Misapplication of Fiduciary Property or Property of a Financial Institution
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Misapplication of Fiduciary Property or Property of a Financial Institution

Posted On - August 28th, 2012 | By Tim Clancy | Category - Criminal Defense

Have you or someone you know been accused of or charged with the misappropriation or misapplication of funds or property entrusted to them? Have you been charged with using trust property for your own benefit, or with treating estate or other property as if it was your own? Texas has broad laws governing the use of property by a fiduciary. The charges can range from a Class C misdemeanor to a first degree felony, based on the amount or value of property that is “misapplied.” If you are under investigation for or have been charged with misapplication of fiduciary property, you want an experienced and knowledgeable lawyer to protect your rights.

At The Law Office of Kevin Clancy & The Law Office of Tim Clancy, we offer almost 50 years of combined legal experience to people in and around the Dallas-Fort Worth Metroplex who face criminal charges. We will aggressively protect your constitutional rights, conducting a full investigation of the facts and circumstances of your arrest, to make certain police and prosecutors followed procedure when obtaining evidence. Attorney Kevin Clancy is a former prosecutor who knows firsthand how the state prepares and presents criminal cases. We know what to anticipate, and can help you take proactive measures to protect your rights.

The Texas Laws on Misapplication of Property

If you are a fiduciary in Texas, or have access to funds or property of a financial institution, you can face criminal charges for “misapplication” of funds or property entrusted to you. The statute applies to trustees, guardians, administrators, executors and conservators, as well as individuals who have been given a power of attorney. You can also be charged if you are an officer, manager, employee or agent of a fiduciary.

The definition of “misapply” is fairly broad under the statute. You can be charged if you have acted in violation of an agreement, such as a trust document. You can also be charged with your actions are contrary to existing laws governing the custody or disposition of property for which you are a fiduciary.

An effective defense to a charge of misapplication of fiduciary property is the lack of intent. The statute is designed to punish intentional, knowing or reckless misapplication of property. If you can show that the improper use or application of the property was the result of mere negligence, the statute does not apply.

Contact Our Office

For a confidential consultation with an experienced Texas criminal defense attorney, contact us online at or call (214) 550-5771.

Attorney Kevin Clancy is AV-rated under Martindale-Hubbell’s peer review rating system.