Law Offices of Michael E. Cindrich, APC 225 Broadway, Suite 2100 San Diego, CA 92101

Embezzlement

Embezzlement is a serious white-collar crime under California Penal Code §503, involving the fraudulent taking or misuse of property or funds that were lawfully entrusted to someone’s care. Unlike theft, embezzlement occurs when a person has legal access to property but uses it for unauthorized purposes or personal gain.

Because embezzlement often arises in professional or fiduciary relationships, such as between employees and employers, financial agents and clients, or business partners, even an accusation can destroy reputations and careers. Prosecutors frequently pursue these cases aggressively, and the consequences can include restitution orders, jail or prison sentences, and permanent damage to your financial and professional future.

San Diego Embezzlement Defense Attorney

If you have been accused of embezzlement, it is critical to act quickly. Law enforcement agencies in California often spend months investigating these cases before making an arrest, gathering bank records, emails, and witness statements. Once formal charges are filed, the prosecution will already have built a narrative against you.

Attorney Michael Cindrich has extensive experience defending clients in complex financial and white-collar criminal cases, including embezzlement, fraud, and misappropriation of funds. His deep understanding of business practices and financial transactions allows him to challenge the prosecution’s claims and uncover errors or exaggerations in the state’s evidence.

The Law Offices of Michael E. Cindrich represent clients across San Diego County, including Chula Vista, Oceanside, Escondido, Carlsbad, El Cajon, Vista, San Marcos, Encinitas, National City, La Mesa, and San Diego proper.
For a free, confidential consultation, call (619) 262-2500.

Overview of Embezzlement Charges in San Diego

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Definition of Embezzlement

Under California Penal Code §503, embezzlement is defined as the “fraudulent appropriation of property by a person to whom it has been entrusted.”

To convict someone of embezzlement, prosecutors must prove that:

  1. The owner entrusted their property to the defendant.
  2. The owner did so because they trusted the defendant.
  3. The defendant fraudulently used or converted the property for their own benefit.
  4. The defendant intended to deprive the owner of its use, even temporarily.

Embezzlement can occur in employment, business, or personal relationships. It is commonly charged when money, goods, or company assets are misused, diverted, or concealed.

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Examples of Embezzlement

  • An employee transferring company funds into their personal account.
  • A business partner diverting profits or assets without consent.
  • A bookkeeper manipulating accounting records to conceal withdrawals.
  • A caretaker or trustee misusing funds belonging to a client or dependent.
  • A person entrusted with physical property selling or pawning it for personal gain.

Penalties for Embezzlement in California

The penalties for embezzlement depend on the value of the property taken and the defendant’s relationship to the victim.

Misdemeanor Embezzlement (Petty Theft)

If the value of the property is $950 or less, the offense is charged as misdemeanor embezzlement, punishable by:

  • Up to 6 months in county jail
  • Fines up to $1,000
  • Summary probation
  • Restitution to the victim

Felony Embezzlement (Grand Theft)

If the value of the property exceeds $950, the offense becomes grand theft by embezzlement, which can be charged as either a misdemeanor or felony (a “wobbler”):

  • Up to 1 year in county jail (misdemeanor)
  • 16 months, 2 years, or 3 years in state prison (felony)
  • Fines up to $10,000
  • Restitution and probation

Aggravating Factors

Penalties can increase if:

  • The victim was elderly or dependent.
  • The defendant was a public official, trustee, or fiduciary.
  • The embezzled amount was large (especially above $100,000).
  • The crime involved multiple victims or a pattern of conduct.

A felony conviction for large-scale embezzlement can also trigger sentence enhancements under Penal Code §12022.6 for excessive losses and may qualify as a “white-collar crime enhancement” under §186.11.

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Key Elements a Jury Considers in Embezzlement Cases

When evaluating whether the prosecution has proven embezzlement beyond a reasonable doubt, jurors consider several essential factors:

  • Entrustment of Property – The property must have been lawfully entrusted to the defendant, such as through employment or a fiduciary relationship.
  • Breach of Trust – The defendant must have used or taken the property in violation of that trust, not merely made a mistake or oversight.
  • Intent to Defraud – The prosecution must prove that the defendant intentionally deprived the owner of their property, even temporarily, for personal benefit.
  • Value of Property – The amount or value of the property determines whether the offense is classified as petty theft or grand theft.
  • Documentation and Financial Evidence – Jurors rely heavily on documentary evidence such as bank records, financial statements, and transaction logs to assess whether fraud occurred.
  • Credibility of Witnesses – Testimony from employers, co-workers, or financial professionals is weighed carefully to determine whether the alleged conduct was intentional or accidental.

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Defenses to Embezzlement Charges

Common defenses to embezzlement include:

  • Lack of Intent to Defraud – The defendant believed they had a right to use or borrow the property.
  • Good Faith Belief – The defendant reasonably believed they had the owner’s consent or were entitled to the property.
  • Insufficient Evidence – The prosecution cannot prove fraudulent intent or establish that the property was actually taken.
  • Accounting Errors or Misunderstanding – Financial discrepancies may result from mistakes, poor recordkeeping, or confusion over ownership.
  • False Accusations – The defendant was blamed by co-workers, partners, or supervisors seeking to conceal their own misconduct.
  • Return of Property – Returning or repaying the property can demonstrate lack of criminal intent, though it does not automatically dismiss charges.

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Role of a San Diego Embezzlement Defense Attorney

  • Comprehensive Financial Review – The attorney conducts an in-depth analysis of financial records, bank statements, and accounting ledgers to challenge the prosecution’s narrative.
  • Investigating Motives and Relationships – Defense counsel evaluates whether the accusation stems from workplace conflicts, family disputes, or miscommunication.
  • Challenging Intent and Entrustment – The lawyer questions whether the defendant had criminal intent or whether the property was truly “entrusted” under the law.
  • Negotiating Restitution or Civil Resolution – Many embezzlement cases can be resolved through restitution agreements or civil settlements that avoid criminal convictions.
  • Plea Negotiation and Sentencing Advocacy – The attorney works to secure reduced charges, probation, or diversion programs, especially for first-time offenders.
  • Protecting Professional and Licensing Interests – For clients in finance, healthcare, or government roles, the attorney provides counsel on mitigating collateral consequences such as professional discipline.

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Frequently Asked Questions

Q: What is the difference between theft and embezzlement?
 A: Theft involves taking property without permission, while embezzlement involves misusing property that was lawfully entrusted to you.

Q: Can I be charged even if I intended to return the money?
 A: Yes. The law only requires intent to temporarily deprive the owner of property — even if repayment was planned later.

Q: Is embezzlement always a felony?
 A: No. It depends on the value of the property. If it’s $950 or less, it’s a misdemeanor; otherwise, it can be charged as a felony.

Q: Can my employer drop the charges?
 A: Only the prosecutor can dismiss the case, but the victim’s cooperation can significantly influence how the case proceeds.

Q: Can an embezzlement conviction be expunged?
 A: Yes. If probation is completed successfully and no prison time was served, an attorney can file for expungement under Penal Code §1203.4.

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Additional Resources

California Penal Code §503 – Embezzlement: Defines embezzlement and explains how the offense is distinguished from other theft crimes.

California Department of Justice – White Collar Crime Unit: Provides general information on how financial crimes are investigated and prosecuted statewide.

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Hire a Defense Attorney for Embezzlement Charges in San Diego County, CA

Embezzlement charges can destroy careers, reputations, and financial stability. Whether you’re accused of workplace theft, misappropriation, or financial fraud, having a skilled defense attorney is essential to protect your future and your name.

The Law Offices of Michael E. Cindrich serve clients throughout San Diego County, including Chula Vista, Oceanside, Escondido, Carlsbad, El Cajon, Vista, San Marcos, Encinitas, National City, La Mesa, and San Diego proper.

Don’t wait for the prosecution to build its case. Contact Attorney Michael Cindrich today for a free and confidential consultation at (619) 262-2500.