Larceny by Conversion Defense Attorney

When a financial dispute turns into a criminal charge, the consequences feel immediate and overwhelming.

larceny by conversion defense attorney michigan

What Is Larceny by Conversion?

Larceny by conversion under Michigan law involves property that someone received lawfully and later used or kept in a way the owner never authorized. The accusation does not focus on how the property changed hands at the beginning. It focuses on what happened afterward. If you face allegations or charges of larceny by conversion, it is vital that you work with a skilled and experienced defense attorney to protect you and defend your rights.

Michigan’s larceny by conversion law is outlined in MCL 750.362a. Prosecutors must prove several specific elements. They must show that the accused had lawful possession of property belonging to someone else, that the owner placed limits on how that property could be used, and that the accused intentionally violated those limits by converting the property for personal use or an unauthorized purpose.

Intent drives these cases. The law does not criminalize poor judgment, financial stress, or sloppy bookkeeping in and of itself. Many larceny by conversion charges grow out of business relationships, employment duties, family arrangements, or informal agreements where expectations were never clearly defined. When police step into those situations, the line between a civil dispute and a crime often blurs. That gray area creates both risk and opportunity for the defense.

How Is It Different from Theft or Embezzlement?

People charged with this offense often ask why prosecutors did not simply file theft or embezzlement charges instead. The answer lies in how Michigan categorizes property crimes.

Theft involves taking property without permission from the outset. Fraud centers on deception used to obtain property or assets. Embezzlement applies when someone fraudulently converts property while acting in a position of trust, such as an employee, agent, or fiduciary.

Larceny by conversion cases in Michigan start from a different place. The accused initially had permission to possess the property. The dispute arises later, when the owner claims the accused used the property in a way that violated the original agreement. That distinction matters because it affects how prosecutors must prove intent and how defense lawyers challenge the case.

These differences also explain why prosecutors sometimes overreach. When a transaction does not fit neatly into theft or embezzlement, they may label it conversion and let a jury sort it out. A strong defense against larceny by conversion charges forces the judge and prosecutor to confront whether the case belongs in criminal court at all.

What Are the Penalties for Larceny by Conversion?

Larceny by conversion penalties in Michigan depend almost entirely on the alleged value of the property involved. The statute uses value tiers that mirror other theft offenses, and those numbers drive exposure.

  • When the value is less than $200, the offense qualifies as a misdemeanor punishable by up to 93 days in jail, along with probation, fines, restitution, and court costs.
  • When the value falls between $200 and $1,000, the charge remains a misdemeanor, but potential jail exposure increases to up to one year.
  • When prosecutors allege a value of $1,000 or more but less than $20,000, the case becomes a felony punishable by up to five years in prison.
  • When the value reaches $20,000 or more, felony larceny by conversion charges carry exposure of up to ten years in prison.

Judges almost always order restitution in these cases, even when incarceration does not occur. A conviction can also have collateral consequences, such as its effect on professional licenses, employment opportunities, reputation, child custody, and future sentencing calculations. For many clients, the collateral damage matters just as much as the immediate penalty.

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Is Larceny by Conversion a Felony?

Larceny by conversion can be a felony in Michigan, and prosecutors frequently pursue it as one. The deciding factor usually comes down to value, but value disputes rarely involve simple math.

In many cases, prosecutors rely on inflated figures, projected losses, or accounting assumptions that do not withstand scrutiny. Business expenses, partial performance, shared funds, and disputed ownership all affect valuation. A skilled defense focuses early on these issues because reducing the alleged value can change the entire trajectory of the case.

Felony larceny by conversion convictions carry consequences that extend far beyond sentencing. A felony record can limit housing options, restrict firearm rights, complicate immigration status, and follow someone for life. That reality makes early, aggressive defense essential.

What Are Common Examples of Larceny by Conversion?

Most larceny by conversion charges do not involve secretive theft or elaborate schemes. They usually involve everyday situations that spiral.

  • An employee receives company funds to make purchases and later uses some of the money for personal expenses during a period of financial stress.
  • A contractor accepts a deposit for a job, begins work, and then applies the money to other expenses when the project stalls or disputes arise.
  • A business partner accesses shared funds for expenses that the other partners later dispute.
  • A family member receives money to manage bills or property and uses it in a way that triggers disagreement.

These scenarios often involve poor documentation, poor communication, and informal arrangements. Prosecutors may still frame them as crimes. A focused defense places them in their proper context and switches the narrative to one that favors the defense.

What Are the Best Defenses to Larceny by Conversion Charges?

Every larceny by conversion defense begins with intent. Prosecutors must prove that the accused intentionally converted property without authorization. That burden creates real leverage. Many cases turn on permission. If the owner allowed the use, changed the terms later, or never imposed clear restrictions in the first place, the prosecution struggles to prove criminal intent.

Ownership also complicates these cases. Joint accounts, shared property, and business assets rarely fit cleanly into a criminal framework, especially when multiple people had access or control. Additionally, value disputes play a central role. Prosecutors often rely on assumptions that collapse once financial records receive proper analysis.

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What Should You Do If You Are Charged?

If police or investigators contact you, protect yourself by staying silent. Officers often frame these cases as misunderstandings and invite explanations. Those explanations frequently become the foundation of criminal charges.

  • Do not provide documents or records without legal guidance. Financial paperwork can tell very different stories depending on context.
  • Contact a larceny by conversion defense lawyer immediately. Early involvement, even on a pre-charge basis, can prevent charges from being filed, reduce the severity of the case, or position it for dismissal.
  • Preserve records. Contracts, emails, invoices, bank statements, and text messages often determine the outcome. Once charges are filed, leverage decreases. Do not provide any records to law enforcement. If it is appropriate to provide records to the police, your lawyer will take care of this on your behalf.

Why You Need a Larceny by Conversion Defense Lawyer

Larceny by conversion cases require more than general criminal defense experience. They demand a lawyer who understands financial transactions, business relationships, and Michigan property crime statutes.

Prosecutors often simplify complex situations. They treat negligence as intent. They assume misuse where ambiguity exists. An effective larceny by conversion defense lawyer challenges those assumptions and forces the state to meet its burden.

At LEWIS & DICKSTEIN, P.L.L.C., we defend clients facing larceny by conversion charges throughout Oakland, Wayne, Macomb, Washtenaw, Livingston, and other counties in Michigan. We understand how these cases are charged, how they are overcharged, and how to dismantle them. We prepare every case for trial from the beginning, even when resolution occurs earlier. That preparation changes outcomes.

Frequently Asked Questions

What does larceny by conversion mean?

It means the prosecution claims you lawfully received property and later used or kept it without permission. The focus rests on intent and unauthorized use, rather than how you initially obtained the property.

Is larceny by conversion serious?

Yes. Even misdemeanor convictions carry lasting consequences. Felony cases can involve prison exposure and permanent damage to your record.

Can larceny by conversion charges be dismissed?

Yes. Dismissals occur when prosecutors are unable to prove intent, value, ownership, or criminal conduct. A strong early defense increases the likelihood of a dismissal or reduction.

Will larceny by conversion show up on a background check?

A conviction will appear on most background checks. Pending charges may also appear in certain screenings. This reality makes aggressive defense critical.

What should I do right now?

Do not speak with the police. Do not assume the issue will resolve itself. Contact a qualified defense lawyer for larceny by conversion immediately.

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Your Best Defense Against Larceny by Conversion Allegations Starts Here!

Larceny by conversion accusations put your freedom, reputation, and future at risk. At LEWIS & DICKSTEIN, P.L.L.C., we approach these cases with precision, discipline, and resolve. We do not posture. We prepare. When you need a defense that inspires confidence without empty promises, our firm stands ready to protect you. If you call us today for a free consultation, we will take the time to discuss your situation, answer your questions, and address your concerns. We will find a way to help you!

Call us today at (248) 263-6800 for a free consultation or complete an online Request for Assistance Form. We will contact you promptly and find a way to help you.

We will find a way to help you.
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Key Takeaways

  • Larceny by Conversion involves using property lawfully obtained in an unauthorized way, with intent being a key factor.
  • The distinction between Larceny by Conversion and other theft-related charges, like embezzlement, lies in initial permission to possess the property.
  • Penalties depend on property value, ranging from misdemeanors to felonies with potential prison time.
  • Defending against Larceny by Conversion charges often hinges on proving intent and ownership, especially in ambiguous situations.
  • Hiring a skilled Larceny by Conversion Defense attorney is crucial to navigate these complex cases and protect your rights.

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