Embezzlement is often referred to as “white collar” crime. It is a form of theft. The allegation for the person who has been charged is that they misappropriated or misused financial assets that they had access to because of their position.
For those facing an embezzlement charge, a conviction could lead to significant criminal penalties, including incarceration. That is why it is so important to understand what potential defenses there are. Three examples are discussed below.
Lack of a relationship
First of all, both parties have to be in a fiduciary relationship for embezzlement to occur. An example could be a trustee who is accused of embezzling from a trust. Another example is an executive at a multinational corporation who has been accused of embezzling from corporate accounts. While certain actions may still qualify as theft, embezzlement charges may not be appropriate if there was not a fiduciary relationship.
Lack of intent
One very common defense is simply a lack of intent. For instance, the chief financial officer of a business may be accused of embezzling money for their own gain, but they claim that they simply made a negligent mistake. They never meant to transfer funds into their own bank account. They deny that it was a criminal action because there was no intent to defraud their employer.
Prior authorization
Finally, there could be miscommunication issues that have led to such a mistake. Perhaps the person accused of embezzlement claims that they had prior authorization to remove those funds. They genuinely did not think they were doing anything wrong and do not believe they have committed a crime.
These are just three examples to consider. Those facing white collar crime charges must be well aware of the legal defense options at their disposal. It’s important to get experienced legal guidance as early as possible.