Embezzlement Law

A type of financial fraud, Embezzlement consists of the misappropriation or secreting of financial assets. This offense is usually executed by one or more individuals to whom the assets have been entrusted.

Embezzlement Law - United States

Embezzlement - Definition

Embezzlement is the act of dishonestly appropriating or secreting assets, usually financial in nature, by one or more individuals to whom such assets have been entrusted. Embezzlement is a kind of financial fraud. For instance, a clerk or cashier handling large sums of money can embezzle cash from his or her employer, a lawyer can embezzle funds from clients' trust accounts, a financial advisor can embezzle funds from investors, or a spouse can embezzle funds from his or her partner. Embezzlement may range from the very minor in nature, involving only small amounts, to the immense, involving large sums and sophisticated schemes.

Embezzlement and Theft - US Code, Chapter 31, Section 656

Title 18, Chapter 31 of the U.S. Code contains sections that deal with the various forms of embezzlement and their penalties. For example, Section 656 covers theft, embezzlement, or misapplication by a bank officer or employee.

Embezzlement of Public Money, Property or Records - US Code, Chapter 31, Section 641

Embezzlement of public money, property, or records is covered in Section 641 of the US Code.

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Since the offense is defined differently in several jurisdictions, the punishment for embezzlement can vary. Generally, the penalty is a fine, imprisonment, or both.

Some states distinguish between grand embezzlement and petit embezzlement on the basis of the value of the property stolen. The former involves property of a greater value and is punishable as a felony, while the latter involves property of a lesser value and is punishable as a misdemeanor.