Embezzlement

Definition

Theft of property which has become a possession of the thief.

Purpose

Embezzlement involves the misappropriation or theft of funds or property entrusted to an individual by an employer or organization. It is a form of financial fraud that undermines trust and can cause significant financial harm to businesses and individuals.

Examples of Use

• An employee siphoning company funds into their personal account.
• A financial manager manipulating accounts to hide stolen money.
• A treasurer of a non-profit organization misusing donated funds for personal expenses.

Related Terms

• Fraud: Wrongful or criminal deception intended to result in financial or personal gain.
• Theft: The action or crime of stealing.
• Misappropriation: The intentional, illegal use of the property or funds of another person for one's own use.

Notes

• Embezzlement is a criminal offense that can lead to severe legal penalties, including fines and imprisonment.
• Businesses can mitigate the risk of embezzlement through internal controls, regular audits, and strict financial oversight.