Misappropriation of Funds

The misappropriation of funds is stealing money or other property that was entrusted to the perpetrator but is owned by someone else, who is the victim. It is the intentional, illegal use of the property by an unauthorized person, particularly by a public official, a trustee, the executor of an estate, or by anyone who has a fiduciary duty and responsibility for someone else’s funds or property. Sometimes misappropriation is referred to as theft or embezzlement, or larceny, or fiduciary fraud.

Misappropriation is also the illegal diversion of money by forging documents, or otherwise misleading the beneficiaries and owners of the funds. Misappropriation is a felony crime punishable by imprisonment. In general, misappropriation results in charges of embezzlement. The charges will depend on the type of trust that was assumed or understood as well as the total amount embezzled. Each state also has the right to determine their own specific penalties for embezzlement, however embezzlement from the elderly, from individuals with special needs or from public accounts by elected, employed or appointed officials tend to carry the most significant penalties. When someone is charged with embezzlement or misappropriation of funds, a criminal defense attorney should be consulted to ensure proper representation.