What Are the Potential Sentences for Embezzlement in California?
Embezzlement is a serious offense in California, often carrying consequences that extend beyond jail time, including financial restitution and long-lasting impacts on one's career and reputation. Under California law, embezzlement refers to a type of theft where an individual, entrusted with money or property, misuses it for personal gain.
The severity of an embezzlement sentence depends on the specifics of the crime, including the value of the embezzled property. If you’re facing embezzlement charges, understanding the potential legal ramifications is essential for preparing a strong defense with a criminal defense attorney. I’m Zachary McCready of McCready Law Group, and I can help you in California.
Understanding Embezzlement
California Penal Code Section 503 defines embezzlement as the "fraudulent appropriation of property by a person to whom it has been entrusted." In other words, it involves someone misusing assets entrusted to them for personal gain. Embezzlement is unique among theft crimes due to its breach of trust.
Examples of Embezzlement
Examples of embezzlement can range widely, depending on the circumstances and the amount involved:
Employee misuse: An employee responsible for handling company funds diverts those funds for personal use, such as transferring money from the company account to pay personal expenses.
Financial manager fraud: A financial advisor or investment manager takes client funds and uses them for personal investments, failing to inform the client.
Misappropriation of trust funds: A trustee who has been given access to manage a family trust diverts funds for personal purchases instead of using them for their intended purpose.
These scenarios showcase how embezzlement is often perpetrated by individuals who have been given a high degree of trust, and the severity of charges can reflect this betrayal.
How Embezzlement Is Charged in California
In California, embezzlement is treated as a form of theft and can be categorized as either petty theft or grand theft, depending on the value of the assets involved. The distinction generally hinges on a threshold value of $950:
Petty theft embezzlement: In cases where the embezzled property is worth less than $950, the offense may be treated as petty theft. This is typically a misdemeanor offense and is often associated with less severe penalties.
Grand theft embezzlement: If the property embezzled is worth $950 or more, the offense may be classified as grand theft. Grand theft embezzlement can be charged as either a misdemeanor or felony, depending on factors like the defendant’s criminal record, the amount embezzled, and any aggravating factors that may increase the seriousness of the crime.
Factors Influencing Charges
Several factors can influence how embezzlement is charged in California:
Amount embezzled: Higher amounts often result in more severe charges. For instance, embezzling large sums from a company could lead to felony charges with enhanced penalties.
Circumstances of the offense: Crimes involving a high degree of trust (e.g., caretakers or financial advisors) are often met with stricter penalties. If the embezzlement was carried out as part of a larger scheme or involved organized efforts, this might increase the severity of the charges.
Criminal record: A defendant with prior theft-related convictions may face harsher penalties or be less likely to receive sentencing leniency.
Understanding these distinctions and influencing factors is crucial in assessing the possible outcomes of an embezzlement charge and preparing an appropriate strategy with a criminal defense attorney.
Sentencing Guidelines for Embezzlement in California
Misdemeanor embezzlement applies when the value of the stolen property is less than $950 or when the crime qualifies as petty theft. For misdemeanor embezzlement, potential sentences include:
Jail time: Up to six months in county jail.
Fines: Up to $1,000 in fines.
Restitution: Courts often require the defendant to compensate the victim for their losses, meaning they must repay the full amount stolen.
Felony Embezzlement
When the embezzled amount meets the $950 threshold or higher, the offense may be charged as grand theft and could be classified as a felony, especially if the theft involved significant sums or breached a high level of trust. Felony embezzlement sentences can include:
Prison sentences: Felony embezzlement can carry prison terms of 16 months, two years, or three years, particularly if the defendant has a criminal record.
Restitution and fines: Besides jail time, felony sentences almost always require the defendant to pay restitution to the victim. Additionally, fines may reach $10,000 or more, depending on the amount involved and the circumstances.
Aggravated Sentences for Large-Scale Embezzlement
California law includes sentence enhancements for embezzlement cases involving especially high dollar amounts. These enhancements can result in additional prison time, even on top of the standard penalties for felony embezzlement. Specific sentencing enhancements include:
An extra year for amounts exceeding $65,000
Two additional years for amounts exceeding $200,000
Three additional years for amounts exceeding $1.3 million
Four additional years for amounts exceeding $3.2 million
This approach reflects the California criminal justice system’s focus on imposing harsher penalties for large-scale financial crimes that inflict significant harm on victims.
Sentencing Alternatives and Probation Options
In California, some first-time offenders may be eligible for diversion programs, especially for low-level embezzlement cases. These programs allow defendants to avoid jail time by meeting specific requirements, which may include:
Counseling or rehabilitation: Completing a specified number of hours in counseling programs designed to address the behavior that led to the offense.
Restitution: Full repayment to the victim is often required.
If a defendant successfully completes the program, their charges may be dismissed or reduced, allowing them to avoid a criminal record.
Probation
Probation is another common sentencing alternative for first-time or low-level offenders. In lieu of jail time, individuals placed on probation must adhere to certain conditions, which may include:
Community service: Completing a designated number of community service hours.
Regular check-ins with a probation officer: Individuals must comply with mandatory reporting requirements.
Restitution payments: Many probation sentences require the defendant to make regular restitution payments until the victim is fully compensated.
Restitution
In nearly all embezzlement cases, courts require restitution, meaning that the defendant must repay the victim the amount they embezzled. Restitution can be ordered alongside probation or jail time and is intended to make the victim whole. For high-dollar cases, restitution payments can take years and impose a long-term financial burden on the convicted individual.
Collateral Consequences of an Embezzlement Conviction
Impact on Employment
A conviction for embezzlement can be particularly harmful to a defendant’s employment prospects, especially for jobs in finance, management, or positions requiring trust. Employers are generally cautious about hiring individuals with theft-related convictions, and a record of embezzlement may limit career growth, even in unrelated fields.
Professional Licenses
Licensed professionals, such as accountants, financial advisors, or real estate agents, may face additional penalties beyond the criminal court system. Licensing boards often conduct their own investigations, and a conviction for embezzlement can result in the suspension or revocation of a professional license.
Immigration Consequences
Non-U.S. citizens convicted of embezzlement face the risk of deportation or denial of naturalization, as embezzlement is considered a crime of moral turpitude. Even if the defendant avoids jail time, the immigration consequences may be severe, potentially impacting residency or citizenship status.
Public Reputation
The negative impact on one’s public reputation is another significant consequence. Embezzlement charges are often public records, meaning potential employers, colleagues, and community members may be aware of the conviction. This stigma can affect personal relationships and limit social or business opportunities.
Defenses Against Embezzlement Charges
Lack of Intent
Proving that the defendant lacked intent to permanently deprive the owner of their property can be a strong defense argued by a criminal defense attorney. Embezzlement requires intentional misappropriation, so demonstrating that the funds were used inadvertently or with the intent to return them could lead to a reduction or dismissal of charges.
Insufficient Evidence
The burden of proof rests on the prosecution, which must show clear evidence of the defendant’s intent and actions. If evidence is lacking or poorly documented, this can serve as a basis for a criminal defense attorney to request a dismissal or reduction of the charges.
Consent
If the defendant can prove they had the owner’s consent to use or manage the funds in question, it may negate claims of misappropriation. For example, if funds were used in line with company policies, this may serve as a defense.
Coercion or Duress
If the defendant was coerced into committing embezzlement under duress, this could mitigate their culpability. For example, if a superior pressured the defendant to misappropriate funds, this context could be critical for a criminal defense attorney’s arguments.
Contact a Criminal Defense Attorney Today
Embezzlement charges in California carry consequences. If you’re facing embezzlement charges, working with me at McCready Law Group can make a difference in the outcome of your case if you live in Long Beach, California; Huntington Beach, California; Irvine, California; Lakewood; Orange County; and surrounding areas. Reach out to me today.