Embezzlement Law
Embezzlement is a type of financial fraud that can range in severity from a few misappropriated dollars to a multi-billion dollar complex financial scheme. Embezzlement is defined as, “a criminal offense which involves the fraudulent and secret misappropriation of money or assets by an agent to whom the property has been entrusted.”
In order for embezzlement to occur the original acquisition of the finances or goods must not be trespassory and there must be a conversion. Unlike larceny, embezzlement only occurs when the person facing criminal charges was the entrusted caretaker of the funds. This means that the funds were obtained in a legal and sound manner. A conversion occurs when the funds are not simply relocated, but used in a manner that interferes with them in some way. An example would be a financial adviser taking the funds of his client that were intended to go in to their retirement accounts, and using them to fund his own lifestyle or investments.
The largest embezzlement ever recorded was by American Businessman, stockbroker, and investment adviser Bernard “Bernie” Madoff. In the year 1960 he used the money saved from college jobs to start Bernard L. Madoff Investment Securities LLC, where he remained the chairman until his arrest on December 11, 2008. The firm was one of Wall Street’s top market maker businesses for decades, and managed assets in excess of $50 billion dollars. Records indicate that the Ponzi scheme began as early as the 70s, but probes in to the company’s validity didn’t begin until as late as 1999. Many large investment firms and mathematicians questioned the validity of the company and its extravagant payouts, but their concern was largely ignored by the SEC. On December 10, 2008 in his New York penthouse, Madoff confided to his sons that he was struggling to pay back investors, that he had no money left and that the business was a huge Ponzi scheme and was just, “one big lie”. Madoff’s sons reported him to authorities and he was arrested the next day. In March 2009 he pleaded guilty to 11 federal felonies and admitted to turning his wealth management company in to a massive Ponzi scheme and was sentenced to 150 years imprisonment- the maximum allowed.
In America embezzlement is a statutory offense, so definitions and punishments can vary. Generally speaking those who are found guilty of embezzlement can face penalties ranging from simply having to pay back their investors to serving lifetime jail sentences and fines of billions of dollars. If you or someone you love is facing charges for embezzlement, contact an Phoenix embezzlement lawyer immediately. An attorney specializing in white collar crime will be able to find weaknesses in the charges you are facing and uncover evidence that will support your defense. In situations where going to court will not be in your favor, an attorney will negotiate to have the charges you are facing reduced.
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