Theft by Conversion

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Theft by conversion is considered a property crime in Georgia. Theft by conversion can be treated as a felony or misdemeanor, depending on the unique circumstances of your case. Keep reading to learn more about theft by conversion and how a criminal defense attorney can help you if you are charged with theft by conversion.  

Theft by Conversion in Georgia

A person commits the offense of theft by conversion when, having lawfully obtained funds or other property of another, including but not limited to leased or rented personal property, under an agreement or other known legal obligation to make a specified application of such funds or a specified disposition of such property, they knowingly convert the funds or property to their use in violation of the agreement or legal obligation.

In other words, “theft by conversion” refers to the act of lawfully obtaining someone else’s funds or property, with an agreement or legal obligation determining how those funds or property should be used, and then knowingly using or diverting them for personal gain, thereby violating the terms of the agreement or legal obligation.

For example, let’s say you borrow your friend’s laptop for a week, and you both agree that you will only use it for schoolwork during that time. However, instead of returning the laptop to your friend after the agreed-upon week, you keep it for yourself and start using it for your personal entertainment and work purposes without your friend’s permission. In this scenario, you have committed theft by conversion. 

What are the Elements of Theft by Conversion?

The elements of an offense are the different factors that the State must prove beyond a reasonable doubt to secure a conviction on a particular charge. For the offense of theft by conversion, the State must prove the following:  

  1. Lawful possession: The Defendant must have obtained lawful possession of funds or property. This includes personal property, as well as leased or rented property. 
  1. Agreement or Legal Obligation: There must be an agreement or a known legal obligation between the Defendant and the owner of the funds or property. This agreement or legal obligation specifies how the funds or property should be used or disposed of. 
  1. Specified Application or Disposition: The agreement or legal obligation must outline a specified application of the funds or a specified disposition of the property. In other words, there must be a clear purpose or requirement for using or handling the funds or property. 
  1. Conversion: The Defendant must knowingly convert the funds or property to their use. Conversion refers to intentionally diverting or using the funds or property for personal gain, contrary to the terms of the agreement or legal obligation. 
  1. Violation of the agreement or legal obligation: The conversion must be done in violation of the agreement or legal obligation. The Defendant’s actions must go against the specified terms and requirements outlined in the agreement or legal obligation.

Importantly, the Defendant must intend to convert the property for their own use. In Barrett v. State, the Georgia Court of Appeals noted that the state established only that the Defendant rented video equipment and failed to return the equipment. However, the state failed to show that the Defendant knowingly and with fraudulent intent appropriated the equipment for the Defendant’s own use. As a result, the evidence was insufficient to convict.

Penalties

The consequences for a misdemeanor theft by conversion conviction could include a fine that cannot exceed $1,000.00 or imprisonment for no more than 12 months. However, theft by conversion may be treated as a felony and result in imprisonment of no more than ten years if the price of the services, accommodations, entertainment, or personal property is worth more than $500.  

Lease Agreements

There is a legal presumption of conversion in Georgia for individuals who fail to return leased or rented personal property within five days after receiving a demand letter sent via certified or registered mail or statutory overnight delivery. If they do not comply, the property has knowingly converted the property for their use, violating the lease or agreement.

The court can order a renter who does not comply to pay replacement costs. Replacement costs can include, but are not limited to, the following:  

  1. The market value of the personal property;  
  1. All rental charges from the date the rental agreement was executed until the date that the property was recovered or the date of the trial; and   
  1. Interest on the unpaid balance each month at the current legal rate from the date the court orders the renter to pay replacement costs until the date the judgment is satisfied in full.

Defenses

There are several theft by conversion defenses that your criminal defense attorney can argue based on the facts of your case, including: 

  1. Lack of intent: To be convicted of theft by conversion, the Defendant must knowingly convert the funds or property to their use in violation of the agreement or legal obligation they knowingly convert the funds or property to their use in violation of the agreement or legal obligation. Your criminal defense attorney can argue that you did not knowingly convert the funds for your own use based on the facts of your case.  
  2. Value of Property Not Over $500: If the property is not worth $500, then your criminal defense attorney can argue that you should not be charged with a felony.  
  3. You did not commit the crime: If you were not the person who committed the crime, your attorney could argue that the State is charging the wrong person and that you are innocent.  

Frequently Asked Questions

  • What are theft and conversion? 

Theft is the taking of another person’s personal property with the intent of depriving that person of the use of their property. To deprive means to, without justification, withhold the property of another permanently or temporarily or to dispose of the property in such a way that it is unlikely that the owner will recover the property.

Conversion occurs when a person knowingly converts the funds or property of another to their use in violation of the agreement or legal obligation.

  • What are the elements of conversion? 

A person commits the offense of theft by conversion when:  

  1. Having lawfully obtained funds or other property of another, including but not limited to, leased or rented personal property;  
  1. Under an agreement or other known legal obligation to make a specified application of such funds or a specified disposition of such property;  
  1. They knowingly convert the funds or property to their use;  
  1. In violation of the agreement or legal obligation.
  • What is the statute of limitations for conversion? 

Legal actions for the recovery of personal property must be brought within four years after the theft occurs.

Why You Need a Lawyer for a Theft by Conversion Offense

It is important that you have an attorney who will fight to ensure the State meets its burden in proving that you knowingly converted the property at issue. Your criminal defense attorney will also ensure that the converted property is valued correctly so you are not wrongfully charged with a felony.  

Have Questions? Give Me a Call.

If you or your loved one is charged with theft by conversion, I am here to help. I have decades of experience representing people charged with misdemeanors and serious felonies, and I will make sure you receive the best defense possible. If you need legal help, give me a call today! 

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