Penal Code 503 PC - Embezzlement Laws in California
California Penal Code 503 PC defines embezzlement as a serious offense, describing it as the fraudulent appropriation of property by somebody to whom it has been entrusted, typically an employee.
The main difference between embezzlement and a standard theft-related crime is the legal requirement the property must have been entrusted to the perpetrator by the owner.
Put simply, to be convicted of PC 503 embezzlement; it has to be proven you legally had possession of the property or were given permission to access it. A conviction can result in harsh penalties.
Thus, embezzlement cases usually fall under the category of employee theft. For instance, perhaps an employer allows their employee to control their goods or money, but the employee violates the trust by taking the property for their benefit.
Embezzlement cases are a white-collar crime that could become a complex Ponzi scheme designed to defraud victims of their money. For example, the infamous stock broker case of Bernie Madoff, who was convicted of embezzling billions from investors.
Embezzlement is often called employee theft because a trusted person took advantage of their position to commit fraud. Our California criminal defense attorneys will examine this topic further below.
What is the Legal Definition of PC 503?
Penal Code 503 PC provides a straightforward definition of this fraud:
- “Embezzlement is the fraudulent appropriation of property by someone to whom it has been entrusted.”
As mentioned, embezzlement involves somebody unlawfully taking property entrusted to them with the intent to deprive the property owner.
The perpetrator might not necessarily move or conceal property but could exercise control over it against the owners' consent. The essential fraud factor lies in misappropriating the property when the owner assumes they are trustworthy, a betrayal of the highest order.
Embezzlement is often committed by professionals, such as financial advisors and accountants, in a position of trust. To convict someone of embezzlement, all the elements of the crime under CALCRIM 1806 California Criminal Jury Instructions must be proven, such as:
- The owner entrusted property to the defendant,
- The owner did so because they trusted them,
- The defendant fraudulently used the property for their benefit,
- The defendant intended to deprive the owner of its use.
What are Some Related Embezzlement Laws?
There are other forms of embezzlement under various Penal Codes that apply to different circumstances, such as:
- Penal Code 504 PC - embezzlement by public officials,
- Penal Code 504a PC- embezzlement of the leased property for purchase,
- Penal Code 504b PC - embezzlement of secured property by the debtor,
- Penal Code 505 PC - embezzlement of transported property,
- Penal Code 506 PC - embezzlement of funds entrusted to trustees,
- Penal Code 506a PC - embezzlement of funds collected by people who collect accounts for others.
What are the Related Crimes?
Embezzlement is different than traditional theft crimes because it has the crucial element of trust connected to it. Other related California crimes include the following:
- Penal Code 496 PC - receiving stolen property,
- Penal Code 487 PC - grand theft,
- Penal Code 488 PC - petty theft,
- Penal Code 424 PC - misappropriation of public funds,
- Penal Code 459 PC – burglary,
- Penal Code 470 PC – forgery.
What are the Penalties for This Crime?
The potential penalties for embezzlement are severe, ranging from misdemeanor charges to felony convictions, and can even have negative immigration consequences.
Embezzlement is a “wobbler,” a term used in California law to describe crimes that can be charged as either a misdemeanor or a felony, depending on the circumstances and the defendant's criminal history. The decision to charge as a misdemeanor or a felony is at the discretion of the prosecutor, and it can significantly impact the severity of the penalties.
- Penal Code 488 PC petty theft under $950 is a misdemeanor punished by up to six months in the county jail.
- Penal Code 487 PC grand theft over $950 can result in felony charges with a sentence of up to three years in state prison and payment of victim restitution.
- Penal Code 515 PC elevates embezzlement to an aggravated offense when the victim is elderly or dependent. This means that if the victim is an elderly person or a dependent adult, the penalties for embezzlement can be significantly increased. It's important to understand these potential enhancements when facing embezzlement charges.
A felony embezzlement conviction could have serious immigration consequences for non-citizens, as it is considered a crime involving moral turpitude. This could lead to deportation or other adverse immigration actions. It's crucial for non-citizens facing embezzlement charges to seek legal advice from an experienced criminal defense attorney who understands the intersection of criminal and immigration law.
How Can You Fight Embezzlement Charges?
Several common legal defense strategies can be used if you are charged with embezzlement under Penal Code 503.
Penal Code 511 PC says: “Upon any indictment for embezzlement, it's a sufficient defense that the property was appropriated openly, and under a claim of title in good faith, even though such claim is untenable. But this provision doesn't excuse the unlawful retention of the property of another to offset or pay demands held against him.”
Intending to return the property is not a valid defense, but other defenses are discussed below. Perhaps while controlling the funds or property, you didn't intend to deprive the owner. Maybe someone took the property without your knowledge or authorization.
Perhaps we could argue you owned the property or had other rights to it under a lease or other contract. Maybe you had a lawful right to possess, repossess, or otherwise take and dispose of the property.
If you are under criminal investigation or have already been arrested and charged with Penal Code 503 embezzlement, contact our defense team to review the details and legal options.
Through negotiation, it might be possible to reduce or even dismiss the charges. Perhaps we could convince the prosecution not to file formal criminal charges before the first court date (DA reject).
Cron, Israels & Stark is located in Los Angeles County, but we provide legal representation throughout Southern California. We offer a free case evaluation via phone or contact form.
Related Content: