David L. McCormick

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What is embezzlement?

On Behalf of | Jun 10, 2021 | White Collar Crimes

Unlike regular theft, embezzlement involves sneaking funds from a company into your personal bank account. Some embezzlers in Minnesota get away with it for years before their employer catches on. Regardless of the amount that they stole, embezzlement is a serious crime–and if your company accuses you of embezzlement, you might be looking at life-altering charges.

What are some common embezzlement schemes?

One scheme involves stealing payroll funds. For example, the HR employee might pay a fake salary to employees who don’t work at the company. Instead, they deposit the funds right into their bank account. The business might not notice for a few months because they assume that they can trust HR to manage the payroll appropriately. When they get caught, the prosecution might charge them with white collar crimes.

Another popular scheme involves making up fake expenses. For example, an employee might write invoices from made-up companies or vendors. The business pays the invoice, and the employee pockets the money. They might also make false invoices from real vendors and exaggerate the expenses. Some people have made hundreds of thousands of dollars before their company figured out what they were doing.

Some employees embezzle funds by misusing their corporate credit cards. They might use a card for other expenses and claim that they used them for business reasons. To keep their company from seeing the financial statements, they have the statements mailed to their house. Others have even opened up credit cards and connected them to the business account so they could spend their employer’s money.

Could your company accuse you of embezzlement?

Your employer might accuse you of embezzlement if they believe that they’ve found fraudulent activity related to their expenses. Whether it’s a small discrepancy or a large one, embezzlement charges can alter the course of your career. You may need to hire an attorney to defend yourself in court.