If a person is entrusted with someone else's money, belongings or assets simply uses them for their ain benefit, they might be guilty of misappropriation.

Misappropriation refers to the intentional, unlawful utilize of another party's property for purposes non authorized by the property's owner. This includes the misuse of a visitor's funds, merchandise secrets, data or other assets past an individual who has access to those things but does not have ownership of them.

Common types of misappropriation

1. Misappropriation of funds

Misappropriation of funds refers to the illegal use of another person's coin. While the person committing the criminal offence was given lawful admission to the coin, it is the apply for their own purposes or another unauthorized use that makes it a crime.

Misappropriation of funds can be similar to embezzlement, some other theft crime, in which a person who is entrusted with another person's money or holding steals it for their ain personal use. In some cases, a accused may be charged with both misappropriation of funds and embezzlement.

For example, a CEO entrusted with funds meant to be used to pay company expenses but uses the money instead to pay their personal credit card bills. The CEO can be charged with both misappropriation of funds and embezzlement. If, on the other manus, the stolen funds were used for unauthorized purposes other than personal proceeds, the defendant would exist charged with misappropriation but non with embezzlement.

2. Trade hole-and-corner misappropriation

When a person acquires a merchandise secret through unlawful means, such as theft, bribery or fraud, or publishes a trade clandestine that was acquired unlawfully, they could be guilty of trade hush-hush misappropriation.

Violating the confidentiality terms of an employment contract may also atomic number 82 to accusations of misappropriation, for example, if an employee were to bring confidential information belonging to their employer home with them.

Businesses are legally allowed to file civil claims in trade underground cribbing cases, and they may also sue in federal courtroom if they believe that trade secrets related to a product or service involved in interstate or foreign commerce have been misappropriated.

3. Misappropriation of assets

Other assets also can be illegally used by an entrusted person. Common business assets involved in misappropriation of assets cases include inventory and company equipment.

Misappropriation is a theft criminal offence that is defined by the specific circumstances of unlawfully stealing or misusing funds or other assets with which a person has been entrusted by the owner. In lodge to better empathize misappropriation, it may be helpful to compare it to some other related theft crimes. Below are three of the near common:

Larceny

When you mention theft, larceny may very well exist the showtime crime that comes to mind. Just put, larceny takes place when a person steals property that they didn't already have any type of lawful possession over that belongs to someone else. Shoplifting a DVD from a retail shop is an instance of larceny.

Robbery

Many people mistake robbery to mean the same thing as larceny. Even so, there is a very important distinction between the 2 crimes. A person commits robbery if they steal another person's property by force, fear, attack, or restraint.

For example, a person who pins some other person to the ground in order to steal their wallet or threatens another person with a knife and demands that they requite them their jewelry could be guilty of robbery.

Embezzlement

As previously mentioned, embezzlement is like to misappropriation of funds and it is possible for a accused to be charged with both offenses. Embezzlement occurs when a person is entrusted with some other person's coin or belongings and uses it unlawfully for their ain benefit.

Embezzlement frequently involves coin only may pertain to other property also. An employee who is given access to a visitor banking company account in order to buy inventory only transfers company funds to their own personal bank account could exist guilty of embezzlement.

Penalties for misappropriation

Misappropriation is ofttimes charged at the state level. Withal, there are certain circumstances in which a misappropriation case might be handled past the federal court:

  • Federal funds have been misappropriated,
  • The internet was used to carry out the crime, or
  • Land lines were crossed in the commission of the crime.

Regardless of whether the misappropriation offense is handled in state or federal court, the prosecution must testify the following in guild to secure a conviction:

  1. The owner of the property or funds in question had entrusted it to the defendant, therefore affording the defendant some level of possession and control but not ownership.
  2.  The defendant knowingly and intentionally misappropriated the funds or holding.
  3. The defendant used the funds or property for their ain personal purposes. In order for this criterion to be met in the eyes of the court, the accused doesn't need to have spent the funds. It would be considered sufficient for the defendant to have transferred the funds to their personal bank account or refused to requite the possessor dorsum the funds or belongings upon their demand.

On the country level, misappropriation can exist charged every bit either a misdemeanor or a felony. The value of the funds or property as well equally the type of misappropriation may determine the level of the offense and the severity of the penalties.

For example, a authorities employee or official who is convicted of misappropriating a big sum of public funds might receive a particularly harsh sentence compared to a private citizen. Below are potential penalties for misappropriation of funds:

  • A prison judgement of up to ane year for misdemeanor misappropriation or at least ane year (and upwardly to ten or more) if charged as a felony.
  • Fines of up to $1,000 for a misdemeanor offense and up to $10,000 or more for a felony offense.
  • Restitution paid to the victim
  • Up to 5 years of probation

Legal defenses for misappropriation charges

If you've been charged with misappropriation, you might feel intimidated by the legal process and worried almost the potential consequences. While your charges tin can be serious — especially if charged at the federal level — there are a number of strategies that may exist available to you.

Your defense attorney will examine the details of your case to decide the strategies that will be most likely to find you the best possible outcome. Beneath are some mutual defenses against misappropriation that could exist useful against your charges:

  • Lack of intent – You did non intend to steal or misappropriate the funds or property.
  • Permission – The owner of the funds or property gave you consent to keep or apply them for your ain purposes.
  • Buying – You lot had a reasonable and good faith belief that you lot were the rightful owner of the funds or property.
  • You were non the perpetrator – You were wrongfully accused or are the victim of mistaken identity.
  • Entrapment – Yous were coerced past police force enforcement into misappropriating the funds.
  • Duress – You were forced to misappropriate the funds through use of violence, restraint or threat.
  • Inadmissible evidence – The evidence confronting you lot was obtained through an illegal search or is otherwise inadmissible in court.
  • Bereft bear witness – The prosecution doesn't accept enough show to prove beyond a reasonable doubt that yous misappropriated the funds or belongings.

Misappropriation defense attorney

Whether you've been formally charged with misappropriation or are currently under investigation, a knowledgeable and credible criminal defense force attorney can reply your questions, assist you navigate the legal process and fight to defend your rights and protect your future.

Equally a Los Angeles-based criminal defence attorney who has been representing clients in both California country and federal courts for over three decades, Robert M. Helfend has the experience and expertise to build the strongest possible defense confronting even the well-nigh serious misappropriation charges. You deserve to have a strong and dedicated defense team working on your behalf. Call today to schedule your gratis consultation – 800-384-6434.