Can You Be Charged With Embezzlement Without Taking Money? Understanding Constructive Possession in California
There are lots of common misconceptions around the topic of embezzlement and fraud. Some believe that you can only be charged with embezzlement when you physically take funds or transfer business funds to your own account. However, California’s laws take a broader approach to embezzlement—and that’s important to know if you’re facing accusations or even criminal charges. If you’ve been accused of embezzlement, you must talk to an embezzlement defense lawyer now.
When you’re facing criminal charges, having the right legal team on your side is crucial. At the Law Offices of Robin D. Perry & Associates, we are confident handling high-profile cases and navigating the complexities of criminal cases. Attorney Robin D. Perry has spent more than 25 years advocating for clients in the courtroom and at the negotiating table. His experience as a Deputy District Attorney makes him a valuable ally to those fighting criminal charges. Learn more about your next steps now by calling our embezzlement defense law firm at 562-216-2944.
How Does California Law Define Embezzlement?
California state law states that embezzlement has occurred when someone entrusted with property uses it for their own purposes in a fraudulent manner. The key difference between embezzlement and many other criminal charges involving money is that the perpetrator has lawful access to the property at the start—for example, a store manager, business accountant, or other individual who is entrusted with access to funds.
When prosecutors aim to prove embezzlement in California, they take steps to prove the perpetrator’s lawful access to the property, the trust placed in them by the business owner or other rightful owner, the individual’s fraudulent use of the funds, and their intent to deprive the owner of that property.
You Don’t Have to Physically Take Money to Be Charged
California law specifically states that a distinct act of taking is not necessary to constitute embezzlement. This broadens the definition of embezzlement significantly to encompass many other acts of misappropriation and fraud. People may be charged with embezzlement if they:
- Authorize improper payments (for example, to a service provider who is related to them and who intends to inflate charges for their own benefit)
- Redirecting funds for unauthorized purposes
- Allowing others to misuse funds
- Using company or client money in unapproved ways
Prosecutors do not need to see cash in your hand or transfers into your account to prove that embezzlement occurred. If they can successfully argue that you had control over the funds and violated the owner’s trust, that may be enough to secure a conviction. This is why we recommend talking to an embezzlement defense attorney as soon as you’re accused—the evidence may already be stacked against you.
Understanding Constructive Possession
The idea of constructive possession comes into play here, and it’s likely something your embezzlement defense lawyer will discuss with you. Even if you don’t technically have ownership of something, you may have constructive possession if you could convert something to your own purposes without the other party’s consent. For example, if you have access to a client’s bank account for a specific purpose, you don’t actually possess it—but by misusing the funds, you have constructive possession. You may also have constructive possession if you can approve or deny payments, control how funds are allocated, supervise people who handle money, or have any authority over financial systems.
Common Embezzlement Scenarios Involving Constructive Possession
Constructive possession comes up fairly often in white collar criminal cases, particularly those involving managers and supervisors with spending authority, accounting staff with access to financial systems, corporate officers who approve and deny transactions, and caregivers who manage another person’s finances.
In each of these scenarios, you may not directly benefit from the money—but you can still be charged with embezzlement if you mishandled the funds in a way that violated the rightful owner’s trust and your professional duty.
Contact Our California Embezzlement Attorneys
The team at the Law Offices of Robin D. Perry & Associates is committed to protecting your civil rights as you face criminal charges. The earlier you reach out to an embezzlement defense lawyer, the more time they have to investigate the case against you and build your defense. Start your case now by calling our embezzlement defense law firm at 562-216-2944 or reaching out online.
Attorney Robin D. Perry has been part of the Long Beach Community for over 25 years handling business litigation, employment litigation and advising, criminal defense, personal injury and code enforcement defense for businesses.
