People may initially underestimate the severity of embezzlement accusations. Many white-collar professionals accused of financial misconduct expect their employers to handle the matter internally. They worry about losing their jobs rather than the potential for criminal prosecution.
However, embezzlement is a serious criminal matter that can lead to felony charges in many cases. It is a theft offense that involves the abuse of professional trust for personal benefit. Those convicted of embezzlement may serve time in prison and could be ordered to pay restitution to their employers.
In some cases, those accused of embezzlement might face charges at the federal level, rather than at the state level. When do federal prosecutors pursue embezzlement charges instead of state authorities?
When the assets are government property
Federal prosecution for embezzlement is common practice in cases where people embezzled from federal agencies. Those employed by different government entities might misappropriate funds or even physical assets that technically belong to the government.
While the offense may occur in one specific state, the misappropriation of federal resources may make embezzlement a federal offense. Those working for government agencies are potentially at risk of federal prosecution when accused of embezzlement.
When offenses cross state lines
Embezzlement schemes are often relatively complex. They may involve large businesses that operate in many different locations. If embezzlement offenses involve activity in more than one state or the misappropriation of assets in multiple states, then the person accused is likely at risk of federal prosecution.
When embezzlement involves federal infrastructure
Those who embezzle from their employers may make use of modern information technology or wire transfers. The use of telecommunications systems, the United States Postal Service or the Federal Reserve for wire transfers could lead to federal charges against the person accused of misappropriating business resources.
Federal embezzlement charges can lead to significant penalties. The criminal record produced by a conviction or guilty plea also has a stronger chilling effect than a state-level offense typically does.
Those accused of federal crimes, including federal embezzlement allegations, may need help planning an appropriate response. Fighting back against white-collar criminal charges requires insight into the law, careful planning and a thorough review of the prosecution’s evidence with the help of a skilled legal team.