What constitutes embezzlement?

UPDATED: Sep 26, 2014

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 26, 2014Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What constitutes embezzlement?

The majority owner of the company I work at has been cutting himself checks, stating that they are administrative expenses, however he doesn’t do anything for the company. Is this embezzlement and, if so, should I talk to the other owner?

Asked on September 26, 2014 under Criminal Law, Michigan


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Embezzlement is a unique kind of crime. It is a form of property theft.  It is charged to a person who was entrusted to manage or monitor someone else’s money or property and then they steal all or part of it for their personal gain. There is a distinction here that matters: there is a difference between legal access and legal ownership.  The boss has legal access to the money (check writing powers) but ownership of the money is legally the businesses, correct? If you are a party that is in charge of bookkeeping or monitoring the books and you notice discrepancies in cutting the checks and being able to reconcile them with true expenses then you could have an obligation to state something. It puts you in wierd position and I can understand why you would be uncomfortable in acting.  It may be a good idea for you to talk to an attorney on a consultation basis here.  My concern is that you could be obligated due to your position (never mind your moral obligation which is not what I am talking about right now) and not saying something could be far worse for you. Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption