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

Tennessee merged embezzlement into theft in 1989. Under T.C.A. 39-14-101, theft is "a single offense embracing the separate offenses referenced before 1989 as embezzlement, false pretense, fraudulent conversion, larceny, receiving or concealing stolen property, and other similar offenses." It is graded by value under 39-14-105: a Class A misdemeanor at $1,000 or less and generally a felony above $1,000, rising to a Class A felony at $250,000 or more. Forgery (39-14-114) is punished the same way by value but is never less than a Class E 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 Tennessee Code provisions on theft as it applies to embezzlement (39-14-101 to 39-14-107, 39-11-106 value rules, 40-13-221), financial exploitation of an elderly or vulnerable adult (39-15-501 to 39-15-503, 39-15-506), official misconduct and government-records offenses (39-16-402, 39-16-503, 39-16-504), the county highway embezzlement provision (54-7-206), court clerk conversion (18-2-105), contractor misapplication of payments (66-11-138), the bank insider offense (45-2-1716), public retirement forfeiture (8-35-124, 8-36-918), forgery and the related fraud sections of Title 39, chapter 14, part 1, worthless checks (39-14-121), limitation periods (40-2-101 to 40-2-103) and sentencing classes (40-35-111, 40-35-112, 40-35-303). It does not cover the full theft table (see Tennessee theft laws), identity theft grading, scams and victim reporting, the rest of the banking and insurance titles, federal offenses, or local ordinances.

What is embezzlement in Tennessee?

Title 39's theft part has no separate offense named embezzlement; embezzlement is theft. The consolidation clause, 39-14-101, states: "Conduct denominated as theft in this part constitutes a single offense embracing the separate offenses referenced before 1989 as embezzlement, false pretense, fraudulent conversion, larceny, receiving or concealing stolen property, and other similar offenses."

The offense itself is defined in 39-14-103(a): "A person commits theft of property if, with intent to deprive the owner of property, the person knowingly obtains or exercises control over the property without the owner's effective consent." "Effective consent" means assent in fact, and it is not effective when induced by deception or coercion (39-11-106).

An older procedural statute still refers to the pre-1989 names. Under 40-13-221, "Any indictment charging a felonious taking or appropriation of the personal property of another, of any value, with intent to convert the property to the use of the defendant and to deprive the true owner of the property, shall be deemed a good and sufficient indictment for embezzlement or fraudulent breach of trust."

Claim of right

Section 39-14-107 sets an affirmative defense to theft of property: "It is an affirmative defense to prosecution under §§ 39-14-103, 39-14-104 and 39-14-106 that the person: (1) Acted under an honest claim of right to the property or service involved; (2) Acted in the honest belief that the person had the right to obtain or exercise control over the property or service as the person did; or (3) Obtained or exercised control over property or service honestly believing that the owner, if present, would have consented."

Where the word "embezzlement" still appears

A few provisions outside the theft part still use the word. The clearest is the county highway statute. Under 54-7-206(b), if any chief administrative officer "charged with the collection, safekeeping, transfer, or disbursement of money or property belonging to the county highway department uses or diverts any part of the money or property by loan, investment, or otherwise, without authority of law, or converts any part of the money or property to the chief administrative officer's own use in any way whatsoever, the chief administrative officer commits embezzlement, and for every act, upon conviction, shall be punished as in the case of larceny, and in addition shall be required to pay to the court an amount equal to the amount embezzled."

The Tennessee national guard fraud section, 58-1-630, makes it a Class E felony for a person "Having charge, possession, custody or control of any money or other property of the state, furnished or intended for the national guard or any force thereof," to knowingly deliver "any amount thereof less than that for which the person receives a certificate of receipt," among other listed acts.

Other statutes that reach misused funds

Construction contractors face a separate offense for misapplying payments. Under 66-11-138(a)(1), a "prime contractor or remote contractor who, with intent to defraud, uses the proceeds of any payment made to that contractor on account of improving certain real property for any purpose other than to pay for labor performed on, or materials, services, equipment, or machinery furnished by that contractor's order for the real property, and overhead and profit related thereto, while any amount for the labor, materials, services, equipment, machinery, overhead, or profit remains unpaid" is liable to an injured party, and under (a)(2) "A violation of subdivision (a)(1) is a Class E felony." Under 66-11-138(b), there is no violation when "(1) Funds are disbursed pursuant to written agreement; or (2) The use of funds received and deposited in a business account for use on multiple construction projects is based on the allocation of costs and profits in accordance with generally accepted accounting principles for construction projects."

For bank insiders, 45-2-1716(a)(1) makes it a Class C misdemeanor for "any director, officer, or employee of any bank" who "Knowingly receives or possesses any of the bank's property, otherwise than in payment for a just demand, or with intent to defraud, and omits to make, or causes the omission of, a full and true entry thereof in its books and accounts." Under 45-2-1716(b), "This section shall not be construed to conflict with § 39-14-103."

Is embezzlement a felony in Tennessee?

Generally when the value is more than $1,000. Theft is graded under 39-14-105(a):

• $1,000 or less: Class A misdemeanor.
• More than $1,000 but less than $2,500: Class E felony.
• $2,500 or more but less than $10,000: Class D felony.
• $10,000 or more but less than $60,000: Class C felony.
• $60,000 or more but less than $250,000: Class B felony.
• $250,000 or more: Class A felony.

The grade can be higher when the victim is an elderly or vulnerable adult (below). Our Tennessee theft laws page covers shoplifting and the rest of the theft table.

How value is measured

Under 39-11-106(a)(38), value is generally the fair market value of the property at the time and place of the offense, or replacement cost if market value cannot be ascertained. Two further rules apply: "If property or service has value that cannot be ascertained by the criteria set forth in subdivisions (a)(38)(A) and (B), the property or service is deemed to have a value of less than fifty dollars ($50.00)," and "If the defendant gave consideration for or had a legal interest in the property or service that is the object of the offense, the amount of consideration or value of the interest shall be deducted from the value of the property or service" to determine value.

Adding up a series of takings

Under 39-14-105(b), "(1) In a prosecution for theft of property, theft of services, and any offense for which the punishment is determined pursuant to this section, the state may charge multiple criminal acts committed against one (1) or more victims as a single count if the criminal acts arise from a common scheme, purpose, intent or enterprise. (2) The monetary value of property from multiple criminal acts which are charged in a single count of theft of property shall be aggregated to establish value under this section." Subsection (b)(1) also covers "any offense for which the punishment is determined pursuant to this section," a group that includes forgery, criminal simulation and worthless checks.

Prior convictions

Section 39-14-105 has no repeat-theft grade. Prior convictions instead affect the sentencing range under 40-35-112. For a Class E felony, for example, a Range I sentence is "not less than one (1) nor more than two (2) years," Range II is 2 to 4 years and Range III is 4 to 6 years. Separately, 39-14-105(d) provides that "theft of a firearm shall be punished by confinement for not less than thirty (30) days in addition to any other penalty authorized by law."

Financial exploitation of an elderly or vulnerable adult

Tennessee has a separate exploitation offense that carries a higher grade than ordinary theft. Under 39-15-502, "(a) It is an offense for any person to knowingly financially exploit an elderly or vulnerable adult. (b) A violation of this section shall be punished as theft pursuant to § 39-14-105; provided, however, that the violation shall be punished one (1) classification higher than is otherwise provided in § 39-14-105."

The definitions in 39-15-501 control:

• Elderly adult: "a person seventy (70) years of age or older" (39-15-501(6)).
• Vulnerable adult: "a person eighteen (18) years of age or older who, because of intellectual disability or physical dysfunction, is unable to fully manage the person's own resources, carry out all or a portion of the activities of daily living, or fully protect against neglect, exploitation, or hazardous or abusive situations without assistance from others" (39-15-501(14)).
• Financial exploitation (39-15-501(7)) means "(A) The use of deception, intimidation, undue influence, force, or threat of force to obtain or exert unauthorized control over an elderly or vulnerable adult's property with the intent to deprive the elderly or vulnerable adult of property; (B) The breach of a fiduciary duty to an elderly or vulnerable adult by the person's guardian, conservator, or agent under a power of attorney which results in an appropriation, sale, or transfer of the elderly or vulnerable adult's property; or (C) The act of obtaining or exercising control over an elderly or vulnerable adult's property, without receiving the elderly or vulnerable adult's effective consent, by a caregiver committed with the intent to benefit the caregiver or other third party."

Under 39-15-503(1), "Any transfer of property valued in excess of one thousand dollars ($1,000) in a twelve-month period, whether in a single transaction or multiple transactions, by an elderly or vulnerable adult to a nonrelative whom the transferor has known for fewer than two (2) years before the first transfer and for which the transferor did not receive reciprocal value in goods or services creates a permissive inference that the transfer was effectuated without the effective consent of the owner." Under 39-15-503(2), the inference applies whether the transfer is called a gift or a loan, "except that it shall not apply to a valid loan evidenced in writing and which includes definite repayment dates," and it applies again if such a loan is in default for more than 60 days. Under 39-15-503(4), jurors are also instructed "that they may find a defendant guilty only if persuaded that each element of the offense has been proved beyond a reasonable doubt."

After a conviction under 39-15-502, "the department shall place the person or persons convicted on the registry of persons who have abused, neglected, or financially exploited an elderly or vulnerable adult" (39-15-506(a)(2)).

For warning signs and where to report, see our guide to elder financial fraud.

Public officials and public money

A public employee who takes public money commits theft under 39-14-103, and the official misconduct statute can apply as well.

Court clerks have their own statute. Under 18-2-105, "Any clerk or clerk and master of any court who, without authority of law, uses, loans or converts to the clerk's or clerk and master's own use, or otherwise disposes of, any money or property that may have come into the clerk's or clerk and master's hands in the clerk's or clerk and master's official capacity, commits a Class C felony." The section sets that class without regard to value.

Official misconduct (39-16-402)

Section 39-16-402 covers a public servant who, with intent to obtain a benefit or to harm another, intentionally or knowingly exercises official power without authority or in excess of it, refrains from a required duty, violates a law relating to the office, or receives a benefit not authorized by law. Under 39-16-402(e):

• "(1) An offense under subsection (a) in which the conduct described in subsection (c) is not the basis of the violation is a Class E felony."
• "(2) An offense under subsection (a) in which the conduct described in subsection (c) is the basis of the violation is a Class A misdemeanor and the court shall order appropriate restitution to the governmental entity harmed by the offense." The subsection (c) conduct involves using nonpublic information gained in office for profit, and it also carries ouster and a permanent bar from office.
• "(3) If the defendant's conduct violates this section and other criminal statutes, nothing in this subsection (e) shall be construed as prohibiting prosecution and conviction for theft or any other such applicable offense in addition to or in lieu of prosecution and conviction for a violation of this section."

Government records

Under 39-16-504(a), it is unlawful for any person to "(1) Knowingly make a false entry in, or false alteration of, a governmental record; (2) Make, present, or use any record, document or thing with knowledge of its falsity and with intent that it will be taken as a genuine governmental record; or (3) Intentionally and unlawfully destroy, conceal, remove or otherwise impair the verity, legibility or availability of a governmental record." A violation "is a Class E felony" (39-16-504(b)); a 2019 amendment raised it from a Class A misdemeanor. Tampering with or fabricating evidence while an investigation or proceeding is pending is a Class C felony (39-16-503).

Loss of retirement benefits

Under 8-36-918(a), "an employee or elected or appointed official of this state, an employee or elected or appointed official of any political subdivision thereof, or a teacher employed with a local education agency who is convicted in any state or federal court of a felony arising out of that employee's or official's employment or official capacity constituting malfeasance in office shall forfeit that person's retirement benefits under the defined benefit component of the plan." Under the section, benefits stop on conviction or a guilty or no-contest plea, the person receives a refund of their own contributions and interest less benefits already paid, and benefits are restored if "the conviction of such person is later overturned in any court and such person is acquitted, or is granted a full pardon" (8-36-918(d)).

The older provision, 8-35-124, applies the malfeasance-in-office rule to the Tennessee Consolidated Retirement System and other public pension systems in two tiers: for a conviction "in any court of this state," members who joined after July 1, 1982, and for a conviction "in any state or federal court," members who joined on or after May 31, 1993 (8-35-124(e)). It also deems every person elected to public office to consent to forfeiture on a state or federal felony conviction arising out of official capacity and constituting malfeasance in office, "regardless of the date the person became a member of the public pension system" (8-35-124(a)(3)). Neither section forfeits benefits for a felony unconnected to public office or employment.

What is forgery in Tennessee?

Under 39-14-114(a), "A person commits an offense who forges a writing with intent to defraud or harm another." The statute defines "forge" broadly, and the definition includes uttering and possession:

"(1) "Forge" means to: (A) Alter, make, complete, execute or authenticate any writing so that it purports to: (i) Be the act of another who did not authorize that act; (ii) Have been executed at a time or place or in a numbered sequence other than was in fact the case; or (iii) Be a copy of an original when no such original existed; (B) Make false entries in books or records; (C) Issue, transfer, register the transfer of, pass, publish, or otherwise utter a writing that is forged within the meaning of subdivision (b)(1)(A); or (D) Possess a writing that is forged within the meaning of subdivision (b)(1)(A) with intent to utter it in a manner specified in subdivision (b)(1)(C)."

"Writing" "includes printing or any other method of recording information, money, coins, tokens, stamps, seals, credit cards, badges, trademarks, and symbols of value, right, privilege or identification" (39-14-114(b)(2)). Making false entries in books or records is itself a form of forgery under (b)(1)(B), and a writing that purports to "Be the act of another who did not authorize that act" is the form that covers an unauthorized signature. For the victim side of forged and washed checks, see our guide to mail theft and check washing.

Is forgery a felony?

Yes, always. Under 39-14-114(c), "An offense under this section is punishable as theft pursuant to § 39-14-105, but in no event shall forgery be less than a Class E felony." So a forged instrument for a small amount is still a Class E felony, and a larger amount follows the theft ladder upward.

Criminal simulation and forging devices

Criminal simulation (39-14-115) covers making or altering an object so it appears to have a value it does not have, and, under 39-14-115(a)(2), knowingly possessing plates or machinery for producing unauthorized credit or debit cards or instruments designed to commit theft by fraudulent means. Under 39-14-115(b), "Criminal simulation is punishable as theft pursuant to § 39-14-105, but in no event shall criminal simulation be less than a Class E felony."

Other fraud offenses in the same part

• Credit and debit cards (39-14-118). "Fraudulent use of a credit or debit card is punishable as theft pursuant to § 39-14-105, depending on the amount of property, credit, goods or services obtained," and "If no property, credit, goods, or services are actually received or obtained, illegal possession or fraudulent use of a credit card is a Class A misdemeanor."
• Valuable papers (39-14-130). "Any person who takes or destroys any valuable papers with intent to injure or defraud shall be punished as if for theft. If the value of the papers is not ascertainable, the offense is a Class A misdemeanor."
• Wills (39-14-131). Destroying or concealing a will with intent to defraud is a Class E felony.
• Hindering secured creditors and fraud in insolvency (39-14-116, 39-14-117). Class E felonies.
• Insurance claims (39-14-133). False or fraudulent insurance claims are punished as theft.
• False financial statement (39-14-120). A Class B misdemeanor.
• Falsified educational documents and surety-bond statements (39-14-136, 39-14-148). Class A misdemeanors.
• Identity theft and counterfeit marks (39-14-150, 39-14-152). See our Tennessee identity theft laws page.

Tennessee embezzlement and forgery offenses and penalties

The ranges come from 40-35-111(b), which sets the outer limits for each felony class: Class A, "not less than fifteen (15) nor more than sixty (60) years," with a fine up to $50,000; Class B, 8 to 30 years and up to $25,000; Class C, 3 to 15 years and up to $10,000; Class D, 2 to 12 years and up to $5,000; and Class E, "not less than one (1) year nor more than six (6) years," with a fine up to $3,000, in each case "unless otherwise provided by statute." A Class A misdemeanor is "not greater than eleven (11) months, twenty-nine (29) days or a fine not to exceed two thousand five hundred dollars ($2,500), or both" (40-35-111(e)(1)), and a Class C misdemeanor is "not greater than thirty (30) days or a fine not to exceed fifty dollars ($50.00), or both" (40-35-111(e)(3)). Within those limits, the court sets a sentence inside the range that applies to the defendant under 40-35-112 (for example, Range I for a Class D felony is 2 to 4 years). Under 40-35-303(a), "A defendant shall be eligible for probation under this chapter if the sentence actually imposed upon the defendant is ten (10) years or less," subject to a list of excluded offenses that does not include theft, forgery or financial exploitation. The full class table is on our Tennessee felony and misdemeanor classes page.

Worthless checks

Under 39-14-121(f), "The offense of issuing or passing worthless checks is punishable as theft pursuant to § 39-14-105." The face amount sets the grade on the theft ladder.

Time limits for prosecution

In Tennessee the limitation period follows the felony class, which for theft and forgery depends on value. Under 40-2-101(b), "Prosecution for a felony offense shall begin within: (1) Fifteen (15) years for a Class A felony; (2) Eight (8) years for a Class B felony; (3) Four (4) years for a Class C or Class D felony; and (4) Two (2) years for a Class E felony." So a Class E theft (more than $1,000 but less than $2,500) or a Class E forgery has a 2-year period, and a Class D or C theft has 4 years. Misdemeanor prosecutions must begin within 12 months (40-2-102(a)).

Under 40-2-103, "No period during which the party charged conceals the fact of the crime, or during which the party charged was not usually and publicly resident within the state, is included in the period of limitation." Civil filing deadlines are on our Tennessee statute of limitations page. For fraud schemes and where to report them, see our Tennessee scam and fraud laws page.

Recent changes

• Public Chapter 939 (2026), effective July 1, 2026. Amended 39-11-402(2), the rule on criminal responsibility for another person's conduct. A person is now responsible when, "Acting with intent to promote or assist the commission of the offense, or acting with intent to benefit in the proceeds or results of the offense, the person solicits, directs, aids, or attempts to aid another person to commit the offense." The act did not amend the theft, forgery or exploitation sections.
• Public Chapter 632 (2026), effective July 1, 2026. Amended 39-14-136 (falsifying educational documents) to add that "It is not a violation of this section for an employee of a school to alter, create, or duplicate the grade of a student in an educational or academic document, if such alteration, creation, or duplication is due to the student earning the grade through a program that allows the student to retake a failed course, exam, or assignment and earn credit."

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
• Tennessee theft laws
• Tennessee felony and misdemeanor classes
• Tennessee scam and fraud laws
• Tennessee statute of limitations

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

Last updated: 2026-10-18.

Frequently Asked Questions

Is embezzlement a felony in Tennessee?

Generally when the value is more than $1,000. Embezzlement is theft under T.C.A. 39-14-101 and 39-14-103, graded by value under 39-14-105: a Class A misdemeanor at $1,000 or less and a Class E to Class A felony above that. Exploiting an elderly or vulnerable adult is punished one class higher (39-15-502).

What is the penalty for embezzling $250,000 or more in Tennessee?

Theft of $250,000 or more is a Class A felony under 39-14-105(a)(6). The statutory range is 15 to 60 years, with a fine up to $50,000 (40-35-111(b)(1)); the sentence is set within the range that applies to the defendant under 40-35-112.

Does Tennessee still have a crime called embezzlement?

Not in its theft part: 39-14-101 makes theft a single offense embracing the offenses known before 1989 as embezzlement, fraudulent conversion and larceny. A few other statutes still use the word, such as 54-7-206(b) for county highway officers.

Is forgery a felony in Tennessee?

Yes. Under 39-14-114(c), forgery is punished as theft by value but is never less than a Class E felony, which carries 1 to 6 years (40-35-111(b)(5)). Uttering a forged writing and possessing it with intent to utter are part of the definition of forge.

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

Under 39-14-114(b)(1)(A), to forge includes making or completing 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 harm another. Money and other symbols of value are writings under 39-14-114(b)(2).

Can a Tennessee public employee lose a pension for embezzlement?

Under 8-36-918(a), a state or local employee, official or teacher convicted in state or federal court of a felony arising out of the job or official capacity constituting malfeasance in office forfeits defined-benefit retirement benefits, with a refund of their own contributions and interest less benefits paid.

How long does Tennessee have to prosecute embezzlement?

It depends on the felony class, which depends on value: 2 years for a Class E felony, 4 years for Class C or D, 8 for Class B and 15 for Class A (40-2-101(b)), and 12 months for a misdemeanor. Time during which the accused conceals the crime does not count (40-2-103).