Embezzlement is one of the most common white-collar crimes in California—and one of the easiest to misunderstand. Many people accused of embezzlement never set out to steal anything. They may have made a bookkeeping error, mishandled funds, or been accused by an employer after a workplace dispute. Yet under California law, these situations can quickly escalate into serious criminal charges.
Understanding what constitutes embezzlement and how prosecutors prove it is crucial to building a strong defense and protecting your reputation.
What Is Embezzlement Under California Law?
California Penal Code §503 defines embezzlement as the fraudulent appropriation of property by a person to whom it has been entrusted. In plain terms, it means using someone else’s money or property for your own benefit after being given lawful access to it.
Unlike theft or robbery, embezzlement doesn’t involve breaking in or taking something by force. It often happens in trusted environments—between employers and employees, financial advisors and clients, or even family members managing shared assets.
To convict someone of embezzlement, prosecutors must prove three key elements:
- The property belonged to someone else.
- You had lawful possession or control of that property.
- You intentionally used it fraudulently for personal gain.
Common Examples of Embezzlement
Embezzlement can occur in nearly any professional or financial setting. Common examples include:
- Taking money from a company account or cash register
- Transferring client funds into personal accounts
- Altering accounting records or falsifying invoices
- Using a company credit card for personal expenses
- Keeping deposits, reimbursements, or property entrusted to you
Even small or one-time incidents can be charged as embezzlement if prosecutors believe intent to defraud existed.
Penalties for Embezzlement in California
The severity of embezzlement charges depends on the value of the property involved:
- Petty theft embezzlement: Property worth $950 or less is typically charged as a misdemeanor, punishable by up to 6 months in jail and fines up to $1,000.
- Grand theft embezzlement: Property worth more than $950 can be charged as a felony, carrying up to 3 years in state prison and fines up to $10,000.
Embezzlement from an elderly or dependent adult, or involving public funds, can result in even harsher penalties.
Legal Defenses to Embezzlement Charges
Because intent is central to embezzlement cases, your attorney at Law Office of Michael L. Fell will focus on proving that your actions were not fraudulent or criminal. Common defenses include:
- Lack of intent: You believed you had the right to use or manage the funds in question.
- Good faith mistake: A bookkeeping or accounting error led to the appearance of theft.
- Insufficient evidence: The prosecution cannot show that you actually took or used the property.
- False accusations: Workplace conflicts, personal grudges, or misunderstandings may have led to wrongful allegations.
In many cases, early involvement from an attorney can lead to reduced charges, restitution agreements, or even dismissal.
How Law Office of Michael L. Fell Can Help Protect You
Embezzlement charges can destroy a career and reputation long before a verdict is reached. That’s why it’s essential to have a defense lawyer who understands both criminal law and the complexities of financial evidence.
At Law Office of Michael L. Fell, we have extensive experience defending professionals, employees, and business owners accused of embezzlement and other white-collar crimes. Our attorneys know how to analyze financial records, challenge the prosecution’s claims, and negotiate effectively to protect your future.
If you’ve been accused of embezzlement or believe you’re under investigation, act now. Call Law Office of Michael L. Fell at (949) 585-9055 for a confidential consultation. We’ll review your case, explain your rights, and work to clear your name before the situation escalates further.