Theft by Conversion

Authored by , LegalMatch Law Library Managing Editor and Attorney at Law

Locate a Local Real Estate Lawyer

Most Common Real Estate Issues

What is Theft by Conversion?

Theft by conversion occurs when a person lawfully obtains possession to the personal property or funds of another, and then converts the property into funds for their own use and without the person’s permission.  This usually occurs in connection with a rental agreement, wherein the owner lends property to the defendant, who then keeps the property without returning it, or sells the property and keeps the profit for themselves. 

Theft by conversion is therefore usually dependant on some sort of lease or usage agreement between the owner and the defendant.  In some cases, theft by conversion occurs when a person invests funds in a manner that is contrary to the lender’s instructions regarding the funds.

What are Some Examples of Theft by Conversion?

A common example of theft by conversion is when a person obtains possession of a car through a car rental agreement.  If instead of returning the car the person keeps the car for themselves, or sells it in an unauthorized manner for profit, they might face charges for theft by conversion. 

Again, the key element is that the person obtained possession of the property in a lawful way, but then used it in an unlawful manner for their own gain.  This is different from other forms of theft where possession is obtained through force or threats of force (as in armed robbery).  Deception is often a main element in theft by conversion.

Some other examples of theft by conversion may involve:

What are Some Legal Penalties for Theft by Conversion?

Generally speaking, the legal penalties for theft by conversion may require that the defendant:

In some cases, the plaintiff can also recover other costs associated with the violation, such as a loss of wages or profit if the theft occurred in connection with employment or business.

Defenses to conversion may include the consent or approval of the property owner; abandonment of property by the owner; inability to identify the property; or others such as a failure to file a lawsuit in the proper time period (statute of limitations issue).

Do I Need a Lawyer if I Have Issues With Theft by Conversion?

Theft by conversion occurs more frequently than most people know.  However, some people may not be able to recover their losses because they don’t know how to proceed.  You may wish to contact a lawyer if you believe that you have a claim for theft by conversion.  Your lawyer can help you file your claim, and can represent you in court during formal hearings.

Consult a Lawyer - Present Your Case Now!
Last Modified: 12-12-2012 01:40 PM PST

Find the Right Lawyer Now

Did you find this article informative?

Link to this page

Law Library Disclaimer

Theft by Conversion, theft,conversion,rental agreement,lease,penalties,legal,law,lawyer,attorney