Embezzlement is a type of financial crime and white-collar crime where an individual intentionally steals, misappropriates, or uses money or assets that were entrusted to them, but for purposes different from what they were intended. The key aspect of embezzlement is that the embezzler has lawful possession or control over the assets initially, such as an employee managing company funds, but then illegally converts or uses them for personal gain without the owner's consent. Common features of embezzlement include:
- The assets are legally obtained or entrusted to the individual.
- The individual then fraudulently takes or uses the assets for unintended purposes.
- Embezzlement may involve skimming small amounts over time or taking a large sum at once.
- It differs from theft or larceny because the initial possession was lawful or permitted.
- It is considered a specific intent crime, meaning the embezzler intends to deprive the rightful owner of the property, even temporarily.
Embezzlement can happen in various contexts, such as employees stealing company money, cashing checks meant for others, or misusing funds entrusted for a specific purpose. It is punishable under law with fines and imprisonment.
