Embezzlement is a type of white-collar crime and carries significant legal consequences upon conviction. It is crucial to understand the varied nature of embezzlement, especially if you are facing charges.
In such a situation, it becomes imperative not only to understand embezzlement but also to retain the services of an experienced embezzlement lawyer to create a strong defense.
This blog post presents an overview of seven common forms of embezzlement, offering valuable insights to enhance your understanding of this type of crime.
What Is Embezzlement?
Embezzlement refers to the fraudulent act of taking personal property that has been entrusted to someone. While it is commonly associated with the misappropriation of money, it can extend beyond financial assets. Embezzlement can occur regardless of whether the defendant retains the property or transfers it to a third party.
Embezzlement shares similarities with larceny and fraud, yet it possesses distinct characteristics. Larceny entails the act of wrongfully acquiring something that does not belong to you, while fraud involves deceptive methods to gain unauthorized access to possessions.
Different Forms of Embezzlement
Siphoning
Siphoning refers to the process where money is taken off the top of daily receipts or revenues before the funds are recorded in the business’s accounts.
This can happen, for instance, when a cashier intentionally overcharges a customer for groceries and then keeps the extra money for themselves.
Payroll and Overtime
Payroll embezzlement involves employees receiving payment for time they did not actually work. This form of embezzlement can occur in various ways.
For example, an employee may add a fake worker to the payroll system and divert the funds to themselves. Another scenario is when an employee punches in for a coworker who is absent, thereby inflating the hours worked by the absent employee.
Kickbacks
Kickbacks are payments that are received illegally in exchange for preferential treatment or services.
For instance, a politician could receive money as a bribe in return for voting in a specific manner. In another example, a manager could get goods in exchange for selecting a certain vendor.
Check Kiting
Check kiting involves taking advantage of the float period between when a check is deposited and funds are debited or credited from a bank account.
For example, a person can write a check from Account A to Account B. However, Account A doesn't have enough money to cover the check. Next, the individual writes a check from Account C to Account B, but Account C also doesn't have enough funds.
Misuse of Assets
The misuse of company assets for personal use is another type of embezzlement. This could range from using company vehicles for personal travel to misappropriating office supplies or selling company-owned equipment.
For instance, a form of asset misuse may occur when an employee utilizes company computers to conduct an external business.
Forging Documents
This could include generating counterfeit documents to facilitate a payroll scheme or fabricating fictitious company records for personal benefit. For example, an employee could create false expense records for reimbursement.
Facing Embezzlement Charges? Contact Our Firm
If you or a loved one are facing embezzlement charges, it can be a stressful situation. Convictions for embezzlement carry severe penalties, including lengthy imprisonment and substantial fines. It is crucial to secure the representation of an experienced criminal defense lawyer in this challenging circumstance.
At Hester Law Group, our team of embezzlement defense attorneys is here to assist you. With a combined litigator experience of over 150 years, we are dedicated to fighting for you and pursuing a favorable outcome.
You don't have to go through this alone. Contact our experienced legal team today at (253) 300-3034 or message us online to request a free initial consultation.