What is embezzlement in North Carolina?

Embezzlement is a serious white collar crime.  Embezzlement occurs when someone is initially entrusted with possession and control of someone else’s money or property, and then fraudulently and knowingly converts that money or property to his own use.  A classic example of embezzlement is when an employee of a company has control over the company’s bank account, and the employee transfers funds to his own bank account without authorization.

The key feature that distinguishes embezzlement from other theft offenses is that the money or property was initially entrusted to the possession or control of the accused.

Other examples of embezzlement include:

• a cashier who steals money out of the register for him or herself.
• without authorization, an employee who writes checks to himself drawn on the company’s business accounts.
• stealing a company asset, like a laptop, cell phone, or iPad. 

The general embezzlement statute, N.C. General Statute § 14-90, applies to most forms of embezzlement.  But there are additional embezzlement crimes that apply to specific categories of people.  

For example, there is a statute that criminalizes embezzlement by employees of the State of North Carolina.  See N.C.G.S. § 14-91 (titled “embezzlement of state property by public officers and employees”).  There is also a statute that criminalizes embezzlement by treasurers of charitable and religious organizations.  See N.C.G.S. § 14-93.  Another one criminalizes embezzlement by officers of railroad companies.  See N.C.G.S. § 14-94.

Who investigates embezzlement in North Carolina?

Various law enforcement agencies have jurisdiction to investigate embezzlement in North Carolina.  Police departments across all 100 counties in North Carolina have jurisdiction to investigate (and charge) people with embezzlement.  In addition, the North Carolina State Bureau of Investigation (the NC SBI) has state-wide jurisdiction to investigate and charge people with embezzlement.  

Once someone is formally charged with the crime of embezzlement, the case will be prosecuted by the District Attorney’s Office.  And in many cases, additional prosecutors from the North Carolina Conference of District Attorneys will assist in prosecuting the accused.

Federal charges for embezzlement in North Carolina.

(If you are not concerned with the federal aspects, please skip down to the next heading).

Because embezzlement often involves theft of money, the federal government often has jurisdiction to investigate and prosecute embezzlement and related offenses.  

Embezzlement at the state level can also give rise to potential federal charges for wire fraud.  (For more information on wire fraud, see this page).

Federal prosecutors at the U.S. Department of Justice or the U.S. Attorney’s Office often work alongside state investigators and collaborate on investigations.  Sometimes, cases may even begin as state-level investigations and then graduate to federal cases.

The federal mail fraud and wire fraud statutes broadly criminalize any “scheme or artifice to defraud” another person or business out of money or property. The mail and wire fraud statutes represent some of the federal government’s primary tools used to prosecute a broad range and wide category of suspected frauds, including embezzlement. 

Generally speaking, for the government to prove someone guilty of mail or wire fraud, the government has to prove that the defendant knowingly made a false statement to another person or business with the intent to obtain money or property and that mail system was involved or the interstate “wires” were used. “Wires” includes almost any electronic means of communication, including email, text message, a bank transfer, and more. 

Mail and wire fraud crimes are punishable by up to 20 years in federal prison and hefty fines.

Punishment and penalties for embezzlement in North Carolina.

Under the general embezzlement statute, which is North Carolina General Statute § 14-90, the punishment for embezzlement depends primarily on the amount of money or the value of the property involved in the offense.  If the value is under $100,000, then the maximum possible punishment is 3.5 years in state prison.  If the value of the property involved is over $100,000, then the maximum possible punishment is 19 years in state prison.  See N.C.G.S. § 14-90(c).

For more information on the possible penalties for embezzlement in North Carolina, you can view our separate post titled What are the punishments, penalties, and sentences for embezzlement in North Carolina? 

Regardless of how much money was involved, someone convicted of embezzlement in North Carolina will likely be required to pay restitution to the victim of the offense.  

In addition to the criminal penalties imposed by the court system, there are several additional consequences associated with having a felony conviction on your record.  This is especially consequential for people who are professionally licensed, such as nurses and other medical professionals, real estate agents, accountants/CPAs, and lawyers.  These licensed professionals may risk losing their licenses to practice in the event of a felony conviction for embezzlement.

For more information on hiring a criminal defense attorney for licensed professionals, see this page.

What are some defenses to embezzlement in North Carolina?

There are many defenses to embezzlement in North Carolina.  Whether these defenses apply will depend heavily on the particular facts of your case.  Below are some common defenses that the attorneys at Dowling Defense Group employ.

Attack the alleged amount of money or property involved.  One strategy the attorneys at Dowling Defense Group employ in embezzlement cases is to try to drive down the alleged amount of money or property involved in the offense.  Prosecutors will always try to maximize the amount of money involved, sometimes to the point where the evidence cannot support the allegation.  Our attorneys scrutinize these allegations. 

Authorization.  Another strategy the attorneys at Dowling Defense Group employ in embezzlement cases is to show that the employer actually did authorize the conduct that is said to be criminal. 

Delay in bringing charges.  Although there is no statute of limitations on embezzlement in North Carolina, our attorneys may argue to the judge that the delay by the prosecutors in bringing charges has caused prejudice to your case, meaning that evidence favorable to the accused has been lost.

Good faith.  Another strategy we employ is called good faith.  The defense of good faith is an argument that you actually and genuinely believed you had authorization to engage in the conduct that the State claims is wrong. 

What is the statute of limitations for embezzlement in North Carolina?

Embezzlement in North Carolina is a felony.  There is no statute of limitations on felonies in North Carolina, meaning that the State can bring charges several years after the illegal conduct took place.

However, there are powerful strategies that your defense attorney can use even without a statute of limitations.  For example, if the State brings charged too long after the conduct took place, defense attorneys can argue that, because of the State’s delay in bringing charges, the defense has lost its ability to effectively investigate the case and prepare a defense because the evidence no longer exists, witnesses have passed away or disappeared, or some other unfairness that results in a violation of due process.

Final thoughts.

As with any felony crime, embezzlement is a serious matter.  If you believe you or a loved one are under investigation for embezzlement, it is critical that you seek the advice of a North Carolina embezzlement attorney to protect your rights and your freedom.  It is especially important to hire an attorney as early as possible in order to benefit from the best possible outcome.  

Further Reading

What are the Punishments, Penalties, and Sentences for Embezzlement in North Carolina?

About the Author

John J. Dowling III is a white collar criminal defense attorney based in Charlotte, North Carolina who handles white collar cases nationwide.  He routinely represents people charged with crimes in state and federal court.