You took something from work. Maybe it was supplies - pens, paper, a stapler you never returned. Maybe it was time - clocking hours you weren't actually there. Maybe it was data - files you copied onto a personal drive because you thought you might need them later. Everyone does this. It's government property. You figured nobody would notice. It's been years.
The federal government noticed.
18 USC 641 is the federal government's favorite catch-all statute. The same law covers stealing office supplies and orchestrating billion-dollar fraud schemes. The $1,000 threshold separates a misdemeanor from a felony - but prosecutors routinely aggregate small thefts to cross that line. Here's what nobody tells you: the real punishment isn't the prison sentence. It's the career destruction, the security clearance revocation, the pension you'll never collect. And the mistake most people make? Thinking that returning the money fixes the problem. It doesn't. Under 18 USC 641, the crime is complete the moment you convert government property to your own use. Intent to return is not a defense.
Welcome to Spodek Law Group. We handle federal theft of government funds defense nationwide. If you've received a letter from an Inspector General's office, if federal agents have contacted you, or if you're worried that something you did years ago is about to catch up with you - this article explains what you're actually facing under 18 USC 641 and what options exist.
What 18 USC 641 Actually Covers
The language of the statute is brutally broad. It criminalizes whoever "embezzles, steals, purloins, or knowingly converts to his use or the use of another" any record, voucher, money, or "thing of value" belonging to the United States. Thats it. Any thing of value. Federal prosecutors have used this to charge everything from taking home a government-issued laptop to billion-dollar contracting schemes.
What counts as government property under 641:
- Money, vouchers, checks, records, and documents
- Equipment, supplies, vehicles, and physical property
- Data, intellectual property, and classified information
- Your TIME - falsifying work hours is theft of government funds
- Property made or being made under federal contract
The statute also covers receiving, concealing, or retaining property you know was stolen from the government. You dont have to be the one who took it. If you knowingly kept it, your on the hook.
The $1,000 threshold matters enormously. Below that line, you face a misdemeanor with a maximum of one year in federal custody. Above it, your looking at a felony with up to ten years. Federal prosecutors understand this math. When they find multiple smaller thefts, they aggregate them. Ten instances of $200 theft over a year? Thats a $2,000 felony. The pattern becomes the charge.
One theft can trigger multiple charges under different statutes. 18 USC 641 for theft of government property. 18 USC 666 for theft from programs receiving federal funds. 18 USC 1343 for wire fraud if electronic transfers were involved. 18 USC 1028A for aggravated identity theft if you used someone else's credentials. 18 USC 1001 for false statements if you lied to investigators. One act. Five potential charges. Decades of theoretical exposure.
The Breal Madison Jr. case in 2024 shows how these cases escalate. Madison orchestrated a scheme to defraud government agencies through IT contracts - over $7 million. He used the proceeds to buy a yacht, a Lamborghini, multiple other vehicles. Started with government contracting. Ended with a 13-count federal indictment.
The Real Punishment Nobody Talks About
The Federal Sentencing Guidelines use Section 2B1.1 to calculate punishment for theft. Loss amount determines your base offense level. First-time offenders with modest amounts - maybe $15,000, $20,000 - often receive probation or single-digit months in federal custody. Looking at the numbers alone, some people think: okay, maybe six months, I can handle that.
Prison isn't the real punishment.
What actualy destroys people is everything that comes after. You lose your job - immediately, permanently. Your security clearance is revoked. If you had a pension building, it may be forfeit. Professional licenses become complicated or impossible. And the federal felony conviction follows you for the rest of your life. Every job application. Every background check. Every explanation you'll have to give.
The Federal Sentencing Guidelines add enhancements for abuse of position of trust. The very access that made the theft possible - your clearance, your job authority, your trusted position - becomes the reason for additional punishment. These enhancements add two to four offense levels. That translates to six to twelve additional months of imprisonment. Being trusted makes the consequences worse.
Robert Monsen in Utah discovered this in December 2024. He fraudulently collected over $561,000 in Social Security disability and Medicare benefits over 13 years, claiming back injuries while actualy working. His sentence: 18 months federal prison, three years supervised release, restitution of the full amount plus Medicare losses. But the sentence was just the beginning. His career is over. Federal felon. Forever.
Jason Lee Stokes got 18 months for $209,500 in Social Security fraud. Henry Lionel Barber received three years probation with eight months home confinement for $140,000 in theft of government funds. The amounts vary. The amounts vary considerably. The consequence dosent - permanent federal conviction that follows you everywhere.
Federal prisoners serve 85% of their time. There is no parole in the federal system. No early release for good behavior beyond the limited good time credits. When the judge says 18 months, you serve approximately 15 months minimum. The sentence you get is essentially the sentence you serve.
The Mistake That Makes Everything Worse
Your first instinct when you realize there's a problem is to fix it. Return the money. Pay it back. Make the government whole. This feels like the ethical thing to do. The responsible thing. The thing that will make this go away.
That instinct will destroy you.
Intent to return the money is NOT a defense to embezzlement under 18 USC 641. The crime is complete as soon as government property is misappropriated - even if the government ultimatley suffers no financial harm. The statute dosent care that you planned to put it back. It cares that you converted it to your own use. That moment - the moment of conversion - is when the crime happens.
But it gets worse. Voluntary repayment can actually be used as evidence of consciousness of guilt. You returned the money because you knew you shouldn't have taken it. You knew it was wrong. The prosecution uses your ethical response to prove their case. You just handed them evidence of intent.
This is counterintuitive. Doing the right thing - giving it back - becomes the legal problem. It's not fair. But it's how the statute works.
There is one opening, though. 18 USC 641 requires specific intent. The government must prove you KNEW you were converting government property. If the evidence shows the conduct was accidental, in good faith, or based on confusion about policies - prosecution isn't justified. Unclear authorization. Ambiguous guidelines. Genuine belief that you were permitted to use the property. These defenses exist. They require documentation and careful presentation, but they exist.
Todd Spodek understands the distinction between embezzlement - where intent to return is not a defense - and larceny, where intent to permanently deprive IS required. The charging decision matters. The factual record matters. How you respond to investigators matters. Getting counsel early enough to shape the narrative before it's locked in - that matters most of all.
When You Need Help
If your facing a potential 18 USC 641 investigation - whether you've already been contacted by an Inspector General, or whether you're worried about something from the past - Spodek Law Group can help you understand where you actually stand.
We provide honest assessments. Is this at the OIG investigation stage where civil resolution might still be possible? Has it been referred for criminal prosecution? What does the evidence actually look like? What are realistic outcomes - not best-case fantasies, but actual possibilities based on how these cases proceed in federal court?
What we'll evaluate: whether there are intent issues that create a viable defense, whether authorization claims can be substantiated, whether there are constitutional problems with how evidence was gathered, whether there are negotiation opportunities before charges are filed.
Call us at 212-300-5196 for a free consultation. The earlier you have counsel, the more options remain on the table. Waiting until federal agents are at your door means the investigation has already shaped the narrative without your input.
Don't try to return the money without counsel. Don't talk to investigators without counsel. Don't destroy documents. Don't discuss this with anyone who might be involved.
Were here when you need us.
