Embezzlement and theft are similar in many ways. They both involve a person taking financial assets for themselves. The victim of that theft may be a company or a corporation.
But the big difference between the two is that embezzlement is often defined as “fraudulent misappropriation.” Theft, on the other hand, is when someone directly takes financial assets. This may sound like a small distinction, but it makes a big difference in how the case plays out.
What is misappropriation?
Misappropriation is a term that means the person was allowed to access the funds and use them in a certain way. They simply decided to use them inappropriately. But accessing the funds alone was not illegal.
For example, someone may be working in the financial department of a large corporation. As part of their job, they are supposed to transfer money out of the corporation’s bank accounts and fund various projects. They continue to do their job, but they start transferring 10% to their own bank account. They were allowed to access the company’s money, but they misappropriated it by using it for personal gain instead of for the officially sanctioned projects.
Theft, on the other hand, could be when someone who is unrelated to the company hacks into the financial accounts and transfers money to their own personal bank account. They were never supposed to have access to those company accounts in the first place. The end result is the same, but the crime is much different.
Legal defense options
With either type of financial crime, the case can get complicated and the ramifications may be severe. Those who are facing accusations need to know what legal options they have.
