How to Distinguish Embezzlement From Larceny

Legally, there are specific differences between embezzlement and larceny. Embezzlement is considered the taking of money or property by someone in a position of trust with specific access to that property. Whether you are investigating possible embezzlement in your company or face accusations of misconduct yourself, you should know the differences between embezzlement and larceny. Follow these guidelines.

Instructions

Difficulty: Easy

Things You’ll Need:

• Computer with Internet access

Know the Legal Requirements of Embezzlement

1. Trust must have been established between the plaintiff (the business) and the accused in order for the crime to qualify as embezzlement. The suspect must have been in a position of responsibility in which he or she was entrusted with access to money or property.
2. For a case to be considered embezzlement, the employee has to come into possession of the money or property as a result of his or her position. This is one of the primary ways to distinguish between embezzlement and larceny. For example, if a person is responsible for working the cash register at a restaurant and steals money from the register, that is embezzlement. If the chef at the same restaurant steals money from the register, it is larceny because he didn't have access to the money as a part of his job.
3. To prove embezzlement, it must be established that the person came into possession of the money or property through fraudulent means.
4. For a crime to be labeled as embezzlement, intent needs to be established.
5. Access advice on protecting your workplace from embezzlement and larceny at the Small Business Administration Web site (see Resources below).

Distinguish Between Signs of Embezzlement and Larceny

6. The legal definition of larceny is the intentional taking and carrying away of someone else's property with the intent to make it yours. By this definition, embezzlement is a form of larceny with specific requirements. A person who embezzles first comes into possession of the money or property via legal means, while a person guilty of general larceny does not.
7. Distinguish signs of embezzlement at work. Embezzlement often appears in financial records and bank statements as a manipulation of accounts or an incremental draining of funds. Larceny often appears as one lump sum that is missing.
8. Both larceny and embezzlement may be handled internally by a company or may be reported to law enforcement authorities for criminal charges.

Tips & Warnings

• The Employee Polygraph Protection Act of 1988 protects employees from having to submit to lie detector tests. However, this right may be waived in the event of embezzlement or larceny. Consult an attorney specializing in white-collar crime before administering a polygraph test to an employee to ensure you're within your rights.
• Both larceny and embezzlement can result in substantial criminal trials as well as civil cases due to the repayment expected.

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