What are the Types of Embezzlement?
Embezzlement refers to when a person in a position of trust fraudulently uses that trust to unlawfully obtain access to another person’s funds or property for their own gain. Embezzlement can occur in a number of ways. A cashier may take money from a register, a financial manager may reroute funds to their own bank account, or a family member can even mis-manage a trust fund.
Unlike other types of theft, embezzlement specifically requires a breach of trust between the victim and the accused. Below, our Fort Lauderdale white collar crimes lawyer explains the different types of embezzlement.
Embezzlement by an Employee
Embezzlement by an employee is one of the most common types. It occurs when an employee misappropriates money or property from their employer. An employee may not properly record a transaction or sale so they can steal the money. Employees in these situations often take measures to ensure their actions will not be recorded, such as making a sale without providing a receipt.
Employees can also commit embezzlement when they submit fake expense reports to be reimbursed for inflated or non-existent business expenses. Embezzlement by an employee is very hard to identify, particularly when the worker is in a trusted position or has a good reputation.
Embezzlement by a Bank
Embezzlement by a bank occurs when a bank employee misappropriates funds, either from the bank itself or from a customer. An employee may create a false withdrawal from a customer’s account or create fake accounts to reroute funds. A bank employee may also manipulate a loan application to grant an accomplice or themselves a loan they do not intend to repay.
Federal law takes embezzlement by a bank very seriously, as it undermines the public’s trust in these institutions and can affect the larger economy.
Embezzlement by a Corporation
Embezzlement by a corporation is also quite common. This type of embezzlement offense involves high-ranking employees or executives that take advantage of their position to misappropriate resources or funds. A corporate executive may artificially inflate the value of company shares to sell them for a profit. Or, a corporate officer may divert corporate funds for personal expenses such as a home or vacation under the disguise of business expenses.
Cases involving corporate embezzlement are typically high-profile because they impact a large number of people, such as employees, investors, and consumers. Corporate embezzlement is another very common type of this offense.
Our White Collar Crime Lawyer in Fort Lauderdale Can Help with Your Charges
Being charged with theft, and especially embezzlement-type offenses, is very daunting. The criminal penalties for this offense are very harsh, and are often charged under federal criminal law. At Haber Blank, our Fort Lauderdale white collar crime lawyer can provide the legal advice you need and craft a strong legal defense so you obtain the best possible outcome with your case. Call us today at 954-767-0300 or chat with us online to schedule a consultation with our experienced attorney and to learn more about how we can help with your case.
Source:
law.cornell.edu/uscode/text/18/part-I/chapter-31
