Financial crimes can have serious legal consequences, and misappropriation of funds is one of the most misunderstood offenses. Whether you’re a business professional, employee or fiduciary, committing this crime can put your freedom and reputation at risk. Here’s what you need to know.
What Is Misappropriation of Funds?
Misappropriation of funds occurs when someone entrusted with money uses it for unauthorized purposes. Usually, this crime involves a person such as a financial advisor or public official taking money that doesn’t belong to them and using it inappropriately.
Examples of misappropriation of funds include:
- A payroll manager diverting company money into a personal account.
- A nonprofit director using donations to pay for personal expenses.
- A financial advisor investing client money in unauthorized or risky ventures for personal gain.
The common thread in all these instances is that the accused had lawful access to the money but used it in an improper or unauthorized way.
Misappropriation vs. Embezzlement: What’s the Difference?
Misappropriation of funds and embezzlement are similar, but not identical. The distinction lies in the legal specifics:
- Embezzlement is a type of misappropriation that involves theft by someone legally entrusted to manage or monitor the money or property – for example, an accountant siphoning funds from a client account.
- Misappropriation covers a broader range of financial misconduct, including theft, misuse or unauthorized use of funds, even if there’s no intent to permanently deprive the rightful owner.
Both are white-collar crimes and can result in criminal charges, fines, restitution and jail or prison time depending on the severity of the offense.
Legal Consequences
In California, misappropriation of funds can be either a misdemeanor or felony, depending on the amount of money involved and the specific circumstances. Penalties may include:
- Jail or prison time
- Fines and restitution
- Probation
- Permanent damage to your professional reputation and future employment opportunities
Penalties can be even more severe in cases involving public officials or fiduciaries.
Why You Need a Criminal Defense Attorney
Misappropriation of funds is a serious accusation that can escalate quickly. You may feel shocked, confused or unsure how to defend yourself. That’s why you need skilled, experienced legal representation.
The Law Office of Salvatore P. Ciulla will work hard to uphold your constitutional rights throughout the legal process, getting you the best possible outcome for your case.
- Thorough case evaluation: We analyze every detail to determine whether funds were misused and whether criminal intent can be proven.
- Strategic defense: We build a defense tailored to the specific facts of your case, including challenging the evidence and highlighting mitigating factors.
If you or someone you know faces charges related to misappropriation of funds, don’t wait to seek legal counsel. Contact us today to schedule a confidential consultation. With decades of experience and a reputation for fighting for everyday people, Sal Ciulla will work to protect your future and defend your name.
