Sometimes referred to as financial fraud, embezzlement occurs when a person intentionally uses or diverts assets away from their intended purpose. Those who commit embezzlement often use the pilfered assets for their personal gain.
The penalties for those found guilty of embezzlement can be severe. An embezzlement conviction can have a significant and long-term negative impact on your reputation. Some individuals may discover it's difficult to find employment after an embezzlement conviction, even if they avoid jail time or after they complete the terms of their sentencing.
If you're facing embezzlement charges, you need help. Allegations of embezzlement can have a long-ranging effect on your life, your reputation, and your career.
The LLF Law Firm Criminal Defense Team advocates for clients and makes sure they have all of the information they need to navigate the criminal defense process. Call us at 888-535-3686 or fill out our online form.
What is Embezzlement?
Similar to theft, embezzlement involves taking property that belongs to someone else. Embezzlement differs from theft in that the person who commits the crime has temporary custody or control of the property.
In other words, Person A legally had custody or control of the property with the consent of Person B, who actually owns the property. At some point, Person A does something that makes their custody or control of the property illegal, such as transferring money into their personal bank account.
In general, embezzlement occurs when people are in a position of trust to control or handle money or other assets. They violate their position or relationships to take control of the assets, usually for their benefit.
Embezzlement often occurs in employment situations. This can range from a cashier skimming off the cash drawer to an executive filing false expense reports.
News reports regularly detail bookkeepers, accountants, and office managers using their positions to skim accounts. For example, in 2025, a Pennsylvania accountant pleaded guilty to over 200 counts after embezzling $68,000 from a family-owned company. As part of her plea deal, she has to pay back the full amount.
This case also highlights that someone who commits embezzlement is often charged with other crimes. In this case, the accountant's plea also included check forgery.
In a 2020 federal case, a former office manager at a Uniontown medical group was sentenced to 28 months in prison after embezzling over $900,000 from her employer. She was also convicted of wire fraud and tax fraud.
Even if not convicted, accusations of embezzlement can potentially have serious implications for someone's career and reputation. In 2023, the former University of New Mexico Athletic Director was acquitted of embezzlement charges. He was alleged to have used school funds to pay for a golf trip to Scotland. While he was acquitted, he stepped down from his position due to the allegations against him.
The New Mexico case highlights the importance of a strong defense. Even if acquitted, accusations of embezzlement alone can be enough to negatively affect your reputation and career.
Embezzlement at the Federal Level
At the federal level, embezzlement may be viewed as an umbrella term for illegal taking and possession of funds or other property. Chapter 31 of the U.S. Code has over two dozen laws outlawing different types of embezzlement. Some examples:
- Bank employees who embezzle from their employer may be fined up to $1,000,000 and face up to 30 years in prison.
- Anyone who embezzles money or property from an estate faces up to five years in prison.
- Laws can also affect those convicted of embezzlement. Anyone who registers as a political lobbyist must disclose their conviction.
These laws also cover banks and other financial institutions that are negligent in protecting their managed or deposited assets. In some cases, this negligence becomes a type of embezzlement, and individuals may be fined up to $1,000 or imprisoned for up to one year.
Elements of Embezzlement
The U.S. Code contains a specific law about embezzling public money and property. While different laws may have different requirements for conviction, this law provides a good overview of the general elements of embezzlement.
Under this law, a person is guilty when they're an employee or representative of a state or federal government, organization, or Indian tribal government and:
- The person had either trust or a fiduciary relationship with the state or federal government, organization, or Indian tribal government
- The person came into possession of the property because of their employment
- The person fraudulently converted or appropriated the property for their use
- The person intended to deprive the property's rightful owner of their use of that property
Intent and Embezzlement
Federal courts have found that intent doesn't mean someone intended to permanently seize control of the property. Someone who planned to return the property may still be guilty. In other words, even if someone temporarily “borrows” the property, they may still be guilty of embezzlement.
For example, a bookkeeper needs $10,000 for medical bills and takes it from their employer's bank accounts. The bookkeeper plans to pay back the money, but the employer notices the missing money before the bookkeeper can return the funds.
It doesn't matter that the bookkeeper intended to return the money or why they needed the money, no matter how ‘good' the reason. The bookkeeper knew they were taking the money from their employer and that their actions weren't authorized or part of their job.
Embezzlement in Pennsylvania
Pennsylvania folds embezzlement into its criminal laws on theft. Similar to federal law, embezzlement charges often involve other charges. Criminal charges that often accompany embezzlement allegations such as forgery or fraud.
Embezzlement doesn't always involve millions or even hundreds of thousands of dollars. A cashier at a clothing store who steals $60 out of a cash drawer is guilty of embezzlement.
What differs between stealing $60 and $600,000 is the potential penalties. Pennsylvania recognizes different levels of theft, and the value of the stolen property influences the level at which someone is charged with a crime.
The levels of theft in Pennsylvania:
- Theft is a felony of the first degree when it involves property valued at $500,000 or more.
- Theft is a felony of the second degree when it involves property valued between $100,000 and $500,000. It may also be a second-degree crime when it occurs during a disaster.
- Theft is a felony of the third degree when it involves property valued between $2,000 and $100,000.
In Pennsylvania, misdemeanor theft cannot involve any breach of a fiduciary duty. Individuals may also face charges of theft by deception, such as when someone forges documents such as bank statements to hide their activities.
The state also has laws that focus on the financial exploitation of older adults or other individuals who are “care dependent.” When someone is in a position of trust, financial exploitation involves any unauthorized taking or withholding of a care-dependent adult's money or other assets.
Failing to properly transfer or distribute funds can also result in criminal charges. This occurs when someone treats those assets as their own instead of paying or distributing them to the intended parties.
Remember that criminal charges don't automatically mean guilt. The LLF Law Firm Criminal Defense Team works with clients to achieve the best possible resolution for their situation.
Related Charges
Individuals who are guilty of embezzlement are often charged under multiple laws or other laws. This is true for both federal and Pennsylvania cases.
For example, under federal law, a Massachusetts bank employee pleaded guilty to embezzlement by a bank employee and aggravated identity theft.
In 2022, a Canonsburg accountant pleaded guilty to his role in a $6.8 million embezzlement scheme. He used the money to purchase several cars, including an Aston Martin. His plea included charges of fraud conspiracy, money laundering conspiracy, and tax fraud.
Charges may not always state embezzlement. Even if embezzlement is one of the charges, a case may include additional charges that relate to the embezzlement or make the embezzlement possible, such as wire fraud.
One other thing worth noting: Both the IRS and Pennsylvania require taxpayers to pay taxes on all income. This includes include income earned from illegal activities. As demonstrated by the Canonsburg case, individuals may face charges for both embezzlement and failure to pay taxes on the embezzled money.
Even if charges don't state embezzlement, the actions in question may be embezzlement. The LLF Law Firm Criminal Defense Team works with our clients to help them understand these differences and how to navigate different charges that relate to white-collar crimes.
Protect Your Reputation
Like many white-collar crimes, a charge of embezzlement carries with it an element of mistrust. It suggests that the person charged is untrustworthy with other people's money or assets.
Even an untrue charge of embezzlement can have a negative impact on someone's reputation, career, and relationships. Mounting a strong defense to push back against the charges is crucial.
The LLF Law Firm Criminal Defense Team works with individuals defending against state and federal embezzlement charges. Call us at 888-535-3686 or fill out our online form.
