Michigan Theft and Larceny Charges

If you’ve been charged with larceny, retail fraud, embezzlement, or receiving stolen property anywhere in Northern Michigan, the team at Neumann Law Group can help. Theft cases turn on provable value, intent, and the source of the goods, and each of those is a place to push back. We handle theft charges throughout Grand Traverse County and the surrounding region, from the 86th District Court in Traverse City to the 84th District Court in Cadillac.

There’s also a record-protection layer that many people miss. A theft conviction is one of the offenses employers screen for most aggressively, but Michigan law offers several ways to keep one off your record, especially for younger defendants and first offenses. The earlier we get involved, the more of those options stay open.

How Does Michigan Decide if Theft Is a Misdemeanor or a Felony?

Michigan’s general larceny statute, MCL 750.356, sorts theft into tiers based on the value of the property. Below $200, larceny is a misdemeanor carrying up to 93 days in jail. From $200 to under $1,000, it’s a one-year misdemeanor. At $1,000 to under $20,000, the charge becomes a felony punishable by up to five years. And property valued at $20,000 or more is a felony with up to 10 years in prison.

Because those lines are sharp, value is frequently the entire fight. Prosecutors tend to charge at the high end, using replacement cost or retail price, when the real fair-market value of used goods is lower. Establishing the correct value can pull a case from felony territory down to a misdemeanor, and that single move changes everything from the maximum penalty to whether the conviction shows up as a felony forever.

Two wrinkles catch people off guard. Michigan allows the prosecution to aggregate the value of multiple thefts committed under a single scheme, so a series of small takings can be combined into a felony. And prior theft convictions enhance the charge, meaning a low-value offense that would normally be a misdemeanor can be elevated based on your record. Certain theft offenses carry felony exposure regardless of value, including larceny from a person under MCL 750.357, which is a 10-year felony even when the amount is small.

What Is Retail Fraud, and How Is It Different From Shoplifting?

“Shoplifting” is the everyday word; “retail fraud” is what Michigan actually charges. The offense is graded by degree, and the dollar value again sets the level. Third degree retail fraud, for property valued under $200, is a 93-day misdemeanor under MCL 750.356d. Second degree, covering $200 to under $1,000, is a one-year misdemeanor. First degree retail fraud, at $1,000 or more, is a felony punishable by up to five years under MCL 750.356c.

Retail fraud covers more than walking out with merchandise. It includes switching price tags, under-ringing items, and fraudulent returns, and it applies even to attempts, so you can be charged without leaving the store. Prior convictions can also bump a low-value case up a degree.

Many clients are confused by a letter that arrives weeks after the incident demanding a few hundred dollars from a retailer’s law firm. That civil demand is separate from the criminal case. Paying it does not make the criminal charge disappear, and ignoring it does not add to your criminal exposure. We sort out which letters require a response and which don’t, and we focus on the part that actually affects your record, which is the criminal charge itself.

What About Embezzlement and Employee Theft?

Embezzlement is theft by someone who was trusted with the property, typically an employee, bookkeeper, or volunteer treasurer. Michigan charges it under MCL 750.174, with penalty tiers that track the larceny scale: the higher the alleged amount, the more serious the felony, climbing to 20 years for the largest cases. Because these cases often involve months of transactions, the alleged total can balloon quickly, and the same value-aggregation issues that arise in larceny appear here.

Embezzlement cases also tend to overlap with financial and document allegations, which can pull in additional charges. When a case involves falsified records, forged checks, or broader financial schemes, it often crosses into the territory covered on our Michigan fraud and white collar crimes page. The defense usually centers on intent and accounting, because the prosecution has to prove you took the property intending to keep it, not that money simply went missing or that records were sloppy. A forensic look at the books frequently shrinks the alleged loss, which in turn shrinks the charge.

Can a Theft Charge Be Kept Off My Record?

Often, yes, and several paths exist. For younger defendants, the Holmes Youthful Trainee Act can resolve a theft case with no public conviction, which we cover in depth on our Michigan juvenile crimes and HYTA page. Many district courts also run diversion or deferral programs for first-time, low-value theft, where completing conditions leads to a dismissal.

When a conviction does enter, Michigan’s Clean Slate Act, MCL 780.621, allows most theft convictions to be set aside after the waiting period, with the 2021 expansion permitting expungement of more offenses than the old law ever did. The full eligibility framework is on our Michigan Clean Slate Act expungement page.

Restitution often unlocks the best outcome. Under the Crime Victim’s Rights Act, MCL 780.766, restitution is mandatory, and paying the alleged loss early can give us real leverage to negotiate a reduced charge, a diversion, or a dismissal, because a restored victim removes much of the pressure to convict. We build that into the strategy from the first meeting rather than treating it as an afterthought at sentencing.

Talk to a Northern Michigan Theft Defense Lawyer Today

A theft charge often comes down to a number you can contest and a record you can protect, but both depend on getting ahead of the case early. Call Neumann Law Group at (800) 525-6386 for a free consultation. Our Traverse City attorneys defend larceny, retail fraud, and embezzlement charges throughout Grand Traverse County and across Northern Michigan, and we’ll give you a straight read on whether your case is a felony, a misdemeanor, or something we can keep off your record entirely.

Frequently Asked Questions About Michigan Theft Charges

Q: At what dollar amount does theft become a felony in Michigan?

A: Under MCL 750.356, larceny becomes a felony at $1,000. Below that, it’s a misdemeanor, though prior convictions and aggregated values from multiple thefts can push a case over the line.

Q: Is retail fraud the same as shoplifting?

A: Yes. Michigan charges shoplifting as retail fraud, graded first, second, or third degree by the value of the merchandise under MCL 750.356c and MCL 750.356d. It also covers price-tag switching and fraudulent returns, including attempts.

Q: Do I have to pay the civil demand letter from the store?

A: That letter is a separate civil matter from your criminal case. Paying it does not dismiss the criminal charge, and not paying it does not increase your criminal exposure. We help sort out how to handle it.

Q: Can a theft conviction be expunged in Michigan?

A: Most theft convictions can be set aside under the Clean Slate Act, MCL 780.621, after the waiting period. Younger defendants may avoid a public conviction altogether through HYTA or a diversion program.

Q: Will paying restitution help my case?

A: Restitution is mandatory under MCL 780.766, and paying it early often creates leverage to negotiate a reduced charge or a dismissal. A victim who has been made whole removes much of the incentive to push for a conviction.