Embezzlement is a kind of theft where the perpetrator steals the money or goods by taking advantage of another person’s trust. For example, the perpetrator might be the guardian of a vulnerable individual or an employee who handles money for a business, a non-profit, or a government agency.
Most people convicted of embezzlement do not fit the usual profile of a criminal suspect. According to a national study of embezzlement cases across the country, the most likely offender is a woman in her forties with no criminal history. A common misconception is that most people embezzle funds to finance a drug or gambling habit. In reality, two-thirds of people convicted of embezzlement do so to maintain their lifestyle.
Most embezzlement cases occur within the financial services sector, which accounts for around 40% of incidents—one of the most common forms of embezzlement occurs when a bank teller pockets money from customer’s deposits. Government agencies are the second most likely victims (11% of cases), followed by non-profit organizations (9% of cases).
What is Embezzlement According to Michigan Law?
Section 750.174 of the Michigan Penal Code defines the crime of embezzlement as when an agent or employee of an individual, business, or government uses his or her position of trust to fraudulently take property, valuables, or proprietary information. This definition covers a wide range of criminal conduct, such as:
- A bank teller pocketing a few bills when a customer makes a deposit
- A business manager using the company credit card for personal expenses
- The trustee of an estate using trust assets to purchase clothing, meals, or trips
Fraud is the misrepresentation of facts through lies, misleading statements, or omissions that deceive others in a way that is calculated to benefit the person making the misrepresentation. A court will generally find that fraud occurred when there is evidence of the following:
- A misrepresentation of an important fact
- The person making the misrepresentation knows it’s untrue
- There is an intent to deceive the victim
- The victim acts or relies on the misrepresentation
- The victim gets injured as a result
One type of embezzlement, that one might easily commit involuntarily, happens when a landlord or leaseholder misuses a security deposit or loan collateral. In Michigan, a landlord who places security deposits in a personal account along with rent checks may be charged with embezzlement.
