What is Embezzlement?
Embezzlement is a type of white-collar crime that involves the theft of funds or assets by a person in a position of trust or responsibility. This individual typically has legal access to the assets but misappropriates them for personal gain. Embezzlement is a serious offense that can have severe consequences.
Examples of Embezzlement
One common example of embezzlement is when an employee skims cash from a company’s revenue or redirects company funds into their personal account. Another example is when a financial advisor misuses a client’s funds for their own benefit.
Case Studies
One infamous case of embezzlement is the Bernie Madoff scandal, where Madoff ran a Ponzi scheme and embezzled billions of dollars from his clients. Another case is that of Enron, where executives engaged in accounting fraud to embezzle funds and manipulate the company’s financial statements.
Statistics on Embezzlement
- According to the Association of Certified Fraud Examiners, embezzlement accounts for 7% of all fraud cases.
- The median loss due to embezzlement is $140,000.
- Embezzlement schemes typically last around 18 months before they are detected.
