Embezzlement charges in Texas for physicians and other medical professionals not only mean they are facing criminal charges, but they may also face a Board investigation. In Texas, embezzlement refers to the fraudulent taking of property by someone entrusted with it, most often involving the taking of money.
Texas licensing agencies generally do not wait for a criminal court case to resolve. They evaluate the same allegations on their own terms, under their own standards, and on a timeline that has nothing to do with the criminal case. At Lype, Dest & Smith, our Texas Professional License Defense Lawyer represents licensed professionals navigating both tracks at once, and we understand what Professional License Defense requires when criminal and regulatory pressure arrive together.
An allegation alone, particularly one involving dishonesty or the improper handling of money, raises fundamental questions about whether that professional can be trusted to act in the best interests of patients, clients, or the public.
What separates embezzlement from many other criminal charges is where it lands on a board’s list of concerns. A theft allegation tied to a professional role, whether billing fraud, stealing from patients, or skimming from an employer, tells a board something specific: that the person accused may have used their position to take advantage of others. Boards treat it accordingly, regardless of what happens in criminal court.
Facing embezzlement charges in Texas means a board inquiry may begin before a criminal case ever reaches a courtroom, triggered by a complaint, an employer report, or a mandatory notice from the criminal process. Texas Penal Code § 31.02 does not treat embezzlement as a standalone charge in Texas. It is folded into the state’s general theft statute, which covers a wide range of conduct involving the unlawful taking of another person’s money or property.
For physicians specifically, the Texas Medical Board receives complaints from patients, employers, and colleagues, and evaluates whether the alleged conduct indicates a licensee is not fit to practice and/or constitutes a violation of the Medical Practice Act or Board rules. Nurses, dentists, and other licensed professionals answer to their own respective boards, each operating under separate rules and procedures.
Criminal charges do not stay private when a professional license is involved. Some Texas licensing boards have rules that require licensees to come forward on their own, without waiting to be asked, while others require licensees to disclose on an initial or renewal application.
Many Texas licensing statutes require professionals to notify their licensing board directly of any criminal charges, arrests, or formal investigations within a set timeframe. Failing to report on time may itself constitute a separate violation, compounding the original problem.
What situations require a disclosure, the deadline for reporting, and the format required vary across boards. Professionals who leave this to their criminal defense attorney, without confirming whether that attorney handles licensing disclosure, often find the obligation was never addressed or that they did not receive appropriate advice.
A dismissal, acquittal, or deferred adjudication, which is a plea arrangement where charges may be dropped after meeting certain court conditions, does not automatically resolve a board investigation. Licensing boards operate under their own rules of evidence and proof, not the criminal standard of beyond a reasonable doubt, and may find enough reason to pursue discipline based on the same facts that a criminal court resolved in the professional’s favor.
For physicians, what follows can range from mandatory continuing education and fines to restrictions on practice, suspension, or revocation, all on the board’s own timeline, not the court’s.
For professionals who walked out of court thinking the matter was behind them, a board inquiry can feel like starting over. Our page on “What Professional License Can a Convicted Felon Get” addresses related questions for professionals navigating licensing consequences after a criminal resolution.
Embezzlement charges in Texas set two separate processes in motion, and each carries its own timeline, standards, and consequences for your license. Lype, Dest & Smith defends licensed professionals across Texas facing board scrutiny tied to criminal allegations, from the first disclosure obligation through formal hearings. Call us today at (512) 881-3556 to discuss your situation and take the first step toward protecting your license and your career.
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A thorough and experienced lawyer. We are grateful to have Dan and his staff helped us with our case, dealing with Texas Medical Board. Dan is honest, experienced and very thorough. He was supportive throughout the proceedings. His caring and calm nature has made us feel at ease during the whole process. His office staff was professional and responsive. Dan responded to our phone calls and emails promptly. We wholeheartedly recommend Dan and his firm without any reservation.
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Not afraid to go to court when necessary, Dan has successfully litigated cases all the way to the Supreme Court of Texas. Dan also prides himself on being readily available to clients throughout their cases. He strongly believes effective representation should be a collaborative effort between a client and their attorney.
Years of experience: 15 years
Justia Profile: Dan Lype
Bar number: 24065658
Location: Austin, TX
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