What Is the Difference Between Embezzlement and Theft?

Embezzlement and theft are similar in many ways, so they are often discussed together. However, embezzlement and theft involve distinct legal concepts. It is vital for anyone navigating the legal system to understand the differences between the two. This article discusses the difference between embezzlement and theft.

Understanding Embezzlement and Theft

Theft and embezzlement involve taking assets that don’t belong to you. But there is a huge difference between the two. Theft is the act of outright taking something that does not belong to you with the intention of permanently depriving the owner of the property. Theft encompasses various forms, such as shoplifting and grand larceny. Shoplifting is when you take items from a store without paying for them. For example, if you pocket a necklace from a jewelry shop and leave without paying, that is considered theft. Grand larceny involves taking something of significant value. In New York, grand larceny occurs if you steal property valued in excess of $1,000. This is according to New York Penal Law section 155.30.

On the other hand, embezzlement is a type of theft involving fraudulent misappropriation. This crime occurs when a person in a position of trust misappropriates property or funds entrusted to them. Misappropriation is when someone intentionally uses or converts property entrusted to them for personal use or gain. For example, someone working in a company’s financial department may transfer a portion of the money entrusted to them to their account. This person was entrusted with the company’s money, but they misappropriated it by using it for personal gain instead of for official purposes. The following are other common forms of embezzlement;

• An accountant creating fake employees on the payroll and diverting their pay to personal accounts
• Financial advisors diverting client funds for personal use
• Using a company credit card for personal expenses
• A trustee using money from a trust for personal gain

To summarize, embezzlement involves theft, meaning it is a type of theft. However, not all theft is embezzlement. For the crime to qualify as embezzlement, there must be an element of trust and misappropriation. The requirement that these elements be present is what sets embezzlement apart from other forms of theft.

Proving Theft and Embezzlement

To prove theft, the prosecution must establish that the defendant intentionally took property they had no right to take with the aim of permanently depriving the owner of it.

On the other hand, to prove embezzlement, the prosecution must show that the defendant was entrusted with the property, which they misappropriated, and did so with fraudulent intent.

Legal Consequences of Theft and Embezzlement

Both theft and embezzlement are serious crimes with harsh legal consequences. However, the implications of both crimes can vary depending on various factors. For example, for theft, penalties may vary depending on the value of the stolen property. Penalties for theft might include jail time, fines, and restitution, which is a remedy meant to compensate the victim for their financial loss.

Since embezzlement involves a breach of trust, it is treated seriously. Penalties can include significant fines, lengthy prison sentences, and restitution.

Contact an NYC Criminal Defense Attorney

When facing theft or embezzlement charges, having a skilled criminal defense attorney by your side is crucial. Our experienced NYC criminal attorney, Mark I. Cohen, can help defend you.

Source:

nysenate.gov/legislation/laws/PEN/155.30