Embezzlement can be charged as either a felony or a misdemeanor, depending on the amount of money taken and the sophistication of the crime. California Penal Code 503 describes the crime of embezzlement.
If an employee is in a position of trust and embezzles thousands of dollars from their employer, that person will likely be charged with and convicted of a felony (CALCRIM 1806).
If, on the other hand, the embezzlement is a small amount of money and there is not much sophistication involved, the attorney for the offending party will have a much better argument that the person should get a misdemeanor charge.
There are also scenarios where the accused would plead to a felony. Still, a certain period after they pay the money back, that person could get a misdemeanor instead and eventually get the case expunged or dismissed in California.
Embezzlement cases are treated more seriously than an average theft case because the person embezzling is usually in a position of trust. Therefore, the prosecutors feel they have to come down hard on that person.
Defenses for Felony Embezzlement Charges In California
There are several defenses to embezzlement. The typical defense is that you either didn't steal the money or had authorization to take it. Perhaps someone else took it. If they can't prove that you stole it, the question becomes how much the loss will be.

These cases are fact-specific and center around what happened in that particular case, including the evidence the prosecutors have and whether the police did a sloppy job investigating the case.
Your attorney can provide additional information to the prosecutors to defend the case, or they can take the case to a jury trial and try to show a jury that you're innocent.
If you're being investigated for embezzlement, you don't want to go to law enforcement yourself. Then, they're going to arrest you, and you're going to be prosecuted. A lot of big companies have their internal investigative bodies.
They will try to speak to the employee first to find out if they can get their money back, the extent of the embezzlement, and if anyone else might be involved. Then, they'll turn you over to law enforcement. Most of the time, talking to your employer will end in you getting fired and then bringing law enforcement in after you've confessed.
If your company is investigating you, the best course of action is to get an attorney. Tell the attorney the truth, and then the attorney can decide precisely how to deal with your company. People often get blindsided by their company's investigative unit and need more time to go to an attorney.
They don't have time to think about it, so they say something incriminating. Even if you've done that, you should get to an attorney, tell the attorney the circumstances, and tell them precisely what you said because your company will probably go to the police.
Sometimes, I have been able to negotiate with companies and convince them not to go to the police, but usually, they will want back whatever you stole in a timely fashion.
Penalties for Penal Code 503 Embezzlement
People who get prison time on embezzlement cases in California often end up serving their time in county jail. In Los Angeles County, only certain crimes have been deemed crimes that they're going to send the person to prison for because of the overcrowded prison population in California.
Typically, if you get convicted of a felony for embezzlement, you could be facing time in county jail. They'll call it prison, but then you'll serve that time in county jail.
I represent many people at the federal level who have embezzled money from their companies. If you get convicted at that level, you will serve 85% of whatever time you are sentenced to. It is much more severe. You will be ordered to pay back the money you embezzled through restitution.
Most of the time, in embezzlement cases, people look at a felony. However, the government is often willing to give people a break if it's a first offense and not try to send them to prison. If you are being looked at for embezzlement, getting an attorney is crucial to avoid some of the damages and consequences of an embezzlement conviction.
Usually, the statute limitations on an embezzlement case will be three years. If the state prosecution doesn't file the charges against you within a year, the defense argues that they waited too long to file the case and interfered with the defense's ability to defend the case. If they wait for more than a year, they will usually not file the case.
Should I Turn Myself In And Expect Leniency for Embezzlement?
If the police are actively looking for you and have a warrant out for your arrest related to an embezzlement case, your best option is to meet with an attorney, develop a game plan, and turn yourself in. Not dealing with it puts you at a disadvantage once you're caught.
You and your attorney will turn you in with a plan in place. You will execute the plan and be in the ideal position to get the best result from your criminal case.
Turning yourself in shows you're ready, willing, and able to deal with whatever you're being accused of. It shows good faith on your part and starts you and your attorney off on a positive note.
Sometimes, you might turn yourself in, but you're innocent. The longer you stay out there, knowing there's a warrant for your arrest, the more difficult it will be to convince a potential jury that you're innocent.
They will assume that you are not turning yourself in for your embezzlement warrant, which is the consciousness of guilt. You knew you would be prosecuted; you were afraid to be charged because you were guilty, so you didn't turn yourself in.
On the flip side, the defense can argue, if you turned yourself in, that you didn't do anything wrong and that once you found a warrant, you wanted to get your side of the story out to show that you're innocent.
Aggravating Factors for PC 503 Embezzlement Charges
One of the most significant aggravating factors for embezzlement is the amount of the loss. If you took hundreds of thousands of dollars, you could have affected several people. You've put a business in a difficult position, which is very aggravating because you're in a position of trust.
You steal from the company, and now that company either can't get other business or loses thousands of dollars. The most aggravating factor in an embezzlement case is the amount of money you took.
Another aggravating factor is the level of sophistication involved in the embezzlement. If you're using computers to commit embezzlement or your scam is complicated to cover for your employer, that would aggravate.
They will add extra points and extra levels to your sentence at the federal level. Another factor aggravating embezzlement cases is if you have a particularly vulnerable victim, like an elderly client. If you're looking to do damage control, your best bet is to get to an attorney as quickly as possible.
Consent as a Defense in PC 503 Embezzlement Cases
If your employer loses money, they will be looking to blame someone for losing that money. Then, the question becomes who got the money and what you had to do with that person getting the money.
If your employer told you to move the money, were they telling you to do it illegally? Was it a lawful move of cash? What is it that you're being accused of doing? No one will be charged and convicted of embezzlement if they didn't do anything wrong. Prosecutors and judges are not going to allow someone to be sentenced who didn't have criminal intent.
Sometimes, employers take advantage of their employees and try to use them as scapegoats. If that is your situation, could you sit down with me? You need a sophisticated advocate to turn the tables on your employer and prove that you're innocent.
Also See: