Legal Definitions - embezzler

An embezzler is an individual who dishonestly takes or uses money or property that was entrusted to them by another person or organization, for their own personal benefit. This act involves a significant breach of trust, as the embezzler was given legitimate authority or responsibility over the assets but then misused that authority for fraudulent gain.

Here are some examples to illustrate the concept of an embezzler:

• Example 1: The Charity Treasurer

  Maria serves as the volunteer treasurer for a local community outreach charity. In this role, she is responsible for managing the charity's bank accounts, processing donations, and paying bills. Over a period of six months, Maria secretly transfers small sums of money from the charity's operating account into her personal savings account, creating fake receipts to cover the missing funds. She uses this money to pay for her personal expenses.

  Explanation: Maria was explicitly entrusted with the charity's funds and given authority over its bank accounts. By fraudulently diverting these funds for her own personal use, she acted as an embezzler, betraying the trust placed in her by the organization.

• Example 2: The Investment Manager

  Robert is an investment manager at a financial firm, responsible for overseeing the retirement portfolios of several clients. He has the authority to make trades and manage funds within these accounts according to his clients' instructions. One of his clients, an elderly widow, gives him full discretion over her substantial portfolio. Robert begins to secretly transfer portions of her funds into a shell company he secretly owns, reporting false investment gains to her to mask the theft.

  Explanation: Robert was entrusted with his client's significant financial assets and given the authority to manage them responsibly. His actions of diverting these funds for his personal gain, rather than for the client's benefit, clearly demonstrate him acting as an embezzler.

• Example 3: The Retail Store Manager

  Sarah manages a small boutique clothing store. Her responsibilities include handling daily cash receipts, making bank deposits, and managing inventory. Instead of depositing the full amount of cash collected each day, Sarah regularly skims a small percentage for herself before making the bank run. Additionally, she occasionally takes high-value clothing items from the store's inventory without payment, claiming they were "damaged" or "lost."

  Explanation: Sarah was entrusted with the store's daily cash flow and its valuable inventory. Her actions of taking money and goods for her personal use, rather than managing them honestly for the business, identify her as an embezzler who abused her position of trust.