What actually constitutes embezzelment?
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What actually constitutes embezzelment?
I owned shares in a corporation equally with 2 others. There was a president, vice president and secretary. Our company was deactivated by the state for not filing our annual report. Months laterthe secretary and I found out that the president had taken $8,000 from a money market fund, he changed the business address so that he could receive a workers comp. check for $6,000and he closed a business account and took the money without me and the secretary knowing. Is this considered embezzlement or just theft?
Asked on February 3, 2012 under Business Law, Florida
Answers:
Hong Shen / Roberts Law Group
Answered 12 years ago | Contributor
What distinguishes embezzelment from a theft is whether the person committed the crime has legal possession of the fund. Nromally a low level employee has only custody and only theft can be committed. For a high level employee such as this president, who has legal possession, management, and control of the fund, an embezzlement would have been committed.
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