5 Types of Embezzlement Schemes

man in suit counting hundred dollar bills

Embezzlement occurs when an individual or organization misuses funds that they are trusted with. One example would be an employee using company profits for personal expenses. There are numerous ways in which individuals commit embezzlement; let’s discuss five common methods.

1. Using Company Assets for Personal Gain

This is also known as asset misappropriation. This type of fraudulent offense can involve the unauthorized use of both cash and non-cash assets from the company. One common way this is done is using a company credit card for personal purchases. Employees may also take company property to use for personal gain.

2. Stealing

There are numerous ways that stealing can be classified as an embezzlement offense.
Employees may:

  • Steal from customers: overbill customers and keep the extra profit.
  • Steal office supplies: this may feel like a minor offense, but it is technically embezzlement.
  • Steal equipment: this could be stealing office technology or raw materials.
  • Steal products: a retail worker taking company products home for personal use is embezzlement.

In general, any time an employee steals a company’s profits or property, it is embezzlement.

3. Forging Documents

Forging documents is a crime no matter who commits it. However, it may be part of an embezzlement scheme when an employee forges company documents in order to profit.
Commonly forged documents include:

  • Checks
  • Bank account records
  • Business record-keeping books
  • Tax documents

Employees may also falsify information on official business documents.

4. Siphoning Funds

This is common for employees who work primarily with cash transactions. The employee may take small amounts of cash out of the company safe or bank deposits each week, hoping to stay under the radar. Over time, however, these losses are substantial.

5. Kickbacks

A kickback is an illegal payment made either to bribe someone or for services not needed from a vendor.

Kalamazoo Embezzlement Defense

If you are being charged with embezzlement, there is a lot at stake. You can trust the team at Levine & Levine Attorneys at Law to fight for you. Get started on your defense today; contact our experienced white-collar crime defense attorneys to share the details of your case.