What to Do When Accused of Embezzlement

If you are facing an embezzlement accusation, feeling overwhelmed or anxious about what is to come is understandable. Embezzlement charges can feel deeply personal because they involve a breach of trust, but it is important to remember that an accusation is not a conviction.

There are ways to defend yourself, and the sooner you understand your legal position, the better you can defend your rights. Though the consequences are serious, there are legal strategies that can help.

What is embezzlement?

Embezzlement occurs when someone misuses the money they were entrusted with for personal gain.

Embezzlement can occur in various situations, both personal and professional. Common situations where embezzlement allegations might arise include handling company funds, managing investments, or overseeing a family member or client’s estate.

Embezzlement does not only involve large sums; it can include even small amounts—and it is not limited to cash; property and other assets are also at risk. However, the amount involved can significantly impact the legal consequences. 

It’s also important to note that depending on the context of the charges, other allegations, such as wire fraud, document falsification, forgery, conspiracy, racketeering, money laundering, tax evasion, and other crimes may be brought into question.

Because embezzlement can be highly specific, it is essential to clearly understand the allegations against you and work with an experienced attorney from the outset.

Types of embezzlement

Skimming

Think of skimming as pocketing small amounts of money over time—like slipping a bit of cash from daily receipts, business deposits, or pocketing funds here and there so they seem to go unnoticed, making them difficult to trace.

Check forgery

This involves tampering with checks to access funds illegally—whether by forging a false check or altering an existing one to inflate the amount.

Falsified invoices

When someone drafts fake invoices or inflates genuine expenses to pocket the difference, this maneuver involves exaggerating or creating fake charges to distort the actual numbers of a financial record, allowing someone to siphon off cash.

Misuse of company credit cards

Using a company credit card for personal spending is a textbook example of embezzlement. If personal expenses like dining out or shopping are intentional and not approved for company use, it’s a clear case of misappropriation. 

Asset misappropriation

Embezzlement can also involve using company property—intellectual assets or tangible equipment—for personal use. From machinery to software to other valuable assets, using company resources for one’s benefit is unethical and a form of embezzlement. 

Regardless of the specific type, the stakes for embezzlement charges are high. Knowing exactly what you are accused of is critical to forming a strong defense that will stand up in court.

Is embezzlement a felony?

In New Jersey, there is no specific statute for embezzlement, which is instead charged as general theft. The seriousness of an embezzlement (or theft) charge largely depends on the value of the property or money involved. Depending on the specific facts of the situation, embezzlement may be charged as either a disorderly persons offense or an indictable offense.

Here is how the value of the stolen property may break down:

• Less than $200: Disorderly persons offense which carries penalties of up to 6 months in county jail and fines up to $1,000.
• Between $200 and $500: Fourth-degree indictable offense and punishable by up to 18 months in state prison and fines of up to $10,000.
• Between $500 and $75,000: Third-degree indictable offense and punishable by 3 to 5 years in state prison and fines of up to $15,000.
• More than $75,000: Second-degree indictable offense and punishable by 5 to 10 years in state prison and fines of up to $150,000.

One important note is that fines are either as listed above or double the amount of the victim’s losses, whichever is higher.

Even if embezzled amounts are relatively small, the penalties and fines can be harsh. Felony convictions also can carry consequences like loss of professional licenses, difficulty finding future employment, and long-lasting reputational damage.

What are common defense strategies for embezzlement charges?

The defenses for embezzlement hinge on either proving that you did not commit the act in question, that you did not commit the amount of the theft being alleged (critical for grading purposes), or that the act committed does not fit the legal definition of embezzlement. An experienced embezzlement defense attorney will carefully review your situation and help you identify the right strategy for protecting your rights and defending your future. 

While your unique strategy will depend on your situation, some common approaches to embezzlement defense can include arguing there was: 

• Lack of intent. This means that property or other assets were unintentionally misused. For example, if a misunderstanding or error occurred rather than a deliberate act.
• Permission or authorization. By showing there was proper permission to handle the money or property, it is possible to counter allegations that the actions were outside legal boundaries.
• Accounting errors or mistakes. Occasionally, there are discrepancies in financial records that are misinterpreted as embezzlement. Demonstrating that any apparent mismanagement was due to errors instead of intentional wrongdoing can lead to a stronger defense.
• Absence of proof. If there is insufficient evidence that money or assets were taken deliberately, or the amount of theft is in question, the defense can argue that the prosecution did not meet the burden of proof—beyond a reasonable doubt.
• Duress. This can be a valid defense if someone was compelled to commit embezzlement under serious threat. To use this defense, there must be evidence showing no reasonable escape from the crime without facing an immediate and credible threat.

How an experienced attorney can protect your rights

Facing embezzlement charges can be overwhelming, but an experienced criminal defense attorney can guide you through every step. An experienced attorney can:

• Negotiate bail and work to secure your release if necessary.
• File discovery requests to obtain and evaluate evidence gathered by the prosecution.
• Assess the evidence, identify improperly obtained materials, and argue for their exclusion.
• Challenge the value of the allegedly embezzled property to seek reduced charges.
• Negotiate with the prosecution to advocate for reduced charges or dismissal based on the evidence and restitution.
• Explore all available legal options, including potential plea bargains, to find the best path forward.
• Examine possible defenses such as duress, insanity, insufficient evidence, lack of intent, or rightful ownership.
• Prepare for trial, if necessary. 

At Dughi, Hewit & Domalewski, we understand the gravity of embezzlement accusations and their impact on your future. Our team builds a custom defense strategy tailored to your case, exploring every angle to counter the prosecution’s claims and protect your rights.

To learn more about how Dughi, Hewit & Domalewski can assist you in fighting embezzlement charges, schedule a consultation with our team today.