Is Embezzlement a Felony in North Carolina? Laws and Penalties

North Carolina has a crime called embezzlement. Under G.S. 14-90, a public officer, fiduciary, corporate officer or agent, clerk, bailee or employee who embezzles or knowingly and willfully misapplies or converts money or property "which shall have come into his possession or under his care" is guilty of a felony: Class H below $100,000 and Class C at $100,000 or more. Separate sections cover public funds and taxes, and forgery and uttering are felonies under G.S. 14-119, 14-120 and 14-122. For other states, see our guide to embezzlement and forgery laws by state.

Information last verified on 2026-10-17. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers North Carolina's embezzlement statutes in Article 18 of Chapter 14 (G.S. 14-90 to 14-99), the public-officer and public-funds provisions in Chapters 14, 159, 128 and 135, exploitation of older and disabled adults (14-112.2), the bank embezzlement and false-entry offenses (53C-8-11, 53-355, 14-233), the forgery sections in Article 21 (14-119 to 14-125), card forgery, identity theft, false identification, worthless checks, the civil recovery statute (1-538.2) and the structured sentencing ranges. It does not cover the full larceny table (see North Carolina larceny laws), limitation periods, scams and victim reporting, federal offenses, or local ordinances.

What is embezzlement in North Carolina?

Embezzlement is its own offense in North Carolina, separate from larceny. G.S. 14-90(a) says the section applies to any person:

"(1) Exercising a public trust. (2) Holding a public office. (3) Who is a guardian, administrator, executor, trustee, or any receiver, or any other fiduciary, including, but not limited to, a settlement agent, as defined in G.S. 45A-3. (4) Who is an officer or agent of a corporation, or any agent, consignee, clerk, bailee or servant, except persons under the age of 16 years, of any person."

Under 14-90(b), such a person commits a felony by doing either of two things:

• Misapplying the property. To "Embezzle or fraudulently or knowingly and willfully misapply or convert to his own use."
• Taking or hiding it with that intent. To "Take, make away with or secrete, with intent to embezzle or fraudulently or knowingly and willfully misapply or convert to his own use."

The property covered is broad: "any money, goods or other chattels, bank note, check or order for the payment of money issued by or drawn on any bank or other corporation," government bonds and notes, "or any other valuable security whatsoever" that belongs to another person or organization, or that is closing funds as defined in G.S. 45A-3, and that "shall have come into his possession or under his care" (14-90(b)).

Embezzlement versus larceny: lawful possession

What separates embezzlement from larceny is how the person came to hold the property. In State v. Weaver, 359 N.C. 246 (2005), the Supreme Court of North Carolina affirmed the reversal of a defendant's convictions for aiding and abetting embezzlement and conspiracy to embezzle, concluding "that the employee did not lawfully possess or control the misappropriated funds." The court explained: "it is immaterial whether Kimberly Weaver had actual or constructive possession of the misappropriated funds. Because her possession, if any, was not lawful, the crime of embezzlement has not occurred."

Larceny is a separate offense under G.S. 14-72. Larceny of goods worth more than $1,000 is a Class H felony, and, except as provided in subsections (b) and (c), larceny of property worth $1,000 or less is a Class 1 misdemeanor (14-72(a)). Our North Carolina larceny laws page covers the larceny grades in full.

A separate section, G.S. 14-74 (larceny by servants and other employees), makes it a felony for a servant or employee to go away with property "delivered safely to be kept to the use of his master" with intent to steal it, or, "without the assent of his master," to "embezzle such money, goods or other chattels ... or otherwise convert the same to his own use, with like purpose to steal them, or to defraud his master thereof." It does not extend to "apprentices or servants within the age of 16 years." It is a Class C felony at $100,000 or more and a Class H felony below (14-74).

The false pretenses statute bridges the two. Under 14-100(a), if a person charged with obtaining property by false pretenses is shown to have obtained it "in such manner as to amount to larceny or embezzlement, the jury shall have submitted to them such other felony proved; and no person tried for such felony shall be liable to be afterwards prosecuted for larceny or embezzlement upon the same facts." Obtaining property by false pretenses is a Class C felony at $100,000 or more and a Class H felony below (14-100(a)).

Is embezzlement a felony in North Carolina?

Yes, at any amount. Section 14-90(c) provides:

"If the value of the property described in subsection (b) of this section is one hundred thousand dollars ($100,000) or more, the person is guilty of a Class C felony. If the value of the property is less than one hundred thousand dollars ($100,000), the person is guilty of a Class H felony."

Unlike larceny, embezzlement has no misdemeanor tier and no low-dollar threshold. Section 14-90 also has no clause for adding together separate takings; the grade turns on "the value of the property described in subsection (b)."

Other embezzlement offenses in Article 18

Article 18 also has offenses for particular relationships, all graded on the same $100,000 line:

• Charity and religious treasurers (14-93). A treasurer or other financial officer of a benevolent or religious institution, society or congregation who lends its money without consent, or "shall fail to account for such moneys when called on," is guilty of a felony; Class C at $100,000 or more, Class H below.
• Partners (14-97). A partner who, without the copartners' knowledge and consent, takes partnership funds and appropriates them "with the fraudulent intent of depriving his copartners of the use thereof" is guilty of a felony; Class C at $100,000 or more, Class H below. Section 14-98 applies the same grades to a surviving partner.
• Railroad officers (14-94). Class C at $100,000 or more, Class H below.

Section 14-95 was repealed in 1994.

Public officials and public money

North Carolina treats embezzlement of public funds more severely below $100,000 than ordinary embezzlement: Class F instead of Class H.

• State property (14-91). An officer, agent or employee of the State, or anyone holding State bonds, securities or other property in trust, who "shall embezzle or knowingly and willfully misapply or convert the same to his own use, or otherwise willfully or corruptly abuse such trust," is guilty of a felony, along with anyone who knowingly and willfully aids or abets. Class C at $100,000 or more; Class F below.
• Local government, schools and institutions (14-92). An officer, agent or employee of, or a person holding money or property in trust for, "a county, a city or other unit or agency of local government, a local board of education, and a penal, charitable, religious, or educational institution," who embezzles or "otherwise willfully and corruptly" uses or misapplies it for another purpose is guilty of a felony. Class C at $100,000 or more; Class F below. The same section makes it a felony, on the same Class F / Class C line, for a clerk of superior court, sheriff, treasurer, register of deeds or other local public officer to embezzle, misapply or "fail to pay over and deliver to the proper persons entitled to receive the same" money or property received by virtue or color of office in trust for any person or corporation, and it applies to officers who go out of office and fail to deliver those funds to their successors.
• Taxes (14-99). "If any officer appropriates to his own use the State, county, school, city or town taxes, he shall be guilty of embezzlement." Class C at $100,000 or more; Class F below.
• Failure to pay over (14-231). A State or county officer who fails or refuses "to pay over or deliver to the proper person all moneys which come into his hands by virtue or color of his office," or to file required reports or turn over books and property to a successor, is guilty of a Class 1 misdemeanor.
• Willful neglect of duty and misbehavior in office (14-230(a)). A listed officer, such as a clerk of court, sheriff, magistrate, school board member, county commissioner, treasurer or an official of a State institution, county, city or town, who "shall willfully omit, neglect or refuse to discharge any of the duties of his office, for default whereof it is not elsewhere provided that he shall be indicted," is guilty of a Class 1 misdemeanor. If the officer acted "willfully and corruptly," the officer is guilty of misbehavior in office "and shall be punished by removal therefrom under the sentence of the court as a part of the punishment for the offense."
• Local finance officers (159-181(a)). Under the Local Government Budget and Fiscal Control Act, a finance officer, governing-board member or other officer or employee who approves a claim or bill known to be fraudulent, erroneous or invalid commits a Class 3 misdemeanor and forfeits office.
• Elected local officers seeking personal gain (14-234.2). An elected local officer who solicits or receives personal financial gain from the officer's political subdivision through intimidation, undue influence or misuse of its employees commits a Class H felony.

Loss of office and retirement benefits

Two consequences can follow a conviction in addition to the sentence:

• Office forfeiture and a bar from office (159-181(b)). "If any person embezzles any funds belonging to any local government or public authority, or appropriates to his own use any personal property having a value of more than fifty dollars ($50.00) belonging to any local government or public authority, in addition to the crimes and punishment otherwise provided by law, upon conviction he forfeits his office or position and is forever thereafter barred from holding any office or place of trust or profit under the State of North Carolina or any political subdivisions thereof until the disability is removed in the manner provided for restoration of citizenship in Chapter 13 of the General Statutes."
• Retirement benefits for elected officials (135-18.10, 128-38.4). The Teachers' and State Employees' Retirement System may not pay benefits, except a return of member contributions plus interest, to a member convicted of a listed felony if "(1) The federal or State offense is committed while serving as an elected government official" and "(2) The conduct on which the federal or State offense is based is directly related to the member's service as an elected government official" (135-18.10(a)). The listed State felonies include embezzlement under 14-90, 14-91, 14-92 and 14-99, and 128-38.4 sets a parallel rule for the Local Governmental Employees' Retirement System. These sections apply to elected officials, not to appointed officials or employees.

Embezzlement from a bank

The banking code reaches anyone, not only bank employees. Under G.S. 53C-8-11(a), any person who, "with intent to defraud or injure a bank or any other person or with intent to deceive an officer of the bank or an employee of the OCOB appointed to examine the affairs of the bank," commits any listed act is guilty of a felony. The listed acts include:

• "Embezzles, converts, or misapplies any of the money, funds, credit, or property of the bank, whether owned by it or held in trust" (53C-8-11(a)(1)).
• "Makes or permits to be made a false entry in a record of a bank, or conceals or permits to be concealed, by any means or manner, the true and correct entries in a record of a bank" (53C-8-11(a)(3)).
• Issuing certificates of deposit or similar obligations not in good faith, extending credit to an insolvent or nonexistent person, and publishing a false statement of the bank's condition.

The offense is a Class C felony at $100,000 or more and a Class H felony below (53C-8-11(b)). A State trust company officer, director or employee who knowingly makes a false entry in its books or reports commits a Class H felony (53-355), and a bank examiner who knowingly and willfully makes a false report of a bank's condition with intent to help keep an insolvent bank operating, or accepts a bribe not to file a report or neglects an examination because of a bribe, commits a Class I felony (14-233).

Older and disabled victims

North Carolina's financial-exploitation offense is G.S. 14-112.2. It protects an "older adult" (65 or older) and a "disabled adult" (18 or older and physically or mentally incapacitated), and has two tiers.

A person in a position of trust or a business relationship (14-112.2(b)). It is unlawful for a person "(i) who stands in a position of trust and confidence with an older adult or disabled adult, or (ii) who has a business relationship with an older adult or disabled adult to knowingly, by deception or intimidation, obtain or use, or endeavor to obtain or use, an older adult's or disabled adult's funds, assets, or property with the intent to temporarily or permanently deprive the older adult or disabled adult of the use, benefit, or possession of the funds, assets, or property, or to benefit someone other than the older adult or disabled adult." The grade is a Class F felony at $100,000 or more, Class G from $20,000 to under $100,000, and Class H under $20,000 (14-112.2(d)).

Any other person (14-112.2(c)). The same conduct by any person, or a conspiracy to commit it, is one class lower at each value: Class G at $100,000 or more, Class H from $20,000 to under $100,000, and Class I under $20,000 (14-112.2(e)). This subsection does not apply to a person acting within the scope of lawful authority as the adult's agent.

When more than $5,000 is involved, the district attorney may ask the court to freeze the defendant's assets, up to 150 percent of the alleged value, under the procedure in 14-112.3.

The separate abuse-and-neglect statute, 14-32.3, does not cover money; its former financial-exploitation subsection was "Repealed by Session Laws 2005-272, s. 1, effective December 1, 2005." For warning signs and where to report, see our guide to elder fraud.

What is forgery in North Carolina?

In State v. Phillips, 256 N.C. 445 (1962), the Supreme Court of North Carolina stated the elements: "Three elements are necessary to constitute the offense of forgery: (1) There must be a false making or alteration of some instrument in writing; (2) there must be a fraudulent intent; and (3) the instrument must be apparently capable of effecting a fraud." Phillips was decided before the 1983 and 2002 rewrites of the current forgery-of-instruments statute.

Article 21 of Chapter 14 divides forgery by the kind of document.

Checks, currency and securities (14-119)

Under G.S. 14-119(a), "It is unlawful for any person to forge or counterfeit any instrument, or possess any counterfeit instrument, with the intent to injure or defraud any person, financial institution, or governmental unit." A violation is a Class I felony. A person who "transports or possesses five or more counterfeit instruments" with the same intent is guilty of a Class G felony (14-119(b)).

"Instrument" here means "(i) any currency, bill, note, warrant, check, order, or similar instrument of or on any financial institution or governmental unit, or any cashier or officer of the institution or unit; or (ii) any security issued by, or on behalf of, any corporation, financial institution, or governmental unit" (14-119(c)(4)). "Counterfeit" means "to manufacture, copy, reproduce, or forge an instrument that purports to be genuine, but is not, because it has been falsely copied, reproduced, forged, manufactured, embossed, encoded, duplicated, or altered" (14-119(c)(1)).

Uttering a forged instrument (14-120)

Passing a forged instrument is graded the same as making one. Under 14-120, a person who, "whether for the sake of gain or with intent to defraud or injure any other person, shall utter or publish any such false, forged or counterfeited instrument as is mentioned in G.S. 14-119, or shall pass or deliver, or attempt to pass or deliver, any of them to another person (knowing the same to be falsely forged or counterfeited)" is punished as a Class I felon. Forging an endorsement on such an instrument, genuine or false, or knowingly uttering one with a forged endorsement, is also a Class I felony.

Deeds, wills, notes and receipts (14-122)

Forging other writings is a step higher. Under 14-122, a person who "shall wittingly and falsely forge and make," or causes or assents to the forging of, "or shall show forth in evidence, knowing the same to be forged," a deed, lease or will, a bond, writing obligatory, bill of exchange, promissory note or endorsement, a receipt for money or goods, a release, "or any order for the payment of money or delivery of goods, with intent, in any of said instances, to defraud any person or corporation," is punished as a Class H felon. Selling a forged judgment, bond, note, bill, order, draft or liquidated account, "knowing the same to be forged," is also Class H (14-121).

Other Article 21 offenses

• Petitions (14-123). Forging names to a petition for pardon, commutation, appointment or similar purposes, or knowingly using one, is a Class I felony.
• Corporate stock certificates (14-124). Forging or uttering a forged certificate of corporate stock is a Class I felony.
• Connecting genuine parts (14-125). Fraudulently joining parts of two or more genuine bank notes or instruments "in such a manner as to produce another note or instrument, with intent to pass all of them as genuine, the same shall be deemed a forgery."
• School and government documents (14-122.1). Knowingly and willfully making or altering falsely a diploma, certificate, license or transcript "signifying merit or achievement in an educational program" issued by a secondary school, postsecondary institution or governmental agency is a Class 1 misdemeanor, the one document-falsification offense in Article 21 that is not a felony.

Is signing someone else's name on a check a crime in North Carolina?

The answer turns on authority and intent. In Phillips, the court said that "if the purported maker is a real person and actually exists, the State is required to show not only that the signature in question is not genuine, but was made by defendant without authority." Forgery under 14-119(a) also requires "the intent to injure or defraud." If you are dealing with a forged or washed check as the victim, our guide to mail theft and check washing covers reporting and bank steps.

Card forgery, false identification and identity theft

Several related offenses sit outside Article 21:

• Financial transaction card forgery (14-113.11) and card-forgery devices (14-113.14). Falsely making, embossing, encoding or uttering a card with intent to defraud, or possessing two or more incomplete cards or card-reproduction machinery, is punishable as a Class I felony under 14-113.17(b).
• False identification (14-100.1). Knowingly possessing or manufacturing a false or fraudulent form of identification "for the purpose of deception, fraud, or other criminal conduct" is a Class 1 misdemeanor.
• False liens (14-118.6). Filing a false lien or encumbrance is a Class I felony.
• Identity theft (14-113.20, 14-113.22). Identity theft is "punishable as a Class G felony, except it is punishable as a Class F felony if: (i) the victim suffers arrest, detention, or conviction as a proximate result of the offense, or (ii) the person is in possession of the identifying information pertaining to three or more separate persons" (14-113.22(a)). Trafficking in stolen identities under 14-113.20A is a Class E felony (14-113.22(a1)). See our North Carolina identity theft laws page for more.

Worthless checks

A bad check is not forgery. Under G.S. 14-107(d), "A violation of this section is a Class I felony if the amount of the check or draft is more than two thousand dollars ($2,000)." At $2,000 or less, it is a misdemeanor, generally Class 3, but a Class 1 misdemeanor on a fourth or later conviction under the section, or when the check is drawn on a nonexistent account or on an account the drawer closed or knew was closed (14-107(d)(1), (3)-(4)). On a fourth or later conviction the court must also order, as a condition of probation, that the person not maintain a checking account or make or utter a check for three years (14-107(d)(1)).

North Carolina embezzlement and forgery offenses at a glance

North Carolina sentences felonies on a grid that pairs the offense class with the defendant's prior record level, from I to VI. The ranges in the table are the presumptive ranges of minimum sentences from G.S. 15A-1340.17(c); the maximum term that goes with each minimum is set by the tables in 15A-1340.17(d) and (e), and "Unless otherwise provided, the amount of the fine is in the discretion of the court" (15A-1340.17(b)). Misdemeanor ranges come from 15A-1340.23, which caps the fine at $200 for a Class 3 misdemeanor and $1,000 for a Class 2 misdemeanor and leaves a Class 1 fine to the court. For a Class 3 misdemeanor, "the judgment for a person convicted of a Class 3 misdemeanor who has no more than three prior convictions shall consist only of a fine" (15A-1340.23(d)). For the full grid, see North Carolina felony classes and misdemeanor sentences.

Aggravating factors

The sentencing statute lists factors that can support a sentence in the aggravated range. They include "(14) The offense involved an attempted or actual taking of property of great monetary value or damage causing great monetary loss" and "(15) The defendant took advantage of a position of trust or confidence, including a domestic relationship, to commit the offense" (15A-1340.16(d)). The list also includes that the defendant held public office or employment and the offense was directly related to it, and that the victim was very old or infirm. The same subsection provides that "Evidence necessary to prove an element of the offense shall not be used to prove any factor in aggravation." The State must prove an aggravating factor beyond a reasonable doubt.

Civil recovery for embezzlement

A victim can also sue. Under G.S. 1-538.2(a), a person, other than an unemancipated minor, "who commits an act that is punishable under" listed sections including 14-90 "is liable for civil damages to the owner of the property," and the owner may recover "the amount of any money lost by reason of the theft or embezzlement or fraud of an employee." The statute sets no maximum on consequential damages for an act punishable under 14-90, and under 1-538.2(c) "An action may be brought under this section regardless of whether a criminal action is brought or a criminal conviction is obtained for the act alleged in the civil action." For fraud schemes and where to report them, see our North Carolina scam and fraud laws page.

Recent changes

The core embezzlement and forgery sections have not changed in years. Section 14-90 was last amended in 2009 (S.L. 2009-348 and 2009-570); the public-funds sections 14-91, 14-92 and 14-99 in 1997 (S.L. 1997-443); and 14-119 in 2002 (S.L. 2002-175).

The 2025 changes were to neighboring theft law. S.L. 2025-71, effective December 1, 2025, for offenses committed on or after that date, created G.S. 14-72.12, larceny of gift cards, which is a Class 1 misdemeanor when the value "is not more than one thousand dollars ($1,000)" and otherwise a Class H felony; added 14-72(c1), under which larceny or possession of stolen mail is sentenced "at one class level higher than the principal offense"; and added 14-72.12 to the civil recovery statute, 1-538.2.

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
• North Carolina larceny laws
• North Carolina felony classes and misdemeanor sentences
• North Carolina scam and fraud laws
• North Carolina identity theft laws

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

Last updated: 2026-10-17.

Frequently Asked Questions

Is embezzlement a felony in North Carolina?

Yes. Embezzlement under G.S. 14-90 is a Class H felony when the property is worth less than $100,000 and a Class C felony at $100,000 or more. There is no misdemeanor tier.

What is the difference between embezzlement and larceny in North Carolina?

Embezzlement requires that the property came lawfully into the person's possession or care. In State v. Weaver (2005), the Supreme Court said that where possession was not lawful, the crime of embezzlement had not occurred. Larceny under 14-72 is a separate offense, and G.S. 14-74 separately makes larceny by servants and other employees a felony.

What is the sentence for Class H felony embezzlement in North Carolina?

North Carolina uses structured sentencing. For a Class H felony, the presumptive range of minimum sentences runs from 5-6 months at prior record level I to 16-20 months at level VI (15A-1340.17), and any fine is in the court's discretion.

Is embezzling public funds a separate crime in North Carolina?

Yes. Embezzling State property (14-91), local-government, school board or institution funds (14-92), or taxes (14-99) is a Class F felony below $100,000 and Class C at $100,000 or more. A conviction for embezzling local-government funds also forfeits the office under 159-181(b).

Is forgery a felony in North Carolina?

Generally yes. Forging or counterfeiting a check, currency or security (14-119(a)) and uttering one (14-120) are Class I felonies, and forging a deed, will, note or receipt is Class H (14-122). Falsifying a diploma, certificate, license or transcript that shows educational merit or achievement is a Class 1 misdemeanor (14-122.1).

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

In State v. Phillips (1962), the Supreme Court said that when the purported maker is a real person, the State must show not only that the signature is not genuine but that it was made by the defendant without authority. Forgery also requires fraudulent intent.

Is writing a bad check a felony in North Carolina?

Only above $2,000. Under 14-107(d), a worthless check for more than $2,000 is a Class I felony; at $2,000 or less it is a misdemeanor, Class 1 if drawn on a closed or nonexistent account or on a fourth or later conviction.

Can an employer sue an employee for embezzlement in North Carolina?

Yes. Under 1-538.2, a person who commits an act punishable under 14-90 is liable for civil damages to the property owner, and the action may be brought whether or not a criminal case is filed.