What is the Nature of Embezzlement?

Embezzlement refers to the act of appropriating personal property, typically financial in nature, by someone to whom it was entrusted. It is one of the forms of financial fraud. Instances demonstrating embezzlement are: a cashier embezzling cash from his employer, a financial advisor embezzling money from shareholders or a spouse embezzling his partner’s funds. Embezzlement can be minor or critical depending on the amount and scheme involved. Normally, embezzlement is deliberately, systematically and/or meticulously done with an apparent plan to keep other individuals unaware of such activities because it is being perpetrated without their discernment or consent.

Most of time, the trusted person tries to lessen the risk of detection by embezzling merely a small fraction of the total funds received. If carried out with success, the crime can continue for a number of years without being exposed. The embezzlement only becomes apparent to the victim when the funds are already needed or requested for use.

Is embezzlement a statutory offense?

Embezzlement is a kind of statutory offense therefore its definition varies from statute to statute. Generally the offense is constituted by the following:

a. There is a fraudulent

b. There is a conversion -

c. of a property -

d. owned by another person

e. The other person’s ownership is supported by the law

How do you define embezzlement?

Embezzlement is an offense that violates ownership particularly the owner’s right to manage how his property will be used and disposed. Unlike larceny where the least movement of the property together with intent to permanently take away one’s ownership of the property is sufficient, the element of conversion in embezzlement needs to be interfered extensively with the bona fide owner’s property rights. The conversion will only be considered fraudulent if the defendant deliberately converted the property to his own exploitation without claiming any right or error. The kind of property which is the subject of embezzlement differs amongst jurisdictions. The crime is not only limited to conversions of personal property. Generally, embezzlement statutes take in conversion of both tangible and intangible personal property. Real property is not included in the scope of the statute. The most important element is that the defendant must have had legal possession and not merely custody of the property when the fraudulent conversion was perpetrated. If this is proven true, then the offense is embezzlement. If not, then the crime will be referred to as larceny. Finding out whether the nature of the particular person’s possession of the property was legal or custodial is very difficult at times.

This article does not intend to give any legal advice.

Further Reading: Visit the website of Attorneys at Law Will & Will, http://www.willdefendu.com for more information about embezzlement. Helping residents in Southern California.