Embezzlement

Technical Communications

Research Paper

By: Kelly Floyd

Abstract• Embezzlement is a serious crime that affects a lot of people. Embezzlement is the stealing

of money or property for one’s own use in which it violated the trust between the victim and the embezzler (Company 1). Embezzlement is a criminal crime but can also be a civil

crime (Reuters) and it is known as “white collar crime (LW).” There are many ways to make sure a company or individual does not become a victim of embezzlement and it is by

keeping track of their employees and looking over documents to keep track of where the money is going. If money or documents start missing or employee never wants to take time

off and works a lot of overtime and they are living more comfortably could be signs of embezzlement going on. A company or individual has to have significant evidence that the defendant did steal the money or documents to win over the case and the defendant must have been in charge of assets (Law 3). If a person is convicted of embezzlement they could pay hefty fines, go to prison, be on probation, could be forced to pay the victim back, and

lose all their legal rights (Imhoff & Associates). Between 2001 and 2007 statistics show 2007 had the highest rate of arrests for embezzlement estimating 22, 400 people arrested. One of the most serious embezzlement cases was the case of Bernie Madoff. Madoff was

sentenced to one hundred and fifty years in prison for the largest phonzi scheme in history, stole over $19.4 billion dollars from friends, banks, and companies (Searcey). He was charged with embezzlement, bank robbery, espionage, and drug dealing (Searcey).

What is Embezzlement?

Embezzlement is the stealing of money or property for one’s own use in which it violated the trust between the victim and

the embezzler (Company 1). Embezzlement is considered theft or

larceny of money or property by a person who has trust or responsibility over the

money or property (Reuters 1).

What is Embezzlement?

• Trial as a Criminal and/or Civil Case.• Known as White Collar Crime (LW 1).

• Banks, Corporations, Shops, and Charities can become the victim (Geek 1

Types of Embezzlement

• People can embezzle companies by stealing money from a cash register or by using a computer to move funds or property around to false accounts (Geek 1).

• People can also embezzle by falsifying records, documents, and imaginary employees in which the person in charge of the funds will create a person for a job and put them into the payroll, so that the imaginary employee is then paid a salary for the embezzler to take and cash the check (Geek 1).

How to Avoid becoming a Victim

• Require two signatures on checks (Attorneys)• Make sure that there is a different person balancing the bank

statements than the person who writes or deposits the checks (Attorneys).

• Review bank statements and checks (Attorneys)• Be familiar with suppliers (Attorneys)• Require employees to take a one-week vacation every year

(Attorneys)• Set a good example and stress ethics (Attorneys)• Background checks• Keep eyes open on employees in charge of assets

Ways companies are avoiding Embezzlement

• They have cash registers to keep track of money that is coming and going and sales

(Institute).• Companies also divide responsibility to

everyone so there is not only one person trusted with money or documents (Institute).

Signals of Embezzlement

Unusual drop in profits (Attorneys) Records are disorganized (Attorneys) Documents are missing (Attorneys) Duplicate payments (Attorneys)

Employee rewrites records for ‘”neatness”’ (Attorneys) Employee refuses to go on vacation and works a lot of

overtime (Attorneys). Employee refuses a promotion (Attorneys)

Employees life style changes

Points to Prove in Embezzlement Cases

The defendant was trusted with the complainant’s property (Law).

The loss property came into the defendant’s possession through that relationship (Law).

The defendant assumed ownership of the property or gave the ownership to someone else

(Law).The defendant’s handling of the property was

intentional (Law).

Consequences of Embezzlement

– There can be some huge penalties against someone who is the embezzler of the crime

against the company or individual. – The consequences of embezzlement can be

more than one of the following actions: they could pay huge fines, could go to prison, probation, the government can force the

criminal to pay all the money back to the victim, and they will lose all their legal rights (Imhoff

& Associates).

Arrests for Embezzlement(Puzzanchera)

2001

2002

2003

2004

2005

2006

2007

12000 14000 16000 18000 20000 22000 24000

Arrest by Embezzlement 2001-2007

Embezzlement

Arrests for EmbezzlementArrests For Embezzlement

2001-2007(Puzzanchera)

2001 20, 200

2002 18, 600

2003 16, 800

2004 17, 300

2005 19, 000

2006 20, 000

2007 22, 400

Case of Bernie Madoff• Bernie Madoff was sentenced to one hundred and fifty years in prison for fraud,

embezzlement, and drug dealing (Jr.).• Madoff was a former stock broker, investment adviser, and non-executive chairman

of the NASDAQ (Jr.). • Madoff was the head person in a $50 Billion dollar Ponzi scheme (Jr.). • Madoff stole over $19.4 billion dollars from friends, banks, and companies

(Searcey). • He was charged with embezzlement, bank robbery, espionage, and drug dealing

(Searcey).• The eleven counts are: count one- Securities fraud, count two- Investment adviser

fraud, count three- Mail fraud, count four- Wire fraud, count five- International money laundering to promote specified unlawful activities, count six- International

money laundering to conceal and disguise the proceeds of specified unlawful activity, count seven- Money laundering, count eight- False statements, count nine- Perjury, count ten- Making a false filing with the securities and Exchange Commission, and count eleven- Theft from an employee benefit plan (WABC).

Conclusion

• Embezzlement is a serious crime and companies and individuals should keep an eye on employees in charge of their assets to make

sure they do not become the victim of embezzlement. People can never be too

cautious when it comes to their money and other people’s money.

Work CitedWork Cited

Attorneys, Crime. Article Explores Embezzlement Trends and Statistics. 27 December 2005. 18 February 2010

<http://www.embezzlementnews.com/2005/12/article_explore.html>.Company, Houghton Mifflin. Dictionary.com. 2009. 09 February 2010 <http://dictionary.reference.com/browse/embezzlement>.Geek, Wise. What is Embezzling? 2003-2010. 12 February 2010 <http://www.wisegeek.com/what-is-embezzling.htm>.Imhoff & Associates, P.C. Embezzlement. 2010. 18 02 2010 <http://www.criminalattorney.com/pages/crimes/embezzlement.htm>.Institute, Legal Information. Embezzlement. 2010. 12 February 2010 <http://topics.law.cornell.edu/wex/embezzlement>.Jr., Julie Creswell and Landon Thomas. The Talented Mr. Madoff. 24 Janurary 2009. 2010 20 February

<http://www.nytimes.com/2009/01/25/business/25bernie.html?em>.Law, Einstein. Lawyer Shop. 2008. 12 February 2010 <http://www.lawyershop.com/practice-areas/criminal-law/white-collar-crimes/

embezzlement/>.LW. Securities Law Firm- Embezzlement Laws. 2009. 08 February 2010 <http://www.securitieslawfirms.com/embezzlement-

definition.cfm>.Puzzanchera, C., Adams, B., and Kang, W. Easy Access to FBI Arrest Statistics: 1994-2007. 2009. 20 February 2010

<http://www.ojjdp.ncjrs.gov/ojstatbb/ezaucr/asp/ucr_display.asp>.Reuters, Thomson. Find Law-- Embezzlement. 2009. 08 February 2010 <http://criminal.findlaw.com/crimes/a-z/embezzlement.html>.Searcey, Dionne. Bernie Madoff, the $19 Billion Con, Makes New Friends Behind Bars. 15 December 2009. 18 February 2010

<http://www.ask.com/bar?q=madoff&page=1&qsrc=121&dm=all&ab=1&u=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB126049373613486817.html&sg=gYHgwlkKhVLpIAadN88%2BM7pylz8yg6OqWwnRu7L8CIg%3D&tsp=1266875823393>.

WABC. Complete list of Bernie Madoff Charges. 2010. 20 February 2010 <http://abclocal.go.com/wtvd/story?section=news/local&id=6705898>.