 18 (HB 201), effective June 27, 2025, restructured KRS 514.070(1) and added branch (1)(b) for a person who "Rents or leases personal property having a fair market value of one hundred dollars ($100) or more under a written agreement with no option to purchase," fails to return it within five days after a certified-mail demand, and intentionally possesses or conceals it. The value tiers in 514.070(5) still apply only to subsection (1)(a), so the rental branch is a Class B misdemeanor.
• 2026: listing property without authority. 2026 Ky. Acts ch. 106 (HB 264), effective July 15, 2026, amended KRS 514.040 (theft by deception, which also holds the bad-check provision) to add that "A person is presumed to create or reinforce a false impression when the person lists or advertises residential or commercial real property or vacant land for sale, lease, or rent without legal title or authority." It does not change 514.070, 522.050 or the forgery chapter.

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 you were the target of a fraud scheme, our Kentucky scam and fraud laws guide explains where to report it.

Related pages

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

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

Last updated: 2026-10-18.

Frequently Asked Questions

Is embezzlement a felony in Kentucky?

Generally yes when the value is $1,000 or more. Theft by failure to make required disposition of property received is a Class D felony from $1,000 to under $10,000 and a Class C felony at $10,000 or more; below $1,000 it is a misdemeanor unless the person has three or more convictions under the $500-to-$1,000 tier within five years (KRS 514.070(5)).

What is the penalty for embezzlement in Kentucky?

A Class D felony carries a maximum term set between 1 and 5 years and a Class C felony a maximum term set between 5 and 10 years (KRS 532.060(2)), plus a felony fine of $1,000 to $10,000 or double the gain, whichever is greater (KRS 534.030(1)); no fine may be imposed on a person the court finds indigent (KRS 534.030(4)). A Class A misdemeanor carries up to 12 months and up to $500.

Is it a crime for a public employee to take public money in Kentucky?

Yes. Abuse of public trust under KRS 522.050 is a felony at any value: Class D under $10,000, Class C from $10,000 to under $100,000, and Class B at $100,000 or more. The judgment must recite that the offender is disqualified from holding public office, and Section 150 of the Kentucky Constitution excludes anyone convicted of a felony from office unless pardoned.

How is embezzlement different from theft in Kentucky?

Theft by unlawful taking (KRS 514.030) covers taking or exercising control over movable property of another with intent to deprive. KRS 514.070 covers property a person obtained upon agreement or subject to a known legal obligation to pay or dispose of it, and then intentionally dealt with as his or her own.

Is forgery a felony in Kentucky?

It depends on the instrument. First-degree forgery (government money, stamps, securities, corporate stock or bonds) is a Class C felony, second-degree forgery (deeds, wills, contracts, commercial instruments, credit cards, public records) is a Class D felony, and third-degree forgery is a Class A misdemeanor (KRS 516.020 to 516.040).

Is signing someone else’s name a crime in Kentucky?

Under KRS 516.010(7), an instrument is falsely made when it purports to be the authentic creation of its ostensible maker but is not, because the maker is fictitious or, if real, did not authorize it. Forgery also requires intent to defraud, deceive or injure another (KRS 516.040).

Is there a statute of limitations for embezzlement in Kentucky?

Not for felonies: except as otherwise expressly provided, KRS 500.050(1) says felony prosecution is not subject to a period of limitation. A misdemeanor, such as theft by failure to make required disposition under $1,000, must be prosecuted within one year after it is committed (KRS 500.050(2)).