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So your probably facing federal embezzlement charges and your ABSOLUTELY SHOCKED because you thought you were just using funds you were authorized to access. Maybe you’re government employee accused of misusing federal property. Maybe there’s allegations you stole from organization receiving federal grants. Or maybe prosecutors claim you embezzled from state or local agency getting federal funding. Look, we get it. Your COMPLETELY OVERWHELMED by these charges. And you should be! Because embezzlement under 18 USC 641 carries up to 10 YEARS for government property theft and Section 666 applies to ANY organization receiving $10,000+ in federal funds per year – doesn’t matter if money you took was federal or not – and prosecutors don’t need to prove you intended to PERMANENTLY deprive owner of property!
Let me explain the statute criminalizing theft from federal government. Section 641 covers embezzlement, theft, or knowing conversion of any record, voucher, money, or thing of value belonging to United States! Protects all federal property!
Critical distinction: embezzlement differs from theft! In embezzlement, owner initially gave you lawful possession of property – you’re authorized to access it! Then you misappropriate it for your own use! Theft is taking without permission – embezzlement is misusing permission you have!
Here’s what’s really scary – “thing of value” includes almost anything owned by federal government! Money, equipment, supplies, vehicles, data, intellectual property! Even small items can trigger federal prosecution!
Penalties depend on value! Property worth over $1,000: up to 10 years imprisonment! Property worth $1,000 or less: up to 1 year! But multiple small thefts can aggregate to exceed $1,000!
Broader statute targeting theft from federally-funded programs!
Section 666 enacted in 1984 to address gap in federal law! Covers embezzlement from organizations and governments receiving federal assistance – not just direct federal agencies! Dramatically expanded federal jurisdiction!
Statute requires TWO thresholds: organization receives $10,000+ in federal funds in one-year period AND embezzled property valued at $5,000+! Both must be met for federal prosecution! Lower amounts may be state crimes!
Critical point: embezzled funds DON’T need to be federal funds! If organization receives $10,000+ federal money in year, stealing ANY property worth $5,000+ violates 666! State money, private donations, revenues – all covered!
This means almost ANY state or local government falls under 666! States receive billions in federal highway funds, education grants, Medicaid, law enforcement assistance! Cities, counties, school districts, transit agencies all get federal money!
Even private organizations covered! Non-profits receiving federal grants, universities getting research funding, hospitals accepting Medicare/Medicaid, contractors on federal projects – all subject to Section 666!
Three critical elements for federal embezzlement!
Must prove property belonged to UNITED STATES! Money, records, vouchers, or things of value owned by federal government! Property interest must be federal!
Must prove defendant had LAWFUL POSSESSION initially! Embezzlement requires you were authorized to access property! Government employee with access to funds, contractor with government equipment, agent handling federal property!
Must prove INTENT TO DEPRIVE owner of property! Specific intent crime – must show you intended to misappropriate property! But intent doesn’t need to be PERMANENT deprivation!
This is critical: even temporary deprivation satisfies intent! Even if you intended to return property later, still embezzlement if you converted it to your own use! “Borrowing” government money is embezzlement!
Different elements than 641!
Must prove organization/government receives $10,000+ in federal benefits in one-year period! Benefits include grants, contracts, subsidies, loans, guarantees, insurance, any form of federal assistance! Prosecutors prove with grant documents, contracts, federal payment records!
Must prove defendant was AGENT of organization! Employees, officers, contractors, consultants, anyone acting for organization! Broad definition of “agent”!
Must prove embezzlement, theft, obtaining by fraud, or conversion of property! Taking money without authorization, using organizational funds for personal expenses, fraudulent invoices, kickback schemes!
Must prove property valued at $5,000 or more! Single transaction of $5,000+ OR multiple transactions aggregating to $5,000+ in one-year period! Prosecutors add up small thefts!
Must prove INTENT! Specific intent to deprive organization of property or convert it to your own use! But again, temporary deprivation suffices!
Sentences vary based on statute and amount!
Section 641 for property over $1,000: up to 10 years imprisonment and fines up to $250,000! Standard embezzlement from federal government!
Section 641 for property $1,000 or less: up to 1 year imprisonment and fines! Misdemeanor if small amount!
Section 666 violations: up to 10 years imprisonment and fines of greater of $100,000 or TWICE the amount obtained! Fine directly tied to embezzlement amount!
Some courts impose fines up to $250,000 per count! Multiple counts for multiple transactions or victims! Fines can exceed what you embezzled!
Sentencing guidelines based on loss amount! Base offense level increases with dollar value – over $6,500 adds levels, over $15,000 adds more! Large embezzlements mean decade-plus sentences!
Restitution is MANDATORY! Must repay full amount embezzled to victim organization! Beyond fines and imprisonment, owe restitution!
Professional consequences are devastating! Government employees fired and barred from federal employment! Professionals lose licenses! Security clearances revoked immediately!
Wide range of conduct prosecuted federally!
Government employees stealing from agencies! IRS employees embezzling tax payments, VA employees stealing benefit funds, GSA workers misusing government credit cards! Insider theft!
Contractors overbilling federal projects! Inflating invoices, billing for work not performed, charging personal expenses to government contracts! Defense contractor fraud!
State/local officials embezzling from federally-funded programs! Mayor stealing from HUD housing grants, police chief misusing DOJ law enforcement funds, school superintendent embezzling federal education money! 666 prosecutions!
Non-profit executives stealing grant money! Charity directors using federal grant funds for personal expenses, inflating salaries, diverting program money! Grant fraud!
Healthcare providers embezzling Medicare/Medicaid! Hospitals receiving federal healthcare payments then administrators embezzle revenues – falls under 666 because hospital receives federal funds!
Payroll fraud in federal programs! Creating ghost employees, inflating hours, diverting paychecks from federally-funded positions!
Understanding which statute applies affects your defense!
Section 641 applies ONLY to federal government property! Property must belong to United States! Direct federal agencies, federal contractors holding government property!
Section 666 applies to ANY organization receiving $10,000+ federal funds! States, cities, counties, private non-profits, hospitals, universities! Property doesn’t need to be federal – just organization receives federal money!
Section 641 has $1,000 threshold for felony! Under $1,000 is misdemeanor with 1-year max! Section 666 has $5,000 threshold – below that isn’t prosecutable under 666!
Section 641 applies to any amount! Stealing $50 of government property is federal crime (though likely misdemeanor)! Section 666 only applies if $5,000+ embezzled!
Both carry 10-year maximums for felonies! Similar penalties but different jurisdictional bases! Prosecutors choose based on facts!
Several defenses exist but intent element is key!
Lack of intent is PRIMARY defense! If evidence shows conduct was accidental, in good faith, or based on misunderstanding – not intentional embezzlement! Accounting errors, administrative mistakes!
Good faith belief in authorization! If you reasonably believed you were authorized to use funds or property for purpose you used them, may lack criminal intent! Ambiguous policies, verbal permissions!
No intent to deprive! If you intended to repay money or return property, we argue lack of intent to deprive! Though this is weak since temporary deprivation still violates statute!
Property wasn’t government property for 641! Challenge whether property actually belonged to United States! Personal property, state property, contractor’s property may not be federal!
Organization didn’t receive $10,000 federal funds for 666! Challenge whether organization actually received threshold federal funding in relevant year! Requires proof of federal payments!
Value below threshold! For 666, if property worth less than $5,000, not federal crime! Challenge prosecutors’ valuation!
Not acting as agent! For 666, if you weren’t employee, contractor, or otherwise acting for organization, not covered! Independent status defeats agent element!
Statute also criminalizes bribery related to federal funds!
Section 666(a)(1)(B) prohibits soliciting or accepting bribes! Agents of organizations receiving federal funds can’t accept bribes related to business transactions worth $5,000+! Kickbacks, payoffs!
Section 666(a)(2) prohibits offering bribes! Giving anything of value to agent to influence transaction worth $5,000+ involving organization receiving federal funds! Contractors bribing officials!
Bribery carries SAME penalties as embezzlement! Up to 10 years and fines! Often charged together with embezzlement!
Broader than federal bribery statute! Doesn’t require bribing federal official – ANY agent of organization receiving federal money! State officials, private employees, non-profit staff!
Look, we’re not your typical lawyers who don’t understand Section 666’s federal funding requirements. We’re former federal prosecutors who CHARGED embezzlement cases and know EXACTLY how to challenge intent element and federal jurisdiction!
We understand how to prove good faith belief in authorization! We know when to challenge $10,000 federal funding threshold! We can establish accounting errors vs criminal intent! Most importantly, we negotiate pre-indictment to avoid charges or reduce to misdemeanors!
Other lawyers don’t recognize good faith defenses! They miss valuation challenges! Their ignorance leads to felony convictions for conduct that was administrative error!
Call us RIGHT NOW at 212-300-5196
FBI investigating embezzlement – pre-indictment intervention critical!
Former federal prosecutors – Embezzlement defense specialists – Available 24/7!
Don’t speak to FBI or OIG investigators about missing funds without experienced embezzlement counsel! They’re building intent case from your explanations! Every statement about how you used money, why you took property, what you planned to do becomes evidence! In embezzlement cases, showing good faith from the start is critical! Call us NOW!
Remember – federal embezzlement charges aren’t just about stealing government money, there about misusing ANY property you had lawful access to. One personal expense charged to government credit card, one unauthorized use of grant funds, one piece of equipment taken home can mean 10 years in federal prison. You need someone who understands both intent defenses AND federal jurisdiction challenges. Call us NOW before embezzlement charge destroys your career and freedom!
Very diligent, organized associates; got my case dismissed. Hard working attorneys who can put up with your anxiousness. I was accused of robbing a gemstone dealer. Definitely A law group that lays out all possible options and best alternative routes. Recommended for sure.
- ROBIN, GUN CHARGES ROBIN
NJ CRIMINAL DEFENSE ATTORNEYS