What Constitutes Embezzlement in the State of Texas?

Embezzlement under Texas law is the misappropriation or misapplication of money or property that was entrusted to an individual’s care, custody, or control. The difference between embezzlement and theft is the violation of financial trust between the owner of the money or property and the person who embezzled it.

There are a number of common scenarios that constitute embezzlement in the state of Texas. One of the most common types of embezzlement occurs when an employee steals money or other property from his or her employer. Whether it occurs in the private or public sector, one study states that employee embezzlement costs the economy an estimated $400 billion annually. Aside from money, an employee may commit embezzlement by taking products, supplies, data, or even intellectual property from an employer. Embezzlement by an employee tends to happen more often in small businesses, which typically have fewer than 100 employees and less than three bookkeepers. Because there are fewer checks and balances in a small business, embezzlement is more likely to go unnoticed for a longer period of time.

There are a number of other types of schemes that qualify as embezzlement. For instance, an individual may create or authorize fraudulent loans from a company for his or her own benefit. A person could inappropriately or fraudulently use a company credit card, or forge company checks. An individual might falsify inventory records in order to steal equipment or supplies, manipulate payroll to gain extra income, or set up unauthorized electronic funds transfers.

The Cogdell Law Firm is a boutique law firm focusing on large, complex business and criminal financial-related litigation, including white collar criminal defense, securities fraud, health care fraud investigation, criminal appeals and state criminal defense. When you need dedicated legal advice and counsel in a Texas criminal case, contact Dan Cogdell at (713) 426-2244, email us at dan@cogdell-law.com, or fill out the online form located here.

Categories: