Embezzling always seemed like a confusing concept. Can you tell me more about that concept?
Embezzling always seemed like a confusing concept. Can you tell me more about that concept?
user
Embezzling is the fraudulent and illegal use of funds or property that have been entrusted to an individual or entity for another purpose. In most cases, the person or entity that controls the funds has no knowledge of them being misused. Typically, it occurs when a trusted individual such as a CEO, CFO, accountant, administrator or other high-level employee illegally diverts company assets for their own personal gain. It can also happen when someone with access to another organization's funds — such as a parent company depositing money into a bank account belonging to its subsidiary — wrongly uses those funds for their own benefit.
assistant
Embezzling always seemed like a confusing concept. Can you tell me more about that concept?
user
Embezzling is when an individual uses or appropriates a resource entrusted to him or her, either by lawful or equitable title, for his or her own personal benefit. Often these resources belong to an organization that the individual is working for. For example, embezzling could involve stealing money from a charity and using it for one's own personal gain. In certain cases, embezzling can be legally tolerated - such as when an agent of a principle takes funds from one client to pay another – but it can also be seen as a crime depending on the jurisdiction where it occurs. In general, embezzling involves illegitimately using funds in the trust of another party while claiming title to them in some way or misappropriating assets so that they are used fraudulently and illegally for financial gain on behalf of the thief instead of their rightful owner.
assistant