Is Embezzlement a Federal Crime?

 Posted on October 15, 2024 in Fraud

Embezzlement is a serious crime that involves the misuse of assets. It usually occurs in corporations, nonprofit organizations, or governments and is often prosecuted at the state level. In some cases, however, embezzlement becomes a federal offense. Someone who faces such a charge can face heavy fines or go to prison for federal embezzlement.

This article will discuss what embezzlement is and when it becomes a federal crime. If you are facing federal embezzlement charges, protect your rights by contacting an Illinois criminal defense lawyer as soon as possible.

What Is Embezzlement?

Embezzlement is when a person has lawful access to assets and knowingly misuses those assets for fraudulent or personal use. A common example of this is when a corporate executive uses company funds to pay for lavish vacations or make private investments.

There are four elements to the crime of embezzlement:

• The defendant is in a position of trust or has a fiduciary relationship with the company or agency, meaning he or she is expected to act in the best interests of the entity.
• The defendant has lawful access to company or government assets.
• The defendant uses those assets for his or her own personal use or fraud.
• The defendant has the intent to deprive the owner of those assets.

When Does Embezzlement Become a Federal Crime?

Embezzlement becomes a federal crime in either of the following cases:

• Federal property: If the assets that were embezzled are the property of the federal government, the offense becomes federal. For example, If a government employee misappropriates funds for a private business venture, it is a federal crime. Or, if the head of a non-governmental organization (NGO) uses money from a federal government grant to buy a house, it would likely be considered federal embezzlement.
• Interstate commerce: Crimes become federal when they cross state lines. For example, if a corporate executive embezzled from a company with offices in multiple states or moved the funds across state lines, it may be a federal offense.

In these cases, the crime falls under a federal embezzlement statute and would be prosecuted by the federal government.

What Are the Penalties for Federal Embezzlement?

Someone who is convicted of federal embezzlement can face a federal embezzlement sentence that includes fines and prison time of up to 10 years. If the amount of the money embezzled was less than $1,000, the defendant may face up to a year in prison.

The federal embezzlement statute of limitations is ten years. This means that the federal government has up to ten years from when the crime was committed to initiate criminal proceedings.

Contact a Chicago, IL Federal Embezzlement Defense Attorney

If you are indicted on federal charges, you may face severe penalties. Protect yourself by contacting the Law Offices of Hal M. Garfinkel LLC, Chicago Criminal Defense Attorney, where attorney Hal Garfinkel is a former prosecutor and understands both sides of the criminal justice system. Let us create a legal defense strategy that is personalized and tailored to your specific case. Schedule a free consultation with a Chicago, IL federal embezzlement defense lawyer by calling 312-629-0669 today.