Theft Crime: Fair Market Value of Loss
Fair market value of loss is a term that refers to the valuation of a market loss within a certain time frame and place. For example, the market value of loss might be estimated for a period of time in New York. Different places and time periods have different currency values. The market value of loss for a modern economy isn’t the same as one you’d find in the 1920s. Fair market value of loss refers to the current value and replacement value of a loss. Should a person be accused of stealing a million dollars, the market value would be one million dollars. To learn more about how fair market value of loss is determined, it’s important to talk to an embezzlement attorney.
Fair market value of loss doesn’t always apply to embezzlement cases. When a person embezzles something, they steal money rather than property. That currency value doesn’t fluctuate due to damage, destruction, or use. Dollars also have the same value across all companies and businesses throughout an area. When fair market value is assigned to embezzlement cases, it comes out to the exact dollar amount stolen. This valuation doesn’t tend to fluctuate based on market conditions.
Determining Loss in Embezzlement
When you’re dealing with embezzlement, you’re typically working with hard money stolen rather than physical property. Other thefts might include the theft of a car or home. When the thing stolen is a tangible piece of property, there’s more leeway when it comes to determining the market value. Since embezzlement deals with dollars, the market value doesn’t change. For this reason, fair market value is often not considered highly relevant to embezzlement cases.
Embezzlement vs. Property Theft
| Type of Theft | Valuation Method | Market Fluctuation |
|---|---|---|
| Embezzlement (Cash) | Exact dollar amount stolen | No fluctuation – dollars maintain same value |
| Property Theft (Car, Home, etc.) | Fair market value calculation required | Value fluctuates based on condition, market, depreciation |
Court Estimation Exclusions
The potential exclusions in cases will vary depending on the area and the circumstances of the case. In New York, courts don’t tend to have many exclusions. You have to pay back the full amount that you stole. Some people might try to strike a deal to pay back the amount they stole minus the amount of money they earned for the company. But most courts won’t accept this kind of deal. Even if you increased the overall company revenue and helped to lower corporate tax liabilities, you still owe the exact amount that you embezzled. When you’re accused of a larceny crime, it is distinctly separate from this kind of benefit analysis.
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(212) 300-5196What Courts Won’t Accept as Offsets
- Revenue you generated for the company
- Tax savings you created for the business
- Increased company profitability during your tenure
- Value you added through your work performance
The Bottom Line: You owe the exact amount that you embezzled, regardless of any positive contributions to the company.
Employee Performance Impact
When you allegedly defraud a business or corporation, the position you hold within the company becomes relevant to your sentencing. Many companies have multiple corporate positions that handle different responsibilities within the business. The position you hold and the manner in which you completed the theft will affect the charges brought against you. If the theft is ongoing rather than a one-time occurrence, that also has a significant impact on the charges and sentencing.
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Featured on Netflix's "Inventing Anna," Todd Spodek brings decades of high-stakes criminal defense experience. His aggressive approach has secured dismissals and acquittals in cases others deemed unwinnable.
Your bank reports suspicious activity on your business account to FinCEN, and federal investigators contact you.
Does a SAR filing mean you're being charged?
A Suspicious Activity Report does not mean charges are imminent, but it does mean your transactions are under scrutiny. Taking immediate steps to document legitimate business purposes for flagged transactions is critical.
This is general information only. Contact us for advice specific to your situation.
Another thing the court looks at is the impact of the theft. There will be both direct and indirect impacts to examine regarding how individuals who worked at the company, and the company itself, were affected. It’s important to prepare to answer tough questions and to be transparent with your criminal defense attorney so they’ll be prepared to create a strong defense.
