How To Beat Embezzlement Charges

If you’re under investigation or have been charged with embezzlement, you’re likely wondering how you should proceed. Being charged with embezzlement can be disconcerting, potentially cause reputational damage that may impact your career and financial future, result in hefty fines, and carry the potential for imprisonment.

Before you can move forward, it’s imperative that you understand what embezzlement charges are and the processes involved in defending yourself. Doing so will help you evaluate exposure to criminal liability and make informed decisions about your future. 

What is embezzlement? 

Embezzlement, a type of white-collar crime, occurs when someone takes money or property that they were entrusted with for personal benefit. 

Embezzlement isn’t limited to high-level employees or professions. While corporate embezzlement is more often talked about, employees who work in accounting, management, or administrative roles may also be implicated, given their access to financial transactions or company funds. 

Regardless of the job title, though, this crime typically involves a breach of fiduciary duty or the abuse of a position of trust. Some examples of embezzlement include:

• Creating false invoices to divert funds 
• Manipulating payroll records to issue unauthorized payments
• Misusing company assets, such as employer credit cards or funds  
• Skimming funds before recording them
• Falsifying financial records or statements

How is embezzlement prosecuted in New Jersey?

Embezzlement may be prosecuted as federal or state charges. Jurisdiction depends on the circumstances of the crime and the property embezzled. For example, theft from federal agencies or federally funded programs would be regulated by federal law, whereas property belonging to state or local governments or private individuals may fall under state jurisdiction.

For embezzlement falling under the jurisdiction of the state of New Jersey, prosecutors must prove four elements:

• A relationship involving trust existed between the defendant and the employer, agency, or other entity
• The defendant was entrusted with or cared for the property by virtue of their employment
• The defendant converted or appropriated the property for their personal use unlawfully
• The defendant intended to deprive the legal owner of controlling the property 

To convict you of embezzlement, the prosecutor must prove each of these four elements beyond a reasonable doubt. 

Potential penalties for embezzlement

Understanding the penalties that go along with embezzlement charges can help you understand the risks involved, as well as help you work with your attorney to create an informed defense strategy. For example, you may be able to gather mitigating evidence to argue for lighter sentences or leverage negotiation. 

In New Jersey, the potential penalties for embezzlement are divided into five categories:

• First degree: This is the most severe form of embezzlement, with potential jail time of up to 20 years and fines of up to $200,000. First-degree embezzlement applies to stolen money or property exceeding $500,000.
• Second degree: This form of embezzlement carries potential jail time of up to 10 years and fines of up to $150,000. Second-degree embezzlement applies to stolen money or property between $75,000 and $500,000.
• Third degree: This form of embezzlement carries potential jail time of up to 5 years and fines of up to $15,000. Third-degree embezzlement applies to stolen money or property between $500 and $75,000.
• Fourth degree: This form of embezzlement carries potential jail time of up to 18 months and fines of up to $10,000. Fourth-degree embezzlement applies to stolen money or property between $200 and $500. 
• Disorderly persons offense: For money or property less than $200, a defendant may face up to 6 months in jail and fines of up to $1,000.

Potential penalties may add up if defendants are charged with multiple counts of embezzlement or additional crimes.

How can I defend myself against an embezzlement charge?

The first step in defending yourself against an embezzlement charge is to retain an experienced criminal defense attorney. Choosing the right attorney helps you: 

• Understand the charges levied against you
• Gather the relevant documentation and information
• Identify the right defense strategy

Know the charges against you

Embezzlement cases are often complex, involving detailed financial records, transactions, and evidence. As such, it’s vital to have the fullest understanding possible of what the charges against you are.  

For example, what type of embezzlement are you being charged with? What’s the value of the property you’re accused of embezzling? Understanding the charges against you can help you and your attorney develop the best defense strategy based on the facts of your case.

Gather all relevant documents

In embezzlement cases, it’s not uncommon for prosecutors to examine financial records, credit card statements, bank records, payroll records, and other documents when building their case. They can even investigate surveillance footage.

Any documentation that may connect you to the alleged embezzlement may be examined.

An experienced criminal defense attorney can review these documents while gathering additional proof to identify weaknesses in the prosecution’s case and help you build a strong defense strategy.

Identify the right defense strategy

Defending against embezzlement charges requires a deep understanding of the applicable laws, the nuances of the court system in the relevant jurisdiction, and the ability to mount a strong rebuttal of the prosecution’s evidence and arguments.

An experienced attorney will be able to identify weaknesses in the prosecution’s case, present mitigating factors, and build a compelling defense that’s tailored to your specific circumstances. This strategy might involve pursuing plea bargains or alternative sentencing options, if appropriate.

Depending on your specific situation, your attorney might pursue lines of defense such as: 

• Lack of intent
• Insufficient evidence 
• Entrapment 
• Duress 
• Authority or permission 
• Incapacity 
• Statute of limitations 
• Legitimate business purposes 
• Absence of fiduciary relationship 
• Mistake of fact

Consult with an attorney

The best way to minimize embezzlement charges is to talk to a New Jersey criminal defense attorney about your options and defense strategy. The criminal defense attorneys at Dughi, Hewit & Domalewski understand how serious embezzlement charges can be and how they can impact your future.

At Dughi, Hewit, and Domalewski, you’ll benefit from the experience and resources typical of a big firm, but with the approachability and responsiveness of a boutique firm. To find out more about how Dughi, Hewit & Domalewski can help you fight embezzlement charges, schedule a consultation with our team today.