Embezzlement is a serious white-collar crime involving the fraudulent conversion of assets by someone in a position of trust—such as an employee, fiduciary, or officer—who misuses those resources for personal use or personal gain. This financial crime can involve the misappropriation of personal property, bank accounts, credit cards, or cash, and often arises in situations where someone is entrusted with managing funds or property.
Importantly, embezzlement does not require permanent deprivation of the assets. Temporary use, even with intent to return the amount of money, can still constitute the crime of embezzlement if done with fraudulent intent.
What Is Embezzlement Under Georgia State Law?
In Georgia, embezzlement is commonly prosecuted as theft by conversion, codified under O.C.G.A. § 16-8-4. This law applies when someone lawfully obtains property under a legal obligation—for example, through a lease, employment, or contract—and then knowingly uses that property for their own use, in violation of that obligation.
For example, a store clerk diverting funds from a cash register or a treasurer depositing organizational funds into personal accounts may be charged with embezzlement. Georgia courts have long recognized this offense as a form of larceny, or theft, under state law, especially when it involves a breach of fiduciary duty.
Georgia appellate decisions—including Scarboro v. State and Smith v. State—refer to embezzlement as “larceny after trust,” highlighting how this criminal offense arises specifically from violations of trust rather than unlawful initial possession.
Examples of Embezzlement Cases in Georgia
Here are several examples of embezzlement prosecuted under Georgia law:
- An executive using corporate funds for personal use, even temporarily (Mangham v. State).
- A financial secretary collecting organizational donations but failing to remit them (Cook v. State).
- An employee moving large deposits into a personal account without a clear source of income (Stack-Thorpe v. State).
These embezzlement cases reflect the diverse types of embezzlement, ranging from small-scale misdemeanor conduct to high-value felonies involving complex financial fraud or ponzi schemes.
Federal Embezzlement Law and Penalties
The U.S. Department of Justice investigates and prosecutes a wide range of federal embezzlement charges, particularly those involving public agencies, financial institutions, or interstate commerce. Under 18 U.S.C. §§ 641–670, embezzlement is defined as the wrongful appropriation of funds or property lawfully obtained but used in a manner inconsistent with the defendant’s job description or legal obligations.
Federal prosecutors must establish that:
- A fiduciary or trust-based relationship existed.
- The defendant obtained the property by virtue of their position.
- There was a fraudulent conversion for personal gain.
- There was intent to deprive the rightful owner.
In federal embezzlement cases, the intent to return the property does not negate the offense. Courts have held that even short-term use for personal benefit qualifies as embezzlement.
Federal Penalties
- Less than $1,000: Often prosecuted as a misdemeanor.
- Over $1,000: Charged as a felony with prison terms ranging from 1 to 30 years, depending on the scale of the illegal activity and the institution involved.
Charges may also be accompanied by related offenses like money laundering, theft crimes, or conspiracy.
Criminal Penalties Under Georgia Law
Georgia classifies embezzlement as a form of theft crime, with penalties based on the amount of money involved:
- Under $1,500 – Misdemeanor: Up to 1 year in jail and/or a $1,000 fine.
- $1,500.01–$5,000 – Felony: 1 to 5 years in prison.
- $5,000.01–$24,999.99 – Felony: 1 to 10 years.
- Over $25,000 – Felony: 2 to 20 years.
- Third conviction or more: Mandatory felony sentencing, even for lesser amounts.
Depending on the facts, courts may impose a prison sentence, probation, or a combination.
Under Investigation or Accused of Embezzlement?
If you are under investigation or have been accused of embezzlement, even if no charges have been filed, it is crucial to consult with a qualified criminal defense lawyer immediately. These cases often begin with audits, internal reviews, or inquiries from law enforcement—and early intervention from an experienced criminal defense attorney can dramatically change the outcome.
At Garland, Samuel & Loeb, our distinguished law firm has represented individuals and organizations in high-stakes white-collar crime cases for over 75 years. Our attorneys bring unmatched trial skill, deep knowledge of criminal law, and a reputation for strategic, fearless representation in state and federal courts.
Whether you are facing active criminal charges or are simply concerned about potential liability from a financial review, our firm is prepared to defend your rights and reputation.
Contact us today at 404-262-2225 for a free consultation with a veteran criminal defense attorney.
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