Embezzlement: Your Questions Answered

Learning you’re facing an embezzlement charge can be an alarming experience.

Read on to discover the different types of embezzlement, the severity in which it’s viewed in courts of law, and how you should proceed if you’re faced with charges.

What is embezzlement?

Embezzlement is a form of white-collar crime and involves a trusted person defrauding an individual or company of their funds or assets.

Embezzlement differs from other types of fraud in the sense it classifies as a form of property theft. It usually involves offences that fall under the Theft Act 1968 or the Fraud Act 2006.

Embezzlement occurs when someone responsible for handling someone else’s money or property steals all or part of this for their own personal gain. If you’ve been charged with this form of offence, it means you had access to the money or property but not the legal ownership of it. This infers you have abused your trusted position.

What are the different types of embezzlement?

While embezzlement takes many forms, some types are more common than others. The following are recurrent types of embezzlement in the UK:

Payroll

Payroll embezzlement involves a company or employee using the payroll system to enable criminal activity. This often occurs through ‘ghost employee’ fraud, where a fictitious employee is created so wages can be claimed on their behalf.

Siphoning

Usually committed by someone with direct access to handling money, such as a shop assistant, this crime occurs when someone accepts a payment without processing the transaction and chooses to keep the money.

Charity embezzlement

This occurs when a charity employee or volunteer handles charity funds inappropriately. This includes keeping charity money for themselves or using official company credit cards to make unauthorised payments.

Cheque kiting

Cheque kiting involves someone making a series of withdrawals and deposits from multiple banks while utilising the time a cheque takes to register with the bank and show on the balance. This is a method of accessing credit that isn’t actually authorised.

Ponzi schemes

Ponzi schemes are a form of investment fraud. They involve an investor or financial advisor guaranteeing a high-return investment to an individual, which they keep instead of investing.

How serious is an embezzlement allegation?

Embezzlement allegations are treated very seriously in the criminal justice system. Courts will often treat embezzlement cases with more severity than theft cases, as they involve a defendant in a position of trust over money and assets. Sentences can range from community service to prison time.

How should I proceed?

It is crucial to seek legal representation and consult with criminal law solicitors before taking action. Our criminal lawyers at Lefevre Litigation have extensive experience representing many white-collar and corporate clients from accusations of theft. Contact us now to find out how we can help you.