Many people are involved in businesses. But one day you come to know that expenses incurred and project invested cost is lesser than the total cash outflow. Receipts are no there but the transactions are written in ledger account. You will be discombobulated for a while and will think that where this all money went. You will see the historic data of your company that if this happening for the first time or you just came to know just now, this vanishing of money was happening for six months. Facepalming your face, you will be angry, disgusted, and may be sad because of some one from the work was involved in embezzlement, sucking the money of very company that gave him salary for his hard work so he or she could rivet his or her desired bread and circus. Notwithstanding even the most honest employees of the company are sometimes involved in this monkey business.
Embezzlement is another one of the forms of white collar crimes, falling under the umbrella of theft crimes. The crimes involves a person or an entity who misappropriates the assets which was entrusted to him or her. In this fraud, these assets, either real estate or monetary assets, are obtained lawfully. But after that they misused for the personal gain or they are simply taken over. The person, who is involved in embezzlement, destroys the fiduciary relationship the entity, person, or government and himself or herself. The nature of the embezzlement can be variegating from the person to person, or entity to entity. It can be of small and large variegating from the clerk slipping some bucks from the cash register to his or her pocket to the executive officers of business entity who are swallowing millions of dollars, as an expense incurred, in their own personal accounts. The bigger the size of embezzlement, the more harsh will be the punishment of large fines and prison. One of the most famous embezzlement cases in history of U.S. was that of Bernie Madoff, who embezzled over $50 billion from investors through a Ponzi scheme. An embezzler might not be working alone, he or she mostly befriend other people to his or her line to work on embezzlement more effectively and efficiently like befriend the contractor or consultant who pays the invoices, receives the payment, have control over some assets. And they do not do their jobs properly.
Even in embezzlement, there might be the cases where this theft fraud is accompanied by another fraud; such as Ponzi Scheme. In these kind of cases, embezzler asks the investors to invest for him or her on his or her behalf. But then rather than using that invested money as per these investors were told, money is used for the personal use or gain. Addendum to that embezzler may invite more investors to maintain the theft and furthermore clear the doubts of the aforesaid investors. But its not the only money that is embezzled, notwithstanding assets like real estate, company’s vehicle, smartphones, computers and other hardwares such as projectors and laptops are taken by them that belonged to company they were working. Embezzlement’s gamut is not only limited to corporations or private limited companies but this also happens in government institution where government funds and issued assets are ordinarily taken the officers w who had these all under control. Embezzlers might take small take small amount of large funds, so that they unnoticed. This is also phrased as “skimming off the top”.
In order to prove some one’s that he was involved in embezzlement. He must prove given statements by the Criminal Code. The typical elements of the embezzlement are as follows:
• There should be fiduciary relationship between the person who is accused of embezzlement and the one or entity that has charged other one of embezzlement.
• The person charged with the embezzlement must have been given control over the funds of the person or the entity that charged him with the embezzlement.
• Person used the funds for his or her private use or gain.
• The person’s action showed the intentions of his or her to get the owner deprive of his or her assets.
If these elements are proved in the court, person can be proved as an embezzler which will get the punishment according to nature of the funds or amount he or she has embezzled so far. This substantial control the employee — embezzler — can be proved by either from the employment records or contract they made up for further business or proceedings. But embezzlement not only get charged when the funds are under the control, but it is also charged when they transfer the funds to different party or separate bank. Addendum to that, embezzlement can be charged over the hinge of intent, if only and if it can be proved in the court that he was willing to use the funds for personal gain or use.
In some states, there are special cases pre-defined already for which embezzlement charges can be applied if that situation occurs. Like taking any animal for the sake of the animal fights can be charged in Arizona. In Connecticut, if some one steals biological sample, microorganism, culture or any kind of scientific record, he is termed as an embezzler. In Hawaii, stealing aquatic animals from the private, fenced area is embezzlement. Stealing religious items or artifacts costing more than 100 dollars are embezzlement in New York. In Wisconsin, property stolen from the corpse is also termed as an embezzlement. And there are many more special cases in other states.
Utah is one of the states where frauds are making their places in business entities sucking their life forces that are money and other assets. It has been reported that more than 35,000 counterfeit cheques were presented to the credit unions and banks every month. And about half them were belonging to the Utahns, who were victimized of the fraud. According to credit unions and banks, the average loss of Utahns, that fell victim to sweepstakes, inheritance, employment online, or dating or any kind of similar things, are $6,000. If these are multiplied by all the Utahns that are victimized somehow. The amount exceeds to the millions of loss. If this loss overlooked in terms of year, It reached billion dollars of amount that goes to the wrong pockets. “It’s a phenomenal problem,” says Karen Nelson of Wells Fargo Bank, a member of a task force alarmed and frustrated by the tide of frauds rolling over the state and the number of citizens falling for it. Lynda Worden of Ogden met this man on an Latter Day Saints (LDS) dating site on the Internet. “Seemingly he was supposed to be LDS and all that,” she said. The man said he was in the textile business and asked her to take over his business while he was in Spain on some kind of a buying trip, she claimed. He used to send a check for $43,000, and Worden initiated an account using some of her own money and began making checks and sending them out as the man directed. Soon, however, she found out he was part of a Nigerian fraud operation and it was her money, not his, going to non-existent customers. For Worden, the bottom line was $6,200 lost. “You sure learn things the hard way with the heart,” said Worden.
There was this another case that happened lake town where woman was caught red handed with the fraud of embezzling $300,000 over the period of nine years. Fayette is a town of only 250 civilians in Sanpete County. But its town clerk — for which she was sent to the prison and repay the restitution — embezzled more than 300,000 dollars over the nine years — or 12 to 13 percent of total budget of town in that span of the time, a new state audit says. The clerk, Tracy Kay Mellor, was found guilty to three misfeasance counts of misusing public money, and in November was sentenced to 45 days in jail and ordered to repay $153,391 plus interest in restitution.
Then there was this firm too which was struggling to get the profits from their business, but they were having the hard times. But soon they started getting profits once they fired their general manager McKean Strong. The firm was Sonic Plastics. As per federal prosecutors per se, Mr. McKean Strong was involved in the embezzlement of 01 million dollars from the company he used to work as general manager. He did that by making the fake company Grand Design which was supposed to deliver raw materials at discounted rate. But No one in the company ever saw those plastics resin being delivered by Grand Design people. Notwithstanding Mr. Strong was sentenced to prison pf six years and was ordered for the repayment of $911,394 to the Sonic Plastics and rest of money from 01 million to the internal revenue servicers. Before that he was living the lavish life with six bed room house and Mercedes.
To tackle all these kind of problems and frauds, Utah announced online registration for the white collar crimes offender in 2015 and became the first state doing so in USA. This registry does not take the place of any sentence or court order of restitution that was imposed on the person that was involved in white collar crimes. This is to inform the other people about the people that might try to hurt them with their fraudulent tactics. The information stored there had been public record there so that any can use it. This white collar registry is monitored and maintained by State District Attorney of Utah.
“This registry has been a goal of mine for years and will further equip citizens to protect themselves from financial fraud by making information much more accessible in this digital age. A simple search could curtail a fraudulent investment and save an entire nest egg.” – Utah Attorney General Sean D. Reyes.
Like all the states, Utah state has set some punishment based on the amount or type of embezzlement of assets. As per Utah Code Ann. 76-6-412, embezzlement is punished as given below:
• Money or property costing under $500 are termed as Class B demeanor. In this scenario – punishment may range up to $1000 or prison of 06 months or both.
• Money or property costing more than $500 fine and less than $1.500 are termed as Class A demeanor. In this case. Punishment may range up to $2.500 fine or prison of one year or both.
• Money or property costing more than $1,500 and less than $5,000 are termed as third degree misfeasance. Thus they are punishable by fine of $5,000 and up to five years in jail or both.
• Money or property costing more than $5,000 are termed as second degree misfeasance. Thus this type of crime is punishable by the fine of $10,000 and 15 years of the imprisonment or both.
Addendum to that, as per the court orders Utah State embezzlement convicted persona might have to give restitution to the owner of the assets who he or she was stealing from.
Embezzlement usually involves the defendant’s hegemony over the credit, cash, and negotiable instruments like cheques or promissory notes. Following are the core areas of business where ordinarily embezzlement happens:
• Cash: Cash are usually embezzled whenever their hug amount is given under the control of. This is where money is being pocketed rather than being used for the benefit of organization or as per the established demanded for.
• Account Management: This is the core area where people can falsify the band statement for their own benefit. Not only this even financial statements, payment to the vendors can be injected with falsification as per liking of embezzler.
• Payroll: People with power such as managers or executives with powers can draw money for their own use even though they are not real employees.
• Lapping: This is where funds collected from different people and business entities are miscalculated, then they are later used for person use.
• Other Company’s properties: No one money is not sucked by these embezzlers, sometimes they also are informed in taking other assets like lands, buildings, flats, vehicles, and other gadgets that are owned by the owner or the company.
Embezzlement Lawyer Free Consultation
When you’ve been charged with the crime of embezzlement and you need a criminal defense lawyer to defend you against these charges, please call Ascent Law for your free consultation (801) 676-5506. We want to help you,
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
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