One type of theft offense that often occurs is embezzlement, which involves someone within an organization who unlawfully diverts company property for their financial gain. These offenses are most commonly committed by an employee who is trusted with managing the organization’s finances. Often the theft will go undetected for long periods. In more than 28% of cases, the crime continues for more than five years.
Understanding Embezzlement
The crime of embezzlement involves theft, which is an act that deprives a rightful owner of their property. This form of theft is committed by an individual that is operating in a fiduciary role for the property owner. A fiduciary is translated in Latin as “to trust.” In this context, the crime is committed by a professional who is employed or contracted by an organization. Examples may include an accountant, attorney or employee.
Examples of Embezzlement:
- Funds are diverted from a company bank account for personal use
- Engaging in a scheme with a third-party contractor to submit payment(s) for nonexistent products or services
- An employee using a company credit card or petty cash for personal expenses
- The manipulation of data used in payroll generation to obtain additional compensation
Theft by Unlawful Taking or Disposition (§3921)
This is a charge that may apply to embezzlement cases. The offender intentionally deprives or otherwise unlawfully disposes of the property of another. This form of theft may involve moveable or unmovable property.
Theft by Deception (§3922)
This is a theft offense that may be committed by an offender who “creates or reinforces a false impression” or hinders someone’s ability to obtain information that is likely to “affect his judgment of a transaction.” Deception may be used intentionally by someone functioning in a “fiduciary or confidential” role.
Misapplication of Entrusted Property (§4113)
This is a theft offense that applies specifically to property that belongs to a government entity or financial institution. The offender is acting in a fiduciary role when they handle the organization’s property in a manner that creates a “substantial risk of loss or detriment.”
|
Level of Offense |
Amount |
Maximum Incarceration |
Maximum Fine |
|
First-Degree Felony |
More than $500,000 |
20 years |
$25,000 |
|
Second-Degree Felony |
Between $100,000 and $500,000 |
10 years |
$25,000 |
|
Third-Degree Felony |
Between $2,000 and $100,000 |
7 years |
$15,000 |
|
First-Degree Misdemeanor |
Between $200 and $2000 |
5 years |
$10,000 |
|
Second-Degree Misdemeanor |
Between $50 and $200 |
2 years |
$5,000 |
Offender Restitution (§1106)
In addition to any penalties imposed, a convicted offender may be ordered to make restitution to a victim for property “stolen, converted or otherwise unlawfully obtained.” If an offender is ordered to make restitution, it may be formally required for compliance with their probation or parole. Those who fail to comply with an order for restitution may be charged with contempt of court or face consequences associated with a probation or parole violation.
Experienced Defense Lawyer for Theft Offenses
Have you been charged with a serious theft offense such as embezzlement? Our Criminal Law Team has spent many years effectively representing clients in the Northampton area criminal courts. In addition to penalties such as fines and incarceration, those convicted of these types of crimes may have difficulty in obtaining employment due to their criminal record. Contact the office today at (888) 535-3686 for a consultation.