Embezzlement is the fraudulent transfer of funds from one party to another without the original party’s knowledge or approval. It is a white-collar crime that occurs in office environments and is classified by the value of the stolen funds. Penalties range from repayment to prison time. Embezzlement is different from theft, which involves taking physical property with the intent to permanently deprive the owner.
Embezzlement is a criminal charge that refers to the misappropriation of at least a certain amount of funds by one party to another. Commonly referred to as a white-collar crime because it normally occurs in office environments, its severity is classified according to the value of the stolen items. The penalty ranges from repayment of funds to several years in prison. There is a difference between embezzlement and theft.
Misappropriation, by definition, refers to the fraudulent concealment of the transfer of funds from one unsuspecting party to another party who has knowledge of the transfer. The actual transfer is done legally and is not stolen explicitly, such as in a bank robbery. The key is that in the event of an embezzlement, the party that originally had the funds is unaware of, or has not given approval to, this transfer.
One commonality among crime cases is that most take place in office settings. An example would be a lawyer embezzling money from a client’s trust fund. Financial advisors have been convicted of embezzling fortunes from clients by directing funds from investments into their own bank accounts.
Whether a case of embezzlement qualifies as a crime is determined by the value of the funds stolen from the owner. Using this logic, law enforcement agencies categorize this crime into different levels of severity. Different jurisdictions may have different monetary values for each embezzlement classification, but they generally follow a similar pattern. An example would be in the state of Wisconsin in the United States, where any embezzlement of less than $2,500 US Dollars (USD) is a misdemeanor, embezzlement of $2,500 to $5,000 USD is a Class I felony, embezzlement Embezzling $5,000 to $10,000 USD is a Class H felony, and embezzling more than $10,000 USD is a Class G felony.
Penalties for these crimes differ between jurisdictions, but usually result in a fine, jail time, or both. In the United States, for example, the crime of embezzlement usually earns a fine and possibly probation. Embezzlement, on the other hand, can lead to a very large fine and a prison sentence. The severity of the sentence depends on the amount of money embezzled and on any criminal record of the defendant.
An embezzlement charge is often confused with theft, but these two crimes are different. Theft refers to the taking of personal property from an owner with the intent to permanently deprive the owner of that property. The difference between embezzlement and theft is that embezzlement is not about physical property.
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