Types of Embezzlement in New York (2025)

Some people have the misperception that white-collar crimes result in lower penalties than violent crimes. This is not the case in New York. Embezzlement is a serious white-collar crime that can end careers and leave defendants facing lengthy jail or prison sentences. Anyone who was charged with embezzling money can secure the legal services of an embezzlement attorney who can explain the types of embezzlement in New York and the client’s legal options.

Understanding Embezzlement in New York

Embezzlement refers to the misappropriation of funds by someone in a position of trust. The crime involves a breach of trust, which distinguishes it from theft. Embezzlement often occurs in business settings and between individuals who have a fiduciary relationship.

Depending on the value of the funds that the defendant embezzles, the crime could lead to a misdemeanor or felony charge. Under state law, embezzlement is prosecuted under larceny statutes. A conviction could lead to fines, orders to pay restitution, or jail or prison time.

Employee Theft

Workplace embezzlement is a common form of this white-collar crime. When workers steal company funds, skim cash, falsify expense reports, or engage in payroll fraud, the perpetrators of those acts can face criminal charges.

High-level employees may engage in more sophisticated acts like misusing company credit cards or manipulating financial records. If a worker is caught committing these types of crimes, it is often through company audits that uncover irregularities and discrepancies in finance reports.

Misappropriation of Funds

When someone who is entrusted with managing money uses those assets for unauthorized purposes, they can be charged with embezzlement. These acts often involve one party diverting business funds for personal gain.

This type of crime can also occur in the nonprofit sector when executives use donations for personal expenses. Estate administrators may also misuse trust funds for personal purposes. All private and public sectors of the economy are susceptible to this type of white-collar crime.

Bank and Investment Fraud

When embezzlement involves large financial institutions, the crime can tie into bank and investment fraud. These acts include embezzling money through deceptive means from investors or clients.

Ponzi schemes are one type of embezzlement fraud that can lead dozens or hundreds of investors to huge financial losses they are not aware of. The perpetrators of these crimes are often respected figures in the financial sector, such as financial advisors, brokers, and corporate executives.

Public Corruption

Government embezzlement involves public officials who misuse taxpayer funds or resources for personal benefit. The specific acts may involve bribery, bid-rigging, fraudulent grant awards, or the direct diversion of public money into private accounts.

While committing those crimes, the public official may engage in additional criminal acts to facilitate or cover up the embezzlement. These additional crimes can include falsifying government records or manipulating contracts.

If criminal charges are brought, these types of cases often gain public attention. Prosecutors often pour considerable resources into these types of cases because the involvement of public or elected officials is seen as an egregious breach of the public’s trust.

Forgery and Fraudulent Transactions

Financial fraud often plays a role in embezzlement cases. This could include the falsification of documents to cover up criminal acts. Other examples include:

• Check fraud
• Credit card fraud
• Falsified contracts
• Identity theft

One example would be someone who forges financial records to cover up missing money. Or a worker may generate fake invoices to bill for non-existent services. These crimes can be prosecuted in addition to embezzlement charges.

FAQs

Q: Are White-Collar Crimes Harder for Prosecutors to Prove?

A: White-collar crimes are more difficult to prove than traditional crimes for several reasons. The evidence used to prosecute white-collar crimes like embezzlement is often complicated and difficult to interpret. Criminal intent plays an important role in embezzlement cases. If the defendant can show that they did not intend to engage in criminal activity, that can make it harder for prosecutors to prove the defendant’s guilt.

Q: Are There Different Types of Embezzlement?

A: There are many different types of embezzlement. Some acts involve public officials and the misappropriation of public funds, while other types of embezzlement occur within banking and financial institutions. When criminal charges are brought, the main factors that determine how serious the charges are include the value of the funds that were stolen and whether vulnerable populations were targeted.

Q: Is Embezzlement a Felony in NY?

A: Embezzlement can be brought as a felony in New York. Embezzlement is charged under the state’s larceny statutes, and the specific criminal charge depends largely on the value of the funds that were misappropriated. If significant funds were stolen, the defendant may face felony charges in criminal court. Felony convictions can result in severe penalties, including substantial fines, restitution, and lengthy prison sentences.

Q: What Four Elements Must Be Proven for Embezzlement?

A: Four common elements that must be proven in an embezzlement case include proving the fiduciary relationship between the defendant and victim, proving the relationship played a role in the crime, showing that the defendant took ownership over the funds, and proving criminal intent. If any of these elements cannot be proven by prosecutors, the charge of embezzlement can be challenged by a defense attorney.

Q: Can Embezzlement Be Settled Out of Court?

A: Embezzlement can be settled outside of a trial, but any resolution to a criminal case must be signed off by a judge. One example would be a plea bargain agreement. If prosecutors offer a favorable plea bargain and the defendant accepts, that agreement would still have to be approved by a judge. While a plea bargain avoids the need for a trial, the matter is still technically handled through the courts.

Schedule Your Embezzlement Criminal Charge Consultation Today

Embezzlement charges are a serious offense that requires decisive action by defendants. If you are facing embezzlement charges, don’t delay preparing your defense. With the criminal defense team of The Vitaliano Law Firm, you can fight the charges you are facing and work to get your side of the story across.

Prosecutors often rely on intimidation rather than solid evidence. We can scrutinize the evidence being used against you to find weaknesses in the prosecution’s case. To schedule your criminal defense consultation, contact our office today.