Financial crime law addresses embezzlement through prosecution, prevention, and recovery. If you’ve been accused of embezzlement or are concerned that you may be caught up in someone else’s crimes, look for qualified and experienced financial crime attorneys in the Texas area for help as soon as possible.
Ask Financial Crime Attorneys: How Does Financial Crime Law Address Embezzlement?
Through Prosecution
Embezzlement typically falls under theft statutes, with specific laws addressing it at both state and federal levels. Depending on the jurisdiction and details of the case, charges can range from misdemeanors to felonies.
Texas Laws
Texas takes financial crime seriously and has a comprehensive set of laws to address it. The Texas Penal Code, Chapter 32, addresses fraud, including embezzlement. The Texas Money Laundering Act also makes it a crime to launder the proceeds of criminal activity, including embezzlement, and the Texas Civil Practice and Remedies Code, Chapter 54, provides for civil remedies for victims of financial crimes, including embezzlement.
Specific provisions for embezzlement in Texas:
- Theft statutes: Embezzlement penalties vary depending on the amount of money or property stolen but usually include both fines and jail time.
- Fiduciary duty breach: Texas law recognizes a fiduciary duty for individuals entrusted with another’s property or funds. Breaching this duty through embezzlement can lead to additional civil and criminal liability.
The Texas Department of Banking and the Texas Department of Insurance play roles in investigating and prosecuting financial crimes, including embezzlement, within their respective jurisdictions.
Federal Laws
In addition to Texas state laws, several federal laws address embezzlement, as well. For examples, 18 U.S. Code Chapter 31 – Embezzlement and Theft contains several specific statutes addressing embezzlement, including:
- Public Money, Property or Records: Prohibits embezzlement of federal government funds, property, or records with penalties up to 10 years in prison and fines.
- Theft of Government Property: Covers broader theft of government property, including embezzlement, with potential penalties of up to 10 years imprisonment and fines.
- Bank Embezzlement and Fraud: Addresses embezzlement from banks and other financial institutions insured by the FDIC.
Other relevant federal laws include laws on mail fraud, wire fraud, and money laundering, all of which can come into play in an embezzlement case. Federal law often gets involved when the embezzlement involves federal funds, property, or institutions; when the crime crosses state lines or utilizes interstate communication; or when the amount of money stolen is significant enough to trigger federal jurisdiction.
Key Elements in Prosecution
To prove embezzlement, prosecutors must demonstrate that the offender:
- Held a position of trust and fiduciary duty (e.g., employee, fiduciary, public official).
- Misappropriated entrusted property or funds.
- Intended to deprive the rightful owner of the property permanently.
The investigation gathers evidence like financial records, witness testimony, and forensic analysis to build a case against the embezzler.
Through Prevention
Financial crime laws don’t just prosecute embezzlement. They also seek to prevent it altogether. They do this by requiring businesses and organizations to implement internal controls, like separation of duties, regular audits, and whistleblower policies, to deter and detect embezzlement attempts.
Financial institutions and entities handling public funds also have stricter regulations and reporting requirements than other companies, to ensure transparency and minimize embezzlement risks.
Through Recovery
Courts often order convicted embezzlers to repay the stolen funds as part of their sentence. This helps compensate the victim for their losses. Victims can also pursue civil claims against the embezzler and potentially other parties who enabled or facilitated the crime.
Working With a Competent Attorney
Embezzlement cases can be especially complex as they often involve sophisticated schemes and fraudulent accounting practices. Investigators and prosecutors have specialized skills and resources to unravel such cases, and you can be sure that they have plenty of experience. Working with a lawyer who specializes in white-collar crime defense will significantly increase your chances of a good outcome. Visit this page for help.
Technological advancements and the increasing digitalization of financial transactions present both challenges and opportunities in detecting and combatting embezzlement, as well as in defending yourself against charges. It’s very important to quickly consult with a legal professional with expertise in Texas if you’ve been accused of embezzlement. It’s also not uncommon for embezzlers to leave colleagues holding the bag or to deliberately falsify records to shift blame onto someone else, so if someone you work with or are connected to is accused of embezzlement, it’s worth contacting a skilled lawyer for a consultation.
If you’re dealing with a charge of embezzlement, are being investigated, or are just worried because of an investigation into a business or colleague, be sure to get help right away to protect your rights.