Los Angeles Embezzlement Lawyer

When people hear the word embezzlement, they tend to imagine sophisticated financial crimes by Wall Street executives. In reality, California’s embezzlement law is much broader and is often used against everyday people: bookkeepers, cashiers, office managers, caregivers and small business partners. An embezzlement charge can threaten your freedom, your career and your reputation, often before you’ve had a chance to explain what happened.

At Manshoory Law Group, our Los Angeles embezzlement lawyers defend people accused of embezzlement in state and federal courts across Southern California. Call us today for a free consultation.

What is Embezzlement in California?

Penal Code 503 defines embezzlement as “the fraudulent appropriation of property by a person to whom it has been entrusted.” The key difference from ordinary theft is trust: you were lawfully given access to the money or property, and you’re accused of using it for yourself.

Common examples include:

• Employee theft: an employee takes cash from the register or transfers company funds to a personal account.
• Payroll or expense fraud: a bookkeeper creates fake invoices, vendors or reimbursements.
• Business partners: one partner uses shared business funds for personal expenses.
• Fiduciaries and trustees: a trustee, executor or agent under a power of attorney misuses funds they manage for someone else.
• Elder and dependent adults: a caregiver or relative uses an older person’s money, which can be charged under Penal Code 368.
• Public funds: a government employee misuses public money (Penal Code 424).

What the Prosecutor Must Prove

To convict you of embezzlement, the prosecutor must prove beyond a reasonable doubt that:

1. An owner entrusted their property to you;
2. The owner did so because they trusted you;
3. You fraudulently used or took the property for your own benefit; and
4. When you did so, you intended to deprive the owner of the property or its use.

A person acts fraudulently when they take unfair advantage of another person or cause them a loss by breaching a duty, trust or confidence. For example, a bank teller has a duty to accurately record deposits. If the teller keeps the money, that may be embezzlement.

Embezzlement is a specific intent crime. The prosecutor must prove not just that you moved the property, but that you intended to use it for your own gain. If the prosecutor can’t prove intent, or any one of the four elements, you are entitled to a not guilty verdict.

Embezzlement Penalties in Los Angeles

Under Penal Code 514, embezzlement is punished the same way as theft of property of the same value.

Embezzlement of $950 or Less (Petty Theft)

A misdemeanor punishable by up to 6 months in county jail and a fine of up to $1,000.

Embezzlement of More Than $950 (Grand Theft)

A “wobbler” that can be charged as a misdemeanor or a felony. As a misdemeanor, it carries up to 1 year in county jail. As a felony, it carries 16 months, 2 years or 3 years, usually served in county jail under California’s realignment law.

Sentencing Enhancements for Large Losses

If you’re accused of two or more related felonies involving a pattern of fraud or embezzlement, the aggravated white collar crime enhancement (Penal Code 186.11) can add extra prison time when losses exceed $100,000, and more when they exceed $500,000. Large fines can also apply.

Restitution

Under the California Constitution, anyone convicted must pay restitution to the victim for their losses. In embezzlement cases, restitution can be the largest financial consequence.

Other Consequences

A conviction can also affect professional licenses, future employment, immigration status, and your ability to work in positions of trust. Employers may also file a separate civil lawsuit.

How to Fight Embezzlement Charges in California

Every case is different, but common defenses include:

• No intent to steal: you didn’t intend to deprive the owner, such as when funds were moved by mistake or for a legitimate business reason.
• Claim of right: you openly took the property believing in good faith it was yours, even if that belief was wrong (Penal Code 511).
• Authorized use: the owner gave permission for how the money was used.
• Accounting errors: losses came from bookkeeping mistakes, poor record-keeping or someone else’s actions, not theft.
• False accusation: an employer, partner or family member accused you to cover their own mistakes or out of a dispute.
• Insufficient evidence: others had access to the same accounts, and the evidence doesn’t prove you were responsible.

Can I Avoid Charges by Paying the Money Back?

Saying you planned to repay the money is not a defense on its own (Penal Code 512). However, if you voluntarily return or offer to return the property before charges are formally filed, the court can consider that in reducing your punishment (Penal Code 513). In some cases, a lawyer can negotiate repayment or a civil resolution before the prosecutor files charges. Talk to an attorney before you contact your employer, sign anything, or repay money, because those steps can be used as evidence against you.

What to Do If You’re Accused of Embezzlement

1. Don’t explain or confess to your employer, auditors or police before talking to a lawyer.
2. Don’t delete files or records, which can lead to additional charges.
3. Save your own records, such as emails, approvals and pay records, if you can legally access them.
4. Call a defense lawyer early. Many embezzlement cases are investigated for months before charges are filed, and early action can shape the outcome.

Why Choose Manshoory Law Group

Manshoory Law Group is a criminal defense-only firm. Our attorneys review the financial records, challenge the prosecution’s accounting, and look for every opportunity to get charges reduced or dismissed. We represent clients throughout Los Angeles County and Southern California, in both state and federal court. Learn more about our white collar crime defense, petty and grand theft defense and federal criminal defense services.

Los Angeles Embezzlement FAQs

Is embezzlement a felony in California?

It can be. Embezzlement of more than $950 can be charged as a felony or a misdemeanor. Embezzlement of $950 or less is a misdemeanor.

What is the difference between embezzlement and theft?

Embezzlement involves property you were trusted with, such as an employer’s funds. Ordinary theft involves taking property you had no right to access.

Can embezzlement charges be dropped?

Yes. Charges may be dropped or reduced if the evidence is weak, intent can’t be proven, or a resolution is negotiated, sometimes before charges are filed.

Can an embezzlement conviction be expunged?

Many embezzlement convictions can be expunged after you complete probation. Learn more about expungement in California.

Can embezzlement be a federal crime?

Yes, if it involves a federally insured bank, federal funds or interstate schemes. Federal cases carry different procedures and penalties.

Contact a Los Angeles Embezzlement Lawyer for a Free Consultation

The risks of an embezzlement conviction are too great to face alone. Our attorneys will review the facts of your case, explain your options and build the strongest possible defense. Call Manshoory Law Group for a free consultation with a Los Angeles embezzlement lawyer.