White collar crimes have made the news fairly often in the past decade, as a series of high-profile embezzlement cases resulted in federal prison sentences for a number of individuals. For example, the 2008 discovery of Bernie Madoff’s $50 billion Ponzi scheme rocked the financial world and resulted in massive losses for an estimated 20,000 investors. The 77-year-old Madoff is now serving a 150-year prison sentence for his role in the scam.
Embezzlement is essentially a subversion in which the embezzler uses his or her position in business or government to misappropriate assets. In other words, the individual has access to funds due to his or her position but does not actually own the money. Embezzlement takes place when the individual uses that money for his or her personal gain.
Federal Embezzlement in the News
In Texas, a 2014 case charged Director of Finance Devin Wayne McCraney and Comptroller Sharika Baksh Allison with embezzling approximately $4 million from the Beaumont Independent School District. The two used wire transfers to move money from the school district’s accounts to their own accounts.
In 2015, Miamisburg U.S. Bank manager Amy Scarpelli pleaded guilty to one count of embezzlement after stealing more than $5 million dollars to fund a serious gambling addiction. Scarpelli embezzled the funds by issuing cashier’s checks against closed lines of credit, then depositing the checks into her own accounts.
An investigation is ongoing into the activities of former Clarkston Brandon Community Credit Union CFO Michael LaJoice, who is alleged to have embezzled more than $18 million dollars from 2003-2016. LaJoice used the funds to purchase real estate and to pay for a lavish lifestyle. He accomplished the theft by moving the money from the credit union’s general investment ledger to his personal accounts using an ACH transaction. Since records for this ledger were within LaJoice’s area of responsibility, he simply erased the entries related to these transactions.
Is Embezzlement a Federal Crime? – Federal Charges vs. State Charges
Federal embezzlement law tends to deal with thefts from federal institutions or theft of funds paid by the federal government to private businesses to complete federal projects. The state can bring charges against individuals accused of embezzlement as well. States are typically responsible for prosecuting embezzlement of funds from state and local governments or embezzlement of funds from a private company by an employee.
However, these rules are not ironclad. Is embezzlement a felony? In many situations, embezzlement falls under both federal and state law. A common example includes embezzlement by bank employees. Though this crime is addressed by state embezzlement regulations, there are specific federal regulations dealing with financial institutions that also apply. When this situation occurs, an individual can be tried in either court, and theoretically he or she could be tried in both federal and state courts.
Federal Penalties for Embezzlement
Depending on the amount of money stolen, those found guilty of embezzlement under federal law can face fines ranging from $100,000 to $1 million, in addition to any restitution they are required to pay. Prison sentences range from one to 30 years and can be required in addition to or instead of the fine, depending on circumstances.
If you are accused of embezzlement, seek counsel from an experienced federal criminal defense lawyer immediately. Attorneys ensure your rights are protected throughout the investigation, and they work diligently to defend you against federal charges. In case of a guilty verdict, federal criminal defense attorneys will negotiate to ensure you receive a fair sentence.
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