Federal
Embezzlement
Charges

Most embezzlement charges are handled at the state level, but embezzlement progresses into a federal crime if the company the perpetrator works for in the situation corresponds with national interests. Individuals who illegally access the U.S. government’s assets or property or have received payment from funds gathered by the tax system could be questioned in a federal embezzlement case. This includes entities outside of the government itself, such as contracting organizations or employees of private firms. For example, a contractor working for the federal government who illegally transports any government materials could be charged with embezzlement.

The U.S. Code Title 18, Chapter 31 details the federal laws prohibiting embezzlement. These laws encompass a wide range of actions and stipulate penalties for these charges. When someone is convicted of embezzlement, they are ordered by the court to make restitution for their crime. This means returning any funding, assets, or property that was taken. If the defendant no longer possesses these items, they will pay off their debt in installments and will be put on probation until the total amount has been paid. The judge may also order additional penalties, including fines, incarceration, or community service.

In most cases, the value of the embezzlement crime is determined based on a $1,000 benchmark. Crimes involving a sum less than $1,000 are deemed to be misdemeanor crimes and can be punishable by a fine of $100,000 and/or a prison sentence of up to one year. Crimes involving $1,000 or over are considered felony crimes and are punishable by a fine of $250,000 and/or a prison sentence of 10 years. This includes embezzlement of public property, money, or records, embezzlement by bankers who intentionally receive unauthorized deposits of money from public funds, embezzlement by employees of the federal court, and embezzlement by agents, officers, or other employees of the federal government.