Also known as: embezzle · embezzles · embezzled · embezzling · embezzlements · embezzler · embezzlers
Written by attorneys · grounded in primary & secondary sources — see below
A statutory crime consisting of the fraudulent conversion of property belonging to another by a person who already holds lawful possession of it. The conversion occurs when the defendant deals with the property in a manner inconsistent with the trust or authority under which possession was obtained. An intent to defraud is required, and the property must be capable of being the subject of larceny.
Emanuel Escobar, a teller at Evergreen Bank, receives cash deposits from customers during his shift and places the funds in his drawer under the bank's procedures. Later that day he transfers several thousand dollars into his personal account instead of completing the deposit tickets. Because Escobar held lawful possession of the money when he converted it, the bank charges him with embezzlement.
Erika Echevarria serves as trustee for a family trust holding investment accounts at Edgewater Capital. She transfers trust assets into a personal brokerage account and uses them to trade securities for her own benefit. The conversion happens while she retains lawful possession under the trust agreement, supporting an embezzlement charge.
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Eva Espinosa manages accounts payable for Empire Logistics and receives checks from customers intended for the company. She endorses several checks and deposits them into her own account to cover personal expenses. Lawful possession at the time of the conversion establishes the elements of embezzlement.
Elliot Edmonds prepares payroll envelopes for Echelon Security employees and is responsible for distributing the cash. He removes portions of the cash from multiple envelopes before distribution and keeps the money. The misappropriation occurs after he already held lawful possession of the funds.
Edith Eberhardt collects monthly rent checks for units managed by Edgewater Capital and is authorized to deposit them into the owner's account. She instead cashes several checks and spends the proceeds on personal travel. The conversion while in lawful possession satisfies the embezzlement definition.
Enzo Eastwood, an officer at Empire Logistics, has authority to sign checks on the company's operating account. He writes checks payable to himself and uses the funds to pay personal debts. The acts constitute embezzlement because he converted the money while already in lawful possession.
Embezzlement requires that the defendant already hold lawful possession of the property and then convert it. Larceny instead requires a trespassory taking at the moment the defendant first acquires possession.
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Conversion occurs when the defendant deals with the property in a way that conflicts with the trust arrangement or authority under which possession was obtained. No physical movement of the property is required.
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No. An intent to repay is not a defense. The crime is complete once the defendant converts the property with fraudulent intent, even if the defendant plans to restore equivalent funds later.
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No. Traditional embezzlement statutes apply only to property that may be the subject of larceny. Real property and services therefore fall outside the scope of the offense.
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A bona fide claim of right defeats the intent to defraud. If the defendant honestly believes he is entitled to retain the property, such as to satisfy a debt he believes the owner owes him, the conversion is not embezzlement.
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…to render plain and certain every constituent of the offense"); United States v. Woodruff , 68 F. 536, 538 (Kan. 1895) (where embezzlement statute "contemplates that there should be an ascertainment of the exact sum for which a fine may be imposed" and jury did not determine amount, judge lacked authority to impose fine; "[o]n…