Pittsburgh Embezzlement Lawyers

Embezzlement is a form of theft, but it is a very distinct crime due to the relationship with the victim and the methods used. As a violation of state law, embezzlement carries stiff penalties, but the punishment for embezzling money under federal law is even harsher.

An intense investigation often accompanies embezzlement charges, which is why it is critical to contact our theft lawyers in Pittsburgh as soon as you think you are a target. Our legal services are a valuable asset from the pre-arrest stages through questioning, and especially in the event of a trial.

At Worgul, Sarna & Ness, Criminal Defense Attorneys, LLC, we know what you are facing and what it will take to move past embezzlement charges. Contact us at (412) 281-2146 or online to set up a free appointment with our Pittsburgh embezzlement attorneys.

Embezzlement Overview

Generally, embezzlement encompasses elements of theft crimes and fraud. The specific definition of embezzlement is misappropriation of property by someone who initially had proper, legal custody.

There are certain essential elements to secure a conviction, so a prosecutor must prove:

• There was the existence of a fiduciary relationship between the parties, which may be individuals or entities
• One party placed or entrusted property to the other, such that the possession of it was lawful
• Sometime thereafter, the person or entity in possession fraudulently converted the property for their own use
• The offender converted the property with an intent to permanently deprive the rightful owner of using it

While each of the four elements mentioned is essential to the crime of embezzlement, one in particular addresses an accounting mistake: intent. By definition, a mistake is an inadvertent error in judgment.

When it occurs in the context of accounting, there may be unfortunate consequences that result in the conversion of the principal’s property. However, conversion without intent is not embezzlement. Unless the prosecutor can prove that your purpose in handling the property was to convert it while it was in your lawful possession, you do not have the required intent.

Examples of Embezzlement

Embezzlement is most common in corporate or employment settings, where an employee is entrusted with company property. However, it can occur in the context of any principal or agent or fiduciary relationship, such as the administrator of a trust or estate.

Acts of embezzlement may include:

• Using funds, such as spending petty cash
• Selling property to a third party
• Giving property away
• Destroying or damaging property to the point that it is unusable
• Permanently withholding property from the rightful owner

Types of Embezzlement Cases We Defend

Embezzlement takes many forms, and the specific circumstances of your case will determine how prosecutors charge you and what penalties you face. At Worgul, Sarna & Ness, we defend clients across Pittsburgh and Western Pennsylvania against all types of embezzlement allegations, including:

Employee Embezzlement

The most common form of embezzlement involves an employee who misappropriates company funds or property. This can range from skimming cash registers to manipulating payroll systems or diverting vendor payments. Even relatively small amounts can lead to felony charges if the scheme spans multiple transactions.

Bank Embezzlement

Bank tellers, loan officers, and other financial institution employees who divert customer deposits, manipulate accounts, or steal from vaults face serious charges under both Pennsylvania law and federal statutes like 18 U.S.C. § 656. Because banks are federally insured, these cases often trigger federal prosecution.

Public Funds Embezzlement

Government employees, school district officials, and public agency staff who misuse taxpayer money face heightened scrutiny. Embezzlement of public funds under 18 U.S.C. § 641 carries federal penalties of up to 10 years in prison, and these cases are typically investigated by federal agencies such as the FBI or the Office of Inspector General.

Fiduciary Embezzlement

Attorneys, trustees, estate administrators, and financial advisors who breach their fiduciary duty by converting client assets can face both criminal embezzlement charges and civil liability. Pennsylvania courts take fiduciary breaches seriously because of the inherent position of trust involved.

Healthcare and Medicare Embezzlement

Medical billing staff, practice managers, and healthcare executives who divert patient payments, manipulate insurance reimbursements, or steal from Medicare or Medicaid programs face both state and federal charges. Federal healthcare fraud prosecutions carry penalties of up to 10 years in prison under 18 U.S.C. § 669, and the federal government aggressively investigates these cases in the Western District of Pennsylvania.

Embezzlement Laws & Criminal Charges

Under both U.S. and Pennsylvania law, the prosecution must file embezzlement charges within five years of the initial act in furtherance of embezzlement. If you are not arrested before this time, you have a valid defense to the embezzlement charges. Here is more information on embezzlement laws in Pennsylvania and in the United States:

Pennsylvania Embezzlement Laws

Pennsylvania’s embezzlement statute goes by the term “failure to make required disposition” of funds or property you received from another person. Essentially, it is a misappropriation of assets by an individual to whom they have been entrusted. The aspect of the offense that is unique from other theft crimes is that you initially held the property legally, either through an agreement or as part of a fiduciary duty. At some point after receiving the funds, you failed to dispose of them as intended and instead dealt with the property as if it were your own.

Another way you could be charged with embezzlement under state law is if you were supposed to reserve your own property to make specified payments or other disposition, but failed to do so. Co-mingling funds is covered by the embezzlement statute, in a situation where it is impossible to separate your own property from that of the victim. Embezzlement is closely related to theft by deception under 18 Pa.C.S. § 3922, but the two charges require the prosecution to prove different elements. Embezzlement involves lawful possession followed by conversion, while theft by deception involves obtaining property through fraud.

Embezzlement charges commonly arise in the context of employment or in corporate settings. Accountants, corporate officers, and related fiduciaries have access to or lawful possession of assets as part of their jobs. The offense occurs when they convert corporate property for their own private use.

Federal Embezzlement Laws

Under federal law, taking federally owned money or property that you had legal access to manage or monitor for your own gain is considered embezzlement under 18 U.S.C. § 641. Federal embezzlement includes theft from federal agencies and contractors.

For example, it is embezzlement if a grant officer in a federal agency steals funds she is supposed to monitor, or if a subcontractor remodeling a U.S. government office takes home the tiles he was supposed to install. Bank and credit union employees who steal funds also risk being arrested on federal embezzlement charges.

These charges are complex and require an aggressive defense. Call (412) 281-2146 today to speak with one of our experienced federal criminal attorneys in a free consultation.

Federal Embezzlement Cases in the Western District of Pennsylvania

When embezzlement involves federal funds, federally insured banks, or government programs, the case is prosecuted in the United States District Court for the Western District of Pennsylvania, located in downtown Pittsburgh. Federal prosecutors in this district work closely with agencies like the FBI, IRS Criminal Investigation, and the U.S. Postal Inspection Service to build embezzlement cases under statutes including 18 U.S.C. § 641 (theft of government property) and 18 U.S.C. § 656 (bank embezzlement).

Federal embezzlement cases move differently than state cases. They often begin with a grand jury investigation months before any arrest is made. If you are being investigated or have been charged with a federal crime, early intervention by an experienced defense attorney is critical. Our team handles cases in both the federal courthouse on Grant Street and in state courts across Allegheny County, giving us unique insight into how these overlapping jurisdictions operate.

Learn more about how we defend federal crime charges in Pittsburgh, or read about the difference between embezzlement and theft by deception under Pennsylvania law.

Penalties and Jail Time for Embezzlement Charges in PA

In both the state and federal statutes, the penalties for an embezzlement conviction are based on the value of the misappropriated property. Specific sentences will vary according to circumstances such as a prior criminal record and federal sentencing guidelines.

For example, you could be charged with misdemeanor embezzlement in Pennsylvania at three different levels:

• If the value is under $50: Third-degree misdemeanor, with a maximum punishment of one year of incarceration and a $2,500 fine.
• If the value is at least $50 but less than $200: Second-degree misdemeanor, which carries a fine of up to $5,000 and jail time of up to two years.
• If the value is between $200 and $2,000: First-degree misdemeanor, which could lead to five years in custody and a fine up to $10,000.

Misappropriated property higher than $2,000 becomes felony embezzlement. You could be sentenced to a maximum of seven years of incarceration plus a maximum fine of $15,000. Note that these sentencing details are for first-time embezzlement offenders. The penalties increase for individuals with a prior criminal history.

Federal Sentencing for Embezzlement

Property valued at more or less than $1,000 is what separates felony from misdemeanor embezzlement under the federal statute. In addition, the duration of the embezzlement scheme, the extent of trust, and your criminal history may be considered as part of the federal sentencing guidelines.

• Embezzling U.S. government money or property worth less than $1,000 is a misdemeanor, punishable by up to one year in prison and a fine of up to $100,000.
• Embezzling more than $1,000 in federal money or property is punishable by up to 10 years in prison and a fine of $250,000.
• Embezzling printing devices, tools, stamps, or other implements used to create items the U.S. government circulates (such as money, federal bonds, certificates, coupons, or postage stamps) is punishable by up to 10 years in prison and a $250,000 fine.
• If you are a federal official, employee, or agent and you embezzle less than $1,000 of public money, you can be punished with as much as one year in prison and a fine of up to $100,000.
• If you are a federal official, employee, or agent and you embezzle more than $1,000 of public money, you can be punished with as much as 10 years in prison. You may have to pay a $250,000 fine or a fine equal to the amount of money you embezzled, whichever amount is more.
• If you are a federal court employee and you are found guilty of embezzling less than $1,000, you can be punished with up to one year in prison, fined up to $100,000, or both.
• If you are a federal court employee and you are found guilty of embezzling more than $1,000, you can be punished with up to 10 years in prison. You may also be fined $250,000 or double the money embezzled, whichever amount is greater.

Specific sentences will vary according to circumstances such as a prior criminal record and federal sentencing guidelines. You can see that U.S. criminal procedure is very different from Pennsylvania law. For this reason, it is essential to retain an embezzlement lawyer who is properly licensed, knowledgeable, and can handle cases in both federal and state courts.

Defenses Against Embezzlement Charges

Besides the statute of limitations, there are additional defenses in embezzlement cases, such as:

• Mistakes or accounting errors
• Unintentional acts
• Entrapment
• Lack of sufficient evidence
• Other defenses, depending on your circumstances

You should keep in mind that the existence of a strong defense does not automatically mean charges for embezzling money will be dropped or that you will be acquitted. Even if you were falsely accused of embezzlement, it is necessary to get the necessary information before the judge and jury. An embezzlement attorney can assist with gathering evidence and ensuring it is admissible in court. Your lawyer will also develop a solid defense strategy, which includes presenting arguments in court. Without a legal background, you are at a disadvantage when fighting an experienced prosecuting attorney in an embezzlement case.

Frequently Asked Questions About Embezzlement in Pittsburgh

Is embezzlement a state or federal crime in Pennsylvania?

Embezzlement can be prosecuted as either a state or federal crime in Pennsylvania, and in some cases, both. Under state law, embezzlement is charged as theft by failure to make required disposition under 18 Pa.C.S. § 3927. If the offense involves federal funds, federally insured banks, or government programs, it becomes a federal crime under statutes like 18 U.S.C. § 641. Federal cases are prosecuted in the Western District of Pennsylvania and carry significantly harsher penalties, including up to 10 years in prison.

What is the difference between embezzlement and theft by deception in PA?

The key difference is the relationship between the accused and the property. Embezzlement involves someone who had lawful possession of the property and then converted it for personal use, such as an employee diverting company funds. Theft by deception under 18 Pa.C.S. § 3922 involves obtaining property through false statements, misleading information, or other deceptive tactics, without ever having lawful custody. Both are serious theft offenses in Pennsylvania, but the prosecution must prove different elements for each charge.

What are the penalties for embezzlement in Pennsylvania?

Penalties depend on the value of the misappropriated property. Amounts under $50 are a third-degree misdemeanor with up to one year in jail. Amounts between $50 and $2,000 carry increasingly severe misdemeanor charges with up to five years of incarceration. Anything above $2,000 is a felony punishable by up to seven years in prison and a $15,000 fine. Federal embezzlement over $1,000 can result in up to 10 years in prison and a $250,000 fine.

Can I be charged with embezzlement if it was an accounting mistake?

Intent is a required element of embezzlement. The prosecution must prove that you intentionally converted property for your own use while it was in your lawful possession. A genuine accounting mistake or inadvertent error is not embezzlement. However, prosecutors may argue that a pattern of “mistakes” demonstrates intent, which is why having an experienced embezzlement attorney review the evidence is critical to building your defense.

How long do prosecutors have to file embezzlement charges in Pennsylvania?

Under both Pennsylvania and federal law, the statute of limitations for embezzlement is generally five years from the date of the initial act. If prosecutors do not file charges within this period, you may have a valid defense. However, in schemes that span multiple years, prosecutors may argue that each transaction restarts the clock. An experienced defense attorney can evaluate whether the statute of limitations applies in your case.

Our Team of Pittsburgh Embezzlement Lawyers Can Help

If you have been indicted for embezzlement or you think you are being investigated, do not delay in hiring a federal criminal attorney who can begin preparing your defense. An embezzlement conviction will mean severe and lasting consequences for the rest of your life. Having an attorney who can defend you aggressively against your charges can help mitigate the consequences or help you avoid them altogether.