Embezzlement in Massachusetts is a form of theft where someone entrusted with property or money, usually through a position of trust, illegally takes or misappropriates it for personal gain. It differs from theft because the person has lawful possession initially but unlawfully converts it for personal use. Under Massachusetts General Laws Chapter 266, Section 30, penalties depend on the value of the property stolen. If the value exceeds $1,200, it’s a felony, punishable by up to five years in state prison. Lesser amounts are considered misdemeanors with lighter penalties.
Understanding Embezzlement Charges in Massachusetts
Embezzlement is one of the most common white-collar crimes in Massachusetts. It involves the unlawful conversion of money or property by someone entrusted with that asset. Embezzlement charges often arise from situations involving employees, managers, or individuals in positions of trust, such as financial advisors or bank tellers. Under Massachusetts law, the severity of embezzlement charges depends on the value of the property involved and the intent of the accused. Let’s explore what embezzlement is, how it’s treated under Massachusetts law, and what defenses may be available.
What are the Elements of Embezzlement in Massachusetts?
To be convicted of embezzlement in Massachusetts, the Commonwealth has to prove 3 things beyond a reasonable doubt:
- That while you held a position of trust or confidence, you were entrusted with someone else’s personal property,
- That you converted that property to your own use without the owner’s consent, and
- You did so with the intent to permanently deprive the owner of that property.
Embezzlement is classified as a theft crime under Massachusetts General Laws Chapter 266, Section 30. This means the conversion of the property must be intentional, and the individual must have acted with the purpose of depriving the rightful owner of their property. Even if you initially had lawful possession of the property, the unauthorized conversion or personal use is what transforms it into a criminal offense.
Is Embezzlement a Felony in Massachusetts?
Embezzlement can be classified as either a misdemeanor or a felony offense, depending on the value of the stolen property. If the amount exceeds $1,200, the offense is considered a felony under Massachusetts law. If the value is below this threshold, it may be treated as a misdemeanor.
Felony embezzlement charges carry severe consequences, including jail time or state prison sentences. The seriousness of the crime increases if the property involved includes:
- trade secrets,
- intellectual property, or
- sensitive information
belonging to an employer or client. Individuals convicted of felony embezzlement often face significant penalties, including a criminal record that can affect future employment opportunities.
How Much Money Do You Have to Steal for It to Be a Felony in Massachusetts?
Massachusetts law sets the value threshold at $1,200 to determine whether embezzlement constitutes a felony or misdemeanor. If the value of the property stolen is above this limit, it is a felony offense, which can result in a state prison sentence of up to five years. For values under $1,200, it’s treated as a misdemeanor, punishable by up to 2 ½ years in the house of correction and a maximum fine of $1,500.
The value of the stolen property plays a crucial role in determining the penalties for embezzlement cases. Individuals facing felony charges can expect harsher potential penalties and longer sentences, especially when large amounts or complex financial schemes are involved.
What Does It Mean When You Embezzle Money in Massachusetts?
Embezzling money means wrongfully taking or using funds entrusted to you by someone else for your own personal expenses or personal gain. In Massachusetts, this typically applies to:
- employees,
- trustees, or
- people holding a fiduciary role
who have legal possession of someone else’s property and use it in a way that benefits themselves.
The key factor is that the person had permission to hold the money or property but lacked the legal right to convert or use it for their own purposes. This makes embezzlement distinct from other types of theft crimes, as it involves the abuse of trust rather than direct stealing.
What Is a Fiduciary in Massachusetts?
A fiduciary in Massachusetts is someone who is legally obligated to act in the best interests of another person or entity. This duty typically arises in relationships such as:
- trustees,
- guardians,
- executors, or
- financial advisors,
where one party is entrusted with managing assets or making decisions on behalf of another. Fiduciaries must act with loyalty, honesty, and in good faith, prioritizing the interests of the beneficiary over their own. Breaching these duties can lead to legal consequences.
What Is the Punishment for Embezzlement in Massachusetts?
The punishment for embezzlement varies depending on the value of the property taken. For felony embezzlement, where the value exceeds $1,200, individuals face up to five years in state prison. In addition, the court may impose significant fines and order restitution to the victim.
For misdemeanor embezzlement, the penalties can include jail time of up to 2 ½ years in a county house of correction and a maximum fine of $1,500. Repeat offenses, large-scale embezzlement schemes, or cases involving sensitive financial records can result in harsher penalties. The consequences of an embezzlement conviction are severe and may lead to long-term damage to one’s reputation and career.
What is an Example of Embezzlement in Massachusetts?
A common example of embezzlement would involve a bank teller who is responsible for handling large sums of money but takes small amounts over time for personal use. Although they were legally entrusted with the money, using it for themselves without consent constitutes the crime of embezzlement.
Other examples include financial advisors who divert client funds into their personal accounts or corporate employees who misuse company property for their own gain. Each case is unique and depends on the specific circumstances of the alleged crime, but the core issue is the conversion of property entrusted to someone in a position of trust.
How Do People Get Caught Embezzling Money in Massachusetts?
Embezzlement crimes are often discovered through:
- financial audits,
- discrepancies in accounting records, or
- whistleblowers who suspect illegal activity.
In larger corporations, employees responsible for financial management may be subject to regular audits and oversight, which can reveal suspicious transactions.
Many embezzlement cases come to light when an employer notices unusual withdrawals or discrepancies in the company’s financial records. Embezzlers may also be caught if they use the stolen funds to make extravagant purchases or try to hide their actions through complex financial schemes.
What Does Embezzle Mean in Simple Terms?
In simple terms, to embezzle means to steal money or property that you were trusted to manage. It’s different from stealing because the person embezzling was given lawful access to the money but used it improperly for their own benefit.
This type of theft crime often occurs in workplaces where employees are entrusted with financial duties. Embezzlement also applies to public officials or any person in a fiduciary position. Essentially, it’s taking advantage of the trust placed in you by another person or institution for personal gain.
Is Embezzlement a Type of Theft in Massachusetts?
Yes, embezzlement is considered a type of theft crime, specifically known as theft by embezzlement. Unlike grand larceny or theft of service, which involves taking property unlawfully from the start, embezzlement requires that the individual had rightful possession of the property before converting it to their own use.
Massachusetts law treats embezzlement under various statutes, but it’s ultimately considered a property crime. Embezzlement can also fall under federal crimes if it involves interstate commerce or affects certain types of financial institutions. In any case, embezzlement is a serious crime with severe consequences, including potential jail time and long-lasting effects on one’s reputation.
How Do You Win an Embezzlement Case in Massachusetts?
Winning an embezzlement case typically involves raising defenses such as a lack of intent to commit the crime, consent of the owner, or insufficient evidence. One potential defense is demonstrating that the accused believed they had a legitimate reason to use the property, such as under a promissory note or through an approved business expense.
We will explore all potential defenses to challenge the prosecution’s case. For example, proving that you did not intend to permanently deprive the owner of the property or that the funds were used for legitimate purposes can undermine the charges. Each embezzlement case is unique, and a strong defense strategy should be based on the specific circumstances of the case.
Conclusion
Embezzlement is a serious crime under Massachusetts law, with potentially severe consequences depending on the value of the property and the details of the case. Those facing embezzlement accusations should understand the specific charges, the potential penalties, and their available defenses. Whether facing misdemeanor or felony charges, mounting a strong defense is crucial to achieving the best possible outcome. Careful attention to financial records, establishing consent, and identifying weaknesses in the prosecution’s case can play a critical role in the defense strategy.
If you are involved in an embezzlement case, it’s important to understand how Massachusetts law defines this crime and what the consequences may be. While each case varies, knowing the legal framework and potential defenses is essential to protecting your rights.
I have been practicing law in Massachusetts since 1995. My focus is in the areas of criminal and family law. I’m dedicated to providing high-quality legal help at an affordable price. I practice throughout Massachusetts. I earned my MBA from the University of Rhode Island in 2023. I earned my JD from New England School of Law in 1994. I earned my BA from Rhode Island College in 1990.