Embezzle

Embezzle is a verb meaning to fraudulently appropriate money or property that has been entrusted to one’s care, typically by someone in a position of trust such as an employee, officer, or fiduciary. Embezzlement refers to the act or the crime of doing so. While definitions vary by jurisdiction, the core elements usually include that the person had lawful possession of the property or funds, converted or used them for personal use without authorization, and acted with intent to defraud.

Common targets are finance staff, managers, or trustees. Schemes can range from simple cash skimming to complex accounting manipulations. Methods include falsified records, inflated or fake expenses, ghost vendors, payroll fraud, and unauthorized reimbursements. Embezzlement is regarded as a white-collar crime and is distinct from theft in that the perpetrator initially held rightful possession of the assets.

Legal consequences vary but typically include criminal charges that may lead to imprisonment, fines, and restitution. Civil actions can recover lost assets, and there may be regulatory or corporate consequences such as investigations, sanctions, and damage to reputation. Statutes of limitations determine how long after an offense charges may be filed, and penalties depend on the amount embezzled and local law.

Prevention focuses on internal controls, including separation of duties, mandatory vacations, independent reconciliations, regular audits, and confidential reporting channels. Organizations often emphasize governance measures, risk assessment, and robust accounting systems to deter and detect embezzlement at early stages. See also fraud, white-collar crime, and accounting misconduct.