Larceny vs. Embezzlement in Virginia: Understanding the Difference

The information in this article is for general informational purposes only and does not constitute legal advice. Laws change and individual circumstances vary. Consult a licensed Virginia attorney about your specific situation. Reading this article does not create an attorney-client relationship nor does merely contacting our office through this website or any other means.

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Two Different Crimes, One Common Theme

Both larceny and embezzlement involve taking something that belongs to someone else. But in Virginia, they are distinct criminal offenses with different elements, different histories, and different practical implications. Being charged with one rather than the other can affect the evidence the Commonwealth must prove, the defenses available to you, and the penalties you face.

Understanding the distinction is not merely an academic exercise. Prosecutors, defense attorneys, and judges pay close attention to how these charges are framed, and the facts of a particular case determine which offense, if either, actually fits.

Larceny in Virginia

Larceny is one of the oldest crimes in common law. Virginia has codified its larceny offenses primarily in Virginia Code § 18.2-95 (grand larceny) and § 18.2-96 (petit larceny), though the underlying common law definition still shapes how courts interpret the crime.

At its core, larceny is the wrongful taking and carrying away of someone else’s personal property, with the intent to permanently deprive the owner of it. Every element matters:

• Taking and carrying away: There must be actual physical control over the property, even briefly. Simply reaching for something is generally not enough.
• Property of another: The property must belong to someone other than the accused.
• Intent to permanently deprive: The accused must intend to keep the property from its owner permanently, not merely borrow it temporarily.

Grand Larceny vs. Petit Larceny

Virginia divides larceny into two tiers based on value:

Grand larceny under § 18.2-95 applies when:

• The value of property taken directly from a person is $5 or more, or
• The value of property taken not directly from a person is $1,000 or more, or
• The property taken is a firearm, regardless of value

Grand larceny is a felony, punishable by one to twenty years in prison, or, at the jury’s or court’s discretion, confinement in jail for up to twelve months and a fine of up to $2,500.

Petit larceny under § 18.2-96 applies when the value of stolen property falls below the grand larceny threshold. Petit larceny is a Class 1 misdemeanor, carrying a potential penalty of up to twelve months in jail and a fine of up to $2,500.

The Custody Problem That Gave Rise to Embezzlement

The traditional larceny definition created a legal gap that courts struggled with for centuries. Larceny requires a wrongful taking, meaning the accused must obtain possession of the property unlawfully at the outset. But what about a person who receives property lawfully and then decides to keep it or convert it to their own use?

A bank teller who pockets deposits. A bookkeeper who diverts client funds. An employee entrusted with company inventory who takes merchandise home. Under strict common law larceny doctrine, none of these individuals initially took anything wrongfully. They received the property legitimately, through their employment or position of trust. The wrongful act came afterward, when they converted the property to their own use.

Courts and legislatures eventually recognized that allowing this technical distinction to shield dishonest employees from criminal liability made no sense. The solution was embezzlement.

Embezzlement in Virginia

Embezzlement is defined under Virginia Code § 18.2-111 as the wrongful and fraudulent conversion of property by a person to whom it has been entrusted. The key elements distinguish it clearly from larceny:

• Lawful initial possession: The accused must have received the property legitimately, through employment, agency, or some other position of trust.
• Conversion: The accused must then use, dispose of, or retain the property in a manner inconsistent with the owner’s rights, treating it as their own.
• Fraudulent intent: The conversion must be knowing and intentional, not the result of mistake or accident.

Because the accused lawfully received the property in the first place, the “taking” element of larceny is absent. Embezzlement fills that gap by focusing on the breach of trust that occurs after lawful receipt.

Who Can Be Charged With Embezzlement

Embezzlement typically arises in employment and agency relationships. Common scenarios include:

• An employee who handles cash or accounts and diverts funds for personal use
• A property manager who collects rent on behalf of an owner and keeps the proceeds
• A fiduciary, such as a trustee or executor, who misappropriates assets entrusted to their management
• A contractor or agent who receives funds designated for a specific purpose and spends them on something else

The relationship of trust is central. Without a legitimate basis for holding the property in the first place, the charge is more likely larceny than embezzlement.

Penalties for Embezzlement

Virginia Code § 18.2-111 incorporates the larceny penalty structure into embezzlement cases. The value of the property converted determines whether the offense is treated as grand larceny or petit larceny for sentencing purposes:

• Property valued at $1,000 or more: treated as grand larceny, a felony carrying one to twenty years
• Property valued under $1,000: treated as petit larceny, a Class 1 misdemeanor

Embezzlement convictions also carry significant collateral consequences. A felony embezzlement conviction can affect professional licensing, future employment prospects (particularly in positions involving financial responsibility), and civil liability to the victim.

Key Differences at a Glance

The distinction between larceny and embezzlement often comes down to a single question: how did the accused come to possess the property?

• Larceny: Possession was obtained wrongfully from the beginning. The taking itself was unauthorized.
• Embezzlement: Possession was obtained lawfully. The wrongful act was what happened afterward, when the property was converted.

This distinction has real consequences in a criminal case. The Commonwealth must prove different facts to establish each offense. An accusation that the wrong charge was filed, or that the evidence does not fit the elements of the charged offense, can be a meaningful part of a defense.

Larceny by Trick and False Pretenses

Virginia law also recognizes related offenses that sometimes overlap with larceny and embezzlement in complex cases.

Larceny by trick occurs when someone obtains possession of property through deception, intending from the start to keep it. Because the accused never obtained actual ownership, just possession, courts historically treated this as a form of larceny.

Obtaining money or property by false pretenses, codified at Virginia Code § 18.2-178, applies when a person obtains both title and possession through a knowing misrepresentation of a material fact. This offense fills yet another gap: where the victim was deceived into transferring ownership, not merely custody.

In practice, a single course of conduct may give rise to potential charges under several of these statutes. Prosecutors have discretion in how they frame charges, and the specific facts of each case determine which theory or theories apply.

Defenses in Larceny and Embezzlement Cases

Both larceny and embezzlement require the Commonwealth to prove criminal intent. This requirement is often where contested cases are decided.

Lack of intent is a common defense. In embezzlement cases especially, accounting errors, business disputes over ownership of funds, or misunderstandings about authorization can be raised to challenge whether any fraudulent intent existed. An employee who believed in good faith that they were authorized to use company funds may have a legitimate defense, even if their belief turned out to be mistaken.

Claim of right is another recognized defense in Virginia: if the accused genuinely and sincerely believed the property was theirs, or that they were legally entitled to it, the intent to steal may be absent. This defense does not require that the belief was correct, only that it was honest.

Valuation disputes matter as well. Because Virginia’s sentencing tiers turn on the value of the property involved, disputes about whether property meets the grand larceny threshold can meaningfully affect the severity of the charge and the potential sentence.

Restitution and civil resolution do not eliminate criminal liability, but the circumstances of a case, including whether funds were repaid and under what circumstances, can be relevant to how a matter is resolved.

Why the Distinction Matters for Your Case

Whether you are facing a larceny charge, an embezzlement charge, or both, the specific facts of your situation and how they align with the elements of each offense are critical. The Commonwealth bears the burden of proving every element beyond a reasonable doubt, and each element of these offenses has developed a body of case law defining its scope.

If you or someone you know is facing a theft-related charge in Virginia, including in Montgomery County, Blacksburg, Christiansburg, Pulaski, or elsewhere in the New River Valley, speaking with an attorney who understands these distinctions is an important early step.

Valley Legal represents individuals facing criminal charges throughout the New River Valley of Virginia and surrounding communities.

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This article is general information only and is not legal advice. Do not rely on this article to make decisions about your specific situation. Contact Valley Legal or another licensed Virginia attorney to discuss your case. Attorney advertising.

Valley Legal, PLLC is located at 107 Pepper St SE, Christiansburg, Virginia 24073, and serves clients throughout the New River Valley of Virginia, including Montgomery County, Blacksburg, Radford, Pulaski, and surrounding communities.