Theft of Government Property – 18 U.S.C. § 641 Sentencing Guidelines

Thanks for visiting Federal Lawyers, a second-generation firm managed by our lead attorney with over 40 years of combined experience. When federal prosecutors charge theft of government property under 18 U.S.C. § 641, they’ve decided that taking, converting, or selling property belonging to the United States warrants federal rather than state prosecution. The statute covers everything from stealing staplers from federal offices to multi-million-dollar defense contract frauds. Maximum sentence depends on value: misdemeanor with one year maximum if property is worth $1,000 or less; felony with ten years maximum if it exceeds that threshold.

Here’s what troubles defense attorneys about Section 641: the statute criminalizes “converting to his use or the use of another” government property. That language is broad enough to prosecute federal employees who take home office supplies, contractors who repurpose surplus materials, and anyone who uses government resources for purposes beyond their authorized scope. The line between criminal conversion and acceptable personal use often gets drawn after the fact by prosecutors looking to charge someone they’ve targeted for other reasons.

What Counts as Government Property

The statute protects property owned by or in the possession of federal agencies, departments, or government corporations. Obvious examples include computers, vehicles, weapons, and office equipment purchased with taxpayer money. Less obvious: government-funded research data, proprietary information developed under federal contracts, materials purchased by contractors using government funds.

Federal courts have interpreted “property” expansively. Intellectual property qualifies—stealing classified documents, copying proprietary research, misappropriating trade secrets developed under government contracts. Even intangible property like honest services can fall under Section 641 in some circuits, though that interpretation remains contested after the Supreme Court narrowed honest services fraud in Skilling v. United States.

Time also counts as property. Federal employees who work on personal projects during duty hours, contractors who bill the government for time spent on private work, anyone who steals government-paid time faces Section 641 liability. That’s right—browsing Facebook on a federal computer during work hours is technically theft of government property if prosecutors want to charge it that way.

The Value Question

Everything turns on whether stolen property exceeds $1,000 in value. Below that threshold, Section 641 is a misdemeanor carrying one year maximum and typically resulting in probation for first offenders. Above it, you’re facing a felony with ten years maximum exposure.

How do prosecutors value stolen property? Market value at time of theft. For tangible items like computers or vehicles, that’s straightforward. For intangible property—proprietary research, classified information, time—valuation becomes an art project. Prosecutors hire experts who calculate development costs, replacement expenses, or market value if the information were sold. These valuations can be wildly inflated. Defense must retain competing experts to challenge government’s numbers, because the difference between $999 and $1,001 determines misdemeanor versus felony classification.

Who Gets Prosecuted Under Section 641

Federal employees who steal from their agencies. Contractors who divert government-purchased materials to personal use. Veterans who fraudulently obtain VA benefits by providing false information. Anyone who knowingly receives, conceals, or retains stolen government property. The statute isn’t limited to theft by government insiders—ordinary citizens who knowingly buy stolen military equipment, purchase pilfered federal property at suspiciously low prices, or fence goods they know came from government facilities face prosecution.

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But here’s what actually drives most Section 641 prosecutions: retaliation and leverage. Federal agencies discover employees they want to fire for unrelated reasons, then scrutinize those employees’ computer usage, office supply consumption, personal phone calls made on government phones. Suddenly what every employee does—occasional personal internet use, taking home pens, making doctor’s appointment calls during lunch—becomes federal theft. Or prosecutors investigating contractors for major fraud add Section 641 counts for minor property misuse to pile on charges and create plea leverage.

Legal Scenario: What Would You Do?

Scenario

You work as a civilian contractor at a military base and have been accused of taking surplus computer equipment that was scheduled for disposal. Federal agents showed up at your home with a search warrant and seized several laptops and hard drives, and now you've received a target letter from the U.S. Attorney's office referencing 18 U.S.C. § 641.

What kind of sentence am I facing for theft of government property, and does it matter that the equipment was going to be thrown away anyway?

Attorney's Answer

Under 18 U.S.C. § 641, if the value of the stolen government property exceeds $1,000, you face up to 10 years in federal prison and a fine of up to $250,000; if the value is under $1,000, it's a misdemeanor carrying up to one year. The fact that the equipment was designated for disposal does not automatically create a defense — until the government formally transfers or abandons the property through proper channels, it remains government property under the statute. Your sentencing exposure under the U.S. Sentencing Guidelines will depend heavily on the calculated loss amount, your role in the offense, and whether you have any prior criminal history. An experienced federal defense attorney can challenge the government's valuation methods, argue for a lower Guidelines range, and potentially negotiate a disposition that avoids the most severe consequences.

This is general information only. Contact us for advice specific to your situation.

The statute’s breadth means prosecutors can charge almost anyone who interacts with government property if they look hard enough. That discretion, combined with minimal judicial oversight of charging decisions, makes Section 641 a powerful tool for prosecutors targeting defendants they’ve decided to pursue.

Sentencing Under the Guidelines