What is the difference between larceny and embezzlement?
The difference between larceny and embezzlement is the way the property is stolen. With larceny, the property is carried away; it was never in the possession of the perpetrator. With embezzlement, however, the perpetrator lawfully possessed the stolen property either while at work or elsewhere, but then has converted it into their own property. Read our free legal guide below for examples of the difference between embezzlement and larceny.
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UPDATED: Jul 19, 2023
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UPDATED: Jul 19, 2023
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.
The major difference between larceny and embezzlement is the way in which the property changes hands. With larceny, the property is carried away; it was never in the possession of the perpetrator.
With embezzlement, however, the perpetrator has lawfully possessed the property, but then has converted it into his/her own property.
The following example illustrates the difference:
A man walks onto a construction site and takes a hammer and goes home. He has committed larceny, because he has taken someone else’s property away, with the intent never to return it.
A construction worker on that same site, who uses the hammer every day, puts it in his pocket at the end of the day and takes it home. He has committed embezzlement, because it was in his possession to use while he worked on the site, but when he took it off the site, he converted it into his own property.
Case Studies: Understanding Larceny and Embezzlement
Case Study 1: Larceny
Sarah, a customer at a local store, notices a wallet left unattended on the counter. Seizing the opportunity, she quickly grabs the wallet and leaves the store without paying for it. In this case, Sarah has committed larceny because she took someone else’s property without their permission and carried it away with the intent to keep it for herself.
Case Study 2: Embezzlement
John is a trusted accountant for a large company. Over time, he starts diverting funds from the company’s accounts into his personal bank account. By using his authorized access to the company’s finances, John converts the funds into his own property. In this case, John has committed embezzlement because he lawfully possessed the company’s property and then misappropriated it for personal gain.
Case Study 3: Larceny from a Vehicle
Mary had been involved in petty thefts throughout her life, but her criminal activities took a darker turn when she discovered a parking lot notorious for leaving valuable items unattended in vehicles. This parking lot had gained a reputation for being a hotspot for car break-ins, as many people would leave their belongings inside their cars while they quickly ran errands or went shopping.
Case Study 4: Embezzlement at a Non-Profit Organization
David is a financial officer at a non-profit organization dedicated to helping underprivileged children. He has access to donation funds and decides to siphon off a portion of these funds into his personal account. Despite having lawful possession of the funds due to his position, David converts the money for his personal use, making it a case of embezzlement.
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Mary Martin
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Mary Martin has been a legal writer and editor for over 20 years, responsible for ensuring that content is straightforward, correct, and helpful for the consumer. In addition, she worked on writing monthly newsletter columns for media, lawyers, and consumers. Ms. Martin also has experience with internal staff and HR operations. Mary was employed for almost 30 years by the nationwide legal publi...
Published Legal Expert
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.