Jun 25, 2020

Misappropriation of Funds Laws, Charges and Statute of Limitations

One of the most serious crimes that does not involve directly harming another individual, misappropriation of funds is punishable in all 50 states and is taken very seriously by courts.

A crime that deals primarily with a person illegally and intentionally using another party’s funds for their own use, it can be committed by anyone who has responsibility for another’s assets.

In many instances, misappropriation of funds charges are brought against public officials, trustees, estate executors, or others who are in charge of handling funds for individuals or organizations.

Proving Misappropriation of Funds

While this crime is punishable in all 50 states, the laws from state to state vary greatly. As a result, prosecutors may need to focus on different types of elements related to the crime depending on the case they are dealing with at that time.

Yet in most cases, several key elements must be proven in order to gain a misappropriation of funds conviction. These include:

• The property owner willingly giving the defendant control of but not ownership of the funds
• The defendant having the intent to take the money and use it for their own purposes
• The defendant actually using it for their own purposes
• That the defendant did at some point plan on returning the money

However, it is vital to remember that when it comes to the defendant using the money for their own purposes, this does not mean actual purchases had to be made.

In fact, simply putting the money in a bank account is sufficient grounds to show the money was used for the defendant’s own purposes.

Embezzlement and Larceny

Under most state laws, misappropriation of funds is defined as any act that results in funds being used in a manner for which they were not originally intended.

Depending on the circumstances surrounding the case, this can lead to a defendant being charged with either embezzlement or larceny.

While embezzlement is a crime dealing with property taken from a defendant’s employer, larceny is taking something from another person that you have no right to possess.

When these charges are brought forth by prosecutors, hiring a knowledgeable criminal defense attorney who specializes in such cases should be a top priority.

Serious Punishments

When a defendant is charged with misappropriation of funds, it will most likely be a very serious charge that should not be taken for granted by them or their attorney.

While it can be a misdemeanor in some states if the amount of money or property involved is small enough, most states will view this crime as a felony.

As an example, public employees who steal taxpayer dollars will almost always be charged with a felony.

As for punishments, defendants can expect anything from:

• Restitution
• Probation
• Fines
• Prison
• Or most often a combination of these

When it comes to prison time, a misdemeanor conviction could result in no more than one year in jail. However, felony convictions can lead to 10 years or even more in prison.

Fines usually range from $1,000-$10,000 depending on the amount of money involved, and defendants are usually ordered by the court to pay restitution to their victims.

Statute of Limitations

Like many crimes dealing with finances, the statute of limitations for misappropriation of funds ranges from two to five years in most states.

Also, the statute of limitations often starts from the time the defendant took possession of the funds in question, so this should always be kept in mind when determining if these charges can in fact be levied against a defendant by prosecutors.

Defenses to this Crime

While it may seem as if there would be no viable defenses to misappropriation of funds, that is not the case at all.

One of the most common and effective is insufficient evidence, which can result in the charges being dismissed.

In addition, absence of intent is also very effective in winning these cases. If it can be proven no intent existed, a financial crime cannot occur.

Also, defendants may use such defenses as entrapment set up by law enforcement or that the defendant committed the crime while under duress.

If presented properly by defense attorneys, it is often possible to beat these charges.

Misappropriation of Funds Laws, Charges and Statute of Limitations