The news often includes stories of a type of financial crime known as embezzlement. For instance, some recent suspects who are accused of this are: Lebanese central bank governor Riad Salameh; the ex-CEO of Paul Newman’s non-profit, Christopher L. Butler, and even the well-known French poltician, Marie Le Pen. Obviously, the penalties for this crime will differ depending on in which jurisdiction the crime takes place. Almost all will need advice from a criminal defense lawyer or a financial crime lawyer.
Definition
Embezzlement is the illegal taking of money by misuse of lawful authority. Typically, it involves a defendant who is entrusted with property or funds who then steals some or all of those items. That is exactly why it is commonly associated with white collar criminals, those whose job it is to manage money. That could be financiers, traders, stock brokers, accountants, and the like. Interestingly, the actual statutes that criminalize the aforementioned conduct, may not use the term “embezzlement.” To see whether it deals with embezzlement, however, it means there is some fiduciary duty (entrustment) and misuse of that duty for pecuniary (financial) gain.
The United States has a “dual” legal system, which involves state and federal law. Both of them bear legislation that prohibits embezzlement.
New York State Law
- N.Y. Penal Law § 155.05 – Under this section of NY code, larceny is defined as wrongful taking of another’s property. In the wording of this statute, it is clear that larceny may be committed through embezzlement. There is no further explanation given regarding examples of embezzlement.
- N.Y. Penal Law § 155.25 – Petit larceny
- Should a person steal property valued at $1000 or under, they are guilty of petit larceny, which is a class A misdemeanor. Thus, they may spend up to a year in prison, if convicted of this crime.
- However, if they steal $1000 or more, they are subject to grand larceny laws.
- An experienced new york criminal defense lawyer can explain further.
GRAND LARCENY LAWS
egrees of Grand Larceny
| Degree | Threshold/Key Factors | Felony Class | Max Prison |
| 4th | Over $1,000 (not more than $3,000); credit/debit card; firearm; motor vehicle >$100; extortion | E | 4 years |
| 3rd | Over $3,000 (not more than $50,000); ATM contents/machine | D | 7 years |
| 2nd | Over $50,000; public servant abuse; certain extortion | C | 15 years |
| 1st | Over $1 million | B | 25 years |
- N.Y. Penal Law §§ 155.30–155.42 – For grand larceny in the 4th through 1st degrees, used for larger-value embezzlement cases (over 1,000 dollars, with higher degrees for 3,000, 50,000, and 1,000,000 dollar thresholds).
Federal Laws
Key Statutes
- 18 U.S.C. § 641: This section applies theft of public money, records, or property belonging to the U.S. (e.g., stealing from a federal office).
- This section criminalizes theft of money and property as they directly relate to federal offices.
- 18 U.S.C. § 661: Larceny within special federal jurisdictions like national parks or territorial waters.
- This is very similar to other larceny provisions, but the legislation focus specifically on national parks and territorial waters, which are areas typically under the federal jurisdiction. This differs from state laws which penalize conduct that deals primarily with acts within the geographic territory of a state, ordinarily.
- 18 U.S.C. §§ 656–669: Target embezzlement or theft by specific federal employees, such as bank officers or postal workers.
- Given that bank officers and postal workers deal with sensitive information and personal property, there is also a federal law that ensures they take their oath seriously and refrain from misuse of their position.
- 18 U.S.C. § 2112: Theft or robbery from mail carriers or interstate shipments. Theft of mail is very common these days. Many, however, may not know that such crimes could actually be contrary to federal laws.
Do you need an embezzlement lawyer?
If you have been charged with embezzlement, you need to speak to a white collar crime lawyer immediately. At this firm, you can speak directly with a Manhattan white collar criminal defense lawyer, who will be able to provide a consultation about your issue.
Summary Comparison
| Jurisdiction | Statute | What It Covers | Penalties |
| New York State | NY Penal Law Art. 155 (e.g., §§ 155.05, 155.30–155.42) | Embezzlement as larceny by conversion of entrusted property | Misdemeanor to felony depending on value; up to 25 years state prison for highest degree. |
| Federal | 18 U.S.C. § 641 | Embezzlement/theft of U.S. government money/property | Up to 10 years (value >$1,000); ≤1 yr if ≤$1,000. |
| Federal | 18 U.S.C. § 656 | Embezzlement by bank officers/employees | Up to 30 years, fines up to $1M. |
| Federal | 18 U.S.C. § 666 | Embezzlement from entities receiving federal funds | Up to 10 years, fines. |