Embezzlement is the act and result of embezzlement . This verb , coming from the Italian word defalcare , refers to appropriating funds that should be guarded or administered . The action can also refer to taking away someone's trust or favor.
Embezzlement occurs when a person misappropriates something. Whoever commits the embezzlement commits fraud by not complying with the custody obligations he had over the securities in question.
First of all, let's look at a brief definition of the concept of fraud , in order to provide more context on which to rely: broadly speaking, we can say that it is the opposite of an attitude characterized by rectitude and the defense of the truth. If we place ourselves in the field of laws, then it is correct to affirm that a fraud of law causes harm to a third party.
If we compare the concept of fraud with that of scam , its main difference is that it covers a broader range of situations than the second, which is defined as a crime against assets or property. In the particular case of embezzlement, it can be defined as a type of financial fraud , which has certain very specific characteristics, which are set out below.
According to the definition provided by the National Commission for the Protection and Defense of Users of Financial Services , a government agency belonging to Mexico known by the acronym Condusef , financial fraud is an action that someone (whether a natural person or a legal) carried out with the objective of receiving a benefit as a result of damage caused to the economy of a third party. Generally, to carry out financial fraud, personal data of the victims is sought.
Among the most common examples in everyday life are the erroneous charges that we often find on bank statements. The bank offers us a financial service, and when it takes advantage of our funds to make improper use, it can be said to commit embezzlement. In some cases, the shock is even greater, such as when we discover that our account is empty, even though we should have all our savings in it.
Current technologies make embezzlement easier to carry out than ever, since our personal data is highly exposed to theft, even though large companies promise us unprecedented levels of security .
Embezzlement can be linked to public resources or private funds. This means that the individual can keep funds that belong to the State or with money from the private sector. When the crime is based on taking property in custody for private use, it is called misappropriation . Embezzlement committed by an official on state effects, for its part, is classified as embezzlement of public funds .
The classification of embezzlement, therefore, varies according to the code in question. At a general level, it can be stated that it consists of fraudulently retaining ownership of a possession that another person lawfully had. In short, it is a crime committed against property : the legitimate owner can no longer dispose of his property due to the illicit action of the other.
Suppose an employee must manage his company's money and pay workers' salaries, buy office supplies, pay taxes, etc. This person, instead of fulfilling his obligations, appropriates the funds, pays nothing, and puts the company into debt. When this situation comes to light, the employee is charged with the embezzlement.