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Federal Embezzlement Charges: Defending Against Theft Allegations
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Accused of Embezzlement? Understanding Federal Theft Charges
They trusted you with money. Now there saying you stole it. Federal embezzlement charges are devastating—not just because of the prison time, but because of what they say about you. These charges attack your character, your integrity, your reputation. And they carry up to 30 years in federal prison depending on how they’re charged.
If your reading this, someone has accused you of taking money that wasnt yours. Maybe from your employer. Maybe from a bank. Maybe from a government program. Whatever the situation, you need to understand how federal embezzlement is prosecuted and how to fight back.
What Is Federal Embezzlement?
Embezzlement is theft by someone who had lawful access to the property. Unlike robbery or burglary, embezzlers dont “break in”—they’re already inside. The accountant who skims from client accounts. The employee who diverts company funds. The bank teller who pockets deposits.
Federal jurisdiction typically arises when:
- The victim is a federal agency or program
- A federally insured bank is involved (18 USC 656)
- The embezzlement crossed state lines
- Federal employees are involved (18 USC 641)
- Labor organizations or pension funds are victimized (29 USC 501)
Key Statutes
18 USC 641 – Theft of government property: Up to 10 years if value exceeds $1,000
18 USC 656 – Bank embezzlement: Up to 30 years
18 USC 666 – Theft from programs receiving federal funds: Up to 10 years
29 USC 501 – Embezzlement from labor organizations: Up to 5 years
Elements Prosecutors Must Prove
To convict on embezzlement, the government must prove:
Lawful possession – You had legitimate access to the property
Conversion – You took or used the property for yourself
Intent – You intended to deprive the owner permanently
Federal nexus – Some connection to federal jurisdiction
Penalties
Bank embezzlement (18 USC 656) is the most serious, carrying up to 30 years. Other federal embezzlement charges range from 5-10 years per count. Plus restitution—you’ll be ordered to pay back everything taken, regardless of whether you still have it.
Sentencing depends heavily on loss amount. The same loss table used for fraud applies: higher amounts mean higher guideline ranges.
Defense Strategies
No Intent to Permanently Deprive
Borrowing isnt stealing. If you intended to return the money—even if you didnt actually return it—thats a defense to intent. The key question: did you plan permanent conversion?
Authorized Use
Maybe you had permission. Maybe company culture allowed what prosecutors call “embezzlement.” Defense often involves showing the conduct was authorized or tolerated.
Accounting Errors
Sometimes what looks like embezzlement is just bad bookkeeping. Missing money doesnt always mean stolen money. Defense accountants can sometimes explain discrepancies without criminal intent.
Lack of Federal Jurisdiction
If there’s no federal nexus—no federal victim, no federally insured institution, no interstate commerce—federal charges may be improper. State charges might still apply, but federal penalties are typically more severe.
Act Now
Embezzlement investigations often involve forensic accountants poring over years of records. The earlier you get defense counsel involved, the better positioned you’ll be to challenge their conclusions. And if cooperation makes sense, early involvement means better deals.
Contact a federal criminal defense attorney before speaking to investigators. What you say—and what you dont say—matters enormously in embezzlement cases.