how embezzlement occurs
embezzlement occurs when someone steals or misappropriates what they were entrusted to manage or safeguard the property or asset need not be of substantial value for embezzlement to occur although closely related it differs from fraud in that the embezzler had authorization to use or oversee the property or funds 2some types of embezzlement might be combined with other forms of fraud such as ponzi schemes in such cases the embezzler scams investors to entrust them with their assets to invest on their behalf but instead uses the money for personal gain and enrichment maintaining the fraud often includes seeking out new investors to bring in more money to appease prior investors the number of years bernie madoff was sentenced to for orchestrating the largest ponzi scheme in history 3an embezzler might also transfer other assets aside from money an embezzler might claim the real estate company vehicles smartphones and other hardware such as laptops that belong to an organization for personal use embezzlement might take place in the government sector as well if employees seize local state or national funding for themselves such instances may occur when funding is disbursed to fulfill contracts or to support projects and a member of the staff skims some of the money that was earmarked people who embezzle can be charged with a criminal offense and or held civilly responsible for their crimes punishment can range from paying monetary damages and restitution to victims to incarceration white collar offenses don t prevent offenders from being prescribed lengthy prison sentences ones traditionally handed to violent offenders 