Federal Embezzlement

In Moore v. United States, 160 U.S. 268, 269 (1895), the Supreme Court defined embezzlement as the fraudulent appropriation of property by a person to whom such property has been entrusted, or into whose hands it has lawfully come. It differs from larceny in that the original taking was lawful, or with the consent of the owner, while in larceny the felonious intent must have existed at the time of the taking.

To prove the crime of embezzlement under 18 U.S.C. §  666(a)(1)(A) the United States must establish the following specific elements in addition to the general elements:

1. there was a trust or fiduciary relationship between the defendant and the private organization or State or local government agency;
2. the property came into the possession or care of the defendant by virtue of his/her employment;
3. the defendant’s dealings with the property constituted a fraudulent conversion or appropriation of it to his/her own use; and
4. the defendant acted with the intent to deprive the owner of the use of this property.

The requirement that the defendant act with the intent to deprive the owner of his property makes embezzlement a specific intent crime. See United States v. May, 625 F.2d 186, 189-90 (8th Cir. 1980). It should be noted, however, that the intent required to violate the law is not an intent to deprive another of his/her property permanently. Therefore, even if an individual intends to return the property, his/her actions are still illegal. In short, restoration of the property illegally taken is no defense to embezzlement. 

Examples of Embezzlement

Embezzlement is a complex criminal charge that involves the unlawful appropriation of funds or property entrusted to one’s care, often occurring within corporate environments where individuals have access to significant financial resources. Many believe it’s conducted within secrecy, shadowed by an air of sophistication or concealed behind high-caliber corporate veils. Yet, this isn’t always the case.

For instance, consider an officer of an Alabama corporation, entrusted with the fiscal responsibility for his company. Seduced by personal financial strains, he begins subtly diverting company funds into a private account. Seemingly small, insignificant amounts at first, and he frames these actions as accounting errors when questioned. Over time, this subtly accumulated wealth might snowball into an astronomical sum, resulting in severe penalties under Alabama law if caught.

In another scenario, envision a non-profit California organization where a trusted treasurer misrepresents the costs of a fundraiser, pocketing the inflated amount. This deviation, if caught, may expose the treasurer not just to heavy penalties but also to a hefty blow to their reputation, both personally and professionally.

These are just a few hypothetical cases of embezzlement. In reality, these circumstances can vary greatly and don’t always fit within common stereotypes. The intricacies of such cases necessitate guidance from a team of experienced legal representatives. Our law firm provides robust representation for individuals who, like the fictional characters above, find themselves under the daunting microscope of embezzlement charges. Dealing with these accusations calls for a savvy, knowledgeable team that understands the complexities involved and is capable of fighting vigorously to protect your interests. We promise to walk you through every step of the legal process, providing the support you need when you need it most.

If you have been charged with a Federal White Collar Crime call our Birmingham Alabama White Collar Crime attorney at (205) 823-7233.