Legal Dictionary
Embezzlement
Definition
Theft or misappropriation of funds placed in one's trust or belonging to one's employer.
Deep Dive
Embezzlement is a type of financial fraud where an individual entrusted with funds or assets belonging to another party unlawfully appropriates them for personal use. Unlike simple theft, the embezzler initially gains lawful possession of the assets through a position of trust, such as an employee, financial advisor, or trustee. The crime occurs when they fraudulently convert those assets for their own benefit, breaching their fiduciary duty.
Examples & Use Cases
- 1An accountant for a small business secretly diverting client payments into a personal offshore bank account.
- 2A trustee managing an elderly relative's estate using the inheritance funds to pay off their personal debts.
- 3A non-profit organization's treasurer writing checks from the charity's account to themselves for lavish personal expenses.
Related Terms
FraudMisappropriationFiduciary Duty